Used Oil Refining, Recycling and Pre-processing Unit
If you are starting a used oil refinery, recycling plant or pre-processing unit, you need to obtain various licences and permissions from the applicable authorities. Get assistance from corpseed for the setup process and compliance management.
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An Overview of Used Oil Refining, Recycling and Pre-processing Unit In India
Base oil is the main raw material used to make several types of lubricating oils, such as gear oil, hydraulic oil, and engine oil. It is a petroleum product obtained by fractional distillation of crude oil. When these lubricants are used for extended periods of time, they are polluted with dirt, discoloured additives, unburned gasoline, combustion by-products, and worn metal particles from engine cylinders. In specialist recycling facilities, this spent oil referred to as waste oil goes through a process of repurification. All contaminants are carefully eliminated during re-refining, which yields the extraction of new base oil. The lubricant production process can be made more resource-efficient and sustainable by reintroducing this refined base oil into the cycle of production once the required additives have been added.
MoEFCC has introduced EPR for Used Oil last year which will be applicable from next financial year. This will make it an imperative for producers to recycle their used oil to complete the EPR targets hence establishing a Used Oil Recycling Plant is a financially viable business to incorporate in 2024.
Role of Used Oil Recycling Plant
Base oil refers to the oil used in creating finished lubrication oils such as engine or gear oil. Used oil, derived from sources like engine or hydraulic oil, can undergo recycling. Recycling, in this context, involves the environmentally responsible re-refining of used oil to produce fresh base oil or lubrication oil, adhering to guidelines outlined by the Central Pollution Control Board. Re-refining is the specific process of eliminating undesirable impurities from used oil, ultimately generating base oil or lubrication oil. The term ‘used oil’ encompasses various oils from different sources, suitable for reprocessing if they meet specified standards but excludes waste oil from this category.
If used oil is not disposed of in an environmentally sound manner, it can have a very harmful impact on the environment it gets exposed to. Hence the recycling, re-refining and disposal of used oil or waste oil is necessary. Used Oil Recycling Plant helps in achieving this objective by providing all in one solution for used oil and waste oil processing.
Benefits of Used Oil Recycling Plant
Waste Oil Recycling Plant and Used Oil Refinery Unit provides various benefits to the environment and legal landscape covering hazardous waste management. Some of the major benefits are as follows-
- Reduces Environment Pollution
By recycling, re-refining and reusing the used oil, the Used Oil Recycling Plants prevent this harmful substance from being exposed to the environment. This way the environmental pollution is reduced and nature is protected from harmful effects of exposed used oil.
- Saves Water Resources
If used oil is utilised in environmentally safe and sound manner, it prevents the residues and sludges from mixing up with the nearby water resources further polluting these water bodies and harming the aquatic life inside.
- Production for Local Use and Export
Used Oil Recycling plant provides the end products that are crucial and can be utilised either domestically or be exported to other countries. These local fractions help in most efficient Oil usage and support sustainable development.
- Creation of Employment
The Used Oil Recycling Plant will help in employment generation as the workforce will be required to operate the re-refining unit. It will also open doors for academic and environmental research.

Technical Processes involved in a Used Oil Refinery Unit
The Used Oil Recycling Plant requires the following component to process and produce end products from used and waste oil-
- Dehydration Process
- Distillation Process and
- Bleaching Process
Area of Reception: This is the first location where spent oil is gathered from different sources. Locations where used oil is produced can include auto repair shops, manufacturing plants, and other establishments.
Tanks for Storage: Tanks are usually used to store used oil before it is processed further. These tanks need to be built with contamination and leak prevention in mind. The processing capacity of the facility and the frequency of oil collection determine the storage tanks' capacity.
Pre-treatment Tools: Pre-treatment of the old oil may be necessary before the actual recycling process starts. Water, sediments, and other pollutants may need to be removed in order to do this. Filtration systems, gravity separators, and settling tanks are examples of pre-treatment equipment.
Unit of Distillation: One common technique for repurifying used oil is distillation. The used oil is heated during this process in order to separate its constituent parts according to their respective boiling points. It is possible to gather and use the distilled fractions as base oil.
Unit for Hydrotreating: Hydrotreating is a technique used by some used oil recycling companies to further refine the base oil. Hydrotreating is the process of eliminating contaminants like sulphur and nitrogen by using hydrogen and a catalyst.
Unit for Extracting Solvents: Another technique used in some recycling facilities to isolate contaminants from used oil is solvent extraction. In order to dissolve and remove pollutants selectively, solvents are used in this process.
Unit of Reclamation: Lubricant additives and other additives found in spent oil are sorted in this unit and disposed of or reused appropriately.
Following Therapy and Filtration: To make sure it satisfies quality standards, the oil may go through extra treatment and filtering after the primary recycling procedure. This guarantees that the recycled oil satisfies industrial standards and helps eliminate any residual contaminants.
