Clean Diesel Market- Industry Insights, Trends, and Forecast 2017-2025

Clean diesels are a new group of diesels made up of a three part structure which combines cleaner low Sulphur diesel fuel, unconventional engines and effective emissions control technology. Clean diesels are used on a large scale for transport. They are also used to power various equipment in the mining, construction, and agriculture sectors. Clean diesels are cleaner, more fuel efficient and offer more torque than other fuels. The clean diesel market however faces major competition from its gasoline, hybrid, and electrical counterparts.

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 Low diesel prices, government subsidies, stricter environmental regulations are major drivers for the clean diesel market. Clean diesels though are known to produce nitrous oxide. The use of advanced emission control technologies are helping the clean diesel market cope with this problem. One of the most notable downsides however to diesel engines is that they tend to cost more than gasoline engines.

Clean diesel Taxonomy

On basis of the Three Part System Components:

• Fuel

  • Ultra low Sulphur diesel (ULSD)

    • Grade No. 1-D S15

    • Grade No. 2-D S15

• Engine

  • Electronic controls

  • Common rail fuel injection

    • Electro hydraulic solenoids

    • Piezo crystal electric actuators

    • Hydraulically amplified common rail

    • CRI4

  • Variable injection timing

  • Improved combustion chamber configuration

  • Turbocharging

• Effective Emission control

  • Diesel oxidation catalyst

  • Exhaust gas recirculation

  • Diesel particulate Filters

  • Selective catalyst reduction

On the basis of end user

• Agriculture

• Transportation

• Construction

• Power generation

• Mining

• Public Safety

• Others

Common Rail systems supply high injection pressures available at an accumulator directly to the injector thus providing better control, emission reduction, and better efficiency. There are two ULSD standards available, Grade No. 1-D S15 which is a highly unstable fuel with an inferior gelling temperature than regular ULSD and Grade No. 2-D S15 which is regular ULSD.  Companies such as Clean diesel Technologies (CDTI) develop catalyst technologies and emissions control systems to meet the requirements of increasingly stringent environmental regulations and decrease emissions. 

• The state-subsidized incorporation of vehicles by means of tax concessions led to a significant increase in the proportion of diesel engines in privately owned vehicles in Europe. Approximately 50 % cars in Europe run on ULSD. Europe has been the frontrunner on regulations for low-sulfur, “clean” transportation fuels. The use of ULSD since a long time combined with the presence of major car manufactures in Europe will lead to the technological advancement of the clean diesel market.

• Clean diesel fuel containing 97 percent less sulfur has been used for both on-highway and off-highway diesel engines in the US since 2006. Even though the amount of commercial diesel vehicles used in the US is low. Industries such as mining, agriculture, and construction depend on diesel for their operations. Hence incorporating efficient use of clean diesel could help boost the clean diesel market in North America.

• Diesel usage is prevalent particularly in the growing economies of Asia such as China, India and Southeast Asia. Hong Kong was the first city in Asia to introduce clean diesel to its local market in July 2000. Countries such as Japan, Taiwan, China, and India have all begun the use of ULSD. As Asia comprises of a number of developing nations the clean diesel market has the maximum potential to grow in Asia.

• In the Middle East, Saudi Arabia and Kuwait are frontrunners in the clean diesel project. To fulfil the obligatory sulfur specifications for diesel, Saudi Arabia is spending billions of dollars to construct multiple clean diesel projects. As the Middle East is a major exporter of petroleum products it can be a major clean diesel producer with the help of technology and capital.

• In Africa fewer countries have adopted low-sulfur fuel regulations. South Africa plans to initiate Clean Fuels Program 2 (CF2) is expected to be fully commissioned by 2020 to develop diesel containing 10 ppm or less of sulfur. The clean diesel market in Africa is still developing.

• As Latin American countries rely heavily on oil export revenues, the drop in fuel prices has affected them greatly. As a result of which they do not have enough capital for expansions and upgrades to produce clean diesel.

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The three-part clean diesel system enables emission reductions of over 95 percent. Lower cost of diesel coupled with its 20 to 40 percent higher fuel efficiency than gasoline make clean diesel vehicles make more economical. The recent Volkswagen emissions scandal that came to light in 2015 has had a negative impact on the clean diesel market with a decrease in diesel vehicle sales. Some major clean diesel players include CDTI, Volkswagen, BMW, Ford, Chevrolet, GMC, Nissan, Tetraneft corporation, Spinelli International Company, Digable traders, Camarona.

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