Formulating for Fuel Economy by Afton Chemical

June 2017

Number 96

Formulating for Fuel Economy Biocide Choices Disappearing

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EDITOR’S LETTER

A Reason to Celebrate Last month, we attended Chevron Oronite’s celebration of its 100th Anniversary in New Orleans, Louisiana. This was the second of four planned celebrations, starting with an event in China in September 2016. Similar events are planned in June at Oronite’s Gonfreville, France, plant and in November at its Singapore manufacturing facility. The celebration included a tour of the Oak Point Plant, which has an interesting start up story. After the attack on Pearl Harbor, the United States Navy was anxious to secure production of critical oil additives for the surviving Pacific and Atlantic submarine fleets. They felt an additional, centrally located plant was needed to improve national security and asked Oronite’s parent, Standard Oil of California, to establish the facility. The amazing part of the story is that Standard’s board took only 30 minutes to agree, and the plant shipped the first tank car of diesel engine additives just two years and three months after the attack on Pearl Harbor. Due

LNG Publishing Co., Inc. 7389 Lee Highway, Suite 300 Falls Church, VA 22042 U.S.A Phone: +1 703-536-0800 Fax: +1 703-536-0803 Web: www.LNGemea.com www.LubesnGreases.com Email: info@LubesnGreases.com

to the scarcity of steel, Oak Point was constructed from equipment bought, dismantled and transported from an obsolete refinery in Shreveport, Louisiana. Think that would be possible today? We congratulate Oronite on its 100th birthday and wish the company well for the next 100 years. We’d also like to give your company a reason to celebrate this year. If your target market is the EMEA lubricant industry, think about advertising in our July issue. We’ve engaged Readex Research, a U.S.-based marketing research firm, to gage our readers’ perceptions of the ads in that issue. The purpose of the survey is to help advertisers communicate more effectively with Lubes’n’Greases Europe-Middle East-Africa readers through their ads. This is a great opportunity to determine how successfully your messaging is reaching the decision makers in the EMEA region. Our advertising team will be happy to help you deliver your message to your customers. Contact David Stanworth at DStanworth@

Richard Beercheck Managing Editor

Howard Briskin Publisher

Ricardo Lianez Art Director

David Stanworth Commercial Director dstanworth@LubesnGreases.com Phone: +44(0)1737 824495

Sheryl Unangst Director of Audience Development Robert Green Circulation Manager Jeff Lewis Circulation Assistant George Gill, Joe Beeton, Boris Kamchev, Emeka Umejei, Ray Masson Contributors

LubesnGreases.com, Matt Rogers at MRogers@LubesnGreases.com or Megan Matchett at Megan@ LubesnGreases.com. Winners will be announced in September. We look forward to celebrating with you.

Megan Matchett Advertising Account Manager megan@LubesnGreases.com Phone: +1 703-536-0800 Matt Rogers Director of Business Development, North America MRogers@LubesnGreases.com Phone: +1 703-536-0800 Laura Hughes Advertising Production Supervisor

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

Richard Beercheck Managing Editor

— Richard Beercheck Dick@LubesnGreases.com

Lubes’n’Greases Europe-Middle East-Africa (ISSN1935-8490) is an independent trade magazine, published monthly. Subscriptions to the print edition are free to qualified subscribers in Europe, the Middle East and Africa who are active in the lubricants industry as manufacturers, marketers, volume buyers and users, or as key suppliers. Qualification is subject to publisher’s approval. Subscriptions to the print edition outside Europe, the Middle East and Africa are U.S. $125 for 12 issues; U.S. $235 for 24 issues. Subscriptions to the digital edition are free to qualified subscribers worldwide. Lubes’n’Greases Europe-Middle East-Africa is a registered trademark of LNG Publishing Co., Inc. Printed in the United Kingdom. Copyright 2017, LNG Publishing Co., Inc.

June 2017

Number 96

FEATURES 10 What Will Drive Group II in Africa? The world is shifting to API Group II and III base oils, but Africa has yet to fully grasp this reality. While Europe and the United States have embraced higher quality oils, Africa is still at a crossroads. Aside from South Africa, which has seen growth in Group II oils, the rest of Africa still lags far behind the rest of the world.

16 Formulating for Fuel Economy Current and future legislation is forcing original equipment manufacturers to find ways to improve fuel economy and reduce carbon dioxide emissions across their vehicle fleet. In the past, the industry largely depended on engine oil additives to cut fuel consumption. The optimum approach is a co-engineered solution where engine and lubricant are developed in parallel.

24 Biocide Choices Disappearing

Biocides are under great scrutiny by European Union regulators for their harmful impact on humans and environment. Besides the high cost of registering products, suppliers could be asked to run numerous additional studies and exposure scenarios. The high costs and stringent evaluation by the authorities could lead to the disappearance of these products from the market.

DEPARTMENTS 3 Editor’s Letter 6 Base Oil Report 28 Industry Calendar

30 Newsmakers 32 Advertisers Index 34 Last Word

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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BASE OIL REPORT

