Taiwan Experience regarding MTBE Use

1. Taiwan Experience regarding MTBE Use Taiwan MTBE Clean Fuels Workshop 2005 7 July, 2005 Tzeng, Jenn-Nan Lin, Kuen-Hai Refinery and Manufacturing Research Institute Chinese Petroleum Corporation

2. Taiwan MTBE Clean Fuels Workshop 2005 Outline • Taiwan EPA unleaded gasoline Policy • The Amount of MTBE use in Taiwan • MTBE risk assessment in Taiwan • MTBE alternative study in Taiwan • Ethanol vs. MTBE • Future trend about MTBE • Conclusion

3. Taiwan MTBE Clean Fuels Workshop 2005 Vehicle Population Increasing Sharply • Vehicle population increases 50% during 1995-2005 19M 13M Data source: Ministry of Transportation & Communications, ROC, May 2005.

4. Taiwan MTBE Clean Fuels Workshop 2005 Taiwan EPA unleaded gasoline Policy • EPA pushed the lead phase-down policy to reduce the lead concentration in the air from 1983 and CPC started to supply 82RON unleaded gasoline for 2T Motorcycle. • In 1990, EPA requested CPC to supply unleaded gasoline for new passenger car(new vehicle emission standard). • Lead additive(TEL) is phase-out from gasoline completely in Taiwan in 2000. CPC provided substitute additives to serve customers with old model cars. Data source: www.epa.gov.tw

5. Taiwan MTBE Clean Fuels Workshop 2005 TEL phase-out from gasoline in Taiwan Leaded gasoline was banned from 2000. Data source: www.epa.gov.tw and CPC

6. Taiwan MTBE Clean Fuels Workshop 2005 CPC’s UL gasoline Time Schedule #82ULG for 2T M #98 ULG #92ULG #95 ULG Gasoline Lead, g/L 0.12 0.2 0.15 0.08 0.026 1984 1986 1990 1993 1997 1999 Leaded gasoline is banned 2000

7. Taiwan MTBE Clean Fuels Workshop 2005 MTBE & other Oxygenates

8. Taiwan MTBE Clean Fuels Workshop 2005 MTBE’s benefits to replace TEL • Benefits: • Good Octane booster to replace Lead compound TEL. • Contains oxygen and none of Sulfur, Aromatics and Olefins. • Low cost in production, easy blending with other gasoline components and without special transport and storage requirements. • MTBE has become the main alternative for TEL since 1990.

9. Taiwan MTBE Clean Fuels Workshop 2005 The production of MTBE in Taiwan • MTBE factory in Taiwan: • Tasco Chemical Corporation, 250K ton/year • Formosa Plastics Corporation, 153 K ton/year • Formosa Petrochemical Corporation 180K ton/year • MTBE is used to be blended into gasoline. Data source: PetroChemical industry 2003 yearbook(Taiwan, ROC)

10. Taiwan MTBE Clean Fuels Workshop 2005 The Amount of MTBE use in Taiwan Data source: PetroChemical industry 2003 yearbook(Taiwan, ROC)

11. Taiwan MTBE Clean Fuels Workshop 2005 Blending Amount of MTBE in gasoline Remark:1.KOR, TOR, DOR are belong to CPC and FPC is abbr. of Formosa PetroChemical Corporation.

12. Taiwan MTBE Clean Fuels Workshop 2005 MTBE risk assessment in Taiwan • EPA finished the research project in 2003. • The project’s research items including: • To analyze and survey the releasing concentrations of MTBE in gasoline station. • To establish the risk assessment of the ingestion and inhalation of MTBE of the inhabitants. • To understand the assessments and preparation work of MTBE from foreign country before the regulation and the consideration of decision making. Data source: ROC EPA research project, EPA-92-J103-02-206

13. Taiwan MTBE Clean Fuels Workshop 2005 MTBE risk assessment in Taiwan • The project’s main conclusions: • Ingestion of MTBE risk on drinking water near the sampling point is in the allowable range. • Inhalation of MTBE risk on breathing air for people living nearby or refueling does also not exceed than the allowable range. • EU and Japan do not ban the MTBE use. • EU will enhance the management of storage tank. Data source: ROC EPA research project, EPA-92-J103-02-206

14. Taiwan MTBE Clean Fuels Workshop 2005 MTBE alternative study in Taiwan • Legislative Yuan required EPA to review the use of MTBE in 2000. • BOE, MOEA finished the research project in 2001. The main conclusions are: • Ethanol is the most possible alternative for MTBE. • Ethanol cost is still high . The gasoline price will surge up if ethanol is blended into gasoline and the MTBE plants will face to a lot of economic loss. • The cost to enhance the management and remedy of storage tank is much less. Data source: Research project from Bureau of Energy, MOEA, ROC, No. 0027 in 2001.

15. Taiwan MTBE Clean Fuels Workshop 2005 Ethanol vs. MTBE • Ethanol advantages: • High RON • None of Aromatics, Sulfur and Olefins. • High Oxygen content. • Ethanol gasoline emits less CO and total toxics than conventional gasoline. • Can be produced from biomass, such as sugar cane, corn, cellulose, woody plant, etc.

16. Taiwan MTBE Clean Fuels Workshop 2005 Ethanol vs. MTBE • Ethanol disadvantages: • Blending RVP will be increased( max. 1 psi)  higher VOC emission. • Lower energy content than gasoline, higher evaporation latent heat  fuel consumption is worse. • Existing phase separation and water absorption problem. • Can only be blended into gasoline in terminal tank.  increase the production and transportation cost. • Ethanol cost still high.(Importing required)

17. Taiwan MTBE Clean Fuels Workshop 2005 Future trend about MTBE • The gasoline regulations for 2007: • Required maximum Oxygen content increased to 2.7 wt.%.(current is 2 wt.%) • Lower Aromatics and Olefins content.(36 and 18 vol.% respectively) • MTBE will still play an important role in the near future. • CPC will continue to watch global trends for MTBE and study the alternatives for MTBE.

18. Taiwan MTBE Clean Fuels Workshop 2005 Conclusions • EPA’s cleaner air policy facilitated the use of unleaded gasoline and the MTBE. • The future gasoline regulation will still require the use of MTBE to meet high octane, low aromatics and olefins spec. • The risk assessment result of MTBE from Taiwan EPA is in the allowable range. • Ethanol as the alternative to MTBE is still facing some problems.

19. Taiwan MTBE Clean Fuels Workshop 2005 Lead concentration trend Lead in gasoline (g/L)

20. Taiwan MTBE Clean Fuels Workshop 2005 Ethanol blending RVP RVP, kPa Ethanol blending amount, vol.%