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Unlocking the Potential of Fuel to
Improve Transport Efficiency
Amer A. Amer, Fuel Chief Technologist
Saudi Aramco R&DC
KAUST Future Fuels Workshop, 7-9 March 2016
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Saudi Aramco: Company General Use
• Saudi Aramco, R&DC Fuel Technology Overview
• Global Petroleum Supply and Demand
• Transport Challenges and Opportunities
• Fuel Technology Research Portfolio
• Final Thoughts
• Way Forward
Outline
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Saudi Aramco: Company General Use
Saudi Aramco – Fully Integrated Energy Enterprise
260.2billionbarrels oil reserves
284.8trillionscf gas reserves
1 in 8 barrels of the world’s total crude oil production
4.5millionbpd global refining capacity
2012 Numbers
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Saudi Aramco: Company General Use
0
10
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30
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50
60
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1980 1985 1990 1995 2000 2005 2010
Billion Barrels
Trillion Barrels
Proven Reserves R/P Ratio
Annual Production
Global Petroleum Demand and Supply Projections
0
25
50
75
100
125
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
Millions
of
barr
els
of
petr
ole
um
per
day
Historic Projections
Non-OECD
OECD
* Growth primarily in Asia
Source: U.S. Energy Information Administration, International Energy
Outlook 2014, DOE/EIA – 0484(2014), September 9,2014 Source: U.S. Energy Information Administration, International Energy
Outlook 2014, DOE/EIA – 0484(2014), September 9,2014.
U.S. Geological Survey World Conventional Resources Assessment Team,
2013, Supporting data for the U.S. Geological Survey 2012 world
assessment of undiscovered oil and gas resources: U.S. Geological
Survey Digital Data Series DDS–69–FF, various pages,
http://pubs.usgs.gov/dds/dds-069/dds-069-ff/.
World Oil Demand Oil Production and Reserves
Petroleum demand will grow (mostly in non-OECD countries) and will not be
constrained by supply
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Saudi Aramco: Company General Use
Research & Development Center
OIL
AN
D G
AS T
REAT
MEN
T
REFIN
ING
AN
D U
PG
RA
DIN
G
CH
EM
ICA
LS
OIL
AN
D G
AS
NET
WO
RK
IN
TEG
RIT
Y
FU
EL T
EC
HN
OLO
GY
CA
RBO
N M
AN
AG
EM
EN
T
Downstream Domains – Maximizing ValueStrategic Domains
Sustainability
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Saudi Aramco: Company General Use
Transport Fuel Technology: Holistic approach to innovation
- Promote the development and adoption of cost-effective and sustainable
oil-based transport solutions
- Early concept prove-out to technology demonstration and stakeholder
engagement
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Saudi Aramco: Company General Use
System Approach
to Reducing GHGs
Transport Fuel Technology: Holistic approach to innovation
- Promote the development and adoption of cost-effective and sustainable
oil-based transport solutions
- Early concept prove-out to technology demonstration and stakeholder
engagement
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Saudi Aramco: Company General Use
Center was inaugurated in March 2013
2,798 ft2 office space
Research facility - 10-year collaboration with IFPen
Fuel/engine matching programs leading to vehicle
demonstrators (Advanced CI and SI engines)
Global Footprint and Network – Major Enabler
BS46%
MS9%
PhD45%
Center was inaugurated in October 2015
50,000 ft² lab and office space
Proximity to auto manufacturers and technology providers
Technology integration (LDV and HDV)
Strategic transport analysis
Other20%
BS8%
MSc30%
PhD42%
Aramco Fuel Research Center - Paris Aramco Research Centers – Detroit
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Saudi Aramco: Company General Use
• Around 60% of oil goes to transport
fuels
• Around 90% of transport energy is from
oil
• Over 1.1 billion passenger cars and 255
million commercial vehicles
• Over 4.5 billion liters each of gasoline &
diesel and 1 billion liters of jet fuel
each day
• Alternatives will play a role but cannot
grow without restraint or fast enough to
take a significant share of transport
energy
Improving transport efficiency using oil-
based fuel is essential
Co-development of fuel/engine systems
Transportation continues to be heavily reliant on oil
OECD Europe
OECD Asia
OPEC
India
OECD America
China
Other
Non-OECD
Sources: Intl. Energy Agency, World Energy Outlook 2013 - Current Policies Scenario; World Energy Council, World Energy Scenarios Jazz Scenario (Freeway); U.S. Energy Information Agency, Intl. Energy Outlook 2013 - Reference case
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2020 2035
International Energy AgencyWorld Energy CouncilU.S. Energy Information Agency
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Saudi Aramco: Company General Use
• Transport accounts for 14.0% of global GHG emissions
