silaq meeting - sofia, 9 april 2003 1 fuel quality developments in the european union fuel quality...
TRANSCRIPT
SILAQ Meeting - Sofia, 9 April 2003 1
Fuel Quality Developmentsin the European Union
Fuel Quality Developmentsin the European Union
International Fuel Quality Center International Fuel Quality Center Fuel Quality Policy and Technology Fuel Quality Policy and Technology
Briefing Briefing
Sofia, Bulgaria - April 2003Sofia, Bulgaria - April 2003
Sandrine Dixson-Decleve, Director Europe & Africa, Sandrine Dixson-Decleve, Director Europe & Africa,
International Fuel Quality Center International Fuel Quality Center
SILAQ Meeting - Sofia, 9 April 2003 2
International Fuel Quality Center
International Fuel Quality Center
What is the International Fuel Quality Center (IFQC)? A specialized member service that provides comprehensive
information and concise analysis to members on pertinent actions and issues facing the transportation industry worldwide.
The service focus and emphasis is on automotive fuel quality, vehicle and engine related standards, and the health and environmental legislative and regulatory pressures leading these changes
Who is IFQC? Currently: over 80 Global Refining, Automotive and
Technology Companies and Governmental Organizations (more than 350 leading executives)
Working on the national, regional and international stage to facilitate dialogue and information exchange between transport related industries and governments
SILAQ Meeting - Sofia, 9 April 2003 3
International Fuel Quality Center
International Fuel Quality Center
SILAQ Meeting - Sofia, 9 April 2003 4
Alternative fuels
•Bio-fuels•LPG•CNG•Gas to Liquid
•H2
Drivers: World Fuel QualitiesDrivers: World Fuel Qualities
Fuel specifications•Lead•Sulphur•Distillation•Aromatics•Octane/Cetane•Additives•Oxygenates
Engine technologies• Gasoline & Diesel• Direct Injection• Hybrids• Fuel cells
Refining Industry
& technology
Economy
Energy Security
Local Economic Situation•Governmental interest•Taxes•Fuel adulteration•Availability
Engine Exhaust
After-treatment
Technologies
Industry Competition
Environment
•Global
•Country
•Regional
•Local
WHO & Kyoto•air quality standards
Politics
SILAQ Meeting - Sofia, 9 April 2003 5
Worldwide Consumption:Transportation Sector
Worldwide Consumption:Transportation Sector
0
2
4
6
8
10
12
14
16
18
1990 1998 1999 2005 2010 2015 2020
Mill
ion
s o
f B
arr
els
of
Oil
pe
r D
ay
Source : Derived from Energy Information Administration (EIA)
GASOLINE
DIESEL
JET FUELRESIDUAL FUEL
SILAQ Meeting - Sofia, 9 April 2003 6
Automotive MarketAutomotive Market
SILAQ Meeting - Sofia, 9 April 2003 7
Current Vehicle Emission Standards
Current Vehicle Emission Standards
Stringent: The country meets emission standards such as US Tier 1, US NLEV; California LEV I / I I; Euro I II ; Japanese emission standards .Less Stringent: The country meets less advanced standards such as US Tier 0 and Euro I / I I .It is believed no emission standards have yet been set.
