#India #Mumbai #circular economy #Re Sustainability #Indian Oil

Transforming India's Oil Recycling Landscape

In a significant move towards sustainable development, Re Sustainability has partnered with Indian Oil Corporation Limited to initiate India’s first structured national program focused on the collection and recycling of used lubricating oil. This innovative collaboration, which has already been formalized with a Memorandum of Understanding (MoU), marks a pivotal step in enhancing India's capabilities to establish a circular economy for used oils.

The two companies plan to create a dedicated Special Purpose Vehicle (SPV) to manage and optimize a reverse logistics and collection network, specifically aimed at gathering used lubricating oils from both the industrial and automotive sectors. The goal is ambitious – to achieve an annual collection target of 100 Kilo Tonnes per Annum (KTA) of used oil, thus laying the groundwork for a circular system where recovered oil can be processed into Re-Refined Base Oil (RRBO) and reintroduced into the lubricant manufacturing processes.

Mr. Bankim Patra, who serves as the Country Head for Lubricants at Indian Oil, emphasized the company’s commitment to not only advancing energy security but also fostering environmental sustainability. He remarked, "This collaboration supports the creation of sustainable value chains for responsible recovery, reuse, and circular utilization of lubricants."

The innovative recycling system will reduce the reliance on virgin crude-derived base oils, helping to conserve valuable resources while simultaneously lowering foreign exchange outflows associated with importing crude oil. This initiative is expected to transform waste management practices in India and strengthen the country's environmental infrastructure.

The Vision Behind the Collaboration

Mr. Masood Mallick, Managing Director and Group CEO of Re Sustainability, highlighted the critical need for systems that facilitate the recovery of value from complex waste streams. He believes that the partnership with Indian Oil symbolizes a transformative approach toward institutionalizing oil recycling on a larger scale in India. "By building an integrated ecosystem for used lubricant recovery and re-refining, we are enabling the shift from waste management to resource recovery, fortifying India’s circular economy," he stated.

The collaboration also includes plans to establish a re-refining facility capable of processing 50 to 100 KTA of Group II+ RRBO. Additionally, in line with Extended Producer Responsibility (EPR) regulations, the initiative will address the recovery and recycling of plastic lubricant containers, ensuring that every component of the lubricant supply chain is optimized for sustainability.

Addressing the Current Challenges

India currently generates an estimated 1.3 million tonnes of used lubricating oil each year, but the formal recycling infrastructure is insufficient, with only about 0.2 million tonnes being recycled. The new initiative aims to resolve this disparity by unlocking the value of used lubricants and supporting India's transition towards a more circular and resource-efficient economy.

The program's holistic approach not only targets oil recovery but also aims to mitigate the environmental impacts of waste lubrication management. By fostering efficient practices within this sector, the collaboration sets a benchmark for future similar ventures across the country.

Looking Ahead

This initiative represents a paradigm shift in the way India approaches waste management, particularly concerning oil recycling. With Re Sustainability and Indian Oil pushing the envelope on what can be accomplished through collaboration, this model promises not only to drive economic efficiency but also to enhance the country's ability to maintain environmental integrity.

As the program unfolds, it will be crucial to monitor its impacts on both the economy and environmental sustainability, but initial expectations are high. Through such innovative partnerships, India is poised to capitalize on its commitment to sustainability, ultimately paving the way for a greener future for generations to come.