Vertex Energy, Inc. has announced plans to add 6,000 barrels per day of conventional Group III base oil production capacity at its Mobile, Alabama, refinery, with output targeted to begin in 2029. The project will leverage the company’s existing hydrocracker and related processing infrastructure to produce crude-derived base oils for lubricant manufacturers and blenders seeking domestic supply.
Vertex Energy announces Group III base oil expansion at Mobile refinery
Vertex Energy, Inc. has confirmed it is actively advancing plans to produce conventional Group III base oils at its Mobile, Alabama, facility. The announcement marks a significant strategic pivot for the Houston-based company, which has built its operations around re-refined base oil production and fuel processing at the same site.
The project targets a production start date of 2029 — roughly four years to complete engineering, procurement, and construction before the new capacity comes online.
Vertex has not been waiting. Preliminary design work is already finished, and the company has procured a high-pressure lubricants hydrotreating unit—a key piece of processing equipment central to the new production process. Securing that unit ahead of full project sanction signals a meaningful level of confidence in where this is headed.
The project uses existing hydrocracker infrastructure to produce crude-derived base oils
One of the defining features of this expansion is what it does not require: an entirely new processing platform. Vertex plans to leverage its existing hydrocracker and related infrastructure already in place at the Mobile refinery, substantially reducing both complexity and capital burden compared to a greenfield build.
The feedstock will be a crude-derived hydrocracked vacuum gas oil stream already produced on-site. That starting point integrates the new unit into the refinery’s current operational flow rather than creating a parallel process from scratch—a meaningful efficiency advantage.
The high-pressure lubricants hydrotreating unit will process that feedstock into finished conventional Group III base oils across multiple viscosity grades: 4 cSt, 6 cSt, and 8 cSt. These grades cover a broad range of lubricant formulation needs and represent the core viscosity slate used across automotive and industrial applications.
Expansion expected to make Vertex the leading Group III producer in North America
The 6,000 barrels per day figure represents incremental capacity added on top of what Vertex already generates through its re-refined Group III base oil operations at Mobile. Combined, the company’s total Group III output is expected to position Vertex as the largest Group III producer in North America.
That is a notable claim. Group III supply has historically been dominated by large international producers, with significant volumes imported from Asia, the Middle East, and Europe. A domestic producer reaching that scale would mark a real shift in the supply landscape for North American lubricant manufacturers and blenders.
CEO Mark Smith framed the project in direct financial terms. “This project reflects a major milestone in our continued focus on improved profitability and margin stabilization,” Smith said in the company’s announcement. He added that the planned investments, combined with the existing hydrocracker, give Vertex what he described as “a compelling pathway to supply the conventional Group III market.” By adding conventional Group III production alongside its existing re-refined output, Vertex can serve a broader customer base while spreading fixed costs across a larger volume of higher-value products.
Group III base oils: Applications, market context, and Vertex’s integrated platform
Group III base oils occupy the upper tier of mineral-derived lubricant base stocks. They appear in high-performance automotive lubricants — including modern engine oils formulated to meet increasingly demanding fuel economy and emissions standards — and in industrial applications where consistent quality and strong performance characteristics matter.
The distinction between Group III and lower-tier base stocks carries real weight for formulators. Group III oils offer higher viscosity index values and better oxidation stability than Group I or Group II base stocks, making them the right choice when those properties are critical.
Vertex’s new conventional Group III production will sit alongside, not replace, its existing operations. The company will continue producing transportation fuels and re-refined 4 cSt and 6 cSt Group III base oils as part of its integrated platform at Mobile, with the expansion adding conventional Group III as a third production stream at what is already a multi-product refinery.
The project also responds to a specific market dynamic. Demand from customers who prefer or require domestic supply — rather than depending on imported Group III volumes — has grown steadily. Supply chain considerations, lead times, and sourcing diversification have made domestic availability an increasingly relevant factor for lubricant manufacturers evaluating their base oil procurement strategies.
A hydrotreating unit has been procured
Vertex Energy is adding 6,000 barrels per day of conventional Group III base oil capacity at its Mobile, Alabama, refinery, with production targeted to begin in 2029. The project uses the site’s existing hydrocracker infrastructure and a crude-derived vacuum gas oil feedstock, producing 4 cSt, 6 cSt, and 8 cSt viscosity grades. Preliminary design work is complete, and a high-pressure hydrotreating unit has been procured. Combined with existing re-refined Group III output, Vertex expects the expansion to make it the largest Group III producer in North America, with the project aimed at improving profitability and serving customers seeking reliable domestic supply.
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