Monday, July 6, 2015
Russia Korea Joint Energy Protocol June 2015
PROTOCOL
FOR THE FOURTEENTH MEETING
OF THE RUSSIA KOREA JOINT COMMITTEE
FOR ENERGY AND NATURAL RESOURCES COOPERATION
June 16, 2015
Moscow, Russia
On June 16, 2015, the fourteenth meeting of the Russia-Korea Joint Committee for Energy and Natural Resources Cooperation (hereinafter referred to as "the Committee") was held in Moscow, Russia.
The Russian delegation was headed by Mr. A. Inyutsyn, Deputy Minister of Energy of the Russian Federation. The Korean delegation was headed by Mr. WOO taehee, Deputy Minister of Trade, Industry and Energy of the Republic of Korea (hereinafter referred to as - "the Sides").
The Committee summarized the results of the last meeting and discussed prospective areas of cooperation between the Russian Federation and the Republic of Korea, including oil, gas, electricity, renewable energy. The Committee shared various ideas on possible cooperation projects discussed within the Committee.
1. Cooperation in oil and gas fields
1.1. The Sides highly appreciate the cooperation between Gazprom and KOGAS and support intention of the companies to sign Cooperation Agreement between the companies in the nearest future.
1.2. The Russian Side notes the significance of cooperation to assure reliable supply of LNG from Russia to Korea.
1.3. The Sides expressed their expectations that price review negotiation between Sakhalin Energy and KOGAS will be conducted in a commercially reasonable way.
1.4. The Russian Side expressed its interest in cooperation with KOGAS and other Korean companies in supplying LNG to the Republic of Korea from "Russian Far East LNG" project by Rosneft.
1.5 The Russian Side welcomes and the Korean Side expresses the interest of Korean export-credit agencies in providing finance for the Yamal LNG project and for the construction of LNG tankers that are chartered for the Yamal LNG project and are currently being built at the Korean shipyard.
1.6 The Russian Side informed the Korean Side about the possibility of cooperation in the field of natural gas usage as a motor fuel, including sharing of experience on government support measures and economic incentives for the development of NGV market, legal regulation, as well as studying the practice of motor fuel technologies production, safe operations of gas fueling infrastructure and gas equipment.
1.7. The Sides shared the view that changes in North East Asia, which is quickly growing into the world's largest oil market, will provide both countries with new opportunities for cooperation, including oil trading. In particular, the Korean Side gave an overview of the North East Asian oil hub project being carried out by the Korean government and expressed its hope that the Russian Side will take interest in this project, The Russian Side expressed its interest in the project and said that it would consider encouraging Russian companies to participate after receiving detailed information on this issue from the Korean Side.
2. Cooperation in the electricity field
2.1. The Sides welcomed the signing of Memorandum of Understanding between the Russian company JSC «Rosseti» and Korea Electric Power Corporation (KEPCO) on long-term scientific and technological cooperation in electricity sector.
2.2. The Sides support the cooperation of the PJSC «Inter RAO», JSC «Rosseti» and KEPCO on the joint research of the possibilities of the interconnection of the two countries a transmission line of high capacity. The Sides welcomed the signing of the Trilateral Memorandum of Understanding among the Russian companies PJSC «Inter RAO» and JSC «Rosseti» and Korea Electric Power Corporation (KEPCO) to intensify work in this direction and cooperation for a prefeasibility study on transborder power grid construction between the Russian Federation and the Republic of Korea. Based on the above mentioned MOU, Russian and Korean companies shall research the possibilities and necessary conditions for the grid interconnection.
2.3. The Sides welcome the signing of the Memorandum of Understanding between JSC «Rusl-Hydro» and K-Water on the 30th of January, 2015, according to which both companies plan to develop cooperation in the
field of hydropower, renewable energy and water resources management. The Sides shared the view that they will continue to cooperate in identifying joint projects between RusHydro and K-Water in such areas as hydro power, waterworks and renewable energy and provide support. for the initiation of regular technology exchange meetings to promote cooperation on water-related technology.
2.4. The Russian Side informed the Korean Side about the establishment of the Working Group by the Ministry of Energy of the Russian Federation to promote cooperation in energy field with the participation of interested companies and organizations (including PJSC «Inter RAO», JSC «Rosseti», JSC «RusHydro», JSC «RAO Energy Systems of East», En+ Group etc.).
2.5. The Sides welcome the signing of Cooperation Agreement on the I" of October, 2014, between JSC «RAO Energy Systems of East» and «Samsung Engineering Co. Ltd.» on collaboration in implementation of joint projects in the Far East region of the Russian Federation, according to which both
companies plan to expand cooperation in the field of joint projects dedicated to the energy infrastructure development in the Far East region of the Russian Federation.
2.6. The Sides welcomed that KEPCO, the Russian company En+ Group and Skolkovo Institute of Science and Technology of Russia agreed to continue the.joint research study for the Northeast Asian grids.
