Yutaka IIDA Japan Automobile Manufactures Association Fuels and Lubricants Committee. October 14, Aires, Argentina

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2 nd AITA Mercosur Fuel Seminar The Higher Fuel Quality Requirements brought by the More Stringent Emission Regulation - Part 2; Diesel fuel; consistency between emission regulation and fuel sulfur content - - Part 3; Study on FAME Blended Diesel Fuel - October 14, 2010 @Buenos Aires, Argentina Yutaka IIDA Japan Automobile Manufactures Association Fuels and Lubricants Committee

Emission Regulation and Fuel Quality Standards in Argentina - Gasoline engine vehicle, Gasoline quality 09 10 11 12 13 14 15 Emission Regulation Fuel Quality (Sulfur) Bio-content (Ethanol) Euro3 Euro4 Euro5 Regular (93); 300ppm 150ppm Premium (97); 150ppm 50ppm E10 voluntary E5 mandate (introduction before end 2010) - Diesel N1 & M1, Diesel fuel quality 09 10 11 12 13 14 15 Emission Regulation Fuel Quality (Sulfur) Bio-content (FAME) Euro3 Euro4 Euro5 Grade 2; 1,500/2,000ppm 500/1,500ppm Grade 3; 50ppm B5 (Apr.) B7 (Sept.) B10 mandate (introduction from early 2011)

Part 2 Diesel fuel; consistency between emission regulation and fuel sulfur content

Necessary Fuel Quality (sulfur level) to Enable Euro Emission Regulations Euro2 Euro3 4 5 regulation was implemented at this timing Euro2 3 4 5 regulation was implemented at this timing Source; CONCAWE, Mr. K.Rose

Market Fuel Quality in Argentina - Gasoline, Sulfur content Sulfur (ppm) Sulfur (ppm) 700 600 500 400 300 200 100 0 301 269 248 244 201 207 209 179 183 Euro3 Requirement 169 166 139 145 120 132 145 110 84 77 75 67 78 92 87 828 127 78 04S 05W 06S 06W 07S 07W 08S 08W 09S 09W - Diesel fuel, Sulfur content 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1380 1840 1233 723 1770 944 670 1490 1148 1810 1075 380 394 1370 1340 1347 1070 1620 46 37 7 04S 05W 06S 06W 07S 07W 08S 08W 09S 09W 923 1890 925 1110 Euro3 Requirement 892 205 1680 ( 582 ) excepted from calculation for 163 Euro4 Requirement 65 680 1580 Euro4 Requirement Source; SGS, WWFS Data the Premium Grade. 09W Regular; Maximum; 205 ppm Average; 127 ppm 09W Premium; Maximum; 125 ppm Average; 102 ppm 09W Grade 2; Maximum; 1,580 ppm Average; 1,173 ppm 09W Grade 3; Maximum; 34 ppm Average; 23 ppm

Diesel Fuel Quality by Each Grade Source; SGS, WWFS Data - Grade 2, Sulfur content Sulfur (ppm) Sulfur (ppm) 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1380 828 1840 1038 723 1360 982 690 1490 1523 1230 1810 1075 394 1370 1340 1070 1620 1154 923 1330 1080 1234 1080 1070 1680 1173 950 1580 04S 05W 06S 06W 07S 07W 08S 08W 09S 09W - Grade 3, Sulfur content 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1380 1210 1770 916 670 1130 1120 866 380 1540 1320 1890 1080 1095 1110 39 34 37 38 23 7 05W 06S 06W 08S 08W 09S 09W Grade 2, Suburban Limit 2,000 ppm Grade 2, Urban Limit 1,500 ppm 09W Grade 2; Maximum; 1,580 ppm Average; 1,173 ppm Minimum; 950 ppm 09W Grade 3; Maximum; 34 ppm Average; 23 ppm Minimum; 7 ppm Grade 3, Limit 50 ppm (= Euro4)

Exhaust Emission Standards Euro4 requires quite low NOx, additionally Euro5 requires further reduction in PM NOx 1.2 Euro4 Euro5 0.8 0.4 THC 0.3 PM 0.2 0.1 0 0.04 0.08 0.12 1.0 2.0 CO 3.0 Standard Comparison (LDT&RM>1760kg)

