New Diesel Fuel Lowers Emissions and Costs

According to ChevronTexaco Inc., a new refining method known as gas-to-liquid (GTL) effectively converts natural gas into a sulfur-free diesel fuel. The fuel has the potential to significantly reduce particulate emissions, surpass 2006 Environmental Protection Agency (EPA) regulations and lower diesel fuel costs. EPA regulations require that 80 percent of all diesel fuel sold for highway use have no more than 15 ppm of sulfur by June 2006
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"We think we will have something that is essentially sulfur-free," says Mark Nelson, president of ChevronTexaco's global lubricants business. "If there is enough of it, and I think there will be, it will be a big change for the positive."
GTL converts natural gas to liquid base that can be refined at a significantly lower expense than crude oil. "The good news is production [levels] could be large enough that you could have a full range of offerings if the costs to market are as low as the early indications," says Nelson.

GTL diesel engine testing is underway, with fleet tests expected to follow by the end of the year. ChevronTexaco estimates commercial quantities of GTL fuel could be available by 2009 to 2012. To meet 2006 EPA regulations, it will produce ultra-low-sulfur diesel fuel (ULSD) with around 5 to 7 ppm of sulfur by mid-2006.