Europe's downstream oil industry has backed European Commission (EC) plans to reformulate motor fuels in pursuit of cleaner air, even though this will require oil companies to invest $9 billion by 2000.
At a U.K. Institute of Petroleum conference in London July 12, the U.K. Petroleum Industry Association (Ukpia) said motor fuels have a role to play in meeting clean air goals, and the oil industry is committed to that effort.
Proposed EC exhaust emission and transportation fuel standards are meant to cut Europe's emissions of carbon monoxide, nitrogen oxides, and volatile organic compounds by 60-70% from current levels by 2010 (OGJ, July 8, p. 37).
Emission cuts proposals
The proposals are the outcome of the European Auto-Oil program, under which the EC and oil and auto industries worked to find the most cost-effective way to meet World Health Organization air quality targets.
"According to EC consultants," said Ukpia, "the total cost for Europe of implementing the measures proposed will be 4 billion/year ($6 billion/year) for 15 years. Significantly, the studies show that changes to vehicle design have a greater impact on emissions than changes to fuel specifications, and the current proposals reflect these results.
"However, improved vehicle inspection and maintenance programs offer the quickest improvements and greatest reductions at least cost to society."
Ukpia said the automobile industry also will need to spend $9 billion by 2000 on capital investments in order to meet the EC targets.
A European Petroleum Industry Association (Europia) official told Oil & Gas Journal its members will have to develop more advanced fuels to meet the new specifications.
Most of the anticipated capital outlay will be for refinery configuration. This will put extra financial strain on an already tight market beset by overcapacity and low margins (OGJ, Mar. 25, p. 21).
Second program needed?
EC proposes a second Auto-Oil program-albeit under a different name-be set up to assess the need for more measures to come into effect by 2005.
Michel Flohic, deputy secretary general of Europia, said that before any more transportation fuel spec changes are tabled, further monitoring of air quality is essential to estimate the size and nature of the problem.
"However...this time, the analysis will have to focus primarily on non-transport emissions sources, the use of alternative fuels-in particular LPG and CNG for urban captive fleets-and a better evaluation of the role nontechnical and local measures can play, for example, incentives to encourage replacement of older polluting vehicles, effective traffic management policies, and improved public transport."
Flohic said the main target for future emissions legislation should be stationary sources, notably the power and solvents industries and residences.
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