Danish Avista Green secures base oils storage at Ghent
Danish firm Avista Green, part of German firm Avista Oil Group, has received approvals to store and provide re-refined base oils at Ghent, Belgium.
The agreement, signed early August with Belgium tank storage firm Gadot, will allow Avista Green to store its re-refined KS 100 base oil, or Group I SN 100 equivalent, from September out of Ghent Belgium. It is expected to expand to a total of 3,000t of storage capacity in January 2024 to offer its KS 150, or SN 150 equivalent.
The re-refined base oil grades will be delivered to the storage unit by ship from the firm’s 75,000t t/yr Kalundborg refinery, Denmark. It will be delivered directly to the buyers by trucks, barges, iso-tanks and flexibags. Avista expects to sell the majority of the volumes on a contract basis. The storage is near the major port hub of Amsterdam-Antwerp-Rotterdam (ARA)and will supply the local Belgium market, as well as customers in the Netherlands, France and western Germany.
“The choice of Gadot Belgium as our partner is driven by the resulting in-house synergy. Many of our customers have their own storage facilities at the same company, meaning that we can sell direct from our tanks to our customers’ tanks without leaving the area. Above that, Gadot is focusing on sustainability, using green energy and storing sustainable products, and they support our vision and mission for sales and distribution of our CO2-saving high-quality base oils in the region,” Avista toldĀ Argus.
Re-refined base oils are increasingly gaining interest among blenders, following mounting pressure on companies to reduce their carbon footprint. Re-refined and recycled base oils areĀ compatible with the EU’s āGreen Deal’Ā and key to developing a circular economy.
Avista looks to grow its sales from the new storage in Ghent up to 25,000t by 2026 and to create a business model that is similar to its UK network.