2.7. The Sides welcome the signing of Agreement between JSC «Rosseti» and Hyundai Heavy Industries Corporation for long-term cooperation on December 9, 2014, according to which it is planned to develop a long-term and effective cooperation in the production and supply of electrical equipment.
3. Cooperation in the coal field
3.1. In order to promote the cooperation in the coal field the Sides agreed to consider the proposals of Russian coal miners and potential South Korean consumers.
3.2. The Sides agreed to encourage the expansion and improvement of infrastructure such as railroad and loading port in order to increase the volume of Russian coal supplies. The Sides also welcomed further discussion on the development of cooperation between Russian coal miners and Korean partners.
3.3. The Sides agreed to hold a meeting for discussion of the mutual cooperation and information exchange with the participation of Russian coal industry representatives and coal consumers of South Korea.
4. Cooperation of energy efficiency and renewable energy fields
4.1. The Sides welcome the cooperation of the Russian side with the Korea Institute of Energy Research of the Republic of Korea OZIER) and commit both Sides to develop further cooperation.
4.2. The Russian Side invited the Korean Side to take part in the IV International Forum on Energy Efficiency and Energy Sector Development ENES 2015, and to present a joint exhibition of Korean energy companies during the exhibition ENES 2015.
4.3 The Sides agreed to make an effort to identify directions of joint R&D projects and to hold manpower and technical exchange on a regular basis in the field of smart grid. The Sides also shared views to strengthen the global cooperative system in the field by working with the International Smart Grid Action Network.
The Sides decided that the fifteenth meeting of the Committee will be held in the Republic of Korea in 2016. The location and date of the meeting will be determined via diplomatic channels at later time.
This protocol is hereby signed in Moscow, Russia, on June 16,2015, in duplicate in the English Janguaftexts being equally authentic.
On behalf of the Russia side On behalf of the Korean side
Russian Committee
Co-chairman of the Committee
Korean side
Friday, June 5, 2015
IEC Korea Establishment
Establishment of Local Corporation
The procedures for the local corporation establishment by a foreign investor are mostly similar to those for domestic corporation establishment except for the pre-report of foreign investment and the registration of a foreign-invested company.
1.The Procedure for Local Corporation Establishment
The procedures of local corporation establishment consist of foreign investment report, registration of the establishment of a corporation, business registration and registration of a foreign-invested company, which are the same with the foreign investment procedures. The following includes the details of company establishment and business registration procedures which are significant in establishing a local corporation.
2.The Procedure for Stock Company Establishment
Partnership company, joint stock company, limited liability company, stock company and incorporated company are recognized as companies under the Commercial Act. As most companies fall into the category of "stock company," the procedures of stock company establishment will be explained here.
There are two types of stock company establishment: promotion of incorporation and subscriptive incorporation. Promotion of incorporation means that promoters subscribe for all of the shares issued at the time of incorporation. Subscriptive incorporation means promoters do not subscribe all the shares issued at the time of incorporation and offer shares for subscription.
The registration of incorporation of a stock company shall be effected within two weeks from the day when the investigation in the process of establishment has been completed in cases where the promoter subscribed for all the shares issued at the time of incorporation, and within two weeks from the day on which the inaugural general meeting has been closed in cases where the promoters have offered shares for subscription. The composition of promoters and whether the trade name or title has been used by other companies shall be reviewed before the registration. Since no trade name which has been registered by another person shall be registered as a trade name of the same kind of business in the same Seoul Special Metropolitan City, Metropolitan City, and city/gun, the company name shall be checked in advance on the Supreme Court website (www.iros.go.kr).