BY RAY MASSON

Analyzing the Past & Predicting the Future

oward the end of 2016 and the beginning of this year, many pundits, players and participants in the base oil business were engaged in trying to determine the future for various types and grades of base stocks. They used varying and often very different methodology, and more often than not arrived at conclusions that were spurious at best and, in some cases, completely misleading. The science of base oil forecasting has been honed and developed over the years to build in as many variables and factors that may affect the ultimate outcome, not just for prices but also for volumes and potential markets that can readily be identified. Companies such as Kline, Argus and Platts spend millions of dollars, and employ a host of staff to perform studies to analyze what has happened and what may take place over a given period of time. The base oil sector of the oil industry would appear to be a small and perhaps insignificant part of the

greater whole. But millions of dollars are invested by oil majors, national oil companies and also smaller private initiatives based on these forecasts. It is true that underlying fundamentals such as crude oil levels and feedstock prices have a major part to play in where base oil numbers lie. These factors represent the raw material costs that provide the foundations on which base oil prices are built. These primary factors provide the drivers controlling markets and production from the various base oil installations around the globe. These production centers do not collude or collaborate with one another; therefore, competitors are focused on establishing and maintaining a market share to boost

profitability and contributions from every part of their production slate. Today, nearly half way through the year, some predictions for base oils throughout the regions are beginning to become reality. Actual events have affected the various regional markets, producing outcomes that many pundits probably missed by a wide margin. The use of historical trends and analysis of past events is only a small part of what may or may not happen in the future. While many forecasts contain the certainties and also probabilities of known events and factors, many more unidentified and indeed unidentifiable elements can play a major part in what will happen in the base oil arena. This year has seen the

inclusion of planned maintenance and turnarounds at various refineries that will always have a predictable effect on base oil availability from standard production. But no one could have foreseen the outages that have unexpectedly or accidentally occurred at some plants. For example, no one could have seen the temporary production stoppage at the Pearl installation in Qatar, which has had a massive effect on the availability of gas-to-liquid API Group III+ base stocks. This unplanned stoppage has also impinged on other sources of Group III base oils, some of which were new to the market and others that were in transitional phases, with fundamental changes in marketing procedures. This Continued on page 8

JUNE 2017 â&#x20AC;˘ LUBESâ&#x20AC;&#x2DC;Nâ&#x20AC;&#x2122;GREASES EUROPE-MIDDLE EAST-AFRICA

Continued from page 6

is but one example where no forecasting could have taken account of events, and where all ideas or preconceptions of where the Group III market would be at this stage could not have predicted these events. New production is easy to build into a business plan, and identifying possible and probable markets for new sources of material is relatively simple. But events have a strange way of turning facts into fiction. For example, the Group II market is about to see a massive increase in the availability of these base oils from Rotterdam in 2018 and from Saudi Arabia later in 2017. This will add a possible 1.5 to 2 million tons of new production to a market that admittedly is growing, but not perhaps at such a sudden exponential rate. Forecasts predict that Group I utilization will continue to decline and that Group II availabilities will replace the lower classed material. Some Group I material is currently being produced from installations that require, or will require in the not too distant future, major capital reinvestments to maintain production at present levels. Many producers have decided not to make these investments, and Group I availability will continue to decline. But is this is what the markets want or indeed require? Many modern blenders and finished lubricant manufacturers have announced that they will not 8

divorce from Group I base oils, and that their production will continue to depend on these primary stocks as part of a balanced portfolio of lubricants. This sort of announcement may convince Group I refiners to continue production of these grades, which may command a price premium over the more freely available Group II and III base stocks in the future. An old adage states, “Nothing can be said to be certain, except death and taxes.” This certainly applies to the base oil arena, where various scenarios can be played out at the drop of a catalyst or unforeseen geopolitical events, over which very few industry pundits have any element of control. Base oil markets will continue to develop and will change, expand and contract over the coming years. The guess is that forecasting will continue to play a major part going forward so that industry players have the confidence to invest and maintain a presence in this small, yet lucrative part of the much larger revenue generating oil refining business. o

RAY MASSON is director of Pumacrown Ltd., a trader and broker of petroleum products in London, U.K. Send him comments or topic suggestions at pumacrown@email.com

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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WHAT WILL DRIVE GROUP II IN AFRICA? 10

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

BY EMEKA UMEJEI

he world is shifting to API Group II and III, but Africa has yet to fully grasp this reality. While Europe and the United States have embraced higher quality oils, Africa is still at a crossroads. Aside from South Africa, which has seen growth in Group II oils, the rest of Africa still lags far behind the rest of the world. “With the exception of South Africa and some North African countries where Group II has entered into automotive lubricants, the penetration of Group II is still limited in certain countries,” said Alistair Meyer, area general manager for NynasMiddle East and Africa. In a presentation at the ICIS Africa Base Oils and Lubricants Conference in Dar es Salaam, Tanzania, he noted that there have been numerous debates about the factors that will drive a shift to Group II base oils on the continent.

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

Emmanuel Ekpenyong, head of lubricants for HOGL Energy Ltd. in Lagos, Nigeria, emphasized that the gradual extinction of Group I oils is a critical factor that will drive a shift to Group II in Africa. Meyer added that regulatory and performance factors are driving the penetration of Group II and III oils into commercial and consumer automotive lubricants, at the expense of Group I oils. However, John Erinne, chief executive officer of Matrix-Petrochem in Lagos, told Lubes’n’Greases that he does not anticipate a dramatic shift from Group I to Group II. “The shift would be very, very gradual. There are a few specialized demands for synthetics, but I don’t see it growing very rapidly. It is still going to be a small niche market.” Jonathan Njine, managing director for Lubesoil in Nairobi, Kenya,

related that though there is an assumption that the price of Group II is close to Group I, the price is still higher. He said the shift from Group I to Group II will ideally be driven by legislation, but added that Africa does not have any regulations to drive the market in that direction. While he allowed that the presence of more modern vehicles in the

From Hamburg to the World

market will drive the shift to Group II, he added that the situation in East Africa does not encourage the move. For instance, he explained that the East African market allows importation of reconditioned vehicles, most of which are more than seven years old. Therefore, the stringent requirements that apply to modern cars are not big considerations in the market.

