Potentials of Coconut Oil As Diesel Substitute in Pacific Island Countries

Rheinisch-Westfälische Technische Hochschule Aachen

Fakultät für Maschinenwesen

Lehrstuhl für Reaktorsicherheit und -technik

Univ.-Prof. Dr.-Ing. Kurt Kugeler

Diplomarbeit

Potentials of Coconut Oil as Diesel Substitute in Pacific Island Countries

vorgelegt von:

cand. ing. Daniel Fürstenwerth

betreut von:

Dr.-Ing. Inga Maren Tragsdorf (RWTH Aachen)

Dipl.-Ing. Gerhard Zieroth (

Executive Summary i

Executive Summary

The use of coconut oil as a substitute for diesel fuel is attracting increasing interest. This MSc thesis enhances the understanding of this technology and points out directions for its future application in the Republic of the Marshall Islands (RMI) as well as other Pacific Island Countries. The research work was undertaken by the PIEPSAP project in cooperation with RWTH University in Aachen and it is based on a literature review and field data obtained in RMI and Fiji. The use of straight vegetable oil in standard diesel engines leads to certain adverse technical and consequently financial effects. The extent of these depends on factors related to the (i) engine, (ii) oil and, equally important, (iii) utilisation and maintenance pattern. In principle, all adverse technical effects known from other vegetable oils occur when coconut oil is used. Important findings are that (i) “simply” replacing diesel fuel with coconut oil can by no means be recommended; (ii) blending of coconut oil with other fuels or the use of additives may decrease the rate but not prevent adverse technical effects; (iii) use of adaptation technology is a prerequisite, but no guarantee for a successful application of straight coconut oil. Before using coconut oil, a case-by-case analysis of the specific application is necessary, including the engine used and expected utilisation pattern. The financial consequences of using coconut oil in various potential applications in the RMI have been analysed, based on the results of the technical research. Extra costs incurred in replacing diesel fuel with coconut oil consist of cost for additional (i) maintenance, (ii) repair, (iii) higher fuel consumption and (iv) investment in adaptation technology. The extra cost for each litre of diesel oil that is replaced is calculated for various potential applications in the RMI. These vary from 0,19 USD/USGallon [0,05 USD/litre] for large stationary applications to 0,95 USD/USGallon [0,25 USD/litre] for automotive applications in the best cases. Based on the technical research and financial estimates, it is possible to recommend a prioritisation of future efforts to promote the use of straight coconut oil in the RMI:

Prioritization of Future Applications in Majuro 1st Priority The use of straight coconut oil in the power plant of Majuro should receive the highest priority. Preliminary analysis indicates that most of the coconut oil produced in the RMI could be used with positive financial and economic outcomes. The future development of world market prices of both coconut oil and diesel need to be in the focus of further analysis. 2nd Priority Using coconut oil in professionally used trucks as well as in selected pieces of heavy-duty equipment may become an attractive option if diesel prices continue to rise. How to introduce appropriate adaptation technology and how to train the operating personnel are the main challenges to face. ii

Other Given the specific circumstances in the RMI, use of coconut oil for inter atoll shipping should only be considered when international, scientifically backed experiences are available. For the use in private cars, straight coconut oil does not appear as a viable solution due to adverse technical and non-technical circumstances in the RMI. For this application, production of biodiesel from coconut oil as well as other sources should be in the focus of further analysis.

Prioritization of Future Applications on Outer Islands 1st Priority Use of coconut oil should be considered whenever a new engine needs to be purchased for a power plant refurbishment project. In such a case electricity consumption is already established and important technical challenges related to the operation of the engine are reduced. The installation of a dedicated small- scale oil mill would be justified. 2nd Priority Any measure to promote use of coconut oil in the outer islands ought to consider the sole or additional use of small “historical” engines for individual power generation, such as Lister engines from the 1960’s. Main focus of further analysis should be the establishment of a spare parts infrastructure, the acceptability of such technology among outer island population and whether the use of such engines alone could justify a local coconut oil production. Other Use of straight coconut oil in new electrification projects will always face large technical and non-technical challenges that are difficult to overcome, making a success at the current state of technology highly questionable. Only if appropriate solutions to secure an “adapted” utilisation and maintenance pattern can be developed, such projects should be considered. Promoting the use of coconut oil in modern generators of any kind for individual use of general rural population should not receive priority. While few technically skilled consumers could benefit, negative experiences would be highly likely to prevail. At the current state of technology, use of coconut oil for local sea or land transportation should not be promoted.

Contents iii

Contents

List of Figures ...... vii

List of Tables ...... xi

Abbreviations...... xiii

1 Introduction...... 1

Part I - State of the Art of Using Vegetable Oil as Fuel

2 Vegetable Oil as Fuel ...... 5 2.1 Production of Vegetable Oil ...... 5 2.1.1 Small-Scale Production ...... 5 2.1.2 Large-Scale Production ...... 6 2.2 Properties of Vegetable oil as Fuel ...... 7 2.2.1 General Properties of Fossil Fuels ...... 7 2.2.2 General Properties of Vegetable Oil...... 7 2.2.3 Properties of Vegetable Oil Limited in the DIN V 51605...... 8

3 Relevant Design Characteristics of Diesel Engines ...... 12 3.1 Design Variants of Fuel Supply System...... 12 3.2 Combustion Chamber Design Variants...... 12

4 Technical Effects of Using Vegetable Oil as Fuel...... 12 4.1 Failures in the Fuel Supply System...... 12 4.1.1 Deposits and Sediments in the Fuel Supply System...... 12 4.1.2 Increased Wear of the Injection System...... 12 4.1.3 Failures of the Injection Pump ...... 12 4.1.4 Leakages in the Fuel Supply System ...... 12 4.2 Failures Related to the Combustion...... 12 4.2.1 Reasons for Deposits Formation ...... 12 4.2.2 Influencing Factors on Formation of Deposits ...... 12 4.2.3 Occurrence of Deposits ...... 12 4.3 Failures Related to the Lubrication System ...... 12 4.3.1 Deterioration of Lubricant Oil Quality...... 12 4.3.2 Polymerisation of Lubricant Oil...... 12 4.4 Other Effects ...... 12

5 Strategies Used and Experiences Made with Using Vegetable Oil...... 12 iv Contents

5.1 Strategies Focusing on the Fuel ...... 12 5.1.1 Blending with Fossil Fuel...... 12 5.1.2 Using Additives...... 12 5.1.3 Improving Vegetable Oil Quality ...... 12 5.1.4 Chemical Adaptation of the Fuel ...... 12 5.2 Strategies Focusing on the Engine ...... 12 5.2.1 Vegetable Oil Engines ...... 12 5.2.2 Vegetable Oil Compatible Engines...... 12 5.2.3 Adapting Diesel Engines ...... 12

6 Cost Implications of Using Vegetable Oil as Fuel...... 12

7 Synopsis of State of the Art...... 12

Part II - Using Coconut Oil as Fuel in the Pacific Islands

8 Coconut Oil as Fuel...... 12 8.1 Production of Coconut Oil in the PICs...... 12 8.1.1 Large-Scale Coconut Oil Production ...... 12 8.1.2 Small-Scale Coconut Oil Production ...... 12 8.2 Qualities of Coconut Oil in the PICs...... 12 8.2.1 Properties of Coconut Oil Described in Literature ...... 12 8.2.2 Properties of Coconut Oil Limited in the DIN V 51605 ...... 12 8.2.3 Properties of Coconut Oil for Use in Heavy Fuel Oil Engines...... 12 8.3 Conclusions on Fuel Quality of Coconut Oil...... 12

9 Technical Effects of Use of Coconut Oil as Fuel ...... 12 9.1 Scientific Experiences with Coconut Oil as Fuel ...... 12 9.2 Practical Experiences with Coconut Oil as Fuel...... 12

10 Analysis of Experiences with Coconut Oil as Fuel in the RMI...... 12 10.1 Country...... 12 10.2 Use of Coconut Oil as Fuel in the RMI...... 12 10.3 Technical Effects of Using Coconut Oil in the RMI ...... 12 10.3.1 In Depth Analysis of Experiences Made at Tobolar...... 12 10.3.2 Experiences of the Construction Company PII...... 12 10.3.3 Using Coconut Oil in an “Outer Island Setting”...... 12

11 Conclusions on the Use of Coconut Oil in the Pacific Islands...... 12

Contents v

Part III - Quantification of Cost incurred in the Use of Coconut Oil as Fuel

12 Identification of Possible Applications in the RMI...... 12 12.1 Population and Infrastructure Characteristics ...... 12 12.2 Introduction to Possible Applications for Use of Coconut Oil ...... 12 12.2.1 Production and Use of Coconut Oil in Urban Areas ...... 12 12.2.2 Production and Use of Coconut Oil in the Outer Islands ...... 12

13 Description of Applications and Definition of Cases...... 12 13.1 General Technical and Maintenance Characteristics...... 12 13.1.1 Fuel Quality ...... 12 13.1.2 Engine Technology...... 12 13.1.3 Utilisation and Maintenance ...... 12 13.2 Definition of Specific Cases ...... 12 13.2.1 Urban Applications ...... 12 13.2.2 Rural Applications...... 12

14 Factors Considered and Quantitative Data Available...... 12 14.1 Definition of Maintenance and Failure Categories ...... 12 14.1.1 Maintenance ...... 12 14.1.2 Failure Categories ...... 12 14.2 Overview of Influencing Parameters ...... 12 14.3 Quantitative Data Available...... 12 14.3.1 Quantitative Data on Need for Maintenance ...... 12 14.3.2 Quantitative Data on Incidents of Failures...... 12 14.3.3 Quantitative Data on Fuel Consumption...... 12

15 Quantitative Estimation of Technical Consequences ...... 12 15.1 Estimation of Extra Maintenance ...... 12 15.2 Estimation of Probability of Failures...... 12 15.3 Estimation of Fuel Consumption ...... 12

16 Calculation of Financial Consequences ...... 12 16.1 Description of Cost Categories ...... 12 16.2 Factors Excluded from the Financial Analysis ...... 12 16.3 Data Used to Quantify Costs...... 12 16.4 Costs of Coconut Oil ...... 12 16.5 Standardisation of Financial Effects...... 12 vi Contents

17 Quantitative Financial Results...... 12 17.1 Urban Applications ...... 12 17.1.1 Small Vehicles in Urban Areas ...... 12 17.1.2 Heavy-Duty Machinery ...... 12 17.1.3 Sea Transportation ...... 12 17.1.4 Large-Scale Power Generation ...... 12 17.2 Rural Applications ...... 12 17.2.1 Non-Stationary Applications ...... 12 17.2.2 Communal Power Generation ...... 12 17.2.3 Individual Power Generation ...... 12 17.3 Summary of Results - Extra Cost per Litre...... 12 17.3.1 Variations within Applications ...... 12 17.3.2 Variations between Applications...... 12

18 Absolute Financial Consequences of Using Coconut Oil in the RMI...... 12 18.1 Prices for Fuels in the RMI...... 12 18.2 Urban Applications in the RMI...... 12 18.2.1 Small Vehicles in Majuro ...... 12 18.2.2 Heavy-Duty Machinery ...... 12 18.2.3 “Urban” Sea Transportation...... 12 18.2.4 Large-Scale Power Generation ...... 12 18.3 Rural Applications in the RMI...... 12 18.3.1 Non-Stationary Applications in the Outer Islands ...... 12 18.3.2 Communal Power Generation ...... 12 18.3.3 Individual Power Generation ...... 12 18.4 Summary of Results – Absolute Financial Consequences ...... 12

19 Recommendations for Promoting the Use of Coconut Oil in the RMI ...... 12

20 Summary and Outlook...... 12

21 Literature ...... 12

Appendix...... 12 Appendix 1 - Summary of Quantitative Survey in the RMI ...... 12 Appendix 2 - Estimated Probabilities of Failures...... 12 Appendix 3 - Algorithms in Calculation of Financial Consequences ...... 12 Appendix 4 - Complete Calculation of Financial Consequences...... 12 Appendix 5 – Standardised Results ...... 12

List of Figures vii

List of Figures

FIGURE 2.1: PRODUCTION PROCESS IN SMALL-SCALE PRODUCTION OF VEGETABLE OILS [WID02]...... 5 FIGURE 2.2: EQUIPMENT USED IN SMALL-SCALE PRODUCTION [STO06A]...... 6 FIGURE 2.3: CHEMICAL STRUCTURE OF VEGETABLE OIL [THU02A]...... 7 FIGURE 2.4: VISCOSITY OF VEGETABLE OILS [MEI06]...... 9 FIGURE 3.1: LOW-PRESSURE FUEL SUPPLY SYSTEM [BOS02]...... 12 FIGURE 3.2: INJECTION PUMP DESIGN VARIANTS [DEL06][BOS06] ...... 12 FIGURE 3.3: INDIRECT INJECTION - COMBUSTION CHAMBER AND INJECTION NOZZLE [BOS02][FIS03] ...... 12 FIGURE 3.4: DIRECT INJECTION - COMBUSTION CHAMBER AND INJECTION NOZZLE [BOS93][FIS03] ...... 12 FIGURE 4.1: INCREASED WEAR OF AN INJECTION PUMP PLUNGER [FRI06] ...... 12 FIGURE 4.2: LEAKAGES IN THE INJECTION SYSTEM [THU02B] ...... 12 FIGURE 4.3: DEPOSITS ON INJECTION NOZZLE [MAU03]...... 12 FIGURE 4.4: NORMAL (LEFT) AND IMPACTED (RIGHT) SPRAY PATTERN [SEN97]...... 12 FIGURE 4.5: DEPOSITS ON PISTON AND PISTON RINGS [MAU03] ...... 12 FIGURE 4.6: DEPOSITS ON VALVES [MAU03]...... 12 FIGURE 4.7: PHASE SEPARATION OF LUBRICANT OIL [SCH06A]...... 12 FIGURE 5.1: QUALITY CONTROL OF SMALL-SCALE OIL PRODUCTION IN GERMANY [REM03]...... 12 FIGURE 5.2: PISTON DESIGN OF THE ELSBETT ENGINE [ELS03]...... 12 FIGURE 5.3: REFERENCE LIST OF BIOFUEL PROJECTS OF MAN B&W [CAR05]; PICTURE LEFT [WAR06] ...... 12 FIGURE 5.4: "HISTORICAL" ENGINE DESIGN - LISTEROID; PICTURE LEFT [LOV06], PICTURE RIGHT [LIS52] ...... 12 FIGURE 5.5: ADAPTATION OF PISTON IN A DIRECT INJECTION ENGINE [VAI06B] ...... 12 FIGURE 5.6: TWO-TANK ADAPTATION KIT OF ELSBETT COMPANY [ELS06B]...... 12 FIGURE 5.7: FUEL CONSUMPTION IN GERMANY 2005 [SCH06C]...... 12 FIGURE 5.8: ENGINE DESIGN OF SMALL KUBOTA ENGINES [KUB06] ...... 12 FIGURE 5.9: INCIDENTS OF FAILURES DURING THE "100-TRACTOR- DEMONSTRATION-PROJECT" [HAS05]...... 12 viii List of Figures

FIGURE 6.1: DIESEL AND VEGETABLE OIL FUELS - TOTAL COST PER 100 KM [ARN05] ...... 12 FIGURE 6.2: COST OF REPAIR DURING 3 YEARS OF USING VEGETABLE OIL [HAS05]...... 12 FIGURE 8.1: MAP OF THE PACIFIC ISLAND COUNTRIES [OCH06]...... 12 FIGURE 8.2: COPRA PRODUCTION...... 12 FIGURE 8.3: FILTRATION SYSTEM USED IN THE MARSHALL ISLANDS...... 12 FIGURE 8.4: DIRECT MICRO EXPELLING - PRODUCTION PROCESS ...... 12 FIGURE 8.5: SMALL-SCALE SCREW PRESS - PRODUCTION PROCESS...... 12 FIGURE 8.6: CHARACTERISTIC FUEL QUALITIES OF COCONUT OIL...... 12 FIGURE 8.7: VARIABLE FUEL QUALITIES OF COCONUT OIL...... 12 FIGURE 8.8: FUEL QUALITIES OF COCONUT OIL FOR HFO ENGINES ...... 12 FIGURE 9.1: GENERATOR (250 KW) USED ON COCONUT OIL IN SAVAI'I, SAMOA [CLO05][IWA06] ...... 12 FIGURE 9.2: GENERATOR (40 KW) USED ON COCONUT OIL IN WELANGI, FIJI ...... 12 FIGURE 9.3: ADAPTED CAR USED ON COCONUT OIL [CLO06B]...... 12 FIGURE 10.1: MAP OF THE MARSHALL ISLANDS [EPP01] ...... 12 FIGURE 10.2: BIOFUEL SALES BY CUSTOMER...... 12 FIGURE 10.3: TOBOLARS COMPANY VEHICLES...... 12 FIGURE 10.4: DEPOSITS ON INJECTION NOZZLE - TOBOLARS PICK-UP TRUCK ...... 12 FIGURE 10.5: DEPOSITS ON PISTON - TOBOLARS PICK-UP TRUCK ...... 12 FIGURE 10.6: DEPOSITS ON EXHAUST VALVE - TOBOLARS PICK-UP TRUCK...... 12 FIGURE 10.7: SCORING OF BEARING SHELL - TOBOLARS PICK-UP TRUCK...... 12 FIGURE 10.8: DEPOSITS IN EXHAUST MANIFOLD - TOBOLARS PAYLOADER...... 12 FIGURE 10.9: INCREASED WEAR OF INJECTION SYSTEM - EQUIPMENT OF PII ...... 12 FIGURE 10.10: DUCTILE DEPOSITS ON INJECTION PUMP PLUNGER - EQUIPMENT OF PII ...... 12 FIGURE 10.11: INCOMPLETE COMBUSTION OF COCONUT OIL - EQUIPMENT OF PII...... 12 FIGURE 10.12: DIRECT INJECTION GENERATOR IN AN "OUTER ISLAND SETTING" ...... 12 FIGURE 12.1: SATELLITE PICTURE OF MAJURO ATOLL AND MAJURO TOWN [GOO06] ...... 12 FIGURE 12.2: OUTER ATOLLS AND ISLANDS OF THE RMI [EPP01]...... 12 FIGURE 12.3: SATELLITE PICTURES OF WOTJE ATOLL [GOO06] ...... 12 List of Figures ix

FIGURE 12.4: COCONUT OIL AVAILABLE IN MAJURO, BASED ON COPRA PRODUCTION [EPP01] (ASSUMING 60 % EXTRACTION RATE)...... 12 FIGURE 12.5: COCONUT OIL AVAILABLE PER ATOLL, BASED ON COPRA PRODUCTION [MCG05] (ASSUMING 55 % EXTRACTION RATE) ...... 12 FIGURE 13.1: LOAD PATTERN - INDIVIDUAL LAND TRANSPORTATION ...... 12 FIGURE 13.2: LOAD PATTERN - PROFESSIONAL LAND TRANSPORTATION...... 12 FIGURE 13.3: LOAD PATTERN - HEAVY DUTY MACHINERY IN URBAN AREAS ...... 12 FIGURE 13.4: LOAD PATTERN - "URBAN" SEA TRANSPORTATION ...... 12 FIGURE 13.5: LOAD PATTERN - LARGE-SCALE POWER GENERATION...... 12 FIGURE 13.6: LOAD PATTERN - RURAL LAND TRANSPORTATION ...... 12 FIGURE 13.7: LOAD PATTERN - RURAL HEAVY DUTY...... 12 FIGURE 13.8: LOAD PATTERN - "RURAL" SEA TRANSPORTATION...... 12 FIGURE 13.9: LOAD PATTERN - COMMUNAL POWER GENERATION (NEW) ...... 12 FIGURE 13.10: DAILY LOAD CURVE OF WOTJE AND JALUIT POWER PLANTS...... 12 FIGURE 13.11: LOAD CURVE - COMMUNAL POWER GENERATION (JALUIT) ...... 12 FIGURE 13.12: LOAD PATTERN - INDIVIDUAL POWER GENERATION ...... 12 FIGURE 14.1: INFLUENCING PARAMETERS ON TECHNICAL EFFECTS...... 12 FIGURE 16.1: OPPORTUNITY COST OF COCONUT OIL IN THE RMI ...... 12 FIGURE 16.2: SUMMARY OF PRICES FOR COCONUT OIL IN ALL APPLICATIONS...... 12 FIGURE 16.3: EXAMPLE OF CALCULATION OF "EXTRA COST PER LITRE" ...... 12 FIGURE 16.4: EXAMPLE OF RESULTS - "EXTRA COST PER LITRE"...... 12 FIGURE 16.5: TRANSFORMATION FROM "EXTRA COST PER LITRE" TO "BANDWIDTH OF EXTRA COST PER LITRE" ...... 12 FIGURE 17.1: EXTRA COST PER LITRE - SMALL VEHICLES IN URBAN AREAS (ALL CASES)...... 12 FIGURE 17.2: EXTRA COST PER LITRE - SMALL VEHICLES IN URBAN AREAS (BEST CASES)...... 12 FIGURE 17.3: EXTRA COST PER LITRE - HEAVY-DUTY MACHINERY IN URBAN AREAS ...... 12 FIGURE 17.4: EXTRA COST PER LITRE - "URBAN" SEA TRANSPORTATION ...... 12 FIGURE 17.5: EXTRA COST PER LITRE - LARGE-SCALE POWER GENERATION...... 12 FIGURE 17.6: EXTRA COST PER LITRE - NOT-STATIONARY APPLICATIONS IN RURAL AREAS...... 12 x List of Figures

FIGURE 17.7: EXTRA COST PER LITRE - COMMUNAL POWER GENERATION ...... 12 FIGURE 17.8: EXTRA COST PER LITRE - INDIVIDUAL POWER GENERATION ...... 12 FIGURE 17.9: “BANDWIDTH OF EXTRA COST PER LITRE” - BEST CASES OF URBAN APPLICATIONS ...... 12 FIGURE 17.10: “BANDWIDTH OF EXTRA COST PER LITRE” - BEST CASES OF RURAL APPLICATIONS...... 12 FIGURE 18.1: PRICE DIFFERENCE DIESEL - COCONUT OIL IN ALL APPLICATIONS ...... 12 FIGURE 18.2: ABSOLUTE FINANCIAL CONSEQUENCES – SMALL VEHICLES IN URBAN AREAS ...... 12 FIGURE 18.3: ABSOLUTE FINANCIAL CONSEQUENCES – HEAVY-DUTY MACHINERY ...... 12 FIGURE 18.4: ABSOLUTE FINANCIAL CONSEQUENCES - "URBAN" SEA TRANSPORTATION...... 12 FIGURE 18.5: ABSOLUTE FINANCIAL CONSEQUENCES - LARGE-SCALE POWER GENERATION...... 12 FIGURE 18.6: ABSOLUTE FINANCIAL CONSEQUENCES - NON-STATIONARY APPLICATIONS IN RURAL AREAS ...... 12 FIGURE 18.7: ABSOLUTE FINANCIAL CONSEQUENCES - COMMUNAL POWER GENERATION...... 12 FIGURE 18.8: ABSOLUTE FINANCIAL CONSEQUENCES - INDIVIDUAL POWER GENERATION...... 12

List of Tables xi

List of Tables

TABLE 2.1: QUALITY REQUIREMENTS FOR VEGETABLE OILS (DIN V 51605)...... 12 TABLE 4.1: VOLUMETRIC HEATING VALUES OF VEGETABLE OILS...... 12 TABLE 6.1: ESTIMATIONS OF FINANCIAL CONSEQUENCES PUBLISHED IN LITERATURE...... 12 TABLE 8.1: PROPERTIES OF COCONUT OIL NET CALORIFIC VALUE AND CETANE NUMBER...... 12 TABLE 8.2: CHARACTERISTIC FUEL QUALITIES OF COCONUT OIL - NUMERICAL RESULTS ...... 12 TABLE 8.3: VARIABLE FUEL QUALITIES OF COCONUT OIL – NUMERICAL RESULTS ...... 12 TABLE 14.1: QUANTITATIVE DATA AVAILABLE – DEPOSITS IN THE FUEL SUPPLY...... 12 TABLE 14.2: QUANTITATIVE DATA AVAILABLE - MINOR FAILURE OF INJECTION SYSTEM ...... 12 TABLE 14.3: QUANTITATIVE DATA AVAILABLE - FAILURE OF INJECTION NOZZLE...... 12 TABLE 14.4: QUANTITATIVE DATA AVAILABLE - MAJOR FAILURE OF INJECTION PUMP ...... 12 TABLE 14.5: QUANTITATIVE DATA AVAILABLE - MINOR FAILURE DUE TO DEPOSITS...... 12 TABLE 14.6: QUANTITATIVE DATA AVAILABLE - MAJOR FAILURE DUE TO DEPOSITS...... 12 TABLE 14.7: QUANTITATIVE DATA AVAILABLE - MAJOR FAILURE DUE TO LUBRICANT OIL POLYMERISATION...... 12 TABLE 14.8: VOLUMETRIC HEATING VALUES OF COCONUT OIL ...... 12 TABLE 15.1: EXAMPLE OF ESTIMATED PROBABILITIES OF FAILURES...... 12 TABLE 17.1: PRIORITISATION OF APPLICATIONS IN URBAN AREAS...... 12 TABLE 17.2: PRIORITISATION OF APPLICATIONS IN RURAL AREAS ...... 12 TABLE 18.1: SUMMARY OF ABSOLUTE FINANCIAL CONSEQUENCES - BEST CASES ...... 12 TABLE 20.1: SUMMARY OF "EXTRA COST PER LITRE" - BEST CASES ...... 12 TABLE 20.2: SUMMARY OF ABSOLUTE FINANCIAL CONSEQUENCES IN THE RMI - BEST CASES...... 12

Abbreviations xiii

Abbreviations

ASG Analytik Service Gesellschaft (company name)

CIF Cost Insurance Freight

CIRAD Centre de Coopération Internationale en Recherche Agronomique pour le Développement

CNO Coconut Oil

DI Direct Injection

DME Direct Micro Expelling

FOB Free on Board

GTZ Gesellschaft fuer Technische Zusammenarbeit

HFO Heavy Fuel Oil

IDI Indirect Injection

MEC Marshall Island Electricity Company

PICs Pacific Island Countries

PIEPSAP Pacific Islands Energy Policy and Strategic Action Plan

PII Pacific International Incorporation

RMI Republic of the Marshall Islands

SOPAC South Pacific Applied Geosciences Commission

SUV Sports Utility Vehicle

UNDP United Nations Development Project

1 Introduction 1

1 Introduction

Sustainable development has become an accepted concept in setting political priorities on national as well as global scale. Various countries and regions have initiated activities that aim at fostering sustainable development in form of specific projects.

The Pacific Island Countries (PICs) at the World Summit on Sustainable Development in Johannesburg, 2002, launched a regional energy sector umbrella initiative. Its goal is to increase availability of adequate, affordable and environmentally sound energy for the sustainable development of the PICs and to accelerate transfer and adoption of clean and renewable energy technologies. One of the projects that emerged from the initiative is PIEPSAP, the Pacific Islands Energy Policy and Strategic Action Plan. The goal is to improve capacity of PICs to develop practical national energy policies, and strategic action plans to implement the policies.

The Danish Government is financing PIEPSAP under the United Nations Development Program’s Thematic Trust Fund Energy for Sustainable Development. Coordination and execution of the program are delegated to the South Pacific Applied Geosciences Commission (SOPAC). SOPAC is an inter-governmental, regional organisation dedicated to providing services to promote sustainable development in the countries it serves. Its work is carried out through the SOPAC Secretariat based in Suva, Fiji.1

The Pacific Island Countries face a unique and challenging situation with respect to energy for sustainable development:

- economies are severely burdened with expenses for imported fuel supply;

- environmental vulnerability through climate change, especially sea level rise, is very high;

- institutional capacities in regard to energy issues are limited.

More specifically, Pacific Island Countries are extremely vulnerable to fluctuations of commodity prices on the world market. Most countries are at present 100 % dependent on imported fuels for transportation and electricity generation. At the same time world market prices dictate the earnings for the major export products, including coconut oil. As remote and small producers of coconut oil and consumers of imported fuels, PICs are penalised twice by high transport and transaction cost. This has led to situations where a ton of coconut oil is worth less than its energy equivalent in diesel supplied to remote locations.

1 More details on the organisational structure and objectives of ongoing projects are available at SOPAC web site http://www.sopac.org/tiki/tiki-index.php?page=PIEPSAP 2 1 Introduction

Coconut Oil as Fuel in the Pacific Islands Use of coconut oil as fuel promises a broad range of positive effects to the Pacific Island Countries. Besides reducing carbon dioxide emissions, substitution of fossil fuel imports incurs macroeconomic benefits. It is also considered as a promising means to safeguard the coconut oil industry, which remains a major source of income and often the sole employment opportunity for large parts of rural populations. This has led to a strong interest in using coconut oil as fuel. Amongst other activities, the PIEPSAP project aims to support the PICs in an optimal inclusion of this option into their national energy policies.

Coconut oil can be used either as a straight vegetable oil or in a chemically modified form as “biodiesel”. In cooperation with the University of the South Pacific, PIEPSAP is financing a research project to investigate the technical feasibility of producing “biodiesel” from locally available feedstocks. As part of the PIEPSAP project, this thesis aims to contribute to the understanding of the potentials that the use of straight coconut oil as a diesel substitute can offer to the PICs.

The use of straight vegetable oils in internal combustion engines in principle is proven to be technically feasible but is known to cause certain adverse technical effects if no precautionary measures are applied. However, a variety of non scientific reports exist in the PICs that coconut oil does not show any of these adverse effects and can be used as a direct substitute for diesel [ETH05][TOB06]. For the most part, it is understood that replacing diesel by coconut oil incurs extra cost, caused by a need for adapting an engine, increased maintenance etc. [ZIE05]. Practical experiences with using coconut oil in the PICs were made, yet without technical documentation.

Neither a comprehensive analysis of technical effects of using coconut oil, nor estimations on the amount of extra cost incurred were undertaken so far. Therefore, this thesis will offer a comprehensive overview of the state of the technology regarding the use of coconut oil in compression ignition engines and attempt a first quantification of expected financial consequences.

Research Objective While documented experiences with coconut oil are very limited, international academic literature and practical experiences regarding the use of vegetable oils is available. Based on this body of knowledge and state of the technology in the PICs, in coordination with Mr. Gerhard Zieroth (PIEPSAP), Prof. Kurt Kugeler and Dr. Inga Tragsdorf (Institute of reactor safety and reactor technology, RWTH Aachen University), the specific objectives of this thesis have been defined as

1) to conduct an extensive literature survey on the state of the technology of using vegetable oils as fuel and its practical implementation

2) to investigate the technical effects of using coconut oil in theory and practice 1 Introduction 3

3) to identify potential applications for use of coconut oil in the PICs and attempt a first estimation of expected financial consequences of a fuel switch.

In response to a request of the Energy division of the Republic of the Marshall Islands (RMI), this thesis will focus on the representative case of use of coconut oil as fuel in the RMI.

In a first part of the thesis (Chapter 2 – 7), available literature and documented experiences with the use of vegetable oils in compression ignition engines will be analysed and scrutinised for lessons learned. Most important influencing factors on the occurrence of technical effects will be identified.

In a second part of the thesis (Chapter 8 – 11), state of the art of using coconut oil as fuel will be investigated. Fuel qualities of coconut oil produced in the PICs will be analysed and potentials for quality improvements identified. Technical effects and experiences made with using coconut oil, as described by science and in practice, will be documented. Experiences made in the RMI were analysed in detail during a field visit and will be reported.

In a third part of the thesis (Chapter 12 – 19), potential applications of coconut oil as diesel substitute in the RMI are presented and a methodology is developed to quantify extra cost incurred. To prepare for the quantification, a quantitative survey of technical effects during use of coconut oil was conducted during the field visit to the RMI, and information on costs was collected. Additional quantitative data from literature and insights gained in the first two parts of the thesis will be used to estimate technical effects. Financial consequences of use of straight coconut oil will be calculated and discussed.

Finally the results of the analysis will be recapitulated and compiled into conclusions and recommendations for the further endeavours of promoting the use of coconut oil as a diesel substitute.

2 Vegetable Oil as Fuel 5

2 Vegetable Oil as Fuel

2.1 Production of Vegetable Oil

Vegetable oils are produced from a variety of plants. Soybean, rapeseed, sunflower and palm are the major feedstock for vegetable oils produced worldwide [MEI06]. The production of vegetable oils is commonly categorised as follows:

- small-scale production using mechanical extraction

- large-scale production using mechanical and chemical extraction.

In practice both processes are used to produce vegetable oils for use as fuel.

2.1.1 Small-Scale Production

Small-scale production plants, also referred to as “decentralised” plants, are commonly designed to process anywhere from 0.5 to 25 tonnes of feedstock per day. The following scheme depicts the process in a small-scale production plant.

Figure 2.1: Production process in small-scale production of vegetable oils [WID02]

In a first step the seed is cleaned and dried to obtain specific water content, in the case of rapeseed approx. 7 % by weight. In some cases pressing is preceded by crushing by means of a roller mill and dehulling. The extraction of oil is achieved solely by mechanical pressing, for which screw extrusion presses are typically used. Such a press is depicted on the left hand side of Figure 2.2. Unpurified oil contains approx. 0.5 – 0.6 % solid matter that can be removed by means of sedimentation, filtration and centrifuging. If vegetable oil is produced for use as fuel, a safety filtration step has to be applied [REM02a]. On the right hand side of 6 2 Vegetable Oil as Fuel

Figure 2.2 typically used chamber filter press and security filters are shown. Chemical cleaning is commonly not applied in this production process.

Figure 2.2: Equipment used in small-scale production [STO06a]

Such “decentralised” processing isolates only 75 % to 85 % of the oil from the seed [CRO05]; as advantages, low transportation costs and a positive effect on regional value added are emphasised.

2.1.2 Large-Scale Production

Large-scale production plants are usually designed to process 500 to 4,000 tonnes of feedstock per day. The main difference to “small-scale production” is that oil is extracted by a combination of mechanical and chemical means. For chemical extraction, hexane is commonly used as a solvent.

Oil produced in such a process contains considerably larger amounts of unwanted substances, which are removed through refining. Refining steps commonly applied are:

1) degumming for the removal of phospholipids

2) deacidification for the removal of free fatty acids

3) bleaching to minimise colorants and trace metals

4) deodorisation for the removal of aromatic substances and oxidation products.

