Automotive Market Trends Any impacts & opportunities for Vamac & Viton?
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1 Automotive Market Trends Any impacts & opportunities for Vamac & Viton? DuPont Performance Polymers Conference May 20 th, 2010 Albergo Cocca Hotel Sarnico (Bg) Laurent Lefebvre
2 Introduction European Automotive Industry : The "Engine of Europe
3 Global Challenges for OEMs Source Daimler 3
4 Agenda Automotive trends Fuel price & consumption Gas Emission reduction Possible ways to reduce gas emission Engine downsizing + Turbo New technologies Emergence of biofuels New lubricants 4
5 Fuel - Crude Oil Price World Crude Oil Price on April 30th 2010 = 84 $ / Barrel 5
6 Fuel Consumption U.S Petroleum consumption by Sector Transportation is the largest consuming sector of petroleum & the one showing the greatest expansion. In 2008, 13.7 million barrels per day of petroleum products were consumed for transportation purposes, accounting for 70 % of all petroleum used. 6
7 Worldwide CO 2 Gas Emission 7
8 Global Emission Regulations for light vehicles 8
9 European automotive emission standards Source ACEA 2007 NOx and PM emission standard for Diesel Engines Euro 2 P M (m g /k m ) Euro 3 Euro 4 Euro 6 Euro NOx (mg/km) 9
10 European automotive CO2 emission trends 10
11 Gas Emissions Yearly average value 43% exhaust 57% evaporative source: Ton Cackette, CARB, 4. April 2006 It s not only Exhaust Gas!!! According to U.S. Environmental Protection Agency: Evaporative loss is the N o 1 Contributor to Total Hydrocarbon Emissions from Cars on Hot Days 11
12 Evaporative emission regulations in USA Air Intake Manifold Gasket Material mainly used 12
13 Possible ways to reduce emissions Engine downsizing + Turbo New technologies The emergence of biofuels New lubricants 13
14 Engine Downsizing European market Automakers are removing cylinders and lowering the displacement of their engines to meet tougher CO2 emissions rules that take effect in Europe in Fiat to Offer 500 Minicar Fitted With 2-Cylinder 0.9 L 85 Horse Power Turbo Gasoline 14
15 Why turbocharger? Sources just-auto.com Honeywell Technologies TURBOCHARGED engines used compressed air allowing more air at higher temperature in the combustion chamber. Consequences are: boosted performances: getting the best available output from more power from smaller better performing engines lower levels of particles in diesel engine emissions better control of NOx emissions In addition, it can increase fuel economy as heat loss & friction increase drastically with increases in engine size TURBOCHARGING coupled with high pressure fuel injection makes combustion more thorough, more efficient and therefore cleaner 15
16 Auto Turbo Market Trends / Europe N u m b e r o f e n g in e s 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 EU Light Vehicle Engine Production Forecast (CSM auto database - Jan 2010) Total Turbo Engines Total All Engines N u m b e r o f tu r b o e n g in e s 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 European Light Vehicle Turbo Engine Production Forecast (CSM auto database -Jan 2010) Total Turbo Gasoline Total Turbo Diesel -4% -19% Growing Market +11% +15% +18% +10% +10% +5% Year Year Turbo Diesel is a mature market in Europe Turbo Gasoline is a strong growing market TurboCharger (TC) exhaust gases 16
17 Global Auto Turbo Market Trends Number of turbo engines by region 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Regional Light Vehicle Turbo Engine Production Forecast (CSM Automotive Database- Jan 2010) Total All turbo engines in South America Total All turbo engines in North America Total All turbo engines in Japan Total All turbo engines in APEJ Total All turbo engines in Europe Turbo Manufacturers : Garrett, Borg Warner, Holset, Ishikawa, Mitsubishi, Toyota New comers : JV Bosch/Mahle, Daimler Year EU is leading the global auto turbo market Is turbo engine short term forecast outside EU too pessimistic? Turbo technology is a dynamic & attracting market!!! 17