Required Documents in Registration of Incorporation
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|---|---|
1. Application for the registration of the incorporation of a stock company
2. Articles of incorporation (It shall be notarized by a public notary - Notarization is exempted where the total capital of the newly incorporated stock company is less than one billion won.) 3. Documents certifying subscription for shares 4. Subscription form (in the case of subscriptive incorporation ) 5. Written consent to matters concerning issuance of shares 6. Written consent to shorten the period the notice of convocation is dispatched before the date of the inauguration general meeting 7. The minute of the inaugural general meeting (It shall be notarized by a public notary. Notarization is exempted where the total capital of the newly incorporated stock company is less than one billion won.) 8. The minute of the Board of Directors (It shall be notarized by a public notary. Notarization is exempted where the total capital of the newly incorporated stock company is less than one billion won.) 9. A certificate of paid-up stocks or balace certificate 10. An investigation report of a director, auditor, or the audit committee 11. Certificate of the delivery of pertinent property (in the case of investment in kind) 12. The public notary's report on particulars of abnormal incorporation 13. A written statement by an appraiser 14. A certified copy of the report by an inspector |
15. Report certificate of foreign investment
16. Certificate of inauguration acceptance a. A Korean national shall put his/her seal on the certificate, and attach a certificate of the seal and a certified copy of resident registration b. A foreigner national shall attach a notarized original signature and certificate of the address and a copy of the passport 17. A certificate of the registration of a seal impression 18. Translation of documents (In case where the required documents including the directors inauguration acceptance are written in a foreign language) 19. A certificate of paid registration tax (issued by a district office which has jurisdiction over the area where the headquarters is located) 20. Revenue stamp of Supreme Court of Korea 21. The power of attorney (where an agent makes the report) 22. Corporate seal 23. Application form for corporate seal card (after the registration of incorporation) * The foregoing 11, 12, 13 and 14 are applied in cases where there are particulars of abnormal incorporation, such as in-kind investment. |
Required Documents for a Foreign Investor
<Required Documents for Individual Investors>
A report card of seal impression
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Put a seal or signature on a report card of seal impression and have it notarized
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A certificate of inauguration acceptance a certificate of seal impression
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Those who are inaugurated as executives of new corporations
- Korea/Japan/Taiwan: put a seal on the certificate of inauguration acceptance with a certificate of seal impression attached - Other countries: put their sign on the certificate of attorney and have it notarized |
Abstract of resident registration or Address certificate (for CEOs)
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Attached to a certificate of inauguration acceptance
- Korea/Japan/Taiwan: Abstract of resident registration or card - Other countries: notarized address certificate of respective countries (not a requirement for directors and auditors) |
Power of attorney
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When delegating registration of foreign investment
- Japan/Taiwan :Put a seal on the power of attorney with a certificate of seal impression attached - Other countries :put their sign on the power of attorney and have it notarized |
Passport copy
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All foreigners
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<Required Documents for Corporate Investors>
Corporate certified copy of register (Corporation as investors)
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Taiwan and Japan:1 copy of certified copy of register Other countries: Certificate of corporation with notarization
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Corporate report card of seal impression (for newly founded corporations)
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Put a seal or signature on a report card of seal impression and have it notarized
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A certificate of inauguration acceptance a certificate of seal impression
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Those who are inaugurated as executives of new corporations
- Korea/Japan/Taiwan: put a seal on the certificate of inauguration acceptance with a certificate of seal impression attached - Other countries: put their sign on the certificate of attorney and have it notarized |
Abstract of resident registration or a certificate of address (for CEOs)
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Attached to a certificate of inauguration acceptance
- Korea/Japan/Taiwan: Abstract of resident registration or card - Other countries: notarized address certificate of respective countries (not a requirement for directors and auditors) |
Power of attorney
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When delegating registration of foreign investment
- Japan/Taiwan: put a seal on the power of attorney with a certificate of seal impression attached - Other countries:put a signature of CEO and have it notarized |
Passport copy
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All foreigners
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Registration tax, local education tax, registration application fees etc. are the costs involved in establishing a stock company.
<Case of Company Establishment Cost(KRW 100 million in capital, in an overpopulation control area>
Item
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Details
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Costs
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|---|---|---|
Registration Tax
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0.4% of the capital, 3 times when a stock company is established in an overpopulation control area
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1,200,000 won
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Local Education Tax
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20% of registration tax
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240,000 won
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Revenue Stamp of Supreme Court
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Fee for registration application
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30,000 won
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Notarization Fee
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Articles of association, etc. (exempted in case of promotion of incorporation whose capital is KRW 1 billion or less)
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Approx. 150,000 won
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Total
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Approx. 1,620,000 won
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Business registration may be carried out at a jurisdictional tax office of the company headquarters or at all tax offices, or at KOTRA (Inbound Investment Consulting Division). It shall be done within 20 days after the commencement of business operation.
Business registration form
In cases where a foreign investor makes an investment in kind to establish a corporation, a certificate of business registration is required to receive value added tax refund when the object of investment in kind clears customs. Therefore, the business registration has to be completed prior to the import of investment object.
Thursday, May 14, 2015
Oil Trading
Products:
Jet fuel contains more sulfur, up to 1,000 ppm, which therefore it is more lubricative and does not currently require a lubricity additive as all pipeline diesel fuels require. The introduction of Ultra Low Sulfur Diesel or ULSD brought with it the need for lubricity modifiers. Pipeline diesels before ULSD were able to contain up to 500 ppm of sulfur and was called Low Sulfur Diesel or LSD. LSD is now only available to the off-road construction, locative and marine markets. As more EPA regulations are introduced, more refineries are hydrotreating their jet fuel production, thus limiting the lubricating abilities of jet fuel, as determined by ASTM Standard D445.
Light hydrocarbons; roughly, pentanes and lighter in the hydrocarbon chain, have become a more popular feedstock for the chemical industries. Sufficient demand has generated international trading in these fluids.
Gas Oil (Red Diesel) is one of a family of heavy oils made from the fractional distillation of petroleum. For heating applications, it’s known as gas oil, for automotive and plant applications it is usually called diesel fuel. Diesel can be supplied either as “white” or “red” diesel, depending on your requirements and applications. Red diesel prices are much less than white diesel due to it being taxed at a lower rate. Red diesel cannot be used for road vehicles but there is a wide range of ancillary equipment and plant in which is allowed including tractors, tippers or mowers. The red dye is added to allow inspectors to identify that it is being used correctly.
