Diesel Emissions Conference Brazil

Following the extremely successful launch conference in 2011, the Diesel Emissions Conference Brazil 2012 will provide a vital and timely update on diesel emissions legislation and technologies, as Brazil strives to achieve key emissions targets for both commercial on-highway and off-highway vehicles.

Market Overview

Truck market size in Brazil

2010 was a record year for the commercial vehicle market in Brazil. Quickly bouncing back in 2009 after the financial crisis, heavy-duty vehicle sales increased by 37% and medium-duty by 21%. Production levels in 2011/12 are forecast to remain high, apart from a small dip in production and sales during 2012 due to the pre-buy of P7 vehicles in 2011. Overall, the automotive market is expected become the 5th largest in the world by 2016.

Legislative situation and fuel quality

PROCONVE P7 for heavy duty on-road vehicles was introduced in January 2012. P7 is based on Euro V standards, and also introduces a limit on ammonia emissions of 25ppm. The new regulation follows on from PROCONVE P5, skipping over PROCONVE P6 completely, which was set to be implemented in 2009 but cancelled due to unavailability of low-sulphur fuel. The first regulations for non-road vehicles in Brazil, PROCONVE MAR-1, is set to come in force from January 2015.

Fuel quality

Without high-quality diesel that is low in sulphur, stricter emissions regulations, like PROCONVE P7, cannot be met. The ANP (National Petroleum Agency) is responsible for ensuring S50 diesel is available throughout Brazil from January 2012, and S10 will be available from 2013. A strong production and distribution network is required to meet these requirements, especially given that S500 and S1800 will continue to be available until their production is phased out in the coming years.

Market challenges

The implementation of PROCONVE P7, the introduction of S50 diesel, and developments in diesel emissions technologies worldwide present a series of challenges for the Brazilian market to overcome.  PROCONVE P5 did not require the use of an aftertreatment system, but now OEMs will have to choose technology to comply with PROCONVE P7. A strong network to produce and distribute S50 diesel is also required throughout the country, while continuing capacity to produce S500 (indefinitely) and S1800 (until 2014).

ARLA 32 Forum

In last year’s hugely successful ARLA 32 Forum, stakeholders from across South America and around the world gathered to discuss the implementation of a solid ARLA 32 market in Brazil. Our audience heard experts from North America and Europe on the unique challenges they have experienced, and discussed the need for creating a solid infrastructure to serve a rapidly increasing demand.

Market Overview

The introduction of PROCONVE P7 in January creates a real need for ARLA 32 in Brazil. 2012 will be the year when planning is put into action, and stakeholders move quickly to secure their part of the profits on offer.

However, challenges including the size and set up of the required ALRA 32 infrastructure and regulation on ARLA 32 quality still remain unsolved. These challenges must be overcome before true profits in this market can be realized.

Key themes 2012

Diesel Emissions Conference

• The transition between PROCONVE P5 and PROCONVE P7 in Brazil.
• Emissions control technology options and and practical experience of to meeting PROCONVE P7.
• Emissions reduction for non-road vehicles – plans to meet PROCONVE-MAR 1 requirements by 2015.
• Plans for future vehicle emissions reduction in Brazil and the technology options available.
• Issues surrounding diesel fuel quality standards in Brazil and the introduction of S50 and S10 diesel .
• Global experience of meeting stringent diesel emissions legislation for on-road and non-road sectors.
• Further plans to introduce alternative fuels throughout Brazil.

ARLA 32 Forum

• The current status of the ARLA 32 market since the implementation of PROCONVE P7
• Outlook on the potential of the ARLA 32 market beyond 2012 – demand, availability, distribution and costs.
• The demand for ARLA 32 in other South American countries.
• Ensuring quality control of the ARLA 32.