London-based transformer oil rerefiner Hydrodec, in its year end 2012 earnings release dated March 19, 2013, said that the company plans to develop a pilot plant later this year focused on re-refining used paraffinic base stocks and potentially producing API Group II and Group III lube base oils.
In December, Hydrodec announced proof of concept that extends its proven technology into used paraffinic feedstock, both industrial and used crankcase motor oils by producing a Group II base oil from a wide range of used industrial oils. The company said that the test results are extremely encouraging and will support a move to full pilot plant and testing in 2013.
Hydrodec CEO Ian Smale said the technology offers the potential for new types of high quality, low carbon lube base oils that meet or exceed higher-end specifications, being Group II, II+ and/or Group III. “Market intelligence suggests that the ability to produce a Group III product in particular would mark a significant breakthrough for re-refined products,” he said. “We are confident that we can develop the process chemistry and reaction process, as well as process equipment design, manufacturing routes and process control philosophy that will be internationally protectable through patent. We are seeking grant funding to support this development, and are in discussions with potential partners for future feedstock and product development.”
Hydrodec reported record revenue of $26.1 million for the full year ending December 31, 2012, up 17% compared to $22.4 million in revenue for full year 2011, for an eighth consecutive year of growth. Gross profit rose 8% to US$5.4 million compared to US$5.0 million in 2011. Sales volume of its SUPERFINE(TM) transformer oil and base oil increased 11 percent to a new record of 22.5 million liters for 2012, from 20.3 million liters in 2011.
Hydrodec, with corporate offices in London, collects spent oil, including PCB contaminated transformer oil as the primary feedstock and processes it into naphthenic base oil at its two main plants in Young, New South Wales, Australia and in Canton, Ohio in the United States.