1. Fuel Specifications & Alignment in Asia
XIV Refinery Technology Meeting
Trivandrum, India
20-22 September 2007

2. Worldwide Road Transport Fuel Demand (2005)
Source: Hart’s World Refining and Fuels Service, 2006

3. Growth of Vehicles in Asia Driving Demand
Source: ADB Policy Guidelines
to Reduce Vehicle Emissions

4. Worsening Air Pollution in Major Cities in Asia
Major Asian cities are among the most polluted in the world
Particulate Matter is a major problem
Annual Mean Pollutant Concentration of Selected Asian Cities, 2003
Source : CLSA & Civic Exchange, 2005

5. Contribution of the Transportation Sector to Air Pollution
Transportation sector is the leading source of NOx, PM, CO, SO2 and volatile organic compounds all of which have significant negative effects on public health.
In addition CO2 emission is now a growing concern due to climate change.

6. Automobile Exhaust Emissions (1 of 2)
CO - Carbon monoxide
– Produced by incomplete combustion.
– Absorbed by the blood reducing its capacity
to carry oxygen.
NOx - Oxides of Nitrogen - 3 gases
– Nitric Oxide (NO)
– Nitrous Oxide (N2O)
– Nitrogen Dioxide (NO2)
– Contribute to smog formation and can cause
problems for people with respiratory illness

7. Automobile Exhaust Emissions (2 of 2)
HC - Hydrocarbons
– Fuel constituents as result of incomplete
combustion.
– Contribute to ozone formation and some HCs
are classified as carcinogens.
PM - Particulate Matters
– Tiny particles with solid core
– PM10 are smaller than 10 millionths of a
meter in diameter
– Presumed to affect cardiovascular,
respiratory and asthma sufferers

8. How the Oil Industry & Automakers addresses Air Quality Concerns
Relationship between air quality, vehicle emissions, engine technology and fuels have been researched by the oil industry and automakers
Improvements in vehicle technology and better fuel quality have resulted in lower tailpipe emission contributing to better air quality worldwide.
How much further can existing vehicle technology and conventional fuels be improved to meet continued air quality and growing CO2 concerns ?

9. Worldwide Fuel Specifications
Euro Standards
US Standards – ‘Boutique Fuels’
Japanese Standard
Worldwide Fuel Charter

10. Evolution of the Euro Standards
The Auto-Oil Programme (AOP) I & II was initiated to improve air quality in the EU.
The two AOPs have resulted in :
Tighter emission standards
Improved procedures for Inspection & Maintenance
Lead phase out
New petrol and diesel fuel quality standards – “Euro Standards”

11. Euro Standards – Key Specifications for Petrol
Source: International Fuel Quality Center

12. Emission Levels from Petrol Driven Passenger Cars
Better petrol fuel standards and new emission control technologies has significantly reduced tailpipe emission of harmful air pollutants.
Euro1
Euro2
Euro3 HC
NOx CO 1 2 3
0.5
1.0 EM
TWC(13R)
1O2S
g/km
S/C(7R)
TWC(9R)
OBD
2O2S
S<50 ppm
S<150 ppm
S<500 ppm
Euro4

13. Petrol Quality Effect on Emissions

14. Euro Standards – Key Specifications for Diesel
Source: International Fuel Quality Center

15. Emission Levels from Diesel Passenger Cars
Similarly for diesel vehicles, tailpipe emission of harmful air pollutants in particular PM can be reduced with low sulfur fuels and new emission control technologies.
Euro1
Euro2
Euro3
Euro4 HC
NOx CO 1 2 3
0.5
1.0 PM
0.05
0.10
0.15 VE
EGR OC EM CR
g/km
S<50 ppm
S<350 ppm
S<500 ppm

16. Diesel Quality Effect on Emissions
Diesel fuel-change
Reduction of:
Poly-Aromatics
Back End Distillation (T95)
Increase of ... CO
Sulphur HC
NOx
Particulates
+ / ++
++ / o
+++/++
+++/+
Vehicle - Emissions LDV / HDV
Density
++ / -
++ / --
Cetane Number o
? / o
o / +
- / o
- / + +
+ / o
o / -
- / o
- / -- }
Effect + ++
+++ o - --
---
2-10 %
10-20 %
> 20 %
Improvement or
Deterioration
2 %

17. Air Quality Improvements in EU
As a result of technological innovations and better fuel quality, air quality in Europe has significantly improved and will continue to improve in the future.
Emissions from Road Transport in Europe
Source: Auto Oil Program Report

18. Future Developments in the EU
Sulphur reduction – presence of sulfur hampers the development of exhaust after treatment technologies.
Increase in the usage of oxygenates (ethers – MTBE and ETBE, alcohol – ethanol)
Reduction in Polyaromatic hydrocarbon content of diesel
Biofuels - biodiesel

19. Global Fuel Quality Status
Lead
Removal
Volatility
Controls
&
Oxygenate
Introduction
Initial
Benzene
Sulfur
Reduction
Olefin &
Aromatic
Content
Limits
Elimination
Additional
Composition of
Renewable
Fuels
(Biofuels)
Objective:
Control Emissions of Traditional Air Pollutants
CO2 Reduction
North
America EU
Myanmar
Vietnam Philippines
Malaysia
Singapore
Thailand
China
Japan
South Korea
Taiwan
We have seen the level of demand growth expected in the region and discussed the impact that this will have on refiners and the magnitude of the investment that refiners will have to make to produce not only higher volumes but also substantially cleaner fuels. It is no secret that Asia has long suffered with unacceptable air pollution levels in many of its large urban centers.
Source: International Fuel Quality Center

20. Fuel Specifications in Asia – Current Status
Different countries at different levels of development
Most countries adopt Euro model as it is a proven model and easy to understand
Most countries in Asia have phased out lead and are at Euro 2 fuel quality level
China and India have two tier fuel standards, a more stringent one in major cities.

21. Emission Standards are Getting Tighter in Asia

22. Fuel Quality Roadmaps in Asia

23. Sulphur Level in Fuels across Asia

24. Fuel Specifications Trends in Asia
Most countries have roadmaps up to 2010
Korea, Singapore, Taiwan and Hong Kong already have Euro 4 fuels
China, India and Thailand to have Euro 4 equivalent fuels by 2010/2012
Partnership for Cleaner Fuels and Vehicles (PCFV) has adopted an objective of 50 ppm for sulfur levels in petrol and diesel by 2010 for Asian countries

25. Fuel Specifications Trends in Asia
Leapfrogging from Euro 2 to Euro 4 fuel & emission standards are being considered due to good technical and financial sense
Refinery expansions are being based on Euro 4 standards
Some Asian countries where air pollution from transport is severe are considering Euro V standards
Incentives given to produce cleaner fuels
Fuel quality monitoring is essential, especially where different fuel standards exist in the same country

26. Harmonized Standards across Asia
Reduction in complexity for the oil industry and automakers
Security of supply
ASEAN- METI(Japan) Economic and Industrial Cooperation Committee (AMEICC) Working Group on Cleaner Fuels has called for non binding commitment for Euro 2 in 2006 and Euro 4 in
Alignment of Standards to Euro 4 Standards not expected until after 2012.

27. Share of Biofuels in Road Transport Fuel Consumption
Source : OECD/IEA 2006

28. Clean Fuels – Cleaner Air
Clean fuel enable the after treatment technologies needed to reduce exhaust and greenhouse gases
Cleaner fuel can immediately reduce air pollution levels across the entire vehicle population