Report: Gen III Oil - A cash flow monster in the making? From used motor oil to high-end lubricants.

Sometimes you come across stories that sound 'too good to be true'. But when a patented technology to convert used motor oil into useable products has been vetted, confirmed and approved by at least three independent parties (including the Wood Group and Stantec), there must be something to it. On top of that, a 5 barrel per day pilot plant also confirmed the technology really works. And this makes Gen III's project one of the very few 'green' infrastructure projects that does not require subsidies nor grants (the carbon credit to be paid by the Alberta government is a nice incentive, but removing the credit from the equation would not fundamentally change our thesis). On top of that, we can only hope this will be a first step to see more used motor oil being recycled, as unfortunately approximately 50% is currently being used as ‘burner fuel’.

The owner of this patented technology is Gen III Oil (GIII.V) which is aggressively advancing its strategy to start producing Group II and Group III lubricants from the Bowden refinery, which it will lease from Canadian household name Parkland Fuels (PKI.TO). One of Parkland Fuels' subsidiaries will also market the products produced at the Gen III Oil re-refinery in Alberta. This story has got a lot going for it, and in this report we will explain why the next 12-18 months will be crucial for this company.