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Ethanol Blending – Auto Industry’s Perspectives

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Presentation on theme: "Ethanol Blending – Auto Industry’s Perspectives"— Presentation transcript:

1 Ethanol Blending – Auto Industry’s Perspectives
P.K. Banerjee Deputy General Manager, Tata Motors Ltd., Pune National Seminar on “Biofuels – Need of the hour” October 13, 2008, New Delhi

2 Contents Background Actions taken by MoPNG on EBP
Positive and Negative impacts of E10 on Environment, Health 10% Ethanol Impact on Vehicle Performance Vehicle Modifications Due to Ethanol Blending - General Trends SIAM – Government Consortium Project Concerns / Issues to be Resolved Commercial Aspects Blending related issues Taxation issues Labelling Issues SIAM’s Demand for E10 Program in India

3 Background World over, many countries are having regulations to blend 10% ethanol in Gasoline. India is also developing ethanol blending programs (EBP) to reduce dependence on imported oil & to provide support to sugarcane farmers. Ministry of Petroleum and Natural Gas (MoPNG) notified compulsory 5% blending of ethanol in gasoline in 9 States and 4UTs from January As program did not take off, MoPNG amended notification twice, in 2004 and 2006 to bring change in ground reality. The Government already announced 10% ethanol blending of gasoline (E10) from October 2008 throughout the country. However no notification is released because of which OMC’s have not started 10% ethanol blending. As per latest News, Sugarcane industries are not producing enough Fuel ethanol because of pricing issues. Ethanol is not available even for 5% blending through out the country. Meanwhile, Vehicle manufacturers and Oil companies are assessing the technical feasibility of Vehicles complying with 10% ethanol blend. “ As per SIAM, Intention of Government for blending 10% ethanol in Gasoline is a welcome step, However, SIAM feel that a-prior resolution of some of major issues will ensure success of E10 Program in India”

4 Actions Taken by MoPNG on EBP
2002 Mandatory 5% Ethanol blending in gasoline in 9 States & 4 UTs w.e.f. January 1, 2003. 2004 Mandatory 5% Ethanol blending in 10 States & 3 UTs subject to commercial viability & ethanol availability 2006 5% Ethanol blending made mandatory throughout country (except NE, J&K, A&N) subject to commercial viability w.e.f 2007 CCEA (Cabinet Committee on Economic Affairs) decided to implement on October 9, 2007: Voluntary 10% ethanol blending – from Oct ’07 Mandatory 10% ethanol blending – from Oct ‘08 2008 Union Cabinet Approved National Bio Fuel Policy on Sep % by 2017 for the blending of biofuels – bio-ethanol and bio-diesel

5 MoPNG Notification (Sep ’06)
G.S.R.580(E).– 1) In exercise of the powers… ………. the Central Government hereby directs that subject to commercial viability, the oil marketing companies shall sell five per cent ethanol- blended-petrol, as per Bureau of Indian Standards specifications, in the following States and Union Territories, namely:-- 3. The Central Government may, suo motu, or on a reference made to it, after due consideration of facts, by an order, modify the areas, and the percentage of ethanol in the ethanol-blended-petrol that may be supplied, and specify the period for the same. 20 States 4 UTs

6 E10 Ethanol Fuel Specifications released by BIS

7 10% Ethanol Blended Gasoline Specifications
In India, IS provides specifications for Gasoline fuel blended with max. 5% (vol) Ethanol. BIS committee under Mr. RK Malhotra worked on drafting specifications for 10% Ethanol blended Gasoline. Industries were asked to provide their specific requirements regarding E10 fuel specifications so that the Industries concern can be safeguarded during E10 fuel specs finalization. SIAM studied various fuel standards world-wide and suggestions regarding E10 fuel specs are made in BIS PANEL. BIS released 10% Ethanol in gasoline specification as separate table

8 10% Ethanol blended Gasoline (E10) Specifications
E10 fuel specifications are available for China, Thailand, Australia, USA, California, South Africa. Europe, New Zealand, France have draft specifications for E10 fuel. Brazil has specifications for E22 fuel. WWFC specifies that E10 fuel should meet all the requirements of Gasoline fuel. When 10% Alcohol is blended with Gasoline, the following properties are affected : Distillation characteristics Reid vapour pressure Vapour lock index (or) Flexible volatility Index Oxygen content Octane number & rating Density Water Tolerance Heating value (not controlled in the standards) Stoichiometric air/fuel ratio (not controlled in the standards)

9 Ethanol Content Proposed

10 Reid Vapour Pressure Recommendation: E10 fuel can have same RVP as E5 values as specified in Indian Standard IS Proposed

11 Vapour Lock Index (or) Flexible volatility Index
Recommendation: can be same as existing Gasoline/E5 fuel. P R O S E D

