Vertex Energy Inc., a renewable fuels and environmental services company, filed for bankruptcy last week after its attempt to break into the renewable fuels business failed to yield the expected results.
Despite Vertex reporting healthy gross profits over the previous two years, a supply glut and low market demand for renewable diesel have made the business unviable. In May, the company stopped production of renewable diesel.
Vertex operates the Marrero rerefinery in Louisiana that produces low-sulfur vacuum gas oil, condensate and asphalt extender. Marrero is the largest used motor oil refinery on the Gulf Coast. It has several waste automotive lubricant collection and processing facilities along the U.S. Gulf coast.
The company also operates a Mobile, Alabama, refinery purchased from Shell in April 2022 for U.S. $75 million. The deal also included $165 million for inventory. Mobile has capacity to process 90,000 barrels per day of crude oil and produces vacuum gas oil and fuels.
In February 2023, Vertex sold Heartland, a used motor oil collection and recycling business in Ohio, to waste management company GFL Environmental for $90 million.
Vertex formerly sold Adnoc’s API Group III base oils in with Turkish base oil trading company Penthol until Penthol terminated the partnership in 2021.