Malaysia-based Pentas Flora launched its re-refined Group II N150 base oil grade today, in line with a shift in industry trends towards premium-grade base oils.
The re-refiner started producing Group I SN 150 in 2022 but has converted production to Group II base oils with high-viscosity index from mid-August. The re-refiner also has the capability to produce Group III base oils depending on market demand.
Its re-refining facility at Banting, Selangor has a capacity of up to 36,000 t/yr. Pentas Flora collects up to 50,000 t/yr of used motor oils from nine collection points, targeting to expand this to 28 collection points by 2026.
Most Asian re-refined base oils (RRBO) produced are Group I grades. The transition from Group I to Group II and III RRBO has been dictated by what has been happening in the lubricant industry, which is moving towards using higher performing base oils, said Pentas Flora technical director H Ernest Henderson.
"The industry wants to bring in oils that have better fuel economy, extended drain capabilities, reduce emissions and enhance fuel ability," Henderson said. "So over the years we have seen a shift from older performing standards to new performance standards. These are now demanding the use of higher VI and higher quality base oils."
"And because re-refining basically takes engine motor oil and recaptures and re-establishes the original base oil within those formulation. The fact that we are now using higher performance motor oil using Group II and III… that in turn becomes feedstock which allows us to capture and produce higher quality base oil," he added.
The shift driven by feedstock change is complemented by technology. Pentas Flora's re-refining processes involve distillation to separate the base oil components from the used motor oils, then purification using solvent extraction and lube polishing processes.
Pentas Flora started with Group I RRBO initially because of sulphur content exceeding the Group II and III specifications. But with a lube polishing system installed in August it has been able to increase saturates and reduce sulphur content to meet Group II and III classifications.
Lower carbon footprint
RRBO has been gaining traction in recent years with governments around the world pushing for sustainability and a more circular economy. More companies are also placing more emphasis on environmental, social and governance objectives. So blenders are increasingly looking to include RRBO in finished lubricants.
RRBO takes less energy to produce than virgin base oils, reduces carbon dioxide emissions and is therefore more environmentally friendly and sustainable, said Henderson.
Pentas Flora is one of the few re-refiners in Malaysia, with China and India bigger markets for RRBO. India in April this year implemented the Extended Producer Responsibility for Used Oil regulation where producers of base oils and lubrication oils and importers of used oil have a recycling target of 5pc in 2024-25. This target will progressively increase to 50pc from 2030-31 onwards.
