South Coast Air Quality Management District

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Execute Contract to Co-Sponsor Demonstration of Fischer Tropsch Synthetic Fuel in Heavy Duty Fleet Vehicles

SYNOPSIS: 

Diesel-powered heavy-duty vehicles contribute significantly to the Basin NOx and VOC emission inventory. The proposed demonstration will evaluate, quantify, and compare emissions of criteria, non-criteria, and toxic pollutants from using Fischer Tropsch and CARB diesel fuels in six late model medium- and heavy-duty vehicles in the Basin for 6 to 12 months. Initial studies have shown a 12% NOx and 24% PM emissions reduction. The contractors, National Renewable Energy Laboratory and West Virginia University, expect this project to show at least 90% PM emissions reduction for vehicles retrofitted with catalyzed particulate filters. Cost to the AQMD for the proposed $737,855 demonstration shall not exceed $367,855. The United States Department of Energy will provide $370,000.

COMMITTEE: 

Technology, July 28, 2000, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with the National Renewable Energy Laboratory to co-sponsor demonstration of Fischer Tropsch synthetic fuel in heavy- and medium-duty vehicles in the amount not to exceed $178,001 from the Clean Fuels Fund.
   
   
2. Authorize the Chairman to execute a contract with West Virginia University to cosponsor transportable testing as part of the demonstration of Fischer Tropsch synthetic fuel in heavy- and medium-duty vehicles in an amount not to exceed $189,854 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Mobile sources account for approximately 88 and 61 percent of the total 1993 Basin nitrogen oxides (NOx) and volatile organic compound (VOC) emissions inventory, respectively. The majority of these emissions was attributed to medium- and heavy-duty diesel powered trucks and buses. These emissions are projected to increase along with particulate matter (PM) and carcinogenic—such as benzene and formaldehyde—emissions as high fuel-efficient diesel engines replace low fuel efficiency gasoline engines in pickup trucks and sport utility vehicles. This emission trend has prompted:

• AQMD to adopt clean fuel fleet vehicle rules and develop specific short- and long-term emissions reduction measures to address air pollution problems from mobile sources. These measures include many strategies, one of which is the development, evaluation, and demonstration of alternative fuel for use in heavy-duty trucks and buses in the Basin.
  
  
• The California Air Resources Board (CARB) and United States Environmental Protection Agency (U.S. EPA) to develop regulations to tighten emissions standards for heavy duty engines.

To reduce emissions from diesel-powered vehicles, AQMD is encouraging and supporting research projects involving development, evaluation, and demonstration of alternative or synthetic diesel fuels for use in diesel trucks and buses in the Basin. Over the years, synthetic fuels such as Fischer Tropsch (F-T) fuels have received increased attention for their potential to reduce exhaust emissions from unmodified diesel vehicles. This heightened interest prompted AQMD to co-sponsor a project with the Department of Energy (DOE) to assess the (1) properties and production of F-T fuels and (2) potential emissions benefits from using these fuels in diesel engines. Based on this effort and other studies by NREL, DOE, and others, F-T fuels have been characterized to have good autoignition properties and very low sulfur and aromatic content. In addition, these fuels produce lower exhaust emissions of NOx (12%), VOC, PM (24%), and carcinogenic pollutants when compared to traditional national diesel fuel and CARB diesel fuel.

F-T synthetic fuels are products of a three-step chemical process. The first step involves catalytic reaction of desulfurized methane, coal, or biomass with steam to produce a synthesis gas containing mostly carbon monoxide and hydrogen. With the help of catalysts, the synthesis gas is converted to a variety of hydrocarbon liquids and wax (waxy synthetic crude) depending on the catalyst used and the operating temperature of the reactor. The waxy synthetic crude is separated into middle distillates (F-T diesel) fuels using hydrocracking and isomerization processes. As the public begins to raise issue of global warming, many industries and regulatory agencies have focused on the added benefits of Fischer Tropsch process. Specifically, the process has a potential to be used for controlling emissions of greenhouse gases by converting flared or vented gas to F-T diesel fuels, which could then be transported economically over long distance to user sites.

