Update on Fuel Quality Standards

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Update on Fuel Quality Standards EVA G. ARAGONES Department of Energy Philippines 7 th Asian Petroleum Technology Symposium, Japan Petroleum Energy Center Advancement of Fuel Quality and Refining Technology for the Next Generation February 18-20, 2009, Vietnam

OUTLINE Mandate for Cleaner Fuel Roadmap for Fuel Quality Improvement Standards (PNS) Enforcements Government Thrust/Plans Research and Policy Development Linkages

Factors Contributing to Pollution FUEL QUALITY EMISSION ENGINE DESIGN VEHICLE USE TRAFFIC MANAGEMENT ENGINE MAINTENANCE

Fuel and Vehicle Emissions FUEL VEHICLE EMISSION DOE DOTC / LTO / MMDA / DTI / DOST DENR

Cleaner Air Fuel Quality Mandate RA 8749 - Clean Air Act of 1999 set the specifications for all types of fuel and fuel-related products (Sec.26) set every two (2) years or thereafter or as the need arises, the specification of ULG and diesels shall be reviewed and revised (Sec. 26) RA 9367 - Biofuels Act of 2006 establish technical fuel quality standards for biofuels and biofuel-blended gasoline and diesel which comply with the PNS (Sec. 7c) RA 8479 - Downstream Oil Industry Deregulation Act ensure a truly competitive market for petroleum products under a regime of fair price, adequate and continuous supply of environmentally, clean and high quality petroleum products

OUTLINE Mandate for Cleaner Fuel Roadmap for Fuel Quality Improvement Standards (PNS) Enforcements Government Thrust/Plans Research and Policy Development Linkages

Pre-Clean Air Act Pre-Clean Air Act Fuel Quality Standard A. Gasoline Pre Clean Air Act RP Unleaded Program Hydrocarbons: PROPERTY 1990 1993 1994 1998 Alcohols (C 2 to C 4 ), % vol., max. 10 10 Aromatics, % vol., max. 55 45 Benzene, % vol., max. 5 4 Ethers (e.g. MTBE), % vol., max. 10 10 Lead Content, g/l, max. 0.84 0.15 0.15/0.013 0.15/0.013 Octane rating, min. Research Octane Number (RON) 81/93 81/93 81/93 81/93 Motor Octane Number (MON) Report Anti-Knock Index (AKI) 87.5 Vapor Pressure, @ 37.80C, kpa, max. 85 85 85 85/80 Sulfur, % mass, max. 0.20 0.10 0.10 Phase out lead in gasoline 9 mos. ahead of sked - MM PNS 1990 Reduction of lead in gasoline started as early as 1990 Clean Air Pact of 1993 Commitments of leaders of the petroleum industry and government agencies to pursue a comprehensive program of reducing the lead content of gasoline with end view of eventually totally eradicating the use of lead and introducing ULG and substantially reducing other pollutants in the gasoline and diesel fuel production. PNS 1119:1993 urgent implementation of reduced lead gasoline from 0.6 gm/l to 0.15 gm/l in view of the MOA known as the Clean Air Pact of 1993 PNS 1131:1994 introduction of ULG environmental objective of eliminating pollutants to safeguard the health of the people. February 14, 1994 Launching of ULG nationwide Sept 26, 1997 Issuance of EO No. 446 mandating the phase-out of leaded gasoline not later than Jan. 2000 in metro manila and Jan. 1, 2001 PNS 1131:1998 Reduction of Aromatics, Benzene and Vapor Pressure June 23, 1999 - Signed into law the Republic Act No. 8749 known as Clean Air Act of 1999 Dec. 23, 2000 implemented the lead phase out

Unleaded Gasoline Aromatics 45% max Jan. 1, 2000 Benzene 4% max Jan. 1, 2000 AKI 87.5 min Jan. 1, 2001 RVP 9 psi max Jan. 1, 2001 Aromatics 35% max Jan. 1, 2003 Benzene 2% max Jan. 1, 2003 Automotive Diesel Clean Air Act Fuel Quality Specifications Sulfur 0.2% max Jan. 1, 2001 Cetane No./Index 48 min Jan. 1, 2001 Sulfur 0.05% max Jan. 1, 2004 Industrial Diesel Sulfur 0.3% max Jan. 1, 2001

