Germany's Avista Oil is planning to add Group III re-refined production capacity at its German Dollbergen site by 2024.
Upgrades at the 85,000t/yr Dollbergen plant have begun, with works expected to be completed by 2024, Avista told Argus at the Argus Global Base Oils Conference.
The upgraded facility will have the capacity to transfer between Group I and Group III products on a run to run basis according to Avista.
The firm expanded its re-refining capacity by 20-30pc at its German and Danish sites last year.
Re-refined base oils have become more attractive to European blenders, which face increasing pressure to reduce their carbon footprints. Re-refining takes used lubricants and recycles them into base oil for new lube production, reducing the amount of industrial waste and crude feedstock required for the industry.
The Union of the European Lubricants Industry (UEIL) and the representative body for the European lubricants industry Atiel announced that they are working on launching a harmonized Europe wide ‘cradle-to-gate' basis carbon footprint methodology.
Re-refined base-oils could have a 71pc lower output of CO2 emissions compared with virgin products, according to a recent study from UEIL, which could support recycled lubricant products premiums over virgin base oils.
Avista told Argus that itsGroup I production emits up to 90pc less carbon than virgin products.
The firm's decision to transfer to Group III production comes as Group III products reach record highs. Argus assessed 8,6, and 4 cst fca NWE Group III spot prices have risen to $2,103/t, $2,151/t, and $2,156/t respectively on 17 February, from $161.5/t, $164.5/t, and $204.5/t six months earlier. Meanwhile, European Group I prices have been hit by new entrants as well as lower demands.
Avista will begin taking pre-marketing orders at the end of 2023, it said.
