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      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, through the use of 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.

      Innovation powering the lubricants industry

      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 over 60% by 2030. Solutions such as electrifying process heat, cutting methane leaks, 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.

      Lubricant lifecycle emissions aren’t limited to production. From crude to disposal, a single liter of lubricant can generate over 3.5 kg CO2e.

      Efficiency improvements in base oil refining have contributed to notable reductions in carbon intensity. Mainstream refineries emit on average 200 kg CO2 per tonne of crude oil processed, with variation 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.

      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 (Ni-Mo) 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.

      Producers are also blending biomass-derived feedstocks with conventional inputs to create lowercarbon 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 nonfood 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.

      Innovation doesn’t stop at production. Digital monitoring tools are helping reduce lubricant waste during use. In one example, a Finnish company installed real-time oil monitoring across its hydraulic systems and reduced oil use by 13,400 liters over four years, saving around 10 tonnes of CO2e annually. It also cut lubricant-related emissions by up to 80% through smarter maintenance without affecting performance.


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      How decarbonization is transforming the lube oil industry

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      Fadi Shihabi

      Partner, Head of Sustainability Solutions

      KPMG Middle East