DIESEL AND GASOLINE PERFORMANCE ADDITIVE DEVELOPMENTS. New Developments in Fuel Management Industry Briefing 6 th March 2018

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1 DIESEL AND GASOLINE PERFORMANCE ADDITIVE DEVELOPMENTS New Developments in Fuel Management Industry Briefing 6 th March 2018

2 DIESEL DEVELOPMENTS

3 EURO EMISSIONS STANDARDS DIESEL LIGHT DUTY Date CO HC + NOx NOx PM PN g/km #km Euro Euro 2, IDI * Euro 2, DI** Euro Euro Euro 5a Euro 5b X Euro X *IDI = Indirect Injection **DI = Direct Injection

4 NEW EMISSIONS STANDARD Complicated by recent developments Emissions in real driving conditions of high interest Real Driving Emissions procedure approved by European Commission Pollutant emissions measured by portable emissions measuring system (PEMS) attached to the car while driving on the road

5 NEW EMISSIONS STANDARD Came into force in 2016 and at that time RDE testing only done for monitoring purposes, with approvals continued to be delivered on the basis of laboratory measurements In September 2017, new RDE tests became compulsory to determine whether new model is allowed to be put on the market

6 CO2 EMISSIONS The Commission has also introduced a new, more realistic, test procedure for measuring CO 2 emissions and fuel consumption of cars and vans, by introducing the new World Harmonised Light Vehicle Test Procedure (WLTP). The WLTP is a globally harmonised test procedure developed within the United Nations Economic Commission for Europe (UNECE) with the support of the EU Commission. The current old laboratory test procedure, still called the New European Drive Cycle (NEDC), no longer reflects today's driving conditions or vehicle technologies. It has also become evident that flexibilities in the NEDC type approval procedure are exploited to artificially reduce the CO 2 emissions during the test even more. These are the two most important causes for the increasing divergence seen today between real world and laboratory emission values.

7 CO2 EMISSIONS The new WLTP test is mandatory for all new vehicle types from September 2017 and for all new vehicles from September 2018.

8 PERFORMANCE TESTING & TYPICAL REQUIREMENTS - DIESEL ADDITIVES Test Fuel injector cleanliness Fuel injector cleanliness Power Loss Power Recovery Corrosion protection Antifoam performance Fuel stability Test procedures Peugeot XUD9 CEC F Peugeot XUD9 Peugeot DW10B CEC F Requirements <20-85% 0.1mm >30% Clean-up <2% power loss in DF79 with 1ppm zinc Peugeot DW10B Restore power to >99% ASTM D665A ASTM D665B BNPé NF M ASTM D2274 EN A (0% corrosion) B+ (< 5% corrosion) Foam Height, <100ml Collapse Time, <10s Reduce basefuel total insoluble Improve basefuel induction period Filterability Lubricant Interaction Water reaction IP387 Various ASTM D1094 ASTM D7541 No worse than baseful No worse than basefuel No interaction with lubricants No worse than basefuel

9 DIESEL ENGINE TESTING STATUS Engine Test Technology Reference Fuels Status Peugeot XUD9 Light Duty IDI 10ppm Sulphur EN590 Diesel Still used and remains only light duty industry standard engine test for nozzle coking by unadulterated diesel. Parts becoming scarce, likely 5 year lifespan Peugeot DW10B Light Duty HSDI Common Rail Engine, Euro 5 Prototype Injectors (Continental) 10ppm Sulphur EN590 Diesel + 1ppm zinc as Zinc Neodecanoate Widely used and accepted in industry for power loss caused by injector fouling. Note reduced engine severity since test introduction. Engine lifespan and injector availability a long term concern Peugeot DW10C Light Duty HSDI Common Rail Engine, Euro 5 Production Injectors (Delphi) (1) 10ppm Sulphur EN590 Diesel + 0.5ppm Sodium + 10ppm DDSA (2) 10ppm Sulphur EN590 Diesel + 10ppm Low MW PIBSI Published as CEC test method for internal diesel injector deposits. PIBSI contaminant testing; unsuccessful round robin. Currently only sodium based test

