Lubrication Needs for Next Generation Gasoline Passenger Car Engine Technology

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1 Lubrication Needs for Next Generation Gasoline Passenger Car Engine Technology V Simpósio de Lubrificantes, Aditivos e Fluidos São Paulo, Brasil, October 24, 2012 Ravi Tallamraju

2 Passenger Car Motor Oil Global Market Engine Oil Market Drivers The engine oil market undergoes constant change as a result of three factors: Changing emissions legislation Increased fuel economy requirements Durability under severe operating conditions 2

3 Diesel vs. Gasoline head-to-head on fuel economy and emissions Clean Turbo DI Turbo GOAL PFI / Cat LNT / SCR Emissions s Euro 5/6 Diesel Fuel Economy Compromised by aftertreatment DPF 3 Dirty DPF = Diesel Particle Filter LNT = Lean NOx Trap SCR = Selective Catalytic Reduction Thirsty Indirect Injection Fuel Economy Direct Injection Common Rail Economical

4 Passenger Car Motor Oil Global Market Legislation Focused on Reducing CO 2 Emissions Many countries implementing regulations to limit CO 2 Actual and Projected GHG Emissions for New Passenger Vehicles Grams CO2 per km (NEDC test cycle) Canada S. Korea China Australia Japan Dotted line: Proposed or contested Solid lines: Enacted California, USA United States European Union Source: Passenger Car Vehicle Greenhouse Gas and Fuel Economy Standards: A Global Update, January

5 Passenger Car Motor Oil Global Market Example: EU CO2 Passenger Car Legislation EU average new car CO 2 emissions and proposed targets CO 2 emissions (g/km) g/km (1995) Actual emissions 152 g/km (2008) Phasing in period CO 2 fines Target emissions 130 g/km (2012) 95 g/km (2020) CO 2 fines 1 st g/km 2 nd g/km 3 rd g/km 4+ g/km /g per g CO 2 above emissions limits 5 Source : European Union statistics Based on 2008 sales, the fines payable in 2015 would be over 29 billion Source : European Union statistics

6 FE-Emissions Link KMPL 70 MPG (UK) Diesel MPG (US) Diesel 29.8 KMPL Fuel Economy (mpg) g/km means about 43mpg (US) for gasoline (or 18.3 KMPL) MPG (UK) Gasoline MPG (US) Gasoline 25.5 KMPL 21.3 KMPL 17.0 KMPL 12.8 KMPL 8.5 KMPL 4.3 KMPL CO2 Emissions (g/km) 6

7 Passenger Car Motor Oil Global Market Example: EU CO 2 Passenger Car Legislation OEM positions in 2008 compared to 2012 CO 2 target Bubble size indicate relative volume of vehicle production CO2 emissions s (g/km) Suzuki Fiat Mazda Toyota PSA GM Ford Renault Nissan Honda Hyundai Volkswagen Daimler BMW 100 1,000 1,100 1,200 1,300 1,400 1,500 1,600 Manufacturer's average vehicle mass (kg) Each OEM may identify different ways to reduce CO 2 emissions 7 Source : European Federation for Transport & Environment, 2009

8 Passenger Car Vehicle Hardware Changes The introduction of more sophisticated hardware will provide significant challenges for engine lubricants Gasoline Euro Euro Euro Euro Engine design PFI PFI + GDI T-GDI T-GDI Aftertreatment TWC TWC TWC TWC +GPF HD Diesel Euro Euro Euro Euro Engine design IDI + DI DI DI DI Aftertreatment EGR EGR +SCR EGR + SCR EGR +DPF +SCR 8 Source : Lubrizol KEY Engine design types Aftertreatment system types PFI Port fuel injection gasoline TWC Three-way catalyst GDI Direct injection gasoline GPF Gasoline particular filter T-GDI Turbo charged GDI EGR Exhaust gas recirculation IDI Indirect injection diesel DPF Diesel particulate filter DI Direct injection diesel SCR Selective catalytic reduction

9 Passenger Car Motor Oil Global Market Engine Design Changes Gasoline direct injection (GDI) Involves injection of the gasoline directly into the combustion chamber, rather than into the intake port Gives power and efficiency benefits Adding a turbocharger (T-GDI) Gives the engine designer the ability to provide the right amount of air for optimum combustion Further increases power and efficiency T-GDI engines are compact with high power output 9

