SILAQ Meeting - Sofia, 9 April 2003 1 Fuel Quality Developments in the European Union Fuel Quality...

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SILAQ Meeting - Sofia, 9 April 2003 1 Fuel Quality Developments in the European Union International Fuel Quality Center International Fuel Quality Center Fuel Quality Policy and Technology Briefing Fuel Quality Policy and Technology Briefing Sofia, Bulgaria - April 2003 Sofia, Bulgaria - April 2003 Sandrine Dixson-Decleve, Director Europe & Africa, Sandrine Dixson-Decleve, Director Europe & Africa, International Fuel Quality Center International Fuel Quality Center

Transcript of SILAQ Meeting - Sofia, 9 April 2003 1 Fuel Quality Developments in the European Union Fuel Quality...

Page 1: SILAQ Meeting - Sofia, 9 April 2003 1 Fuel Quality Developments in the European Union Fuel Quality Developments in the European Union International Fuel.

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

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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

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International Fuel Quality Center

International Fuel Quality Center

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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

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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

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Automotive MarketAutomotive Market

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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.

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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

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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

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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

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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

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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

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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

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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.

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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)

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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.

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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

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- 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

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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

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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)

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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.

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AuAuto Oil Legislation Benefitsto Oil Legislation BenefitsAuAuto Oil Legislation Benefitsto Oil Legislation Benefits

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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

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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

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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?

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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

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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)

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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.

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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

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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

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-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

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““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

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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

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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”:

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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”:

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- - 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

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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

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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

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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

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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

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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

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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….

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Thank you! Any Questions?

Sandrine Dixson-Declève Director, Europe and Africa

International Fuel Quality [email protected]