This market is no low-hanging plum, though. There are requirements for specific manufacturing and security of supply that blenders face to make food-grade lubes, Lawate told Lube Report, and the volumes may not justify the investment in a complete food-grade lubricant plant.

What kind of volumes? U.S. demand for food and beverage lubricants hit 66 million gallons in 2004, according to a study by The Freedonia Group in Cleveland, Ohio. Such amounts could easily be satisfied by just a handful of lube companies. However, industry sources estimate that 60 to 80 percent of U.S. food manufacturers use no food-grade lubricants at all, so there is strong potential for increased consumption.

Still, blenders who want to tackle this market face daunting obstacles. First, there are strict regulations covering the use of lubricants in food-processing applications. Food-grade lubricants are never supposed to touch the edibles, but wherever there is any chance that they could, U.S. federal regulations say that only H-1 incidental food contact lubricants are allowed (21 CFR Section 178.3570). In food and beverage plant equipment where theres no risk of food contact, such as an air conditioning compressor, the less stringent, nontoxic H-2 lubricants are permitted.

Lubricants meeting these standards can seek approval and registration from NSF, a public health foundation in Ann Arbor, Mich., which maintains online listings of H-1 and H-2 food-grade lubricants. NSF also maintains a registry for approved ingredients, listed as HX-1 and HX-2. Many countries worldwide reference the U.S. rules on food contact, and NSFs listings are used by food safety inspectors and food processors worldwide to ensure products comply with the guidelines.

A second obstacle to growth is resistance in the food-processing industry, where objections are heard on both performance and cost concerns. Because H-1 lubricants must meet be virtually odorless and colorless as well as nontoxic, most are based on technical white oils. Even so, they typically cost twice as much or more than regular lubes. Using polyalphaolefin, silicone or polyalkylene glycol base fluids can pump up the performance, but also pumps up the price considerably.

Also, due to exposure concerns, there are restrictions on the types and quantities of food-grade lube additives that may be used. Some of the most cost-effective chemistries used in motor oils, such as the antiwear agent ZDDP, are banned. You must use only a certain set of additives approved by the Food and Drug Administration, Lawate explained.

Lubrizols strategy for the food-grade lubes arena involves a multi-pronged approach. It recently expanded its 4300FG line of additives for incidental food-contact lubricants, adding new components such as a thickener, tackifier, antiwear agent and antioxidants. These have received NSF approval for use in H-1 formulations. Lubrizol also created new additive packages for making incidental-food-contact hydraulic fluids and gear oils, and optimized them for use in white oil, vegetable oil or polyalphaolefin base stocks.

The highest hurdle in selling these additives though, may be the limited number of lube blenders able to make food-grade lubricants. Manufacturing food-grade lubes requires a dedicated plant, to prevent blending vessels, piping, storage tanks and packaging equipment from being contaminated by unapproved products.

Denny Madden, senior vice president of sales and marketing at Amalie Oil Co. in Tampa, Fla., says his company was tempted by the food-grade lubes market, but had to pass on it. Weve looked at it time and again, but we make so much motor oil that our lines are too contaminated with ZDDP to really consider it. We do have one separate facility with zinc-free lines where we can store and ship orchard spray oils, which are a very clear product. But food-grade lubes might be a niche weve missed.

So the final arrow in Lubrizols quiver: an offer to supply blended food-grade fluids. This is strictly a service offering, Lawate emphasized, responding to the question of whether this puts his company into competition with blenders. We are not setting up a private-label shop. Blended products are strictly a service for our customers who require them.

Lubrizols focus will remain on additives and additive packages, he continued. If a customer is looking for the convenience of buying components that go into these products and that pass the tests that are needed, Lubrizol can do it. At the same time, the plan is to be a global supplier, using Lubrizol facilities to provide additives and fluids that meet global and NSF requirements.

Few blenders may even feel threatened by the move. Were not in the food-grade business, so if they want to get into it, it doesnt give me gas, shrugged the marketing vice president at one independent blender, who declined to be identified. Amalies Madden, on the other hand, welcomed the concept, and wondered if other food-grade lubricant additive suppliers might follow suit.