Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel...
Transcript of Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel...
![Page 1: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/1.jpg)
Up to Spec!
American Coalition for Ethanol
Annual Conference, August 17, 2017
Kristy Moore
KMoore Consulting LLC
![Page 2: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/2.jpg)
Today’s Presentation Topics
• International Fuel Market Development
• Domestic Market Development
• Fuel Ethanol Technical Advisory Group
• ASTM International efforts
• Regulatory Update
• High Octane Fuels of the Future.
![Page 3: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/3.jpg)
Mexico Energy Reform: Ethanol Opportunity
• 1938 – 2013: Absolute monopoly in the entire oil and gas value chain.
• 2008: Biofuels promotion and development law.
• 2013 Energy reform laws passed. Three new articles and 25 new constitutional acts created.
• 2016: Markets opened for gasoline and diesel imports by private entities.
• 2017: Gradual price liberalization (north to south).
• 2018: Free market.
![Page 4: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/4.jpg)
Comision Reguladora de Energia (CRE) • Mexico Gov’t publishes a fuel specification
once every 10 years. • PEMEX, single oil company, had (has?) no
desire to use ethanol. • CRE posted draft specification Aug. 2016;
many comments submitted. • NOM-016-CRE-2016, National Fuel
Specification Publication October 2016. – Allowance of 5.8% ethanol blends in the “rest of
the country.” – Ban of ethanol in 3 major metropolitan areas
(Mexico City, Guadalajara, Monterrey) • This is due to lack of information / education on
ethanol effects to gasoline and motor vehicles. This three metro areas have significant air pollution.
– First time ethanol allowed in Mexico, ever.
![Page 5: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/5.jpg)
National Fuel Specification Issues
• There were so many voiced concerns, CRE created 3 working groups to discuss concerns.
• CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. – This has been an awesome experience
to watch the government work with industry to improve regulation.
• My collaboration with the U.S. Grains Council to bring experts and education to Mexico.
Our Proposal submitted April 2017 Proposal to Change the NOM with two goals:
#1 Increase the volume of ethanol from 5.8% to 10%.
#2 Remove the restriction on ethanol use in 3 Major Metropolitan Zones.
Justification: air quality, U.S. fuel, fungibility, octane, GHG reductions and lower cost.
![Page 6: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/6.jpg)
Mexico Fuel Regulation Update!
• Emergency Rule to allow E10 blends in rest of country! (June 2017) – Not without legal challenges.
– Opposition from PEMEX, auto and MTBE industry…
• Ban for 3 metro area remains. – IMP is studying E10 vs. Mexico
Magna/ Premium, results due fall 2017.
– Results of this study could change E10 ban.
![Page 7: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/7.jpg)
Next Steps: International
• Mexico market development: ethanol specification, logistics, retail station considerations.
• Ethanol Handbook being translated.
• Identify cache of experts.
Next Country??
![Page 8: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/8.jpg)
Back to Domestic Market Development!
• E15 Market Growing, slowly…
• Regulatory Efforts supporting E15
–Need RVP parity.
• Advancing our goals for higher octane/ higher ethanol fuels.
• Standards and regulations that need addressed.
![Page 9: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/9.jpg)
2012: American Petroleum Institute Map of E15
Restrictions
States With Laws / Regulations Restricting E15
States Not Restricting E15
*Illinois has delayed enforcement of Section 2.1.3 of 2011 HB 130 until May 1, 2013
*Texas adopted most recent version HB 130 effective September 1, 2011
Note: Does not include EPA RVP Waiver for Ethanol in Conventional Gasoline or Federal RFG Areas
Herman & Associates
www.HermanAssociates.com
May 2012
© 2012 Herman & Associates
OR
MO
IA
MN
MT
LA
PA
FL
HI
RI
NE
AK
CA
NV
ME
AZ
ID
WY
CO
UT
NM
TX*
OK
KS
SD
ND
WI
MI
IL* IN
KY
TN
AR
MS GA
SC
NC
VA
NJ
WV
VT NH
MA
CT
DE
MD
DC
OH
SE Maine NY
AL
WA
![Page 10: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/10.jpg)
MT
WY
ID
WA
OR
NV
UT
CA
AZ
ND
SD
NE
CO
NM
TX
OK
KS
AR
LA
MO
IA
MN
WI
IL IN
KY
TN
MS AL GA
FL
SC
NC
VA WV
OH
MI
NY
PA
MD
DE
NJ
CT RI
MA
ME
VT
NH
AK
HI
E15 Regulatory Impediments: Summer 2012
Legend
No regulatory restriction
Progress on impediment
Regulatory Restriction
Pending
![Page 11: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/11.jpg)
MT
WY
ID
WA
OR
NV
UT
CA
AZ
ND
SD
NE
CO
NM
TX
OK
KS
AR
LA
MO
IA
MN
WI
IL IN
KY
TN
MS AL GA
FL
SC
NC
VA WV
OH
MI
NY
PA
MD
DE
NJ
CT RI
MA
ME
VT
NH
AK
HI
E15 Regulatory Impediments: Summer 2017
Legend
No regulatory restriction
Progress on impediment
Regulatory Restriction
Pending
![Page 12: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/12.jpg)
NCWM Annual Meeting
• Annual meeting week of July 16, Pittsburg, PA.
