What are the major considerations in building an Interline refinery?
The viability of operating a profitable Interline refinery rests on three pillars: 1) oil collection 2) successful operation of the refinery with competent operators and 3) reliable finished product markets. The cardinal rule for economic re-refining is this: only install and operate the minimum amount of processing equipment which allows the waste oil to be upgraded to the highest lubricant oil product that can be sold profitably. Stated another way, it is simply not profitable to add additional processing steps in an attempt to improve the quality of the re-refined oil beyond the specifications required by your resale market. The fact that it is re-refined base oil will always be reflected in the pricing of the re-sale markets unless the base oil is compounded and sold as lubricants.
