Total lubricant demand in the Asia-Pacific region is about 12.5 million tons per year, said Hartmann, and it has the potential to generate 5 million tons of used oil annually. There is significant potential there for new rerefining plants.

A regulatory framework for used oil management is in place only in some Asian countries, Hartmann continued, but, too often, the schemes have not been executed. And too often used oil that is collected is not used in environmentally friendly and economically effective ways.

Asians are paying relatively high prices for used oil, resulting from misuse of used oil, said Hartmann. In sum, there is presently no rerefining, or mostly outdated rerefining, in most Asia-Pacific countries – with a few notable exceptions – and existing plants are generally very small, using old clay treatment.

Hartmann highlighted the status of used oil management in several key countries, starting with Australia. More than 450,000 tons of lubricating oil are sold in Australia per annum, and a modern rerefining plant exists, he said. The countrys Product Stewardship for Oil scheme was introduced in 2001, involving a levy on new oil sold and benefit payments to used oil recyclers.

The volume of used oil recycled in Australia has increased from 175,000 tons, or 42 percent of new oil sold in 2000-2001, said Hartmann, to 228,000 tons or 50 percent of new oil sales in 2007-2008. And rerefined oil has experienced significant year-on-year increases in volume in recent years.

In China, where about 6.6 billion tons of lubricants are sold each year, technical standards for collection and rerefining were adopted in 1997. But the standards are not well implemented, they are only recommendations, and no specific controlling agency is responsible to manage the implementation, Hartmann said.

In 2008, about 3 million tons of used oil were generated in China, Hartman continued. About 75 percent was collected and applied as concrete release, chemicals or fuel. Only small used oil quantities are rerefined, only by small players using traditional, low-level technology.

Singapore consumes just 40,000 tons of lubricating oils annually, and has an active reduce-reuse-recycle system managed by the National Environment Agency. Most used oils are used in the chemical industry; rerefining to base oils is not well developed because of significant existing sources of base oil in the country, Hartmann said.

Demand for lubricating oils in India is about 1.3 million tons per year, Hartmann continued. Hazardous waste regulations were put in force in 1986-1989, burning and dumping used oil were prohibited, and an optional Ecomark label was developed in 1991. In 1993 an excise duty was adopted on used oil, but it did not favor rerefining.

Today in India, about 550,000 tons of used oil are generated annually, and there are about 200 rerefining installations around the country, but most of the lube oil produced is below international specifications. There is still much illegal dumping, mixing and burning, said Hartmann, and unfortunately no use of the Ecomark label.

In much of the rest of Asia, most of the used oil collected is burned, said Hartmann, and no good information is available.

Puralube/Changchun is planning a new 80,000 ton per year rerefinery in Changchun, China, using his companys HyLube technology, said Hartmann. Construction will begin in late 2009; the plant will produce API Group II base oils as well as byproducts.

Some of Asias larger operating plants include Agip Lubrindo Pratamas 40,000 t/y rerefinery in Indonesia, with capacity to product Group I base oil and by products; Transpacific Industries Groups 30,000 t/y Group I plant in Australia; and Dunwells 24,000 t/y plant in Hong Kong, whose output is base oil quality below API Group I, said Hartmann. All use thin film evaporation and other technologies.

What needs to be done for rerefining to bloom in Asia? You need investment, at least U.S. $50 million for an 80,000 ton capacity plant, Hartmann said, and used oil must be stored properly without blending different kinds of waste. The used oil must be analyzed, and pollutants must be separated.

The present may be the right time for Asias rerefining industry, Hartmann concluded. Modern rerefining will support and extend the environmental efforts of the governments. The technology has existed in Europe for over 70 years but can be implemented quickly in Asia, jumping over the development stage.

Rerefining can outperform virgin lubricant standards and become a reliable and transparent partner for the lube industry and other sectors. Within the next five or ten years, Hartmann expects to see at least 10 new rerefineries with 60,000 to 80,000 ton capacities. Modern rerefining, he said, promotes a green and clean image and avoids the harmful uses of used oil.