PLANO, Texas and DALLAS, September 13, 2022 — Blue Tide Environmental (“Blue Tide”), an environmental company focused on building and developing a network of used motor oil (“UMO”) recycling facilities across North America, today announced that it has reached a final investment decision (FID) for the addition of a hydrotreater to its Baytown, Texas facility.

Led by a best-in-class management team with extensive experience in the UMO recycling and lubricants industries, Blue Tide produces high-quality, paraffinic Group II+ base oils, derived from reclaimed UMO, with a significantly reduced greenhouse gas footprint compared to virgin base oils derived from crude oil. The hydrotreating expansion will allow for the facility to become a full base oils (lubricants) recycling operation, processing Blue Tide produced and additional third-party-sourced VGO into Group II+ base oils. Once the hydrotreater is operational and the facility redesign is completed, the plant will produce up to 5,000 barrels per day of environmentally responsible Group II+ base oils, with the option to upgrade production to Group III in a capital efficient manner. The strategically located facility along the Cedar Bayou of the Houston Ship Channel will also have additional storage, logistics and processing infrastructure planned on the adjacent undeveloped land owned by Blue Tide, as well as a barge dock that provides access to tanker markets along with convenient access to rail and transload facilities.

“The addition of hydrotreating units to our redesigned facility will significantly expand the breadth of our capabilities from not only recycling high-quality UMOs but allowing us to produce even more environmentally friendly Group II+ base oils directly,” said Mark Bouldin, Chief Executive Officer of Blue Tide. “Our mission is to provide the most reliable and highest performing, sustainably sourced base oils in the market. We are pleased with our significant progress toward the completion of the facility redesign, and we are confident in our long-term ability to scale our platform.”

In April 2022, Blue Tide closed an additional equity commitment from majority owner Tailwater Capital LLC (“Tailwater”), a private equity firm that takes a full immersion approach to investing in energy and growth infrastructure solutions, as well as Tailwater co-investors to facilitate the full redevelopment of Blue Tide’s advanced UMO recycling plant and the addition of the hydrotreater. “We are excited to expand our partnership with Mark and the entire Blue Tide management team as they continue to innovate and build a state-of-the-art facility to transform the UMO recycling space,” said David Cecere, Partner at Tailwater Capital and Director at Blue Tide. “Tailwater’s additional equity commitment further underscores our long-term conviction in the business – as vehicles and industrial machinery require higher quality base oils, the demand for Group II+ will only continue to grow. Blue Tide’s ability to provide a significant output of sustainable, recycled offerings allows the business to support its blue-chip customer base on their sustainability efforts.”