In response to the Chinese government’s promotion of clean energy, Jebsen Group and CleanOil Investment Ltd. are teaming up to produce high-quality recycled base oils and blend finished lubricants in the Gaolan Port Economic Zone, Zhuhai province, China.
The re-refinery, which will produce Group II base oils, is expected to be operational by the second half of this year. Its capacity is 20,000 tonnes per year.
Currently, about 60-70% of China’s used lube oil is collected for re-processing, out of the eight million tonnes collected annually, but less than 10% is re-refined as lube base oil. Often, re-processing consists of burning the used oil or distilling it as low-grade fuel. The government is discouraging this practice.
In this partnership, Jebsen will contribute its knowledge of the automotive aftermarket in China, which it has gained from distributing and selling industrial products across the country. CleanOil will provide the patented re-refining technology.
Jebsen Group is a marketing and distribution company based in Hong Kong. Besides industrial products, it also markets luxury products, beverages and electronic consumer goods.
Established in 2002, CleanOil Investment Ltd. specialises in re-refining used oil. Its process is said to have a recovery rate of more than 90% and produces almost zero waste.
“As a technology innovator, CleanOil is pleased to combine our strengths with Jebsen Group to support China’s green growth. Jebsen’s expertise and reach in the industrial and automotive sectors will help us grow the market for high-quality recycled lube oil to benefit the environment and contribute to China’s continuing economic growth,” said Antony Louis Marden, chairman of CleanOil Investment Ltd.
Said Hans Michael Jebsen, chairman of Jebsen Group: “Environmentally sound recycled lube oil represents a valuable addition to our portfolio of products and the business is an excellent fit for our expertise as a leader in China’s industrial sector for over 100 years. We are delighted to partner with CleanOil to offer a highly efficient and environmentally friendly way to reclaim and reuse spent oils. By establishing this new business and by developing the national market for recycled lube oil, we are furthering our commitment to a greener and more sustainable China. ”
As a socially responsible company, Jebsen Group works with partners and employees to support energy saving, waste reduction and ensure compliance to environmental laws.
In 2009, Jebsen established a carbon emissions objective to reduce carbon intensity (carbon emissions per unit revenue) by 20% by 2013. Despite operating a growing company, Jebsen reduced its carbon intensity by 22% in 2013. It has also invested in carbon-offsetting projects and purchased carbon credits to now achieve carbon neutrality for a second consecutive year.