Such a combination of mechanical and chemical extraction is the standard production technology for manufacturing vegetable oil for the foodstuff industry. Main advantages are extraction efficiencies of up to 99 % and well-defined oil quality. 2 Vegetable Oil as Fuel 7

2.2 Properties of Vegetable oil as Fuel

When compared to fossil fuels, vegetable oils have certain different properties that impact their use as fuel. These derive from differences in chemical composition and production. Before relevant fuel properties that are specified in the German preliminary industrial standard (DIN V 51605) are described, a short introduction to general properties of fossil fuels and vegetable oils shall be given.

2.2.1 General Properties of Fossil Fuels

Diesel is a standardised hydrocarbon mixture, obtained in the fractional distillation of crude oil between 250°C and 350°C at atmospheric pressure. The average chemical formula for common diesel fuel is C12H26 [ATS95]. The quality of diesel fuel has been standardised for many years. Increasing demands for low emissions have led to stringent quality requirements, such as defined in the DIN EN 590.

Heavy Fuel Oil (HFO) represents the final residue of the crude oil after all “light” components (gasoline, diesel etc.) have been extracted in the refinery process. HFO is not a standardised fuel quality with clearly defined properties [BUC04]. Suppliers of engines designed for HFO specify limits for selected quality dimensions.

2.2.2 General Properties of Vegetable Oil

Main components of vegetable oils are triglycerides. The chemical structure of these molecules is shown in Figure 2.3. A triglyceride consists of a glycerine moiety and three fatty acid chains. Fatty acid chains vary in lengths, measured as the number of C-molecules in the chain, and saturation. Saturation hereby means that there are no “missing” H-molecules in the fatty acid chain.

Figure 2.3: Chemical structure of vegetable oil [THU02a]

Vegetable oils of different plants vary in composition of their fatty acid chains. While oils of plants found in warm climates tend to contain mainly “short” (chain length ~8 to 12 C- molecules), highly saturated fatty acid chains, oils of plants in mild to cold climates tend to contain “longer” (chain length ~16 to 20 C-molecules) and unsaturated fatty acid chains. The 8 2 Vegetable Oil as Fuel

first types of oil are characterised by a considerably higher solidification temperature than the latter. An indicator for the temperature at which use as a fuel becomes difficult, the so called “cold-temperature-behaviour”, was included in prior versions of the German standard but is not included in the recent version due to the lack of an appropriate measuring process [DIN05].

As a result of their chemical composition, vegetable oils are susceptible to undergo certain chemical processes that lead to a deterioration of the oil. The most important ones are autooxidation, hydrolysis and polymerisation:

Autooxidation: At the presence of oxygen, supported by light, warmth and heavy metal ions with catalytic effects (e.g. Iron, Copper), vegetable oil are oxidised. The oxidation takes place at the fatty acid chains and yields a variety of low molecular weight compounds. This leads the vegetable oil to turn “rancid” [THU02a].

Hydrolysis: By reaction with water, a hydrolytic cleavage of the fatty acids chains from glycerine can appear, leading to “free fatty acids”. This process takes place during storage of feedstock and of vegetable oil and is favoured by high temperatures, acid catalysts or enzymes [BEL01]. The tendency for hydrolysis is expected to be higher, the shorter the fatty acid chains of the vegetable oil are [THU02a].

Polymerisation: Triglycerides can be linked to each other by forming new intermolecular bonds that lead to high molecular weight compounds (polymers), also referred to as “resins” [THU02a]. Polymerisation occurs especially at high temperatures (thermal polymerisation) or through oxidative processes at contact with oxygen (oxidative polymerisation) [THU02a].

With regard to use as fuel, the latter of these chemical processes is of special relevance: When diesel is heated to high temperatures, it evaporates at an almost constant rate, which reflects its production process. Vegetable oils have not undergone distillation in the production process. Whenever high thermal stress is applied, large polymers can be formed. This effect was found to make an appropriate determination of a boiling point curve for vegetable oils impossible [KLE99].

2.2.3 Properties of Vegetable Oil Limited in the DIN V 51605

In July 2006, a preliminary German industrial standard, the DIN V 51605 “Fuels for vegetable oil compatible combustion engines”, has come into effect. This standard is by far the furthest developed standardisation effort for vegetable oils used as fuel and is based on both 2 Vegetable Oil as Fuel 9

extensive scientific research and practical experiences. While it applies to rapeseed oil only,2 quality criteria specified are relevant for all vegetable oils.

Properties are differentiated into “characteristic” properties, inherent to the specific vegetable oil, and “variable” properties, that are influenced by the production process as well as storage conditions. Correlations between certain characteristic and variable properties exist in some cases [DOB00].

2.2.3.1 Characteristic Properties of Vegetable Oil

A characteristic property of all vegetable oils is viscosity, which is higher than that of diesel fuel. High viscosity can lead to cold starting problems, causes an increased mechanical stress on fuel and injection pumps and impacts the fuel delivery characteristics. During injection, high viscosity can impact the atomisation of the oil (droplet size and injection spray geometry) [REM02b]. Viscosity is highly dependent on the temperature. Figure 2.4 exhibits the viscosity of various vegetable oils at different temperatures. When heated to approximately 90°C, viscosity is similar to that of diesel fuel.

Figure 2.4: Viscosity of vegetable oils [MEI06]

Another characteristic property of vegetable oils is their ignitability, which is commonly lower than that of diesel fuel. Ignitability is assessed by the cetane number, whereby higher values indicate better ignitability. Because testing procedure for the cetane number is highly

2 This restriction is due to the fact that the standard serves as a base for legal contracts, other vegetable oils are excluded because no sufficiently documented long-term experiences are available. 10 2 Vegetable Oil as Fuel

specific to diesel fuel, it is argued not to be an appropriate measurement for vegetable oils [THU02a].

The carbon residue measures the tendency of a fuel to form carbonaceous deposits when evaporated from a hot surface. For vegetable oils, the values tend to be significantly higher than for diesel fuel. Carbon residue is, together with other parameters, considered as a main indicator for the tendency of a fuel to form deposits in the combustion chamber [REM02b].

The iodine value of vegetable oils indicates the degree of unsaturation of the oil. A high degree of unsaturation leads to a higher chemical reactivity and disposition to polymerise. Vegetable oils with a low iodine value were found to feature lower values for carbon residue and higher oxidation stability [DOB00].

The flashpoint is defined as the lowest temperature at which ignitable gases emerge from the liquid. It is used to assess the danger of handling a fuel. Flashpoints of vegetable oils are considerably higher than those of diesel [REM02b].

The density of vegetable oils varies but is generally several percent higher than density of diesel. The net calorific value varies as well and tends to be several percent lower than with diesel. Compared to fossil fuels, sulphur content of vegetable oils is negligible [REM02b].

2.2.3.2 Variable Properties of Vegetable Oil

The total contamination is the amount of suspended particles in the oil. These can cause obstructions in the fuel supply system, lead to abrasions in the injection system and contribute to formation of deposits in the combustion chamber [THU02a]. In order to meet the low level of total contamination required by the standard, an elaborated clarification process is necessary.

The acid value is an indicator of the content of free fatty acids in the oil. High acidity causes corrosion in the injection system. In case of a contamination of the lubricant oil with vegetable oil, acidity is expected to contribute to chemical reactions occurring [THU02a]. Thermal stress (e.g. during drying) and adverse storage conditions of the feedstock or the oil increase acid values [STR92].

The oxidation stability indicates the level of pre-aging of a vegetable oil. It is measured as the number of hours the oil can be exposed to a hot (110°C), oxygen rich environment before a strong oxidative decomposition begins. Aging of vegetable oil can lead to formation of insoluble compounds that cause blockages in the fuel supply system. For the case of rapeseed oil, storage at dark places with temperatures below 12°C and as little contact to air as possible is therefore recommended [REM05].

The phosphorous content measures the amount of phospholipids contained in the oil. Phospholipids are similar to regular triglycerides, only that a phosphoric ester group replaces one of the fatty acid chains. Phospholipids facilitate the chemical degradation of vegetable oil 2 Vegetable Oil as Fuel 11

and lead to formation of viscous precipitates, so called “gums”, which again may lead to blockages in the fuel supply system [REM02b]. High phosphorous contents are considered as a main reason for the formation of deposits and impact the functioning of catalytic converters [REM02b]. For the case of rapeseed oil, it was found that phosphorous content can be reduced by reducing the temperature of the oil press during extraction [ATT05].

The earth alkali content (Ca, Mg) in the oil is known to impact the functioning of the catalyst and is expected to contribute to deposits in the combustion chamber [SCH06a]. It was not included in preceding versions of the standard but is now included in the specifications of the DIN V 51605.

The ash content measures the proportion of inorganic solids in the oil. High ash contents can be caused by contamination of the feedstock or the oil (e.g. with dust) and are expected to contribute to abrasions in the injection system and deposits in the combustion chamber [REM02b].

The water content of vegetable oils is caused by moisture of the raw material and adverse storage conditions. Water encourages growth of micro organisms and thereby accelerates chemical degradation. Excessively high water contents can cause damages in the injection system through corrosion [REM02b] and, in the case of high-pressure injection systems, by cavitations [EMB05].

Table 2.1 illustrates the quality requirements of the DIN V 51605 Standard. To allow for a comparison, quality requirements on diesel fuel of the DIN EN 590 and typical values of HFO are presented. 12 2 Vegetable Oil as Fuel

Table 2.1: Quality requirements for vegetable oils (DIN V 51605)

Parameter Unit DIN V 51605 Diesel DIN EN 590 HFO (typical) characteristic properties [DIN05] [KLE99] [HAG05] Density at 15°C kg/m³ 900 - 930 820 - 860 993 Flashpoint °C min. 220 min. 55 Kinematic viscosity at 40°C mm²/s max. 36 2.00 - 4.50 622* Calorific value, lower kJ/kg min. 36,000 40,100 Cetane number - min. 39 min. 49 Carbon residue mass-% max. 0.40 max. 0.30** 13 Iodine value g/100g 95 - 125 Sulfur content mg/kg max. 10 max. 500 23,000 variable properties Total contamination mg/kg max. 24 max. 24 800 Acid value mg KOH/g max. 2.0 < 3 Oxidation stability at 110°C h min. 6.0 Phosphorous content mg/kg max. 12 Earth alkali content (Ca + Mg) mg/kg max. 20 Ash content mass-% max. 0.01 max. 0.01 0.08 Water content mass-% max. 0.075 max. 0.02 0.6 *Viscosity at 50°C ** Value is determined differently

Several practitioners have emphasised that the DIN V 51605 encompasses the requirements of modern car engines that have been adapted to run on vegetable oils. Fuel quality requirements of such engines tend to be amongst the most restrictive, hence certain values of the standard ought to be judged as overly cautious for cases where engines are used that are more tolerant to fuel quality [VAI06a][KIN06]. 3 Relevant Design Characteristics of Diesel Engines 13

3 Relevant Design Characteristics of Diesel Engines

Since the development of the first diesel engine in 1897, technological progress has brought forth a large number of design variants of various engine constituents. With regard to use of vegetable oils, the most relevant variants of diesel engine design are those of the fuel supply system and the combustion chamber.

3.1 Design Variants of Fuel Supply System

The fuel supply system consists of the low-pressure and the high-pressure system. The low- pressure fuel supply system is made up of a fuel tank, a varying series of filtration units and the fuel pump (Figure 3.1). Its purpose is to supply fuel to the high-pressure fuel supply system. There, fuel is delivered to the combustion chamber and not required portions are delivered back into the fuel tank via a bypass.

Figure 3.1: Low-pressure fuel supply system [BOS02]

Main components of the high-pressure fuel supply system are injection pump and injection nozzles. The injection pump builds up the required high pressure and doses the right amount of fuel to each cylinder. Due to the high pressures, high temperatures prevail in the injection pump during use. The most relevant injection pump designs are:

- plunger type pump

- inline injection pump

- rotary injection pump

- unit injector system

- common rail injection system.

Plunger Type Pump The plunger type pump has a pumping element for each of the engine's cylinders. Each consists of a plunger-and-barrel assembly, from where fuel is led via high pressure conduits to the injection nozzles. The fuel provides lubrication and cooling for the movement of the 14 3 Relevant Design Characteristics of Diesel Engines

plunger in the barrel. Such injection pumps are today only used for large engines above 160 kW [BEI97].

Inline Injection Pump The inline injection pump (Figure 3.2) is similar to the “plunger type pump”, only that all pumping elements are arranged "in-line" with each other. They are today used in mid-size or larger diesel engines [PIS01], such as engines of heavy-duty machinery. They had been used in cars but here mostly replaced by rotary injection pumps.

Figure 3.2: Injection pump design variants [DEL06][BOS06]

Rotary Injection Pump Rotary injection pumps are of smaller weight and size and feature only one plunger that distributes fuel to as many as 6 cylinders. To distribute the fuel, a very high-speed rotational and axial movement of the plunger inside the barrel is necessary. Rotary injection pumps are today predominant in small and mid-size diesel engines [PIS01].

In regard to the use of vegetable oil, the specific make of rotary injection pumps is of great relevance.3 Rotary injection pumps are produced by a large number of different manufacturers, yet most models are licensed copies of either Bosch or Lucas/CAV.4 The picture in the middle of Figure 3.2 shows a conventional rotary injection pump by Bosch, which is also produced by “Denso”, “Zexel” and “Diesel-Kiki” [PRE06]. The second type of rotary injection pump is that of Lucas/CAV, which also appears under the brand names “Stanadyne”, “Roto- Diesel”, “Condiesel” and “Delphi” [PRE06]. Figure 3.2 shows a picture of such a model (produced by “Delphi”) on the right hand side.

3 Diameters of the plunger and further design characteristics differ between manufacturers.

4 The denominations “Bosch” and “CAV/Lucas” will be used in this thesis, because these are the most often used denominations in literature. 3 Relevant Design Characteristics of Diesel Engines 15

Unit Injector System The unit injector system is again similar to the “plunger type pump” only that on each cylinder, the plunger-and-barrel assembly is directly combined with the injection nozzle. Because there is no conduit between the elements, higher injection pressures can be applied. This type of injection system is a modern development that is used only by the Volkswagen company (Germany).

Common Rail Injection System In this injection system, high pressure is produced independent of the injection cycle through a high-pressure pump. The fuel is delivered via high-pressure lines that are connected to a rail common to all cylinders. Because injection timing is controlled via electronically operated valves injection process can be controlled very flexibly. The common rail system is another modern development and is considered as the most promising strategy to reduce emissions and improve efficiency [PIS01].

3.2 Combustion Chamber Design Variants

A general distinction between diesel engines is made between indirect and direct injection engines. This distinction concerns primarily the design of the combustion chamber, but generally goes together with the use of a certain type of injection nozzle.

Indirect Injection Engines In an indirect injection engine (IDI), the combustion chamber consists of two parts. The fuel is injected at a relatively low pressure into a small combustion chamber located inside the cylinder head. The first stage of combustion starts with the self-ignition in this precombustion chamber. In the second stage of combustion, partially burned air fuel mixture flows into the main combustion chamber. There, turbulent flow of air supplies sufficient oxygen for a complete combustion.

All indirect injection engines have in common that the function of air fuel mixture generation is mainly granted by the forced flow of air during compression and combustion. During the use of the engine, high temperatures of the precombustion chamber facilitate self-ignition [PIS01]. The two variants of indirect injection engines are the “prechamber” and the “swirl chamber” design, which are shown in Figure 3.3 on the left. 16 3 Relevant Design Characteristics of Diesel Engines

Figure 3.3: Indirect injection - combustion chamber and injection nozzle [BOS02][FIS03]

In the “prechamber” design, one or more channels of small diameter connect the precombustion chamber with the main combustion chamber. Air fuel mixture generation is often supported by a taper pin inside the precombustion chamber, where the fuel is sprayed upon. In the “swirl chamber” design, a strong swirl is created when the air flows into the precombustion chamber during compression. This swirl improves air fuel mixture generation. Figure 3.3 on the right shows the drawing of a pin type injection nozzle that is used in both types of indirect injection engines. When closed, the top of the pin reaches into the combustion chamber.

Direct Injection Engines The prevailing type of injection in modern diesel engines is the direct injection (DI) system, where fuel is injected directly into the main combustion chamber, Figure 3.4. The most important advantage of direct injection engines is their higher fuel efficiency, caused by a lower loss of heat and a reduced resistance to the flow of air. The air fuel mixture generation is primarily granted by the precise geometry of the injection nozzle and supported by the forced flow of air created during the compression cycle [PIS01].

Figure 3.4: Direct injection - combustion chamber and injection nozzle [BOS93][FIS03]

Figure 3.4 on the right shows the drawing of a multiple-hole type injection nozzle that is used in direct injection engines. Unlike the pin type injection nozzle, there is no needle that “reaches into” the combustion chamber. This facilitates their use in combustion chambers with very high-pressures. 4 Technical Effects of Using Vegetable Oil as Fuel 17

4 Technical Effects of Using Vegetable Oil as Fuel

This Chapter gives an overview of technical effects that the use of vegetable oil as diesel substitute can have. Together with a description of possible effects, relevant influencing factors and coherences are presented. Technical effects can be grouped into

- failures in the fuel supply system

- failures related to the combustion

- deterioration of the lubricant oil

- general effects.

Although characteristics of vegetable oils can vary considerably, similarities regarding the use as fuel by far outweigh the differences. Hence it is justified to analyse experiences with vegetable oils by neglecting different origins.

4.1 Failures in the Fuel Supply System

4.1.1 Deposits and Sediments in the Fuel Supply System

Prominent causes of failures in the fuel supply system are deposits or sediments that occur when vegetable oils are used. These will be summarised as “deposits”.5 Such deposits can be made up by any solid matter, by “gums” or by any products resulting from chemical degradation. Besides conditions of storage before its use, chemical degradation can be facilitated by several factors related to the fuel supply system:

- thermally pre-stressed portions of vegetable oil that are returned into the fuel tank via the bypass and initiate chemical reactions [BIR94]

- thermal stress by constant heating of the fuel tank [THU02b]

- catalytic materials used in the fuel tank or fuel pipes (e.g. copper) [REM02b]

- enzymatic activities encouraged by blending of vegetable oil with diesel [REM02b].

Consequences of such deposits can vary depending on their location in the fuel supply system and important additional factors influence their occurrence.

5 The term “deposits” will be used below as well for deposits formed during combustion. This bears a certain risk for confusions, yet no other term seems appropriate. 18 4 Technical Effects of Using Vegetable Oil as Fuel

Fuel Filter Clogging The probably most well-known problem occurring when vegetable oils are used is clogging of fuel filters. This hinders the flow of fuel to the engine, reduces power output and eventually causes the engine to stop. If a fuel filter is not exchanged as soon as it starts to clog up, it can lead to a loss of lubrication in the injection pump [ELS06a].

Obviously, any deposits or sediments contribute to fuel filter clogging. Furthermore, high viscosity of vegetable oil hinders the flow of fuel through the filter and increases the need for exchange [THU02a]. The type of fuel filter used was found to be a very important factor. [THU02b] describes a decrease in the necessary exchange interval by a factor of three when the same model of filter was used, but only from a different make.

Deposits in the Low-Pressure Fuel Supply System Deposits can also occur in any other part of the low-pressure fuel supply system, predominantly on security filters. Such obstructions have similar effects as a clogged fuel filter, only that they are more difficult to identify and remove. They can furthermore cause failures of the fuel pump [KEM05].

Deposits in the High-Pressure Fuel Supply System Similar to the case of the low-pressure fuel supply system, deposits were found to occur in both the injection pump and the injectors [BAT80]. In general, reasons for such deposits are the same as described above. An important additional effect is mentioned by several authors, including [BIR94][HOE94][BRA04]: When an engine is stopped on vegetable oil, oil left inside the injection system is highly thermally pre-stressed and especially prone to polymerise and form “resins". In the injection nozzles, such “sticky deposits” can prevent a complete closure and lead to an injection of fuel after the intended point of time [THU02b]. This bears the risk of fatal engine failures as described in [KEM05].

4.1.2 Increased Wear of the Injection System

An increased wear of moving parts of the injection pump and injection nozzle is often observed when vegetable oils are used. In both assemblies, a plunger is moving at a high speed in a high precision barrel; the fuel supplies lubrication for this movement. Appearance of wear caused by use of vegetable oil is described either as a “brownish” change in colour of the metal [KNU06] or as a localised dark discolouring. The latter is shown in Figure 4.1, on a plunger of an inline injection pump. No detailed analysis into the precise mechanisms of increased wear (such as microscopic analysis of the surface) is reported. As reasons for increased wear, abrasion, corrosion and disruption of lubrication are expected. 4 Technical Effects of Using Vegetable Oil as Fuel 19

Figure 4.1: Increased wear of an injection pump plunger [FRI06]

Abrasion in the Injection System Any minor particles carried along with the vegetable oil can cause abrasion. Total contamination is considered as the main cause for this phenomenon [THU02a]. Furthermore, the ash content [REM02b], and the phosphorous content [JUR94] have been mentioned to contribute.

Corrosion in the Injection System Higher acid values of vegetable oils as compared to diesel can cause corrosions in the injection system [REM02b]. Occurrence of corrosion depends on type of acid components inside the vegetable oil and specific material used in the injection system. Different materials have different resistances against acidity. The value of 2 mg KOH/kg that is required by the DIN V 51605 has been agreed upon as a pragmatic compromise, representing a value that can be achieved if rapeseed oil of high quality feedstock is produced in a small-scale oil mill [REM02b]. Engines designed for HFO allow considerable higher acid values than those designed for diesel [HAG05].

Excessively high water content is suspected as a further possible reason for corrosions [REM02b].

Disruption of Lubrication in the Injection Pump Disruptions in the lubricating film between the plunger and barrel of the injection pump can contribute to an increased wear or even cause sudden total failures. Several possible reasons for such disruptions are mentioned, including constrictions in the low-pressure fuel supply system [ELS06a][SCH06a], polymerised residues of vegetable oil left in the injection pump, and high viscosity of vegetable oil [VAI92]. The latter especially applies to incidents of cold starting, where viscosity depends only on ambient temperatures.

4.1.3 Failures of the Injection Pump

Besides reduction in lifetime due to increased wear, sudden failures of injection pumps are reported in many cases, especially by practitioners that use vegetable oil in cars [FMS06]. Lack of lubrication and increased mechanical stress caused by higher viscosity are expected reasons for failures [ELS06a][BIR94], yet precise failure mechanisms remain unclear. 20 4 Technical Effects of Using Vegetable Oil as Fuel

The type of injection pump used is the single most important factor on the occurrence of such failures. Inline injection pumps with their robust design, and even more so plunger type pumps, tend to work well on vegetable oils [WIC05]. Rotary injection pumps are known to incur a considerably higher risk of failures, especially in incidents of cold starting. Rotary injection pumps of “Lucas/CAV” are considered entirely unsuitable for the use with vegetable oils. Most suppliers of adaptation technology do not recommend adapting cars that use such pumps [PRE06][ELS06b][NEO06]. Risks of sudden failures with other types of rotary injection pumps, such as the common mechanical distributor pump of Bosch and its license models, are considerably lower. With modern injection systems (“common rail injection system”, “unit injector system”) no experiences of the use of vegetable oils are documented.

While failures of injection pumps mostly “only” require a replacement, [KOR91] reports of an incident where high viscosity caused the reverse flow throttle to break, which subsequently led to small metal parts entering the combustion chamber and caused a fatal engine failure.

4.1.4 Leakages in the Fuel Supply System

Although related primarily to the use of vegetable oil methyl esters (“Biodiesel”), leakages in various parts of the fuel system occur as well when straight vegetable oils are used. Untight seals can merely lead to a loss of fuel or to small amounts of air entering the injection system, but can also cause more severe effects. [ELS06a] describes that leaking vegetable oil can agglomerate inside the injection pump and impact the function of the regulatory mechanism, which can lead to uncontrolled injection of fuel. Even more detrimental effects can be caused if vegetable oil directly leaks into the lubricating oil [HAS06b].

Figure 4.2: Leakages in the injection system [THU02b]

4.2 Failures Related to the Combustion

Excessive formation of carbonaceous deposits inside the combustion chamber and on parts that have contact to exhaust gases is a widely known and controversially discussed phenomenon. It needs to be emphasised, that “deposits” considered here are formed during or after combustion and are of a very different type than the “deposits” that appear in the fuel supply system. 4 Technical Effects of Using Vegetable Oil as Fuel 21

4.2.1 Reasons for Deposits Formation

More than twenty years of research have brought forth a large variety of theories on which factor(s) is (are) the most important reason(s) for the formation of deposits. The main reasons that have been identified can be summarised into three categories:

1) atomisation and evaporation of vegetable oil

2) chemical reactions of vegetable oil

3) contaminants in vegetable oil.

1) When injected into the combustion chamber, atomisation of vegetable oil is considerably worse than that of diesel. This has been shown by analysis of the spray pattern [BIR94] and measurement of the ignition delay [VAI92]. Impacted atomisation constraints the air fuel mixture generation and can lead to incomplete combustion. Unburned fractions of vegetable oil are attached to surfaces inside the combustion chamber or carried along with the exhaust gas as an aerosol. Unlike diesel, vegetable oil attached to surfaces does not simply “evaporate”. The sheer size of vegetable oil molecules is considered as a fundamental reason [REI97][KNU00]. As indicators of the worse atomisation behaviour, cetane number and viscosity (in the moment of injection) are often mentioned [VAI92].6

2) Chemical reactions of vegetable oil, especially thermal polymerisation, lead to the formation of incombustible, high molecular weight compounds. This process is primarily known to occur when vegetable oil reaches a hot surface. It is also expected to occur before or during the atomisation process [REI97]. Many authors propose that the tendency to form such high molecular weight compounds is closely related to the degree of unsaturation, measured as the iodine value [SCH06a][THU02a][VAI92]. Because measurement procedure of the carbon residue imitates the behaviour of oil on a hot surface under lack of oxygen, this value is considered as an important indicator [REM02b][TOG98].

3) Any impurities in the oil, such as measured by total contamination or ash content, are expected to cause incombustible deposits in the combustion chamber [REM02b]. Phosphorous content is another often-cited origin. Chemical analysis of deposits found revealed that the element phosphor makes up large parts of the deposits [KOL99][PUD94]. Earth alkali metals (Calcium and Magnesium) are expected to contribute as well and were found as smaller constituents of the deposits [KOL99]. It is described that any impurities, as well as soot formed during combustion, agglomerates on to “sticky” residues of vegetable oil if these occur [BRE94].

6 Surface tension has an equally important influence on atomisation behaviour but has not been a focus of research yet. 22 4 Technical Effects of Using Vegetable Oil as Fuel

Obviously, interrelations exist between the three categories. A common denominator is that precipitation of vegetable oil on surfaces, as a droplet or as part of an aerosol, encourages the formation of deposits.

4.2.2 Influencing Factors on Formation of Deposits

Different hypotheses on the most important reasons for formation of deposits lead to different suggestions on the main influencing factors. Factors related to characteristics of the vegetable oil have been outlined above. If, and how much of vegetable oil precipitates on surfaces is largely influenced by the load on the engine and the type of engine used.

The load on the engine has a great influence on the combustion temperature (and pressure) and consequently on the quality of atomisation of the fuel. It was found that if an engine is used on very high loads only, tendency to the formation of deposits remains low [BRE94][REI97][HAE94][ELS03]. This has led several authors to recommend the use of vegetable oils, irrespectively of the type of engine used, only where constant high loads are guaranteed [REI97][HAE94][MAU95].

With regard to the engine used, combustion chamber design makes a large difference. Indirect injection engines show a considerably lower tendency to the formation of deposits than direct injection engines [VEL82][KOR91][BIR94]. Main reason is the different mechanism of air fuel mixture generation. In indirect injection engines, this is mainly granted by a turbulent flow of partially burned air fuel mixture from the precombustion chamber to the main combustion chamber. Oppositely, air fuel mixture generation in direct injection engines depends considerably more on the precise injection spray pattern at injection, which is highly dependent on physical properties of the fuel used. This difference is strengthened by the influence that deposits on injection nozzles have in both cases, which will be discussed below.

Large cylinder volume and low rated speed improve the air fuel mixture generation in an engine [PIS01]. The positive effect of large cylinder volumes on the formation of deposits was shown in an experiment of [KOR91]. With increasing cylinder volume, use of direct injection engines becomes less critical. Large bore, slow moving HFO engines are optimal in this regard [HAG04].

It was found by [BRE94] that a reduction in compression impacts the quality of air fuel mixture generation and increases the tendency to the formation of deposits. 4 Technical Effects of Using Vegetable Oil as Fuel 23

4.2.3 Occurrence of Deposits

Deposits can occur inside the combustion chamber and any part of the engine that has contact with exhaust gases or partially unburned vegetable oil.

Deposits on the Outside of the Injection Nozzle The formation of deposits on the injection nozzle is often referred to as injector “coking”. Figure 4.3 shows the typical, trumpet like appearance of such deposits found on a multiple- hole injection nozzle that has been used for 300 hours on a blend of 50 % rapeseed oil and 50 % diesel.

Figure 4.3: Deposits on injection nozzle [MAU03]

Deposits on the injection nozzle impact the injection spray pattern and thereby worsen the atomisation of vegetable oil [MAU03]. Such deposits have a strong, self-enforcing effect in the case of multiple-hole injection nozzles used in direct injection engines. The same applies in a lower extend to pin-type injection nozzles used in indirect injection engines, yet these show a “self cleaning” effect by the pin reaching into the combustion chamber [MAY96]. Figure 4.4 shows that injection spray pattern of a pin type injection nozzle can still be considerably impacted.

Figure 4.4: Normal (left) and impacted (right) spray pattern [SEN97]

Impacted spray pattern leads to a worse combustion and thereby encourages further formation of deposits (in any location). Geometrically uneven deposits on the injection nozzle can lead to inhomogeneous combustion and locally extreme temperatures, which have been mentioned to even cause local melting of the piston [LUD06]. In the case of direct injection engines, deposits on the injection nozzle can lead to fuel being directly sprayed on the cylinder walls, causing a strong contamination of the lubricant oil with vegetable oil [MAY96]. 24 4 Technical Effects of Using Vegetable Oil as Fuel

Deposits on Piston and Piston Rings Agglomeration of deposits on the piston rings and inside the piston ring grooves, often including a “sticking” of the piston rings, is a prominently reported cause of failures. Figure 4.5 shows the appearance of such deposits. Direct consequences are increased wear of the cylinders and the piston rings that can lead to extensive scoring [MCD99][SCH06a] and piston seizures [ELS06a][LUD06][KNU00]. The consequence of “sticking” piston rings is reduction of compression. This leads to a loss of power, encourages further deposit formation and increases contamination of the lubricant oil [KOR91][ELS06a].

Figure 4.5: Deposits on piston and piston rings [MAU03]

Deposits on the Valve Stems The occurrence of deposits on the exhaust valve stems is referred to as “valve sticking” [BAR02]. Figure 4.6 depicts the appearance of such deposits, which tend to show a slightly different appearance (“ductile matter”) than deposits found inside the combustion chamber [MAU03]. The picture was taken after a 300 h test with 50 % rapeseed oil and 50 % diesel.

Figure 4.6: Deposits on valves [MAU03]

Possible consequences differ considerably, depending if the problem is recognised early enough or not. At an early stage, movability of the valve stem in the guide is impacted, 4 Technical Effects of Using Vegetable Oil as Fuel 25

resulting in a loss of power7 [BAR02] and increasing wear of the valve control system [MAU03]. In a progressed state, closure of the cylinder chamber can remain incomplete, leading to a loss of compression that can even prevent self ignition. In the latter case, very large amounts of unburnt vegetable oil can enter the lubricant oil [KOR91][ELS06a]. It is reported that deposits in this location can even cause a jamming of the valve in its guidance, resulting in the valve being hit by the upward moving piston and breaking off inside the combustion chamber [LUD06][PRE06].

Deposits in the Exhaust System Solid deposits in the exhaust system can be caused by deposits carried along from the combustion chamber or by unburnt parts of vegetable oil that precipitate in exhaust system. If combustion remains highly incomplete, large parts of vegetable oils can be precipitated. [BRE94] reports of an incident where unburned vegetable oil leaked out of a turbocharger.

Direct effect of any deposits in the exhaust system is an increased counter pressure that reduces power output and increases engine temperature. This incurs the risk of overheating, especially where exhaust treatment devices, such as catalysts or particulate filters, are used [THU02b]. Various indirect effects of drying residues of vegetable oil, such as in a turbocharger, are possible [BRE94].

Deposits in other Locations Deposits on the valve heads are found in most cases where use of vegetable oils is experimented with. Some authors find these primarily on the intake valve heads (Figure 4.6) [MAU03], while others find them mainly on the exhaust valve head [KOR91][BRE94]. Such deposits impact the flow of air, thereby decreasing power output and possibly increasing temperatures in the combustion chamber [MAU03][ELS06a]. Deposits on the cylinder head and top of the liners can impact the heat transfer, which is expected to contribute to problems with overheating [EMB05]. Deposits on the piston land were realised but not found to have direct adverse effects [BRE94].

In all cases, deposits can be transferred to locations where adverse effects appear, such as the piston rings or the exhaust system [MAU03].

4.3 Failures Related to the Lubrication System

Contamination of the lubricant oil with vegetable oil is commonly caused by unburnt portions of vegetable oil wiped of the cylinder walls (by the piston rings) or transferred in the crankcase in the so called “blow by” gases.8 Larger amounts of vegetable oil enter the

7 [BAR02] has analysed this effect occurring in one experiment in detail and finds that these deposits alone reduced engine power output by 18 %.

8 Small amounts of fuel always enter into the lubricant oil. 26 4 Technical Effects of Using Vegetable Oil as Fuel

lubricant oil primarily if the engine is used on low loads and at incidents of cold starting [REI97][BRE94][MAU03][HAS06b]. In case of irregularities with the combustion caused by deposits on the injection nozzles, “sticking” of piston rings or “valve sticking”, very large amounts of vegetable oil can enter the lubricant oil. Another origin of such contamination can be leakages in the fuel supply system [HAS06a].

Whereas diesel in the lubricant oil evaporates at the very high temperatures prevailing in the lubricant oil sump, vegetable oil will not do so [THU05]. Vegetable oil contents in the lubricant oil of above 10 % (within the regular oil exchange interval) have been found in many cases [MAU03][EMB05]. [KNU05] even mentions an incident where 30 % occurred. Such a dilution can merely lead to increased wear but can as well cause fatal engine failures.

4.3.1 Deterioration of Lubricant Oil Quality

Contamination of the lubricant oil with vegetable oil impacts the intended function of the lubricant oil. Vegetable oil content reduces viscosity of lubricant oil9 and hence impacts quality of lubrication [BRE94]. Increased particulate contamination, caused by impurities in vegetable oil or by parts of solid deposits, reduces the capacity of the lubricant oil to suspense solid contaminants [MAU03] and increases wear of bearings [PRA03][MAU03]. Furthermore, corrosive effects of vegetable oil constituents on metal parts are expected [BRE94].

