Gunvor and New Energy Partner on Waste Tire Recycling
In a move highlighting the growing push for circular economy solutions, commodities trading giant Gunvor has signed a strategic collaboration agreement with New Energy, a Budapest-based technology company specializing in advanced chemical recycling of end-of-life tires. According to a joint announcement, the partnership will focus on industrial-scale production of pyrolysis oil, a sustainable feedstock derived from waste tires, to replace fossil-based raw materials in refineries.
Under the agreement, New Energy will supply Gunvor with pyrolysis oil from its operating facility in Dunaharaszti, Hungary. Future deliveries will also include output from additional NE-TECH Group plants currently under development in Karcag, Hungary, as well as projects in Western Europe and beyond. Industry reports note that this initiative supports the EU’s broader targets for reducing waste and lowering carbon emissions.
The pyrolysis oil, produced through advanced chemical recycling, will be integrated into refinery processes as a substitute for conventional fossil inputs, according to Gunvor. By reintroducing waste-derived materials into the value chain, the partnership contributes to reducing greenhouse gas emissions and advancing the principles of circularity.
Speaking on the agreement, Ricardo Cordeiro de Sousa, trader for Circular Naphtha and Pyrolysis Oil at Gunvor, said: “Gunvor is committed to increasing its support for the ‘circular economy’ and the Energy Transition. NE-TECH has a unique technology that is working on full industrial scale operating 24/7, and together we can offer both economic advantages and environmental benefits.”
Viktor Varadi, CEO of NE-TECH Group, emphasized the milestone, stating: “This partnership underlines our successful development and optimization of our processes to maximize economic efficiency of our plant and technology.”
The chemical recycling of waste tires is gradually gaining traction as regulators and energy companies explore scalable options for decarbonization. With the EU advancing policies that encourage the use of circular materials, demand for alternatives such as pyrolysis oil is projected to increase in the coming years. Industry observers note that collaborations between technology providers and global commodity traders can play an important role in improving commercial feasibility and expanding infrastructure beyond local markets. The Gunvor–New Energy partnership illustrates how advanced recycling technologies are starting to move beyond pilot projects toward broader industrial applications.
The collaboration also reflects a wider trend in which circular economy models are beginning to influence the energy and petrochemical sectors. Over time, such initiatives could contribute to more sustainable supply chains, progress on carbon reduction targets, and alignment with evolving regulatory requirements.
