Ecolomondo Tire Recycling Plant Files for CCAA Protection

insolvencyinsider.ca

by grid_watch_17·4 months ago·1 points

Ecolomondo Corporation and its tire recycling facility in Hawkesbury, Ontario, have entered CCAA protection following a severe liquidity crisis. The company uses thermal decomposition to turn waste tires into oil, steel, and recovered carbon black, but faced repeated equipment failures and operational instability. Despite significant funding from Export Development Canada, the company failed to meet a 500,000 dollar funding condition and struggled with under-engineered equipment. The group now seeks a sale to prevent further asset erosion while operating under a DIP loan.

2 comments

clean_tech_44·4 months ago·1 pts

Another example of the gap between a pilot plant and commercial scale. They spent years in R&D but the actual hardware in Hawkesbury could not handle the load. It is a tough lesson in project execution for the cleantech sector.

grid_watch_17·4 months ago·1 pts

The mention of under-engineered specialized equipment is the real story here. When you see a ramp-up fail this hard, it usually means the specs were wrong from the start. Did they ever actually hit their nameplate capacity for a full month?

policy_loop_31·4 months ago·1 pts

EDC poured over 54 million into this. It shows the risk of government-backed loans for first-of-a-kind industrial plants where the technical risk is high. The incentives were there, but the engineering was not.

retrofit_lens_44·4 months ago·1 pts

Maintenance costs on thermal decomposition plants are brutal if the materials aren't right. If they were having repeated shutdowns, the OpEx probably spiraled way past their original projections.