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“If you take the percentage of those buying reconditioned cars and those buying new cars, the numbers don’t justify us moving to Group II,” said Njine. Meyer added that while industrial lubricants account for less than 30 percent of the total Africa lubricant market, which is dominated by the petroleum, mining and agriculture sectors. Hydraulic fluids represent the largest product category, and he noted that increased mechanization in the agricultural sector is expected to boost demand for these lubricants. OEMs as Customers & Suppliers In his presentation, John Anderson, product manager, automotive OEM for Fuchs Lubricants South Africa, explained that with the introduction of service plans, original equipment manufacturers have become customers as well as lube suppliers. OEM service plans now require the purchase of genuine oils for a minimum of 5 years, he said, emphasizing that lube marketers must innovate or get squeezed out by OEMs. “The choice of lubricant has been taken away from the customer, and individual workshops now have very little say over lubricant use,” said Anderson. “Propping up high margins with clever marketing and workshop investments is no longer effective, nor are traditional marketing methods.” For his part, Taiye Williams, managing director for Lubcon International, agreed that OEM warranties are driving a shift towards higher grade oils. “OEMs that are coming into Nigeria and have their assembly plant here are going to be big drivers of a shift to Group II,” he said. OEM warranty requirements now specify the type of oil to be used in their vehicles. HOGL’s Ekpenyong supported Continued on page 14

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

A new breed of high performance base oil soon coming your way We have commenced the commissioning of our new Group II base oil plant at Yanbu, from which we will soon be supplying our new aramcoPRIMA base oils. Our new aramcoPRIMA base oils have excellent low temperature and oxidation performance that enable you to formulate a wide range of automotive and industrial lubricating oils to meet demanding market requirements.

Group II Allison Transmission Fluid Boosts Oxidation Stability

Group I

KV100 Change Group I/III

KV40 Change

Group II

Pass 0%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Kinematic Viscosity Change — Allison TES-439 ABOT

Source: Afton Chemical Continued from page 12

the conclusion that OEM warranty service is forcing a shift to higher grade oils. “More than 90 percent of new vehicles are maintained, at least for the first 4 or 5 years, by the authorized service centers that typically buy premium grade OEM-specified lubricants.” The service centers need to maintain the warranty on these expensive vehicles and would not want to void it by using a nonapproved oil, he said. Samer Akram, director-operations for Unichem Services Ltd. in South Africa, said OEMs are a big factor in driving the adoption of Group II in Africa. “The OEMs will influence any shifts to higher quality base stocks,” Akram asserted. Making the Shift According to Nynas’ Meyer, monogrades dominate the heavyduty motor oil segment in Africa due to the perception that thicker oils perform better in hot and dusty conditions. The use of high-quality lubricants is limited to imported cars, with the market predominantly following obsolete specifications. However, Chevron’s Base Oil Product Manager - Asia Pacific, 14

Wai-Fong Chen, noted that heavyduty engine oils are likely to shift to Group II. “A lot of new trucks are coming into this part of the world, and the OEMs require API CI-4 quality.” She allowed that the passenger car segment consists of a lot of old cars that may still use 20Ws. Unichem’s Akram said that the shift to Group II could be substantial because more cars are being produced and assembled locally. Also, increased spending on infrastructure projects could lead to more demand for improved lubricants. HOGL’s Ekpenyong agreed that increased sales of new vehicles in Africa would result in a gradual compliance with OEM lubricant specifications. “This will help promote the shift to Group II base oils. It is also hoped that the cost for Group II base oils, which is a prime concern, will drop in the long run as the market gets used to these oils,” he said. Both Lubesoil’s Njine and Nynas’ Meyer stated that future legislation could be a major driver for a shift to Group II oils. At present, much of Africa has no emissions regulations or fuel efficiency standards. As countries adopt stricter regulations, older

less efficient vehicles will be forced off the road in favor of vehicles requiring high-quality oils. How Soon? The question yet to be answered is: “When will sub-Saharan Africa see a significant shift to Group II oils?” Njine said it is difficult to put a timeline on the move because legislation needs to change. “I see the entry of Group II coming from the smaller players for the time being. I know some who are already using Group II in their minimum multigrade product market. And they are moving to the upper echelon of the market with Group II oils.” Chevron’s Chen said she is not sure whether Group I will be phased out completely in Africa because certain industrial applications will still require it. However, she noted that Group II will definitely flow from South Africa to the rest of Africa, but with the proviso that the West African market is a bit complex. Forecasting the future of Group II in Africa, Meyer concluded that Group I availability issues and changes in price dynamics may accelerate the penetration of Group II in Africa. o

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

group II base oils

regular, reliable supply and €1,800,000 in savings The base oil barge is a familiar and welcomed sight for Chevron’s Group II base oil customers in northern Belgium and the Netherlands. Adding Group II to their supply chain was technically necessary for new specifications, but potentially difficult and costly across their supply chain. After listening to our customers’ concerns, we started a ‘milk run’ delivering Chevron Group II base oils to our customer’s dock on a regular basis. We estimate that since it started in 2014, the customers on the milk run have a combined savings of over €1,800,000. We’re interested in helping you. We can be reached at Chevronbaseoils.com or call: Africa, Middle East & Pakistan + 971 4 313 3907 | Latin America + 55 21 2510 7241 Asia + 65 6 318 1660 | Europe + 32 9 293 7100 | North America + 1 925 842 8788

Let’s talk about your business.

B Y W A LT E R K U D L I C H

urrent and future legislation is forcing original equipment manufacturers to find ways to improve fuel economy and reduce carbon dioxide emissions across their vehicle fleet. Thus, improved fuel economy will remain the key driver for future powertrain

designs. In the past, engine oil additives contributed to fuel economy in two ways. First, additives supported the development of engine designs that improved fuel economy without compromising performance while maintaining durability over the oil drain interval. Second, new additive technologies and engine oil formulations, tailor-made for oil companies and OEMs, improved fuel economy in their own right. Today, the potential remains to improve fuel economy even more by moving to low and ultra-low viscosity oils and by redesigning hardware. The optimum approach is a co-engineered solution where engine and lubricant are developed in parallel. However, limiting the approach to fuel economy alone is not sufficient. A holistic viewpoint is needed that considers all performance requirements of future engine oils, keeping in mind that performance cannot be defined based solely on chemical limits.

