Diesel Fuel Quality in the Future

Transcription

1 Diesel Fuel Quality in the Future November 2000 Expert Committee for the Quality of Petroleum Products Petroleum Committee Petroleum Council

2 Contents 1. Introduction 3 (1) Measures to Reduce Vehicle Emissions and Regulations on Fuel Quality 3 (2) Movements in the PM Reduction Measures 3 2. Actions against the Changes in the Circumstance of Diesel Fuel Quality 4 (1) History of the Measures for Fuel Quality to Reduce Motor Vehicle Emissions 4 (2) Trends in Overseas Regulations 5 (3) Discussion of Fuel Quality Regulations by the Expert Committee 5 3. Necessity and Possibility to Reduce Sulfur Concentrations in Diesel Fuel 6 (1) Relation with the Technologies for Reducing Emissions from Diesel-powered motor vehicles 6 (2) Possibility to Supply Low Sulfur Diesel Fuel 7 i) Technological Possibility at Refineries in Japan 7 ii) Availability of Importing Low-Sulfur Diesel Fuel 8 iii) Effect of Sulfur Reduction on Other Fuel Properties 8 (3) Impact of Sulfur Reduction on Production Costs 8 4. Conclusion 9 (1) Reduction of Sulfur Concentrations in Diesel Fuel 9 (2) Date to Implement the New Regulation on Diesel Fuel Quality 9 (3) Considerations Required to Strengthen the Regulation on the Sulfur Concentration in Diesel Fuel 10 (4) Voluntary Measures by Petroleum Refiners and Considerations Required for Them 10 (5) Further Improvement of Fuel Quality in the Future 12 List of the Members of the Expert Committee for the Quality of Petroleum Products, Petroleum Committee, Petroleum Council 14 Glossary 15 2

3 1. Introduction (1) Measures to Reduce Vehicle Emissions and Regulations on Fuel Quality To reduce vehicle emissions and prevent air pollution, Japan has implemented stringent regulations on both fuel quality and vehicle emissions, and promoted other policies. In urban areas, however, the air pollution due to nitrogen dioxide (NO 2 ) and suspended particulate matters (SPM) is as serious as ever. As the nitrogen oxides (NOx) and particulate matters (PM) emitted from diesel-powered motor vehicles contribute to the NO 2 and SPM in the roadside atmosphere to a large extent, the measures to reduce the emissions from diesel and other vehicles are particularly important. Therefore, efforts have been made to improve fuel quality and put the technologies to reduce emissions into practical use. To protect the interest of consumers through a stable supply of diesel fuel and petroleum products of proper quality, mandatory regulations are imposed on some items, such as the environment, safety, and health, for which a proper quality level is not ensured through market principles alone. These are based on the "Law on Quality Control of Gasoline and Other Fuels" (hereafter, the "Quality Assurance Law"). To prevent air pollution from motor vehicle emissions in particular, permissible properties and limits are prescribed for automotive fuels based on the "Air Pollution Control Law". Also, the Quality Assurance Law stipulates that the Minister of International Trade and Industry will set standards to make the related products satisfy the limits. (2) Movements in the PM Reduction Measures In January of this year, the Kobe District Court upheld the relation of cause and effect between SPM and health problems in the Amagasaki Pollution Suit. In the wake of this verdict, people have become extremely anxious about the PM emitted from diesel-powered motor vehicles and the effect of such carcinogenic substances on health. Therefore, the Central Environment Council emphasized the regulation on PM and discussed ways to implement the measures to reduce diesel emissions in about two years earlier than the originally scheduled date of

