India Launches First Used Oil Recycling Initiative

India's first comprehensive national initiative for used lubricating oil collection and recycling has been launched through a Memorandum of Understanding between Re Sustainability Limited and Indian Oil Corporation Limited. This collaboration aims to establish a circular ecosystem for lubricant oil management, significantly contributing to India's resource efficiency and low-carbon economy goals.

The partnership will create a Special Purpose Vehicle to build a nationwide reverse logistics and collection network for used lubricating oil. This system will aggregate used oils from industrial and automotive sectors for advanced re-refining into Group I and Group II+ base oils.

With a target of collecting 100 kilotonnes per annum (KTA) of used oil, the initiative includes establishing a state-of-the-art re-refining facility. This facility, expected within three years, will process 50-100 KTA and meet stringent Indian and international quality standards.

This venture addresses India's challenge of significant used oil generation, with only a fraction currently recovered. By formalizing collection and recycling, the initiative seeks to unlock the resource value of used lubricants and accelerate the nation's shift towards a sustainable lubricant economy, also incorporating the recycling of plastic containers.

Indian Oil highlighted its commitment to advancing solutions that enhance energy security and environmental responsibility through sustainable value chains. Re Sustainability emphasized this as a transformative step for institutionalizing oil recycling and enabling resource recovery in India.