Meeting the Regs The industry faces major challenges in the next decade and beyond. All regions are broadly driving down emissions at a nominally similar rate. However, while the preceding decade saw about a 25 percent reduction in absolute carbon dioxide emissions, a 40 to 50 percent absolute reduction is projected for the next decade. The European Union has the most stringent requirements for fuel economy today. Car makers that fail to meet carbon dioxide limits after 2020 will face massive penalties. While carbon dioxide limits for commercial vehicles are still under development, the system for trucks will go much further than for cars, controlling every unit and component that impact fuel economy. Different regulations and consequences for violations are under discussion for the key regions of the EU, United States and China. For example, China will probably take the initiative in major cities and might only allow full electric vehicles in certain urban areas. Formulating FE Additives Lowering lubricant viscosity is one measure being taken to reduce fuel consumption. However, the downside of this approach can be higher wear. An example is a field trial of a lowviscosity gear oil in 10 trucks totaling

more than 500,000 kilometers. The gears showed increased wear with thinner oil, although part condition still met OEM requirements. Ideally, hardware can be redesigned to compensate for the use of lower viscosity oils, but reformulation using additives at higher treat rates can also help offset the effects of lower viscosity. But OEMs and additive or oil companies have to work hand-inhand from the start of a new development project to ensure reliable performance. An example where this approach was followed successfully is Mercedes’ latest generation automatic transmission. Because the company worked closely with the lubricant supplier, it is able to use by far the thinnest ATF on the global market, gaining a 1.5 percent fuel economy benefit from just the fluid in the new hardware. It is a simple concept to grasp that lower viscosity equals fuel economy benefits, but the ability to both measure this value and to tailor the fluid to the engine and vehicle platform is more challenging. For instance, Afton testing showed a 1.8 percent fuel economy benefit for a specific vehicle using an SAE 0W16 engine oil. However, in a different vehicle, moving to lower and lower high-temperature high-shear viscosities showed the opposite effect. Lower viscosity is not a bottom-

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

FORMULATING FOR

FUEL ECONOMY

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

Lube & Additive Effects Fuel economy effects can be differentiated by those derived directly from the lubricant and those produced by hardware changes, where the fluid plays a supporting role. Next generation lubricants cannot focus solely on fuel economy. They also have to account for any hardware changes on the horizon, which often are reflected in ACEA or OEM specifications. In addition, fuel quality around the globe has to be considered, as well as increasing use of biofuels. Finally, considering only one vehicle component will not produce optimum benefits. Rather, the entire power train – including wheel bearings, hubs, etc. – has to be considered. OEMs are adopting a number of hardware changes to meet fuel economy requirements, several of which place demands on future lubricant and additive technologies. The priorities are clear, and we have to meet all market demands for new additive chemistry. To achieve this, we need the right R&D tools because nothing can be developed today without the use of statistical tools like design of experiments (DoE). Besides that, testing is a key focus. Having meaningful screening tests, well working component tests and the right set up for field testing are 18

Additive Impacts on Fuel Economy Lubricant

VII

Steel Piston

DET

DISP

Enhanced Turbocharging

VII

DISP

Improved Friction Control

DISP

Roller Bearings

VII

DET

Full Electric/Hybrid

DET

DISP

LSPI

BO POSITIVE EFFECT

AW DET NEGATIVE EFFECT

BO = Base Oil VII = Viscosity Index Improver FM = Friction Modifier AW = Antiwear AO = Antioxidant DET = Detergent DISP = Dispersant CI = Corrosion Inhibitor

Source: Afton Chemical Corp.

critical for future development. All these factors should be included in a development strategy for new lubricants. The table shows how different additive components support lubricantimpacted and hardware-impacted fuel economy improvements. Note that while antiwear components do not support fuel economy directly, the use of lower viscosity base oils requires careful selection of the antiwear to compensate for the higher wear potential. The shift to steel pistons improves fuel economy because they allow higher combustion pressures to be applied, which improves performance. However, the oil and cooling water will run hotter, potentially increasing deposit formation in piston ring

grooves. Hence, improved antioxidant performance is critical. Afton’s testing of next generation antioxidants suggests that depending on the application, oil oxidation life can be extended by almost a factor of three. Turbochargers play a key role in modern engine technology. Their use has led to far higher engine performance, allowing engines to be downsized while boosting output. Turbocharging is also crucial to reduce exhaust emissions; however, they are very sensitive to deposits. Base oil composition can have a significant impact on turbocharger and piston deposits. A key rating of base oil quality is the Noack volatility test. Light base oil components with lower boiling points can potentially Continued on page 20

Typical Noack Volatility Ratings

25 Source: Noack Volatility (%)

less well that we can use to access fuel economy benefits. Rather, lowviscosity fluids need to be matched to newer engine platforms specifically designed to run on the thinner oils. As proof of this concept, consider that in the last two decades cars have become heavier and offer more comfort, safety and performance. At the same time, fuel economy has improved significantly. New hardware design, downsizing and a new category of lubricants developed in concert allowed this progress.

