In support of the government’s promotion of clean energy for China, Jebsen Group and CleanOil Investment Ltd. are cooperating to produce high-quality recycled base oil and lubrication oil for industrial and automotive applications.
The two partners are currently building an oil refinery in Gaolan Port Economic Zone, Zhuhai.
Taking advantage of CleanOil’s operational and technical expertise and patented oil re-refining technology, the new plant will recycle used lube oil to produce Group II base oil and high-quality lube oil for cars, trucks and industrial machinery. Production is expected to begin by the second half of 2015, with the plant eventually producing 20,000 tons of oil per year.
Jebsen Group will draw on its knowledge of China’s automotive aftermarket and its China-wide sales and distribution network of industrial products in the region to support the new business and meet growing demand for recycled lube oil.
At present, about 60-70%Â of China’s annual lube oil consumption of around eight million tons is collected for re-processing, but less than 10%Â of this is re-refined as lube base oil.
This percentage is set to rise as the practice of burning recycled lube oil or distilling it into low-grade fuel is phased out.
Closed loop recycling of lube oil at the new CleanOil plant will efficiently produce high-quality base oil of an industry-accepted standard without causing secondary pollution.
This will satisfy market demand for lube oil while reducing reliance on imported base oil.
It will also help to prevent used oil being dumped, thereby avoiding possible pollution of land and waterways or reused in a manner that can contribute to poor air quality.
