
An expert’s view on construction companies and their stance on biodegradable lubricants
A popular misconception is holding companies back from accessing the latest sustainable technologies: read how biodegradable lubricants from Shell are changing this mindset through increased performance, lower environmental impact, and a reduction in total cost of ownership.

Dominic Losco, Lubes Technical Advisor Americas, Shell
With more than a decade’s experience in the industry, Losco is highly experienced in biodegradable lubrication technology. Supporting PANOLIN since its earliest days, he has helped to develop and grow what was a specialist company. What began as a small enterprise has now evolved into a globally recognised brand, with PANOLIN’s biodegradable lubricants joining Shell’s high-quality lubricant range.1 With expertise gained across different roles within PANOLIN, Losco is a technical focal point for the business and a vital bridge between customers and laboratory teams.
When it comes to biodegradable lubricants in the construction industry, there are various misconceptions that may prevent companies from investing.
Early biodegradable lubricants were designed to deliver a positive environmental impact compared to conventional mineral-oil-based lubricants. However, they often carried lower performance characteristics (such as reduced protection from oxidation) than their conventional counterparts. This caused end users to conduct frequent oil changes, leading to a likely increase in maintenance costs.
The latest generation of synthetic biodegradable lubricants has seen technological advancements, enhancing performance elements like oxidation stability and thermal stability while providing environmental benefits.2 Despite this, misconceptions around their performance persist creating hesitance for companies to switch to biodegradable lubricants, opening them up to the risk of falling behind in environmental sustainability.
How the latest technology is changing perceptions around performance
With increasing environmental concerns and the need for consistent equipment performance, the opportunity for industry experts like Dominic Losco, Lubes Technical Advisor Americas, Shell, is to reopen the conversation around biodegradable lubricants and demonstrate what they can do for companies today.
He’s more than used to dealing with the perceptions around performance. “People think that biodegradable lubricants naturally come with low performance,” Losco says. “The misconception likely comes from the use of products based on vegetable oils, which tend to be less expensive than other biodegradable lubricants. Companies often choose them based on price without understanding the performance drawbacks that come along with biodegradable vegetable-oil-based lubricants.”

Some of the benefits that coincide with choosing a saturated synthetic ester-based biodegradable lubricant, such as Shell PANOLIN S4 HLP Synth hydraulic fluid, are longer oil drain intervals3 and reduced system deposits that result in lower maintenance requirements and costs.4 These are clear advantages in comparison to naturally occurring vegetable oils, as those are not suitable for high-performance equipment.5
Dominic Losco, Lubes Technical Advisor, Shell“Previous experiences in construction can often lead to a negative view of biodegradables in general. So, even with the advances in technology, when they hear the word ‘biodegradable’, people think back to all the problems they had with an inferior product and close the door on the idea.”
"There’s a lot more to selecting your lubricants than looking at their cost,” Losco continues. “With the latest synthetic biodegradable lubricants, you have the potential for longer oil change intervals and more efficient performance, which can reduce the CO2 emissions generated by your operations. There’s also the potential to avoid costly unplanned downtime, reduce maintenance costs and extend equipment life, leading to a lower total cost of ownership (TCO) across equipment operations.”4
What do we mean when we talk about ‘biodegradable’ lubricants?
Why should construction companies be looking to use biodegradables in the first place? To understand this better, it’s worth exploring what makes a lubricant biodegradable. Firstly, there are two definitions you need to know:
- Readily biodegradable – a product where at least 60% of the lubricant biodegrades within 28 days and features low ecotoxicity (making sure it offers a reduced impact on organisms when exposed to the environment). Shell PANOLIN lubricants feature these properties, which also form part of key industry standards.6
- ‘Environmentally Acceptable Lubricants’ (EALs) – As defined by the United States Environmental Protection Agency (EPA), these products must be readily biodegradable, have low ecotoxicity and be non-bio accumulative (meaning they aren’t passed up the food chain following ingestion). These standards are certified by third-party ecolabels, such as EU Ecolabel.7
Where can you use biodegradable lubricants?
Readily biodegradable lubricants cover a range of applications, including:
Hydraulics
Engines
Pivot points
Swing gears
Transmission fluids
Final drive
This means companies can operate excavators, bulldozers, loaders, and other heavy machinery with confidence, particularly in environmentally sensitive areas.
For Losco and his colleagues on the Shell PANOLIN team, ‘readily biodegradable’ is the standard they refer to when they call a product biodegradable. But how do these products differ from conventional mineral-oil-based products?
“Without getting too technical, it's useful to know how biodegradation occurs,” explains Losco.8,9 “When the lubricant is exposed to the environment, microorganisms consume it. That’s how it breaks down. When you look at conventional mineral-based oils, they can’t be biodegradable. Microorganisms can’t consume them – or at least it’ll potentially take a considerable amount of time to happen. For biodegradables, you’re looking at a much more rapid process.”
Environmental impact is the biggest difference between biodegradables and conventional mineral-oil-based lubricants, but, according to Losco, there are also performance factors that can make biodegradable lubricants an effective choice for construction operations.

