US’ Clean-Seas to acquire majority stake in Moroccan waste recycling group Ecosynergie: Clean-Seas — a subsidiary of US-headquartered investment firm Clean Vision Corporation — is acquiring 51% of Morocco-based Ecosynergie Group (ESG) in a USD 6.5 mn transaction, according to a statement. The acquisition agreement, which is expected to close in 1Q 2023, comes after the two companies signed a “binding term sheet” in April 2022 to jointly develop a commercial scale pyrolysis facility, the statement adds.

Wait, what is pyrolysis? Pyrolysis can be used to convert plastic waste into liquid oil by heating the plastic at temperatures ranging from 300–900°C, without oxygen, so that it breaks down. The hydrocarbon liquids produced through this process can then be used for energy or converted back into new plastics.

The details: Clean-Seas is investing USD 6.5 mn in cash in the acquisition, with USD 2 mn to be paid upon closing and the remaining USD 4.5 mn to be paid within 10 months of closing, according to the statement. Clean-Seas will acquire ESG’s current assets, which include two existing pyrolysis plants with a daily capacity of 10 tons each, other pyrolysis equipment and technology, five hectares of land, and licenses to operate pyrolysis facilities, the statement notes.

What currently happens to the waste treated by ESG? ESG currently has over 10k tons of feedstock — presumably plastic waste ready to be treated through pyrolysis — ready to be repurposed into clean fuels and hydrogen, the statement notes. The company also has an offtake agreement with a local oil and gas distributor.

Expansion plans in the pipeline: Within six months of the acquisition, ESG’s pyrolysis plants’ capacity will grow to 120 tons per day. This increase will come from two new plants, each of which will have a daily production capacity of 50 tons, with one due to be installed and operational in 2Q 2023 and the other due to be operational by the end of 3Q 2023. The aim is to grow ESG’s plastic waste processing capacity to reach 350 tons daily or more within two years, the statement says.

The post-acquisition set-up: After the acquisition closes, ESG will be renamed Clean-Seas Morocco. Clean Vision’s Chief Revenue Officer, Daniel Harris, will be appointed CEO of Clean-Seas Morocco, while ESG Director Mohammed El Abbassi will serve as chairman of the Clean-Seas Morocco board — which will have five members, according to the statement.