Hydrodec and Kobe Eco-Solutions to re-refine transformer oil

Steel Group environmental company, have established of Pacific Eco Refining Co Ltd, the first joint operating entity to use the Hydrodec technology in Japan. The venture will treat low-level polychlorinated biphenyl (PCB)-contaminated transformer oil, the Japanese market for which is estimated to hold a potential processing demand of over 1 billion litres and USD1 billion in revenue.

The agreement follows the strategic alliance between Hydrodec and Kobelco last year to exploit Hydrodec technology in Japan and other major Asian territories. Since then, the two partners have been working closely on plans for the construction and operation of the first re-refining plant in Japan, where Hydrodec's technology has received approval from the Japanese Ministry of Environment for the treatment of PCB-contaminated waste oil.

The partners are aiming to have the first Pacific Eco Refining up and running in the second half of 2012. It will use unique and patented technology to re-refine contaminated transformer oil to produce high-grade transformer oil and also supply clean transformer oil for decontaminating electricity industry transformers before their disposal, said the company in a statement.

Kobelco and Hydrodec plan jointly to establish PCB-contaminated transformer oil refining operations in several locations in Japan. The business will also be expanded to other Asian markets where there are also large volumes of PCB-contaminated oil requiring treatment in accordance with the Stockholm Convention on Persistent Organic Pollutants.