HPCL, Castrol India Sign MoU to Explore Re-Refined Base Oil (RRBO) Ecosystem
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New Delhi: In a significant move towards sustainable industrial practices, Hindustan Petroleum Corporation Limited (HPCL) and Castrol India Limited have joined forces to explore the development of a Re-Refined Base Oil (RRBO) ecosystem in India. The two industry leaders signed a Memorandum of Understanding (MoU) to assess a structured model for the collection and re-refining of used lubricating oil.
The Circular Model Vision:
The collaboration aims to evaluate a closed-loop system where used lubricating oil—a significant waste stream in India—is systematically collected, re-refined, and reused in the production of new lubricants. This model promises to transform waste into a valuable resource, aligning with global circular economy principles.
Key Objectives of the MoU:
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Feasibility Assessment: Jointly evaluate the commercial, operational, and technical feasibility of establishing a large-scale RRBO ecosystem in India.
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Channel Mapping: Map existing and potential channels for the efficient collection of used lubricating oil.
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Capacity & Testing: Assess re-refining capacities and test the performance of RRBO across various lubricant formulations to ensure it meets stringent quality specifications.
Leadership Insights:
Mr. Ch Srinivas, Executive Director – Lubes, HPCL, stated, “As energy markets transition, circularity in value chains will become increasingly important... This partnership aims to assess a structured ecosystem for collection and re-refining of used oil, which would help recover material value while promoting responsible resource use.”
Mr. Saugata Basuray, Interim CEO, Castrol India, added, “Used oil is a valuable resource if collected and processed in the right way. This MoU allows us to explore a model that could reduce waste, lower environmental impact and support India’s growing focus on circularity.”
The Scale of Opportunity and Impact:
India generates a substantial volume of used lubricating oil annually, much of which is not collected through formal channels. Internationally, re-refining technology can recover 70-80% of used oil as high-quality base oil, a process that is significantly less energy-intensive than producing virgin base oil from crude. RRBO has been proven to perform on par with conventional base oils when processed correctly.
The initiative marks a proactive step by two major players to address environmental concerns, enhance resource security, and build a more sustainable foundation for the lubricants industry. The findings from this joint study will guide the potential implementation of a pioneering circular model in the Indian market.