- Tyre processing company Pearl Global (PG1) has signed a ‘new and improved’ sales agreement with Queensland-based Aussee Road Services
- The companies signed a five-year deal last April which involved Pearl supplying its fuels and carbon char products to Aussee’s asphalt production process
- Pearl has now committed to supply up to 5000 tonnes of fuel and up to 3000 tonnes of recovered carbon black (rCB) per annum to multiple sectors across Australia
- The volume commitment is less than the prior deal and allows Pearl to expand its sales pipeline across Australia to attract higher revenues
- Pearl ended the day a slight 1.14 per cent in the red with shares closing at 8.7 cents
Pearl Global (PG1) has signed a ‘new and improved’ sales agreement with Queensland-based Aussee Road Services.
The five-year agreement replaces the existing offtake agreement that the two companies signed on April 1 2020. The prior agreement involved Pearl supplying its fuels and carbon char products to Aussee’s asphalt production process.
Pearl Global is a tyre processing company that cleanly converts tyres into valuable secondary products.
Its unique thermal desorption technology has low emissions, no hazardous by-products, doesn’t require chemical intervention and is the only process that meets the standard emissions criteria set by the Australian regulators.
Under the new agreement, Pearl will supply up to 5000 tonnes of fuel per year rather than 10,000 tonnes, and up to 3000 tonnes of recovered carbon black (rCB) per year instead of up to 7000 tonnes as previously detailed.
Additionally, while the previous agreement was exclusive to Queensland and northern New South Wales, the new agreement is non-exclusive — allowing Pearl to sell its tyre-derived fuel oil and rCB to multiple sectors.
The new non-exclusive nature of the five-year deal gives Pearl more freedom to increase production and expand its sales pipeline across Australia to attract higher revenues.
While product pricing is confidential, production from Pearl’s three thermal desorption units (TDUs) will be used to fulfil the sale agreement and if it supplies the maximum quantities, Pearl can earn roughly $2.8 million per annum for the five-year term.
The company is pleased with the outcome of negotiations with Aussee. Both parties are looking forward to promoting the environmental benefits of Pearl’s products in asphalt and bitumen.
Pearl ended the day a slight 1.14 per cent in the red with shares closing at 8.7 cents.