Mil Speck Re-Refining Oil Co. and non-profit organization Renewable Manufacturing Gateway, both based in Pennsylvania, signed a letter of engagement to jointly develop a base oil rerefinery.
According to a statement, Mil Speck anticipates beginning operations at a new custom-designed plant in the fourth quarter of 2013. Based in Pennsylvania, Mil Speck expects the new rerefinery to process 25 million gallons of used motor oil per year and to produce vacuum gas oil, base neutral and asphalt flux.
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There is a great opportunity in the Mid-Atlantic region to establish a motor oil recycling business because of availability of feed stock, proximity to recycled product off-takers and lack of competing rerefineries, said Mil Speck founder and CEO Carle Greene. Greene has more than 25 years of experience in the petrochemical industry, including in recycling an applications of used motor oil.
The rerefinery will use technology designed by Sequoia Global Inc. of India. According to its website, Sequoia supplied the hydrotreater for Bango Oils rerefinery in Churchill County, Nevada, which produces about 2,000 barrels per day of API Group II+ base oil. Bango doesnt sell its base oil on the merchant market.
Pittsburgh-based Renewable Manufacturing Gateway will provide Mil Speck advice related to business strategy, finance structuring, financial modeling, contrast structuring and negotiating as well as capital sourcing. RMGs mission is regional job creation in the clean technology, renewable and alternative energy industries.