4 Under the circumstances, the Expert Committee has discussed and summarized the standards and support measures for diesel fuel quality to implement the regulations based on the new diesel long-term target (to reduce NOx and PM to below 40% of the level in the existing regulation) while monitoring research results and changes of fuel quality regulations in other countries. 2. Actions against the Changes in the Circumstance of Diesel Fuel Quality (1) History of the Measures for Fuel Quality to Reduce Motor Vehicle Emissions To reduce emissions, the regulation on the diesel fuel used for diesel-powered motor vehicles has repeatedly been strengthened in conjunction with the tightened regulations on emissions from individual vehicles. The 1989 December Report by the Central Council for Environmental Pollution Control was the first to point out the necessity for measures on fuel quality to reduce vehicle emissions; they proposed twostage reduction of the sulfur concentration in diesel fuel on the short- and long-term basis to one-tenth of the present level from 0.5 % to 0.2% and then further to 0.05% in mass (0.1% in mass is 1,000 ppm) (hereinafter, the content is expressed in ppm). Accordingly, petroleum refiners installed or remodeled high-performance diesel fuel desulfurization units and reached the first-stage target (sulfur concentration in diesel fuel 2,000 ppm) by 1992 and the second-stage target (500 ppm) by In Report No. 3, submitted in 1998 December, the Central Environmental Council proposed further reduction of the sulfur concentration in implementing the regulation based on the new diesel long-term target to be attained around 2007, and proposed that the specific permissible limit and date of attainment be set around the end of This allows automobile manufacturers and fuel producers a period for development and investment. Therefore, petroleum refiners are actively promoting the "Technology Development of Automobiles and Fuels for Air Quality Improvement" (JCAP) jointly with automobile manufacturers, and researching the refining technologies to further reduce sulfur concentration in diesel fuel. In response to the above-mentioned social requirement to reduce the PM emission from diesel-powered motor vehicles, and in consideration of the urgency of the measures to reduce diesel emissions, the Petroleum Association of Japan and the Japan Automobile Manufacturers Association declared that they will make their best effort at present to take effective measures in close cooperation between petroleum and automobile industries. They also determined that the petroleum industry would supply low-sulfur fuel 4

5 for diesel-powered motor vehicles while the automobile manufacturers would introduce diesel-powered motor vehicles equipped with a continuous-regeneration diesel particulate filter (DPF) and other relevant devices to the market from 2003 to (2) Trends in Overseas Regulations In Europe and the US, to prevent air pollution, measures are being taken both to reduce emissions from diesel and other vehicles and to improve fuel quality. In the tripartite consulting meeting held in 1993 to 1995, the European Union General Environmental Bureau (DG-XI), the EUROPIA, and the ACEA discussed air quality preserving measures for 2000 and later. In 1998 June, they determined 2000 and 2005 regulations, EURO III and EURO IV, respectively, following the results of the discussion; the permissible limits for the sulfur concentration in diesel fuel is to be at 350 ppm for 2000 and 50 ppm for Discussions are continued to further reduce emissions. In 2000 May, a new regulation to be implemented from 2007 to 2010 was drafted in the US for heavy duty diesel-powered motor vehicles to reduce NOx and PM to 5% and 10% (i.e., reduction rates of 95% and 90%), respectively, of the levels in the existing regulation. To attain these targets, the Environmental Protection Agency (EPA) proposed a draft to reduce the maximum sulfur concentration to 15 ppm after 2005; this proposal is based on the sulfur durability of the nitrogen oxide reduction catalyst in aftertreatment devices in the future. Reaching this target will be difficult due to present fuel technology, the supply of fuel, and costs. Therefore, this issue is presently under discussion. (3) Discussion of Fuel Quality Regulations by the Expert Committee In consideration of the relation between air pollutants and diesel emissions, Report No. 3 submitted in 1998 October by the Central Environment Council proposed to reduce NOx and PM to below 40% of the present permissible limits as a new diesel long-term target. As the target is too high, however, it was pointed out that engines be improved and aftertreatment devices be put into practical use to attain this target. Promising aftertreatment devices are the continuous regeneration diesel particulate filter (DPF) that uses a catalyst to remove PM, and a nitrogen oxide adsorption and reduction catalyst that removes NOx. These are expected to have NOx and PM reduction performances to below 20% of the currently limited levels. 5