Exhaust Emission System for Euro4 - Examples of technical solution: Increase in cooled EGR amount, Increase in catalyst Pt loading EGR cooler ( reduce EGR gas temp.) Intercooler EGR valve ( increase flow volume ) SCV ( multiple ) Common rail system Intake Turbo charger Newly introduced technologies for Euro4 Emission Oxidation catalyst ( increase Pt loading )

Exhaust Emission System for Euro5 - Examples of technical solution: Increase in cooled EGR amount, Increase in catalyst Pt loading Reduction in Compression ratio, Installation of Particulate filter Improved EGR cooler ( reduce EGR gas temp. more ) Intercooler EGR valve ( increase flow volume more ) SCV (multiple) Common rail system Modified Fuel Injector Low compression ratio Diesel Particulate Filter Intake Newly introduced technologies for Euro5 Brushed up technologies for Euro5 Turbo charger Emission Oxidation catalyst ( increase Pt loading more than Euro4 )

The Higher Fuel Quality Requirement The more stringent emission requirement brings the higher fuel quality requirements More Cooled EGR 1 Sensitive to corrosion in cold conditions ( Lower sulfur) 2 Sensitive to misfiring ( Higher Cetane number) Lower Compression Ratio 1 Sensitive to misfiring ( Higher Cetane number) Higher Pt loaded catalyst 1 SO3 smoke to be produced more easily ( Lower sulfur) Particulate Filter 1 Low ash oil requirement ( Lower sulfur)

Standard of Grade 2 Fuel Properties Much severer fuel remains in the market and these fuel could be used in Euro4, 5 vehicles Properties Urban Rest of Country Cetane Number 45 min. Sulfur max. ppm 1500 2000 Density kg/m 3 800-870 Viscosity(40 ) cst 2.0-4.5 Distillation T90 Price ( Aug. 2010 360 ) Polyaromatics wt% - Water Grade2 $3.6 vol% (US$ 0.9) 0.03 Particulates Grade3 $4.3 mg/l (US$ 1.1) - Lubricity micron - EN590 51 min. 50/10 820-845 2.0-4.5 T95=360 11 0.02 24 460 Oxidation Stability g/m 3-25

Influences of Fuel Quality on Vehicles Technology Item High Sulfur Content Low Cetane Number Increase EGR gas EGR cooler Cylinder bore & Piston seizure Misfire White smoke Oxidation catalyst (increase Pt loading) SO 2 SO 3

Influences of Sulfur on Wear Engine reliability w/ sulfur 2000ppm No technical solution at present - Euro4 System Cylinder Bore Wear Target Estimate Current NG OK 0 1000 2000 Sulfur (ppm) Improved Piston Ring No technical solution to achieve target level

Influences of Sulfur on Emission (PM) - Example data of Euro4 System PM (g/km) 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Euro4 (N1 class III) PM - EC Mode 14 220 500 2100 Sulfur (ppm) PM increased drastically (mostly Sulfate) when fuel with high sulfur content is used. Sulfate SOF SOOT

Influences of Sulfur on Emission (SO 3 ) HC PM CO NOx SO2 PM NOx CO2 SO3 H2O Pt Catalyst.. Video 幼稚園バス 現象 2.avi Since early 1980s, potential concerns on SO 3 have been reported in many papers. (i.e. SAE830987, US EPA Report 81-2 )

The Higher SO 3 Risk by Euro4 System Sulfur Content high low Safety Area 10 100 US EPA Guideline Concern Area Hazardous Area increase Pt loading (Euro4 system) current Pt loading (Euro3 system) ( from SAE 830987 ) 1000 10000 SO 3 concentration (μg/m 3 ) Higher sulfur content is dangerous to be used in more Pt loaded catalyst.

Influences of Sulfur on DPF Ash of engine oil plugs the DPF It causes an engine power down DPF requires low ash oil Front Rear Plugging Low ash oil has low neutralization capability for acid coming from high sulfur fuel Tends to increase Cylinder Bore Wear Ash deposition It is indispensable to use both Low Sulfur Fuel (below S10) and Low Ash Oil 0 NG OK Conventional oil Mileage Low ash oil Targeted Engine Life

Euro4, 5 Fuel Requirements - Summary (as JAMA) The emission system that is extremely sensitive to cetane number or sulfur content has been installed in Euro4, 5 engine to meet its highly strict emission requirements. Euro4 and 5 requirements for sulfur content are 50ppm and 10ppm respectively aiming to meet clean exhaust emissions. Fueling prior to Euro3 fuel into Euro4, 5 engine might cause higher emission than expected, engine malfunction or even harmful exhaust emission may occur. When Euro4,5 emission regulation is introduced, the new fueling circumstance which allows fuel only less than S=50ppm and S=10ppm respectively is necessary.