10 DEPOSIT LOCATION Internal Injector Deposits Conventional deposit location

11 INTERNAL DIESEL INJECTOR DEPOSITS CEC F New test development completed using Peugeot DW10C engine to provide field protection 1997cc 4 cylinders in line Common Rail 4 valves per cylinder 2000rpm Euro 5 injectors

12 DW10C DEMERIT SYSTEM Test has a complex rating system Based on Demerits Combination of 6 different parameters 2 parameters during cold starts 4 parameters during running phase (Operability) Maximum of 75 merits available to lose Final result then divided by 7.5

13 DIESEL DEPOSIT CONTROL ADDITIVES-INTERNAL DIESEL INJECTOR DEPOSITS Base Fuel Contaminant Additive Merit Rating (M/10) Reference Fuel 0.5 ppm Na * + 10ppm None 4.0 DDSA ** Reference Fuel 0.5 ppm Na * + 10ppm Yes 10.0 DDSA ** (*) = Na as Sodium Naphthenate (**) = Dodecenyl Succinic Acid

14 DW10C TESTING - 0.5PPM NA + 10MG/KG DDSA Engine ran for 18hrs, but would not re-start after soak period.

15 DW10C TESTING - 0.5PPM NA + 10MG/KG DDSA + ADDITIVE Exhaust Temps stayed the same from start of test to end of test

16 INJECTOR SPRAY PENETRATION With Additive No Additive

17 mg/ms écart-type mg/ms mg/ms écart-type mg/ms INJECTOR PERFORMANCE With Additive No Additive ms ms

18 SUMMARY Evolution of increasingly stringent emissions requirements have resulted in a significant change in fuel quality and engine technology Suitable test protocols which are relevant to the market place are often used to evaluate deposit forming tendency of fuels and additives The area of diesel deposit formation remains in active area of research and recent changes in engine and vehicle technology have resulted in the reporting of new deposit phenomena. Fuel additive technology is continually evolving to ensure optimum performance is provided across the whole vehicle fleet

19 GASOLINE DEVELOPMENTS

20 EURO EMISSIONS STANDARDS GASOLINE Date CO HC HC + NOx g/km NOx PM PN Euro Euro Euro Euro Euro * #/km Euro * 6.0x10 11** *applies only to direct injection gasoline engines **6.0x10 12 within first three years from Euro 6 effective dates

21 POST 2020 CO2 TARGETS FOR VEHICLES November /2021 Proposal of 95 g CO2/km for passenger cars and 147 g CO2/km for light commercial vehicles based on NEDC cycle Starting from 2021 emissions targets based on WLTP As WLTP procedures are to be phased in, newly proposed targets not absolute values but expressed as percentage reductions from 2021 For 2025 targets for cars and vans are 15% lower than 2021 For 2030 targets for cars and vans are 30% lower than in 2021 Technology neutral incentive mechanism covering; Zero emissions vehicles electric battery or fuel cell vehicles Low emissions vehicles having tailpipe emissions of <50 g CO2/km (mainly plugin hybrid vehicles)

22 PASSENGER CAR MARKET SHARE 2017 Diesel market share in EU-15 fell in H ,323 less diesel cars sold compared to H ,615 more gasoline cars sold in same period Automakers caution shift to gasoline engines with higher CO2 will pose additional challenges to meet future CO2 targets

23 PASSENGER CAR CO2 EMISSIONS BY ENGINE TECHNOLOGY Diesel historically has a CO2 advantage Apparent up to Euro 5 (2009) Gasoline and Diesel CO2 emissions now converging

24 MERCEDES-BENZ M 102 E PFI ENGINE

25 GDI ENGINES Benefits of GDI engines are increased fuel efficiencies by reducing pumping losses compared to carburettor and PFI engines. Higher power output by reducing mechanical and pumping losses More accurately controlled regulated emissions by on board management of fuelling regimes and higher fuel pressures leading to smaller droplet size.

