Archive for May 2022

Demand for Tier 3 sulfur credits caused the price to double in May. The best offer is now triple the first quarter 2022 level. This, and the current surge in octane value to record heights, were predicted in Chapter 25 from Gasoline Desulfurization for Tier 3 Compliance as signs the octane/sulfur squeeze is happening. Every…

Tier 2 sulfur credits spiked 50-fold, then D6 RINs spiked 50-fold, now the Tier 3 sulfur credit spike is imminent. Don’t get caught panic buying after the credits spike. Every refining executive should have a comprehensive understanding of the technical, regulatory, and economic aspects of Tier 3 gasoline, the sulfur credit program and how they…

See this excerpt from Gasoline Desulfurization for Tier 3 Compliance on $3 billion of capital investments needed to produce Tier 3 gasoline reliably and profitably. excerpt on Tier 3 investments Every refining executive should have a comprehensive understanding of the technical, regulatory, and economic aspects of Tier 3 gasoline, the sulfur credit program and how…

We don’t have a shortage of gasoline. We have a shortage of marketable gasoline. This chart, from an Argus Media article shows the price differential between marketable (Tier 3) gasoline and unmarketable gasoline: The spike is an indicator of octane value which has skyrocketed this year taking the price of gasoline with it. The underlying…

Two key findings from Hoekstra Trading’s 3-year research project on Tier 3 (10 ppm sulfur) gasoline were: The first conclusion came from extensive pilot plant and field tests on commercial desulfurizers which showed octane loss on fluid catalytic cracking (FCC) gasoline desulfurizers for Tier 3 is typically 2.5 octane numbers versus the industry-expected 0.5 octane…