Euro4, 5 Fuel Requirements - Summary (as JAMA) To prevent from these problems, may we suggest Customer education Fuel price fixing Immediate prohibition on the use of prior to Euro3 fuel in the market Introduction of emission regulation at the right time with taking fuel preparation period into consideration

Part 3 Study on FAME Blended Diesel Fuel

JATOP Bio Diesel Fuel Research - Japan Auto-Oil Program - FAME blended diesel fuel higher than B5 Below 7 theme have been studied 1 Impact of fuel properties 2 Oxidation Stability 3 Exhaust Emission 4 Durability of after-treatment 5 Low temperature driveability 6 Influence on engine oil 7 Durability (Engine, FIE, )

Engine Test Results with B10, B20 1. Engine test pattern on test bench Test condition:see right figure Mode including full, PM regeneration, idling and engine stop DPF regeneration simulates the relationship between mileage and DPF regeneration event in the real field (Mode in 2008 JSAE paper is modified) Endurance test duration 200Hr (Full) Use post injection (Engine oil might be diluted by fuel) Engine Revolution Engine specifications Number of cylinder Displacement (L) Emission regulation Emission items L4 4.0 New long-term (JPN) Turbocharger Inter cooler Common Rail FIE Cooled EGR DOC+DPF Test pattern cycle (Simulate on road condition) Full load Regeneration Idling Time Stop

Engine Test Results with B10, B20 2. Engine oil pressure drop Averagepressureofengine oilunderfulloadcondition (kpa) 500 400 300 (RME10:Oil exchange at 100hr) (RME20:Oil exchange at 120hr) 08RM10-1 08RM10-2 08Base 08RM20-1 08RM20-2 200 09RM10_15W-40 0 50 100 150 200 Duration time under full load conditi Fuel Base(B0) Engine oil Test results 10W-30 No drop in oil pressure (without oil exchange) RME10% RME20% Drop in oil pressure occurred due to dilution (exchange to new oil at 100hr) Drop in oil pressure occurred due to dilution (exchange to new oil at 120hr)Because decline in oil pressure was slowed down, exchange to new oil not sooner than 100hrs RME10% 15W-40 High initial-viscosity did not cause lower oil pressure not applying to fuel economy demerit

Engine Test Results with B10, B20 3. Oil dilution by FAME blended diesel fuel Calculate vaporization ratio of diesel and FAME at full load driving (Point A B) Engine speed (rpm) Diagram: Test pattern A 点 B 点 全負荷 Full Load Vaporization ratio (%) 60 40 20 0 Vaporization ratio of diesel and FAME (RME10 15W-40) 32 4 2 GC (n=4) GC (n=4) IR (n=2) Time (min) Diesel FAME Vaporization ratio = (The volume of dilution at A- at B) / at A 100 Vaporization ratio of diesel through full load operation(point A B)is much higher than FAME. Supposedly because FAME is heavier, it is less vaporizable.

Engine Test Results with B10, B20 4. Filter plugging: Impact of FAME contamination Even for the same kind of FAME, another rot brought different fuel filter plugging tendency by solid contamination, although it meets EN590 (lower than 24mg/kg) ΔPressure (kpa) 差圧 kpa 30 B20 B10 Change rot for RM20 0 0 50 100 150 200 Time 時間 (hours) hr Total contamination (mg/kg) 24 0 EN590 : < 24mg/kg 11.2 5 1.2 1.2 0~200hr 0~117.5hr 117.5~ (Ref) (08RM01) (08RM03) 200hr (09RM01) B10 B20 09Base01 (a) Progress in RM10, RM20 pressure (b) Contamination amount in used B100

Engine Test Results with B10, B20 5. Injector nozzle hole deposit Averagetorqueunderful loadcondition(nm) 350 330 310 290 08RM10-1 08RM10-2 08Base 08RM20-1 08RM20-2 270 0 50 Duration 100 time 150 under full 09RM10_15W-40 200 load condition (Influence on Engine torque ) Oxidized FAME in fuel (Incl. metals) Reduce flow by caulking Decline in engine torque (carboxylic acid ) Fuel Engine oil Test results Base(B0) 10W-30 Small decline in torque RME10% Bigger decline in torque than that in base RME20% Sharp decline in torque Exchange injector at 50hr (fuel detergent added after 100hr) RME10% 15W-40 Small decline in torque(fuel detergent added from 0hr)

