Blue Tide and Shell Collaborate on Advanced Lubricants Re-Refining Facility

Blue Tide and Shell: Pioneering Sustainable Lubricants

In an exciting development for the lubricants industry, Blue Tide and Shell have unveiled their new re-refining facility in Baytown, Texas. This cutting-edge facility is part of a broader initiative to create sustainable and high-performance lubricants from used motor oil (UMO). With environmental concerns at the forefront of industry evolution, this facility aims to address the growing demand for eco-friendly and efficient lubricants while promoting a circular economy.

A Step Towards Sustainability

On March 31, 2025, representatives from Pennzoil-Quaker State Company, a Shell subsidiary, along with leaders from Blue Tide and Tailwater Capital, celebrated the completion of the facility. This achievement marks a significant milestone in the quest for innovative solutions that reduce waste and improve resource efficiency in lubricant production.

Terry McHugh, the CEO of Blue Tide, expressed pride in the collaborative efforts that made this facility possible. He emphasized the company's commitment to transforming used lubricants into high-quality base oils through advanced technology. This process not only minimizes waste but also mitigates the environmental impact associated with traditional lubricant production methods.

The Baytown Facility's Capabilities

The Baytown facility boasts one of the largest hydrotreaters available in the re-refining industry. This technology allows Blue Tide to create premium Group II+ base oils, satisfying customer needs while maintaining a lower carbon footprint. Specifically, the facility is capable of processing 5,000 barrels of UMO per day, converting it into not just base oils but also other valuable products such as gas oil and asphalt modifiers.

Ade Ajala, the CEO of Pennzoil-Quaker State Company, highlighted the importance of this facility in Shell’s existing portfolio. He stated that the Baytown facility is a testament to Shell's ongoing commitment to sustainable practices in lubricant development. By enhancing efficiency and reducing impurities in re-refined base oils, the facility sets a new benchmark for quality and sustainability in the industry.

Strategic Location and Future Plans

The facility's location near the Houston Ship Channel positions it strategically for the transportation of raw materials and finished products via various methods, including truck, rail, and barge. This logistical advantage not only enhances operational efficiency but also positions Blue Tide for future growth in the rapidly evolving lubricants market.

David Cecere, a Partner at Tailwater Capital, echoed the excitement surrounding the Baytown facility. He sees it as a pivotal step towards the future of sustainable innovation within the lubricants sector and a catalyst for driving growth while supporting a circular economy.

IndustryImpact and the Road Ahead

As the lubricant industry evolves, the collaboration between Shell and Blue Tide represents a significant shift towards sustainable practices that prioritize eco-friendliness without sacrificing quality. The future of lubricants is not just about performance; it's about embracing sustainability and responsible resource management.

With increasing global demand for sustainable solutions in all sectors, the advancements made at the Baytown facility could serve as a model for other companies looking to enhance their environmental stewardship. As we look forward to ongoing developments from Blue Tide and Shell, it’s clear that this partnership is set to redefine norms within the lubricants industry, paving the way for a cleaner, greener future.

For more information about Shell's extensive lubricant offerings, you can visit their website. To learn more about Blue Tide and its innovative re-refining practices, check out their official page as well.