in July 2005. Initially, a single vehicle fuel
consumption limit was adopted. Now, there are
two indicators of fuel consumption limit: by
vehicle model and by the corporate average fuel
consumption (CAFC)/Target CAFC (TCAFC).
In accordance with the Passenger Vehicle Fuel
Consumption Limits and the Evaluation Methods
and Indicators for Passenger Vehicle Fuel Consumption, effective as of January 1, 2016, the
average fuel consumption of new vehicles is to
be reduced to 5 l/100 km by 2020. In addition,
energy efficiency and new energy vehicles are
clearly identified as a priority in the Made in
China 2025 strategy, which states that the fuel
consumption of new passenger vehicles (new
energy passenger vehicles included) should be
reduced to 4 l/100 km by 2025. In 2015, the
average fuel consumption of China’s passenger
vehicles was 7.97 l/100 km. There is, therefore,
huge potential to reduce vehicle fuel consumption to achieve the targets.
5.2.3 Optimal Paths for Oil
Consumption
Optimal paths for upgrading of fuel quality. The
major difficulty in upgrading fuel quality from
China IV to China V lay in reducing sulphur
content from 50 to 10 lg/g, which could be
effectively addressed through petrol and diesel
hydrodesulphurisation or adsorptive desulphurisation. This ensured full implementation of the
China V standard as scheduled on January 1,
2017. The major difficulty in upgrading fuel
quality from China V to China VI lies in
reducing olefins without changing the octane
number. Meanwhile, the declining diesel-petrol
ratio and growing demand for petrol should also
be taken into consideration. Firstly, breakthroughs in series alkylation technologies should
be made. Alkylation is the principal method for
upgrading fuel quality from China V to
China VI. To upgrade fuel quality, research on
series alkylation technologies, including solid
acid alkylation and ionic liquid alkylation,
should be increased to secure early breakthroughs. Secondly, catalytic cracking should be
given priority and advances in catalytic cracking
technologies made to improve petrol yield,
reduce olefins, increase octane number and boost
propylene production. Through isomerisation
and etherification of olefins in catalytic cracking
light petrol, reduction of olefins while increasing
octane number can be made possible. Thirdly,
optimisation of refining-chemical integration
should be enhanced and optimisation techniques
like hydrocracking and catalytic reforming
adopted to increase yields of high-octane petrol
and low-cost raw materials for ethylene and
aromatics. Fourthly, hydrogen costs should be
lowered, as this largely determines petrol and
diesel production costs.
The most important ways to reduce the
diesel-petrol ratio include optimising oil refining
units, improving production technologies,
reducing diesel output and increasing the production of petrol. Specifically, the production of
alkylated and isomerised fuels can be increased
to improve the octane number and increase petrol
output. Poor-quality diesel fuels like catalytic
cracking diesel and recycled diesel can be converted into petrol components of high-octane
number or aromatic hydrocarbon products, thus
reducing diesel production. Integrated refining
and chemical companies should reduce
straight-run naphtha and properly increase
straight-run diesel as the raw material for ethylene. In addition, diesel exports can be increased
to release diesel overcapacity, and a national fuel
pricing mechanism should be leveraged to
gradually reduce the diesel-petrol ratio of production and promote diesel sales.
For example, a company with an integrated
10 Mt oil refining plant and 1 Mt ethylene plant,
faced with reducing its diesel-petrol ratio and
coping with slowing growth in demand for oil
products, would need to shift production from
diesel and petrol to high-grade petrol, aviation
kerosene, clean diesel and low-cost chemicals.
That is, it would need to shift its production
focus from fuels to chemicals. A change like this
takes time. Structural adjustments need to be
speeded up during the 13th Five-Year Plan
(2016–20) to allow more low-quality raw materials to enter ethylene cracking plants.
Given the current situation in China, the paths
for vehicle energy saving can be categorised as
272
Y. Jianlong and M. Haigh
consumption limit was adopted. Now, there are
two indicators of fuel consumption limit: by
vehicle model and by the corporate average fuel
consumption (CAFC)/Target CAFC (TCAFC).
In accordance with the Passenger Vehicle Fuel
Consumption Limits and the Evaluation Methods
and Indicators for Passenger Vehicle Fuel Consumption, effective as of January 1, 2016, the
average fuel consumption of new vehicles is to
be reduced to 5 l/100 km by 2020. In addition,
energy efficiency and new energy vehicles are
clearly identified as a priority in the Made in
China 2025 strategy, which states that the fuel
consumption of new passenger vehicles (new
energy passenger vehicles included) should be
reduced to 4 l/100 km by 2025. In 2015, the
average fuel consumption of China’s passenger
vehicles was 7.97 l/100 km. There is, therefore,
huge potential to reduce vehicle fuel consumption to achieve the targets.
5.2.3 Optimal Paths for Oil
Consumption
Optimal paths for upgrading of fuel quality. The
major difficulty in upgrading fuel quality from
China IV to China V lay in reducing sulphur
content from 50 to 10 lg/g, which could be
effectively addressed through petrol and diesel
hydrodesulphurisation or adsorptive desulphurisation. This ensured full implementation of the
China V standard as scheduled on January 1,
2017. The major difficulty in upgrading fuel
quality from China V to China VI lies in
reducing olefins without changing the octane
number. Meanwhile, the declining diesel-petrol
ratio and growing demand for petrol should also
be taken into consideration. Firstly, breakthroughs in series alkylation technologies should
be made. Alkylation is the principal method for
upgrading fuel quality from China V to
China VI. To upgrade fuel quality, research on
series alkylation technologies, including solid
acid alkylation and ionic liquid alkylation,
should be increased to secure early breakthroughs. Secondly, catalytic cracking should be
given priority and advances in catalytic cracking
technologies made to improve petrol yield,
reduce olefins, increase octane number and boost
propylene production. Through isomerisation
and etherification of olefins in catalytic cracking
light petrol, reduction of olefins while increasing
octane number can be made possible. Thirdly,
optimisation of refining-chemical integration
should be enhanced and optimisation techniques
like hydrocracking and catalytic reforming
adopted to increase yields of high-octane petrol
and low-cost raw materials for ethylene and
aromatics. Fourthly, hydrogen costs should be
lowered, as this largely determines petrol and
diesel production costs.
The most important ways to reduce the
diesel-petrol ratio include optimising oil refining
units, improving production technologies,
reducing diesel output and increasing the production of petrol. Specifically, the production of
alkylated and isomerised fuels can be increased
to improve the octane number and increase petrol
output. Poor-quality diesel fuels like catalytic
cracking diesel and recycled diesel can be converted into petrol components of high-octane
number or aromatic hydrocarbon products, thus
reducing diesel production. Integrated refining
and chemical companies should reduce
straight-run naphtha and properly increase
straight-run diesel as the raw material for ethylene. In addition, diesel exports can be increased
to release diesel overcapacity, and a national fuel
pricing mechanism should be leveraged to
gradually reduce the diesel-petrol ratio of production and promote diesel sales.
For example, a company with an integrated
10 Mt oil refining plant and 1 Mt ethylene plant,
faced with reducing its diesel-petrol ratio and
coping with slowing growth in demand for oil
products, would need to shift production from
diesel and petrol to high-grade petrol, aviation
kerosene, clean diesel and low-cost chemicals.
That is, it would need to shift its production
focus from fuels to chemicals. A change like this
takes time. Structural adjustments need to be
speeded up during the 13th Five-Year Plan
(2016–20) to allow more low-quality raw materials to enter ethylene cracking plants.
Given the current situation in China, the paths
for vehicle energy saving can be categorised as
272
Y. Jianlong and M. Haigh