
The recycled base oil market is defined by grade segmentation into SN 150, SN 300, SN 500 and Bright Stock, alongside trade routes that connect global collection hubs to major re-refining clusters. Buyers and compliance teams track these flows to verify feedstock origin and carbon intensity, ensuring that re-refined base stocks meet the stringent performance benchmarks required by modern lubricant formulations.
This article details the technical distinctions between API Group I, II and III+ grades, comparing the yield and quality of acid-clay, hydrotreating and hydrocracking processes. It outlines the specific quality standards, OEM approval requirements and regional regulatory frameworks governing the Recycled Base Oil Market: Grades, Quality Standards & Trade Flow, providing procurement teams with the precise data needed to source compliant, high-performance re-refined base oils.
The recycled base oil market is defined by grade segmentation into SN 150, SN 300, SN 500 and Bright Stock and by trade routes that connect collection hubs to re-refining clusters. Buyers and compliance teams track these flows to verify feedstock origin and carbon intensity. Europe processes 55 percent of what it collects, or 950,000 t/y, at rerefineries that produce base stocks according to Lube Report.
| Metric | Detail | Primary Hub | Key Grade Volume |
|---|---|---|---|
| Global Market Size | Multi-million tonne annual demand | Rotterdam, US Gulf Coast, Jebel Ali, Singapore, Mumbai | SN 150, SN 300, SN 500, Bright Stock |
| 2024-2030 CAGR | Steady growth driven by circular mandates | Rotterdam, US Gulf Coast, Jebel Ali, Singapore, Mumbai | SN 150, SN 300, SN 500, Bright Stock |
| Grade Segmentation | SN 150, SN 300, SN 500, Bright Stock volumes | Rotterdam, US Gulf Coast, Jebel Ali, Singapore, Mumbai | SN 150, SN 300, SN 500, Bright Stock |
| Top Trade Hubs | Rotterdam, US Gulf Coast, Jebel Ali, Singapore, Mumbai | Rotterdam, US Gulf Coast, Jebel Ali, Singapore, Mumbai | SN 150, SN 300, SN 500, Bright Stock |
The table maps the headline figures against the five primary logistics hubs that handle the bulk of cross-border movements. Rotterdam anchors the European re-refining cluster while the US Gulf Coast serves the Americas. Jebel Ali and Singapore act as transshipment points for Middle East and Asia-Pacific flows and Mumbai reflects India's growing collection and processing capacity. Buyers use these hubs to structure Incoterms and verify Basel Convention compliance on each shipment.
Recycled base oil is lubricant base stock produced by re-refining used oil to remove contaminants and restore performance specifications. Most commercial re-refined grades sit in API Group I because they are solvent-refined and contain more than 0.03 percent sulfur or less than 90 percent saturates. A small number of hydrocracking units target Group II+ or Group III+ viscosity indices but volumes remain limited.
Re-refining used oil avoids the crude extraction and primary refining steps that dominate the carbon footprint of virgin base oil. Life cycle analyses show lower CO2e per tonne of finished base stock compared with virgin Group I production. Energy demand drops and process water consumption falls because the feedstock has already been through the most energy-intensive separation stages. These metrics underpin EU Taxonomy alignment and Scope 3 reporting for blenders targeting net-zero commitments.
Re-refined is the technically precise term for base oil that has undergone distillation and chemical treatment to meet fresh oil specifications. Recycled is a broader label that can include simple filtration or blending without full re-refining and therefore does not guarantee API performance. Regenerated appears in European regulations and some Asian markets as a synonym for re-refined but buyers should verify the process technology behind the label. Contracts and OEM approvals always reference re-refined base stock to avoid ambiguity.
Acid-clay processing treats used oil with sulfuric acid followed by clay adsorption to remove contaminants and oxidation byproducts. The process generates large volumes of hazardous acid tar and spent clay that require costly disposal under strict environmental permits. Capital expenditure is low compared with hydrogen-based routes but operating expenditure rises with acid and clay consumption plus waste handling fees. Most remaining acid-clay plants operate in regions where environmental enforcement is lax or where small-scale throughput does not justify hydrogen infrastructure.
Hydrotreating combined with vacuum distillation is the dominant technology for new re-refining capacity worldwide. Used oil feeds a wiped-film evaporator or thin-film evaporator for light-end removal followed by vacuum distillation cuts and a fixed-bed hydrotreater operating at 300 to 380 degrees Celsius under 50 to 100 bar hydrogen pressure. Sulfur drops below 300 ppm, saturates exceed 90 percent and viscosity index reaches 95 to 110. Capital intensity is moderate and operating cost is driven by hydrogen consumption and catalyst replacement cycles of two to four years.
