ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Ricardo Simões de Abreu Frente Inovar-Auto 2 - Sindipeças Julho de 2015 1 ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Ethanol is key to complement Brazilian Energetic Matrix How to improve it? • Higher Ethanol production • Higher vehicle efficiency • Preference to be used by consumer From Brazil Government, June, 2015 2 Today focus ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Ethanol is the best solution to reduce Green House Gases – From Well to Wheel Approach 81% 77% 60 49% 80 Relative Reduction of CO2 36% REF. 32% 100 23% CO2 Emission (%) 120 40 20 0 Standard Gasoline Standard Diesel Gasoline + Hybrid Diesel + Hybrid BEV Biodiesel Ethanol Well to Wheel Approach - Adapted from World Business Council for Sustainable Development • The concern with GHG is global and leading countries are planning strong actuation to significantly reduce the use of fossil fuels 3 ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Ethanol providing improved engine performance for Inovar-Auto 1 Downsizing Downsizing Compression RatioRatio Compression Turbo Turbo Friction and Cooling Direct Injection Direct Injection Variable valve train Key conditions: • The flex compromise needs to favor Ethanol • Ethanol needs to keep the price limit (~70% from gasoline) • Ethanol supply needs to be assured Hydrous Ethanol Low Viscosity oil Low water content ethanol Start-Stop InovarAuto Fuel efficiency potential -1% IPI -2% IPI Further improvements can be obtained with the reduction of Ethanol water content 4 ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Ethanol world demand to improve octane number G7 plans to reduce significantly the use of fossil fuels • Many countries are increasing the ethanol % in the gasoline blends. • In USA, 15% blend is approved • For octane number, the trend is a blend between 30% and E40% • For reducing GHG, the The already announced programs for OC improvement will increase consumption 39 billion liter/year by 2024 flexibility of engines to go beyond it will play a key rule in the future (Global Flex). 5 ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE LEI Nº 12.996, Altera a Lei nºs 12.715 - INOVARAUTO, 2,50 Consumo Energético [MJ/km] Art. 41-B.” O Poder Executivo, no âmbito do Inovar-Auto, poderá estabelecer alíquotas do Imposto sobre Produtos Industrializados - IPI menores para os veículos que adotarem motores flex que tiverem relação de consumo entre etanol hidratado e gasolina superior a 75% (setenta e cinco por cento), sem prejuízo da eficiência energética da gasolina nos veículos novos.” Energetic Efficiency(MJ/km) 2,30 Reference (2011) Referência (2011) 2,10 G 14,0 km/l E 9,71 km/l Inovar Limit MetaAuto Habilitação 1,90 G 15,93 km/l E 11,04 km/l IPI 1 p.p. Meta IPI 1 p.p. 75% IPI 2 p.p. Meta IPI 2 p.p. 1,70 G 17,26 km/l E 11,96 km/l 1,50 Autonomy considering same energetic efficiency for G e E. 1,30 800 6 900 1000 1100 1200 Mass [kg] 1300 1400 1500 © MAHLE ETHANOL AS PREFERENTIAL FUEL FOR THE FUTURE OF INTERNAL COMBUSTION ENGINE Main messages • Ethanol is a strategic element in the Brazilian energy matrix • Ethanol is the best solution to keep internal combustion engine in the low green house gases mobility matrix in the future. • Modern engine technologies can perform better running on Ethanol with reduced water content. • Ethanol is key for octane number improver and Green House Gases reduction. To improve the global penetration a GLOBAL FLEX engine running on low water content ethanol is necessary. • New engine technologies and low water content ethanol introduction will increase the fuel cost. That must be offset by productivity and technology gains in the whole chain to keep or increase the value to the end customers in a competitive way. All segments (Automotive Industry, Ethanol producers, Government) must work together to introduce it coordinated with Inovar Auto evolution. THANK YOU 7