NEFCO and STR Tecoil invest in waste oil management in Russia
The Finnish oil re-refinery company STR Tecoil Oy is going to start collecting used lubricant oil in Russia for recycling. The company is financing its operations partly through a loan from NEFCO. At first, STR Tecoil will set up the collection system in St Petersburg and Leningrad region. The company then plans to eventually expand its operations to other regions. The collected waste oil will be sent to regeneration plants for the manufacture of new base oil products.
Today, the collection of used lubricant oils such as motor, transmission and gear oils is inadequate, and waste oil is mainly incinerated in Russia. The incineration causes harmful air pollution including heavy metals, PAH and black carbon. Spilled oil also tends to accumulate in the environment, causing soil and water pollution. According to EU waste policies and waste hierarchy, recycling of waste oils should be prioritised, whilst incineration and disposal should be avoided.
Mihail Malkov, CEO and Chairman of the Board at STR Tecoil, estimates that the company will have the capacity to collect 10,000 tonnes of used lubricant oils per annum. “In general, at least 40 per cent of all waste oil could be collected and turned into a resource for new products. The environmental impact of our planned operations is therefore significant. The challenge is to make people and companies aware of this possibility and to be able to collect all used lubricant oil out there.”
STR Tecoil is establishing a new company to take care of the collection and infrastructure operations in Russia. The waste oil will be stored in custom-made depots and then re-regenerated by a Russian company and STR Tecoil’s own plant in Finland for reuse. The regenerated base oil may be used for the manufacture of new products for the motor oil, industrial oil and lubricating industry, among others. By-products of the process, such as bitumen, can be used for road pavements and in roofing material.
“The products fulfil all modern industrial and environmental standards. Being REACH compliant, the new base oil is widely used and recognised in the lubricating oil industry,” Mr Malkov points out.
The financing of STR Tecoil’s Russian operations is part of NEFCO’s mission to support circular economy and green growth. “Waste management and pollution reduction are important sectors for NEFCO. The concept of collecting waste oils to avoid burning and subsequent pollution signifies an important progress of waste management in Russia,” says NEFCO’s Senior Investment Manager Helena Lähteenmäki. “STR Tecoil has outstanding technology and business know-how, and we strongly believe they will successfully implement the project in collaboration with their experienced partners.”
For further information, please contact:
Helena Lähteenmäki, Senior Investment Manager, NEFCO
helena.lahteenmaki [at] nefco.fi, Tel. +358 10 6180 633
Mihail Malkov, CEO, STR Tecoil
Mihail.malkov [at] tecoil.fi, Tel. +358 500 482696
About STR Tecoil
STR Tecoil Ltd is waste management and re-refining company turning used oils into new high quality sustainable API Group II/II+ lubricant products. Tecoil products have significantly lower carbon print in comparison to virgin oil production benefitting customers in lowering their carbon footprint. Our refining technology and process is the best available solution to treat used lubricant oil.