In order to meet future diesel specifications the sulphur content of diesel would need to be reduced to below 50 ppm. This requirement would require improved reactor configurations. In this study we examine the benefits of counter-current contacting of gas oil with H-2, over conventional co-current contacting in a trickle bed hydrodesulphurization (HDS) reactor. In counter-current contacting, we achieve in-situ stripping of H2S from the liquid phase; this is beneficial to the HDS kinetics. A comparison simulation study shows that counter-current contacting would require about 20% lower catalyst load than co-current contacting. However, counter-current contacting of gas and liquid phases in conventionally used HDS catalysts, of 1.5 mm sizes, is not possible due to flooding limitations. The catalysts need to be housed in special wire gauze envelopes as in the catalytic bales or KATAPAK-S configurations. A preliminary hardware design of a counter-current HDS reactor using catalytic bales was carried out in order to determine the technical feasibility. Using a realistic sulphur-containing feedstock, the target of 50 ppm S content of desulphurized oil could be met in a reactor of reasonable dimensions. The study also underlines the need for accurate modelling of thermal effects during desulphurization. Our study also shows that interphase mass transfer is unlikely to be a limiting factor and there IS need to develop improved reactor configurations allowing for increased catalyst loading, at the expense of gas-liquid interfacial area.