Quality recommendations for bio-fuels

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1 Quality recommendations for bio-fuels JARI Round Table in Manila Manila, Philippine 5 th February, 2010 Kaoru HORIE Fuels and Lubricants Committee Japan Automobile Manufactures Association

2 1.Introduction Outline 2.Bio Ethanol Fuel Specifications 3.Bio Diesel Fuel Specifications 4.Summary

3 1.Introduction Outline 2.Bio Ethanol Fuel Specifications 3.Bio Diesel Fuel Specifications 4.Summary

4 Background Use of bio-components in market fuels are increasing around the world Ethanol (and ETBE) in gasoline Fatty acid methyl esters (FAME) in diesel fuels The standards for these bio-components can be highly variable and not always fit for purpose National/regional standards & specifications Dependent on type and quality of feedstock Dependent on processing route The automotive industry is global Need for increased international harmonization of market fuels, including bio-components Bio-components can be inherently feedstock dependent (ex. vegetable oils), this represents additional challenges to the specification setting

5 Law on Bio- Fuels Bio-fuels Schedule as of 2009 Indonesia Malaysia Philippines Singapore Thailand Vietnam None Voluntary Biofuel Industry Act Yes Mandatory None Yes Mandatory Master plan of Government Effective/Plan / 2010 for all vehicles Jan 2007 None April Bio-ethanol Yes None Yes None Yes Gasohol Understudy Blend Ratio E10 max None E5min,E10max E10 / E20 / E85 E5 (@pump) Base Stock Sugarcane None Sugarcane Sugarcane Cassava Biodiesel Yes Yes Yes Understudy Yes Yes (2010) Blend Ratio B10 max B5 B2 B5 B2 / B5 B5 (@pump) Feedstock Palm (PME) Palm (PME) Coconut (CME) Palm (PME) Palm (PME) Jatropha Bio-ethanol Std E100 E10-Blend Biodiesel Std B100 B-Blend Other Bio Fuel Feedstock Yes None Yes None Yes Yes Yes General use None at the moment DOEB Std (announced) Reg (draft) None None at the DOEB Understudy for moment E5 std only Yes Yes Yes None Yes Yes Yes General use MS 2008: 2008 (EN14214) None at the moment None MS None at the moment Jatropha, None Jatropa, Cassava, Cassava Sweet Sorghum, y y 10 hrs ox. stab. biodiesel up to 2% None DOEB DOEB Jathropa, Cassava, Mollases B100 Understudy Future Plans Understudy To lobby for Studying by 2009, Understudy Revise ox. Understudy stab. from 6 to Industry Agree Agree Agree Agree 10hrs Agree Agree Acceptance of Spec None

6 Published Fuel Quality Position Statement Position Statement, FQ-02, Quality of Bio-diesel (FAME) and Use of FAME-blended Diesel Position Statement, FQ-01, , Fuels & Lubricants Sub-committee Quality of Bio-ethanol and Use of Ethanol-blended Gasoline (Japan Automobile Manufacturers Association) has been, and is consistently in support of the use of bio-fuels complying with appropriate, Fuels & Lubricants Sub-committee sustainability criteria as part of an integrated approach to the reduction of CO2 emissions. FAME (fatty acid methyl ester), one of the bio-fuels, is renewable energy, and accordingly endorses automotive use of FAME-blended diesel from fossil fuel (Japan conservation Automobile and energy Manufacturers security Association) has been, and is points of view. consistently in support of the use of bio-fuels complying with appropriate On the other hand, sustainability believes eves it criteria imperative as part that of FAME-blended an integrated e approach to the reduction of diesel has equivalent quality CO2 to the emissions. conventional Bio-ethanol, diesel fuel one so of as the to achieve bio-fuels, is renewable energy, and satisfactory safety and emission accordingly performance endorses of vehicles. automotive This in use turn of ethanol-blended gasoline from requires clear and harmonized fossil fuel fuel quality conservation standards, and which energy ensure security vehicle points of view. and engine compatibility, and fit-for-purpose On the other hand, specifications believes for it FAME imperative and that ethanol-blended gasoline has FAME-blended diesel. At the equivalent same time, quality appropriate to the conventional handling gasoline rules so as to to achieve satisfactory safety and assure quality control in the emission distribution performance process of and vehicles. quality-monitoring This in turn requires clear and harmonized fuel scheme to eliminate improperly quality prepared standards, FAME-blended which ensure vehicle diesel and from engine the compatibility, and fit-for-purpose specifications for bio-ethanol and ethanol-blended gasoline. At the same time, market are also necessary. appropriate handling rules to assure their quality control in the distribution process and quality- monitoring scheme to eliminate improperly prepared ethanol-blended gasoline from the market are also necessary.

