Promoting the efficient and renewable use of resources, in combination with reducing waste and energy use: these circular economy principles lend themselves well to the achievement of energy transition targets. This is made clear, in Italy, by the experience of the National Consortium of Waste Oils (CONOU). Operating on the national territory for 40 years, the Consortium has been a pioneer in the adoption of Extended Producer Responsibility (EPR), and, in 2022, it regenerated 98% of the 181,000 tonnes of waste it collected, avoiding thousands of tonnes of carbon dioxide emissions.

This impact was made possible by its widespread reach throughout the country. And there’s more: in recent years, CONOU’s support to the more than 60 licensees distributed throughout the Italian peninsula has been able to adapt to different scenarios: from the COVID pandemic to the energy crisis linked to the Russia-Ukraine conflict, all the way to the decarbonisation of the road transportation phase.

The benefits of regeneration

According to the 2022 Sustainability Report, drafted with the support of Deloitte Italia and reviewed by Ernst & Young according to the Global Reporting Initiative (GRI) Standards, from the 181,000 tonnes of used oil it collected, CONOU obtained 118,000 tonnes of new lubricant bases and over 38,000 tonnes of other products such as bitumens and gas oils.

This regeneration process not only led to significant benefits for the environment – avoiding the emission of 64,000 tonnes of CO₂, saving 29% of water, reducing land use by 77%, and cutting risks to health linked to particulate emissions by 91% – but it also brought economic and social advantages.

These include approximately 130 million euros saved by avoiding crude oil imports and the employment of 1,216 people in the sector across the wider supply chain. These outcomes were made possible thanks to the work of an extended network of collectors who, multiple times in a year, picked up used oil from approximately 103,000 locations, including workshops and industrial sites throughout all of Italy, as well as the essential contribution of the two regeneration companies based within the country.

CONOU’s support of the sector, from energy crises to transportation

Faithful to its role as a system balancer, the Consortium was able to react quickly and effectively to the energy crisis in 2022, introducing measures to offset the peak in transport and gas costs for both collectors and regenerators, drawing on the resources from the environmental fees and never allowing circularity to slow down.

“Environmental fees, paid by businesses that put products on the market, are at the heart of consortium systems,” CONOU President Riccardo Piunti tells Renewable Matter. “In the last two years, we have fought the evasion of our environmental fees and reduced it to minimal levels, bringing home approximately 3 million euros of previously evaded contributions. Not paying fees, I dare say, is an environmental crime, it means hindering collection and regeneration.”

If collection is very important, regeneration is vital. Collecting used oil is just the first necessary step, the second is avoiding that it ends up incinerated or used improperly. The widespread reach of the supply chain is made clear by the micro-collection data. Of the 181,000 tonnes collected, approximately 50% comprises collections of small amounts of used oil from small users (mechanics, workshops).

This network’s widespread reach is also made possible by the fleet of 656 vehicles operated by the licensees, which travelled 23 million kilometres in 2022 alone. “In its current state, our vehicle fleet is powered by traditional fuels,” says Piunti. “In 2023, to address this issue, we launched an incentive scheme to promote vehicle upgrades toward EURO 6, meaning less consumption and fewer emissions. Furthermore, this year we launched a collaboration with UNEM (Italy’s Energy Union for Mobility). By signing a memorandum of understanding in December 2023, we committed to further intensify efforts towards sustainability in the transportation sector for used oil management. The agreement aims to promote the use of HVO, an innovative biofuel that, in its entire life cycle, can lead to a reduction of CO₂ emissions by up to 90%, in our EURO 6 vehicles.”

This article is also available in Italian / Questo articolo è disponibile anche in italiano

Images: CONOU