A Monthly Publication by Asian Clean Fuels Association Vol.3 Issue 1-31 January 2005 Ethers Remain the Preferred Tool to Meet the New Stricter Euro IV Gasoline Quality & Emissions Standards INSIDE THIS ISSUE Expert Talks: How is the European Industry Meeting New Euro IV Standards Mr Carlo Cucchi, Director Emissions & Fuels at ACEA Ms Heidi Hautala, Member of Parliament of Finland January 2005 was a milestone to the over 100 European refineries and world s auto manufacturers having to implement and meet the new stricter fuel and emissions standards to the EU market, a region consuming more than 130,000 tones per year. That represents about 15% of the globe s gasoline consumption. Pertamina To Supply Unleaded Gasoline in all Indonesia Fuel Grades Figure 3. EU Gasoline Emission Specifications for Passenger Cars* As of 1 January 2005, all new vehicles and gasoline sold to the enlarged European Union (EU), as shown in figure 1, were obligated to implement Fuel Quality Directives 98/70/EC and 2003/17/EC (figure 2) and the Auto Emission Directive 98/69/EC (figure 3). Figure 1. EU Enlargement On 1 May, 2004, 10 new Member States (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) joined the European Union. Source: European Commission, 2004 * Specifications for passenger vehicles with max. 8 seats + driver seat, with at least 4 wheels and a max. weight of 2,500 kg. ** Hydrocarbons (HC) and Nitrogen Oxydes (NOx) measured separately for Euro III and Euro IV Emission Standards. Figure 2. European gasoline specifications in the last decade Year 1993 1995 2000 2005 2009 Gasoline RON 95, MON 85 Sulphur ppm Max 1,000 500 150 50/10 10 Benzene vol% Max 5.0 1.0 Aromatics vol% Max 42.0 35.0 Olefins vol% Max 18 Oxygen 1 wt% Max 2.5 2.7 RVP (s) KPa Max 80 60 E100 vol% Min 40(s)/43(w) 46 FBP o C Max 215 210 1 Ethanol is limited to a max of 5vol% and ethers to a max of 15vol%. You can reach us at ACFANEWS@acfa.org.sg. Visit our website at www.acfa.org.sg. Copyright 2004. Asian Clean Fuels Association.
EXPERT TALKS Mr Carlo Cucchi, Director Emissions and Fuel, ACEA, Reflects On How Europe Is Meeting Euro IV In this issue, ACFA News is pleased to bring you the views of Mr Carlo Cucchi, Director Emissions & Fuels at ACEA, the European Automobile Manufacturers Association and Ms Heidi Hautala, currently Member of Parliament of Finland, previously member of the European Parliament and in particular rapporteur on fuel quality between 1996 and 2003. Q: Please introduce yourself and your organisation to the readers of ACFA News. Carlo Cucchi graduated back in 1967 in chemical engineering. After a short experience at Mobil Oil and Champion Spark Plug, he joined Fiat Auto Engine Engineering in 1973 to be involved with the design and testing of advanced emission control systems. to be active (light-off temperature) and adversely affecting the performance of the exhaust gas oxygen sensors. Thus, the planned reduction in the sulphur content will provide immediate reduction of emissions from all catalystequipped vehicles on the road. Stringent emission requirements, combined with long-life compliance, demand extremely efficient and durable after-treatment systems (e.g. catalyst). HC conversion efficiency must be as high as 97% (excluding the start-up portion) for vehicles that have to meet the Euro IV standards. Thus sulphur-free fuels become an essential component of the emission system and play an important role in ensuring vehicle compliance with the emission standards. Subsequently, he covered the positions of: ACEA s Director of emissions and fuels, Fiat s Manager of Technical Legislative Department and recently he accepted to return to ACEA in his former position. ACEA is the European car, truck and bus manufacturers association in Brussels. ACEA s tasks include monitoring and analysing issues of common interest to its members, informing them on developments in these areas, elaborating and implementing the industry s common position, supporting the EU Institutions in dealing with matters of significance to the sector, communicating on those matters with the media and providing clear and objective data on the sector. Emission requirements for motor vehicles and fuel quality must follow a parallel path. Sulphur will also affect the feasibility of advanced on-board diagnostic systems. The loss in catalyst efficiency resulting from high sulphur fuels might activate the malfunction indicator (MI) and give a wrong message to the driver. Manufacturers are also working towards ambitious goals for improved fuel efficiency and low CO 2 emissions. Operation at a lean air-fuel ratio is the most promising mean to achieve these reductions. However, lean operations introduce a new challenge since, while HC and CO are effectively removed by