As part of a strategy to fast-track construction of the inaugural auto shredder residual site in Indiana, Integrated Green Energy (ASX: IGE) has revealed it will receive a down payment of US$39.6 million (A$56.81 million) before the end of the month.
The down payment forms part of US$70 million (A$100.41 million) that will be paid to Integrated Green Energy to construct 24 modules for the site which will shred automobiles and process them into a range of fuels and products.
According to Integrated Green Energy, a hammermill will act as a “giant tree chipper” to grind the automobile material into fist-size pieces.
The shredded material is a mixture of ferrous and non-ferrous metals as well as shredder waste, which is referred to as auto shredder residual.
Integrated Green Energy’s technology will then be used on the plastics within the shredder waste to produce fuels including road ready diesel, road ready petrol, naphtha, marine fuel and diesel.
Combined, the 24 modules will be capable of processing 1,200 tonnes per day of auto shredder residual generated plastics into about 420 litres of fuel a year.
To implement this technology, Integrated Green Energy has partnered with GEP Fuel and Energy Indiana in the US and the duo has formed Integrated Green Partners to administrate the joint venture.
GEP Fuel and Energy chief executive officer Stephen Hogan also heads up the joint venture entity Integrated Green Partners.
Under the partnership, GEP Fuel and Energy’s obligations include sourcing the total US$300 million in construction funding required for the Indiana site, in addition to securing the site, which has been completed.
Mr Hogan said with initial funding secured and the site locked-in, it makes “good commercial sense” to prioritise construction of Integrated Green Energy’s technology.
“We are proud to work with Integrated Green Energy and are sure the Integrated Green Partners’ roll out will be a great commercial success and have an amazing impact on the environment,” he added.