Brazil's development bank Bndes will invest R400mn ($73.4mn) to expand a used or contaminated lubricant oil refinery park in Sao Paulo state.
Brazilian lubricants manufacturer Lwart will expand the processing capacity at its used or contaminated lubricant oil plant in Lencois Paulista by 144,000 m³/yr. The plant's current capacity is of 240,000 m³/yr and it can produce almost 178,000 m³/yr of base oils.
The expansion project adds up to R713mn in total investments, including the company's resources. The funds cover more than half of the targeted budget, with 320mn from Bndes' Climate Fund and R80mn from the bank's Finem credit line.
The project is set to prevent around 500,000t of CO2 equivalent/yr that would be generated from refining activities, according to the bank.
Lwart collects used lubricant oil from retail fuel stations, machine shops and industry plants to convert it into a sustainable mineral base oil through a hydrotreatment process and sells it to other industries to produce lubricant oil for final consumers. Bndes supports investments in the circular economy, of which reuse waste and reduce natural resources consumption, Bndes' executive director Aloizio Mercadante said.
