1. Hydrous Ethanol in Gasoline “Wet is better than dry”
World Biofuels 2010 – Seville

2. Why We’re Here
Introduction of hydrous ethanol blending as a technology
Hydrous ethanol instead of anhydrous ethanol in gasoline
Improves economics
No need to dry ethanol above 95% (less investment and on average 14% less energy according to DOE)
Increased engine performance by a little “water injection”
Lowers carbon footprint of bio-ethanol
Corn ethanol energy ratio would go up from 1.35 to 1.6
Reduces corrosion of aluminum by ethanol
Enables higher ethanol blends
Cleaner engines
Easier to transport and store
Foreign Oil Redux
Makes ethanol blending above E10 more economical 2

3. Conventional wisdom in blending
Gasoline and water do not mix (2-liquid-phase system).
Ethanol has to be free of water to be blended in gasoline – when blended in small quantities.
Blends of dry ethanol with gasoline will pick-up water, e.g. from air humidity, water transportation.

4. Composition of ethanol containing fuels
Code E5
E10
E15
E25
E85
E100
Composition
max 10% anhydrous ethanol
max 25% anhydrous ethanol
~7% water
max 5% anhydrous ethanol
max 15% anhydrous ethanol
100% hydrous ethanol (contains about 7% water)
max 85% anhydrous ethanol
min 95% gasoline
min 90% gasoline
min 85% gasoline
min 75% gasoline
min 15% gasoline
Countries
Western Europe today
USA today (Western Europe in near future)
USA in near future
Brazil
USA / Europe
Brazil
Gasoline blends for use in regular cars
Flex Fuel
Vehicles

5. Wet Corrosion Tests by Sasol
Sasol’s wet corrosion tests (ASTM D665) of E2 and E10 on aluminum parts. Wet corrosion is corrosion in the presence of water.
Sasol found: “Both the base gasolines and the ethanol containing fuels (at 2% ethanol content) were corrosive during the wet corrosion test. These fuels required additisation in order to prevent wet corrosion. At 10% ethanol (bioethanol and synthetic ethanol) none of the fuels were corrosive in the wet corrosion test.”
Presented at the XVIII International Symposium on Alcohol Fuels
(Delhi – India ISAF 2010)

6. Weight Percent Ethanol Weight Percent Gasoline
Phase behavior
Weight Percent Ethanol
20%
40%
60%
80%
ETHANOL
WATER
20%
40%
60%
80%
Weight Percent Water
stability
instability
GASOLINE
20%
40%
60%
80%
Weight Percent Gasoline

7. Capture H2O

8. Patents: E1-E95 with 1-10% water on ethanol Use Blends

9. Confirmation one can use hydrous ethanol
Confirmation example: Shell - Amsterdam Sept. 2006
Straight gasoline: haziness observed at -5ºC
Straight gasoline + 5% hydrous Ethanol (hE5): haziness observed at -34ºC
10, 15 and 20% hydrous Ethanol: haziness could not be detected at -60ºC
Phase separation is not observed in any of the above blends!

10. Water Tolerance Standard Withdrawn
Withdrawn Standard: ASTM D Standard Test Method for Water Tolerance (Phase Separation) of
Gasoline-Alcohol Blends (Withdrawn February 2007)
Developed by Subcommittee: D02.A0.01
“This standard is being withdrawn without replacement; it lacks a precision statement and no acceptable precision statement could be developed from the round-robin program.”

11. CONCAWE – 2008 Ethanol Report Phase Stability Hydrous Ethanol Blends

12. CONCAWE – 2008 Ethanol Report Effect of TBA on Phase Stability

13. C4 alcohols instead of MTBE or ETBE
C4-olefins can also be hydrated using acid catalysts:
Isobutene: CH2=C-(CH3)2 + H2O  CH3-CH(OH)-(CH3)2 (TBA)
1-butene or 2-butene:
H2C=CH-CH2-CH3
+ H2O  CH3-CH(OH)-CH2-CH3 (IBA)
H3C-CH=CH-CH3

14. Test Observations hE15
Observations hE15 test car, km (62000 miles)
Cleaner engine interior, no engine deposits
No damage to seals, gaskets, fuel system whatsoever
Note: Test car is not modified or optimized, just a standard VW Golf V as could be bought at your local car distributor! 14

15. hE15 Performance Evidence
VW Golf FSI, hE15 test car, 100,000 km (62,000 miles)
SGS (Austria) measured a 2-3% lower fuel consumption compared to regular gasoline without any engine tuning
Vespa 4-stroke 50 cc on hE15
15% lower fuel consumption (no motor management system)
Cleaner spark plug, no engine deposits
Kreidler 2-stroke 50 CC hydrous vs. anhydrous
Reduced emission of nanoparticles
Higher mileage
Higher maximum speed with hydrous ethanol 15

16. 2-stroke motor cycle tests: nanoparticles
Czerwinski, J. et al., Emissions of 2-Stroke Small Motorbike Kreidler 50cc with Ethanol Blends, Berner Fachhochschule, Switzerland, 2009

17. 2-stroke motor cycle tests: max. speed
Czerwinski, J. et al., Emissions of 2-Stroke Small Motorbike Kreidler 50cc with Ethanol Blends, Berner Fachhochschule, Switzerland, 2009

18. Further R&D in Germany Area of interest Euro95 60% 80% 100% 120% 140%
Fuel consumption
120%
140%
160% E0
E20
E40
E60
E80
HE15
E100
Ethanol
E85

19. Price Difference
Source: 19

20. Advantages of hydrous ethanol:
Cheaper
Higher mileage
Better performance
Less corrosive
Easier to produce
Easier to handle & store
Fewer CO2 emissions
Better air quality (fewer CO, HC, nano-particles and NOx)
Could be used in both existing engines and FFV’s
Helps Foreign Oil Redux 20

21. 2008 Launch of hE15 in the Netherlands
July 7th, 2008:
Official market introduction by
Minister of Environmental Affairs Mrs. Cramer
hE15 21

22. Current Status Netherlands since April 2008:
hE15 sold at public gas stations
no fuel-related complaints
standardization in process
2010 Europe introduction of other hydrous blends like hE10 and hE15 and hE85
New York City Fleet hE15/hE20 and hE85 pilot 22

23. Business Model SHE Blends Holding (IP owner)
HE Blends - International licensing to:
Oil Majors
Independent Retailers
Hyper markets
Cities
Governments
HE & SHE are looking for partners