Hydrocracking pushes re-refined base oil into API Group III territory by operating at higher severity 380 to 450 degrees Celsius and 100 to 180 bar hydrogen pressure with noble-metal or zeolitic catalysts. The process cracks waxy paraffins to boost viscosity index above 120 and saturates above 99 percent while cutting Noack volatility below 10 percent. ReGen III in Canada and Vertex Energy in the United States license proprietary hydrocracking configurations that integrate dewaxing and hydrofinishing in a single train. Yield on a used-oil feed basis ranges from 65 to 70 percent for Group III product with the balance as lighter fractions or fuel. Capital expenditure is 30 to 50 percent higher than hydrotreating but the premium Group III price spread often justifies the investment for large-scale plants targeting OEM PCMO approvals.
| Technology | Typical API Group | Base Oil Yield | Viscosity Index Range | Key Waste Stream | Relative CAPEX |
|---|---|---|---|---|---|
| Acid-Clay | Group I | 60-65% | 85-95 | Acid tar, spent clay | Low |
| Hydrotreating + Vacuum Distillation | Group I / II | 75-80% | 95-110 | Spent catalyst, light ends | Moderate |
| Hydrocracking | Group III | 65-70% | 120+ | Spent catalyst, light ends | High |
The table above shows why hydrotreating has become the default choice for greenfield re-refineries. It balances yield, product quality and capital efficiency while eliminating the hazardous solid waste streams inherent to acid-clay. Buyers specifying Group II base stock should confirm the supplier runs a hydrotreating or hydrocracking train because acid-clay output cannot consistently meet Group II saturates or VI thresholds.
Re-refined SN 150 typically shows kinematic viscosity at 100 °C of 4.0 to 4.5 cSt, viscosity index 95 to 105, flash point above 200 °C, pour point -12 to -15 °C, color L1.0 to L2.0, sulfur below 300 ppm and Noack volatility 12 to 15 percent. SN 500 delivers 11.5 to 12.5 cSt, VI 95 to 100, flash above 240 °C, pour -6 to -9 °C, color L2.0 to L3.0, sulfur below 300 ppm and Noack 8 to 10 percent. Bright Stock grades exceed 25 cSt at 100 °C with VI 90 to 95, flash above 280 °C, pour -6 to -9 °C and color up to L4.0. These ranges assume modern hydrotreating; acid-clay material often sits at the lower end of VI and higher end of sulfur and color.
Virgin Group I SN 150 typically posts VI 95 to 100, sulfur 300 to 800 ppm and Noack 13 to 16 percent while hydrotreated re-refined SN 150 matches or exceeds VI and cuts sulfur below 300 ppm. For SN 500 the virgin Group I VI range is 90 to 95 versus re-refined 95 to 100 giving the re-refined grade a slight viscosity-temperature advantage. Virgin Group II SN 150 from a modern hydrocracker delivers VI 110 to 115, sulfur below 50 ppm and Noack 8 to 10 percent which still outperforms the best re-refined Group I on volatility and saturates. Re-refined Group II from hydrotreating narrows the gap to VI 105 to 110 and Noack 10 to 11 percent making it a credible substitute in many PCMO and HDEO blends. The BS 150 specification sheet illustrates how tight the tolerances are for industrial buyers.
Hydrocracked re-refined base stocks branded as Group II+ or Group III now hit VI 110 to 125, Noack volatility below 10 percent, CCS viscosity at -30 °C under 6,200 mPa·s for SAE 5W grades and HTHS above 3.5 mPa·s. RPVOT values exceed 120 minutes indicating oxidation stability on par with virgin Group III. Sulfur falls below 10 ppm and saturates exceed 99 percent. These specs enable blenders to formulate full synthetic or synthetic blend PCMO meeting API SP and ILSAC GF-6A without virgin Group III. The Group III classification guide explains why OEMs treat these re-refined grades as synthetic equivalents for warranty purposes.