7 s Basic Position on Bio-fuels From view point of energy security & CO 2 reduction, bio-fuels become more important positively corresponds to introduction ti of bio-fuels from view point of technical perspective for our customers actively yparticipate p and support WWFC activity in order to; secure bio-fuels quality, hence improve automotive fuel quality in the market for cleaner air prevent problems for the benefit of end users

8 1.Introduction Outline 2.Bio Ethanol Fuel Specifications 3.Bio Diesel Fuel Specifications 4.Summary

9 Ethanol Content and Compatibility with Vehicles For the use of ethanol-blended gasoline as conventional gasoline for vehicles, recommends blending ratio of maximum 10% because adaptive technologies have been established in the US and Canadian markets. However, so long as in-use vehicles that are incompatible with ethanol-blended gasoline remain in the market, it is necessary to provide all the fueling pumps p with clear labeling of its ethanol content. US Canada EU China India Thai Philippine Brazil -E10 -E20 :Conventional fuel vehicles :Alternative Fuel Vehicles -E25 E85 E100

10 Appropriate Specifications Bio-ethanol before blending must satisfy attached Recommendation on Bio-ethanol (E100) Specifications for up to E10 Blends to secure safety and emission performance of the vehicles. In addition, the properties of ethanol-blended gasoline as final fuel must conform to quality standard of conventional gasoline. In this regard, the WWFC (World-Wide Fuel Charter) Guidelines for E100 Blendstock for use in up to E10 Blends issued in March 2009 also gives a quality specification for bio-ethanol as automotive fuel, and complements the World-wide Fuel Charter.

11 Proposal for E100 (Ethanol) Spec. as AAF Recommendation Proposed E100 (Ethanol) specification for up to E10 blend Items AAF Recommend WWFC Indonesia Malaysia Philippines Singapore Thailand Vietnam DoEB E100 Guideline for SNI DT 27- PNS/DOE TCVN Spec., B.E. Proposal Priority E10 Blend N.A. QS 007:2005 N.A. 7716: (2005) (No Denature) (No Denature) (Denatured) (No Denature) (Denatured) Properties unit (Denatured) Clear & bright, Clear & bright, Clear & bright, Clear & no Clear & bright, Clear & bright, Visibly free of No visible No visible visible - - No visible No visible susp'd/prec'd impurities impurities Appearance impurities impurities impurities contaminants Ethanol vol % min min min Ethanol plus C3-C5 mass % 99.2 min 99.2 min vol% min - C3-C5 saturated alc. mass % 2.0 max 2 max vol% max - Methanol g/l mg/l vol% 0.5 mass% max 0.5 mass% max max max 0.5 max Density kg/m3 Report Report kg/l max (@20 ) - Report Existent Gum mg/100ml max max 5.0 max Water mass % 0.7 max 0.3 max max - vol % max max max Denaturant vol % min, 5 max max Organic impurities mass % 1 max 1 max Electric Conductivity μs/m 500 max 500 max max - Heave Metal Not detected Not detected Evaporative Residue mg/100ml 5 max 5 max Copper mg/kg 0.1 max 0.1 max 0.1 max max max 0.1 max InorganicChroride ppm max - 40 max max mg/l 10 max 10 max max (=32 max) Sulfate mg/kg 4 max 4 max max Acidity mass % max max max max mg/l max max - phe Phospourus mg/l 0.5 max 0.5 max Sulfur mg/kg 10 max 10 max 50 max max

