Jet Fuels of the Future The Future is Now

1. Jet Fuels of the Future�The Future is Now!

2. Scope Where are we now? What is a �clean� fuel? Options for clean jet fuels? What are the issues limiting development of future jet fuels?

3. Where Are We Now? Kerosene-based fuels�for the next 50+ years? Mostly crude oil derived Small proportion �synthetic� (ie non-crude oil derived) Most tightly specified fuel produced in the refinery Defined by safety / operational / cost requirements Regionally different specifications Limited range of approved additives On the fringes of environmental legislation ? IPCC Special Report �Aviation and the Global Atmosphere�, 1999 Reductions in spirit of Kyoto Agreement Self Regulation? Equipment under development and in the field will require a kerosene type fuel for many years to come. Military weapon system development may require different fuels for special applications � JP-8+100, JP-8+225, JP-900, Endothermic fuels, chemically reacting fuels�some of these will be very different from fuels today, but they are all hydrocarbon based.Equipment under development and in the field will require a kerosene type fuel for many years to come. Military weapon system development may require different fuels for special applications � JP-8+100, JP-8+225, JP-900, Endothermic fuels, chemically reacting fuels�some of these will be very different from fuels today, but they are all hydrocarbon based.

4. Performance Properties Controlled by the Jet Fuel Specification: These requirements have not changed much in 50 years. What will be in the box for future jet fuels? Assumed properties � lubricity, thermal conductivity, dielectric constant�?These requirements have not changed much in 50 years. What will be in the box for future jet fuels? Assumed properties � lubricity, thermal conductivity, dielectric constant�?

5. Aviation contributes 12% to world transport CO2 emissions (equivalent to approx. 2% of fossil fuel global CO2 emissions) �No practical alternatives to kerosene -based fuels for commercial jet aircraft for the next several decades� Reducing sulfur content will reduce SOx emissions and sulfate particle formation (implicated in contrail and cirrus cloud formation) Overall environmental impacts and environmental sustainability of hydrogen or any other alternative fuels have not been determined IPCC Special Report on �Aviation and the Global Atmosphere� (1999): Fuel-related Conclusions Biggest �threat� to imposed changes to the jet fuel specification is from alleged environmental concerns. However, the formation of persistent contrails is closely linked to atmospheric conditions (humidity & temperature). Is aviation affecting the global climate? If yes, by what magnitude?Biggest �threat� to imposed changes to the jet fuel specification is from alleged environmental concerns. However, the formation of persistent contrails is closely linked to atmospheric conditions (humidity & temperature). Is aviation affecting the global climate? If yes, by what magnitude?

6. Self Regulation Specification authorities act ahead of anticipated changes to fuel properties imposed by regulatory agencies Sulfur is the target in all fuel specifications US Military proposal � 2000 ppm max Defence Standard proposal � 2000 ppm max IATA proposal � 2500 ppm max ASTM proposal - ?? Will reducing S to these levels make any difference? The intent of the specification authorities is to cap sulfur levels where the quality data suggests the current levels are. In other words, prevent sulfur levels from creeping up towards the spec max. The danger of lowering the sulfur level could be regional shortages and higher fuel costs. Perhaps the best place for the sulfur is in the fuel versus the energy costs associated with its removal. Experts suggest that sulfur levels below 100 ppm are required to see real reductions in emissions. The intent of the specification authorities is to cap sulfur levels where the quality data suggests the current levels are. In other words, prevent sulfur levels from creeping up towards the spec max. The danger of lowering the sulfur level could be regional shortages and higher fuel costs. Perhaps the best place for the sulfur is in the fuel versus the energy costs associated with its removal. Experts suggest that sulfur levels below 100 ppm are required to see real reductions in emissions.

