European TV viewers are seeing something new on their screens: advertising extolling the virtues of different brands of gasoline and diesel fuels. Previously, there was an acceptance within the European market that all fuels were refined to meet government-set specifications and that price, not branding, brought customers to service stations. There was no point in advertising brands.
That has now changed as the refiners produce fuels to meet new European Community regulations and can legitimately argue that, because they are processed in different ways, fuels are now different and can be advertised as such.
The motor gasoline and diesel fuels on sale meet the requirement of EC Article 9 of Directive 98/70/ec, which contains fuel-quality specifications that enter into force in two stages.
The first was on Jan. 1, 2000; the second,will be on Jan. 1, 2005.
Fuels now being advertised meet the 2005 specifications, but European refiners are already discussing what will follow. And what will follow is that zero-sulfur fuels will have to be available within the next 3 years in some markets.
Zero-sulfur fuels
During these discussions, the EC has undertaken to conduct an analysis of the need to reduce the level of sulfur in gasoline and diesel further below the 50-ppm level already mandated for 2005, but there is no doubt that zero-sulfur fuels will be required in most markets by then.
The EC says that the introduction of zero-sulfur fuels in limited quantities should not, however, compromise the capacity of fuel producers to supply in 2005 fuels that comply with the mandated sulfur limit of 50 ppm.
The EC says that introduction of zero-sulfur fuels by no later than Jan. 1, 2005, is consistent with the entry into force during 2005 of the new "Euro IV" vehicle-emissions limits and the requirement of some new automotive technologies to use zero-sulfur fuels in order to attain these limits.
The refining industry, essentially, must make these changes because the carmakers have made commitments to reduce the average carbon dioxide emissions of the new car fleet to 140 g CO2/km by 2008 for cars built in Europe or 2009 for Japanese and Korean vehicles.
This is the main plank of the EC strategy to reduce fuel consumption and CO2 emissions from new passenger cars. Carmakers have indicated that delivery of these objectives will be linked to introduction of new direct-injection diesel and gasoline technologies. Moreover, the manufacturers are aiming for a high share of new cars sold (90% in 2008) to be equipped with such technologies. The commission fully expects auto manufacturers to meet their commitments.
Initial quantities of zero-sulfur fuels required will vary among member states, according to the levels of new vehicle sales and the proportion of these vehicles equipped with the new fuel-efficient technologies.
Nonetheless, the EC has said it is important that zero-sulfur fuels be available in sufficient quantities with a balanced geographic coverage in all member states in order to permit the free-circulation of those new vehicles requiring zero-sulfur fuels.
The EC has said that the optimum savings in greenhouse gas emissions will be achieved by phasing in the introduction of zero-sulfur fuels to match the quantity of fuel actually required by new vehicles. This avoids additional costs and emissions of CO2 at the refinery.
It says that optimal reductions in conventional air pollutants will be obtained, however, by a full market penetration of zero-sulfur fuels as early as possible. Some member states and fuel producers have indicated their intention to introduce zero-sulfur fuels ahead of schedule, and the EC has already agreed that Germany be allowed to create incentives for their introduction in 2003.
An added degree of complexity is that reductions in conventional air pollutants are apparently greater for existing gasoline vehicles than for existing diesel vehicles. Also, the fuel-economy improvement of new gasoline vehicles appears greater than that of new diesel vehicles.
The EC accepts that the magnitude of the costs and additional CO2 emissions from refineries is uncertain, as it is difficult to predict how refinery processing technologies will advance in the future. There are already several technologies for gasoline desulfurization that appear to have substantially less impact on CO2 emissions than has been assumed in the preparation of this proposal. There also is likely to be further optimization of desulfurization processes for diesel fuel.
2011 target
Based on an analysis of all the costs and benefits, the EC has proposed a full penetration of zero-sulfur gasoline by Jan. 1, 2011. This, it says, gives a mix of conventional air-quality benefits, fuel cost savings, and overall CO2-emission reductions.
The EC accepts that smaller air-quality benefits and higher refinery costs favor a phased introduction of zero-sulfur diesel to satisfy the demand of new vehicle technologies. The current distribution infrastructure for diesel, however, is designed for a single grade of product (unlike gasoline), and therefore the supply and distribution of two grades may introduce additional complexity and costs to the operations of fuel producers.
This is particularly so where the geographic distribution of refineries allows individual fuel producers to exchange product in order to minimize distribution costs and product movements.
On balance, says the EC, it appears desirable also to set a deadline of Jan.1, 2011, for the full introduction of zero-sulfur diesel, as this will give a clear regulatory signal and limit the period in which multiple grades of diesel can be marketed.
But this deadline will be reviewed at a later stage. The aim of the review will be to appraise the end date in order to prevent any overall increase in greenhouse gas emissions. The review will consider refiners' experience in producing zero-sulfur diesel and associated increases in CO2 emissions, developments in refinery processing technologies, and the effects of these on costs and additional refinery emissions of greenhouse gases.
The review will also consider developments in diesel vehicle technologies, associated fuel requirements, and fuel-efficiency improvements.
The EC says that it is also important that, during the phased introduction of zero-sulfur fuels, new vehicles use the appropriate fuel, because these vehicles will not otherwise derive a fuel-economy benefit. This will be achieved by the provision of adequate labeling at the pump, as is currently the case with the advanced introduction of 50-ppm sulfur fuels.
In addition, it has ruled that carmakers must ensure that buyers of new vehicles also be given adequate information. Misfuelling new vehicles with a higher sulfur fuel (50 ppm) will not damage these vehicles, but neither will it allow expected fuel economy improvements to be delivered.
Manufacturers have said, however, that they expect fuels with a maximum sulfur content of 30 ppm to be available across the community during the transition period. The current proposal, if adopted, will introduce fuels that are essentially sulfur-free.
