A public-private partnership to build a rerefinery capable of producing base oils was announced recently during an event in St. Petersburg, Russia.
The project is in an early phase of development, a Russian environmental agency official told Lube Report on Tuesday.
Three parties – the state-controlled Russian Environmental Operator, the government of Tula oblast and the company RPM Uzlovaya – signed an agreement during the St. Petersburg International Economic Forum in June to build a U.S. $18 million base oil rerefinery and lubricant plant.
“The technical documentation is under development, and at this phase we cannot give any additional information of the project,” a Russian Environmental Operator official told Lube Report.
The complex will be located in the Tula region, around 200 kilometers south of Moscow, and will be able to produce base oils as well as finished lubricants, according to the agency.
“Under this agreement, Tula oblast will host a plant for production of lubricants made from waste oil,” Denis Butsaev, head of the agency, said in a news release. “The creation of such a facility is in accordance with the circular economy, and the project will be supported by REO.”
Russian Environmental Operator is a state-controlled entity that oversees the implementation of the country’s laws regarding the disposal and recycling of different types of waste, including used oils.
The partners estimate that it will cost $18 million to build the plant, which they aim to open by the end of 2026. They are already contemplating a 2028 expansion that would cost the same amount.