HPCL, Castrol India team up to develop re-refined base oil ecosystem in India

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 in India, the companies said on Tuesday, January 27. 

The partnership will evaluate a circular model for collecting used lubricating oil and re-refining it for reuse in lubricant manufacturing as India looks to improve waste management and reduce reliance on virgin base oils.

Under the agreement, the two companies will assess the commercial, operational and technical feasibility of scaling such a model, including mapping used oil collection channels, reviewing re-refining capacity and testing RRBO across lubricant formulations.

“As energy markets transition, circularity in value chains will become increasingly important,” said Ch Srinivas, Executive Director for Lubes at HPCL. He further said that the initiative aims to recover material value while promoting responsible resource use.

Castrol India’s interim CEO Saugata Basuray said used oil could be a valuable resource if processed correctly and that the collaboration could help reduce waste and environmental impact.

Castrol India, in a regulatory exchange, highlighted that India generates large volumes of used lubricating oil annually with much of it either under-collected or disposed of through informal channels.

International studies show that re-refining used oil can recover up to 70–80% of it as high-quality base oil while consuming significantly less energy than refining crude-based alternatives, the company said, adding that assessment work will begin immediately, with findings expected to guide the next phase of the initiative.

Shares of Castrol India is trading at ₹183.90 apiece on the BSE, which is 0.08% higher than the day's opening.

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