| Grade | KV100 (cSt) | VI | Flash (°C) | Pour (°C) | Sulfur (ppm) | Noack (%) |
|---|---|---|---|---|---|---|
| SN 150 Re-refined | 4.0-4.5 | 95-105 | >200 | -12 to -15 | <300 | 12-15 |
| SN 150 Virgin Grp I | 4.0-4.5 | 95-100 | >200 | -12 to -15 | 300-800 | 13-16 |
| SN 150 Virgin Grp II | 4.0-4.5 | 110-115 | >210 | -30 to -33 | <50 | 8-10 |
| SN 300 Re-refined | 9.5-10.5 | 95-105 | >220 | -9 to -12 | <300 | 10-12 |
| SN 500 Re-refined | 11.5-12.5 | 95-100 | >240 | -6 to -9 | <300 | 8-10 |
| Bright Stock Re-refined | >25 | 90-95 | >280 | -6 to -9 | <300 | 6-8 |
| Group II+ Re-refined | 4.0-5.0 | 110-125 | >220 | -30 to -35 | <10 | <10 |
Reading the table highlights three practical takeaways for procurement. First, re-refined SN 150 and SN 300 meet or beat virgin Group I on VI and sulfur making them drop-in replacements for Group I blends. Second, the Group II+ re-refined row shows that hydrocracking closes the performance gap with virgin Group II on Noack and CCS which is critical for 5W-30 and 0W-20 engine oils. Third, Bright Stock remains a niche where re-refined supply is tight; buyers should lock in annual contracts early because global output is limited to a handful of hydrocracking plants. If the GEIR targets are met, output of rerefined base stocks in Europe should swell 83 percent to 1.1 million t/y by 2025 according to Lube Report (Lubes'n'Greases) (March 2023).
Re-refined base oils qualify for API Engine Oil Licensing and Certification System (EOLCS) marks when the finished lubricant passes the mandated engine test sequence. The base stock itself must carry a valid API Base Oil Interchange (BOI) and Viscosity Grade Read-Across (VGRA) justification supported by the re-refiner. For ILSAC GF-6A and GF-6B the critical tests are Sequence IIIH for high-temperature deposits Sequence IVB for cam wear and Sequence VIE for fuel economy. Re-refined Group II+ stocks from hydrocracking plants routinely pass these sequences because their Noack volatility and cold-cranking simulator (CCS) values match virgin Group II benchmarks. GF-7 development adds Sequence IX for low-speed pre-ignition (LSPI) protection and an aged-oil Sequence IIIJ variant. Early data from licensors show hydrocracked re-refined Group II+ meets the GF-7 volatility and deposit targets without formulation penalty.
ACEA European Oil Sequences 2023 require re-refined base stocks to demonstrate equivalence in the CEC L-109-14 (OM646LA) for soot-induced wear and CEC L-112-16 (M271EVO) for sludge control. For heavy-duty diesel ACEA E6 E9 and E11 the key tests are Mack T-13 for soot viscosity control and Volvo T-13 for bore polishing. Re-refined Group II+ base oils with VI above 110 and sulfur below 300 ppm satisfy the base oil requirements for ACEA C5 and E11 formulations. The main differentiator remains Noack volatility where hydrocracked re-refined stocks achieve 8 to 10 percent versus 12 to 15 percent for solvent refined grades enabling the low-SAPS chemistry required by modern aftertreatment systems.
Mercedes-Benz 229.5 and 229.51 approvals have been granted to finished oils blended with hydrocracked re-refined Group II+ base stocks from Safety-Kleen and Avista Oil. Volkswagen 504 00 and 507 00 approvals similarly list specific re-refined base oil suppliers in their technical dossiers. Cummins CES 20086 and Detroit Diesel DFS 93K222 approvals for heavy-duty applications also reference qualified re-refined base stocks. Procurement teams must distinguish between an OEM approval letter naming the base oil supplier and a blender claim of "meets requirements" based on read-across. Only the former provides warranty protection. The table below maps current approvals by major OEM and base oil grade.
| OEM Specification | Approved Re-refined Grade | Re-refiner Examples | Approval Type | Key Base Oil Property Enabler |
|---|---|---|---|---|
| Mercedes-Benz 229.51 | Group II+ Hydrocracked | Safety-Kleen Avista Oil | Formal Approval | Noack <10% VI >115 |
| VW 504 00 / 507 00 | Group II+ Hydrocracked | Safety-Kleen | Formal Approval | CCS -35°C Noack 8-9% |
| Cummins CES 20086 | Group II+ Hydrocracked | Safety-Kleen Hydrodec | Formal Approval | Sulfur <300 ppm High VI |
| Detroit Diesel DFS 93K222 | Group II+ Hydrocracked | Avista Oil | Formal Approval | Oxidation Stability TBN Retention |
| API SN/SP (ILSAC GF-6) | Group II+ Hydrocracked | Multiple Licensors | BOI/VGRA Qualified | Sequence IIIH VIE Pass |
| ACEA C5 / E11 | Group II+ Hydrocracked | Multiple Licensors | Read-Across Qualified | Low SAPS Compatibility |
The table confirms that formal OEM approvals cluster around hydrocracked Group II+ re-refined base oils not solvent processed Group I equivalents. The critical enablers are Noack volatility below 10 percent CCS viscosity at -35°C and sulfur content under 300 ppm. Buyers specifying re-refined base stocks for OEM-approved formulations should request the base oil supplier's approval letter and BOI/VGRA documentation rather than relying on blender self-certification.
