23 March 2001
Italy’s third largest fuel and lubricant marketer, Kuwait Petroleum Italia SpA (KPIT), signed a contract with The Lubrizol Corporation in which KPIT plans to sell Lubrizol’s PuriNOx Fuel Technology under the brand “Q White”.
During 2001, KPIT will lease and install three of Lubrizol’s blending units required to prepare the PuriNOx fuel-water emulsion, using an additive package developed by Lubrizol. KPIT will invest US$1 million and will handle widespread distribution of Q White to owners of vehicle fleets and other diesel-powered equipment in Italy. According to Lubrizol, the PuriNOx technology provides simultaneous PM and NOx emission reduction with no need for hardware add-ons, engine modifications or replacements.
Of the estimated 16,900 kiloton total diesel market in Italy, KPIT projects an 850 kiloton market for emulsion fuels such as Q White, which is targeted primarily to the public services bus segment. According to KPIT, there is approximately a $1.75 billion non-retail diesel fuel market in Italy, of which the company plans to target almost 10% with the Q White technology.
In Italy, the Ministry of Finance has designated special categories for emulsion fuels with a 36% lower tax rate than conventional EN590 diesel fuel. This tax category applies to stabilized emulsion fuels meeting the specification set by the Italian government (20th March 2000). In France, the tax rate for emulsion fuels is 32% lower than EN590 diesel fuel. Due to this advantageous tax positioning of low-emission fuels in France and Italy, fleet operators will experience no negative economic impact by switching from normal diesel to emulsion fuels such as Q White. In addition, the United Kingdom has already removed the tax on water content in the fuel.
Source: Lubrizol Corporation