Increased derivative growth, product adoption to drive TOFA growth – Ingevity

HOUSTON (ICIS)–Leveraging the bio-based nature of derivatives into lubricants markets and continued opportunities to grow the adoption of products into oilfield markets are among the dynamics driving tall oil fatty acids (TOFA) market growth, Ingevity said in an outlook presentation on the pine chemicals and rosin industries.

The global lubricants market has a compound annual growth rate (CAGR) of approximately 3-4%, with the largest demand coming from China and expected further growth globally with continued vehicle electrification.

Vehicle electrification and tighter regulations on vehicle weight are driving demand for lighter, high-strength alloys that require specialised additives to impart lubricity for easier metal formation.

Global carbon-neutrality initiatives are further driving demand for high-performing greases for wind turbines and more environmentally friendly hydraulic fluids for heavy-duty equipment and machinery.

Meanwhile, global oilfield markets continue to recover, with global oilfields chemicals spending expected to increased over the next several years.

Rebounding oil prices and recovering market conditions alongside longer term trends like emissions reductions have companies focused on eco-friendly initiatives and products.

Increased operational efficiencies over time will also increase the call for high-performing specialty additives, an area in which Ingevity is already making progress.

TOFA is derived from crude tall oil, a byproduct of pine wood pulping used by many paper mills.

Derived from animal fats and greases like tallow or vegetable oils like palm and coconut, fatty acids are mainly used in cosmetics and toiletries, as well as for the production of lubricants and plasticizers in rubber and polymer processing.

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