(TOYOTA DO BRASIL LTDA)

II International Symposium on Fuels, biofuels and additives World-wide Fuel Charter Biofuel Guidelines June 25, 2009 Ryuichiro KAMIOKA (TOYOTA DO BRASIL LTDA) on behalf of Japan Automobile Manufacturers Association

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

Background Use of bio-components in market fuels are increasing around the world Ethanol (and ETBE) in gasolines 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

Background World-wide Fuel Charter (WWFC) The Automotive industry s guiding document towards improved and harmonized market fuel quality (gasoline and diesel fuel) 4th edition from Sept. 2006, work commencing for next revision Gasoline and diesel fuel quality in four quality levels (Category 1,2,3,4) to match emissions requirements (up to Euro 5/US10 or equivalent) Not specifically dealing with alternative fuels WWFC can be downloaded from www.acea.be www.autoalliance.org

Background World-wide Fuel Charter (WWFC) Bio-components mentioned as part of the WWFC gasoline and diesel fuel specifications: Ethanol in gasoline: max 5% in all Category 1,2,3,4 (max 10% where pre-existing regulation allow) FAME in diesel fuel: max 5% in Category 1,2,3, FAME not allowed in Category 4 at the moment WWFC Committee concluded that more uniform definition of ethanol and FAME quality is needed Decision was take to develop Biofuel Guidelines E100 for blending in gasoline up to 10% (E10) B100 (FAME) for blending in diesel up to 5% (B5) For defining the quality of the final fuel blends: Biofuel Guidelines supplement Category 1,2,3,4 requirements

Target Audience Biofuel producers, Fuel distributors, Legislators, End-users E100 and B100 specifications for E10 and B5 blends Performance based requirements Control of impurities is an essential part of both specifications Feedstock neutral Test methods, including alternative methods when available Good management practices World-wide Fuel Charter still applies to retail gasoline & diesel fuel quality Fuel supplier is responsible for final product quality

JAMA s Position on Biofuels From view point of energy security & CO 2 reduction, biofuels become more important JAMA positively corresponds to introduction of biofuels from view point of technical perspective for our customers JAMA actively participate and support WWFC activity in order to; secure biofuels quality, hence improve automotive fuel quality in the market for cleaner air prevent problems for the benefit of end users

Roadmap of Guideline Making Draft for comments was issued in july, 2008 Posted at the Committee member web-sites Comment Submission: by October 1, 2008 Total 17 commenters from US, Europe & Asia Including comments from ARPEL WWFC Committee meeting: on October 7, 2008 (@Chicago), to review comments Finalization: March, 2009 Posted at the Committee member web-sites w/ Feedback document to the comments

Ethanol (E100) Guidelines * for up to E10 Blend

E100 Specifications & Test Methods Property Value Units Test Methods Ethanol plus C3-C5 saturated alcohols (anhydrous) C3-C5 saturated alcohols (anhydrous) 99.2 min % m/m ISO: EN 15721 ASTM: D5501 Other: JAAS001-6.2 2 max % m/m ISO: EN 15721 Methanol 0.5 max % m/m ISO: EN 15721 ASTM: D5501 Water 0.3 max % m/m ISO: EN 15489 ASTM: D203 JIS: K8101 Density @ 20 C report kg/m 3 ASTM: D 4052 Other: ABNT NBR 5992 Electrical conductivity 500 max µs/m ASTM: D 1125 JIS: K0130 Other: ABNT NBR 10547 Inorganic chloride 10.0 max mg/l EN 15484 or pren 15492 ASTM D7319; D7328 Other: ABNT NBR 10894/10895 Sulfate Sulfate in finished blend ( E10 v/v) 4 max 1 max mg/kg EN 15492 ASTM: D7318, D7319, D7328 Other: ABNT NBR 10894/12120 Copper 0.100 max mg/kg EN 15488 ASTM D1688 modified, Method A JIS: K 0101 Other: ABNT NBR 10893 Organic impurities 10 max (1) max mg/l (% m/m) JIS: JAAS001 6.4

E100 Specifications & Test Methods (cont d) Property Value Units Test Methods Phosphorus 0.50 max mg/l EN 15487 ASTM D3231 Sulfur 10 max mg/kg EN 15486 ASTM: D5453 (< 20 ppm) JIS K2541 Heavy metals Non-volatile material phe Non-detectable; No intentional addition Other: ICP-AES 5 max mg/100 ml pren 15691 ASTM D381 JIS JAAS001-6.3 Other: ABNT NBR 8644 6.5-9 ASTM: D 6423 phe-like 6-8 EN 15490 JIS JASO M361-6.10 Other: ABNT NBR 10891 Acidity (as acetic acid) Appearance 0.007 max % m/m EN 15491 ASTM D1613 Other: ISO 1388/2; ABNT NBR 9866:2006 clear and bright, no visible impurities visual inspection Color local requirement visual inspection