- Third after power generation and industrial processes AND
comparable to agricultural byproducts
• Stringent targets for Low Carbon Vehicles (LCV)
• More Diesel and Jet fuel demand and higher
octane requirement to meet LCV target
Challenges: GHG Reduction and CO2 abatement mandates
Source: http://www.theicct.org/blogs/staff/improving-conversions-between-passenger-vehicle-efficiency-standards, 2014
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Saudi Aramco: Company General Use
• Driving complex and costly engine
systems and after treatment
requirements for Diesel road transport
- Diesel engines are inherently more
efficient than gasoline engines
• Driving drastic choices for marine
transport
- Fuel switch from Heavy Fuel Oil (HFO) to
LS Diesel in Emission Controlled Areas
(ECA)
- HFO desulphurization
- On-board scrubbing systems
• Knock is much more challenging in
bigger/slower engines, hence no
alternative to compression ignition in
commercial transport
Challenges: Increasingly stringent emission standards
• Diesel demand to meet emissions
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Saudi Aramco: Company General Use
• Despite massive growth in personal vehicles, energy demand for this sector will not
grow proportionately, due to
- Larger scope for efficiency improvement
- Shorter driving distances, hybridization, and smaller cars
• Global transportation demand growth is mostly driven by commercial vehicles
Challenges: Disparity in transport sector growth
Source: The Outlook for Energy: A View to 2040, ExxonMobil, 2016
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Saudi Aramco: Company General Use
• Despite massive growth in personal vehicles, energy demand for this sector will not
grow proportionately, due to
- Larger scope for efficiency improvement
- Shorter driving distances, hybridization, and smaller cars
• Global transportation demand growth is mostly driven by commercial vehicles
Challenges: Disparity in transport sector growth
Source: The Outlook for Energy: A View to 2040, ExxonMobil, 2016
• More Diesel demand to meet growth
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Saudi Aramco: Company General Use
0
1
2
3
4
5
6
7
0
20
40
60
80
100
120
140
160
180
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
J+D/G RatioEJ / year
World Energy Council - Freeway Scenario
Gasoline Jetfuels Diesel J+D/G Ratio
Stringent Emissions
GHG and CO2 Mandates
Growth Disparity
Challenges: Demand imbalance consequence
• Impact on the Oil Industry
- Around $30 Billion CapEx projects to increase capacities of EU refinery units that
boost distillate production AND significant capacity reductions in units that boost
gasoline production1
- $100s of Billions industry-wide AND surplus in “low Octane gasoline”
Sources: http://www.ngk.co.jp/english/news/2008/0611.html and www.theicct.org/info/documents/PVstds_update_apr2010.pdf1 CONCAWE 2013 report # 1/13R “Oil refining in the EU in 2020, with perspectives to 2030” For the 2009-2015 period
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Saudi Aramco: Company General Use
Stringent Emissions
GHG and CO2 Mandates
Growth Disparity
Challenges: Demand imbalance consequence
• Impact on the Oil Industry
- Around $30 Billion CapEx projects to increase capacities of EU refinery units that
boost distillate production AND significant capacity reductions in units that boost
gasoline production1
- $100s of Billions industry-wide AND surplus in “low Octane gasoline”
Sources: http://www.ngk.co.jp/english/news/2008/0611.html and www.theicct.org/info/documents/PVstds_update_apr2010.pdf1 CONCAWE 2013 report # 1/13R “Oil refining in the EU in 2020, with perspectives to 2030” For the 2009-2015 period
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Saudi Aramco: Company General Use
• Implications
- More diesel and jet fuel needed compared to gasoline AND increase in octane of gasoline pool
“Homeless Hydrocarbons” negatively impacting refinery sustainability
• Potential Solutions
- More hydroprocessing to satisfy increased demand for middle distillates - Expensive
- Increased adoption of LNG or CNG for heavy duty applications
• constrained by availability, energy density, and infrastructure
- More octane boosting to supply higher octane gasoline (>98 RON)
• cannot grow without restraint or fast enough
• only relevant to LDVs
- Develop efficient and clean compression ignition technology which can use easily manufactured
low Octane/low Cetane fuels (aka GCI)
• given the negative sentiment surrounding the Diesel fuel, a new fuel can reestablish the compression ignition
technology as a viable pathway to improve the efficiency of internal combustion engine
• compression ignition is the right technology with the “wrong” fuel
- Develop a technology that can reduce engine average Octane requirement
Implications and solutions
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Saudi Aramco: Company General Use
