Castrol India and HPCL sign a Memorandum of Understanding to investigate the RRBO ecosystem

Hindustan Petroleum Corporation Limited (HPCL) and Castrol India have signed a Memorandum of Understanding (MoU) to jointly explore the development of a Re-Refined Base Oil (RRBO) ecosystem in India, supporting the country’s transition toward circularity in the lubricants value chain.

Under the agreement, the two companies will collaborate to assess a structured model for the collection of used lubricating oil and its re-refining for reuse in lubricant manufacturing. The initiative will evaluate the commercial, operational, and technical feasibility of implementing such a circular model at scale.

Ch. Srinivas, Executive Director – Lubes, HPCL, said that as energy markets evolve, circular approaches across value chains will become increasingly critical. He noted that the partnership with Castrol India aims to examine a systematic ecosystem for used oil collection and re-refining, enabling recovery of material value while promoting responsible and sustainable resource utilisation.

Commenting on the collaboration, Saugata Basuray, Interim CEO of Castrol India, highlighted that used oil represents a valuable resource when managed correctly. He said the MoU provides an opportunity to explore a model that could reduce waste, lower environmental impact, and align with India’s growing emphasis on circular economy principles.

India generates large volumes of used lubricating oil annually, a significant portion of which remains under-collected or is handled through informal disposal channels. Global studies indicate that re-refining can recover up to 70–80% of used oil as high-quality base oil, while consuming substantially less energy than producing virgin base oils from crude. When processed to required specifications, RRBO has been shown internationally to deliver performance comparable to conventional base oils.

As part of the collaboration, HPCL and Castrol India will immediately begin assessment activities, including mapping used oil collection networks, evaluating re-refining capacities, and testing RRBO for suitability across lubricant formulations. Insights from the study will inform the next phase of the initiative.

The detailed article is published by https://www.castrol.com/en_in/india/home.html can be accessed from https://www.castrol.com/en_in/india/home/about-castrol/newsroom/hpcl-castrol-india-sign-mou-to-explore-rrbo-ecosystem.html