January 10, 2011
Volume: 15
Issue: 2

Regulation & Legislation

Ukraine Postpones Euro-4/Euro-5 Switch to July 2011

Ukraine’s state committee for technical regulation announced December 28 that it has decided to postpone the country’s switch to Euro-4 (50 parts-per-million sulfur maximum) and Euro-5 (10 ppm sulfur) fuel standards until July 1, 2011 – six months later than originally planned.

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‘Uncertainty Formula’ Calculations Wipe-Out LCFS Gains

According to a new study, fuel producers and developers of Low Carbon Fuel Standard (LCFS) regulations lack crucial information about the true carbon-reduction impact of proposed and current LCFS and biofuel-mandate rules.

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Diesel Ship Emissions Cleanup Delay Provokes New York Politicians

Annoyed by two years of delays in finalizing a deal to stop diesel emissions at the Brooklyn cruise-ship terminal, a host of U.S. and New York state politicians last week called for quick approval of an alternative shore-power scheme that would shut down ship diesel engines while in the port.

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Beijing Confirms Euro-5 Standards for 2012; Buses Jump the Gun

Beijing city officials announced December 30 that the city will adopt “State-V” vehicle emissions standards in 2012, equivalent to Euro-5 vehicle standards (which require 10 parts-per-million sulfur limits on diesel and gasoline).

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India May Delay Diesel Price Deregulation Until April

The chairman of India’s national economic advisory council announced January 3 that the government may postpone diesel price deregulation until the start of the next fiscal year – April 2011.

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MARAD Convenes Hearings on Cleaning Up U.S. Great Lakes Diesel Shipping

The U.S. Maritime Administration (MARAD) announced December 29 that it will conduct public meetings on February 4, 15 and 23 to discuss an in-development “Great Lakes Fleet Revitalization Study” focused on possible financing options for complying with upcoming emissions rules for diesel-powered shipping.

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Technology

UP, Johnson-Matthey, CARB Team-up on Tier 4 Locomotive DPF Test

California Air Resources Board (CARB) announced December 30 that it awarded a US$346,000 grant to install diesel particulate filters (DPF) on a Union Pacific switcher locomotive to test for compliance with U.S. Environmental Protection Agency (EPA) Tier-4 limits for particulate matter (PM).

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Feature

Europe’s First Fast-Pyrolysis Demonstration-Scale Project Plunging Ahead This Year

Partners in Europe’s “Empyro” project announced January 3 that they’re moving ahead this year with a pioneering scheme to convert biomass into pyrolysis oil (py-oil), which (initially) would be used to produce electricity, steam, organic acids. The partners hope that the scheme can pave the wave for advanced, non-food-based biofuels.
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Transport News

APL Inks Ship Stack-Scrubbing Test Deal with Los Angeles/Long Beach Ports

The giant Ports of Long Beach/Los Angeles announced January 6 that they’re putting up nearly half of the US$3.4 million cost for demonstrating a novel ship seawater scrubbing system on a diesel-powered APL container ship.

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Diesels Propel Audi-U.S. Car Sales to All-Time Record

Audi officials reported January 4 all-time record U.S. car sales in 2010, at 101,629 units, “propelled by demand for TDI clean diesel vehicles.”

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Huatai Auto to Debut More Diesel-Powered Cars

Huatai Automobile Group aims to roll-out eight new diesel engines for six new diesel passenger vehicle platforms plus three existing platforms in China over the next five years, according to a December 31 First Financial Daily (China) report.

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Distillate Markets

NYMEX Heating Oil Futures/Options Contract Volume Soars

Trading volume for NYMEX heating oil (gasoil) futures and options for the entire 2010 year jumped by a whopping 25%, according to newly released figures.

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China Integrated Energy Signs LOI to Acquire Hainan Facility, Build New Biodiesel Plant

China Integrated Energy, Inc. January 3 announced that it has signed a non-binding letter of intent (LOI) to acquire all the assets of Hainan Lin Gao Chemical Co., Ltd. for a total cash consideration of about US$9 million. The price includes a land use right to about 15 acres of land, an oil storage facility with 15,000 cubic meters of storage capacity and built-in infrastructure including power, water and waste treatment.

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Thai Government Subsidizing Biodiesel Blends

The government of Thailand’s energy policy committee announced January 5 that it will divert funds from the state Oil Fund to subsidize 3% and 5% blends of biodiesel in diesel fuel (“B3” and “B5”), beginning January 6.

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ENOC Touts ‘Green’ Fuel Station, ‘Very Low Sulfur Diesel’

The Emirates National Oil Co. (ENOC) announced January 4 the debut of what it terms its first “green service station” in Dubai, including the introduction of what the energy group calls “very low sulfur diesel” for motorists.

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GS Caltex Expanding Heavy-Oil Upgrading Capacity

GS Caltex announced January 4 that it will invest US$981 million in a fourth facility for heavy-oil upgrading (HOU) at Yesou, South Korea – enabling the conversion of more heavy bunker “C” residual fuel oil into low-sulfur diesel and gasoline.

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Qantas, Solena in Bio-Jet-Fuel Venture: Report

Australia-based Qantas Airways and U.S.-based plasma gasification specialist Solena this month will announce a new scheme to produce bio-jet-fuel from wastes, according to a January 2 report by The Guardian (U.K.).

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Market Report: ULSD Spot, Futures Mostly Flat in U.S., Down in Europe

Ultra-low sulfur diesel (ULSD) spot and futures prices were mostly flat in the U.S., slightly higher in Asia and down in Europe last week.

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Distillate Watch

Distillate spot and futures prices were flat in the U.S., but down in Europe last week.

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