# Presentation: 130983

## VIABILITY OF UREA INFRASTRUCTURE FOR SCR SYSTEMS U.S. Environmental Protection AgencyClean Diesel Engine Implementation WorkshopCHICAGO, ILLINOISAugust 6-7, 2003  

**VIABILITY OF UREA INFRASTRUCTURE FOR SCR SYSTEMS**** U.S. Environmental Protection Agency****Clean Diesel Engine Implementation Workshop****CHICAGO, ILLINOIS****August 6-7, 2003**** **** **

**Michael D. Jackson**
**Scott Fable**
**Shyam Venkatesh**
**TIAX, LLC**
**1601 S. De Anza Blvd, Suite 100**
**Cupertino, California 95014-5363**
**408.517.1550**

## Urea can be distributed at prices comparable to the price of diesel

**Urea can be distributed at prices comparable to the price of diesel**
**Focus urea distribution to the large public and private diesel retailers serving the Class 7 & 8 trucks sector and consuming nearly 97 percent of the diesel**
**The current world and domestic production capacity of urea is sufficient to cover the increased demand from mobile SCR urea **
**Cost to retail urea is reasonable for the largest retailers and is less than the price of diesel**
**There is a small segment in terms of diesel consumption (3%) that will see urea at prices around $3/gallon**
**SCR urea is very competitive with NOx adsorber in the early years (2007) and markedly cheaper in later years (2015)**
**For SCR urea to be implemented successfully, all stakeholders must work in a concerted manner**

## 23.6%

**Light-Heavy**
**Class 6**
**19,501 - 26,000 lb**

- L
- 2.9%

- MR

- LR

- CF

- SC

- P

- O
- 1.1%

- CF

- SC

- P

- O

- CF

- SC

- P

- O

- L
- 6.9%

- MR

- LR

- CF

- SC

- P

- O

- CF

- SC

- P

- O

- CF

- SC

- P

- O

- L
- 3.7%

- MR

- LR

- CF

- SC

- P

- O

- CF

- SC

- P

- O

- CF

- SC

- P

- O

- L
- 50%

- MR
- 14.9%

- LR
- 19.7%

- CF
- 14.3%

- SC
- 4.5%

- P
- 31.2%

- O

- CF
- 5.6%

- SC
- 1.3%

- P
- 8.1%

- O

- CF
- 3.7%

- SC
- 1.1%

- P
- 14.9%

- O

**Medium**
**Class 3-5**
**10,001 - 19,500 lb**

**Light**
**Class 1-2**
**< 10,000 lb**

**Heavy**
**Class 7&8**
**> 26,001 lb**

******23.6%**

******6.9%**

******54.2%**

**85 % of all**
**diesel consumed**

**SCR Urea Implementation****    *****Diesel Consumption***

## Profiles of Fueling Stations Serving the Class 7 & 8 Truck Market

**Station Size**
**(Monthly Diesel Consumption)**

**# of Public & **
**Private Stations**

**Diesel Consumption **

**SCR Urea Implementation****    *****Fueling Station Profiles***

**Large**
- (2,000,000 — 1,000,000 gal/month)

**Medium**
- (200,000 – 80,000 gal/month)

**Small**
- (<80,000 gal/month)

- >25,000

- 3%

- 2,200

- 77%

- 3,500

- 20%

## Projected Annual Urea Consumption

**Projected Annual Urea Consumption**

**SCR Urea Implementation****    *****Projected Annual Urea Consumption***

**2007 Total  Diesel Consumption ~43 Billion Gal**

**2015 Total  Diesel Consumption ~57 Billion Gal**

## World & Domestic Urea Supply vs. Demand

**SCR Urea Implementation****    *****Urea Supply vs. Demand***

**MM Tons/Yr**

- * -- Corresponds to 250 - 1,100 MMgal of 32.2% Aqueous urea
- Domestic demand includes stationary side SCR usage

## Retail Urea Cost by Diesel Station Throughput

**0.00**

**0.50**

**1.00**

**1.50**

**2.00**

**2.50**

**3.00**

**3.50**

**4.00**

**0**

**10000**

**20000**

**30000**

**40000**

**50000**

**Urea Throughput, gal/month**

**Cost, $/gal**

**SCR Urea Implementation****    *****Retail Urea Cost***

**Retail Urea Cost by Diesel Station Throughput**

## Retail Urea Cost by Diesel Station Throughput

**SCR Urea Implementation****    *****Retail Urea Cost***

## Range of Urea Prices for Various Scenarios

**SCR Urea Implementation****    *****Retail Urea Price***

## Assumptions:

_**Assumptions:**_
- $1.55/gal diesel
- 1 million miles over vehicle life
- High EGR used on alternative systems for MY2007-09 and on all vehicles for MY2010+
- Maintenance costs same for all systems

**SCR-Urea Implementation Strategies****    *****SCR Urea-NOx Adsorber Break-Even Analysis***

##  Breakeven Urea Prices for Various Scenarios

**SCR Urea Implementation****    *****Price of Urea Compared to Competing NOx Technologies***

## All stakeholders must move in a concerted manner

**SCR Urea Implementation****    *****Stakeholders***

**Truck Operators** - key stakeholders since aggregate fueling habits almost evenly distributed between public fueling facilities and private central fueling facilities. Will require installing a urea dispensing facility in their central fleet refueling facilities and need to leverage infrastructure at public facilities. Will require assurance from truck and engine manufacturers on the availability of urea and SCR systems before investing in vehicles or infrastructure.
**Urea Retailers** - primary retailers of diesel to the Class 7 & 8 truck market.  The large truck stops and central fleet fueling facilities are best early adopters.  Will require strong signals from customer (truck operators) to carry infrastructure.
**Urea Distributors** - these are likely to be existing diesel distributors, ag urea distributors and new entrants.  Are key to coordinating supply and demand and will require early strong signals from upstream and downstream members in the value chain to make investments.
**Systems Providers** - vendors of urea distribution, storage, and dispensing equipment. Existing players servicing the petroleum industry are well situated to handle urea.  Some niche urea systems developers already exist in Europe.
**Engine & Truck Manufacturers** - providers of SCR technology.  Must initiate strong signals to all downstream members in the value chain on impending this emerging technology.

## Thank you for you attention 

**Thank you for you attention**

**Acknowledgements**
- TIAX would like to acknowledge the Engine Manufacturers Association and the National Renewable Energy Labs for making this study possible

**Further Published References:**
- “**Development of a Urea Infrastructure to Support MY2007+ Heavy-duty Emission Requirements,”** TIAX report to NREL,  Contract # ADZ-3-33020-01, May 2003
-  “**Selective Catalytic Reduction Urea Infrastructure Study,”**  Arthur D. Little report to NREL, Contract No. DE-AC36-99-GO10337

**Contact**
**Michael D. Jackson**** - jackson.michael@tiax.biz**