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Dear PEI Member: A record 404
people attended Integer Research’s 8th Annual DEF Forum held
recently at McCormick Place in Chicago. Here are some of the takeaways
concerning diesel exhaust fluid (DEF) from the presentations and
conversations at the conference and at the PEI convention held last month in
Las Vegas.
- Selective catalytic reduction (SCR) technology remains the
core NOx control technology supported by DEF.
- DEF is alive and well in North America (U.S. and Canada). DEF
consumption in North America is expected to reach 522 million gallons in
2015. Industry researchers look for DEF consumption to exceed 1 billion
gallons in 3-4 years. While SCR will continue to equip the majority of
medium- and heavy-duty trucks in North America, the development of natural
gas engines could lower these figures.
- Robust Class 4-8 truck sales are the key driver to rising DEF
consumption, with over 100,000 vehicles sold each quarter for the past five
quarters. Class 4-8 sales in North America are expected to surpass the
500,000 vehicles/year mark in 2019. Over one million Class 8 power units
have been delivered in North America since June 2010.
- Heavy-duty vehicles lead the way in terms of DEF consumption
(74 percent), followed by off-highway vehicles (14 percent), marine diesel
(7 percent) and locomotive diesel (4 percent). Passenger vehicle usage
accounts for just a sliver of North American DEF consumption, and nobody we
talked with at the conference believes that DEF will be sold to consumers at
the retail pump any time soon, except at truck stops and travel plazas.
- Business for U.S. manufacturers of DEF storage, metering and
dispensing equipment continues to be strong in North America and select
international markets such as China, Brazil, Argentina, Chile, Colombia,
Turkey and Russia. That said, the strong dollar has hurt some international
sales.
- Prices for urea, the key substrate for DEF production, are
following energy prices and are down internationally as the market becomes
more competitive. Urea producer margins have weakened in 2015, despite lower
input costs, as supply continues to outweigh demand in international
markets.
- Acceptance of PEI’s Recommended Practices for the Storage
and Dispensing of Diesel Exhaust Fluid (PEI/RP1100) is stronger than
ever following the October 2015 release (www.pei.org/rp1100)
of the document’s first revision since its original publication in 2010.
- The International Organization for Standardization (ISO) is a
non-governmental standard-setting body. The high quality urea solution AUS
32 is defined by ISO 22241 specification “Diesel engines – NOx reducing
agent AUS 32.” The 2008 edition of ISO 22241 is currently being revised,
with Part 1 (quality requirements) and Part 3 (handling, transportation and
storage) already completed. Work on Part 4 (refilling interface) is about to
begin. The status of Part 2 (testing) is not clear. Whether the documents
will be released separately or after all four parts are completed is also
uncertain.
- Many PEI distributors remain uncomfortable with selling equipment to
the DEF market and continue to underserve those customers.
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Diesel Exhaust Fluid
CROMPCO Acquires Quality Nozzle
Patriot Capital Acquired By State Bank
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PEI MEMBERS ACQUIRED
Crompco LLC, Plymouth Meeting, Pennsylvania, has
acquired Quality Nozzle Co., Bethel, Connecticut. Following the
acquisition, Crompco will change Quality Nozzle’s name to Quality Petro
Services. Brian Ripley, vice president of marketing for Quality Nozzle, will
remain with Crompco as director of customer development.
State Bank and Trust Company, a wholly owned
subsidiary of State Bank Financial Corporation, announced October 20 that it
had purchased the equipment finance origination platform of Patriot
Capital Corporation. Chris Santy, founder and president of Patriot
Capital Corporation, will join State Bank as president of the newly created
Patriot Finance Division.
BRIEFLY NOTED
Chris Newton has notified the board of directors of the Texas Food &
Fuel Association of his intent to resign as president of that
organization effective December 31, 2015. Newton has accepted an offer from
the Texas Apartment Association to become its new executive vice president.
Rick Golman, chairman of Texas Food & Fuel Association, will meet soon with
the association’s members to form a transition team to guide the search for
a new president.
Tait Environmental Services, Inc., Santa Ana, California, has
promoted Dennis Tweedy to national accounts director. He was previously
senior project manager with Tait.
The Environmental Protection Agency (EPA) has sent its final rule
establishing the renewable fuel volume obligations under the Renewable Fuel
Standard for 2014, 2015 and 2016 to the White House Office of Management and
Budget for review. This is the final step before the rule is released. EPA
is under a court-ordered deadline to issue the final rule by November 30,
2015.
