There are seven principal drivers that are necessary for a re-refining technology to be successful in meeting market, industry and environmental demands. Failure of any one of these may limit the success of the technology.

Environmentally Sound and Beneficial

A re-refining technology must not be harmful to the environment. It should not be a major source of pollution and it should not produce hazardous waste streams – otherwise it is part of the problem rather than the solution. In most countries around the world there are strict regulations controlling the type and amount of acceptable pollution. It would be highly undesirable and socially unacceptable for the re-refinery itself to be a significant source of pollution.

High Quality Products

High quality products are required in order to compete with the virgin base oil producers (those who produce base oil from crude oil) and to secure high margins. The production of lower quality products inevitably will result in discounted prices and reduce the commercial viability of the technology. High quality products meet with greater market acceptance and can be sold into deeper markets, since they satisfy the requirements of a wider range of applications than lower quality products.

Furthermore, driven by the demand for increased fuel economy, reduced emissions and increased drain intervals, the base oil market is moving toward the use of more Group II base oils and increasingly Group III base oils. Consequently, a re-refining technology must be positioned to economically produce API Group II and Group III base oils, thereby enabling it to compete and stay competitive in future markets.

Product Quality Consistency

The technology must also be able to consistently produce high quality products. The highest value buyers of base oil are the Blenders and Compounders (B&Cs) who use the oil to produce application-specific lubricating oils. These B&Cs formulate finished lubricants by combining base oil with chemical additives. The products (lubricating oils) are then run through a series of tests before they are deemed acceptable. If the quality of the base oil supplied changes and thereby fails to meet their specifications, they must reformulate the blend in order to compensate for the change. As a result, the B&Cs demand consistent quality or they will discount the price they pay for the base oil to compensate for the time and expense of having to reformulate their finished lubricants.

High Base Oil Yield

Base oil is the highest valued product of re-refining, almost double the market price of the next highest valued product, which is fuel oil. A high yield of base oil reflects the ability of the technology to recover the most valuable products from the used oil, and indirectly, indicates the efficiency of the process. Thus, the more base oil that can be recovered, the better the process. Therefore, a good technology must have a high yield of base oil.

Good Economics

Any project must be financially beneficial in order to justify and secure investment. Although re-refining has implicit conservation and environmental benefits, it also must be justifiable economically. There are several factors that influence the economics of the plant and determine commercial viability, including amount and quality of products manufactured, capital costs and operating costs. All of these factors combine to affect the company's bottom line in different ways and determine whether capital investment is justified.

Capable of Processing a Variety of Used Oils

The process must properly handle variations in feedstock quality. Changes in feedstock properties can influence product quality, consistency, as well as operating costs and yields. The properties of the used oil from any given collection point can vary significantly; however, the act of consolidation tends to even out the variations. Variations among types of used oil include gasoline and diesel engine oils, metalworking oils, gear oils, hydraulic oils, synthetic oils, and industrial oils.

Capable of Rendering Contaminants Benign

Used oil typically becomes contaminated with several potentially hazardous materials such as solvents, PNAs, glycols, chemicals, petroleum residuals etc. An effective re-refining process must be able to eliminate these contaminants from their products and render them environmentally and ecologically safe.