“The synthetic esters used in biodegradable products provide oxidation stability, thermal stability and shear protection, meaning you’ll see better performance from the lubricant,” he says. “So, your equipment should see fewer failures and less downtime, helping to reduce maintenance cost. So, as well as prolonging the system’s life, biodegradables can contribute to reduced costs and lower emissions.”
Why construction companies should already be using biodegradable lubricants.
Potential performance benefits aside, there’s a key reason for construction companies to use biodegradable lubricants on their sites. It’s important to note that these performance benefits are specifically associated with biodegradable lubricants formulated with synthetic esters, which offer superior stability and durability compared to vegetable-oil-based alternatives. By reducing the environmental impact of their operations through longer oil drain intervals, they can position themselves more confidently to bid for jobs that might otherwise be out of reach.
“We’re seeing rising interest in using biodegradable lubricants across the sector, with companies making the switch to win contracts in environmentally sensitive areas,” says Losco. “This is a huge catalyst for their use, as is the need to improve company image and deliver on their environmental, social and governance (ESG) goals.”

As Losco highlights, mitigating the environmental impact of spills is a focus area for companies, but not the only one. “When there’s a spill, there tend to be consequences,” he explains. “For instance, if the lubricants get into the groundwater near a site – or if the construction is taking place on riverbeds or near shorelines – it can lead to environmental impact as well as fines against the company. The risk of these additional costs often drives the use of biodegradable lubricants.”
Some jobs – including government contracts – often add the requirement to use biodegradable lubricants. And it’s a type of contract that Losco believes will only become more prevalent. Although, he’s also keen to emphasise that it’s not just about mitigating spills.
Dominic Losco, Lubes Technical Advisor, Shell“Any unplanned downtime on a construction site – especially one in a sensitive area – can be very costly. So, by avoiding it with high-performance biodegradable lubricants, you not only have the equipment running continuously to generate profit, but you’re also not spending any extra on maintenance.”
“If you’re looking to improve operational sustainability to contribute to a competitive advantage, using biodegradables can offer tangible steps towards this,” he says. “Because of their high levels of performance, they can contribute to reduced emissions, they can help reduce maintenance costs and they can help reduce lubricant consumption.10 Plus, you can demonstrate balancing increased demand with reduced environmental impact. It’s a win-win.”
Exploring the barriers to wider adoption
Despite this growing need for biodegradables in construction, one questions remains. Why aren’t companies using them more?
“Price is a key barrier,” says Losco. “If the drivers we’ve talked about aren’t in place, companies will say the price doesn’t make sense to them.”
The higher price of biodegradables compared to mineral-oil-based lubricants paired with the previously mentioned performance misconceptions can cause companies to overlook the benefits in making the switch. It’s why Losco and his team work hard to continue the conversation around the unrivalled protection the Shell PANOLIN range provides for industrial equipment and the environment.11

