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
SIAM
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
SIAM
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 2003. 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”
SIAM
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
01.11.2006
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 200820 %
by 2017 for the blending of biofuels – bio-ethanol and bio-diesel
SIAM
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 ethanolblended-petrol, as per Bureau of Indian Standards specifications, in the following States and
Union Territories, namely:-20 States
Sl. No.
1
2
3
4
5
6
7
8
9
10
States
Andhra Pradesh
Bihar
Chhatisgarh
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jharkhand
Karnataka
Sl. No.
11
12
13
14
15
16
17
18
19
20
States
Kerala
Maharashtra
Madhya Pradesh
Orissa
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Uttaranchal
West Bengal
Sl. No.
1
2
3
4
Union Territories
Daman and Diu
Dadra and Nagar Haveli
Chandigarh
Pondicherry
4 UTs
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.
SIAM
E10 Ethanol Fuel Specifications
released by BIS
SIAM
10% Ethanol Blended Gasoline Specifications
• In India, IS 2796-2000 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
SIAM
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)
SIAM
Ethanol Content
Ethanol Content (Oxygenates)
Countries
India
Grade
BS II
BS III
BS IV
vol %
in Normal Gasoline
5 max
China
in E10 Fuel
8 (+/-) 2
10.0 (+/-) 2.0
Australia
-
10 max
Brazil
1 max
24 (+/-) 1
(E22 fuel)
Thailand
9 - 10
South Africa
7.5 max
9.5 max
New Zealand
<1
10 max
France
California
5 max
10 max
10 max
Japan
3 max
No E10 fuel
USA
9 to 10
Canada
WWFC
All Categories
Chile
Europe
Proposed
petrol
(before 2005)
Bio-fuel petrol
0.5 max
No E10 fuel
-
up to 10
up to 5
No E10 Fuel
5 max
10 max
SIAM
Reid Vapour Pressure
•
Recommendation: E10 fuel can have same RVP as E5 values as specified in Indian Standard
IS 2796-2000
Reid Vapour Pressure
Countries
India
Grade
BSII
BS III
BS IV
China
PH-II
PH-III
In Gasoline
kPa
kPa
35-60
(35-67 for ethanol blended petrol) @ 38 o C
60 max
(67 max for ethanol blended petrol) @ 38 o C
60 max
35 - 67
Proposed
67 max
88 max (Sep 16 to Mar 15)
74 max (Mar 16 to Sep 15)
88 max (Sep 16 to Mar 15)
72 max (Mar 16 to Sep 15)
69 max @ 37.8 o C
o
Thailand
South Africa
New Zealand
France
Class A
Class D/D1
California CaRFG Phase-2
CaRFG Phase-3
Japan
USA
Category 1, 2, 3
&4
Chile
Europe
67 max
45-62 @ 37.8 o C
Brazil
Canada
WWFC
In E10 Fuel
(before 2005)
Bio-fuel petrol
62 max @ 37.8 C
45 - 75
65-90 kPa
72-90 kPa
45-60 kPa
60-90 kPa
48 max
44 to 50 kPa
44 to 78 kPa @ 37.8 o C
No E10 fuel
48.0 - 55.8
55 to 62.8
41 - 72
45-60 (for ambient temperature > 15
55-70 (for ambient temperature 5-15
69 max (Winter);
86 max (Summer)
60.0 kPa max (summer period)
No E10 fuel
C)
o
C)
No E10 Fuel
o
67.76 kPa max (summer period)
SIAM
Vapour Lock Index (or) Flexible volatility Index
•
Recommendation: can be same as existing Gasoline/E5 fuel.
Vapour Lock Index (or) Flexible Volatility Index
[ (VLI=10RVP+7 E70) ]
Countries
India
Grade
BSII
BS III
BS IV
of Gasoline
no units
Summer: 750 max
(900 max for 5% ethanol blended
petrol)
Other Months: 950 max
(1050 max for 5% ethanol blended
petrol)
of E10 Fuel
no units
Summer: 900 max
Other Months: 1050 max
Summer: 750 max
Other Months: 950 max
Summer: 950 max
Other Months: 1050 max
South Africa
Summer: 950 max
Winter: 1000 max
Summer: 950 max
Winter: 1000 max
New Zealand
1150 max
Summer: 1150 max
Autumn & Spring : 1200 max
Winter: 1300 max
-
-
1150 (D1)
1150 (D1)
France
Class A
Class D/D1
P
R
O
P
O
S
E
D
SIAM
New Properties/parameters available in Regulations of Other Countries
1.