6 Because some devices do not work when the catalyst is poisoned by sulfur from the diesel fuel, it is important to reduce the sulfur concentration in diesel fuel when adopting new emission control technologies. Based on discussions about reducing diesel emissions, the Expert Committee decided to discuss about the reduction of sulfur concentration in diesel fuel. This is because the technology for reducing emissions is changing in Japan and abroad. 3. Necessity and Possibility to Reduce Sulfur Concentrations in Diesel Fuel (1) Relation with the Technologies for Reducing Emissions from Diesel-powered Motor Vehicles To reach the new diesel long-term target, NOx- and PM-reducing technologies should be developed. Therefore, automobile manufacturers are making efforts to put new aftertreatment devices into practical use. As a technology to reduce PM, the continuous regeneration DPF is promising for its high PM removal efficiency, which is being developed further but has already been applied to some vehicles in Europe. The "Technological Evaluation Meeting on the Measures for Diesel-powered Motor Vehicles (See Note) " reported the followings: a) The continuous regeneration DPF cuts more than 80% of PM, and also be able to cut hydrocarbons, carbon monoxide, and other harmful air pollutants on the oxidization catalyst used for the DPF b) There are constraints with regard to the durability, exhaust gas temperature, and NOx/PM ratio of exhaust emissions; some continuous regeneration DPF lose their regeneration ability when the catalyst is poisoned by sulfur from the diesel fuel. c) Therefore, only fuels with sulfur concentration of about 50 ppm will be used for the NO 2 oxidization type DPF; furthermore, it is also desirable to use such fuel for the catalyst-oxidization type. The nitrogen oxide reduction catalyst is a promising technology to reduce NOx. Therefore, efforts are being made to develop a NOx-adsorption material (nitrogen oxide adsorption and reduction type) with diesel fuel or urea as a reducing material. Although it is still under development to improve performance and durability, there is a technology to use a nitrogen oxide adsorption and reduction catalyst that has been used for gasoline-fueled motor vehicles. 6

7 Development of these types is rapidly progressing for commercial use. It is scheduled to introduce a DPF that reduces 80% of NOx and PM simultaneously by coating DPF with a nitrogen oxide adsorption and reduction catalyst in 2003, for which diesel fuel at a sulfur concentration of 50 ppm or less is necessary. In view of the present level of development and the future possibility of aftertreatment devices, it is essential to take measures for fuel quality in order to use the technology to substantially reduce NOx and PM levels. Technologically, reducing the sulfur concentration in diesel fuel to about one-tenth the present level is feasible. (Note) "Technological Evaluation Meeting on the Measures for Diesel-powered Motor Vehicles" was a joint meeting by the Environment Agency, the Ministry of International Trade and Industry, and the Ministry of Transport that was organized in 2000 March with the learned and experienced personnel and the staff of local autonomous bodies, to discuss the possibility to apply DPF to vehicles in-use. (2) Possibility to Supply Low Sulfur Diesel Fuel i) Technological Possibility at Refineries in Japan Based on the results from reducing the sulfur concentration to 500 ppm that has been implemented since the long-term target was adopted in 1997, it should be possible to reduce the sulfur concentration to 50 ppm, one-tenth the present level, by the existing desulfurizing method without introducing a new process into petroleum refineries; this assumes that the performance of the desulfurization catalyst improves. However, to reduce the sulfur concentration to far below 50 ppm, the composition of crude oil and petroleum products in Japan should be considered because the high sulfur crude oil imported from the Middle East is refined more in Japan than in Europe and the US, and the kerosene fraction for non-industrial use must be secured in Japan. Under these conditions, as desulfurization proceeds, residual undesulfurized substances can increase which rapidly degrades the desulfurization efficiency, or it will prevent further use of the present catalyst and reaction conditions. This requires a long period of time and high costs at the present level of technology. Although the period to introduce facilities that can reduce the sulfur concentration to below 50 ppm depends on the existing facilities at refineries, it will take about 41 months on average or about five years at the longest. The latter would occur where an environmental impact assessment is required for designing and construction work after the limit of sulfur concentration is specified. If all diesel-fuel 7

