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SquareOne Energy LLC last month unveiled plans to build its first facility for recycling previously refined hydrocarbons into pipeline-compliant, on-road fuel products in the Philadelphia area, which it said would be the first of its kind.
The project is to be developed at PBF Energy Inc.’s refined products terminal in Paulsboro, NJ, on the Delaware River.
“Our Philadelphia facility will be the first used oil recycling operation in the northeastern U.S., as well as the most advanced and capable recycling asset in the country,” said CEO John Sadlowski.
The oil re-refinery would process “a broad spectrum of feedstock streams for our local communities into clean fuel products much needed by the transportation industry.”
The Philadelphia-based company has secured used oil feedstock commitments for more than 60% of its plant inlet capacity, adding that it “expects to be fully contracted at the point of full operation” in the first half of 2024.
A multi-year offtake deal was achieved with Sunoco LP, which agreed to purchase all the ultra-low sulfur diesel (ULSD) and low-sulfur naphtha products.
Management said the Paulsboro site’s “existing infrastructure, multiple modes of transport access and comprehensive utilities” significantly improve the economics of developing the facility. The site will house processing units as well as feedstock and finished product tank storage.
SquareOne reported that ULSD from the re-refinery would meet specifications for the Colonial Pipeline, a major East Coast fuels conduit. The ULSD “will be available for immediate delivery into vehicles, transportation pipelines, and marine vessels, making SquareOne the first facility in the nation to recycle discarded oil into high quality on-road fuel.”
SquareOne, which plans to license its technology for other facilities, reported that its re-refinery’s design applies unique front-end and pre-treatment processes. The firm’s take on re-refining would allow a facility to accept and process a wider variety of hydrocarbons than conventional recycling plants, which typically handle only used motor oil.
Axens Group is SquareOne’s partner for licensing the front-end pre-treatment facility and hydrocracker unit design technology.
In addition to used motor oil, the re-refinery would be able to process residual marine oils, unusable distillates mixed with gasoline, and “various other off-spec and distressed hydrocarbons” that it said are being improperly disposed of and otherwise wasted.
“As the country aggressively pursues steps toward energy transition to a cleaner future, so must the used oil re-refining space, which SquareOne is addressing through its advanced recycling process and move beyond existing, less complex technologies in the industry,” said management.
SquareOne’s founder Amanda Moninghoff said the firm is “bringing a paradigm shifting set of values and perspectives” to the re-refining industry. “The clear environmental and cultural benefit is palpable and will have a positive effect on the entire sector and help power us into a sustainable future.”
Management is working toward finalizing the engineering contract and potential commercial arrangement with PBF. Working with Philadelphia-based PhiCap Advisors LLC to secure project capital, SquareOne expects to start construction by the end of this year.
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