VeryOne Newsletter Issue n°4

HIGHLIGHT

New VeryOne Storage in the Chicago Area

This summer 2015, EURENCO has commissioned a new storage at Hammond (Indiana), located 20 miles South of Chicago (Illinois).

Wolf Lake Terminal (WLT), the family-owned company that runs the storage, offers a unique experience and over 40 years of expertise in the management of hazardous materials. This facility is equipped with the best tools to assure the safest operations, while offering flexibility for the customers.

Loadings are possible with railcars, tanker-trucks and ISO containers. Special packagings are also possible in totes and drums.

This new tank gives an additional 500 metric ton storage capacity (130.000 gal / 4.000 barrels / 1 million lbs), and confirms EURENCO’s leadership in the US Cetane Improver market.

Indeed, it boosts EURENCO US storage capacity to 8.500 metric tons (2.2 million mag / 75.000 barrels / 18.7 million lbs). Moreover, it completes EURENCO’s national coverage with a strategic distribution network Gulfcoast – Westcoast – Midwest.

This new storage underlines EURENCO’s commitment to offer reliability, proximity and continuity to its customers.

EURENCO NEWS

 

NOx Emissions at EURENCO Sorgues Plant

VeryOne production is carried out through two parallel lines, for a total annual capacity of 80.000 tons.

Thanks to the command of a clean technology, specific to EURENCO and developed since the 1980s, the production of VeryOne Cetane Improver generates a very low level of NOx emissions during the various stages of the process.

Visuel D Ayer 3 copie copie

Compounding a low reaction temperature with the specific geometry of our nitration facility induces very low gas emissions in our nitration process (< 80 mg/Nm3 of air).

Regular monitoring is carried out, using EURENCO internal resources, on each of the facilities that can potentially generate NOx emissions. This expertise reveals VeryOne’s commitment to the respect of environmental standards.

Furthermore, old acids deriving from our production process are entirely reprocessed in dedicated facilities. In these units, NOx emissions are captured in adapted systems, treated and recycled as low concentration nitric acid, to be reconcentrated later on, prior to being reinserted in the production process.

The final gas emissions generated by our acid treatment facilities are compliant with the prefectoral decree and the NF EN 14792 standard, as it is much lower than 500 mg/Nm3 of air.

Once again, VeryOne reasserts its commitment to the respect of the environment.


Aging of VeryOne Cetane Improver

EURENCO has released the results of a 10-year shelf-life study of its VeryOne Cetane Improver.

Because long storage and its possible consequences on VeryOne Cetane Improver can be a concern for its day-to-day users, EURENCO has conducted a shelf-life study in glass containers exposed to daylight throughout the last 10 years. During this time, no change in the repeatedly measured specified parameters could be detected. This means that purity, acidity, water content and color not only remained conform, but also did not alter or evolve for 10 years.

Also, understanding the need for information about the storage of metal drums, EURENCO has started about 4 years ago a still-ongoing shelf-life study in metal drums. As of now, no change or degradation of the product could be detected.

The results from this study validates the unique and unfading quality of the VeryOne Cetane Improver, demonstrating the long expertise and incomparable workmanship of EURENCO.

BUSINESS NEWS DIESEL

 

 Diesel Consumption in France: a Heavyweight in Europe

In 2014, diesel consumption in France for cars and light vehicles went up 0,7% to reach 19.622.000 m3, whereas gasoline consumption went down 0,2% to 8.719.000 m3. Overall, diesel consumption by cars and light vehicles represents 70% of fuel consumption in France.

This light rise almost compensates the 1% drop in 2013. However, for gasoline, consumption has been steadily dropping since before 1990, at a rate of 5% each year before 2014. This might be due to the recent change of mind in France’s executives towards diesel fuel.

As far as trucks are concerned, diesel consumption dropped 2,4% in 2014, versus 0,4% in 2013. This might be due to the frozen economy in Europe that does not help commercial exchanges.

On the whole, diesel consumption for motorized vehicles represents 80% of the total fuel consumption in France, an all-time high.


Focus on Paris (France) and its Diesel Policy

With the new Paris Mayor Anne Hidalgo’s announcement in 2014 to « ban diesel in Paris by 2020 », diesel vehicles are now in question in Paris.

Diesel is the most used fuel in France for light vehicles. However, Paris does not follow this rule.

As of 2010, diesel represented 41% of light vehicles in Paris, as opposed to 64% throughout France. However, the ratio of diesel vehicles in Paris doubled over the last 10 years.