Distillation
14.
Water soluble acids or alkalis
- T10 (10% evaporation temperature)
15.
Flash point
- T50 (50% evaporation temperature)
16.
Carburettor cleanliness
- T90 (90% evaporation temperature)
17.
Particle contamination, size
distribution
18.
Intake valve sticking
19.
Combustion chamber deposits
- D.I. (Distillation index)
[= (1.5 * T10) + (3 * T50) + T90
+ (11 * mass% of oxygen) ]
2.
Existent unwashed Gum
- Method I (ASTM D6201)
3.
Water content
- Method 2 (CEC-F-20-A-98)
4.
Mercaptan sulfur content
- Method 3 (TGA FLTM BZI154-01)
5.
Iron
20.
Deposit control additives
6.
Phosphorus
21.
7.
Potassium
Vapour-Liquid ratio temperature
(TV/L=20)
8.
Manganese
22.
Silver strip corrosion
9.
Silicon
23.
Total oxygenates
10.
Sediments
24.
Ether oxygenates
11.
Mechanical impurities
- Di-isopropyl ether (DIPE)
12.
Detergency
- Methyl tert-butyl ether (MTBE)
13.
Kerosene
- Ethyl tertiary Butyl ether (ETBE)
Are we going to
recommend any
specs for these
properties for
E10 Fuel?
SIAM
Indian Vehicle Parc
Passenger
Vehicles
13%
Commercial
Vehicles
14%
2006
Two
Wheelers
73%
Total Registered Vehicles ~ 87 Mn
Source: Govt. of India Statistics of Registered Vehicles & SIAM estimates
SIAM
Fuel logistics Scenario in India
Surplus / (Deficit) –
Y 2003/04
Diesel
-
6.18 MMTPA.
Gasoline
-
2.98 MMTPA.
LPG
-
(2.18) MMTPA
Kerosene
Mkt)
-
Nil (after stopping import by parallel
ATF
-
1.66 MMTPA
Gasoline & Diesel remain surplus for next 10 years while LPG
& Natural Gas continue to be deficit.
Source: Petrofed
SIAM
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 }
SIAM
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
SIAM
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
SIAM
Test Results :DRIVEABILITY ( Overall DR )
0~5 scale Rating
88 ON
E-05
E-10
A
A-a
A-0.5
OK

B-b
B-0.4
OK

DR
Model ‘A’
Judgment
B
Model ‘B’
Judgment
Legends:  - Drop in rating
Remarks :- 0.5-1.0 rank drop is felt by Customer
SIAM
10% Ethanol-Blended Gasoline
Existing Scenario ( All vehicles upto E-05 compliant ) :
OK
NG
Model Category
Parameter
Existing Models
Veh Perf Parameters :
- Power
- Mileage ( IDC )
- DR
- Gradeability
- Knocking
E-0
( Ethanol 0% Blend )
E-05
( Ethanol 5% Blend )
E-10
( Ethanol 10% Blend )
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
CO : 15 ~ 40% drop ; HC+Nox : -2 ~ +9%
CO - 10 ~ 20% drop ; RPM - 2 ~ 5% drop
CO : 40 ~ 50% drop ; HC+Nox : 2 ~ 26% incr
CO - 40 ~ 60% drop ; RPM - 5 ~ 7% drop
- Rubber
- Plastic
- Aluminium
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Sheet Metal
- Paint
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Gets hardened / Toughness to be improved
- Satisfactory
- Slightly more deposition on piston / cyl head /
carb insulator etc due to A/F characteristics
- Satisfactory
- Peel off / Toughness to be improved
Marginal drop observed
Overall satisfactory
2 ~ 3% drop
4 ~ 7% drop
Drop
Drop
Increases
Requires Carb re-jetting
(for DR , FE ,
Knocking) + Em
C/Measure
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
- Satisfactory
Veh Em Parameters :
Mass Emission
Idle Em / RPM
Components Wear :
Remarks :- Drop in Vehicle Perf / DR parameters
SIAM
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
SIAM
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
SIAM
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.
SIAM
Vehicle Modifications Due to Ethanol
Blending - General Trends
Source: Energy Efficiency and Renewable Energy Department, U.S. Department of Energy
SIAM
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.
SIAM
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.
SIAM
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 “inline 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
SIAM
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.
SIAM
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.
USA
USA
Brazil
Australia
SIAM
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
SIAM
THANKS
SIAM