ReGen III is a cleantech company commercializing patented, proven technology to upcycle Used Motor Oil (“UMO”) into high-value, synthetic-grade lubricating base oils. With a focus on creating sustainable solutions that generate better environmental outcomes and compelling economics, the ReGen™ process is expected to reduce CO2e emissions by 82% as compared to virgin crude derived base oils combusted at end of life. ReGen III is currently developing its inaugural project, a 5,600 bpd UMO re-refinery in Texas, where it has completed FEL-2 and value engineering with the support of world-class engineering, construction and licensed vendor teams – including Koch Project Solutions, LLC, PCL Industrial Management Ltd., Koch Modular Process Systems and Duke Technologies.
Operating in an underserved segment of the base oil market, ReGen III aims to become the world’s largest producer of sustainable Group III base oil.
Company Highlights
- Sustainable & Circular. Over 800 million gallons of UMO generated in the U.S. (58%) is burned or dumped each year.(1) ReGen III’s proposed Texas facility would divert 10% of this back into the circular economy while reducing CO2e emissions by 36% compared to the production of virgin base oils and by over 900,000 mt CO2e / year as compared to the production and burning of virgin base oils. In addition, the ReGen™ process is 99.7% less eco-toxic than UMO dumped into the environment.(2)
- Innovative Technology & Compelling Economics. Leveraging standard refining technologies, the proprietary ReGen™ process produces industry-leading yields (53%) of high-value Group III base oils, historically priced at a 50% premium(3) to the Group II base oils produced in traditional re-refining. By cost-effectively capturing the price premium for Group III, ReGen’s process is expected to generate industry-leading EBITDA margins.
- De-Risked. ReGen III has exceptional technical partners and is working to proceed to final engineering. With commercial operations targeted 24-30 months post-FID, ReGen III has completed extensive pilot testing, selected a site, signed NDAs with potential offtake parties, received a US$108M indicative terms sheet from Export Development Canada, and signed LOIs for over half its feedstock requirements.
Sources:
(1) Used Oil Management and beneficial Reuse Options to Address Section 1: Energy Savings from Lubricating Oil Public Law 115-345” (available at energy.gov). 2022 value based on 2008 – 2018 growth rates and data, extrapolated from 2018.
(2) GHD Services Inc. Greenhouse Gas Statement: ReGen III Report dated June 14, 2022.
(3) Argus Media, January 2014 to December 2023 average, USGC Domestic Spot pricing, Group III 4 cst and Group II N100.