North Carolina Used-Motor-Oil Re-Refining Program: Economics and Logistics; and Operating Results. Topical Report 3

摘要

This is the third in a planned series of topical reports on a program to develop and demonstrate a State-operated re-refining system for used engine oil. The North Carolina Oil Re-Refining Facility, using a 2,000,000 gallon input per year PROP plant, was installed in late 1980. During the first year of startup operation ending December 31, 1981, approximately 137,000 gallons were produced. Report 2 of this series reflects on the startup experience and financial results for the first year of operation (1981) as well as projected expectations at that time. This report concentrates on operating and financial results for 1982 and the first five months of 1983. During the 17 months ending May 1983 only about 270,000 gallons were produced and sold. Based on normal annual accounting the loss for that period was $685,060 and the cashflow loss was $480,679. Even after substantial upgrading modifications were done in 1982-83, the plant still has major throughput problems, the greatest of which is the required quality and quantity of used oil feedstock. The report describes financial results, cost-variance analyses, production impediments encountered, and also projects future operating volumes necessary for the facility to cover costs. (ERA citation 09:000179)