7. What are CLEAN FUELS? Clean fuels produce �less� pollution when burned The pollutants of concern include SOx, NOx, CO, UHC, particulates and others that form post-combustion Low sulfur fuels produce less SOx, therefore less particulate emissions and contrails/cirrus clouds?? NOx, UHC, CO are not directly related to sulfur content Clean fuels do not refer to a fuel free from dirt & water. Combustion of fossil fuels results in the formation of water vapor and CO2 plus undesirable species. S comes from the fuel, N from the air and UHC/CO from inefficient combustion. The undesirable species cause acid rain, ozone formation (smog), particulates harmful to human health, contrail and cirrus cloud formation implicated in global climate change. Right or wrong, sulfur level usually defines a �clean� fuel. NASA program will hopefully answer some of the questions re the link between sulfur content & type and emissions. The main reason for sulfur reductions in gasoline and diesel is to prevent the catalyst in the catalytic converters from being poisoned.Clean fuels do not refer to a fuel free from dirt & water. Combustion of fossil fuels results in the formation of water vapor and CO2 plus undesirable species. S comes from the fuel, N from the air and UHC/CO from inefficient combustion. The undesirable species cause acid rain, ozone formation (smog), particulates harmful to human health, contrail and cirrus cloud formation implicated in global climate change. Right or wrong, sulfur level usually defines a �clean� fuel. NASA program will hopefully answer some of the questions re the link between sulfur content & type and emissions. The main reason for sulfur reductions in gasoline and diesel is to prevent the catalyst in the catalytic converters from being poisoned.

8. Future Jet Fuels�Will they be �Clean�? Jet fuel is not DIRTY, but� Sulfur levels typically much higher than ground fuels Reducing sulfur levels < 500 ppm will reduce / remove other bad actors � aromatics, nitrogen & oxygen containing species, trace metals A combination of changes to fuel properties along with improvements in combustion technology are needed to achieve lower emissions Replace �old� technology with �new� The average sulfur level in jet fuel is under 1000 ppm (spec max is 3000 ppm). This is much higher than the permissible levels in gasoline and diesel fuel with the new regulations coming into affect. Conventional hydro-treating or hydro-desulfurizatio can reduce sulfur levels by 90% in usual practice. Simultaneously, HDS results in reductions of nitrogen & oxygen compounds, saturation of olefins and partial saturation of aromatics. Most of these changes are beneficial to quality and emissions reductions, however, HDS also results in loss of natural lubricity compounds & antioxidants that retard peroxide formation. The low sulfur regs for ground fuel will in many cases consume all the hydro-treating capacity resulting in rising sulfur levels in jet. In some cases, all products will benefit if there is excess HDS capacity. More merox units will likely be installed to produce jet which means sulfur levels may also rise.The average sulfur level in jet fuel is under 1000 ppm (spec max is 3000 ppm). This is much higher than the permissible levels in gasoline and diesel fuel with the new regulations coming into affect. Conventional hydro-treating or hydro-desulfurizatio can reduce sulfur levels by 90% in usual practice. Simultaneously, HDS results in reductions of nitrogen & oxygen compounds, saturation of olefins and partial saturation of aromatics. Most of these changes are beneficial to quality and emissions reductions, however, HDS also results in loss of natural lubricity compounds & antioxidants that retard peroxide formation. The low sulfur regs for ground fuel will in many cases consume all the hydro-treating capacity resulting in rising sulfur levels in jet. In some cases, all products will benefit if there is excess HDS capacity. More merox units will likely be installed to produce jet which means sulfur levels may also rise.

9. Options for Cleaner Jet Fuels Significantly reduce max sulfur content Reduce max aromatic content Eliminate the higher boiling components Additives Synthetic fuels There are a number of options available to produce cleaner jet fuels, however, all of the options come at a price�literally! Reducing sulfur content also results in reductions to other heteroatomic species, but hydro-treating is expensive and typically costs 20X more than chemical treating. Reducing aromatic content, particularly naphthalenes results in a cleaner burning fuel (less soot), but severe hydro-treating or careful crude selection is required. Remove the higher boiling components (lowest volatility, highest viscosity & surface tension) � Jet A vs. Jet A-1, but this option can reduce yield by several percent. Additives provide much promise at a more reasonable cost, but typically affect other properties and take years to approve at significant cost. Synthetic fuels, e.g., GTL products, offer clean blending stocks or as produced clean fuels.There are a number of options available to produce cleaner jet fuels, however, all of the options come at a price�literally! Reducing sulfur content also results in reductions to other heteroatomic species, but hydro-treating is expensive and typically costs 20X more than chemical treating. Reducing aromatic content, particularly naphthalenes results in a cleaner burning fuel (less soot), but severe hydro-treating or careful crude selection is required. Remove the higher boiling components (lowest volatility, highest viscosity & surface tension) � Jet A vs. Jet A-1, but this option can reduce yield by several percent. Additives provide much promise at a more reasonable cost, but typically affect other properties and take years to approve at significant cost. Synthetic fuels, e.g., GTL products, offer clean blending stocks or as produced clean fuels.

