Mr. Tony Weatherill reports

REGEN III FORMS SPECIAL COMMITTEE TO ASSESS STRATEGIC PATHWAYS FOR CIRCULAR GROUP III BASE OILS IN DATA CENTER AND AI IMMERSION COOLING MARKET

ReGen III Corp. has established a special committee to assess strategic pathways to participate in the projected multibillion-dollar data centre and AI (artificial intelligence) immersion cooling market.

Immersion cooling is a cutting-edge technology in which servers are submerged in a non-conductive fluid, enabling superior thermal management, dramatically improved energy efficiency and reduced water usage compared with traditional air-based cooling systems. Within this rapidly growing market, Group III base oils are emerging as an important dielectric fluid.

With data centre energy consumption on the rise -- and projected to consume as much as 12 per cent of U.S. electricity by 2028 -- immersion cooling offers the potential to reduce cooling energy consumption by up to 90 per cent while shrinking physical footprints by up to 80 per cent.

As global demand for advanced cooling solutions accelerates, driven by leading chip and AI innovators, immersion cooling is emerging as a critical enabler of next-generation data centres, AI infrastructure and hyperscale computing. Valued at $2.1-billion (U.S.) in 2024, the market for liquid immersion cooling is forecast to more than triple to $7.2-billion (U.S.) by 2030.

Group III base oils -- a critical ingredient

PFAS (perfluoroalkyl and polyfluoroalkyl substances), or forever chemicals, are increasingly being phased out of immersion cooling fluids. With favourable performance and cost-efficiency, hydrocarbon-based fluids are expected to dominate the market with a 52.3-per-cent share. Synthetic base oils, including Group III, are increasingly specified as dielectric fluids in single-phase immersion cooling due to their high purity, chemical stability and thermodynamic efficiency.

Sustainability -- ReGen III's competitive advantage

As a circular product, ReGen III's high-quality Group III rerefined base oils deliver purity and stability while supporting longer product lifetimes and reduced environmental impact. The company's patented process transforms used motor oil into premium base oils, achieving up to 82 per cent lower CO2e (carbon dioxide equivalent) emissions than virgin crude-derived oils. This fits the criteria of organizations, such as the Open Compute Project (OCP), that are championing the use of sustainable immersion fluids that are formulated for a long operational lifetime and have, amongst other properties, low global warming potential, low carbon footprints and a defined end-of-life treatment.

"We are excited about the opportunity to help solve a critical challenge shared by the largest and fastest-growing hyperscale data centres: the need to cool ever hotter, faster chips that exceed the limits of traditional air cooling," stated Tony Weatherill, chief executive officer and president of ReGen III. "As legacy dielectric fluids face growing environmental and regulatory scrutiny, including the phaseout of PFAS, our solution aligns with the circular economy and net-zero priorities in a surging market."

Special committee -- independent evaluation of strategic pathways

The special committee, chaired by Brad White, will conduct a disciplined review of opportunities to integrate ReGen III's base oils into immersion cooling, dielectric fluids and EV (electric vehicle) thermal management systems. Strategic options under evaluation include: joint ventures and technical collaborations, long-term supply partnerships, and product qualification and commercialization programs.

"The formation of this special committee reflects our disciplined approach to assessing new commercial applications while maintaining our focus on sustainable, high-value re-engineered base oil production," said Mr. White, director.

About ReGen III Corp.

ReGen III is driving a new era in high-performance, sustainable lubricants. Harnessing its patented ReGen technology, the company is commercializing an advanced process to transform used motor oil (UMO) into premium Group II and Group III base oils. These high-quality base oils are essential to high-performance engines, turbines, industrial applications and emerging applications (such as data centre dielectric fluids). As a circular technology, the ReGen process is designed to deliver up to 82 per cent lower CO2e emissions than virgin crude-derived oils combusted at end of life.

With the vision of becoming the world's largest producer of sustainable, rerefined Group III base oils, ReGen III is positioning itself at the intersection of the energy transition and the data-driven economy through the production of circular, domestically sourced Group III base oils.

We seek Safe Harbor.