Reflections on the base oil market

“Nynas is right to push sustainability to the top of the agenda”

"Demand is healthy and will grow. One feature of naphthenic base oils in the grease industry is that they produce excellent yields and allow for reduced amounts of raw materials and energy reduction in manufacturing. For applications where price is an issue, some might prefer to use paraffinic base oils, but naphthenics are still seen as the best option for high-performance or specialty products. Resulting greases can be nearly clear or translucent, and the low-temperature performance is the best for a mineral oil-based grease, which is important for many extreme applications.

For water-mix metalworking fluids, naphthenic oils have preferable densities, closer to that of water, which means that the inherent stability of emulsions produced is very good. Supply routes are influenced by what is happening in the world. Current events in the Middle East might disrupt flows, just as Russia’s war on Ukraine has.

Nynas’ focus on sustainability and low energy is very good. And these are issues that are particularly important to young people. They really do want things to be sustainable, so Nynas is on the right track, especially in the European market. Sustainability needs to be pushed to the top of the agenda, and to be kept there. However, you also need to show that sustainability can bring advantages.

If something lasts three times longer, it might have to be several times more expensive. This can be difficult to sell to customers, especially in Asia, where costs are always kept down. It’s important to understand that biodegradability and sustainability do come with a cost. Regulations will drive development and provide a framework, but subsidies are sometimes needed. Personally, I think there are too many regulations now. Regulations can be confusing and difficult to keep up with, especially for smaller companies.

The industry is facing lots of challenges, and I think we will see more differentiation geographically. Globalisation is coming to an end, and I think we will instead see more focus being placed on domestic markets.”

“We need a framework that supports resilience”

"The lubricants industry is the quiet yet indispensable force behind industrial progress, economic performance, and technological transformation. In a world increasingly shaped by geopolitical instability, raw material dependency, and disruptive developments, one factor is becoming ever more dominant: regulation.

Since 2019, the EU has enacted nearly 14,000 legal acts, affecting virtually every sector of the economy. For lubricant manufacturers, this means contending daily with complex and evolving obligations. CSRD, EUDR, CBAM, the revised CLP – each introduces new layers of compliance, transparency and risk. And with legislation like the Green Claims Directive and ESPR on the horizon, sustainability claims and product design will soon require even greater scientific proof and traceability.

Yet regulation is not just a burden – it’s a catalyst. The path forward lies in intelligent, innovation-driven reformulation. Base oils and additives are at the heart of this transition. While mineral oils remain dominant due to cost and availability, adoption of synthetic options such as PAOs and GTLs, as well as plant-derived technologies, is growing. These alternatives are increasingly meeting technical and performance benchmarks, with biobased options often also delivering improved environmental footprints.

This is why initiatives like the Nynas EVO range are so important. Lowering the product carbon footprint through targeted base oil development is a concrete and credible step – not just towards compliance, but towards genuine transformation. The lubricants industry is ready to lead this change, provided we are given the regulatory clarity, planning security, and constructive dialogue needed to succeed.

The message to regulators is simple: work with us. Avoid over-engineering. Prioritise feasibility, value creation, and practical innovation. Europe cannot afford to let its industrial base stall under the weight of policy. We need a framework that supports resilience – not a straitjacket that holds it back.”

“More and more customers are making a successful transition to EVO grades”

"Since the peak in 2019, prior to the COVID-19 pandemic, the base oil market has stabilised at a slightly lower level. This is partly due to reduced production volumes in the automotive industry and declining demand from the metalworking sector.

Having said that, Nynas base oils remain particularly well suited for high-performance applications, such as greases used in electric vehicles. Naphthenic base oils are known for their excellent solvent power, which enhances additive solubility, keeps residues dissolved, and improves compatibility with various materials. Their outstanding low-temperature performance is also highly valued across a wide range of industries.

We are especially pleased with the positive reception of our EVO portfolio, launched in late summer 2024. These EVO grades deliver the same high quality and performance as conventional oils, but with up to 25% lower CO2 emissions – thanks to the use of biobased feedstocks in the processing.

More and more customers are making a successful transition to EVO grades, and we are confident this encouraging trend will continue. We’re proud to offer innovative, sustainable base oils that meet customer expectations while advancing environmental goals.”