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Potential to Reduce Emissions of Sulphur Dioxide through Reducing Sulphur Levels in Heavy and Light Fuel Oils2. Heavy Fuel Oil2.1 Sulphur Levels in CanadaHFO is almost exclusively used in central and eastern Canada. In comparison, very little is used in western Canada. Sources that use HFO, such as power plants, refineries, and industrial boilers, are considered "point" rather than "area" sources. Table 2.1 gives volumes of HFO produced, exported and imported by region in Canada. In 1999, imports of HFO accounted for over a third (38%) of the national demand. Of HFO produced in Canada in 1999, almost one-quarter (23%) was exported. In 1998 the destination of all exports of HFO was the US. Table 2.2 provides a summary of the source countries for imports of HFO (the majority coming from non-US sources). The percent of demand that the imports provide is shown in Table 2.3. Figure 2.1 - Volume of Heavy
Fuel Oil Produced or Imported by Region during 1994-1999
![]() Click to Enlarge Figure 2.1 shows the change in quarterly national and regional volumes of HFO produced and imported over the period 1994 to 1999. This figure shows increases in production and importation of HFO during the winter in the Atlantic region. Figure 2.2 shows the regional sulphur levels for HFO for the years 1994 to 1999. Ontario has the highest levels but they have decreased by 3% since 1994. Quebec has the lowest levels and they have decreased by 22% while average levels of sulphur in HFO in the Atlantic region has increased by 6% since 1994. The average sulphur level of the small volumes of HFO in the west have decreased by about 29% since 1994. Figure 2.3 shows the mass of sulphur2 in HFO in Canada in the years 1994-99. The sulphur mass in HFO nationally and in eastern Canada has been increasing since 1995-1996. Nationally the sulphur mass has varied from a low of 105 kilotonnes in 1995 to a high of 126 kilotonnes in 1999. Figure 2.4 - Average Sulphur
Content of Heavy Fuel Oil by Refinery during 1994-1999 and importer
during 1998-1999
![]() Click to Enlarge Figure 2.4 presents yearly sulphur levels in HFO produced and imported by individual refiners between 1994 and 1999 and by importers between 1998 and 1999. 2.2. Regulated Limits for Sulphur in HFOCanada There is no regulated national standard for sulphur in HFO. The voluntary standard for HFO set by the Canadian General Standards Board (CAN/CGSB-3.2-M99) does not specify any limit for sulphur in HFO. Several provinces regulate the sulphur content of HFO; for example, British Columbia, New Brunswick, Quebec and Ontario. The Montreal Urban Community also has a by-law limiting the sulphur content in HFO. International The European Union passed a binding directive for LFO and HFO in April 1999. For HFO, the directive requires that starting January 1, 2003 sulphur content not exceed 1.0% wt. There are provisions that allow countries unaffected by acidic deposition (specifically, Spain, Portugal and Greece) to apply for a derogation which would permit them to set a limit of up to 3.0% wt. As well, the EU allows sulphur levels higher than 1% if facilities using that fuel meet SO2 caps and monitoring requirements. Austria, Denmark, Finland, Germany and the Netherlands already require 1.0% sulphur in HFO, and Belgium, Denmark and Sweden have tax incentives for low-sulphur HFO. A number of US states, including Maine, Michigan, Delaware, Texas and New York, have requirements for sulphur in HFO. Table 2.4 presents the details. Note that some states regulate sulphur dioxide emissions from boilers rather than the sulphur content of the fuel. All regulated limits for HFO are per-litre (or per-gallon) maximum limits. Unlike Canadian and US limits for sulphur limits in gasoline, there are no limits on annual average levels of sulphur in fuel oils. 2.3 Benefits of Reducing Sulphur in HFOReducing sulphur in HFO would reduce emissions of sulphur dioxide and sulphate particles. Table 2.5 shows the amount by which sulphur oxide emissions (primarily SO2) would be reduced for sulphur limits of 2.0%, 1.5%, 1.0% and 0.5% by weight. Setting limits for HFO could reduce national emissions of sulphur oxides by 50 to 215 kilotonnes per year (depending on the limit set). This corresponds to a reduction of between 2 and 8% of the national SO2 emissions inventory3 . Almost all of these reductions (95%) would occur in central and eastern Canada - areas sensitive to acidic deposition. 2.4 Price Differentials for Low Sulphur and Regular HFOIn the US low sulphur HFO is a distinct commercial product. Figure 2.5 shows the historical price difference for sales to end users between low sulphur HFO and regular HFO in the US from 1978 to 1998. The average difference during this period was 7.8 US cents per gallon (or 3.1 Cdn cents per litre). Over the 22 year period, the difference varied from a low of about 4 to over 15 US cents per gallon. Over the last five years the average difference was 7.2 US cents per gallon (2.8 Cdn cents per litre) and the range was 3.0 to 12.6 US cents per gallon. Figure 2.6 shows the monthly price difference between regular and low sulphur HFO during 1998 and 1999. 2 Sulphur Mass = Fuel Volume x %Sulphur x Density. 3 Based on Canada's 1998 inventory |
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