Concerns for Higher Blends of Biodiesel - Higher FAME Blends -

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#1 APEC Workshop Concerns for Higher Blends of Biodiesel - Higher FAME Blends - December 13, 2017 @ Science Park, Pathumthani, Thailand Tom KAKIHARA Japan Automobile Manufacturers Association JAMA 1/22

Content Introduction Our Position Biodiesel Expansion & Emission Enhancement Key Characteristics of FAME Further Concerns Importance of House Keeping Summary 2/22

Introduction Recognize in the importance that the use of biodiesel would contributed GHG reduction and saving fossil fuel. Minimize any undesired operation of vehicles such as impact on the environment and inconvenience for users in the market. Considering and looking for the solution of issues based on technical back data continuously. May ask stake holders to understand issues and to take action in order to use biodiesel fuels properly. 3/22

Our Position - Statement for Biodiesel Usage Global Statement JAMA has been recommending the use of up to 5% (or 7%) of FAME as for general public diesel fuel in order to prevent any inconvenient operation of vehicles for the users. FAME which is majority of biodiesel, has unique & different characteristics from fossil based conventional diesel fuel and it would impact on fuel system components & engine/vehicle operations. When FAME is blending with low concentration such as 5% in to diesel fuels, the impact by FAME would be minor and may be negligible. 4/22

Our Position - Statement for Biodiesel Usage Supplemental (Regional) Statement JAMA has recognized the latest policies in some Southeast Asian region which is mandated to use higher FAME blends. In order to be used biodiesel fuel appropriately there, JAMA has decided to publish the Supplemental Statement in addition to Global Statement. The Supplemental Statement accepts the use of up to 20% of FAME under certain conditions. Global Statement Supplemental Statement http://www.jama.or.jp/eco/wwfc/pdf/jama_fq_positionstatement_fame.pdf JAMA HP: 5/22 http://www.jama.or.jp/eco/wwfc/pdf/fame_jama_supplementary_position_statement_december2016.pdf

Our Position - Statement for Biodiesel Usage No objection in blending FAME up to 20% when required conditions are met. Recommend to keep conventional diesel fuel (i.e. B5 or less) for older vehicles in the market. Conditions Presupposed Conditions Warm/Hot Climate PME Up to Euro4/IV emission requirement < Experienced in EU market > Recommendations Measures for. Oxidation Stability Precipitate Solubility 6/22

Biodiesel Expansion & Emission Enhancement FAME content [%] Moving forward higher blends mandate and more stringent emission requirements simultaneously. Big Challenges!! Emission Indonesia Malaysia Thailand 30 Biodiesel 20 2014 2016 2018 2020 2022 2024 2026 2036 Euro2 Euro4 Euro2 (Euro5) Euro4 (Euro5) (Euro6) Indonesia Malaysia 10 7 Not implemented yet Thailand 2014 2016 2018 2020 2022 2024 2026 2036 Calendar 7/22

Key Characteristics of FAME FAME Has unique components and impurities looks similar to conventional diesel fuel visually Not the same characteristics as conventional diesel fuel Concerns The unique characteristics of FAME is effected to stability, solubility, and fuel properties such as distillation and LHV. The unique, and different fuel properties from conventional diesel expects to impact on engine combustion characteristics as well. 8/22

Key Characteristics FAME has unique characteristics and impact of higher blends on components/systems would become noticeable. *Characteristics of FAME 1 2 Easy to oxidize and deteriorate Easy to produce precipitate 3 High Boiling Point 4 High capability in water absorption 5 Low Calories Possible Effect Corrosion of parts, Adhesion of deposits Clogging fuel filters Incomplete combustion, Oil dilution (by DPF Regeneration) Rust, Corrosion, Microbial growth, Clogging fuel filter Low efficiency, Lower exhaust gas temperature 6 High Solubility Peeling off sludge, clogging fuel filter *Comparison with conventional diesel fuels 9/22

Key Characteristics - Different Composition Stability of FAME is worse than conventional diesel and can be controlled in production process. Has to be specified in B100 & Bxx standards as an O-Stability. Double Bond Components FAME can be degraded by chemical reaction of double bonds components. High Reactivity Double bond components can easily initiate chemical reaction when conditions are met. Acids and Sludge Generation Acid and sludge will be produced. Acid will attack materials, sludge leads clog filters, and form deposits in the fuel system. Diesel fuel Structural Example RH FAME Structural Example R-COO-R Double Bond Double bond is extremely high reactivity. 10/22

Key Characteristics - Containing Impurity Mono-glyceride (MG) content in B100 becomes solid (Precipitate) at room temperature and can be controlled in production process. Has to be specified in the standard based on FAME content in diesel fuel and market climate condition. 11/22

