A HOLISTIC APPROACH TO GREEN TRANSFORMATION:
TAYRAŞ’S BOLD VISION FOR TURKISH INDUSTRY
TAYRAŞ Base Oil Refinery stands at the forefront of Türkiye’s circular economy and green transformation efforts, placing sustainable production at the heart of its environmental, industrial, and economic strategies. By converting end-of-life lubricants into high-quality base oils through advanced recycling technologies, TAYRAŞ not only delivers significant environmental gains but also directly contributes to the national economy, reducing the current account deficit and the industry’s value-added production capacity. The company’s environmental and economic impact extends well beyond the boundaries of the lubricants sector and is recognized globally as exemplary practices.
In this exclusive interview, Dr. Erol Metin, Advisor to the Board of Directors of TAYRAŞ, shares insights into the company’s sustainability vision, its role in advancing Türkiye’s green transformation agenda, and the evolving future of the sector. Dr. Metin underscores the importance of a holistic approach that integrates all sub-processes and collaborative responsibility among stakeholders in the shift toward a circular economy. He also proudly announces a major new investment initiative set to launch early 2026: the transformation of TAYRAŞ’s Bilecik facility into Türkiye’s first Green Transformation Technopark. This will be both a strategic leap for TAYRAŞ but also a defining moment in the lubricants sector’s journey toward a more sustainable future.
What impressions did TAYRAŞ take away from the 15th Türktay Workshop?
As TAYRAŞ Base Oil Refinery, we were once again honored to participate as the main solution partner at the 15th Türktay Workshop, held in Ankara on October 15–16 under the theme of “Waste Strategies in the Climate Economy.” We place great value on this long-standing and widely representative platform. At TAYRAŞ, we view sustainability as a holistic subject that demands active collaboration among public institutions, the private sector, academia, and civil society. TAYRAŞ represents one of the best examples of green transformation in the lubricants sector, not only in Türkiye, but globally. At the Türktay platform, we had the opportunity to convey the meaning and impact of our work since our founding, while also emphasizing the importance of our country adopting a holistic approach to sustainability. We are proud that TAYRAŞ is now recognized by stakeholders and experts alike as a benchmark organization and a model of best practice in sustainability.
Could you tell us about the tangible contributions TAYRAŞ has made to the Turkish economy in the field of sustainability?
Sustainability, circular economy, and green transformation have become global imperatives, particularly for the manufacturing sector. These concepts are widely recognized as strategic responses to critical challenges such as climate change and global warming. With the implementation of the European Green Deal, sustainability has evolved into a global economic agenda, shaping a new growth model. We have now transitioned to this new growth model that holistically addresses key challenges such as carbon emissions, a strong shift toward renewable energy, and waste management, while regulating production and international trade accordingly. TAYRAŞ stands as one of the most advanced and exemplary reflections of this transformation in Türkiye. Since our founding, we have aligned all our operations with this vision, and we are proud to operate the largest and most technologically advanced base oil refining facility not only in Türkiye but across Europe.
Circularity and green transformation are especially vital for Türkiye – not only from an environmental standpoint but also from an economic one. Despite being a major production hub, Türkiye remains heavily dependent on imports for many of the raw materials essential to its industrial base. We are a country that relies on imports and runs a current account deficit for many products that constitute the fundamental inputs of our energy and industrial sectors. In this context, advancing circularity offers a powerful opportunity. If we can fully implement a seamless circular chain, we can unlock significant potential for qualified manufacturing. The core principle of the circular economy is to collect, separate, and repurpose waste as a production input – transforming it into a new value-added product – instead of releasing it into nature and causing environmental pollution, or allowing it to be used in unregulated, informal production beyond our control. Thus, waste that would otherwise remain outside the formal economy, bought and sold informally and squandered instead of being utilized as a higher-value product, is brought into a regulated system, retained within industrial processes, and generates VAT and Special Consumption Tax, thereby creating a truly robust economic chain.
Therefore, TAYRAŞ’s operations contribute directly to national income and the reduction of the current account deficit, generate tax revenue through the transition to a formal economy, create opportunities for industrial value-added by producing raw material resources, and significantly enhance the quality of industrial production standards. Over a 3.5-year period, we generated $6.2 million in additional VAT through the registration of waste, $14.4 million in VAT from newly produced products, $9.6 million in Special Consumption Tax (SCT) from those products, and $77.7 million through import substitution that reduces the current account deficit. TAYRAŞ has delivered approximately $107 million in direct economic value to the national economy within just 3.5 years of operation – more than doubling its initial investment cost of $50 million.
TAYRAŞ operates a robust logIstIcs network that spans across Türkiye, utIlIzIng 75 collectIon and transfer vehIcles, 36 raIlway wagons, 10 transfer poInts, and 4 raIlway connectIons. Each year, the company carrIes out 27,500 collectIon operatIons and covers 2.5 mIllIon kIlometers In transportatIon.
