Avista Oil Expands North Sea Presence

By Boris Kamchev – 9/5/2012

Avista Oil AG, one of the biggest producers of rerefined base oils in Europe, became majority owner of the Dutch North Refining and Trading rerefinery. The former co-owner, Dutch Van Gansewinkel Groep, sold its 33 percent stake in the Delfzij, Netherlands-based rerefinery on Aug. 20.

“This is a successful investment for us, and we are convinced that it will be such in the future for all parties involved,” Bernd Merle, the CEO of Germany-based Avista Oil said in a press release. “The majority holding in North Refinery is another milestone within our international growth and our market position in Europe.”

The Dutch refinery has facilities for accepting used oils for the production of lube distillates, a feedstock for producing API Group I base oil, and for making flux oils. Waste oil-water composites from shipping are recycled into new raw materials and energy components. The North Refinery has the capacity to produce up to 200,000 tons of waste oil, the rerefiner said.

“Avista Oil expects an increase in the quality and capacity of the rerefinery in the next few years,” Merle said. “The Delfzijl site of the rerefinery offers optimum opportunities for expanding our base oils production.”

Uetze, Germany-based Avista, has two other rerefineries in Europe. Mineralöl-Raffinerie Dollbergen GmbH in Dollbergen, Germany, can produce 3,300 barrels per day of API Group I base oil. Dansk Olie Genbrug A/S in Kahlundborg, Denmark, has a 800 b/d of Group I capacity. In 2011 it expanded to the United States, where it acquired a 50 percent stake in Universal Environmental Services LLC, which operates a used oil collection and an oil rerefinery in Peachtree City, Ga.

“Thanks to the excellent location of the North Refinery by the North Sea, the logistics of the whole group will be optimized, which will enable us to react more flexibly to the requests of our customers and suppliers,” said Marc Verfürth, Avista’s head of logistics.

Founded in 1954, Avista Oil operates an entire lubes recycling chain in Germany, Belgium and Denmark—from collecting services of used oil to rerefining and international marketing and distribution of base oils, lubricants and other by-products. One of it products is industrial oil marketed under AVleco brand.

In 2010, Avista processed nearly 100 million gallons of used oil and other oily wastes.According to Kline & Co. consultancy, in 2009 Avista Oil held seven percent share of the global rerefined base oil supply.