Verolube Announces the Development of Two Used Oil Re-Refineries and Acquisitions
Wednesday, December 4, 2013
Posted by: Michele Choi
Press Release from NORA Member VeroLube, Inc.
VEROLUBE ANNOUNCES THE DEVELOPMENT OF TWO USED OIL RE-REFINERIES AND THE PLANNED VERTICAL INTEGRATION THROUGH THE ACQUSITION OF USED OIL COLLECTION COMPANIES
Calgary, Alberta and Dallas, Texas, November 13, 2013 -- VeroLube Inc. ("VeroLube” or the "Company”), a provider of used oil re-refining services and route based collection of used motor oil announces today the development of the first two (2) new used oil re-refineries using VeroLube’s patented, proprietary and certified ReGenTM re-refining process. These initial re-refineries will be located in Bowden, Alberta Canada and Houston, Texas.
"These first two re-refineries will commence VeroLube’s strategic growth plan for both the vertical integration of strategic used oil collection companies and the development of strategically located used oil re-refineries worldwide utilizing our patented and proprietary ReGenTM re-refining process” said Mr. Leslie Wulf, Chief Executive Officer of VeroLube.
"VeroLube has secured the optimal strategic and financial partners to execute its growth and development plans” said Mr. Bruce Hall, Chief Financial Officer of VeroLube.
The anticipated closing for the acquisitions of used oil collection companies under contract will commence in the first quarter 2014, and the first two re-refineries are under design with construction to commence in 2014.
VeroLube’s ReGenTM re-refining process was created, tested, certified and patented over the past ten years. This process creates four high quality products with ninety seven percent (97%) recovery from the used oil input. In the certification process, used oil from various locations worldwide were successfully processed through the ReGenTM re-refinery process. Unique to the ReGenTM process is that approximately 50% of its finished product is Group III base lubricating oil (synthetic quality) without requiring hydrotreating.
"The ability for the Company to re-refine various grades of used oils into high quality products, especially Group III base lubricating oil without hydrotreating, gives VeroLube a significant market advantage over other used oil re-refinery operations” said Mr. Wulf.
VeroLube’s used oil re-refineries are being engineered and designed in a modular train format to allow for the re-refinery to process different grades of used oil and allow for expansion based on the availability of used oil feedstock. The Company has engaged Houston-based Wood Group Mustang (www.mustangeng.com), a world-class engineering, procurement and construction services firm, for design and development services, which will be executed from both its Calgary, Alberta and Houston, Texas offices.
"Wood Group Mustang has an extensive background in both traditional refining and re-refining and has been involved with projects involving several re-refinery processes over the years. The VeroLube-patented ReGenTM process is definitely an advantaged process that can produce advantaged outcomes,” said Mr. Rick Kolodziej, Process Technology Manager, Wood Group Mustang.
Bowden, Alberta Canada: This re-refinery will have an initial throughput capacity of 1,000 barrel per day (BPD) (15 million gallons annually) which will thereafter be expanded to a 2,000 BPD (30 million gallons annually) throughput capacity. The re-refinery will be located in Bowden, Alberta, just north of Calgary on property owned by Parkland Refining Ltd. ("Parkland”) (www.parkland.ca). This site provides significant existing infrastructure and permitting in place that reduces the overall capital cost as compared to a pure "greenfield” location. Parkland is the largest independent distributor of fuel and oil in Canada and brings several strategic benefits to VeroLube including access to terminal services as well as the potential for process operations personnel.
Houston, Texas: This re-refinery will have an initial throughput capacity of 4,000 BPD (60 Million gallons annually) with the ability to expand to 6,000 BPD (90 million gallons annually) at a site located on the Houston ship channel.
About VeroLube, Inc.
VeroLube, Inc. ("VeroLube”) is a provider of used oil re-refining services using its own patented and certified ReGenTM re-refining process producing high yields of quality hydrocarbon products from used motor oils and is a vertically integrated route based collector of used motor oil.
For further information: Leslie Wulf, Chief Executive Officer (214) 679-5263 or Bruce Hall, Chief Financial Officer (972) 841-6298 of VeroLube, Inc. (www.verolube.com).