It has a sulphur content of 10ppm or less, and can contain up to 7% by volume of biodiesel.
JET FUEL or AVIATION FUEL
type of aviation fuel designed for use in aircraftpowered by gas-turbine engines. It is colourless to straw-colored in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1, which are produced to a standardized international specification. The only other jet fuel commonly used in civilian turbine-engine powered aviation is Jet B, which is used for its enhanced cold-weather performance.
Jet fuel is a mixture of a large number of different hydrocarbons. The range of their sizes (molecular weights or carbon numbers) is restricted by the requirements for the product, for example, the freezing point or smoke point. Kerosene-type jet fuel (including Jet A and Jet A-1) has a carbon number distribution between about 8 and 16 (carbon atoms per molecule); wide-cut or naphtha-type jet fuel (including Jet B), between about 5 and 15.
Types
Jet A
Jet A specification fuel has been used in the United States since the 1950s and is usually not available outside the United States and a few Canadian airports such as Toronto and Vancouver, whereas Jet A-1 is the standard specification fuel used in the rest of the world. Both Jet A and Jet A-1 have a flash point higher than 38 °C (100 °F), with an autoignition temperature of 210 °C (410 °F).
Differences between Jet A and Jet A-1
The primary difference is the lower freezing point of A-1:
- Jet A's is −40 °C (−40 °F)
- Jet A-1's is −47 °C (−53 °F)
The other difference is the mandatory addition of an anti-static additive to Jet A-1.
As with Jet A-1, Jet A can be identified in trucks and storage facilities by the UN number 1863 Hazardous Material placards. Jet A trucks, storage tanks, and plumbing that carry Jet A are marked with a black sticker with "Jet A" in white printed on it, adjacent to another black stripe.
Typical physical properties for Jet A and Jet A-1
Jet A-1 fuel must meet:
- DEF STAN 91-91 (Jet A-1),
- ASTM specification D1655 (Jet A-1), and
- IATA Guidance Material (Kerosene Type), NATO Code F-35.
Jet A fuel must reach ASTM specification D1655 (Jet A)
Typical physical properties for Jet A / Jet A-1
| Jet A-1 | Jet A | |
| Flash point | 38 °C (100 °F) | |
| Autoignition temperature | 245 °C (473 °F)[10] | |
| Freezing point | −47 °C (−53 °F) | −40 °C (−40 °F) |
| Max adiabatic burn temperature | 2,500 K (2,230 °C) (4,040 °F) Open Air Burn temperature: 1,030 °C (1,890 °F)[11][12][13] | |
| Density at 15 °C (59 °F) | 0.804 kg/L (6.71 lb/US gal) | 0.820 kg/L (6.84 lb/US gal) |
| Specific energy | 43.15 MJ/kg | 43.02 MJ/kg |
| Energy density | 34.7 MJ/L | 35.3 MJ/L |
Jet B
Jet B is a fuel in the naphtha-kerosene region that is used for its enhanced cold-weather performance. However, Jet B's lighter composition makes it more dangerous to handle. For this reason it is rarely used, except in very cold climates. A blend of approximately 30% kerosene and 70% gasoline, it is known as wide-cut fuel. It has a very low freezing point of −60 °C (−76 °F) and a low flash point as well. It is primarily used in some military aircraft. It is also used in Canada because of its freezing point.
Piston engine use
Jet fuel is very similar to diesel fuel, and in some cases, may be burned in diesel engines. Jet fuel is often used in ground support vehicles at airports, instead of diesel. The United States military makes heavy use of JP-8, for instance. However, jet fuel tends to have poor lubricating ability in comparison to diesel, thereby increasing wear on fuel pumps and other related engine parts.Jet fuel contains more sulfur, up to 1,000 ppm, which therefore it is more lubricative and does not currently require a lubricity additive as all pipeline diesel fuels require. The introduction of Ultra Low Sulfur Diesel or ULSD brought with it the need for lubricity modifiers. Pipeline diesels before ULSD were able to contain up to 500 ppm of sulfur and was called Low Sulfur Diesel or LSD. LSD is now only available to the off-road construction, locative and marine markets. As more EPA regulations are introduced, more refineries are hydrotreating their jet fuel production, thus limiting the lubricating abilities of jet fuel, as determined by ASTM Standard D445.
Worldwide consumption of jet fuel
Worldwide demand of jet fuel has been steadily increasing since 1980. Consumption more than tripled in 30 years from 1,837,000 barrels/day in 1980, to 5,220,000 in 2010.
DIESEL FUEL
n general is any liquid fuel used in diesel engines, whose fuel ignition takes place, without spark, as a result of compression of the inlet air mixture and then injection of fuel. (Glow plugs, grid heaters and heater blocks help achieve high temperatures for combustion during engine startup in cold weather.) Diesel engines have found broad use as a result of higher thermodynamic and thus fuel efficiencies. This is particularly noted where diesel engines are run at part-load; as their air supply is not throttled as in a petrol engine, their efficiency still remains high.
