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Fuel Economy, ACEA 2016 and other challenges for European Passenger Car Oils

Richard van den Bulk Presented at UNITI, Stuttgart, April 5th, 2017

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Agenda

• Key drivers for European Specs

• ACEA and European OEM Specifications

‒ What makes ACEA and European OEM Specs so special?

‒ Background on complexity

• What does it mean for Engine Oil Development?

• ACEA and European OEM Specifications

– What ‘s next ?

– Future of European OEM specifications

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Key Drivers of ACEA and European specifications

• Fuel Economy • Emissions Legislation

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Improved fuel economy and reduced GHG A global phenomenon

Source: International Council on Clean Transportation, June 2016 Update: http://www.theicct.org/co2-from-new-cars-eu-2015

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€5 €15

€25

€95

1st 2nd 3rd 4th

g/km CO2

2012–2018 Fines

Example: Assuming BMW had stayed at 2008 level of avg. 156 g/km CO2 in 2016: • Cost would be (156-130) = 26 gr/km excess = 2230 € (~$2360) premium per car. • They sold 1.000.400 cars in Europe in 2016 = total of 2.231 Million € extra costs! • BMW achieved an average CO2 level of 124 g/km in 2016, well below the limit.

CO2 Regulations in European Union Enforced with severe financial penalties OEM Fleet Sales Average CO2 gram /km Targets

Manufacturers exceeding the CO2 targets will have to pay fines

From 2019: €95 euro for each gram exceeding the target.

130

95

2015 2020 - 2021

g/km

g/km

Source CO2 emission data: “BMW annual reports”

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Additional Tax Incentives per Country Based on Energy Label of Cars

* Efficiency Class is a ranking system. Cars in same segment (SUV, small compact etc.) are ranked relatively to each other.

Many European countries have installed tax legislation to promote fuel efficient cars based on efficiency class* and/or CO2 production

– The CO2 production per km

– Efficiency Class: indicated by letters from A (most efficient) to G (least efficient)

– Official fuel consumption as measured by manufacturer in liters per 100 km

Brand Model Volume (L) Fuel Gear box

X Y 1,4 Gasoline Manual

Fuel consumption (according to official test cycle) 6,2

Liter/100km

CO2 emission (according to official test cycle) CO2 is the main green house gas responsible for global warming

148 g/km

Fuel consumption & CO2 emissions compared to average of all models of gasoline engine cars (average of 7,4 L/100km and 175 g/km CO2)

Applying year 2001

Fuel consumption and CO2 emissions of passenger cars

100 130 160 190 220 250

4,2 5,5 6,7 8 9,3 10,5

g/km CO2 A B C D E F G

1/100 km

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European emissions timeline Year 2000.01 2005.01 2009.09 2011.09 2014.09 2017.09

Emission Standard

Euro 3 Euro 4 Euro 5a Euro 5b Euro 6 “Intro”

Euro 6

Sulfur Level (ppm)

Diesel ≤ 350 ≤ 50 ≤ 10 ≤ 10 ≤ 10 ≤ 10

Gasoline ≤ 150 ≤ 50 ≤ 10 ≤ 10 ≤ 10 ≤ 10

After-treatment

Diesel

Gasoline

Year 2000.01 2005.01 2009.09 2011.09 2014.09 2017.09

ACEA

Main impact related to after-treatment system

3-way Catalyst (HC + CO + NOx)

Oxidation Catalyst (HC + CO)

DPF (Diesel Particulate Filter) (Soot)

SCR/NOx Cat (NOx)

GPF (Gasoline Particulate Filter) (PN)

2004 Introduction of C1, 2 & 3 categories (Mid & Low SAPS oils)

Combination of A & B categories (gasoline & diesel specs)

2007 Introduction of C4 category

2010 Minimum ash and TBN levels for A3/B3 and A3/B4

(to avoid misuse of low- and mid-SAPS oils)

Mid-SAPS oils introduction together with Ultra Low Sulfur Fuel

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ACEA and European OEM specifications

• What makes them so special? • Background on complexity

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ACEA and European OEM specifications

