Almost a year ago, NPN Magazine covered in detail the coming need to consider diesel exhaust fluid as a product of interest for retailers and marketers involved in diesel sales and service. As noted in that article:
Although the Jan. 1 (2010) deadline will building demand for DEF, it’s anticipated to be slow going in the immediate future. The economic slowdown has impacted truck sales. In addition, older technology engines that are already in the supply chain can be used until they are exhausted. On the plus side, unlike what was seen with the ULSD deadline the economy is also suppressing the heavy purchase of existing 2009 models that are not required to meet the new standards ahead of the deadline. So, although truck purchases will likely be sluggish to start, once the economic conditions improve and confidence builds there should be a notable bump in purchasing activities. Finally, as noted not every vehicle will be using SCR to meet the emission requirements.
This has proven to be largely the case, and if anything the degree to which the inventory of 2009 engines would be an issue has been understated. The estimate among some companies providing a DEF solution is that we may not see the glut of 2009 engines not requiring DEF to last at least another six months.
Regardless, several points noted in the earlier article ring true today:
As to the best business model in offering the product, it comes down to the familiar – price, convenience and existing commercial fueling and service agreements.
From a price/margin standpoint, DEF is reportedly averaging a retail price of about $3.25 per gallon in Europe with reasonable (though unspecified) margins being reported. What the price and margin will be in the U.S. will come down to market factors (estimates range from $3.00 to $6.00 per gallon), but the retail margin should be notably better than gasoline and other motor fuels though the volume will certainly be far lower. The cost to commercial customers with packaged jug solutions will be high compared to bulk pricing, but with less initial investment challenges for the retailer/marketer. Given the nature of the SCR system, a driver can choose to pass up filling the DEF tank when stopping for fuel until he or she finds a low price and similarly a more convenient, dispensed solution. This can make the earlier adoption of a higher volume solution a reasonable play for the appropriate markets.
Similarly, marketers with card lock and mobile fueling operations or supplying home-fueled fleets and municipalities should certainly consider offering DEF as part of this service, at the very least to protect business. A fleet could easily take DEF in-house, and still get fueled at a card lock or from a mobile fueling solution. But that also encourages a good customer to begin to consider alternatives and potential competitors to the existing relationship. And, as the years pass, the product will move into the profit center category.
The market is slow out of the gate, largely as predicted. But companies that do a significant amount of diesel business need to get on board earlier rather than later. And, similarly, the early adopters will undoubtedly be better positioned than their competitors as demand ramps up.
AMERICAN CONTROLS, INC.
We manufacture and assembly our Duraflo brand DEF dispensing systems for drums or totes with or without spill containment, with or without metering including custody transfer metering if desired, with or without environment temperature control and with either electric or pneumatic operated pumps. We also can custom design larger storage and dispensing systems for indoor or outdoor use including interface capability for data interchange functions. We can provide a system as simple as a drum pump with a hose and nozzle compatible for def to an integrated bulk dispensing system.
Farmington Hills, MI 48336
Fax: (248) 476-3390 (sales) or (248) 476-3133 (engineering)
Web: www.americancontrolsinc.com; www.defdispensing.com; www.ureadispensingsystems.com
Contact name: Bob Taylor
Contact e-mail: email@example.com
Benecor has been at the forefront of the DEF market. Benecor currently supplies DEF specific pumps to all industries currently dispensing DEF. Benecor offers tote and barrel pumps for open applications and has launched a new line of Centrifugal pumps for the close product application. In addition to these pumps Benecor also offers submersible DEF pumps for bulk storage applications. In 2010 Benecor will be introducing several above ground storage and dispensing solution for commercial and retail applications
12809 Silver Lake Road
Brighton, MI 48116
Contact name: Brendan Foster - President
Contact e-mail: firstname.lastname@example.org
Bennett Pump Company
Global manufacturer of gasoline, diesel and DEF pumps and dispensers Bennett Pump is a global dispenser supplier based in Spring Lake, Mich. We make a full line of commercial, retail and truck stop dispensers. Our flagship retail dispenser, the Pacific, was the first PCI compliant dispenser introduced in the US marketplace in 2008.
The Bennett BlueFueler line of DEF dispensers is the most complete line of DEF dispensers and pumps in the U.S. Models are available in both suction and dispenser versions, with flow rates of up to 10 GPM. The BlueFueler 100 Series is ideal for use for fleets. It is Weights and Measures approved and supports interfaces into most fuel management and cardlock systems. It is designed for use with above ground tanks and IBC totes. The BlueFueler 200 Series is identical but has the addition of a Weights and Measures certified retail register. It supports interfaces into many popular retail POS systems. Both the 100 and 200 Series are available today. The BlueFueler 300 and 400 Series are similar to the previous models and have optional heating systems and internal hose and nozzle assemblies.
1218 E. Pontaluna Road
Spring Lake, MI 49456
Fax: (231) 799-6202
Contact name: Alan Levine, Vice President
Contact e-mail: email@example.com
Blue1USA is a fully integrated developer and manufacturer of DEF Storage and Dispensing Systems for the commercial, retail and industrial markets. Our proven products are in the market today and are the systems of choice throughout Europe. Our systems will be utilized as part of the infrastructure supporting the EPA’s Tier 2 Emission Standards for the reduction of NOx emissions.
