A plan to cut pollution by reducing the sulfur content of ship fuel may lead to higher carbon-dioxide emissions at oil refineries, said an industry group representing companies including Exxon Mobil Corp. and Royal Dutch Shell Plc. "We don't think it's environmentally justified,'' Isabelle Muller, secretary general of the European Petroleum Industry Association, said yesterday by mobile phone from Brussels. Members of the International Maritime Organization, the United Nations' shipping division, agreed April 4 to cut the maximum sulfur content to 0.5 percent by 2020, from 4.5 percent.
Oil refineries may produce more diesel to comply with the regulation, which may cause them to emit an extra 100 million tons of carbon dioxide, 10 percent more than their output now, Muller said. That may also lead to a shortage of diesel in Europe, she said.
The IMO plan, which is scheduled to start taking effect from 2012, is intended to cut the threat of acid rain, which is caused by burning sulfur-heavy fuels. Shipping lines and car drivers may pay higher prices because of the tighter regulations and oil companies will have spend more on emission permits, Muller said.
It's also still unclear whether refiners will be able to produce fuel oil, which most currently ships use, in sufficient quantities to meet the low-sulfur rules, she said. The cost to refiners may be more that $100 billion, Muller said, citing figures from the IMO.
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