Clean Air Act Fuel Quality Standards Setting Pre-Clean Air Act BPS TC-12 (Technical Committee on Petroleum Products & Lubricants) DOE-TCPPA Technical Committee on Petroleum Products & Additives) Clean Air Act Chairs : DOE and DENR Members Government : DOE, DENR, BPS-DTI, ITDI-DOST Fuel Sector : Petron, Shell, Chevron, IPPCA Engine Suppliers/Manufacturers :CAMPI, AMMDA, MDPPA Consumer Sector / NGO : FilCar Foundation, AWMA Academe : UP-NCTS, AIPSI The TCPPA follows standards development/review procedure of the Phil. Bureau of Product Standards which promulgates the Phil. National Standards (PNS)

COMPLETED Gasoline Diesel Clean Air Act Clean Air Act Fuel Quality Standard PNS 1131:2000 - ULG complying to CAA for 2000 specs PNS 1131:2001 - Multigrade ULG complying 2001 specs PNS 1131:2002 - ULG complying to CAA 2003 PNS/DOE QS 001:2005 - ULG Motor Gasoline update of 2002 PNS 20:2000 - Diesel complying to CAA for 2001 specs PNS/DOE QS 004:2003 - Diesel complying to CAA for 2004 specs On-Going DPNS/DOE QS 001:2009 - ULG Motor Gasoline update of 2005

Clean Air Act Clean Air Act Fuel Quality Standard Gasoline CLEAN AIR ACT POST CLEAN AIR ACT PROPERTY 2000 2001 a 2003 2005 2009 c Hydrocarbons: Alcohols (C 2 to C 4 ), % vol., max. 10 10 10 10 b 1 b Aromatics, % vol., max. 45 45 35 35 35 Benzene, % vol., max. 4 4 2 2 2 Ethers (e.g. MTBE), % vol., max. 10 10 10 2 2 Lead Content, g/l, max. 0.013 0.013 0.013 0.005 0.005 Octane rating, min. Research Octane Number (RON) 81/93 81/87/93/ 95 81/87/93/ 95 81/93/95 81/93/95 Anti-Knock Index (AKI) 87.5 87.5 87.5 87.5 87.5 Vapor Pressure, @ 37.80C, kpa (psi), max. 85/62 85/62 85/62 85/62 85/62 Sulfur, % mass, max. 0.10 0.10 0.10 0.05 0.05 a multi-grade gasoline b ethanol c DPNS

Fuel Quality Standard Other products PNS/DOE QS 003:2003 Two-stroke (2T) Lubricating Oil (considering vegetable basestocks) PNS/DOE QS 005:2005 LPG/ Auto LPG PNS/DOE QS 006:2005 Fuel Oil (Bunkers) PNS/DOE QS 009:2007 - Kerosene

Petroleum Products Facility Standard Setting BPS TC 68 Technical Committee on Petroleum Processes and Facilities (TCPPF) DOE-TCPPF by virtue of MOA between DOE-OIMB and DTI-BPS Chairs : DOE Members Government : DOE-OIMB, DENR-EMB, DTI-BPS, DILG-BFP, DOLE (BWC, OSHC) Testing : DOST-MIRDC Industry : Petron, Caltex, Shell, Total, IPPCA (Seaoil, TWA) Prof. Association : SOPI **TWG s assist mother TC in the drafts formulation/deliberation

Petroleum Product Facility Standard COMPLETED PNS: Retail Outlets PNS/DOE FS 1-1:2005 Health, Safety and Environment PNS/DOE FS 1-2:2005 Underground Storage Tank PNS/DOE FS 1-3:2005 Piping System PNS/DOE FS 1-2:2005 Dispensing Pumps PNS/DOE FS 2:2006 LPG Refilling Plant PNS/DOE FS 3:2006 Auto-LPG Dispensing Stations PNS/DOE FS 4:2007 LPP Depot ON-GOING : DPNS/DOE FS :2006 Portable Liquid Petroleum Product Containers DPNS/DOE FS :2007 Storing and Handling of CME and CME-Diesel Blends at LPP Depots

