Tuesday, September 22, 2015

Phase 2 Greenhouse Gas Emission Standards are On the Way


The U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration have extended the comment period until October 1, 2015 for those who want to weigh in on proposed new rules affecting Heavy-Duty diesel engines and vehicles. The proposed joint national program known as “Phase 2” rulemaking would establish the next step to combat greenhouse gas emissions and increase fuel efficiency standards.

The details of the proposal can be found at the EPA web site. There are no shortages of viewpoints about these proposals. However one potential impact could be on the Diesel Exhaust Fluid (DEF) market in the years to come. 
  


Phase 2 and DEF 

DEF has been used in the U.S. at increasing rates since the EPA instituted mandates in the past decade to reduce NOx emissions from diesel engines. DEF is sprayed into the exhaust stream of diesel vehicles to break down NOx emissions into nitrogen and water. Now it appears DEF could be used at a higher dosage levels to help meet new Phase 2 requirements.

 

Benecor, the leader in DEF dispensing and storage solutions which are available through a strategic alliance with Husky Corporation, has combed the proposed Phase 2 rules for insight on the market potential. Currently DEF is consumed in diesel engines at a rate of about 3.5 gallons for each 100 gallons of fuel; or a dosing rate of approximately 3.5 percent.  But the average DEF dosing rate could be more than six percent in 2020 as a result of the Phase 2 emission targets now being considered.

Opportunities to Meet Growing DEF Demand
The EPA contends the Phase 2 proposals would “further reduce fuel consumption and carbon pollution through performance-based standards based on robust technical data and extensive stakeholder outreach. This new phase of the national program would benefit businesses and consumers, saving the industry billions of dollars’ worth of fuel, reducing the costs for transporting goods, while reducing GHG emissions by 1 billion metric tons.”

The industry will be following the rule making very closely. But it seems clear that DEF, which played a significant role in earlier EPA diesel emissions targets, will be a big part of future. For assistance in making sure you are ready to serve the needs of diesel customers who will need increasing quantities of DEF, contact Husky Corporation to discuss Benecor’s complete DEF dispensing and storage solutions at 800-325-3558.