Are the icy winds of global base stock oversupply likely to deter investors who want to build used oil rerefineries? Not yet, it seems. A number of new projects have recently unfurled on drawing boards around the United States and elsewhere.
Alabama Green Lubricants in January said it had secured financing needed to build a 32 million gallon per year rerefining project in Childersburg, Alabama. Ramki Srinivasan, CEO of the venture, says the company is working now to contract with existing used oil collectors throughout the South for its supply of used oil, much of which he now sees going into the lower-value burner market. The plant is targeted to be operational in mid-2014 and will license used oil processing technology from Chemical Engineering Partners, which produces API Group II base oil.