Superior environmental performance makes rerefined oil compelling: life cycle assessments show rerefined base oil carbon footprints at 70%-80% of virgin feedstocks and greenhouse gas savings of up to 7,500 tons per 3.78 million liters. Technological advances such as improved vacuum distillation solvent extraction and hydrotreating have enabled rerefiners in North America and Europe to routinely produce Group II and even Group III quality base oils.

Europe
European reuse of waste lube oil has matured. The EU collects nearly 90% of used lubricants – about 1.7 million tons per year – and converts roughly one‑third into base oil, making rerefined stocks nearly 600 ,000 t/y in 2014, rising toward 800 000 t/y by the mid‑2020s. 

Extended Producer Responsibility rules in EU member states have driven mandatory collection and regeneration targets. In Greece rerefining rates reached 43% of total lubricant consumption; in Germany rerefined base oil contributes about 20% of market demand.

Leading rerefiners such as Avista, Viscolube and Sertego now produce Group II+ grade base oil through severe hydroprocessing and advanced solvent techniques.

European firms have asked the EU to enact binding targets requiring collection and rerefining – aiming for 60% of collectable oil by 2025 and 85 percent by 2030 – pushing rerefined base oils toward 1.1 million t/y in total. Consequently regional growth is slowing as capacity approaches regulatory and infrastructure‑defined limits, suggesting Europe may reach plateau soon.

United States
Rerefined base oil capacity in the U.S. stood at nearly 875,000 t/y as of early 2022, primarily Group I. Unlike Europe the U.S. lacks broad regulatory mandates requiring rerefining. Most used oil is collected voluntarily and processed by commercial enterprises like Safety‑Kleen and Avista.

Despite the absence of laws capacity has grown incrementally driven by circular economy incentives and lifecycle carbon reduction goals. Safety‑Kleen alone processes more than 757 million liters of used oil annually producing Group II+ base oil meeting modern engine oil specs and often outperforming virgin oils. With no saturation from regulation the U.S. market still offers opportunity. Growth depends on private investment, sustainability commitments from blenders, and evolving voluntary collection networks rather than statutory requirements.

Asia
Asia is a wide open growth region. China collected over 6.5 million  tons of waste lubricants in 2023 and produced approximately 1.4 million t/y of rerefined base oil. Indian EPR regulation started in 2024‑25 set recycling targets beginning at 5% and rising to 50% by 2030‑31.

Actual rerefined penetration remains very low, around 1%but , compared with 22% in Italy and Germany or 26% in Brazil. Lack of organized collection systems and limited infrastructure remain key barriers. But major investments are under way including large provincial plants in Shandong exceeding 200 000 t/y output with hydrotreating units to elevate quality toward Group II/III. Industry experts emphasise scale regulation and standards as Asia’s unreadiness is overcome, unlocking vast potential.

Beyond Asia, rerefining remains nascent. In Central Asia firms such as Uz‑Prista are building networks for collection and rerefining to serve domestic and regional markets in Turkmenistan Tajikistan Kyrgyzstan and beyond. Developing regions in Africa Latin America and the Middle East currently rely heavily on virgin base oils and lack regulatory frameworks – presenting untapped potential for rerefining development.

Outlook
Rerefined base oil output remains a small fraction of approximately 30 million metric tons of global base oil demand projected to plateau by 2030. But demand for high‑quality Group II and Group III oils and a shift toward sustainability make rerefining increasingly strategic. Europe has made the sector mature through legislation and infrastructure—growth will be incremental. The U.S. has room to grow commercially though lacking mandates. Asia and many developing markets remain at the early stages with high upside potential once collection systems scale and regulation catches up.

In summary rerefining is transitioning from niche to mainstream. Europe leads in regulatory maturity but shows signs of plateau. The U.S. continues moderate expansion in the absence of firm policy. Asia and rest of world are wide open ripe for growth supported by scale building standards and circular economy initiatives.

Major oil companies have begun investing in rerefining capacity. ExxonMobil in France is reconfiguring its Lillebonne site to start operations in the second half of 2025. Once converted that facility is expected to produce about 125,000 metric tons of API Group I rerefined base oil annually. Shell and BP have pursued partnerships in the sector but ExxonMobil is notable for building its own standalone rerefinery.

There is growing recognition that the quality of rerefined base oil has improved. Advances in solvent extraction, vacuum distillation and hydrotreating have enabled production of Group II and III base oils from waste feedstocks. Among processors in North America and Europe the gap between rerefined and virgin oils has narrowed and in some cases performance is considered equivalent or better, according to its proponents.

Interest among major lubricant blenders is rising in rerefined base oils as part of carbon reduction and cost management goals. Buyers increasingly consider rerefined oils to meet internal sustainability standards and communicate reduced scope‑1 and scope‑2 emissions to investors. The sector appears likely to expand modestly in established regions and potentially more broadly in markets where collection infrastructure and regulation are nascent.

Avista Oil
Avista Oil operates several rerefining facilities. In North America, it runs a plant in Peachtree City, Georgia, producing Group II and III base oils. In Europe, its operations include sites in Dollbergen, Germany, and Kalundborg, Denmark.

Eneos
Eneos operates a pilot plant in Japan that has produced rerefined base oil meeting Sequence IIIH performance standards, as part of a government‑commissioned demonstration project.

Green View Technologies
Green View Technologies announced plans in 2014 to commission a new rerefinery in Rollinsford, New Hampshire, U.S.

Heritage‑Crystal Clean
Heritage‑Crystal Clean is developing a rerefinery in Indianapolis, Indiana, that was planned to produce Group II base oils.

IFP Petro Products
In India, Avista has a partnership with IFP Petro Products to develop waste lubricant rerefining capacity.

Lwart Environmental Solutions
Brazil’s Lwart Environmental Solutions operates a rerefinery in Lencois, Brazil – one of the largest such facilities in the world.

Metalub
Costa Rica’s Metalub has a U.S. $12 million used oil facilities with capacity to process 5,400 tons of used oil per year and to produce 4,000 t/y of base oil.

Safety‑Kleen (Clean Harbors)
Safety‑Kleen is cited as the largest rerefiner in North America. It processes more than 757 million liters of used oil annually and produces Group II base oil.

Pentas Flora
Malaysian waste collection and lubricant blending company Pentas Flora upgraded its used oil rerefinery to make Group II and III oils.

Puraglobe
Operations in Europe and the U.S.

Tayras
Turkey’s first rerefiner Tayras has processing capacity is 60,000 tons, producing 45,000 t/y Group II base oil.

Vertex Energy/Kleen Performance Products
Vertex Energy, through its Kleen Performance Products subsidiary, maintains rerefining operations in the U.S., including a facility in East Chicago producing Group II and II+ base oils.

Yunitco
Saudi base oil rerefiner Yunitco has a 120,000-ton unit that is undergoing a production capacity increase to 200,000 tons.