Proposal

NREL and its project partners from DOE and West Virginia University (WVU) have proposed to scale-up an earlier demonstration study involving field assessment of emissions from heavy–duty trucks and buses using F-T fuels. Specifically, this proposal will evaluate, quantify, and compare emissions of criteria, non-criteria, and toxic pollutants from the use of F-T fuels in six centrally fueled fleet medium- or heavy-duty trucks or buses in the Basin. The proposed work scope includes:

• Selection, procurement, and storage of F-T synthetic fuel, and participating fleet vehicles.
  
  
• Development of protocol for analyzing and comparing composition of F-T fuel to the national and CARB diesel fuels.
  
  
• Identification and resolution of engine compatibility issues relating to fuel lubricity, elastomer compatibility, storage stability, and engine durability.
  
  
• Procurement and installation of catalyzed filters.
  
  
• Development of protocol for collecting and analyzing exhaust samples.
  
  
• Collection and statistical analyses of emissions and operating data including fuel consumption, maintenance, reliability, and cost during the 6 or 12 months of this demonstration.
  
  
• Documentation of the entire Fischer Tropsch fleet experience, including benefits of F-T fuels over CARB and national diesel fuels, and any adverse environmental impact.

Benefits and Deliverables to AQMD

The proposed project is included in the March 2000 update of the Technology Advancement Plan under Project 2000M2-2, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications." The proposed contract supports the development of an advanced alternative fuel technology that could potentially be used to reduce NOx and PM emissions from diesel-powered heavy-duty trucks and buses and methane emissions. In addition if successful, F-T fuels would provide an opportunity for catalysts to be an economically feasible means for controlling NOx emissions without the usual concern of catalyst poisoning. This project, if successfully implemented basinwide, would produce at least 23 (out of 197) and 17 (out of 19) tons per day reduction in the 1993 Basin NOx and PM emissions from diesel-powered heavy-duty vehicles, respectively.

Sole Source Justification

Section VIII(B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source may be justified. This request for a sole source award is made under provisions B.2.c(1): the unique experience and capabilities of the proposed contractor or contractor team and B.2.d(8): research and development efforts with educational institutions or non-profit organizations.

NREL is a non-profit national laboratory, and receives most of its annual budget from DOE, the other co-sponsor of this project, to conduct work on behalf of various DOE program offices and program managers. West Virginia University is an educational institution, one of the few that has a capability to test heavy-duty vehicles on a transportable chassis dynamometer. NREL and WVU have many years of experience in evaluating a wide range of alternative fuel and energy technologies for on-road applications. They have recently completed several studies involving the performance of synthetic fuels in heavy-duty vehicles. Specifically, these studies include: (1) an assessment of the properties and production of F-T fuels, and the potential emissions reductions for these fuels in applications within South Coast Air Basin, and (2) a small scale field evaluation of emissions from heavy-duty trucks and buses using F-T and other synthetic diesel fuels, respectively. These studies and NREL experience in the area of fuel formulations have made NREL organization a leading expert in assessing and advancing the use of F-T fuels as a means of controlling air pollution from mobile sources. West Virginia University will conduct the vehicle testing utilizing its unique transportable heavy-duty chassis dynamometer system.

The proposed demonstration is a continuation of the F-T fuel assessment study conducted by NREL in 1998 for AQMD. To maintain continuity of the earlier project and since NREL has achieved important milestones, it is appropriate to conclude that NREL has the experience and is well qualified to conduct this demonstration for AQMD. In addition, NREL has secured cost-sharing to complete this demonstration from the DOE, as described below.

Resource Impact

The total cost of this project is estimated to be $737,855, of which AQMD cost shall not exceed $367,855. The DOE direct and in-kind contributions for this project amount to $340,000 and $30,000, respectively.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advance enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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