Strategic collaboration to drive circularity in lubricants
Hindustan Petroleum Corporation Ltd (HPCL) and Castrol India have signed a Memorandum of Understanding (MoU) to explore the development of a re-refined base oil (RRBO) ecosystem across India’s lubricant value chain. Under the agreement, the two companies will jointly assess the feasibility of collecting used lubricating oil and re-refining it back into high-quality base oil for reuse in lubricant manufacturing. The collaboration focuses on evaluating the commercial, technical and operational aspects of scaling this circular model nationwide.
Used lubricating oil is routinely generated in large volumes across automobile service and industrial segments, yet much of it goes under-collected or is informally disposed of, leading to resource loss and environmental risk. International research indicates that up to 70–80% of used oil can be recovered as base oil, using far less energy compared to processing virgin crude-derived base stocks. When processed to the required specifications, RRBO has been demonstrated to match conventional base oil performance in lubricant formulations.
Mapping and testing for a scalable model
The initial phase of the partnership will immediately begin comprehensive assessments, including mapping used oil collection networks, evaluating potential re-refining capacities in India, and testing RRBO samples for performance in automotive and industrial lubricant formulations. These insights will help define the operational framework and investment needs for a future full-scale ecosystem.
HPCL brings extensive downstream infrastructure and refining expertise, while Castrol India contributes deep lubricant formulation experience and a broad market footprint. Their combined capabilities aim to address major barriers to circular practices in the lubricants sector, including logistics, quality assurance and end-market acceptance.
A successful RRBO ecosystem could reduce crude dependency, lower lifecycle energy use, and mitigate waste disposal challenges, aligning with India’s growing focus on resource efficiency and sustainability under extended producer responsibility norms.
