Guidance for the storage and handling of fuel grade ethanol mixtures at petroleum distribution installations

Guidance for the storage and handling of fuel grade ethanol mixtures at petroleum distribution installations

GUIDANCE FOR THE STORAGE AND HANDLING OF FUEL GRADE ETHANOL MIXTURES AT PETROLEUM DISTRIBUTION INSTALLATIONS Second edition September 2016 Published by ENERGY INSTITUTE, LONDON The Energy Institute is a professional membership body incorporated by Royal Charter 2003 Registered charity number 1097899

The Energy Institute (EI) is the chartered professional membership body for the energy industry, supporting over 23 000 individuals working in or studying energy and 250 energy companies worldwide. The EI provides learning and networking opportunities to support professional development, as well as professional recognition and technical and scientific knowledge resources on energy in all its forms and applications. The EI s purpose is to develop and disseminate knowledge, skills and good practice towards a safe, secure and sustainable energy system. In fulfilling this mission, the EI addresses the depth and breadth of the energy sector, from fuels and fuels distribution to health and safety, sustainability and the environment. It also informs policy by providing a platform for debate and scientifically-sound information on energy issues. The EI is licensed by: the Engineering Council to award Chartered, Incorporated and Engineering Technician status; the Science Council to award Chartered Scientist status, and the Society for the Environment to award Chartered Environmentalist status. It also offers its own Chartered Energy Engineer, Chartered Petroleum Engineer and Chartered Energy Manager titles. A registered charity, the EI serves society with independence, professionalism and a wealth of expertise in all energy matters. This publication has been produced as a result of work carried out within the Technical Team of the EI, funded by the EI s Technical Partners. The EI s Technical Work Programme provides industry with cost-effective, value-adding knowledge on key current and future issues affecting those operating in the energy sector, both in the UK and internationally. For further information, please visit http://www.energyinst.org The EI gratefully acknowledges the financial contributions towards the scientific and technical programme from the following companies BP Exploration Operating Co Ltd RWE npower BP Oil UK Ltd Saudi Aramco Centrica Scottish Power Chevron SGS CLH Shell UK Oil Products Limited ConocoPhillips Ltd Shell U.K. Exploration and Production Ltd DCC Energy SSE DONG Energy Statkraft EDF Energy Statoil ENGIE Talisman Sinopec Energy (UK) Ltd ENI Tesoro E. ON UK Total E&P UK Limited ExxonMobil International Ltd Total UK Limited Kuwait Petroleum International Ltd Tullow Oil Maersk Oil North Sea UK Limited Valero Nexen Vattenfall Phillips 66 Vitol Qatar Petroleum World Fuel Services However, it should be noted that the above organisations have not all been directly involved in the development of this publication, nor do they necessarily endorse its content. Copyright 2016 by the Energy Institute, London. The Energy Institute is a professional membership body incorporated by Royal Charter 2003. Registered charity number 1097899, England All rights reserved No part of this book may be reproduced by any means, or transmitted or translated into a machine language without the written permission of the publisher. ISBN 978 0 85293 937 6 Published by the Energy Institute The information contained in this publication is provided for general information purposes only. Whilst the Energy Institute and the contributors have applied reasonable care in developing this publication, no representations or warranties, express or implied, are made by the Energy Institute or any of the contributors concerning the applicability, suitability, accuracy or completeness of the information contained herein and the Energy Institute and the contributors accept no responsibility whatsoever for the use of this information. Neither the Energy Institute nor any of the contributors shall be liable in any way for any liability, loss, cost or damage incurred as a result of the receipt or use of the information contained herein. Hard copy and electronic access to EI and IP publications is available via our website, https://publishing.energyinst.org. Documents can be purchased online as downloadable pdfs or on an annual subscription for single users and companies. For more information, contact the EI Publications Team. e: pubs@energyinst.org

Contents Page Foreword...5 Acknowledgements...6 1 Introduction and scope...7 1.1 Introduction...7 1.2 Scope...8 1.3 Petrol/ethanol blends volume versus energy....8 1.4 UK legal framework....8 1.5 Physical properties of fuel grade ethanol mixtures...9 1.5.1 Physical properties of ethanol....9 1.5.2 Physical properties of methanol...10 1.5.3 Physical properties of denaturants...10 1.6 Handling philosophy...11 2 Design integrity...13 2.1 Material/equipment compatibility...13 2.1.1 General...13 2.1.2 Tanks and pipework...13 2.1.3 Pumps...14 2.1.4 Pipe sealants...14 2.1.5 Meters...14 2.1.6 Hoses....14 2.1.7 Filters...14 2.1.8 Other materials...15 2.2 Petrol/ethanol blend corrosion...17 2.2.1 General...17 2.2.2 Stress corrosion cracking...18 2.3 Storage tanks...19 2.4 Flame arrestors...21 2.5 Breathing systems/process design...22 2.6 Implications for vapour recovery units...22 2.7 Implications for hazardous area classification...22 3 Denaturing...23 3.1 General...23 3.2 Specification...23 4 Blending...25 4.1 Blending issues...25 4.2 Key considerations....28 5 The supply chain....29 5.1 Preparation for handling ethanol mixtures...29 5.2 Ethanol mixtures receipt/road tanker loading...29 5.2.1 General...29 5.2.2 Sea receipt...29 5.2.3 Pipeline receipt....30 3