12 New Properties/parameters available in Regulations of Other Countries
Distillation - T10 (10% evaporation temperature) - T50 (50% evaporation temperature) - T90 (90% evaporation temperature) - D.I. (Distillation index) [= (1.5 * T10) + (3 * T50) + T90 + (11 * mass% of oxygen) ] Existent unwashed Gum Water content Mercaptan sulfur content Iron Phosphorus Potassium Manganese Silicon Sediments Mechanical impurities Detergency Kerosene Water soluble acids or alkalis Flash point Carburettor cleanliness Particle contamination, size distribution Intake valve sticking Combustion chamber deposits - Method I (ASTM D6201) - Method 2 (CEC-F-20-A-98) - Method 3 (TGA FLTM BZI154-01) Deposit control additives Vapour-Liquid ratio temperature (TV/L=20) Silver strip corrosion Total oxygenates Ether oxygenates - Di-isopropyl ether (DIPE) - Methyl tert-butyl ether (MTBE) - Ethyl tertiary Butyl ether (ETBE) Are we going to recommend any specs for these properties for E10 Fuel?

13 Total Registered Vehicles ~ 87 Mn
Indian Vehicle Parc If you look at the vehicle parc, you would notice that two wheelers have a maximum share of 73%, Passenger vehicles 13% and Commercial Vehicles 14%. Total vehicles registered till date are over Millions. 2006 Total Registered Vehicles ~ 87 Mn Source: Govt. of India Statistics of Registered Vehicles & SIAM estimates

14 Fuel logistics Scenario in India
Surplus / (Deficit) – Y 2003/04 Diesel MMTPA. Gasoline MMTPA. LPG - (2.18) MMTPA Kerosene - Nil (after stopping import by parallel Mkt) ATF MMTPA Gasoline & Diesel remain surplus for next 10 years while LPG & Natural Gas continue to be deficit. Source: Petrofed

15 Life of Components { E-10 } Ethanol Compatibility { E-10 }
Studies on 2 wheelers Study the Effects of Ethanol blended gasoline fuel by Splash Procedure ( E-05,E-10) Emission { E-05,E-10 } Life of Components { E-10 } Ethanol Compatibility { E-10 } Cost Benefit { E-10 } Performance ( on C/D ) { E-05,E-10 }

16 Test Results ( Performance / Emission ) : (Y2K Compliant vehicles)
MODEL ‘A’ Vehicle Performance 88 ON E-05 E-10 Remarks Power , kW No significant variation Acceleration , Sec Comparable Max Speed , kmph Comparable FE , kmpl 2 ~ 7% drop Legends : OK within Spec. Remarks :- Drop in fuel efficiency observed Mass Emission 88 ON E-05 E-10 Remarks CO , gm / km 40 ~ 78 % drop HC , gm / km 0 ~ 5 % increase NOx , gm / km 17 ~ 25 % increase HC + NOx , gm / km 7 ~ 8.5 % Increase Remarks :- Drop in CO , gm / km, Increase in Nox , gm/km

17 Test Results ( Performance / Emission ) : (Y2K Compliant vehicles)
MODEL ‘B’ Vehicle Performance 88 ON E-05 E-10 Remarks Power , kW Increase Acceleration , Sec 5.5 ~ 7% drop Max Speed , kmph Comparable FE , kmpl 2 ~ 4% drop Legends : OK within Spec Remarks :- Drop in fuel efficiency & Acceleration observed Mass Emission 88 ON E-05 E-10 Remarks CO , gm / km 30 ~ 64 % drop HC , gm / km 9.5 ~ 24 % Increase NOx , gm / km 10 ~ 32 % Increase HC + NOx , gm / km 10 ~ 27 % Increase Remarks :- Drop in CO ,& Increase in HC , Nox gm / km

18 DRIVEABILITY ( Overall DR ) 0~5 scale Rating
Test Results :- DRIVEABILITY ( Overall DR ) 0~5 scale Rating DR Model ‘A’ Judgment Model ‘B’ 88 ON E-05 E-10 A A-a A-0.5 OK B B-b B-0.4 Legends:  - Drop in rating Remarks : rank drop is felt by Customer

19 10% Ethanol-Blended Gasoline
Existing Scenario ( All vehicles upto E-05 compliant ) : Remarks :- Drop in Vehicle Perf / DR parameters

20 Positive Impacts of Ethanol
Reduces vehicle emissions (CO,HC), Green house gases (CO2) & protects environment from climate change effects. Less dependence on petroleum products & reduces imports of crude oil. Greater use of biofuels brings oil market in to balance & reduces oil prices. Increases National energy security. Locally produced biofuels can provide energy for local agricultural, industrial & household uses at less than the cost of fossil fuels. Replaces bad gasoline additives (MTBE & lead) which are sources of surface & ground water contamination & dangerous to human health. Substantial increase in employment opportunities in the rural sector. Increases net farm income & strengthens rural & agricultural economies. Greening of wastelands & regeneration of forest lands. Source: UN report “Sustainable Bioenergy: A Framework for Decision Makers”, April 2007

