Castrol India, HPCL ink pact to explore Re-Refined base oil ecosystem

Castrol India and Hindustan Petroleum Corporation (HPCL) have signed a memorandum of understanding (MoU) to explore the development of Re-Refined Base Oil (RRBO) ecosystem in India. Under this MoU, the two companies will work together to evaluate a model for collecting used lubricating oil, have it re-refined for its use in lubricant production. The collaboration aims to assess the commercial, operational and technical feasibility of such a circular model at scale.

India generates significant volume of used lubricating oil every year, much of which is either under-collected or disposed off informally. International studies show that re-refining used oil can recover up to 70-80% of it as high-quality base oil, while using considerably less energy than refining crude-based virgin base oils. RRBO, when processed to required specifications, has been demonstrated globally to perform on par with conventional base oils. The two companies will begin work on the assessment immediately, including mapping collection channels, evaluating re-refining capacity and testing RRBO for suitability across lubricant formulations. 

Castrol India is an India-based company engaged in providing coke and refined petroleum products. The company is involved in manufacturing lubricating oils.