18 Evolution of Technical Requirements for Turbo Hoses in diesel vehicles Source: Valéo, Garrett and Borg Warner Power (kw) Hot side low temperature 130 C NO TURBO medium temperature 165 C 1.5 bar 10 kw high temperature 205 C 1.9 bar 15 kw 250 C 2.5 bar 22 kw 3.5 bar Double TURBO 30 kw bars Charge air cooling power (kw) Turbocharging pressure (bars) Indir. injection dir. injection EURO 4 EURO 5 EURO The trend to higher compressed air pressure is confirmed with current level at 2.5 bars, inducing a temperature of 205 C Twin-Turbo still limited to a very small number of top-class vehicles 18
19 Elastomers choice for Turbo Hose Temperature ( C) High temperatures FKM/VMQ C (230 C) Low temperatures Low temperature turbocharger hose with CM, CR, NBR Medium temperatures ECO 135 C (150 C) AEM C (180 C) HT HT ACM AEM C C ( C) ( C) FVMQ/VMQ C (210 C) Cost of the part Cold side turbo hose Hot side turbo hose 19
20 Possible ways to reduce emissions Engine downsizing + Turbo New technologies The emergence of biofuels New lubricants 20
21 New technologies to limit emissions Source: greencarcongress.com/emissions for particle reduction : High pressure diesel fuel injection Injection Combustion Optimization of the combustion chamber Diesel particle filter 21
22 Sensor Hoses for Diesel Particle Filter Sensor hose between pressure sensor and DPF Temperature and exhaust gas Materials used : FKM, FKM/VMQ, VMQ, AEM Hose made of Vamac 22
23 New technologies to limit emissions (con t) for NOx destruction : Source: greencarcongress.com/emissions NOx catalyst Exhaust gas treatment (with urea addition) AdBlue system is generating new applications for elastomers & thermoplastics 23
24 Why AdBlue System? 24
25 Selective Catalytic Reduction (SCR) 25
26 New technologies to limit emissions (con t) There are emission control technologies currently available to enable compliance of diesel motor vehicles to the next level of requirements for NOx reduction : Source: greencarcongress.com/emissions High pressure direct gasoline injection Increased recirculated gas in EGR (Exhaust gas recirculation) 26
27 Exhaust Gas Recycling Loops High Pressure Loop (HPL) Low Pressure Loop (LPL) HPL Turbo Turbo LPL Engine Engine 20% max. of EGR 50% max. of EGR 70% max. of Exhaust Gas Recirculating High Pressure High Temperature (> 200 C) Mainly metal pipes Low Pressure Low Temperature (< 150 C) Mainly flexible rubber / plastic tubes + rubber seals EGR loops should bring new applications for elastomers & thermoplastics in a near future 27
28 Closed Crankcase Ventilation System Blow-By Gas Origin Blow-By Gas is a leakage flow between the piston and the cyclinder wall originated through the pressure difference between combustion chamber and the crankcase. Blow-By Gas accumulates with oil & fuel particles. In the past, Blow-By Gas was released into the environment. Nowadays, only closed crankcase ventilation systems are allowed. Blow By Gas composition varies and depends on : *engine types, fuel or diesel engine (fuel more critical) *engine performance and management *driving style (speed, r.p.m, number of cold starts) *design of ventilation (dead areas, air volume flow) 28
29 Air management: more acids in the future??? Cold hose between IC and AIM EGR contact with Euro 4 AIM seals EGR contact with Euro 6 Intercooler Inlet manifold Exhaust Turbo charger Fresh air Crankcase ventilation hose for closed PCV system Air filter Blow-by gas contact with Euro 4 Exhaust manifold Hot hose between turbo and intercooler EGR contact with Euro 6 Vacuum tube (molded) or short connector between air filter and turbo charger EGR & Blow-by contact with Euro 6 29
30 Summary New Technologies It is widely believed that these solutions should prove largely sufficient for the majority of OEMs to reach Euro VI phasedin compliance from
