Diesel Exhaust Aftertreatment Market - Future Breakout Movement

An earlier post (Diesel Emission Device Companies BUY BUY BUY) on this blog mentioned the prospect that the diesel emission reduction sector of the market was ready breakout movement. I still believe this notion. Companies that developed and sold Three-Way catalytic converters to the automotive industries in the 1970's literally exploded onto the exhaust after treatment scene. Take for example, the Englehard Corporation (now a subsidiary of BASF). Englehard pioneered the development of the first catalytic converter for the automobile. This company invented the most important environmental pollution control device ever.

 

As of 2007, all new on-road diesel engines must meet EPA's 2007 emission standard. For the past year and a half oxidation catalysts and diesel particulates filters have been installed on all new diesel engines to comply with the new standards. A diesel particulate filters can cost close to $10,000.00. I can only imagine the amount of money that will be spent on the purchase of particulate filters for new on-road diesel engines. Beginning in 2011, all diesel non-road engines will be required to meet the same emission standards as their on-road cousins. Include construction and farming engines along with the on-road  diesel engines and the demand for diesel exhaust after treatment devices grows even more. Finally, in 2011, both on-road and off-road engines will also be required to limit NOx from the exhaust stream. Two methods are being considered to remove NOx from diesel exhaust; 1. NOX Traps and 2. Selective Catalytic Reduction (SCR).

 

All four of the devices, diesel oxidation catalysts, diesel particulate filters, NOx traps and SCR should not be overlooked in the environmental pollution control industry. One or all of these companies that develop, manufacture and sell these devices for diesel engines will soon be the Englehard of the 1970's.  

 

60 MPG VW Jetta BlueTDI Demos this Summer, For Sale in the Fall.

Finally, some concrete details that Jetta TDI's will be arriving on dealership lots this summer. Again, it sounds like most of the initial deliveries will be for demonstration purposes. Beginning in September, the cars can be purchased and put on the road. Here in the Northeast fuel prices are on the borderline of being stupid. This morning, on my way to work the price for diesel fuel was $4.49 a gallon. In a previous post on my blog, Diesel Fuel Costs....Where are they Going,  I broke down the costs of driving a diesel vehicle compared to driving a gas job. Let's use today's gasoline and diesel fuel prices as well as an average of 55mpg for the Jetta BlueTDI. Don't let the high price of diesel fuel scare you away. Look at these numbers, again:

 

Gasoline (Ex: Toyota Corolla)

• 30mpg average Gasoline car - $3.68/gal X 15 gallon tank = $55.20.
• Miles per Tank of Fuel -  15 gal X 30 mpg = 450miles
• $55.20 / 450 miles = $.123/ mile

 

Diesel Jetta BlueTDI

• 55mpg average - 4.50/gal X 15 gallon tank = $67.50
• Miles per Tank of Fuel - 15 gal X 55 mpg = 825miles
• $67.50 / 825 miles = $.082/ mile

Summary:

• Gasoline: $.123/mile - Diesel $.082/mile = $.04
• Difference $.04/mile  / $.123mile (Gasoline) = .325 or 33%
• The diesel Jetta BlueTDI is 33% more efficient than a gasoline engine.

 

Full Story:

Volkswagon finishes up Jetta BlueTDI development, on sale this summer 

 

 

 

 

2009 VW Jetta TDI - Canadian Pricing and Roll-Out

Why is the US not giving the 2009 Jetta TDI as much love as our Canadian neighbors? Recently, I have been trying to find on-line pricing and dealership delivery information. The Canadian websites are at the top of all the search engines. I am hoping that VW will be delivering demo cars this summer not only to dealerships in Canada but the US as well. Then beginning in early fall, start the roll out the 2009 line-up. The exhaust emission control devices did have some early issues which caused delayed deliveries from across the pond. VW must have the bugs worked out because Canada has the same on-road light duty emission regulations as the US.

It also looks like our friends in Canada will be able to purchase a new TDI Jetta, in the US, for approximately $1200.00 less than they would be able to in their own country. That is, if the Canadian dollar continues to be about $.05 more than the American dollar.

Full Story:

Volkswagon "cleans up" at epic with its 2009 TDI Clean Diesel Jetta Lineup

Emission Control Device Companies - BUY BUY BUY....

I am a person that works in the field of engine emission controls and have given a lot of thought where the industry may be headed. I can only see the catalytic converter and diesel particulate filter sector exploding in the next five years. Beginning in 2011, all non-road engines will have to meet Tier 4 emission reduction levels similar to the existing on-road regulations. At that time most gas and diesel engines, size dependent, will be using some kind of exhaust emission technology.

The largest manufacturer of catalytic converters is Johnson and Matthey (J&M) based in London, UK. Johnson and Matthey (JMAT) is traded on the London stock exchange. I truly feel that J&M is right now is a great buy at any price due to the future demand of catalytic converters and diesel particulate filters.

