US cleantech company ReGen III is to begin front end engineering and design (FEED) work for a used motor oil re-refinery at Oiltanking Galveston County Terminal in in Texas City, US.
Oiltanking North America has issued a letter of readiness (LOR) to ReGen III to proceed after the successful completion of work on the pre-FEED/front-end loading (FEL-2) validation. Oiltanking is expecting the final independent report from its engineers, Burns & McDonnell, within the next week, and the LOR states that it will be ready to move to FEED on 18 October 2021.
The re-refinery will take used motor oil and re-refine it into clean base oils for the domestic market. The process removes soluble and insoluble impurities to make a final product at least equal in quality to virgin base oils. The process uses less energy than crude oil refining. Oiltanking North America and ReGen III signed a non-binding letter of intent to build the re-refinery in July 2021, with Oiltanking agreeing to lease land at its Galveston County Terminal, and design, construct, and operate storage tanks, loading and unloading pipelines, rail and marine loading and unloading facilities and other logistics assets for the re-refinery.
The FEL-2 pre-feasibility study aimed to develop cost and schedule estimates, and make any critical decisions that will influence the final design of the storage tanks, loading/unloading pipelines, rail and marine loading/unloading facilities and other logistics assets. Oiltanking will be responsible for designing, constructing, operating and maintaining the logistics assets.
ReGen III and Oiltanking are working towards finalising and signing the long-term ground lease and the site services agreement.
‘As one of the largest independent tank storage providers for gases, chemicals and petroleum products in the world, Oiltanking is successfully active in the engineering, procurement and construction of tank terminals. Our experienced team is working closely together with ReGen III on a tailor-made and cost-effective infrastructure solution for their re-refinery facility at our terminal in Texas City. We look forward to advancing the project as it will provide a much-needed domestic supply of base oils recycled from used motor oil thus, strengthening the circular economy,’ says Dan Withers, director, business development at Oiltanking.