European Union aims to be the first carbon neutral continent in 2050 with the European Green Deal announced on 11 December 2019. This goal means a new growth strategy based on renewable energy and the determination of new climate change oriented policies in almost every field from industry to agriculture and from trade to logistics within the European Union.
The 2020 EU Circular Economy Action Plan (CEAP) is an important roadmap that reflects the spirit of the European Green Deal. The “Fit for 55” package of 14 July 2021 foresees a series of legislative changes to the EU’s climate, energy, land use, transport and taxation policies to achieve a 55% emission reduction by 2030 compared to 1990 levels.
After all these steps, an important stage of this long journey started in 2023. Entering into force on 1 October 2023, Carbon Border Adjustment Mechanism (CBAM), which affects international trade and covers elements of the circular economy, imposes responsibility on countries exporting to the EU and addresses decarbonization of production processes in a much broader context.
The effects of CBAM, which initially covers the iron and steel, aluminum, fertilizer, electricity and cement sectors, will also show itself in the lubricants sector in time. Especially the transition to sustainable energy will become one of the important agendas of the lubricant industry with the widespread use of electric vehicles.
Contributing to the preparation of the lubricant industry for the circular economy with innovative products such as NYTRO BIO 300X and NYTRO® RR 900X, Nynas takes steps to inspire its stakeholders with its production strategy developed in line with the UN Sustainable Development Goals and the European Green Deal. On the threshold of 2024, we had a pleasant talk with Nynas Türkiye General Manager Güney Devrim İldiri about Nynas’ production strategies.
General Manager of Nynas Türkiye Güney Devrim İldiri: In Energy Transition the First Step Taker Wins
Güney Devrim İldiri, General Manager of Nynas Türkiye, who lectures on global energy policies and energy transition at Galatasaray and Koç Universities, is known for his expertise on circular economy and sustainability. We discuss with İldiri the successful implementation of circular economy policies at Nynas, where high-quality bitumen and specialty naphthenic oils that can be 100% reused or recycled in most cases are produced, as well as the company’s innovative products and developments in the energy transition in 2023.
How was 2023 for the lubricants and energy sector in general?
The events of the last year, such as the energy crisis, war and inflation, which have put everyone to the test at the international level, have created a greater demand for adaptation and innovation. In the second quarter of 2023, I believe that the need to be positioned to meet long-term trends while managing short-term uncertainties has increased. It would not be an exaggeration to describe the current period as a turbulent one, characterized by uncertainty and significant social changes. Fast and slow developments are intertwined, making it difficult to assess phenomena and trends and thus to predict what we can expect in the future.
However, this does not mean that we should question the value of long-term planning. On the contrary, in difficult times it is necessary not only to focus on the current challenges, but also to take actions that will lead the company you manage to success in the longer term. Another trend that will gain importance is the transition to a circular economy. This is an area where Nynas is at the forefront, as we proved by the launch of the NYTRO® RR 900X.
In 2023, the EU launched the first phase of the CBAM regulation. Can we say that the energy transition has become a much more prioritized agenda in the process that started with the Green Deal?
It is possible that every year from now on, we will face new rules and regulations and stricter measures on sustainability and circular economy. Because it has become an obligation for all of us to leave the planet we live on as clean as possible for future generations. As the standard of living and economic growth increase worldwide, the demand for energy rises, and limited resources are insufficient to meet this demand. Therefore, improving energy efficiency becomes even more critical. I anticipate a 30% increase in electricity demand over the next 7 years, driven by the widespread adoption of electric vehicles. In this case, it is an indisputable fact that our need for new smart transformers intended for renewable energy sources will be greater than it is today. These transformers will require oils that help maintain power quality, reduce greenhouse gas emissions, and adapt to smart grids, aiming to minimize electricity losses and empower the future. I believe that the importance and market share of companies producing environmentally friendly and high-performance transformer oils, as well as specialized oils used as raw materials in manufacturing, will increase in response to changing trends and the need to meet growing demand. As a result, I believe that Nynas will strengthen its leadership in the market.
