| Dear PEI Member: Judging from the comments we heard from
the podium and the audience at Integer Research's 5th Diesel Exhaust Fluid
Forum USA 2012, held earlier this month in Cincinnati, the outlook for diesel
exhaust fluid (DEF) and DEF equipment has never been brighter. Here are some
of the takeaways from the conference.
Current and future numbers. Estimates indicate that the current
population of Class 8 (heavy duty tractors) trucks requiring DEF reached
348,000 in September with an annualized rate of net orders near 180,000. DEF
consumption is running at 12 million gallons per month and expects to top
out at 140 million gallons in 2012. Panelists expect DEF production to ramp
up to 700 million gallons―five times the 2012
figure―by 2018.
Full steam ahead. Within the past 12 months, the uncertainty
surrounding SCR (selective catalytic reduction) has lifted. It is now clear
that SCR technology will be part of the refueling infrastructure for the
foreseeable future. Reasons for the optimism include:
- SCR technology has matured and improved for all engine sizes.
- Compressed natural gas (CNG) or liquefied natural gas (LNG) will not
substantially impact the Class 8 line haul structure.
- The recession has caused chemical and petroleum distributors to seek
nontraditional ways to make money. Selling DEF to retailers
serves that need.
- The decision this summer by Navistar International to abandon exhaust
gas recirculation (EGR)
technology in its engines means that all major diesel engine manufacturers have
committed to use SCR technology to meet EPA's emission regulations on
nitrogen oxide (NOx) reduction.
Retail infrastructure. The number of truck stops with DEF at the
fuel island has doubled since October 2011. Much of that is due to the
aggressiveness of the three major travel plaza chains: TravelCenters of
America, Pilot Flying J and Love's Travel Stops. After these three companies
are finished adding DEF at the pump in all of their locations―which
is expected soon―then the next line of truck stops (about 1,000 travel
centers owned by smaller chains, convenience stores, independents, etc.) is
expected to transition to bulk storage and dispensing at the fuel island
within the next 18 months.
Commercial infrastructure. Of the 60 billion
gallons of diesel sold annually in the United States, only 15 billion to 20
billion gallons are sold at travel plazas. The rest―somewhere between 66
percent and 75 percent of all diesel sold―is consumed by fleets on property.
Panelists at the conference assume DEF will be consumed the same way.
Mindful of those quantities, the evolution of DEF from package to tote to
quick-change tote to bulk storage on the commercial side is only a matter of
time. In the opinion of the attendees at the conference, this evolution is already
occurring―and much faster than expected. However, it was the consensus
of those in Cincinnati that the big wave of commercial accounts moving to
bulk storage has yet to happen.
Odds and ends. Those at the conference made a
few other points worth noting:
- The truck fleet is as old as it ever has been.
Fleet owners have held out as long as they can and will soon
have to replace their legacy vehicles with those equipped with SCR
technology.
- Distributors of DEF believe that
servicing the demand for DEF on the commercial side by just using totes is
not realistic.
- Although the estimates of bulk DEF stations
in Canada currently differ from one person to the next, Canada doesn't have many
retail stations dispensing DEF at the island.
- Freight is a huge component of the delivered
price of DEF. In some cases, it is equal to the price of the product
itself.
- The industry's bulk supply terminal network has a
long way to go, but it grows monthly.
- The industry is turning toward dedicated trucks
for the delivery of DEF and away from the wash-out issues involved with
vehicles used both in petroleum and DEF service. Ticket printers will be
required for all DEF delivery trucks used in multi-drop deliveries.
|
DEF Outlook
PEI Recommended Practice on AST Installation (RP200) to
be Revised
RFS Waiver Request Denied by EPA
Ethanol
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PEI's AST Installation Document to be Revised
The PEI Aboveground Tank Installation Committee is soliciting comments
to revise PEI's Recommended Practices for Installation of
Aboveground Storage Systems for Motor Vehicle Fueling (PEI/RP200-08).
PEI will follow the same procedure in revising RP200-08 that has been used
with previous updates of this recommended practice. If you have suggestions
or recommendations for improving RP200-08, submit them online at
www.pei.org/rp200. Instructions for
completing the form are provided on the website.
PEI members, regulators, tank owners, insurance companies and trade
associations are encouraged to submit comments. All comments must be received
at PEI by Monday, January 7, 2013, to be considered by the committee. If you
have any questions or need further information, contact Bob Young
byoung@pei.org or 918-236-3966.
EPA DENIES REQUESTS FOR WAIVER OF RFS
On November 16, the U.S. Environmental Protection Agency (EPA)
denied requests to waive the national volume requirements for the renewable
fuel standard (RFS) program. EPA found that the evidence and information
does not support a determination that implementation of the RFS program
during the 2012-2013 time period would severely harm the economy of a state,
a region or the United States. EPA said that the body of information shows
that it is very likely that the RFS volume requirements will have no impact
on ethanol production volumes in the relevant time frames, and therefore
would have no impact on corn, food or fuel prices.