4.3.2 Polymerisation of Lubricant Oil

The probably most dangerous effect of using vegetable oils is a polymerisation occurring in the lubricant oil that leads to a phase separation. The appearance of this polymerised phase is described as a highly viscous, “gummy” matter, which settles on the bottom of the oil sump and on any part the lubricant oil circulates around [KOR91][VEL82][SCH06a]. Figure 4.7 shows a picture of such a “gummy” matter. It impacts the entire function of the lubrication system and mostly leads to fatal engine failures.

Figure 4.7: Phase separation of lubricant oil [SCH06a]

9 At high temperatures viscosity of vegetable oils is considerably lower than that of lubricant oil 4 Technical Effects of Using Vegetable Oil as Fuel 27

Despite of intensive research efforts, especially done by [THU05], the underlying mechanisms are not known yet. Suggestions on important influencing parameters are [THU05]:

- high temperatures and pressures prevailing in the crankcase

- double bonds in the vegetable oil (measured in the iodine value)

- free fatty acids (measured as the acid value)

- prior degradation of vegetable oil (measured as the oxidation stability)

- catalytic materials used in bearings in the crankcase.

Type of lubricant oil is expected to play a role as well, yet it is not known what type of lubricant oil can be recommended.

4.4 Other Effects

Cold starting problems A common phenomenon when using vegetable oils is an inferior cold starting behaviour. This is caused by lower ignitability of vegetable oil that inhibits self-ignition in a cold engine [BIR94][KOL99]. High viscosity, with the extreme of solidification of the oil, increases resistance in the fuel supply system, especially when all parts (including injection pump) are cold, and severely impacts initial spray pattern. Besides being inconvenient for the user, difficulties with cold starting lead to contamination of the lubricant oil with vegetable oil.

Fuel Consumption Volumetric fuel consumption is generally found to be higher than in the case of diesel. An obvious reason is lower volumetric energy content of vegetable oils. While (gravimetric) net calorific value is considerably lower than that of diesel fuel, higher density reduces the difference. Table 4.1 lists the volumetric heating values of various vegetable oils compared to diesel fuel, as calculated from [LUC00][KLE99][HAG05].

Table 4.1: Volumetric heating values of vegetable oils

Unit Diesel Rapeseed oil Sunflower oil Palm oil Olive oil [LUC00] [KLE99] [KLE99] [HAG05] [HAG05]

Volumetric heating value (15°C) MJ/dm³ 36.12 34.8 33.8 34.1 32.94

% of Diesel % 100 96 94 94 91

Besides, other factors have an effect on fuel consumption. In several cases it was found that thermal efficiency of engines is improved when vegetable oils are used. This might be caused by an improved combustion due to a higher oxygen content of vegetable oils [BIR94]. This hypothesis is disputed by [KOL99]. 28 4 Technical Effects of Using Vegetable Oil as Fuel

However, high viscosity of vegetable oils requires more power of the injection pump and thereby reduces engine efficiency, an effect that is especially pronounced at high loads on the engine [BIR94]. Obviously, the amount of energy converted is reduced when combustion remains incomplete [REI97][PRA01].

Changes in Power Output In many cases a reduction in power output has been observed when vegetable oils were used. As possible reasons, those that cause an increase in fuel consumption apply as well. Furthermore, distorted fuel delivery characteristics of the injection pump can have a major influence. When analysing the effects of high viscosity of vegetable oil on the injection characteristic of a rotary injection pump of Bosch, [BAN06] finds that in the lower speed range, more fuel than normal is injected, while at higher speeds, amount of fuel injected is considerably less than normal. In an experiment conducted by [KAR00], power output was reduced by as little as 3 % at low speed and as much as 42 % at maximum engine speed.

Loss of power that occurs after long-term operation of an engine can have a wide variety of reasons, ranging from a blocked fuel filter to a severe engine failure.

Overheating In several instances, a higher temperature of the engine has been reported when vegetable oils are used. Higher oxygen content of vegetable oil is expected to lead to higher combustion temperatures [MAU95]. Importance of a properly sized and well functioning cooling system has therefore been stressed [BIR94]. Major engine failures due to overheating are yet mostly caused either by formation of deposits or polymerisation in the lubricant oil.

Increased Wear of the Engine Increased wear of engine parts can be caused by adverse effects described above, such as deterioration of the lubricant oil, formation of deposits on moving parts or increased mechanical stress of the injection system.

Emission of Engines using Vegetable Oil Emissions of various substances considered as harmful to humans or the environment have been a focal point of research on the use of vegetable oil in industrialised countries. Amongst others, [BRE94][REI97][KOL99][KLE99][MEY02] have extensively analysed effects of numerous parameters (related to the vegetable oil and the engine used) on numerous types of emissions. The results vary considerably. A general finding is that emissions worsen if vegetable oil is used in not adapted engines, but that appropriate adjustments to the engine reduce emissions considerably. A detailed analysis of the results achieved shall not be provided here, as emissions are not a focal point of this thesis. 5 Strategies Used and Experiences Made with Using Vegetable Oil 29

5 Strategies Used and Experiences Made with Using Vegetable Oil

During the “early days” of the technology, a large number of experiments were conducted using a “plug and play” approach; instead of diesel, vegetable oil was simply used as a fuel in not adapted diesel engines. An overview of such works is included in [PET02]. The results clearly indicate that most engines work fine in the short term, but technical difficulties, such as described above, occur in the long term. Due to continued interest in using vegetable oil as fuel, various strategies have been applied to reduce negative technical effects. The strategies applied, which are not mutually exclusive, can be summarised as follows:

- strategies focusing on the fuel

- blending with fossil fuels

- using additives

- improving vegetable oil quality

- chemical adaptation of the fuel (not discussed in detail)

- strategies focusing on the engine

- using vegetable oil engines

- adapting engines to the use of vegetable oil.

The experiences made and lessons learned with applying these strategies will be outlined in the following; where applicable an overview over technology available is given.

5.1 Strategies Focusing on the Fuel

All adverse technical effects described above are originally caused by different properties of the fuel used. An obvious measure is therefore to change the properties of the fuel.

5.1.1 Blending with Fossil Fuel

Experiments conducted with blends of vegetable oils and diesel have been documented as early as 1978. Viscosity of the fuel mixture is, compared to pure vegetable oils, considerably lower. However, results from a large number of experiments indicate that both problems related to the fuel supply as well as those related to the combustion process still appear. [PET02] gives an extensive overview of experiences made with using vegetable oil fuel blends and concludes: “Long-term engine research shows that engine durability is questionable when fuel blends contain more than 20 % vegetable oil by volume. More work 30 5 Strategies Used and Experiences Made with Using Vegetable Oil

is needed to determine if fuel blends containing less than 20 % vegetable oil can be used successfully as diesel fuel extenders.”10

Experimental research done by [MAU03] emphasises the problems that result even with a blend of only 25 % of rapeseed oil. After a 300 hour test on a direct injection engine, considerable deposits were found on the injection nozzle and the exhaust valve. Irrespective of the low blend, vegetable oil content in the lubricant oil increased up to 10 % within the test run. Based on extensive expert interviews, [GOE98a] concludes that even a mixture of only 10 % of vegetable oil can lead to dangerous formation of deposit on the injection nozzles.

A common understanding in international literature is summarised by [AMM04]: “A rough prognosis shows … that a 20 % blending of rapeseed oil would decrease the useful life of an engine by approx. 20 % of the usual period of use if operated with diesel fuel”.

5.1.2 Using Additives

The use of additives in order to prevent problems, primarily those caused by an incomplete combustion, has been experimented with in many instances. Early experiments in 1982 showed that vegetable oil with additives have a similar tendency to the formation of deposits as vegetable oil without additives [VEL82]. In the 1990’s, a vegetable oil fuel, “Tessol-Nadi” consisting of 80 % rapeseed oil, 14 % gasoline, 6 % iso-propyl-alcohol and minor portions of an additive has been developed and sold in Germany. Intended purpose of the additive was to improve atomisation and combustion. Experiments conducted by [REI97] and [KLE99] have compared this fuel with other fuels of vegetable oil origin. While the additive was found to improve combustion behaviour, combustion at part loads remained incomplete. It was concluded that risk of problems occurring due to deposits remained equal. A field test with 7 agricultural tractors was conducted by [MAU95] and led to a fatal engine failure in each of the engines that were used. The company producing and selling the fuel additive had stopped sales of the fuel, yet plans to open up new markets outside of Germany are currently under way [DOE06].

A review of internet platforms reveals that various types of vegetable oil additives are still used today, mainly in adapted cars and to prevent chemical deterioration of the oil [FMS06].

5.1.3 Improving Vegetable Oil Quality

Extensive experiences with the use of vegetable oils (in especially designed or adapted engines) have shown that quality of the oil is an important precondition for a long-term, trouble free operation. Those insights have triggered a comprehensive research effort to analyse relevant fuel properties of vegetable oil and to define appropriate testing procedures,

10 Unfortunately, the review does not differentiate the analysis in respect of the engines used or other influential parameters. 5 Strategies Used and Experiences Made with Using Vegetable Oil 31

carried out amongst others in the work of [REM02b]. The outcome was a voluntary trading standard for fuel grade rapeseed oil, the “Weihenstephan” standard. This work has eventually led to the preliminary German industrial standard DIN V 51605.

A repeated test conducted at 30 small-scale oil mills in Germany in 2003 has shown that quality control in vegetable oil production remains a major concern. Figure 5.1 shows the results of a series of three tests of oil produced in 30 different oil mills. Only 4 oil mills have achieved to supply a reliable quality of oil. Improvements in the quality control are considered as main priority for the further success of this technology [REM03]. The focus thereby lies clearly on the variable properties, that can be influenced by the production and handling.

Figure 5.1: Quality control of small-scale oil production in Germany [REM03]

5.1.4 Chemical Adaptation of the Fuel

By chemical adaptation, vegetable oil can be modified into “biodiesel”, a fuel that has similar physical properties as diesel. The chemical process applied is transesterification of vegetable oil with methanol into fatty acid methyl esters. In this process, the glycerine moiety of the vegetable oil triglyceride is replaced with three methanol moieties.

This approach is the prevailing solution followed in Europe, as well as in various further industrialised and developing countries [ARN05].

Since this thesis focuses on use of straight vegetable oil, this approach will not be dealt with in detail.

32 5 Strategies Used and Experiences Made with Using Vegetable Oil

5.2 Strategies Focusing on the Engine

The second type of approach that has been applied to reduce adverse technical effects focuses on the engine used. Vegetable oil is either used in engines that are appropriate for the use of such fuel, or engines originally designed for diesel are modified for the use of vegetable oils.

5.2.1 Vegetable Oil Engines

The term “vegetable oil engine” used here refers to those engines where the warranty of the manufacturer covers the use of vegetable oil.

5.2.1.1 Small and Mid-Size Vegetable Oil Engines

Diesel Engines Designed for the Use of Vegetable Oil Several engines have been designed especially for the use of vegetable oils. The most well known is the “Elsbett” engine. Its most prominent feature is a thermally well-insulated upper part of the piston with a semi-spherical combustion chamber. Although being a direct injection engine, a single-hole pin-type injector (with a “self cleaning” needle) is used. Fuel is injected into a strong swirl of air inside the combustion chamber, as depicted in Figure 5.2 [ELS03]. The “Elsbett” engine was the only vegetable oil engine small enough to be used in a car. Due to limited demand, it has never become a serial product and is not available any more.

Figure 5.2: Piston design of the Elsbett Engine [ELS03]

A number of further engines were designed for the use of vegetable oils in Germany. All had in common that combustion takes place in a cylinder of larger volume, with stronger turbulences of the air and higher combustion temperatures than regular diesel engines [THU02a]. Such engines were supplied by

- AMS “Antriebs- und Maschinentechnik, Schönebeck” (formerly: DMS “Dieselmotoren- und Gerätebau GmbH, Schönebeck”) 5 Strategies Used and Experiences Made with Using Vegetable Oil 33

- AAN “Anlagen- und Antriebstechnik Nordhausen” (formerly: Thüringer Motorenwerke GmbH, Nordhausen)

- MWS Löschenkohl & Mitter Motorenwerke Schönebeck GmbH.

All engines were produced in very low numbers and primarily for the use in stationary applications, such as cogeneration units. There are no experiences documented on the success of the use of those engines on vegetable oils. Today, only the MWS engine in a size of 125 kW, which is produced in very small quantities, is still available [TAB06].

Diesel Engines Approved for the Use of Vegetable Oil The only diesel engine model that had its warranty officially extended to the use of vegetable oil is the Deutz 912W series [REM02b]. These engines were featured a swirl chamber type indirect injection and a relatively large cylinder volume [DEU06]. If sold for the use of vegetable oils, they were modified with a second fuel tank and an additional fuel pump to start and stop on diesel. The only published long term test run with this engine was a 600 hour test run by [KOR91], where no problems have occurred. In practical use on vegetable oils, importance of load management and maintenance is considerably higher than if diesel is used [KNU06].

Main supplier of the engine was the “Henkelhausen GmbH & Co. KG, Krefeld”, which does not offer the vegetable oil version any more [QUI06]. Several other suppliers, such as “Energy Relais” in France still offer this engine today.

5.2.1.2 Large-Size Vegetable Oil Engines

Various manufacturers of large heavy fuel oil (HFO) engines11 extend their warranty to the use of vegetable oils. Such engines are available in sizes above 500 kW, demands on fuel quality are considerable less stringent than for other diesel engines. Data available on the use of such engines is restricted to that supplied by engine manufacturers.

The manufacturer MAN B&W has tested the use of vegetable oils since the mid 1990’s and concludes [CAR05]: “Due to its design and construction characteristics, larger bore medium- speed diesel engines are best suited to burn low quality liquid fuels such as crude vegetable oils”. While deposits in the combustion chamber where found to be less than when using HFO [HAG06], the lifetime of the injection equipment is reduced considerably if vegetable oils of a high acid value or with a high total contamination is used [GEH06][NEU06].

11 The term “heavy fuel oil engines” refers to all engines that can be used on HFO. In fact, such engines are often used on Diesel, with only certain parts of the fuel and injection system exchanged [NEU06]. 34 5 Strategies Used and Experiences Made with Using Vegetable Oil

Figure 5.3 shows a reference list of ongoing projects with engines of MAN B&W. Wartsila reports on three power plants that are running on vegetable oils for over 10,000 hours [HAG05]. Other engine manufacturers have ongoing projects as well. So far, use of vegetable oil remains mostly limited to cases where government subsidies make up for the higher price compared to the alternatively used HFO. Because of its cheaper price, use of recycled waste vegetable oils, which have considerably worse fuel properties, is often the preferred solution [GEH06].

Figure 5.3: Reference list of biofuel projects of MAN B&W [CAR05]; picture left [WAR06]

5.2.2 Vegetable Oil Compatible Engines

Numerous reports exist which mention certain engines to function well on straight vegetable oils. Most often cited engines are “historical” engines and the engine “Hatz E89”.

“Historical” Engines The term “historical” engine will be used in this thesis to categorise these engines that have been designed several decades ago (in many cases as early as the 1930’s) but are still in use, or even in production, today. Use in “historical” engines had been the first application of vegetable oils in diesel engines, carried out in 1912 by Rudolf Diesel himself [REI97].

“Historical” engines are generally characterised by an extremely robust design and are very tolerant to fuel quality. This is because at the time of design, capacities for precision in production were far less developed and quality standards for diesel fuel were far less restrictive. A famous representative of such an engine is the Lister CS series, also known as “Listeroids”. Figure 5.4 on the left shows a picture of such an engine. A typical cylinder head, which features a simple one-hole injection nozzle and a swirl type precombustion chamber, is depicted on the right hand side. 5 Strategies Used and Experiences Made with Using Vegetable Oil 35

Figure 5.4: "Historical" engine design - Listeroid; picture left [LOV06], picture right [LIS52]

Such engines have been successfully tested with vegetable oils in various instances [MIT95] [BEC06][SHA06]. In a long-term test (>1000 hours) at the University of Kassel, Germany, the engine has shown to work similarly well as with diesel fuel [KIN06]. Nevertheless, efforts incurred in maintenance and repair were found to be considerably higher than for modern diesel engines. While the extremely “easy” design of all parts – as compared to modern diesel engines – facilitates the repair by technically unskilled persons, availability of sufficient spare parts is a precondition for a successful use [KIN06]. Fuel efficiency, noise and exhaust emissions do not meet the standards of modern diesel engines.

The original engine series had been produced in England from 1930 to 1952, but is still produced in large numbers in India today. 12 Some suppliers offer basic adaptation technologies for the use of vegetable oils [SHA06].

Hatz E89 Another engine that has been recommended in several instances for the use of vegetable oil is the HATZ E89 [MIT95][HEN94]. It is reported that large numbers of this engine have been successfully used on sunflower oil in South Africa in the 1980’s and 1990’s [GOE06]. Although being considerably more fuel-efficient than the above-mentioned engine, it cannot be considered state of the art any more. The original manufacturer “Hatz” has discontinued the production. The engine is still produced under a licensing agreement by the company “Pancar” in Turkey, the distribution of this engine is so far restricted to Turkey only [ERO06].

12 In Gujarat, India, an estimated 300,000 pieces are produced per year [GIL03]. A list of suppliers is available at http://dir.indiamart.com/impcat/lister-engines.html 36 5 Strategies Used and Experiences Made with Using Vegetable Oil

5.2.3 Adapting Diesel Engines

Modern diesel engines in small and medium sizes are produced in a very large-volume, serial production. Small market demand for vegetable oil engines and fear of bad publicity in case of failures has so far prevented any activities of engine manufacturers [KOS97]. The common strategy followed to use vegetable oil in such engines is to adapt the engine.

A large number of adaptation technologies are available. These vary strongly in their stage of development, on how the adaptation is implemented (e.g. in a professional workshop or “at home”), on the engine it is applied upon, and other factors. Adaptation technology is commonly differentiated into “two-tank” or “one-tank” systems. In a “two-tank” system, an additional fuel tank is installed and the engine is started and stopped on diesel. In a “one- tank” system, the engine is started and stopped on vegetable oil.

A description of the most important measures that are applied in “two-tank” and “one-tank” systems will follow the differentiation of technical impacts applied above:

1) adaptations to prevent problems in the fuel supply system

2) adaptations to prevent problems related to the combustion

3) adaptations to prevent problems related to lubricant oil contamination.

Adaptation measures presented in the following are based on information publicly available. Besides, several suppliers of adaptation technology claim to use further “proprietary” measures that are considered as intellectual property rights and as such are confidential

5.2.3.1 Adaptations Applied to Prevent Adverse Technical Effects

Adaptations to Prevent Problems in the Fuel Supply - Seals and hoses of the fuel supply system that are not vegetable oil compatible are exchanged. Hoses with a diameter of below 12 mm are exchanged for ones with a larger diameter, to reduce resistance to the flow of fuel. The fuel pump is often exchanged for a larger model, or an additional fuel pump is installed [WIC05].

- The fuel back flow is “shortcut” to reduce chemical deterioration of the oil. Shortcutting implies adding a junction, often including an air vent, into the fuel supply [BRA04].

- Cleanable fuel pre-filters are installed to reduce the need for fuel filter exchanges. A second fuel filter is sometimes installed in parallel, together with a simple switching device, in order to reduce inconveniences involved in the case of fuel filter clogging (e.g. in a car during a long distance travel) [EDE04].

- A heat exchanger is added before or at the fuel filter to reduce viscosity of the oil in the filter and the injection pump. Hot cooling water is commonly used as a heating medium. 5 Strategies Used and Experiences Made with Using Vegetable Oil 37

In two-tank systems, vegetable oil is only used after the cooling water has reached a certain temperature. In one-tank systems, an additional electrical pre-heater can be installed for incidents of cold starting [WIC05].

- Continuous heating of the fuel tank had been used in earlier adaptation technologies, but was found to do more harm than good and is not commonly used any more [WID01].

- Only in a two-tank system, the injection system is “flushed” with diesel after every use, which prevents polymerisation of vegetable oil left in the system [BRA04].

Adaptations to Ensure a Good Combustion - Glow plugs are often exchanged for such with a higher heating capacity and/or the control is adapted to allow a longer afterglow time, with the goal of facilitating cold starting [REM02b].

- Fuel is heated before injection in order to reduce viscosity and improve combustion.13 The most common approach is to use a heat exchanger at or before the fuel filter, as described above. Other approaches include the use of electrical resistance-heating of the injection nozzle itself [BRA04].

- Multiple-hole-injection nozzles are exchanged for those with more holes to improve atomisation [WIC05].

- Injection timing is advanced in order to allow more time for air fuel mixture generation and combustion [BRA04]. This can be done manually at most older engine models and is a “simple” programming task in modern, computer-controlled engines.

- Opening pressure of the injection nozzles is sometimes increased to improve the spray pattern and consequently the atomisation of the oil [BRA04].

- A modification that is applied only to direct injection engines is a redesign of the combustion chamber with the aim of keeping the whole combustion cycle at a higher temperature level [VAI06b]. Figure 5.5 shows the general concept of such an adapted combustion chamber, where adding a thermal isolation into the piston reduces heat transfer away from the piston.

13 Positive effect of increased fuel temperature has been found in many experiments [GOE98b] [ALM02]. It was yet found not to prevent the formation of deposits [KOL99]. 38 5 Strategies Used and Experiences Made with Using Vegetable Oil

Figure 5.5: Adaptation of piston in a direct injection engine [VAI06b]

- In a two-tank system, problems related to combustion can be prevented by using the engine on high loads only [ELS03]. To avoid low load operation on vegetable oil, basic versions include a manually controlled fuel switch, where fuel is manually switched from diesel to vegetable oil when the engine has reached a certain temperature and switched back to diesel when the load is very low, such as when driving a car in a city. A recent development are automatic switches, which include a sensor of the load and switch the fuel automatically back to diesel if the load falls below a certain threshold for a certain period of time [SCH06b].

Adaptations to Prevent Problems with Lubrication System To prevent adverse effects caused by a deterioration of the lubricant oil, the “Planotronic” system has been developed by the “Fuchs Petrolub AG Mannheim”. Lubricant oil is continuously exchanged by blending small amounts (2 % of the fuel) into the fuel supply and continuously refilling the lubricant oil [BRA04].

The most commonly applied approach is yet that recommended by most suppliers of adaptation technology, to reduce oil exchange interval by 50 % [ELS06b].

5.2.3.2 Available Adaptation Technology

The worldwide most established market for adaptation technology is Germany [ARN05], where a very large number of different adaptation technologies are offered. Some adaptation concepts are only sold and implemented at workshops, others are sold via the internet as “do-it-yourself-kits”. In many cases, technically skilled users apply self-developed adaptation concepts [FMS06]. Only for stationary applications, such as cogeneration units, readily adapted engines are available for purchase.

Several suppliers of adaptation technology claim to conduct extensive research to develop specific adaptation technology for each specific type of engine. Those “high tech” adaptation concepts are considered as intellectual property rights and are often licensed out to various workshops within Germany, sometimes even internationally. If carried out by such a supplier, adaptation includes a guarantee on the parts installed only. An additional “machine failure insurance” can be purchased. 5 Strategies Used and Experiences Made with Using Vegetable Oil 39

Many other suppliers offer “do-it-yourself-kits” that can be bought via the internet and installed by anyone with advanced mechanical skills. Such adaptation technology will be referred to as “low tech” adaptations. As opposed to the “high tech” adaptations, there are no big secrets about the individual components. A typical adaptation set that is sold via internet all over the world is that of “Elsbett”.14 Figure 5.6 shows the main components of such a two-tank adaptation set.

Figure 5.6: Two-tank adaptation kit of Elsbett Company [ELS06b]

5.2.3.3 Practical Experiences with Using Adaptation Technology

It is very difficult, if not impossible, to evaluate the overall experiences made with using adaptation technology. No comprehensive survey has been conducted. Many sources of information are either not representative (such as internet platforms), or have an interest in either promoting or discouraging the technology (such as suppliers of adaptation-, or “biodiesel”- technology). Because most practical experiences documented where found to exist in Germany, the further discussion will focus on experiences made in Germany.

Use of straight vegetable oil has been commonly understood to be limited to a small group of mechanically skilled and ecologically aware people that don’t mind facing increased need for maintenance and repair [ARN05]. It appears that continued government subsidies and rising prices for diesel fuel have lead to a more broad dissemination of this technology. The results of [SCH06c] (Figure 5.7) emphasise that straight vegetable oil makes up for only a very small percentage of overall fuel consumed and that use of biodiesel is the prevailing approach in

14 The company has stopped production of the original Elsbett engine but sells adaptation technology. 40 5 Strategies Used and Experiences Made with Using Vegetable Oil

using vegetable oil as a fuel. The absolute number of 213 million litres of rapeseed oil that have been used as fuel in Germany in the year 2005 does yet indicate that a substantial amount of rapeseed oil is, presumably successful, used as a fuel. Main applications for using vegetable oil in adapted engines are cars, trucks, cogeneration units and agricultural machinery.

Figure 5.7: Fuel consumption in Germany 2005 [SCH06c]

Experiences with Adapted Cars and Trucks While several fleet tests with using vegetable oil in cars have been conducted by various federal agencies, no well documented results are available. Of a fleet test with 60 adapted, indirect injection cars conducted in Germany in 1996, the only results available are published by the supplier of adaptation technology [VWP06]. These do not mention any problem occurring. A small but well documented fleet test was carried out by [EMB05]. The experiences made with 10 adapted cars (using “high tech” adaptations”) were documented during a period of one year. Besides several minor failures related to the fuel supply, no major failures, that were directly related to the use of vegetable oil, occurred. A strong dilution of vegetable oil into the lubricant oil was found in several cases.

An online database of (primarily German) users of vegetable oil in vehicles contains a total number of 18,710 engines that have been used on rapeseed oil at least once since 2002 [FMS06]. A smaller database in English language contains 313 vehicles, of which only 30 % report to be running trouble free [VEG06].

While several suppliers of adaptation technology claim that an application is reasonable in any case, more responsible suppliers exclude the use of adaptation technology in cars where [ELS06b]

- primarily short distances below 30 km are covered

- rotary injection pumps of Lucas/CAV etc. are used.

Several suppliers of adaptation technology focus on adapting fleets of trucks used by companies for long distance transportation, which is reported to be an increasingly popular application [BUR06]. No experiences are documented. 5 Strategies Used and Experiences Made with Using Vegetable Oil 41

Experiences with Adapted Engines in Power Generation

In the south of Germany, a considerably large number of small, adapted cogeneration units15 are used. One application is to supply electricity and heat to cottages in remote parts of the mountains. This application is often promoted with a focus on the reduced risk of fuel spills in environmentally sensitive areas. The leading supplier of such units (up to 29 kW), “Karl Weigel Energietechnik”, is reported to have sold more than 300 units [THU06]. As a base engine, indirect injection Kubota engines are commonly used. Figure 5.8 depicts a picture of such an engine. Most important feature is a swirl type precombustion chamber.

Figure 5.8: Engine design of small Kubota engines [KUB06]

It was found that the success of the use of vegetable oil in such units varies considerably. According to the supplier, success depends primarily on the utilisation behaviour and the maintenance applied [WEI06].

A field research by [WID01] investigated into the experiences made in remote cottages and covered a total of 7 of such units (< 25 kW) of different technologies and various suppliers, that had been used between 1990 and 2000. It was found that both adaptation technology and rapeseed oil quality have considerable improved since the early 1990’s. Most important factors for a successful use of vegetable oils were found to be:

- use of indirect injection engines

- availability of competent service technicians that can be on site within a short time

- “commitment for environmental technologies and preparedness for extra efforts”.

In [CAR02], results of an interview of 10 owners of cogeneration units are very briefly summarised: Three units had suffered an engine failure and were not repaired, a fourth one

15 Engines used in such applications are the same engines as used for electrical power generation; only difference is that waste heat is used for heating purposes. 42 5 Strategies Used and Experiences Made with Using Vegetable Oil

was not in use any more due to excessive maintenance requirements involved with the use of vegetable oil.

Reports of increased incidents of failures had led to a very detailed survey by [THU02b], which analysed in depth experiences made with 3 units connected to a main electricity grid. It was found that a successful use of such units is possible,

- if the vegetable oil used is of high quality

- if the fuel supply system is appropriately designed for use of vegetable oil

- if operation and maintenance is carried out by “skilled technical personal that brings with it a certain identification with the engine”.

In Germany, a subsidised feed in allowance for electricity generated in renewable energy applications is paid. This has made the use of larger cogeneration units (up to several hundred kW) increasingly popular in recent years [THU06]. Such units are commonly used to supply near distance heat for several houses and to feed in excessive electricity into the main electricity grid. In such size, only few manufacturers offer indirect injection engines at all. Direct injection engines are exclusively used where constant high load is guaranteed [QUI06][HOL06].

Beside the above mentioned, no independent surveys on experiences made are available. A large number of suppliers of such technology have only recently entered the market [THU06]. Amongst the suppliers with long-term experiences, some have stopped selling “smaller” engines and focus exclusively on larger, slow speed engines (> 500 kW). When using vegetable oils, maintenance and repair efforts for “smaller” engines (< 500 kW) were found to be excessively high [CEH06]. A practitioner reported that when several smaller engines are used, a common approach is to supply a spare engine for the case that failures make an engine overhaul necessary, which can occur every few months [CEH06].

Experiences with Adapted Diesel Engines in Agriculture Use of vegetable oil in agricultural tractors has been experimented with in the early 1980’s but was discontinued due to the problems occurring [VEL82]. Rising prices for diesel fuel and a reduction of subsidies for diesel used in agriculture have led to a renewed interest in the topic in Germany.

The so far largest and best controlled fleet test into the use of vegetable oil as fuel for tractors has been conducted in Germany in the years 2000 - 2005. The so called “100- tractor-demonstration-project” was financed by the German government with an amount of several million US Dollars. 111 new tractors of different brands were adapted with different “high tech” adaptation systems. All tractors were used in every-day-operation and scientifically monitored by the University of Rostock. While final results were not available at the time of writing, extensive preliminary results have been published. 5 Strategies Used and Experiences Made with Using Vegetable Oil 43

Even though “high tech” adaptation technology was used, a substantial amount of failures appeared that were caused by the use of vegetable oil. Figure 5.9 shows the quantitative occurrence of failures at different parts of the engine. Most common types of failures were those related to the fuel supply and injection system. A considerable amount of major engine failures was realised as well.

Figure 5.9: Incidents of failures during the "100-Tractor-demonstration-project" [HAS05]

The preliminary conclusion drawn was that the use of rapeseed oil is generally feasible if certain conditions are met, but can not be recommended without restrictions at the current state of technology. Lessons learned from this research were [HAS06b]:

- the success or failure of an engine depends primarily on the original engine design, only secondarily on the adaptation technology used

- adaptation technologies applied are not yet technologically mature

- use of vegetable oil on low load has to be reduced to the minimum

- lubricant oil has to be constantly monitored and exchange intervals reduced by at least 50 %.

Due to continued interest in using straight vegetable oil in agricultural machinery, several engine manufacturers have recently expressed interest in further investigating the option of developing an engine especially designed for vegetable oils [STA06].

6 Cost Implications of Using Vegetable Oil as Fuel 45

6 Cost Implications of Using Vegetable Oil as Fuel

While an abundance of publications considers technical effects of using vegetable oil, financial effects have not been a focus of research so far. Because this thesis will attempt a quantification of cost implications of using vegetable oil, an overview of prior relevant works is given below. Several authors have estimated cost implications of using straight rapeseed oil in either cars or agricultural tractors in Germany. Overall results of their research are highly specific and will therefore not be discussed in detail. Yet a brief overview of the work done will be given and relevant estimations on financial consequences summarised (Table 6.1).

In 1991, [KLE91] has investigated the macroeconomic costs and benefits of using straight rapeseed oil as substitute for diesel in agricultural tractors in Germany. Cost implications were estimated for the case that an “Elsbett” engine is used and the case that adaptation technology is applied. Estimations were made on cost of adaptation, extra maintenance and increased fuel consumption. [KRU02] focused his research on emissions but considered financial aspects as well. Only the cost of engine adaptation is taken into account in his work. A similar research was done by [KOS95], where extra cost per car is estimated not for an adapted engine but for the case that a vegetable oil engine produced in serial production is used. All these publications do not consider cost of engine failures.

[KEY05] and [GRA06] more recently have estimated financial consequences of replacing diesel by straight rapeseed oil in adapted agricultural tractors. Again the cost of adaptation, increased fuel consumption and maintenance (here explicitly specified as lubricant oil, oil filter and fuel filter exchange) are considered. In addition, the cost involved in an increased risk of failures is comprised; to avoid a precise quantification of this cost it is assumed that a “machine failure insurance” is purchased, which covers any eventual cost for repair.

Table 6.1: Estimations of financial consequences published in literature

Cost for adaptation Fuel Extra Machine failure Author Application (USD) consumption maintenance insurance min max [KLE91] Tractor (adapted) 2,200 5,100 + 16% +3% n/a

[KLE91] Tractor (Elsbett engine) 0 15,500 - 5.5% n/a n/a

[KRU02] Car (adapted) 2,600 3,500 n/a n/a n/a

[KOS95] Car (veg.oil engine) 310 620 n/a n/a n/a

[KEY05] Tractor (adapted) 3,600 6,100 + 5.5% +125 USD/year 600 USD/year

[GRA06] Tractor (adapted) 5,500 6,700 + 5.0% + 600 USD/year 1500 USD/year

In a recent study by the German agency for technical cooperation (GTZ), an assessment of the overall cost that the use of straight vegetable oil in transportation causes was attempted. It was found that financial consequences are difficult to estimate because technical effects are difficult to quantify and users of vegetable oil mostly do the maintenance and repair 46 6 Cost Implications of Using Vegetable Oil as Fuel

themselves [ARN05]. Figure 6.1 shows the results of the assessments of total cost incurred per 100 km when straight vegetable oil is used (bar on the top). Because of large uncertainties, estimations of total cost of the use of straight rapeseed oil range within a very broad bandwidth from 1.2 to 5.60 USD per 100 km. Corresponding cost of use of diesel was estimated to range from 2.30 to 2.90 USD per 100 km [ARN05].

Figure 6.1: Diesel and vegetable oil fuels - total cost per 100 km [ARN05]

The only published financial consequences that are based on empirical data are preliminary results of the “100-tractor-demonstration-project”. Figure 6.2 gives an overview of the accumulated cost of repair that the 111 participants of the project faced within three years. Preliminary results published from this research only indicate magnitudes of cost involved (~0; <1,200 USD; >2,400 USD; >18,000 USD) which do not allow for a detailed assessment [HAS05]. The results emphasise that when analysing cost implications of using vegetable oils, it is important not only to consider the cost of adaptation, increased fuel consumption and maintenance, but as well the cost of engine failures.