The most common type of diesel fuel is a specific fractional distillate of petroleum fuel oil, but alternatives that are not derived from petroleum, such as biodiesel, biomass to liquid (BTL) or gas to liquid (GTL) diesel, are increasingly being developed and adopted. To distinguish these types, petroleum-derived diesel is increasingly called petrodiesel
Types
Diesel fuel is produced from various sources, the most common being petroleum. Other sources include biomass, animal fats, biogas, natural gas, and coal.
Petroleum diesel
Petroleum diesel, also called petrodiesel, or fossil diesel is the most common type of diesel fuel. It is produced from the fractional distillation of crude oil between 200 °C (392 °F) and 350 °C (662 °F) at atmospheric pressure, resulting in a mixture of carbon chains that typically contain between 8 and 21 carbon atoms per molecule.
Synthetic diesel
Synthetic diesel can be produced from any carbonaceous material, including biomass, biogas, natural gas, coal and many others. The raw material is gasified into synthesis gas, which after purification is converted by the Fischer–Tropsch process to a synthetic diesel.
The process is typically referred to as biomass-to-liquid (BTL), gas-to-liquid (GTL) or coal-to-liquid (CTL), depending on the raw material used.
Paraffinic synthetic diesel generally has a near-zero content of sulfur and very low aromatics content, reducing unregulated emissions of toxic hydrocarbons, nitrous oxides and particulate matter (PM).
Biodiesel
Fatty-acid methyl ester (FAME), more widely known as biodiesel, is obtained from vegetable oil or animal fats (biolipids) which have been transesterified with methanol. It can be produced from many types of oils, the most common being rapeseed oil (rapeseed methyl ester, RME) in Europe and soybean oil (soy methyl ester, SME) in the USA. Methanol can also be replaced with ethanol for the transesterification process, which results in the production of ethyl esters. The transesterification processes use catalysts, such as sodium or potassium hydroxide, to convert vegetable oil and methanol into FAME and the undesirable byproducts glycerine and water, which will need to be removed from the fuel along with methanol traces. FAME can be used pure (B100) in engines where the manufacturer approves such use, but it is more often used as a mix with diesel, BXX where XX is the biodiesel content in percent.
FAME as a fuel is regulated under DIN EN 14214 and ASTM D6751.
FAME has a lower energy content than diesel due to its oxygen content, and as a result, performance and fuel consumption can be affected. It also can have higher levels of NOx emissions, possibly even exceeding the legal limit. FAME also has lower oxidation stability than diesel, and it offers favorable conditions for bacterial growth, so applications which have a low fuel turnover should not use FAME. The loss in power when using pure biodiesel is 5 to 7%.
Fuel equipment manufacturers (FIE) have raised several concerns regarding FAME fuels: free methanol, dissolved and free water, free glycerin, mono and diglycerides, free fatty acids, total solid impurity levels, alkaline metal compounds in solution and oxidation and thermal stability. They have also identified FAME as being the cause of the following problems: corrosion of fuel injection components, low-pressure fuel system blockage, increased dilution and polymerization of engine sump oil, pump seizures due to high fuel viscosity at low temperature, increased injection pressure, elastomeric seal failures and fuel injector spray blockage.
Unsaturated fatty acids are the source for the lower oxidation stability; they react with oxygen and form peroxides and result in degradation byproducts, which can cause sludge and lacquer in the fuel system.
As FAME contains low levels of sulfur, the emissions of sulfur oxides and sulfates, major components of acid rain, are low. Use of biodiesel also results in reductions of unburned hydrocarbons, carbon monoxide (CO), and particulate matter. CO emissions using biodiesel are substantially reduced, on the order of 50% compared to most petrodiesel fuels. The exhaust emissions of particulate matter from biodiesel have been found to be 30 percent lower than overall particulate matter emissions from petrodiesel. The exhaust emissions of total hydrocarbons (a contributing factor in the localized formation of smog and ozone) are up to 93 percent lower for biodiesel than diesel fuel.
Biodiesel also may reduce health risks associated with petroleum diesel. Biodiesel emissions showed decreased levels of polycyclic aromatic hydrocarbon (PAH) and nitrited PAH compounds, which have been identified as potential cancer-causing compounds. In recent testing, PAH compounds were reduced by 75 to 85 percent, except for benz(a)anthracene, which was reduced by roughly 50 percent. Targeted nPAH compounds were also reduced dramatically with biodiesel fuel, with 2-nitrofluorene and 1-nitropyrene reduced by 90 percent, and the rest of the nPAH compounds reduced to only trace levels.
Hydrogenated oils and fats
This category of diesel fuels involves converting the triglycerides in vegetable oil and animal fats into alkanes by refining and hydrogenation, such as H-Bio. The produced fuel has many properties that are similar to synthetic diesel, and are free from the many disadvantages of FAME.
