Testing the Pathway to Circular Packaging
Used lubricant containers present a distinct challenge in the recycling value chain. Excluded from curbside programs due to residual oil, these containers do not have a clear recycling pathway at scale. These containers are, however, continuously generated across the market, representing a recoverable source of HDPE material. The NLCRC, through a working group of members, set out to test whether bottle-to-bottle recycling of these containers was technically feasible.
Canada's provincial used oil stewardship programs have been operating successfully for over 20 years, built on well-established collection infrastructure involving retailers, quick-lube centers, and automotive service locations. Because collection is specific to used oil packaging, the material stream is consistent and well-characterized, a critical starting point for any meaningful recycling pathway. In the United States, work to develop a similar approach is underway. As extended producer responsibility (EPR) programs advance across states, the Lubricant Packaging Management Association (LPMA) is establishing dedicated collection and processing programs for lubricant packaging. That foundation creates a unique opportunity to explore higher-value end markets for recovered material. Bottle-to-bottle recycling is one of the most promising options, supporting PCR content commitments, advancing responsible end markets for collected packaging, and benefiting from the more favorable cost structure that EPR frameworks bring to collection and processing.
The Pilot: Demonstrating Technical Feasibility
The working group — RPM eco, Plastipak, and Valvoline Global — piloted whether used oil HDPE rigid containers collected in Canada by RPM eco could be processed into usable post-consumer recycled (PCR) resin and incorporated into new lubricant packaging. RPM eco, a Montreal-based recycler specializing in used oil container processing, removed oil residuals from collected containers to produce PCR resin that met the quality requirements for this pilot application. That material was then supplied to Plastipak’s manufacturing facility, where it was combined with virgin materials for production. In an 8-hour production run conducted under controlled conditions, the group produced Valvoline gear oil quart bottles with 25% PCR content derived from used oil containers, a first demonstration that bottle-to-bottle use of this material stream is technically feasible at the production level.
While this pilot does not address all the obstacles to a used oil circular container system, it demonstrates that the technical pathway exists. Advancing these types of solutions will require continued work, and no single organization can do it alone. Collection, processing, manufacturing, and brand owner participation are needed to transition from a pilot to a scalable outcome.
Key learnings from this early-stage work include:
Processing consistency and contamination management must be better understood across different collection sources and volumes.
Supply chain coordination across collection, processing, and manufacturing does not happen automatically and must be deliberately structured.
Volume, quality, and economics all require continued development before broader adoption becomes viable.
Looking Ahead
EPR programs are advancing, dedicated collection infrastructure is being built, and this pilot has demonstrated that the technical pathway exists. As these conditions develop in the United States, the learnings from this work become increasingly relevant. The NLCRC and its members are committed to building on them and moving this work forward, recognizing that continued collaboration, innovation, and system alignment across the value chain will be essential.
The National Lubricant Container Recycling Coalition or “NLCRC” is an industry-led coalition funded by a committed consortium of value chain stakeholders focused on establishing solutions for recovery and recycling of packaging for petroleum-based and related products utilized in transportation and industrial applications Industry. For more information, visit https://www.nationallcrc.com.