Digital Feature: How decarbonization is transforming the lube oil industry
F. AL-SHIHABI, KPMG Middle East, Saudi Arabia
As industries worldwide confront the realities of climate change, the lubricant (lube) oil sector is under growing pressure to minimize its environmental footprint. Lube oil plays a critical role in keeping engines, machinery and industrial systems operating efficiently, but its traditional production, packaging and end-of-life management contribute significantly to greenhouse gas (GHG) emissions.
Decarbonizing the lube oil value chain, using low-carbon intensity feedstocks, advanced refining processes, advanced blending formulas, sustainable packaging and circular approaches to used oil, is no longer optional, it is a vital step for the industry to align with global net-zero targets and ensure long-term resilience. At the same time, improving lubricant quality plays a critical role in increasing engine efficiency and extending oil service life, thereby reducing the frequency of oil changes and minimizing associated lifecycle emissions.
Lube oil production and innovation. According to the International Energy Agency (IEA), oil and gas operations—including extraction, processing and refining—account for approximately 5.1 Gt CO2e annually, or about 15% of global energy sector emissions. To remain on track for net-zero by 2050, these emissions must fall by more than 60% by 2030.1 Solutions such as electrifying processes, cutting methane leaks, waste heat recovery and using low-emissions hydrogen, are directly applicable to lube oil production, particularly in energy-intensive refining steps like hydrotreating and hydroisomerization. This is in parallel to the improvement in process refining yield improvement by deploying new refining technologies and catalysts.
Literature highlights that lubricant lifecycle emissions are not limited to production. From crude to disposal, a single liter of lubricant can generate more than 3.5 kg CO₂e.2
Efficiency improvements in base oil refining have contributed to notable reductions in carbon intensity. According to Concawe, mainstream refineries emit on average 200 kg CO2/t of crude oil processed, with variations depending on refinery configuration and feedstock mix. In the European Union, continuous investments in energy integration, cogeneration and advanced catalyst systems have enabled an annual energy efficiency improvement of nearly 1% since 1990.3
The journey of lube oil begins with crude oil extraction, followed by vacuum distillation to separate heavier fractions suitable for base oil production. These base oils undergo further refining processes such as hydrotreating, hydroisomerization, dewaxing and other processes, enhancing their viscosity, stability and longevity.
Recent innovations in catalyst technology and feedstock selection are driving both product quality improvements and emissions reduction. Advanced catalyst systems combining nickel-molybdenum (NiMo) or platinum (Pt) acid zeolites play a crucial role. These catalysts promote hydrogenation and isomerization reactions under milder conditions, increasing the yield of Group II and Group III oils.4
Producers are also blending biomass-derived feedstocks with conventional inputs to create lower-carbon base oils. These bio-based oils perform similarly to fossil-based ones but have less carbon footprint and can be processed using existing infrastructure.
In parallel, scientists are exploring entirely renewable base oils. A study by Sibao Liu et al. shows that non-food biomass can be converted into high-performance lubricants with up to 90% yield using tailored chemical structures, offering both performance and sustainability without heavy reliance on additives.5
Innovation does not stop at production. Digital monitoring tools help reduce lubricant waste during use. In one example, Finnish company Lassila & Tikanoja installed real-time oil monitoring across its hydraulic systems. This action reduced oil use by 13,400 liters over 4 yrs, saving around 10 tpy of CO₂e. They also cut lubricant-related emissions by up to 80% through smarter maintenance without affecting performance.6
Packaging and handling of lube oil. Modern lubricant packaging is evolving to meet increasingly complex demands for safety, sustainability and performance. To ensure product integrity throughout transport and storage, packaging must adhere to stringent safety standards designed to prevent leaks, contamination and accidents. At the same time, growing regulatory and environmental expectations require packaging solutions that minimize carbon emissions and environmental impacts across their entire lifecycle. In parallel, manufacturers are optimizing packaging designs to improve performance efficiency by reducing material use and enhancing handling and distribution. Achieving this balance is critical. While traditional rigid plastics and metals have historically provided the necessary protection, they also present significant challenges in terms of disposal and GHG emissions. Consequently, the lubricant industry is undergoing a transition toward more sustainable, low-carbon packaging alternatives that can maintain safety and performance while addressing environmental concerns.
TotalEnergies has been at the forefront with the integration of 50% post-consumer recycled (PCR) high-density polyethylene (HDPE) in its premium lube oil bottles, launched in France and Belgium since September 2023. These bottles retain the same weight, design and performance while significantly reducing the carbon footprint.7 The company also introduced eco-efficient 20-liter cans that are 7% lighter, featuring caps with 50% recycled material and 25% lighter than traditional caps. The launch in France and Belgium is expected to reduce CO2 emissions by approximately 14.6%, with a total saving of 280 t of CO₂eq annual reduction in the local market.8 Further driving packaging innovation, the Quartz Box offers game-changing efficiency and increases sustainability: they use 86% less plastic and recyclable cardboard and improve shipping palletization by 20%.
