CHINA SOLUTIONS

China’s Solutions: Upgrade Fuel Quality & Promote Green Technology

In July 2018, the State Council of China has mandated the study on the use of “Detergency Enhancement Additive” (DEA) to rapidly upgrade fuel quality at source to achieve environmental protection goals and defend the blue sky.

Significantly, China

  • Realizes the limit of refinery technology in producing fuels that achieve environmental protection performance;

  • Urgently needs to achieve fuel savings and emissions reduction for its huge vehicle population of 378 million units on the road in 2020 and reaching more than 500 million by 2050;

  • Intends to ensure the new generation of modern vehicles continues to comply with National 6 emissions standards in real-world driving.

 

Fuel Quality Upgrade: Detergency Enhancement Additive (DEA)

MAZ was added to the National Catalogue for the promotion of “Energy Savings and Low Carbon Technology” by NDRC as a “DEA” in 2015.

The National Automotive Green Alliance has certified MAZ as “Gasoline DEA” in December 2020 specifying the definition and evaluation methodology for DEA, and provided the industry guidance to the government.

The National Energy Administration is now reviewing the setup of DEA performance specifications in the national fuel standards to implement the use of DEA through regulatory mandate.

The DEA is the world’s first in defining the enhanced performance of fuel based on industry-approved evaluation methodology on the bench regarding the criteria for fuel savings, emissions reduction and engine detergency.

 

China’s Green Technology Promotion Catalogue

In January 2021, the core technology of MAZ is listed as No.1 in the environmental protection industry category of the “Green Technology Promotion Catalogue” for achieving sustainable fuel savings and emissions reduction.

Green Catalogue is not just green development, but is also a Green Technology Innovation (GTI) national project to be actively promoted by the Central Government by giving incentive policies for its production and consumption.

Green Catalogue has estimated that the MAZ technology can reduce annually:

 

 

The substantial benefits can justify regulations to implement the core technology.

GTI is the key technology pathway for China to achieve advanced green development and to gain international competitive advantage. In February 2021, the State Council released a “Guiding Opinions to Accelerate the Establishment and Improvement of a Green and Low Carbon Circular Development Economic System”. In essence, the “Opinions” has emphasised the importance of speeding up green innovation and development.

 

China Fuel Quality Goals

Key focus on Transportation Sector: Fuel Savings & Reduced Emissions: –

Fast economic growth leads to expansion in car ownership, which has more than tripled from 76.2m in 2009 to 276m in 2020.

Rapid vehicle ownership and rising mileage growth are linked to concerns about energy security, global warming, air pollution, and premature deaths.

By 2050, the vehicle population is estimated to be more than 500 million units, the majority will be internal combustion engines.

These growing pressures have led to more proactive government policy to achieve:-

  1. Fuel efficiency to mitigate energy supply security concern
  2. Emissions reduction to peak carbon by 2030, and carbon neutral by 2060.
  3. Defence of the blue sky to prevent growing premature deaths from air pollution.

China’s oil demand, a large share consumed by transport sector, has tripled from 4.7 MMbd in 2000 to 14.7 MMbd in 2019, which is 1/3 of OECD levels.

In 2019, 72% of oil was imported raising concern about energy security.