Vertex Energy expands storage of used oil in Myrtle Grove
Vertex Energy, a specialty refiner and marketer of high-quality hydrocarbon products and one of the largest used oil refiners in the U.S., has started construction on a new facility designed to recover distressed hydrocarbon streams from tankage and barges. The "Riverside Facility" is located adjacent to the newly revitalized Myrtle Grove complex in Belle Chasse, Louisiana, U.S.A., which is currently operated by Vertex Energy's recently launched H&H Oil Recovery Services division.}
The new facility, which is expected to be completed by the end of the second quarter 2021, will supply the Myrtle Grove complex with a local, continuous supply of cost-advantaged, distressed product streams for use as feedstock. This feedstock supply will be reclaimed and recycled at Myrtle Grove, resulting in the yield of a higher-value intermediate stream that Vertex Enegy will then utilize across refining assets, and sell to other end-markets.}
Riverside facility overview
The Riverside facility has an estimated construction cost of approximately USD1.2 million. Vertex Energy expects that, upon completion, the facility has the potential to reduce current transportation and logistics expenses by at least USD0.5 million annually.}
The facility will be equipped to both ship and receive feedstock through truck and barge, allowing for significant options and transportation efficiencies.
The site will include 30,000 barrels of compartmentalized tankage capacity and specialized process units designed to pre-process distressed hydrocarbon streams.}
By year-end 2022, the oil reclamation and recycling operations at Myrtle Grove are expected to process more than 7 million gallons of residual oil annually. Vertex Energy is currently targeting USD3 million of annualized incremental EBITDA improvement at Myrtle Grove by year-end 2022.
"The Riverside facility is expected to provide our Myrtle Grove complex with extensive, direct-to-marine gathering and storage capabilities, beginning in the third quarter 2021," said Benjamin P. Cowart, president and CEO of Vertex Energy.
"Vertex remains a leading participant in the global low-carbon energy transition, a company dedicated to creating value through high-return investments that yield long-term benefits for all stakeholders. We look forward to expanding our presence within the renewable energy vertical, both on an organic and inorganic basis, pursuing opportunities that position us to generate consistent profitability in the niche markets we serve."