Recover base oil through lubricating oil re-refining

Used or Contaminated Lubricating Oil (OLUC) is classified as hazardous waste due to its toxicity and potential environmental and human health impacts. Improper disposal can contaminate soil and water and lead to significant greenhouse gas (GHG) emissions if incinerated or landfilled.

Lwart's decarbonization strategy focuses on circular economy solutions that reduce reliance on virgin fossil-based resources, lower Scope 1 and Scope 3 emissions, and ensure regulatory-compliant waste management at scale.

Location of the initiative: Brazil

The company implemented a nationwide reverse logistics and re-refining system for used lubricating oil, reinserting recovered base oil into the lubricants value chain.

Key elements of the initiative include:

• Nationwide collection of OLUC through authorized collection points

• Centralized industrial re-refining facilities

• Reintegration of recovered base oil into lubricant production

Re-refining process overview:

1. Physical-chemical treatment: Removal of water, metals, additives, and other contaminants from OLUC.

2. Hydrotreatment: Four catalytic reactors operate under high temperature, pressure, and hydrogen to remove remaining impurities and restructure hydrocarbon molecules, resulting in high-quality base oil meeting API Group II standards.

The process achieves a yield above 75%, enabling large-scale material recovery.

Sustainability impact

Climate

Emission scopes targeted:

• Scope 1: Fuel and energy use in re-refining operations

• Scope 3, Category 12: End-of-life treatment of sold products

• Scope 3, Category 1: Purchased goods (base oil substitution)

GHG impact:

• Life Cycle Assessment shows a carbon footprint of 1,091 kg CO₂e/m³, representing a 77% reductioncompared to first-refined (virgin) base oil

• 6% reduction in Scope 1 GHG emissions in 2024 compared to 2023.

• 50% reduction in natural gas consumption year-on-year, the main non-renewable fuel used in operations.

Nature

The initiative prevents hazardous oil from contaminating soil and water, reduces demand for crude oil extraction, and minimizes waste generation by keeping materials in continuous circulation.

Social

By ensuring compliant collection and treatment of hazardous waste, the initiative reduces public health risks, supports formal waste management jobs, and improves environmental safety across communities.

Business impact

Benefits

• Reduced dependency on virgin base oil markets

• Improved energy efficiency and operational performance

• Regulatory compliance and reduced environmental liability

• Increased resilience through circular raw material supply

• Strengthened relationships with lubricant producers and collection partners

Costs

• Investment required: High upfront capital expenditure for reactors, catalysts, and hydrogen systems

• Operating costs: Energy, hydrogen, catalyst replacement, logistics

• Cost variability: Strongly dependent on energy prices and collection logistics efficiency

Cost optimization levers include:

• Energy efficiency improvements

• Scale effects from higher collection volumes

Typical business profile

• Lubricant producers

• Waste management and recycling companies

• Industrial processors with access to hydrogen and high-temperature systems

• Companies with advanced circular economy or Net Zero strategies

Approach

1. Establish authorized collection networks for used lubricating oil

2. Secure regulatory approvals for hazardous waste transport and treatment

3. Invest in re-refining infrastructure and catalytic hydrotreatment units

4. Implement energy efficiency and fuel optimization measures

5. Conduct Life Cycle Assessment to quantify climate benefits

6. Reintegrate recovered base oil into lubricant production

Stakeholders involved

Project leads: Sustainability and operations leadership

Company functions:

• Operations

• Environmental compliance

• Supply chain and logistics

• Engineering

Main providers:

• Catalyst suppliers

• Hydrogen and energy providers

Other stakeholders:

• Lubricant producers

• Waste oil collectors

• Regulators

Key parameters to consider

• Initiative maturity: Well-established industrial technology

• Implementation timeline: Multi-year for infrastructure deployment

• Average lifetime: Long-term industrial assets (>20 years)

• Technical requirements: High-pressure reactors, hydrogen availability

• Geographical relevance: Strongly dependent on collection infrastructure and regulation

Implementation and operations tips

• Invest early in collection logistics to ensure feedstock availability

• Optimize energy use to manage operating costs

• Use LCA to demonstrate climate benefits and secure stakeholder buy-in

• Maintain strong compliance systems for hazardous waste handling