Blue1USA will be providing a wide range of cost-effective solutions to address our clients’ needs within the emerging DEF Industry. Our products include:
- Mini-Bulk Storage and Dispensing Systems for the Commercial and Retail Markets
- Closed Liquid Dispensing System for Totes and Drums
- Pump Assemblies, Nozzles and Hoses
- Insulated and Pre-Wired Tote Cabinets
- Underground and Aboveground Bulk Storage Solutions
3883 Rogers Bridge Rd., #205-A
Duluth, GA 30097
(866) 992-5831 or (770) 688-1958
Fax: (770) 232-9270
Contact name: Charles Culverhouse
Contact e-mail: firstname.lastname@example.org
BlueDEF™, a division of Old World Industries Inc.
Old World Industries, one of North America's largest suppliers of functional fluids, has the existing supply chain of 15 production locations and over 4,500 distribution points to make BlueDEF Diesel Exhaust Fluid available to you. This is Old World's commitment to a cleaner environment. With BlueDEF Diesel Exhaust Fluid, "Blue Means Go."
4065 Commercial Ave.
Northbrook, IL 60062-1851
Fax: (847) 664-7011
Contact e-mail: email@example.com
Brenntag is the world’s largest distributor of Diesel Exhaust Fluid, our experience and size brings the best solution for DEF from coast to coast. Each and every delivery of TerraCair® Ultrapure DEF has a C. of A. that ensures the product meets stringent ISO 22241 standards. TerraCair® Ultrapure DEF is available today from Brenntag in full tanker truck, partial bulk, 330 gallon tote/IBC systems, 55 gallon drums, and 2 gallon bottles. Delivered pure with our own fleet from our 100 + stocking locations across the U.S. and Canada. Through our partners we can facilitate high quality, equipment dispensing and storage solutions designed and tested for DEF.
5083 Pottsville Pike
Reading, PA 19605
Fax: (610) 926-0420
Contact name: Alan Smith
Contact e-mail: firstname.lastname@example.org
Colonial Chemical Company
Colonial Chemical Company has partnered with Yara North America Inc., in the Diesel Exhaust Fluid (DEF) market. Colonial will operate as Yara’s Sales Agent in the Northeast & Mid-Atlantic regions of the US and also perform DEF packaging, warehousing and bulk hauling transportation as needed.
Yara is the global leader in the DEF business, and is a leading North American supplier of DEF. Yara has multiple source points, both domestic and offshore for Air1® DEF, assuring availability and security of supply. Yara’s leadership and experience brings proven solutions for DEF customers. Together, Yara North America and Colonial Chemical will work to sell Air1® and support Mansfield Oil Company and their DeliveryONE Network of nationwide distributors. This network is establish to economically and efficiently sell and distribute Air1®, the world’s number one brand of DEF, to all segments of the US market.
Yara and Colonial Chemical have been dedicated to the Automotive Alliance Stakeholders group, which helped develop the current ISO 22241 specifications that define DEF quality and has assisted the development of the DEF market and infrastructure. Together Yara and Colonial Chemical's experience in the DEF market stretches back to 1995 and both have handled millions of gallons of DEF annually.
Air1® product is available nationwide in 1 and 2.5 gallon bottles, 55 gallon drums, 275 and 330 IBCs as well as in bulk. Air1® offers a complete DEF solutions including certified DEF dispensing and storage equipment as well as financing options.
78 Carranza Road
Tabernacle, NJ 080888
Fax: (609) 268-2117
Web: www.colonial-chemical.com; www.urea-scr.com
Contact name: Joseph Hiznay, Business Director; (609) 268-1200 ext 110
Contact e-mail: email@example.com
Dresser Wayne is a leading global supplier of integrated solutions to the retail and fleet petroleum industry. Building on years of experience with DEF dispensing solutions in Europe, Dresser Wayne introduced state-of-the-art DEF dispensing solutions to the North American market in 2010. Available now, Dresser Wayne DEF dispensers are designed for high volume truck stops and fleet fueling facilities. A patent-pending heated hose and nozzle enclosure with automatic door operation provides easy access. The user-friendly hose is tension-free for a six-foot stretch with an automatically retractable 12-foot total reach. The hose and nozzle doors, which protect in cold weather, can be locked in the open position to allow easy access in warmer weather. Features include weights and measures sealable meters for retail sales, an in-dispenser card reader option, and an interface to POS and fleet card systems, which enables seamless integration into your operation. High-grade internal components prevent contamination of the DEF and help protect exhaust systems from damage caused by compromised DEF. Dresser Wayne DEF dispensers utilize a narrow 40-inch wide frame that can be flexibly configured with either left or right-hand hose cabinet position. These dispensers install easily onto existing diesel fuel islands and can be used with above ground or underground tanks.
