Castrol India and Hindustan Petroleum Corporation Limited (HPCL) have entered into a strategic Memorandum of Understanding (MoU) to explore the development of a Re-Refined Base Oil (RRBO) ecosystem in India, marking an important step towards strengthening circular economy practices in the country’s lubricants sector.
Under the agreement, the two companies will jointly evaluate a structured model for the collection of used lubricating oil and its re-refining for reuse in lubricant manufacturing. The collaboration will focus on assessing the commercial viability, operational framework, and technical feasibility of implementing such a circular model at scale across India.
India generates a substantial volume of used lubricating oil every year, a large portion of which remains under-collected or is disposed of through informal channels. This not only leads to resource loss but also poses environmental risks. Global studies indicate that re-refining used oil can recover nearly 70–80% of the material as high-quality base oil, while consuming significantly less energy compared to producing virgin base oils from crude oil. When processed to required specifications, RRBO has been proven internationally to perform on par with conventional base oils in lubricant formulations.
As part of the initial phase, Castrol India and HPCL will begin detailed assessments immediately. This will include mapping existing and potential collection channels for used oil, evaluating available re-refining capacities, and testing RRBO for suitability across various automotive and industrial lubricant formulations. The insights and findings from this study will help determine the next phase of the initiative and the potential for wider implementation.