SILAQ Meeting - Sofia, 9 April 2003 8
GlobalGlobal Lead Phase OutLead Phase OutGlobalGlobal Lead Phase OutLead Phase Out
Lead free, 0.15 g Pb/l, more than 0.15 g Pb/l
1996 2005
Graph Based on March 2003 figures. Policy options to support lead phase out include: Mandatory phase out by certain date, fuel taxes and other incentive policies, unleaded fuel dispenser nozzle, mandating unleaded pumps, mandate vehicle design for unleaded gasoline
SILAQ Meeting - Sofia, 9 April 2003 9
EU LAW
COMMISSION20 COMMISSIONERS24DG's [directorates general]
PARLIAMENT626 MEPs
COUNCIL 15 NATIONS
COURT OF JUSTICE
ECOSOCREGIONS
Dynamics of the European Dynamics of the European UnionUnion
Dynamics of the European Dynamics of the European UnionUnion
SILAQ Meeting - Sofia, 9 April 2003 10
EUROPEAN COMMISSION DG ENTR/F/5
other related
Commission services,
legal service
MVWG MVEG MWG
WGRTN
Commission proposal for adapting existing Directive to technical
progress
Commission proposal to the
European Parliament &
Council for a new Directive
UN-ECE
Consumer &
Environmental NGO’s
IndustryMEMBER STATES
Preparation of ProposalsPreparation of Proposals
SILAQ Meeting - Sofia, 9 April 2003 11
Role of the InstitutionsRole of the Institutions
co-decision procedure
EUROPEAN PARLIAMEN
T
Commission proposal for a new
Directive
COUNCIL
common position 2nd
reading
1st readi
ng
Economic & Social
Committee
Commission proposal foradapting existing Directive to technical
progress
Committee for Adaptation to
Technical Progress (CATP)
right to scrutiny
Possible conciliation
Directive of the European Parliament
& Council Implementation by Member States
Commission Amending Directive
SILAQ Meeting - Sofia, 9 April 2003 12
EU Legislative ActsEU Legislative ActsEU Legislative ActsEU Legislative Acts
Regulation - binding legislation
Directive – national transposition
Technical and Environmental Impact Analysis through Working Groups
Cost/Benefit and Cost/Effectiveness Analysis
Decision – Binding for those intended
Derogations on fuel quality or emissions targets
Recommendations & Opinions – non-binding
Resolution, Green & White Papers, Communications, Notices and Studies – Non-binding documents of legislative intent or statements on particular current topic
SILAQ Meeting - Sofia, 9 April 2003 13
1980 Smoke and SO2 Directive
1982 Lead Directive
(air quality)
1985 NO2 Directive
1993 •Fuel Quality Spec’s •Auto-Oil I Program •EPEFE Program•Euro I implemented
European Union: 1975 - 2000European Union: 1975 - 2000
1985 Lead Directive
1996 • Air Quality Framework Directive• Euro II implemented
1999-2000 Daughter Directives (SO2, NOX, PM, Lead, Benzene, CO)
1999 Directive on sulphur content of certain liquid fuels
1999 Derogations for Lead (Gr., It.,Sp.) & Sulphur (Pr.)
2000 Mini-Sulphur Review
Air Quality & Fuel Quality Directly Linked
2001 Energytaxation legislation?
Fuel Quality Legislation Mandated at National Level
Harmonised Fuel Quality & Auto Emissions become Focus for Air Quality &
Climate Change
Implementation Begins - Enhancements
Expected
1990’s Finland & Sweden use tax incentives for cleaner fuels.
1997 Auto-Oil II
1999 Further use of tax incentives for cleaner fuels.
1998 Council Adopts
Auto-Oil Directives
2001 Auto Oil II Completion
2000: Fuel Directive & Euro III.
1975 sulphur
content of
certain liquid
fuels
SILAQ Meeting - Sofia, 9 April 2003 14
Auto Oil Directives Program GoalsAuto Oil Directives Program GoalsAuto Oil Directives Program GoalsAuto Oil Directives Program Goals Respond to Ambient Air Quality Targets and an integrated approach
requiring further measures to reduce atmospheric pollution caused by vehicles
Address growing concern over pollution from the transportation sector
Passenger cars represent within EU member states from 75 to 90% of the total traffic volume, goods transport 8 to 20%, while bus and two-wheeler traffic are limited to 1 to 2% each .
Number of Vehicles on the road and increase in vehicle miles traveled offset decline in most pollutants
Motor vehicles generate about 30 percent of all emissions of nitrogen oxides and volatile organic compounds--the pollution that causes smog.
CO2 emissions from transport increased by 41% between 1985 and 1996 quickly becoming the largest source of CO2 emissions next to the energy sector. Road transport accounts for 85% of transport emissions
Implement a cost effective program with significant environmental and health benefits
When fully implemented, this program is estimated to reduce urban NOx emission by >39%, urban CO by >51%, urban benzene by >48%, urban PM by >39%, total NOx by >35%, total VOCs by >46%.
