Euro Commission Finalizes 10 Ppm Sulfur Diesel Phase-In From 2005

Diesel Fuel News, May 28, 2001 by Jack Peckham

Brussels -- The European Commission made official at the Hart World Fuels Conference here its proposal to require all 15 member states to ensure "market availability" of a maximum 10 ppm sulfur diesel fuel on Jan. 1, 2005, alongside the 50 ppm sulfur diesel that takes effect Europe-wide on the same date.

No one has defined yet what "market availability" means. But the proposal says that each member state legally has to ensure that new-vehicle owners with sulfur-sensitive catalysts from 2005 would be able to find the fuel reasonably available when they travel.

However, this wouldn't resolve the lack of ultra-low sulfur diesel (ULSD) for Euro truckers and clean-diesel-car owners traveling to and from much of Eastern Europe, Russia, and the Middle East (via Turkey).

Some Euro countries are using (or plan to use) tax incentives to spur early introduction of 10 ppm ultra-low-sulfur diesel ULSD, even well in advance of 2005. But such schemes cause big headaches for refiners who count upon exchange agreements for efficient fuel distribution and rational refining/desulfurization investment throughout Europe. Potential new problem: Euro countries lacking ULSD tax incentives might find it especially difficult to ensure "market availability" of a new 10 ppm fuel if countries with such incentives effectively outbid their neighbors for all the limited regional 10 ppm production capacity.

A similar phenomenon occurred when United Kingdom launched a fat tax incentive for a 50 ppm ULSD two years ago, draining "opportunity" ULSD stream-barrels from neighboring countries. UK refiners wound up exporting higher-sulfur, no-longer-usable domestic fuel in exchange.

Nothing in the Commission proposal (http://europa.eu.int/eurlex/en/com/pdf/2001/en_501PC0241.pdf) requires any other changes such as the higher cetane minimums and reductions in T95/density/polyaromatics sought by vehicle makers.

But the Commission said it would later evaluate possible air quality effects of changing such fuel parameters when used on the advanced, sulfur-sensitive exhaust catalysts being introduced in 2005. If changing these parameters indicates big benefits, then more changes eventually might be approved. Small benefits wouldn't be justified if big increases in refinery [CO.sub.2] emissions are required to make such fuel changes, the Commission report says.

As for non-road vehicle diesel, nothing in the proposed legislation mandates changes to the notional 2,000 ppm sulfur limit today, except that such fuel must conform to 1,000 ppm sulfur limits for heating oil starting in 2008. However, member states are free to extend today's 500 ppm highway sulfur limits to non-road, or else extend the future 50/10 ppm limits to non-road, under the proposal.

Germany, Sweden, Finland and possibility other member states will have made a complete switch to 10 ppm sulfur highway fuels well before 2005. More member states are likely to adopt tax schemes to spur similar developments, well in advance of the 2011 deadline for 100% conversion.

Meantime, a Commission review due by end-2006 could delay the official Euro-wide 2011 deadline for 100% 10 ppm diesel. That would only happen if it were found that refiners would produce far more [CO.sub.2] making the 10 ppm fuel than the [CO.sub.2] reductions achievable with new, more-efficient clean-diesel vehicles.

The proposal now goes to the European Parliament (EP) and the European Council of Ministers, composed of the environment ministers of each of the 15 member states. Given normal delays for parliamentary debate -- expected to center on possible amendments to other fuel parameters, or 100% switchover deadlines -- the legislation probably won't be finalized until late next year.

If the EP and Council ultimately concur on the proposal, then both gasoline and diesel fuel in Europe likely will gradually convert from 50 ppm sulfur limits in 2005 to a 10 ppm sulfur limit in 2011, enabling advanced exhaust catalysts such as combined nitrogen oxides/particulate matter (NOx/PM) traps.

* Favors NOx Traps

This would dramatically push forward innovations such as Toyota's "diesel particulate NOx reduction" (DPNR) system (explained at the Hart conference here; see related story, p7) and Volkswagen's proposed combination of an oxidation catalyst, PM trap and NOx trap, initially targeting VW's heavier "Euro IV" diesel passenger vehicles around 2005.

Both Toyota and Volkswagen say their combined PM/NOx trap systems cannot tolerate regular use of fuels over 10 ppm sulfur because of periodic desulfurization-mode fuel economy penalties, NOx reduction performance penalties, and trap durability issues.

Advanced PM trap systems not only slash PM mass and "toxics" emissions but also control ultra-fine PM, an issue of growing concern both here and world-wide. That's especially important since the Commission also said it's considering whether to propose new standards on "nano-PM" for 2010 vehicles.

The proposed legislation arises out of so-called "Auto/Oil 2" discussions that included vehicle makers, oil companies, Euro Commission officials and environmental advocates. This discussion turned its focus toward a "sulfur review" first pushed by Germany and then others demanding a tougher standard than the 50 ppm limit first proposed by Auto/Oil 2.