IDB Lab supports creation of first oil recovery plant in Central America

IDB Lab, the innovation laboratory of the Inter-American Development Bank Group, approved a loan for US $ 3 million to co-finance the first oil recovery plant in Central America, which will process - safely and sustainably - lubricating oils and oil filters used to produce new lubricants and other derived products.

The project will be led by the Costa Rican company Metalub Soluciones Verdes MSV SA, which since 2016 has been collecting used oil and selling motor oil and mixtures of sustainable lubricants in the local market as an alternative to traditional lubricants.

Costa Rica launched its Decarbonization Plan this year, aiming to achieve carbon neutrality by 2050. Through this support from IDB Lab, the country will be able to recover an average of 6 million liters of used oil per year and mitigate 15,000 tons of emissions carbon annually when the lubricant refining plant enters into operation; thus contributing to considerably reduce CO2 and sulfur emissions in the country.

Metalub is also studying how to promote new business activities in low-income areas by promoting neighborhood centers for used oil collection. In the long term, it is expected that this model can be replicated in neighboring Central American countries, which will multiply its effects and benefits.

About IDB Lab
IDB Lab is the innovation laboratory of the IDB Group, the main source of financing and knowledge for development focused on improving lives in Latin America and the Caribbean (LAC). The purpose of the IDB Lab is to promote innovation for inclusion in the region, mobilizing financing, knowledge and connections to co-create solutions capable of transforming the lives of vulnerable populations by economic, social or environmental conditions. Since 1993 IDB Lab has approved more than US $ 2 billion in projects developed in 26 LAC countries. As of October 29, 2018, IDB Lab became the new identity of the Multilateral Investment Fund (MIF).

About Metalub
Metalub is the first company in Central America to apply a circular economy to the lubricant sector. We collect used oil and recover the base oil through an advanced and sustainable re-refining process. Then we mix state-of-the-art additives to produce lubricants licensed by the American Petroleum Institute (API), which are sold and used by the main companies in Costa Rica. Our high quality lubricants provide performance and reliability to our customers. We are business entrepreneurs passionate about the environment. Our mission is to provide our customers with high quality sustainable lubricants that reduce their carbon footprint through the use of technologies that allow a circular economy for the automotive sector.

This IDB release was published using machine translation.