Auto Emissions Rise in EU

Average carbon dioxide emissions from new passenger cars in the European Union grew 1.8 percent in 2018 – the second consecutive year of growth after a steady decline between 2007 and 2016, according to a report issued by the European Automobile Manufacturers Association, or ACEA.

ACEAs report on transitioning to zero emission mobility found that average passenger car CO₂ emissions in the bloc were 120.6 grams per kilometer last year. Between 2007 and 2016, average new car CO₂ emissions dropped by 25 percent. The downward trend ended in 2017, when emissions rose by 0.3 percent.

The report found that Estonia had the highest average CO₂ emissions from new cars at 132.3 g CO₂/km, followed by Luxembourg at 131.4, Germany at 129.9 and Hungary and Latvia 129 each. The Netherlands had the lowest emissions at 105.5, followed by Malta at 105.9, Portugal at 106.3 and Denmark at 109.6.

ACEA said a significant factor in the rise was more sales of gasoline-fueled cars and declining diesel sales, which may have been spurred by the VW dieselgate scandal in 2015. In 2017, most new cars sold in the EU were gasoline, while in 2018 there was a bigger drop in diesel car sales and higher demand for gasoline cars. Gasoline engines emit more CO₂ than their diesel equivalents.

On a positive environmental note, 2 percent of all cars sold in the EU in 2018 were electrically chargeable, up from 1.4 percent in 2014. Hybrid EVs accounted for 3.8 percent of new passenger cars, up from 1.4 percent in 2014. Only 0.4 percent of cars sold in the EU in 2018 were natural gas-powered, down from 0.8 percent in 2014. Fuel cell vehicles accounted for a small share of EU sales.

Lubrizol Plant Closed Following Fire

Lubrizol Corp. has not yet indicated when it will reopen its additive factory in Rouen, France, following a fire on Sep. 26. Initial reports said the fire damaged the drumming warehouse and an administrative building at the facility.

The company said that video surveillance and eyewitness accounts indicate the blaze was first spotted outside the site, suggesting the fire originated outside of Lubrizol and unfortunately spread to our facility.

Lubrizol is one of the worlds four main producers of lubricant additive packages. The Rouen facility, coupled with its Le Havre plant, is the companys primary production facility in Europe.

Industry insiders said there is no sign yet of the incident disrupting the market. David Wright, director general of the United Kingdom Lubricants Association, said members are not reporting any shortages due to the fire.

If the extent of the damages was limited to the drumming plant, it should not have any major impact to either production of or the sale of additive products, said an official at a base oil supplier. However, the official, who asked to remain anonymous, said any disruption in the plants operation could have a serious impact on the base oil business.

A statement from the local municipality said that some 3,300 metric tons of multipurpose additives, 711 tons of viscosity booster and tens of tons of dispersants, anti-freeze and anti-friction additives were razed.

I would expect Lubrizol to enact their business continuity plans and diversify products away from Rouen to other plants in France, Spain or even the U.K. to accommodate the outage, Wright said.

The company confirmed his assessment, saying some employees are working out of the Le Havre site, where manufacturing and shipping continues, while approximately 30 employees are assisting with cleanup efforts, environmental testing and investigations at the Rouen site.

Doing Deals

Chemical distribution company Brenntag AG plans to convert from a German stock corporation into a European company, Brenntag SE. The company will remain headquartered in Essen, Germany, and continue to be managed on a dual basis by its management board and supervisory board. Brenntag says the switch better reflects the companys global orientation.

Eint Automotive, an Omani aftermarket auto parts retailer, reached an agreement with Indias Bharat Petroleum Corp. to distribute the companys Mak range of lubricants in Oman.

Spanish energy company Repsol entered into a joint venture with United Global Ltd., a lubricant manufacturer and marketer headquartered in Singapore, that will allow the company to begin blending lubricants in Southeast Asia. Completion of the agreement is expected by years end.

Compatriot Spanish energy company Cepsa renewed an agreement with ExxonMobil to maintain its role as the manufacturer, distributor and supplier of Mobil brand marine lubricants at ports in Portugal, Spain and Gibraltar.

On Site

Russias Lukoil opened a U.S. $94 million blending plant in Almaty, Kazakhstan. It will use the facility to optimize its supply in that country, to penetrate China more effectively and to expand in Central Asia, the company said. The plant has capacity of 100,000 metric tons per year of lubricants.

Independent lube maker Fuchs Petrolub SE broke ground on a $6.2 million warehouse at its United Kingdom subsidiarys headquarters in Staffordshire. The project is aimed at boosting flexibility and increasing production at the facility. The company plans to use the warehouse to store raw materials. Due to be completed by 2020, this addition is the latest step in a $12.5 million investment program for Fuchs U.K. operations.

SKF, a bearing, seal and lubricant manufacturing company based in Gothenburg, Sweden, will install a lubricant monitoring system in Nordic Papers manufacturing plant in Saffle, Sweden.

Chemicals giant BASF will expand ethylene oxide and derivatives output at its Verbund site in Antwerp, Belgium. The expansion will add approximately 400,000 t/y to the companys production capacity, and the investment amount is estimated to exceed 500 million.

Hanwha Total Petrochemical, a 50-50 joint venture between Total and Hanwha Group, has increased ethylene production capacity by 30 percent at its Daesan refining and petrochemicals facility in South Korea. The site
is now able to produce 1.4 million t/y of ethylene.