existing catalysts under lean conditions, NOx can only be removed under stoichiometric or rich operations (i.e., a lean-burn engine can meet the present emission standard only if equipped with a storage type NOx reduction catalyst). Q: How does the introduction of the 2000 and 2005 stricter gasoline specifications help the car manufacturers meet the related stricter emissions specifications? What could have been the alternative instead of improved fuel characteristics? Sulphur Extensive testing has confirmed that sulphur has a significant impact on the emission levels of conventional vehicles by: reducing the efficiency of the catalyst, increasing the temperature at which the catalyst begins These catalysts chemically trap NOx during lean operation. NOx is then released and destroyed over the catalyst by a few seconds of rich operation. However sulphur oxides are more strongly trapped and, as competitors, they reduce the catalyst capacity of trapping NOx. Furthermore, the desorption of the sulphur oxides requires higher bed temperatures which increase the rate of deterioration of the storage type NOx reduction catalysts. Sulphur-free fuels are thus a sine qua non condition for the introduction of the lean-burn technology. Page 2 31 January 2005
EXPERT TALKS Where oxygenates are used to meet requested octane levels, aromatic and olefin limits and distillation characteristics, the WWFC recommends the use of ethers. Aromatics Aromatics are high octane and high-energy density components of gasoline. But fuels with a high aromatic content: can increase engine deposits, increase tail-pipe emissions, including CO 2, and are a source of emissions of Benzene, a carcinogenic. Aromatic levels have the largest effect on total emissions of toxic components. The US Auto Oil programme and the European EPEFE programme have confirmed that total emission of toxics are reduced by 28% if the gasoline aromatic content is reduced from 45% to 20%. Olefins Olefins are unsatured hydrocarbons and, in many cases, are also good octane components. But olefins are thermally unstable and may lead to gum formation and to deposits in the engine intake system. Furthermore, their evaporation into the atmosphere as chemically reactive species contributes to the ozone formation. Their combustion also form toxic compounds (dienes). Q: Seeing your experience, what is ACEA s advice to other countries currently in the process of putting together their fuel/emission policy? Environmental concerns have spurred progress in engine design and exhaust gas after-treatment technologies. Engine and after-treatment systems have to be seen as components of a single entity developed with the aim of achieving low emissions. Both advanced engine technologies and exhaust gas aftertreatement technologies require the availability of fuels, the quality of which has followed a parallel evolution (i.e., also fuels and their quality are essential components of the single entity which is the emission system). Countries, which are currently in the process of putting together a policy aimed at improving the impact of road transport on the environment, must keep these concepts in mind. Emission requirements for motor vehicles and fuel quality must follow a parallel path. To guide these countries, ACEA, together with Alliance, EMA and JAMA, has published a World-Wide Fuel Charter (WWFC) with recommendations concerning the quality of market fuels that manufacturers believe shall accompany the introduction of emission requirements of an increasing stringency. ACEA would also like to stress that lead in gasolines poses a serious, direct threat to public health in addition to the poisoning of catalyst. Thus, the ban on leaded gasoline is the first step towards an improved environment. Vehicle manufacturers also advise against the use of metalbased additives, such as ferrocene and MMT, replacing lead in commercial fuels to avoid potential health risks and damage to catalyst. Where oxygenates are used to meet requested octane levels, aromatic and olefin limits and distillation characteristics, the WWFC recommends the use of ethers. If you have any enquiries on MTBE such as its benefits, blending and logistics characteristics, material safety sheet, risk assessment etc; or if you have any feedback on ACFA NEWS, please contact our Editorial Team directly: You can reach us at ACFANEWS@acfa.org.sg or contact Clarence Woo at +65 6236 0249 or e-mail clarence@acfa.org.sg. Visit our website at http://www.acfa.org.sg 31 January 2005 Page 3
