Fuel Quality Issues and Developments in Asia Liisa Kiuru Director, Asia International Fuel Quality Center www.ifqc.org 1 International Fuel Quality Center 2
Situation in Each Country Varies Emissions WHO/Kyoto CO NOx VOC PM Refining Industry & Technology Environment & Health Global Country Regional Local Vehicle Park/ Engine Technologies Age Gasoline & Diesel After Treatment Technology Direct Injection Hybrids Fuel cells 3 Drivers for Air Quality Improvements Vary Local Economic Situation governmental interest taxes fuel adulteration availability Politics Energy Security Industry Competition Fuel specifications Lead Sulfur Distillation Aromatics Octane Additives Oxygenates Lubricants Alternative fuels Bio-fuels LPG CNG GTL H2 4
Global Fuel Quality Issues Continued demand increase for Vehicles and Fuels Continued pressure to reduce Urban Air Pollution Global Lead Phase Out on its way Reduction of Sulfur in Gasoline and Diesel - also in non-road, Distillate, Marine and Bunker fuels Reduction of Benzene and Aromatic content in Gasoline Octane, Cetane, Volatility, Flash Point, Lubricity & Additive Issues Alternative Fuels : Biofuels, LPG, CNG, GTL, water emulsions, hydrogen Energy Security CO2, Greenhouse Gas Emissions and Vehicle Efficiency 5 Asian Fuel Quality Issues Asian cities have some of the most chronic air pollution problems. Increased number of vehicles will challenge gains. Significant progress in the last decade in terms of fuel quality. Lead phase out almost complete. Fuel quality monitoring legislation lacking in many countries. Fuel adulteration big problem price distortion, taxation. Each country follows their own fuels regime - some leading countries in line with Europe while others are in different stages. 6
Fuel Quality Evolution in Asia Group 1 Group 2 Group 3 China India Indian Ocean Thailand Cambodia Malaysia South Korea Indonesia Taiwan Japan Philippines Australia Pacific Ocean New Zealand Group 1: Future sulfur reduction to or below 50ppm; EURO 4 equivalent levels for aromatics, olefins and benzene. Group 2: Future sulfur reduction to 100 to 500ppm; aromatics, benzene, olefins generally not regulated, moving slowly towards EURO 3 equivalent fuel specs Group 3: Moving towards unleaded gasoline. Asian countries generally aim to harmonize fuel and emissions regulations with Europe. World Wide Fuels Charter is used as guideline. 7 Gasoline Sulfur Level Outlook 2,000 1,500 1,000 Sulphur (ppm) 500 2003 2004 2005 2006 2007 2008 2009 2010 Source: IFQC EU Japan * Australia * China * Hong Kong India Indonesia * Malaysia * New Zealand Phillippines Singapore * South Korea Taiwan Thailand * Vietnam 0 NOTE: * Future specifications are only proposed 8
Diesel Sulfur Level Outlook 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Sulphur (ppm) 1,000 2003 2004 2005 2006 2007 2008 2009 2010 Source: IFQC EU Japan * Australia * China * Hong Kong * India Indonesia * Malaysia * New Zealand Phillippines Singapore * South Korea Taiwan * Thailand * Vietnam 500 NOTE: * Future specifications are only proposed 0 9 Some Biofuels Developments Drivers Energy security, emissions benefits, farmer support etc. Ethanol: India 5 vol% mandate China max 10±2 vol% Thailand max 10 vol%, RVP and distillation T50 relaxed in spec Australia max 10 vol%; customer support Japan max 3 vol% Biodiesel: Philippines 1 vol% mandate for govt vehicles Australia biodiesel (neat) spec set 10
Thank You Questions? http://www.ifqc.org 11