Continued from page 20
improved energy efficiency, and prolonged lifetime for lubricants and machines. Lubricant manufacturers started devoting substantial R&D efforts to developing bio-lubricants of a quality which justifies the premium price. OEMs, which wield a great influence over the supply chain of finished lubricants in the automotive field, are also gaining prominence in the bio-lubricant sector. In fact, several OEMs, in both the automotive and industrial fields, are forging partnerships with bio-lubricant blenders, providing the foundations for their organic expansion, as well as becoming involved in the approval process for bio-lubricants. As in engine oils, increasing OEM involvement is partly a consequence of the rising complexity of lubricant specifications.
Synthetic esters form the majority of basestocks for bio-lubricant production worldwide, and their supply is relatively concentrated, with four global players (BASF, Croda, Chemtura/Lanxess, and ExxonMobil) accounting for half of the worldwide supply. PAOs, produced by the likes of Ineos, ExxonMobil, Chevron, and Chemtura, and PAGs, supplied by Dow Chemical BASF, Clariant, and Huntsman, among others, are also included as bio-lubricant feedstocks. Vegetable oils and oils made from palm, canola, and sunflower seeds provide the basestocks for the more commodity products. North American manufacturers like Novvi, Advonex, Elevance, and Biosynthetic Technologies are instead developing innovative biosynthetic basestock solutions, which may represent the future of bio-lubricant technology. Increasing the supply of synthetic bio-basestocks characterised by high performance standards and offering good value for money is bringing the bio-lubricants industry to the next level, with high costs the next obstacle to overcome.
Currently, the regulatory dimension still exerts the most influence on end users choosing to switch to bio-lubricants, yet this is also pushing the market in new directions. In several European countries, public green procurement policies and local authority regulations mandating the use of biodegradable products are driving demand for bio-lubricants in previously untouched areas such as construction. This has spurred the development of bio-hydraulic fluids, now the largest bio-lubricant product category by consumption volumes, according to Kline’s analysis of the global bio-lubricant market.
Bio-lubricants are increasingly used in metalworking, not for environmental reasons, but employee health, and metalworking fluids, used in the primary metals, automotive manufacturing, and general manufacturing sectors, are the second largest bio-lubricant product category. Total loss lubricants used in chainsaws and outboard marine engines in pleasure crafts, greases used for railroads, and transformer oils used in electrical transmission are other examples of specialist lubricant categories that see a high level of bio-lubricant penetration. Worldwide development of “bio” versions of PCMO (for 2T and 4T engines) is still in its infancy.
The size of the global market for bio-lubricants, according to Kline’s analysis, is estimated to range between 250 and 300 kilotons in 2016. North America and Europe are the two regions accounting for the highest consumption of bio-lubricants due to stringent environmental protection policies, as well as the high environmental awareness among end users. Together, these two regions represent approximately 80% of the global market. The largest markets for bio-lubricants in Europe are in Northern Europe, especially in Germany and Scandinavia (Sweden, Norway, Denmark, and Finland), with large economies such as France and the United Kingdom slightly behind, but with encouraging signs of forthcoming growth.
Switzerland-based Panolin is an example of a supplier specialised in finished bio-lubricants with a reputation in the industry for high-quality products; Fuchs, the German industrial lubes specialist, also has a wide portfolio of bio-lubricants for construction and other industrial applications. These two companies are the leading suppliers of finished bio-lubricants in Europe and worldwide, driven by their bio-lubricant focus, global reach, and OEM partnerships. Both companies are directly competing with global oil majors, such as BP, Shell, ExxonMobil, and Total, which have also entered the bio-lubricant arena. The combined Houghton and Quaker Chemical Co. will be the largest supplier of metalworking fluids, including their bio-lubricant versions. There are signs of expansion and consolidation in the bio-lubricant supplier scene, with the main industry players busy in acquisitions strengthening their hand. Fuchs acquired Statoil’s Fuel and Retail Lubricants business in 2015, while Binol, a leading player in the Nordic bio-lubricants market, was acquired by Quaker Chemical.
22 LUBE MAGAZINE NO.143 FEBRUARY 2018
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
