Clean Fuel Study, Events Add to Low Sulfur Fuel Momentum
27 October 1999
Clean Fuel Study, Events Add to Low Sulfur Fuel Momentum
WASHINGTON, Oct. 26 -- Automakers today launched a new
website devoted to low sulfur fuel and released study results demonstrating
that low sulfur fuel is economically viable.
"Our study results add to the momentum of countries, communities and
companies that are moving toward low sulfur content in fuels," said Josephine
S. Cooper, President, Alliance of Automobile Manufacturers. "Sulfur is the
lead of the '90s, and we must get the sulfur out of fuels to have cleaner air.
Many recent developments show that low sulfur fuels are part of a global
environmental trend."
More information on these developments, which document that low sulfur
fuel will be more readily available worldwide during the 2003-2004 timeframe,
can be found on the website unveiled today by automakers:
http://www.lowsulfurfuel.com. The new economic impact study results are posted on
this website.
The Alliance contracted with MathPro Inc., a technical analysis firm, to
study the economic impact of moving from fuel with a sulfur content of 30
parts per million (ppm) to 5 ppm. MathPro concluded that this move to ultra-
low sulfur fuel would increase gasoline costs by about 2-3 cents per gallon,
representing $12-18 per year for the average driver. The U.S. Environmental
Protection Agency (EPA) has estimated that the cost of reducing sulfur in gas
from today's average level of 300 ppm to 30 ppm is about 2 cents per gallon.
Sulfur inhibits the effectiveness of the catalytic converter in today's
vehicles. Reducing the amount of sulfur in gasoline enables the catalytic
converter to work more efficiently. This results in lower emissions and
cleaner air. Low sulfur fuels would also provide immediate clean air benefits
when used by the 200 million vehicles on U.S. roads.
"The technology for sulfur removal is in widespread use in California,
Japan, Europe, and other areas of the world. Recent announcements by ARCO,
Tosco, BP Amoco, Phillips and Koch show that the refining industry is moving
toward low sulfur fuels voluntarily," said Cooper. "In the U.S., more than a
dozen states have urged the EPA to require low sulfur fuels nationwide."
In 1999, momentum has been growing for a nationwide low sulfur fuel:
* EPA: In May 1999, EPA proposed its "Tier 2" rule, which the agency has
called its biggest clean air decision in the next decade. This "clean autos
and fuel" rule, which should be final at the end of 1999, would reduce
tailpipe emissions of hydrocarbons and nitrogen oxides from cars, sport
utility vehicles, minivans and pick-ups, plus reduce sulfur in gasoline to
produce a cleaner burning fuel.
* Georgia: In May 1999, Georgia Gasoline, a low sulfur content fuel, was
introduced in a 25-county area in North Georgia. In August, the Georgia
Environmental Protection Division released plans to introduce low sulfur fuel
in 45 counties by 2003.
* BP Amoco: On July 22, 1999, BP Amoco announced plans to voluntarily
provide low sulfur gas (30 parts per million, or ppm) in premium fuel at its
550 gas stations in Atlanta, four years ahead of a Georgia mandate. Earlier,
BP Amoco announced it would voluntarily sell cleaner-burning, low sulfur
gasoline in 40 cities worldwide with air quality problems. According to news
reports, the company intends to provide low sulfur fuel at all its 14,000 U.S.
gas stations within 3-5 years. On October 14, BP Amoco announced its low
sulfur fuel is now available in premium fuel in Chicago and NW Indiana, and
this will be expanded to all grades in the Spring of 2001.
* North Carolina: In July 1999, North Carolina's governor signed
legislation requiring gas stations statewide to sell low-sulfur fuel (30 ppm)
by January 2004.
* California: In August 1999, the California Air Resources Board began
taking additional action to improve air quality. To enable the introduction
of more stringent "Low Emissions Vehicle 2" emissions standards, the Board is
investigating the adoption of even lower sulfur standards for gasoline, a move
which could cut sulfur levels to 10-20 ppm. In 1996, CARB lowered sulfur
content in gasoline from 300 ppm to the current level of 30 ppm.
* Phillips: On August 31, 1999, Phillips Petroleum Company unveiled a new
technology that significantly lowers sulfur content in gasoline. This
process, according to Phillips, costs no more to implement, has little octane
loss and very low volume loss.
* Germany/Europe: In September 1999, Germany moved forward with a fast-
track program for low sulfur fuel. On January 1, 2000, super unleaded pumps
will provide 10 ppm sulfur gasoline. On January 1, 2003, the government will
provide an incentive for all stations providing 10 ppm sulfur fuel. The
European Union is expected to consider adopting a similar standard by 2005.
* Koch Petroleum: On September 22, 1999, Koch Petroleum Group and Holiday
Stationstores unveiled a new low sulfur fuel, called Blue Planet Earth
Friendly Gasoline, at 100 Holiday Stationstores in Minneapolis-St. Paul.
The Alliance of Automobile Manufacturers is a coalition of car and light
truck manufacturers. Alliance member companies have approximately 600,000
employees in the United States, with more than 250 facilities in 35 states.
Alliance members represent more than 90 percent of U.S. vehicle sales.