Pennzoil-Quaker State Company, a subsidiary of Shell plc, and Blue Tide, a company developing a network of used motor oil (UMO) re-refining facilities across North America and a portfolio company of Tailwater Capital LLC, announced the completion of Blue Tide’s world-scale re-refining facility in Baytown, Texas.
“This achievement underscores the incredible teamwork and vision of our dedicated team,” said Terry McHugh, CEO of Blue Tide. “We are proud to contribute to a circular economy by delivering innovative, sustainable solutions that transform used lubricants into clean, high-performance base oils, reducing waste and promoting resource efficiency.”
The fully operational Baytown Facility features one of the largest hydrotreaters in the re-refining industry, enabling Blue Tide to produce and sell high-quality Group II+ base oils. This UMO processing facility delivers high performance base oils at a lower carbon footprint compared to traditional Group II+ base oils.
“Completing the Baytown Facility is a significant milestone in our commitment to providing high-performance lubricants to our customers with a lower carbon footprint,” said Ade Ajala, CEO of Pennzoil-Quaker State Company and SVP at Shell Lubricants Americas. “We’re proud of this collaboration with Blue Tide, leveraging innovative technology to transform re-refined base oils into sustainable solutions that complement our existing range of high-quality products and place us at the forefront of tomorrow’s lubricants and fluids.”
The Baytown Facility can process 5,000 barrels per day (bbl/d), with conversion into high-quality base oils and other products like gas oil and asphalt modifiers. The addition of the hydrotreater enhances efficiency and quality by reducing impurities and improving the performance of re-refined base oils, ensuring they meet the growing industry demand for higher-quality, sustainable lubricants. Blue Tide’s Baytown Facility is uniquely positioned on the Cedar Bayou near the Houston Ship Channel to strategically transport raw materials and products by truck, rail and barge.
“Tailwater is thrilled to see Blue Tide reach this important milestone,” said David Cecere, Partner at Tailwater Capital and Blue Tide Board Member. “The Baytown Facility represents the future of sustainable innovation in the lubricants industry, and we’re excited about its potential to drive growth, while supporting a circular economy.”