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أوابك العلمية لعام
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ص لبحوث العلمية الفائزة بجائزة
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عدد خا
مجلة النفط والتعاون العربي
161
العدد
- 2017
أربعون
المجلد الثالث و ال
Re-refining of Used Lubricating Oil and its Economic and Environmental Implications
59
Recently published data on the economics of re-refining lubricating oils has been
reported by Park (2012). The data which is illustrated in Figure 32 shows that the IRR
(Internal Rate of Return) for production of re-refined base oils increases with increasing
base oil price at a fixed used oil price. Conversely, the IRR decreases with increasing
feedstock cost at a fixed base oil price.
Also, the IRR increases with increasing capacity, at a given base oil price. This is
illustrated in Figure 33 where the internal rate of return is better for a bigger plant. The
return for a 165,000 MTPY plant at $450 feedstock cost and $1138 base oil price is about
70% while it is about 33% for the 40,000 MTPY plant for the same used oil and the base
oil prices.
The results presented here are relative and only indicative of trends based on the
CEP/Mohawk technology. The case study shows that the internal rate of return is
dependent on the feedstock cost, the base oil selling price and the operating capacity.
In light of the present day situation, the economic viability of re-refining appears to be
critical and much will depend on the will of authorities to provide subsidies or tax
advantages, which will enable existing re-refiners and potential investors to survive the
oil industry ups and downs. According to Audibert (2006), all the economic evaluations
have shown that the re-refining industry can only survive with financial support. This
support which can take many forms, is offered in many countries including, Germany,
Italy and England (Oakdene, 2005). Brazil and Indonesia, have established tariffs or
restrictions on lube oil imports that have provided support for local re-refining firms
(Challener, 2012). In Italy, re-refined base oil benefits from a tax reduction compared to
virgin base oil. Re-refining projects requires support across many of the key parameters
critical to their success, such as financing, feedstock management, and legislation.
7.2 Role of re-refining in improving the added value of oil industry and
natural resources conservation
The crude oil industry gross added value is derived mainly from the refining activities.
In general, the value added can be improved by increasing sales, reducing operating
costs, adopting new technologies or upgrading of a low value (waste) stream. In that
regard, re-refining of used lubricating oil represents an opportunity to add more value
to oil industry. Lubricating oil is one of the most valuable components of crude oil and
costs 52% to 68% more than conventional petroleum products such as gasoline and
heating oil (DOE, 2006), notwithstanding the fact that the proportion of crude oil that is
refined into lubricant base oil is only 1% of the total. The high price reflects the higher
manufacturing costs, including energy costs, of the base oils compared to standard