January 07, 2008
Volume: 12
Issue: 1
Top Stories
Diesel Price Controls Causing Big Public Health, Economic Problems
Combining Biomass, Coal for FT Diesel No ‘Accounting Gimmick’ for CO2
Wall Street Analyst: Diesels to Become More ‘Compelling’ Than Ethanol Cars
ASTM ‘E-2’ Subcommittee OKs B6-B20 Specification
Around the world of Diesel
Marathon Building New ULSD Unit at Canton, Ohio Refinery:
Clean-Diesel ‘Invasion’ Seen Heading to U.S. Over Next Two Years:
Mercedes Nearly Doubles Diesel Light Vehicle Sales in U.S. in 2007:
Total Starts ULSD-Capable Hydrocracker for Low-Sulfur Diesel in China:
PetroChina Starts-up ‘Premium Quality’ Diesel Refining Unit:
Shanghai Automotive Industry Corp. (SAIC) Buys Diesel Engine Division of Shanghai Electric:
Pemex Blowing ULSD Deadline:
B20 Biodiesel Buses Stall in Cold Weather:
CARB OK’s Diesel Truck Emissions Reduction Funding Program:
Texas Council on Environmental Quality (TCEQ) Conditionally OK’s 5% Biodiesel (B5) as Texas Low-Emissions Diesel (Tx-LED):
Bapco Inaugurates Euro-5 ULSD Refinery:
Panama’s Move to 500-ppm Sulfur Diesel ‘Insufficient;’ ULSD Seen Crucial:
Romanian Refiner Debuts B3 (3% Biodiesel) Blend in Euro-4 ULSD This Month:
Nissan Motor, Nissan Diesel Create Light-Duty Diesel Engine Division:
GM, Navistar Ink Diesel Medium Truck Deal:
Navistar-International Finally Unveils Financial Results for 2003-2005:
Ford Recalls 1.2 Million U.S. Diesel Pickup Trucks for Faulty Sensor That Could Stall Engine:
Daimler/Orion Win Orders for More Than 1,000 Diesel-Electric Hybrid Buses:
Petrobras Debuts Biodiesel Marketing Scheme:
Volvo Reportedly Recalls Nearly 50,000 Cars for Faulty Diesel Particle Filter (DPF):
BorgWarner Claims a ‘First’ for Clean-Diesel Ford Pickup Trucks:
Beijing Officially Switched to Euro-4 ULSD, Vehicle Limits as of Jan. 1, 2008:
Technip Wins Kerosene, Heating-Oil Desulfurization Contract for Total Refinery in Germany:
UK Diesel Car Sales Booming, Grab 45.3% Share:
Swedes Going Diesel:
More News
Asia Could Realize Big Net Benefits from Diesel Desulfurization: Report
ULSD Imports Down, but Production Increases
Refiners to Air Views on Renewables, ‘Low Carbon Fuel Standard,’ at Clean Heavy Duty Vehicle Conference Feb. 20-22

IEA: Diesel Deliveries Increase in U.S., Europe; Shortages in Asia
China Reportedly Moving to Favor Hybrids over Diesels
Delhi Eyeing Euro-4 ULSD Acceleration to End-2008
Petrobras: Clean-Diesel Advances Coming This Year
U.S. Consumer Study Sees Diesel Interest Spiking, Hybrids Declining
China Diesel Engines Sales Up 30%; Grab 80% Share
China Diesel Imports Skyrocket; Price Controls Depress Output
Regulation
‘Renewable Diesel’ Survives U.S. Energy Bill Signed by President Bush
CARB Staff Ignores UC Study, Pushes 10% Cut in Diesel Fuel CO2 Emissions
European Commission Proposes Euro-6 Limits for Trucks & Buses
EU Pushes 130 Grams/Kilometer Vehicle CO2 Limit
EU Unveils 10% Biofuel Directive, Biodiesel Spec; Greens Slam It
CARB OK’s Massive Diesel Ship, Truck Cleanup Rule at Ports
Key Prices
Distillate Watch

Top Stories

Diesel Price Controls Causing Big Public Health, Economic Problems

Mainstream news media are starting to stumble across some of the more horrific consequences of China’s government price controls on diesel.

One of the best examples: A recent New York Times article (Dec. 8, 2007, under the headline, “Trucks Power China’s Economy, at a Suffocating Cost.”

Full Story >>

Combining Biomass, Coal for FT Diesel No ‘Accounting Gimmick’ for CO2

San Francisco – Natural Resources Defense Council climate center director David Hawkins told the recent Gasification Technologies Council 2007 conference here that combining biomass with coal feed for gasification-based Fischer-Tropsch diesel won’t really do much to cut carbon dioxide emissions from transportation.