Contents continued Page 5.2.4 Rail/road receipt...30 5.2.5 Road tanker loading....30 5.3 Contaminated or off-specification product....30 6 Metering............................................................. 32 7 Environmental protection...33 7.1 General...33 7.2 Implications of release of ethanol mixtures on soil and groundwater...33 7.3 Operational issues...34 8 Fire-fighting...36 8.1 General...36 8.2 Flame visibility...36 8.3 Radiant heat...36 8.4 Fire detection...37 8.5 Fire-fighting response...37 8.5.1 Using water...37 8.5.2 Using foam...37 8.6 Storage tank foam systems...39 9 HM revenue and customs compliance...40 Annexes Annex A Supplementary information...41 A.1 General...41 A.2 Water tolerance of ethanol....41 A.3 Requirements and test methods for petrol specified in BS EN228...42 A.4 Requirements and test methods for ethanol specified in EN 15376....45 A.5 Quality assurance and testing....46 A.6 Phase separation of petrol/ethanol blends...48 Annex B References/bibliography...51 B.1 References...51 B.2 Bibliography....52 Annex C Glossary....54 Annex D Abbreviations...55 4

FOREWORD This publication was originally produced by Alan Adams, and has been updated by James Coull at the request of the Energy Institute (EI) Distribution and Marketing Committee to complement EI Model Code of Safe Practice Part 2: Design, construction and operation of petroleum distribution installations. It is intended to provide information for those involved in the storage and handling of fuel grade ethanol mixtures at petroleum distribution installations. This publication has been prepared specifically to address the handling of fuel grade ethanol mixtures in the UK, which includes a specific type of denaturant, not typically encountered outside of the UK. The information contained in this publication is provided as guidance only and while every reasonable care has been taken to ensure the accuracy of its contents, the EI, and the technical representatives listed in the acknowledgements, cannot accept any responsibility for any action taken, or not taken, on the basis of this information. The EI shall not be liable to any person for any loss or damage which may arise from the use of any of its publications. Although the information in this code makes reference to legal requirements that apply in the United Kingdom, certain aspects may also be applicable in other countries. Suggested revisions are invited and should be submitted to the Technical Department, Energy Institute, 61 New Cavendish Street, London, W1G 7AR. 5

ACKNOWLEDGEMENTS This publication was originally prepared by Alan Adams, and has been updated by James Coull on behalf of the EI Distribution and Marketing Committee in conjunction with: Niall Ramsden Jeff Robson Hugh Tucker Steve Turgoose Kevin Waterton Resource Protection International SGS Roplex Ltd UKPIA Intertek Intertek The EI wishes to record its appreciation of the work carried out by them, and also the following members of the EI s Distribution and Marketing Committee who provided comments on drafts of this publication: Dave De Halle Ian Goldsworthy Phillips 66 (Chairman) Valero The EI wishes to record its appreciation also to the following stakeholders who provided input: Russell Best Carole Bontoft Stuart Pointer Philips66 Exxonmobil HSE Technical editing and project coordination was carried out by Toni Needham (EI). 6

