|
New
Rerefiner Says Less is More
By
Tim Sullivan
A new supplier is testing its theory that smaller is better, as it
tries to make a go of rerefining used lubricating oil in the United
States.
Oil Re-Refining Co. has opened a plant in Portland, Ore., that produces
approximately 500 barrels per day of base oils. Through a joint venture
it plans to build another plant of the same size near Reno, Nev.
Although small compared to existing facilities, the two plants together
will increase rerefined base oil capacity in North America by 16
percent. According to Orrco officials, they also operate on a scale
that should improve the viability of rerefining.
Orrco, a private company based in Portland, collects a variety of
wastes throughout the northwestern United States. It claims to be the
region’s largest collector of used motor oils. It also collects used
oil filters and oily solids, animal fats and greases, and used tires
and provides wastewater treatment services.
Officials say the company has worked the kinks out of the Portland
rerefinery after starting operations a few months ago. The plant has
capacity to process nearly 600 b/d of used oil, with 80 percent of its
output being Group I 100 and 300 solvent neutral base oils. The
remaining output is diesel fuel and asphalt flux.
Orrco is a partner with Best Energy Inc., of Reno, Nev., in Encore
Energy, which is building the second plant outside Reno. Orrco
President Bill Briggs said Encore has all necessary permits and is
preparing to begin construction, which should be finished in six or
seven months.
At the moment, Orrco is selling most of its base oils as industrial
fuels, but Briggs said the company is working to develop outlets in the
industrial lubricant market, which would offer better prices.
Rerefined base oils have been slow to catch on in North America. Aside
from Orrco, the continent has just four plants that produce them, with
a total capacity of 6,200 b/d. Safety Kleen Corp., which accounts for
81 percent of that capacity, emerged from three years of bankruptcy
just eight months ago.
Briggs predicted the Orrco and Encore plants will be more profitable
for two reasons. First, they cost $3.5 million to build, compared to
much larger price tags for existing plants.
“Those operations had such large investments that I don’t know if they
ever made money,” Briggs said.
The processes used by rerefiners such as Safety Kleen, Evergreen Oil
and Newalta include distillation and evaporation followed by severe
hydrotreating, producing oils of a higher quality.
The second advantage for the new plants, he said, is the technology
they use – a rerefining process developed by Pesco (Pragmatic
Environmental Solutions Co.), of Roanoke, Va. Briggs said Pesco’s
process, based on evaporation and clay processing, is efficient and
yields an unusually high proportion of base oils.
[PRINTER
FRIENDLY VERSION]
|
.gif){kind=spacer}