The European Commission and national Governments calculate that the Auto Oil legislation will prevent many deaths especially in urban centers, as well as cases of chronic and acute bronchitis, and other respiratory problems.
SILAQ Meeting - Sofia, 9 April 2003 15
European Union Air Pollution European Union Air Pollution LegislationLegislation- Primary Air Pollutant Targets- Primary Air Pollutant Targets
European Union Air Pollution European Union Air Pollution LegislationLegislation- Primary Air Pollutant Targets- Primary Air Pollutant Targets Ground Level Ozone
Volatile Organic Compounds (VOC)
Nitrogen Dioxide (NO2)
Nitrogen Oxide (NOX)
Carbon Monoxide (CO)
Particulate Matter (PM)
Sulfur Dioxide (SO2)
Benzene
Carbon Dioxide (CO2)
SILAQ Meeting - Sofia, 9 April 2003 16
European UnionEuropean Union- Primary Air Pollutant Criteria - Primary Air Pollutant Criteria
StandardsStandards
European UnionEuropean Union- Primary Air Pollutant Criteria - Primary Air Pollutant Criteria
StandardsStandardsEU Ambient Air Quality Targets
POLLUTANT STANDARD VALUE * STANDARD DEADLINE
Carbon Monoxide (CO)8-hour Average (10 mg/m3)
Nitrogen Dioxide (NO2)1-hour mean (health) (200 mg/m3) (exceedence limit 18times ) 1 Jan. 2010Annual Arithmetic Mean (health) (40 mg/m3) 1 Jan. 2010
Nitrogen Oxide (NOx)Annual Arithmetic Mean (Vegetation) (30 µg/m3) 19 July 2001
Ozone (O3)1-hour mean (180 µg/m3)8-hour Average (120 µg/m3)
Particulate (PM 10) Particles with diameters of 10 micrometers or lessStage I: 24-hour Average (Health) 50 µg/m3 (exceedence limit 35times ) 1 Jan. 2005Stage I: Annual Arithmetic Mean (Health) 40 µg/m3 1 Jan. 2005
Stage II: 24-hour Average (Health) 50 µg/m3 1 Jan. 2010Stage II: Annual Arithmetic Mean (Health) 20 µg/m3 (exceedence limit 7times ) 1 Jan. 2010
Particulate (PM 2.5) Particles with diameters of 2.5 micrometers or less Not modelled
Sulfur Dioxide (SO2)Annual Arithmetic Mean (20µg/m3) 19 July 200524-hour Average (125 µg/m) (exceedence limit 3times ) 1 Jan. 20051-hour Average (350µg/m3) (exceedence limit 24 times ) 1 Jan. 2005
Benzene Annual Arithmetic Mean (upper value) (16µg/m3) Annual Arithmetic Mean (lower value) (2.5µg/m3)
LeadAnnual Arithmetic Mean (health) (0,5µg/m3) 1 Jan.2005 or 1 Jan. 2010
* Parenthetical value is an approximately equivalent concentration.
SILAQ Meeting - Sofia, 9 April 2003 17
Overview of Current EU Vehicle and Overview of Current EU Vehicle and Engine Emission Control ProgramsEngine Emission Control Programs
Overview of Current EU Vehicle and Overview of Current EU Vehicle and Engine Emission Control ProgramsEngine Emission Control Programs
Passenger Cars and Light Duty Vehicles
Euro II-IV
Heavy-Duty On-Road
Euro II-V (Stage 1-2)
