Ultra-low-sulfur diesel (ULSD) is diesel fuel with substantially lowered sulfur content. Since 2006, almost all of the petroleum-based diesel fuel available in Europe and North America has been of a ULSD type. There is not a single standard set of specifications and as the government required standard becomes progressively more strict so does the definition.
The move to lower sulfur content is expected to allow the application of newer emissions control technologies that should substantially lower emissions of particulate matter from diesel engines. This change occurred first in the European Union and is now happening in North America. New emissions standards, dependent on the cleaner fuel, have been in effect for automobiles in the United States since model year 2007.
ULSD has a lower energy content due to the heavy processing required to remove large amounts of sulfur from oil, leading to 1–2% lower fuel economy. Using it also requires more costly crude oil.
Sulfur is not a lubricant in of itself, but it can combine with the nickel content in many metal alloys to form a low melting point eutectic alloy that can increase lubricity. The process used to reduce the sulfur also reduces the fuel's lubricating properties. Lubricity is a measure of the fuel's ability to lubricate and protect the various parts of the engine's fuel injection system from wear. The processing required to reduce sulfur to 15 ppm also removes naturally occurring lubricity agents in diesel fuel. To manage this change ASTM International (formerly the American Society for Testing and Materials) adopted the lubricity specification defined in ASTM D975 for all diesel fuels and this standard went into effect January 1, 2005. The D975 standard defines two ULSD standards, Grade No. 2-D S15 (regular ULSD) and Grade No. 1-D S15 (a higher volatility fuel with a lower gelling temperature than regular ULSD).
The refining process that removes the sulfur also reduces the aromatic content and density of the fuel, resulting in a minor decrease in the energy content, by about 1%. This decrease in energy content may result in slightly reduced peak power and fuel economy.
The transition to ULSD is not without substantial costs. The US government has estimated that pump prices for diesel fuel will increase between $.05 and $.25 per gallon as a result of the transition. And, according to the American Petroleum Institute, the domestic refining industry has invested over $8 billion to comply with the new regulations.