Key Characteristics - Distillation Temperature (C) Distillation characteristics of PME is quite different from conventional diesel fuel and CAN T be controlled in prod. process. Expected not to burn completely at low combustion temperature operation. (i.e. low speed, light-load) PME B100 2012-2015 PMEs made in Malaysia Conv. Diesel B0 CV CV 2014-2015 Market Diesel in Malaysia Evaporated Point (%) 12/22

Key Characteristics - LHV Because of unique composition, FAME has lower energy content and CAN T be controlled in production process. May impact on fuel economy, and vehicle performances Source: JARI report Malaysia PME = B100 (N=7) JIS #2 Diesel = B0 (N=4) <Average> 13% Lower Heating Value (J/g) 13/22

Further Concerns Combination of Euro5/6 compliant vehicle and higher FAME blends will be new to Automobile Manufacturers. Its impact is unknown. Higher FAME Blends Euro 5/V Vehicles Distillation LHV Lower Calories Oxidation Stability Precipitate Impact? DOC/DPF/SCR Enhanced EGR system Higher Injection Press. More accurate fuel cont. Note: In general, most of these systems would not be required to meet Euro4. 14/22

Further Concerns - Euro5/6 Compliant Vehicles Typical Technologies Newly equipped DOC/DPF/SCR/LNT Enhanced EGR system (Hi flow rate, EGR cooler) Higher pressure fuel injection system (Common Rail) Upgraded fuel system Finer filter, accurate fuel injection, etc. 15/22

Further Concerns - Emission Control Technologies New technologies to be introduced in the future vehicles compliant to Euro5/6 emission requirements DOC DOC + DPF DPF To Tail Pipe Reference: Isuzu HP EGR System (valve, cooler, throttle) EGR Cooler EGR Valve Throttle Intake Exhaust Urea SCR Multiple Injection 16/22

Further Concerns - Expected Impacts (1/3) FAME contained lubricant oil can not be evaporated and remains. Viscosity of FAME contained lubricant oil is low and leads low press. Especially concerned in vehicles equipped DPF. Reference:JATOP 17/22

DPF in Exh gas temp. Further Concerns - Expected Impacts (2/3) DPF in Exh gas temp. The profile of exhaust temperature at DPF-in became lower due to lower LHV, when B20 used. CV B0 Reference:JATOP CV B20 (RME) Start of Regeneration Start of Regeneration Regeneration Time (sec) Regeneration Time (sec) In case of B20, DPF in Exhaust gas temperature could not reach high enough to complete DPF regeneration Reference:JATOP 18/22

Further Concerns - Expected Impacts (3/3) High FAME blends would be expected to impact on newly employed systems and components. Key Characteristics Distillation < High Boiling Point > LHV < Low Calories > Oxidation Stability Factor Unburned FAME in Exhaust Lower Exh. Gas Temperature Oxidized Degradation Expected Impacts Fouling, clogging EGR system components Clogging DOC, DPF Oil dilution by FAME (by DPF regeneration) - Drop of engine oil pressure Drop of DPF regeneration performance Decline in emission conversion rate Sludge formed in engine oil Injector deposits - In-cylinder injector - Exhaust pipe injector (for DPF regeneration) 19/22

Importance of House Keeping Vehicles need to have fuels with expected quality at SS/retailers. Some opportunities to degrade its quality during delivery, handling, and storage process from production facilities to SS. Inspection/monitoring and maintenance process need to be considered entire process after fuels production. FAME Producer Refinery FAME(B100) Blending Terminal /Facility :Quality Standards (Diesel, B100, BXX) Delivery Retailer /Service Station Diesel(B0) Storage Tank : Degradation Refueling Underground Tank : Precipitate : Sludge 20/22

Summary (1/2) The characteristics of FAME is different from conventional diesel fuels and its discrepancy will become large accordingly when FAME content is increased. B20 may be acceptable for Euro 2/3/4 compliant vehicles, when all conditions that JAMA recommends are met. However, it is not acceptable to use beyond B20 because of no experience as a general conventional diesel fuel in the market. For Euro5/6 compliant vehicles, it is not acceptable to use beyond B7 because the impact of higher FAME blends on new/sophisticated technologies are unknown. 21/22

Summary (2/2) It is important to develop fuel standard of B100/Bxx in order to control quality strictly, however, some issues related to distillation and LHV, would remain when consider higher FAME blends. There may not be solution for some issues on higher FAME blends, and hydrogenated type of biodiesel may not fix them as well. Establishment of quality control system (monitoring system) for the market fuel needs to be considered, because FAME can degrade easily and may create problem on the vehicles. 22/22

Thank you very much for your attention