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News Article
October 11, 2006
Wall Street Journal

WSJ: Cleaner Diesel Fuel Is Set to Pump

Ultralow-Sulfur Formula Could Cut Reliance on Oil; Economy's 'Invisible Force'

By Mike Spector

Ultralow-sulfur diesel fuel will start hitting U.S. fuel pumps this month, opening the door for auto makers to expand the use of European diesel technology in U.S. cars and light trucks.

The new diesel contains 97% less sulfur than the old version, officials said, emitting only 15 parts per million of sulfur, compared with 500 parts per million.

Auto makers -- particularly those that have made substantial investments in diesel-engine technology for Europe -- are gearing up to try to take advantage of the arrival of ultralow-sulfur diesel fuel in the U.S., the world's largest single auto market. The exhaust-scrubbing technology that auto makers have developed to attack the soot and other pollutants that tarnished diesel's reputation in the U.S. needs almost sulfur-free fuel to work properly.

Strict State Rules

DaimlerChrysler AG's Mercedes-Benz brand will start selling its diesel-powered E320 Bluetec sedan in 45 states starting next week. The current model bests the stringent federal emissions standard but falls short of the standard in five states. Mercedes says it will offer further Bluetec models that will meet standards in all 50 states as early as 2008.

"Fuel that's cleaner initially, that's the key to getting more diesels on the road and also meeting emissions requirements," said Mercedes spokesman Rob Moran.

Volkswagen AG, currently the top seller of diesel-engine passenger cars in the U.S., plans to offer new diesel models in 2008 that will meet emissions standards in all states. Other auto makers, including Japan's Honda Motor Co. and U.S. market leader General Motors Corp., have recently announced plans to offer clean-running light-vehicle diesels for the U.S. market over the next two to three years.

Under the rollout, 80% of diesel pumped at U.S. retail stations must be the new ultralow-sulfur type. Officials said they expect as much as 90% of new diesel deliveries to be of the new variety. Ultralow-sulfur diesel will be the only diesel fuel allowed beginning in 2010.

Until now, diesel has primarily powered trucks and buses in the U.S. Diesel trucks move more than 18 million tons of the nation's freight a day, according to the NRDC. About 14 million Americans ride half a million diesel buses to work and school, the group says.

Now, Americans could see more diesel engines in passenger cars. Researchers at J.D. Power & Associates predict diesel sales will nearly triple in the next 10 years because of the engine's fuel efficiency -- typically 20% to 40% more miles per gallon than gasoline engines.

Article available at: online.wsj.com/article/SB116052499159888746-search.html


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