DME
Dimethyl ether, DME, is a synthetic, gaseous diesel fuel that results in clean combustion with very little soot and reduced NOx emissions.
Chemical analysis
Chemical composition
Petroleum-derived diesel is composed of about 75% saturated hydrocarbons (primarily paraffinsincluding n, iso, and cycloparaffins), and 25% aromatic hydrocarbons (including naphthalenes andalkylbenzenes). The average chemical formula for common diesel fuel is C12H23, ranging approximately from C10H20 to C15H28.
Chemical properties
Most diesel fuels freeze at common winter temperatures, while the temperatures greatly vary. Petrodiesel typically freezes around temperatures of −8.1 °C (17.5 °F), whereas biodiesel freezes between temperatures of 2º to 15 °C (35º to 60 °F). The viscosity of diesel noticeably increases as the temperature decreases, changing it into a gel at temperatures of −19 °C (−2.2 °F) to −15 °C (5 °F), that cannot flow in fuel systems. Conventional diesel fuels vaporise at temperatures between 149 °C and 371 °C.
Conventional diesel flash points vary between 52 and 96 °C, which makes it safer than petrol and unsuitable for spark-ignition engines. Unlike petrol, the flash point of a diesel fuel has no relation to its performance in an engine nor to its auto ignition qualities.
Hazards
Reduction of sulfur emissions
In the past, diesel fuel contained higher quantities of sulfur. European emission standards and preferential taxation have forced oil refineriesto dramatically reduce the level of sulfur in diesel fuels. In the European Union the sulfur content has dramatically reduced during the last 20 years. Automotive diesel fuel is covered in the European Union by standard EN 590 In the 1990s specifications allowed a content of 2000 ppm max of sulphur, reduced to a limit of 350 ppm by the beginning of the 21st century with the introduction of Euro 3 specifications. The limit was lowered with the introduction of Euro 4 by 2006 to 50 ppm (ULSD, Ultra Low Sulfur Diesel). The standard currently in force in European Europe for Diesel Fuel is the Euro 5, with a maximum content of 10 ppm.
| emission standard | at latest | sulfur content | cetane number |
|---|---|---|---|
| Euro 1 | 1. January 1993 | max. 2000 ppm | min. 49 |
| Euro 2 | 1. January 1996 | max. 500 ppm | min. 49 |
| Euro 3 | 1. January 2001 | max. 350 ppm | min. 51 |
| Euro 4 | 1. January 2006 | max. 50 ppm | min. 51 |
| Euro 5 | 1. January 2009 | max. 10 ppm | min. 51 |
In the United States, more stringent emission standards have been adopted with the transition to ULSD starting in 2006, and becoming mandatory on June 1, 2010 (see also diesel exhaust). U.S. diesel fuel typically also has a lower cetane number (a measure of ignition quality) than European diesel, resulting in worse cold weather performance and some increase in emissions.
Environment hazards of sulfur
High levels of sulfur in diesel are harmful for the environment because they prevent the use of catalytic diesel particulate filters to controldiesel particulate emissions, as well as more advanced technologies, such as nitrogen oxide (NOx) adsorbers (still under development), to reduce emissions. Moreover, sulfur in the fuel is oxidized during combustion, producing sulfur dioxide and sulfur trioxide, that in presence of water rapidly convert to sulfuric acid, one of the chemical processes that results in acid rain. However, the process for lowering sulfur also reduces the lubricity of the fuel, meaning that additives must be put into the fuel to help lubricate engines. Biodiesel and biodiesel/petrodiesel blends, with their higher lubricity levels, are increasingly being utilized as an alternative. The U.S. annual consumption of diesel fuel in 2006 was about 190 billion litres (42 billion imperial gallons or 50 billion US gallons).
HEATING/SHIP FUEL
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash point of approximately 40 °C (104 °F) and oils burned in cotton or wool-wick burners. In this sense, diesel is a type of fuel oil. Fuel oil is made of long hydrocarbon chains, particularly alkanes, cycloalkanes andaromatics. The term fuel oil is also used in a stricter sense to refer only to the heaviest commercial fuel that can be obtained from crude oil, i.e., heavier than gasoline and naphtha.
Classes
Although the following trends generally hold true, different organizations may have different numerical specifications for the six fuel grades. The boiling point and carbon chain length of the fuel increases with fuel oil number. Viscosity also increases with number, and the heaviest oil has to be heated to get it to flow. Price usually decreases as the fuel number increases.
Number 1 fuel oil is a volatile distillate oil intended for vaporizing pot-type burners. It is the kerosene refinery cut that boils off right after the heavy naphtha cut used for gasoline. Older names include coal oil, stove oil and range oil.
Number 2 fuel oil is a distillate home heating oil. Trucks and some cars use similar diesel fuel with a cetane number limit describing the ignition quality of the fuel. Both are typically obtained from the light gas oil cut. Gas oil refers to the original use of this fraction in the late 19th and early 20th centuries - the gas oil cut was used as an enriching agent for carburetted water gas manufacture.
