Valvoline Debuts Groundbreaking Re-Refined Oil

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Earth911 Managing Editor Amanda Wills was invited on a press trip to the Ashland, Inc./Valvoline headquarters in Kentucky. This is her report.

Fran Lockwood, senior vice president of research and development, leads a group of journalists through the Valvoline laboratories on March 15, 2011.

LEXINGTON – On Tuesday morning at Ashland Inc.’s national headquarters in Kentucky, I sat at a conference table side by side fellow green writers, and face to face with Valvoline executives. It was the first time the company had invited environmental journalists to its facilities.

Two weeks earlier, the five of us had received invitations to the unveiling of a new, “eco-friendly” product by Valvoline. After more than five years of industry-wide talks and experiments on re-refined motor oil, the company officially became the first to successfully create a high-performance motor oil from recycled resources.

NextGen motor oil is re-refined from used oil base stocks, but it has a surprisingly high rate of recycled content – 50 percent to be exact. In the past, the problem with re-refined motor oil has been quality. The process used to involve acid-clay treatment, producing a usable, but sub-par oil.

Other companies – most notably Walmart – tried the concept years ago and failed. According to Blair Boggs, vice president of global marketing for Valvoline, the public wasn’t ready, and the technology just wasn’t there. Now, researchers have found a new way of re-refining used motor oil that produces a product of a quality that is comparable to an oil made from virgin resources.

But, it’s still oil

Even with the recycled content, a dark theme still hung thick in the air: It’s still oil, no matter how you slice it.

“We understand that we’re in the oil business, and I will humbly admit that there’s a lot to do,” said Boggs. “[NextGen] is not going to save the world, but it will make a dent [in this sector], and we’re proud of that.”

How much of dent in our oil consumption does motor oil actually make? In the U.S., we use 3 billion gallons of motor oil annually, and 800 million gallons of that comes from drilling. What’s more concerning is that the U.S. EPA estimates that 200 million gallons of this oil may be disposed of improperly each year, a concerning statistic considering that the amount of oil from just one oil change can contaminate 1 million gallons of fresh water.

Once motor oil is used, only 11 percent goes back to base stocks for re-refining. The other 89 percent is burned as fuel, a reuse process that Boggs noted is good, but not the best.

“The interesting thing about motor oil, is that it can be resused, recycled and used again and again,” he said. “It’s the idea of closing the loop [...] reducing the need for drilling and our dependence on oil.”

How is reducing dependence on oil good for Valvoline’s bottom line? The company doesn’t drill. Without a commitment to a specific refinery, Valvoline is prime for a product like this.

“There are a lot of advantages of not being part of a big oil company, said Boggs. “We wear that chip on our shoulder proudly. How do we stay competitive? We don’t have a lot of bureaucracy, so when we decide to do something, we get on it and move fast.

It’s unclear if the major oil companies will be quick to adopt the concept, and with a nominal percentage of used oil going to re-refineries, the resources are limited as of now. While he was mum on the specifics of Ashland’s partnerships with those re-refineries, Boggs assured that Valvoline has plenty to make NextGen. “Otherwise, we wouldn’t have launched the product,” he said.

According to Valvoline President Sam Mitchell, the supply of the re-refined base stock will, naturally, increase with the success of the product, which will be targeted to the do-it-yourself oil changers. While they make up only 15 percent of the motor oil market, Boggs said DIYers adopt products quicker. Getting the product into auto shops is slow and involves lots of red-tape gymnastics.

Will it be successful?

Essentially, Valvoline is putting all its eggs (and money) into a basket of optimism. It genuinely believes that if quality and price point are the same, consumers will choose the more eco-friendly option. Furthermore, Valvoline says its priority is all about “closing the loop.” But doing so would require those same DIY oil changers to diligently collect their used motor oil and bring it back for recycling.

On the consumer end, the recycling process for the NextGen motor oil will be the same. DIYers can bring back the used oil to an auto shop for recycling. However, the plastic bottle containing the oil cannot be recycled in a curbside program. There are take-back programs for oil-soaked plastics, but Valvoline itself does not have one – a factor that Boggs and the team acknowledged was essential to a true closed-loop theme.

In November, NextGen performed well in a test market of its Valvoline Instant Oil Change stores, 20 in Columbus, Ohio, 10 in the Boston area. Customers responded warmly to the idea of re-refined oil, so long as it didn’t hinder performance under the hood. According to Boggs, the overall consensus was simply, “Why not?”

“Motor oil isn’t the most exciting thing in the world, but we’re hoping that you can show people that you can make a difference,” said Mitchell. “We’ve seen a sharp increase in people wanting to go green. We thought DIYers wouldn’t be interested, but it’s not true at all.”

Valvoline NextGen is already on a few store shelves and will be available in 75 percent of stores by May.

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