Oiltanking Delivers Letter of Readiness to ReGen III: Successfully Completes Pre-FEED and Confirms FEED to Commence on October 18, 2021
Vancouver, British Columbia--(Newsfile Corp. - September 29, 2021) - ReGen III Corp. (TSXV: GIII) (OTCQB: ISRJF) (FSE: PN4) ("ReGen III" or the "Company") is pleased to announce that further to its U.S. Gulf Coast ("USGC") Site and Logistics Letter of Intent ("LOI") with Oiltanking North America, LLC ("Oiltanking") on July 5, 2021, the Company has received a Letter of Readiness ("LOR") from Oiltanking to proceed with storage and logistics assets for a used motor oil re-refinery production facility (the "Re-Refinery") at the Oiltanking Galveston County Terminal ("OTGAL") in Texas City, Texas, USA.
Oiltanking has successfully completed work on the Pre-FEED/Front-end loading (FEL-2) validation and is expecting the final independent report from its engineers, Burns & McDonnell, within the next week. Oiltanking confirmed there will be no changes to the fees outlined in the LOI. Based upon the preliminary findings, Oiltanking has notified ReGen III of their readiness to proceed to Front-End Engineering and Design ("FEED") on October 18, 2021.
Oiltanking's FEL-2 pre-feasibility study covered preliminary equipment design and layout in order to develop a cost estimate, a schedule estimate, and to make any critical decisions that will influence the final design of the storage tanks, loading/unloading pipelines, rail and marine loading/unloading facilities and other logistics assets (collectively, the "OT Logistics Assets"). Oiltanking will effectively design, construct, operate, and maintain the OT Logistics Assets to support the Re-Refinery.
Alongside the progress made with the OT Logistics Assets engineering, ReGen III and Oiltanking continue to advance rapidly towards finalizing and signing the long-term ground lease and the OTGAL site services agreement.
Dan Withers, Director, Business Development at Oiltanking, stated, "We are proud of the progress the teams at ReGen III and Oiltanking have made in developing this infrastructure project which helps pave the way to a more sustainable future. As one of the largest independent tank storage providers for gases, chemicals and petroleum products in the world, Oiltanking is successfully active in the engineering, procurement and construction of tank terminals. Our experienced team is working closely together with ReGen III on a tailor-made and cost-effective infrastructure solution for their re-refinery facility at our terminal in Texas City. We look forward to advancing the project as it will provide a much-needed domestic supply of base oils recycled from used motor oil thus, strengthening the circular economy."
Greg Clarkes, CEO of ReGen III, said, "We are on the verge of a very important corporate milestone. Concluding the final Ground Lease and Terminal Services Agreements with Oiltanking will provide ReGen III with tens of millions in up-front capital cost savings, while reducing dilution at both the public and operating company levels and outsourcing a large portion of the Company's terminal logistics operations to experienced professionals, further de-risking the project. Oiltanking is an ideal partner we can grow with because of its international operations in 20 countries. Also, our OTGAL site is in an excellent geographical and logistical location to receive cost-advantaged feedstock." Mr. Clarkes added, "Our primary re-refinery project in Texas is the first of a strategic number of sites we are in discussions to develop globally. All in all, we are looking ahead with great confidence."
Building and commissioning the Texas Re-Refinery is in line with the coordinated US federal strategy to increase the beneficial reuse of used lubricating oils. On December 22, 2020, the U.S. Department of Energy (DOE) published its Report to Congress related to used oil. The title of the report is "Used Oil Management and Beneficial Reuse Options to Address Section 1: Energy Savings from Lubricating Oil Public Law 115-345 (www.energy.gov/fecm/downloads/used-oil-management-and-beneficial-reuse-report-congress).
Oiltanking GmbH is a subsidiary of Marquard & Bahls, an agile, independent holding company in the energy & chemical sector. Oiltanking is one of the largest independent tank storage providers for gas, chemicals and petroleum products worldwide. The company owns and operates 45 terminals in 20 countries in the Americas, Europe, Middle East, Africa, and Asia Pacific including China and India. Oiltanking has an overall storage capacity of more than 18.5 million cubic meters. For more information, please visit www.oiltanking.com.
About ReGen III
ReGen III is a cleantech company creating more sustainable solutions that include better environmental outcomes and compelling economics. ReGen III owns a portfolio of patented technologies that enable used motor oil ("UMO") re-refineries to produce a higher value product mix of base oils than traditional methods, including 55% Group III.
Earlier this year, ReGen III engaged Koch Project Solutions, LLC ("KPS") to provide project execution management services leading up to the turnkey delivery of its new facility in Texas whereby, KPS will lead ReGen III's world class engineering, construction and licensed vendor teams (PCL Industrial Management Ltd., Koch Modular Process Systems and Process Dynamics Inc.) through the completion of detailed design, construction, commissioning, and start-up. ReGen III has already signed a definitive offtake agreement with bp to purchase 100% of the Company's base oils produced at the proposed Texas re-refining facility.
For more information on ReGen III or to subscribe to the Company's mailing list, please visit: www.regeniii.com/investors/corporate-presentations and www.regeniii.com/newsletter-subscription.
On Behalf of the Board of ReGen III Corp.
Chief Executive Officer
For further information, please contact:
Executive Vice President, Corporate Finance
ReGen III Corp.
Tel.: (778) 668-5988
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Certain information contained in this news release constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information"). Without limiting the foregoing, such forward-looking information includes statements regarding the Company's business plans, expectations and objectives. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management's good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent Management's Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company's profile and on the Company's website, https://www.ReGenIII.com/. The forward-looking information set forth herein reflects the Company's expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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