Shell and Blue Tide complete used oil re-refining plant in Baytown

Pennzoil-Quaker State Company, a subsidiary of Shell plc, and Blue Tide Environmental, LLC, a company backed by private equity firm Tailwater Capital, announced the completion of Blue Tide’s world-scale used oil re-refining facility in Baytown, Texas, U.S.A.

Pennzoil-Quaker State Company, the operating entity for Shell Lubricants in the United States, acquired a 49% equity interest in Blue Tide Environmental LLC in December 2022. This acquisition established a joint venture between Pennzoil-Quaker State and Blue Tide Environmental for the development and operation of the Baytown facility.

The facility in Baytown, Blue Tide’s first-ever re-refining plant, is touted to have one of the largest hydrotreaters in the re-refining industry. It is capable of processing 5,000 barrels per day of used oil into high-quality Group II+ base oils, as well as gas oil and asphalt modifiers. Safety-Kleen’s East Chicago facility in Indiana, U.S.A., is the largest used oil re-refinery worldwide.

The Baytown plant’s hydroprocessing capabilities enable the production of re-refined base oils with reduced impurities and improved quality, addressing increasing industry demand for environmentally responsible lubricants. Positioned near the Houston Ship Channel, the facility is optimally located to receive and deliver materials via truck, rail, and barge.

Terry McHugh, chief executive officer of Blue Tide, said the project reflects the company’s mission to deliver sustainable solutions by transforming used lubricants into clean base oils that support a circular economy and reduce environmental impact.

Ade Ajala, chief executive of Pennzoil-Quaker State Company and senior vice president at Shell Lubricants Americas, said the facility enhances Shell’s ability to supply high-performance lubricants with a lower carbon footprint, using innovative technology to complement its existing product range. 

Re-refined base oils (RRBO) have a lower carbon footprint than virgin base oils, by as much as 70%, according to several industry experts.

David Cecere, partner at Tailwater Capital and board member of Blue Tide, said the facility is an example of sustainable innovation in action and will contribute to the growth of circular practices in the lubricants industry.