EXPERT TALK Ms. Heidi Hautala, Eu Parliament s Rapporteur On Fuel Quality, 1996-2003, Reflects On How Europe Is Meeting EURO IV Q) As for Europe, January 2005 is a milestone on the road towards cleaner fuels in Europe. Euro IV specifications limit refiners to produce petrol with a maximum sulphur limit from 150 to 50 ppm. Geographically balanced availability of petrol with less than 10 ppm sulphur (sulphur free) is guaranteed. Aromatics are reduced from 42 to 35 vol% and olefins from 21/18 to 18 vol% with all other parameters staying unchanged. What effect do you believe this will have on the market? A) Every driver throughout the European Union will be able to find sulphur free gasoline and diesel at a reasonable distance as of 1 January 2005. We still have to see what geographically balanced availability means in practice. This is very important for drivers of high-end trucks that could sustain engine damage engine if they run on dirty diesel. There is a concern about crossing the borders of the EU, especially towards Russia and CIS (Commonweatlh Independent States). Hopefully the distributors of road fuels in these regions will soon be able to meet the demands of European drivers. Of course, the best passenger car engines also optimally need sulphur free gasoline. Sulphur free fuels are of primary importance to lower fuel consumption of cars, matching with low carbon dioxide emissions. All gasoline must be sulphur free by 2009, but I expect the market will reach this 100 % level even earlier. Because of some uncertainty about the net result of carbon dioxide emissions of sulphur free diesel, legislators still have to confirm the date on which only sulphur free diesel will be sold. I expect there will be no delay from 2009. I also expect that the positive impact of better fuel economy of new cars is very likely to offset the increased carbon dioxide emissions in the production of diesel fuel. Many countries allow small (a few Euro-cents) tax reductions on sulphur free fuels (e.g. Germany as of November Tax differentiation in this way is a boost for the producer as well, as they help to meet the investment costs. 2003 and Finland towards the end of 2004). These minor tax reductions are a real invitation for drivers to pump sulphur free -- at virtually no extra cost for the consumer. In Finland, even 50 ppm low sulphur gasoline and diesel will now disappear from the market -- if not overnight, in the course of a few months -- and virtually all fuel will be sulphur free well in advance of 2009 as we can see. The logic of the tax reductions is that they are allowed for products which meet the legal requirements in advance. Tax differentiation in this way is a boost for the producer as well, as they help to meet the investment costs. The next revision of the fuel directive is likely to improve other parameters of gasoline (as one cannot become any cleaner on sulphur!). The proposals can be expected quite soon. Q) Please give us a short history behind Directive 98/70/EC, now revised as 2003/17/EC.A) A) The EU wanted to improve air quality, especially in towns, and started to explore the most cost-effective ways of doing so. Of the technical means available, it was discovered -- after quite a lot of twisting and debating between the various stakeholders -- that improving the quality of road fuels at a low cost would be of primary importance. In fact, the cost proved to be much smaller than the refining industry had claimed, as is usually the case. It was agreed that lowering the sulphur content was of strategic importance. Other parameters were improved as well, such as olefins, benzene, etc. These are the Euro III (for 2000) and Euro IV (for 2005) standards. Page 4 31 January 2005
EXPERT TALK EU Auto-Oil Programme 1994 To ensure the best result, it was crucial that all this was done in very broad multi stakeholder process involving the auto industry, the oil industry and the European Commission. This process became the Auto Oil Programme of which there were two phases. Auto Oil I was the framework program based on a systems approach e.g. fuel quality legislation was to be set alongside automotive emissions legislation in order to meet air quality targets, and culminated in the adoption of Directive 98/70/EC on Petrol and Diesel Fuel Quality.Auto Oil II was supposed to focus on setting specifications for the outstanding parameters but instead resulted in Directive 2003/17/EC stipulating 10ppm sulphur gasoline and diesel availability in 2005 and full penetration of 10ppm petrol in 2009. The 10ppm diesel date still needs to be confirmed. The new car emission and fuel standards have reduced emissions from new vehicles to a fraction. Even old vehicles emit less. The most notable and cost-effective examples are old buses which are equipped with particulate filters and run on low sulphur diesel. Under Auto Oil I it was agreed that eliminating lead from gasoline and lowering the sulphur content in gasoline and diesel was essential for health and environmental