HPCL, Castrol India Sign MoU To Explore RRBO Ecosystem

27 January 2026

Mumbai

Hindustan Petroleum Corporation Limited (HPCL), one of the India’s largest integrated energy companies, and Castrol India, the country’s premier producer and marketer of automotive and industrial lubricants, have signed a Memorandum of Understanding 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.

Ch Srinivas, Executive Director – Lubes, HPCL, said, “As energy markets transition, circularity in value chains will become increasingly important.

Through this partnership with Castrol India, we aim to assess a structured ecosystem for collection and re-refining of used oil, which would help recover material value while promoting responsible resource use.”

Speaking on the collaboration, Mr. Saugata Basuray, Interim CEO, Castrol India, said, “Used oil is a valuable resource if collected and processed in the right way.

This MoU allows us to explore a model that could reduce waste, lower environmental impact and support India’s growing focus on circularity. We look forward to working with HPCL to evaluate its potential 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.

Findings from the study will guide the next phase of the initiative.

Click the link below to access the full press release