Need to match latest Engine Technology • Which is developing at unprecedented speed

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Gasoline engine step-change for CO2 reduction: Downsized, turbo-charged, direct injected

Ford Focus Ecoboost (MY 2016)

1.0 liter / 3 cylinder 92 kW / 125 hp 92 kW / 125 hp per liter 1 turbo 0 – 100 km/h: 11.0 sec Max speed: 195 km/h / 121 mph 21 km/L or 52 MPG , 108 g/km CO2

Porsche 911 Turbo (MY 2016)

3.8 liter / 6 cylinder 383 kW / 520 hp 101 kW / 136 hp per liter 1 turbo 0 – 100 km/h : 3.4 sec Max speed: 315 km/h / 197 mph 10.3 km/L or 25.1 MPG, 227 g/km CO2

High loaded engines nowadays are found in common cars, not only high performance sports-cars.

All need high quality, OEM approved oils

High specific power and high stress on oil: an example

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ACEA and European OEM specifications

Need to match latest Engine Technology • Which is developing at unprecedented speed Aimed at highly loaded and hot running engines • Demand higher amounts of anti-oxidants and other additives to

– Control oxidation, – Cleanliness and – Viscosity Increase over the life-time of the drain intervals

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European OEM concerns and demands Result in OEM specific engine oil specifications

Fuel Economy 1 Lubricants: Fuel Economy optimized lower viscosity oils: SAE 5W-30 -> 0W-30 -> 0W-20 -> 0W-16->?

Biofuel, Liquid Petroleum Gas, Liquefied Natural Gas, Low Fuel Quality High sulfur, aromatics, gums, etc. • Increased oxidation • Corrosion (organic acids) • Nitration • Sulfuric acid neutralization (TBN) & sludge

Fuel Economy 2 New Engine Technology • Gasoline Direct Injection • (Multiple) Turbo Chargers • Down-sizing & increased power • Variable Valve Train’s & Cylinder de-activation • Down-speeding: Higher Torque at low RPM / LSPI • Variable Oil pump, EGR, DLC & plasma coatings,

start/stop, new bearing materials, etc.

Emission Legislation Particulate filter for gasoline: Mid-ash chemical box

ACEA “only” (nor API / ILSAC) based oils do not cover (all) above OEM concerns OEM’s develop and mandate extra OEM tests on top of ACEA!

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ACEA and European OEM specifications

Need to match latest Engine Technology • Which is developing at unprecedented speed Aimed at highly loaded and hot running engines • Demand higher amounts of anti-oxidants and other additives to

– Control oxidation, – Cleanliness and – Viscosity Increase over the life-time of the drain intervals

And OEM mandate additional testing on top of ACEA for approvals • Need for Long-Drain capability • Address requirements of new engine technology and fuels • Wide variety of tests between different OEM’s adding a.o. extra costs and complexity

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Proliferation of OEM oil tests

Overview: Courtesy of ISP

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PSA B71 2300 PSA B71 2296

GM dexos2 2009 GM dexos2 2017

GM dexos 2 2017

BMW LL 01 BMW LL 01FE BMW LL14FE+ *

BMW LL 12FE BMW Longlife 04

BMW LL 17FE+

RN 0710 RN 0700 (or A5/B5)

RN 0700 (or A3/B4) GM dexos2 2009 GM dexos2 2017

VW 504.00/507.00 VW 505.01

VW 508.00/509.00

Fiat G2 Fiat H2, N2 Fiat M2, Z2

Fiat N1 Fiat S1, Fiat GS1, DS1, DS2

Porsche C30 Porsche C40

Porsche C20

VW 501.01/505.00VW 502.00 VW 502.00/505.00 VW 508.88/509.99

Ford-M2C 913 C Ford-M2C 913 D

Ford-M2C 950-A Fiat S2, S3 Fiat T2, GH2

Ford-M2C 948-B*

MB 229.1 MB 229.5 MB 229.3

MB 229.6 Ford-M2C 934B STJLR.03.5007MB 229.52 MB 229.51 MB 229.31

MB 229.71

Porsche A40 (or A3/B4)