Heavy Duty Off-Road/Non-Road
Motorcycles
Marine
Handheld/Other
SILAQ Meeting - Sofia, 9 April 2003 18
- Auto Oil I Directives -Auto Oil I Directives -General OverviewGeneral Overview
- Auto Oil I Directives -Auto Oil I Directives -General OverviewGeneral Overview
Fuel Requires all EU Refiners/ Importers
to meet a max sulfur levels 350ppm
in 2000 and 50ppm in 2005 plus 10
ppm availability,
Requires all EU Refiners/ Importers
to meet new limits for cetane,
density, distillation, PAH by 1 Jan
2000. Future specs review 2005.
Flexibility includes
Derogation option for sulfur due to
economic hardship (2000)
Marketing of fuels with more stringent
environmental specifications allowed
to further protect health or
environment in specific area
Tax incentives
Review clause
Vehicle Requires New Passenger cars and
Light Commercial Vehicles to meet
new exhaust and evaporative
emission limits for 2000 and 2005
Applies to all vehicles post 2000
Higher durability distance from 2005
OBD
New specifications for test reference
fuels
Revised and new testing procedures
Evaporative emissions test
procedures,
New low temperature test
In use conformity testing
Flexibility includes
Review clause
SILAQ Meeting - Sofia, 9 April 2003 19
Fuel Directives ComplianceFuel Directives ComplianceFuel Directives ComplianceFuel Directives Compliance
Member States are obligated to transpose into national legislation and comply with the EU Directives by 1 July 1999 or fined
Member States establish own monitoring programs either governmental or industry run e.g. UK. New EU wide CEN monitoring standard in pipeline
Physical and Paper audits and inspections are carried out at Member State level by local authorities
Audits and Inspections
Review compliance with legislative specifications
Requirements apply:
Refinery Level Requirements
Downstream Compliance Requirements
Record Keeping and Reporting and Retention
Product Transfer Documents
Test Records in house and sent to local authority
REQUIREMENTS APPLY TO ALL PARTIES IN THE DISTRIBUTION SYSTEM
SILAQ Meeting - Sofia, 9 April 2003 20
WHAT NEXT: 2000 & beyond WHAT NEXT: 2000 & beyond
2001 Clean Air ForEurope (CAFÉ):
2002 MotorcycleEmissions Directive
2003 Non-road Emissions Legislation
2001 MTBE Risk Assessment: completion
2001 Commission proposals (AOII, MTBE, sulphur) for Dir. 98/70 2005
Implementation Begins - Enhancements Expected
2004 Air Quality Daughter Directives - PM 2.5
Euro V (HDV)Low sulfur fuelsBio-fuelsWater based fuelsLPGNatural gasFuel Cell
2005 New Fuel Quality and Emissions (Euro IV)Specifications
2004 European Enlargement (1st wave countries)
SILAQ Meeting - Sofia, 9 April 2003 21
EU Auto Oil II PredictionsEU Auto Oil II PredictionsEU Auto Oil II PredictionsEU Auto Oil II Predictions
EU Auto Oil II Modeling results predict: Large improvement in urban air quality by 2010, although
CO2 emissions will continue to rise at least until 2005 before stabilizing.
Particulates, regional tropospheric ozone precursors (NOx -and VOCs), benzene and NO2 remain problematic.
The number of inhabitants living in cities where the air quality objectives for four or more pollutants are exceeded simultaneously will still reach 4.5 million in 2010.
Road transport will still have a major influence on urban air quality in those cases where exceedances are predicted.
