1. Shinichi Goto, Ph.D E-mail:goto.s@aist.go.jp Research Center for New Fuels and Vehicle Technology (NFV), National Institute of Advanced Industrial Science and Technology (AIST) Namiki 1-2-1, Tsukuba, Ibaraki, 305-8564, JAPAN ＤＭＥ Vehicle ＢＤＦ Mini Bus Collab. Res. Center Benchmarking of Biodiesel Fuel Standards in East Asia

2. Engine Test Facilities in AIST Fuel and Exhaust Gas Test Equip. Fuel Spray Test Cell Vehicle Test Circuit Engine Test Cell

3. 2 Introduction of ERIA Energy Project Working groups: Analysis of Energy Saving Potential in East Asia (IEE: Institute of Energy Economics, Japan) Sustainable Biomass Utilization Vision in East Asia (AIST) Standardization of Biodiesel Fuel for Vehicle in East Asia (AIST) East Asia Summit Project: JETRO:JAPAN EXTERNAL TRADE ORGANIZATION => ERIA: Economic Research Institute for ASEAN and East Asia

4. 2 Policy Relevance Background Objectives Procedure Members Schedule Standardization activity Presentation Outline

5. 5 Policy Relevance The importance of biofuels has been recognized in the Cebu Declaration on East Asian Energy Security on 15 January 2007, in which the standardization was encouraged for practical use. In order to contribute to the promotion of biofuels in East Asian countries, Japan announced “Fueling Asia-Cooperation: Initiative for Clean Energy and Sustainable Growth”, which included the promotion of biomass energy. It was welcomed by all participating countries. Energy Cooperation Task Force (ECTF) proposed launching a study on BDF standards to discuss the concrete measures. The 1 st EAS Energy Misters’ meeting(EMM1) was held in Singapore on 23 August 2007. The importance of BDF standards was mentioned in the joint statement. 2nd East Asia Summit Source : The Ministry of Foreign Affairs of Japan

6. 6 Background (1) ISV Gb/a : Giga barrels of oil equivalent per annum Soybean Palm Rapeseed The Kyoto Protocol emphasized the concept of ‘carbon neutral’ - that vehicle emissions (CO2) are offset by using biofuels produced from plant materials absorbing CO2. The use of biofuels contributes to the prevention of global warming. Asian countries are actively promoting the introduction of biofuels due to soaring oil prices and increased energy consumption. The utilization of biofuels is also important from the viewpoint of energy security and alternative fuels. JatrophaCoconut

7. 7 The low-quality biodiesel fuel (BDF) raises serious concerns regarding the effect on engine performance caused by fuel impurities and the oxidation. It is anticipated that BDF standards will be established in each country to promote more distribution in the region. Fuel tank (source: Fuel Policy Subcommittee) Mechanical defects caused by using BDF Engine (source: JAMA) Injector (source : JAMA) Background (2)

8. 8 Objectives Develop a common agreement for BDF standardization Support the formulation of BDF standards in line with the conditions in each country Facilitate the distribution of good-quality BDF and stabilize the economic infrastructure CountryMixing rateFeedstocksStrategy/ Goal Malaysia2-5%PalmNational Biofuel Policy, 2006 / B5 Indonesia-PalmNational Energy Program / BDF usage 47 million kL in 2025 Thailand5%PalmBiodiesel Development and Promotion Strategy / Enforce nationwide B2 in April, 2008 B5 in 2011, B10 in 2012 Philippines1% 100% CoconutBiofuel Strategy 2006 / BDF mixing rate 1% in 3 months, 2% in 2 years India5%JatrophaJatropha BDF demonstration 2005-2007 Jatropha BDF introduction2011-2012 China5% 20% Used food oil Jatropha now under consideration in BDF standardization ‘No. 5 Eco Fuel Use Promotion Meeting’, Document 2-2, Ministry of the Environment Introduction of BDF

9. 9 Procedure Share the same recognition concerning the importance of ensuring BDF quality and the basic measurements for BDF standardization Study the characteristics of BDF and current situation in each country, and gather the necessary information in order to formulate BDF standards Focus on Japanese standards (BDF5%) as a typical example Japan Automobile Manufactures Association and Petroleum Association of Japan agree to cooperate on this activity Working Group To agree common FAME standards Research and Survey FAME Database

10. 10 ・ Japan Dr. Shinichi Goto, WG Leader Director, Research Center for New Fuels and Vehicle Technology (NFV), National Institute of Advanced Industrial Science and Technology (AIST) Mr. Yasunori Takei, Representative of Japan Automobile Manufacturers Association (JAMA) Toyota Motor Corporation Dr. Takashi Hoshino, Representative of Japan Automobile Manufacturers Association (JAMA) Isuzu Motors Limited Prof. Koji Yamane University of Shiga Prefecture Mr. Akio Imai, Representative of Petroleum Association of Japan (PAJ) Showa Shell Sekiyu K.K. Dr. Mitsuharu Oguma Research Center for New Fuels and Vehicle Technology (NFV), National Institute of Advanced Industrial Science and Technology (AIST) Members (1) Host Country

