Since 2013, USEPA does not differentiate the requirements for off-road diesel vs. transportation, or on-road grade diesel. All diesel fuel must meet the ULSD requirements, with the exception of some uses in Alaska.
There is a taxation difference, between on-road, and off-road/agriculture use diesel, but otherwise no formulation difference. In many states, for example Texas, ag-use or exempt diesel is dyed red, but it is otherwise no different than transportation grade diesel.
MMEX portends to produce non-transportation grade diesel, for use as fracking fluid. That use too is generally prohibited, and in Texas requires an special use UIC (permit) from the Railroad Commission. The only other drilling fluid use is in distillate blended heavy oil based drilling mud (HOBM). This is not in high demand, and is used in limited instances for well-bore control, or in applications with specific geology.
You can see the specifics of MMEX's proposed topping unit in its TCEQ administrative PBR application. It is the absolute most basic separation unit possible, and cannot produce any directly useful product. It lacks any stabilization or reformer capability for naphtha, it lacks any capability for kerosene stabilization for use as jet fuel, it lacks any form of desulfurization capability for any purpose, and it lacks any cetane boosting that could produce a transportation-grade diesel blend stock. The ATB/resid stream is low value, hard to transport, and has no direct market in Texas, or Mexico. Even a moderately skilled petroleum engineering student in an undergrad program can evaluate the VFuels process flow diagram in MMEX's application, and understand this.
It is also possible to take that data, and model it in a commercial tool like ProMax, and see that as proposed, this topping unit has dozens of problems. It would never run in balance, and it would never survive standard external conditions that cause imbalance conditions.
I think few are calling out MMEX on anything, for one or two reasons - the media, particularly regional media are too dumb to understand. Any legitimate investor will have competent technical and financial advisors on the deal team, who within an hour or two would recognize the fantasy/scam/ineptitude of the whole thing, and put it in the trash - in other words, it is a non-event, so why bother with it.
Its hard to believe that Hanks would attempt to build this 10k barrel a day unit if it didn't produce a product. I thought he said he planed on selling diesel for heavy equipment in the area. I admit I know very little about topping units buts its hard to believe he would get permits and the Major and everybody whom surely know more about it than me have gone along with it? Wouldn't they have called him out on it if there was no economic viability? I don't think they're that stupid .
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