Comparison of WWFC & ANP E100 Specifications Propety WWFC (1) ANP (2) Method WWFC ANP Ethanol plus C3-C5 99.2 min 99.6 - ASTM 5501 ASTM 5501 C3-C5 sataurated alcohols 2 max XXX - EN 15721 XXX Methanol 0.5 max XXX - EN 15721 XXX Water 0.3 max XXX - EN 15489 XXX Density Report - 791.5 max NBR 5992 NBR 5992 Conductivity 500 max 500 - NBR 10547 NBR 10547 Inorganic chloride 10 max XXX - ASTM D1125 XXX Sulfate 4 max XXX - NBR 10894 XXX Copper 0.100 max 0.07 max NBR 10983 NBR 10983 Organic impurities 10 max 3 max JIS JAAS001-6.4 NBR 13993 Phosphorus 0.5 max XXX - ASTM D3231 XXX Sulfur 10 max XXX - ASTM D5453 XXX Heavy Metals N/D - XXX - ICP-AES XXX Non-volatile material 5 max 5 mx NBR 8644 NBR 8644 phe 6,5-9 - XXX - ASTM D6423 XXX phe-like 6-8 - 6-8 - NBR 10891 NBR 10891 Acidity 55 max 30 max NBR 9866 NBR 9866 Apperence Clear and Clear and - bright bright (1) E100 for blending up to E10 (2) E100 for blending to E25 - Visual Visual Need for consideration : Water, Inorganic chloride

Some Technical Issues & Parameters E100 Guidelines Ethanol (and alcohols) purity Ethanol plus C3-C5 saturated (anhydrous): min 99.2%, separate limit for C3-C5 alcohols (production control) Methanol: strictly limited (corrosive), using methanol as denaturant is not allowed Water Promotes corrosion and microbial growth Electrical conductivity Correlates closely with the total amount of ions such as chlorides, sulfides, sodium and other metals Corrosivity, injector deposits Inorganic chloride Extremely corrosive, corrodes metals in vehicle fuel lines even at low levels of contamination

Some Technical Issues & Parameters E100 Guidelines (cont d) Sulfates Corrosive, promotes deposits on injectors Phosphorous Catalyst poison, will cause increased exhaust emissions phe High acidity or alkalinity can cause corrosion Denaturants 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)

Biodiesel (B100) Guidelines * for up to B5 Blend

B100 Specs & Test Methods Property Value Units Test Methods Ester content 96.5 min % m/m Linolenic Acid Methyl Ester Polyunsaturated acid methyl ester ( 4 double bonds) Oxidation Stability EN 14103 mod Other: ABNT NBR 15342 12.0 max % m/m EN 14103 mod 1 max % m/m pren 15799 Induction Period 10 min hr pren 15751 or EN4112 as alternative Iodine Number 130 max* EN 14111 Total Acid Number 0.5 max mg KOH/g ISO 6618 ASTM D664, D974 JIS K 2501 Other: ABNT NBR 14448 Methanol 0.20 max % m/m EN 14110 JIS K 2536 Other: ABNT NBR 15343 Glycerides EN 14105 Mono-glyceride 0.80 max % m/m Di-glyceride 0.20 max % m/m - - Tri-glyceride 0.20 max % m/m - - EN 14105 ASTM D6584 Other: ABNT NBR 15342 (*) This limit may unnecessary preclude certain feed stocks. Some engine technologies may need more stringent limit. Glycerin (glycerol) Free glycerin 0.02 max % m/m Total glycerin 0.24 max % m/m EN 14105/14106 ASTM: D6584 Other: ABNT NBR 15341 EN 14105 ASTM: D6584 Other: ABNT NBR 15344

