Once considered waste — often discarded carelessly or reused multiple times for frying — used cooking oil has found a new purpose and value in India’s sustainability movement. What was once a health hazard is now being transformed into a key ingredient for biofuel production, creating not only an additional source of income but also promoting environmental protection and public health.
FSSAI’s RUCOL Initiative: A Turning Point
To streamline the collection and reuse of used cooking oil (UCO) nationwide, the Food Safety and Standards Authority of India (FSSAI) launched the Repurpose Used Cooking Oil (RUCO) programme. The initiative has gained significant traction across the country, with startups and biodiesel manufacturers at the forefront of this green revolution.
Rising Demand and Economic Potential
With growing awareness and market demand, UCO is now being traded as a valuable commodity. In cities like Chennai, several startups have entered into long-term agreements with restaurants, hotels, catering services, hospitals, and educational institutions to collect used oil, paying between ₹25 and ₹50 per litre. Through Resident Welfare Associations (RWAs), they also collect large quantities from households.
Startups such as Uranus Oil have expanded their operations across 20 states, including Tamil Nadu, Andhra Pradesh, and Telangana, collecting over 20 tonnes of oil per day. Companies like KB Energy Corporation collect around 20 tonnes monthly, while Envogreen handles thousands of litres each month.
A small restaurant owner in Chennai shared, “We use about 30 litres of oil every day. Earlier, we used to discard it, but now we sell it for ₹45 per litre. It provides us with extra income every month.”
Health and Environmental Benefits
Repeatedly heating the same cooking oil produces toxic compounds harmful to health. Selling used oil to authorised collectors discourages this unsafe practice. The collected oil is supplied to 64 biodiesel manufacturing units across India, where it undergoes chemical processing to become eco-friendly biodiesel.
A litre of biodiesel derived from UCO can power a bus for 3–5 kilometres, and it can also be used in cars, trucks, and aircraft. Moreover, biodiesel costs about ₹7–8 less per litre than conventional diesel, offering a cleaner and more affordable alternative.
The Road Ahead: India’s Growing Biofuel Market
Globally, the used cooking oil market is projected to reach USD 70.6 billion by 2031, and India is set to play a major role in this growth. The country consumes around 27 billion litres of cooking oil annually, out of which approximately 1.4 billion litres of UCO are collected. Nearly 1.1 billion litres are already being used for biodiesel production. The sector is expected to grow at a compound annual rate of 7.5% over the next decade.
A Sustainable Future
The days of discarding used cooking oil are over. Today, it represents a source of income, health protection, and environmental sustainability. In the form of biodiesel, it not only fuels vehicles but also powers India’s vision of a cleaner, greener future — proving that even kitchen waste can drive the next big energy revolution.
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