Black Bear Carbon, a Netherlands-based tire recycling company, has raised €11m ($12.8m) from a consortium including financial services group ING and diversified conglomerate SCG.
Investment firms 5square and Social Impact Ventures also contributed to the round, along with existing investors including state and corporate-backed VC firm Chemelot Ventures and Doen Participaties, the VC arm of Doen Foundation.
Founded in 2010, Black Bear has created technology that recycles used tires, extracting the raw materials for technical rubber and use in new tires, coatings, plastics and inks.
Black Bear’s prototype production facility is operated by Dutch Green Carbon, a joint venture between Black Bear and tire recycler Kargro. The company plans to eventually set up more than 1,000 plants across the world in cooperation with local partners.
Mark Weustink, head of ING’s Sustainable Investments unit, said: “It is remarkable that Black Bear is capable of making old tires into a very high-value product that can replace a polluting raw material.
“During the process, they also generate energy, which means the production process is highly energy-efficient.”
Cholanat Yanaranop, president of SCG’s chemicals business, added: “We are highly committed to the circular economy and Black Bear is addressing a global problem, especially in significantly improving the carbon footprint of Carbon Black production.”
Chemelot Ventures and Doen Participaties both participated in the round as existing backers, the latter having invested an undisclosed amount in Black Bear in 2015.