31 Hybrids & Electrical vehicles Auto battery cables insulated with Vamac Vamac ethylene acrylic elastomer (AEM) has been chosen by Huber + Suhner AG, Switzerland, a leading supplier of automotive cable systems, as insulation for battery cables supplied to Fiat, Ford, Jaguar, GM/Holden and Renault, and also to insulate screened cables for hybrid prototypes and the fully electric Tesla Roadster. Vamac AEM was specified mainly because of its high temperature and fluids resistance in tough automotive operating environments from -40 C to +150 C, involving hot motor and gearbox oils, battery acid, salt water and cleaning solvents, and for its flexibility and abrasion resistance in confined spaces. In addition, the compatibility of Vamac with fillers or flame retardants, and ease of cross-linking with electrons, were other important selection criteria. The move to hybrid vehicles RADOX battery cables with Vamac have become standard equipment at Fiat, Ford, Jaguar, Renault, and the Holden Division of General Motors. Now, in the transition to hybrid motor technology, Huber + Suhner are working closely with GM in the USA and selected European OEMs to supply screened battery cables for hybrid prototypes, several of which are expected to go into serial production soon. The company has also won an assembly project for Tesla Motors Inc. to provide screened and non-screened battery cables with insulation of Vamac for its groundbreaking Tesla Roadster claimed the first production battery electric vehicle to travel more than 200 miles per charge, and with zero tailpipe emissions. Huber + Suhner will shortly supply cables for the Tesla Model S all electric family sedan as well. 31
32 Possible ways to reduce emissions Engine downsizing + Turbo New technologies The emergence of biofuels New lubricants 32
33 New Environmental legislation Driving down both vehicle exhaust & evaporative emissions Driving the use of oxygen-containing fuels & Biodiesel Ethanol E6 & E85 in favor in California, E10 & E85 in rest of USA E10 in Europe, India and China Oxygenates MTBE has been legislated out in the USA, but still used in Europe ETBE and Methanol as well Biodiesel (B5 to B20) Improves diesel fuel emissions Reduces diesel engine wear (inherent lubricity of FAME s) Environmental regulations are becoming global in scope 33
34 Bio-Fuels Trends by Region North America Biofuels: 16 to 114 Billion litres (2020) 90% Ethanol ex sugar cane 10% Biodiesel ex soya (SME) & sunflower pure biodiesel: ASTM D975 for blends: ASTM D6751 B5 common B10 & B20 available South America Biofuels: 15 to 27 Billion litres (2020) Ethanol ex sugar cane: E10 to E97 pure biodiesel: DOU for blends: DOU B2 to B5 Europe & Eurasia Biodiesel: 4 to 76 Billion litres (2020) Focus on Biodiesel RME + import from Asia pure biodiesel: EN for blends: EN 590 B7 to B10 Asia Pacific Biofuels: 7 to 114 Billion litres (2020) 90% Ethanol ex corn & sweet potatoes (E10) 10% Biodiesel ex jatropha & palm oil In China: B5 & B10 (not yet normalized) Source: Dept of Energy and DuPont/BP estimates 34
35 Example : Biodiesel feed stocks Jatropha Palm & Coconut Canola Sunflower Rapeseed Soybean Kelp Algae 35
36 Environmental Benefits of Biofuels Reduce the CO 2 emission (less greenhouse effect) compared with pure gasoline/diesel Biodiesel is bio-degradable and non-toxic product Biodiesel is a renewable energy source Reduce our dependence on fossil fuels Greenhouse Gas Emissions : Biofuels compared to conventional fuels Gram of CO 2 / MJ % - 70% 20 Source: 0 Gasoline Ethanol ex wheat Ethanol ex sugar beet ETBE ex wheat ETBE ex sugar beet Diesel fuel VOME ex rapeseed VOME ex sunflower Bilan énergétiques et gaz à effet de serre des filières de production des biocarburants Price Waterhouse Coopers / Institut Français du Pétrole 36
37 List of FKM applications in Fuel System Fuel Filter Seal Fuel Injector O-ring Fuel Rail Seal Fuel Tank Valve Seal Fuel Sender Seal Fuel Cap Seal Quick Connect O-ring Filler Neck Hose Fuel Vapour Line Fuel Return Line 37