SILAQ Meeting - Sofia, 9 April 2003 22
AuAuto Oil Legislation Benefitsto Oil Legislation BenefitsAuAuto Oil Legislation Benefitsto Oil Legislation Benefits
SILAQ Meeting - Sofia, 9 April 2003 23
Past and Current Legislative/Policy Developments: Ambient air quality targets (Framework legislation and daughter directives
e.g SOx, NOX, NO2, PM, Lead and PAH)
Auto-Oil I, II Legislation (auto emissions and fuel quality)
Kyoto Protocol and climate change policy including: Voluntary CO2 agreement with ACEA, JAMA, KAMA (120g/km CO2 emissions for average vehicle) and emissions trading scheme
Other legislation/policy developments: CAFÉ, National Emission Ceilings, Motorcycle Emissions Directive, MTBE Risk Assessment, Enlargement
Current Major Issues and Alternative Fuel Developments:
Amendments to directive 98/70/EC on fuel quality and fuel Quality Monitoring and increase in tax incentive use
Alternative Fuels Communication with Bio-fuels Directive
CEN – CEN 589/228, FAME standard, development of ethanol standard
LPG, CNG, water based fuels and bio-fuels used across Europe
EU Fuel Quality OverviewEU Fuel Quality Overview
SILAQ Meeting - Sofia, 9 April 2003 24
EU Gasoline & Diesel Specs – 2002
EU Gasoline & Diesel Specs – 2002Gasoline
EN 228:
1993 Euro II
Dir 98/70 2000
Euro III
Dir. 98/70 2005
Euro IV
Dir. 98/70 2009
(EP/Council)
Aromatics, vol%, max - 42 35 (Review) *
Olefins , vol%, max - 18 18 (Review) *
Benzene, vol%, max 5.0 1.0 1.0 (Review) *
Oxygen, wt%, max - 2.7 2.7 (Review) *
Sulfur, ppm, max 500 150 50(10) ** 10
RVP, kPa 35 - 100 60.0 /70.0 60.0/70.0 (Review) *
Lead, g/l max 0.013 None None none
Diesel
EN 590:
1993 Dir 98/70
2000 Dir. 98/70
2005
Dir. 98/70 2009*
(EP/Council) Poly Aromatics, vol%, max N/A 11.0 11.0 (Review) *
Sulfur, ppm, max 2,000 350 50/10 ** 10ppm (review)
Cetane number, min 49 51 51 (Review) *
Density @ 15 oC , kg/m3 820 - 860 845 845 (Review) *
Distillation, T95 oC, max 370 360 360 (Review) *
* Review clause: By end 2005 the European Commission will carry out a comprehensive review of the other non-sulfurparameters and alternative fuels and see if new specifications are necessary, the outcome of the various commitments with the auto-manufacturers to reduce fuel consumption and CO2 emissions of new passenger cars, the effect of metallic additives on new pollution abatement technologies, and the final date of on-road and non-road diesel 10ppm introduction.**2005 introduction of 10ppm sulphur – Fuel must be geographically available in an appropriately balanced manner
SILAQ Meeting - Sofia, 9 April 2003 25
EU Fuel Specs Outstanding IssuesEU Fuel Specs Outstanding IssuesEU Fuel Specs Outstanding IssuesEU Fuel Specs Outstanding Issues
Tax incentives: How do we ensure geographic coverage and no product
shortages in countries with lower or no tax incentives? Large difference between tax incentives for 50 ppm fuels e.g. 1.5 - 4.5 Ec/l
Unleaded example has shown that geographic balance can be ensured with tax incentives and that Southern countries have used tax incentives for unleaded market penetration
Non-Road: Accounts for 8.5% diesel volume (Concawe 2001) but in some cases
<50% transport emissions. 7 (UK, IL, FR, NL, BE, FL, ES) out of 15 countries (Concawe 2001)
allow use of dyed/marked lower duty 2,000ppm heating oil. How do we ensure farmers continue to receive tax incentives? And
that distribution systems function?
SILAQ Meeting - Sofia, 9 April 2003 26
0%
20%
40%
60%
80%
100%
1992 1993 1994 1995 1996 1997 1998 1999 2000
350 ppm
50 ppm
10 ppm
Source: ECMT 2001Example: Swedish Diesel Market
Penetration of ULS FuelsPenetration of ULS FuelsPenetration of ULS FuelsPenetration of ULS Fuels
SILAQ Meeting - Sofia, 9 April 2003 27
National Tax incentivesFor 50ppm sulphur fuels
EU Issues: Tax Incentives 50 & 10ppm Sulphur FuelsEU Issues: Tax Incentives 50 & 10ppm Sulphur Fuels
National Tax incentivesFor 50ppm & 10 ppm sulphur fuels (and or availability)
3.9Ec/lDiesel (2000)
0.3Ec/l 50ppm Petrol (2001)5.7Ec/l 10ppm Diesel (2001)
10ppm Petrol (2002)10ppm Diesel (2002)
2.5Ec/l 50ppm Diesel (1993)
3.1Ec/l50ppm Diesel (1993)
1.5EC/l 10ppm Petrol/Diesel (2003)1.5Ec/l 50ppm Petrol/Diesel (2001)
50ppm Diesel Available (2000)10ppm Petrol/Diesel incentive
(2004)
4.5Ec/l 50ppm Petrol (2000), Diesel (2001)
10ppm Diesel Available (2000)
.076Ec/l 50ppm Petrol (2000), Diesel (2001)
2 Ec/lPetrol/Diesel (2001)
4 Ec/lPetrol/Diesel (2001)
2.4 Ec/lDiesel (1999)
SILAQ Meeting - Sofia, 9 April 2003 28
From Air Quality to CO2From Air Quality to CO2
EU moving from air quality concerns to climate change concerns.