Engine Test Results with B10, B20 5. Injector nozzle hole deposit RME10 200hrs Deposit existing area (a) Photo of cross section (b) Deposit growing in the pass Deposit was observed in the injector nozzle passage The decreasing of torque caused by these deposit The torque fluctuation after 100hrs is supposed to be the effect of these deposits growing up and peeling off

Engine Test Results with B10, B20 6. Un-dissolving in FAME after storage Un-dissolving analysis (ppm) 500 400 300 200 100 0 234 467 C12:0 C14:0 C16:0 C18:0 Others Main component of PME is C16:0 fatty acid monoglyceride, while it s not the case for RME, SME. 57 100 PME10% PME20% RME20% SME20% Even in higher temperature than cloud point, undissolving is found after 10 days storage in +5~+8 (Study in 2007) Sterol amount containing in neat FAME (mg/100g) 800 600 400 200 0 33mg/100g 381mg/100g 276mg/100g PME RME SME Containing sterol amount in RME, SME are mostly 10 times or more of PME.

Engine Test Results with B10, B20 - Summary (as JAMA) In case of engine with DPF, FAME blended fuel remarkably accelerates dilution of the engine oil High viscosity lubricant oil effects to keep oil pressure, but inevitable to deteriorate fuel economy. Insoluble compounds vary depending on FAME production process, sorts, concentration and so on. Need to prepare standard of diesel insolubility when FAME blended more than B5. It s necessary to confirm interval of engine oil exchange when blended FAME fuel more than B5 is used.

Impact of Long Term Parking - Oxidation stability at long term parking, Test results Vehicle evaluation (Parking) (1 st mth) (2 nd mth) (3 rd mth) (4 th mth) (5 th mth) (6 th mth) End Aug. 2009 End Jan. 2010 80km/h 8hrs Failure mode not identified Fuel oxidation stability Failure mode not identified Idle fluctuation Fuel Injection pump change Engine speed, common rail pressure at idle fluctuation Acid value TAN mgkoh/g Induction period Peroxide value TAN TAN Parking period, month Peroxide value,mg/kg Common rail pressure, MPa Test duration, sec Engine speed, rpm

Impact of Long Term Parking - Oxidation stability at long term parking, Analytic results of injection pump after idle fluctuation controlling valve Solenoid SCV (Suction Control Valve) After disassembly, hard needle agitation confirmed Needle Bush Armature After photograph, wash, and then re-photograph After Disassembly After Wash Brownish deposit on the needle, bush and armature inspected Idle failure after the cold start possibly caused by SCV operability failure

Impact of Long Term Parking - Summary (as JAMA) Oxidized biofuel may cause troubles on FIE parts. For the moment, there is no technical solutions for such type of deposit made from oxidized biofuel. Biofuel should not be oxidized so much in normal use. Biofuel oxidation stability at the refueling pump should be strictly controlled not to allow too much oxidation on the car. Oxidation stability should be controlled not only for B100 but also for biodiesel blended fuel, such as B5, B7.

- Oxidation stability after storage Effect of Anti-oxidant good Blue; SME with BHT at 0hr White; Add BHT after each storage period Effect of BHT after 7.5 months storage Yellow; PME with BHT at 0hr White; Add BHT after storage No BHT added <SME> Without BHT, the longer storage gives the shorter PetroOXY time, and the improvement is limited by adding BHT after storage. When BHT(>500ppm) is added before storage, oxidation stability is stable more than 7.5 months. <PME> Oxidation stability is stable, but at least 500 ppm is needed to have acceptable initial oxidation stability.

Biodiesel Fuel Impacts on Vehicles - Summary (as JAMA) Biofuel is one of the main alternative fuels. When compared with conventional diesel, biofuel needs to be operated more carefully in respect of oxidation stability, oil dilution or filter/fie clogging. It s not recommended to use FAME higher than 5%, because above concerns increase much more. In case of 7%, additional standards are crucial. It is recommended to use next generation biofuel such as BHD or HVO when biofuel content becomes higher. When and how much anti-oxidants is added is the key. Adequate anti-oxidants, BHT or equivalent, should be added right after production, it means before storage.

Thank you for your kind attention!