8 refineries in Japan must reduce diesel sulfur concentration, a target for system improvement with these conditions borne in mind should be set. ii) Availability of Low-Sulfur Diesel Fuel from Abroad The estimated diesel fuel supply and demand situation in East Asian countries until 2007 suggests that the diesel fuel fraction is in short supply. This is due to an increased demand in China and Korea that exceeds the increase in supply. Although efforts are being made in Asian countries to reduce the sulfur concentration in diesel fuel, the progress of tightening regulations is several years behind that in European countries. Hence, we cannot expect that Asian countries have the same movement towards more stringent regulations without delay as that in Japan. The demand for diesel fuel at the present sulfur concentration will continue in other Asian countries, which will decrease the incentives for their refineries to establish a low-sulfur diesel fuel supply system. Although it depends primarily on prices in the petroleum markets whether low sulfur diesel fuel is produced and sold to Japan, we cannot expect that the imported low-sulfur concentration diesel fuel has a large share in Japan. To maintain a stable supply of petroleum products in Japan under the more stringent regulations, sincere efforts are needed for domestic refiners. iii) Effect of Sulfur Reduction on Other Fuel Properties Low sulfur concentrations affect the quality of other fuels; for instance, it is known that parts of the fuel injection pump will wear due to the reduced lubrication. To remedy this problem, research and development of additives should be promoted, and automobile manufactures and petroleum refiners are required to cooperate in the years to come. (3) Impact of Sulfur Reduction on Production Costs The petroleum industry, one of the industries that consume the largest amount of energy, was responsible in 1998 for 3.7% of the total carbon dioxide emission in Japan. To accelerate the reduction of sulfur concentration, we anticipate that carbon dioxide emissions will increase at production sites due to the increased consumption of hydrogen and fuel. To implement the measures for fuel quality to reduce the sulfur concentration, therefore, we should also consider the negative effect on global warming despite the positive effect on reducing air pollution. If the cost to be invested into production facilities is assumed to be about 200 billion yen, and if increases in the operational cost are taken into account, the cost of diesel fuel is calculated to increase by about two yen per liter to reduce the sulfur 8

9 concentration below 50 ppm. The different operational costs at different facilities can slightly change this estimate. If the increased cost can reasonably be transferred to the product price, then this cost-increase should be within acceptable level for society. Although Japan and other Asian countries rely heavily on the high-sulfur crude oil from the Middle East, environmental regulations will be tightened as common subjects, and necessity of the similar approach for reducing sulfur concentration can be addressed. Japan will take measures for this purpose earlier than other Asian countries. Because of international competition, it is important for the future domestic petroleum industry to export environmentally friendly petroleum products by positively coping with such regulatory changes and maintaining a competitive edge. 4. Conclusion (1) Reduction of Sulfur Concentrations in Diesel Fuel As the effect of PM emitted from diesel-powered motor vehicles on health has become a social concern, measures shall be promoted further to reduce diesel emissions based on the above results. This requires actions to prepare for early implementation of a regulation based on the new long-term target that emphasizes reduction of PM. Based on present technical level and possible improvements in diesel emission control technologies, efforts to apply new technologies, such as the nitrogen oxide adsorption and reduction catalyst and continuous regeneration DPF, will be needed to reach the levels required by the new long-term target for reduced NOx and PM. Simultaneously, reduction of sulfur concentration in diesel fuel so as not to hamper the function of these catalysts is an effective policy. In particular, a practical goal is to make sulfur concentrations in diesel fuel below 50 ppm as a mandatory regulation. This is because aftertreatment technology for vehicles has rapidly progressed and further improvement is expected in the future, and prompt implementation of a regulation based on the new long-term target is necessary. Cost-benefit analysis of the measures and the technological possibility at domestic refineries also supports the practical goal. Through these measures, a significant reduction of sulfur concentration can be expected. (2) Date to Implement the New Regulation on Diesel Fuel Quality The date to implement the new regulation on the sulfur concentration in diesel fuel is as follows, and smooth response by petroleum refiners and distributors should be expedited. As the regulation based on the new diesel long-term target will be implemented by 2005, two years earlier than the original schedule, it is appropriate for 9

