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One of the first challenges was to convert a petroleum oil unit to the Houdry process. The oil companies were all reluctant to invest in such a project, which required the construction of a new unit and the conversion of existing cracking units. Negotiations between the various members of the CRA consortium led to the signing of a joint agreement on January 17, 1940. This agreement covered the development of a pilot plant and the licensing of the process, and also called for a minimum investment of $200,000.[15][16] The unit to be converted was the Shell oil refinery in Paulsboro, New Jersey. It had had been built in 1923 as a fluid catalytic cracking unit but had been idle since the depression.

The project was reorganized in 1939 as the Central Cracking Company (CCC) to develop a pilot plant using the Houdry process. It was expected that the pilot plant would lead to a full-scale commercial unit which would be licensed to all the members of the CRA consortium.

Both those units were licensed to the CRA consortium, and in May, 1943, a meeting was held in New York to discuss the development of a commercial process which would be licensed to the consortium. In June of that year, the CRA consortium entered into a contract with Electrochemical Engineers (EE) of New York to design a commercial plant for the conversion of the Paulsboro No. 2 unit. The project was named the Model HCC (Hydrocarbon Catalytic Cracking) unit.

The Houdry process was first used on a commercial scale in Shell's Paulsboro refinery in February, 1942. The first Houdry unit, which was initially operated in conjunction with an imported amorphous silica-alumina catalyst, was equipped with only three trays. The first unit in commercial use was the Paulsboro No. 2 Houdry unit, which was converted in January, 1943, to the fluid catalytic cracking process using tungsten oxide-alumina catalysts, and which had seven trays. The Paulsboro No. 2 unit was the first RCC unit to be converted to the Houdry process, and was the first unit to be licensed to the other members of the CRA consortium. The Paulsboro No. 2 unit was followed by the conversion of the Russell No. 3 and the Philadelphia No. 4 units in 1943.

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