The EU Waste Framework Directive establishes the waste hierarchy placing re-refining above energy recovery. Waste oil is classified under European Waste Code 13 02 05 (mineral-based non-chlorinated engine gear and lubricating oils). The Basel Convention codes B3020 and Y8 apply to transboundary movements. Under the new Waste Shipment Regulation (EU) 2024/1157 effective May 2024 exports of waste oil for re-refining to non-OECD countries are prohibited. Intra-EU shipments require pre-consented recovery facility status and Article 18 notification. The GEIR (Groupement Européen de l'Industrie de la Régénération) reports that 1.1 million tonnes per year of re-refining capacity is targeted by 2025, according to the Lube Report (Lubes'n'Greases) 2025 target published in 2016. REACH registration covers the re-refined base oil substance itself requiring a Lead Registrant for each grade.
US EPA 40 CFR Part 279 distinguishes on-specification used oil from off-specification used oil based on four allowable levels: arsenic 5 ppm cadmium 2 ppm chromium 10 ppm lead 100 ppm and flash point 100°F minimum. On-spec used oil can be burned for energy recovery in industrial boilers without a RCRA permit while off-spec requires a Part 264/265 permitted burner. Re-refiners processing used oil are exempt from RCRA Subtitle C if they meet the re-refining exclusion criteria including processing to produce base oil or lubricant. The EPA's "Rebuttable Presumption" at 279.10(b) means used oil containing more than 1000 ppm total halogens is presumed hazardous unless the generator proves otherwise. State programs in California Texas and Ohio impose additional permitting and reporting layers for collection centers and processors.
China's GB 17144-2020 standard governs the import of waste lubricating oil requiring an automatic import license issued by MOFCOM and environmental registration with the Ministry of Ecology and Environment (MEE). Only MEE-approved re-refineries listed in the "National Directory of Qualified Waste Oil Re-refining Enterprises" may receive imported feedstock. The directory lists qualified facilities with combined re-refining capacity. Imported waste oil must meet the "List of Importable Solid Wastes" criteria and pass inspection by China Customs (GACC) at designated ports. The HS code 2710 99 00 applies to waste oil while re-refined base oil exports from China use HS 2710 19 91 subject to 13 percent VAT and export license controls under the dual-use items regulation.
India's Extended Producer Responsibility (EPR) for waste oil under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016 amended 2023 mandates producers and importers of base oil and lubricants to register on the CPCB centralized portal. Collection targets are set as a percentage of sales volume and increase over a five-year period. Re-refiners must obtain Consent to Establish and Consent to Operate from State Pollution Control Boards and register as recyclers on the CPCB portal to generate EPR certificates. GST on re-refined base oil is 18 percent under HSN 2710. Import of waste oil is prohibited under the Basel Convention ban amendment ratified by India. Domestic collection is channeled through authorized collection agents and aggregation centers.
UAE Federal Law 24 of 1999 regulates hazardous waste management requiring a permit from the competent authority in each Emirate for waste oil collection transport and treatment. The GCC Standardization Organization (GSO) specifications GSO 1715 and GSO 1716 align with API Group I and Group II base oil standards for re-refined products. Abu Dhabi's Tadweer and Dubai Municipality enforce local collection targets. For major project supply such as Neom or Aramco procurement re-refined base oils must pass vendor qualification including ISO 9001 ISO 14001 and product testing per SASO 2688. The UAE aims to divert 75 percent of waste from landfill by 2030 creating structured offtake agreements for re-refiners.