What are the benefits TAYRAŞ has achieved in the environmental and social dimensions of sustainability?
The base oil produced by TAYRAŞ using advanced recycling technology provides a 70% reduction in carbon emissions compared to base oil derived from crude oil. Similarly, it results in 86–87% less natural resource consumption, 90% less acidification, 88% fewer fine particles, 77–80% less eutrophication, and 64–71% lower global warming impact. Altogether, this translates into an annual emission reduction of approximately 100,000 tons. From an environmental perspective, TAYRAŞ contributes to Türkiye’s goals of decarbonization, emission reduction, and natural resource preservation. We not only protect the environment and prevent the depletion of primary raw materials but also create added value by converting end-of-life oils into production inputs instead of importing them.
From a social perspective, the advanced technological investments implemented by TAYRAŞ bring high standards and quality improvements to the Turkish industry and the lubricants sector, provide qualified employment, and raise social and sectoral awareness in the green transformation process. Therefore, the high-technology investment and high-quality production implemented by TAYRAŞ with a green transformation perspective play a crucial role in providing economic, environmental, and social development and growth opportunities, and in leading the transformation dynamics needed by the lubricants sector to compete globally.
It is no longer possible to address this issue solely from a “waste management” perspective. The recycling of end-of-life oils has become a holistic process that simultaneously involves environmental, industrial, economic, and trade policies. Therefore, the coordinated work of various public institutions is crucial for the efficiency of the process. While environmental protection and resource efficiency are targeted, it also aligns strongly with industrial and technology policies. This structure, which reduces the need for imported raw materials and creates added value within the country, also presents a strategic opportunity for the economy, trade, and exports. When all links in this chain act in harmony, Türkiye can achieve a powerful transformation model that will give it an advantage in global competition, both environmentally and economically.
How do you assess the benefits of a holistic approach to sustainability for the lubricants sector?
TAYRAŞ approaches the lubricants sector not only from a waste management standpoint, but through a comprehensive lens that integrates industrial, environmental, and economic policy. Recycling used oils back into the economy through advanced technologies presents a strategic opportunity that goes beyond ecological gains – supporting raw material supply security, reducing import dependency, and enabling value-added production. To realize these benefits, it is essential to manage the process in a coordinated way, not only with producers but also with all relevant public institutions, to prevent informal practices and establish a sustainable, regulated system. TAYRAŞ’s model offers a strong example for the sector in its transition toward a high-quality production structure capable of competing globally. This approach supports the development of a more efficient, traceable, and economically resilient ecosystem for both lubricant manufacturers and waste oil collectors. It protects the environment, elevates industry standards, and positions Türkiye to pursue a growth model rooted in circular economy principles – one that delivers greater value and profitability.
TAYRAŞ’s refInery transforms used lubrIcants Into hIgh-qualIty base oIls through advanced refInIng and hydrotreatIng technologIes, wIth an annual processIng capacIty of 75,000 tons. The company’s TIDRABASE Group II+ Base OIl, a key output of Its advanced recyclIng process, undergoes a four-stage refInIng and two-stage hydrotreatIng sequence to become a value-added IndustrIal product.
Does this transformation process generate strong dynamism among your stakeholders in the lubricants sector?
At TAYRAŞ, we have never approached our relationships with lubricant producers through obligations such as mandatory blending. Our vision extends far beyond these requirements: we aim for the sector to generate value for the country, society, and industry – alongside all its stakeholders – and to achieve high standards that can compete globally. For us, used oil is a valuable raw material. That’s why producers, collectors, and public authorities must operate within an integrated system. If we can establish a new order that eliminates informal practices and fosters shared responsibility, rather than fragmented structures, the sector will stand on much stronger ground, and the value generated by our efforts will be significantly greater.
Once this integrity is achieved, the lubricants sector will take a major leap forward environmentally, economically, and technologically, and the momentum we are witnessing today will accelerate even further. Our belief is clear: when quality production, sustainability, and circular economy principles work in harmony, everyone benefits. This process presents major opportunities, from carbon reduction and product quality to cost efficiency and global competitiveness. As TAYRAŞ, we are at the very heart of this transformation. We are working to generate greater added value for both our country and our sector, to enable cleaner production, and to help establish a fairer market structure that eliminates informality.
We are proud of the progress we have made and confident in the future of the sector. That’s why we are moving forward with an additional investment to expand the capacity of our Bilecik facility, transforming it into Türkiye’s first Green Transformation Technopark. With this new investment, set to be commissioned in early 2026, we will increase our total refining capacity to 150,000 tons and become Türkiye’s largest green hydrogen production facility. As the TAYRAŞ Green Transformation Technopark, this initiative will deliver numerous additional benefits to our sector and our country. We are proud to offer such a strong infrastructure and world-class technological investment to the industry.
