Commissioner Murman quoted in this Tampa Tribune story on Port:
BUSINESS NEWS
Stalled oil recycling plant, with up to 80 jobs, back on at port
By Yvette C. Hammett | Tribune Staff
Published: March 15, 2016
Updated: March 15, 2016 at 09:01 PM
TAMPA — Construction of an oil recycling plant at Port Tampa Bay was suspended in 2013 when building costs escalated.
Now, NextLube Tampa LLC, which has invested $100 million in to the project, has announced it found a partner to finance the remaining 40 percent of the work and operate the plant. It is now expected to open in mid-2018 and employ 65-80 people.
The Tampa Port Authority Board voted Tuesday to reassign the 20-year lease to NextLube’s new partner, Puraglobe Florida LLC, an offshoot of Germany-based Puralube Inc.
In other action Tuesday, the board also extended the time Port Logistics Tampa Bay has to procure financing for a separate port project — a refrigerated warehouse that would store fresh fruits, vegetables, plants and flowers shipped from South America and elsewhere.
Puraglobe, whose parent company operates oil refineries in Europe, plans to operate a number of recycling plants across Europe, the U.S. and Asia. The company’s website says its centers are environmentally friendly, highly efficient and produce high quality products.
The Port Tampa Bay plant was initially expected to cost $75 million to $80 million, but when the cost of construction rose, the project came to a halt.
“We’re still negotiating terms of the partnership, but Puraglobe will provide the capital to complete the plant,” NextLube CEO Monte Bell said following the port board meeting. Bell said the plant should be operational by the second quarter of 2018, eventually processing 24 million gallons of used oil per year, .
Hillsborough County Commissioner Sandy Murman, who sits on the Port Authority board, called the project a major economic development project and one welcome in Tampa.
“This recycling program is really going to put us on the map and I think you’re going to take off,” Murman said.
“I’m really, really excited about this joint venture,” board member Patrick Allman said. Allman, who has several chemical manufacturing plants in the Tampa area, said he’s always happy to see new manufacturing opportunities come to the port.
The oil recycling plant will include a 56,000 square-foot blending and storage building, a 20,000 square-foot office building, approximately 30 above-ground storage tanks ranging in size from 10,000 gallons to 900,000 gallons, piping and foundations for the processing unit.
The partners are now in a due diligence period and are expected to close on the joint venture by the end of May.
A process owned by Puralube and known as HyLube will be used to re-refine oil coming in to Port Tampa Bay. Unlike most re-refining processes, according to the company, HyLube produces a consistent, high quality base oil product. Byproducts are managed to minimize environmental impact and maximize energy recovery.
Port Tampa Bay entered in to a lease agreement with Port Logistics Tampa Bay I Inc. in August 2015 to lease approximately 13.7 acres on Hookers Point for construction of a state-of-the-art, temperature-controlled warehouse that could be used to store fresh produce and plants. It was expected to be operational within 16 months.
But procuring financing for the project has taken longer than expected because of the holiday period, Port Logistics spokesman Richard Hostetter told the board. He asked for an extension until June.
Hostetter said he feels confident the company can procure $7 million to build the air conditioned warehouse without further delay and the board agreed to give the extension.
Right now, no fresh produce comes in to Port Tampa Bay. Much of it is shipped further north to Philadelphia.
Hostettler said diverting those shipments would prove a lucrative venture for shippers.
“The economics will show it is cheaper to come to Tampa Bay,” Board Chairman Stephen Swindal said.
“It is much cheaper,” Hostetter said. He said shippers are paying $60 a pallet to send goods through the Port of Philadelphia. “We estimate $27 a pallet,” he said. “The savings are going to be enormous.”
“We want to do everything we can to make this a success,” Murman told Hostetter.
And while Allman was willing to along with the extension, he said other businesses had expressed interest in taking the lead on this project. “They are still out there interested. I would not be willing to vote on other extensions.”
Development is expected to be complete by June 2017.
