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Discussion in 'General Discussion' started by BOB TYSON, Jan 15, 2020 at 6:28 AM.
Any thoughts on what this means for Diesel fuel pricing & supply for recreational diesel boaters?
I don't think recreational boaters will see any effect. For a couple of reasons:
1. The new regs are IMO (International Maritime Organization) regulations and apply to diesel fuel used for commercial shipping only. The 2020 VLSD requirement doesn't apply to recreational boaters so we don't add to the demand for VLSD.
2. The sulfur requirement for VLSD is ≤.5% or 500 ppm; down from 3.5% or 3500ppm of sulfur. Those of us who can buy off road fuel have been at the VLSD sulfur level (less than 500ppm or .05%) since 1993, so again, we will not be adding to the demand.
3. At the refinery level in the US in the US, there has always been only one distribution channel (i.e. tankers/barges/rail cars- storage tanks- and retail tanks piping and pumps) and it is for USLD or sulfur at 15 ppm diesel, phased in over several years by 2010. So the distributor only gets and distributes USLD. The red dye is added at the point of wholesale to retail distribution and is poured into the tank at your retail store or marina when the fuel is pumped into the storage tank. The fuel is the same as USLD, but the taxes are not since you don't pay highway taxes for off-road fuel. The distribution channel for commercial shipping is substantially different so , again, there will be no competition for VLSD from recreational boaters.
Power and Motor Yacht has an article this month about how the big yacht makers (over ~90 ft) are freaking out because they didn't get another emissions exemption and the catalyst requirements are pretty onerous to the point of altering engine room space and making existing hull molds of dubious viability because they lack the engine space. Plus the urea requirements add to extra tankage space requirements.
I guess if your keel is laid down by the end of 2020 you can skate, so get those 30 meter yacht plans finalized!