GROWING ADOPTION OF DIESEL EXHAUST FLUID (ADBLUE) DUE TO GLOBAL EMISSION REDUCTION NORMS
Greenhouse gases (GHGs) trapped in the atmosphere cause gradual heating and affect the ozone layer, which protects the planet from harmful rays emitted by the sun. The major GHGs are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases (hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride). The burning of fossil fuels such as coal, natural gas, and oil, particularly from the transportation sector, results in the emission of CO2. According to the World Health Organization, around 4.2 million premature deaths globally are reported due to outdoor air pollution—black carbon (BC) being the major contributor.
According to the US Environmental Protection Agency (EPA), in 2017, greenhouse gases (GHGs) released by the transportation sector were 29% of the global emissions. The high emission of GHGs has resulted in imposition of norms by several organizations pertaining to exhaust emission. According to the data provided by the European Union (EU), the consumption of energy is highest in the roadways segment—stands to 82%—while 18% is in the aviation, rail, pipeline transport, and non-specific transport segments. Thus, vehicular emissions highly contribute to GHG emissions. Various regulations have been implemented by governments to limit these emissions.
For instance, the stages and legal framework for exhaust emissions of new vehicles sold in the European Union and EEA member states are Euro 1, Euro 2, Euro 3, Euro 4, Euro 5, and Euro 6 for light-duty vehicles and Euro I, Euro II, Euro III, Euro IV, Euro V, and Euro VI for heavy-duty vehicles.
As per EU directive: Euro 1 – for passenger cars—91/441/EEC and for passenger cars and light trucks—93/59/EEC; Euro 2 – for passenger cars—94/12/EC (& 96/69/EC) and for motorcycle—2002/51/EC (row A)—2006/120/EC; Euro 3 – for any vehicle—98/69/EC and For motorcycle—2002/51/EC (row B)—2006/120/EC; Euro 4 – for any vehicle—98/69/EC (& 2002/80/EC); Euro 5 – for light passenger and commercial vehicles—715/2007/EC; and Euro 6 – for light passenger and commercial vehicles—459/2012/EC and 2016/646/EU. The European emission standards are also made for large good vehicles and older ECE R49 cycle vehicles.
The emission standards for lightweight vehicles are defined in the Clean Air Act Amendment of 1990, which strictly restricts the emission of oxides of nitrogen (NOx), carbon monoxide (CO), particulate matter (PM), non-methane organic gases (NMOG), non-methane hydrocarbons (NMHC), and formaldehyde (HCHO). In 2007, the US EPA banned gasoline models and only diesel models of heavy vehicles were allowed. Moreover, the energy consumption by the road sector transport has allowed the EU to impose high-level EU regulations for passenger cars and LCV. Some are as follows:
- The European CO2 emissions target for 2020/2021 was defined in 2014 as Regulation (EU) No 333/2014 for passenger cars and Regulation EU 253/2014 for LCV. The regulations foresee for passenger cars a phase-in of the 95 gCO2/km target based on the New European Driving Cycle (NEDC) test procedure during the years 2020 and 2021 allowing to discard the 5% most emitting vehicles during the first year. For LCV the target of 147 gCO2/km is defined for 2020.
- The CO2 emissions measured using the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) must be converted to an New European Driving Cycle (NEDC) basis until 2020 to be compared to the CO2 emission target values defined for the NEDC (130 gCO2/km until 2019 and 95 gCO2/km starting 2020). Based on this correlation method and the actual fleet performance in 2020, OEM specific WLTP based CO2 targets will be defined for the period starting 2021.
- The CO2 emission targets for 2028 and 2030 were voted by the European council and parliament. CO2 reduction target for 2028 is -15% compared to 2021 for passenger cars and LCV. For 2030 the targets compared to the 2021 baseline are -37.5% for passenger cars and -31% for LCV
On the other hand, in the US, Under Section 177 of the Clean Air Act, the states either must follow the federal regulations or adopt California emission standards. Several states that needed stringent emission standards than the federal regulations to meet the air quality targets have adopted the California standards. The most recent adoption of California standards was by Colorado under the legislation of Executive Order B 2018 006 in the year 2018.
Thus, the high consumption of energy results in GHGs emission and the imposition of norms have influenced the manufacturers of automobiles to adopt AdBlue in the fuel system, which helps to lower carbon emission. The AdBlue solution which consist of 32.5% of high-purity, synthetically manufactured urea in de-mineralized water is used to reduce harmful gases such as NOx, hydrocarbons, and carbon monoxide (CO), which are being released in the atmosphere. The AdBlue is known as ARLA32 in Brazil, diesel exhaust fluid (DEF) in the US, and AdBlue in Europe.