10 domestic refiners and diesel fuel importers to start supplying diesel fuel at a sulfur concentration of 50 ppm or less by the end of This is to help the smooth introduction of diesel-powered motor vehicles that satisfy the regulation based on the new diesel long-term target. Because it takes time to change the fuel properties in the distribution channels, the mandatory regulation will have a sufficiently-long lead time to make it thoroughly known so that sellers can appropriately shift to a new system under the new regulation. (3) Considerations Required to Strengthen the Regulation on the Sulfur Concentration in Diesel Fuel Petroleum refiners should make efforts to minimize the additional costs due to the strengthened regulation on the sulfur concentration in diesel fuel. However, as the cost is related to the use of automotive fuel, and as the measures improve the atmospheric environment by reducing diesel emissions, costs should basically be borne by diesel-powered motor vehicle users and the people in the country as the beneficiaries of the improved environment. To maintain the competitiveness of domestic refineries and a stable supply of low sulfur diesel fuel, therefore, it is thought to be appropriate to make provisions to prevent excessive burdens on petroleum refiners and users. More specifically, a policy is required to establish a low-sulfur diesel fuel supply system at an early date by creating a system to support the relevant petroleum businesses; this is so that they can quickly remodel or add to their facilities to produce low-sulfur diesel fuel or to adapt imported petroleum products to the Japanese new fuel quality. To supply low-cost, low-sulfur concentration diesel fuel, it is important to promote research and development on catalysts that effectively reduce the sulfur concentration in diesel fuel. By receiving appropriate support from the government, business incentives will help cut the costs to reduce the sulfur concentration and maintain the fuel quality so that the practical performance of low-sulfur diesel fuel is not significantly below that of the existing fuel. (4) Voluntary Measures by Petroleum Refiners and Considerations Required for Them The Petroleum Association of Japan declared that their industry would partly supply low-sulfur diesel fuel by their voluntary measures when automobile manufacturers start marketing diesel-powered motor vehicles equipped with a PM reduction device in 2003 or It is desired to establish an appropriate supply 10

11 system for low-sulfur diesel fuel so that actions by the petroleum industry produce satisfactory results, and also to improve the production facilities for low-sulfur diesel fuel at refineries as much as possible before implementing the regulation. 11

12 The voluntary measure by the refiners to supply low-sulfur diesel fuel is important for accelerating the marketing of diesel-powered motor vehicles equipped with new emission control technologies. As diesel fuels at different sulfur concentrations will be supplied simultaneously in this situation, it is anticipated that sellers must pay to install new tanks or identification marking. As diesel fuel at the present sulfur concentration will also be sold, vehicle users might misuse fuels or the market will be confused in dealing with different products. To avoid impeding the voluntary supply of low-sulfur diesel fuel, sellers shall be relieved of excessive burdens, and related industries shall cooperate with each other to avoid confusion. The government shall also make provisions to improve the situation by supporting the actions in the private sector. (5) Further Improvement of Fuel Quality in the Future To strengthen the measures to reduce diesel-powered motor vehicle emissions, the Expert Committee's discussions above focused on the sulfur concentration in diesel fuel while considering the changes in circumstance over the last few years. Guaranteeing an appropriate quality level of petroleum products is important in order to implement the measures for environmental preservation. To discuss the measures for fuel quality in relation to the more stringent future regulations on emissions, the following should be emphasized: 1) results of the regulation based on the new diesel long-term target, 2) comprehensive measures for vehicle emissions now under discussion, and 3) evaluation of the improvement in atmospheric environment after they have been implemented. From this viewpoint, evaluation of the effect of reduced vehicle emissions on air quality now in progress by JCAP is an effective tool to assess the effects of various measures to improve air quality in quantitative terms. Such evaluation should be continued and reflected in the judgment of various measures in the future. To attain the future and new target on emissions and satisfy the requirements to improve fuel economy of automobiles simultaneously, it will be necessary to have a new fuel quality considering the results of new long-term regulations and technological development on the sulfur concentration-reducing measures. In discussing the measure for fuel quality, decreases in sulfur concentration and carbon dioxide emissions, the latter due to improved automobile fuel economy, will be balanced with the increases in carbon dioxide emissions from refineries. In this context, new measures for fuel quality in the future shall appropriately be addressed to handle changes in the circumstances; this includes the effects of various policies and the 12

