1. Advances in Diesel Fuel Technology Jim MacNeil DRD DRD ADDITIVES LLC

2. Agenda Why is diesel fuel interesting? What is diesel fuel? What are the problems with diesel fuel? What is biodiesel? New technology

3. Why is diesel fuel interesting? 2006 US diesel fuel consumption was 190 billion liters (50 billion gallons) Major consumption in trucking industry

5. What is diesel fuel? Hydrocarbon petroleum fraction Main component is cetane (C 20 H 42 )

6. Petroleum refining

7. Composition 40-50% cetane 20-40% aromatic compounds Remainder saturated cyclic compounds, shorter and longer aliphatic species, others Additives –Cetane improvers –Detergents –Lubricity additives –Pour point depressants

8. Sulfur In 2006, Ultra-Low Sulfur Diesel (ULSD) became mandatory –Sulfur content reduced from 300+ ppm to <15 ppm by 2010 Refiners receive tax credits for early compliance –Reduces major cause of acid rain –Corresponding reduction in lubricity

9. What problems are associated with diesel fuel? Freezes at low temperatures –Special winter blends available Emissions –Nitrogen oxides –Hydrocarbons –Particulates

10. Combustion C 20 H 42 + O 2 H 2 O + CO 2 Fuel + air H 2 O + CO 2 + CO + NO x + particulates + hydrocarbons NO x and hydrocarbons cause smog Particulates linked to cancer

11. Smog

12. Particulates

13. Biodiesel Methyl ester of fatty acids known as B100 –Made from natural oils and greases –Renewable resource –Considered a fuel additive –Used as a blend with conventional diesel fuel Levels range from 2-20% (B2-B20) –Reduces particulate emissions –Improves lubricity –Freezes in cold weather –Increases NO x emissions –Lowers output horsepower

14. Other Additives Cetane improver –2-Ethylhexyl nitrate 2-EHN Improves energy output of fuel

15. Other Additives Detergents –Aromatic compounds and other impurities cause deposits on internal engine components and fuel injectors –Deposits reduce air flow, reduce efficiency of air-fuel mixing –Long-chain hydrocarbons with polar end groups

17. Other Additives Lubricity additives –Lard oils and fatty acids Pour point depressants –Complex polymers –Enable use of diesel fuel at low ambient temperatures –No technology currently available for B100 B100 biodiesel frozen in storage tanks throughout winter

18. Combustion Fuel + air H 2 O + CO 2 + CO + NO x + particulates + hydrocarbons Can combustion process be changed to reduce byproducts?

19. New Technology

20. Catalysis What can selectively catalyze the reaction of oxygen with fuel? Catalyst must not cause additional environmental problems –MMT was a choice for replacement of lead compounds (TEL) but caused increased manganese levels Proprietary new catalyst technology avoids these issues

21. Effect With proprietary catalyst technology: –3% improvement in fuel economy –6% reduction in NO x emissions –12% reduction in particulates A 500 unit fleet will contribute 250 TONS less NO x per year and 6000 pounds less particulates A single school bus will emit 30 pounds less particulates. Compatible with biodiesel blends –Overcomes biodiesel performance limitations

22. DRD DRD ADDITIVES LLC