Whalesbook
Untapped Resource Potential
India has identified a significant untapped resource in used cooking oil (UCO), which could supply its energy and chemicals industries with a large volume. The scale is substantial, with an estimated 3.7 million tonnes of UCO potentially recoverable in 2024-25 from the 27.82 million tonnes of edible oil consumed annually.
Challenges in Collection
Despite the significant availability, only a fraction of this UCO is currently being captured. Fragmented aggregation systems present a clear obstacle. Much of India’s UCO is either discarded improperly or diverted back into the food chain, despite regulations capping total polar compounds at 25% to ensure safety. Even formal channels, like those for biodiesel production, show shallow and fragmented supply chains, with many plants lacking formal linkages to aggregators.
Diversifying Industrial Use
The report argues that limiting UCO's use to biodiesel, which currently accounts for only around 55,000 tonnes of demand annually, undersells its potential. The surfactants market, estimated at $2–3 billion, could require up to 2 million tonnes of UCO yearly if it transitioned to bio-based inputs. Furthermore, the push towards sustainable aviation fuel (SAF) presents another massive opportunity, with even a 1% blending target by 2027 potentially requiring 0.20 million tonnes of UCO annually.
The Path Forward
Treating used cooking oil as a "strategic circular-carbon resource" is a practical choice for India's sustainability goals. Integrating UCO into chemical production is feasible with existing industrial capabilities. However, achieving this requires addressing scale, consistency of supply, and traceability. Strengthening collection networks, incentivising aggregation, and ensuring traceability through policy and industry coordination are crucial steps to unlock both climate and commercial gains from this abundant waste stream.