We caught up with Shell to discuss industry innovation, key challenges, and what’s next for the lubricants sector ahead of Lubricant Expo Europe 2026.
As a market leader, what can other companies in the lubricants industry learn from Shell’s approach?
Shell’s approach highlights the importance of factoring in potential market changes early instead of addressing them only after the fact. The lubricants industry is evolving quickly, and long-term success depends on understanding how technology, regulation and customer expectations intersect. Another important element is taking a holistic view of the value chain. Lubricants today are part of broader efficiency, sustainability and reliability discussions. By integrating technical expertise, data, and proximity to OEMs and customers, it becomes possible to deliver solutions that go beyond the product itself. Close collaboration with customers ensures product development reflects real operating conditions, not just lab performance.
How are you adapting to the current challenges facing the lubricants sector and the broader energy transition?
The lubricants sector is currently navigating a complex environment shaped by energy transition pressures and changing regulatory frameworks. Our response is to maintain portfolio flexibility, ensuring we can support customers across different stages of their transition. This includes continued development of advanced base oils and next generation formulations, while also optimising and strengthening conventional products where they remain essential. At the same time, we are enhancing efficiency across manufacturing, supply chains and digital tools to remain competitive in a more demanding environment. Adaptation also means investing in people and capabilities, ensuring the organisation has the skills required to manage both technological change and evolving customer expectations. As of today, we are facing a highly challenging situation driven by the Middle East crisis. The full impact and duration remain unclear, making close collaboration with our customers more important than ever.
What are you seeing from your customers with regards to changing needs, driving forces and evolving demand?
Customer expectations are increasingly shaped by sustainability, total cost of ownership and transparency. While performance remains a fundamental requirement, sustainability is now becoming a core decision driver — not only for finished products, but also for adjacent areas such as raw materials. On the performance side, customers are asking more of their products in terms of efficiency, durability and lifetime performance. This is driving innovation in areas such as high‑performance, OEM‑approved 0W lubricants, bespoke application‑specific solutions, and formulations designed to extend oil drain intervals. These developments help reduce waste and lower total cost of ownership, while also supporting broader operational and environmental objectives. At the same time, customers increasingly expect clear, transparent evidence to support their choices. They want to understand how lubricants contribute to their overall efficiency improvements, equipment protection and sustainability goals.
What approach are you taking to balance sustainability, cost, and performance in the development of next-generation lubricants versus conventional formulations?
Balancing sustainability, cost and performance calls for a pragmatic, application‑focused approach. As customers progress at different speeds, both next‑generation and conventional lubricants play a role in supporting a gradual, credible transition without compromising performance or economics.
The transformation at the Shell Energy and Chemicals Park Rheinland, Germany is expected to significantly reduce Scope 1 and 2 emissions through electrification. What have been the biggest technical or operational challenges in delivering this transition while maintaining ongoing production?
Integrating large‑scale electrification into a live industrial site has been a major challenge, requiring upgrades to power infrastructure while maintaining safe, reliable operations. At Shell Rheinland, the transformation had to be carefully phased to avoid disrupting supply, with construction and commissioning carried out alongside ongoing production. The experience highlights that industrial decarbonization is as much about managing complexity, safety and continuity as it is about deploying new technology.
From energy sourcing to lubricant production, Shell is fundamentally transforming the way it operates – could you elaborate on this shift?
We are moving away from the traditional refinery model toward an integrated energy and chemicals park. This means looking at energy supply, production processes, products and emissions as one interconnected system rather than as individual elements. Practically, this involves a greater use of electricity, renewable energy, renewable hydrogen and alternative feedstocks, alongside a stronger focus on higher‑value products such as base oils and chemicals. The goal is to reduce carbon intensity significantly, while maintain industrial competitiveness. This system‑level approach allows us to adapt more flexibly to a changing energy landscape and supports our ambition to deliver lower‑emission products that meet future customer and regulatory expectations.
Moreover, the Shell Lubricants Hub in Hamburg is undergoing a comprehensive transformation to become a more sustainable, modern and competitive supply hub, aligned with Shell’s strategy to deliver more value with less emissions. This includes increasing efficiency and integrating digitalisation and automation to optimise production processes, reduce emissions, and future‑proof the site for evolving customer and market needs.
The Shell Rheinland transformation represents a major shift from traditional refining to producing Group III base oils. How do you assess the long-term demand outlook for these products, particularly with the rise of electric vehicles and changing mobility trends?
Mobility is clearly changing, but the need for high‑performance lubricants isn’t going away. What we’re really seeing is a shift toward more bespoke, specialised, higher‑quality products. Today’s engines, hybrids and many industrial systems place greater demands on lubricants to improve efficiency, durability and emissions. At the same time, new applications are emerging — electric vehicles still need lubricants, for example for gearboxes, cooling and e‑fluids. Group III base oils are particularly well suited to these uses because of their clean and consistent performance. With the planned capacity at Wesseling, we’re addressing a market that remains structurally important in Germany and across Europe, which gives us confidence that high‑quality base oils will continue to play a key role in future mobility and industry.
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