Saudi Arabia's Vision 2030 targets 60 percent waste diversion from landfill by 2035 with specific recycling targets for industrial waste. The Saudi Standards Metrology and Quality Organization (SASO) requires a Certificate of Conformity (CoC) for imported re-refined base oils tested against SASO 2688 (equivalent to API Group I/II). The Local Content and Government Procurement Authority (LCGPA) assigns local content scores favoring domestically re-refined base oils in Aramco and SABIC tenders. The National Industrial Development and Logistics Program (NIDLP) supports re-refining plant investment through the Saudi Industrial Development Fund (SIDF). Waste oil generators must contract with licensed collectors registered with the National Center for Waste Management (MWAN).
| Jurisdiction | Key Regulation | Collection Target / Mandate | Import Status Waste Oil | Re-refined Base Oil Standard | Critical Permit / Portal |
|---|---|---|---|---|---|
| EU | WFD 2008/98/EC WSR 2024/1157 | Capacity driven | Allowed OECD only | REACH registered API/ACEA | Pre-consented facility Art 18 |
| US | 40 CFR 279 | State level varies | Allowed with EPA ID | API BOI/VGRA | RCRA Subtitle C exemption |
| China | GB 17144-2020 MEE Directory | Capacity driven | License + Approved Facility | GB 17144 / API | Auto Import License MEE Reg |
| India | HWM Rules 2016 EPR 2023 | Percentage of sales over 5 years | Prohibited | IS 13656 / API | CPCB EPR Portal Recycler Reg |
| UAE | Fed Law 24/1999 GSO Specs | 75% diversion 2030 | Permit per Emirate | GSO 1715/1716 SASO 2688 | Tadweer/Dubai Muni Permit |
| Saudi Arabia | Vision 2030 SASO 2688 | 60% diversion 2035 | SASO CoC Required | SASO 2688 API | MWAN Collector Reg LCGPA Score |
The regulatory matrix shows a clear divergence between regions that treat waste oil as a tradable commodity (EU US China) and those that restrict imports to force domestic collection (India Saudi Arabia). The EU and China maintain approved facility lists that act as market entry barriers while the US relies on the on-spec/off-spec self-certification model. For cross-border trade the critical documents are the Basel notification for EU shipments the MOFCOM license for China the CPCB EPR certificate for India and the SASO CoC for GCC markets. Procurement contracts should specify the regulatory regime governing the delivery point and allocate responsibility for notification costs.
The EU Waste Framework Directive classifies used oil into four categories based on origin and contamination level. Category 1 covers clear lubricating oils from industrial hydraulics and turbines. Category 2 includes dark engine oils from automotive and diesel sources. Category 3 comprises emulsified cutting fluids and soluble oils requiring breaking before re-refining. Category 4 captures heavily contaminated oils with halogen content above 1000 ppm or PCB presence. The US EPA uses a binary on-spec/off-spec model under 40 CFR 279. On-spec oil meets flash point above 100°F, halogen under 1000 ppm, and PCB under 2 ppm thresholds allowing unrestricted burning or re-refining. Off-spec material triggers full hazardous waste manifesting and restricted handling. Europe collected 88 percent of generated used oil, or 1.7 million tons per year according to Lube Report (2016).
Re-refiner gate acceptance relies on rapid screening followed by confirmatory lab analysis. Halogen content measured by XRF or oxygen bomb ion chromatography must stay below 50 ppm for hydrotreating feedstock to prevent catalyst poisoning and corrosion. PCB screening uses immunoassay kits with GC-MS confirmation holding a strict 2 ppm limit aligned with Basel Convention and EU POP Regulation. Water and sediment determined by ASTM D1796 centrifuge method must remain under 1 percent to avoid emulsion upsets in the dehydration column. Total metals including lead, calcium, zinc, and magnesium quantified by ICP-OES are capped at 10 ppm combined to protect downstream catalyst life. A single tanker failing halogen spec can contaminate an entire 500-ton storage tank requiring costly off-spec disposal.
In tolling agreements the feedstock owner retains title to the used oil and pays a processing fee per ton for re-refining services. The toller assumes operational risk but not feedstock ownership risk. Buy-sell contracts transfer title at the collector gate with the re-refiner assuming full liability for specification compliance and regulatory reporting. Tolling suits large fleets and municipalities seeking guaranteed circular reporting for EPR compliance. Buy-sell dominates merchant markets where collectors aggregate mixed loads. Contracts must define the point of liability transfer for Basel notification obligations. Under EU law the notifier remains the waste holder until the recovery facility accepts the shipment. US Superfund liability follows the generator unless a qualified service provider contract meets EPA due diligence standards.
