Euro Commission Proposes 10 Ppm Ulsd Phase-In From 2007

Diesel Fuel News, March 5, 2001 by Jack Peckham

The European Commission's (EC) latest "Auto-Oil II" discussion paper proposes that a 10 ppm sulfur ultra-low-sulfur diesel (ULSD) be gradually phased-in, starting with a 10% supply requirement on Jan. 1, 2007.

This 10 ppm fuel would phase-in alongside a 50 ppm sulfur ULSD that becomes mandatory Europe-wide in 2005.

The 10 ppm sulfur ULSD supply mandate would jump to a minimum 25% in 2011, although individual countries could petition for three-year derogation of the 25% mandate if they can prove no benefits in greenhouse gas ([CO.sub.2]) reductions. On the other hand, those countries that want to go beyond 25% 10 ppm ULSD would be free to do so.

The 10 ppm ULSD fuel mandate would include "balanced geographic distribution" requirements to ensure that vehicles that require such fuel could obtain it.

Off-road "gasoil" (T85:350[degrees]C) sulfur limits (for mobile machinery and agriculture) would be cut to 1,000 ppm on Jan. 1, 2008, although individual countries could choose to limit off-road diesel sulfur either to 500 ppm or the same specification as for on-highway diesel.

European governments earlier agreed that highway diesel sulfur be cut to 50 ppm starting in 2005, but left it to the "Auto-Oil II" program to recommend other specifications for cetane, distillation, density and polyaromatics limits. The EC also had agreed to consider whether all ULSD should drop from 50 to 10 ppm sulfur in 2008, as recommended by Germany.

However, the EC's "Auto-Oil II" draft proposal falls short of recommendations by most of the Northern European member states to require 100% 10 ppm ULSD by 2007/8.

Nor has the draft EC proposal come up with 2005 diesel specifications beyond the 50 ppm sulfur limit, already agreed-to by "Auto-Oil I."

So, unless the EC makes further changes to "Auto-Oil II" proposal, the outstanding diesel parameter issues would get hashed out in the European Parliament and the Council of Ministers. As a result, a final outcome of future European diesel specifications seems unlikely before 2002, according to Sandrine Dixson-Decleve of International Fuel Quality Center, in Brussels.

* Impact on North America?

This phase-in recommendation in Europe potentially could provoke new debate in North America about how to avoid a disastrous supply shortage of 15 ppm ULSD in 2006. While U.S. refiners and distributors have adamantly opposed a dual-fuel phase-in because of the costs of double-storage, studies by U.S. Dept. of Energy showed that the total costs to refiners and consumers would be far lower with a gradual phase-in than the all-at-once or 80% phase-in schemes favored by EPA (see Diesel Fuel News 12/11/2000, p5).

DOE also said it would be unwise to set a 15 ppm sulfur cap until catalyst developers determine maximum sulfur tolerance for nitrogen oxides (NOx) traps combined with particulate matter (PM) traps, the technology of choice in EPA's diesel emissions regulatory scheme.