TopSail Energy to invest in used motor oil recycling facility
TopSail Energy, LP, a recently-formed midstream energy company based in Woodlands, Texas, U.S.A., has completed the acquisition of a 44-acre undeveloped industrial site in Baytown, Texas, to construct a new processing facility to recycle and re-purpose used motor oil into marketable feedstocks, fuels and additives.
TopSail is targeting the first quarter of 2017 to place the Baytown facility in-service, with the ability to receive and process more than 125,000 gallons per day of used motor oil into a wide range of products such as fuel for use in marine vessels and power plants, feedstocks for refineries, and additives for home heating oil and asphalt.
In addition to establishing a premier Gulf Coast site for recycling used motor oil, TopSail’s Baytown property has nearly 40 acres of undeveloped industrial-zoned land being marketed for liquids storage, logistics and processing opportunities.
Financing for the initial Baytown site and future locations will be provided by TopSail’s equity sponsor, Tailwater Capital LLC. Dallas-based Tailwater Capital LLC manages more than USD 1.7 billion in equity capital.
“We are excited to acquire a strategic property with multimodal capabilities as our first location in support of a long-term national processing arrangement for which we plan to construct a number of regional locations across the U.S. over the next 18 months,” said Jim Lelio, TopSail CEO.
“Our team has developed a scalable proprietary design to ensure the highest level of service to our customers and we believe we have identified a compelling commercial strategy that provides the industry an attractive alternative that is also more environmentally friendly than many current alternatives for used motor oil. This is a win-win strategy for all stakeholders and we see tremendous opportunity in the current landscape for TopSail to expand beyond its initial Baytown site.”