B100 Specs & Test Methods (cont d) Property Value Units Test Methods Density report g/ml @15 C EN ISO 3675 ASTM D4052 JIS K 2249 Other: EN ISO 12185, ABNT NBR 7148/14065 Kinematic Viscosity 2.0-5.0 mm 2 /s @40 C EN ISO 3104 ASTM D445 JIS K2283 Other: ABNT NBR 10441 Flash Point 100 min C ISO 3679 ASTM D93 Cetane Number 51 min ISO 5165 ASTM D613 JIS: K2280 Water 500 max mg/kg EN 12937 Water and Sediment 0.05 max % v/v ASTM D2709 Total Contamination 24 max mg/kg EN 12662 ASTM D2276, D5452, D6217 Ash Content 0.001 max % m/m ISO EN 6245 ASTM D482 JIS K2272 Sulfated Ash 0.005 max % m/m ISO 3987 ASTM D874 Other: ABNT NBR 984 Carbon Residue: Ramsbottom, on 100% distillation residue Corrosion: Ferrous 0.05 max % m/m ASTM D4530 light rusting, max Rating Sulfur 10 max mg/kg Phosphorus 4 max mg/kg ASTM: D665, Procedure A ISO: EN 20846/20884 ASTM: D5453/D2622 JIS K3541-1, -2, -6 or -7 EN 14107 ASTM D4951, D3231 Alkali metals (Na+K) 5 max mg/kg EN 14108/14109, EN 14538 Alkaline metals (Ca+Mg) 5 max mg/kg EN 14538 Trace Metals no addition ASTM D7111

Comparison of WWFC & ANP B100 Specification Propety WWFC ANP Method WWFC ANP Ester content 96.5 min 96.5 min EN 14103 EN 14103 Linolenic Acid Methyl Ester 12 max XXX EN 14103 XXX Polyunsaturated acid Methyl Ester 1 max XXX pren 15779 XXX Oxidation stability 10 min 6 min EN 14112 EN 14112 Iodine number 130 max Report - EN 14111 EN 14111 TAN 0.5 max 0.5 max NBR 14448 NBR 14448 Methanol 0.2 max 0.2 max NBR 15343 NBR 15343 Mono-Glyceride 0.8 max Report - NBR 15342 NBR 15342 Di-Glyceride 0.2 max Report - NBR 15342 NBR 15342 Tri-glycerid 0.2 max Report - NBR 15342 NBR 15342 Free glycerin 0.02 max 0.02 max NBR 15341 NBR 15341 Total grycerin 0.25 max 0.25 max NBR 15344 NBR 15344 Density Report - 850-900 - NBR 7148 NBR 7148 Kinematic Visosity @40 C 2,0-5,0-3,0-5,0 - ASTM D445 ASTM D445 Flash Point 100 min 100 min ASTM D93 ASTM D93 Cetane number 51 min Report ASTM D613 ASTM D613 Water 500 max 500 max EN 12937 EN 12937 Water and Sediment 0.05 max XXX ASTM D2709 XXX Total Contamination 24 max 24 max EN 12662 EN 12662 Ash content 0.001 max XXX ASTM D482 XXX Sulfated Ash 0.005 max 0.02 max ASTM D874 ASTM D874 Ramsbotton Carbon Reside 0.05 max 0.05 max ASTM D4530 ASTM D4530 Corrosion: Ferreous light rusting max XXX ASTM D665 XXX Corrosion: Copper XXX 1 max XXX ASTM D130 Sulfur 10 max 50 max ASTM D5453 ASTM D5453 Phosphrous 4 max 10 max ASTM D4951 ASTM D4951 Alkali metals (Na+K) 5 max 5 max EN 14108 EN 14108 Alkaline metals (Ca+Mg) 5 max 5 max EN 14538 EN 14538 Trace Metals no addition - XXX - ASTM D7111 XXX Need for consideration : Oxidation stability

Some Technical Issues & Parameters B100 Guidelines 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 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 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

Some Technical Issues & Parameters B100 Guidelines (cont d) Ash Measure of amount of metals and other inorganic contaminants in the fuel Ash content is linked to fuel injector deposits and PM filter plugging (non generable) 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

Contributions from Biofuel Guidelines to International Standardisation Guide the further process of internationally compatible biofuel standards, so called Tripartite activity (EU, USA, Brazil) White paper issued on December 31, 2007 Activities are starting again through International biofuels standardisation conference in Brussels, March 2009 Focus for the next step: harmonization of test methods Guide the work on ISO/TC28/SC7 Liquid Biofuels First meeting was held in Brazil, January 2009 Scope: very much same as for the Tripartite cooperation Guideline to the any national standardization work in the field of biofuel specifications Demonstrates need for compatibility between fuel standards (including bio-components) and engine technology

Request from JAMA Auto industries strongly recommend WWFC for national standardization. Especially properties of bio diesel (FAME) are quite different from fossil derived diesel fuel adequate spec. & quality control at pump is essential; Most important; Oxidation stability (min 10hr) Also need to pay attention to sludge formation Metals should be eliminated to minimize impact on advanced E/G and emission control system Our goal is global fuel spec. harmonization Top priority should be given to end users In-use vehicles must be considered Discussion should be based on technical data