Transport sector largest CO2 emitter and biggest challenge to meeting Kyoto Protocol Commitments e.g. Lowering GHG emissions to at least 5% below 1990 levels during 2008-2012.
Conventional fuels, vehicles and transport patterns greatest impact thus policy focus. Non-road and marine fuels increasing % of transport pollution
EU CO2 voluntary agreement with European, Korean and Japanese auto makers will be reviewed.
Promotion of alternative fuels especially renewables and fuel cell for climate change and energy security reasons.
SILAQ Meeting - Sofia, 9 April 2003 29
Diesel600
Gasoline*950
1550 Mtoe**Not including petrochemical sector, airplanes
LPG
EtOH
Natural Gas
Bio: Diester
ETBE
AlternativeFuels 27 Mtoe (1.7%)
Source: IFP / Axens*including MTBE
Road Transportation Fuels World 2000
Road Transportation Fuels World 2000
SILAQ Meeting - Sofia, 9 April 2003 30
CONSIDERING NEW OPTIONS: CONSIDERING NEW OPTIONS: EMISSIONS EVALUATIONEMISSIONS EVALUATION
CONSIDERING NEW OPTIONS: CONSIDERING NEW OPTIONS: EMISSIONS EVALUATIONEMISSIONS EVALUATION
Evaluation of the emissions potential of different alternative fuels in the year 2005 (EURO 4) in passenger cars and light duty vehicles applications
Source: Auto-Oil II / Working Group 3 report on alternative fuels
SILAQ Meeting - Sofia, 9 April 2003 31
-100-90-80-70-60-50-40-30-20-10
010
EV
s
LP
G
CN
G
Met
han
ol
Eth
ano
l
Fu
el C
ell
Percent Reduction of CO2 Emissions EVs: US Fuel Mix
EVs: All RenewableGenerationLPG/CNG/Methanol:Fossil-Fuel DerivedCNG/Methanol:Biomass DerivedEthanol: Grain
Ethanol: Cellulose
Fuel Cell - Methanol
Fuel Cell - Hydrogen
CO2 Benefits: Alternative Fuels
CO2 Benefits: Alternative Fuels
Source: IEA - Carmen Difiglio 2002
SILAQ Meeting - Sofia, 9 April 2003 32
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
Strategy: Security of supply, low environmental impact and fuel efficiency, high level of safety, and continued low overall cost of driving, new source of income and employment for rural areas.
Result: Council and Parliament agree on voluntary targets for Member States to increase share of fuel pool by 2020 of bio-fuels ( 5% based on energy content), natural gas ( 10%), hydrogen ( 5%).