10 GDI-New Sales Projections Source: IHS Global insight

11 Passenger Car Motor Oil Global Market T-GDI: Performance Challenges for Engine Oils Increased power density Comparison of Engine Oil Viscosity Increase in PFI and T-GDI T-GDI Engine PFI Engine Test conditions - Similar power outputs - Same fuel and oil used - Conditions slightly different to account for different engine types T-GDI engines run hotter and harder, leading to increased oxidation 11

12 Passenger Car Motor Oil Global Market T-GDI: Performance Challenges for Engine Oils Turbocharging Turbocharging increases the severity on the lubricant A critically hot area for the oil is the turbocharger bearing Accelerated oxidation rates can lead to a rapid degradation of the oil, causing deposits in the turbocharger and other areas 1cm Turbo bearing seizure Turbo shaft failure Oil pickup blockage Pickup deposits (solvent washed) Turbocharging leads to increased oxidation and oil degradation 12

13 Passenger Car Motor Oil Global Market T-GDI : Performance Challenges for Engine Oils Downsizing More torque from a downsized engine means higher loads on smaller bearings a challenge to the lubricant film strength T-GDI engine connecting rod bearing Comparison of these bearings 40 GDI vs PFI +39% % Torque Width Stress PFI engine connecting rod bearing % Downsizing leads to the need for increased wear protection 13

14 TEM - Visual Comparison of Lubricant Drains: Diesel soot vs. GDI contaminates Typical Diesel Soot Typical GDI Contaminates GDI engines create increasingly severe environment for wear 14

15 Field Testing Summary GDI engines create an increasingly severe environment for lubricant Lubrizol has globally accumulated over 3 million miles on our lubricant formulations in GDI powered vehicles 15 GDI engines create increasingly severe environment for lubricant

16 The Changing Market : Vehicle Hardware Changes Vehicle hardware change Impact on lubricant technology Indirect injection Direct injection = Greater deposit protection and soot handling Nonturbocharged Turbo charging = Greater protection against thermal degradation Basic or no aftertreatment Advanced after-treatment = Requirement for after-treatment compatibility Changes in hardware lead to higher quality lubricant technology 16

17 Fuel Economy Improvement drivers for Brazil New legislation for energy efficiency improvement standards for Brazil* Fuel Current Average Fuel Economy*, KMPL Proposed Average Fuel Economy target (for 2017)*, KMPL Gasoline Ethanol New tax incentives* introduced for improvements in fuel economy for Brazil 15.46% improvement in fuel economy (2017) up to 1% IPI tax credit 18.84% improvement in fuel economy (2017) up to 2% IPI tax credit Incentives & new standards can influence changes in technology towards GDI engines for Brazil GDI engine models already introduced/ being introduced to Brazil & are expected to grow Examples : VW Passat ; Peugeot 3008 ; Hyundai/ others? * Source : INOVAR-AUTO energy efficiency rules October

18 GDI Sludge Concern with Low Quality Lubricants/ Fuels Low tier oil: High temperature oxidation drives viscosity increase and sludge deposits 18 High tier oil: No significant sludge deposits Issues of concern for Brazil & other emerging markets Impact of lubricant quality misapplication of lubricant? Impact of ethanol / other bio-fuels? Impact of severe operating conditions? Impact of stop & go city operation; fuel dilution? Impact of drain interval? Higher Performance lubricants are required for new GDI Engines Low Tier Oil : API SG level ; High Tier Oil : ACEA A3/B4 + OEM level of performance

19 Passenger Car Motor Oil Global Market Improving Fuel Efficiency Engine oils both enable and directly contribute to improving fuel efficiency Enabler Providing high performance robustness that allows changes to engine design technology without impacting fuel economy Direct Contributor Formulated to maximise fuel economy: e.g. choice of viscosity grade, friction modifier selection and use, viscosity at high temperature high shear (HTHS), base oil viscosity index The roles are interlinked 19

20 Summary Legislation focused on reducing CO 2 (GHG) Emissions and improving Fuel Economy significant penalties for non-compliance Primary drivers for move to GDI/ T-GDI technologies for new gasoline cars worldwide New GDI/ T-GDI engine technologies require high performance lubricants Much higher power densities higher thermal and oxidative stress Lighter viscosity grade for fuel economy Increased need for wear protection Turbo charger protection needs higher thermal and oxidative stress Higher level of abrasive contaminants better wear protection needs After treatment devices elemental limits on lubricants Need to upgrade the lubricant quality significantly to address Durability concerns with: Higher overall performance needs Lighter viscosity grades (0W-xx / 5W-xx) Higher quality base oils ( Group II and Group III ) New additive technology 20

21 With you every step of the way. 21

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