Manage Risk. Create Gains.

1. Fuel Quality:Understanding Today’s Diesel Fuel Manage Risk.Create Gains.

2. Diesel Quality Diesel fuel Is often a company’s largest expense. Unfortunately, there is very little control over it’s quality. Fuel Quality Has Declined Over Several Decades, To Make Matters Worse Fuel Quality Deteriorates Every Time It’s Handled Which Can Be as Many as 12 Times Before it is Used. Industry surveys show low quality diesel fuel is the #1 cause of poor engine performance...

3. Background Fuel may be commoditized, but fuel quality is anything but standard. There was a time when diesel fuel was guaranteed from the refiner through the distributor. That day is over. Diesel quality is now only guaranteed at the refiner. Most buyers also don’t know: • It can travel on a common pipeline, encountering contaminants and water. • Crude oil extracted today is often a lower grade, and the best parts go elsewhere. • Ultra Low Sulfur Diesel (ULSD) produced for new EPA regulations creates fuel system issues not experienced before. Whatever you knew about diesel from 10 or 20 years ago no longer applies . . . . . . and the future outlook for diesel quality looks no better.

4. Cetane Level Cetane measures the combustion quality. While experts suggest a minimum of 50 cetane for adequate performance, the EPA requires only a 47 to 48. • Low Cetane Fuel Causes: • Increased stack emissions. • Poor combustion efficiency, loss of power, and lower mileage. • Harder starting. • Detonation wear from violent explosions damaging piston heads, rings, valves, and cylinder liners. • Higher temperatures needed to ignite low cetane diesel results in delayed ignition.

5. Lubricity Poor Lubricity resulted when ULSD removed most sulfur - a naturally lubricating element that protects engine parts from both chemical and mechanical wear. Mechanical Wear: The removal of sulfur causes the fuel to become very dry. This results in 5 times more scuffing wear in fuel injection systems. Chemical Wear: The hydro-treating process used to remove sulfur also removes natural corrosion inhibitors in diesel fuel. This causes the fuel to become corrosive. Worn injection systems result in poor fuel economy, excessive stack emissions, equipment down time and engine repair cost.

6. Water Contamination Water Contamination – Whether entering the fuel supply before delivery, or resulting from condensation or seepage within the storage tank, diesel is susceptible to water. While severe water contamination may be apparent in plain sight, water in suspension may not always be visible. Modern engines are far less tolerant, and the resulting issues are often catastrophic. • Water Causes: • Poor combustion • Clogged filters • Rust and corrosion • Fuel line freeze ups • Bacterial and fungal growth

7. Biological Growth Biological Growth– There are 14 types of bacteria and 7 types of fungus that feed on the hydrocarbons in diesel fuel. Reduced sulfur content also allows more biological activity. Bacteria and fungus entering diesel through water contamination or air vents create living cultures within diesel tanks. The resulting slime and decayed matter will clog filters, foul injectors, and produce additional harmful acids. Serviceable fuel is eventually rendered into hazardous waste, but not before performance has long been impaired. Biological Growth Causes: • Slime formation, decayed matter, and bacterial feces which clog filters and injector tips • The formation of corrosive acids which can cause leaking storage tanks and worn injectors.

8. Contaminants Contaminants Form Deposits: Modern diesel fuel contains high levels of contaminants that clog injectors and contribute to air pollution. • By the time diesel fuel is produced and reaches a seaboard storage terminal the typical level of cleanliness is: • Water - as dissolved water 0.01%wt by ASTM D1744 • Water and sediment – 0.01% vol by ASTM D2709, the specification is 0.05% vol max • Particulate matter – up to 3 mg/l by ASTM D2276, which filters diesel through a 0.45 micron filter. • Cleanliness by ISO 4406 – a typical rating is around 16/12. • From the terminal tank to the diesel engine tank the potential sources of contamination are: • Dust – from the environment through storage tank breathers and engine fuel tank breathers. • Water – from condensation of water vapor entering through storage tank breathers. • Water and dirt – from fungal and bacterial activity due to fungus living in condensed water in the fuel tank. • Rust – from the internal walls of storage tanks.