Furthermore, various programs are conducted in partnerships with countries and manufacturing companies with an intent to lower GHG emissions. For instance, the US EPA had introduced voluntary partnership programs in 2000, which in 2017 saved USD 37 billion and avoided emissions of 433 million tons of carbon dioxide. This program consisted of 40% of the Fortune 500 companies. The Climate and Clean Air Coalition (CCAC) is another coalition between 68 countries, 76 non-state partners, 58 non-governmental organizations (NGOs), and over 125 private sector entities.
The CCAC focuses on the rapid reduction of diesel black carbon emissions, which proposed a strategy by the CCAC Scientific Advisory Panel (SAP), in 2016. The proposal intended to reduce near-term climate warming by an average of 0.5°C over 25 years. To achieve this target, the emission of black carbon from all sectors must fall to 75% below 2010 levels by 2030.
The Heavy-Duty Vehicles (HDV) Initiative of the CCAC released its global strategy in 2016 with the aim of all countries to implement the vehicle emission and fuel quality requirements equivalent to Euro 4/IV by 2028 and Euro 6/VI by 2030. These collaborations between companies and countries will help to low the carbon emission content at a faster rate, which is expected to increase the adoption of diesel exhaust fluid and drive the growth of the global market during the review period.
INCREASING USE OF ADBLUE IN HEAVY-DUTY VEHICLES
Diesel on-road engines play a vital role in the transportation sector, but dependence on diesel-run engines and technologies has significantly affected the environment and consequently the human health. The global consumption of diesel has grown eightfold since the 1970s, which is majorly driven by the rapid growth of road freight activity and dieselization of light-weight vehicle fleets. Diesel accounts for more than 40% of global on-road energy consumption and is the principal fuel of about 90% of the heavy-duty trucks and for over 75% of buses, according to the International Energy Agency (IEA).
The large presence of old diesel engines is a major concern, as according to the International Agency for Research on Cancer (IARC), the diesel exhaust is a Class 1 carcinogen for humans. Technological advancements have resulted in the setting of important technology and policy solutions to address diesel exhaust emissions. Some of the technologies include diesel particulate filter systems, selective catalytic reduction systems, a natural gas three-way catalyst, and NOx absorber. The selective catalytic reduction system reduces oxides of nitrogen (NOx) emissions and enhances the fuel economy.
The selective catalytic system uses a chemical reductant such as urea which is known as diesel exhaust fluid (DEF) in the US and Canada, AUS 32 in India, and AdBlue in Europe. Thus, the increasing use of these technologies is expected to propel the growth of the global market during the forecast period. Transportation tailpipe emissions have resulted in adverse health effects to more than 1 trillion people across the globe. The on-road diesel vehicles and heavy-duty vehicles (HDVs) are the major contributors to exhaust emissions and GHGs.
Heavy-duty vehicles accounted for more than 86% of on-road diesel NOx emissions and 78% of on-road diesel black carbon emissions. The Heavy-Duty Vehicles Initiative (HDVI) by the Climate and Clean Air Coalition (CCAC) aims to concentrate on providing clean fuel while obliging to the vehicle regulations and policies. This initiative concentrates on providing clean emission and better fuel for heavy vehicles across the globe. The adoption of policies and norms has helped to reduce diesel energy consumption and sulfur content. The Euro standards which are defined by the European Parliament have been controlling emissions of new vehicles.
In 2005, the Euro 4 standard was introduced, which was implemented for all vehicles that weighed over 3.5 tons such as trucks, buses, and other heavy-duty vehicles. These standards have subsequently been updated over the years currently to Euro 6 standard, which is made mandatory for all the vehicles, including cars and other industrial and agricultural vehicles. For heavy vehicles, the Euro VI implies that the emission limits for nitrous oxides should not be more than 2.0 g, while previously Euro V regulation read the emission limits for nitrous oxides to 3.5 g.
The Euro VI emissions regulations required a reduction limit to 77% of nitrogen oxide (NOx). Thus, the need to reduce GHG emissions has led to introduction of selective catalytic reduction (SCR) technology, which used in commercial and passenger vehicles with AdBlue as the reductant agent. AdBlue acts as a reducing agent used within the SCR system that converts the harmful nitrous oxide to innocuous nitrogen and water. Thus, these regulations in heavy diesel vehicles are expected to increase the use of selective catalytic reduction systems, which in turn is expected to increase the consumption of AdBlue as a reduction agent.
Thus, the increase in the manufacturing of heavy-duty vehicles and stringent regulations are expected to fuel the demand for AdBlue and drive the growth of the market during the forecast period.
Diesel Exhaust Fluid (AdBlue) Market
The increasing regulatory pressure on emissions standards is driving a robust demand for Diesel Exhaust Fluid, as it plays a crucial role in reducing nitrogen oxide emissions from diesel engines.
U.S. Environmental Protection Agency (EPA)