Results of the "100-Tractor-Demonstration-Project"

Cost for Repair during 3 Years of Using Vegegetable Oil

No failures; > 18,000 USD; 30 Tractors 10 Tractors

< 1,200 USD; > 2,400 USD; 35 Tractors 36 Tractors

Figure 6.2: Cost of repair during 3 years of using vegetable oil [HAS05] 7 Synopsis of State of the Art 47

7 Synopsis of State of the Art

Different fuel properties of vegetable oil can lead to certain adverse technical effects when used as fuel. Such effects range from minor inconveniences to fatal engine failures. Occurrence of technical problems depends on a large number of influencing factors. In most cases, the reasons of problems occurring are known and have been described. In certain, very important cases, the state of technology does not allow for a conclusion on which parameter is the single most important one.

International experience shows that adverse technical effects can only be reduced to an acceptable level if certain conditions are fulfilled. These refer to the fuel and the engine used, but equally to the utilisation of the engine. Even then, use of vegetable oils was found to involve certain risks of failures and extra work, requiring a strong commitment of the user. Research efforts that investigated cost implications of using vegetable oil underlined that a close consideration of extra cost incurred, including cost of failures, is required.

Fuel Used Blending vegetable oil with diesel alone does not prevent adverse technical effects but only postpones problems. Similarly, use of additives improves certain characteristics of the oil but not sufficiently in order to be used as a singular solution. Both approaches can yet be used to contribute to a successful application of vegetable oils.

The quality of the vegetable oil used was found to be a prerequisite for trouble free application of vegetable oils. The Standard DIN V 51605 defines quality requirements that should be met by rapeseed oil used in small diesel engines. Other engines, such as very old or very large engines are more forgiving in the requirements of the fuel used.

The following quality characteristics of vegetable oil have been identified to be the most important when used as fuel

- particulate contamination

- acidity (influenced by “water content”)

- level of pre-aging (measured as “oxidation stability”, influenced by “water content”)

- carbon residue

- phosphorous content.

The first three parameters are directly influenced by storage conditions of the feedstock and oil. 48 7 Synopsis of State of the Art

Engine Only if the engine technology is appropriate for the use of vegetable oils, a successful use is possible. For large stationary applications, vegetable oil engines are available. For small and medium sized engines, adaptation technologies are used to reduce negative technical impacts. If vegetable oils are used in these engines, original engine design characteristics have a far greater influence than the adaptation applied. Most important parameters of engine design are:

- combustion chamber design (indirect injection considerably better than direct injection)

- cylinder volume (“the larger the better”)

- engine speed (“the slower the better”)

- tolerance to fuel quality / age of the engine (“the older the better”)

- type of injection pump (“inline” pumps are best, “Lucas/CAV” can not be used with vegetable oils).

Utilisation & Maintenance Utilisation and maintenance of the engine has an equally important influence on the occurrence of problems as the engine and the vegetable oil have. If vegetable oils are used, not only the engine needs to be adapted, but utilisation and maintenance pattern as well. Most important aspects of such an “adapted” utilisation pattern are:

- avoiding low load operation

- reducing number of cold starting incidents.

These requirements are directly linked to the purpose an engine is used for (e.g. an agricultural tractor or a grid-connected cogeneration unit), but can further be determined by the user of the engine (e.g. by avoiding idle speed running).

A second important element of the utilisation and maintenance pattern is the attention paid to the engine. The risk of various problems can be considerably reduced if:

- increased maintenance procedures are followed (50 % reduced oil exchange interval, cleaning injection nozzles regularly)

- highest caution is paid in case of irregularities (immediately cleaning blockages in the fuel supply, immediately stopping the engine if combustion is abnormal). 8 Coconut Oil as Fuel 49

8 Coconut Oil as Fuel

The Pacific Islands Countries are scattered over a total of 180 million km². With the exception of Papua New Guinea, countries range from only 20 km² of surface area (Nauru) to 28,000 km² (the Solomon Islands), with populations ranging from several thousand to 0.84 million people (Fiji) [WAD05]. An overview of the Pacific Island Countries is given in Figure 8.1.

Figure 8.1: Map of the Pacific Island Countries [OCH06]

8.1 Production of Coconut Oil in the PICs

The PICs contribute approximately 4 % of the total world production of coconut oil [MCG05]. Production of copra, the feedstock for coconut oil, is a major source of income to large parts of the rural population. In many village communities it is the only source of cash income. Coconut oil is produced and used in a variety of different ways.

8.1.1 Large-Scale Coconut Oil Production

The largest amount of coconut oil is produced using the copra process, also called the “dry process”. Coconuts are collected by hand, split with an axe and the moist white flesh is 50 8 Coconut Oil as Fuel

removed in finger-sized strips (Figure 8.2, left). The following drying process is either done by leaving the coconut flesh lying in the sun for several days, by “smoke drying” on racks over an open fire (Figure 8.2, right) or by using especially designed copra driers. In the latter two cases, dried coconut husks are often used as a solid fuel.

Figure 8.2: Copra production

Dried coconut flesh, called copra, is then shipped to a central oil mill. At the mill, oil is produced by mechanical extraction. The production process is similar to that of the “small- scale production” described in Chapter 2, yet two additional processing steps are applied [KHU06]:

- crushing: copra is broken into fine particles at the beginning of the production process

- cooking/conditioning: the crushed copra is passed through a steam-heated cooker and maintained at about 100-110°C for about 30 minutes in order to improve extraction efficiency.

A first filtration step is commonly applied in a screening tank, a second one via a chamber filter press. Eventual refinery steps, such as neutralisation or deodorisation can be applied.16 Coconut oil from such mills has been used as fuel in several cases in the PICs. If sold as fuel, the oil is subjected to at least one extra step of filtration. As an example, Figure 8.3 shows the “biofuel station” and its filtration system that are used in the Marshall Islands.

16 There is no data available on the extend in which refineries are existing and operational in the PICs 8 Coconut Oil as Fuel 51

Figure 8.3: Filtration system used in the Marshall Islands

Coconut oil is pumped via a bag filter (Figure 8.3) into a storage tank. Between the storage and the day tanks, coconut oil is led through a set of water separators (not depicted in detail). From the day tanks, oil is pumped through another set of particulate filters (Figure 8.3, top left) to the filling station. In all tanks the outflow is located at a height of approx. 20 cm above the bottom in order to allow sediments to settle down; tanks are supposedly cleaned in regular intervals. All filtration systems are regular equipment for fossil fuel treatment.

8.1.2 Small-Scale Coconut Oil Production

For the local use as a body or cooking oil, a traditional method is used in the villages throughout the pacific. This production process includes manual grating of the fresh coconut, manual pressing in a cloth and extended cooking to separate the water from the oil.

The Direct Micro Expelling (DME) method bypasses the conventional copra making stage of oil production. Figure 8.4 presents an overview of the main processing steps.

Figure 8.4: Direct Micro Expelling - production process

Whole coconuts are split and raw kernels are grated by a rotating ‘pineapple-head’ shredder (usually powered by an electric engine). The grated coconut meat is dried on a stainless 52 8 Coconut Oil as Fuel

steel plate at moderate heat for about 20 minutes. A hand-operated cylinder press is used to extract the oil. Time between opening the nut and pressing the oil is as little as one hour. Coconut oil produced in the DME process is of very high quality and is sold as “virgin” coconut oil. It is used for the production of high quality soap, body lotion or as a nutritional enhancement. The price of “virgin” coconut oil is approximately 5 to 6 times higher than that of “regular” copra oil [TAR06].

A third production process uses a small-scale screw press. The extraction unit of such mills is similar to that used in large copra mills. As a feedstock both grated coconuts or copra can be used. If grated coconut or very high quality copra is used, resulting oil quality is similar to that of the DME process [TAR06]. If copra is used without prior crushing, two consecutive milling steps have to be applied to achieve a reasonable extraction rate [CHA06]. A small- scale oil mill that is used in various places in the Pacific Islands is the “Tinytech” mill imported from India [MCG06]. Figure 8.5 shows such a mill in a typical production site. A Listeroid engine is used to drive the oil mill via a rubber belt. With two persons working, around 600 kg of copra can be processed per day [CHA06]. A metal screen included in the mill removes major impurities in the extracted oil; a second filtration step follows in a chamber filter press.

Figure 8.5: Small-scale screw press - production process 8 Coconut Oil as Fuel 53

8.2 Qualities of Coconut Oil in the PICs

8.2.1 Properties of Coconut Oil Described in Literature

The chemical structure of coconut oil is identical to that of other vegetable oils. It does yet stand out by the composition of its fatty acid chains, which is made up of short and highly saturated fatty acids. With an iodine value of only 8 - 10 [MAC01], coconut oil is the vegetable oil with the highest degree of saturation [THU02a]. The specific molecular structure leads to a very high solidification temperature of 20 – 25°C [KOP04]. At 40°C, viscosity of coconut oil is yet reported to be similar to that of other vegetable oils, with values specified between 26 and 37 [SHA99][KOP04][VAI92].

Values presented in literature for the net calorific value and the cetane number do not offer a clear picture. Table 8.1 gives an overview of values stated by different authors. [VAI92] finds that when it is used as fuel, coconut oil causes the shortest ignition delay of all vegetable oils analysed. According to [VAI06b], phosphorous content in coconut oil is negligible.

Table 8.1: Properties of coconut oil net calorific value and cetane number

[KOP04] [MAC01] [MAS01] [VAI06b] [VAI92] Net Calorific Value (kJ/kg) 38,000 35,800 37,950 37,100 Cetane number 60 - 70 37 41 43

8.2.2 Properties of Coconut Oil Limited in the DIN V 51605

As part of the practical work of this thesis, various samples of coconut oil produced in the PICs were provided to the German laboratory ASG. Three samples were drawn from coconut oil produced in large-scale oil mills in Fiji, the RMI, and in Samoa. For comparison, two samples were drawn from oil produced of grated coconuts, one using the DME process and one using a Tinytech oil mill. All samples have not undergone any refinery process. Complete tests according to the standard DIN V 51605 were carried out for the samples from the RMI and Samoa, only selected quality dimensions were tested for the other samples.

For several quality dimensions, additional testing results of two samples produced in a large- scale oil mill in Vanuatu were available and will be included in the discussion. Where applicable, results of the tests are compared to results of [STO06b], where 39 samples of rapeseed oil produced for the use as fuel were tested (variable properties only) and [THU02a], where 22 samples of rapeseed oil were tested.

Characteristic Properties Figure 8.8 graphically illustrates the testing results of coconut oil in the “characteristic” quality dimensions. Values are presented as percentages of the respective limit in the standard 54 8 Coconut Oil as Fuel

DIN V 51605. The green (white) fields indicate allowed values; red (grey) fields indicate exceedances of the respective limit.17 Numerical results are presented below in Table 8.2.

Characteristic Fuel Qualities of Coconut Oil

1000%1.000 CNO Fiji

CNO Marshall Islands 100%100 CNO Samoa

CNO Vanuatu 1

10%10 CNO Vanuatu 2

e r % of resp. limit in DIN V 51605 DIN in limit resp. of % Virgin CNO sity ber nsity o e point value Sulfu (Tinytech) D sh al. value residu ne la c i Virgin CNO F in. visc bon Iod (DME) K Net ar Cetane num C Figure 8.6: Characteristic fuel qualities of coconut oil

The iodine value of coconut oil is very low, with values of 7 and 16 measured. Compared to the values listed in literature, the latter value (Samoa) is considerably higher, which may be due to a strong chemical degradation of the oil (discussed below). The low iodine value implies that coconut oil has a lower tendency to polymerise (form large molecules) than other vegetable oils [THU02a].

Table 8.2: Characteristic fuel qualities of coconut oil - numerical results

Copra Oil Virgin Coconut Oil Characteristic Properties DIN V 51605 Samoa RMI Fiji Vanuatu 1 Vanuatu 2 Tinytech DME Density (kg/m³) 900 - 930 926 952 925 925 Flash point (°C) min. 220 255 236 198 221 Kin. viscosity (mm²/s) max. 36 26 27 Net calorific value (kJ/kg) min. 36,000 37,456 34,947 35,140 35,047 Cetane number min. 39 62 64 Carbon residue (mass-%) max. 0.40 0.08 0.12 0.27 0.15 0.20 Iodine value (g/100g) 95 - 125 16 7 Sulfur content (mg/kg) max. 10 1.0 1.7

Values for carbon residue range between 0.08 % and 0.27 %. All values are lower than those measured in rapeseed oil, where [THU02a] finds an average value of 0.33 % and a minimum value of 0.27 %. This complies with the finding of [DOB00], that low iodine value is correlated to low carbon residue. The values of the two samples made from grated coconuts range between the other values, which confirms that carbon residue can not be directly

17 Required ranges for “density” and “iodine value” are included in the standard to distinguish rapeseed oil from other vegetable oils and are therefore not considered as an exceedance. 8 Coconut Oil as Fuel 55

influenced by the production process. If used as fuel, coconut oil will show an inherently lower tendency to form deposits than other vegetable oils.

The cetane number of coconut oil (62, 64) is substantially higher than the standard for rapeseed oil and even that for diesel fuel require. This confirms the findings of [VAI92] in regard to the short ignition delay. Since the testing procedure is not considered appropriate for vegetable oils, this value should yet not be overestimated.

The large variation in values for net calorific value is surprising18 but fits into the unclear picture presented in literature. Values for density, viscosity, flashpoint and sulphur content are similar to those for rapeseed oil and indicate similar properties as a fuel.

18 It is especially surprising that in the oil with the highest net calorific value, the highest water content is found and the lowest net calorific value is measured in the oil with the lowest water content 56 8 Coconut Oil as Fuel

Variable Properties

The testing results of the variable properties are graphically illustrated in Figure 8.7; numerical values are presented in Table 8.3.

Variable Fuel Qualities of Coconut Oil 1000%1.000 CNO Fiji

CNO Marshall Islands 100%100 CNO Samoa

CNO Vanuatu 1

10% 10 CNO Vanuatu 2

% of resp. limit in DIN V 51605 V DIN in limit resp. of % e y li h r n u s a s te io l ilit u k a t a b ro l A a v a o a W Virgin CNO in d t h i s p rth (Tinytech) m c n s a ta A o o E n ti h o a P Virgin CNO l c id ta x (DME) o O T Figure 8.7: Variable fuel qualities of coconut oil

Levels of total contamination of the two samples tested exceed the limits given in the DIN V 51605 by far and are higher than all results for rapeseed oil analysed in [STO06b], where the maximum value is 60 mg/kg. Consequently, wear of the injection system and tendency to formation of deposits is increased. Total contamination of the sample from the RMI (110 mg/kg) exceeds the limit by 450 %. This is in spite of the fact that a dedicated filtration system has been established. The reason can be either inappropriate technology used (equipment designed for fossil fuels) or inappropriate handling (lack of regular cleaning, etc.).

Table 8.3: Variable fuel qualities of coconut oil – numerical results

Copra Oil Virgin Coconut Oil Variable Properties DIN V 51605 Samoa RMI Fiji Vanuatu 1 Vanuatu 2 Tinytech DME Total contamination (mg/kg) max. 24 71 110 Acid value (mg KOH/kg) max. 2.0 15.2 8.6 4.0 7.5 6.5 0.5 0.5 Oxidation stability (h) min. 6.0 16 30 Phosphorous cont. (mg/kg) max. 12 34 12 52 28 23 30 20 Earth alkali (mg/kg) max. 20 22 7 30 1.2 Ash (mass-%) max. 0.01 0.17 0.02 0.003 <0.01 <0.01 0.16 0.08 Water (mass-%) max. 0.075 0.195 0.081 0.119 0.170 0.170 0.107

Considerably high acid values are a major cause of concern in respect to their influence on wear of injection systems and will be discussed in some detail. All acid values of the oils produced in large-scale oil mills using the copra process exceed the limit by far and are considerably higher than the maximum value of 3 mg KOH/g found in [STO06b]. Contributing influences are the short fatty acid chain lengths predominant in coconut oil and high thermal 8 Coconut Oil as Fuel 57

stress during drying of the copra and production of the oil. Extended period of time between harvesting and processing is also known to have a major influence [KHU06][CAN06]. The latter effect may be the cause for the difference in acid values between the oil from Fiji (4 mg KOH/g) and the RMI (8 mg KOH/g): While copra used in Fiji is sourced primarily from the same or the neighbouring island [KHU06], copra in the RMI is sourced primarily from outer atolls, with times for storage and transportation often exceeding three or four months [CAN06]. Different copra drying processes may also have an influence.

The extreme acid value for the sample from Samoa (15.2 mg KOH/g) is caused by very long storage of the oil over a period of more than one year. This result is therefore not representative.

Acid values of “virgin” coconut oil produced from grated coconuts are considerably lower. Primary reason may be either reduced thermal stress during drying and extraction, or the substantially shorter time between opening the nut and processing. Differences in extraction process between the DME and the small-scale screw press do not have an influence on acidity.

Values of oxidation stability, 16 and 30 hours, easily fulfil the requirements of the standard. Most remarkably, even the oil sample from Samoa still exceeds all values obtained for rapeseed oil in [STO06b], where the maximum value is 12 hours. This confirms the suggestions of [DOB00] that oxidation stability is inherently linked to low iodine value; although being a “variable” property, oxidation stability of coconut oil is generally higher than for other vegetable oils. Risk of failures in the fuel supply system caused by chemical degradation of the oil is decreased and requirements on storage conditions (in respect to low temperatures, absences of light and fresh air) are apparently lower than in the case of rapeseed oil.

Except of the sample from the RMI, the phosphorous content of all samples analysed exceeds the limits of the standard. The values are on average higher than values found in rapeseed oil by [STO06b]. The maximum value of 52 mg/kg (Fiji) is comparable to the maximum value of 45 mg/kg appearing in [STO06b]. These values do not confirm the expectation of [VAI06b] that phosphorous content in coconut oil is very low. This implies that both the occurrence of “gums” is expected, as well as tendency to formation of deposits is increased. The values measured of “virgin” coconut oils do not indicate an influence of extraction temperature when coconut oil is produced. Unlike in the case of rapeseed oil, phosphorous content can not be “simply” reduced by lowering temperature of the extraction process.

Compared to results of [THU02a] (avg. value: 0.004 mass-%), the ash content of the coconut oil samples is very high, especially in the case of both “virgin” oils and that from Samoa. A simple explanation may be dust entering during storage, as mentioned in [SCH06a]. Such high ash contents can increase abrasions in the injection system and contribute to the formation of deposits. 58 8 Coconut Oil as Fuel

The water content exceeds the limits of the standard in all cases. While this does not appear as a direct cause of concern, it may contribute to high levels of acidity. This effect may have contributed in case of the oil sample from Samoa, where water content is extremely high. Water content of the oil sample from the RMI is the lowest of all oils analysed. This may be caused by the water separators that are installed.

Values of earth alkali content vary strongly but are not of major importance and do not allow a conclusion on influencing factors.

8.2.3 Properties of Coconut Oil for Use in Heavy Fuel Oil Engines

To assess the qualities of coconut oil for the use in HFO engines, results of the tests are compared to quality requirements of the engine manufacturer Wartsila in Figure 8.8. Numerical values for the quality requirements are used from [HAG05] and are included in the indication of the respective quality dimension below the bars. It needs to be emphasised, that quality requirements of different engine manufacturers may vary.

Fuel Qualtities of Coconut oil for HFO engines 1,0001000% CNO Fiji

CNO Marshall Islands 100%100 CNO Samoa

CNO Vanuatu 1

CNO Vanuatu 2 10%10

) ) ) ) ) ) ) ) ) Virgin CNO ³ C) s g g g g / % g ° k / k % k ² - / k / - / (DME) /m / H 0 s s g m g g g g 6 s s k O ( m a m m a m m K Virgin CNO 1 t 0 m 0 0 g 0 m 0 9 n i 0 0 0 0 0 (Tinytech) 9 3 m 5 ( o 1 . 5 5 1 0 ( ( ( ( 0 p 0 0 . 2 y ( . r t y r n 0 ( % ofresp. limit in Wartsila requirements i h t . i 5 o ( i u ( s s s f h s l r n a e m l o e p h e e r u a t c t u s s F S l a D s n n o i a A o h o v W V b .c P r d t i o c Ca T A

Figure 8.8: Fuel qualities of coconut oil for HFO engines

When compared to these less stringent quality requirements, values for coconut oil remain well below the limit in most quality dimensions. Acid value remains a cause of concern. The oil sample from Fiji shows that fulfilling the requirement of 5 mg KOH/kg is possible without addition of refinery processes. Very high ash contents of the three samples discussed above still exceed the required limit by far. This quality dimension is yet a “truly” variable one that can easily be reduced. 8 Coconut Oil as Fuel 59

8.3 Conclusions on Fuel Quality of Coconut Oil

Most fuel properties of coconut oil are similar to those of other vegetable oils. Due to its chemical composition, coconut oil has superior “characteristic” properties. Being the most saturated of all vegetable oils, the inherent tendency for the formation of deposits during combustion is lower. The same applies for the tendency to cause obstructions in the fuel supply system through chemical degradation.

“Variable” properties of coconut oil produced in the Pacific Island Countries are less favourable. Most requirements of the DIN V 51605 could not be fulfilled. High levels of total contamination, phosphorous content and ash content increase the tendency to form deposits as well as the danger of obstructions occurring in the fuel supply system. Very high acid values increase risk of wear in the injection system.

Due to the large number of influencing parameters, an overall comparative judgement on fuel qualities is not possible. If variable properties of coconut oil are improved, it offers considerably better fuel properties than other vegetable oils. Potential fuel quality improvements depend largely on the type of production system used and production environment. The findings outlined above allow for conclusions of the main potentials for quality improvement.

Potential Quality Improvements of Large-Scale Coconut Oil Production For the production of coconut oil in large-scale oil mills, addition of refinery steps in order to reduce acidity appears feasible in theory. Regarding the use as fuel, addition of such processes can incur substantial dangers for the engines if not executed properly. A detailed technical and financial analysis is required. To reduce acidity, transportation of copra could be improved, yet a need for transportation over large distances will remain. Most promising option appears to be a further analysis of the influence of the different copra drying processes applied, which may offer considerable potential for improvement. High acid values of coconut oil from large-scale oil mills will remain a cause of major concern.

Total contamination offers a major potential for quality improvements, as it can be reduced by applying filtration technology specifically designed for the purpose of cleaning vegetable oils. Such technology is available from international suppliers and if used in combination with an appropriate quality control system, total contamination can be easily reduced.

Outlook on Fuel Quality of Coconut Oil Produced in Small-Scale Oil Mills

The only option to produce coconut oil as fuel in small-scale oil mills in rural areas at a reasonable effort (and price) appears to be the use of a small-scale screw press in combination with the “copra process”. Oil produced in such a way was not available for testing, but results allow conclusions on expected fuel quality. 60 8 Coconut Oil as Fuel

The acid value would be expectedly lower because of reduced storage times of copra. Very low values as measured in the “virgin” coconut oils could not be expected. If it is possible to fulfil the requirements of the DIN V 51605 can only be determined in practical experiments.

Similar to the case of large-scale coconut oil production, it is technically easily feasible to reduce total contamination of the oil. Appropriate filtration technology for vegetable oils is available. Only the human factor appears to incur a considerably high risk. This applies to the initial production as well as to any further handling of the oil.

Other fuel qualities, including the phosphorous content, would expectedly be similar to those of the samples of coconut oil produced in large-scale oil mills.

9 Technical Effects of Use of Coconut Oil as Fuel 61

9 Technical Effects of Use of Coconut Oil as Fuel

First experiences with using coconut oil in the Pacific Island Countries already have been made in the 1980’s; yet only few experiences have been documented or even scientifically analysed.

9.1 Scientific Experiences with Coconut Oil as Fuel

Research on the use of coconut oil as fuel has remained marginal. Relevant scientific publications are the journal articles of [SHA99][MAC01] and [MAS01], the doctoral thesis of [VAI92] and a working paper published by [KOP04]. Several further anecdotal experiments are published in the internet but lack sufficient scientific background. Of all laboratory experiments documented, only that of [SHA99] was conducted with 100 % coconut oil and only that of [MAS01] exceeded 20 running hours. Information on technical effects available will be briefly outlined, following the same categorisation as applied above.

In regard to the fuel supply system, no difficulties are reported in the experimental research. To avoid problems with the high solidification temperature, [KOP04][MAS01] and [MAC01] blend coconut oil with at least 50 % diesel fuel and [SHA99] reports to conduct his experiments at high ambient temperatures above 25°C.

The problem of formation of deposits when using coconut oil is only addressed in detail in the research work of [VAI92]. Based on analysis of chemical properties and experimental determination of ignition delay periods of various vegetable oils, [VAI92] concludes that coconut oil has the lowest inherent tendency to the formation of deposits of all vegetable oils considered. While other authors do not analyse the formation of deposits, [MAC01] and [SHA99] mention an incomplete combustion of coconut oil.

Contamination of lubricant oil is only examined in [MAS01]. Lubricant oil samples are analysed during a series of 100 hour test runs with varying blends of coconut oil and diesel in an indirect injection engine. It is found that engine wear (Content of iron in the lubricant oil is used as an indicator) increases with the amount of coconut oil contained in the blend, and that only a blend of 30 % or less could be recommended. A phase separation in the lubricant oil did not appear. Experts expect that such a phenomenon will occur similar as with any other vegetable oil [THU06]. While high level of saturation may inhibit the respective chemical reactions, higher acid values increase the risks [THU06].

The impact on fuel consumption has not been analysed in detail. Thermal efficiency is found to be decreased in [SHA99] and [MAC01], while [KOP04] finds it to increase. In the two first experiments, modern engines are used, in the latter a very old engine. 62 9 Technical Effects of Use of Coconut Oil as Fuel

9.2 Practical Experiences with Coconut Oil as Fuel

Various approaches have been followed in using coconut oil as fuel in the Pacific Island Countries. Reliable documentation is sparse because no independent surveys or field tests have been carried out. In the following, reported practical experiences are summarised. Where applicable, results of own research are presented and a brief evaluation (marked by italics) is added.

Using Coconut Oil Blends (<20 %) in Diesel Engines In a project supported by UNDP Samoa, a 250 kW19 direct injection engine in Savai’i, Samoa is run on a blend of 20 % coconut oil (80 % diesel) as a constituent of a large power supply system (Figure 9.1). To ensure a good combustion, the operators are instructed to run the engine on high loads (above approx. 50 % of the nominal power) only [CLO05]. The experiments began in April 2005. Aside from increased need for fuel filter exchanges, no further problems were observed. After one year and a total of 2,041 running hours on the coconut oil fuel blend, an analysis of the engine was conducted, which showed no signs of adverse effects [IWA06]. A sample of the coconut oil used and of the lubricant oil drawn in June 2006 was tested by the German laboratory ASG. Test results of coconut oil were discussed above (sample “Samoa”), the lubricant oil was fount to contain 3.5 % of vegetable oil.

Figure 9.1: Generator (250 kW) used on coconut oil in Savai'i, Samoa [CLO05][IWA06]

The result of the lubricant oil analysis indicates that combustion of coconut oil remains partially incomplete, implying that a certain risk of the occurrence of deposits is given. If strict load management, careful monitoring of lubricant oil and high caution in case of irregularities are applied, the pilot project is expected to continue successfully. Based on the results from the coconut oil testing, increased wear of the injection system has to be expected even if only 20 % of coconut oil is used.

19 derated from originally 400 kW 9 Technical Effects of Use of Coconut Oil as Fuel 63

Using Coconut Oil (100 %) in Small and Mid-Sized Vegetable Oil Engines In two pilot projects financed by the Secretariat of the Pacific Community and CIRAD,20 locally produced coconut oil was supposed to be used for rural electrification in Fiji [KHA06]. In Welangi village, Fiji, a Deutz 912W engine with a mechanical power output of 40 kW at 1,500 rpm was installed in July 2001. The engine was adapted with a two-tank system, fuel was switched automatically several minutes after starting and before shutting down the engine. No precautionary measure was taken to avoid low load operation on coconut oil during use. An electrically driven copra crusher, small-scale oil press and appropriate filtration technology were supplied. The engine was used to provide electricity during several hours at night. Because villagers did initially not own many electrical devices, electricity demand remained low within the first years, maximum load on the engine was ~20 % [KHA05]. After ~2 years, a problem occurred which required extensive repair. Information on technical details of the problem or repair procedures is not documented. After the problem was repaired, the generator was fuelled with diesel only. A variety of reasons was found to prevent another switch back to coconut oil, including a broken fuel switch, technical difficulties with harvesting coconuts (a tractor used for collecting coconuts broke down) and high opportunity costs for the time needed to produce coconut oil [MAR06].

A photo of the deposits found inside the exhaust manifold (Figure 9.2, right hand side, as compared to a clean exhaust manifold) was supplied by the Fiji Department of Energy. Interviews during an on-site visit revealed that when the problem occurred, excessive smoke in the exhaust gases was realised and operation of the engine was immediately stopped [WEL06].

Figure 9.2: Generator (40 kW) used on coconut oil in Welangi, Fiji

It appears that excessive formation of deposits (in the exhaust system, possibly also in other locations) was caused by extended low load operation and was the reason for the failure occurring. It can be expected that only discontinuation of use as soon as irregularities occurred has prevented a major engine failure. Once electricity demand in Welangi is

20 CIRAD is the “Centre de Coopération Internationale en Recherche Agronomique pour le Développement", a research institution based in France. 64 9 Technical Effects of Use of Coconut Oil as Fuel

sufficiently high, continuation of the use of coconut oil is technically feasible. Applying measures to prevent low load operation during times of low electricity consumption (automatically or manually switching to diesel) is recommended.

In Ouvea, New Caledonia, four engines in sizes between 48 and 300 kW are reported to be fuelled with coconut oil since as early as 1995. In all cases, adapted engines are used for purposes that demand a well-defined load, such as in a desalination plant or in a large electricity generation system. Technical supervision is supplied by CIRAD. There are no detailed technical reports available on the experiences made, use of the engines is reported to be free of troubles [COU06][VAI06b].

Using Coconut Oil in HFO Engines In Vanuatu, the private electricity company Unelco is experimenting with using coconut oil in a large HFO engine in the countries main power plant. The MAN B&W 9L32/40 engine with a rated power output of 4.2 MW has been fuelled with a blend of 5 % coconut oil and 95 % diesel, without any adaptations made. The coconut oil is filtered with a dedicated centrifugal filter. An analysis of parts of the injection system after several months has shown no detrimental effects [CLO06a]. The experiments are continued with increasing amounts of coconut oil used in the fuel blend. The biofuel expert at MAN B&W [GEH06] emphasised that the same engine can be used on 100 % coconut oil if the oil is appropriately cleaned. An acid number above 4 mg KOH/kg would reduce the necessary exchange interval of the injection system [GEH06].

Using Coconut Oil in “Historical” Engines In Vanuatu, straight coconut oil was used in a several “historical” engines during the oil crisis in the 1980’s. Two Perkins marine engines from the 1960’s with a power output of 36 kW had been used for power generation [CAL06]. The engines were indirect injection and had been adapted with a self-made “two-tank” system. To heat up the fuel prior to injection, the fuel supply line was winded around the exhaust pipe. Contamination of lubricant oil with coconut oil was found to occur and to increase wear on copper bearings. To reduce this contamination, injection nozzles were cleaned every 500 running hours. Although the oil used was of very bad quality, no major failures are reported to have occurred. Furthermore, a not specified number of Listeroid engines is reported to have been successfully used on coconut oil at this time [CAL06].

Using Coconut Oil in Adapted Cars In Port Villa, Vanuatu, various vehicles, primarily mini vans used for public transportation, are reported to be fuelled with coconut oil, in individual cases for more than 2 years. In most vehicles a heat exchanger is located in front of the fuel filter. As fuel, blends of coconut oil and diesel (or kerosene) are used, with contents of coconut oil up to 80 %. Increased incidents of fuel filter clogging are reported especially in the initial time after switching from diesel to coconut oil [DEA06]. Local practitioners expect this to be caused by “solvent” properties of coconut oil that “clean out” any prior contaminations of the fuel supply system 9 Technical Effects of Use of Coconut Oil as Fuel 65

[DEA06]. Besides deposits occurring on the injection nozzles and increasing levels of lubricant oil, no adverse effects are reported. Independent documentation is not available.

A considerably better documented experience with using coconut oil is that of the car of Jan Cloin at SOPAC [CLO06b]. The car is a Toyota Hilux, featuring an indirect injection engine and has been adapted with a similar heat exchanger as described above (Figure 9.3). Coconut oil was used in varying, predominantly lower blends with diesel fuel. Problems encountered include several incidents of clogged fuel filters, deposits in the fuel system and a leakage of the injection pump (which was not necessarily caused by coconut oil). No major failures have occurred so far.

Figure 9.3: Adapted car used on coconut oil [CLO06b]

Using 100 % Coconut Oil in Not Adapted Engines In the RMI, the local coconut oil processing company reported to use all their vehicles on 100 % coconut oil for more than 3 years. Another 20 customers are claimed to use coconut oil for a varying length of time. No failures or adverse effects are reported [TOB06].

As part of the practical work of this thesis, an in depth analysis of experiences made in the RMI was carried out and will be presented in the following chapter.

10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 67

10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

A field visit to the Republic of the RMI was done from the 23.03.2006 to 19.04.2006. The objectives were to

1. qualitatively analyse the technical effects of using coconut oil as fuel

2. identify and analyse possible applications for the use of coconut oil as fuel

3. prepare a quantitative assessment of expected financial consequences of using coconut oil in potential applications.

To achieve the first goal, in depth analysis were carried out on the most relevant experiences made with using coconut oil. To identify and analyse possible applications, interviews and on site visits were conducted in Majuro and the outer atoll of Wotje. In order to prepare a quantitative assessment, a broad quantitative survey of the occurrence of technical effects was conducted and information on relevant prices was collected. In this chapter, a short introduction to the RMI is given and results of the qualitative analysis are presented.

10.1 Country

The Republic of the Marshall Islands is a nation of about 51,000 people living on 29 coral atolls and 5 low-lying islands. The atolls and islands are situated in two almost parallel chain- like formations known as the Ratak (Sunrise) group and Ralik (Sunset) group.

Figure 10.1: Map of the Marshall Islands [EPP01] 68 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

The total number of islands and islets is approximately 1,225, spreading across a sea area of over 1.94 million km². Only 0.01 % of the total surface area is land area, with a mean height of approximately 2 meters above sea level. Of the population, 24,000 people live in Majuro atoll and 11,000 in Kwajalein atoll.21 The remaining population is distributed over the outer islands. Several atolls in the north-west are not inhabited due to nuclear contamination after American atomic testing in the 1950’s, repopulation is currently under way.

