Green Oil and Lubes obtained a $38.7 million loan to support completion of its API Group II base oil rerefinery in Romania.
The $56 million project includes construction of a base oil rerefinery that can process up to 72,000 tons of waste oil per year and creation of a network for collection of waste oils. The rerefinery will be located on a 15-acre land plot in the southern Romanian city of Oltenita, a Danube river port.
Mazarali Kamumiya Saiyed, a majority shareholder in Green Oil and Lubes, said the loan was provided by the European Bank for Reconstruction and Development and Banca Comercial Romana, which together provided the loan.
We are honored to partner with two major international banks in developing a unique project in a strategic location in Romania, which connects eastern and central Europe. It will allow us to fully recycle waste oil collected in the region, Saiyed said in a recent news release.
Green Oil and Lubes will contribute $26 million of its own resources to the investment, while the remaining $30 million will be ensured by a term loan in equal measure signed by the EBRD and BCR, EBRD said in its Dec. 6 news release. BCR will also provide $8.7 million for the financing of working-capital needs and recoverable value-added tax to the development of the project.
Green Oil and Lubes said it expects to collect the majority of recyclable waste oil in the country and to create a product that is attractive and affordable for local customers. In addition, the construction of a brand-new facility will include a significant transfer of skills and technology, while providing more than 100 jobs directly and indirectly.
Green Oil and Lubes, part of a United Arab Emirates-based group of companies, announced the rerefinery project this past summer. The facility will use vacuum distillate technology and produce Group II base oils, which will comprise over 80 percent of the total output, according to Saiyed. Tar will account for 8 to 10 percent of output. The company expects plant commissioning to occur in the first half of 2019.
The company established a subsidiary, Better Environment and Eco System, to collect the waste oil. It will bring in raw material from Romania and nearby countries, Green Oil and Lubes said.
The company announced the implementation of similar rerefinery projects in Russia, the Middle East and South Africa.