While diesels barely account for 3% of U.S. new passenger vehicle sales today, tougher U.S. fuel economy/carbon dioxide (CO2) limits and future petroleum price hikes likely to result in a 10% to 15% diesel share of the U.S. light vehicle market by 2020.

Ford and PSA Peugeot Citroën September 29 announced a €300 million (US$409 million) Euro-6 diesel engine development deal, on the heels of joint production of 16.5 million diesel engines over the past decade.

While General Motors annually sells more than 1 million diesel-powered passenger vehicles around the world, it doesn’t have a light-duty diesel vehicle for the U.S. market – mostly because of relatively higher ownership costs for diesels in the U.S. (including lower taxes on gasoline than diesel).

Mahindra’s plan to introduce light-duty diesel pick-up trucks to the U.S. market remains up in the air following new charges and counter-charges between Global Vehicles USA (the U.S. dealer network) and Mahindra corporate in India.

Audi unveiled the “e-tron Spyder” diesel plug-in hybrid electric vehicle (PHEV) at the Paris Auto Show September 29.

MRS Logistica announced September 24 that it ordered 115 GE “AC44i” diesel locomotives with an option for 100 more, the largest-ever locomotive purchase in the history of Brazil.

Fluor announced September 28 that they’ve won a contract from Shell for the “Hijau” (green) gasoil hydrotreating project in Malaysia, which will enable production of Euro-2 (500 parts per million sulfur) diesel from sour crudes.

Indiana Lt. Gov. Becky Skillman (R) on September 15 unveiled a proposed US$3 billion, 22,000 barrels/day coal-to-liquids (CTL) project that would employ direct coal liquefaction rather than the more typical gasification and Fischer-Tropsch synthesis.

Axens announced September 27 that it has won a hydrotreating technology contract for the new Socar & Turcas Aegean Refinery in Turkey.

Shell said it plans to start production of condensate and liquefied petroleum gas at its under-construction “Pearl” gas-to-liquids (GTL) plant in Qatar in first-quarter 2011, followed by Fischer-Tropsch diesel, jet fuel, naphtha and lubricants production in second-quarter 2011.

Taiwan-based CPC aims to boost exports of ultra-low sulfur diesel (ULSD) in 2011 following the completion of a hydrodesulfurization facility project, according to a September 27 China Knowledge report.

PBF Holding Co. LLC announced September 27 that it signed a deal to buy the 185,000 barrel-per-day (b/d) Paulsboro, N.J., refinery from Valero Energy Corp. for about US$180 million in cash, plus a $180-million note.

China’s total coal-to-liquids (CTL) capacity is expected to hit 30 million metric tons per year by 2010, with 10 million tons of that in CTL chemicals and 20 million tons in CTL fuels, a top Shenhua official said.

State refiner Bapco is encouraging greater dieselization of the passenger vehicle fleet in Bahrain, according to a September 24 report from the Gulf Daily News (Bahrain).

Ultra low sulfur diesel prices in key spot and futures markets rose last week primarily on supply concerns arising from French refinery strikes.

Spot and futures distillate prices rose on supply concerns arising from French refinery strikes last week.