GE EYES LIQUEFIED NATURAL GAS (LNG) AS TRANSPORTATION FUEL
General Electric (GE) and Clean Energy Fuels have announced an alliance
to help expand the use of LNG as a transportation
fuel across the United States. As part of the alliance, Clean Energy Fuels
will purchase two MicroLNG plants from GE Oil & Gas. The compact modular
units are designed to rapidly liquefy natural gas. The two plants will
produce up to 250,000 gallons of LNG per day and are designed to be expanded
to provide up to 1 million gallons per day.
The two plants will support fueling stations along critical
transportation corridors across the U.S. The LNG produced by the plants will
be sold primarily at Pilot Flying J truck stops.
The target market is the long-haul trucking industry. Clean Energy
expects to have 70 LNG filling stations up and running by the end of the
year, with more planned next year according to Clean Energy Fuels chief
executive Andrew Littlefair.
BRIEFLY NOTED
Weis Markets, Inc., Sunbury, Pennsylvania, recently designated PWI,
Incorporated, New Oxford, Pennsylvania, as its vendor/partner of the
year. Weis Markets is a regional grocery chain with stores in a five-state
area.
The Texas Department of Transportation (TxDOT) announced November 15
that it will initiate a Compressed Natural Gas (CNG) Pilot Program. The
program, which will begin with the purchase of four CNG Ford F250 trucks, is
designed to help TxDOT leaders evaluate natural gas vehicles and
the availability of fuel stations, and whether, operationally, a fleet
powered by natural gas meets the agency's needs.
Tank Installers of
Pennsylvania elected the following officers for 2013: Greg Dubas, Pine
Run Construction (president) and Ben Hieber, PWI, Incorporated (vice
president). Walter Rimmer is the association's executive director.
ETHANOL AND BIOFUELS
"Ethanol was going to turn out just fine in this election no matter what
because we were in an enviable position of both candidates supporting
ethanol generally and the RFS specifically."―Bob
Dinneen, Renewable Fuels Association president and CEO at the National
Association of Farm Broadcasting annual meeting.
"Biofuel advocates say senior Republican staff and members of the
House Energy & Commerce Committee are signaling that legislative debate over
reforming EPA's renewable fuel standard (RFS) is highly unlikely in 2013,
saying there appears to be little interest among GOP leadership in moving a
comprehensive energy bill next year."―Inside E.P.A. Weekly Report,
November 2, 2012.
"Please be advised that E15 is not approved for sale in California,
and if ARB (Air Resources Board) chooses to allow E15 as a transportation
fuel, it would take several years to complete the vehicle testing and rule
development necessary to introduce a new transportation fuel into
California's market."―Michael Waugh, chief of the CARB transportation fuels
branch.
MEMBERSHIP APPLICATIONS
Refrigerated LED lighting manufacturer. Self Electronics USA,
4500 Peachtree Lake Drive, Duluth, Georgia 30096, has applied for
manufacturer division membership. Justin Dover is sales manager for
the firm, which was established in 1993. The company is a
manufacturer of original equipment for refrigerated LED lighting and other
products for interior display lighting. The equipment is sold through
distributors. Sponsored for PEI membership by Jeff R. Swonger, R-JSlsAscs,
Greensboro, GA.
www.self-electronics.com
Shoring and bridging products. Mabey Inc., 6770 Dorsey Road, Elkridge,
Maryland 21075, has applied for affiliate division membership. Jessica
Bagrowski is marketing specialist for the firm, which was established in
1989. The company makes products for shoring, propping and bridging. Mabey specializes in supplying engineered solutions for temporary works.
Sponsored for PEI membership by Andrew J. Adams, AdamsTank, Clearwater, FL.
www.mabey.com
Signage systems provider. Walton Enterprises, Ltd., DBA Walton
Signage, 3419 E. Commerce Street, San Antonio, Texas 78220, has applied for
affiliate division membership. Marvin Miller is regional vice president
sales for the company, which was established in 1980. The company provides
solutions for turnkey signage systems, conversions, re-branding, leasing and
maintenance programs throughout the world. Sponsored for PEI membership by
Chris Monroe, Monroe, Arlington, TX.
www.waltonsignage.com
Peru consulting services company. UMD Peru SAC, Av. Nestor Gambetta
319, Callao, Lima, Peru, has applied for service and construction division
membership. Martin Diaz is the primary contact for the firm, which was
established in 1986. The company provides consulting services, construction
and station inspection. Sponsored for PEI membership by Christopher Tiso,
ATSEnvSer, Sparta, NJ. www.umdperu.com
ADMITTED TO PEI
- FarmChem, Floyd, IA (dis)
- TECC Electrical Contractors, Osteen, FL (S&C)
- Ram Services LLC, Warwick, NY (S&C)
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