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Welcome to the newsletter of SGS INSPIRE, the newsletter that keeps you informed about the latest global developments in fuel quality. Read our update from the world's regions.
Global
Maps
SGS INSPIRE published several maps:
✓: among African countries, those in Eastern and Southern Africa have the most stringent limits for sulfur in diesel. Northern, Western and Central Africa have the least stringent. In Asia and the Middle East, Indonesia, Pakistan, Afghanistan, Iran, and Iraq have the highest limits for sulfur in diesel. In Latin America, Argentina and Brazil are facing difficulties in phasing out high sulfur diesel.
✓: the map indicates average ethanol content per ethanol and octane grade sold in Europe, Bolivia and Asia (the only regions where ethanol is being blended into gasoline). Brazil has the highest ethanol blending mandate in the world. Most countries in Asia do not require mandatory ethanol blending, thus gasoline contains small volumes of ethanol. The vast majority of gasoline sold in the United States consists of an E10 (ethanol content up to 10% v/v) blend. In Europe, E10 gasoline grade is becoming increasingly popular as EU member states are striving to grow renewable energy’s share in transport.
✓: the map indicates the average biodiesel content for all countries blending biodiesel in diesel. Indonesia has the highest biodiesel blending level in the world, followed by Malaysia and Colombia. Europe allows up to 7% v/v of biodiesel blending, and the U.S. 5 %v/v.
✓: countries with the largest market for new vehicles have implemented the Euro 6 exhaust emission standard or US Tier 3 standard. However, there are still many countries without any standards, or low standards, such as Euro 2 and Euro 3.
Webinars
EU revises climate and energy legislation to deliver 55% greenhouse gas emissions reduction by 2030
On July 14, 2021, the European Commission (EC) revealed its long awaited and already intensely discussed legislative package "Fit for 55." This package is expected to propose new legislation and revise some existing legislation to set the EU's pathway toward the block’s goal of achieving a 55% greenhouse gas (GHG) emission reduction target by 2030, compared to 1990 levels.
On July 27, 2021, SGS INSPIRE delivered a to provide an overview of the Fit for 55 package, focusing on its possible implications for fuels (road, aviation and marine), vehicles, transportation and energy intense sectors.
Renewable Diesel – a key fuel in helping North America decarbonize
Since the onset of the Renewable Fuel Standard (RFS) and California’s Low Carbon Fuel Standard (CA LCFS), the volume of biofuel required to be blended with conventional transportation fuels has grown significantly. However, this process has not been without problems:
✓Reliance on first generation, non-drop-in fuels has hit practical limits (e.g. “blend walls,” uneconomic mid-level blends)
✓There have been a number of challenges to key elements of these schemes, such as judicial challenges to small refinery exemptions and refinery industry concerns over the cost of compliance (e.g. Renewable Identification Numbers (RINs))
A number of refiners have sought to enter into the biofuel realm in order to reduce compliance costs and, in some cases, profit from these schemes. One key technology has been hydrotreatment of fats and oils (e.g. renewable diesel), whose penetration into the fuel pool will likely increase sharply over the next few years.
On August 18, 2021, SGS INSPIRE organized a to discuss recent developments regarding renewable diesel in North America – from the perspective of their regulatory drivers and the resulting market dynamics.
Going beyond B30 biodiesel blend in Asia
Southeast Asian countries currently implement the highest biodiesel mandates in world. These mandates are driven by governments’ commitments to reduce their dependency on fuel imports by utilizing domestic resources. The region is the largest producer and exporter of palm and coconut oil. Thus, palm and coconut oil are currently used as the main feedstock for biodiesel production.
On September 22, 2021, SGS INSPIRE organized a looking at the current and future biodiesel regulations and mandates in major countries in Southeast Asia.
Specifications database
We updated fuel quality requirements for the following countries and territories in our global fuel quality specification database, which now contains 5,100 entries:
Australia (reference fuels: diesel, gasoline, ethanol blend, CNG, LPG), China (hydrogen), European Union and Balkans (biodiesel blend B10), France (ethanol ED95), Guyana (diesel), Mongolia (MTBE), Philippines (gasoline, aviation turbine fuel), Sweden (ethanol ED95), Taiwan (reference fuel gasoline), Turkey (reference fuels: diesel, ethanol ED 95), United States (gasoline state-regulated in Pennsylvania, Philadelphia Metro, Rhode Island, South Carolina, Vermont, Virginia, West Virginia)
Upcoming
Maps
Global map on regulatory limits and actual content of olefins in gasoline
Webinars
Global biofuels outlook
The global biofuels market is becoming much more fragmented as the U.S. and Europe focus on road transport decarbonization through electrification, while some of the largest food crop producing countries continue to implement ambitious bioethanol and biodiesel mandates. On November 10 and 11, 2021, SGS INSPIRE is organizing a webinar on the global biofuels outlook 2030. By joining this webinar, you will learn about the current and 2030 biofuel policy and market outlook for road transport. for the webinar.