Porsche A40 (or A3/B3)

STJLR 03.5003 STJLR.03.5004 * STJLR.51.5122 *

STJLR.03.5005

PSA B71 2290 (or C3) PSA B71 2297 (or C3) PSA B71 2302 (or C3) PSA B71 2312 (or C3)

PSA B71 2290 (or C2) PSA B71 2297 (or C2) PSA B71 2302 (or C2) PSA B71 2312 (or C2)

RN 0720 Volvo RBS 0-2AE**

A3/B3 -16 A3/B4-16 A5/B5-16 C1-16 C2-16 C3-16 C4-16 C5-16

HTHS ≥ 3.5 ≥ 3.5 ≥ 2.9 & ≤ 3.5 ≥ 2.9 ≥ 2.9 ≥ 3.5 ≥ 3.5 ≥ 2.6TBN ≥ 8.0 ≥ 10.0 ≥ 8.0 - - ≥ 6.0 ≥ 6.0 ≥ 6.0

Sulph. Ash ≥ 0.9 & ≤ 1.5 ≥ 1.0 & ≤ 1.6 ≤ 1.6 ≤ 0.5 ≤ 0.8 ≤ 0.8 ≤ 0.5 ≤ 0.8

* = HTHS 2.6 instead of 2.9 ** = HTHS 2.75 instead of 2.6

CONVENTIONAL SAPS LOW & MID SAPS

OEM specifications above ACEA building block More than 50 OEM specs in Europe today

Note: BMW LL 17 FE+ and GM dexos 2 2017 are not yet published.

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What does it mean for Engine Oil Development?

• An OEM test example

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Gasoline Engine Step-Change for CO2 Reduction: Downsized, Turbo-charged, Direct Injected

BMW N52 Durability Test 3.0 liter / 6 cylinder 190 kW / 250 hp 63 kW/ 83hp per liter Natural Aspired Port Injected Fresh Oil Load: 5500 gram (~ 6,1 liter)

BMW N20 Durability Test 2.0 liter / 4 cylinder 180 kW / 241 hp 90 kW/120hp per liter Turbo Charged Direct injected Fresh Oil Load: 5200 gram (~5,8 liter)

New BMW N20 test matches new engine technology Increased Specific Power: ~ 45%

Mandatory for all new BMW LongLife Oils.

High specific power and high stress on oil: an OEM test example

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Increased requirements for among others Anti-Oxidation and Cleanliness BMW N52 Durability Test 63 kW/83 hp per liter

BMW N20 Durability Test 90 kW/120 hp per liter

New BMW N20 test matches new engine technology Drives to higher Anti-Oxidation and Cleanliness Performance.

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ACEA and European OEM specifications

• What ‘s next ? • Future of European OEM specifications

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• Fuel Economy

– Today’s FE testing will move from NEDC to WLTP Cycle.

• Test appetite slightly different between the 2 cycles.

– New, Lower Viscosity capable engines will be introduced for testing.

• Probably enables lower Factory Fill viscosities (0W-16 and lower)

• Legislation

– More severe “real world emissions” and “loop hole closure” legislation expected.

• OEMs will pro-active make 0W-20 Factory Fill oils available for Service Fill.

• Wider viscosity portfolio for Service Fill

• LSPI

– OEMs have or will be introducing LSPI requirements/tests between 2014 and 2018

• ACEA “2018”

– Interest for tests addressing at least Turbo Charger Deposits, LSPI, Corrosion Control, Acid Control.

Key Industry Developments

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Future of European OEM specifications Global Fuel Economy legislations drives to lower viscosities: • From SAE 5W-40 to 5W-30 and further towards SAE 0W-20. • Plus Mid SAPS platforms for diesel AND gasoline At the same time OEM requirements drive to high quality oils on among other: • Fuel Economy • Durability:

– Wear, Oxidation stability, Viscosity control and Cleanliness

• Biofuel compatibility Plus new requirements are added, among others: • LSPI (Low Speed Pre-Ignition)

Oronite continues to invest to meet the current and future needs of high quality ACEA and OEM approved oils .

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Thank You!