A retrofit solution to petrol retailers' temperature-related stock losses.

Technisch Ingenieursbureau E.Meurs.B.V. renovates, maintains and builds new petrol stations, with particular specialization in LPG and CNG. Our company is authorised to calibrate dispensers by the Dutch Weights and Measures.

Our integrated maintenance and specialized automation and control equipment development has led us to recognise problems inherent in our sector and deliver appropriate solutions.

Problem Description

LPG is sold generally as a mixture of varying ratios of propane and butane, meaning that its density and compressibility vary. This, combined with a high coefficient of thermal expansion contributes to inaccurate metering of the product.

E.Meurs.B.V. recognised this problem not only with their own dispensers, but in the majority of LPG dispensers in the marketplace. Because of the high cost of crude petroleum and the high hydrocabon fuel duty which is applied the working capital involved in crude oil and product storage is extremely high. Consequently, the motor fuel distribution system is now based on just-in-time manufacture which means that motor fuel may be delivered from refinery-based distribution terminals at well above ambient temperature and also well above the standard temperature of 15 degrees Celsius. Fuel from inland or import terminals may also be delivered at temperatures below 15 degrees Celsius. Such temperature variations, which may be both geographical and seasonal, mean that petrol retailers can incur stock losses over which they have no control. Likewise, they mean that the amount of energy which both retailers and motorists are purchasing in a litre of fuel is also variable.

Legislation introduced in Belgium required fuel delivered to petrol retailers to be measured in standard litres, however, petrol retailers buying a volume at 15 degrees Celsius and then selling it at, say, 7 degrees Celsius will incur a volume stock loss of one percent. The only way to resolve this problem is for retailers also to sell fuel in standard litres by means of automatic temperature compensation at the dispenser (ATC), and the Belgian Government subsequently put in place legislation to facilitate this. The major problem for retailers is the cost of buying new ATC dispensers.

We used our experience developing standard litre correction for LPG dispensers (DVTC) to provide a unique system which can be retrofitted to existing petrol and diesel dispensers. This equipment (TVC) has OIML R117 approval. Although, other dispenser manufacturers are beginning to advertise the new equipment with ATC capability for the UK the Meurs equipment is the first to be approved by NWML for retrofitting to a range of existing dispensers.

Impact and Reaction

Demand for our unique DTVC and TVC products for LPG, petrol and diesel is being stimulated by the high oil price, low margins and the corresponding increase in cost of stock losses, as well as increased awareness of the product and its benefits. It gives retailers the opportunity to recover some of the losses accrued due to variations in product temperature from delivery through storage to retailing the product, and the consumer confidence that they are always getting a fair deal for the energy they purchase.

We currently have sold over 25 units in the UK on LPG dispensers with over 80 units sold throughout Europe and across Asia. Major LPG suppliers such as Autogas Limited and Flogas are recognising DTVC as something they should fit as standard where possible to their financial benefit and have up to 30 sites due for retrofitting in the coming year. Manufacturers such as Torex, Pumptronics and Merridale are interested in incorporating DTVC in their products as well as retrofitting to field units. Data received from field sites shows that on average DTVC will have a very positive benefit for LPG retailers and payback times can be as low a 12 months.

Research and development continues to enable the technology to be developed to retrofit a wider range of current dispensers as well as provide units for OEMs.

NWML approval for the TVC system for petrol and diesel dispensers was obtained on 1st April 2008 and it was subsequently launched in the UK at IFFE2008. We have had a good initial response to the launch of TVC. Since then we have been identifying trial sites for TVC and liaising with both national and local TSOs with regards to rolling out field trials. Throughout the rest of Europe we have sold 60 units.

Uniqueness and Excellence

Almost all the meters in dispensers now have electronic heads and there are other temperature conversion units on the market. However, unlike the Meurs inventions, these other units are far less flexible and are not suitable for a wide range of meters with electronic heads. Our research and development objective was to ensure that the retrofit kits or supplies to dispenser manufacturers would be compatible with the great majority of electronic head meters, and this is demonstrated by the number of models for which NWML approval has now been granted.

Additionally, other systems when fitted to a dispenser can be interogated to give the total number of standard litres dispensed as well as the total number of non-standard litres dispensed. The Meurs units are more sophisticated. Along with the standard litre and non-standard litre totals they will calculate and display, when interrogated, the total number of litres which have been added to the uncorrected volume to give standard litres and the total number of litres which have been subtracted from the uncorrected volume to give standard litres. That is, they give the retailer a measure of the extent to which sales volumes are above 15 degrees Celsius or below this temperature. This information is available for both total sales and last fill data. This is important operational data for retailers when considering source of supply and the temperature of deliveries. It also provides an indication as to the benefits to the retailer and the motorist of ATC.

For the UK, we have also developed a hand held unit with infra red communication to the ATC kit through which can read out the data from a safe area.