Number 3 fuel oil was a distillate oil for burners requiring low-viscosity fuel. ASTM merged this grade into the number 2 specification, and the term has been rarely used since the mid-20th century.
Number 4 fuel oil is a commercial heating oil for burner installations not equipped with preheaters. It may be obtained from the heavy gas oil cut.
Number 5 fuel oil is a residual-type industrial heating oil requiring preheating to 170 – 220 °F (77 – 104 °C) for proper atomization at the burners.[3] This fuel is sometimes known as Bunker B. It may be obtained from the heavy gas oil cut, or it may be a blend of residual oil with enough number 2 oil to adjust viscosity until it can be pumped without preheating.
Number 6 fuel oil is a high-viscosity residual oil requiring preheating to 220 – 260 °F (104 – 127 °C). Residual means the material remaining after the more valuable cuts of crude oil have boiled off. The residue may contain various undesirable impurities including 2 percent water and one-half percent mineral soil. This fuel may be known as residual fuel oil (RFO), by the Navy specification of Bunker C, or by the Pacific Specification of PS-400
Mazut is a residual fuel oil often derived from Russian petroleum sources and is either blended with lighter petroleum fractions or burned directly in specialized boilers and furnaces. It is also used as a petrochemical feedstock.
Uses
Oil has many uses; it heats homes and businesses and fuels trucks, ships and some cars. A small amount of electricity is produced by diesel, but it is more polluting and more expensive than natural gas. It is often used as a backup fuel for peaking power plants in case the supply of natural gas is interrupted or as the main fuel for small electrical generators. In Europe, the use of diesel is generally restricted to cars (about 40%), SUVs (about 90%), and trucks and buses (virtually all). The market for home heating using fuel oil, called heating oil, has decreased due to the widespread penetration ofnatural gas as well as heat pumps.
Residual fuel oil is less useful because it is so viscous that it has to be heated with a special heating system before use and it may contain relatively high amounts of pollutants, particularly sulfur, which forms sulfur dioxide upon combustion. However, its undesirable properties make it very cheap. In fact, it is the cheapest liquid fuel available. Since it requires heating before use, residual fuel oil cannot be used in road vehicles, boats or small ships, as the heating equipment takes up valuable space and makes the vehicle heavier. Heating the oil is also a delicate procedure, which is inappropriate to do on small, fast moving vehicles. However, power plants and large ships are able to use residual fuel oil.
Maritime
In the maritime field another type of classification is used for fuel oils:
- MGO (Marine gas oil) - roughly equivalent to No. 2 fuel oil, made from distillate only
- MDO (Marine diesel oil) - A blend of heavy gasoil that may contain very small amounts of black refinery feed stocks, but has a low viscosity up to 12 cSt so it need not be heated for use in internal combustion engines
- IFO (Intermediate fuel oil) A blend of gasoil and heavy fuel oil, with less gasoil than marine diesel oil
- MFO (Marine fuel oil) - same as HDO (just another "naming")
- HFO (Heavy fuel oil) - Pure or nearly pure residual oil, roughly equivalent to No. 6 fuel oil
Marine diesel oil contains some heavy fuel oil, unlike regular diesels. Also, marine fuel oils sometimes contain waste products such as usedmotor oil.
Standards and classification
CCAI and CII are two indexes which describe the ignition quality of residual fuel oil, and CCAI is especially often calculated for marine fuels. Despite this, marine fuels are still quoted on the international bunker markets with their maximum viscosity (which is set by the ISO 8217 standard - see below) due to the fact that marine engines are designed to use different viscosities of fuel. The unit of viscosity used is the Centistoke and the fuels most frequently quoted are listed below in order of cost, the least expensive first-
- IFO 380 - Intermediate fuel oil with a maximum viscosity of 380 Centistokes (<3.5% sulphur)
- IFO 180 - Intermediate fuel oil with a maximum viscosity of 180 Centistokes (<3.5% sulphur)
- LS 380 - Low-sulphur (<1.0%) intermediate fuel oil with a maximum viscosity of 380 Centistokes
- LS 180 - Low-sulphur (<1.0%) intermediate fuel oil with a maximum viscosity of 180 Centistokes
- MDO - Marine diesel oil.
- MGO - Marine gasoil.
- LSMGO - Low-sulphur (<0.1%) Marine Gas Oil - The fuel is to be used in EU community Ports and Anchorages. EU Sulphur directive 2005/33/EC
- ULSMGO - Ultra Low Sulphur Marine Gas Oil - referred to as Ultra Low Sulfur Diesel (sulphur 0.0015% max) in the US and Auto Gas Oil (sulphur 0.001% max) in the EU. Maximum sulphur allowable in US territories and territorial waters (inland, marine and automotive) and in the EU for inland use.
The density is also an important parameter for fuel oils since marine fuels are purified before use to remove water and dirt from the oil. Since the purifiers use centrifugal force, the oil must have a density which is sufficiently different from water. Older purifiers had a maximum of 991 kg/m3; with modern purifiers it is also possible to purify oil with a density of 1010 kg/m3.