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Recycled base oil selection hinges on matching the correct grade (SN 150, SN 300, SN 500, or Bright Stock) to the target application while verifying that the re-refining technology (hydrotreating or hydrocracking) delivers the required Group II or Group II+ performance. Regulatory compliance is no longer optional; EU Waste Framework Directive adherence, Basel Convention prior informed consent for cross-border used oil movement, and emerging PFAS reporting obligations dictate which suppliers can legally serve which markets. Pricing dynamics remain anchored to the virgin base oil spread, typically a discount of 10 to 20 percent for Group II equivalent grades, but sustainability premiums are emerging for ISCC Plus certified volumes with verified carbon intensity below 0.5 kg CO2e per kg. Buyers who embed the 20-point checklist into procurement workflows, leverage platforms like Global Trade Plaza for supplier discovery, and demand transparent mass balance certificates will secure reliable supply and credible Scope 3 reductions. For deeper specification benchmarks on virgin equivalents, refer to the BS 150 base oil specifications guide.
Recycled base oil is lubricant base stock produced by re-refining used oil to remove contaminants and restore performance specifications. Most commercial grades fall into API Group I, while advanced hydrotreating yields Group II and hydrocracking reaches Group III+ quality.
Typical specifications for hydrotreated SN 150 include 4.0, 4.5 cSt at 100 °C, viscosity index 95, 105, sulfur below 300 ppm, flash point above 200 °C and Noack volatility 12, 15 percent. SN 500 runs 11.5, 12.5 cSt with VI 95, 100 and Noack 8, 10 percent.
SN 150 is a light re-refined grade with kinematic viscosity of 4.0, 4.5 cSt at 100 °C and viscosity index 95, 105. It serves as a drop-in replacement for virgin Group I SN 150 in industrial lubricants and some passenger car motor oil blends.
SN 500 is a heavier re-refined grade showing 11.5, 12.5 cSt at 100 °C, viscosity index 95, 100 and Noack volatility of 8, 10 percent. Its higher viscosity makes it suitable for heavy-duty engine oils, gear oils and industrial formulations requiring thicker films.
The EU Waste Framework Directive classifies waste oil under code 13 02 05 and prioritizes re-refining over energy recovery. Re-refiners must comply with the Industrial Emissions Directive and REACH registration for the finished base stock placed on the market.
China's GB 17144-2020 standard restricts waste oil imports to MEE-approved re-refineries only. Qualified facilities must meet strict environmental and product quality permits.
Prices in India track virgin Group I benchmarks at a discount of roughly 5, 15 percent depending on grade and hydrotreating quality. The 2023 EPR rules require producers to register on the CPCB portal and meet rising collection targets, influencing supply dynamics.
Global pricing follows virgin Group I and Group II benchmarks with a quality-based discount. Hydrotreated Group II grades command a premium over acid-clay Group I, while hydrocracked Group III+ prices approach virgin Group III levels.
The UAE hosts several re-refining plants in Jebel Ali and industrial zones producing hydrotreated Group I and II grades. Buyers should verify the process technology and request a Certificate of Analysis for API group, viscosity index and sulfur content.
Saudi Arabia operates large-scale hydrotreating re-refineries supplying Group I and II base oils to domestic blenders and export markets. Product quality aligns with GCC standardization organization (GSO) specifications for lubricant base stocks.
Major supply hubs include Rotterdam, the US Gulf Coast, Jebel Ali, Singapore and Mumbai where traders and re-refiners consolidate cargoes. Procurement teams verify feedstock origin, Basel Convention compliance and process technology before contracting.
Finished base oil is not classified as hazardous for transport under ADR/IMDG/IATA regulations. Used oil feedstock is regulated as hazardous waste (UN 3082) until re-refining is complete and the product meets on-spec criteria for halogen and metal limits.
The market segments by SN 150, SN 300, SN 500 and Bright Stock grades traded through five primary logistics hubs. Growth is driven by circular economy mandates in Europe, China's import restrictions and India's EPR collection targets for base oil producers.
Used oil undergoes dehydration, vacuum distillation to cut fractions and hydrotreating at 300, 380 °C under hydrogen pressure to remove sulfur and saturate molecules. Hydrocracking at higher severity cracks waxes to achieve Group III+ viscosity indices above 120.
Hydrocracked Group II+ re-refined base stocks hold formal OEM approvals such as Mercedes-Benz 229.51 and Volkswagen 504 00. Standard hydrotreated Group I/II grades meet API SN/SP and ACEA sequences when properly formulated by the blender.