Oiltanking green lights FEED of ReGen III’s Texas re-refinery
ReGen III Corp. announced that further to its U.S. Gulf Coast Site and Logistics Letter of Intent with Oiltanking North America, LLC on July 5, 2021, it has received a Letter of Readiness from Oiltanking to proceed with storage and logistics assets for a used motor oil re-refinery production facility at the Oiltanking Galveston County Terminal in Texas City, Texas, U.S.A.
“We are on the verge of a very important corporate milestone. Concluding the final Ground Lease and Terminal Services Agreements with Oiltanking will provide ReGen III with tens of millions in up-front capital cost savings, while reducing dilution at both the public and operating company levels and outsourcing a large portion of the company’s terminal logistics operations to experienced professionals, further de-risking the project,” said Greg Clarkes, CEO of ReGen III.
“Our primary re-refinery project in Texas is the first of a strategic number of sites we are in discussions to develop globally. All in all, we are looking ahead with great confidence,” Clarkes added.
Oiltanking has successfully completed work on the Pre-FEED/Front-end loading (FEL-2) validation and is expecting the final independent report from its engineers, Burns & McDonnell, soon. Oiltanking confirmed there will be no changes to the fees outlined in the LOI. Based upon the preliminary findings, Oiltanking has notified ReGen III of their readiness to proceed to Front-End Engineering and Design (FEED) on October 18, 2021.
Oiltanking’s FEL-2 pre-feasibility study covered preliminary equipment design and layout in order to develop a cost estimate, a schedule estimate, and to make any critical decisions that will influence the final design of the storage tanks, loading/unloading pipelines, rail and marine loading/unloading facilities and other logistics assets. Oiltanking will effectively design, construct, operate, and maintain the Oiltanking Logistics Assets to support the re-refinery.
Ground lease and site services agreement
Alongside the progress made with the Oiltanking Logistics Assets engineering, ReGen III and Oiltanking continue to advance rapidly towards finalizing and signing the long-term ground lease and the site services agreement.
“We are proud of the progress the teams at ReGen III and Oiltanking have made in developing this infrastructure project which helps pave the way to a more sustainable future. As one of the largest independent tank storage providers for gases, chemicals and petroleum products in the world, Oiltanking is successfully active in the engineering, procurement and construction of tank terminals. Our experienced team is working closely together with ReGen III on a tailor-made and cost-effective infrastructure solution for their re-refinery facility at our terminal in Texas City. We look forward to advancing the project as it will provide a much-needed domestic supply of base oils recycled from used motor oil thus, strengthening the circular economy,” said Dan Withers, director, Business Development, Oiltanking.