SECTOR FOCUS: BASE OILS Europe Needs Group II/II+ Katty Hoste, Business Development Manager, Europe, Chevron Base Oils
Group II/II+ is the bedrock for optimising a blender’s entire product line for the European Green Deal. Over the last 15 years, growing awareness of the consequences of climate change has led to a seismic shift in the European lubricants industry. The economic viability and supply reliability of Group I base stocks has been further compromised by IMO 2020 and the European Green Deal. The rate of change for new specifications has accelerated with new specifications precluding the use of Group I base oils. Meanwhile, high-quality Group II base oils are readily available in Europe. They have purity comparable to Group III and can be used in a broader range of applications than either Group I or Group III.
The rate of change for new specifications is accelerating Fifteen years ago, all automotive engine oil formulations were based on Group I with Group III base oils as a correction fluid. As specifications tightened, OEM lubricant recommendations began migrating from 15W to 10W then 5W formulations. The percentage of Group III and/ or PAO (polyalphaolefins) necessary, plus the additive package, increased to the point of being uneconomical when blending with Group I. In the early 2000s, low SAPS (Sulphated Ash, Phosphorous and Sulphur) requirements began entering the market. Limiting SAPS in automotive lubricants, helps reduce harmful emissions. It also precludes the use of Group l base stocks, which are inherently high in sulphur.
In 2007, Chevron introduced Group II base oils in Europe, making them available through a network of supply hubs. This created an economical upgrade path for blending lubricants meeting new requirements while lowering supply chain cost and complexity. Since then other Group II producers have entered the market.
Figure 2: Europe leads the world in Group I capacity closures
IMO 2020 is reducing economic viability for some Group I producers
IMO 2020 limited sulphur in marine fuels from 3.5% to 0.5% by 2020. For many refineries, IMO 2020 sulphur limits are incompatible with their Group I production. As a result, Group I base oil plants are operating significantly below capacity or are closing. Some Group I refiners would require a capital expenditure of > $1bn per refinery to produce IMO 2020 compliant fuel.
Stephen Ames, of SBA Consulting, estimates that 3 million tons of Group I will ultimately exit the market. In contrast, Group II and Group III base oils are not negatively affected by IMO 2020. In fact, it may create an opportunity for Group II.
Figure 1: Group II/II+ base oil can make up as much as 50% of European 5W30 lubricants and 100% of most formulations from 10W and higher. This gives blenders more formulating flexibility and can reduce complexity and cost.
Marine cylinder lubricants and trunk piston engine oils (TPEO) historically relied on Group I base oils to reduce asphaltine deposits from high-sulphur fuels. However, IMO 2020-compliant fuels have fewer alkaline compounds, making lubricant solvency less important. Going forward, with the appropriate additive technologies, it is possible to replace Group I base oils with Group II in marine lubricants.
10 LUBE MAGAZINE NO.161 FEBRUARY 2021
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