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FUELS & LUBES INTERNATIONAL
Quarter Four 2014
The next opportunities
for growth in the synthetic lubricants
segment will come fromGroup V
base oils, functionalized esters and
alkylated naphthalenes, predicts
Brad Rinderknecht, synthetics global
marketing manager for the Houston,
Texas-based ExxonMobil Chemical
Company.
Better fuel economy, longer
drain intervals, better engine
protection (fromwear, aeration and
scuffing) and improved shear and
oxidation stability are but some of
the performance requirements these
new products need to meet.
Solutions are not just coming
from traditional petroleum-derived
products. “Since the mid-2000s there
has been a very heavy investment in
bio-based solutions across a variety
of industries, lubricants being one
of them,” said Gregory Gerhardt,
market development manager of
Elevance Renewable Sciences in
Woodridge, Ill., USA. “The societal
interest in more sustainable solu-
tions coupled with new bio-based
technology has brought in high-
performance innovations. Some have
reached the commercialization stage
and are available in the market.”
“Renewable chemicals are
gaining momentum for largely two
reasons: Firstly, in some applications,
it’s been proven to generate better
performance of an end-product
or improve processing. The other
is that it enables our customers to
meet their sustainability needs,”
said Kongkrapan Intarajang, group
chief executive officer of Emery
Oleochemicals, headquartered in
Selangor, Malaysia.“Petrochemicals
will remain key with natural-based
oleochemical solutions being compli-
mentary and, in others, competing.
However, by adding oleochemicals as
an alternative, we allow customers to
enhance their product composition
and renewable properties.”
“People are asking: Is it green?
Does it performwell? The new prod-
ucts are green and performing,” said
Rinderknecht.
Renewable feedstock specificity
(i.e. palm, soybean, rapeseed, etc.)
seems to be less of a concern; rather,
the sourcing based on customer
requirements, proximity and chemi-
cal properties are more important for
most formulators and manufactur-
ers, said Kongkrapan.
“However, the oleochemicals
industry in Asia is facing oversupply
with newly announced capacities
and will see stiffer competition in
the coming years. In Europe, we are
likely to see overcapacities in the fatty
acid market. Regulatory measures
such as the EU’s anti-dumping
regulation could prove to be a key
market influencer, as well. The USA
could see growth given the benefit of
better energy prices and a reviving
economy,” he said.
According to Kongkrapan,
the global bio-lubricants market is
expected to reach USD2.4 billion
in 2017, growing at a compounded
annual growth rate (CAGR) of 4.9%
from 2011 to 2017. North America
remains the largest market with
38.1%.
Changing industry and
market trends
Lubricants are comprised of
base oils (80-90%) and additives
to tailor the finished product’s
performance to end-user require-
ments. Lubrication technology
using petroleum distillates was
very static until the 1950s when
solvent refining was developed and
evolved more quickly in the ‘70s
and ‘80s with the development of
hydroprocessing. With hydropro-
cessing, especially hydrocracking,
came Group II base oils. Changing
technology and regulations have
hastened a changing trend on the
use of base oils over the last 20
years.
In the ‘90s Chevron introduced
the all-hydroprocessed Group II
base oils, using isocracking, isode-
waxing and isofinishing, which
ushered in base oils that were low
sulfur with good oxidation stability
and low volatility.
Over the last decade, the lubri-
cant market has shifted away from
conventional Group I base oils
and towards Group II, III and IV
polyalphaolefins (PAOs) due to in-
creasing demand for high-perfor-
mance lubricants, observed Nawid
Kashani, global strategic market-
ing manager for base stocks and
metalworking fluids for Germany’s
BASF. PAOs have a much broader
temperature range and are great for
use in low-temperature conditions
and high-heat applications. Group
V includes all other base oils, such
as silicone, phosphate esters, poly-
alkylene glycol (PAG), polyolester
and bio-lubricants.
The global synthetic lubricants
market was estimated at USD3.72
billion in 2013 and is estimated to
reach USD5.54 billion by 2020 with
a CAGR of 5.45%.
The global lubricants market
for PAO is estimated at 460,000
With more stringent
emissions and fuel economy
regulations driving OEM
requirements and industry
specifications, the lubricant
industry is searching for
innovative solutions to rise
to this challenge.
By Cristine Amurao
BradRinderknecht
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