3418 Jarrett Way
Austin, TX 78728
Fax: (215) 257-1790
Contact name: Tom Glahn
Contact e-mail: firstname.lastname@example.org
Gilbarco Veeder-Root’s Encore® S DEF dispenser is familiar on the outside. It’s consistent with your brand image and familiar to your customers. It leverages your existing interfaces to CRIND® payment and fleet card networks, alphanumeric keypad applications and loyalty programs that are supported by your existing point of sale system.
Yet, on the inside, its innovative design brings to bear all the best practices for dispensing DEF we’ve learned from Europe to provide you with the best opportunity build a new profit center and meet the needs of your customers. The Encore S DEF dispenser is designed specifically to prevent DEF freezing and crystallization with a heated cabinet and specially-designed optional hanging hardware. The hydraulics are stainless steel to protect against corrosion. And an innovative, Weights & Measures approved stainless steel mass flow meter measures DEF accurately and reliably.
7300 W. Friendly Ave.
Greensboro, NC 27410
Contact name: Chad Johnson
Contact e-mail: email@example.com
The GoatThroat™ Pump DEF System offers a complete solution for dispensing DEF at 4 gallons per minute from barrels which are 5 to 55 gallons. Parts include: the GT300 Pump with Viton seals with a telescoping 12” - 43” siphon tube, the RT300 Remote Discharge Nozzle with FEP lined tubing which delivers DEF up to 10 feet from the barrel and controls fluid flow as easily as opening and closing a faucet, and the BGA pneumatic adapter giving constant pressure of 4psi, well within UN Safety standards for pressurizing drums. Costing less than $650, and with a 10 year life, the System delivers DEF with no spill or leaks, eliminates VOCs and drains drums dry – less than ½ inch of liquid left in the barrel. A metering devise can be added to the system. Manufactured by GoatThroat™ Pumps, a global leader in environmentally preferable transfer solutions, the system is made in America and meets RoHS standards.
60 Shell Avenue
Milford, CT 06460
Fax: (212) 243-6070
Contact name: Nancy Westcott
Contact e-mail: firstname.lastname@example.org
Mansfield is a national fuel supply, distribution and logistics company focused on improving efficiencies in the downstream petroleum supply chain. The company delivers motor fuels nationwide to commercial, industrial, government and retail customers. In November of 2009 Mansfield Oil Co. was ranked by Forbes as the 83rd largest privately held company. In the U.S. The company has generated 100 percent sales growth in fiscal 2009 with revenues of $5.1 billion. Corporate headquarters are in Gainesville, Ga. with regional service centers located in Denver, Chicago, Detroit and Houston. Biofuels offices are located in Bloomington, MN and
Charlottesville, Va. Mansfield is now positioned to supply our clients with DEF on a nationwide basis. The product will be available in 1 gallon, 2.5 gallon jugs, 55 gallon drums, 275 gallon IBC totes, and bulk.
1025 Airport Parkway, SW
Gainesville, GA 30501
Fax: (678) 450-2119
Contact: Kristin Kimzey
OPW Fueling Components
OPW Fueling Components' DEF nozzle technology provides the trucking and fueling industries with a cost-effective solution against the risks of DEF mis-filling. The OPW DEF nozzle solution-which includes the 21Gu DEF nozzle and Mis-Filling Prevention Device-is a proven technology that has been standardized by the European trucking and fueling industries. The OPW solution is a fail-safe way to alleviate any mis-filling concerns by truckers and fleet owners. The 21Gu Mis-Filling Prevention Device (MFPD) is inserted into the fill pipe of the DEF tank onboard a truck. If a driver inadvertently tries to fill their diesel tank with DEF, the 21Gu nozzle will not open. After noticing that nothing is being dispensed, the driver will realize the error and fill DEF into the DEF tank. The 21Gu nozzle includes a magnetic device that, when inserted into a MFPD, activates and allows product to flow freely.
OPW Fueling Components
9393 Princeton-Glendale Road
Hamilton, OH 45011
(800) 422-2525 or (513) 870-3315
Fax: (800) 421-3297 or (513) 870-3157
Web: www.opw21Gu.com or www.opwglobal.com
Contact name: Brandon Grote, Product Manager - Dispensing Systems
Contact e-mail: email@example.com
Total Control Systems
Total Control Systems offers a complete range of positive displacement flow meters for the unmatched performance of Diesel Exhaust Fluid measurement.
The 682 piston and 700 rotary flow meters have a low cost construction and a compact design, making them ideal metering solutions for dispenser and delivery vehicle applications in DEF custody transfer.
The 682 piston and 700 rotary DEF flow meters are available with a full complement of accessories to meet specific application requirements including air eliminators, strainers and preset valves, as well as mechanical and electronic registers from leading industry suppliers.
Total Control Systems flow meters conform to the ISO Standards for Diesel Exhaust Fluid to ensure product purity.
2515 Charleston Place
Fort Wayne, IN 46808
(800) 348-4753 or (260) 484-0382
Fax: (260) 484-9230
Contact name: Dan Murray
Contact e-mail: firstname.lastname@example.org