Climate The climate in the RMI is tropical, average temperature is around 27°C. Difference in average temperature between the coolest and the warmest months is less than 2 °C.

History and Politics The country had been under control of Spain (before 1885), Germany (until 1914), Japan (until 1944), the US (as part of the Trust Territory of the Pacific Islands) and became a sovereign nation in 1986. Economically and politically, the country still is closely linked to the USA. Under the “Compact of Free Association”, the RMI grant the US exclusive military access to the country, the US Navy uses Kwajalein atoll as strategic base and military research centre. The currency used in the RMI is the US Dollar, all Marshallese enjoy the right to live and work in the US.

Economy The economy remains relatively small and relies heavily on external assistance, which accounts for an estimated 60 % of Gross Domestic Product [WAD05]. Government is the largest beneficiary of foreign aid and therefore the main employer in the country. Industry is limited to coconut oil, fish processing and handicrafts. The sales of diesel fuel, which is imported from international markets and sold to fishing fleets in the Northern Pacific, makes up for the largest part of export value, 73 % in the year 2000 [EPP01].

Coconut Oil Industry Copra production in the RMI has reached a historical peak in 1970, with 6,700 metric tonnes produced per year [EPP01]. Several factors, including a lack of replanting of trees, alternative sources of income and irregular shipping schedules have reduced production levels to 4,000 to 5,000 tonnes per year [MCG05]. Copra is mainly produced on the outer atolls and is considered as the main cash crop for rural populations. With the aim of supporting rural development, coconut oil industry is highly subsidised by the government.

All coconut oil is produced in a central oil mill in Majuro, run by the company Tobolar. Small quantities (leading to high transaction costs) and low quality of oil produced, in combination with a large distance from world markets, reduce the price per ton of coconut oil sold to the

21 The last census in the RMI was done in 1999, actual figures may vary considerably 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 69

world markets considerably [MCG05]. This fact, together with the rising price for diesel fuel has made the idea of replacing diesel by coconut oil especially attractive.

10.2 Use of Coconut Oil as Fuel in the RMI

Tobolar has been experimenting with the use of coconut oil as fuel since 2003. Three company vehicles are reported to run on 100 % coconut oil since then. In April 2005 the “biofuel station” was opened up and coconut oil was sold to the public as a biofuel for the experimental use in engines. Oil sold as fuel undergoes a filtration process as described above. Additional refinery steps are not applied; no quality control system exists to measure fuel qualities.22 On 10.04.2006, a sample of the fuel was drawn; the results of the analysis have been presented and discussed above. Sales volumes since the opening of the “biofuel station” are shown in Figure 10.2, including the distribution to the main customers. Total amount of coconut oil used as a Biofuel adds to roughly 600,000 litres in the last 12 months, a strong decline in sales volume is visible after the first 6 months. The private company Pacific International Inc. (PII) has consumed most of the fuel. PII is the largest construction company in the RMI; its management is in charge of the administration of Tobolar via a management contract.

Biofuel Sales by Customer

Customer: other Customer Tobolar PII (Pacific International)

160,000 140,000 120,000 100,000 80,000 60,000 40,000

Sales (litres per month) per (litres Sales 20,000 0 5 5 5 5 5 6 0 0 0 0 06 0 r 05 t 05 p n g c A Ju Jul Oc e Jan 06 Feb 05 Mar May 0 Au Sep 05 Nov 05 D Feb Mar 06 Figure 10.2: Biofuel sales by customer

22 Equipment for additional refinery steps has been purchased but did never become fully operational. A quality control lab is available, but lack of equipment and procedural knowledge has so far prevented any quality testing 70 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

10.3 Technical Effects of Using Coconut Oil in the RMI

To achieve an insight into the technical effects of using coconut oil, in depth analysis focused on the most relevant experiences. Those were found to be the long-term experiences made at Tobolar and experiences made at the company PII. Because of the special interest in using coconut oil in remote areas, applications that represent such environment were, as much as possible, investigated. Results of the broad quantitative survey will be presented in consequent chapters.

10.3.1 In Depth Analysis of Experiences Made at Tobolar

Tobolar is the producer of coconut oil in the RMI and the main promoter of the use of coconut oil as fuel. The three company vehicles that are reported to be used on coconut oil for approximately 3 years are depicted in Figure 10.3. A fourth vehicle was used on coconut oil for only 4 months and will not be considered in more detail.

Figure 10.3: Tobolars company vehicles

No documentations of maintenance or repair activities was available, partial lack of cooperation of Tobolars management made the investigations difficult. In all cases, it has remained unclear if only 100 % of coconut oil was used or if diesel has at times been used as well.

Mazda Pick-up of Tobolar The Mazda pick-up truck of the year 2002 (4 cylinders, 2.9 l, naturally aspirated) is reported to be running on coconut oil since its purchase in early 2003. Since then, it has run a total of approx. 59,000 km. The engine is a swirl chamber type, indirect injection engine and equipped with a rotary injection pump by Bosch (both factors supporting a good acceptability of coconut oil). No adaptations were made to the engine. The management of Tobolar supplied all information presented in respect to prior experiences made with this car.

As a general effect, difficulties with starting on cool mornings and a need for more frequent fuel filter exchanges (approximately every three months instead of once a year) is reported. 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 71

In August 2005, a problem with the governor of the injection pump occurred. This had caused the governor to be stuck in the “full speed” position and led to the engine running on very high revolutions without control of the accelerator pedal. It was found that coconut oil has leaked into the injection pump through a seal and has led to an agglomeration of dried coconut oil on the injection pump governor. This is an identical failure as mentioned for the use of rapeseed oil in [ELS06a]. To solve the problem, the injection pump was taken apart and cleaned thoroughly. During repair, the injectors were found to be worn out and were exchanged. Furthermore, the cylinder head of the engine had been taken off and was cleaned of deposits. It is not known if this has been a direct consequence of the above described occurrence or if it was only a precautionary measure.

In December 2005, irregularities with the combustion occurred. Taking the injectors out and cleaning the injector needles from “sticky stuff” successfully solved the problem.

To allow a profound analysis, the engine was partially disassembled and analysed on 17.04.2005, findings made are presented below. It needs to be emphasised that a comparative analysis to the case that diesel would have been used was not possible and that it is not known if solely coconut oil or any blend with diesel had been used.

Injection Nozzles and Precombustion Chamber All injection nozzles showed a considerable amount of deposits (Figure 10.4), which must have developed within seven months of use. The “wet” appearance of the deposits is similar to that described in [BRE94].

Figure 10.4: Deposits on injection nozzle - Tobolars pick-up truck

Such deposits impact injection spray pattern. Because of the combustion chamber design, combustion may still function relatively well, yet an increased risk of contamination of the lubricant oil appears probable. Similarly strong deposits were found in the precombustion chamber. 72 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

Piston and Piston Rings Geometrically very uneven, but partially very strong formation of deposits was found on the perimeter of the piston. Different parts of the perimeter of one of the pistons are shown in Figure 10.5. Where deposits occur (Figure 10.5, centre), appearance is similar to those found in [MAU03]. Uneven distribution of deposits indicates a geometrically uneven combustion, possibly caused by impacted injection spray pattern. Obviously, risk of increased wear, piston seizures and a contamination of the lubricant oil with solid particles washed of the piston rings is considerably increased.

Figure 10.5: Deposits on piston - Tobolars pick-up truck

Although a considerable amount of deposits were found on the piston rings and inside the piston ring grooves (not depicted), movability of the rings appeared not to be restricted. Compression of the engine is therefore not necessarily impacted.

Exhaust Valve Examination of an exhaust valve showed deposits that are similar to those found in [MAU03], Figure 10.6. Deposits on the valve head and lower part of the valve stem (left hand side) have a very solid, carbonaceous appearance. These do not appear to be a cause of concern. Major deposits on the exhaust valve heads, such as described in [KOR91][BRE94] do not occur. Deposits on the upper part of the valve stem, where the valve moves inside the valve guidance (right from the indicated spot) have a different appearance. It corresponds to the description of [MAU03] of a “ductile mass”.

Figure 10.6: Deposits on exhaust valve - Tobolars pick-up truck 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 73

Because no irregularities in combustion have been reported, movability of the valve stem inside the guidance is apparently not impacted yet. Future problems with “valve sticking” have to be expected.

Other Findings Strong deposits were found on the top of the cylinder liners (not depicted), which had to be removed to allow disassembly of the piston. During disassembly, strong signs of wear were noticed on the bearing shells of the large end bearing of the connecting rod (Figure 10.7). These can be caused by deterioration of the lubricant oil quality, but could as well be due to other influences, not related to the use of coconut oil.

Figure 10.7: Scoring of bearing shell - Tobolars pick-up truck

Evaluation of Examination of the Engine Comparison to published analysis allows the conclusion that coconut oil leads to the formation of deposits just as any other vegetable oil does. Due to large uncertainties and lack of comparison, an inference on the degree is by no way possible. Deposits on the exhaust valves have to be considered as a direct threat to the engine. Thorough cleaning of those parts and of the injection nozzles, if not a general overhaul of the engine is highly recommendable. 74 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

The Canter Truck of Tobolar The Canter Truck is equally reported to run on coconut oil for approximately 3 years. A profound analysis of the engine was not possible during the field research.

Apart from a more frequent fuel filter exchange interval of 1-2 month, the management of Tobolar reported no adverse effects.

Investigations at a mechanical workshop in the proximity of the oil mill have revealed that several problems had occurred with the injection pump, a rotary injection pump of “Zexel” (license product of Bosch). During early 2005, it had to be taken apart and cleaned of “sticky” deposits in the inside of the plunger barrel assembly. In October 2005, problems occurred again. The movability of the plunger was reduced by wear of the part and the injection pump had to be replaced (~1,500 USD).

The Payloader of Tobolar The engine of the payloader is a Caterpillar 920 of the year 1970. It features a precombustion chamber type indirect injection system and an inline injection pump. The payloader is used primarily for task that require only low power output, such as the transportation of copra inside the storage hall or on the factory compound.

The engine has had a series of failures due to overheating in the recent years, before and during the time when coconut oil was used. As a consequence, the cylinder head broke and was replaced several times, which was again the case at the time of the field research. It was therefore partly possible to examine the engine, which had not been in use for several weeks before the analysis. The cylinder head had been discharged and could not be analysed.

Most prominent finding was an extreme occurrence of deposits inside the exhaust manifold (Figure 10.8). It appears obvious, that this has contributed to the repeated problems with overheating.

Figure 10.8: Deposits in exhaust manifold - Tobolars payloader

The inside of the combustion chamber showed strong signs of deposits as well, yet because it had been left open for an extended time, composition of these could not be identified. Given that the engine is 36 years old, it is not possible to securely relate problems experienced to the use of coconut oil. A contributing effect of coconut oil to the deposits occurring can yet be expected. 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 75

10.3.2 Experiences of the Construction Company PII

The construction company PII is by far the largest customer of coconut oil in the RMI, using it as fuel in a total of estimated 50 engines of heavy equipment and several cars and ship engines. In all engines, coconut oil was used without any prior adaptation. Utilisation of the engines varies widely according to their intended function. Incidental observations indicated that machines are left running idle for extended periods of up to several hours. Minor maintenance activities are in the responsibility of the operators but appear to be carried out only sporadically.

Precise data of when coconut oil was used and in a specific engine, or in which blend it was used, were not available. Starting in June 2005, 100 % of coconut oil had been used. In the following weeks and months, blends of 80 %, 50 % or lower were used and several engines were completely switched back to diesel fuel.

Failures of the Fuel Supply System Increased wear of the injection system was the predominant effect realised by the mechanics. A previously unknown change in colour of the plungers of injection pumps and needles of injectors occurred. The picture on the left of Figure 10.9 exhibits two needles of injectors, one after the use of diesel and one after the use of coconut oil; the picture on the right hand side shows the change in colour of an injection pump plunger. The brownish appearance is similar to the description of [KNU06], and is caused by either high acidity and/or high total contamination of the coconut oil used.

Figure 10.9: Increased wear of injection system - equipment of PII

Another previously unknown phenomenon was the occurrence of ductile deposits on the plunger of an injection pump of a ship, which had been used on varying blends of coconut oil (100 %, 80 %, 50 %) for approximately 6 months (Figure 10.10). Such deposits are not described in literature but by its appearance can be expected to be related to the use of coconut oil. 76 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

Figure 10.10: Ductile deposits on injection pump plunger - equipment of PII

In two cases, injection pumps of cars broke within the first three months of using coconut oil. Both were rotary injection pumps, the make could not be identified. While the possibility of a failure that is completely independent to the use of coconut oil should not be neglected, it seems highly probable that these failures are similar to those described by many practitioners in other parts of the world.

Failures Related to the Combustion Process In many pieces of heavy-duty machinery, coconut oil was found to leak from the exhaust system in considerable amounts. The picture on the left of Figure 10.11 shows the leakage of a turbocharger, which corresponds to the experiences described by [BRE94]. On the right hand side, coconut oil leaking from an exhaust pipe can be seen. Incomplete combustion of coconut oil is the reason for these occurrences. While not presenting a threat in itself, this leads to considerable long-term risks, caused by deposit formation and lubricant oil contamination.

Figure 10.11: Incomplete combustion of coconut oil - equipment of PII

In one incident reported, an exhaust valve got stuck in its guidance, was hit by the piston and caused a fatal engine failure. This happened to a Caterpillar 3406 engine that had been running on 100 % coconut oil for 3 months. While this type of failure has been described as being caused by the use of vegetable oils [LUD06], the occurrence of this specific incident can by no means be securely related to the use of coconut oil. 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI 77

Other Findings In most pieces of machinery, a reduction in power output was realised. In several cases, the intended functionality of the engine could not be fulfilled any more and use of coconut oil was immediately stopped (e.g. in the case of a crane and an air-compressor).

A general impression of all mechanics at PII is that the use of coconut oil did cause “a lot of extra work”. Rise in demand of fuel filters had been recognised all over the workshops and spare parts suppliers in Majuro.

Evaluation of Findings at PII The findings made can only offer a spotlight of the overall experiences at PII. No fatal engine failures that could directly be related to the use of coconut oil occurred so far. Based on the findings, it can yet be securely concluded, that, if the current approach of using coconut oil irrespective of the type of engine and specific utilisation pattern is continued, more serious technical effects will occur at PII, irrespectively if 100 % or any lower blend of coconut oil is used.

10.3.3 Using Coconut Oil in an “Outer Island Setting”

No experiences with using coconut oil have been made in the outer islands. Yet in two cases, small generators were used in an “isolated” place, one on a private boat and one on a small island within Majuro atoll.

In the first case, a generator was used on board of a boat that is also used for residential purposes. The engine of the generator is a 20 kW, 2/71 Detroit Diesel engine from the 1970’s. It is combined with a small wind turbine, several photovoltaic modules and a battery bank. The generator is used for approximately 3 hours a day for peak domestic energy use and simultaneous charging of batteries. The owner had been working as a ship engineer for over 20 years. In order to ensure a good combustion, attention is paid to keep a high load on the engine while running. For this purpose, a large air conditioning system is turned on when the engine is started, even if cooling of the room is not required. This engine has been running for 8 months and an approximate 750 hours on coconut oil, without failures reported.

In the second case, a 3 kVA generator, similar to the one shown in Figure 10.12, has been used to supply electricity for a small tourist island (one apartment). The generator included a modern, direct injection engine and was used to supply electricity at nights. The only electric devices used were entertainment devices and lightning, the latter being the sole use during much of the time. No attention was paid to reduce low load operation. 78 10 Analysis of Experiences with Coconut Oil as Fuel in the RMI

Figure 10.12: Direct injection generator in an "outer island setting"

After 3 to 4 months of using coconut oil, starting the engine became more and more difficult and clouds of black smoke were emitted when running. Use of the engine was continued irrespectively of these apparent malfunctioning. Eventually a failure occurred, necessitating a major repair that took three months (due to a lack of spare parts in Majuro) and cost almost as much as a new generator. A second, similar engine was used as a replacement, again on coconut oil, and failed as well after 3 months. At the time of the field research, the first engine was used again (on coconut oil again), yet in combination with a battery bank in order to reduce the daily running time of the engine.

Unfortunately, no detailed information was available on the exact failure that occurred or the repair that was done and an in depth analysis of the engines was not possible. While the description of the problem is less than accurate and many other factors can have played a part, it appears very probable that use of coconut oil on a low load was the reason for these negative experiences. 11 Conclusions on the Use of Coconut Oil in the Pacific Islands 79

11 Conclusions on the Use of Coconut Oil in the Pacific Islands

The scientific and practical experiences show that use of coconut oil as fuel in principle encounters the same problems that have been observed with use of other vegetable oils in other parts of the World.

It was found that coconut oil leads to the formation of deposits as any other vegetable oil does. The analysis of practical experiences does not allow a confirmation or falsification of the hypothesis that coconut oil shows a lower tendency to the formation of deposits. While inherent properties clearly support this assumption, only comparative long-term experiments will allow a definite answer. Practical experiences confirm the findings of the oil testing that coconut oil made of copra considerably increases wear of injection systems. Although fatal engine failures caused by a phase separation of the lubricant oil are not documented in any instance, this danger needs to be considered as a major threat when coconut oil is used as fuel.

Given the analogousness of technical effects, lessons learned from experiences made in other parts of the world can be directly applied to the case of using coconut oil in the Pacific Island Countries. This includes that adverse technical effects can only be reduced to an acceptable level if certain requirements are fulfilled in regard to

- fuel quality

- engine design

- utilisation and maintenance pattern.

It was found that the last factor is the most critical one for the use of coconut oil in the Pacific Island Countries. With regard to the major importance of combustion chamber design in small engines (irrespectively if adapted or not), it appears that use of small, direct injection engines on coconut oil is not a technically reasonable option for the Pacific Island Countries. 80 11 Conclusions on the Use of Coconut Oil in the Pacific Islands

Based on the findings of technical analysis and international experiences made, practical recommendations for use of coconut oil in the Pacific Island Countries can be deduced:

1) A “plug and play” approach of using coconut oil, in 100 % or any lower blend, can not be recommended.

2) When coconut oil in any blend is intended to be used in small engines, a case-by- case consideration is necessary that needs to include:

- is the engine indirect injection?

- is the injection pump not from Lucas/CAV (or licensees)?

- is the engine primarily used on high loads, and can extended low load operation be securely avoided?

- will maintenance intervals be carried out regularly?

Only if all these prerequisites are fulfilled, use of coconut oil should be considered. Use of adaptation technology in these cases will reduce occurrence of adverse effects. If these prerequisites are not fulfilled, use of coconut oil bears a considerable risk of major failures.

3) In larger engine sizes (e.g. >100 kW), use of direct injection engines may be considered, yet only in cases where a constantly high load can be guaranteed. In these cases, it is of uttermost importance to

- ensure a high load at all times when coconut oil is used

- reduce oil exchange intervals (e.g. by 50 %)

- clean the injection nozzle regularly (as necessary, e.g. every 500 h)

- immediately stop the engine if irregularities occur.

Such technical recommendations are limited in explanatory power, because they do not account for financial consequences. Experiences made with using coconut oil indicate that extra cost will be incurred even in the best case. On the other hand, technical risks of using coconut oil under less optimal conditions may be accepted if overall financial consequences remain favourable. Therefore, expected financial consequences of using coconut oil in various different applications will be estimated in the following chapters. 12 Identification of Possible Applications in the RMI 81

12 Identification of Possible Applications in the RMI

A general introduction to the RMI has been presented in Chapter 10. A more detailed description is necessary to deduce possible applications for use of coconut oil.

12.1 Population and Infrastructure Characteristics

Population of the RMI is distributed over two major centres of population in the atolls of Majuro and Kwajalein and another 27 outer atolls and islands that are only sparsely populated.

Urban Areas in the RMI Majuro atoll is the capital and has a population of approximately 24,000 people (1999). Figure 12.1 shows a satellite image on the left hand side. The main island in Majuro atoll spreads across a length of approximately 60 km along the entire southern half of the atoll. The width of the island is approximately 100 m on average, with only few areas where it reaches more than 500 m. The largest concentration of population is located on the eastern part of the island, where most public infrastructure, such as shopping centres, the hospital, the college, the airport and all harbours are located (Figure 12.1, right hand side). Various smaller communities are spread along the western part of the island, along one main road. Majuro has a well-developed airport that is connected by several flights a week to Hawaii and Japan (via Guam). Most cargo is landed via ship at one of the two seaports.

Figure 12.1: Satellite picture of Majuro atoll and Majuro town [GOO06]

Electricity is supplied for 24 hours a day, generated in a diesel power plant run by the Marshall Island Electricity Company (MEC). For storage of diesel, MEC owns a major tank farm (storage capacity: 25 million litre), from where diesel is also sold to ocean going vessels (primarily fishing fleets in the Northern Pacific) and bulk costumers in Majuro. For the individual use of fuel, diesel can be purchased from several gas stations on the island.

The second centre of population in the RMI is Ebeye, a small island of Kwajalein atoll. Main reason for the agglomeration of approximately 12,000 people is employment opportunities 82 12 Identification of Possible Applications in the RMI

offered by the US American military research base. Kwajalein atoll is connected directly both to the USA and to Majuro via airplane.

Outer Atolls and Islands The remaining 16,000 people of the RMI (1999) are distributed over the outer atolls and islands. An atoll consists of a large number of islands lined up as a chain around a lagoon. Such islands are of coral origin and vary in size, with many being as small as 10 times 10 meters, others having a width of up to 500 meters and a length of few kilometres. Most atolls have one or two main centres of population and several further islands are inhabited. Two of the outer islands have been established as regional sub centres, both featuring secondary schools and a privileged infrastructure. These are Wotje Island in Wotje atoll in the north and Jabwor Island in Jaluit atoll in the south (Figure 12.2).

Figure 12.2: Outer atolls and islands of the RMI [EPP01]

As a representative example of an outer atoll, population characteristics and infrastructure of Wotje atoll will be described.23 Information is based on a field visit from 04.04.2006 to 08.04.2006. Figure 12.3 shows a satellite picture of Wotje atoll, with a magnification of all populated islands.

Wotje Island is connected to Majuro via a twice-weekly airplane connection and by the “Northern Star”, a small privately owned ship that travels every 2 to 4 weeks. Public shipping service in the form of a larger boat, which primarily transports copra, passes by all islands of

23 Wotje atoll was chosen as a representative example that comprises both one of the two sub centres as well as smaller communities on other islands of the atoll. 12 Identification of Possible Applications in the RMI 83

the atoll in an irregular interval of 2 to 4 months. Approximately 700 people live on Wotje Island, a primary school and a secondary boarding school is available. Four small stores supply basic utensils for daily life; a first restaurant has opened up in April 2006. A power plant run by MEC supplies 24 hours electricity since 2003.

Figure 12.3: Satellite pictures of Wotje atoll [GOO06]

Wormej is a community of approximately 140 people, connected to Wotje by two so called “BumBum” boats. The trip takes about two hours; boats commute once or twice per day. In Wormej, only a primary school is available and there is no publicly supplied electricity. In Nibun, a population of 41 was counted in the last census in 1999, a small primary school and a first aid medical facility had been established. Since the provision of a 24-hour electricity supply on Wotje Island, population of Nibun has reduced dramatically. Today, only two small families live on the islands for several months a year in order to cut copra.

Where needed, fuels in minor quantities are purchased at one of the stores on Wotje Island. Owners of “BumBum” boats arrange for drums of fuel (208 litres) to be purchased by friends or family in Majuro and shipped to the island on the “Northern Star”. The power plant of MEC features two large diesel storage tanks (storage capacity: 750,000 litres), fuel is transported from Majuro in the tank of boats every couple of months.

12.2 Introduction to Possible Applications for Use of Coconut Oil

Based on the outlined infrastructure and observations made during field visits, potential applications for the use of coconut oil were identified and categorised. Applications are differentiated into "urban" and "rural" applications. A short overview of the amount of coconut oil available in each location will precede the introduction to the applications. 84 12 Identification of Possible Applications in the RMI

12.2.1 Production and Use of Coconut Oil in Urban Areas

In Ebeye (Kwajalein atoll), there is no coconut oil mill and copra production of Kwajalein atoll is negligible [MCG05]. A focus of the analysis will therefore be exclusively on potential applications in Majuro. Quantities of coconut oil available in Majuro are depicted in Figure 12.4 for the years since 1952.

Majuro - Coconut Oil Available [metric tonnes] 8,000

6,000

4,000

2,000 metric tonnes per year metric

2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 5 5 5 5 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2

Figure 12.4: Coconut oil available in Majuro, based on copra production [EPP01] (assuming 60 % extraction rate)

Possible applications for coconut oil as diesel substitute in Majuro can be categorised into:

Individual land transportation, referring to the private use of cars. Main purpose of use is transportation of persons within the town centre and communities along the main island. While sedan cars used are almost exclusively gasoline powered, many pick-up trucks and larger sport utility vehicles (SUV) feature diesel engines.

Professional land transportation, encompassing the transportation of people or goods in pick-up trucks, mini-vans or small trucks for professional purposes. Such vehicles mostly feature diesel engines and are used by private businesses or public entities.

Heavy-duty machinery, which is primarily used in the construction sector, but as well for the transportation of goods between the seaport or airport and the rest of the island.

“Urban” sea transportation, referring to large boats used for inter-atoll transportation of goods and persons. While it is not solely an “urban” application, inter-atoll shipping will be included in this category.

Large-scale power generation, comprising the engines used in the power plant of MEC to supply electricity in Majuro. In an old part of the power plant, four 2.5 MW Pielstick engines of the year 1981 and one 3.3 MW Caterpillar engine of 1993 are used. A new part of the power plant was established in 2000 and is equipped with two 6 MW Deutz engines. 12 Identification of Possible Applications in the RMI 85

12.2.2 Production and Use of Coconut Oil in the Outer Islands

There is no production of coconut oil in the outer islands that is relevant for the use as fuel. If coconut oil were to be used in the outer island, it is of special interest that this coconut oil ought to be produced locally, in order to contribute to local value added. This would imply the establishment of a small-scale oil mill. Such an investment would require close consideration of potential demand for coconut oil, which might be a major obstacle given the small population sizes of the outer atolls in the RMI. The problem of financial feasibility of coconut oil production in rural settings will yet not be considered in this thesis.

Figure 12.5 shows the amounts of coconut oil that would be available on each atoll. Besides the average values of the years 2000 to 2004, maximum values of the years 1986 to 2005 are presented, which indicate the possible production potential per atoll.

Outer Atolls - Coconut Oil Available [litres per year] 800,000 Average 2000 - 2004 700,000 600,000 Maximum 1986 - 2004 500,000 400,000 300,000 litres per year per litres 200,000 100,000 0 Kili Lib Mili Aur Lae Ujae Mejit Arno Ailuk Utirik Jaluit Ebon Bikini Jabat Wotje Namu Likiep Wotho Ujelang Namorik Maloelap Rongelap Enewetok Ailinglaplap Figure 12.5: Coconut oil available per atoll, based on copra production [MCG05] (assuming 55 % extraction rate)

Potential applications for coconut oil as fuel in rural areas can be subdivided into:

Rural land transportation, referring to the use of cars in the outer islands. If diesel cars are used, these are primarily pick-up trucks used to transport heavy goods within the village or for convenience (or prestige) alone. Distances covered are limited by size of the islands. In Wotje atoll, one diesel powered and one gasoline powered pick-up truck are used on Wotje Island.

Small heavy-duty machinery may be used for agricultural purposes in rural areas. In Wotje Island, one small piece of agricultural equipment is available for ploughing, which is used exclusively for teaching purposes at the secondary school.

Local sea transportation of persons and goods between various communities of an atoll is done by “BumBum” boats. Motorised boats used for fishing are primarily gasoline powered. 86 12 Identification of Possible Applications in the RMI

Communal power generation refers to engines used to supply electricity via a mini-grid to one or more villages on an island. MEC is running identically build power plants in Wotje and Jaluit and a smaller one in Rongrong, a small island within Majuro atoll.24 Electricity is supplied for 24 hours per day in all cases.

Most of the outer island communities in the RMI do not have such electricity supply. It is yet the goal of the government to supply all outer islands with electricity. A typical community power generation system in the pacific islands, which would be expected to be implemented in future electrification projects, consists of a single diesel engine used to supply electricity for several hours at night.

Individual power generation in rural areas comprises small generators used by one or a few households or small businesses where no communal power supply is available. They can be used to supply electricity for an air-conditioner or a refrigerator, for example in a small business or a wealthier household. They may also be used solely for a single entertainment device, such as a television set or even “smaller” electrical appliances. Diesel generators are available in sizes above ~2,500 W. When only small amounts of electricity are needed, gasoline generators (available in sizes above ~750 W and several times cheaper), or solar home systems are used as well. In the community of Wormej in Wotje atoll, 1 diesel generator, 3 gasoline generators and 14 solar home systems are used.25

24 A boarding school is the main reason for this power plant.

25 The high availability of solar home systems may not be representative. When the power plant was established on Wotje Island, all solar home systems have been given or sold to Wormej. 13 Description of Applications and Definition of Cases 87

13 Description of Applications and Definition of Cases

Each of the potential applications for use of coconut oil as diesel substitute has its own technical characteristics. Very relevant characteristics can vary widely even within an application. Yet estimations of technical consequences, which is required for a subsequent calculation of financial consequences, can only be made with regard to

- specified quality of the coconut oil used;

- specific type of engine used;

- specific utilisation and maintenance pattern.

Therefore, representative cases need to be defined, which include assumptions on all relevant parameters. These assumptions will be made based on the experience of field visits and the technology available. General technical parameters and considerations relevant to all applications will be outlined first. An in depth description of each application and definition of specific cases will follow.

13.1 General Technical and Maintenance Characteristics

13.1.1 Fuel Quality

Fuel qualities of coconut oil produced in Majuro and general considerations on expected fuel qualities in the case of a small scale production in rural areas have been discussed above (Chapter 8.3). It has been confirmed in Chapter 10 that coconut oil qualitatively shows similar properties as other vegetable oils, but no quantitative comparison was possible. In order to allow an estimation of technical effects, assumptions have to be made. To allow the use of quantitative reference values obtained from experiences made with rapeseed oil, assumptions are made in relation to rapeseed oil.

It will be assumed that in both urban and rural applications, coconut oil with similar fuel qualities as found in the oil sample from Majuro (Chapter 8.2) will be used. With regard to tendency to form deposits, in both cases it is assumed that the oil used has a slightly lower tendency than rapeseed oil. High acidity is assumed to increase wear of parts of the injection system more than in the case of rapeseed oil. This effect is assumed to be stronger in the case of oil produced in Majuro than when oil is produced in the outer islands. With regard to the occurrence of all other problems, fuel qualities are expected to be similar to those of rapeseed oil. 88 13 Description of Applications and Definition of Cases

13.1.2 Engine Technology

Main objective of the analysis are future potentials for the use of coconut oil as diesel substitute. Based on the insights gained in the first two parts of the thesis, use of small, direct injection (DI) engines and those with an injection pump of “Lucas/CAV” is not considered as a promising alternative, irrespectively if such engines are adapted or not. While this excludes large parts of the engines used, it was found that for all “smaller” applications,26 indirect injection engines (IDI) as well as those with injection pumps of other brands are available.

Therefore, the focus of the analysis will be on the use of adapted, indirect injection engines that do not feature an injection pump of “Lucas/CAV”. In order to analyse financial consequences of the in practice implemented “plug and play” approach, use of not adapted engines on coconut oil will be analysed in three selected cases that are of special practical relevance.

“Historical” engines are used in “individual power generation” and are still available for this purpose today. Therefore, use of such engines will be considered in one case.

Adaptation Technology Used In all cases where adapted engines are considered, use of a “low tech” adaptation technology in the form of a two-tank system will be assumed.27 Only where the utilisation pattern de facto does not allow use of a two-tank system, use of a one-tank adaptation system will be assumed.

The option of using “high tech” adaptation technologies will not be considered. This appears not to be feasible under given circumstances and the small potential market size for such technology in the RMI.28

26 “Small” hereby refers to all applications except of “urban” sea transportation and power generation with engines >100 kW.

27 Adaptation systems equipped with an automatic fuel switch are technically not mature enough to be used in the pacific environment.

28 In fact, an employee of the company Elsbett reported that the company has been approached several times with inquiries on cooperation with the RMI. Due to small potential market size the company has repeatedly denied any interest [NOA06]. 13 Description of Applications and Definition of Cases 89

13.1.3 Utilisation and Maintenance

Utilisation and maintenance pattern can vary considerably within a given type of application. Standard utilisation and maintenance patterns are defined that will be used where necessary to distinguish between different cases within an application.

“Adapted” Utilisation Pattern The “adapted” utilisation pattern describes the use of coconut oil by a user (owner, operator, etc.) who is aware of the specific requirements of using coconut oil. The user pays close attention to avoid the engine running on low loads or even in idle speed as much as possible. This may in certain cases include a profound adaptation of the utilisation behaviour. “Adapted” utilisation also implies a change in maintenance procedures. Oil exchange intervals are reduced in all cases. Regular cleaning of the outside of the injection nozzles would be recommendable in all cases. Based on findings of the field research, the assumption that this procedure is carried out is only realistic in few applications, such as “urban” sea transportation, “communal” and “large-scale power generation”.29 A third aspect of the “adapted” utilisation pattern is the cautiousness applied in the case of irregularities. When a fuel filter is recognised to clog up, it is immediately exchanged, in case of obvious malfunctioning, use of the engine is stopped and support of a technician is requested.

“Business as Usual” Utilisation Pattern The “business as usual” utilisation pattern describes what was found to be the common utilisation behaviour in the RMI. Engines are used as is convenient, without paying attention to avoid idle speed running, awareness of need for preventive maintenance is not given. Assistance of a technician is only asked for when the engine stops working, irrespectively if major malfunctioning of the engine is obvious or not.

In several cases, the differentiation of the aspect of the “load on the engine” within one type of application (e.g. “urban individual land transportation”) depends primarily on what the engine is used for (e.g. a person using his car to drive over a long distance to work every day or someone who drives solely within the city). In these cases, assumptions of the standard utilisation pattern are combined with the respective best or worst purpose of use.

29 Off course it would be possible to execute this maintenance procedure in any application, but its inclusion for all cases would represent rather hypothetical cases than realistic ones. 90 13 Description of Applications and Definition of Cases

13.2 Definition of Specific Cases

Based on the outlined characteristic infrastructure of the RMI and the aforementioned considerations, representative cases within each of the potential applications in urban and rural settings will be specified with regard to engines used and utilisation pattern. Cases are defined in a way that they may serve as a role model for other Pacific Island Countries.

