CIRCULAR ECONOMY

DR. R. K. MALHOTRA Former Chairman, Indian Oil Corporation Director General, FIPI

THE USE OF BIO-DEGRADABLE LUBRICANTS CAN HELP TO MAINTAIN THE ENVIRONMENT AND REDUCE THE CONSUMPTION OF MINERAL OILS. BIODEGRADABLE LUBRICANTS HAVE THE ABILITY TO DEGRADE NATURALLY BY THE ACTIONS OF BIOLOGICAL ORGANISMS, SUCH LUBRICANTS MUST MEET THE ISO 9439 OR OECD 301 STANDARDS.

Corporate leadership teams presently are grappling with an unprecedented number of challenges, including global supply shortages, geopolitical tensions, and inflation. At the same time, the climate issues, stringent targets for move towards net-zero and control on the unsustainable resource consumption of fossil fuels and of the precious materials demand immediate attention. At current consumption rates, humanity is using the equivalent of 1.75 times the earth’s natural resources each year not only to fulfil the needs but also the greed of mankind.

For sustainable growth now we need to think and act differently. We need to quickly change from Linear economy (Extract/Produce, Use and Dump waste) to Circular economy i.e. to adopt the concept of the 7 R’s; Rethink, Redesign, Reduce, Renting, Reuse, Renewables and Recycle

The circular economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is a resilient system that is good for business, people and the environment. It decouples economic activity from the consumption of finite resources and is underpinned by a transition to renewable energy and materials.

It is based on the following principles:

• Reduce Resource Consumption or Better Utilization of same.

• Keep Products and Materials in use. (Repair or Rebuilt and Use)

• Regenerate Natural systems (Use Renewables or Recycle Waste)

For companies, it means reducing resources use, conserving materials, renting rather than owning i.e. sharing resources, using renewables, extending a product’s lifetime through repair and reuse, and ultimately recycling.

Circular disruption is underway in many industries, with innovative business models. As the leadership teams become more aware that they are vulnerable to circular disruption, the more time they will spend preparing for it.

Besides the threat of disruption, leaders need to also recognize that well-designed circular products and business models can boost growth, cut costs, and build resilience, all while preparing the enterprise for a low-carbon future. They need to view circularity as a prerequisite for being best in class in the future.

And as more and more businesses embrace circular business models, the benefits to society will multiply. Initiatives by the industry will help not only the company but the country as well in boosting its GDP as well to achieve Net Zero targets ahead of schedule.

Circular Economy In Lubricants Industry

Today, the “sustainability” and “Net Zero” are on the top of the minds of every Industry, so the demand for products leading to circular economy are also growing in every industry including the lubricant and grease industry. Globally billions of gallons of lubricants are sold annually. Most of the used lubricants (60% or higher) get dumped in the ground, rivers, lakes, etc. causing harm to the environment, polluting water bodies including underground water harming the environment. The use of re-refined used oils in place of mineral base oils and plant based bio-synthetic based oils and bi-degradable lubricants can play an important role towards sustainability and circular economy.

RE-REFINED LUBRICANTS AS BASE OILS

Re-refining of used lubricants to get back the base oils have been around for long, but there were several doubts raised about their capability to produce high quality finished lubricants. However, due to technological advances, the quality of re-refined base oils as available today are much better, so is the demand in view of the wish to move towards circular economy. The use of such base oils for lubricants production offer low carbon intensive solutions and reduce carbon dioxide emissions.

The quality of re-refined base oils can still vary depending upon the used oils sources and the technology deployed. It is therefore important that the quality of re-refined oils be tested with similar yardstick as for virgin base oils, so that the finished lubricants, should offer the similar performance.

As more companies commit towards achieving Net Zero, the demand of such re-refined base oils will grow. The global re-refined base oil demand is expected to reach 8.8 billion dollars by 2027, growing at a CAGR of 6.5% during 2022-2027.

According to the API, re-refining consume 50% less energy and also lead to 50% saving in emissions than that required for refining crude oil to produce base oil, besides use of less virgin oil for lubricants production.

In addition to the above, re-refining help in resolving the problem of disposal of used lubricants.

As more and more countries adopt regulations to encourage circularity and sustainability and industry also further commits itself to the cause of environment, the market for rerefined oils will grow rapidly.

Vegetable Oils And Renewable Hydrocarbons Derived Base Oils

Vegetable oils can be used as lubricants in their natural form as they have excellent lubricity which is fast superior to mineral oil. Vegetables oils also have very high viscosity index, higher the VI the smaller the relative change in viscosity with temperature. These oils also have very high flash point but on the negative side they have poor oxidation stability and high pour point. Synthesizing to form esters allow the oils to perform in very high temperatures or in very cold temperature far above or below the vegetable oils.

A new category of plant based renewable oils are emerging as an alternative to mineral base oils. Such oils called as Biosynthetic or Sustainable Base Oils are called Estolides which are oligometric esters based on special fatty acids with an additional functional group. Estolides cover a wide range of viscosity and can have properties that vary within a wide spectrum range. In general Estolides have better properties than esters, like oxidation stability, resistance to hydrolysis, anti wear etc.

BIO-DEGRADABLE LUBRICANTS

Most biodegradable lubricants use vegetable oils and synthetic esters but Poly alkylalane glycols (PAGs) and also the renewable hydrocarbons are also growing. Esters and PAGs are miscible between each other and interchangeable with mineral based lubricants.

The use of bio-degradable lubricants can help to maintain the environment and reduce the consumption of mineral oils. Biodegradable lubricants have the ability to degrade naturally by the actions of biological organisms, such lubricants must meet the ISO 9439 or OECD 301 standards. These standards state that a lubricant should degrade by more than 60% within 28 days to classify as biodegradable. Additionally, lubricant must be of low toxicity.

The re-refined base oils, vegetable oils and their esters, renewable hydrocarbon based bio-synthetic oils and bio-degradable lubricants can help the move towards Circular Economy.

Conference venues across India since 1999

Since its inception in 1999, NLGI India has been orchestrating Chapters across the nation, offering a forum for industry experts to disseminate their proficiency and acumen pertaining to lubricating greases, as well as fostering camaraderie with contemporaries in the field. The inaugural Conference location for NLGI’s India Chapter was held in Nainital in 1999. With over two decades of historicity, NLGI India has persisted in arranging Chapters in various locations across the nation, highlighting India’s affluent cultural diversity. The 25th Conference is being held in Gurgaon, providing a great opportunity for delegates from around the world to familiarize themselves with the latest advancements in lubricating grease technology, industry trends, and best practices.