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A 2 O A 2 nd Opinion, Inc. A 2nd Opinion on Ethanol Denaturant Presented to: Air Resources Board Meeting to Discuss Issues Relating to the California Phase 3 RFG Regulations July 25, 2000 by Cal Hodge, President A 2nd Opinion, Inc.

A 2 nd O pinion on Ethanol Denaturant

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A 2 nd O pinion on Ethanol Denaturant. Presented to: Air Resources Board Meeting to Discuss Issues Relating to the California Phase 3 RFG Regulations July 25, 2000 by Cal Hodge, President A 2 nd O pinion, Inc. RFA Suggested Fuel Ethanol Specifications (6/15/00). - PowerPoint PPT Presentation

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Page 1: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

A 2nd Opinion on Ethanol

DenaturantPresented to:

Air Resources BoardMeeting to Discuss Issues

Relating to the California Phase 3 RFG Regulations

July 25, 2000by

Cal Hodge, PresidentA 2nd Opinion, Inc.

Page 2: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

RFA Suggested Fuel Ethanol Specifications (6/15/00)

Maximum

Sulfur, ppm mass 15

Benzene, vol% 0.10

Olefins, vol% 0.50

Aromatics, vol% 1.70

Page 3: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Implied Denaturant Specifications

are Worse than CaRFG3

Denaturant CaRFG3

Sulfur, ppm mass

91-281 20

Benzene, vol% 2 0.80

Olefins, vol% 10 6.0

Aromatics, vol% 34 25

Page 4: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

WHY.......?

California needs alkylate imports

California needs to export light olefinic aromatic stocks

Page 5: A 2 nd  O pinion   on Ethanol Denaturant

Results: No MTBE + ARB Proposal - Imports

0

50

100

150

200

250

Oxy Waiver 2 Wt. % 2.7 Wt. % No Oxy

Th

ou

s. B

arr

els

Pe

r D

ay

Alkylate Ethanol CARBOB

Source: CEC 2/ 00

Page 6: A 2 nd  O pinion   on Ethanol Denaturant

Results: No MTBE + ARB Proposal - Exports

0

10

20

30

40

50

60

Oxy Waiver 2 Wt. % 2.7 Wt. % No Oxy

Th

ou

s. B

arr

els

Pe

r D

ay

Pentanes FCC Gasoline Other

Source: CEC 02/ 00

Page 7: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Why Accept Denaturant Worse than CaRFG3?

Fuel Ethanol Specification, Maximums

RFA 6/ 15/ 00

A2O 7/ 25/ 00

Sulfur, ppm mass 15 11

Benzene, vol% 0.10 0.04

Olefins, vol% 0.50 0.30

Aromatics, vol% 1.70 1.25

Page 8: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Additional Specifications

To do no harm, the denaturant’s RVP specification needs to be a maximum of 7.0 psi.

Because California needs to import alkylate with a midpoint above the CaRFG3 specifications, I recommendyou not limit midpoint or, if you must, use the cap limit of 220oF.

Page 9: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Proposed Denaturant Specifications Match CaRFG3

RFA A2O CaRFG3

Sulfur, ppm 91-281 20 20

Benzene, vol% 2.00 0.80 0.80

Olefins, vol% 10.0 6.0 6.0

Aromatics, vol% 34.0 25.0 25.0

RVP, psi @NA 7.0 7.0

Page 10: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Blendstocks that Fit

CARFG3

Some desulfurized reformer feeds

Raffinate fromaromatics extraction

Alkylate

Page 11: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Economics

If the clean denaturant costs 20¢/gal. more than the current witch’s brew, it adds one pennyto the delivered ethanol cost.

Most of this comes back as California refiners fine tunethe base stock.

Page 12: A 2 nd  O pinion   on Ethanol Denaturant

A2OA2O A 2nd Opinion, Inc..

Conclusion

Why denature ethanol with undesirable blendstocks when ethanol producers only have to find one tank car of clean denaturant for every 20 tank cars of ethanol shipped to California?

Why import a blendstock you would not import if it were not commingled with ethanol?