Quality Challenges Associated with Future Fuels

1. Quality Challenges Associated with Future Fuels Rodney Fischer, Defense Logistics Agency Energy Chief of Quality Operations May 2012

2. Defense Logistics Agency Energy In support of DLA’s mission, provide the Department of Defense and other government agencies with comprehensive energy solutions in the most effective and efficient manner possible. Mission: Warfighter-focused, globally responsive, fiscally responsible supply chain leadership Vision: • Warfighter needs guide us • Integrity defines us • Diversity strengthens us • Excellence inspires us Values:

3. OVERVIEW • Alternative fuels • Specific quality concerns • Some lessons learned • Jet A conversion • Particle counter field test

4. Energy independence Compliance with environmental regulations Reduce carbon footprint Minimize green house gas emissions Meet customer requirements Alternative Energy Drivers

5. HRJ5 / HRJ8 / HRF76 Hydrotreated Renewable Fuels – The feedstock is defined as esters or fatty acids, which have undergone deoxygenation and subsequent hydroprocessing/isomerization into hydrocarbon fuels. HR fuels that have been procured were derived from camelina, algal, waste (yellow grease) oils and tallows. HR fuels may be blended up to 50 percent with conventional hydrocarbon fuels and meet JP8/JP5/F76 specification.

6. HR Quality Specifications • HRJ5 – Procured to local specification • To be added to next revision of MIL-DTL-5624 • HRJ8 – Procured to local specification • Recently added as Appendix B of MIL-DTL-83133 • HRF76 – Procured to local specification • To be added to MIL-DTL-16884 in 2013

7. Storage Tank Prep to Receive HRJ5 / HRJ8 / HRF76 • Mild caustic wash, if warranted, mild enough to not harm epoxy coating • No detergents • After caustic minimum of two fresh water rinses validated by pH comparison with the stock rinse water • Tank and associated pumps and lines must be blown completely dry. Nitrogen is preferable but air is acceptable--if nitrogen used, no positive pressure need be remaining inside compartment, however nitrogen should not be purged with air after • Offered tank requires inspection and acceptance by government inspector

8. Tank Truck Cleaning Procedures HRJ5 / HRJ8 / HRF76 (Condensed Composite Table) (1) When required, drain and empty includes the pump(s), filter(s), meter(s), and hose(s) as applicable.

9. Fischer-Tropsch Synthesized Paraffinic Kerosene Fischer-Tropsch Synthesized Paraffinic Kerosene– Hydrocarbon molecules in the fuel are synthesized from hydrogen and carbon monoxide • Fischer-Tropsch processes developed by Germans during WW II to make gasoline from coal • Modernized in South Africa by Sasol • Feedstocks include • Coal • Biomass • Natural gas • Hydroprocessing/isomerization is the means of synthesis

10. Storage Tank / Issue SystemFischer-Tropsch Synthesized Paraffinic Kerosene • Refinery tankage must be dedicated to FT IPK • Piping from FT process to storage tank must be dedicated • OR have the ability to be flushed so that there is minimal product carryover • Piping, manifold and pump from storage tank to container loading point must be dedicated • OR have the ability to be flushed so that there is minimal product carryover

11. Intermodal Container Requirements for FTSPK • Container must be stainless steel or aluminum intermodal container • Transport vessel must be steam cleaned and dry such that no residue of the previous cargo is left on the interior of the container including piping

12. Alcohol to Jet Alcohol to Jet – As the words imply jet fuel is derived from alcohol. The alcohol has undergone a dehydration process followed by oligomerization into jet fuel range hydrocarbons and subsequently hydro-processed. The current contract is for 11,000 gallons; 10,000 gallons of the alcohol can come from any source and the remaining 1,000 gallons of alcohol had to come from the fermentation of biomass. R&D quantity awarded FOB destination to Wright-Pat

13. Storage Tank / Issue SystemAlcohol to Jet • Refinery tankage must be dedicated to ATJ • Piping from ATJ process to storage tank must be dedicated • Or have the ability to be flushed so that there is minimal product carryover • Piping, manifold and pump from storage tank to container loading point must be dedicated • Or have the ability to be flushed so that there is minimal product carryover

14. Intermodal Container Requirements (ATJ) • Container must be stainless steel or aluminum intermodal container • Transport vessel must be steam cleaned and dry such that no residue of the previous cargo is left on the interior of the container including piping

15. Inspection Impact • Increased surveillance of contractor receipt system, storage tanks and issue system • Increased surveillance of contractor intermodal container/truck loading • Site visits to receiving activities to assess ability to receive and store the alternative fuel • Increased customer assistance visits • Inspection footprint will shrink after R&D phase

16. Biodiesel/E85 • Biodiesel refers to vegetable oil or animal fat-based diesel fuels consisting of long-chain alkyl esters • Blend (B6 to B20) refers to biodiesel component to conventional diesel fuel • Biodiesel conforms to ASTM D6751 • The middle distillate diesel component in accordance with ASTM D975 • FAME is biodiesel that is made from various animal fats and tallow • E85 is an abbreviation for an ethanol fuel blend of up to 85 percent denatured ethanol fuel and gasoline • Procured against ASTM D5798

17. Puerto Rico • FAME contamination in marine gas oil • Numerous U.S. Coast Guard Cutters affected • FAME content: 3–20 percent • FAME traced back to PR Main Distribution Terminal • Currently, all delivery receipts are tested for FAME contamination • USCG established acceptable FAME limit: <1 percent