World Fuel Services has purchased 100 percent of the equity
securities of Pester Marketing and its wholly owned subsidiaries,
Alta Fuels and Alta Transportation, which include 57 convenience stores.
CST Brands Inc. has entered into an exclusivity agreement to finalize
the terms of the definite agreement for CST to acquire 100 percent of the
outstanding shares of Flash Foods Inc. and certain related entities
in Georgia and Florida from the Jones Co. The acquisition would include 164
convenience stores in Georgia and Florida.
Hess Corp. will pay $4.4 million to Massachusetts to settle claims
related to payments the company received from a state fund established to
expedite the cleanup of petroleum spills from underground storage tanks (USTs).
The claims related to reimbursement obtained from the UST fund to cleanup
projects at dozens of gasoline stations throughout the state. The settlement
resolves an issue from the 1990s between Massachusetts and Merit Oil, a gas
station operator that was later acquired by Hess.
Flyers Energy LLC has completed the acquisition of Southern
California lubricants and fuels distributor SKS Oil. The purchase
included three bulk plants and 13 commercial fueling sites.
“A coalition of federal and Vermont agencies, non-profit groups, and
businesses is now working to educate gas station and convenience store
owners about their responsibilities under the ADA and Vermont’s Public
Accommodations Act.”—The Herald of Randolph.
A La Salle County Circuit Court entered a Judgment Order against
Alpine International, Inc., a dissolved Illinois corporation, for $504,000
and against Ghulam Murtaza for $52,500. The order came in response to the
defendants’ failure to remove abandoned petroleum USTs at a closed gasoline
station, along with other violations of the Illinois Gasoline Storage Act.
Town Star Holdings LLC has purchased five convenience stores in
Florida from RaceTrac Petroleum.
MEMBERSHIP APPLICATIONS
Honduras distributor. COINS, S.A., Jardines del Valle, 1 Etapa, 3 Calle,
Pedro Sula, Cortes 504, Honduras has applied for distributor division
membership. Alberto Diaz is CEO of the firm, which was established in 2014.
COINS provides equipment and repair services for retail gasoline stations,
transports and industrial facilities. The company represents BareDev, Catlow,
EmcoWheatn, Flexrite, MCarderInd, Natl-Spncr and Pneumrcatr. Sponsored for
PEI membership by David Fiala, FMGLLC, Maitland, FL.
Mexico distributor. Petroland S.A. de C.V., J. P. Sarte 1516-15,
Monterrey, Nuevo Leon 64630, Mexico has applied for distributor division
membership. Luis Carlos Gonzalez is general manager for the firm, which was
established in 2014. The company supplies equipment to gasoline stations in
Mexico and represents BareDev, Catlow, EmcoWheatn, Flexrite, HoseMaster,
Natl-Spncr, Pneumrcatr and PtrCntmt. Sponsored for PEI membership by David
Fiala, FMGLLC, Maitland, FL.
www.petrolandmx.com
Surge suppression provider. Surge Suppression of Georgia Inc., P. O.
Box 6057, Sandersville, Georgia 31082, has applied for affiliate division
membership. Jeremy L. Garrett is sales and marketing manager for the firm,
which was established in 2001. Surge Suppression of Georgia specializes in
providing complete surge suppression packages for convenience stores and
fleet fueling systems. Sponsored for PEI membership by Gene Pope, PopeAscs,
Tampa, FL.
www.ssiofgeorgia.com
Texas repair and service company. AllTex Fueling Solutions, 8500
Commerce Park Drive, Suite 108, Houston, Texas 77036, has applied for
service and construction division membership. Abid Momin is purchasing
manager for the firm, which was established in 2013. The company repairs
equipment at service stations and convenience stores. Sponsored for PEI
membership by Rod Smith, FreedomElec, Kennesaw, GA.
ADMITTED TO PEI
- Bush Distributing LLC, Paramus, NJ (dis)
- Comadosa, S.A. de C.V., Puebla, Mexico (dis)
- Industrial Fuel Systems, Atlantic, IA (mfr)
- Intermountain Truck Rebuilders, Ogden UT (aff)
- Paul and Associates, Inc., Montclair, CA (aff)
- Calcraft Corporation, Rialto, CA (S&C)
- Prism Design & Construction, Wasilla, AK (S&C)
- WCC Tank Technology, Inc., Wallkill, NY (S&C)
- Job Olufemi Akintan, Joaks-Link, Okuta Ogun, Nigeria (O&E)
- Roberto Lopez, V Energy, La Vega, Dominican Republic (O&E)
- Paul Mason, Mason’s Shell, Quincy, MA (O&E)
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