Associate Energy Minister Harry Duynhoven today announced that the Government had decided the level of sulphur in both regular and premium grades of petrol would be reduced to 50 parts per million from January 2008, and to 10ppm for diesel from January 2009, effectively making that fuel “sulphur-free”.
He said the reductions in sulphur levels would improve air quality, reduce the impact of particulate emissions on human health and encourage the uptake of newer, cleaner vehicles in New Zealand, particularly the introduction of low-emission diesel vehicles.
The new changes were in line with similar moves by other countries in the region, thereby maximising security of fuel supply and minimising price impacts.
“The Government remains committed to the introduction of zero sulphur petrol, but a decision on when sulphur levels in petrol will be lowered to 10ppm cannot be made until regional security of supply issues concerning the fuel have been resolved,” Duynhoven said.
The changes would mean New Zealand petrol and diesel were of suitable quality for use in newer-technology vehicles that had advanced emissions control technologies.
New Zealand petrol currently has lower than 150ppm of sulphur, generally below 100ppm and often below 50ppm.
Duynhoven said as advanced Euro 5 technology diesel vehicles entered New Zealand from 2009, the air quality benefits of requiring 10ppm diesel, rather than 50ppm, were likely to increase.
He also said the refining costs to produce lower sulphur fuels were only slightly higher (about 0.5c per litre higher) than producing the present 50ppm sulphur diesel and 150ppm sulphur petrol.
New Zealand’s sole refinery at Marsden Point, south of Whangarei, last year spent $NZ186 million ($A146 million) on its Future Fuels project, enabling it to produce petrol with only 1% benzene, down from 3%, and diesel with only 50ppm of sulphur, down from 500ppm.
Earlier this year, departing refinery chief executive Thomas Zengerly said the new refinery plants would be capable of producing 10-15ppm diesel in the future with only minor modifications.
The Marsden Point refinery produces more than 70% of New Zealand’s petrol, diesel and aviation fuel needs, with the rest imported from Australia or Singapore.
