Blue Tide has opened its used lubricant rerefinery in Baytown, Texas, United States, the company announced Monday along with minority shareholder Pennzoil-Quaker State Co.
The plant has capacity to make 5,000 barrels per day of API Group II base oils, some of which is earmarked for automotive lubes produced by Pennzoil-Quaker State, a Shell subsidiary, while the rest will go for sale on the open market.
Pennzoil-Quaker State officials said the rerefinery will help the company provide more sustainable engine oils.
“Completing the Baytown facility is a significant milestone in our commitment to providing high-performance lubricants to our customers with a lower carbon footprint,” said Ade Ajala, CEO of Pennzoil-Quaker State Company and SVP at Shell Lubricants Americas.
Blue Tide is a joint venture between Pennzoil-Quaker State and Tailwater Capital, a Dallas-based private equity firm that owns 51% of Blue Tide. The Baytown project was undertaken before Shell bought its stake in the company, in December of 2022. Shell has a long-term supply agreement to offtake an undisclosed portion of the plant’s output.
The Baytown plant is Blue Tide’s first rerefinery, but the company has said it plans to develop a network of such facilities. The company has yet to announce any future locations, but a network remains the company’s plan, according to Tailwater Managing Director for Communications and Public Affairs Jill McMillan said.
“As the market for sustainable base oils continues to expand, we’re actively evaluating potential opportunities domestically and internationally that align with our strategy of scale, circularity, and supply chain efficiency,” she told Lube Report.
Rerefined base oil capacity is about 1.17 million metric tons per year, according to data collected by Lubes’n’Greases.