Africa Ponders Biolubes Potential
An official from a biobased lubricants supplier expressed optimism for the potential growth of these products in Africa – especially in agriculture and industry – at a conference in Johannesburg, though local blenders were pessimistic. Suri Chetty, director of business development for Unichem South Africa, told delegates at the ICIS Africa Base Oils and Lubricants Conference that Africa is 10 years behind global trends in biobased lubricants.
He estimated global biolube consumption at 600,000 metric tons in 2014, with Europe and the United States accounting for a combined 85 percent of that demand. Chetty predicted global demand will grow at a compound annual growth rate of 6 percent per year to close to 800,000 tons per year by 2020.
Seventy-five percent of biolubes are based on vegetable oils – soybean, castor and palm. Industrial processes account for just over 50 percent of consumption.
Chetty said agriculture and industry represent opportunities for biobased lubricants in Africa. He noted that two-thirds of Africans rely on income from agriculture, so land and water degradation from mineral oil products is a concern. Key African industries and original equipment manufacturers supporting such industries – mining, construction, and manufacturing among them – also represent opportunities for biobased lubricants.
Mehrdad Vajedi, director of Dubai-based Permian Energy LLC, was skeptical, saying, Biolubes will not fly in Africa because there is no demand for those types of lubricants. He added that there is no culture to use biodegradable [lubricants] in Africa. I think even in 20 years, biolubes wont fly in Africa.
Emmanuel Ekpenyong, head of lubricants for Honeywell Oil and Gas in Nigeria, agreed, saying, Biolubes cannot fly immediately in Africa. Perhaps their use will grow slowly over the next few years.
Olaniyi Okedairo, chief operating officer of Ranod Oil and Gas in Nigeria, said it is obvious the African market is not ripe for biolubes. Biolubes are driven by environmental factors, he continued. If you look at it, the government is not doing enough for it. It might take a while before there will be investment in that area.
Ekpenyong cited several factors that may impede biobased lubricants growth in Africa; namely, price, weak environmental legislation, the prevalence of older engines that are not compatible with biolubes and low purchasing power or low per capita income in most African countries.
However, Chetty argued that there is a position for biobased lubes, just like there is a position for synthetic lubes. He noted that price is always an issue anywhere in the world, not just Africa. And he claimed that the impact of using biobased lubes trumps its cost implications because in the long run they will reduce both labor and energy costs.