Full Story >>

Wall Street Analyst: Diesels to Become More ‘Compelling’ Than Ethanol Cars

Wall Street corporate debt rater Fitch Ratings now sees the diesel car star rising and the ethanol-car star fading.

“Early 2007 saw a lot of U.S. brand/product marketing focused on ethanol-capable vehicles,” Fitch said in a December 4 report. “Currently there appears to be little consensus that ethanol is a viable alternative fuel solution over the longer term.

Full Story >>

ASTM ‘E-2’ Subcommittee OKs B6-B20 Specification

Following years of disagreements and debates, ASTM’s “e-2” (diesel fuel) subcommittee on December 3 for the first time ever approved a specification for blends of between 6-20% biodiesel in petroleum diesel.

It also approved a “cold soak filterability” test as an annex to the D-6751 biodiesel standard, which potentially could help avoid filter-plugging problems caused by solid “precipitates” that can emerge in biodiesel and its blends.

Full Story >>

Regulation

‘Renewable Diesel’ Survives U.S. Energy Bill Signed by President Bush

Oil refiners could produce “advanced biofuel” – such as hydrotreating of vegetable/animal fats – in order to qualify for part of the 36 billion gallon “renewable fuel” mandate included in the new energy bill signed Dec. 19 by U.S. President George Bush.

Full Story >>

CARB Staff Ignores UC Study, Pushes 10% Cut in Diesel Fuel CO2 Emissions

California Air Resources Board (CARB) staff last month outlined a proposed scheme that would force both gasoline and diesel fuels to achieve separate 10% “low-carbon fuel standard” (LCFS) targets.

Full Story >>

European Commission Proposes Euro-6 Limits for Trucks & Buses

The European Commission on Dec. 21 unveiled proposed Euro-6 heavy-duty highway emissions limits that would slash nitrogen oxides (NOx) 80% and particulate matter 66% compared to current Euro-5 limits, starting in 2013.

Full Story >>

EU Pushes 130 Grams/Kilometer Vehicle CO2 Limit

On the same day that U.S. President George Bush signed a law forcing dramatic reductions in vehicle carbon dioxide (CO2) via biofuels and corporate average fuel economy (CAFÉ) mandates, the European Commission on Dec. 19 proposed a 130 grams/kilometer limit on vehicle (CO2) emissions starting in 2012.

Full Story >>

EU Unveils 10% Biofuel Directive, Biodiesel Spec; Greens Slam It

The European Commission this month plans to unveil a proposed renewable energy directive that includes a biofuels scheme, including a new 10% biodiesel specification.

A draft of the plan, titled “Directive of the European Parliament and of the Council on the promotion of the use of renewable energy sources,” was unveiled Dec. 10 as a “leaked” document by Friends of the Earth Europe (FoEE).

Full Story >>

CARB OK’s Massive Diesel Ship, Truck Cleanup Rule at Ports

California Air Resources Board on December 7 approved a new rule that will force ocean ships to switch to shore-based electric power or employ other means to slash diesel stack emissions. A related rule will force diesel truck emissions cleanup.

Full Story >>

Around the world of Diesel

Marathon Building New ULSD Unit at Canton, Ohio Refinery:

Full Story >>

Clean-Diesel ‘Invasion’ Seen Heading to U.S. Over Next Two Years:

Full Story >>

Mercedes Nearly Doubles Diesel Light Vehicle Sales in U.S. in 2007:

Full Story >>

Total Starts ULSD-Capable Hydrocracker for Low-Sulfur Diesel in China:

Full Story >>

PetroChina Starts-up ‘Premium Quality’ Diesel Refining Unit:

Full Story >>

Shanghai Automotive Industry Corp. (SAIC) Buys Diesel Engine Division of Shanghai Electric:

Full Story >>

Pemex Blowing ULSD Deadline:

Full Story >>

B20 Biodiesel Buses Stall in Cold Weather:

Full Story >>

CARB OK’s Diesel Truck Emissions Reduction Funding Program:

Full Story >>

Texas Council on Environmental Quality (TCEQ) Conditionally OK’s 5% Biodiesel (B5) as Texas Low-Emissions Diesel (Tx-LED):

Full Story >>

Bapco Inaugurates Euro-5 ULSD Refinery:

Full Story >>

Panama’s Move to 500-ppm Sulfur Diesel ‘Insufficient;’ ULSD Seen Crucial:

Full Story >>

Romanian Refiner Debuts B3 (3% Biodiesel) Blend in Euro-4 ULSD This Month:

Full Story >>

Nissan Motor, Nissan Diesel Create Light-Duty Diesel Engine Division:

Full Story >>

GM, Navistar Ink Diesel Medium Truck Deal:

Full Story >>

Navistar-International Finally Unveils Financial Results for 2003-2005:

Full Story >>

Ford Recalls 1.2 Million U.S. Diesel Pickup Trucks for Faulty Sensor That Could Stall Engine:

Full Story >>

Daimler/Orion Win Orders for More Than 1,000 Diesel-Electric Hybrid Buses:

Full Story >>

Petrobras Debuts Biodiesel Marketing Scheme:

Full Story >>

Volvo Reportedly Recalls Nearly 50,000 Cars for Faulty Diesel Particle Filter (DPF):

Full Story >>

BorgWarner Claims a ‘First’ for Clean-Diesel Ford Pickup Trucks:

Full Story >>

Beijing Officially Switched to Euro-4 ULSD, Vehicle Limits as of Jan. 1, 2008:

Full Story >>

Technip Wins Kerosene, Heating-Oil Desulfurization Contract for Total Refinery in Germany:

Full Story >>

UK Diesel Car Sales Booming, Grab 45.3% Share:

Full Story >>

Swedes Going Diesel:

Full Story >>

More News

Asia Could Realize Big Net Benefits from Diesel Desulfurization: Report

The high public health costs of air pollution could be slashed dramatically via desulfurization of diesel fuel and adoption of tougher vehicle emissions standards, according to a draft report by Clean Air Initiative (CAI)-Asia, sponsored by Asian Development Bank.

The second consultation draft of the report, “Roadmaps for Cleaner Fuels and Vehicles in Asia” is now available for public comments.

Full Story >>

ULSD Imports Down, but Production Increases

U.S. imports of ultra-low sulfur diesel (ULSD) decreased drastically from the week of Dec. 14 to Dec. 21, before increasing in the final week of Dec. 28, according to the latest data from the U.S. Energy Information Administration (EIA).

Full Story >>

Refiners to Air Views on Renewables, ‘Low Carbon Fuel Standard,’ at Clean Heavy Duty Vehicle Conference Feb. 20-22

Full Story >>

IEA: Diesel Deliveries Increase in U.S., Europe; Shortages in Asia

Winter heating fuel demand plus rising gasoil, diesel and jet/kerosene crack spreads in all regions are driving the refined product markets among the member nations of the Organisation for Co-operative and Economic Development (OECD), according to the latest Oil Market Report compiled by the International Energy Agency (IEA).

Full Story >>

China Reportedly Moving to Favor Hybrids over Diesels

According to a report from China Business News citing the state National Development & Reform Commission (NDRC), “diesel engine powered sedans will no longer enjoy preferential policies offered by Chinese government.”

However, the statement seems odd given than China has very limited sales of diesel passenger vehicles today. Almost all new passenger cars sold in China are gasoline-powered, not diesel-powered.

Full Story >>

Delhi Eyeing Euro-4 ULSD Acceleration to End-2008

Because of growing air pollution in India’s capital city, government officials are mulling plans to accelerate the introduction of Euro-4 (50-ppm sulfur maximum) diesel and similar vehicle emissions limits, to as early as end-2008.

Full Story >>

Petrobras: Clean-Diesel Advances Coming This Year

Petrobras announced that its 2008 capital spending plans will include pushing forward on its “H-Bio” scheme for refinery hydrotreating of vegetable oils into ultra-clean diesel fuel.

Among its U.S.$7.9 billion downstream investments this year: Work on the new Reduc (Duque de Caxias) retarded coking plant as well as upgrades at other refineries.

Full Story >>

U.S. Consumer Study Sees Diesel Interest Spiking, Hybrids Declining

A new U.S. consumer sentiment study sees growing interest in diesel cars, but a decline in gasoline-electric hybrid interest.

Full Story >>

China Diesel Engines Sales Up 30%; Grab 80% Share

According to the China Association of Automobile Manufacturers (CAAM), diesel engine producers in China saw an average of 30% year-over-year growth in the first nine months of 2007, compared to first nine-months 2006.

Diesel engines now have more than 80% market share in China for new commercial vehicles, a dramatic change from prior decades when China relied almost exclusively upon gasoline-powered truck engines.

Full Story >>

China Diesel Imports Skyrocket; Price Controls Depress Output

According to a report last month from China’s official Xinhua news agency, Sinopec will boost diesel imports to 500,000 metric tons this month, up from 423,000 tons in December and 287,000 tons in November.

Full Story >>

Key Prices

Distillate Watch

Full Story >>