The Hydrodec Group has entered into an agreement with Peel Ports Group for a long term lease, as part of plans to create the UK’s first purpose built oil re-refinery.

The AIM-listed company, which operates two other used oil re-refineries, in Canton, Ohio and in New South Wales, Australia, is now bringing forward an application to develop a facility to re-refine used oils in the UK, to be sited on this land at Port Wirral in Eastham.

The re-refinery process transforms used oil which would otherwise be treated as a waste product into a new product which can be re-used as base oil. The regenerated base oil is used as a building block to create lubricants which are used in a wide range of applications but particularly in the automotive and industrial sectors.

Hydrodec chose Peel Port’s new Port Wirral site in Eastham for its UK re-refinery in order to take advantage of the excellent transport connections by road, rail and water along the River Mersey and Manchester Ship Canal.
Basing themselves in the North West of England also allows Hydrodec to tap into the established petrochemicals expertise in the region.

Subject to planning permission under the Nationally Significant Infrastructure Planning regime, the nine acre Eastham site at Queen Elizabeth II Docks at the mouth of the Manchester Ship Canal forms the first phase of an approximate £40million development.

The new re-refinery is set to create up to 40 jobs and apprenticeship opportunities, and will support further jobs during the construction phases of the facility.

The news comes just four months after specialist food and logistics provider, Culina, signed a deal to become the anchor tenant of Peel Ports’ new £125m multi-modal logistics hub on the Manchester Ship Canal called Port Salford.
As part of plans to develop the re-refinery, Peel Ports will invest more than £400,000 to relocate and provided an upgraded pitch, changing and club facilities for community football team MSC Eastham.

Peel Ports has worked closely with the club, Wirral Council and Sport England to finalise a solution and location which meets MSC Eastham’s growth aspirations and delivers long term value to the local community.

Peel Ports is currently embarking on ambitious growth plans in the North West, with the company already investing £300m to create the UK’s most centrally located deep water container terminal, known as Liverpool2.

, CEO, Peel Ports Group said:

“The deal with Hydrodec has come as a result of the significant investments Peel Ports is making to position North West as a prime location for exporters and importers.

“Peel Ports’ investments in transport infrastructure, such as Liverpool2 and the Manchester Ship Canal, is already accelerating the growth of businesses in the north.

“Hydrodec’s £40m oil re-refinery will have a positive impact on the local economy and create new jobs directly and in the supply chain.”

Ian Smale, Chief Executive of Hydrodec said:

“We are focused on developing the UK’s first purpose built used lubricant oil-refinery producing the highest quality base oils and are currently fully engaged in the planning, permitting and financing process for the project.

“We considered various potential sites in the UK for the new re-refinery and selected the Eastham site for a number of reasons. The site is located in an established petrochemicals region and is allocated for employment use, provides good transport links by river and by road, while the availability of adjacent storage facilities means the size of the new plant can be kept to a minimum.

“This agreement lease is an important milestone in the development of our European hub to re-refine hydrocarbons.”

Construction is anticipated to commence in 2016 and will take approximately 18 months to complete.