18. FAME ContaminationIn Jet Fuel • Emerging problem influenced by BioD mandates • Max allowed in jet fuel is five ppm • Move to allow 100 ppm progressing slowly • Euro pipe entry points require FAME-free cert. • Protects aviation fuel in pipe from trail-back • Introduced by transport conveyance not production • Quality Surveillance procedures adjusted to include EI HM50 FAME last carried rules for vessels

19. Washington, D.C. • Winter conversion from ultra low sulfur diesel to B20 • Entire GSA diesel fleet affected to include all emergency response vehicles • B20 failed to meet specification in accordance with ASTM D7467 • All nine dispensing locations experienced massive filter plugging • Currently, the District has suspended the use of • B20 pending further study

20. Columbus Air Force Base, Miss. • B20 vehicle filter plugging • Bio-diesel component contained animal fat • Source traced back to supplier • Installation is in the process of flushing B20 from the system • Installation converted back to ULSD in-lieu-of B20 until the bio-diesel component issues could be resolved

21. Fort Campbell, Ky • E85 contained high concentrations of silicon • Entire GSA Flex-fuel fleet affected • All mechanical failures were post combustion • Source of the silicon traced back to the motor gasoline fraction • Silicon levels ranged from 9 – 32 ppm • Currently, the automotive industry does not have a specification standard for silicon

22. Lessons Learned • E85 performs poorly in stationary equipment/vehicles • E85 storage must be continually monitored for water • Gasoline containing greater >10 percent ethanol is not recommended for use in marine environments • Bio-diesel has a very limited shelf (<four months?) • Bio-diesel is NOT recommended for use in essential and emergency response vehicles • Bio-diesel is NOT recommended for marine use • Both E85 and bio-diesel require an increased level of monitoring and housekeeping to ensure serviceability • FAME contamination in marine gas oil impacts vessel operational readiness--current USCG limit <1 percent • ISO DMA 8217 and future F76 spec specifies 0.1 percent max

23. The TransitionJP8 to JET A Why Switch? • To increase the number of potential suppliers • Lower cost • Decrease time to receive / move to a location • Increase flexibility in coverage Differences in the fuel? • JP8 is Jet A1 with specific additives • Freeze point (Jet A1: -47C, Jet A: -40C) • AO is optional in Jet A • JP8 procured to MIL-DTL-83133/Jet A to ASTM D1655

24. Commercial versus MilitaryAdditives • Additives (FSII, CI, SDA) – military customers will continue to require additives in Jet A • Additive injection will shift from refiner to defense fuel support point • If no intermediate DFSP is involved in shipment will require the supplier to inject additives • Installation of additive storage and injectors at DFSP • Increased quality oversight of additive injection process • Manage additive bulk inventories • Reduced FSII injection ratios?

25. Customer Concerns U.S. Army: expected completion 1st quarter fiscal 2013 • One year study, preparation for change • All tanks and equipment must be marked for Jet A with additives with accepted nomenclature

26. Customer Concerns U.S. Navy: Freeze Point Study: • Determine any concerns changing to Jet A • Expected completion: 1st quarter fiscal 2013 Peroxide Testing: • DLA issued a joint Quality Assurance Advisory Pearl Harbor, Puget Sound, San Pedro, Yorktown • Test peroxide content via ASTM D3703 • Initial Jet A fill, every six months, for two years

27. Supply Chain Concerns Future providers • How will the supply chain differ? • Current plans based on present award patterns • Intermediate storage locations – do we need them all? • Modes of transportation to be used? • Pipeline shipments become fungible

28. Progress? Example: Inland-East Jet A • Fiscal 2011 (11-R-0061): Awarded 54,180,000 U.S. gallons • Fiscal 2012 (12-R-0061):Requirements for 281,690,000 U.S. gallons • And so it begins…. Where: • DFSP Charleston, S.C.– Charleston Air Force Base • Laughlin Air Force Base, Dyess AFB, Lackland Air Force Base • Ellsworth Air Force Base, Sheppard Air Force Base • McEntire Air National Guard, Travis Field, Shaw Air Force Base • DFSP Vancouver, Fairchild Air Force Base, Portland Air National Guard, Kingsley Air National Guard

29. Particle Counter • Automatic Particle Counter has been a Report Only requirement since Def Stan 91-91 Issue 6, 2008 and MIL-DTL-83133G Amend 1, 2011 • MIL-DTL-5624 will adapt automatic particle counters in the newer version • IP 564, IP 565 & IP 577 are approved methods • These methods are based on the laser obscuration technology • No PC specification limits have been established • MIL-DTL-83133G has note requesting PC results be submitted to AFPA for data collection

30. Benefits of PC Field Test • Evaluate and map the particle/water contamination level of aviation fuel throughout the Class IIIB supply chain • Primarily at the DFSP and military bases • Pipelines, delivery truck, storage tank, refueling vehicles, filter separator, tactical dispensing equipment • Identify critical contamination points, effectiveness of quality assurance program, etc. • Evaluate the efficiency and effectiveness of the filters (separators, element change out), tank cleanliness, and settling time • Upon deployment to the field, it will provide immediate results without being constrained by the limitations of the visual and gravimetric method

31. DoD Fuel Supply ChainPC Field Test From the AF Presentation

32. Program Details PC Field Test • DLA Energy funds and manages the program • Participating members: DLA Energy, Air Force, Navy, and Army • Testing will be performed at 10 high volume sites in the continental U.S. including aircraft carriers using three approved testers • DFSP Tampa • DFSP San Pedro • Dover AFB • Barksdale AFB • Holloman AFB • Whiteman AFB • Patuxent River NAS • Jacksonville NAS • Camp Pendleton MCB • Hunter AAF • Rucker AAF • Navy Aircraft Carriers

33. Questions?