The circular economy is attracting new investors to the African continent. This is the case of the French companies Ecoslops and Parlym, which have just entered into a partnership with the aim of co-investing in the recycling of used engine oil on the continent. Within the framework of this partnership, the two French companies will form a joint structure owned 80% by Parlym and 20% by Ecoslops.
This special purpose vehicle will invest “in a majority way” in projects financed by both companies. The partnership is off to a fast start with the acquisition of a minority stake in Valtech Energy, a subsidiary of the Société Camerounaise d’Intermédiation et de Negoce (SCIN) based in Douala, Cameroon, and specializing in oil waste management. The Valtech team is already in contact with Ecoslops.
Scarabox® technology at the heart of the partnership
The two companies have collaborated for the delivery of a Scarabox® system in the port area of Kribi where Valtech has installed a unit dedicated to the reception of maritime oil waste. Developed by Ecoslops, Scarabox® is a containerized unit for the treatment of hydrocarbon residues, including marine and land-based petroleum waste and used engine oil. These liquid wastes are recycled into fuels and light bitumen for use in pavement rehabilitation.
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As part of their partnership, Ecoslops and Parlym plan to make a second investment before the end of 2023 in Ivory Coast, “as soon as the regulatory authorizations have been granted”. “Through this new partnership, we are bringing a new solution for a virtuous and circular economy to the African territory. We are delighted to be able to rely on Ecoslops to reduce our environmental footprint. This is perfectly in line with the energy transition objectives we have set for ourselves by 2027,” explains Johann Charrier, Parlym’s Chairman and CEO.
The joint venture set up by the two companies will make investments in at least 25 African countries by partnering with producers and collectors of hydrocarbon residues to set up and finance projects to implement the Scarabox® solution. Ecoslops and Parlym are investing in a market where everything remains to be done to protect the environment from waste oil pollution. According to the research firm Mordor Intelligence, the African market for motor oil is expected to reach 1.24 billion liters in 2026. Hence the need to put in place systems and equipment for the management of waste from this oil product.
Jean Marie Takouleu