ReGenIIICorp, a leading clean technology company commercializing the patented ReGen™ process to upcycle used motor oil (“UMO”) into high-value Group III base oils, today announces that the Loan Programs Office (“LPO”) of the Department of Energy (“DOE”) has informed the Company that its 5,600 barrel per day RG3 Texas LLC Project meets the definition of an eligible Innovative Energy Project, marking a milestone in the application process. This determination by the LPO enables ReGen III to commence its Part II Application for a loan guarantee (the “PartIIApplication”) under Title 17 of the Energy Policy Act of 2005. The DOE- guaranteed loan, if awarded, would provide non-dilutive financing for up to 70% of eligible project costs associated with the engineering and construction of the Company’s proposed UMO re-refinery in Texas City, TX.
ReGen III’s Part I application submission to LPO followed a detailed pre-application consultation process with the DOE. The submission of the Company’s application was the culmination of many months of work during which time the Company’s technology and business plans were vetted by the DOE for Title 17 eligibility. ReGen III’s Part I application pulled together project data from the Company’s personnel and consultants, greenhouse gas emissions inventory and lifecycle analysis work by GHD Services Inc., financial model and data support by National Bank Financial Inc., application advisory services provided by Raymond James & Associates Inc., and legal inputs and considerations from Akin Gump Strauss Hauer & Feld.
“We are extremely proud to have met the rigorous requirements of the LPO’s Part I Application,” says Greg Clarkes, CEO of ReGen III Corp. “As we pursue both equity and non-dilutive project financing, this achievement demonstrates to investors, offtake parties, and other stakeholders that our project meets the innovative and sustainable standards set forth by the Title 17 Clean Energy Financing Program. The LPO’s determination also highlights the project’s social benefits, where we expect to contribute to the local economy, strengthen U.S. domestic supply chains, and improve environmental outcomes.” Clarkes continued, “On behalf of the entire team at ReGen III, I would like to thank the LPO for its guidance and the opportunity to advance our Part II Application.”
The Company’s wholly owned RG3 Texas re-refinery is expected to be the first commercial installation of the Company’s proprietary ReGen™ process, yielding approximately 3,000 barrels per day of high- value, low-carbon Group III base oils, in addition to other sustainable co-products. On completion, the facility is expected to be the world’s largest sustainable Group III production facility. North America is structurally short Group III base oils, and the Company estimates that the RG3 Texas re-refinery can reduce North American Group III base oil imports by up to 11%. According to GHD Services Inc., the Texas Project is also expected to generate 82% lower CO2e emissions as compared to virgin crude- derived base oils combusted at end of life, equivalent to over 900,000 tonnes of CO2e emissions per year.
Additional information about the Title 17 Clean Energy Financing Program can be found at https://www.energy.gov/lpo/title-17-clean-energy-financing.
The DOE’s determination of project eligibility is not an assurance that DOE will proceed with the due diligence and term sheet negotiation process, that DOE will offer a term sheet to an applicant, that DOE will issue a loan guarantee, or that the terms and conditions of a loan guarantee will be consistent with terms proposed by an applicant. The foregoing matters are wholly dependent on the results of DOE review and evaluation of a Part II Application, and DOE’s determination whether to proceed.
AboutReGenIII
ReGen III is a cleantech company commercializing its patented ReGen™ technology to upcycle UMO into high-value Group III base oils. With a focus on creating sustainable solutions that generate better environmental outcomes and compelling economics, the Company’s ReGen™ process is expected to reduce CO2e emissions by 82% as compared to virgin crude derived base oils combusted at end of life.
In 2022, ReGen III completed FEL2 and value engineering for the Company’s 5,600 bpd UMO Texas recycling facility, with the support of world-class engineering, construction and licensed vendor teams – including Koch Project Solutions, LLC, PCL Industrial Management Ltd., Sacre Davey, Studi Tecnologie Progetti S.p.A., Koch Modular Process Systems and Duke Technologies.
Operating in an underserved segment of the base oil market, ReGen III aims to become the world’s largest producer of sustainable Group III base oil.