20 15 10 5 0 Alkylbenzole Paraffinic Solvent Neutral Oils

VHVI Hydrocracked OIls

PAO

Polyol Ester

Rapeseed Oil

Source: MTZ 12/2016 JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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Continued from page 18

be transformed into the vapor phase in the engine, causing turbocharger, piston or oil mist separator deposits. The Carnot cycle defines the maximum theoretical efficiency of a combustion engine. Further efficiency losses result mainly from friction in the hardware components. The largest amount of friction arises between the piston ring and the cylinder liner. Reducing this steel-onsteel friction is key to improving fuel economy. The SRV or pin-on-disc-test is a useful screen test to measure this friction. Losses in the plain bearings are also considerable and are targeted for reduction. One concept is to replace them with roller bearings on the crankshaft. However, while roller bearings reduce friction losses, they can be adversely affected by combustion pressure surges. Electric cars are probably the future

Friction Losses in Internal Combustion Engines

Main Bearings 40% Pistons 19% Valves 16% Oil Pump 11% Water Pump 5% Generator 9%

Source: Kline & Co.

of individual travel in passenger cars. While it is difficult to predict the future widespread adoption of electric vehicle, an EU guideline plans to prohibit registration of cars with conventional internal combustion engines by 2030. As a consequence, more and more electrical and electronic components

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are being exposed to the lubricant. This applies mainly to driveline applications like transmissions or axles, but is also found in the engine. Hence, demands that were never made before have to be handled by the lubricant. Higher combustion pressures, increased air intake into the engine, higher temperatures and other impacts have given rise to a phenomenon not detected for many years. These operating conditions increase the potential for autoignition, in this case low speed pre-ignition (LSPI), which can severely damage the engine if not controlled. Last but not least, OEMs and customers still want to reduce the cost of ownership and are looking to extend oil drain intervals on top of all the challenges around fuel economy. For instance, OEMs want to increase drain intervals from 90,000 to 120,000 kilometers for commercial vehicle engine oils, 300,000 to 500,000 km for manual transmissions and 500,000 to 800,000 km for gear oils. These requirements place significant stress on all lubricant components. Fuel Economy Testing The general view in terms of testing is “we could do better.” Current Continued on page 23

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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Continued from page 20

testing protocols do what they were designed to do, but there is always room to improve. Current tests can be time consuming, produce a limited amount of data, can be inaccurate and have only regional application. Thus, they provide only limited information about how petroleum additives may enable new technologies. Knowledge has advanced significantly in the period since the tests were set up. This is particularly true where lubricant research and evaluation is linked directly to vehicle emissions. To help alleviate this situation, Afton developed the proprietary Afton Continuously Aging Fuel Economy (A-CAFE) test. This vehicle test allows formulators to evaluate multiple areas of influence in somewhat real world conditions. A-CAFE is a chassis-dynamometer test based on a composite drive cycle. It monitors real time of fuel consumption. Because it runs continuously, the test generates a vast quantity of precise and repeatable fuel consumption data, compared to conventional fuel economy tests. Fired engine tests are very complex and expensive because they burn larger quantities of fuel. In contrast, motored engine tests provide an elegant method to evaluate only frictional effects in an engine. In such tests, the engine is not driven by fuel, but by an external electric motor. Torque is measured with sensitive in line torque cells, and coolant and oil temperature are precisely controlled. A-CAFE enables researchers to explore fuel consumption as the oil ages in real time.

improvement, lubricants must be treated as hardware design elements and be developed in concert with new component designs. To improve fuel economy in the future, the lubricant will become more important than today. OEMs will need to consider to involving additive

and oil companies much earlier in the progress of development projects than they do today. o Walter Kudlich is OEM Relationship Director for Afton Chemical EMEAI, based in Hamburg, Germany. Contact him at walter.kudlich@aftonchemical.com.

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Conclusion Fuel economy remains the key driver for all OEMs around the globe. However, only reducing viscosity provides limited benefits. To gain the optimal amount of fuel economy LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

BY BO RI S KA M C H E V

BI CID CH IC DISAPPEA 24

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

E W ES

ater is the great enemy of lubricants and fuels. Even a little water in a lube or fuel storage tank can trigger biological degradation from different bacteria, fungi, yeast or algae. Owners of storage facilities containing high volumes of lubricants and fuels must rely on biocide additives to prevent biological degradation of their liquid assets. As defined by European legislation, a biocide is a chemical substance or microorganism intended to destroy, deter, render harmless or exert a controlling effect on any harmful organisms by chemical or biological means.

RING

Continued on page 27 LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

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“Water-based lubricants like metalworking fluids and some hydraulic fluids are even more susceptible to microbes because they contain water by design.” Continued from page 25

According to Uwe Falk, Lubrizol’s global commercial manager, biocides, “Water-based lubricants like metalworking fluids and some hydraulic fluids are even more susceptible to microbes because they contain water by design.” In a presentation at the UNITI Mineralol Technologie Forum in Stuttgart, Germany, in April, he added, “Non-water-based lubricants also might have issues if exposed to humidity. In general, fuel, processing and metalworking fluid biocide additives can be used to both prevent microorganism growth and to shock-treat an outbreak.” In general, there are two ways to decontaminate lubricants and fuels degraded by microorganisms: physico-mechanical and chemical. “Preventing problems is definitely better than curing,” Falk stated. To prevent microbial contamination in fuels, regular cleaning of the tanks and draining of the water on the tank bottoms is recommended. Cleaning can be more difficult for non-water based lubricants systems, Falk explained. But in water-based systems like some high water content hydraulics fluids, microbial attack can be prevented only by using biocidal active substances. “And water-based metalworking fluids will always need to include biocidal active substances, or the microbes will grow.” Lubrizol testing found that lubricant contamination with microor ganisms is a continuous process for machines used in outdoor environments. Therefore, higher protection

— UWE FALK, LUBRIZOL

is needed, often by regular addition of tank side biocides. Regulations Limit Choices As substances able to control microorganisms, biocides are under great scrutiny by European Union regulators for their harmful impact on humans and environment. “In Europe, these substances need to be registered under the Biocidal Products Regulation while in the United States, they are regulated through the Federal Insecticide Fungicide and Rodenticide Act,” Falk said. He added that in contrast to REACH (Registration, Evaluation, and Authorization of Chemicals), there is no volume band for registered substances under the BPR, and all biocides must be authorized before use. According to the BPR, a product is considered biocidal when it is claimed to be as its intended first use and when is has a biocidal effect when added at a certain level. In other words, the compound has an intended dual use. Active substances used to produce biocide products need an EU-wide registration, and all targeted applications need to be registered, according to Lubrizol. “Registration for readyto-use products for customers should be done for every EU member country.” Falk pointed out that since September 2015, no company can sell biocidal substances if it is not on the European Chemical Agency list of authorized suppliers (Article 95). In addition, applications need to be registered, depending on the areas

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

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After a biocidal substance is authorized, all biocidal products need to be registered within two years in all targeted countries by mutual recognition or by ECHA.