Two competitive technologies to address the challenges
Low Octane Gasoline
Fuel/Engine Matching
New Engine Concept
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Saudi Aramco: Company General Use
Gasoline Compression Ignition (GCI) Technology OverviewLow NOx and Low Particulates
• Control of particulates and NOx much easier with
fuels with high ignition delay - “Gasoline-like”
• Inject low-octane gasoline in a “diesel” engine
much earlier in the cycle compared to diesel fuel
• Higher ignition delay allows more time for mixing
before combustion
• In–cycle control of combustion phasing by injection
timing as in a diesel engine
Dis
tillati
on
Hydrotreating
Isomerization
Alkylation
Catalytic Reforming
Octane Boosting
H2S
“Homeless H/Cs”
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Saudi Aramco: Company General Use
• Higher efficiency compared to gasoline engines
• Lower cost compared to diesel engines
• Makes use of “Homeless hydrocarbons”
• Helps improve Well-to-Wheels emissions (lower C/H)
• Fuel used is lower in Aromatics
• GCI need to work with existing market fuels initially
Gasoline Engine
Diesel Engine
GCI Concept Engine
Low Octane Gasoline
GCI Technology Positioning
System Level Efficiency / CO2
Pow
ert
rain
Cost
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Saudi Aramco: Company General Use
Engine Technology Development
Fuel Change
Aramco’s Area of Interest
Fuel m
anufa
ctu
rers
(dro
p in f
uels
)
Automotive manufacturers
(focus on market fuels)
Saudi Aramco GCI Program
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Saudi Aramco: Company General Use
Octane on Demand (OOD) Technology OverviewD
isti
llati
on
Hydrotreating
Isomerization
Alkylation
Catalytic Reforming
Octane Boosting
H2S
• Higher Octane requires more energy intensive upgrading processes in the refinery
• Higher Octane is only required at limited operating conditions
• Full potential of downsizing/boosting technology will not be realized
• OOD uses two fuels to attain only the necessary anti-knock quality based on real-time
engine requirements
• OOD reduces average Octane requirement of gasoline engines
- Lower octane fuel (RON ~60-90) for urban driving (e.g. low Octane gasoline)
- High octane fuel (RON ~105-110) to extend the performance envelope (e.g. butanol, MTBE,
methanol, ethanol, ETBE, DIB)
• Two-tank/dual-fuel, on-board reforming and separation concepts
“Homeless H/Cs”
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Saudi Aramco: Company General Use
• Oil-based fuels have significant potential for delivering a reduction in GHG
emissions through deploying affordable, efficient and clean solutions
- when fuel and engine optimized as one system, the burden is shared between the oil
and auto sectors (Well to Wheel (WtW)) and even Cradle to Grave
- when such systems are deployed broadly (e.g. commercial transport, off-road and
even stationary power generation) to maximize the impact on GHGs
- and when low Octane gasoline fuel is utilized (GCI and OOD) ensuring refinery
sustainability
• More diesel and jet fuel demand compared to gasoline AND increase in octane
of gasoline pool
- this trend will be accentuated by growth in alternatives (EVs for passenger cars)
- great challenge to the refining industry – huge investments ($100s of billions
globally) AND surplus of “low-octane gasoline”
Final Thoughts
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Saudi Aramco: Company General Use
• Using low Octane gasoline fuel can present a viable pathway to mitigate the
projected shift in demand and reduce average octane requirement
- For LDV, GCI presents a viable and competitive pathway to improve the efficiency of
the gasoline engine using abundant gasoline-like fuels
- For HDV, GCI presents a viable and competitive pathway to potentially reduce the
operating cost and complexity of the Diesel engine while retaining its efficiency
• using low Octane gasolines shifts the after treatment requirement from soot/NOx to HC/CO
• compression ignition engines is the only option for this sector
• GCI Flavors
- Low engine content for emerging markets – emission standards are lagging
- High engine content for markets with stringent emission standards – Full time GCI
• Octane on Demand reduces average octane requirement further enabling
future downsized and boosted engines and relieves refinery stressors
Final Thoughts
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Saudi Aramco: Company General Use
• Share in the risk and cost of development and implementation
• Well-to-Wheel (WtW) approach to avoid shifting the burden to other sectors.
System Approach
to Reducing GHGs
Challenge in gaining
stakeholder
acceptance
Stakeholder Acceptance is Key to New Technology Adoption
Collaborative/consortia
approach to deliver a
“win-win” for all
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Saudi Aramco: Company General Use
Thank You
Amer A. Amer, Fuel Chief Technologist
Saudi Aramco R&DC