Chemie-Tech DMCC in UAE will set up through its subsidiary in Romania, Green Oil and Lubes SRL, an oil recycling plant in southeastern Romania, town of Oltenita (Calarasi County), on the shore of the Danube river, following an investment of USD 56 million, European Bank for Reconstruction and Development (EBRD) informs in a press release on Tuesday.
USD 15 million is covered by a loan granted by EBRD.
“The project consists of the construction of a new greenfield plant to process and recycle used lubricating oils into Group II base oil of suitable quality for sale and reuse in the automotive and industrial lubricant blending sectors. In addition, the investment will entail the creation of a national used lubricating oil collection network, to provide the processing facility with the required feedstock,” the release reads.
The EBRD’s contribution will be used to partially fund the set-up of the used lubricating oil recycling plant, with an expected recycling capacity of 73,000 metric tons per year. The project will be the first of this type in Romania and in the CEE region, where demand has so far been covered through imports. Through this investment, the company will tap into a new market with a strong potential for growth, given the regulatory drive for recycling.
Chemie-Tech DMCC group has a vast experience in building plants based on a similar technology as that used in the Romanian investment, having previously built a similar plant in UAE and currently building another used lubricating oil refinery in South Africa.
The project does require an environmental impact assessment (EIA) in terms of the EU EIA Directive due to the volumes of oil processed but this is yet to be decided by the authorities. As the project is located in Natura 2000 area, the company has conducted biodiversity studies and an appropriate assessment which are due to be submitted to the authorities shortly.