Result: Exemption of bio-fuels from excise duty application
SILAQ Meeting - Sofia, 9 April 2003 33
Simultaneous Outstanding Issues: EU Alternative Fuels Policy
Simultaneous Outstanding Issues: EU Alternative Fuels Policy
Year 31 Dec 2005 2010 2015 2020
Bio-fuels, vol% (based on energy content)
2 6
(min 5.75 on market) (7) (8)
Natural Gas, vol% - 2 5 10
Hydrogen, vol% - - 2 5
Total 2 vol% ~ 7,2 mtons (EtOH
+ bio-diesel)
8 vol% ~21.4 mtons (EtOH +
bio-diesel) ~4.6mton or
7,044kcm (natural gas
14 vol%
23 vol%
Assumptions made: 1) Based on EU total automotive fuel demand of 270mton in 2005, 283mton in 2010 (Europia figures) 2) Natural gas vol% in pool will also be calculated by energy content as in the case of bio-fuels
Source: Data and estimates compiled by Lyondell Europe
SILAQ Meeting - Sofia, 9 April 2003 34
Main Market and Economic Issues: Production and process efficiency varies Is set aside land enough (5.6 million ha = 1.2-5% potential of total
European petroleum product consumption) Environmental degradation factors e.g. fertilisers, pesticides, rural
air quality, soil erosion, water pollution Farming intensification practices, mono-cultivation/crops aesthetic,
GMO’s???? Economics and price (in some case liquid bio fuel production cost 3
times cost of conventional fuels) Large subsidies necessary yet conventional low sulphur fuels
already taking chunk of current treasury revenue Imports issue: Can we meet 2-5% bio-fuel goals domestically? Does it make sense to invest in bio-fuels when fuel cells are on the
horizon and other alternative fuels e.g. CNG, LPG are already on the market?
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
SILAQ Meeting - Sofia, 9 April 2003 35
Main Vehicle, Environmental and Emissions Issues: Full environmental or air quality benefit analysis by Commission
lacking e.g. no programme or stakeholder process Real integrated policy approach between existing EU policy e.g.
potential conflicts with CAP, Dir 98/70, ozone air quality targets CO2 emissions data contradictory and controversial Changes to gasoline engines necessary for greater than 10% ethanol
issues related to corrosion properties Volatility issues linked to ethanol e.g. handling and VOC emissions Bio-diesel oil blends can create engine issues and greater NOx
emissions e.g. Germany unregulated pure cooking oil use No fuel quality specs exist for bio-ethanol
Question: Will the Bio-fuels directive approach set a precedent for future alternative fuel policies? Should the Communication on Alternative Fuels cover more than just natural gas and hydrogen?
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
““Communication on Alternative Fuels for Communication on Alternative Fuels for Transportation and on a set of measures to promote Transportation and on a set of measures to promote
the use of bio-fuels”:the use of bio-fuels”:
SILAQ Meeting - Sofia, 9 April 2003 36
- - European Union Fuel Quality European Union Fuel Quality Policy- Policy-
Lessons LearnedLessons Learned
- - European Union Fuel Quality European Union Fuel Quality Policy- Policy-
Lessons LearnedLessons Learned Harmonisation of Member State laws under EU
legislation is essential
Air quality objectives/targets must be set and
evaluated regularly
Fuel and vehicle must be treated as a system
Stakeholder process between government and
industry fundamental
Full scientific and technical assessment needed
for acceptability
SILAQ Meeting - Sofia, 9 April 2003 37
Fiscal incentives for market penetration very useful
Unintended Consequences of Clean Fuels
legislation
Supply: Cleaner Diesel and Gasoline
Age of vehicle fleet: Differences in climate across Europe
Cost: Different excise taxation and VAT structure across EU
leading to price differences,
Competition between clean conventional fuels and alternative
fuels for tax incentives
- - European Union Fuel Quality European Union Fuel Quality Policy- Policy-
Lessons LearnedLessons Learned
- - European Union Fuel Quality European Union Fuel Quality Policy- Policy-
Lessons LearnedLessons Learned
SILAQ Meeting - Sofia, 9 April 2003 38
Conclusions: EU Policy Hot Conclusions: EU Policy Hot SpotsSpots
Conclusions: EU Policy Hot Conclusions: EU Policy Hot SpotsSpots
Main Vehicle, Environmental and Emissions Issues in pipeline:
98/70 Review work Fuel Quality monitoring standard adoption June 2003 Non-Road emissions and fuels legislation Final adoption Bio-fuels Legislation and tax exemptions CEN standards on bio-ethanol Alternative Fuels discussions linked to climate change and
energy security policy Marine fuels Climate change and GHG emissions trading legislation Central and Eastern European Accession countries and
implementation of EU legislation
SILAQ Meeting - Sofia, 9 April 2003 39
Enlargement & Fuel QualityEnlargement & Fuel Quality
1996“Euro
2”
2000“Euro
3”
2005“Euro
4”
200910 ppm2004
Latvia - CEN 1993 (CEN 1999 by 1/1/04) Lithuania - CEN 1993 (CEN 1999 by 1/1/03) Estonia - CEN 1993 (CEN 1999 by 1/1/04)Bulgaria - CEN 1993, CEN 1999Romania – CEN 1993, CEN 1999Malta – Dir. 98/70 Transition periodTurkey CEN 1993 (CEN 1999 by 1/1/05)
Slovenia - Dir.98/70 2000Slovakia - Dir.98/70 2000Czech Rep - Dir. 98/70 2000Hungary - Dir. 98/70 2000 Poland – Dir. 98/70 (1/1/03)Cyprus – Dir. 98/70 (1/1/03?)