9. Contaminants Fuel systems require filters to remove unwanted contaminants in the fuel that can damage the engine system components. Diesel fuel contaminants come from a range of sources and include; particles, water, biological material, wax crystals and asphaltenes. Particles can also enter the fuel through the fuel distribution system, engine wear or combustion byproducts. Engine builders and fuel injection equipment manufacturers have found that the particles greater than 4 microns and greater than 6 microns are particularly critical to the durability of the fuel injection system. They also recognize that the fuel systems must be robust to hard particles smaller than 4 microns that are difficult to filter out, even with the finest filtration. To maximize the efficiency and effectiveness of filtration, Cummins Inc. has adopted the recommendation of the World Wide Fuel Charter that fuel supplied to engines meet the ISO 4406 code of 18/16/13 maximum for respectively 4, 6, and 14 micron particle sizes. Cummins Inc. recommends that if the fuel does not meet the ISO cleanliness code of 18/16/13 in bulk storage, additional filtration be applied before the fuel is delivered to the equipment's fuel tank.

10. Contaminants The fuel cleanliness issues start at the refinery. There the fuel output filtration is typically between 50 and 80 micron. Particles smaller than this are unfiltered and remain in the fuel. The contamination continues, when the fuel is taken from the refinery as it may go through several more transfers before reaching the final tank, boats, tankers, barrels etc can all contribute to dirt and water ingress. Much of the problem is related to micron filtration size and water accumulation in diesel fuel as it reaches pumps and injectors. Problems are likely to hit the mobile industry first, as the diesel engine business is the first to deal with EPA's low exhaust emission regulations and with it, the families of new or redesigned engines and especially pump and injection systems. Ten years ago, maximum diesel fuel system pressures rarely exceeded 3000 psi. , today's advanced systems can be as high as 30,000 psi and therein lies the problem. Most engine fuel filters are nominal 15 or 10 micron and the most damaging particle size by volume is 5-10 microns.

11. Contaminants Lab work revealed that particles in the 5 to 10 micron sizes were the most abrasive size group and were the cause of shortened component life. It turned out the 7 micron particle was the perfect fit between micro-machined clearances and would actually grind away on metal surfaces, causing accelerated wear resulting in a drop in pump pressures and causing servo valve orifice erosion. Water ingress to storage tanks is a major problem, particularly for companies who have to store large amounts of fuel for stand by, back up generator systems. Water causes condensation through temperature changes and particularly with older storage tanks contributes to rust that forms within the void between the level of fuel and the tank. This rust falls away and causes sediment within the fuel. Other sources of water ingress are through poorly maintained manhole access points, these can fill with water and seepage can occur through filler caps, breather points and tank lids and faulty seals. Faulty tanks, cracked pipe work can all contribute to contamination problems within storage tanks.

12. Terminology Relationship of Diesel Fuel Properties to Composition and Performance Property Type and Effect of Property on Performance Time Frame of Effect • Flash Point: Safety in handling and use not directly related to engine performance • Water and Sediment: Affect fuel filters and injectors - Long-term • Volatility: Affects ease of starting and smoke - Immediate • Viscosity: Affects fuel spray atomization and fuel system Immediate and lubrication. It also affects fuel system leakage - Long-term • Ash: Can damage fuel injection system and cause - Long-term combustion chamber deposits • Sulfur: Affects particulate emissions, cylinder Particulates: Immediate wear, and deposits Wear - Long-term • Copper Strip: Indicates potential for corrosive attack - Long-term Corrosion on metal parts • Cetane Number: Measure of ignition quality affects cold starting – Immediate smoke, combustion, and emissions • Cloud Point and Pour Point: Affect low-temperature operability - Immediate • Carbon Residue: Measures coking tendency of fuel; may relate - Long-term to engine deposits • Heating Value: Affects fuel economy - Immediate (Energy Content) • Density: Affects heating value - Immediate • Stability: Indicates potential to form insoluble particles and immediate gum/residues in the fuel during use and/or in storage - Long-term • Lubricity: Affects fuel injection system (pump and injector) wear - Long-term Severe: Short-term • Water Separability: Affects ability of water to separate from the fuel – Immediate and Long-term • Low-Temperature: Affects flow and filterability at cold ambient – Immediate Operability temperatures