Documents Required for Used Oil Refinery Setup
You need to get the following documents to set up a Used Oil Refinery-
- Business Registration
- Proof of Possession
- GST Registration
- Process Flow Diagram
- EIA Report
- Environmental Clearance
- Labour Code Compliance
- CGWA Clearance
- Consent to Establishment
- Consent to Operate
- Fire NOC
- Factory Licence
- Trade Licence
- EPR Registration and Compliance
- BIS Standard Certification and Test Reports
- PESO Licence
- HWM Authorisation
Procedure for Obtaining Necessary Permissions and Licences for Used Oil Refinery Setup
You need to obtain various permissions from the regulatory authorities and concerned departments for setting up a used oil recycling plant. You can obtain these licences with the assistance of Corpseed and establish the plant.
Step 1: Contact Corpseed
The first step in setting up your used oil refinery is to connect with corpseed. Here our experts will help you to understand the compliance and other requirements for setting up a waste oil recycling plant.
Step 2: Dedicated Professional
At corpseed, you will be connected with a dedicated professional having experience and expertise in waste management technology and compliance. You will get the necessary guidance from our professional.
Step 3: Submitting Necessary Details
Then you need to submit the necessary details according to your requirements. And our professional will file the required applications on your behalf in a seamless manner.
Step 4: Application process
The application then will be processed further which you can track on our website. You will be informed as soon as the process incompleted and your licence is ready.
Step 5: Issuance of Concerned Permissions
Once the licence is issued from the concerned authority, the same is forwarded to you in online and offline mode without further delay. Based on the licence you can continue the establishment procedure or operations of your business.
Why choose Corpseed: Your Ultimate Guide to Used Oil Refining, Recycling and Pre-processing Unit?
At Corpseed, we place a strong emphasis on getting the necessary permits for operating your business in a legally sound manner to avoid further interventions by the regulatory authorities. We understand its great importance and the significant effects it may have on Indian enterprises. Our seasoned specialists can provide our clients with thorough counsel and unwavering support because they have considerable knowledge and expertise in obtaining Certifications from various authorities.
Connect With Corpseed
Connect with the Corpseed team to discuss your requirements at IVR: 7558640644 or hello@corpseed.com. It takes 20–25 minutes to discuss the requirement.
Dedicated Manager
Once you discuss the requirement, we will align a dedicated Account Manager to understand your business needs and assist throughout the process.
Real Time Update
Track the progress of your application and always know what’s in progress and what’s done.
Job Completed
Once the job is completed, you will receive registrations & certifications directly to your email ID and at your doorstep.
Frequently Asked Questions
Quick answers to common questions about this service.
What is base oil, and how is it obtained?
Base oil is a raw material derived from crude oil through fractional distillation, used in lubricating oils like engine and gear oil.
What is waste oil, and why is recycling necessary?
Waste oil, polluted with contaminants, undergoes recycling to eliminate impurities, creating fresh base oil through re-refining.
What is the role of a Used Oil Recycling Plant?
It processes waste oil, removes contaminants through re-refining, and produces recycled base oil for reuse in lubricant production.
How does the recycling benefit the environment?
Recycling prevents environmental pollution by reducing exposure to harmful substances and protecting nature from the impact of used oil.
What are the benefits of a Used Oil Recycling Plant?
It reduces pollution, conserves water resources, supports local and export production, and generates employment opportunities.
What technical processes are involved in a recycling unit?
Dehydration, distillation, bleaching, hydrotreating, solvent extraction, and reclamation are key processes in a Used Oil Recycling Plant.
How is used oil repurified through distillation?
Distillation involves heating used oil to separate components based on boiling points, yielding distilled fractions usable as base oil.
What documents are required for setting up a Used Oil Refinery?
Business registration, possession proof, GST registration, environmental clearances, and various licenses are necessary documents.
Why is pre-treatment essential in the recycling process?
Pre-treatment removes water, sediments, and pollutants from used oil before recycling, ensuring a more effective and contaminant-free process.
How does hydrotreating enhance the base oil?
Hydrotreating uses hydrogen and a catalyst to eliminate contaminants like sulfur and nitrogen, further refining the base oil.
What is the significance of the unit for extracting solvents?
Solvent extraction is used to selectively dissolve and remove contaminants from used oil, contributing to the recycling process.
What happens in the unit of reclamation during recycling?
The unit sorts lubricant additives and other components in spent oil, either disposing of or reusing them appropriately.
What additional treatment does the recycled oil undergo?
Following therapy and filtration ensures the recycled oil meets quality standards, eliminating any remaining contaminants.
How can one obtain the necessary permissions for a Used Oil Refinery setup?
Connect with Corpseed, submit the necessary details, and their professionals will guide you through the compliance requirements and licensing process.
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