This can be explained by the trend in new cars bought by users. For more than 10 years, newly registered diesel cars sold more than twice as much as gasoline cars. Indeed, every year since 2003, around 30.000 new diesel cars are sold, versus 15.000 new gasoline cars (see graph below).

However, considering the recent political events, one can wonder whether this trend will last.

Micro particles have drawn attention to themselves in the past few years, mainly because studies were published that associated them with cancer. Those micro particles have been linked to diesel consumption, though this is not entirely true. Indeed, 1 vehicle constructed according to Euro III standards produces as many micro particles as 200 Euro VI vehicles.

Hence, what the Paris Mayor truly meant to express is her will to ban old diesel from Paris by 2020.

Second-hand cars constitute the biggest car market in Paris as of 2013 (see graph), and it has been so for more than 10 years now. Paris’ car fleet is getting old, with more than 1 out of 5 light vehicles dating back to before 2011 (Euro IV standards).

 

New Regulations

According to a radio interview of Anne Hidalgo, broadcasted early in 2015, Paris should get rid of diesel vehicles older than Euro IV standards by 2020, with some exceptions for low-income households.

This issue will be addressed progressively. Heavy-duty vehicles and buses produced before 1997 are already not allowed in Paris between 8am and 8pm. According to Paris’ City Hall, this should be extended to all types of vehicles (diesel and gasoline) by July 1st, 2016. Between 2017 and 2020, vehicles produced before 2001, 2006 and 2011 will be progressively banned, hence ensuring that no more vehicle produced before 2011 is allowed in downtown Paris by 2020.

During this time period, the City Hall offers to help Paris citizens undertake this transition.

 

Incentives

For professionals, Paris Mayor offers up to 15% discount off for the purchase of new electric or gas vehicles, limited to 9.000€.

For private individuals, Paris Mayor offers to either contribute 400€/year for a « Velib » subscription (Paris public bicycle network), or help in the purchase of an electric bike. She is also willing to pay for 50% of an « Autolib » subscription (Paris public electric car network).


War on Air Pollution in China

As China’s pollution keeps on growing, authorities are more than ever concerned about air quality, which level is today much below other countries of equivalent economics ranges. This situation leads to higher PM2.5 concentration rates in most cities (see graph below). 

China has become the largest emitter of greenhouse gases and the greatest vehicle market in terms of annual growth, overtaking the United States. China’s transportation CO2 emissions have doubled from 2000 to 2010, and are projected to increase by a further 50% by 2020. Vehicle emissions are claimed to be responsible for about 31% of city PM2.5 in Beijing, and account for over 40% of city-center air pollution.

Within 10 days in Harbin, China (October 2013) Source: Agence France Presse

Since 2001, fuel quality control stays uneven across the country. China’s ambition to reduce emissions will mainly work on coal use in the industry, but China’s government also promised to get « China V » diesel and gasoline specifications running in the country by January 1st 2018. This includes a decrease in Sulfur content of 10ppm countrywide, and Cetane Index for Diesel Fuel to minimum 47, up to 51 in some parts of the country depending on outside temperature in the area. These measures should help put China’s emissions situation back on tracks.

Source: International Council on Clean Transportation

EVENTS

 

ICIS European OXO Alcohols Conference

(Amsterdam, May 12, 2015)

The last OXO Alcohols Conference, which was held in Amsterdam last May, welcomed 54 participants. All major European OXO producers were present.

2-EH alcohol is the main raw material that enters into the composition of mass consumption plasticizers such as DOP. As DOP is progressively stopped, 2-EH producers are setting their sights on new generation plasticizers such as DOTP. However, the need for new generation plasticizers being lesser in terms of volumes, European 2-EH producers currently suffer from overcapacity. They are compelled to export, hence causing prices to decrease.

As 2-EH is a raw material made out of propylene, its price fluctuates according to that of the latter.

Propylene was tight in Europe until the end of 2014. Global annual propylene demand is growing by 4,4% worldwide (stable in the USA and Europe; 7% increase in Asia), as over 75% of the production is used for polypropylene. However, as propylene is mainly produced from steam crackers in Europe, the production should be limited by the closure of refineries and the use of lighter feedstock. It will therefore remain tight in Europe.

The European price started to decrease early 2015, pushed by the low prices in Asia and the USA, but remains at a higher level compared with these two regions. This should boost European imports, mainly from the USA.

The Asian price situation is however not realistic, as China is a net importer of propylene. Perceived propylene tightness potential has promoted focus on alternative routes (PDH, MTO, CTO).

Overall, oil price fluctuation will continue to change the dynamics for downstream chemicals.