“I think being able to talk with authority about a wide range of lubricants (including the mineral-oil-based ones) opens the door to conversations about where we’re at currently with biodegradables,” he says. “Once you’ve sparked an interest, you have the chance to share those details around how biodegradables can help to reduce a site’s TCO. Yes, this product will be more expensive per gallon. But, in the long run, there is an opportunity for plenty of savings, as we’re removing all the roadblocks that keep companies from continuing or finishing jobs. We’re offering our clients the opportunity to bid on contracts that require the use of biodegradable lubricants, potentially leading to more project wins and enhanced profitability – all at the same time as improving their environmental impact.”
Supporting a sustainable future for construction
Losco is upbeat about the future of biodegradable lubricants. While the industry is still quite small now, he sees huge potential for growth and the ability to make biodegradables a more integral element of a construction company’s ESG journey.
“We see biodegradable lubricants as extremely complementary to the ongoing electrification of construction equipment,” he says. “Whether it’s cooling batteries or keeping the hydraulic system of an electric excavator running smoothly, I think we’ll see biodegradables used in these applications to promote greater sustainability. It’s something that we’re already working with OEMs on. Also, as the technology develops further, I think we’ll only see the performance of biodegradable lubricants getting stronger with time.”
It’s clear that biodegradable lubricant technology has taken huge leaps forward since its earliest iteration. Regardless of their previous experience, it’s time for construction companies to rethink any past misconceptions and revisit how biodegradable lubricants can help them build a more sustainable future for their company and the environment.
Find out more about how biodegradable lubricants can help you improve the environmental impact and the TCO of your construction sites: https://www.shell.com/business-customers/lubricants-for-business/products/shell-panolin/construction.html
Shell PANOLIN products, suitable for an Excavator
Hydraulic
- Shell PANOLIN S4 HLP Synth
- Shell PANOLIN S4 Hydraulic NSF HI EAL 46
- Shell PANOLIN S3 Hydraulic 46
- Shell PANOLIN S3 Hydraulic EAL
- Shell PANOLIN S4 HLP Synth EAL
Pivot Points
- Shell PANOLIN S5 Grease EAL V320 2
Automatic Greasing System
- Shell PANOLIN S5 Grease EAL A460 0
Engine
- Shell PANOLIN BIOMOT LX 10W-40
- Shell PANOLIN BIOMOT LE-X 5W-30
Swing Gear
- Shell PANOLIN S4 Gear
- Shell Panolin S4 Gear RS 80W90
Final Drive
- Shell PANOLIN S4 Gear
- Shell PANOLIN S4 Gear RS 80W90
Disclaimers:
[1] Wholly owned subsidiaries of Shell plc (“Shell”) in Switzerland, the UK, US and Sweden (Shell (Switzerland) AG, Shell U.K. Limited, Pennzoil-Quaker State Company and Shell Aviation Sweden AB) have completed the acquisition of the Environmentally Considerate Lubricants (ECLs) business of the PANOLIN Group.
[2] Base stock for all Shell PANOLIN products are Synthetic esters (HEES) which provide Saturated ester offers superior oxidation resistance and base-oil stability compared to
the unsaturated.
[3] The product oil-drain interval and maintenance procedures are influenced by equipment type and operating conditions; results may vary. No guarantees are provided. Follow your equipment manufacturer’s recommendations.
[4] In comparison to unsaturated ester type HEES. Shell PANOLIN S4 HLP Synth fluids were developed to increase the oil life, with an outstanding dry TOST life of over 6000 hours (modified ASTM D943 test).
[5] In comparison to unsaturated ester type HEES and naturally occurring vegetable oils, ester type HETG.
[6] Our finished lubricants biodegraded by over 60% after 28 days in the OECD 301 B carbon dioxide evolution test. ASTM D6384-99, Standard Terminology Relating to Biodegradability and Ecotoxicity of Lubricants.
[7] As defined by U.S. Environmental Protection Agency 2013 Vessel General Permit and EU Ecolabel.
[8] EN 17181-2019 specifies a procedure for determining the degree of aerobic degradation of fully formulated lubricants.
[9] Based on an interview with Dominic Losco, Lubes Technical Advisor Americas, conducted by Shell Lubricant Solutions in March 2024.
[10] Shell PANOLIN S4 HLP Synth has an outstanding dry Turbine-oil Oxidation Stability Test life of over 6,000 hours (modified ASTM D943 test) with multiple field examples of lifetime filling. It is the first Bosch Rexroth approved biodegradable hydraulic fluid designed to help equipment operate without interruptions. Shell lubricant services also help to unlock potential reductions in carbon footprint and improvements in operational efficiencies. Monitoring the condition of oils to address and prevent signs of contamination helps customers to extend oil life and protect valuable equipment. Longer oil-drain intervals mean less oil is produced, purchased and disposed of.
[11] Shell PANOLIN was the first fluid listed on Hydraulic Bosch Rexroth (RDE 90245) Rating List http://www.boschrexroth.com/fluidratinglist
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