12 Important Properties & Explanations for E100 Spec. Ethanol (and alcohols) purity - Ethanol plus C3-C5 C5 saturated t (anhydrous): min 99.2%, separate limitit for C3-C5 alcohols (production control) - Methanol: strictly limited (corrosive), using methanol as denaturant is not allowed Water Limit value is relaxed from WWFC E100 Guideline - Promotes corrosion and microbial growth Electrical conductivity - Correlates closely with the total amount of ions such as chlorides, sulfides, sodium and other metals - Indicates corrosivity, can provide information about fuel s tendency to form injector deposits Inorganic chloride - Extremely corrosive, corrodes metals in vehicle fuel lines even at low levels of contamination

13 Sulfates Important Properties & Explanations for E100 Spec. (cont d) - Corrosive, promotes deposits on injectors Phosphorous - Catalyst poison, will cause increased exhaust emissions phe - High acidity or alkalinity can cause corrosion Denaturants our proposal is non denatured ethanol - Permitted denaturants: gasoline (EN228, ASTM D4814, JIS K2202), ETBE, MTBE, tert-buthanol and iso-buthanol Good house-keeping practices - Strict water control in all steps of ethanol handling - CONCAWE report No.3/08 provides good handling guidance Labeling - Clear labeling is essential for customer information (E5, E10)

14 1.Introduction Outline 2.Bio Ethanol Fuel Specifications 3.Bio Diesel Fuel Specifications 4.Summary

15 FAME Content and Compatibility with Vehicles For the use of FAME-blended diesel as conventional diesel fuel for vehicles, recommends blending ratio of maximum 5% (B5) cannot recommend the use of FAME-blended diesel of more than 5% FAME content except for the vehicles specially designed or the vehicles operated by fleet users with special vehicle management qualification. Furthermore, the fueling pumps of high FAME content diesel should be provided with clear labeling (indicating specific FAME content) to prevent miss fueling of regular vehicles.

16 Appropriate Specifications FAME before blending must satisfy attached Recommendation on FAME (B100) Specifications for up to B5 Blends to ensure safety and emission performance of the vehicles. In addition, the properties of FAME-blended diesel as final fuel must conform to quality standard of conventional diesel fuel, while proper oxidation stability requirement is introduced in it. In this regard, the WWFC (World-wide Fuel Charter) Guidelines for B100 Blendstock for use in up to B5 Blends issued in March 2009 also gives a quality specification for FAME as automotive fuel, and complements the World-wide Fuel Charter.

17 Proposal for B100 (FAME) Spec. as AAF Recommendation Proposed B100 (FAME) specification for up to B5 blend Items AAF Recommend WWFC ERIA Indonesia Malaysia Philippines Singapore Singapore Thailand Vietnum DOEB B100 TCVN N.A. Spec., B.E. 7717: (2007) Guideline for Benchmark SNI MS PNS/DOE Priority Proposal B5 Blend Standard :2008 QS 002:2007 Properties unit N.A. Ester content mass% 96.5 min 96.5 min 96.5 min 96.5 min 96.5 min 96.5 min - Density g/ml Report Report kg/m Kinematic Viscosity mm2/s Flash Point 100 min 100 min 100 min 100 min 120 min 100 min - Sulfur ppm 10 max 10 max 10 max 100 max 10.0 max 0.05 mass% - Carbon Residue 10% mass% 0.3 max max 0.3 max 0.3 max - - Carbon Residue 100% mass% 0.05 max 0.05 max 0.05 max 0.05 max 0.05 max 0.05 max - Cetane Number 51 min 51 min 51 min 51 min 510min min - Sulfated Ash mass% 0.02 max max 0.02 max 0.02 max 0.02 max 0.02 max - Ash mass% max Water ppm 500 max 500 max 500 max 500 max 500 max 0.05 vol% - Total Contamination ppm 24 max 24 max 24 max - 24 max - - Water and Sediment vol% max max max - Copper Corrosion 1max 1max 1max 3max Class 1 Class 1 - Total Acid Number mgkoh/g 0.50 max 0.5 max 0.5 max 0.8 max 0.5 max 0.5 max - Oxidation Stability hrs 10 min 10 min 10 min - 6 min 6 min - Iodine Number gi2/100g 120 max 130 max Report 115 max 100 max - - Linolenic acid methyl ester mass% 12.0 max 12.0 max 12.0 max max - - Polyunsaturated acid methyl este mass% - 1 max max - - Methanol mass% 0.20 max 0.20 max 0.20 max max 0.2 max - Mono glyceride mass% 0.80 max 0.80 max 0.80 max max 0.8 max - Di glyceride mass% 0.20 max 0.20 max 0.20 max max 0.2 max - Tri glyceride mass% 0.20 max 0.20 max 0.20 max max 0.2 max - Free glycerine mass% 0.02 max 0.02 max 0.02 max 0.02 max 0.02 max 0.02 max - Total glycerine mass% 0.25 max 0.25 max 0.25 max 0.24 max 0.25 max 0.24 max - Metals (Na + K) ppm 5 max 5 max 5 max max 5 max - Metals (Ca + Mg) ppm 5 max 5 max 5 max max 5 max - Phospourus ppm 4 max 4 max 10 max 10 max 10.0 max mass% - T max max min 96.5 min kg/m kg/m min 130 min - 10 max 500 max max max - 51 min 47 min max 0.02 max max max max - Class 1 Class max 0.5 max - 10 min 6 min max 120 max max max max max max max 0.02 max max 0.24 max - 5 max 5 max - 5 max max mass% max