Industry Calendar JULY 12-14. Asia, Middle East & Africa Bitumen & Base Oil Conferences Leela Hotel, Mumbai, India • info@baseoilreport.com • www.amea-baseoil.com

SEPTEMBER 4-6. Leeds/Lyon Symposium on Tribology Valpré, Ecully, France

14-17. ILMA 2017 Annual Meeting Hyatt Regency Grand Cypress, Orlando, Fla., U.S • ilma@ilma.org • www.ilma.org

18-20. GOMA Lubricants and Base Oils Symposium Esplanade Hotel, Zagreb, Croatia • goma@goma.hr • www.lubricants.goma.hr

• leeds-lyon2017@sciencesconf.org • leeds-lyon2017.sciencesconf.org

25-27. UEIL Annual Congress Royal Hotel Carlton, Bologna, Italy

12-13. North American Industrial Lubricants Conference Loews Hotel, Chicago, Ill., U.S.

• info@ueil.org • www.ueil.org

• events.registration@icis.com • www.icisconference.com/ lubricantsusa17

31-Nov. 2. ICIS African Base Oils & Lubricants Conference Accra, Ghana • events.registration@icis.com

• www.icisbaseoils.com 17-22. World Tribology Congress Beijing International Convention NOVEMBER Center, Beijing, China 29-30. ACI European Base • beijing@wtc2017.org Oils & Lubricants Interactive • www.wtc2017.org Summit Antwerp, Belgium OCTOBER

3-6. Moscow International Lubricant Week Azimut Olympic Hotel, Moscow • Konstantinova.elena@rpi-inc.ru • www.rpi-conferences.com

• gdurleva@acieu.net • www.wplgroup.com/aci/event/baseoils-lubricants-summit/

JANUARY

9-11. International 9-11. ICIS Middle Eastern Base Colloquium Tribology Oils & Lubricants Conference Stuttgart/Ostfildern, Germany • patricia.zink@tae.de Intercontinental Festival City, • www.tae.de/kolloquien-symposien Dubai, UAE • events.registration@icis.com • www.icisconference.com/ mebaseoils2017

11. RPI Metalworking Fluids & Industrial Lubricants Crocus Expo Center, Moscow • Konstantinova.Elena@rpi-inc.ru • www.rpi-conferences.com7

of use: • PT2 – Disinfection of surfaces/equipment • PT6 – Can preservation (fuel preservation) • PT11 – Preservation of liquid cooling and processing liquids and lubricants • PT13 – Metalworking fluids and hydraulics Falk explained that most countries in the EU require separate, national registration of biocide product before any sales can be made. However, the required information, actions and cost can vary greatly from country to country. No notification may be needed for metalworking fluids (PT13). On the other hand, notification plus listing in a national hazardous chemicals inventory may be required. Full dossiers may also be necessary. After a biocidal substance is authorized, all biocidal products need to be registered within two years in all targeted countries by mutual recognition or by ECHA. “Authorization could also be done in a member state of choice, with mutual recognition by all other targeted countries,” Falk said. He added that the cost in the first country could be up to €50,000 per product and application, while the

mutual recognition fee can be as high as €5,000. Beginning on January 1, 2017, centralized biocidal product registration for each PT application can be processed through ECHA, providing EU-wide authorization, according to Falk. Lubrizol also found that in addition to a number of fees, the authorities could request numerous additional studies and exposure scenarios. Falk cautioned that high costs and stringent evaluation by the authorities could lead to the disappearance of these products from the market. “The last biocidal substance and product is expected to be authorized in 2024,” he related. Lubricants and fuels, as well as all other products threated or those that intentionally incorporate biocides are considered Treated Articles. Only products that are EU approved or under evaluation can be used. After May 1, 2017, treated articles can be imported only if the biocidal substance is on the ECHA Article 95 list. Falk also observed that all Treated Articles have to follow both BPR and CLP labeling requirements when the article claims biocidal properties, or an active carries this claim.

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

BPR Application Costs Registration under the Biocidal Products Regulation can be a costly proposition. Central Registration by ECHA • Registration

€80,000, plus €10,000 annual fee

• Product Family

€150,000, plus €20,000 annual fee

Registration Changes • Major changes

Up to €40,000

• Minor changes

Up to €15,000

• Administration fees

Up to €5,000

• In addition to these costs, add a same product cost and a cost for a letter of access. Both charges are €5,000 each. Country Registrations Cost could vary depending on the country, according to Falk. For example, central registration in Austria costs €18,000. Also, there is a discount for small and medium-size enterprises that could vary from 10 percent up to 30 percent. In addition, cost for registration by mutual recognition varies depending on targeted countries. “The applicants should expect less cost if they seek recognition in 12 or more countries. In this case, ECHA charges €700 for the paperwork. For EU-wide registration, expected cost per product/ application might be up to €250,000,” Falk said.

