South Africa's Petroleum Refiners Study Clean Fuels Program to Reduce Sulfur Emissions

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Researched by Industrialinfo.com (Industrial Information Resources; Houston, Texas). South Africa is currently conducting feasibility studies to establish the best approach to reduce sulfur in transportation fuels. In 2002, the country approved legislation to reduce sulfur content in gasoline and in diesel to 500 ppm each, from 1,500 ppm and 3,000 ppm, respectively. In addition, plans are in place to phase out leaded gasoline by 2006.

There are four operational refineries in South Africa, producing mainly leaded gasoline. It will require a massive investment for South African refiners to comply with the clean fuels program. Refiners will have a difficult time modernizing and converting their refineries to unleaded gasoline production and at the same time remaining profitable, until the country's demand and use of unleaded gasoline increase. The country's clean fuels program is a good first step in bringing South Africa's refineries up to world-class specifications and creating a cleaner South Africa.

In comparison, South Africa's clean fuel program is not nearly as stringent as the United States' program, but definitely a step in the right direction. In the U.S., Low sulfur fuel requirements mandated by the U.S. Environmental Protection Agency, is requiring refiners to reduce sulfur content to 120 parts per million (ppm) with no single gallon exceeding 300 ppm by January 1, 2004 and further reduced to 30 ppm with no single gallon exceeding 80 ppm by January 1, 2006. Some refiners, such as CITGO Petroleum Corporation (Tulsa, Oklahoma), have initiated sulfur reduction programs, while others have not decided what to do, or are banking on sulfur credits. Small U.S. refiners will be exempt from the rule.

For more details on the U.S. Clean Fuel Program view the related article in our archive (free to premium subscribers) CITGO Plans Billion Dollar Expenditures for U.S. Growth and Low Sulfur Fuel Compliance

South Africa is establishing environmental standards to improve air quality to help rural areas reduce respiratory health problems and other related issues. The country's electricity is mostly generated from coal-fired power plants, which pollutes the air with particulate matter. This, mixed with high sulfur fuel emissions is creating health concerns in the country. Feasibility studies are reviewing both pre-treat and post-treat options at refineries and should be completed in 2003. With government intervention the country should have sulfur reduced significantly by 2010.

As part of its International Industrial Database, Industrialinfo.com is currently tracking 16 projects representing over $1 billion in capital expenditures as part of Africa's Clean Fuels Program. These projects include; hydrotreaters, hydrocrackers, sulfur recovery, and hydrogen units. The projects are expected to begin construction in 2004 and emphasize both new units and revamping of existing units.