AVISTA OIL collects used motor and industrial oil, ensuring sustainable, reliable and environmentally friendly disposal for companies of all industries and sizes. Then, in a patented and almost waste-free process, it re-refines, or upcycles, that oil, giving it a second, greener life.
Black smoke billowed into the blue sky above Kalundborg, Denmark, five years ago as an oil processing facility burned to the ground.
Such a catastrophe would be painful for any business, but especially one like the plant owner, AVISTA OIL AG, which is dedicated to creating a cleaner world.
An early pioneer in sustainability and the circular economy, AVISTA OIL collects used motor and industrial oil, ensuring sustainable, reliable and environmentally friendly disposal for companies of all industries and sizes. Then, in a patented and almost waste-free process, the Germany-headquartered company re-refines, or upcycles, that oil, which would otherwise be burned or discarded, giving it a second, greener life. The result is 297,624 tons (270,000 metric tons) per year of base oil used to make 250 auto and industrial lubricants—a cycle that reflects the protection and careful use of natural resources. This upcycling eliminates the need to refine millions of tons of crude and generates 30% less CO than conventional refining.
“At first glance, used oil seems worthless, a hazardous waste,” says AVISTA OIL CFO Benedikt Fuhlrott. “But when you look deeper, you understand it is a fantastic resource and raw material. We have only one planet, and it’s ridiculous to burn used oil when you can give it another functional, cleaner life.”
FM Global offered a single solution to the company’s multiple challenges, providing full,
one-source coverage and an engineering-based risk improvement program that aligned with AVISTA OIL’s evolving philosophy of resilience.
“FM Global takes a bold stance,” says Benedikt. “Their engineers use a uniquely sophisticated due-diligence approach to loss prevention that is impressive and entrepreneurial. It was obvious their team believes wholeheartedly in what they’re doing, and we see a lot of value in that. We were confident in our decision to proceed.”
AVISTA OIL signed with FM Global in 2019 for its Denmark facility and its Uetze, Germany, headquarters, and in 2020 for its Peachtree City, Georgia, USA, facility. The company is following through on its commitment to make its Kalundborg location a highly protected risk, FM Global’s highest resilience designation, and plans to do the same in Germany and the U.S.
During reconstruction of the Kalundborg facility, AVISTA OIL made a variety of risk improvements recommended by FM Global, including:
• Installing automatic sprinkler protection
• Installing larger water tanks and diesel-powered fire pumps
• Retrofitting solid floors to prevent 3D, multilevel fire
• Replacing combustible wall panels with fire-retardant ones
Although this work consumed extra time and changed the facility layout, AVISTA OIL is convinced that difficult choices will pay off in long-term resilience. The company also installed automatic sprinkler protection at its Germany facility and will enhance the existing automatic sprinkler protection at its U.S. facility.
AVISTA OIL’s plant engineers have formed a collaborative partnership with FM Global’s fire science experts and field engineers to advance improvements like these. Both teams recognize the value of risk improvement in protecting the business from the far-reaching financial loss that can
result from a business disruption.
“Our employees are the best in the world, yet all of us can benefit from having a mirror held up to our activity so we can see it with fresh eyes,” says Benedikt. “That’s what FM Global does. By working together, we can ensure that our customers always have access to an important renewable resource—and that another Kalundborg catastrophe never happens again.”
Better together: partners reinforce facilities for long-term resilience
Says Benedikt, “Becoming a highly protected risk strengthens our business continuity and helps us manage our premiums in the long run.”
Partners in Resilience
When a fire at AVISTA OIL’s Kalundborg, Denmark, facility wiped out 25% of its production capacity for three years, the company turned to FM Global to help ensure its customers always have access to a renewable resource. Although work consumed extra time and changed the facility layout, the company made a variety of risk improvements during reconstruction and is committed to becoming a highly protected risk, FM Global’s highest resilience designation.
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