The United Arab Emirates has become the first GCC state to introduce ultra low sulphur diesel (ULSD), after the Emirates National Oil Company (ENOC) announced that all service stations in the ENOC/EPPCO network are now providing the ultra-low sulphur ‘Green Diesel.’
It follows a decree from the UAE Federal Cabinet that UAE should use diesel with only 10 parts per million (ppm) sulphur, rather than diesel with 50 or 500 ppm sulphur that is in use in the rest of the GCC.
The Green Diesel corresponds with a Euro 5 standard, and the decree from the Federal Cabinet was aimed at promoting the UAE’s environmental sustainability by limiting pollution.
“Diesel is graded by its sulphur content as a general rule as removing it implies a reduction in particulate matters and pollutants. Therefore, using 10ppm diesel leads to lower emissions, and cleaner air quality,” said Saeed Khoory, chief executive officer of ENOC.
“The Federal Government has made it mandatory that the environment-friendly Green Diesel is used by motorists, in turn contributing to a greener and cleaner environment. ENOC will continue to be at the forefront in promoting the use of Green Diesel as part of our corporate social responsibility.”
“As one of the first providers of ultra-low-sulphur diesel in the UAE, we will work with all concerned stakeholders – including government departments and motorists – to further promote its usage.”
In Europe and developed markets elsewhere, the introduction of cleaner diesel was matched with the introduction of cleaner burning engines from vehicle manufacturers.
According to international fuel consulting firm Hart Energy Research & Consulting, other GCC nations including Saudi Arabia are likely to follow the Emirates’ lead, but it will take some time for the refinery upgrades required for the cleaner fuel to be completed. Implementation of cleaner diesel fuel across the region is likely to be a prerequisite for manufacturers to consider introducing cleaner diesel engines in vehicles.
“Saudi Arabia is expected to adopt ULSD in the Kingdom by 2016 under its clean fuels roadmap, but we expect full implementation will be more likely in the 2017-2018 timeframe. We expect Bahrain to follow suit toward the end of the decade given how linked the fuel markets are between the two countries.
“The timing of the introduction of ULSD in Oman, Kuwait and Qatar are dependent on refinery projects that are now underway. Oman’s and Qatar’s refinery projects are expected to be completed by 2016; Kuwait’s, 2018-2019.”
According to Khoory, ENOC is absorbing the additional cost involved in distributing the low-emission diesel in the UAE.