Up to Spec! American Coalition for Ethanol Annual Conference, August 17, 2017 Kristy Moore KMoore Consulting LLC
Today s Presentation Topics International Fuel Market Development Domestic Market Development Fuel Ethanol Technical Advisory Group ASTM International efforts Regulatory Update High Octane Fuels of the Future.
Mexico Energy Reform: Ethanol Opportunity 1938 2013: Absolute monopoly in the entire oil and gas value chain. 2008: Biofuels promotion and development law. 2013 Energy reform laws passed. Three new articles and 25 new constitutional acts created. 2016: Markets opened for gasoline and diesel imports by private entities. 2017: Gradual price liberalization (north to south). 2018: Free market.
Comision Reguladora de Energia (CRE) Mexico Gov t publishes a fuel specification once every 10 years. PEMEX, single oil company, had (has?) no desire to use ethanol. CRE posted draft specification Aug. 2016; many comments submitted. NOM-016-CRE-2016, National Fuel Specification Publication October 2016. Allowance of 5.8% ethanol blends in the rest of the country. Ban of ethanol in 3 major metropolitan areas (Mexico City, Guadalajara, Monterrey) This is due to lack of information / education on ethanol effects to gasoline and motor vehicles. This three metro areas have significant air pollution. First time ethanol allowed in Mexico, ever.
National Fuel Specification Issues There were so many voiced concerns, CRE created 3 working groups to discuss concerns. CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. This has been an awesome experience to watch the government work with industry to improve regulation. My collaboration with the U.S. Grains Council to bring experts and education to Mexico. Our Proposal submitted April 2017 Proposal to Change the NOM with two goals: #1 Increase the volume of ethanol from 5.8% to 10%. #2 Remove the restriction on ethanol use in 3 Major Metropolitan Zones. Justification: air quality, U.S. fuel, fungibility, octane, GHG reductions and lower cost.
Mexico Fuel Regulation Update! Emergency Rule to allow E10 blends in rest of country! (June 2017) Not without legal challenges. Opposition from PEMEX, auto and MTBE industry Ban for 3 metro area remains. IMP is studying E10 vs. Mexico Magna/ Premium, results due fall 2017. Results of this study could change E10 ban.
Next Steps: International Mexico market development: ethanol specification, logistics, retail station considerations. Ethanol Handbook being translated. Identify cache of experts. Next Country??
Back to Domestic Market Development! E15 Market Growing, slowly Regulatory Efforts supporting E15 Need RVP parity. Advancing our goals for higher octane/ higher ethanol fuels. Standards and regulations that need addressed.
2012: American Petroleum Institute Map of E15 Restrictions WA MT ND ME OR MN VT NH ID WY SD WI MI SE NY Maine MA CT RI CA NV UT CO NE KS IA MO IL* IN OH KY WV PA VA NJ DE MD DC AZ NM OK AR TN SC NC AK TX* LA MS AL GA HI FL States With Laws / Regulations Restricting E15 States Not Restricting E15 *Illinois has delayed enforcement of Section 2.1.3 of 2011 HB 130 until May 1, 2013 *Texas adopted most recent version HB 130 effective September 1, 2011 Note: Does not include EPA RVP Waiver for Ethanol in Conventional Gasoline or Federal RFG Areas Herman & Associates www.hermanassociates.com May 2012 2012 Herman & Associates
E15 Regulatory Impediments: Summer 2012 WA MT ND ME OR ID SD MN WI NY VT NH MA CA NV UT WY CO NE KS IA MO IL IN MI KY OH WV VA PA NJ DE MD RI CT AZ NM OK AR TN SC NC MS AL GA TX LA FL AK HI Legend No regulatory restriction Progress on impediment Regulatory Restriction Pending
E15 Regulatory Impediments: Summer 2017 WA MT ND ME OR ID SD MN WI NY VT NH MA CA NV UT WY CO NE KS IA MO IL IN MI KY OH WV VA PA NJ DE MD RI CT AZ NM OK AR TN SC NC MS AL GA TX LA FL AK HI Legend No regulatory restriction Progress on impediment Regulatory Restriction Pending
NCWM Annual Meeting Annual meeting week of July 16, Pittsburg, PA. My two proposals to update ethanol flex fuel labeling marked as voting items had to be withdrawn. American Petroleum Institute (API) created confusion with the regulators in their quest to restrict E15 labeling, ethanol flex fuel labeling. API is very active opposing any and all efforts for >10% ethanol blends. Development of ideas how to best forward our agenda at the National Conference of Weights and Measures.
