Used electrical transformer oil rerefiner Hydrodec has developed a new revenue stream, selling carbon credits to businesses such as energy companies that supply used oil for Hydrodec to use as feedstock.
The company, which is based in Canton, Ohio, announced last week that another business, FirstEnergy Corp., had joined its program. FirstEnergy, an electric utility headquartered in nearby Akron, Ohio, will supply used transformer oil for Hydrodec to process at its Canton rerefinery.
The plant is dedicated to treating that type of fluid and uses the output to make transformer fluid that it sells to be used to fill new electrical transformers. Because this recycling reduces the need for virgin transformer oil from mineral oil refining, Hydrodec is able to obtain carbon credits that it sells to companies like FirstEnergy. Those companies in turn use the credits to offset greenhouse gases generated by their operations, thereby improving their sustainability rating.
“Joining Hydrodec’s Carbon Credit Program helps us do our part to reduce our carbon footprint,” FirstEnergy Manager of Transformer Repair, Rubber Goods and Investment Recovery Michael Jean said in a news release distributed by Hydrodec.
Hydrodec said its program is certified by the American Carbon Registry.
Many used lubricant rerefiners have begun pitching the sustainability aspects of their base oils, trying to appeal to lubricant blenders looking for raw materials with smaller carbon footprints.