Isobutanol Testing Update International Boat Builders Exhibition IBEX 2014 Tampa 10/01/2014

1. ISOBUTANOL Isobutanol Testing Update International Boat Builders Exhibition IBEX 2014 Tampa 10/01/2014 J.Wasil

2. History of issues in marine products with ethanol • Congressionally mandated Renewable Fuel Standard (RFS) and the push to E15+ • Proactive leadership in demonstrating a possible replacement for ethanol that may be more compatible with marine products • Opportunity to influence public policy BACKGROUND

3. KEY MEMBERS Industry-wide participation and collaboration

4. Properties of Butanol - Overview (R+M)/2 = 97.2 (R+M)/2 = 97.8 PROPERTIES

5. Properties of butanol Less susceptible to phase separation means butanol could be successfully delivered in existing pipelines Eliminates need for splash-blending Least corrosive of alcohols Higher energy content PROPERTIES Adding water to ethanol and butanol 5

6. Can be produced from multiple feed stocks Fermentation process similar to ethanol PROPERTIES 6

7. REVIEW OF TESTS Review of Tests Completed on Isobutanol

8. 2011/2012: Volvo-Penta 5.7 Closed-loop catalyst – Almar Boat 18’ Mako boat with 175 HP Evinrude GDI Outboard 24’ SeaDoo Challenger boat with 215 HP Rotax engine 1999 OMC Johnson Conventional Carbureted 2-stroke Intruder Boat Indmar 6.0L Closed-loop catalyst – Malibu Ski Boat 150 HP Yamaha on Century Boat REVIEW OF TESTS • Power • Performance • Field In-Use Emissions Testing iB16 – 16% Isobutanol

9. REVIEW OF TESTS

10. High level results of field testing iB16: • E10 and iB16 result in similar emissions (No emission related failures) • No reported engine runability or fuel system issues during summer test program • Similar performance and running characteristics REVIEW OF TESTS Portable Emissions Sampling Equipment in Boat

11. 2012/2013 – Engine Durability Testing 16% isobutanol • - Emissions Testing • - Full Useful Life Engine Durability • - Engine Efficiency • - Performance REVIEW OF TESTS

12. Durability Results: E10 E10 iB16 iB16 E10 iB16 REVIEW OF TESTS Baseline Baseline 350hrs 350hrs 350hrs 350hrs 350hrs Baseline Baseline Baseline 350hrs Baseline

13. 2013/2014 • Tri-Fuel • 5% Ethanol • 8% Isobutanol • 87% Gasoline • The addition of isobutanol helps to lower the RVP of the fuel, keeping the finished fuel at 9 RVP – No waiver required REVIEW OF TESTS

14. Tri-fuel end of season testing completed • Engines accumulated over 100 hours of field operation last summer • No engine runability issues reported • All engines passed end of season emissions testing • Additional 100 hrs this year REVIEW OF TESTS

15. 90mm Sample Filters Modes 1-5 • 2013/2014 • Particulate Matter Testing REVIEW OF TESTS Soxhlet extraction PM Scale

16. Engine Cold-Start: • E10 and iB16 • Tests conducted at 80ºF (Baseline) & 35ºF • Engines instrumented and timeto start recorded REVIEW OF TESTS

17. Scuffing Load: • block-on-ring contact configuration • 1,000 RPM with initial contact load of 50 N, followed by 25 N increase every minute REVIEW OF TESTS

18. Recap: • 2,800+ hrs testing completed operating on isobutanol • No major issues encountered during testing • All engines passed emissions evaluations throughout the program • Reduced PM operating on alcohols with similar results between E10 and iB16 • Engine cold starting looks favorable on iB16 • Oil dilution testing looks comparable between E10 and iB16 REVIEW OF TESTS

19. Next Steps: • Completion of tri-fuel testing (200 hours) • Yamaha 90 and Evinrude 135 (Target additional 100 hours of operation) • Laboratory testing on 5% O2 and beyond to understand critical blend level • Fuels E10, iB16, E15, iB24, E20 and iB32 (3.5, 5 and 7% O2) • (2) 10HP Yamaha, (2) 30HP Evinrude, and (2) 150HP Mercury • Summer 2015 engine durability / field test program operating on higher quantities of isobutanol (outboards and SD/I engines) REVIEW OF TESTS

20. Published reports: • SAE Small Engine Technology Conference: • In-Use Performance Testing of Butanol-Extended Fuel in Recreational Marine Engines and Vessels • Alternative Fuel Butanol: Preliminary Investigation on Performance and Emissions of a Marine Two-Stroke Direct Fuel Injection Engine • DOE Annual Report 2013/2014: • Emissions and operability of Gasoline, Ethanol, and Butanol Fuel Blends in recreational Marine Applications • SAE World Congress 2014: • Impact of Blending Gasoline with Iso-Butanol Compared To Ethanol on Efficiency, Performance and Emissions of a Recreational Marine 4-Stroke Engine Wallner, T., Ickes, A., Wasil, J., Sevik, J. et al., "Impact of Blending Gasoline with Isobutanol Compared to Ethanol on Efficiency, Performance and Emissions of a Recreational Marine 4-Stroke Engine," SAE Technical Paper 2014-01-1230, 2014, doi:10.4271/2014-01-1230. Wasil, J., McKnight, J., Kolb, R., Munz, D. et al., "In-Use Performance Testing of Butanol-Extended Fuel in Recreational Marine Engines and Vessels," SAE Technical Paper 2012-32-0011, 2012, doi:10.4271/2012-32-0011. Wasil, J., Johnson, J., and Singh, R., "Alternative Fuel Butanol: Preliminary Investigation on Performance and Emissions of a Marine Two-Stroke Direct Fuel Injection Engine," SAE Int. J. Fuels Lubr. 3(2):1071-1080, 2010, doi:10.4271/2010-32-0054.