Gen III Oil Corporation announced that it has signed a Letter of Intent (LOI) for the offtake of all of Gen III’s future production of Group II+ and Group III base oils from a proposed 5,600 bpd marine terminal facility in or near Houston, Texas, U.S.A. The name of the offtaker was not disclosed, other than that it is a “super major” (SM).
The offtaker will also have rights related to all future production of Gen III’s Group II+ and Group III base oils from additional facilities to be constructed by Gen III globally.
Gen III’s proprietary and patented ReGen™ technologies re-refine used lubricating oils to produce high-quality Group II+ and Group III base oils that fill the onshore North American production shortfall. Gen III’s re-refining solutions address the growing global demand for environmentally friendlier base oil production by simultaneously recycling waste and reducing greenhouse gas emissions.
The company’s strategic objective is to become the leader in the global re-refined base oils market. Securing an offtake supply agreement allows Gen III to complete non-dilutive financing to meet expansion and market penetration goals.
“This offtake supply LOI is the penultimate milestone agreement as Gen III moves from vendor-scale pilot plant testing to in-market, commercial adoption,”said Greg Clarkes, chairman and CEO of Gen III. “The company’s mandate is to leverage Gen III’s proprietary ReGen™ re-refining technologies through SM’s extensive global footprint and experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions. Congratulations to our team.”
The LOI covers a minimum five-year period with further extension options.
Gen III is currently working with the super major to expedite a definitive agreement, further detailing their commercial relationship. The LOI announcement follows previous and related disclosure of a “potential client” and confidential negotiations with a “super major”.
About Gen III
Gen III owns a portfolio of patented technologies that enable used motor oil (UMO) re-refineries to produce a higher value product mix of base oils than traditional methods, including 55% Group III. For more information, visit www.geniiiesg.com.