ILMA Compoundings March 2017 - 22

COSTS AND MARKET DYNAMICS

As mentioned, high performance and biodegradability
typically come with a heavier price tag. Normal hydrocarbon base oils derived from the refining process and certain
synthetic base oils do not meet the requirements of ultimate
biodegradability or EALs. Generally speaking, synthetics
based on certain water-soluble PAGs, polyol esters (POEs,
TMPs or TMP oleates), and vegetable oils meet the criteria.
When formulated with certain ashless additive technologies,
the lubricant can be formulated to meet the EAL criteria.
The cost of esters, especially those classified as oleates
(oleochemicals) have become more volatile in regard to raw

"Regional sourcing and availability of certain
building block raw material components -
specifically soy, palm, coconut, safflower and
sunflower - directly affect the cost of the
associated ester."
material costs. Regional sourcing and availability of certain
building block raw material components - specifically soy,
palm, coconut, safflower and sunflower - directly affect
the cost of the associated ester. Since they are largely crop
derived, they are classified as "renewable" or "sustainable."
Their supply and cost can be affected by weather conditions,
plant disease, governmental tariffs, etc. Other forms of
synthetic oleates can be formed from tallow, which is animal
derived. Additional cost impact comes from competing industries such as cosmetic, detergent and pharma, where the
same raw materials and associated esters are used. Comparatively, PAGs are petrochemical-derived (ethylene) and are
not considered "renewable." Their costs are mostly affected
by production of consumer goods and political disruptions.
Other cost variables for PAGs can come from competing
industries, such as surfactants.
On a larger scale, roughly 70 to 80 percent of the global
alcohol utilized in esterification processes is derived from
conversion of natural fats and oils. The remaining 20 to 30
percent is derived from petrochemical complex. This balance
is largely affected by world oil prices (crude). Price volatility
will continue until other sources of raw materials and refinement pathways are created.

MARCH 2017

| COMPOUNDINGS | ILMA.ORG

Another area that can greatly affect the market/cost dynamic of biodegradable lubricants is food production. The
food and beverages application segment is expected to lead
the consumption of caprylic/capric triglycerides by 2026.
Based on application, the food and beverages application
segment relies heavily on common alcohols used in the
creation of biodegradable and/or EALs, such as caprylic/
capric triglycerides. Many polyol ester base fluids are both
considered food-grade (NSF HX-1/H-1) and biodegradable.
Growing usage of other safe ingredients, especially in food
and beverages and personal care, is driving the demand for
certain triglycerides. Caprylic/capric triglyceride, owing to
its excellent properties of longer shelf life, less toxicity and
higher safety, is widely preferred as an ingredient in food
and beverages products and can be considered for industrial
lubricant formulations.
There are other chemical pathways that lead to a bio-friendly
base oil, such as chemically modifying vegetable oils or esterification of glycerols. As additional pathways are developed
and matured, we should realize lower prices for highperformance EALs.

PERFORMANCE

A general rule of thumb is the higher the renewable content
in a biodegradable fluid, the lower the thermal-oxidative
stability of the product. Typically, increasing the amount
of natural components to a lubricant formulation such as
vegetable-based fatty acids helps biodegradability but lowers
the thermal-oxidative stability of the oil. Chemically, there is
a direct correlation between saturation and hydrolysis. Esters
manufactured from synthetic acids and neopolyol alcohols
become more resilient in regard to the rate of biodegradation. Hydrolysis can be retarded by choosing specific raw
materials and catalyst(s), but this often adds cost to the
developed base oil. Based on temperature alone, EALs can
be simply rated as follows for use in most applications:

>100C - Polyalkylene glycols and Polyol esters
60C to 100C - Oleate esters
Ambient to 60C - Natural esters (vegetable oil based)

CHANGING OVER TO BIOLUBRICANTS

Simply stated, it's all about polarity. Generally, the change
from one lubricant (either mineral or synthetic) to another

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ILMA Compoundings March 2017

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