Biofuels Act biodiesel bioethanol Coconut Sugarcane 2007 mandate - 1% biodiesel blend 2009 mandate - 2% biodiesel blend 2007 voluntary sales of E-10 2009 mandate ethanol blend (per PNS) to comprise 5% of the annual gasoline sales starting February 2009. 2011 mandate 10% ethanol blend on all gasoline

BIODIESEL (B100) Biofuels Act Biofuels Act Fuel Quality Standard (PNS) PNS 2020:2003 Coconut Methyl ESTER (B100) PNS/DOE QS 002:2007 - Fatty Acid Methyl Ester (B100) 96.5% FAME 0.40% mass, min., Methyl Laurate (C12 ME) JAMA / EN 14214 specs (oxidation stability, glycerides, group metals density, methanol, water) BIODIESEL BLEND PNS/DOE QS 004:2007 - FAME-blended diesel oils (B1) 0.7-1.2 % FAME 0.40% mass, min., Methyl Laurate (C12 ME) PNS/DOE QS 004:2009 - FAME-blended diesel oils (B2) 1.7-2.2 % FAME 0.80% mass, min., Methyl Laurate (C12 ME)

A. B100 (CME) Biofuels Act Fuel Quality Standards PROPERTY 2003 2007 Appearance clear Acid number, mg KOH/g, max. 0.50 0.50 Carbon residue on 100% sample, % mass, max. 0.050 0.050 Cetane number, min. 42 55 Cloud point, O C, max. Report 5 Copper strip corrosion 3 hrs @ 50 O C, max. No. 3 No. 1 Density @ 15 O C, kg/l 0.86-0.90 Distillation AET 90% recovered, O C, max 360 360 FAME content, % m/m, min. 96.5 Flash point, Pensky-martens O C min. 100.0 100 Glycerin, % mass, max. Free glycerin, % mass, max. 0.02 0.02 Total glycerin, % mass, max. 0.24 0.24 Glyceride content, % m/m, max. Monoglyceride content 0.80 Diglyceride content 0.20 Triglyceride content 0.20 Group Metals, mg/kg, max. Group I metals (Na + K) 5 Group II metals (Ca + Mg) 5 Methanol content, % m/m, max. 0.20 Methyl Laurate, % mass, min. 45 Oxidation Stability, 110 0 C, hours, min. 6 Phosphorus, % mass, max. 0.001 0.001 Sulfated ash, % mass, max. 0.020 0.020 Sulfur, % mass, max. 0.050 0.050 Viscosity, kinematic @ 40 O C, mm 2 /s 2.0-4.5 2.0 4.5 Water, % vol. max. 0.05 Water & sediments, % vol. max. 0.050 0.05

B. FAME-Blended Diesel Oils Biofuels Act Fuel Quality Standards PROPERTY Calculated cetane index, min. or Cetane number, min. or Derived cetane number, min Carbon residue on 10% Distillation residue, % mass, max. 2007 2009 ADO IDO ADO IDO 50 50 0.15 0.35 0.15 0.35 Color, ASTM 2.5 max. 5.0 min 2.5 max. 5.0 min Copper strip corrosion, 3 h at 50 0 C, max. No. 1 No. 1 No. 1 No. 1 Density at 15 0 C, kg/l 0.820-0.860 0.880 max. 0.820-0.860 0.880 max. Distillation, 90% recovered, 0 C, max 370 Report 370 Report FAME a, content, % volume. 0.7-1.2 0.7-1.2 1.7-2.2 1.7-2.2 Flash point, Pensky-Martens, 0 C, min. 55 55 55 55 Kinematic viscosity, mm 2 /s at 40 0 C 2.0-4.5 1.7-5.5 2.0-4.5 1.7-5.5 Lubricity, (HRFF), wear scar dia. @ 60 0 C, micron, max. 460 460 Methyl Laurate (C12 ME), % mass, min 0.40 0.40 0.8 0.8 Sulfur, % mass, max. 0.05 0.30 0.05 0.30 Water, % volume, max. b 0.05 0.05 Water and sediment, % volume, max. 0.10 0.1 0.10 0.10 The standards also provide minimum specification for base diesel.

