Saturday, April 29, 2017

Stopping Dirty Diesel

 Despite having significant oil reserves, West Africa lacks sufficient refinery resource to process its own higher quality oil and has therefore welcomed cheaper imports from abroad. European standards prohibit the use of diesel with a sulfur content higher than 10 parts per million (ppm), diesel with as much as 3,000 ppm is regularly exported to Africa. From July 1, diesel being sold at the pumps in Ghana and Nigeria will have to meet a maximum 50 ppm standard. Mahamudu Bawumia, the Vice President of Ghana, said that the introduction of the new regulations would see Ghana "moving to be at the same level as the western countries or the East African countries."
He added that the changes "will reduce respiratory diseases triggered by fuel toxins with higher sulfur content."

Africa's cities are growing quickly. Lagos, Nigeria's largest city, has a population of 21 million, and estimates suggest this number could almost double by the year 2050. Bigger cities mean a much greater risk from air pollution. While rapid urbanization and the poor quality of the largely second-hand car fleet in the region are partly responsible for the high levels of air pollution, low quality diesel also has a significant impact. Fuel pollutants have been linked to the development of asthma, lung cancer and cardiovascular diseases.  Switching to low sulfur fuel in Africa, as well as introducing cars with modern emissions control technologies, could prevent 25,000 premature deaths in 2030 and 100,000 in 2050.

Diesels trading companies are using a process known as "blending" to combine low and high specification fuel, creating a mixture that complies with weak African regulations. The closer to the specification boundary the product lies, the larger the potential margin for the trader. This sub-standard product, known in the industry as "African Quality," could not be sold in Europe, but it is not illegal for it to be sold elsewhere. The blending process - which takes place either in European ports or en route to Africa, via a "ship-to-ship" transfer.  The two main commodities companies implicated were Trafigura and Vitol. Both told DW that, while they accepted that the problem of high sulfur fuel needed to be dealt with, the onus was on the governments in Africa to ensure the quality of diesel being sold at the pumps.



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