Oil Companies’ Focus on Fuel Additives Driven by Strict Emission Regulations

“Based on preliminary data and estimates, global consumption of petroleum and other liquid fuels grew by 5.0 million b/d in 2021.”, says the U.S. Energy Information Administration (EIA). Petroleum-derived fuels, such as diesel, petrol (gasoline), aviation turbine fuel (ATF), marine fuel, and kerosine, are used for a variety of purposes ranging from automotive and gensets to cooking and aviation. Often, the efficiency of the machines running on crude-oil-derived fuels is determined by the quality of the fuel itself.??

Thus, with the increasing focus on raising the efficiency of fuels and the machines that run on them, the global fuel additives market value is predicted to cross $7,990.6 million by 2030. Fuel additives can be used to control deposits, improve cetane rating and cold flow, inhibit icing, and increase lubricity and as antioxidants. Other kinds of fuel additives are anti-foaming additives, dyes and markers, drag-reducing additives, metal deactivators, anti-misting additives, organometallic additives, taggants/markers, conductivity improvers, biocides, demulsifiers, and detergents/dispersants.?

Among these, deposit-control additives are used in the highest volumes as they play the all-important role of improving the engine performance. With continued operations, certain particles get deposited within the engine, which results in the need for a higher mechanical power to do the same thing. This means that a higher volume of fuel is burned, which reduces the fuel efficiency and increases emissions.?

Stringent Emission Regulations’ Major Role in This Regard?

While many use deposit-control agents merely to improve engine performance, the stringent regulations implemented to check greenhouse gas (GHG) emissions have made them mandatory in many countries. Compared to 27,057,171.8 kilotons (kt) of CO2 equivalent in 1970, 45,873,850.0 kt of CO2 equivalent of GHG emissions were released in 2018, as per the World Bank. They are responsible for air pollution and diseases, such as chronic obstructive pulmonary disease (COPD) and asthma.?

Moreover, air pollution has been punching holes in the ozone layer, which is the key factor responsible for global warming and climate change. “Since 1906, global average surface temperature has increased by more than 1.6 degrees Fahrenheit (0.9 degrees Celsius)...”, as per National Geographic. Therefore, international initiatives, such as the Kyoto Protocol and Paris Agreement, have been launched with the aim to bring down the average global surface temperature to 1.5 degrees Celsius above the pre-industrial level.?

To supplement these initiatives and ensure the achievement of the agreed-upon targets, several countries have implemented their own emission regulations. They include the U.S. Environmental Protection Agency (EPA) Tier III and IV Final standards, the Euro VI standards, and the Bharat Stage 6 standards. They have compelled engine manufacturers to incorporate newer emission reduction technologies that accommodate cleaner fuels. Therefore, the demand for deposit-control and other fuel additives has risen massively in recent years.?

Growing Automotive Sales Driving Fuel Additive Consumption?

The fact that automobiles have been the key focus area of emission regulations has made them the largest consumer of fuel additives. Moreover, the fact that diesel is the most-common fuel in which these agents are used also propels their consumption in automobiles. Almost all medium- and heavy-duty vehicles, including trucks, buses, and locomotives, use diesel because diesel engines offer a higher torque, which is essential for carrying heavy loads. Furthermore, even diesel cars are becoming popular because of their power output advantages over those that run on gasoline.?

Hence, with the growth of public transportation and logistics fleets, the consumption of diesel is rising. For instance, in North America and Europe, trucks carry 50% of the freight. Further, almost half the buses on the world’s roads run on this popular fuel, which is why the consumption of fuel additives continues to rise in the automotive sector. Even though electric vehicles (EVs) are being encouraged by governments, people are still not convinced by them, especially for heavy-haul purposes, which would continue to push the consumption of diesel and, in turn, fuel additives in automobiles, for a long time.?

This is why the highest usage of these materials is witnessed in Asia-Pacific (APAC). As per Organisation Internationale des Constructeurs d'Automobiles (OICA), China alone witnessed 25,796,931 automobile sales in 2019, compared to 23,831716 in the Americas and 20,928,769 in entire Europe. Moreover, India witnessed 3,816,858 vehicle sales and Japan 5,195,216 of them that year. This is a key reason the air quality of these countries is extremely unhealthy, impelling governments to regulate emissions strongly.?

Need for Fuel Additives also Rising in Aviation Industry?

Aviation is another significant industry from the point of the usage of fuel additives. As per the Air Transport Action Group (ATAG), flights, which ferried 4.5 billion people around the world in 2019, generated 915 million tonnes of CO2 emissions that year. The purposes of using additives in ATF are similar to in diesel and gasoline: reducing fuel usage and emissions and elongating engine life. ATF accounts for up to 40% of airlines’ spending around the world.?

With the continued growth in demand and dwindling fossil fuel reserves, ATF prices are increasing. For instance, in India, oil companies increased ATF prices by a mammoth 13.8% in November 2021; compared to a year ago, the commodity cost 95.8% more that month! Therefore, airlines have a strong need to reduce their fuel consumption, especially considering the growth their fleets are to witness in the coming years. As per aerospace giants Airbus and Boeing, between 2021 and 2040, 30,000 and 43,610 more aircraft, respectively, will be required to cater to the booming number of air travelers.?

Oil Companies Responding to Rising Demand with Newer Fuel Additives?

Seeing the rising consumption of petroleum fuels in an era characterized by high air pollution levels and stringent emission control regulations, oil and chemical companies are doing their bit by introducing newer and more-effective additives. For instance, AMSOIL Inc. launched its antifreeze agent for sportscars in March 2021. Moreover, in June 2019, Hindustan Petroleum Corporation Limited (HPCL) had introduced multi-functional additives for diesel and petrol under the brand name Vinner. They reduce manifold, carburetor, injector, and intake valve deposits, fuel usage, and smoke emissions.?

Similarly, in June 2020, BASF SE introduced Keropur D, a multifunctional diesel fuel system cleaner, in South Korea. It reduces fuel consumption, enhances diesel combustion, and elongates engine life. Moreover, one of the Supermajors, Chevron Corporation, launched trunk piston oil additives under the brand names OLOA 48027 and OLOA 48028 in December 2019. Another significant product launch in this regard was of Diesel Flo with Cetane and Power Plus with Cetane by Champion Lubricants in April 2020.?

Hence, as petroleum-based fuel consumption continues to soar despite the global push for clean energy, the demand for fuel additives will increase as well.?