Aresol and Ecolomondo sign agreement for the construction of four tire pyrolysys plants

ARESOL Renovables, a Spanish business group with a recognized track record at the national level in the renewable energy and circular economy sectors, is proud to announce its recent agreement reached with ECOLOMONDO CORPORATION (TSXV: ECM) (OTC: ECLMF), an innovative Canadian company specializing in sustainable technology for used tire recycling, through the creation of Ecolomondo’s European subsidiary, “ECOLOMONDO EU”, which will be based in Spain and will serve for the development and implementation of ECOLOMONDO’s exceptional TDP (Thermal Decomposition Process) technology in at least four tire pyrolysis plants to be built within the European Union, representing a total investment of 200 million euros.

Prior to this agreement, and as a result of the joint work between both companies, on December 2, 2024, ECOLOMONDO and ARESOL signed a non-binding letter of intent to build a pyrolysis plant with the capacity to process 20,000 tons of end-of-life tires per year in Spain.

The current agreement, signed in July 2025, more ambitious and more aligned with the strategies and aspirations of both companies, was formalized after a thorough and successful technical due diligence process through which the suitability of ECOLOMONDO’s TDP technology was determined for obtaining products of very high economic and environmental value from the material recovery of a waste that is very difficult to manage, such as vehicle and truck tires. During this technical audit process, carried out entirely at ECOLOMONDO’s commercial-scale plant in Hawkesbury (Ontario), the complete production and transformation process of the tire was verified and validated — from the preliminary shredding and separation of textiles and steel, through the pyrolysis reactors and the extraction phases of TPO (Tire Pyrolysis Oil), to the MPS (Micronization, Pelletizing, and Drying) process for the homogenization of rCB (Recovered Carbon Black). Likewise, various samples of TPO and rCB obtained were analyzed, and these analyses confirmed full and excellent compliance with all market standards required by their main buyers, providing not only undeniable environmental value but also a fantastic economic positioning.

This strategic alliance will allow, in the words of its creators, Mr. Eliot Sorella, Executive Chairman of ECOLOMONDO, and Mr. Raúl Sáenz, Partner at ARESOL, “the rapid deployment in Europe, in the coming years, of the most efficient, viable, and advanced technology for managing end-of-life tires, which will significantly help EU member states continue and improve the management of these tires at a time when it faces increasing environmental restrictions on their energy recovery and certain forms of material recovery.”

Both leaders emphasized the soundness and timeliness of the agreement reached.

“We cannot imagine a better partner for our launch in Europe,” said Mr. Sorella. “We share a common vision of the importance of providing a reliable and consistent technological solution to a pressing environmental problem. Both of us have worked hard on developing our capabilities, and we are 100% committed to the project. ARESOL brings us its privileged presence in the EU, its cultural and regulatory knowledge of it, solid EPC capabilities that have led it to develop large-scale renewable and circular economy projects, and above all, a team of people and partners we can fully trust in our growth and expansion project.”

“At ECOLOMONDO, we have found not only a great technological partner but also an unstoppable and tireless driving force for our common project,” said Mr. Raúl Sáenz. “Their technology works — and works beyond expectations — which is not easy to find or verify nowadays. We have been with them, audited their process, verified and validated their exceptional products, seen how TPO and rCB are shipped daily by truck to their final customers, and above all, we have done all this alongside the exceptional team of professionals that makes up ECOLOMONDO. We believe that Europe faces a major challenge in the coming years to achieve proper management of end-of-life tires in a way that is increasingly sustainable both environmentally and economically, and we also believe that ECOLOMONDO’s TDP technology constitutes a reliable, consistent, and capable solution to achieve it promptly.”

After further discussions and a detailed technical audit carried out by ARESOL, the parties signed in July 2025 a definitive agreement for the construction of, at least, four turnkey tire pyrolysis plants using ECOLOMONDO’s TDP technology within the European Union, the first of which will be built in Spain. The locations of the other three facilities will be determined once the parties perform due diligence, focusing on the availability of raw materials, management costs, purchase agreements, and government support.

According to Mr. Alberto Romero Álvarez, CEO of ARESOL:
“This is a very important agreement for ARESOL, which fits perfectly with our strategy to be a leading company in waste recovery and circular economy.”

While the initial ambition is to develop and build four tire pyrolysis plants in the short term, the strategy of the new company and the combined capabilities of its partners, along with an increasingly favorable market, make it possible to set an even more ambitious medium-term goal for the expansion and consolidation of ECOLOMONDO’s TDP technology within the EU.
This will undoubtedly lead to a significant increase in the penetration of pyrolysis as a key vector for the recovery of end-of-life tires, its consolidation de facto as a solid alternative to other types of tire recovery, and, in addition, the maturity and definitive consolidation of the recovered carbon black (rCB) market as a high-value, in-demand product — both economically and environmentally.