RRBO is Growing: But How Fast, Where, and Who Will Benefit?

Re-refining is no longer a small, supply-driven niche.

The question the lubricant industry should be asking now is not whether RRBOs matter, but how fast the market will grow and who will capture the value. Four forces are acting on the used oil value chain at the same time:

1. sustainability targets
2. the spread of EPR regulation
3. a move toward Group II and Group III RRBOs
4. growing involvement from lubricant majors through equity stakes and off-take agreements.

The recent supply disruptions in the Middle East this year have also highlighted the role of localized supply options which brings RRBOs to the fore. Even with this momentum, the industry still faces real hurdles. Competition for quality feedstock, uneven policy support and lingering doubts among blenders all shape how fast RRBO can grow. In this session, Anuj Kumar, Senior Project Manager at Kline & Company, covers the current state of the RRBO market and answer the key questions:

• What role is regulation playing in RRBO growth, and is it helping or holding back re-refining?
• What are the biggest challenges facing the used oil and re-refining industry?
• Are RRBOs ready to compete with virgin base oils, and where do they stand in blenders’ preferences today?
• Where is growth happening, how fast, and who stands to benefit?