Methes Energies International Ltd. (OTC PINK: MEIL) has reformulated its lubricants to meet new industry-standardized fluid specifications. The environmental impact of traditional lubricants is well-known, with waste oil causing significant harm to nature and contributing to climate change. However, the rise of bio-based oils (b2 biOils) offers a promising solution to mitigate and eventually drastically reduce these negative effects. The development of environmentally friendly lubricants is not only necessary but also assured for growth.

The World Needs An Oil Change!

Waste oil can severely damage the environment. When poured down the drain or spilled on the ground, it can contaminate groundwater systems. Just one liter of waste oil can pollute up to a million liters of water.

“As the transportation industry evolves to meet the growing demand for eco-friendly vehicles, it must also change its approach to lubricants. By increasing the percentage of renewable and re-refined base stocks in our formulas, we expand our green footprint through our bio-based/biodegradable b2 biOils,” said Carol Loch, CEO and Chairman of Methes. “Our products are designed to biodegrade quickly and nearly completely within 28 days.”

b2 biOil was created to address concerns about motor oil’s environmental impact, from production to improper disposal. This eco-friendly offering meets growing consumer demands and complies with government requirements for domestically sourced biodegradable products.

Market Overview

The engine oil market is estimated at 22.70 billion liters in 2024 and is expected to reach 26.89 billion liters by 2029, growing at a CAGR of 3.45% during the forecast period (2024-2029). (Source: Mordor Intelligence)

Here are some key points about the lubricant sector:

• Market Growth Drivers: Increasing automotive production and sales, and the adoption of high-performance lubricants, are significant factors driving market growth.
• Market Restraints: Extended drain intervals and the modest impact of electric vehicles (EVs) are expected to restrain industry growth.
• Growth Opportunities: The automotive industry in the Middle East and Africa, along with upcoming construction projects in North America and APAC, are likely to create lucrative opportunities.
• Regional Dominance: The Asia-Pacific region is expected to dominate the market and witness the highest CAGR during the forecast period.

Engine Oil Market Trends

Increasing Demand from the Automotive Industry

Engine oils, which are 75-90% base oils and 10-25% additives, are essential for lubricating internal combustion engines. They reduce wear and tear, protect against corrosion, and ensure smooth operation by creating a thin film between moving parts to enhance heat transfer and reduce tension.

The increasing production and sales of light-duty vehicles are directly impacting engine oil consumption. According to the International Organization of Motor Vehicle Manufacturers (OICA), global motor vehicle production reached 85,016,728 units in 2022, a 5.9% increase from the previous year. Commercial vehicle production also grew, reaching 57.49 million units in 2022.

In the United States, light vehicle retail sales reached 13,754.3 thousand units, the lowest since 2021. Meanwhile, automobile production in Germany reached 3.4 million units in 2022, a 9.6% increase from 2021. These factors are expected to positively influence the engine oil market in the coming years. (Source: Mordor Intelligence)

Lubricant Biodegradability

Biodegradability refers to the chemical degradation of lubricants by microorganisms, transforming the lubricant into CO2. A lubricant is considered biodegradable if 60% or more of the test material converts to CO2 within 28 days.

Bio-Based Lubricants

Bio-based lubricants, derived from renewable raw materials such as animal fats, vegetable oils, or eco-friendly hydrocarbons, offer significant advantages over mineral oils. They have exceptional lubricity, high flash points, high viscosity indices, and good shear resistance.

Bio-based lubricants can be used in both open and closed systems. Oils used in open systems, like those in chainsaws and metalworking equipment, are termed total-loss lubricants because they escape during operation.

Conclusion

The solution to oil-related environmental contamination is underway, and the growth potential in this sector is immense. Methes Energies represents a strong environmental proxy as the lubricant industry strives to correct past mistakes and move towards a sustainable future.