Castrol India and Hindustan Petroleum Corporation Limited (HPCL) have signed a Memorandum of Understanding (MoU) to explore the development of a Re-Refined Base Oil (RRBO) ecosystem in India. The collaboration will assess the feasibility of collecting and re-refining used lubricating oil for lubricant production. This initiative supports circularity and responsible resource use.
Partnership for Sustainable Lubricants
Castrol India and Hindustan Petroleum Corporation Limited (HPCL) are collaborating to explore the potential of a Re-Refined Base Oil (RRBO) ecosystem. The Memorandum of Understanding (MoU) formalizes their intent to work together in this area.
Focus on Circular Economy
The primary aim of this collaboration is to create a circular model for used lubricating oil. This includes evaluating methods for collecting used oil and then re-refining it for use in new lubricant production. The goal is to determine if this approach is commercially, operationally, and technically viable at a large scale.
Statements on the Collaboration
Ch Srinivas, Executive Director – Lubes, HPCL, emphasized the importance of circularity in transitioning energy markets. He noted that the partnership with Castrol India aims to create a structured ecosystem for used oil collection and re-refining, which will help recover material value and promote responsible resource use.
Mr. Saugata Basuray, Interim CEO, Castrol India, highlighted the value of used oil as a resource if processed correctly. The MoU provides an opportunity to explore a model that can reduce waste, lower environmental impact, and support India’s focus on circularity. He expressed enthusiasm for working with HPCL to assess the potential at scale.
Benefits of Re-Refining Used Oil
Re-refining used lubricating oil offers several advantages. Studies suggest that up to 70-80% of used oil can be recovered as high-quality base oil. Additionally, re-refining uses significantly less energy compared to refining crude-based virgin base oils. Re-refined Base Oil (RRBO) has been shown to perform on par with conventional base oils when processed to meet required specifications.
Next Steps
The collaboration will begin with an assessment that includes mapping collection channels, evaluating re-refining capacity, and testing RRBO for its suitability in various lubricant formulations. The findings from this initial study will determine the direction of the initiative’s next phase.
Source: BSE
