GS Caltex is striving to make tomorrow a more sustainable future

By OEM Update Editorial July 1, 2023 11:45 am IST

According to Jayanta Ray, GM Industrial, and OEM, GS Caltex India, achieving a lower carbon footprint is vital to sustainability. While fuels used in the transportation sector contribute significantly to carbon emissions, lubricants have the potential to reduce fuel consumption.

How do you evaluate eco-friendly norms changing the landscape for lubricants?

Lubricants derived from hydrocarbons have detrimental effects on the environment, causing significant contamination of soils and groundwater and accumulating these substances in plant and animal tissues. As a result, with extreme uncertainty and insecurity about the future, there is a growing recognition of the importance of ESG (Environmental, Social, and Governance) principles for sustainable growth and as a crucial aspect of corporate management. Climate change has led to global environmental challenges like droughts and heavy rainfall, prompting countries and businesses worldwide to collaborate in addressing these development issues.

As mentioned by our President and CEO, S.H. Hur, GS Caltex set up a dedicated organisation in 2021 to actively respond to climate issues. As concerned participants, we are working on several projects to develop a roadmap to achieve carbon neutrality, including finding ways to reduce greenhouse gases with a long-term perspective and uncovering business opportunities to secure a new profit pool.

Since 2020, Kixx Lubricants has been striving to create a more sustainable future by developing lubricants specifically designed for eco-friendly electric vehicles and plant-based engine oils.

How has the oil and lubricant industry evolved to meet new demands in the automobile market due to the transition?

Responding to the changes in the future energy sector to adapt to the evolving energy sector and promote the adoption of environmentally friendly vehicles, GS Caltex initiated its electric vehicle charging business in 2019. In 2020, GS Caltex introduced the ‘Energy Plus Hub’, a forward-looking fuel service station that combines mobility infrastructure with lifestyle services. Recognising the shifting preferences of our esteemed OEM customers, many of whom are transitioning to eco-friendly synthetic lubricants, GS Caltex has embraced innovations in the market. 

For instance, Kixx BIO1, a fully synthetic engine oil produced from plant-based base oil, caters to environmentally conscious drivers seeking performance and environmental protection. These new lubricants are part of a carbon-negative, sustainable base oil category. Furthermore, efforts to support a circular economy drive the adoption of recycled base oil, which can be reused in specific applications.

 How is EV industry growth impacting the increasing need for environmentally friendly lubricants?

Electric vehicle (EV) adoption in India stands at 2 percent, but it is rapidly growing, especially in the 2-wheeler and passenger car segments. This surge in EVs has compelled major lubricant companies to introduce a range of fluids specifically designed for EVs, addressing the need for sustainable solutions. The remarkable growth of EVs can be attributed to changes in consumer behaviour, as well as strong policy support and investments from both governments and the private sector. To keep up with the automotive industry’s innovations, Kixx Lubricants, a division of GS Caltex, has conducted extensive research and developed a new product line optimised for EVs. These fluids, formulated with a high-quality base oil and effective additives, enhance the durability and efficiency of EVs. Through close collaboration with manufacturers and thorough research, Kixx aims to continue developing lubricants and fluids that maximise the performance of EVs. As EVs evolve and technologies like high-capacity batteries emerge, the demand for specialised lubricants and fluids is expected to rise.

What demand and growth do you see for automotive and machine tool industry lubricants?

According to a recent study, the global demand for industrial lubricants is projected to experience steady growth, reaching a value of approximately US$28 billion by 2027. Achieving a lower carbon footprint is a crucial aspect of sustainability. While fuels used in the transportation sector contribute significantly to carbon emissions, lubricants have the potential to reduce fuel consumption. In response, lubricant manufacturers such as GS Caltex are actively exploring high-performance, climate-friendly alternatives for their raw materials, starting with base oils.

In India, the automotive lubricants sector is expected to grow at a compound annual growth rate (CAGR) of approximately 4.6 percent until 2027-28, according to the latest report. Additionally, there will be significant growth in the demand for industrial lubricants, driven by sectors such as construction, mining, infrastructure, and manufacturing. These segments are poised to propel the Indian lubricants industry to an estimated value of USD 1.8 billion, as per the latest estimate from a leading consulting firm.

For more information, please contact : wecare@gscaltexindia.com