10. GTL � The Future of Clean Fuels? GTL may be the future of clean fuels, bith ground and aviaion fuels. Most if not all of the oil majors have significant GTL projects underway. A catamaran style floating production, storage & offtake plant for GTL might be feasible in benign waters (Angola). Syntroleum�s GTL barge design is nearing completion and will produce a single battlefield fuel (a synthetic JP-5/8 fuel for military diesel, turbine and fuel cell applications). Soaring natural gas prices (especially in North America) and technology evolution help explain renewed enthusiasm for gasification of coal, petroleum coke, wastes, biomass or other materials for "clean" electricity, chemicals and fuels. GTL may be the future of clean fuels, bith ground and aviaion fuels. Most if not all of the oil majors have significant GTL projects underway. A catamaran style floating production, storage & offtake plant for GTL might be feasible in benign waters (Angola). Syntroleum�s GTL barge design is nearing completion and will produce a single battlefield fuel (a synthetic JP-5/8 fuel for military diesel, turbine and fuel cell applications). Soaring natural gas prices (especially in North America) and technology evolution help explain renewed enthusiasm for gasification of coal, petroleum coke, wastes, biomass or other materials for "clean" electricity, chemicals and fuels.

11. Primary Energy Resources: Which Gas Can Be Brought to Market?

12. Barriers to Overcome:Evolution not Revolution Safety Commercial Technical Inertial / tradition / logistical Legacy aircraft / engines Conflicts with other refinery products and processes Existing distribution systems � lack of incentive if changes not mandated Specifications / approval processes Safety is aviation is paramount in aviation � no changes will be made without a thorough and complete review of the potential consequences due to a spec change. Resistance to change based on the commercial costs of clean fuels. For example: American Way Magazine, Aug. 1, 2004 � �Pain at the Pump�. Every cent increase in the price of jet fuel costs AA ~$33 million annually. AA�s fuel expense represented ~20% of their total costs, making it the second largest cost after wages & benefits. Technical � The need to develop improved, less costly, more efficient clean fuel technologies to provide demand. Old engine technology will still �pollute� even with cleaner fuels. No incentive for individual refiners to develop cleaner fuels since jet fuel is commingled in pipelines and in airports. Approval process for non-traditional (GTL for example) take many years.Safety is aviation is paramount in aviation � no changes will be made without a thorough and complete review of the potential consequences due to a spec change. Resistance to change based on the commercial costs of clean fuels. For example: American Way Magazine, Aug. 1, 2004 � �Pain at the Pump�. Every cent increase in the price of jet fuel costs AA ~$33 million annually. AA�s fuel expense represented ~20% of their total costs, making it the second largest cost after wages & benefits. Technical � The need to develop improved, less costly, more efficient clean fuel technologies to provide demand. Old engine technology will still �pollute� even with cleaner fuels. No incentive for individual refiners to develop cleaner fuels since jet fuel is commingled in pipelines and in airports. Approval process for non-traditional (GTL for example) take many years.

13. Change is slow, but inevitable !! Regulatory changes to gasoline and diesel fuel specifications influencing refinery processing / economics Possible regulatory changes to jet fuels Linked to air quality / emissions legislation �cleaner� fuels improved efficiency Specification harmonization Customer demands Advanced equipment requirements Improved fuel properties Continued developments in new technology areas Fuel production / processing Additives Cleaner jet fuels will come to be albeit at a much slower pace than ground transport fuels. The two primary drivers for change will be future equipment requirements and possible regulatory requirements directed at lowering emissions. Cleaner jet fuels will come to be albeit at a much slower pace than ground transport fuels. The two primary drivers for change will be future equipment requirements and possible regulatory requirements directed at lowering emissions.

14. Towards Future Jet Fuels Continued use of kerosene-type hydrocarbon fuels in foreseeable future Likely to be sourced mainly from crude oil and natural gas New technology processing options likely to become available Increasing use of additives Developments leading to improved properties increasingly demanded by engine manufacturers, militaries and airlines: Higher thermal stability Lower freezing point (Jet A-1) Higher specific energy density �Cleaner� - lower emissions Reduced operating costs; extend maintenance intervals to 20,000+ hours Different production technologies and fuel sources allowing fit-for-purpose fuel requirements to be �dialled-up