The Baytown Facility is undergoing the second phase of a two-step development project alongside its joint venture partner, Pennzoil-Quaker State Company, a subsidiary of Shell

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Blue Tide Environmental completes initial phase of base oils re-refining facility. (Credit: 127071 from Pixabay)

Blue Tide Environmental (“Blue Tide”), an environmental company focused on developing a network of used motor oil (“UMO”) re-refining facilities across North America and portfolio company of Tailwater Capital LLC (“Tailwater”), announced the completion of the first phase of its base oils re-refinery located in Baytown, Texas (“Baytown Facility”). The Baytown Facility is undergoing the second phase of a two-step development project alongside its joint venture partner, Pennzoil-Quaker State Company, a subsidiary of Shell plc (“Shell”).

The state-of-the-art facility will process 5,000 barrels per day (“BPD”) of used lubricants into high-quality state of the art base oils and other co-products, such as gas oil and asphalt modifiers. The initial phase of the project will produce 4,500 barrels per day (BPD) of high-quality, low-sulfur vacuum gasoil (“VGO”) from UMO feedstock.

“We are thrilled to see this cutting-edge facility officially come online, as it marks a pivotal milestone for Blue Tide,” said Mark Bouldin, Chief Executive Officer of Blue Tide. “This project is a testament to our ongoing commitment to create the most sustainable base oils in North America. I want to extend my gratitude to the hard-working members of the Blue Tide team, as well as Tailwater and Shell, whose dedication and expertise helped make this vision a reality.”

The second phase of the project is now underway, which includes constructing a hydrotreater at the Baytown Facility to upgrade the VGO into superior-quality Group II+ base oils. The hydrotreater is anticipated to come online in the second quarter of 2024, and Blue Tide will sell VGO and other co-products, while it is being completed.

“Today, we celebrate the start-up of the initial phase of Blue Tide’s re-refining facility and are excited to complete the next phase of the project to produce high-performance re-refined base oils made with a lower carbon footprint,” said David Cecere, Partner at Tailwater. “We look forward to continuing our partnership with Blue Tide to support forward-thinking initiatives that drive positive change in the energy sector and contribute to a more sustainable future for us all.”

Source: Company Press Release