The energy transition, one of the fundamental goals of the 21st century, stands at the forefront of significant steps taken towards a sustainable future. I foresee that those who adopt a 360-degree perspective, looking at the world from all angles, will be successful. At Nynas, we have strengthened our position in the global market with the satisfaction of having introduced our specialized transformer oils to the market after intensive R&D efforts for a sustainable future. Today, Nynas NYTRO is used in over 170 countries and in 35% of transformers worldwide. Therefore, Nynas’ global success and leadership in its field is not a coincidence but is closely associated with its ability to accurately interpret all these developments.
How does Nynas manage to associate a limited natural resource such as oil with the concept of sustainability?
When it comes to oil, sustainability is not the first word that comes to mind. After all, we use millions of barrels of oil every day, and a significant portion of it ends up being consumed and lost. However, at Nynas, we have a very different approach. Yes, we use the limited resource of oil, but we do not produce fuel. Instead, we extract sustainable products with a long lifespan from petroleum.
We have prioritized biological based sustainability in both investment decisions and the day-to-day operations at every level of the company. With a new strategy, we have taken significant steps towards achieving the long term goal of reducing emissions by 2030 and becoming completely climate-neutral by 2050. Our efforts encompass a wide range of initiatives, including the introduction of bio-based and re-refined special products to the market.
NYTRO BIO 300X, our innovative product in the portfolio, emerged from years of intensive research. This 100% renewable and biodegradable insulation fluid offers impressive cooling performance with its ultra-low viscosity. Our product, surpassing the IEC 60296 specifications and featuring biodegradable properties, stands out with superior oxidation stability and a fully recyclable structure. NYTRO BIO 300X becomes an ideal choice for all types of transformers, including non-hermetic transformers, by providing higher oxidation stability compared to current mineral and vegetable oil based insulation liquids in the market.
Another innovative product in our portfolio, NYTRO® RR 900X, is another example of Nynas’ circular production model. With its unique refining technology, we offer customers a premium transformer fluid that provides at least 70% less greenhouse gas emissions over its lifespan compared to pure transformer oil. Accordingly, we continue to believe in the importance of circularity alongside bio-based products in our industry.
What benefits do naphthenic oils provide for grease manufacturers in terms of producing sustainable products?
Naphthenic base oils in grease production often have significant advantages compared to paraffinic oils. This information is generally accepted in many parts of the world. The key advantage lies in the favorable solubility properties offered by naphthenic oils. The primary feature to consider when choosing which oil to use is solubility.
Another crucial aspect in grease production is that reduced CO2 emissions lead to increased profitability. This simple yet significant message emerges from a new energy consumption study in industrial-scale grease production, establishing a novel relationship between environmental and economic goals. The results obtained at Nynas demonstrate, for the first time, how grease manufacturers can achieve a sustainable, energy-efficient, and profitable production process by making intelligent choices regarding the base oil and technology they use. The study, carried out by Nynas in collaboration with reactor manufacturer Stratco and grease manufacturer Eldon’s SA, is a full-scale continuation of a pilot-scale study conducted in the Nynas / Stratco partnership. This study revealed the potential to reduce energy consumption per unit weight of produced grease by approximately 12%.
For this industrial-scale study, we produced eight batches of 8 tons of lithium-based grease. We utilized a pressurized (Contactor) reactor and a conventional open-water heating boiler for the ‘cooking’ stage of the two-stage process, allowing us to compare the energy consumption impact of two alternative technologies.
The team used paraffinic Group I base oils and hydro-processed naphthenic oils, as well as a blend of these two API classes, to assess the impact of different base oils. Additionally, two average viscosity grades (100 and 220 cSt, respectively) were employed in the evaluation. In line with the expectations from the pilot-scale study, the full-scale research concluded that energy consumption and related CO2 emissions in the energy-intensive production activities of the lubricating oil industry can be significantly reduced.
Can you tell us about your 2024 projections for the world and Türkiye? What are the targets of Nynas Türkiye in the upcoming year?
As Nynas Türkiye, we have successfully increased our sales volume with a consistent upward trend over the past five years. Next year, we plan to expand our market share by increasing our sales volume beyond the projected market growth. Prioritizing customer satisfaction, we aim to achieve this goal through innovation and effective marketing strategies. In this process, we aim to maintain our leadership in the industry by establishing strong business partnerships and providing customer-centric solutions. We aspire to continue adding value to our customers in the future, with the goal of achieving sustainable growth and success together. We aim to strengthen our impact in the industry as Nynas Türkiye by establishing stronger connections with our customers and adapting quickly to changing market dynamics.