The first British standard for fuel oil came in 1982. The latest standard is ISO 8217 from 2005. The ISO standard describe four qualities of distillate fuels and 10 qualities of residual fuels. Over the years the standards have become stricter on environmentally important parameters such as sulfur content. The latest standard also banned the adding of used lubricating oil (ULO).
Some parameters of marine fuel oils according to ISO 8217 (3. ed 2005):
| Marine distillate fuels | ||||||
|---|---|---|---|---|---|---|
| Parameter | Unit | Limit | DMX | DMA | DMB | DMC |
| Density at 15 °C | kg/m3 | Max | - | 890.0 | 900.0 | 920.0 |
| Viscosity at 40 °C | mm²/s | Max | 5.5 | 6.0 | 11.0 | 14.0 |
| mm²/s | Min | 1.4 | 1.5 | - | - | |
| Water | % V/V | Max | - | - | 0.3 | 0.3 |
| Sulfur1 | % (m/m) | Max | 1.0 | 1.5 | 2.0 | 2.0 |
| Aluminium + Silicon2 | mg/kg | Max | - | - | - | 25 |
| Flash point3 | °C | Min | 43 | 60 | 60 | 60 |
| Pour point, Summer | °C | Max | - | 0 | 6 | 6 |
| Pour point, Winter | °C | Max | - | -6 | 0 | 0 |
| Cloud point | °C | Max | -16 | - | - | - |
| Calculated Cetane Index | Min | 45 | 40 | 35 | - | |
- Maximum sulfur content in the open ocean is 3.5% since January 2012. Max sulfur content is 1.00% in designated areas, and will be 0.1% after 1 January 2015.
- The aluminium+silicon value is used to check for remains of the catalyst after catalytic cracking. Most catalysts contain aluminium or silicon and remains of catalyst can cause damage to the engine.
- The flash point of all fuels used in the engine room should be at least 60 °C (DMX is used for things like emergency generators and not normally used in the engine room).
| Marine residual fuels | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Parameter | Unit | Limit | RMA 30 | RMB 30 | RMD 80 | RME 180 | RMF 180 | RMG 380 | RMH 380 | RMK 380 | RMH 700 | RMK 700 |
| Density at 15 °C | kg/m3 | Max | 960.0 | 975.0 | 980.0 | 991.0 | 991.0 | 991.0 | 991.0 | 1010.0 | 991.0 | 1010.0 |
| Viscosity at 50 °C | mm²/s | Max | 30.0 | 30.0 | 80.0 | 180.0 | 180.0 | 380.0 | 380.0 | 380.0 | 700.0 | 700.0 |
| Water | % V/V | Max | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Sulfur1 | % (m/m) | Max | 3.5 | 3.5 | 4.0 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 |
| Aluminium + Silicon2 | mg/kg | Max | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | 80 |
| Flash point3 | °C | Min | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 |
| Pour point, Summer | °C | Max | 6 | 24 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 |
| Pour point, Winter | °C | Max | 0 | 24 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 |
- Maximum sulfur content in the open ocean is 3.5% since January 2012. Max sulfur content is 1.00% in designated areas, and will be 0.1% after 1 January 2015.
- The aluminium+silicon value is used to check for remains of the catalyst after catalytic cracking. Most catalysts contains aluminium or silicon and remains of catalyst can cause damage to the engine.
- The flash point of all fuels used in the engine room should be at least 60 °C.(apart from those gaseous fuels such as LPG/LNG which have special class rules applied to the fuel systems)
LIGHT HYDROCARBON
Hydrocarbons with low molecular weight such as methane, ethane, propane and butane.Light hydrocarbons; roughly, pentanes and lighter in the hydrocarbon chain, have become a more popular feedstock for the chemical industries. Sufficient demand has generated international trading in these fluids.
| Analyte | Limits of reporting for water samples (ppb) | Limits of reporting for gas samples (ppmv) | |
|---|---|---|---|
Light hydrocarbons
| methane | 1 | 10 |
| ethane | 10 | 10 | |
| propane | 10 | 10 | |
| butane | 10 | 10 | |
| pentane | 10 | 10 | |
| hexane | 10 | 10 |
GAS OIL
Gas Oil (Red Diesel) is one of a family of heavy oils made from the fractional distillation of petroleum. For heating applications, it’s known as gas oil, for automotive and plant applications it is usually called diesel fuel. Diesel can be supplied either as “white” or “red” diesel, depending on your requirements and applications. Red diesel prices are much less than white diesel due to it being taxed at a lower rate. Red diesel cannot be used for road vehicles but there is a wide range of ancillary equipment and plant in which is allowed including tractors, tippers or mowers. The red dye is added to allow inspectors to identify that it is being used correctly.
It has a sulphur content of 10ppm or less, and can contain up to 7% by volume of biodiesel.
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