ReGen III signs offtake deal with bp for re-refined base oil
ReGen III Corp., formerly known as Gen III Oil Corporation, has signed a definitive, multi-year offtake agreement for bp to purchase all of the company’s base oil to be produced from its proposed 5,600 barrel-per-day (bpd) U.S. Gulf Coast re-refining facility. The USGC Facility will serve as the foundation for ReGen III’s future growth plans.
“This off-take supply agreement is a landmark company milestone as it advances our proprietary and patented ReGen™ technologies to in-market, commercial adoption. This agreement rewards our long-standing conviction that our solutions address the growing global demand for environmentally friendlier base oil production by simultaneously recycling waste and reducing greenhouse gas emissions,” said Greg Clarkes, chairman and CEO of ReGen III.
ReGen 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. From a life-cycle assessment standpoint, the initial facility is estimated to eliminate 725,000 tonnes/annum of CO2 equivalent emissions versus the burning or current disposal methods for used motor oi.
The company’s strategic objective is to become the leader in the global re-refined base oils market. Securing the off-take supply agreement with bp allows the company to complete non-dilutive, best-terms financing to meet expansion and market penetration goals. The company plans to identify a USGC Facility site shortly and move through project financing talks and all other necessary steps to advance the USGC Facility in a timely manner.
The agreement is the successful culmination of previous and related disclosure of a “potential client” and confidential negotiations with a “super major” in past press releases.