Expected yearly fuel consumption for the case of using diesel is calculated on the basis of the assumptions made. To illustrate the expected load pattern on the engine considered in each case, a typical daily load curve is presented.

13.2.1 Urban Applications

13.2.1.1 Individual Land Transportation

In contrast to industrialised countries, where almost exclusively direct injection engines are used, indirect injection engines account for a considerable percentage of engines used in cars in the RMI. Most important factor for the load pattern of a car engine is the purpose that the car is used for. Cars are therefore differentiated between those used by “long distance commuters” and those used by “city users”. Within this application, four cases will be analysed, including two cases (case 2 and 4) that represent the best and worst case of the in practice prevailing “plug and play” approach.

Case 1) Adapted car (IDI), “long distance commuter”

This case represents a small pick-up truck that is used to commute twice a day over a distance of 30 km. This could for example portray the use by a person living along the western part of the main island and working in the town centre. The engine is an adapted indirect injection engine, does not feature a Lucas/CAV injection pump, and the owner follows an “adapted” utilisation pattern. Total amount of fuel used in this case is 1,260 litres of diesel per year.

Case 2) Non-adapted car (IDI), “long distance commuter”

This case represents the best case of a “plug and play” approach. The engine is an indirect injection engine and utilisation pattern is the same as in case 1. Yet the car (pick- up truck) is not adapted and type of injection pump used is not verified before use of coconut oil. 13 Description of Applications and Definition of Cases 91

Case 3) Adapted car (IDI), “city user”

The same, adapted car is considered as in case 1. Yet in this case, the car is used primarily inside of the town centre and the owner applies a “business as usual” utilisation pattern. Average distance covered per day is 35 km and yearly fuel consumption is calculated as 788 litres.

Case 4) Non-adapted, direct injection (DI) car, “city user”

This case represents the worst case of a “plug and play” approach. Coconut oil is used in a car with a direct injection engine, without any adaptations made. Type of injection pump is not verified and the user follows a “business as usual” utilisation pattern. The car is used for the same purpose and frequency as in case 3; fuel consumption is 10 % lower (709 litres) due to the more efficient engine design.

Estimated, typical daily load curves for the cases 1 to 4 are shown in Figure 13.1.

Individual Land Transportation – Case 1 & Case 2 100%

50% % Load 0% Individual Land Transportation – Case 3 & Case 4 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.1: Load pattern - individual land transportation

13.2.1.2 Professional Land Transportation in Urban Areas

Engines used in “professional land transportation” are similar to those in “individual land transportation”, only that they are on average slightly larger. The different purpose of use leads to considerably longer distances covered per day and higher loads on the engine, due to larger weights carried. A major source of risk is to be seen in extended periods of idle running that can occur (e.g. if the car is being un- or uploaded) and lack of caution in case of irregularities. Two cases will be analysed:

Case 1) Adapted small truck (IDI), “adapted utilisation”

An adapted, indirect injection small truck (e.g. a Canter truck) is used to transport goods between the harbour, a warehouse and stores along the island. An “adapted” utilisation pattern is followed and a total distance of 120 km is covered per day; yearly fuel consumption is 3,240 litres. 92 13 Description of Applications and Definition of Cases

Case 2) Adapted small truck (IDI), “business as usual”

The same case is represented as in case 1, only that the operator follows the “business as usual” utilisation pattern, including substantial amounts of idle running. Due to additional periods of idle running, yearly fuel consumption is slightly increased to 3,375 litres.

Estimated daily load curves for both cases are presented in Figure 13.2.

Professional Land Transportation – Case 1 100%

50% % Load 0%

Professional Land Transportation – Case 2 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.2: Load pattern - professional land transportation

13.2.1.3 Heavy-Duty Machinery

The fleet of vehicles used in both transportation and construction varies widely but older models are predominant. Engines feature larger cylinder volumes and lower rated speeds than those used in cars, both rotary and inline injection pumps are used. Again, load pattern depends on both what the engine is used for and how it is used. In most cases, designated use of the engine demands high loads. Yet again, major risk is involved in long times of idle speed operation (e.g. in a lunch break). Due to the type of work environment, this appears more probable in the construction sector more than in transportation.

1) Adapted engine (IDI) used for transportation, “adapted utilisation”

This case represents a large truck with an adapted, indirect injection engine used for the transportation of heavy goods from the airport to the town centre. A distance of 25 km is covered 6 times per day, leading to a yearly fuel consumption of 15,750 litres. It is assumed that the operator follows an “adapted” utilisation pattern

2) Adapted engine (IDI) used for construction, “business as usual”

In this case, a piece of heavy-duty machinery is used for construction purposes. The engine is an indirect injection engine and adaptation technology is applied; yet the utilisation pattern is “business as usual”. Yearly fuel consumption is 10,080 litres. 13 Description of Applications and Definition of Cases 93

Figure 13.3 exhibits assumed daily load curves for the two cases. It needs to be stressed that in certain cases of machinery used for construction, utilisation and load pattern may be similar to that presented in the case “transportation”. Technical and financial consequences in such cases would consequently be similar.

Heavy Duty – Case 1 „Transportation“ 100%

50% % Load 0%

Heavy Duty – Case 2 „Construction“ 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.3: Load pattern - heavy duty machinery in urban areas

13.2.1.4 Sea Transportation

No detailed information is available on the types of engines used in the ships of the RMI. Data gathered on both technical and financial aspects of using ship engines on coconut oil has remained very limited; the analysis of this application will therefore be restricted to only one general case.

The case analysed supposes an adapted 400 kW engine. The engine is direct injection but features a large cylinder volume. An on board mechanic is available to take care of the engine and utilisation and maintenance pattern are “adapted” to the use of coconut oil. The ship is used to do 25 return trips a year, with each one way trip lasting 10 hours. Yearly fuel consumption is 52,500 litres. A representative daily load curve is shown in Figure 13.4.

„Urban“ Sea Transportation 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2

Figure 13.4: Load pattern - "urban" sea transportation

94 13 Description of Applications and Definition of Cases

13.2.1.5 Large-Scale Power Generation

All engines used for power generation in Majuro are engines designed for heavy fuel oil and are therefore generally well suited for the use of coconut oil. The minimum electricity demand of 8 MW during off-peak times in Majuro allows for a flexible load management on each individual engine. Based on discussions with the management of MEC and for purpose of transferability to other Pacific Island Countries, three cases will be analysed. In all cases, maintenance conditions are very favourable, due to the stationary operation and availability of dedicated maintenance technicians.

Case 1) New, 4 MW vegetable oil engine

This option represents the possibility of including the use of coconut oil in the planning of a future power plant refurbishment project. It is assumed that a 4 MW engine with its warranty including the use of coconut oil is purchased, together with an appropriate fuel pre-treatment system. In such a case, need for precautionary maintenance would be limited. It is assumed that the engine is used for 6,000 hours per year30 with an average load of 70 %, yielding an expected fuel consumption of 4.2 million litres of diesel. If coconut oil is used, this translates into approximately 4,300 metric tons, which is approximately 100 % of the coconut oil production of the RMI.

Case 2) Old, 2.5 MW HFO engine, 100 % coconut oil

This case assumes that 100 % coconut oil is used in one of the Pielstick 10PC2V engines. These engines have a rated power output of 2.5 MW (downgraded from 3.2 MW) and run at a very low speed of only 450 rpm. They were installed in 1981 and initially run on HFO, but have been used on diesel only in the last years. Because the fuel pre-treatment system for HFO is not functional any more, additional filtration equipment and an additional fuel tank would need to be purchased. Because no warranty is available, precautionary maintenance procedures are assumed to be carried out. During 6,000 running hours at an average load of 80 %, fuel consumption would be 3.6 million litres diesel per year,31 or approximately 3,700 metric tons of coconut oil.

Case 3) Old, 2.5 MW HFO engine, 20 % coconut oil

This case assumes that the same engine as in case 2 is used, yet on a blend of only 20 % coconut oil with 80 % diesel. This may also be an experimental start for a later switch to 100 %. In this case, an additional fuel tank, filtration equipment and mixing equipment are added. Precautionary maintenance is expected to be carried out as well.

30 Typical running hours for such generators used in Europe are 8,000 hours [GEH06]

31 Specific fuel consumption is estimated 20 % higher than for the new generator 13 Description of Applications and Definition of Cases 95

At 6,000 running hours per year, the amount of diesel fuel replaced would be approximately 0.72 million litres or approximately 740 metric tons of coconut oil per year.

An estimated typical load curve for an individual engine used to supply the baseload within the power plant in Majuro is shown in Figure 13.5.

Large Scale Power Generation Case 1 - 3 100% 50%

% Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.5: Load pattern - large-scale power generation

13.2.2 Rural Applications

13.2.2.1 Rural Land Transportation

Vehicles used for land transportation in rural areas are the same as those used in urban areas. Due to the small environment, possible distances covered are highly restricted. Only one case will be considered, representing an adapted, indirect injection pick-up truck that is used with a “business as usual” utilisation pattern. Based on experiences from field visits, a differentiation with regard to maintenance behaviour appears not reasonable. The assumption that regular oil exchange intervals are followed seams already very optimistic. The car considered is used several times a day to drive within a very limited area. Average daily distance covered is 12 km, leading to a yearly fuel consumption of 372 litres. Because use of a two-tank adaptation system would in fact prevent the use of coconut oil (by the time the fuel supply switches to coconut oil it would already be time to switch back to diesel fuel), use of a one-tank adaptation system will be assumed. A typical, estimated daily load curve is depicted in Figure 13.6.

Rural Land Transportation 100%

50% % Load 0%

Figure 13.6: Load pattern - rural land transportation

13.2.2.2 Rural Heavy-Duty

The case analysed for rural heavy-duty will not represent the exceptional case of the small equipment used for teaching purposes in Wotje but a more representative case for the Pacific Island Countries: 96 13 Description of Applications and Definition of Cases

It is assumed that a small tractor is used to pull a trolley in order to collect coconuts (or any other crops). An adapted, modern indirect injection engine of 12 kW is used.32 It is used on two days a week for 4 hours. Yearly fuel consumption is calculated as 384 litres. Conditions of maintenance are equal to the case of rural land transportation and again a one-tank adaptation system is used. Figure 13.7 shows an estimated daily load curve.

Rural Heavy Duty 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.7: Load pattern - rural heavy duty

13.2.2.3 Rural Sea Transportation

As a representative case for “rural” sea transportation, use of coconut oil in a “BumBum” boat will be examined. It is assumed that a 2YM15, indirect injection Yanmar engine is used, adapted with a two-tank system. Such engines have a rated power output of 10 kW at 3,600 rpm. It is assumed that one return trip with two hours for each way is done per day, leading to a yearly fuel consumption of 3,494 litres. Boats used for local sea transportation are commonly operated and maintained by the owner and are the only source of income. Hence, assuming an “adapted” utilisation pattern appears reasonable in this application. A typical daily load curve is shown in Figure 13.8.

Rural Sea Transportation 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.8: Load pattern - "rural" sea transportation

13.2.2.4 Community Power Generation

Using Coconut Oil in New Power Supply Systems For future electrification projects, in the RMI as well as in other countries in the Pacific, especially adapted, indirect injection engines, such as the 29 kW Deutz F4L912W could be used. Cylinder volume of this engine is almost twice as large as of the engine used for sea

32 If an “historical” engine would be used, technical and financial implications would be similar to those described below under “historical” engines used in “individual power generation”. 13 Description of Applications and Definition of Cases 97

transportation (1.02 l compared to 0.57 l); rated speed is 30 % lower (2,500 rpm as opposed to 3,600 rpm) [DEU06][YAN06]. Obviously, utilisation pattern can vary widely. Two cases of using such an engine will be analysed:

Case 1) adapted, 29 kW generator (IDI), “adapted utilisation”

This case represents the best case possible. Special care is taken to use coconut oil only on relatively high loads. This could mean reducing the amount of hours of electricity supply, leading to a more concentrated use of electricity. It could also represent the use of the engine as a module in a hybrid electricity generation system, e.g. in combination with photovoltaics and a battery bank.33 It could also imply using diesel fuel for the first one or two years until the electricity demand is sufficiently high. With regard to maintenance procedures, it is assumed that a maintenance technician visits the village once a year (every ~1,500 h) to carry out preventive maintenance (e.g. clean deposits of the injection nozzles). In the RMI, a maintenance contract with MEC would be feasible. It is assumed that the engine is used for 4 hours a day with an average load of 70 %, leading to a yearly fuel consumption of 10,366 litres. Sufficient copra to replace this amount of fuel would be available in most outer atolls (Figure 12.5 above)

Case 2) adapted, 29 kW generator (IDI), “business as usual”

In this case, the same engine as above is used, yet utilisation pattern is assumed to be the other extreme. Power is supplied for 6 hours per day and electricity demand is very low, leading to an average load on the engine of only 20 %. No special maintenance precautions are taken and little cautiousness is applied in the case of irregularities occurring. Yearly fuel consumption in this case is 5,716 litres.

Representative load patterns for the assumed cases are depicted in Figure 13.9.

Communal Power Generation – Case 1 100%

50%

% Load 0%

Communal Power Generation – Case 2 100%

50%

% Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.9: Load pattern - communal power generation (new)

33 A general experience with hybrid system has often been that after several years, only the diesel engine was operational [LLO00]. Pragmatically, such a system would be well suited for the use of coconut oil, as the most critical initial years of low electricity demand would be overcome. 98 13 Description of Applications and Definition of Cases

Using Coconut Oil in Existing Power Supply Systems Another option of using coconut oil for communal power generation would be the use in one of the existing power supply systems. It was found that none of the engines currently used on the atolls where copra is produced (Wotje, Jaluit, Rongrong) offers potential for a successful fuel switch. All engines used are direct injection and run at relatively low loads: Average load on the engines used in Wotje is approximately 34 %, on those in Jaluit 58 % and only 20 % on those used in Rongrong (all values estimated based on fuel consumption March 2005 to March 2006).

While the power stations of Wotje and Rongrong were established only in 2003, that of Jaluit was build in 1991. Hence it seems reasonable to expect that a future power plant refurbishment project would be implemented in Jaluit. Here, two Wartsila UD25L engines with a rated power output of 275 kW are used to run in turns of 200 hours each. Figure 13.10 shows the bandwidth of the daily load curve as estimated on data available from Wotje.34

Bandwidth of Daily Load Curves: Power Plant of Wotje and Jaluit 02.01.2006 - 10.01.2006

250 Wotje: Bandwith of 200 Load (documented)

150

100 Jaluit: Bandwith of Load (estimated) 50 Load on Engine [kW] Load on Engine

0 2:00 AM 2:00 AM 4:00 AM 6:00 AM 8:00 PM 2:00 PM 4:00 PM 6:00 PM 8:00 12:00 AM 12:00 AM 10:00 PM 12:00 PM 10:00

Figure 13.10: Daily load curve of Wotje and Jaluit power plants

The unusually high load factor (avg. load/ peak load) is caused by widespread use of air conditioning. Data supplied by MEC indicates that total demand for electricity consumption in Jaluit has not changed in the last 3 years.

As a third case, the option of enhancing the power plant of Jaluit with a new engine will be considered. In the required range of engine size, only direct injection engines are available and these require a constant high load [HOL06]. In regard of the load curve, use of one engine for the entire load spectrum is therefore not possible. The following case will be analysed:

34 Daily load curves were available for Wotje only. MEC reports that electricity consumption pattern in Jaluit is similar, total energy consumed is approximately 70 % higher. 13 Description of Applications and Definition of Cases 99

Case 3) adapted, direct injection (DI) engine 200 kW, “adapted utilisation”

It is assumed that a new, 200 kW adapted direct injection engine is used to supply base load during up to 18 hours a day for a total of 4,000 hours per year.35 The existing engines would be used for the hours of peak electricity consumption. Based on the estimated load curve presented above, the load on this new engine would vary between 68 % and 85 %, with an average of approximately 75 %. Amount of diesel fuel replaced per year would be 180,000 litres. While copra production in recent years would not have yielded sufficient locally produced coconut oil, historical levels (Figure 12.5) show that such amounts can be easily available in Jaluit. Figure 13.11 shows an expected load curve for this case.

Communal Power Generation Case 3 – „Jaluit“ 100%

50%

% Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.11: Load curve - communal power generation (Jaluit)

13.2.2.5 Individual Power Generation

Interviews with the major suppliers of generators in Majuro revealed that so far, only generators with direct injection engines are available. Although use of such engines on coconut oil is not recommended, one case will consider the in practice applied “plug and play” approach using such engines. Small generators with indirect injection engines are available e.g. from Kubota. The following cases will be analysed:

Case 1) adapted, 7 kW generator (IDI), “adapted utilisation”

In the first case, it is assumed that an adapted Kubota Z482 engine is used with an “adapted” utilisation pattern. The original engine is a two cylinder, indirect injection engine with a rated power of 7 kW at 3,000 rpm; cylinder volume is less than half of the Deutz 912 W generator used in “communal power generation” [KUB06][DEU6]. It is assumed that it is used only when larger amounts of electricity are needed. This could be secured by a single “larger” electricity consuming device (e.g. a large air conditioner, refrigerator or icemaker) or by sharing one generator amongst several households. The engine is used for 2 hours a day at an average load of 70 %, leading to a yearly fuel consumption of 1,252 litres.

35 Obviously, other configurations would be possible as well, e.g. using one larger vegetable oil engine for peak loads only, or combining several smaller engines, etc. 100 13 Description of Applications and Definition of Cases

Case 2) adapted, 7 kW generator (IDI), “business as usual”

This case considers the use of the same engine, only that a “business as usual” utilisation pattern is assumed. This includes that the engine is used primarily to supply power for one specific electric appliance such as a washing machine or a television set whenever those are needed. Average daily use is 4 hours, with an average load of only 25 %, resulting in a yearly fuel consumption of 1,022 litres.

Case 3) Not adapted, 7 kW direct injection (DI) generator, “business as usual”

This case represents the use of a not adapted, direct injection engine, with the same utilisation behaviour applied as in case 2. Fuel Consumption is estimated 10 % lower (920 litres) due to the use of a more efficient direct injection engine. This case takes reference to the experiences made on a small tourist resort that have been described in Chapter 10.3.3.

Case 4) adapted, 7 kW “historical engine”, “adapted utilisation”

In this case, an adapted Listeroid (“historical”) engine is considered. It is assumed that an “adapted” utilisation pattern is applied.36 Fuel consumption is estimated 25 % higher (1,565 litres) than in case 1, due to the less efficient engine design.

Figure 13.2 exhibits representative load curves for the cases comprising an “adapted” and a “business as usual” utilisation pattern.

Individual Power Generation Case 1 & Case 4 100%

50% % Load 0%

Individual Power Generation Case 2 & Case 3 100%

50% % Load 0%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Figure 13.12: Load pattern - individual power generation

36 In fact, influence of both adaptation and utilisation pattern is considerably less important in this case 14 Factors Considered and Quantitative Data Available 101

14 Factors Considered and Quantitative Data Available

For all of the defined cases an attempt to quantify financial consequences of use of coconut oil will be done. Published analysis of financial consequences of using vegetable oil (Chapter 6) cannot be applied to the case of the RMI nor serve as role model for the intended evaluation. Experiences outlined above have shown that especially cost of failures need to be considered. Avoiding the quantification of such cost by assuming that a “machine failure insurance” is purchased would not mirror the reality in the RMI. Hence it is necessary to develop a methodology that takes into account the specific circumstances in the RMI as well as the technical experiences with vegetable oil and with coconut oil outlined in the previous chapters. The following cost categories will be considered:

- cost of initial investment

- cost of maintenance

- cost of repair

- cost of increased fuel consumption.

Cost of reduced engine lifetime due to increased wear will not be considered. Continuous wear of an engine depends on a variety of factors that are irrespective of the fuel used37 and no quantitative data is available on increased wear caused by using vegetable oils. It has therefore been excluded from the technical and financial analysis.38 A reduction in lifetime caused by sudden fatal engine failures is included in the category “cost of repair”.

Cost of initial investment solely depends on the price of the technology used. All other cost categories need to be based on quantitative estimations of the underlying technical effects.

Estimations of technical effects relevant for maintenance and repair require a precise categorisation and definition of the effects considered. So in a first step, the categorisation used will be specified. In a second step, quantitative data available, on which estimations can build upon will be presented. Based on these findings the technical estimations to be used in the further analysis then will be outlined in the next chapter.

37 E.g. quality of the engine, corrosive environment (humidity, salt in the air), etc.

38 In the Excel spreadsheet supplied with this thesis (Appendix 3), it is possible to include estimations on reduction in engine lifetime. 102 14 Factors Considered and Quantitative Data Available

14.1 Definition of Maintenance and Failure Categories

14.1.1 Maintenance

Due to the large variety of applications considered, a precise definition of “maintenance” and “repair” is difficult.39 Thus a pragmatic approach is used for differentiation. In financial calculations there will be no difference whether a technical implication is classified as “maintenance” or “incident of failure”; results are the same. Only the following procedures will be considered as “maintenance”:

- exchange of fuel filters

- exchange of lubricant oil and oil filters

- cleaning of the injection nozzle from the outside.

14.1.2 Failure Categories

For practical purposes the large amount of possible failures is aggregated into pragmatically defined categories. By following the technical problems with the use of vegetable oil that have been discussed in previous chapters and based on the experiences made in the RMI, seven categories of failures are defined. In order to allow for a reasonable further analysis, two criteria had to be fulfilled in categorising the incidents:

a) Parameters that influence the probability of a failure to occur have to coincide

b) Consequences of failures have to be financially similar.

The seven categories of failure that have been identified are

- deposits in the fuel supply

- minor failure of injection system

- failure of injection nozzle

- major failure of injection pump

- minor failure due to deposits

- major failure due to deposits

- major failure due to lubricant oil polymerisation.

39 For example, cleaning of the combustion chamber or replacing the injection system is carried out in regular intervals in a power plant, but would probably not be done during the lifetime of a car. 14 Factors Considered and Quantitative Data Available 103

These categories are specified below. Except for the first failure category, skilled labour is needed for identification and repair in all cases.

Deposits in the Fuel Supply (Tank and Pipes) This category encompasses the occurrence of any deposits in the fuel tank or any part of the low-pressure fuel supply system that obstruct the flow of fuel (with exclusion of the main fuel filter included under “maintenance”). Respective parts have to be emptied of fuel and cleaned. This may be an easy task at stationary applications with an external fuel tank but is more complicated with smaller, mobile applications such as cars.

Minor Failure of Injection System This category includes any failure inside the injection system that can be solved without replacing major parts. The important differentiation against the above category is that it requires skilled labour to repair this type of failure (e.g. to open up and clean an injection pump).

Failure of Injection Nozzle This category includes failures of the injection nozzle that require an exchange.

Major Failure of Injection Pump This category includes any failures of the injection pump that necessitate its replacement. Such failures can be caused by increased wear but can also appear at any time when vegetable oil is used. Injection pumps are expensive spare parts that are not readily available in any workshop and mostly have to be ordered from overseas.

Minor Failure Due to Deposits This category covers any failure that is caused by excessive formation of deposits (during or after combustion) and which does not lead to a fatal engine failure. While influencing parameters coincide, financial consequences can only roughly be estimated, as resulting need for repair can vary, depending on the location of the deposits. The list of possible consequences ranges from a cleaning of the piston rings, cylinder head, valves, over a regrinding of the valve seats to a cleaning of the exhaust muffler. In all cases, partial disassembly of the engine is required.

All failures in this category have in common that they are only recognised and repaired if attention is paid to irregularities in engine performance.

Major Failure Due to Deposit This category comprises failures that have the same origin as failures of the prior category but lead to a fatal engine failure and necessitate an exchange of the engine. This is a somewhat simplifying assumption but appears reasonable based on experiences made 104 14 Factors Considered and Quantitative Data Available

during field visits. Such major failures can be prevented in most cases if caution is applied to engine behaviour.

Major Failure Due to Lubricant Oil Polymerisation This category comprises failures that derive from a phase separation of the lubricant oil and lead to a fatal engine failure. While initial reason for this type of failure (incomplete combustion of vegetable oil) is the same as for fatal engine failures caused by deposits, important practical factors differ: A phase separation can not be recognised by irregularities of e.g. exhaust gases. On the other hand, it can be securely prevented if oil exchange intervals are reduced.

14.2 Overview of Influencing Parameters

Figure 14.1 illustrates the variable technical parameters that influence the quantitative occurrence of each type of maintenance and repair incident. These coherences are based on the description of technical coherences in Chapter 4, where the precise mechanisms of influence have been discussed. Influences of fuel qualities that are assumed to be equal in all applications (all except of acidity) are not included. The relevance of a specific parameter on the probability of a failure to occur is indicated by “+” for normal relevance, “++” for high relevance and “+++” for very high relevance.

m m e t e s t s s t t n e s y i i o l y s s s i z t s o o z n a p p o y o s e e l i e e i n t e e r c g p r d d s r c r a n n i p u e e u o o o j l l n a a u i i t t me g i h t s n a y e n p i a f e e l t c c l f a e f u u o x e e n j e h o l d d p i e R u c n f z mp l a l i e e e i x i r z u r r f n o e o i u o p u u M o l l l t r t i n i i s n n e n g t a r a a t i f o f f a l a n s o i c i c i r t t r r f i i n o r l r o c c o o a p j n e e n b e b i j j i a e e u u u l n n D M I I M M L F L C Fuel Acidity ++ ++ + Engine Direct / Indirect injection ++ ++ ++ Adapted or not adapted + ++ + ++ +++ ++ Cylinder volume & speed ++ ++ ++ Type of injection pump used ++ Tolerance to fuel quality ++ ++ ++ ++ ++ ++ Utilization & Maintenance Amount of low load operation +++ +++ ++ Nr. of cold starting incidents ++ ++++ Cautiousness of user + +++ +++ Regular oil exchanges +++ +++ Regular cleaning of inject. nozzle + + + +++

Quantity of fuel / operat. hours + + + + + + + + + +

Figure 14.1: Influencing parameters on technical effects 14 Factors Considered and Quantitative Data Available 105

14.3 Quantitative Data Available

Quantitative data that is available as a foundation for the estimations will be presented in the following. Most of this data is derived from a survey done in the RMI and from six published pieces of literature.

Quantitative Data from Literature Data published on quantitative occurrence of technical effects is only available for the use of rapeseed oil. No quantitative data is published yet on use of coconut oil. Most research works were done using a single engine in a laboratory environment, only few publications present long-term tests of more than 500 running hours.40 Only publications that cover long- term testing of more than 3 engines are considered. None of the publications surveyed has categorised technical effects according to the scheme defined above. Hence the published data had to be allocated accordingly. The following publications will be considered in detail:

[HAS05] and [HAS06a]: 111 tractors used for agriculture were analysed over a period of three years, comprising a total of 241,000 running hours. All had been adapted using “high tech” technology.

[WID01]: Experiences made with a total of 7 adapted cogeneration units used in remote cottages were surveyed, covering a total of approx. 10,000 running hours.

[THU02b]: Three cogeneration units, all professionally adapted, have been surveyed in depth over a period of 18 months, including a total of 11,000 running hours.

[EMB05]: 10 professionally adapted cars were monitored over a period of between 12 and 18 months, accumulating a total of 122,000 km.

[KOR91]: Six not adapted engines of various sizes were tested on pure rapeseed oil in a laboratory environment. Total amount of running hours was 2,100. Of these, 1,200 hours were accumulated in two large indirect injection engines, 900 in four smaller (direct and indirect injection) engines.

[MAU95]: 7 tractors used for agriculture were field tested. The tractors were not adapted but used rapeseed oil with an additive, which did not show a strong influence.

Quantitative Data from Own Research The quantitative survey done in the RMI covered a total of 46 engines that have been fuelled with coconut oil for at least one time. Most users interviewed were not aware of the number of miles driven or running hours; only the approximate length of the utilisation of coconut oil could be specified. The engines covered by the survey are grouped into “long term

40 500 running hours are the approximately amount of running hours per year of a car. 106 14 Factors Considered and Quantitative Data Available

experiences” and “short term experiences”. A list of all engines covered and summary of the survey is included in Appendix 1.

The group of “long term experiences” is made up of 7 small vehicles that were used on coconut oil for more than one year (average 1.7 years), adding to a total of 11.9 years of coconut oil use.

A second set of data represents all other engines that were used for less than one year on coconut oil. This set of “short term experiences” consists of 39 engines with an average of 3.4 month of coconut oil use, adding to a total of 11.1 years. Because not all pieces of heavy- duty equipment of the construction company PII were surveyed, inclusion of these engines would draw an overly negative picture. Hence all heavy-duty machinery used by PII has been excluded from the quantitative analysis.

14.3.1 Quantitative Data on Need for Maintenance

Exchange of Fuel Filters Of the 7 users in the group “long term experiences”, 1 reported to exchange the fuel filter every ~2 months, 3 reported to exchange it every ~3 months, 1 reported to exchange it every 6 months, and 2 owners were not aware of the frequency. Assuming a regular exchange interval of 12 months, the average interval was consequently reduced to approximately a third of the normal (28 % of the regular interval). Answers of the “short term” users ranged from “every second week” to “less than with diesel”.

These findings fit into the very unclear picture presented in the published data for rapeseed oil. For adapted engines, [THU02b] reports fuel filter exchange intervals that range from “same as normal” to “three times as often”, [EMB05] does not report any decrease in the intervals. For the case of not adapted engines, [KOR91] reports a reduction of the necessary exchange interval by a factor of three.

Lubricant Oil and Oil Filter Exchange In the RMI, all users followed the regular routines of oil exchanges. In [HAS05] the interval of oil exchanges was found to require a decrease by a factor of two or three. No information is supplied in other publications. Based on long-term experiences, suppliers of adaptation technology generally recommend to reduce the interval of oil exchanges to 50 % if vegetable oil is used [ELS06b]. 14 Factors Considered and Quantitative Data Available 107

Cleaning of the Outside of the Injection Nozzle In the RMI only in the case of a large ship engine (direct injection) this type of maintenance was executed. The necessary interval was reported to be reduced by approximately 50 %, from ~500 to ~250 running hours in this case. Only in [WID01], a necessary interval of approximately 500 h is mentioned in the case of a small indirect injection engine. Other publications do not offer quantitative information.

14.3.2 Quantitative Data on Incidents of Failures

From published results of experiences with vegetable oil, approximate numbers of accumulated running hours (or: kilometres) are available. Occurrence of failures will be presented as “number of incidents” and as “one incident every … running hours (or: kilometres)”. For data collected in the RMI, only approximate length of utilisation is available. Within each survey group, the “probability of a failure per year”, referring to each individual engine, is calculated. This percentage is calculated by dividing the number of incidents that occurred by the amount of years of coconut oil use aggregated in the respective survey group.

Given the limited size of the data pool from the survey in the RMI as well as that presented in literature, it is not claimed that the results outlined here are of any statistical relevance. Nevertheless, they are the only quantitative data available to support further estimations.

Deposits in the Fuel Supply (Tank and Pipes) The results of the survey conducted and the quantitative values available in literature with regard to this failure category are presented in Figure 14.2.

Table 14.1: Quantitative data available – deposits in the fuel supply

Deposits in the Fuel Supply

Data from RMI Nr. of Incidents / engines Probability of Failure per year "Long term experiences" 2 / 7 engines 16.8 % "Short term experiences" 3 / 39 engines 27.1 %

Data from literature Nr. of Incidents / engines one incident every [HAS05] (adapted engines) 91 / 111 engines 2,600 h [WID01] (adapted engines) 5 / 7 engines 2,200 h [THU02b] (adapted engines) 4 / 3 engines 2,800 h [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (not adapted) 0 / 6 engines (never) [MAU95] (not adapted) not reported

108 14 Factors Considered and Quantitative Data Available

Minor Failure of Injection System This category of failure was the most often cited problem encountered in the RMI and was often a reason to stop using coconut oil. According to the data available in literature, substantially fewer incidents would have been expected. The 2 incidents reported in [EMB05] are incidents of leakages in the injection pump.

Table 14.2: Quantitative data available - minor failure of injection system

Minor Failure of Injection System

Data from RMI Nr. of Incidents / engines Probability of Failure per year "Long term experiences" 3 / 7 engines 25.2 % "Short term experiences" 5 / 39 engines 45.2 %

Data from literature Nr. of Incidents / engines one incident every [HAS05]* (adapted engines) 26 / 111 engines 9,300 h [WID01] (adapted engines) 0 / 7 engines (never) [THU02b] (adapted engines) 1 / 3 engines 11,000 h [EMB05] (adapted engines) 2 / 10 engines 61,000 km [KOR91] (not adapted) 0 / 6 engines (never) [MAU95] (not adapted) not reported * only "problems with injection pump" are reported. 75% are assumed to be minor problems, 25% major problems

Failure of Injection Nozzle In the RMI, a total of 4 sets of injection nozzles had to be replaced. Due to the limited time considered, it appears save to assume that zero cases would have appeared in the same time period if diesel had been used.

Table 14.3: Quantitative data available - failure of injection nozzle

Failure of Injection Nozzle

Data from RMI Nr. of Incidents / engines Probability of Failure per year "Long term experiences" 1 / 7 engines 8.4 % "Short term experiences" 3 / 39 engines 27.1 %

Data from literature Nr. of Incidents / engines one incident every [HAS05] (adapted engines) 30 / 111 engines 8,000 h [WID01] (adapted engines) 0 / 7 engines (never) [THU02b] (adapted engines) 6 / 3 engines 1,800 h [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (not adapted) 0 / 6 engines (never) [MAU95] (not adapted) not reported

14 Factors Considered and Quantitative Data Available 109

Major Failure of Injection Pump Of the total of 4 injection pumps that were broken in the RMI, two of those in the “short term experiences” broke soon after starting to use vegetable oil. The other two had to be replaced due to increased wear caused by use of coconut oil.

Table 14.4: Quantitative data available - major failure of injection pump

Major Failure of Injection Pump

Data from RMI Nr. of Incidents / engines Probability of Failure per year "Long term experiences" 1 / 7 engines 8.4 % "Short term experiences" 3 / 39 engines 27.1 %

Data from literature Nr. of Incidents / engines one incident every [HAS05]* (adapted engines) 8 / 111 engines 30,100 h [WID01] (adapted engines) 0 / 7 engines (never) [THU02b] (adapted engines) 1 / 3 engines 11,000 h [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (not adapted) 1 / 6 engines 2,100 h [MAU95] (not adapted) not reported

* only "problems with injection pump" are reported. 75% are assumed to be minor problems, 25% major problems

Minor Failure Due to Deposit Formation In two of the incidents occurring in the group “short term experiences”, an increased counter pressure in the exhaust system was “repaired” by breaking out the catalytic converter with an iron bar. In the third case, loss of power was realised and deposits inside the combustion chamber were cleaned. The occurrence of this type of failure in the group “long term experiences” refers to the pick-up truck of Tobolar described in detail above.

