Vertex Energy Inc. plans to add 6,000 barrels per day of virgin API Group III base oil capacity at its refinery in Mobile, Alabama, with startup targeted for 2029. The company said it will use its existing hydrocracker and related processing infrastructure.
The project will produce 4 centiStoke, 6 cSt and 8 cSt base oils from crude-derived hydrocracked vacuum gas oil produced at the refinery. Vertex said it has completed preliminary engineering and procured a high-pressure hydrotreating unit for the project.
The new capacity will complement Vertex’s existing rerefined Group III production. The company said the combined output would make it North America’s largest Group III producer while allowing it to continue manufacturing transportation fuels alongside 4 cSt and 6 cSt rerefined Group III base oils.
The Vertex project is part of a flurry of Group III investments in the United States. Chevron is building a 25,000 b/d Group III+ plant at its refinery in Pascagoula, Mississippi, while ExxonMobil is adding Group III production at its Baytown, Texas, refinery by 8,000 b/d.
“This project reflects a major milestone in our continued focus on improved profitability and margin stabilization,” Chief Executive Officer Mark Smith said. “We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking reliable domestic supply.”