Vertex Energy, Inc. announced it is advancing a project at its Mobile, Alabama, refinery to produce crude-derived conventional Group III base oils through the company’s existing hydrocracker and related processing infrastructure, providing lubricant manufacturers and blenders with an additional domestic source of high-quality Group III supply.
We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking reliable domestic supply. - Vertex Energy
The capacity increase for the project
The project is designed to add an incremental 6,000 barrels per day of conventional Group III production capacity and support production of 4 cSt, 6 cSt, and 8 cSt Group III base oils using an existing crude-derived hydrocracked vacuum gas oil stream produced at the company’s Mobile, Alabama, refinery. Combined with the company’s existing re-refined Group III base oil production, this additional capacity is expected to make Vertex the leading Group III producer in North America. Vertex has completed preliminary design work and has procured a high-pressure lubricants hydrotreating unit. The company plans to start production of conventional Group III base oils in 2029.
“This project reflects a major milestone in our continued focus on improved profitability and margin stabilization,” said Mark Smith, Chief Executive Officer of Vertex Energy. “We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking a reliable domestic supply.”
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Group III base oils are used in a range of high-performance lubricant applications, including automotive and industrial lubricants that require strong performance characteristics and consistent product quality. The project will complement Vertex’s existing fuels and re-refined base oil operations, with the company continuing to produce transportation fuels and 4 cSt and 6 cSt re-refined Group III base oils as part of its integrated platform while adding conventional Group III production capability.