Biofuels Act Biofuels Act Fuel Quality Standard BIOETHANOL (E100) PNS/DOE QS 007:2005 for Anhydrous Bioethanol Fuel Bioethanol (99.3% purity) Fuel Bioethanol (96.9% purity, denatured) BIOETHANOL BLEND PNS/DOE QS 008:2006 for E-Gasoline E (E-10) 9.5 10 % fuel bioethanol 3.5% oxygen content, max. PNS/DOE QS 008:2008 for E-Gasoline E (multigrade) E10 (RON 93) & E10 (RON95) 9.0 10 % fuel bioethanol

Biofuels Act Fuel Quality Standards A. E100 Property Bio-ethanol Fuel bio-ethanol Appearance Clear and bright, visibly free of suspended or precipitated contaminants Clear and bright, visibly free of suspended or precipitated contaminants Acidity / Alkalinity, phe 6.5 9.0 6.5 9.0 Color Dark Violet Copper, as Cu, mg/kg, max. 0.1 0.1 Density @ 20 0 C, kg/l, max. 0.7915 Ethanol content, % v/v, min. 99.3 96.9 Denaturant*, % v/v, max. 1.96 2.44 ** Inorganic chloride content, mass ppm, max. 40 40 Methanol, % v/v, max. 0.5 0.5 Total acids (as acetic acid), % w/w, max. 0.007 0.007 Water content, %v/v, max. 0.5 0.5 *Only ULG per PNS is allowed ** 2% v/v at the point of denaturing

B. E10 Biofuels Act Fuel Quality Standards Property 2007 2009 Premium Premium Premium Plus Color Violet Violet Violet Copper corrosion, 3 hr @ 50 0 C, max. 1 1 1 Density at 15 0 C, kg/l 0.725 0.783 0.725 0.783 0.725 0.783 Distillation temperature, 0 C, at: 10% recovered, max. 50% recovered 90% recovered, max. End point, max. Residue, % volume, max 70 70-110 180 215 2 70 70-110 180 215 2 70 70-110 180 215 2 Existent Gum, mg/100 ml, max. 4 4 4 Hydrocarbons a : Aromatics, % volume, max. Benzene, % volume, max. Ethanol (C2) b, % volume 35 2 9.5 10 35 2 9,0 10 35 2 9.0-10 Lead content, (not added) c, g/l, max. 0.005 0.005 0.005 Octane rating, min. Research Octane Number (RON) Anti-knock index (AKI) d 93 87.5 93 87.5 95 Oxygen content, % mass, max. e 3.5 Sulfur, % mass, max. 0.05 0.05 0.05 Vapor pressure at 37.8 0 C, kpa (psi), max. 62 (9) 62 (9) 62 (9) Water content, % v/v, max. 0.1 0.1 0.1 The standards also provide minimum reference specifications for base gasoline.

Fuel Quality Standards Development On-going and Target Formulations BIOETHANOL E-20 and E-85 Hydrous bioethanol BIODIESEL B3/B5 B100 for Jatropha Methyl Ester Generic B100 BUNKER and Emulsified FUEL EURO IV specs

Enforcements DOE - OIMB Monitoring Fuel quality/quantity (RA 8479 / RA 9367) refining/marketing process, inventory, price (RA 8479) Additives Registration (RA 8479 / RA 8749) Fuel Quality Standard Setting (RA 8749 / RA 9367) Petroleum Facilities Standard Setting (MOA with BPS) Regulate as necessary (RA7638) DOE - EUMB (RA 9367) Accreditation Biofuels Manufacture Monitoring of Biofuels Manufacture/Marketing DOE-ERTLS conducts testing of samples, DOE-Legal processes violations

OUTLINE Mandate for Cleaner Fuel Roadmap for Fuel Quality Improvement Standards (PNS) Enforcements Government Thrust/Plans Research and Policy Development Linkages

Research and Development Biofuels Performance Testing Program Vehicle Testing Facility Assess performance of biofuels: Test Protocol development Baseline: gasoline/diesel fuel 1% CME, 2% CME 1% JME, 2% JME CME + JME 5% bioethanol Higher blends (10% bioethanol, 5% CME/JME Biofuels from alternative feedstocks Analytical Testing Biofuel handling storage, stability, etc. Vehicle performance Tests Validation study Engine performance Emission assessments Engine component study Source: DOST