13 possibility of better technologies. 13

14 List of the Members of the Expert Committee for the Quality of Petroleum Products, Petroleum Committee, Petroleum Council (Without honorific title) Chairman Makoto Misono: Professor, Department of Environmental Chemistry and Engineering, Kogakuin University Members Hideaki Akamatsu: Hiroshi Arai: Masaichi Iguchi: Takatsugu Ibusuki: Toru Ozaki: Chairman, Fuel and Lubricant Subcommittee, Safety and Environment Technology Committee, Japan Automobile Manufacturers Association, Inc. Manager, Energy Marketing Section, Energy Division, C. Itoh & Co., Ltd. Director, Japan Automobile Research Institute Director, Atmospheric Zone Environment Preservation Division, Comprehensive Resource and Environment Research Institute Manager, Automobile Fuel Division, National Federation of Agricultural Co-operative Associations Hirotaka Director, National Petroleum Dealers Association Kawamoto: Takero Kitsukawa: Professor, Social Science Research Institute, University of Tokyo Yasuhiro Kotani: Director, Petroleum Infrastructure Technology Research Institute, Petroleum Industry Activation Center Yasuhiro Daishou: Professor, Department of Mechanical Engineering, Faculty of Science and Engineering, Waseda University Eiji Toyoda: Director, Japan Tracking Association Hosihiro Hirotani: Director, Japan Bus Association Ikutoshi Muramatsu: Chairman, Expert Committee for Motor Vehicle Fuel, Technical Committee, Petroleum Association of Japan Ichiko Miyamoto: Director, Consumption Life Research Institute, Japan Consumption Life Adviser Consultant Association Tateaki Honorary Professor, Tokyo Institute of Technology Yatsushima: (In the order of the kana alphabet) Dates of Committee Meetings First Expert Committee Meeting: Second Expert Committee Meeting: Third Expert Committee Meeting: Fourth Expert Committee Meeting: April 25 (Tue.) June 13 (Tue.) August 25 (Fri.) September 27 (Wed.) 14

15 Glossary * SPM (Suspended Particulate Matter) Particulate matters (PM) of 10 m or less in grain size suspended in the atmosphere, for which an environmental standard is set. SPM are broadly classified as the primary particles that are directly emitted from emission sources and the secondary particles generated through reaction or condensation of gaseous substances emitted as the primary particles. * PM (Particulate Matter) PM emitted from vehicles are broadly classified as black smoke, sulfates and soluble organic fractions (SOF). The sulfates are the sulfuric compounds generated when sulfur in the fuel is oxidized. SOF is unburned contents in lubricant and other substances from which solvents can be extracted at a relatively low boiling temperature. * DPF (Diesel Particulate Filter) (Diesel Fine Particle Removing Device) A device to catch PM in motor vehicle exhaust by a ceramic filter installed in the engine exhaust system and then remove PM with heater wires or catalysts. There are two types of DPF. One is the alternate regeneration DPF to use one of two or more filters at a time to catch PM and burn, and regenerate the used filter. The other is the continuous regeneration DPF to continuously remove PM at comparatively low temperature and regenerate the filter. * Nitrogen Oxide Reduction Catalyst (NOx Reduction Catalyst) Nitrogen oxide reduction catalysts reduce to purify nitrogen oxide (NOx) with a catalyst. There are two types of NOx reduction catalyst. One is to adsorb NOx in an adsorption material and the reduce it by controlling the air/fuel ratio (adsorption reduction type). The other is to reduce NOx by adding fuel as a catalyst (selection reduction type). * JCAP (Japan Clean Air Program) A technological development program on vehicles and fuel to improve the atmospheric 15

16 air quality jointly promoted by the Petroleum Association of Japan and Japan Automobile Manufacturers Association, Inc. from fiscal 1996 to