Vertex Energy Plans Group III Base Oil Expansion at Alabama Refinery

Vertex Energy plans to add 6,000 barrels per day of Group III base oil production at its Mobile, Alabama refinery, expanding domestic supply for lubricant manufacturers and targeting startup by 2029.

(P&GJ) — Vertex Energy is advancing a project at its Mobile, Alabama refinery that would add 6,000 barrels per day (bpd) of conventional Group III base oil production capacity, expanding the company's presence in the North American lubricants market.

The project will utilize the refinery's existing hydrocracker and related processing infrastructure to produce 4 cSt, 6 cSt and 8 cSt Group III base oils from hydrocracked vacuum gas oil streams already generated at the facility. Vertex said preliminary engineering work has been completed and a high-pressure lubricants hydrotreating unit has been procured.

If completed as planned, the project would begin producing conventional Group III base oils in 2029. The company said the additional capacity, combined with its existing re-refined Group III production, would position Vertex among the largest Group III producers in North America.

"This project reflects a major milestone in our continued focus on improved profitability and margin stabilization," CEO Mark Smith said. "We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking reliable domestic supply."

Group III base oils are used in automotive and industrial lubricants that require high-performance characteristics and consistent quality. Vertex said the expansion will complement its existing fuels and re-refined base oil operations while increasing its ability to supply the domestic lubricant market.