Fuel Ethanol Technical Advisory Group Voluntary collaboration of ethanol industry s technical experts. Open to ethanol industry member. No financial obligation (future research planned ) Regular communication on fuel quality and regulatory issues. Build strategy on fuel quality, performance, emissions, and regulatory efforts for advancement of the ethanol industry.
Sulfate Concerns of the Oil Industry Suggesting a linear relationship with sulfate salt precipitation with increasing ethanol content. Proposing reduction of sulfate specification in ASTM D4806 for increasing ethanol content in gasoline (D4814.) Two research projects to address this concern: CRC has hired Desert Research Institute to evaluation sulfates in ethanol. FETAG is working with NREL to evaluate the potential for sulfate salt precipitation in various gasoline- ethanol blends.
ASTM Standards Update 2017 Stakeholder involvement Two face-to-face meetings per year, voting rights throughout the year. Balanced stakeholder input Producer not more than User + General Interest Levels of participation can vary Starts with $75 annual membership Ethanol industry participation up to ~45 voting members, only 15-20 attend the meetings regularly. Oil industry filed several comments challenging the voting system. Our next steps will be to replace oil industry- legacy chairman positions. Move our agenda forward to support commercialization of high octane/ high ethanol fuel blends. 15
ASTM - D02 Ethanol Related Standards D4806 Denatured Fuel Ethanol Specification D4814 Gasoline Specification D5798 Ethanol Flex Fuel Specification (Formerly E85) D7794 Blend Practice Ethanol between D4814 and D5798 D8011 Natural Gasoline for D4806 and D5798 Very active time at ASTM, standards and specifications changing multiple times each year, this trend is expected to continue. 16
ASTM D02 Meeting Several important ethanol efforts underway: Proposal to incorporate a statement on ethanol fuel blends and vapor pressure. This addresses state fuel regulations that adopt ASTM specs but have limiting language to E10. Proposal to expand the current octane methods to ethanol fuel blends above 25% ethanol by volume. Developing a test method with Marathon on DRA issues in denaturant/ ethanol flex fuels. Several gasoline BOB efforts underway to improve properties for ethanol blending. Meeting with several oil representatives to build relationships for export markets. Meeting with NREL staff to talk about Co-Optima, emissions, future projects.
Co-Optima Program Department of Energy s Research Program to optimize fuels and engines. $30-40 Billion in cost savings due to improved fuel economy. 15% of fuels from biofuels by 2035. 500,000 new jobs. New fuels, technologies by 2025. 80% reduction in GHG emissions by 2050. Improve fuel economy by 50%.
2016 DOE Co-Optima End of Year Thrust I: Improve Spark Ignition efficiency. Identify desirable properties for bioderived or biomass components. 40 candidates. Evaluate the impact of discrete fuel properties. Merit of the Fuel Blend: RON/ Octane Sensitivity/ Flame Speed/ Heat of Vaporization/ Distillation/ Particulate Emissions. Ethanol is faring well in these comparisons. Thrust II: Medium and Heavy Duty Engines and Advanced Compression Ignition.
Ag Auto Ethanol Certification Fuel Engine Vehicle Testing Vehicle Credits Octane Team Specifications and Regulations
Kristy Moore KMoore Consulting LLC Email: fueltechservice@gmail.com Phone: 309.275.9433 QUESTIONS? THANK YOU!