Table 14.5: Quantitative data available - minor failure due to deposits

Minor Failure Due to Deposits

Data from RMI Nr. of Incidents / engines Probability of Failure per year "Long term experiences" 1 / 7 engines 8.4 % "Short term experiences" 3 / 39 engines 27.1 %

Data from literature Nr. of Incidents / engines one incident every [HAS05] (adapted engines) 17 / 111 engines 14,200 h [WID01] (adapted engines) 0 / 7 engines (never) [THU02b] (adapted engines) 1 / 3 engines 11,000 h [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (not adapted) only major failures reported [MAU95] (not adapted) only major failures reported

Major Failure Due to Deposit There were no major failures reported in the RMI that could be securely related to the use of coconut oil. The case of two small generators described above is not considered, although a causal influence on the fatal engine failures, either due to deposits or due to lubricant oil polymerisation seems probable. Of all publications were fatal engine failures are described, only in [KOR91] detailed information on the type of engine used is available; fatal engine failures occurred only in engines with small cylinder volumes. 110 14 Factors Considered and Quantitative Data Available

Table 14.6: Quantitative data available - major failure due to deposits

MajorFailure Due to Deposits

Data from RMI Nr. of Incidents / engines "Long term experiences" 0 / 7 engines "Short term experiences" ?

Data from literature Nr. of Incidents / engines one incident every [HAS05] (adapted engines) 12 / 111 engines 20,100 h [WID01] (adapted engines) 1 / 7 engines 10,800 h [THU02b] (adapted engines) 0 / 3 engines (never) [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (indirect injection engines, cylinder volume >5 litre) 0 / 2 engines (never) [KOR91] (not adapted, other engines) 1 / 4 engines 900 h [MAU95] (not adapted) 7 / 7 engines <500 h

Major Failure Due to Lubricant Oil Polymerisation In all international experiences except of [KOR91], the intervals of lubricant oil exchange had been reduced and no major failure due to polymerisation of the lubricant oil occurred.

Table 14.7: Quantitative data available - major failure due to lubricant oil polymerisation

Major Failure Due to Lubricant Oil Polymerisation

Data from RMI Nr. of Incidents / engines "Long term experiences" 0 / 7 engines "Short term experiences" ?

Data from literature Nr. of Incidents / engines one incident every [HAS05] (adapted engines) 0 / 111 engines (never) [WID01] (adapted engines) 0 / 7 engines (never) [THU02b] (adapted engines) 0 / 3 engines (never) [EMB05] (adapted engines) 0 / 10 engines (never) [KOR91] (indirect injection engines, cylinder volume >5 litre) 0 / 2 engines (never) [KOR91] (not adapted, small engines) 2 / 4 engines 450 h [MAU95] (not adapted) 0 / 7 engines (never)

14.3.3 Quantitative Data on Fuel Consumption

Since most interviewees in the RMI were not aware about the specific fuel consumption, no data could be obtained in this regard. As reference values, volumetric heating values calculated from the testing results of coconut oil will be used, Table 14.1.

Table 14.8: Volumetric heating values of coconut oil

Unit Diesel CNO Samoa CNO RMI CNO Vanuatu 1 CNO Vanuatu 2 Average

Volumetric heating value MJ/dm³ 36.12 34.67 33.25 32.49 32.42 33.21 % of diesel % 100 96.0 92.1 89.9 89.8 91.9

15 Quantitative Estimation of Technical Consequences 111

15 Quantitative Estimation of Technical Consequences

For each of the categories of technical consequences defined in the previous Chapter the data to be used in the financial calculation has to be quantified. Neither the survey done as part of this thesis, nor published literature yields reliable quantitative data. The large number of influencing factors prohibits non-ambiguous quantification. Therefore, a scenario analysis is the only possible approach to quantify the technical consequences of use of coconut oil as fuel. The advantage of the scenario analysis is that instead of assuming a specific value for each parameter, a range of values can be applied that counterbalances the inherent inaccuracy of the assumptions made.

Two scenarios will be evaluated: the “lucky” scenario, which includes all optimistic estimations (e.g. the lower estimates of probabilities of failures), and the “unlucky” scenario, that sums up all “worst case” estimations. The analysis aims at quantifying technical and financial consequences that occur when coconut oil is used instead of diesel. Therefore, use of diesel will serve as base line. Only increases in technical consequences from use of coconut oil, such as the increase in the probability of a failure to occur, are estimated, and not the absolute probability.

The detailed approach that is used to quantitatively estimate each of the technical consequences is presented below. These estimations will then be used to calculate financial consequences.

15.1 Estimation of Extra Maintenance

Exchange of Fuel Filters Based on the quantitative values available, the following reductions of exchange intervals will be assumed for all cases:

For not adapted engines, fuel filters have to be exchanged 2 times (“lucky” scenario) to 3 times (“unlucky” scenario) more often than with diesel, i.e. the exchange interval is reduced to 1/2 and 1/3 of the regular interval. With adapted engines, it varies between 2/3 and 1/2 of the regular interval. Exchange intervals in the “diesel” base case are used as described in instruction manuals; values are included in Appendix 4.

Exchange of Lubricant Oil and Oil Filter The interval of lubricant oil and oil filter exchanges depends exclusively on the cautiousness of the user. In cases where a user follows an “adapted” utilisation pattern, the intervals are reduced to 50 %. In the case of a “business as usual” utilisation pattern, they are the same as when using diesel. Intervals for the diesel case are again used from instruction manuals. 112 15 Quantitative Estimation of Technical Consequences

Cleaning of the Injection Nozzles It is assumed that this maintenance procedure will not be done as a regular preventive measure in any of the “small” urban applications. In the applications of “sea transportation” and “large-scale power generation” it is done twice as often as when diesel is used. For rural applications, only in the “community power generation” it appears feasible to arrange for such a preventive measure. For the cases with an “adapted” utilisation pattern, it is assumed that a maintenance technician visits the village once a year to carry out this activity.

15.2 Estimation of Probability of Failures

Probabilities of the occurrence of the seven categories of failures have to be estimated for each of the cases of the different applications defined in Chapter 13. For each case, two estimations are made on each failure category: a pessimistic “unlucky” and an optimistic “lucky” one. In each scenario, the probability of a failure to occur within a certain time is estimated. Failures that can appear already with the use of only one tank of coconut oil are estimated on a yearly basis. Failures that occur primarily after a longer use are estimated on a five-year basis.

A general assumption made is that all engines are immediately repaired or replaced in case of a failure and continued to be used on coconut oil. This implies that failures can occur more than once in the considered timeframe and the probability of a failure can exceed 100 %. It needs to be stressed that all estimations made estimate only the increase in probability.

All estimations base on an in-depth analysis of all relevant influencing technical parameters within each case and coherences between these parameters and failures occurring (described in Chapter 4). Quantitative values serve as points of reference. Fuel qualities of coconut oil are generally assumed to be equal to those of rapeseed oil, with the only differentiation as described above (Chapter 13).

An example is outlined to exemplify such estimation. Figure 15.1 exhibits the probabilities of failures estimated in the application “urban professional land transportation”. Two sets of estimations will be explained in detail in order to elucidate the approach chosen. 15 Quantitative Estimation of Technical Consequences 113

Table 15.1: Example of estimated probabilities of failures

k k

c c

u u r r " " t t l n l l a l l Estimated o i a a u t s a m m u s Probabilitites s s i

, l , s i d ) d ) I t I a

e e u t t D D s I I p p s ( d (

a a e e t Professional Land d d n i a p a s a ) ) u Transportation 1 d 2 b a " e " e

s s

a a

C C lucky unlucky lucky unlucky Deposits in fuel supply 10% 40% 10% 40% (per year) Minor failure of injection system 10% 25% 10% 25% (per year) Failure of injector nozzle 15% 30% 15% 30% (per year) Major failure of injection pump 20% 50% 25% 55% (per 5 years) Minor failure due to deposits 20% 40% 0% 0% (per 5 years) Major failure due to deposits 0% 10% 60% 100% (per 5 years) Major failure due to lube oil 0% 0% 30% 80% polymerisation (per 5 years)

In both cases analysed, small trucks with adapted, indirect injection engines are used. In case 1 an “adapted” utilisation pattern is applied. In case 2 a “business as usual” pattern is applied, including a high amount of low load operation. In both cases analysed, estimated running hours per year accumulate to approximately 800 hours.41

Estimation of the probability for “deposits in fuel supply (per year)” can rely strongly on the quantitative data available: Experiences made in the RMI indicate a probability of this type of failure to occur per year of 16.8 % or 27.1 % in the two different survey groups (not adapted engines). Quantitative data from literature yields the values “never”, “every 2,800 h”, “every 2,600 h” and “every 2,200 h” (adapted engines). Using the estimate of 800 running hours, those quantitative reference values translate into yearly probabilities of 29 %, 31 % and 36 %.

Utilisation and maintenance pattern has no influence on this failure; total amount of fuel consumed is roughly similar in both cases. Estimated probabilities are therefore equal and range from 10 % to 40 %.

Estimation of the “probability of major failure due to deposits (per five years)” cannot so much rely on the quantitative data available. Experiences from the RMI can only be considered

41 Total distance covered is approximately 36,000 km, if an average speed in Majuro of 45 km/h is estimated (and differences caused by additional low load operation in case 2 are neglected) this translates into 800 running hours 114 15 Quantitative Estimation of Technical Consequences

qualitatively, as long-term experiences remain very limited. Quantitative reference values from literature are far less extensive and more difficult to apply in this case. In [HAS05], 12 of 107 engines used have experienced such a major failure, in [KOR91] one out of 6 engines and in [MAU95] 7 of 7 engines. In [EMB05] and [THU02b] no such failures occurred.

Amount of low load operation, which is considerably high in case 2 is the most important original factor in regard of this type of failure. The “cautiousness of the user” that is assumed only in case 1, furthermore prevents a “minor problem due to deposits” to become a major one in most cases. Estimations of probabilities of this failure to occur within five years range therefore between 0 % and 10 % in case 1 and from 60 % to 100 % in case 2.

All other estimations are done accordingly; all estimated values are listed in Appendix 2.

It needs to be stressed that such general estimations can only be a first attempt to estimate the quantitative occurrence of problems. The spreadsheet supplied with this thesis (Appendix 3) will allow adjusting estimations of specific probabilities of failures when additional information is available.

15.3 Estimation of Fuel Consumption

Experiences with using vegetable oil allow no precise prediction on fuel consumption. For small engines, various factors can have increasing or decreasing influence. Based on the average heating value of the samples of coconut oil tested, the following assumptions will be made: Fuel consumption in all small and mid-sized engines increases between 5 % and 10 % (“lucky” and “unlucky” scenario). In the case of engines used in “large-scale power generation,” it is expected that only the lower heating value of coconut oil has an influence. Increase in fuel consumption is expected to range from 7 % to 9 %. 16 Calculation of Financial Consequences 115

16 Calculation of Financial Consequences

The quantification of technical consequences described in the last Chapter forms the foundation for calculation of financial consequences. In the following, a detailed description of the financial calculations applied is presented.

Financial consequences are calculated for the “lucky” scenario, and the “unlucky” scenario. Consequently the results lead to a bandwidth of likely financial consequences when coconut oil is used as diesel substitute in a specific case. Again, not the total cost incurred in using an engine on coconut oil will be calculated, but only the additional, or “extra” cost when compared to the case of using diesel. All values in the financial analysis are calculated on a “per year” basis.

A detailed overview of the limitations to the financial analysis, the assumptions made and the Excel spreadsheet used for calculation is presented below. At first, the four cost categories considered are outlined:

16.1 Description of Cost Categories

Cost of Initial Investment This category includes additional investment costs that accrue when coconut oil is used instead of diesel. In some cases, this refers only to the adaptation of the engine. In other cases, this category also includes the establishment of an additional fuel supply or additional filtration system. To calculate cost of initial investment per year, initial investment cost is divided by the number of years that the engine is expected to be used (“straight-line- depreciation”). This time is assumed to be 6 years in all cases except of the case of a new power plant, where a lifetime of 10 years is assumed.

Cost of Maintenance Estimations of the maintenance intervals in the case of using diesel and coconut oil, together with the amount of running hours (or: kilometres) per year, allows the calculation of incidents in which a specific maintenance procedure is executed per year. For each type of maintenance procedure in each case, the cost incurred is estimated. Total costs for each maintenance procedure per year are calculated and summed up, for the “diesel” case as well as the “lucky” and “unlucky” coconut oil scenarios. The relevant value of “extra cost of maintenance” is calculated as the difference in maintenance costs per year between the two scenarios.

Cost of Repair in Case of Failures This category includes the “statistical” costs for failures per year. All probabilities are transformed into “probability per year”. Because only “extra” probabilities of failures are specified, no repair costs for the diesel case are considered. For each type of failure in each case, the cost incurred is estimated. Financial consequences are calculated by multiplying 116 16 Calculation of Financial Consequences

these costs with the corresponding “probability of failure per year”. The summation for the different types of repair yields the overall value of “cost of repair” in the “lucky” and the “unlucky” scenario.

Cost of Additional Fuel Used This category includes cost incurred due to increase in fuel consumption. Based on the estimation of the total amount of diesel used per year (if diesel would be used) and the increased fuel consumption when using coconut oil, the amount of additional fuel that is consumed per year is calculated for both the “lucky” and “unlucky” scenario. Only this additional quantity of fuel is multiplied with the assumed price of coconut oil that applies in the respective application.

16.2 Factors Excluded from the Financial Analysis

Indirect costs incurred, including risks in case of failures and financial costs of extended downtimes are excluded from the analysis. Inclusion of such financial impacts would result in loss of explanatory power of the quantitative values obtained.42 Obviously, a careful case-by- case analysis of indirect costs and risks involved is required wherever a fuel switch is considered.

Financial capital costs are as well not considered. It is assumed that the temporal incident of cash flows of benefits (savings on fuel) and expenditures (cost of maintenance and repair) is evenly distributed. This eliminates the need to take capital costs or interest rates into consideration. Only the temporal incident of the “cost of initial investment” can be specified. In this case, a straight-line depreciation is assumed as described above. These assumptions are sufficiently correct in the case of private users. In cases where investment costs are substantial (e.g. large-scale power generation), a closer consideration of financial capital costs would be additionally required.

42 This would lead to questions such as “how much is the loss of access to electricity worth per day to a community of a remote island?” or “what are the indirect costs of an outer atoll not being connected to Majuro in the case of a failure of a boat?” 16 Calculation of Financial Consequences 117

16.3 Data Used to Quantify Costs

As sources of financial data, information obtained during a field visit to the RMI and information obtained from suppliers of technology is used. In various cases, assumptions and estimations had to be made. A general overview of data used and assumptions made is given below. All values are listed in detail in Appendix 4, with a reference to the source and specific comments as applicable. All prices considered and exchange rates applied are used from 31.03.2006, large values are rounded off to 100 USD.

Some values, especially those involving cost of labour, are specific to the RMI. Most values, such as costs for spare parts, depend primarily on prices of international manufacturers. While prices may vary across the Pacific Island Countries, it appears save to assume that variations between countries are small enough for the analysis to remain its validity for the whole region.

Obviously, general assumptions can only approximately represent the individual case. This limitation needs to be kept in mind when interpreting the results. The Excel spreadsheet that is supplied with this thesis will allow a “personalised” analysis of specific cases.

Costs of Initial Investment Because so far, no adaptation technology or modified engines are used in the RMI, all data used in “cost of initial investment” is based on international prices, with additional cost assumed for transportation. Where especially adapted engines are purchased, only additional cost, as opposed to purchasing an equal engine to be used on diesel, is considered. Costs of adaptation technology are used as listed in the online shop of the Elsbett Company [ELS06c], with 25 % added for shipping.

Where extra storage capacity and extra security filtration systems are required, storage facilities are assumed to be designed for 30-day period, costs from [WWG06] are used with an additional 100 % estimated for shipping. 43 For tanks larger than 50,000 litres, the estimation of ~0.25USD/l (a value reported from practitioners in the RMI) is used. Where a large, elaborated fuel pre-treatment system is purchased (case 1 of large-scale power generation), cost are estimated at 100 USD per kW installed, based on an approximation of the supplier of such technology [NEU06].

Costs of Maintenance and Repair To obtain data for applicable prices, a large number of interviews were conducted in the RMI with managers and employees of workshops, import businesses, private companies and with MEC, as well as owners and operators of all types of diesel engines. In several cases, international suppliers of the respective technology were consulted. For each type of incident

43 Storage facilities are bulky goods that incur higher costs for shipment than small adaptation sets. 118 16 Calculation of Financial Consequences

in each case, “cost of spare part” and “cost of labour” were estimated and, where applicable, additional “cost of travel of a technician” or “transportation of the engine”. Obviously, such prices can vary considerably.44 While the specific definition of the cases allows appropriate assumptions, it could not be avoided to give a general answer to questions such as “how much does the replacement of a car engine cost?” or “how much does the travel of a technician to a remote island cost?”

16.4 Costs of Coconut Oil

A reasonable estimation of the price of coconut oil needs to consider both the quantity and the location of the purchase. Only the price for coconut oil sold in small and medium amounts in Majuro is available, for coconut oil sold in very large amounts and coconut oil sold in rural areas assumption have to be made. It shall be emphasised that the influence of these assumptions on the overall result is very limited: For each litre of diesel fuel replaced by coconut oil, the “extra” amount of fuel (coconut oil) used is maximal 10 %. The absolute value of “cost of additional fuel used” can therefore not exceed 10 % of the cost per litre coconut oil.

Price for Coconut Oil in Majuro The price for coconut oil sold at the “biofuel” station of Tobolar is 0.528 USD/l (2.00 USD/US- gallon). This price applies independently of the quantities purchased and is relevant to all urban applications except of “large-scale power generation”. In the latter case, where MEC would buy up to 100 % of the total production of the oil mill, a closer look at the expected price is necessary.

It is assumed that the price paid would be equal to the opportunity costs for coconut oil to Tobolar,45 which is the price paid “Free on Board” (FOB) in Majuro. Figure 16.1 shows this price of the last five years, the “Cost Insurance Freight” (CIF) price for coconut oil in Rotterdam and the difference between the two prices.

44 As an example, prices for fuel filters used in cars in the RMI were found to vary between 11.19 USD and 45.99 USD.

45 Consideration of production cost is not appropriate because coconut oil will be produced anyways. 16 Calculation of Financial Consequences 119

Opportunity Cost for Coconut Oil in the RMI

0.80 Difference 0.70

0.60

0.50 Coconut oil, 0.40 CIF Rotterdam [FAO06]

USDlitre / 0.30

0.20 0.194 Coconut oil, 0.142 0.142 0.134 0.107 0.080 FOB Majuro 0.10 [MCG05] 0.00 Jul Jul Jul Jul Jul Jul Oct Oct Oct Oct Oct Apr Apr Apr Apr Apr Apr

2001 Jan2001 Jan2002 Jan2003 Jan2004 Jan2005 Jan2006 Figure 16.1: Opportunity cost of coconut oil in the RMI

Average price difference in the last six shipments of coconut oil to the world market has been 0.133 USD/l. On 31.03.2006, world market price for coconut oil was 0.535 USD/l (575 USD/metric tonne) [FAO06]. For “large-scale power generation”, a price of 0.402 USD/l 46 is therefore assumed.

Price for Coconut Oil in Rural Areas For rural applications, the price for coconut oil is more difficult to determine. No relevant experiences with decentralised production of coconut oil as fuel exist. It is therefore difficult, if not impossible, to realistically estimate production costs. It is only feasible to use a demand- side approach to determine an upper limit for the price of coconut oil in rural areas. This approach bases on the assumption that no one would pay more for a good than for a “perfect substitute”: An almost “perfect substitute” for locally produced coconut oil is coconut oil imported from Majuro. Based on the prices in Majuro and cost of transportation and handling of fuel, estimation of cost of coconut oil as a fuel is possible.

Fuel used in villages is either bought in small village stores or measures are taken to ship fuel in drums to the village. Prices for fuels in village stores are approximately 0.264 USD/l (1 USD/US-gallon) above the respective price in Majuro. Shipment of a 208-litre fuel drum costs approximately 15 USD. 47 If another 15 USD are assumed for transportation and handling in Majuro, resulting transportation cost is 0.144 USD/l. Based on experiences from field visits, it will be assumed that if more than one drum of fuel is used per month (>2,500 litres/year), arrangements are made to ship fuel in drums. This applies to the applications of “local sea transportation” and “communal power generation”. The resulting

46 World market price (0.535 USD/l) – discount (0.133 USD/l) = 0.402 USD/l

47 Price paid on the ship “Northern Star” from Majuro to Wotje 120 16 Calculation of Financial Consequences

prices for coconut oil are 0.792 USD/l 48 and 0.672 USD/l.49 Figure 16.2 summarises the various prices for coconut oil that apply in different applications.

Prices for Coconut Oil - All Applications

1.5 Price for coconut oil 1 0.792 0.792 0.792 0.672 0.672 0.528 0.528 0.528 0.528 0.5 0.402 USD / litre

0 Gen. Power Transp. Transp. Gen. Prof. Land Prof. Indiv. Land Indiv. Generation Duty Heavy Indiv.Power Heavy Duty Sea Transp. Sea Transp. Sea Land Transp. Land Comm.Power

Urban (Majuro) Rural (Outer Islands)

Figure 16.2: Summary of prices for coconut oil in all applications

16.5 Standardisation of Financial Effects

In order to allow for a comparison of the financial consequences between different cases analysed, the additional costs resulting from use of coconut oil need to be standardised. This is done by calculating all extra costs as “extra costs per litre”. This specific cost per litre is calculated by dividing the “total extra cost per year” by the amount of fuel used in the “diesel case”.

As an example for a complete calculation, Figure 16.3 exhibits the Excel spreadsheet used to calculate the financial consequences in case 2 of “urban professional land transportation”. The underlying algorithms of the spreadsheet are presented in Appendix 3; the complete calculations of all cases are listed in Appendix 4.

48 Price at Majuro (0.528 USD/l) + retail surcharge (0.264 USD/l) = 0.792 USD/l

49 Price at Majuro (0.528 USD/l) + cost of transportation (0.144 USD/l) = 0.672 USD/l 16 Calculation of Financial Consequences 121

Application: Urban Professional Land Transportation Use of CNO Use of Diesel Case 2) adapted small truck (IDI), "business as usual" "lucky case" "unlucky case" Extra cost per litre [USD/l] 1.182 2.317

Total amount of diesel saved [l/year] 3375.00 3375.00 Total extra expenditure for CNO use [USD/year] 3,990 7,821

Total fuel consumption per year [l/year] 3,544 3,713 3,375 km or running hours per year [km/year] [h/year] 37500 37500 37,500 km Fuel consumption [l/km], [l/h] 0.09 0.09 0.09 l/km Total other cost per year [USD/y] 4,215 8,046 225 Cost for additional fuel (CNO) needed [USD/y] 89 178 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 250 275 225 Cost for engine oil + filter exchange per year [USD/y] 175 175 175 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 15,000 15,000 15,000 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 Labour [USD] 20 20 20 Cost for fuel filter changes per year [USD/y] 75 100 50 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 Labour [USD] 15 15 15 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 3,643 7,360 Cost for cleaning of fuel supply system per year [USD/y] 20 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 40% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 Costs due to failure of injector nozzle per year [USD/y] 83 165 Repair done: Exchange injector Probability of incident per year: 15% 30% Costs: Total [USD] 550 550 Spare part [USD] 400 400 Labour [USD] 150 150 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 35 88 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 10% 25% Costs: Total [USD] 350 350 Spare part [USD] 50 50 Labour [USD] 300 300 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 85 187 Repair done: Replace injection pump Probability of incident per year: 5% 11% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 Labour [USD] 200 200 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,950 1,950 Spare part [USD] 150 150 Labour [USD] 1,800 1,800 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 2,280 3,800 Repair done: Replace engine Probability of incident per year: 12% 20% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 Labour [USD] 1,000 1,000 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 1,140 3,040 Repair done: Replace engine Probability of incident per year: 6% 16% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 Labour [USD] 1,000 1,000 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Figure 16.3: Example of calculation of "extra cost per litre" 122 16 Calculation of Financial Consequences

In the presentation of the results, the “extra cost per litre” will be presented as a sum of the various cost categories outlined above. To allow for a better understanding of the major cost drivers, the category “cost of repair” is furthermore subdivided into the categories

- “repair – engine replacement” (incorporating only the spare part cost of a new engine)

- “repair – travel & transport” (including only costs for shipping of engines and travelling of technicians in case of a failure in rural areas )

- “repair – other” (including all other cost of repair)

To illustrate the methodology used, results of the calculations from the application “professional land transportation” are exhibited in Figure 16.4. For each case, the “extra cost per litre” is calculated and presented for the “lucky” and the “unlucky” scenario. All numerical results of the calculations are listed in Appendix 5. Important findings on the quantitative analysis will be highlighted in the discussion of the results.

Extra Cost per Litre - Professional Land Transportation

2.5 2.32 Repair - travel & transport 2.0 Repair - engine replacement

1.5 Repair - other 1.18

1.0 Maintenance USD / litre USD

0.51 Additional fuel consumption 0.5 0.25 Initial investment

0.0 lucky unlucky lucky unlucky Case 1 - Case 2 - adapted IDI; adapted IDI; "adapted "business as utilisation" usual"

Figure 16.4: Example of results - "extra cost per litre"

To facilitate the comparison of the best cases of each application, “extra cost per litre” in addition will be presented as a “bandwidth of extra cost per litre”. Figure 16.5 illustrates how “extra cost per litre” of the “lucky” and the “unlucky” scenario are translated into “bandwidth of extra cost per litre”. The lower limit of the bandwidth is defined by the total sum of extra cost in the “lucky” scenario; the upper limit is defined by the total extra cost of the “unlucky” scenario. 16 Calculation of Financial Consequences 123

Extra Cost per Litre "Bandwidth of Extra Cost per Litre" Professional Land Transportation Professional Land Transportation

2.5 2.5 2.32

2.0 2.0

1.5 1.5 1.18 USD / litre / USD 1.0 litre / USD 1.0

0.51 0.5 0.5 0.25

0.0 0.0 lucky unlucky lucky unlucky Case 1 - Case 2 - Case 1 - Case 2 - adapted IDI; adapted IDI; adapted IDI; adapted IDI; "adapted "business as "adapted "business as utilisation" usual" utilisation" usual"

Figure 16.5: Transformation from "extra cost per litre" to "bandwidth of extra cost per litre"

In practice a fuel switch from diesel to coconut oil is financially attractive only where the prevailing price difference between the fuels exceeds the extra cost per litre. The bandwidth of extra cost per litre allows therefore an assessment, at which price difference the use of coconut oil becomes financially attractive in each of the applications analysed.

Cost of diesel does not have an influence on the results. This is a main advantage of the approach. Of all relevant costs, price for diesel is without doubt the most volatile, fluctuating largely not only over time (e.g. due to global political developments) but as well varying strongly between different countries of the pacific and even within countries.

Results obtained can therefore not only be applied to the case of the RMI, but can in principle be applied to similar cases in any other Pacific Island Country.

Three major limitations need to be kept in mind when interpreting the results obtained:

1. indirect costs in the case of sudden failures or extended downtimes are not included in the calculation

2. the results mirror only an average, statistical reality; no predictions of consequences for a specific user of an engine can be deduced

3. quantitative estimations can only be understood as a first attempt of quantification.

17 Quantitative Financial Results 125

17 Quantitative Financial Results

In the following, results of the financial calculations will be presented. Where appropriate, applications are discussed in parallel. For better understanding of the results, the discussion of the first two applications will be more detailed in order to highlight major findings that result from the calculations. The presentation of the results of the remaining cases then will be in less detail.

17.1 Urban Applications

17.1.1 Small Vehicles in Urban Areas

“Individual land transportation” and “professional land transportation” both represent cases of using small vehicles in urban areas. Specification of the cases considered and assumptions made have been detailed in Chapter 13. The calculated financial consequences of using coconut oil in both the “lucky” and “unlucky” scenario are presented in Figure 17.1.

Extra Cost per Litre - Small Vehicles in Urban Areas - All Cases

12 10.78 Repair - engine replacement 10 Repair - other

8 Maintenance 5.56 6 Additional fuel USD / litre 4.05 consumption 4 2.32 Initial investment 2.09 2 0.39 0.90 0.46 1.30 0.25 0.51 1.18

0 lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky Case 1 - Case 2 - Case 3 - Case 4 - Case 1 - Case 2 - adapted IDI; not adapted IDI; adapted IDI; not adapted DI adapted IDI; adapted IDI; "long distance "long distance "city user" "city user" "adapted "business as commuter" commuter" utilisation" usual"

Individual Land Transp. Professional Land Transp.

Figure 17.1: Extra cost per litre - small vehicles in urban areas (all cases)

The extra cost incurred in using coconut oil varies widely. Most striking are very high costs in the cases of the “city users” in “individual land transportation” (case 3 and 4), where a “business as usual” utilisation pattern is applied. In these cases, “cost of repair - engine replacement” is the dominant cost driver. Extra cost per litre is 2.09 to 4.05 USD/l in case 3 and 5.56 to 10.78 USD/l in case 4.

A comparative look at case 2 and case 4 of “individual land transportation” allows for a quantitative assessment of the consequences that a “plug and play” approach of using coconut oil in not adapted cars has: Users that fit in the category of case 4 (car with a direct 126 17 Quantitative Financial Results

injection engine, used primarily in the city) will, on average, face substantially higher extra cost per litre than those that rather fit in the category of case 2 (indirect injection engine, primarily used for long distances). The difference in financial consequences of this “best” and “worst” case of a “plug and play” approach is a factor of approximately 10.

High extra cost in the case 3 of “individual land transportation” emphasises that adaptation alone is not a guarantee for favourable financial consequences incurred in the use of coconut oil. High amount of low load operation and a lack of appropriate maintenance and caution lead to high risks of fatal engine failures (40 % to 80 % in five years) that make up for over 70 % of the extra cost per litre.

In “professional land transportation”, extra cost per litre is more than four times as high when using an adapted engine with a “business as usual” utilisation pattern (Case 1; 1.18-2.32 USD/l) instead of an “adapted” utilisation pattern (Case 2; 0.25-0.51 USD/l). Cost of engine replacement is the main cost driver that makes up for the difference and accounts for approx. 80 % of the cost in the “business as usual” case. Cost of maintenance is 3 to 6 times higher where an “adapted” utilisation pattern is applied (0.06-0.07 USD/l as opposed to 0.01-0.02 USD/l), but is only a minor constituent of the total extra cost. Thus the calculated quantitative financial consequences of use of coconut oil clearly highlight the importance of the utilisation and maintenance pattern.

Figure 17.2 allows a more detailed look at the cost drivers in the three cases with the lowest extra cost per litre.

Extra Cost per Litre - Small Vehicles in Urban Areas - Best Cases

1.50 Repair - engine 1.30 replacement 1.25 Repair - other 1.00 0.90 Maintenance 0.75

USD / litre 0.46 0.51 0.50 Additional fuel 0.39 consumption 0.25 0.25 Initial investment

0.00 lucky unlucky lucky unlucky lucky unlucky Case 1 - Case 2 - Case 1 - adapted IDI; not adapted IDI; "long adapted IDI; "long distance distance commuter" "adapted commuter" utilisation"

Individual Land Transp. Professional Land Transp.

Figure 17.2: Extra cost per litre - small vehicles in urban areas (best cases) 17 Quantitative Financial Results 127

Cost of repair remains a prominent cost driver, especially in the “unlucky” scenarios, yet cost of engine replacement does not dominate the results as much as in the less optimal cases.50

Extra cost per litre is the lowest in case 1 of “professional land transportation” (0.25-0.51 USD/l) and case 1 of “individual land transportation” (0.39-0.90 USD/l). In both cases, an adapted engine is used with an adapted utilisation pattern. Even under these optimal conditions cost of repair remains an important cost driver, contributing approximately 30 % (“lucky” scenario) to 60 % (“unlucky” scenario) to the total extra cost. A major difference between the two cases analysed is specific cost of initial investment (here: adaptation of the engine). While absolute costs for initial investment are identical in both cases, higher yearly fuel consumption leads to lower specific cost in the latter case (0.07 USD/l as opposed to 0.19 USD/l).

The difference in extra costs between case 1 (0.39-0.90 USD/l) and case 2 (0.46-1.30 USD/l) of “individual land transportation” exemplifies the financial effect of adaptation of the engine: costs for repair in the “not adapted” case (case 2) are considerably higher. In the “lucky” scenario, the lack of cost of initial investment leads to a similar extra cost per litre as in the case of the “adapted” engine (case 1). Yet in the “unlucky” scenario, cost of repair by far outweighs the effect of the lack of cost of initial investment and total extra cost per litre is approx. 50 % higher. Cost of “smaller” repair incidents is 60-110 % higher (0.22-0.54 USD/l) than in the “adapted” case. Because an “adapted” utilisation pattern is assumed in both cases, extra maintenance cost is high in both cases. The only difference is made up by a higher need for fuel filter exchanges in the not adapted case (case 2), which increases cost of maintenance by 0.01-0.02 USD/l.

The comparison of these two cases emphasises that financial consequences of using not adapted, indirect injection engines can be reasonably low if purpose of use (e.g. long distance travels) and utilisation pattern are appropriate. Adapting the engine does yet reduce both incidents of failures and improves financial consequences. While not examined in detail, relative financial effects would be expectedly similar in all other “small” applications.

50 “Cost for engine replacement” emphasises the statistical nature of the results obtained. While many users would not face a need for engine replacement at all (and therefore would not face this cost per litre at all), for other users, this cost would be considerably higher than presented in the results. 128 17 Quantitative Financial Results

17.1.2 Heavy-Duty Machinery

Figure 17.3 illustrates the financial consequences of use of coconut oil in adapted engines of heavy-duty machinery in urban areas.

Extra Cost per Litre - Urban Heavy Duty

1.2 1.13 Repair - engine replacement 1.0 Repair - other

0.8 Maintenance 0.62 0.6 Additional fuel

USD / litre consumption 0.4 Initial investment 0.21 0.2 0.11

0.0 lucky unlucky lucky unlucky Case 1 - Case 2 - adapted IDI; adapted IDI; "Transportation" "Construction"

Figure 17.3: Extra cost per litre - heavy-duty machinery in urban areas

Extra cost incurred in the case “transportation” (adapted engine, “adapted” utilisation) is only 0.11-0.21 USD/l. For the case “construction” (adapted engine, “business as usual” utilisation) extra cost per litre of 0.62 to 1.13 USD/l are calculated, which are made up to 80 % by the “cost of repair – engine replacement”. The origin for this difference is both purpose of use and utilisation pattern applied.

