Definition - What does Grassroots Refinery mean?
A Grassroots Refinery is a refinery that is built from scratch with a planned capacity. It also refers to the infrastructure that is constructed along with the refinery such as roads, pipeline installations, jetty, storage tanks, and other development of nearby areas, which aid in the proper functioning of the refinery. The infrastructure and refineries are usually constructed at one go.
Petropedia explains Grassroots Refinery
A newly constructed grassroots refinery is commissioned with its planned capacity. This means that if an oil company develops a 30 MMTPA or whatever planned capacity refinery and commissions this complete 30 MMTPA refinery in one go, it will be referred as a grassroots refinery. However, if an oil company plans to construct a refinery of 30 MMTPA, but constructs only 15 MMTPA in one phase and operates it and in the second phase it constructs 15 MMTPA to meet its MMTPA capacity, then it will not be referred as a grassroots refinery, rather it will be referred as a brown roots or brown field refinery. A brown field refinery is a refinery that had some industrial infrastructure already constructed earlier, but now it is further constructed to enhance its capacity.