JV to produce high quality re-cycled base oil for industry and automotive
Cleaning up their act Image: Jebsen Group |
Jebsen Group and CleanOil Investment Ltd have penned a strategic agreement to collaborate on producing clean energy for the Chinese market.
Hong Kong-based Jebsen Group, a marketing and distribution company, and Zhuhai CleanOil Petrochemical Ltd will build a state of the art refinery in the Gaolan Port Economic Zone, Zhuhai.
According to Jebsen, the new plant will take used lube oil and re-refine it to create Group II base oil. The patented technology will also be able to produce high-quality lubes for cars, trucks and industrial machinery.
The government has increasingly turned its focus to cleaning up the nation's auto sector, especially in major cities like Zhuhai's neighbouring Shenzhen. It recently introduced National IV diesel standards for the nation's truck industry.
The two companies will combine technical and financial expertise to support China's development of clean energy products. Currently, 60-70% of the nation's 8m ton consumption is collected for reprocessing, but only 10% of it is re-refined as base oil, with most of this either burned or turned into low quality fuel oil. Increasingly stringent regulations, however, are likely to phase this behaviour out.
Jebsen and CleanOils plant, which is due to come online in the second half of 2015, will eventually produce around 20,000 tons of oil a year. As well as catering to a rising demand for personal vehicles, the plant will also reduce China's dependency on imported oil.