South Africa’s plans to ban the sale of diesel with a sulfur content higher than 10 parts per million (ppm) is still in the works, but motorists needn’t worry about losing the cheaper 50ppm and 500ppm grades any time soon.
Back in August 2021, the Department of Mineral Resources and Energy (DMRE) issued a notice on petroleum product regulations which would have seen the country adopt the Cleaner Fuels Two (CF2) specification for diesel within two years.
As per the Fuels Industry Association of South Africa (Fiasa), CF2 directs consumer sales of fuel with a maximum of 10ppm sulfur content and imposes stricter limits on some compounds present in petrol, such as benzene, aromatics, and olefins.
The reasoning behind the proposed change revolved around environmental concerns.
Diesel engines secrete more harmful particulates and nitrogen compounds than petrol motors and therefore have a more negative impact on human health and nature.
The sulfur found in the fuel can convert into sulfur dioxide during the combustion sequence which is the same harmful compound emitted by coal-fired power stations. It can also turn into sulfuric acid which accelerates the corrosion of metal surfaces.
As such, ultra-low sulfur diesel like the 10ppm grade holds several benefits. It’s not only kinder to the environment by producing significantly fewer emissions, but also prolongs the shelf life of diesel engines.
2027 vision
While the CF2 regulations were meant to take effect in September 2023, they are now only projected to be enacted on 1 July 2027.
Fiasa contributes the delay to a restrictive timeframe coupled with significant operational challenges that are somewhat unique to the South African landscape.
The association told MyBroadband that two years was a relatively short period for fuel refineries to upgrade their facilities to comply with the strict new regulations as the lead time to source equipment of this kind is significant.
At the time the DMRE issued the CF2 notice, the Sasol plant in Secunda was the only refinery in the country capable of producing 10ppm diesel, meaning the Astron Energy, Enref, Natref, Sapref, and PetroSA refineries would all have been required to undergo significant and expensive upgrades.
Furthermore, 24 months would not have been enough time for government to amend standards related to the sale of diesel 50ppm and 500ppm.
“In other words, neither industry nor the DMRE itself would have been ready,” said Fiasa.
That said, industry stakeholders are now gearing up to remove high-sulfur diesel from their offerings by 2027.
Sasol, which owns 63.64% of the Natref refinery, said it’s considering investing in the facility to enable it to comply with the impending CF2 regulations.
“In response to the tighter Clean Fuel specifications (CF2) and high carbon intensity of the product, we are considering investing to convert the refinery to a hybrid (crude and biofuels) green facility,” said Sasol.
“This provides an e-fuel solution for the country and will aid in reducing emissions while at the same time complying with CF2.”
In addition, the Minister of Minerals and Petroleum Resources recently revealed that government is planning to revive the PetroSA and Sapref refineries, the latter of which it acquired from Shell and BP for a symbolic one rand this year, as well as upgrade them to produce cleaner products from 2027.
“The minister indicated that they are bringing [the Sapref refinery] back, and also the PetroSA refinery is going to be brought back,” said Fiasa in July.
“We indeed support such initiatives, particularly if there are investors who are interested in putting their money into those projects because it will help a country like South Africa where the importing markets are far away from us.”
A welcome announcement indeed, however, questions remain surrounding the state’s ability to meet these targets within the given timeframe.
The scale of work required to repair Sapref after it suffered severe flooding in 2022 has yet to be determined but is expected to run up a tab of several billion rands. As such, any preliminary budgets and deadlines are unlikely to be accurate.
“The scale of damage and work required for restoration will directly impact the budget and time for implementation,” Fiasa told TopAuto in October.
“Past experience suggests [government] will be overspent and over time.”
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