• My two proposals to update ethanol flex fuel labeling marked as voting items had to be withdrawn. – American Petroleum Institute (API) created confusion with the
regulators in their quest to restrict E15 labeling, ethanol flex fuel labeling.
– API is very active opposing any and all efforts for >10% ethanol blends.
• Development of ideas how to best forward our agenda at the National Conference of Weights and Measures.
![Page 13: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/13.jpg)
Fuel Ethanol Technical Advisory Group • Voluntary collaboration of ethanol
industry’s technical experts.
– Open to ethanol industry member.
– No financial obligation (future
research planned…)
– Regular communication on fuel
quality and regulatory issues.
• Build strategy on fuel quality, performance, emissions, and regulatory efforts for advancement of the ethanol industry.
![Page 14: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/14.jpg)
Sulfate Concerns of the Oil Industry
• Suggesting a linear relationship with sulfate salt precipitation with increasing ethanol content.
• Proposing reduction of sulfate specification in ASTM D4806 for increasing ethanol content in gasoline (D4814.)
• Two research projects to address this concern:
– CRC has hired Desert Research Institute to evaluation sulfates in ethanol.
– FETAG is working with NREL to evaluate the potential for sulfate salt precipitation in various gasoline- ethanol blends.
![Page 15: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/15.jpg)
ASTM Standards – Update 2017
• Stakeholder involvement
– Two face-to-face meetings per year,
voting rights throughout the year.
• Balanced stakeholder input
• Producer not more than User +
General Interest
• Levels of participation can vary
• Starts with $75 annual
membership
• Ethanol industry participation up to ~45 voting members, only 15-20 attend the meetings regularly.
• Oil industry filed several comments challenging the voting system.
• Our next steps will be to replace oil industry- legacy chairman positions.
• Move our agenda forward to support commercialization of high octane/ high ethanol fuel blends.
15
![Page 16: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/16.jpg)
ASTM - D02 Ethanol Related Standards
• D4806 – Denatured Fuel Ethanol Specification
• D4814 – “Gasoline” Specification
• D5798 – Ethanol Flex Fuel Specification (Formerly E85)
• D7794 – Blend Practice – Ethanol between D4814 and D5798
• D8011 – Natural Gasoline for D4806 and D5798
• D8076- 100 Research Octane Number Test Fuel for Spark-Ignition Engines
• Very active time at ASTM, standards and specifications changing multiple times each year, this trend is expected to continue.
16
![Page 17: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/17.jpg)
ASTM D02 Meeting • Several important ethanol efforts underway:
– Proposal to incorporate a statement on ethanol fuel blends and vapor pressure. This addresses state fuel regulations that adopt ASTM specs but have limiting language to E10.
– Proposal to expand the current octane methods to ethanol fuel blends above 25% ethanol by volume.
– Developing a test method with Marathon on DRA issues in denaturant/ ethanol flex fuels.
– Several gasoline BOB efforts underway to improve properties for ethanol blending.
– Meeting with several oil representatives to build relationships for export markets.
– Meeting with NREL staff to talk about Co-Optima, emissions, future projects.
![Page 18: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/18.jpg)
Co-Optima Program
• Department of Energy’s Research Program to optimize fuels and engines.
• $30-40 Billion in cost savings due to improved fuel economy.
• 15% of fuels from biofuels by 2035.
• 500,000 new jobs.
• New fuels, technologies by 2025.
• 80% reduction in GHG emissions by 2050.
• Improve fuel economy by 50%.
![Page 19: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/19.jpg)
2016 DOE Co-Optima End of Year
• Thrust I: Improve Spark Ignition efficiency. Identify desirable properties for bioderived or biomass components. 40 candidates. Evaluate the impact of discrete fuel properties.
– Merit of the Fuel Blend: RON/ Octane Sensitivity/ Flame Speed/ Heat of Vaporization/ Distillation/ Particulate Emissions.
– Ethanol is faring well in these comparisons.
• Thrust II: Medium and Heavy Duty Engines and Advanced Compression Ignition.
![Page 20: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/20.jpg)
Ag Auto Ethanol
• Certification Fuel
• Engine Vehicle Testing
• Vehicle Credits
• Octane Team
• Specifications and Regulations
![Page 21: Up to Spec! - Ethanol ACE Conference 2017 Updated.pdf · 2017-08-22 · •CRE Work Groups: Fuel Quality, Fuel Markets and Public Health & Environment. –This has been an awesome](https://reader033.fdocuments.in/reader033/viewer/2022050119/5f4ff5f30901d3156d11d1d1/html5/thumbnails/21.jpg)
QUESTIONS?
THANK YOU!
Kristy Moore
KMoore Consulting LLC
Email: [email protected]
Phone: 309.275.9433