Blue Tide & Shell Lubricants Complete Re-Refining Facility to Develop High-performance Lubricants

DALLAS, March 31, 2025 /PRNewswire/ -- Pennzoil-Quaker State Company, a subsidiary of Shell plc ("Shell") and Blue Tide, an innovative company developing a network of used motor oil ("UMO") re-refining facilities across North America and a portfolio company of Tailwater Capital LLC, today announced the completion of Blue Tide's world-scale re-refining facility in Baytown, Texas ("Baytown Facility").

"This achievement underscores the incredible teamwork and vision of our dedicated team," said Terry McHugh, CEO of Blue Tide. "We are proud to contribute to a circular economy by delivering innovative, sustainable solutions that transform used lubricants into clean, high-performance base oils, reducing waste and promoting resource efficiency."

The fully operational Baytown Facility features one of the largest hydrotreaters in the re-refining industry, enabling Blue Tide to produce and sell high-quality Group II+ base oils. This UMO processing facility delivers high performance base oils at a lower carbon footprint compared to traditional Group II+ base oils.

"Completing the Baytown Facility is a significant milestone in our commitment to providing high-performance lubricants to our customers with a lower carbon footprint," said Ade Ajala, CEO of Pennzoil-Quaker State Company and SVP at Shell Lubricants Americas. "We're proud of this collaboration with Blue Tide, leveraging innovative technology to transform re-refined base oils into sustainable solutions that complement our existing range of high-quality products and place us at the forefront of tomorrow's lubricants and fluids."

The Baytown Facility can process 5,000 barrels per day ("BPD"), with conversion into high-quality base oils and other products like gas oil and asphalt modifiers. The addition of the hydrotreater enhances efficiency and quality by reducing impurities and improving the performance of re-refined base oils, ensuring they meet the growing industry demand for higher-quality, sustainable lubricants. Blue Tide's Baytown Facility is uniquely positioned on the Cedar Bayou near the Houston Ship Channel to strategically transport raw materials and products by truck, rail and barge.

"Tailwater is thrilled to see Blue Tide reach this important milestone," said David Cecere, Partner at Tailwater Capital and Blue Tide Board Member. "The Baytown Facility represents the future of sustainable innovation in the lubricants industry, and we're excited about its potential to drive growth, while supporting a circular economy."

About Shell Lubricants
The term "Shell Lubricants" collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications across over 175 countries. Shell was named the leading global supplier of finished lubricants for an 18th consecutive year, according to the 22nd edition of Kline & Company's report Global Lubricants: Market Analysis and Assessment 2023. Please visit www.shell.com/lubricants for more information.

About Blue Tide
Blue Tide is focused on building and developing a network of used motor oil ("UMO") processing facilities across North America. Headquartered in Houston, Texas, Blue Tide 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 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 www.bluetide.com for more information.

About Tailwater Capital
Dallas-based Tailwater Capital is an energy and environmental 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 $4.9 billion in committed capital since inception and the team has executed more than 235 transactions representing over $26 billion in value. For more information, please visit www.tailwatercapital.com.

Contact

Jill McMillan
Managing Director, Communications & Public Affairs
Phone: 214-489-7047
Email: [email protected]

John Schaufele
Managing Director, Investor Relations & Fundraising
Phone: 214-489-7043
Email: [email protected]

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

SOURCE Blue Tide