Lightweighting and design optimization reduces raw material demand, shipping weight and CO2 emissions per liter delivered without compromising safety or performance.
Extending oil life and performance. Beyond production and packaging, extending lubricant life is key to decarbonization. Modern additives have enabled lubricant change intervals to increase from 5,000 km in legacy vehicles to upwards of 30,000 km in modern engines. Bio-based or biomass-balanced additives further support environmental goals by reducing the emissions linked to additive manufacture and enhancing overall oil performance. The result is less frequent oil manufacture, transport and disposal, effectively lowering cradle-to-grave emissions.
Premium long-life lubricants formulated with Group III or IV synthetic basestocks and enhanced additive packages enable original equipment manufacturer-approved drain intervals of 15,000 km–24,000 km, with some even reaching 30,000 km, compared to legacy intervals of 5,000 km–10,000 km.9 These oils are chemically engineered to provide superior oxidation resistance, low volatility, and improved thermal stability.
Spent oil circularity. Finally, the journey towards decarbonization culminates in the responsible end-of-life management of lube oils. Re-refined oil is derived from used lube oil from which contaminants have been removed. The re-refining of used oil helps minimize the GHG emissions compared to the extraction or processing of crude oil. Lifecycle assessments estimate up to 81% reduction in GHG emissions using re-refined vs. virgin oil.10
In North America, Crystal Clean shared the results of their in-depth lifecycle analysis for its re-refined base oil. The study showed a 77% reduction in cradle-to-gate GHG emissions, yielding just 0.422 kg CO2e/kg compared to approximately 1.85 kg CO2e/kg for virgin base oils.11
Spent-oil re-refining is far more energy-efficient and climate-friendly than traditional base oil manufacturing or uncontrolled waste oil combustion. When re-refining is not feasible, using spent oil as an industrial fuel, such as in cement kilns, is considered a lower priority, but still a preferable alternative to open burning and uncontrolled disposal.
LITERATURE CITED
1 IEA, “Emissions from oil and gas operations in net-zero transitions,” May 3, 2023, online: https://www.iea.org/reports/emissions-from-oil-and-gas-operations-in-net-zero-transitions
2 Perttula, M., “Lubricant emissions and lifecycle,” Fluid Intelligence, online: https://www.fluidintelligence.fi/news/net-zero-lubrication-article3-lubricant-emissions-and-lifecycle
3 Concawe, “The importance of carbon capture and storage technology in European refineries,” July 2018, online: https://www.concawe.eu/wp-content/uploads/Importance-of-CCS-in-European-refineries-Concawe-27-1.pdf
4 Maki-Arvela, P., T. A. K. Khel, M. Azkaar, S. Engblom and D. Y. Murzin, “Catalytic hydroisomerization of long-chain hydrocarbons for the production of fuels,” Catalysts, 2018.
5 Liu, S., et al., “Renewable lubricants with tailored molecular architecture,” Science Advances, February 2019.
6 Perttula, M., “Case L&T,” Fluid Intelligence, online: https://www.fluidintelligence.fi/customers/lt-waste-treatment
7 TotalEnergies, “TotalEnergies Lubrifiants is accelerating the incorporation of recycled plastics into its lubricant bottles with TotalEnergies Polymers,” November 15, 2023, online: https://polymers.totalenergies.com/latest-news/totalenergies-lubrifiants-accelerating-incorporation-recycled-plastics-its-lubricant
8 TotalEnergies, “TotalEnergies Lubrifiants innovates in sustainable packaging,” March 18, 2024, online: https://lubricants.totalenergies.com/news-press-releases/totalenergies-lubrifiants-forefront-innovation-sustainable-packaging
9 Prolube, “The power of long-lasting engine oil for better performance,” online: https://pro-lube.com/long-lasting-engine-oil-performance-benefits/
10 Pentas Flora, “Switch to re-refined oil to reduce carbon footprint,” August 18, 2022, online: https://pro-lube.com/long-lasting-engine-oil-performance-benefits/
11 Crystal Clean, “Crystal Clean re-refined base oil produces 77% less greenhouse gas emissions than traditional base oil products,” March 11, 2025, online: https://www.crystal-clean.com/crystal-clean-re-refined-base-oil-produces-77-less-greenhouse-gas-emissions-than-traditional-base-oil-products/
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