13. Sterilize the Fuel System – EPA approved Biocides are introduced, killing all 21 types of bacteria and fungus known to inhabit fuel. Growth in both water and fuel phases is halted. Eliminating issues in on road ULSD, off road diesel, bio-diesel, and gasoline. Clean the Fuel Tank – Besides collecting sediment, water, and other contaminants, fuel tanks breed biological growth. Once killed with biocide, the remaining debris must cleaned. A proprietary filtration process removes the contaminants and particulates, while oil-water separation eliminates accumulated water and condensate. The treated diesel can now reside in a clean environment, free from recontamination. 3. Filter Fuel – With the tank walls clean and heavy particulate matter removed, fuel passes through a Beta rated filtration process. Any remaining water in suspension within the fuel is separated out, leaving clean fuel, free of contaminants. Solution The Six Step Process Explained

14. Solution • Improve the Fuel – Conditioners and additives rebuild the fuel into high quality diesel. De-emulsifying agents separate the water from diesel for removal. Detergents aid in cleaning engine parts, while anti-wear additives protect them from ULSD. Cetane levels are improved up to 15%. Rust, Corrosion, and Oxidation inhibitors protect tanks and engines. • Fuel Analysis – Because no two tanks are identical, samples are taken and analyzed by a third party lab for insight into the conditions present within eachtank. Having identified specific bacteria or fungus cultures, the cetane level, and any suspended water contamination, a custom treatment and quality control program is made possible. • Automatic Dosing – A Direct injection Fuel Improver System is mounted directly to each tank. The solar powered system delivers continuous fuel improver between tank cleanings. Custom configured dilution and precise dosage rates will ensure optimal fleet performance and enhance fuel efficiency.

15. Solution Technical Detail: Sterilizing the Fuel Tank • 24 hours prior to tank cleaning, a fuel biocide, fungicide and preservative will be administered to eliminate bacterium and fungi. • Kill virtually 100% of bacteria and fungus within 8 hours. • Prevent the biological breakdown and acid formation in stored fuel. • Eliminate slime and bio-mass blockages that clog fuel filters. • Treat the fuel and water in a storage tank unlike many biocides which only treat one or the other. • Help keep injector tips clean in order to provide a proper spray pattern. • Seek out and destroys organisms that form corrosive acids in tanks, lines, and seals. • Won’t affect the performance of other fuel additives and is accepted by engine manufacturers.

16. Solution Technical Detail: Cleaning the Fuel Tank and Filtering the Fuel • Working Pressures to 350 psi / 24.1 bar • Rated Static Burst to 800 psi / 55.2 bar • Flow Range to 65 gpm / 246 lpm • Target Cleanliness – 14/13/11 • 4 micron @ Beta 2000

17. Solution Technical Detail: Improving the fuel Reduced Emissions Improve ignition, cut starting time, and reduce detonation wear by raising Cetane levels. Clean and disperse contaminates and prevent the formation of gum, varnish, lacquer and carbon coke. Lubricant additives that protects injectors and pumps. Oxidation inhibitors stabilize fuel during short or long periods of time. Rust and corrosion inhibitors protect fuel tanks, lines and engine components. Lower fuel pour-point by up to 40°F without the use of alcohol or dangerous chemicals. Prevent emulsification and separate water in suspension.

18. Solution Technical Detail: Fuel Analysis • Complete fuel analysis with treat rate recommendations with fast and reliable test results that are easy to understand, assures optimal equipment performance. • Determine the concentration different types of bacteria known to infect fuel storage. • Analyze the Cetane level which is determined by ASTM D 613-86. • Analyze the concentration of fungi known that infect fuel storage. • Reports the actual treat rate in the sample, then provides treatment recommendations with respect to these results . • Determine the percentage of water contamination present in the fuel.

19. Fully Automatic Process - Injects the correct amount of diesel fuel improver every time diesel fuel is delivered. Accurate Dilution - The Direct-Inject reduces waste by delivering a precise amount of fuel improver. Dilution rates can be set to any amount. Solar Powered - Requires no electrical or compressed air connections to operate. Allows for remote installation. Multiple Options for Installation - Allows for the most efficient and non-intrusive installation for each customer site. Solution Technical Detail: Automatic Dosing

20. BCA Fuel Solutions appreciates your time. We look forward to partnering on the path to fuel savings. BCA Fuel Solutions6300 Ridglea PlaceSuite 606Fort Worth, Texas 76116(682) 200-8701 Contact Information