L Rerefined Base Oil Quality Today: Myths vs. Reality Kari-Matti Elo LAB/VSN seminar, Martinushoeve, June 13th, 2013

Table of Contents API Group II rerefined vs. virgin base stock quality in Europe Rerefining landscape in Europe Environmental Business Drivers Primary production vs. Rerefining Approvals status Hamina rerefinery process flow chart Feedstock quality

PropertiesTest Standard T Y P I C A L D A T A Lotos 150NChevron 150RPuralube pur160EcoStream N150 Density (kg/m³) ASTM D Color ASTM D-1500 L 1,0< L 0,5 (mm²/s) ASTM D ,830,928,327,8 (mm²/s) ASTM D-445 5,25,35,255,2 Viscosity Index ASTM D Flash Point COC (°C)ASTM D Pour Point (°C) ASTM D Sulfur Content (ppm) ASTM D < Noack (%wt) ASTM D Saturates, HPLC wt% Lotos/Chevron/ES;FTIR 97>99>9597 Lotos 150N Puralube pur N220N100N Chevron Group II EcoStream N150

Rerefining Landscape North and Central Europe Green dot: API group II producers Red dot: API group I producers

Country Company Location Group I [kt p.a.] Group II [kt p.a.] Finland EcoStream Hamina 40 France Eco Huile Lillebonne 75 OsilubGonfreville l’Orcher60 Germany Puralube Troeglitz 100 Avista Oil Dollbergen 80 KS Recycling Sonsbeck 10 Starke & Sohn Niebull 8 Denmark Avista Oil Kalundborg 25 Greece Cyclon Hellas Attika 27 Greece minor (5) Greece- various 5 Italy Viscolube Ceccano (Rome) 37 Viscolube Pieve Fissiraga (Milan) 55 Italy minor (2) Italy-various 18 Spain Cator Tarragona 28 Ecolube Madrid 10 Spain minor (3) Spain-various 21 UK Whelan Stoke on Trent 33 Poland Orlen Oil Jedlicze 11 Europe: Total Existing

Environmental Business Drivers Energy consumption is only 1/3 compared to refining from crude oil Virgin RefiningRe-Refining CO 2 emission are 40% lower compared to refining From crude oil Virgin Refining Re-Refining Re-refining consumes 66 % less energy than primary refining Source: ICS-UNIDO, 2004

Environmental Business Drivers European Waste Directive 2008/98/EC (Article 4.1)

Primary Production vs Re-Refining fossil resources global warming acidificationnutrificationcarcinogenic risk potential fine particulates relative burden of regeneration and substituted prim. processes related on Regeneration (= 1) Impact of re-refining Impact of primary production 34 x x 6 x 3 x 15 x 5 x Source: LCA of ifeu-institute Germany

ACEAUsageSAE VGSAPSFuel E6>20%10W40LOWUHPD E715 – 20%10W30HISHPD E915 – 20%15W40MIDSHPD E4 <10%10W40HIUHPD Largest HD OEM’s (Daimler, MAN, DAF) recommend ACEA E6 10W40 HDDEO (source: ACEA) Mid- and high tier HDDEO suitable for API group II rerefined base oil performance. As a European pioneer, Puralube already completed parts of these test programs. EcoStream to follow suit by end of 2013 / early 2014.

Oil Water Separation Dehydration & Fuel Removal Thin film evaporation Hydrotreating Fractionation Light base oil: 100N Heavy base oil: 250N Bitumen flux Gasoil Process off-gas / Gasoil Waste water

Bitumen Flux Lube Distillate Distillate Fraction (Gasoil) Light Fraction (Naphtha) Water Catalytic Hydrotreater Impurities + LSGO API Group II Base Oil The re-refining process removes all the impurities and contaminants acquired by the oil during its use.

* AnalysisMethodUnitTypicalMinMax * WaterASTM D 95wt-%3,537 * D 4052kg/m3880 * D 445cSt60300 * Flash Point CC (PM)ASTM D 93°C62 * Pour PointASTM D 97°C * SulfurASTM D 2622wt-%<0.51 * PCBDIN 51527ppm-wtnone5 * Total ChlorineEPA 9076 ppm-wt<20030 * TANASTM D 664mgKOH/g23,5 * AshASTM D 482wt-%0,71,5 * Total sediment ASTM D 4807 mod.report * Vegetable oil, FTIRin-housenone * MetalsWDXRF * Cappm-wt * Nippm-wt550 * Pppm-wt * Sippm-wt * Vppm-wt110 * Znppm-wt Crude refineries manage C1 – C500 range Rerefineries focus on C20 – C40 molecules Both feedstocks black, value determined by yields Average base oil yield from crude: ~ 1% Base oil yield from used lubricant oils: up to 70% Below typical used lubricant quality specification:

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