Editorial: In Search of ULSD
rucking grows increasingly anxious over whether there will be adequate supplies of ultra-low-sulfur diesel fuel when new low-emission engines start rolling off assembly lines at the end of this year.
Despite repeated assurances from Environmental Protection Agency officials that the industry’s concerns are misplaced, much skepticism remains.
Many speakers and attendees at last week’s Heavy Duty Manufacturers Association conference in Las Vegas said they were worried about the ULSD supply, the amount of energy that will be contained in every gallon and what it will cost when the fuel does arrive at filling stations.
The new engines, which will power heavy-duty trucks, beginning with the 2007 models, will need the super-clean diesel not only to meet new federal emission standards but also to run properly.
Several industry experts have warned that ULSD supplies may not make it into all corners of the nation by the time the new regulations are in effect.
One speaker last week showed the reach of the concern. Jim McReynolds, general manager of Caterpillar Inc.’s on-highway and power systems unit, revealed that the engine maker has gone so far as to purchase and distribute ULSD to fleets that are testing its early models.
at, McReynolds said, wanted to ensure that the fleets would be able to get the ULSD they need, and get it without being penalized by higher costs.
Calls to the other companies that produce diesel engines showed that, in varying degrees, they were all helping fleets testing their products to get their hands on sufficient ULSD.
Cummins went to so far as to build ULSD storage tanks for some of its fleet testers.
Peter Nesvold, an analyst with Wall Street’s Bear Stearns, told the HMDA session, “We do expect potential initial shortages” when ultra-low-sulfur fuel is introduced later this year, and acknowledged he continues “to hear comments about industry concerns about initial availability” of the new fuel.
EPA officials last week said that the only reason there isn’t a lot of ULSD around at this time is that there aren’t any customers for it. Adequate supplies would be available in time to meet upcoming demand, they said.
They had better be right.
This editorial appears in the Jan. 30 print edition of Transport Topics. Subscribe today.
