Finnish Rerefinery Targets Group II


L&T Recoil Oy has awarded consulting and engineering firm Poyry a 1.5 million (U.S. $2 million) contract to handle engineering services for an oil rerefining project planned in Hamina, Finland.

Our target is Group II, L&T Recoil managing director Kai Lofgren told Lube Report. The plant will sell its base oil within Finland and export to other countries as well, according to Lofgren. Finland is a very small consumer of base oils, he noted.

In September 2006, Finnish company Lassila & Tikanoja and key personnel from GT Trading Oy established L&T Recoil Oy Ltd. as a joint venture in Espoo, Finland, to build the waste oil rerefinery. Lassila & Tikanoja owns 50 percent of the venture. The approximately 20 million (U.S. $26.7 million) plant is scheduled for completion in early 2008, with an estimated capacity of 60,000 metric tons per year.

This plant is a step forward in the hazardous waste processing chain, in accordance with the companys strategy, Lassila & Tikanoja said in its fourth quarter earnings statement for 2006. It will also present new opportunities for growth and internationalisation.

Lassila & Tikanoja, based in Helsinki, specializes in environmental management and property and plant support services. Fellow Finnish company GT Trading Oy, headquartered in Espoo, focuses on international trade of oil products, including supplying raw materials and finished products. Customers include Shell, Esso, Glencore and Total.

According to Poyry, the rerefining plant will produce base oil for the lubrication industry from various waste oils. Byproducts of the process include light fuel oil and bitumen.

Poyry said that raw material for the plant will be collected in the Baltic Sea countries. About 30,000 metric tons of used oil per year are generated in Finland, according to the engineering firm.

According to Poyry, implementation of the rerefinery project will focus on environmental issues and safeguarding sustainable development. For several years, L&T has invested in recycling of hazardous wastes, and its oil regeneration project is a natural step forward in the refining chain of waste materials, the company said.

Poyry, based in Vantaa, is aconsulting and engineering firmserving the energy, forest industry and infrastructure and environment sectors.

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