26 PASSENGER CAR MARKET GASOLINE ENGINE TECHNOLOGY Sharp increase in last decade of passenger cars using GDI to meet low CO2 emissions targets For the premium brands, GDI engines account for majority of all gasoline vehicle sales in that timeframe

27 GDI - INJECTORS For any gasoline fuelled vehicle that has a catalytic converter fitted, either PFI or GDI or Hybrid, it is essential for the air / fuel ratio of the combustion event to be at 14:1 or commonly known as Lambda (λ)1. The Lambda sensor (or sometimes called the Oxygen sensor) continually monitors the amount of Oxygen in the exhaust. The vehicle computer is at the same time receiving information from a MAF sensor (Mass Air Flow) measuring the mass of air being consumed by the engine, and how much fuel is being injected by the injector pulse width (how long the injector is open). From these data the computer calculates if the engine is running too rich (too much fuel) or too lean (too little fuel) and immediately adjusts the injector pulse width (IPW) accordingly

28 GDI INJECTORS FUEL TRIM This immediate adjustment is known as Short Term Fuel Trim (STFT) and usually occurs many times per second as a consequence of drive cycle, slight changes in altitude and other small variations in engine / fuelling conditions, and is quite normal. When the engine is turned off the vehicle computer does not record the history of the STFT. The constant variation of the STFT is however transferred to the vehicle computer and known as Long Term Fuel Trim (LTFT)

29 GDI INJECTORS FUEL TRIM

30 CEC FUELS TESTS GASOLINE ENGINE TESTING STATUS Engine Test Technology Reference Fuels Status Mercedes Benz M102E 8V PFI 4-Cylinder 2.0L Engine Mercedes Benz M111E 16V PFI 4-Cylinder 2.0L Engine DF12 10ppm Sulphur Gasoline DF12 10ppm Sulphur Gasoline Adopted in 1993 and still used widely for intake valve deposit (IVD) evaluation. Parts becoming scarce, likely 5 year lifespan Adopted in 1998 as update to M102E with more sophisticated technology. Felt to be milder than M102E engine and not used as widely for IVD evaluation Volkswagen VW EA L TSI Engine (Direct Injection Gasoline) EN228 High Fouling and Low Fouling Reference Fuels (Keep Clean and Clean-Up Test) Test Development Group formed in Publication expected end of Has potential to replace two current IVD tests

31 VW PROPOSAL March 12, Innospec, Inc. All Rights Reserved 31

32 VW PROPOSAL March 12, Innospec, Inc. All Rights Reserved 32

33 VW PROPOSAL March 12, Innospec, Inc. All Rights Reserved 33

34 CLEAN-UP TESTING GASOLINE GDI ADDITIVE Testing carried using Skoda engine equivalent to VW EA111 engine Tests on varying treat levels of new gasoline additive technology Different rates of clean-up performance achievable

35 CLEAN-UP TESTING GASOLINE GDI ADDITIVE Gasoline Additive at clean-up treat rate

36 KEEP CLEAN TESTING GASOLINE GDI ADDITIVE Basefuel change of injection time % over 48 hours

37 KEEP CLEAN TESTING GASOLINE GDI ADDITIVE Gasoline Additive 0.5 x keep clean treat rate change of injection time 0.805%

38 SUMMARY Changes in emissions legislation increasing interest in gasoline vehicle technology and application New industry standard tests in development, to reflect changing engine technology focussed on deposit control in direct injection gasoline engines New CEC test method in development based on VW engine Current timeline for completion end of 2018

39 SUMMARY New Innospec additive technology offers exceptional deposit control in GDI engines Excellent keep clean and clean-up performance in proposed industry standard engine demonstrated Marketing and differentiation around GDI performance currently limited As test development is completed, expected that fuel retailers will refresh marketing claims based on new engine technology and impending industry standard test

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