Vancouver, British Columbia, Canada-based Gen III Oil Corporation announced last Monday the signing of a Letter of Intent ("LOI") with Calgary,Canada-based Elbow River Marketing Ltd., a wholly owned subsidiary of Parkland Fuel Corporation, for a five-year off-take marketing agreement for 100% of Gen III's Group III and Group II+ base oils from its first re-refinery to be constructed on PFC's Bowden, Alberta distribution and storage facility, 100 km north of Calgary. Scheduled production is set for the beginning in Q4 of 2018. The facility is expected to be running at full capacity January 1, 2019.
Gen III is developing its first full-scale facility on an existing refinery site to make use of infrastructure already in place located in Parkland Fuels Bowden, Alberta, Canada, distribution and storage facility. The site will process 2,800 barrels per day of used motor oil into a range of base stocks and related petroleum products.
"We are proud to enter into this agreement with Elbow River as their reputation, expertise and stature in the lubricant, marketing and distribution industry in North America assure ourselves and our shareholders the long-range security that our high-quality base oils will be marketed by a premier corporation that will see us realize maximum value for our products," said Company CEO Greg Clarkes.
The parties anticipate to have the definitive agreement executed by the end of the month.
Elbow River acts as an intermediary in a variety of fuels markets across all of North America, bringing buyers and sellers together, as well as providing logistical services to facilitate delivery of a variety of energy products from the buyer to the seller. Elbow River is a wholly owned subsidiary of PFC, an approximately C$3 billion public corporation.
Gen III Oil Corporation is an innovative oil processing company with its ReGen™ re-refining technology, which will produce large quantities of Group III and Group II+ base oils. Gen III is developing their first full-scale facility in Bowden, Alberta with scheduled production beginning in Q4 of 2018.