11. 11 ・ Australia Dr. Lesley Dowling and Dr. Daniel Sheedy Fuel and Used Oil Policy Section, Department of Environment and Water Resources ・ China Prof. Wugao Zhang Shanghai Jiao Tong University ・ India Dr. O.S. Tyagi (to be confirmed) Indian Institute of Petroleum (IIP), Council of Scientific & Industrial Research (CSIR) ・ Indonesia Dr. Tatang Hernas Soerawidjaja Chairman, Indonesian Biodiesel Forum/ Head, Center for Research on Natural Resource Utilization, Institut Teknologi Bandung ・ Malaysia Mr. Harrison Lau Lik Nang, Research Officer, Engineering and Processing Research Div. Malaysia Palm Oil Board (MPOB) ・ New Zealand Ms. Philippa Blunden Policy Analyst, Fuels & Crown Resources Group, Ministry of Economic Development ・ Philippines Ms. Zenada Ygnacio Monsada Oil Industry Management Bureau, Department of Energy ・ Singapore (to be confirmed) Dr. Rong Yan, Institute of Environmental Science and Engineering, Nanyang Technological University ・ South Korea Dr. Young Jae Lee, Leader, Transportation Energy Research Center Korea Institute of Energy Research ・ Thailand Ms. Peesamai Jenvanitpanjakul Deputy Governor (R&D), Thailand Institute of Scientific and Technological Research (TISTR) ・ Vietnam Ms. Hoang Thi Tinh (to be confirmed) Vietnam Standards and Quality Center, Directorate for Standards and Quality (STAMEQ) *in alphabetical order Members (2) Participating Countries

12. 12 Schedule ERIA Project Jul. Sep.Nov. Jan. 2007 2008 Aug. 23, EAS Energy Ministers Mtg. (Singapore) EAS-related meetings Aug. 26, EAS Economic Ministers Mtg. (Philippines) Nov. 21, EAS (Singapore) Interim report WG 1st July 17-18 Japan WG 3rd Nov. 29-30 Japan WG 4th Feb. Australia (Tentative) WG 2 nd Oct. 2-3 Thailand Understanding on the importance of ensuring BDF quality ・ Characteristics of BDF The effect on vehicle performance Japanese quality standards Study on current situation in each country The political climate Represent current BDF Specification Site tour of Kyoto city BDF plant Interim report Final report ・ Final adjustment Proposal for common standards TENTATIVE Summarize BDF standardization Report Proposal for common standards

13. Based on EN standard (EN14214) ・ Cover a whole of negative factor in FAME Consideration of various materials ・ Coconut FAME: Viscosity and Flashpoint ・ Soybean FAME: Iodine number Oxidation stability ・ Critical impact on metal tanks ・ Metal tanks are popular for vehicles in Asia ・ Oxidation stability of 10 hours prevented metal tank corrosion in Japanese conformity test Polyunsaturated FAME ・ Mainly included in fish oil ・ Risk of sludge formation ・ Measurement method hasn’t developed yet ・ JASO* standard: “Not Detected” 13 Standardization activity (1) *JASO : Japan Automotive Standard Organization

14. 14 About harmonized specification Standardization activity (2) (*) Equivalent to diesel oil (**) Meet diesel oil specification (***) Need data check and further discussion

15. Effects of Oxidation Stability on Fuel Tank Corrosion TEST: 2000hr TEST with 8hr (60 ℃） and 16hr (Normal Temp.) interval Test Fuel: Commercial diesel fuel blended 5%FAME Test Fuel: Same FAME above with 400ppm of anti-oxidant (20ppm as B5) Source:METI FAME conformity Test Oxy. Stab of B100 : 6 Hrs Oxy. Stab of B100 : 10 Hrs 14 Lower Upper

16. Influence of Antioxidant on PME Antioxidant : Buthyl Hydroxy Toluene Cost of antioxidant [JPY/L] 0 0.3 0.24 0.180.120.06 Oxidation stability [h]

17. 1 st Generation FAME (Fatty Acid Methyl Ester) 2 nd Generation BHD (Bio Hydro-fined Diesel) Material Oil (Triglyceride) Hydrogenation HYD-FAME (Hydrogenated FAME) [AIST Technology] Trans- esterification Hydro-fining Reaction condition Nippon Oil : 6MPa, 240-320 degC. Neste Oil : 6MPa, 300-350 degC. Upgrading of Oxidation Stability by Hydrogenation

18. * 115 ℃， 16Hours oxygen blowing Source : Nippon oil corporation (presentation at 2007 JSAE/SAE International Fuels and Lubricants Meeting) Properties of Bio Hydro-fined Diesel

19. 19 Issues and Further steps Issues and actions for ERIA Project ・ Oxidation stability: Need to show the evidence of necessity “10 Hr” JAMA *and AIST check the data ・ Polyunsaturated FAME: Validation of “Not detected” JAMA and AIST examine the validation Proposal for common standards ・ Fix all the specification values by the end of 2007 fiscal year if possible. ・ To cooperate with APEC and ISO/TC28 *: JAMA(Japan Automobile Manufacturers Association Inc.) Thank You

20. Law on the Quality Control (Diesel oil) 20 Regulation Item FAME blended diesel oil Diesel oil Existence item Sulfur content<0.001mass% Cetane index>45 T90 <360 ℃ Additional item FAME content<5mass%<0.1mass% Triglyceride<0.01mass% Methanol<0.01mass% － Total acid number (TAN) <0.13mgKOH/g － Individual acid * <0.003mass% － Oxidation stability (increment of TAN) <0.12mgKOH/g － * Total concentration of Formic, Acetic and Propionic acid Diesel Oil Regulation in Japan