Re Sustainability and Indian Oil Join Hands to Create India’s First Integrated Used Oil Circular Economy Ecosystem

Re Sustainability and Indian Oil Join Hands to Create India’s First Integrated Used Oil Circular Economy Ecosystem

MUMBAI, India, March 13, 2026 /PRNewswire/ -- Re Sustainability has signed a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited to launch India’s first structured national initiative for the collection and recycling of used lubricating oil. The partnership marks a significant milestone in building a circular ecosystem for lubricant oil management and advancing India’s transition towards a resource-efficient and low-carbon economy.

This pioneering collaboration demonstrates how industry partnerships can accelerate circular resource flows, strengthen environmental governance, and build resilient energy and materials infrastructure for the future. By enabling systematic recovery and re-refining of used lubricants, the initiative will help reduce reliance on virgin crude-derived base oils while conserving natural resources and lowering foreign exchange outflows.

The collaboration will focus on establishing a dedicated Special Purpose Vehicle (SPV) to create a nationwide reverse logistics and collection ecosystem for used lubricating oil. The platform will aggregate used lubricants from industrial and automotive sectors and develop advanced Re-Refined Base Oil (RRBO) refining infrastructure to produce Group I and Group II+ base oils from recovered lubricants in partnership with Re Sustainability and its technology partners.

Mr. Bankim Patra, Country Head (Lubes), Indian Oil Corporation Limited, said:

“As India’s largest integrated energy company, Indian Oil is committed to advancing solutions that strengthen both energy security and environmental responsibility. This collaboration reflects our commitment to building sustainable value chains that enable responsible recovery, reuse, and circular utilisation of lubricants. By formalising the collection and recycling of used oil, we are supporting a more resource-efficient and sustainable energy ecosystem for India.”

Under the collaboration, recovered oil will be processed to produce Re-Refined Base Oil (RRBO) which can be reintroduced into lubricant manufacturing value chains. This circular approach significantly reduces dependence on virgin crude-derived base oils while strengthening material efficiency across the lubricants sector.