The document discusses key trends in the global fuel market, including evolving emissions standards, advances in vehicle hardware technology like direct injection and turbocharging, and their impact on fuel and additive requirements. Stricter emissions regulations are driving new engine designs that introduce challenges for fuel performance. Additives can help maintain engine efficiency and reduce emissions by addressing issues like deposits and low-speed pre-ignition. Future engine technologies are expected to further stress fuel and additive performance.

1. ®
Functional Fuel for Advanced Vehicle Technology
SIMEA Conference
Sao Paulo, Brazil
September, 2016

2. ®
OECD
Developin
g Markets
Evolving
Regulatory &
Emissions
Standards
Advances in
Hardware
Technology
Fuels Quality
Dynamics
Retail
Landscape
Evolution
KEY GLOBAL TRENDS
Fuel Market Trends and Insights
Sustained Shift
in Miles Driven
in Mature
Markets
BioFuel
Variability =
Performance
Challenges
Expanding
Product
Performance
range /
Increased
Differentiation
demand from
Branded
Marketers
Acceleration of
DIG Market
Penetration
Fuel Quality MarketingClaims
Local
Solutions
required in
Developing
Markets
Expanded
adoption of
CO2 / FE
standards
Addition of
Gasoline PM
requirements
Next Gen
System
Developments
Underway
Increased
Octane
Demand =
PUL Demand
Geographic Shift Regulatory Hardware Technology
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

3. ®
Worldwide Passenger Car CO2 Emissions Expectations
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

4. ®
Relentless Drive Towards Lower CO2 Emissions
Driving New Powertrain Designs
Conventional
Designs
New
Designs
NaturallyAspirated Turbocharged
Port Fuel Injection Direct Injection
Large Bulky V6, V8
Downsized,
3 or 4 Cylinders
More stringent requirements
are driving new designs
Source: The International Council on Clean Transportation (ICCT)
5 and 6 speed auto
transmissions
8-10 speed AT
and CVT
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

5. ®
Big Picture on Light-Duty Gasoline Engine: PFI vs. DIG
Fuel/Air
mixing
Fuel
evaporation
Mixture
homogeneity
PFI Before
entering
the
cylinder
Before
entering
the cylinder
Good
DIG Inside
cylinder
During intake
and
compression
Not good
Dramatic market shift from PFI technology
to DIG for fuel economy improvement
PM/PN emission is a big concern
PFI
DIG
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

6. ®
Technology Drivers in Fuels Markets
Stringent CO2
/ FE Standards
Gasoline
PM/PN
Requirements
Evolving
Regulatory
& Emissions
Standards
Turbo, DIG,
Downsizing
New Exhaust
Aftertreatment
GPF’s
Advances in
Hardware
Technology
Fuel
Economy
Particle
Emissions
& GPFs
LSPI
Turbo
DIG
Opportunities and Challenges
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

7. ®
New Engine Designs Present New Challenges
New downsized engine
designs deliver superior
performance
Direct injection exposes
injectors to more severe
operating conditions
Hetergeneous/stratified
air-fuel mixtures produce
higher particulate
emissions
New engine designs are
prone to LSPI
at low-speed,
high-load conditions
New challenges also present new opportunities for fuel additives
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

8. ®
Gasoline Direct Injection – New Opportunities
LTFT
9
8
7
6
5
4
3
2
1
0
0 2000
LTFT,%
4000
Miles
6000 8000
CU
8
7
6
5
4
3
2
1
0
-1 0 2000
LTFT,%
4000 6000
Miles
8000
Plugged Holes Clean Holes
Additive
chemistry
CUDU
CUDU
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

9. ®
Gasoline Injector Deposits and Flow Loss (DIG)
Flow loss
without
additive
Flow
restoration
by additive
Dirty Clean
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

10. ®
High Octane Gasoline Enables Increased
Compression Ratio For Improved Fuel Efficiency
Higher octane fuel enables engine to operate at optimal conditions
for improved efficiency
0
5
10
15
20
6 16
FuelEconomyIncrease(%)
11
Compression Ratio
Thermal and
Mechanical Loss
Theoretical Thermal
Efficiency
Fuel
Economy
Source: JCAP
Higher compression ratio
improves fuel efficiency and
fuel economy
High compression can lead to
detonation
Detonation can result in
catastrophic engine change
Detonation can be controlled
Change engine settings, non-
optimal operation
Improve the fuel’s resistance to
detonation – increase octane
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

11. ®
Real World Cycle Testing Will Change Landscape
for Fuel Economy and Emission Claims
Real world driving will have significant impact on vehicle,
fuel, lubricant, emission and fuel economy claims.
Particulate numbers increase as injector deposits form
https://www.transportenvironment.org/press/psa-et-te-rendent-publiques-les-consommations-de-carburant-en-conditions-r%C3%A9elles-dutilisation
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

12. ®
Combustion: Much More Than Octane
Chemistry foundation & Product differentiation are key
elements of development
SOOT & PARTICULATES
CAVITATION
COMBUSTION
CHAMBER DEPOSITS
SPRAY &
ATOMIZATION
FLAME SPEED
MODIFIERS
CYCLE-TO-CYCLE
VARIABILITY
DIFFUSION FLAMES
& ULTRAFINES
LOW SPEED
PRE-IGNITION
INCOMPLETE
COMBUSTION
AUTO-IGNITION
INJECTOR
DEPOSITS
NOX, UHC, SECONDARY
AEROSOLS
Fuel
Economy
Power Emissions NVH Drivability
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

13. ®
Multi-faceted Problem, Here to Stay
DIG
Turbo
Charged
Engine
Durability
Reduced
Fuel
Economy
Higher
Emissions
Real World
Performance
Engine
Cleanliness
and
Efficiency
Drivability
To achieve further CO2 reductions, OEMs
will retain boosting/turbocharging in
future engine designs.
Effects on Engine Performance
A multi-faceted hurdle to engine performance.
Expected to worsen with even higher output engines
No drivers to revert back from
turbocharging to naturally aspirated
engines.
Functional Fuel essential with this
approach.
OEMs continue development of further
downsized, higher output engines.
Performance parameters may further increase
in severity and frequency in further downsized
engines.
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

14. ®
Fuel Additives Are Enabling An Evolution inFuel
and Vehicle Technology
Emission control and energy conservation policies are drivers for change
Particle emissions remains a challenge
Vehicle technology and test cycles have significant impact on
particulate emission
Clean Fuel solutions are complicated and are exemplified by biofuels
Fuel additives enable the safe and efficient production, transport and
utilization of fuel
Fuel additives maintain optimal vehicle performance
Fuel additives offer potential for fuel efficiency and emissions
improvement
Fuel additives provide means to effectively and efficiently modify fuel
properties
 Maintain optimal engine performance and reduce emissions
 Higher additive treat rates may be necessary for optimal vehicle performance
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation

15. ®
Thank You!
Developing
Markets
Evolving
Regulatory &
Emissions
Standards
Advanced
Hardware &
Technology
Fuel Quality
Dynamics
Competitive
Landscape
2016 © Afton Chemical Corp. Confidential and Proprietary. This document should not be copied, shared, or reproduced in any media without the express written permission of Afton Chemical Corporation