Sulfur: The Auto Industry Perspective

Transcription

1 Sulfur: The Auto Industry Perspective South America Sulfur in Vehicle Fuels Conference February 2007 Quito, Ecuador Ellen Shapiro Alliance of Automobile Manufacturers Stuart Rayner Ford Motor Company South Africa

2 Outline Worldwide Fuel Charter Categories Strategies & Issues Gasoline Sulfur Needs in Brazil Reducing Diesel Sulfur: the South African Experience Recommendations

3 WWFC Committee Countries represented: Brazil (ANFAVEA) Canada (AIAMC, CVMA) China (CAAM) Europe (ACEA) India (SIAM) Indonesia (IAF) Japan (JAMA) Korea (KAMA) ACEA, Alliance, EMA, JAMA Supporting: International (OICA) Malaysia (MAA) Mexico (AMIA) Philippines (CAMPI) South Africa (NAAMSA) Thailand (TAIA) US (Alliance, AIAM, EMA) Vietnam (VAMA)

4 Categories Link Sulfur to Emission Standards WWFC Category Emission Standards Gasoline S ppm max Diesel Fuel S ppm max 1 US Tier0; Euro * 2 US Tier1; Euro2, Euro US/Cal LEV/ULEV; Euro3; JP US Tier2, 2007/2010 HD On- Highway, Tier4 Non-road; Cal LEV-II; Euro4, Euro5 HD Key Message: Engine and vehicle technologies normally achieve improved performance and lower emissions with higher category fuels. *3000 ppm allowed as transitional limit

5 New Fuel Efficient Technologies Automakers have dramatically improved both gasoline and diesel engines in recent years Includes new technologies that improve fuel economy Common rail diesel engine Lean-burn gasoline engine These need new highly sulfur-sensitive advanced emission controls to minimize emissions Ultra-low sulfur fuels are critical for enabling these technologies

6 Strategies & Issues Some strategies for reducing sulfur Voluntary South Africa City/country split Brazil Dominant/phased mandate US (aided by bus fleets) Universal California Tax incentives Europe Issues (non-oil) for policymakers Sequence? Cleaner fuel should precede cleaner vehicle Potential for misfueling? Labeling? New, cleaner vehicle penetration (how fast will vehicle fleet be able to reduce its emissions)? Fuel distribution issues? availability hot spots? Enforceability? Impact on tourism, commerce and trade?

7 Gasoline Sulfur Needs in Brazil

8 Catalyst Technology Trend Industry Industry Trend Trend Finer Finer cell cell grid grid Cleaner emissions Cleaner emissions Cell Density, cells per sq. in

9 Sulfur effect on the catalytic activity Source AFEEVAS

10 Sulfur Level Needs in Brazil LEV technology scheduled for January 2009; needs 50 ppm S limit to meet requirements But: Gasoline sulfur is allowed up to 1000 ppm max Fuel specs remain unclear for both market & reference fuels Diesel S limit is 500 ppm in the city but 2000 ppm in the country, indefinitely Without an appropriate sulfur standard, not even massive investments in vehicle technology will guarantee that emission goals will be met Countries and customers pay the bill without getting the benefits. Source: ANFAVEA (Oct 2006)

11 Reducing Diesel Sulfur: The South African Experience

12 South African Motor Industry Annual sales volume : 763,000 units MIDP*: High local content, Reducing duties on fully built units Locally manufactured brands include : Audi, BMW, Colt, Fiat, Ford, Isuzu, Land Rover, Mazda, Mercedes, Nissan, Opel, Toyota, VW, Volvo Vehicle Exports : BMW, Mercedes, VW, Ford, Nissan Component Exports : Primarily Catalysts, Leather Seats, Alloy Wheels and Engines *MIDP = Motor Industry Development Plan

13 Euro 2 Emission Standards Apply in South Africa, as of 2007 Application Effective Date New Passenger car + LCV* (ECE 83.03) Homologated Jan 2006 Manufactured Jan 2008 New MCV* + HCV* (ECE 49.02) Homologated Jan 2006 Manufactured Jan 2010 *LCV = Light Commercial Vehicle HCV = Heavy Commercial Vehicle MCV = Medium Commercial Vehicle

14 SA 2006 Diesel Fuel Quality Diesel Regular: 500 ppm Sulphur Premium: 50 ppm Sulphur

15 Diesel Vehicle Sales 2003/ Percentage sales Passenger Car sales LCV Sales YTDJun

16 DPFs are Highly Effective

17 National Diesel Strategy: Introduce 50 ppm Sulphur Voluntarily at First Diesel The maximum sulphur content of diesel will be reduced to 500 ppm from 2006 and a second diesel grade with a maximum sulphur content of 50 ppm will be made available on a voluntary and selective basis. Diesel with a maximum sulphur content level of 50 ppm shall be nationally available by Petrol The maximum sulphur content of unleaded petrol shall reduce to 500 ppm from 2004 and to 50 ppm from 2010.

18 <50 ppm Sulphur Diesel Availability: September 06 Brand Low Sulphur 500 ppm Ultra Low Sulphur 50 ppm 50 ppm Sulphur Availability SHELL Shell Dieseltech Shell V-Power Diesel All 'Ultra City' and selected city outlets nationally SASOL Sasol Turbodiesel Sasol Turbodiesel ULS All Sasol 'Convenience Centres' nationally TOTAL Total Ecodiesel + Total Ecodiesel Premium + Selected Total and most 'Petroport' sites nationally BP BP Cleaner diesel 500 BP Cleaner diesel 50 Selected sites in Durban and Cape Town

19 Fuel production in South Africa Namibia Botswana Pretoria Zimbabwe Johannesburg Sasolburg Secunda Mozambique Richards Bay South Africa Durban Cape Town Mossel Bay Port Elizabeth Refineries Synfuels Plants

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21 Local Success: Diesel Vehicle Emission Testing in Cape Town Service Vehicles Failure rate 17% ,2% % %

22 But Overall Result is Unsatisfactory Market forces are not making 50 ppm S grade available outside city centres Newer diesel vehicles cannot travel outside the city centre with confidence This is limiting the penetration of fuel efficient diesel passenger cars due to EU standardisation of the DPF system Other diesel fuel specifications also require improvement (cetane, e.g.) Conclusion: Voluntary introductions are ineffective; government intervention is required

23 Recommendations 50 ppm Sulphur diesel needs to be specified as the sole grade for road transport use from 2011 at the latest, to achieve the benefits of new diesel technology. Similarly, petrol sulphur levels need to be reduced to realise the benefits of the growing catalyst fleet and to allow upcoming lean burn direct injection technology. Other fuel properties also require legislation in line with the WWFC and EU Directives to maintain a broad alignment with international fuel specifications - with attendant vehicle fuel efficiency benefits.

24 WWFC4 is available at: Thank you!