Hydrodec Progresses on UK Rerefinery


Transformer oil rerefiner Hydrodec said it plans to appoint a contractor early in 2015 to develop the front-end engineering design of its planned rerefinery in the United Kingdom.

In August, the company announced it signed engineering, licensing and technology collaboration agreements with Chemical Engineering Partners for a planned U.K. rerefinery capable of producing API Group II/II+ base oil, potentially by 2016.

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We have a basic engineering design from CEP, and should be appointing a contractor early in the new year to develop the front-end engineering design, Hydrodec Group CEO Ian Smale said in a video interview with its corporate communications provider BRR Media, posted yesterday on Hydrodecs website. We have secured a very suitable location and are fully engaged in the pre-planning and permitting process, which I would hope will lead to a full planning application in February, next year, with full project sanction before the end of the first half…. The wider business case remains robust, and there is a real opportunity to meet a significant gap in the market, as well as move the U.K. forward with respect to the development and regulation of the used oil market.

The company on Feb. 15 announced that its Hydrodec of North America subsidiary signed a $10 million, seven-year term asset financing facility and increased its working capital line of credit to $1.5 million. The company said the money will ensure that its North American business is appropriately funded following the rebuild and expansion of the Canton transformer oil rerefinery. Hydrodec earlier this year settled with its insurers on a $20 million claim for fire damage the Canton rerefinery incurred in December 2013.

The rebuild and expansion of the Canton transformer oil rerefinery is expected to increase its production capacity to 45 million liters per year of transformer oil, up from 30 million l/y. Smale said in the video interview that the company expects production at Canton to ramp up over the second quarter of 2015 while Hydrodec reestablishes its market position.

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