The capacity for Group III RRBO is set to undergo a twofold increase over the course of the next 12 years.

The global lubricants market, estimated at between 35 and 40 million tons annually, is witnessing a significant transformation towards high-quality lubricants, driving up the demand for API Group III base oils.

Historically, only a fraction of used oils have been re-refined into base oils. However, advancements in re-refining technology over recent decades have opened up numerous possibilities for upgrading used oil vacuum gas oil (VGO), resulting in the production of top-tier re-refined base oils (RRBO) of Group II and Group III standards. PURAGLOBE currently leads as the sole global producer of "non-virgin" API Group III base oils.

Speaking at the ALIA Annual Meeting in Ho Chi Minh City, Vietnam, on March 6, 2024, PURAGLOBE CEO Andreas Schueppel projected that Group III re-refined base oil capacity would double within the next 12 years.

The crucial characteristics for high-performance engine oils include a high viscosity index, favorable low-temperature viscometrics, low volatility, high saturates, low sulfur content, clarity, freedom from water and contaminants, and consistent quality. Schueppel highlighted that all of these attributes can be achieved with re-refined base stock.

Notably, PURAGLOBE pioneered the production of fully sustainable, fully synthetic finished lubricants such as 0W-20 for the automotive sector. Schueppel disclosed plans to collaborate with additive suppliers to develop OW-16 and OW-8 viscosity grades.

Dr. H. Ernest Henderson, president of K&E Petroleum Consulting, LLC, also addressed the ALIA event, noting that nearly 60% of re-refined base stock production now meets Group II and Group III quality standards. Henderson emphasized the anticipated continuation of this trend with improved feed quality and process technologies.

Schueppel highlighted extensive opportunities for RRBO in Asia, stressing the importance of market development in regions with established used motor oil collection systems. Moreover, he emphasized the significance of demonstrating feedstock availability and securing off-take agreements to obtain financing for new RRBO projects.