LONDON (Alliance News) - Hydrodec Group PLC Thursday said it has entered into an agreement to lease a nine acre site near Liverpool in the North West of England where it will develop the first phase of a used oil re-refinery.
The clean technology industrial oil re-refining group said it signed the deal through its subsidiary with The Manchester Ship Canal Co Ltd to lease the nine acre site located near Eastham Locks, Port Wirral, Merseyside.
"'We remain focused on developing the UK's first purpose built used lubricant oil re-refinery producing the highest quality Group II/II+ base oils and are currently fully engaged in the planning, permitting and financing process for the project," said Chief Executive Ian Smale.
Hydrodec secures and re-manufactures speciality mineral oil products and provides environmentally sustainable petrochemical materials management in an attempt to "end the world's dependence upon finite oil supplies".
The company is aiming to build a 75 million litre per annum capacity base oil re-refinery in the UK, which will utilise its subsidiary OSS Group, which it acquired in 2013, by re-refining the waste oil collected by OSS.
"The site is located in an established petrochemicals region and is zoned for employment use, provides good transport links by river and by road, whilst the availability of adjacent storage facilities means that the size of the new plant can be kept to a minimum. This agreement for lease is an important milestone in the project," he added.
The lease is subject to a series of approvals, including obtaining a development consent order under the Nationally Significant Infrastructure Projects planning regime, the necessary regulatory consents, licences and permits for the construction and operation of the development together with funding.
"Subject to practical completion of the first phase development within three years of the commencement of the lease, Hydrodec has the option to enter into a further long-term lease for an adjacent seven acre site on equivalent terms to the lease," said the company.
No financial details concerning the lease deal were released.
Hydrodec shares were down 2.4% to 7.20 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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