The Hydrodec Group has entered into an agreement with Peel Ports for a long-term lease on a nine-acre site at Port Wirral, as the location for a purpose-built oil re-refinery.
The AIM-listed company, which operates two other used oil re-refineries, in Ohio and Australia, will now bring forward an application detailing its plans.
Subject to approval, the nine-acre Eastham site at Queen Elizabeth II Docks will form the first phase of a £40m development.
The re-refinery process transforms used oil which would otherwise be treated as a waste product into a new product which can be re-used as base oil for lubricants used in the automotive and industrial sectors.
Construction is expected to start in 2016 and will take around 18 months to complete.
The deal with Hydrodec comes four months after food and logistics provider, Culina, signed a deal to become the anchor tenant at Peel Ports’ £125m multi-modal logistics hub on the Manchester Ship Canal, called Port Salford.
As part of plans to develop the re-refinery, Peel Ports will invest more than £400,000 to relocate and provided an upgraded pitch, changing and club facilities for community football team MSC Eastham.
Mark Whitworth, chief executive of Peel Ports, said: “The deal with Hydrodec has come as a result of the significant investments Peel Ports is making to position the North West as a prime location for exporters and importers.
“Peel Ports’ investments in transport infrastructure, such as Liverpool2 and the Manchester Ship Canal, is already accelerating the growth of businesses in the north.
“Hydrodec’s £40m oil re-refinery will have a positive impact on the local economy and create new jobs directly and in the supply chain.”