38 Possible ways to reduce emissions Engine downsizing + Turbo New technologies The emergence of biofuels New lubricants 38
39 Automotive Engine Oils Automotive lubricant composition: - base oils (75% to 85 %) : mineral or semi-synthetic or FULLY SYNTHETIC - package of additives (15% to 25%) : viscosifiers, anti wear, antioxidants, detergents, corrosion inhibitors, dispersing agents, anti-foaming agents, alkalinity, anti freeze agents, extreme pressure agents 39
40 New lubricants Lubricants classified 0W20, 0W30 & 5W30 (fuel economy) & low SAPS* oils to meet EURO V standards (including diesel particle filter technology) Higher market share for automatic transmissions in Europe, Transmission systems with more gears (e.q. VW 7-speed transmission) using new synthetic ATFs (Dexron VI) New engine oil with Euro V *SAPS = last generation lubricants based on Low Sulphated-Ash, Phosphorus and Sulphur technology fully compatible with diesel particle filter 40
41 Engine Composition Static Seals & Gaskets 4 main engine static rubber seals & gaskets: 1. Rubber Gasket 2. Rubber Gasket NBR AEM ACM NBR HNBR FKM Cylinder Head Cover (Rocker Cover, Cam Cover) Cylinder Head Cylinder (Engine Block) Oil Filter 4. Rubber Gasket NBR HNBR AEM ACM FKM 3. Rubber Gasket NBR AEM ACM LSR Oil Pan Additional engine static seals & gaskets : Front cover gasket Oil filler cap seal Oil drain plug Grommets 41
42 Trends in Engine Static Seals & Gaskets Trends: More aggressive fluids in the engine and in the engine oil: - New synthetic oils for fuel efficiency & higher temperature exposure - Higher level of Blow-by and EGR acid condensates - Presence of fuel/biofuel in engine oil Heat resistance > 135 C Low temperature ( -30 C to -40 C) Oil resistance (low viscosity) Sealing performance (Compressive Stress Relaxation) New opportunities in engine seals for High Performance Elastomers (=FKM, AEM, HT-ACM): Cam Cover, Front Cover, Oil Pan, 42
43 Conclusion: Auto Market Dynamics & Trends Trend: Replacement of low to medium performance elastomers by High Performance Elastomers (FKM, AEM, HT-ACM) - V Solutions products are well represented in the 150 C and plus area - Vamac & Viton offers excellent performance for new requirements Heat Res. 70 hrs EPDM Applications with min. temperature requirements of 165 degrees V Solutions Space Sealing & Hose Applications Vamac Viton Silicone Fluorosilicone HiTemp-ACM Polyacrylate (ACM) HNBR Butyl Styrene Butadiene Natural Rubber Neoprene CPE Applications with reduced swell Epichlorohydrin NBR NBR/PVC No Req Oil Resistance % Swell in IRM 903 Oil 43
44 The information set forth herein is furnished free of charge and is based on technical data that DuPont believes to be reliable and falls within the normal range of properties. It is intended for use by persons having technical skill, at their own discretion and risk. This data should not be used to establish specification limits nor used alone as the basis of design. Handling precaution information is given with the understanding that those using it will satisfy themselves that their particular conditions of use present no health or safety hazards. Since conditions of product use and disposal are outside our control, we make no warranties, express or implied, and assume no liability in connection with any use of this information. As with any product, evaluation under enduse conditions prior to specification is essential. Nothing herein is to be taken as a license to operate or a recommendation to infringe on patents. Caution: Do not use in medical applications involving permanent implantation in the human body. For other medical applications, discuss with your DuPont customer service representative and read Medical Caution Statement H The DuPont Oval logo, DuPont, The miracles of science, Crastin, Delrin, DuPont ETPV, Hytrel, Minlon, Rynite, Thermx, Zenite, Zytel, Diak, Viton and Vamac are registered trademarks of E.I. DuPont de Nemours or its affiliates. 44
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