Study Details

Transitioning the Chemical Industry: Used Cooking Oil as a Renewable Feedstock for Enabling India’s Material Transition

India’s transition towards a Net Zero economy requires simultaneous progress in both energy and materials, with the shift towards renewable and low-carbon feedstocks emerging as an important pathway for industrial decarbonisation. The report, “Transitioning the Chemical Industry: Used Cooking Oil as a Renewable Feedstock for Enabling India’s Material Transition,” examines Used Cooking Oil (UCO) as a renewable, waste-derived and circular feedstock that can help reduce dependence on fossil-based carbon in the chemical industry. It positions UCO as a near-term opportunity for material transition, with applications extending beyond its current dominant use in biodiesel to chemical and material value chains.

The study highlights that India has significant UCO availability, but the primary challenge is not theoretical availability; rather, it is the ability to effectively collect, aggregate, segregate, trace and allocate UCO for productive applications. Based on FSSAI’s RUCO initiative, India’s cooking oil consumption is estimated at 24.67 million metric tonnes, with potential UCO availability of approximately 2.22 million metric tonnes, equivalent to around 9% of total consumption. However, fragmented aggregation networks and limited formal linkages across end-use sectors constrain mobilisation. The report also highlights the public-health risks associated with improper reuse, noting that approximately 60% of generated UCO is estimated to re-enter the food system illicitly.

The report identifies opportunities for UCO in chemical applications, particularly in surfactant pathways such as Alcohol Ethoxylates (AE), Alcohol Ethoxylate Sulphates/SLES and Linear Alkyl Benzene Sulphonate (LAS). Based on 2023–24 volumes, these surfactant classes could require approximately 2.0 million tonnes of UCO annually under a 100% substitution scenario. The analysis indicates that UCO substitution can contribute to fossil-carbon avoidance and lifecycle greenhouse-gas reductions, although outcomes remain sensitive to process conditions, hydrogen demand and residual fossil inputs.

The way forward focuses on strengthening UCO generation assessments, expanding collection infrastructure, improving quality grading and traceability, formalising collection channels, and developing appropriate policy and regulatory mechanisms. The report also highlights the importance of transparent allocation across competing biodiesel, SAF and chemical applications, alongside advanced conversion technologies and targeted incentives. Overall, UCO is presented as a strategic circular-carbon resource that can support India’s material transition while contributing to resource security, industrial competitiveness, public health and climate objectives.

Key Takeaways