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More than ten years ago, the French motorfuels market was evenly split between I super and diesel, although the latter was much cheaper due to lighter taxes. Since 2000, 70% of new-car buyers have been choosing diesels, which will soon account for half the cars on the road. This has affected the fuels market. "These days, France doesn't produce enough diesel motor fuel and has to import some", says Daniel Le Breton, who is in charge of Total's transport-fuel strategy and development. "French motorists buy about three times as much diesel as gasoline. The figure is likely to be four times as much by 2010, and the market could be using five times as much diesel as gasoline by 2015". France is not an isolated case: several other countries such as Spain, Austria and the Benelux group show a similar imbalance. On the other hand, motorists in a handful of countries have remained faithful to gasoline. Sweden and Spain are cases in point here; on average, the cars in those countries are among the oldest in Europe, and it is not unusual to see cars still on the road after twenty-five years of service,
Market imbalance
"The increasing use of diesel engines will have a major impact on, the motor-fuels market", predicts Daniel Le Breton. 'The EU already has to import about a quarter of its diesel fuel from Russia, and we export our surplus gasoline to the United States. But this trade flow does nothing to improve the worldwide situation as regards CO2 emissions". Several countries, including France, are trying to adapt to the new context by producing less gasoline and more diesel. This involves refinery investment, which is still below the level required to meet future demand. France has the technical capacity to produce 10% more diesel within the next ten years, but by that time demand will have increased by 15%, which will presumably put pressure on prices.
The growing popularity of diesel engines is largely due to technical breakthroughs; one by one, all the obstacles are being overcome. "Diesel engines emit less CO? than gasoline engines of equivalent performance, but they produce more nitrogen oxides (NOx) That is still the major drawback, although widespread use of particle filters is now providing a short-term solution", explains Daniel Le Breton. But for a better balance between supply and demand it would be preferable to tweak the market, presumably via a fuel-tax realignment, since the tax differential between super and diesel is no longer justified from an environmental point of view. Furthermore, the two fuels are marketed at identical prices in the UK. The price gap is closing in France, but it would still take about a decade before any tax adjustment begins to affect the car market. As regards pollution, the sulphur content of motor fuels is now less than 50 ppm throughout the EU, and will have to be less than 10 ppm by 2009.
Total has been producing biofuels for more than ten years new, and is currently developing formulations that are more environment-friendly. The Group is exploring two avenues here: ETBE (ethyl-tertio-butyl-ether) derived from iso-butylene produced during the refining process and ethanol made from beet or cereal crops; and VME (vegetable-oil methyl esters), or biodiesel, mostly produced by reacting methanol with rapeseed (canola) oil or sunflower oil. Total does not produce biodiesel itself, but blends it with its diesel motor fuels. "ETBE, which i~ blended with gasoline in proportions as high as 15%, has the advantage of having a high octane rating and tow volatility. In turn, this means less carbon monoxide and less unburned hydrocarbons in The exhaust. Total is the only company producing ETBE in France, and we are also starting to produce it in Germany and Belgium. The production of ETBE is also being considered in the United Kingdom. Biodiesel has real potential too", adds Daniel Le Breton. When blended with dieselfuel, biodiesel improves the lubricating power required for the proper functioning of injection systems. It also significantly reduces emissions of smoke and unburned hydrocarbons into the atmosphere. In short, biodiesel reduces the imbalance in the diesel market and improves the overall C02 emissions situation'. Total markets biodiesel in both Italy and Germany.
Unfortunately, both types of biofuel are still two or three times as expensive as gasoline or imported diesel, largely because of the high cost of raw materials. The problem here is that the plants used are only partly converted into biofuel. So Total is continuing to explore other solutions, more suited to newer engine technologies, such as:
- Aquazole, an emulsion of water and diesel; it requires no engine modifications and reduces NO,, emissions by up to 30% while also cutting particle emissions by between 10% and 60%. Aquazole, which is intended for use by captive fleets (such as buses), is already marketed in France and Italy.
- the transformation of biomass into liquid motor fuels. Biomass is the largest single source of renewable hydrocarbons on Earth. - the synthesis of liquid motor fuels from natural gas, An example here is DME (di-methyl-ester), sometimes called "LPG for diesels", which contains no sulphur and thus sharply reduces particle emissions.
Lastly, the Group is taking part in several programs to evaluate the potential of hydrogen fuel cells, which produce electricity continuously from a mixture of hydrogen and oxygen, the only by-products being water and water-vapour. Total has a strong interest in this technology, which can use the hydrogen produced in a multitude of ways: reforming of hydrocarbons; gas synthesis from biomass, coal or refining residues; or electrolysis of water using a variety of power sources (wind power, hydroelectricity, nuclear power, thermal power stations). Total already operates an experimental hydrogen filling station in Berlin, mainly serving captive bus fleets.
Road transport solutions
Total has taken the lead in road transport, too, with AdBlue. This is the marketing name given to an aqueous solution of urea which is carried in a special tank aboard a vehicle and injected into the exhaust system to destroy nitrogen oxide emissions.
This technology, known as Selective Catalytic Reduction (SCR), has now been adopted by most truck-makers, including Mercedes, Renault Trucks, Volvo and Scania. SCR allows them to comply with the EU's new technical standards: Euro IV (200512006) and Euro, V (2008/ 2009). It also results in fuel savings of 5% compared to vehicles built in 2000-2001. Looking beyond 2010, makers of farm and earth-moving equipment will probably also adopt SCR technology as a way to reduce engine-exhaust pollution. AdBlue is currently available from three service stations in Germany, the first country to test this new solution. A first service station also began selling AdBlue in France (south of Lyons) in June. Urea is also available to haulage companies in bulk, or in containers and cans.
A la carte services
With the EU's open borders generating increased trade, haulage companies have an even greater need for solutions which facilitate transactions such as fuel purchases and motorway tolls and allow them to manage expenditure. All this, and more, is made possible by Total's dedicated Eurotrafic card, launched in 1994 and now used by 18,000 companies across Europe. Card-users receive a single invoice giving full details of expenditure per driver or per vehicle. As well as improving cost management, the card offers new services such as VAT recovery and, more importantly, 24-hour breakdown services throughout Europe. Total's service -oriented card can be used in 11,000 European service stations.
At the same time, the Group is expanding a "safety and price" offer, based on its AS24 card, which can be used in any of the Group's 420 AS24 automatic stations in Europe. The service, provided in conjunction with Renault Trucks, covers breakdown service from 22,000 garages across Europe. Proving that Total is not just a fair-weather friend to truckers.
— Energies.
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