21 Negative Impacts of Ethanol
Increased Aldehyde (a carcinogen) emissions, is a threat to nose, eyes, throat & possibly causes cancer. Increases NOx, Evaporative emissions & fuel consumption. Increased industrial wastes from sugar industries, distilleries which may be mixed up with rivers is an issue. Increased ethanol production will lead to large scale mono-cropping of sugarcane which causes severe agricultural soil losses & nutrient leaching. Substantial increase in water consumption during ethanol production & sugarcane cultivation. As E10 vapour emissions will be more than gasoline, there is concern for health. Demand for land to grow sugarcane could put pressure on competing land uses for food crops, resulting in likely increase in food prices. Demand for ethanol would increase the price of sugarcane thereby affecting the price of sugar & other sugar-derived food commodities. Source: UN report “Sustainable Bioenergy: A Framework for Decision Makers”, April 2007

22 E10 Impact on Vehicle Performance
Driving ability of ethanol is lower because of Distillation characteristics & RVP of ethanol blended fuel. Reduced Cold & Hot Startability & Acceleration performance. E10 fuel affects material compatibility, engine wear & life. Rubber swelling & metal corrosion increases. International experience confirms up to 3% Increase in Fuel consumption due to lower energy value of ethanol. Tests confirms up to 2% reduction in Power. NOx & Evaporative emissions increases up to 10% even though there is a reduction of CO and CO2 emissions . Misfire (in some cases) In-use vehicles may not be compatible with E10 fuel Ethanol can absorb water; If water enters the fuel tank, it dilutes ethanol, reducing its value as a fuel. It causes problems of phase separation in fuel. Ethanol absorbs dirts & carrries inside the fuel lines and fuel tank, thus contaminating the car engine system.

23 Vehicle Modifications Due to Ethanol Blending - General Trends
Source: Energy Efficiency and Renewable Energy Department, U.S. Department of Energy

24 SIAM – Government Consortium Project
A joint project has been formulated in association with IOC, ARAI, SIAM, MoHI and MoPNG to study the technical feasibility of E10 fuel. Project will have four parts: Part I: Material Compatibility tests Part II: Emission performance tests Part III: Fuel and Lube testing, and Part IV: Hot start and cold start tests In this project, 29 vehicles will be tested; 4 wheelers – 11 nos. 2 wheelers – 15 nos. 3 wheelers – 3 nos. Project proposal had already been submitted to Government.

25 Concerns / Issues to be Resolved – Commercial Aspects
Adequate Ethanol is not available even for 5% blend. Sugarcane crop being seasonal, ethanol availability as well as price become seasonal. Multiple taxes such as state/central excise duty, sales tax, surcharge on S.T., export fee, import fee, permit fee, license fee & administration fee on denatured ethanol complicates inter-state movement. Licensing and Procurement rules not clear because E10 is not listed as declared goods for excise duty. Blending methodology is not standardized Existing Handling, Storage, dispensing & retail Distribution systems are not compatible with E10 blended gasoline Requires some specialized foam technologies to fight E95 & E10 fire hazards.

26 Concerns / Issues to be Resolved – Blending related Issues
Usually, vehicle manufacturers blends ethanol by simple mixing at ambient temperature. Blending at refineries are through some sophisticated controlled systems such as “in- line blenders” (or) “splash blenders” to control any water absorption into fuel. Government need to notify rules related to place of blending i.e., at refineries (or) at dealers & method for ethanol blending, i.e., splash blending (or) in-line blending, etc. There should be some control on the quality of ethanol fuel if ethanol is directly blended with gasoline in tankers. Since ethanol distilleries are available locally in many districts, blending of ethanol is done at dealers site instead of transporting to refineries & again bringing back as ethanol fuel to dealers. This needs review. GASOLINE ANHYDROUS ETHANOL 90% 10% Automatic in-line blending E10 Fuel Fuel Station Storage Tank

27 Concerns / Issues to be Resolved – Taxation Issues
States have different tax structures for Ethanol. Different Taxes & Levies applicable to Denatured Ethanol are: Central Excise Duty State Excise Duty Sales Tax Surcharge on Sales tax Export Fee (between one State to another State) Import Fee (when imported from another State) Permit Fee Licence Fee Privilege Fee (in Karnataka) Turn-over tax (in Maharashtra) Administration Fee Central Govt need to notify ethanol as “declared good” under Central Sales Tax Act, 1956 to have uniform taxation throughout India.

28 Concerns / Issues to be Resolved – Labelling
Ethanol blended petrol to be identified by a suitable “Label” at the dispensing stations. Examples of E10 Labelling followed in USA, Brazil and Australia. Brazil Australia USA USA

29 SIAM’s Demand for E10 Fuel in India
Separate Dispensing at petrol-pumps Same Pricing as petrol Throughout the year Availability throughout India Ethanol Labelling at the point-of-sale On-line blending instead of splash blending Sufficient lead-time to SIAM


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