Labeling requirements include a note regarding that the article contains biocide and the biocidal property of the treated article. “Also, labels must reveal all active substances and their concentration, handling instructions and precautions based on the biocidal product in the article,” Falk noted. The label must also list all relevant use instructions, including safety measurements if needed to protect humans and the environment. They must be visible and easy to read, permanent and in the official language of the country of sale. “Labels must be on the package, technical data sheet and letter of guarantee,” Falk said. Authorized biocides typically are identified with highly visible labels, noting that every potential hazard

has been analyzed in detail with massive data collection, according to Lubrizol. “Handling of biocidal products is, therefore, strictly controlled, resulting in a higher administrative burden. As a result, there is a trend to use dual-use products instead, which have biocidal activity aside from their first use such as pH buffers, corrosion inhibitors, etc.,” Falk concluded. While formulations containing dual-use components still comply with the BPR, Falk said, “It is risky to call such formulations biocide free. Such a claim indicates that the formulation is less dangerous than formulations containing a biocidal product, while in fact the dual use product is acting in a similar way to a biocide.” o

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

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Newsmakers

Fuchs UK Expands Fuchs UK has invested in new offices at its headquarters in Hanley, Stoke-on-Trent. Key features of the office design include energy efficiency and the requirement to create an environment for employees that encourages team work and creativity. The building utilizes LED lighting, climate control systems and efficient insulation. Besides being the U.K. manufacturing plant for the Fuchs Group, Hanley is also the company’s global center of excellence for machining, mining, glass and Silkolene motorcycle oils. To support these areas, Fuchs enhanced the R&D technical center attached to the new office block. This creates additional capacity for the analytical work carried out in the Service and Quality laboratories. Russian Supplier Plans India Foray Russian lubricants supplier Obninskorgsintez is set to expand its business in India this year, the company said in an interview. The company operates a 125,000 metric tons per year blending plant in Obninsk, Kaluga Oblast, about 30

100 kilometers southeast of Moscow. It also produces a wide range of coolants and auto chemicals. “We are looking for local distributors of our products in India and do not rule out the possibility to open our own production there as soon as we set up the distribution points,” said Evgeny Goryansky, Obninskorgsintez commercial director. “Our India plans include distribution of our own brand and distribution of co-branded products produced in our factory in

Russia.” The company said it recognizes the huge potential of the Indian market and has identified a variety of niches into which it could fit, such as engine oils and other automotive products for the country’s expanding fleet of motorcycles and passenger vehicles. Created in 1999, Obninskorgsintez has since reached across Russia and into 35 countries including China, Mongolia and Turkey as well as Central Asia, Continued on page 32

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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North Africa and Europe. ATIEL Launches Compliance Policy ATIEL, the technical association of the European lubricants industry, has launched a new Compliance Policy. Its aim is to support lubricant marketers who make performance claims against the ACEA Oil Sequences, for which compliance with the European Engine Lubricant Quality Management System (EELQMS) is required. The Policy aims to encourage greater compliance across the industry through the continuous monitoring of automotive engine lubricant quality in the market and the exchange of infor-

mation and technical data that supports the education of lubricant marketers. It also provides a framework for supporting marketers, who are responsible for all aspects of product liability, to take corrective action to address non-compliance issues. This includes procedures for ATIEL to give feedback and advice to marketers, or to take action against them, depending on the severity of the noncompliance. The Policy currently applies only to engine oils that claim to meet the requirements of the ACEA Oil Sequences, but the principles apply equally to other clearly defined technical standards. The full Compliance Policy is available on

Advertisers Index COMPANY PAGE

BASF ��BACK COVER Calumet Specialty Products Partners �� 29 Chevron �� 15 Chevron Phillips Chemical �� 27 China International Lubricants and Technology Exhibition �� 22 Ergon International, Inc. ��INSIDE FRONT COVER ExxonMobil Chemical �� INSIDE BACK COVER IPAC �� 9 Lanxess �� 5 Lubes’n’Greases Base Oil Pricing Data �� 31 Lubes’n’Greases Base Stock Guides �� 26 Metall-Chemie �� 12 MOGoil �� 8 Munzing �� 19 Saudi Aramco Base Oil Company – Luberef �� 13 Sea-Land Europe Ltd. �� 33 SK Lubricants �� 7 Solvay Novecare �� 21 UEIL Annual Congress �� 23 Zschimmer & Schwarz, Inc. Lexolube Division �� 20 32

the ATIEL website. Total Invests in Data Platform Total Energy Ventures, the venture capital arm of Total that invests in startups, announced that it has acquired an interest in Xee, an open platform that collects, processes and manages data from connected vehicles. Xee helps clients optimize their operations and suggests new offerings. Potential customers include auto service centers and vehicle fleet managers who want to develop predictive maintenance solutions, insurers looking to provide pay-as-you-drive solutions and businesses interested in real-time marketing, Total said in a press release. “Acquiring this stake enhances TEV’s portfolio of digital solutions. Connecting cars to the cloud is an important building block for the mobility of the future. Xee stands out from its competitors through the wide range of vehicle models and brands covered by its platform and the quantity of data collected and analyzed,” Total Executive Vice President, Strategy & Innovation Philippe Sauquet said. This funding will enable Xee to accelerate the commercial deployment of its platform begun in 2016, invest in its technological lead and expand the use of artificial intelligence to manage the data, Total said, adding that it will sit on the company’s Board of Directors as an observer.

