1. Alternative Fuels for Medium –Speed Diesel Engines for Marine Applications: Realistic Options by Steven G. Fritz, P.E. Department of Engine and Emissions Research Southwest Research Institute ® 210-522-3645 sfritz@swri.org

2. Topics Covered Today * Medium Speed Diesel Engines »Primary experience base from North American railroad industry –EPA locomotive regulations in place starting 2000 –New 2000 and newer –Remanufactured – 1973 and newer »Engine commonality with Category 2 marine * Context & Perspective »Railroad/marine diesel fuel consumption »EPA marine engine & fuel regulations * Alternative Fuels: »Biodiesel »Renewable Diesel »Synthetic Diesel * Greenhouse gas emissions

3. ......Realistic Options * For today, means that: »Near term -- 0 to 5 years out »Potential beyond demonstration * We will not focus on »Hydrogen »DME (Dimethyl Ether) »Propane (LPG) »Coal slurry fuels

6. Context * Railroads use a small fraction of diesel fuel production »In general, they will use what everyone else is using »It is what is in the pipeline * Same story for marine?

7. EPA Diesel Fuel Regulations * Nonroad diesel not regulated by EPA until June 2007. * EPA Nonroad diesel regulations »Including locomotive and marine diesel – nationwide »Effective June 1, 2007 –500 ppm Sulfur maximum –Cetane > 40 –Aromatics < 35% volume * June 2012 »Locomotive and marine diesel will be ULSD, 15 ppm max Sulfur * The above sulfur limits do not apply to HFO used in Category 2 and 3 marine diesel engines.

8. CARB Diesel Fuel Regulations * Effective January 1, 2007 »Intrastate Locomotive & Harbor Craft marine * Must use CARB diesel »15 ppm maximum Sulfur »10% maximum aromatics »Minimum lubricity standard

9. Source: EPA Regulatory Support Document EPA420-R-08-001 March 2008

10. Apply Technologies to Marine EMD Engines

11. What about Alternative Fuels? * OK, were getting there * But remember, »Marine engines now operating in a highly EPA regulated environment »Covering both engines and fuels »Most available resources directed at meeting upcoming Marine Tier 3 & Tier 4 regulations »You just cant switch to an alternative fuel without factoring in EPA emissions compliance on regulated engines

12. Biodiesel * Limited experience with Biodiesel in locomotives * 2002 SwRI study for DOE- NREL »EMD 16-645E at 2,000 HP http://www.biodiesel.org/resources/reportsdatabase/reports/gen/20040401_gen334.pdf

14. Biodiesel Issues * Issues for locomotive/marine engine remain »New engine warranty »EPA emissions compliance –Close to the limits on NOx for best fuel economy –Will NOx increase with biodiesel use above EPA limits? »Lower energy density (BTU/gallon) –Roughly 2% for a B20 blend »Consistent fuel quality remains a major concern –10% of B100 was out of specification in 2007 »Required NOx inventory reporting –Need to adjust NOx up if biodiesel is used?

15. Renewable Diesel * Usually refers to hydrotreated vegetable oils (HVO) or animal fats. * Identical to those used for ester-based biodiesel production * Treated with hydrogen in a refinery process »Removes oxygen »Resulting in a paraffin fuel similar to Fischer-Tropsch/GTL diesel. * An attractive method of vegetable oil feedstock utilization, producing hydrocarbon fuel with no stability, low temperature operability, or engine compatibility problems which have troubled biodiesel.

16. Renewable Diesel – In Production Today * Finnish oil company Neste. »Originally introduced NExBTL diesel as 2 nd generation biodiesel »Now NExBTL renewable diesel »Neste Oils first NExBTL facility was commissioned in Finland at the Porvoo refinery in Summer of 2007 »A second facility is due to come on stream there in 2009. Each of the plants at Porvoo has a capacity of 170,000 tons per annum (t/a). »In November 2007, Neste announced a 800,000 t/a plant in Singapore »In June 2008, Neste announced 800,000 t/a plant in Rotterdam * No commercial renewable diesel plants in North America. * Under April 2008 decisions of the US Internal Revenue Service (IRS) and the US Environmental Protection Agency (EPA), refinery-made renewable diesel is eligible for the EPAct $1/gallon tax credit.

17. Synthetic Diesel Fuel * First and best known synthetic fuel technology is the Fischer-Tropsch (FT) process, which was developed in the 1920s in Germany

18. Synthetic Diesel Fuel, cont. * GTL – Gas to Liquid »In commercial, large scale production today »Oryx GTLwas opened by Sasol Chevron in 2006/2007 in Qatar. »Syntroleum Corporation in Tulsa, OK – USAF project * CTL – Coal to Liquid »Sasol in South Africa - synthetic diesel projects via coal gasification and synthesis gas.

19. Synthetic Diesel Fuel characteristics * Generally compatible with existing engines »no need for engine modifications »Use neat or as a blend with conventional diesel fuel * Compatible with conventional diesel »comparable energy density (BTU/gallon) »can be mixed with petroleum diesel »can be transported as liquid in existing petroleum infrastructure * The fuels can be designed to have very good properties for both engine performance and emissions. * Can be used neat or as a valuable blending stock »to improve the properties of petroleum fuels »Very high Cetane (70+) »Very low aromatic and polyaromatic content »Sulfur content is essentially zero

20. Synthetic Diesel Fuel characteristics * However..... »Poor lubricity – needs a lubricity additive »Poor cold flow properties * Production cost ??? * GHG Considerations »GTL – ? »CTL – negative »Biomass derived – may have life cycle GHG benefit

21. Summary * Railroad/Marine diesel consumption a relatively small fraction of total diesel consumption * Alternative Fuel options are available today »Likely already in use as B5 in D975-08 diesel fuel. »Synthetic Diesel (GTL & CTL) viable options -- $$$ * Do not forget EPA exhaust emission & fuel regulations »You can not just go and try anything in the tank.....