The Bulgarian industrial oil recycling plant in Azerbaijan is set to begin operations

The Bulgarian industrial oil recycling plant in Azerbaijan has entered the pre-commissioning testing phase, BalkanEngineer.com learned from the economic portal Economic.bg. The project is being implemented by Caspian Lubricants Recycling within the Chemical Industrial Park in the city of Sumgait and is the result of bilateral agreements between the two countries dating back to 2023. Progress on the project was reported during the visit of the President of the Republic of Bulgaria, Ms. Iliana Yotova, to Baku.

The investment in the production complex amounts to 7.7 million dollars and will create 54 permanent jobs. This is the first-of-its-kind environmental project for the processing of used oils in Azerbaijan and the Caspian region, aimed at recycling hazardous waste in accordance with the Basel Convention. The plant has been recognized as a strategically important facility for the region’s environment by Azerbaijani President Ilham Aliyev, with the goal of meeting the needs of local industry and ending dependence on imported base oils.

The plant’s production process is based on a modern three-stage system that generates no additional waste. The plant is initially expected to process 24,000 tons of used oil per year. From this, up to 18,000 tons of Group I base oil will be produced, as well as between 2,000 and 4,000 tons of industrial bitumen for road construction and waterproofing applications.

According to CEO Kalin Runtev, speaking to the Azerbaijani news agency Trend, the market plan aims to meet Azerbaijan’s domestic demand, while between 60% and 70% of the finished products will be exported to markets in Bulgaria, Romania, Ukraine, and Turkey by 2027. The next phase of Caspian Lubricants Recycling’s development also includes the implementation of green energy facilities and R&D for the production of “green” hydrogen.

The sole owner of Caspian Lubricants Recycling is the Bulgarian company Dynamik Resource, founded in 1995. The company specializes in the construction of sports facilities and has already completed stadium projects in Azerbaijan.

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