HD-Petroleum plans to launch a Canadian $1.4 million (U.S. $1.3 million) rerefinery in Montcalm, Manitoba, next June that processes used motor oil to produce 1.2 million liters annually of low sulphur diesel fuel.
Todd Habicht, HD-Petroleums president and general manager, said the company considered producing base oils, but didnt believe it was a good business decision to compete in Canadas base oil rerefinery market at this time. Safety-Kleen and Newalta operate the two existing base oil rerefineries in Canada. HD-Petroleums plant will instead process used oil into diesel fuel.
Essentially, it was just an economic decision, Habicht told Lube Report. At this point, reclaiming the hydrocarbon and converting it into a diesel fuel product was something that was economically feasible for us to do.
HD-Petroleum has letters of intent and partnership agreements with waste oil collectors, primarily across western Canada, to provide the used oil, he said.
Canadas Community Adjustment Fund will provide $479,213 for the Winnipeg-based HD-Petroleums project. The $1.4 million is the portion our federal government has partnered with us on, to develop all the environmental containment and commissioning of the plant, he added. The fund is a two-year, $1 billion national program that supports projects that create jobs and maintain employment in rural communities.