Reports for sale
✓Global biofuels outlook to 2030
✓ASEAN biodiesel outlook to 2025
✓Global: Octane in gasoline and octane enhancers
✓Mexico: Overview of diesel quality
✓Indonesia: Overview of diesel quality
✓European Union: hydrotreated vegetable oil outlook 2030
✓United States: Overview of gasoline quality specifications in PADD 1 states
Europe
On July 14, 2021, the EC proposed the “Fit for 55” package consisting of legislation that aims at delivering the EU’s pledge to become carbon neutral by 2050. It proposed important changes to the legislation affecting energy and transport sector:
✓13% for renewable energy used in all transport modes to be achieved by 2030. This target will replace the current 14% renewable energy share target for road and rail transport set for 2030
✓ as from 2025
✓ for maritime sector as from 2025
Since BREXIT, the UK sets its own climate and energy policy:
✓July 14, 2021 was a key milestone when the UK Department of Transport (DfT) published its ambitious for the whole transport sector
✓On the same day, the DfT reported on its plans to increase the
✓A green paper was also published to further for all new road vehicles by 2035
✓On July 23, 2021, the DfT proposed a to blend an increasing volume of SAF into aviation fuel from 2025
✓On August 17, 2021, the UK Department for Business, Energy & Industrial Strategy (BEIS) announced its with a production capacity of 5GW by 2030
✓ was introduced to the market on September 1, 2021
In August 2021, SGS INSPIRE reported on the grade in Spain with only 6 stations, out of 11,600, offering it. Sales of E10 have been allowed since the end of 2020. Hydrotreated Vegetable Oil (HVO) is becoming a popular alternative to diesel in the European markets, both as high level blend in conventional diesel or as pure HVO. Pure HVO in the form of is currently being offered in nine European countries.
The approval procedure for the B10 standard is currently under way. It is expected to be voted on by May 6, 2022. Key changes in the draft standard can be found .
Upcoming
European Union country gasoline and diesel country profile update.
Europe’s biodiesel outlook to 2030 will be published later this year.
Commonwealth of Independent States
In 2021, for the first time, Russia started discussing CO2 reduction measures mainly due to its trade relations with the EU which has set ambitious climate goals. The EU is an important market for Russia’s energy industry. AT the beginning of August 2021, Russia published a which foresees 2 million tonnes of hydrogen exports by 2035. Later in August 2021, Russia also published an which sets a goal of 9,400 charging stations by 2024 and development of the EV production industry.
On a different note, Russia’s fuel quality monitoring body Rosstandard published fuel quality monitoring for the year 2020. It observed 20% non-compliance rate, mainly in the Far East and Siberian regions. The majority of non-compliances are related to sulfur in the sampled diesel.
Upcoming
Kazakhstan gasoline and diesel country profile update.
North America
The U.S. Environmental Protection Agency (EPA) proposed new, stricter in a bid to replace standards issued in 2020 under then-president Donald Trump. The agency has also been stepping up of criteria emissions violations, particularly those tied to illegal tampering of emissions control hardware or installation of defeat devices in diesel trucks. Last but not least, the agency also promulgated an loosening Reid vapor pressure standards in states affected by Hurricane Ida.
Hurricane Ida also caused some from the Gulf Coast to some hydrogen retail stations in California. While California’s network of stations is set to continue to grow, state authorities themselves acknowledged in a recent that the rollout is behind schedule. These disruptions are occurring in a context where hydrogen appears to be gaining momentum in the state and the U.S. more broadly, as detailed in an .
Cargill and Marathon Petroleum announced a enabling greater security of supply for Marathon’s Dickinson, ND renewable diesel plant. Such deals could become more commonplace in coming years, particularly if President Joseph Biden’s to promote a ramp-up in sustainable aviation fuel production in the U.S. proceeds as announced.
Upcoming
The North American biofuels outlook will be published later this year.
South and Central America
The Mexican government is planning to update last fuel quality setting stricter limits and a more complex fuel quality monitoring system, amongst other changes.
In August 2021, Argentina published its new biofuel policy, updating the 2006 version. This modifies several parameters of the biofuels framework, includingthe biodiesel mandate.
for 2021/2022 was reduced by CONAB due to adverse weather conditions. For this reason, production of sugar and ethanol projections were also modified.
Furthermore, biodiesel consumption for the months of September and October increased from , but in the auction for the next two months the biodiesel blend mandate decreased again. Fuel prices have been the main driver for this decision.
Also, in Colombia, were modified for the coming months. The main reason was the COVID-19 pandemic and its consequences, and these biofuel mandates have been established depending on the region.
Traditionally, Argentina has used MTBE and ethanol as oxygenates. Since August 2021, in one refinery to replace MTBE.
Upcoming
The Latin American biofuels outlook will be published later in the year.
Asia and Oceania
Indonesia’s national oil company Pertamina has confirmed that it will supply diesel/biodiesel blend with a maximum sulfur content of , mainly for premium diesel grade, across the country from April 1, 2022.
Also in Indonesia, the government plans to 13 million gasoline-powered motorcycles to run on electricity by 2030. A pilot project will start with converting 108 gasoline-powered motorcycles owned by the Ministry of Energy and Mineral Resources by end of 2021.
In China, the Beijing Municipal government released new gasoline and diesel standards known as “Beijing 6B” to replace the current “Beijing 6” standards from December 1, 2021. When it is implemented, the will be amongst the most stringent in the world.
The Indian government extended its EV scheme, the Faster Adoption Manufacturing of (Hybrid and) Electric vehicles in India (FAME India) Phase II, . To ensure that the EV targets are met, the government is focused on the electrification of three-wheelers across the country, started with the government’s fleet.
The Japanese government announced the which largely focuses on decarbonization efforts. Under the draft, hydrogen and ammonia is set to account for 1% of total energy used in power generation by 2030.
Upcoming
Viet Nam overview of diesel quality update.
Asia biodiesel outlook to 2030 will be published later this year.
Africa
Algeria in July 2021. It was the last country in the world with leaded gasoline in the market.