Inside Out
The AdBlue® market
TO HELP IMPROVE AIR QUALITY THE EUROPEAN UNION INTRODUCED REGULATIONS TO REDUCE LEVELS
OF HARMFUL EXHAUST EMISSIONS – PRINCIPALLY NITROGEN OXIDES (NOX), CARBON MONOXIDE (CO),
HYDROCARBONS (HC) AND PARTICULATE MATTER (PM) – ON ALL TRANSPORT VEHICLES
Introduced in 1992, the regulations set out emission standards by way
of maximum permissible levels for the aforementioned air pollutants;
these have been progressively tightened over the passage of time. Euro
1 – the fi rst standard – was introduced in July 1992, with Euro 6 being
introduced in December 2013 for buses/trucks and September 2014 for
cars.
Our focus is on the most talked about and, possibly, most toxic
exhaust emission, NOx, which is principally emitted by diesel vehicles.
Since the millennium NOx limits for diesel cars and trucks/buses
have reduced as follows:-
Emission
Standard
Euro 3
Euro 4
Euro 5
Euro 6
Cars
(Mg/km) Trucks/ Buses
(Mg/kWh)
500
250
180
80 5,000
3,500
2,000
400
(NB: Cars are defi ned in distance travelled, while trucks/buses are
engine energy output)
In October 2004 the adoption of the Euro 4 standard for trucks &
buses heralded the need for a technology which would enable effective
compliance with the new NOx limits. There were two possibilities:
• Exhaust Gas Recirculation (EGR) – where a portion of the
exhaust gas is mixed with intake air to lower the burning
temperature, with the vehicle’s ECU controlling the EGR in
accordance with the engine load or speed
• Selective Catalytic Reduction (SCR) – where a liquid reductant
agent is injected through a catalyst in the exhaust system, a
chemical reaction then converts the NOx in to harmless water and
nitrogen, which are expelled through the exhaust pipe
Misgivings over the possible impact of EGR on both engine
performance and fuel economy have resulted in SCR being generally
adopted as the technology of choice to reduce toxic NOx emissions. The
liquid reductant agent used has been labelled AdBlue®.
AdBlue is a registered trademark owned by the German Automotive
Industry Association (VDA), from whom a licence, renewable every three
years, must be obtained to become a producer. Additionally, there is a
requirement for an audit of product quality practices and procedures.
The product technical ‘designation’ is AUS 32 ; other ‘labels’ used
to describe the product are ARLA 32 and Diesel Exhaust Fluid (DEF) –
the latter being used in North America. The applicable international
standard is ISO 2241(DIN 70070).
The introduction of Euro 6 standards for cars – applicable to all
new registrations from September 2015 – has resulted in the general
adoption of SCR technology and the corresponding requirement to use
AdBlue in diesel cars manufactured since then.
SOURCING
The key feedstock to produce AdBlue is urea. Comprising 46% nitrogen,
this is the world’s most commonly used nitrogen fertiliser with its
application accounting for around 90% of the chemical’s use. The
main input in the urea manufacturing process is ammonia, which reacts
with carbon dioxide to produce urea, so it is always produced near an
ammonia plant.
Because natural gas is the principal feedstock in ammonia
production, its price, availability and accessibility are key determinants
of the price and sourcing of urea. Current global production is circa 180
mln Mt/year, China being by far the largest source, at just under 40% of
the total; other producing countries/areas are India (14%), Middle East
(12%), other Asia (11%) and FSU (7%). Europe and North America
each account for around 6%.
Urea is safe and easy to transport and handle.
PRODUCTION
Requiring minimum production supervision, AdBlue is produced by
blending proportions comprising 32.5% high purity urea and 67.5%
demineralised (deionised) water in a simple, compact plant through a
largely automated process. Apart from the blending facility itself, the
only other requirements are a water supply and storage, urea storage
and fi nished product (AdBlue) tanks and accompanying dispensing
equipment.
The product should be stored in a temperature range of 0-30 Degr.
C and kept out of direct sunlight. Freeze point is -11 Degr C. If frozen, it
can be reused when thawed as it returns to its original state.
PACKAGING
Options are 10 or 20 litre cans, 200 litre drums and 1,000 litre IBCs; for
large users, storage tanks ranging from 2,500 to 15,000 litres can be on
site.
MARKET
From start up 13 years ago, the UK’s AdBlue market has grown rapidly
and now amounts to about 400 million litres (2017). As more Euro 6
compliant vehicles hit the road, double digit growth rates are predicted
over the next 10 years
A new requirement will materialise in the marine sector from
2021 as new vessels launched after that date will have to reduce NOx
emissions when operating in the North Sea and Baltic Sea emission
control areas; a number of existing, newer vessels are expected to retrofi t
SCR technology to ensure their ‘green credentials’.
Two mainland European companies, Yara and Greenchem, and
one UK company, Tennant Group (Greenox brand) dominate the market
place, controlling the lion’s share of the value chain, supplying end users
both directly and via reseller channels, such as oil distributors and retail
outlets.
Missing a trick in the UK market?
With a fast growing market, it is something of a puzzle in the UK that
physical suppliers of diesel have not chosen to become participants
across the supply chain.
From production through to sales to end users, the existing major
AdBlue suppliers occupy much of this chain; a position which enables
them to extract most of the value.
In contrast, the market in France is dominated by Total, the principal
diesel supplier, which participates actively in both production and
the marketing of AdBlue – as do several of the larger independent oil
distribution companies. Is a trick being missed in the UK market?
Fuel Oil News | November 2018 15