It is reported that Hydrodec and Kobelco Eco Solutions have agreed to establish Pacific Eco Refining Co, the first joint operating entity to use Hydrodec's refining technology in Japan.

The agreement follows the establishment of a strategic alliance between Hydrodec and Kobelco, the Kobe Steel Group environmental company, in March 2010 to exploit the Hydrodec technology, including re refining polychlorinated biphenyl contaminated transformer oil, in Japan and other major Asian territories.

Since then, the two partners have been working closely on plans for the construction and operation of the first re refining plant in Japan, where Hydrodec's technology has received approval from the Japanese Ministry of Environment for the treatment of PCB contaminated waste oil.

The signing of the agreement enables the parties to begin joint operations through Pacific Eco Refining including the plant construction phase, the conclusion of commercial negotiations with suppliers and customers, and the securing of debt finance within Japan.