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Houston innovator tackles tire waste with hot new plant launching in 2025

Vibhu Sharma, founder and CEO of InnoVent Renewables, saw a huge opportunity for cleaner tire waste. Photo via LinkedIn

Vibhu Sharma observed a huge sustainability problem within the automotive industry, and he was tired of no one doing anything about it.

"Globally, humans dispose 1 billion tires every year," Sharma says on the Houston Innovators Podcast. "It's a massive environmental and public health problem because these tires can take hundreds of years to break down, and what they start doing is leaking chemicals into the soil."

Today, 98 percent of all tires end up in landfills, Sharma says, and this waste contributes to a multitude of problems — from mosquito and pest infestation to chemical leaks and fire hazards. That's why he founded InnoVent Renewables, a Houston-based company that uses its proprietary continuous pyrolysis technology to convert waste tires into valuable fuels, steel, and chemicals.

While the process of pyrolysis — decomposing materials using high heat — isn't new, InnoVent's process has a potential to be uniquely impactful. As Sharma explains on the show, he's targeting areas with an existing supply of waste tires. The company's first plant — located in Monterrey, Mexico — is expected to go online early in the new year, an impressive accomplishment considering Sharma started his company just over a year ago and bootstrapped the business with only a friends and family round of funding.

"It's about 16 months or so from start to commercial operations, which is phenomenal when you consider what it takes to build and operate a chemical or petrochemical facility," Sharma says.

Currently, with the facility close to operations, Sharma is looking to secure customers for the plant's products — which includes diesel, steel, and carbon black — and he doesn't have to look too far out of the automotive industry for his potential customer base. Additionally, the plant should be net zero by day one, since Sharma says he will be using the output to fuel operations.

While the first facility is in Mexico, Sharma says they are already looking at potential secondary locations with Texas at the top of his list. Houston, where Sharma has worked for 26 years, has been a strategic headquarters for InnoVent.

"When it came to doing the research and development, we were able to work with experts in the Houston and Texas areas to test out our idea and validate it," Sharma says. "One thing that gets under appreciated about Houston is how well it's connected to the rest of the world. There are so many direct connections between Houston and Latin America, as well as Europe, Middle East, and Asia."

"I also find that the Houston ecosystem is very supportive of new companies and helping them grow," he adds.

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This article originally ran on InnovationMap.

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A View From HETI

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde. Image via Shutterstock

Verde Clean Fuels announced the entry into a stock purchase agreement with Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy.

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde.

The investment will consist of the purchase of 12.5 million shares of Verde’s Class A common stock at a purchase price of $4.00 per share. Closing of the investment is anticipated to occur during the first quarter of the new year, which will be subject to satisfaction of customary closing conditions. The investment would represent the second investment by Cottonmouth in Verde over the past two years, which would equal a total investment of $70 million. This would make Cottonmouth the second largest shareholder of Verde.

“We are pleased to further our relationship with Diamondback and continue advancing our plans to deploy our technology through the development of commercial production plants,” Ernest Miller, CEO of Verde, says in a news release. “Diamondback is a strategic industry partner at the forefront of bringing sustainable operational practices to the oilfield and supporting the overall transition to clean energy.”

Verde Clean Fuels key pioneering technology is its "syngas-to-gasoline plus" (STG+®), which turns diverse feedstocks like biomass, municipal solid waste (MSW), and natural gas – into gasoline or methanol. Verde is able to deploy facilities in areas with abundant and low-cost feedstock. The company has developed two different pathways to gasoline production with the goal of reducing carbon emissions.

Proceeds from the investment are expected to be used to further the development and construction of potential “natural gas-to-gasoline production plants in the Permian Basin and for other general corporate purposes,” according to Verde Clean Fuels. The proposed plants developed by the parties would produce fully-refined gasoline utilizing Verde’s patented STG+® process from associated natural gas feedstock supplied from Diamondback's operations in the Permian Basin. Verde will also expand its board of directors to eight members and appoint a new director to be designated by Cottonmouth. Cottonmouth will be entitled to appoint an observer to the company’s board.

“This investment is an expression of confidence in our technology, which we believe has the potential to alleviate economic and environmental concerns in the Permian Basin and other pipeline-constrained basins, where flaring and stranded natural gas represent a significant challenge,” Miller adds in the release.

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