The masses are just beginning to realize that there is a real problem with the worlds air quality. As people become more aware, more money will become available as grants to retrofit "dirty" engines. When the grant money is in place for companies to pay for retrofits, there will be a huge demand for oxidation catalysts and particulate filters. The emission control technology market is about to take off running.

For more info. see:

Johnson and Matthey

Related Post: Diesel Exhaust Aftertreatment Market Future Breakout

New York Counties Receive Diesel Emission Reduction Funding

 

 

A quick Friday update:

 

Dutchess and Putnam counties in New York have secured $500,000.00 to fund clean air projects. Both counties will be using the funds to reduce diesel emissions by constructing truck stop electrification units at rest stops or weigh stations. These funds are part of a settlement with American Electric Power under the Clean Air Act.

 

Full Story:

 

Dutchess will Recieve Funds to Reduce DIesel Emissions

Disposal Issues for Diesel Particulate Matter Ash

 

 

Now that all new 2008 diesel engines, both on-road and off-road must meet strict EPA emission reductions, the use of diesel particulate filters will become more frequent. What I mean by this is, as the new diesel engines are put into use more particulate filters will be on the road. 

 

Who will be maintaining these filters? DPF's need yearly maintenance to clean burned ash from the honeycombed filter. There are two ways of removing the ash.

• Bake the filter for 10- 12 hrs
• Controlled process of compressed air to blow ash out of the filter.

Let's assume that the ash is just as toxic as the particulate matter coming from diesel exhausts. The EPA regulates diesel particulate matter exhaust emissions due to its toxicity. Long term exposure to particulate matter from diesel exhaust has been determined to cause cardiovascular disease and lung cancer. Short term exposures can lead to headache, dizziness, nausea, coughing and difficulty breathing. Why does the EPA not require that distributors or business who maintain these filters to properly dispose of the hazardous ash? If you're going to regulate something be consistent.

Diesel Fuel Costs.....Where are they Going!?!?!

 

The average price for a gallon of diesel fuel here in New England is $4.13 per gallon. Sure diesel fuel prices has had its ups and downs, but not until a few weeks ago when the price broke the $4.00 per gallon mark did it make such a big impression on me.

 

Why are the prices so high? For a few reasons:

• Worldwide demand, especially in China.
• Cost for transitioning to Ultra Low Sulphur Diesel. Removing sulphur removes lubricating qualities from the fuel. Therefore, costly lubricating additives must be mixed with the fuel to maintain quality.
• The excise tax on diesel fuel is $.06 higher than that of regular gasoline.

My point, for this post, is even if the price of diesel fuel stays at approximately one dollar more a gallon than regular fuel, owning and driving a diesel car (2008 VW Jetta TDI) still costs less per mile to drive. Some quick Math for comparison:

 

Gasoline Toyota Corolla with a 15 gallon tank- approx. 30 mpg combined city/highway

Regular Gasoline $3.27 X 15 gallon tank = $49.05 for a fill up.

Tank Trip Miles 15gallons X 30mpg = 450 Miles

Cost per Mile $49.05 / 450 Miles = $.109 per mile 

 

Diesel VW Jetta with a 15 gallon tank - approx. 50 mpg combines city/highway

Diesel Fuel $4.13 X 15 gallon tank = $61.95

Tank Trip Miles 15 gallons X 50mpg = 750 Miles

Cost per Mile $61.95 / 750 Miles = $.083 per mile

 

Even though filling up a 15 gallon diesel tank costs more, the overall cost per mile is almost $.03 less or almost 28% more economical.

 

 

 

 

 

Diesel Emission Reduction - Locomotives and Ships

Finally, a new set of EPA rules will take effect for the control of diesel emissions from locomotives and large marine vessels. The rule will take effect as soon as the the certified after treatment systems are available, sometime in 2008. All new locomotives, switch locomotives and rebuilt locomotive engines are required to meet Tier 3 emission control standards. Beginning in 2015, all new locomotives will be required to meet Tier 4 emission control standards which take into account smog forming NOx emissions. 

 

I have worked on vertical commuter railroad construction projects for quite a few years. Very often I would walk from our office to the project site as well as to the main station for meetings. While walking through the yard, to my surprise there was always one diesel locomotive constantly idling. Many times the same locomotive would idle in the same location for days on end. I can only imagine the amount of diesel smoke exhaust that could have been prevented from entering the atmosphere. The new EPA rule also contains language that will significantly reduce the idling of rail yard switch locomotives.

 

There was even an instance that I was able to suggest to a managing engineer. I mentioned that the Railroad should look into the use battery powered generator set switch locomotives in lieu of diesel engines to reduce idling.  His response was, "We can't do that!" I instantly thought of our arborist. He said to me the other day, "Trees are just like anything else in this world. To make them flourish, raise em' up and clear out the dead wood." The same goes for the old timers at the railroad.

 

For more information:

 

Locomotive Final Rule

Diesel Boat and Ship Rule