reasons. In addition, olefins, benzene, and aromatics limits were tightened as these compounds were also seen as having an impact on air quality and in some cases human health. With regard to the oxygen limits for gasoline this was left at 2.7wt% and the continued use of oxygenates such as MTBE, ETBE, TAME was allowed. The use of MTBE in the EU was discussed under a full EU risk assessment study for both health and environmental effects. This is a scientific process, conducted within a very well defined regulatory framework. This led to a formal decision by the European Union that MTBE is not classified as a carcinogen, mutagen or reproductive toxin. However, the Study identified a need for specific measures to limit any potential risk of MTBE groundwater contamination in relation to the aesthetic quality of ground water (taste and odour). As a follow up, recommendations were adopted in December 2001 focusing on tank management management and the construction and operation of petrol underground storage and distribution facilities at service stations with a view to prevent leakage. Road Transport Emissions in the EU Carbon dioxide, i.e. fuel consumption, is now very much the question for both the present and future. But technical measures will no longer be enough. Reducing mobility, improving town planning and investing in quality public transport is of growing importance. The next steps of improving fuel quality will be on reducing sulphur from off road machinery fuels. Machines are a source of an increasing share of the emissions, as the emissions from road vehicles have been reduced. There will also be a new set of car emission standards around 2010 (Euro V), still to be designed. The emphasis, I suppose, will be especially on reducing particulate emissions from diesel cars. This is very much a condition for the social acceptance of diesel cars since they emit very problematic particles, known to be very dangerous for health. Ms. Heidi Hautala is a member of Parliament of Finland, a former member of the European Parliament, and the Parliament s rapporteur on fuel quality 1996-2003 Questionnaire for Reader Feedback ACFA NEWS would like to hear from readers for us to improve future issues. Please take a few minutes to answer the following questions and e-mail your replies to ACFANEWS@acfa.org.sg. Please state in the subject of the e-mail Questionnaire. (1) Regular sections in ACFA NEWS include Expert Talk and Development in Fuels while country-specific topics appear in different issues. Which section(s) in particular appeal to you most? Which aspect(s) least appeal to you? (2) Would it be useful to have a Reader Opinion section or Forum, allowing readers to provide feedback? (3) What other topics of interest would you like ACFA NEWS to feature in the future? Do you have any suggestions to improve ACFA NEWS? We thank you for your contribution. 31 January 2005 Page 5
Pertamina To Supply Unleaded Gasoline in all Indonesia Fuel Grades Pertamina vowed to supply unleaded gasoline (ULG) in all fuel grades throughout Indonesia this year. Pertamina sought to allay concerns that it has not been up to the mark in fully implementing ULG in the country. The refiner said its options for achieving full ULG rollout are to: purchase high octane gasoline components purchase MTBE purchase MMT or ferrocene However, Pertamina may heed automakers concerns about possible MMT use and instead considering using MTBE. higher quality gasoline much quicker, in addition to encouraging new gasoline players in the retail market. The demand for ULG is about 15 million kiloliters a year. The cost to meet this demand is about 1 trillion rupiah (9000 rupiah to the dollar) a year just to meet ULG. This can be done with a fuels price increase across the board instead of by government subsidy. Finally, attendees heard that the Ministry of Environment has decided to implement Euro II within two years if possible and is reviewing this. However, the current problem is that the refineries are not ready. The revelation came at a 15 December, 2004 roundtable meeting in Jakarta co-sponsored by ACFA. The meeting included representatives from the oil industry, government ministries (including MIGAS which regulates the energy sector under the Ministry of Mines and Energy), Finance and Environment, the non-government organisations, the automotive manufacturers and private companies. Further, the Finance Ministry reacted to pressure from the Ministry of Environment through KBPP and MEB by increasing Pertamina s budget this year to more than US$200 million. Also, fuel prices in Indonesia are set to increase sometime between February and April of this year which should aid Pertamina in keeping its promise to to move to ULG and Page 6 31 January 2005