PAO Production Cost Analysis 2021

Polyalphaolefin or PAO is by far the most significant synthetic base oil utilised in commercial and automotive lubricants. It is known as a synthetic hydrocarbon or SHC as it mimics the best hydrocarbon (branched) structure found in mineral oils. PAO is not composed of any ring structures, double bonds, sulphur, nitrogen components, or waxy hydrocarbons. The absence of these structures or materials results in an extremely non-polar base oil, having a high viscosity index of approximately 130, superior low-temperature flow, good oxidation stability, excellent pour-point characteristics, and compatibility with mineral oils, paints, and seals commonly found in lube oil systems. 

Since they have a controlled structure, PAOs do not hold lighter and more volatile hydrocarbons. This reduces their volatility, creates less hydrocarbon tailpipe emissions, and raises the flashpoint. PAOs are utilised in areas such as automotive fluids or hydraulic gear and bearing oils. It is used in the items that are often utilised in extremely cold climates or hot applications. They are also utilised for base fluids in some wide temperature range greases.

Procurement Resource provides an in-depth cost analysis of PAO production. The report incorporates the manufacturing process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges. The study is based on the latest prices and other economic data available. We also offer additional analysis of the report with detailed breakdown of all cost components (Capital Investment Details, Production Cost Details, Economics for another Plant Location, Dynamic Cost Model).


PAO Production from polymerization
  • PAO Production from polymerization

    This report provides the cost structure of PAO production by the polymerization process. The process involves the polymerization of alpha olefin to get polyalphaolefin.

    Analysis Basis: Germany

    Period of Analysis: Q1 2021

    Starting at USD 1799

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