18 Important Properties & Explanations for B100 Spec. Methyl ester (FAME) purity - Low level of methyl ester indicates high levels of unreacted materials or contaminations with non-fame products - Specific limits for linolenic acid methyl ester and poly-unsaturated acid methyl ester (>/= 4 double bonds) Oxidation stability 10hrs min. criteria is strongly recommended - One of the most important properties, oxidation products can disturb functioning of engine/vehicle and even create hardware damage - Risk of formation of gums, sludge and other insoluble compounds Iodine number proposed 120 criteria might exclude soy been ME - Indicates total of double bonds (level of unsaturation) - Can provide information about fuel s tendency to form sludge, affect lubricant quality and/or cause corrosion Glycerides, glycerol (total and free) - Cause filter plugging (especially at cold temperatures) and injector/engine deposits

19 Important Properties & Explanations for B100 Spec. (cont d) Sulfated ash limit value is relaxed from WWFC B100 Guideline - Measure of amount of metals and other inorganic i contaminants t in the fuel - Ash content is linked to fuel injector deposits and PM filter plugging Phosphorous, sulfur - Catalyst poison, will cause increased exhaust emissions Alkali (Na, K) and alkaline (Ca, Mg) metals - KOH, NaOH are process chemical, should not present in final product - Can form deposits in injection systems and poison emission control systems, Ca soaps can cause injectors to stick Good house-keeping practices - CEN technical report CEN/TR15367 gives good handling guidance Labeling - Guidelines for up to B5 blend only, clear labeling is required

20 1.Introduction Outline 2.Bio Ethanol Fuel Specifications 3.Bio Diesel Fuel Specifications 4.Summary

21 Summary Recommendations for bio-fuels were decided based on WWFC Bio-fuel Guidelines. Limit values of some properties are relaxed by taking actual situations and uniqueness of Asian markets into account. The control of water content and acidity for Ethanol, the assurance of purity and oxidation stability for FAME are the most important points. stance for maximum blending ratio of base stocks are 10% for Ethanol and 5% for FAME when they are used as conventional gasoline and diesel fuel for all users. So long as in-use legacy vehicles that are incompatible with ethanol-blended gasoline remain in the market, it is necessary to provide all the fueling pumps with clear labeling of its ethanol content.

22 For Your Information Ethanol (E100) Guidelines * for up to E10 Blend Biodiesel (B100) Guidelines * for up to B5 Blend

23 World-wide Fuel Charter Committee National organizations: Argentina (ADEFA) Korea (KAMA) Brazil (ANFAVEA) Malaysia (MAA) Canada (AIAMC, CVMA) Mexico (AMIA) China (CAAM) Philippines i (CAMPI) Europe (ACEA) South Africa (NAAMSA) India (SIAM) Thailand (TAIA) Indonesia (IAF) USA (Alliance, AIAM, EMA) Japan () Vietnam (VAMA) Supporting: International (OICA)

24 Thank you for your attention!

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