Harmonization of Standards Fuel Quality Conventional Alternative fuels Facilities Gasoline stations LPG vehicles, parts / conversion kits Terminals Control equipment (correlation) Codes of Practice LPG Vehicle Conversion Retail Operation Bulk Storage, Handling & Distribution Benefits of harmonized biofuels quality standard Align readily local fuel standards to the WWFC vis-à-vis local emission regulations General biodiesel standard and its blends vis-à-vis emerging vehicle technologies Facilitate trade across borders ensuring supply availability

Linkages Biodiesel Standard (B100) EAS:East Asia Summit Items Units U.S. EU Japan EAS-ERIA BDF Standard ASTM D6751-07b EN14214:2003 JIS K2390:2008 (EEBS):2008 Ester content mass% - 96.5 min. 96.5 min. 96.5 min. Density kg/m3-860-900 860-900 860-900 Viscosity mm2/s 1.9-6.0 3.50-5.00 3.50-5.00 2.00-5.00 Flashpoint deg. C 93 min. 120 min. 120 min. 100 min. Sulfur content mass% 0.0015 max. 0.0010 max. 0.0010 max. 0.0010 max. Distillation, T90 deg. C 360 max. - - - Carbon residue (100%) or 0.05 max. - - 0.05 max. mass% Carbon residue (10%) - 0.30 max. 0.3 max. 0.3 max. Cetane number 47 min. 51.0 min. 51.0 min. 51.0 min. Sulfated ash mass% 0.02 max. 0.02 max. 0.02 max. 0.02 max. Water content mg/kg 0.05[vol%] max. 500 max. 500 max. 500 max. Total contamination mg/kg - 24 max. 24 max. 24 max. Copper corrosion No.3 Class-1 Class-1 Class-1 Acid value mgkoh/g 0.50 max. 0.50 max. 0.50 max. 0.50 max. Oxidation stability hrs. 3 min. 6.0 min. (**) 10.0 min. (****) Iodine value - 120 max. 120 max. Reported (***) Methyl Linolenate mass% - 12.0 max. 12.0 max. 12.0 max. Polyunsaturated FAME (more than 4 double bonds) mass% - 1 max. N.D. N.D. (***) Methanol content mass% 0.2 max. (*) 0.20 max. 0.20 max. 0.20 max. Monoglyceride content mass% - 0.80 max. 0.80 max. 0.80 max. Diglyceride content mass% - 0.20 max. 0.20 max. 0.20 max. Triglyceride content mass% - 0.20 max. 0.20 max. 0.20 max. Free glycerol content mass% 0.020 max. 0.02 max. 0.02 max. 0.02 max. Total glycerol content mass% 0.240 max. 0.25 max. 0.25 max. 0.25 max. Na+K mg/kg 5 max. 5.0 max. 5.0 max. 5.0 max. Ca+Mg mg/kg 5 max. 5.0 max. 5.0 max. 5.0 max. Phosphorous (*) Equivalent content to diesel oil mg/kg 10 max. (***) 10.0 Need max. data check 10.0 and max. further discussion 10.0 max. (**) Meet diesel oil specification (****) Need more data & discussion from 6 to 10 hrs.

Fuel Quality Standards Development CAA Biofuels Act of 2006 Clean Fuel Initiatives (WWFC) Fuel Quality Regional Harmonization (WP 29 & Vehicle Harmonization) Alternative Fuels / Energy Security & Sufficiency Review & Formulate Standards Technical Committee on Petroleum Products & Additives (TCPPA) Int l Fuel Quality Standards Emission Stds/ Regulations Monitoring: Sampling & Testing Field/On-site testing R & D on Fuel Specification Vehicle Technology Dev t. Laboratory testing Dev t in Fuel Additives Multi-lateral lateral bodies: ADB, JICA, JETRO etc. IRR for Standards Inter-agency Cooperation: DOE, DTI, BPS, DENR-EMB, EMB, DOTC DOF, BIR, BOC, TC, DOST, etc. Local Supply and Demand Others: Industry Oil/Car NGO s, Academe

Issues & Concerns Price Supply Availability Investment Requirement And Climate Compatibility Of Fuel With Vehicle Fuel Quality Vs. Emission Standards Monitoring Local Research Facility

Thank you!