Umongo Buys South African Distributor Umongo Petroleum acquired South African base oil distributor Orbichem Petrochemicals, which is now a wholly owned subsidiary. Terms were not disclosed. Cape Town, South Africabased Orbichem distributes API Group I, II and III base oils, naphthenic process oils, transformer oils, waxes and bitumen. In 2014, Orbichem began distributing Ergon International’s naphthenic insulating oil, base oils and process oils in South Africa and sub-Saharan Africa. Umongo Petroleum of Durban distributes base oils and lubricant additives in various regions in Africa for several multinational corporations, including Chevron, Evonik, BASF, BRB International and Innov Oil. Umongo CEO Boston Moonsamy told a reporter that the acquisition of Orbichem will allow Umongo to continue its expansion into other parts of Southern Africa and sub-Saharan Africa. Moonsamy said the deal shows that local companies can develop into significant regional suppliers for multinational players. Cliff Classen will continue to lead Orbichem, according to Moonsamy. Classen asserted that the African market is poised for growth but faces supply and logistics issues. “African consumers will benefit not only from the comprehensive spectrum of oils offered but also from the technical expertise and the supply and logistics capabilities

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

inherent in the company,” he said. Rowe Banks on Sustainability Lubricant manufacturer Rowe has announced plans to render the company climate-neutral from the year 2017 onward and offset all emissions in doing so. To do this, the company calculated its ecological footprints from currently available data. To compensate for the carbon dioxideequivalents determined and footprint they leave, Rowe decided to offset in advance its emissions and brand ambassadors for 2017 and 2018 by purchasing climate certificates, while also offering customers climatecompensated lubrication

products. “Thanks to the conversion into a climate-neutral company, our customers can rely on the fact that all our products, from 1 to 1,000-liter containers, have been produced in a 100 percent climate-compensated manner,” the company said in a news release. Thus, customers contribute to global carbon dioxide compensation by their purchase. Lubmarine Launches Feed Rate Optimization Program Total Lubmarine is introducing a new feed rate optimization program, tailored for the latest generation of two-stroke marine diesel engines through the combined and regular analysis

of lube, drain and system oils. The company said that the service responds to customers who are increasingly requiring a more sophisticated approach to longterm engine maintenance through ongoing monitoring. The program gives ship operators a picture of engine condition to prevent corrosion and wear as well as reduce lube consumption and operating expenses. The service is being trialed onboard a range of ships with a full roll-out expected this summer. It will consist of a regular analysis of drain and system oil by Total engineers and will be combined with the company’s Diagomar Plus laboratory based lube oil analysis, which examines residual

base number, kinematic viscosity, insolubles, water content, PQ index, oxidation, iron and other metal content. Total Lubmarine OEM Relationships Manager Nikolaos Kotakis said, “Achieving the right levels two stroke engine cylinder lubrication is about combining many different operating parameters under the guidance of a lube expert. Modern engines are particularly sensitive to corrosive wear, and both under and over lubrication can cause expensive damage. We believe that our new service will be a significant step forward for customers needing better engine monitoring support and lube oil consumption advice.” o

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LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • JUNE 2017

LAST WORD

BY BORIS KAMCHEV

New Technologies Threaten Lube Suppliers

ubricant marketers could face disruptions to the ways they do business due to a number of new technologies, according to an industry insider. Speaking at April’s UNITI Mineralol Technology Forum in Stuttgart, Fuchs Petrolub SE Chief Technology Officer Lutz Lindemann predicted that global lubricant demand will dip in the next 10 to 15 years because of electric vehicles, adoption of new materials, and more efficient equipment operation and lubricant use. “We need to pay attention to the new technology … and we have to adapt to the new realities,” he said. Fuchs found e-mobility – electric vehicles and plug-in hybrids – and digitization could cut lubricant demand by 8 to 10 percent in Europe and 20 percent in the United States over the next decade. Fuchs projects that lube demand in China could actually increase 15 to 20 percent due to increased car sales. Citing data from Clean Technica, the European Automobile Manufacturers Association and Inside EV, Lindemann said that Europe’s electric vehicle sales reached 206,000 units in 2016, accounting for 1.4 percent of the market and representing a 10 percent increase over 2015. China’s electric vehicle sales rose 53 percent last year to 507,000 units and now account for 1.8 percent of that market. In the U.S., electric vehicle sales jumped 38 percent to 157,000 but still represent

Electric vehicles have different lubrication needs, so factory fill engine and gear oil demand will shrink significantly. Aftermarket demand for automotive lubricants will shrink slightly as internal combustion cars are replaced, according to Fuchs. less than 1 percent market share. Lindemann explained that breakthroughs in electric vehicle technology depend on several factors. “The e-car industry needs to fulfill three main tasks – competitive prices, increased driving range and accessible recharge infrastructure. We estimate that if battery capacity can be increased by 250 percent, driving range will be 500 kilometers for compact e-cars. At the same time, cost can be reduced to €100 per kilowatt hour. And this could be achievable by 2020,” he observed, citing Daimler AG data. Lindemann added electric and hybrid vehicle battery system costs are falling and could become equivalent to conventional power train costs by 2025, citing Daimler data. By 2028, Fuchs predicted, electric cars would have a 30 percent market penetration in the EU, while cars with combustion engines will hold a 28 percent market share and hybrids will account for 40 percent. Similarly, the U.S., Canada and China could see electric cars outnumber internal combustion cars by 2027. Electric vehicles have different lubrication needs, so factory fill engine and

gear oil demand will shrink significantly. Aftermarket demand for automotive lubricants will shrink slightly as internal combustion cars are replaced, according to Fuchs. “First fill grease demand needs to be evaluated too, as some applications will grow in volume and new applications could come up.” Also, the demand for forming lubricants and corrosion preventives could drop as aluminum and thermoplastics replace steel. Finally, Fuchs considers digitization as another development lubricant manufacturers need to consider. Digitization broadly refers to employing information technology to make business practices more effective. Fuchs warned that start-up companies could use this practice to nudge their way into the lubricants industry. These companies help manufacturers analyze operations and provide advice on various aspects of the business. The potential threat to lubricant marketers is that they may also determine the lubricant characteristics needed and then identify the best source for such performance, rendering lube suppliers little more than toll manufacturers. o

JUNE 2017 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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