1 INTRODUCTION AND SCOPE 1.1 INTRODUCTION The European Renewable Energy Directive 2009/28/EC and the European Fuel Quality Directive 2009/30/EC promote the use of biofuels or other renewable fuels for inclusion in the diesel and petrol blends sold in Member States. The UK Government s response was The Renewable Transport Fuel Obligations Order (RTFO) which was first published in 2007 and has been subsequently amended on a number of occasions 1. This places an obligation on fuel suppliers to ensure that a minimum target percentage of biofuel is contained in fuels used for road transport (petrol and diesel) and non-road mobile machinery. The target percentage required under the RTFO (2013 amendment) is that fuel overall contains at least 4,75 % by volume and this is an average across all the fuels and does not have to be the same in each individual fuel. The Department for Transport (DfT) plan a further revision to the RTFO in 2017 which is likely to increase the target. To achieve these targets, biofuels may be made available in a number of forms, such as 100 % or high concentration biofuels, or as biofuels blended into mineral oil derivatives in accordance with the appropriate existing European norms. In the UK, the petrol standard is defined by BS EN228 which defines the maximum quantities of biofuels which can be blended. The standard currently allows for two grades; fuel with up to 2,7 % m/m oxygen, which typically contains up to 5 % volume ethanol and is therefore known as E5, this is the grade most commonly marketed today. A second grade allows fuel to contain up to 3,7 % m/m oxygen and this typically contains up to 10 % volume ethanol and is known as E10. E10 is not currently sold in the UK but may be introduced as we approach 2020. Higher ethanol blends, e.g. E20 or E85, are not currently anticipated to be introduced until after 2025. Methanol, ethanol and other oxygenates can also be blended either individually or together, but could displace each other since the fuel is limited by the maximum overall oxygen content. Bioethanol (ethyl alcohol) is an alcohol made from renewable sources and has typically been produced by fermenting starchy or sugary solids from crops such as corn, wheat, sugar cane and beet, into bioethanol and water. For ethanol, methanol or their derivatives, such as MTBE or ETBE, to be allowed under the RTFO, the fuel has to be renewable and meet the carbon and sustainability criteria as defined within the Renewable Energy Directive. If the renewable fuel is derived from a waste or residue feedstock then it will receive twice as many Renewable Transport Fuel Certificates (RTFCs) as those derived from other feedstocks. This means that it 'double counts' and therefore a renewable component derived from waste which is physically present at 1 % volume in a fuel blend counts as 2 % compliance within the RTFO. The properties of ethanol and ethanol mixtures are such that the preferred practice for blending with petrol is for this to take place so that contamination with water is avoided. In practical terms this is usually either at rail supply locations or road distribution terminals, and therefore appropriate facilities and measures will need to be in place to manage the receipt, storage and handling, denaturing and blending of bioethanol mixtures. 1 The RTFO has been amended in 2009, 2011, 2013 and 2015 7

1.2 SCOPE The object of this guidance is to provide a technical overview and understanding of the issues associated with the storage and handling of fuel grade ethanol mixtures, the blending of ethanol mixtures into petrol and subsequent storage and handling of petrol/ethanol blends. For the purposes of this document, an 'ethanol mixture' is defined as including various combinations of ethanol and methanol along with denaturants such as petrol or a trade specific denaturant for use in a road fuel. The term 'petrol/ethanol blend' refers to petrol combined with an ethanol mixture. Petrol/ethanol blends are generally referred to as E5, E10, E20, E85 to represent blends with up to 5 %, 10 %, 20 % and 85 % volume ethanol respectively. Currently within the UK retail sales are E5, although it is expected that blends with higher proportions of ethanol mixtures such as E10 will be made more widely available in future years. It is likely that when E10 is widely sold within the UK, E5 blends will still be required for use within older cars (as at 2015, indicatively around 85 % of all cars used in the UK may use E10; however, before use consumers should check with their car manufacturers). It should also be noted that blends with a greater proportion of ethanol mixture than E5 will require labelling at the retail pumps. The requirement to label pumps is set out in The Biofuel (Labelling) Regulations 2004 2 and for any ethanol blend greater than 5 % volume requires that the words 'Not suitable for all vehicles: consult vehicle manufacturer before use' are displayed prominently on any dispenser from which such fuel is sold or offered for sale to the ultimate consumer. This guidance concentrates on the specific issues relevant to the UK and considers the current situation with petrol/ethanol blends with up to 5 % ethanol, E5, and also highlights areas where different issues exist with the handling of higher blend ratios up to 20 % ethanol, E20. Blends with greater than 20 % ethanol are beyond the scope of this document. 1.3 PETROL/ETHANOL BLENDS VOLUME VERSUS ENERGY Due to the lower energy content of ethanol, the total energy content of the final petrol/ ethanol blend may be reduced slightly by approximately 1,5 % for E5, and 3 % for E10. 1.4 UK LEGAL FRAMEWORK In line with the European Renewable Energy Directive 2009/28/EC and the European Fuel Quality Directive 2009/30/EC, the UK Renewable Transport Fuel Obligations Order 2007 (RTFO) was introduced and subsequently amended in 2009, 2011, 2013 and 2015. This places an obligation on fuel suppliers to ensure that a minimum target percentage of biofuel is contained in fuels used for road transport (petrol and diesel) and non-road mobile machinery. The target percentage required under the RTFO (2013 amendment) is that the fuel contains at least 4,75 % volume which is an average across all the fuels and does not have to be the same for each individual fuel. Bioethanol blended as E5 petrol is currently the main biofuel used to meet the RTFO target and it is anticipated that E10 may be introduced into the market as we approach 2020. 2 There is also a new European standard in development on fuel labelling BS EN 16942. 8