Source: IFQC’s A Summary of Worldwide Automotive Fuels Specifications, January 2003
SILAQ Meeting - Sofia, 9 April 2003 40
Eastern/Central European & FSU Fuel Specs
Eastern/Central European & FSU Fuel Specs
POLAND
BELARUS
UKRAINE
RUSSIA
MOLDAVIA
ROMANIA
TURKEY
BULGARIA
CYPRUS
ALBANIAMACEDONIA
BOSNIA
CROATIA
SLOVENIA
YUGOSLAVIA
HUNGARY
CZECH REP. SLOVAKIA
LITHUANIA
LATVIA
ESTONIAOther FSU Countries
GEORGIA
ARMENIA
AZERBAIJAN
KAZAKHSTAN
KYRGYZSTAN
TADJIKISTAN
TUKMENISTAN
UZBEKISTAN
Country following spec EN 228:1993 for gasoline and EN590:1993 for diesel
Country following spec EN 228:1999 for gasoline and EN 590:1999 for diesel
Country following Former Soviet Union specifications
Little to no data
SILAQ Meeting - Sofia, 9 April 2003 41
Eastern/Central European & FSU Lead Phase-Out
Eastern/Central European & FSU Lead Phase-Out
POLAND
BELARUS
UKRAINE
RUSSIA
MOLDAVIA
ROMANIA
TURKEY
BULGARIA
CYPRUS
ALBANIAMACEDONIA
BOSNIA
CROATIA
SLOVENIA
YUGOSLAVIA
HUNGARY
CZECH REP. SLOVAKIA
LITHUANIA
LATVIA
ESTONIAOther FSU Countries
GEORGIA
ARMENIA
AZERBAIJAN
KAZAKHSTAN
KYRGYZSTAN
TADJIKISTAN
TUKMENISTAN
UZBEKISTAN
Country still using leaded gasoline
Country that completed lead phase out
SILAQ Meeting - Sofia, 9 April 2003 42
Conclusions:Conclusions: EU Policy Hot EU Policy Hot SpotsSpots
Conclusions:Conclusions: EU Policy Hot EU Policy Hot SpotsSpots EU fuel policy focus through 2003:
10ppm sulphur conventional fuels (98/70/EEC) by 2005/2009 (diesel to be confirmed); Other parameters e.g. PAH, Metallic additives etc.. after 2005 Review [adopted Fall 2002]
Non-Road 10/50ppm sulphur diesel by 2009 [?] Bio-fuels indicative levels by 2005 [adopted March 2003] Alternative Fuels [DG Env. Study 2002; Review 2005
DGTREN Contact Group focus natural gas and hydrogen] Fiscal Incentives will increase with Mineral Oil Taxation
Directive On the horizon: Heating oil and marine bunker fuels with
lower than 1,000ppm sulphur? Energy Security and Climate Change will continue to be
the main drivers….
SILAQ Meeting - Sofia, 9 April 2003 43
Thank you! Any Questions?
Sandrine Dixson-Declève Director, Europe and Africa
International Fuel Quality [email protected]