Tailwater Capital

Blue Tide Environmental Completes Initial Phase of State-of-the-Art Base Oils Re-Refining Facility

DALLAS, February 14, 2024 — Blue Tide Environmental (“Blue Tide”), an environmental company focused on developing a network of used motor oil (“UMO”) re-refining facilities across North America and portfolio company of Tailwater Capital LLC (“Tailwater”), today announced the completion of the first phase of its base oils re-refinery located in Baytown, Texas (“Baytown Facility”). The Baytown Facility is undergoing the second phase of a two-step development project alongside its joint venture partner, Pennzoil-Quaker State Company, a subsidiary of Shell plc (“Shell”).

The state-of-the-art facility will process 5,000 barrels per day (“BPD”) of used lubricants into high-quality state of the art base oils and other co-products, such as gas oil and asphalt modifiers. The initial phase of the project will produce 4,500 barrels per day (BPD) of high-quality, low-sulfur vacuum gasoil (“VGO”) from UMO feedstock.

“We are thrilled to see this cutting-edge facility officially come online, as it marks a pivotal milestone for Blue Tide,” said Mark Bouldin, Chief Executive Officer of Blue Tide. “This project is a testament to our ongoing commitment to create the most sustainable base oils in North America. I want to extend my gratitude to the hard-working members of the Blue Tide team, as well as Tailwater and Shell, whose dedication and expertise helped make this vision a reality.”

The second phase of the project is now underway, which includes constructing a hydrotreater at the Baytown Facility to upgrade the VGO into superior-quality Group II+ base oils. The hydrotreater is anticipated to come online in the second quarter of 2024, and Blue Tide will sell VGO and other co-products, while it is being completed.

“Today, we celebrate the start-up of the initial phase of Blue Tide’s re-refining facility and are excited to complete the next phase of the project to produce high-performance re-refined base oils made with a lower carbon footprint,” said David Cecere, Partner at Tailwater. “We look forward to continuing our partnership with Blue Tide to support forward-thinking initiatives that drive positive change in the energy sector and contribute to a more sustainable future for us all.”

About Blue Tide Environmental

Blue Tide Environmental is focused on building and developing a network of used motor oil re-refining facilities across North America and beyond. Headquartered in Plano, Texas, Blue Tide Environmental offers sustainable solutions to the lubricants industry. By paring management’s development and operational expertise with advanced hydroprocessing technology, the company re-refines used motor oil (“UMO”) to produce high-quality paraffinic Group II+ base oils at its Baytown, Texas facility. Blue Tide is a portfolio company of Tailwater Capital LLC, a private equity firm based in Dallas. Please visit https://bluetideenv.com/ for more information.

About Tailwater Capital

Dallas-based Tailwater Capital is an energy and growth infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised more than $4.5 billion in committed capital since inception and the team has executed more than 100 transactions representing over $23 billion in value. For more information, please visit www.tailwatercapital.com.

Forward-Looking Statements

Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.

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