In case of an adapted utilisation pattern (case 1), total extra cost incurred is less than half of that in the best case of small vehicles discussed above. Compared to case 1 of “professional land transportation”, specific cost of repair and maintenance are reduced by approximately 70 %. Main reason is the larger engine size, leading to higher fuel consumption and lower risk of failures. Due to the assumptions made, cost of additional fuel consumption remains equal (0.03-0.05 USD/l).

17 Quantitative Financial Results 129

17.1.3 Sea Transportation

It needs to be emphasised that calculations of financial consequences for the case of sea transportation are based on very limited technical and financial information. No international experiences with using vegetable oils in boats are documented and only little information on prices with regard to this application was available.

Figure 17.4 shows the results of the estimations. An adapted engine is used and utilisation pattern is adequately adjusted. Large engine size and large quantities of fuel consumed lead to low extra cost per litre, ranging from 0.10 to 0.21 USD/l. Specific cost of repair (0.02-0.10 USD/l) and maintenance (~0.01 USD/l) are lower than in the cases above. Specific cost of initial investment is similar (~0.05 USD/l), cost of additional fuel consumptions is equal the cases discussed above. Cost caused by the extra maintenance effort of regularly cleaning the injection nozzles does not have a relevant influence on total extra cost; the share of extra maintenance cost of total cost is less than 10 %.

Extra Cost per Litre - "Urban" Sea Transportation

0.30 Repair - engine replacement 0.25 Repair - other

0.21 Maintenance 0.20 Additional fuel consumption 0.15 Initial investment USD / litre 0.10 0.10

0.05

0.00 lucky unlucky "Urban" Sea Transportation

Figure 17.4: Extra cost per litre - "urban" sea transportation

130 17 Quantitative Financial Results

17.1.4 Large-Scale Power Generation

Figure 17.5 depicts quantitative results on large-scale power generation in urban areas. Underlying assumptions, including the exclusion of fatal engine failures, are based primarily on information supplied by engine manufacturers.

Extra Cost per Litre - Large-Scale Power Generation

0.14 Repair - other 0.12 Maintenance 0.099 0.10 Additional fuel 0.078 consumption 0.08 0.067 Initial investment 0.061 0.054 0.06 USD / litre 0.048

0.04

0.02

0.00 lucky unlucky lucky unlucky lucky unlucky Case 1 - Case 2 - Case 3 - new, 4 MW engine old, 2.5 MW engine old, 2.5 MW engine (100% CNO) (100% CNO) (20% CNO)

Figure 17.5: Extra cost per litre - large-scale power generation

Due to the very favourable technical conditions and outstanding large amounts of fuel used extra costs per litre are very low in all cases. The lowest cost per litre is 0.048-0.061 USD/l in the case of the new, 4 MW engine (case 1). Where an old, 2.5 MW HFO engine is used on 100 % of coconut oil (case 2), extra cost per litre are almost equal (0.054-0.067 USD/l). Predominant cost driver in these cases is the “cost of additional fuel consumption”, accounting for more than 50 % of total extra cost.

Cost of repair and maintenance are 0.011 USD/l or less in the case of the 4 MW engine, which is mostly caused by increased need to exchange parts of the injection system. These costs are high in absolute terms, but very low if calculated per litre of fuel. The same applies to the initial investment cost, which accounts for only 0.012 USD/l.

When using an old HFO engine on coconut oil, the main difference (compared to the new engine) are increased extra costs of maintenance. These make up 0.012 USD/l or less in the case of using 100 % coconut oil and up to 0.025 USD/l if only 20 % are used. This is primarily caused by the assumption that engine oil exchanges are carried out more frequently for cautionary purposes. In the case of a newly purchased engine with an inclusion of the use of vegetable oil in the warranty, this is not necessary. The higher specific cost of such precautionary measures, together with a higher specific cost of initial investment leads 17 Quantitative Financial Results 131

to relatively less favourable cost per litre in case of using only 20 % of coconut oil (case 3). Even in this case, overall cost per litre remains exceptionally low with 0.078 to 0.099 USD/l.

17.2 Rural Applications

17.2.1 Non-Stationary Applications

Figure 17.6 exhibits the result of calculations for non-stationary applications in rural areas. In the cases of vehicles used on land, extra cost incurred per litre is very high, ranging from 6.01 to 11.83 USD/l in the case of “land transportation” and 3.50 to 6.58 USD/l in the case of “heavy-duty machinery”. In both cases “business as usual” utilisation, including a highly adverse load pattern, causes high extra cost of repair. Predominant cost driver is the need for engine replacement.51 Cost of travel & transport contribute in these cases between 13 and 23 % of total cost. Due to the low fuel consumption, specific cost of initial investment alone accounts for more than 0.60 USD/l in both cases.

Extra Cost per Litre - Non-Stationary Applications in Rural Areas

11.83 12.0 1.0 Repair - travel & 11.0 0.9 transport 10.0 Repair - engine 0.8 9.0 replacement 0.64 8.0 0.7 Repair - other 6.58 7.0 0.6 6.01 Maintenance 6.0 0.5

USDlitre / 5.0 USD / litre / USD 0.4 Additional fuel 3.50 consumption 4.0 0.27 0.3 3.0 Initial investment 0.2 2.0 0.64 1.0 0.1 0.27 0.0 0.0 lucky unlucky lucky unlucky lucky unlucky lucky unlucky Rural Land Rural Heavy Duty Local Sea Local Sea Transportation Transportation Transportation

Figure 17.6: Extra cost per litre - not-stationary applications in rural areas

Calculation of “local sea transportation” results in a different picture. Extra cost per litre is considerably lower, ranging from 0.27 to 0.64 USD/l. Less limitations in the range of movement yield a substantially more favourable load pattern and - together with more favourable maintenance conditions - lower extra cost. Extra cost for repair (all subcategories) remains a major cost driver in both the “lucky” (0.10 USD/l) and the “unlucky”

51 Risk of fatal engine failures in the case of land transportation is estimated as 50 to 100 % in five years, that in the case of rural heavy duty 40 to 80 %. 132 17 Quantitative Financial Results

scenario (0.42 USD/l). Cost of travel of a technician alone contributes up to 25 % of total extra cost.

17.2.2 Communal Power Generation

Results from the various cases considered in communal power generation are presented in Figure 17.7. Although engine technology used in the first two cases is equal, extra costs per litre again vary substantially.

Extra Cost per Litre - Communal Power Generation

2.0 0.20 0.19 Repair - travel & 1.8 0.18 transport 1.53 1.6 0.16 Repair - engine replacement 1.4 0.14 0.12 Repair - other 1.2 0.12

1.0 0.10 0.82 Maintenance

USD / litre / USD 0.8 0.08 0.47 0.6 0.06 Additional fuel consumption 0.32 0.4 0.04 Initial investment 0.12 0.19 0.2 0.02

0.0 0.00 lucky unlucky lucky unlucky lucky unlucky lucky unlucky Case 1 - Case 2 - Case 3 - Case 3 - adapted 29 kW (IDI) adapted 29 kW (IDI) adapted 200 kW (IDI) adapted 200 kW (IDI) "adapted utilisation" "business as "adapted utilisation" "adapted utilisation" usual" (Jaluit) (Jaluit)

Figure 17.7: Extra cost per litre - communal power generation

In case 1, where sufficiently high electricity demand leads to high load on the engine and utilisation and maintenance is “adapted”, extra cost per litre is 0.32-0.47 USD/l. Main cost drivers are extra cost of initial investment (0.17 USD/l), extra cost of maintenance 52 (~0.10 USD/l) and extra cost of repair (0.02-0.11 USD/l). Even in the “unlucky” scenario, cost of “engine replacement” is very low, mirroring the low estimated extra risk of a fatal engine failure (0-20 % in five years).

In case 2, where both load pattern and maintenance pattern are considerably less favourable, extra cost per litre is substantially higher. It ranges from 0.82 USD/l in the “lucky” scenario to 1.53 USD/l in the “unlucky” scenario. The dominant cost driver in this case is “cost of engine replacement” (cumulated probability of fatal engine failures is 70 % to 170 % within five years). Due to the lower yearly fuel consumption, specific cost per litre for extra initial investment is considerably higher (0.30 USD/l) than in the first case. Less frequent lubricant oil exchanges and no regular visit of a maintenance technician causes maintenance

52 Maintenance cost include the yearly visit of a maintenance technician 17 Quantitative Financial Results 133

cost to be 3 to 6 times lower than in the first case, yet these savings do not have a positive effect on the overall result.

In the case of the addition of a 200 kW generator to an existing power plant (case 3, “Jaluit”), where the load is reliably high and maintenance conditions are favourable, extra cost per litre is very low, 0.12-0.19 USD/l. Besides additional fuel consumption (0.04-0.07 USD/l), main cost drivers are extra initial investment (0.05 USD/l), cost of maintenance (~0.3 USD/l) and cost of repair (0.01-0.03 USD/l). Within the extra cost of repair, the cost driver “other repair” makes up for the largest part of extra cost. Similar to the case of large-scale power generation in urban areas, this is primarily caused by reduced lifetime of the injection system. Again the absolute costs for such replacements are considerable, but due to large amounts of fuel consumed the extra cost per litre is very low (<0.025 USD/l).

17.2.3 Individual Power Generation

The results of calculations of the cases in individual power generation are exhibited in Figure 17.8. Again the variation of extra cost per litre is substantial.

Extra Cost per Litre - Individual Power Generation

5.0 4.66 Repair - travel & transport 4.0 Repair - engine replacement 2.88 3.0 Repair - other 2.25 Maintenance 2.0 USD / litre 1.42 Additional fuel 1.0 0.70 consumption 0.38 0.16 0.30 Initial investment 0.0 lucky unlucky lucky unlucky lucky unlucky lucky unlucky Case 1 - Case 2 - Case 3 - Case 4 - adapted 7 kW adapted 7 kW not adapted 7 kW adapted 7 kW IDI IDI DI "historical engine"

Figure 17.8: Extra cost per litre - individual power generation

The worst case is obviously represented in case 3, where a “plug and play” approach is followed and coconut oil is used in a small, direct injection engine with a “business as usual” utilisation pattern. Extra cost per litre ranges from 2.25 to 4.66 USD/l and is primarily made up by necessary engine replacements (cumulated probabilities of fatal engine failures are 220 to 450 %). 134 17 Quantitative Financial Results

The results of the two cases where an adapted, indirect injection engine is used (case 1 and 2), mirror the results of the cases 1 and 2 in “communal power generation”, only that extra costs per litre are higher. In the case of the use with a “business as usual” utilisation pattern (case 2), extra cost per litre is 1.42-2.88 USD/l. Necessary engine replacements make up for most of the cost (~70 %). The use with an “adapted” utilisation pattern yields considerably lower cost per litre of 0.38-0.70 USD/l. Due to the relatively low amounts of fuel used, extra cost of initial investment are considerably high (0.19 USD/l). Cost of repair (all subcategories) is the second largest cost driver (0.07-0.19 USD/l); extra cost of maintenance adds another 0.05-0.06 USD/l.

The “historical engine” considered in case 4 yields by far the most favourable results. Extra cost per litre are only 0.16-0.30 USD/l. Cost of initial investment (0.05 USD/l) and repair (0.02-0.06 USD/l) are considerably lower than in the cases of using “modern” engines. Main reason is the substantially higher tolerance to fuel quality that reduces risks of failures caused by the use of coconut oil. Other factors contributing to the low cost per litre are higher specific fuel consumption (reducing extra cost of initial investment) and lower cost of spare parts. This, together with the above described general differences in technology make a direct comparison with the “modern” generators difficult. 17 Quantitative Financial Results 135

17.3 Summary of Results - Extra Cost per Litre

Important findings from the calculations of financial consequences in specific cases have been highlighted in the discussion of the specific application. The quantitative results allow for important insights into the variations of extra cost per litre that exist within the applications. It also allows for a ranking of the different applications by the lowest extra cost per litre.

17.3.1 Variations within Applications

Extra costs per litre vary strongly within the applications, depending on type of engine used and utilisation pattern. These variations can by far outweigh variations between different applications. Results outlined above show the quantitative influence of the relevant technical parameters on financial consequences. The following main findings were made with regard to these influences:

- Combination of “wrong” type of engine used and “wrong” utilisation behaviour increases cost per litre by a factor of more than 10 (case 2 and 4 of “individual land transportation).

- Using the “right” engine and applying adaptation technology is no guarantee for low extra cost: “wrong” utilisation and maintenance behaviour alone increases cost per litre by a factor of more than 4 (case 1 and 2 of “professional land transportation”).

- When using the “right” engine with the “right” utilisation behaviour, financial effect of applying adaptation technology is approximately neutral in the “lucky” scenario. In the “unlucky” scenario, lack of adaptation leads to approx. 50 % higher extra cost per litre. Extra cost caused by “smaller” failures is up to 100 % higher.

- “Adaptation” of the maintenance pattern leads to several times higher maintenance cost, but this cost driver remains only a minor constituent of the total extra cost incurred.

- “Cost of travel & transport” increases extra cost per litre of applications in rural areas by up to 25 % but has no distinguishing influence on the financial result.

These main findings allow for practical conclusions if a switch to coconut oil is considered in a specific application:

- A case-by-case analysis of each individual engine considered for a fuel switch is necessary to determine if low extra cost per litre can be achieved

- Use of an “appropriate” engine and an “appropriate” purpose of use are only the first prerequisites for achieving low extra costs. Securing an “adapted” utilisation and maintenance pattern is an equally important prerequisite 136 17 Quantitative Financial Results

- If those prerequisites are fulfilled, additional investment in adaptation technology and extra maintenance efforts reduce the extra cost per litre considerably.

17.3.2 Variations between Applications

By comparing the best cases of all applications considered, it is possible to rank the applications according to the “extra cost per litre” incurred. Such a ranking is only reasonable within the urban and within the rural applications. The following results allow for assessment, at which price difference a fuel switch becomes attractive in each of the applications.53 Because all costs considered are similar in the pacific region, results are expected to be applicable to all Pacific Islands Countries.

Best Cases in Urban Areas Figure 17.9 illustrates the “bandwidth of extra cost per litre” of the best cases of all applications analysed in an urban setting. All cases represent the use of an adapted engine with an “adapted” utilisation pattern.

"Bandwidth of Extra Cost per Litre" - Best Cases of Urban Applications

1.0 0.90

0.8

0.6 0.51

USD / litre 0.4 0.39 0.21 0.21 0.2 0.25 0.06 0.11 0.10 0.0 0.05 Indiv. Land Transp. Prof. Land Transp. Heavy Duty Sea Transportation Power Generation (Case 1) (Case 1) (Case 1) (Case 1) Figure 17.9: “Bandwidth of extra cost per litre” - best cases of urban applications

The lowest and hence most attractive “bandwidth of extra cost” is calculated in the application “large-scale power generation”. Decreasing engine size (from right to left) increases risks of engine failures and, by incurring smaller amounts of fuel used, leads to higher specific cost per litre. Of the “small” engines, heavy-duty engines used in “transportation” appear especially promising, with extra cost per litre almost as low as in the case of sea transportation. Vehicles used in “professional” and “individual” land transportation incur considerably higher cost per litre.

53 It goes without saying that a several further factors can have an influence on financial effects, such as indirect costs involved, government subsidies or other incentives such as “carbon credits” etc. 17 Quantitative Financial Results 137

The results allow for a clear prioritisation of the different potential applications for use of coconut oil in urban areas of the Pacific Island Countries. This prioritisation is presented in Table 17.1. The values listed on the right indicate the necessary price difference between diesel and coconut oil to make a fuel switch financially attractive.

Table 17.1: Prioritisation of applications in urban areas

Price difference diesel - coconut oil Prioritisation of Applications - Urban Areas [USD/l] "lucky" "unlucky" 1. Large-scale power generation 0.05 0.06 2. Large boat 0.10 0.21 3. Large truck - used for transportation 0.11 0.21 4. Small truck - professional use 0.25 0.51 5. Private car - used for long distance driving 0.39 0.90

Best Cases of Rural Applications Amongst the best cases of rural applications, two cases in “communal” and “individual power generation” are considered. This is because by the definition of the respective cases, each represents a different specific option. Figure 17.10 gives an overview of the bandwidth of extra cost incurred in the best cases.

"Bandwidth of Extra Cost per Litre" - Best Cases of Rural Applications

14.0 11.83

10.0 6.58 6.0 6.01 2.0 3.50

1.0

0.8 0.64 0.70 USD / litre / USD 0.6 0.47 0.4 0.30 0.32 0.19 0.38 0.2 0.27 0.12 0.16 0.0 Land Heavy Sea Communal Communal Individ. Individ. Transport. Duty Transport. Power Gen. Power Gen. Power Gen. Power Gen. (29kW) (200kW) (modern) ("historical") Figure 17.10: “Bandwidth of extra cost per litre” - best cases of rural applications

For the applications “rural land transportation” and “rural heavy-duty”, outstanding high cost per litre are calculated. This is despite the fact that an adapted, indirect injection engine is 138 17 Quantitative Financial Results

used, yet with a “business as usual” utilisation pattern.54 In the other applications, the same general effect of an increase in extra cost per litre with decreasing engine size as found in the urban applications is present: The large 200 kW engine used for communal power generation incurs the lowest cost per litre, and the small 7 kW indirect injection engine used for individual power generation the highest extra cost per litre. The “historical” engine is an exception. Although being among the smallest engines, extra cost per litre is the second lowest.

Table 17.2 prioritises the different possible options of using coconut oil rural areas and indicates the necessary price difference to make a fuel switch financially attractive.

Table 17.2: Prioritisation of applications in rural areas

Price difference diesel - coconut oil Prioritisation of Applications - Rural Areas [USD/l] "lucky" "unlucky" 1. Community generator, 200 kW 0.12 0.19 2. Small, "historical" generator 0.16 0.30 3. Community generator, 29 kW 0.32 0.47 4. Small boat 0.27 0.64 5. Small, modern generator 0.38 0.70

Only if the price difference between the two fuels exceeds the extra cost per litre incurred, use of coconut oil is a financially attractive option. When considering a fuel switch in a specific application in a specific Pacific Island Country, this price difference needs to be determined and compared to the expected extra cost per litre. The results and the methodology presented here therefore offer a valuable tool to support further analysis of financial feasibility of using coconut oil.

In the final chapter, results of the quantitative analysis will be used to calculate the absolute values of financial consequences of the use of coconut oil in the RMI. Special consideration will be given to possible increase in price of diesel.

54 More optimistic assumptions on utilisation and maintenance pattern were found not to represent realistic cases. 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 139

18 Absolute Financial Consequences of Using Coconut Oil in the RMI

In the previous chapter, financial consequences of use of coconut oil as diesel substitute have been calculated in form of extra cost per litre. Based on these values, here the absolute financial consequences are calculated as “savings per engine per year” by utilising current prices of fuels prevailing in the RMI. Again, values are calculated for “lucky” and “unlucky” scenarios resulting in a bandwidth of potential savings or losses. 55 In addition to the calculations based on current fuel prices (31.03.2006), the case of a future increase of the price for diesel of 100 % will be considered. This case is included to allow for an outlook on the financial consequences in the case that world oil prices continue to rise. Price for coconut oil is assumed constant.

Discussion of the results will focus on cases with high practical relevance and most promising cases only. Results of less promising cases will be presented briefly to illustrate absolute financial consequences if coconut oil is used under less optimal conditions and to allow an outlook if these cases will eventually become financially attractive.

18.1 Prices for Fuels in the RMI

Prices for Diesel – Majuro In Majuro, three different prices for diesel exist. Retail price is 0.970 USD/l (3.67 USD/US-gallon) at the gas stations. This price applies for “individual land transportation”. Diesel in bulk amounts can be bought from MEC at 0.634 USD/l (2.4 USD/US-gallon). This price applies to the applications “professional land transportation”, “urban heavy-duty” and “urban sea transportation”. For use in “large-scale power generation”, the price of diesel to MEC applies. MEC imports diesel fuel directly from the refinery in South Korea, price of the last shipment to MEC (March 2006) was 0.502 USD/l (1.90 USD/US-gallon).

Prices for Diesel – Outer Islands Prices for fuels in rural areas have been discussed in Chapter 16.2.3. If less than one drum per months is used (<2,500 litre per year), price for diesel is approximately 0.264 USD/l (1 USD/US-gallon) above the price at gas stations in Majuro. For the rural applications of “land transportation”, “heavy-duty machinery” and “individual power generation”, a price of 1.234 USD/l 56 is therefore assumed. In the applications “communal power generation” and “local sea transportation”, diesel would be purchased in bulk amounts in Majuro. Price for

55 When the price difference between the fuels exceeds the “extra cost per litre” incurred in the use of coconut oil, each litre consumed yields a certain saving; otherwise each litre yields a certain loss.

56 Retail price in Majuro (0.970 USD/l) + surcharge for rural retail (0.264 USD/l) = 1.234 USD/l 140 18 Absolute Financial Consequences of Using Coconut Oil in the RMI

diesel at MEC and a transportation cost of 30 USD per 208-litre drum apply. Resulting price of diesel is 0.778 USD/l.57

In the case of the power plant in Jaluit, the situation is different: diesel fuel is bought from the oil company Mobile, which runs a tank farm on the island. Cost per litre diesel to MEC in Jaluit is 0.691 USD/l (2.617 USD/US-gallon).

Prices for coconut oil that apply in each of the applications have been presented above (Chapter 16.2.3). Figure 18.1 summarises the prices for coconut oil, diesel and the respective price difference that prevails in the various applications

Price Differences of Fuels in All Applications

1.5 Price for coconut oil

1 Price for diesel

Price difference 0.5 0.44 0.44 0.44 0.44 USD / litre USD /

0.11 0.11 0.11 0.10 0.11 0.11 0.02 0 Heavy Duty Heavy Duty Duty Heavy Transp. Sea Transp. Sea (new) (Jaluit) Land Transp. Land Indiv.Power Gen. Indiv.Power Power Generation Prof. Land Transp. Land Prof. Comm. Power Gen. Power Comm. Gen. Power Comm. Indiv. Land Transp. Land Indiv. Urban (Majuro) Rural (Outer Islands) Figure 18.1: Price difference diesel - coconut oil in all applications

In all cases, coconut oil is cheaper than diesel. Yet the price difference varies between 0.02 USD/l and 0.44 USD/l. This emphasises the importance of closely examining applicable prices for coconut oil and diesel whenever a fuel switch is intended in a specific situation.

No experiences exist with the production of coconut oil as fuel in rural areas. Via assumptions made, an upper price limit for locally produced coconut oil was determined. The case of a price increase of diesel fuel of 100 % can also be interpreted as the case that considerably lower local production cost could be achieved.

57 Bulk price in Majuro (0.634 USD/l) + transportation cost (0.144 USD/l) = 0.778 USD/l 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 141

18.2 Urban Applications in the RMI

18.2.1 Small Vehicles in Majuro

Figure 18.2 exhibits the calculated absolute financial consequences of using coconut oil in small vehicles in Majuro. For every case two bandwidths are depicted: the bar on the left represents the “savings per engine per year” at current prices, the second bar from the left represent the expected savings if price of diesel increases by 100 %.58 The lower limit of each bar results from “unlucky” assumptions, the upper limit represents the “lucky” assumptions.

Savings per Engine per Year - Small Vehicles in Urban Areas

RMI - current prices RMI - diesel price increase 100% 2,000 62 -17 -451 0 -1,299 -579 -2,000 -1,077 -3,629 -1,315 -3,632 -4,000

USD/year -2,839 -6,000 -7,324 -7,463 -8,000 Case 1 - Case 2 - Case 3 - Case 4 - Case 1 - Case 2 - adapted IDI; not adapted IDI; adapted IDI; not adapted DI adapted IDI; adapted IDI; "long distance "long distance "city user" "city user" "adapted "business as commuter" commuter" utilisation" usual" Individual Land Transp. Professional Land Transp.

Figure 18.2: Absolute financial consequences – small vehicles in urban areas

Individual Land Transportation The results for the cases 2 and 4 of “individual land transportation” allow an assessment of the financial consequences that are expected in the best and the worst case of the “plug and play” approach of using coconut oil in not adapted cars. Based on current diesel prices, users of cars with indirect injection engines, who use their car primarily to cover long distances and apply an “adapted” utilisation pattern (case 2) will on average suffer a loss of between -17 USD/y and -1,077 USD/y. Users of cars with direct injection engines, who use the car primarily inside the town centre of Majuro and apply a “business as usual” utilisation pattern (case 4), will on average suffer financial losses of between -3,629 USD/y and -324 USD/y.

58 For the purpose of conciseness, numerical values for the case of a diesel price increase of 100% are not depicted in the graph. 142 18 Absolute Financial Consequences of Using Coconut Oil in the RMI

Obviously, these two cases represent only the extremes of a variety of possible cases within a “plug and play approach”. The results do yet allow a conclusion that the “plug and play” approach that is used in RMI cannot be recommended from a financial perspective.

Cases 1 and 3 of “individual land transportation” allow an outlook on the financial consequences of using adapted, indirect injection engines. At current prices, even these cases are financially not attractive. Small savings of +62 USD/y or losses of up to -579 USD/y are expected in the case of the “long distance commuter” (case 1), considerable losses of -1,299 to -2,839 USD/y in the case of the “city user” (case 3).

If prices for diesel rise by 100 %, use of coconut oil in private cars will become attractive only for those users, who own an indirect injection car, drive primarily long distances and adapt their utilisation and maintenance pattern. Possible savings are in magnitude of 1,000 USD/y. For such users, use of adaptation technology will improve financial consequences and reduce the occurrence of failures.

Professional Land Transportation In “professional land transportation”, considerably lower prices for diesel apply, which outweigh the lower extra cost per litre. Case 1 of “professional land transportation” demonstrates the consequences that use of an adapted small truck with an indirect injection engine and an “adapted” utilisation pattern would have on average. At current prices, losses between -451 and -1,315 USD/y would be expected. If prices for diesel rise, use of coconut oil in this application can offer considerable financial benefits that are approx. 50 % higher than in case 1 of “individual land transportation”.

If the same small truck is used with a “business as usual” utilisation pattern, expected losses incurred are substantial at current prices and will remain so even if diesel prices rise by 100 %. 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 143

18.2.2 Heavy-Duty Machinery

Absolute financial consequences resulting from the use of coconut oil in the best case of “heavy-duty machinery” (adapted, indirect injection engine used for transportation) are presented on the left side of Figure 18.3.

Savings per Engine per Year - Heavy Duty Machinery 15,000 RMI - diesel price increase 100% 10,000 RMI - current prices

5,000 -27 0 -5,218 USD/year -1,711 -5,000

-10,000 -10,284 -15,000 Case 1 - Case 2 - adapted IDI; adapted IDI; "Transportation" "Construction"

Figure 18.3: Absolute financial consequences – heavy-duty machinery

Although the extra cost per litre (0.11 USD/l) is very low, at current fuel prices use of coconut oil is financially not attractive. In absolute terms a loss of -27 to -1,711 USD/y would result. However, if price of diesel rises, a fuel switch becomes financially attractive and expected savings would be considerable, in the magnitude of 10,000 USD/y.

Use of an adapted engine and a “business as usual” utilisation pattern, such as presented in the case “construction” 59 will remain financially unattractive even in case the oil price doubles.

59 In those cases (e.g. for certain types of machinery), where utilisation and maintenance pattern (including load pattern) is similar to that described in the case “transportation”, financial consequences will be similar to those of the case “transportation”. 144 18 Absolute Financial Consequences of Using Coconut Oil in the RMI

18.2.3 “Urban” Sea Transportation

The calculated absolute financial consequences of using coconut oil in ships that connect Majuro with the outer islands are presented in Figure 18.4.

Savings per Engine per Year - Sea Transportation

40,000 RMI - diesel price increase 100%

30,000 RMI - current prices

20,000

USD/year 10,000

370 0

-5,348 -10,000

Figure 18.4: Absolute financial consequences - "urban" sea transportation

Again the low price for diesel outweighs the low cost per litre incurred. At current prices, financial consequences are generally unfavourable (-5,348 to +370 USD/y). If the price for diesel rises, a large amount of money, around 30,000 USD/y, can be saved. 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 145

18.2.4 Large-Scale Power Generation

Absolute financial consequences of using coconut oil in one of the 2.5 MW Pielstick engines and of a possible future power plant refurbishment with a 4 MW engine are presented in Figure 18.5. The outstanding low cost of diesel is counterbalanced by the lower cost of coconut oil that applies.

Savings per Engine per Year - Large-Scale Power Generation

2,500,000 RMI - diesel price increase 100%

2,000,000 RMI - current prices

1,500,000

1,000,000

USD/year 219,192 500,000 166,019 15,826 0 164,714 118,085 437 -500,000 Case 1 - Case 2 - Case 3 - new engine, old engine, old engine, 4 MW 2.5 MW 2.5 MW (100%CNO) (100%CNO) (20% CNO) Figure 18.5: Absolute financial consequences - large-scale power generation

At current prices, use of coconut oil instead of diesel offers financial benefits in all cases. Blending 20 % of coconut oil in one of the Pielstick engines yields relatively small financial benefits (+437 USD/y to +15,826 USD/y). Using 100 % coconut oil in both an old or a new engine yields savings above 100,000 USD/y even in the “unlucky” scenario. If prices for diesel rise, the option of using coconut oil for power generation becomes financially very attractive, with potential savings in magnitude of 2,000,000 USD/y when 100 % coconut oil is used. 146 18 Absolute Financial Consequences of Using Coconut Oil in the RMI

18.3 Rural Applications in the RMI

18.3.1 Non-Stationary Applications in the Outer Islands

Figure 18.6 exhibits the expected savings per engine per year in the cases of rural land transportation, rural heavy-duty and local sea transportation.

Savings per Engine per Year - Non-Stationary Applications in Rural Areas

2,500 RMI - diesel price increase 100%

-556 RMI - current prices 0 -1,174 -2,073 USD/year -2,500 -2,356 -1,803

-4,238 -5,000 Rural Rural Local Land Heavy Sea Transp. Duty Transp.

Figure 18.6: Absolute financial consequences - non-stationary applications in rural areas

Obviously, the cases analysed for land transportation and heavy-duty offer no potential for financial savings, even if prices of diesel rise by up to 100 %.

Financial consequences of using coconut oil for local sea transportation are negative at current prices. If prices of diesel continue to rise, use of coconut oil in adapted, indirect injection engines used for local sea transportation yields financial savings in magnitude of 1,000 USD/y. 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 147

18.3.2 Communal Power Generation

The expected absolute financial consequences of using coconut oil in new to establish communal power generation plants are depicted on the left hand side of Figure 18.7. At current prices and with the assumptions made on the prices for fuels, use of coconut oil financially is not an attractive option, even in the best case. Even if both the engine and the utilisation behaviour are adapted (case 1), the low price for diesel (bought in bulk in Majuro) outweighs the low extra cost per litre and losses range from -2,219 to -3,753 USD/y.60 If only the engine but not the utilisation pattern is adapted (case 2), expected financial losses range from -4,054 to -8,165 USD/y.

Savings per Engine per Year - Communal Power Generation

RMI - current prices RMI - diesel price increase 100%

10,000 200,000

150,000 5,000

100,000 0 -2,219

USD/year 50,000 USD/year -4,054

-5,000 -2,432 -3,753 0

-8,165 -14,699 -10,000 -50,000 Case 1 - Case 2 - Case 3 - 29 kW (IDI) 29 kW (IDI) 200 kW (DI) "adapted "business "adapted utilisation" as usual" utilisation"

New electrification project Refurbishment of Jaluit power plant

Figure 18.7: Absolute financial consequences - communal power generation

If the applicable price difference rises, use of coconut oil in such “small” communal power generating systems offers the potential for financial savings in magnitude of 5,000 USD/y. Use of an appropriate engine with a not adapted utilisation and maintenance pattern will remain financially unattractive.

Financial consequences of enhancing the power plant of Jaluit with a 200 kW coconut oil generator are presented on the right hand side of Figure 18.7. The very low extra cost per litre is again outweighed by the low cost of diesel that prevails. If prices for diesel rise, this

60 In case diesel is assumed to be purchased for the retail price in Majuro, use of coconut oil in case 1 would be in fact a financially attractive option at current prices. However, such an assumption is not realistic. 148 18 Absolute Financial Consequences of Using Coconut Oil in the RMI

option offers the potential for substantial savings. Due to the large quantities of fuel used, financial benefits would be considerably large, in magnitude of 130,000 USD/y.

18.3.3 Individual Power Generation

Absolute financial consequences of use of coconut oil in small generators in remote areas are presented in Figure 18.8.

Savings per Engine per Year - Individual Power Generation

RMI - diesel price increase 100% 2,000 RMI - current prices 441 79 0 -1,002 224 -318 -1,662 USD/year -2,000 -2,495 -3,876 -4,000 Case 1 - Case 2 - Case 3 - Case 4 - adapted 7 kW adapted 7 kW not adapted, 7 kW adapted 7 kW IDI IDI DI "historical engine" "adapted "business as "business as "adapted utilisation" usual" usual" utilisation" Figure 18.8: Absolute financial consequences - individual power generation

At current prices, only the use of “historical” engines (case 4) on coconut oil promises “secure” financial savings, ranging between +224 and +441 USD/y. If diesel prices rise by 100 %, possible savings rise to above 2,000 USD/y.

In the case of the adapted, indirect injection generator with an adapted utilisation pattern (case 1), small savings of +79 USD/y are possible in a “lucky” scenario, but losses of -318 USD/y result in the “unlucky” scenario. This case becomes attractive if diesel prices increase, with possible savings of up to 1,500 USD/y.

Use of coconut oil in small, modern generators without an adaptation of the utilisation behaviour incurs high losses at current prices and will remain financially unattractive even with doubled diesel prices. 18 Absolute Financial Consequences of Using Coconut Oil in the RMI 149

18.4 Summary of Results – Absolute Financial Consequences

Based on current prices for diesel and coconut oil, only two applications in the RMI offer financial incentives for switching fuel in both the “lucky” and “unlucky” scenarios:

- Using coconut oil for power generation in Majuro

- Using coconut oil in “historical” engines in the outer islands

Absolute financial consequences of using coconut oil in the RMI at current fuel prices for the best cases within each application are summarised in Table 18.1:

Table 18.1: Summary of absolute financial consequences - best cases

Majuro - Savings per year [USD/y] "lucky" "unlucky" Large-scale power generation +219,000 +165,000 Large boat -600 -1,800 Large truck - used for transportation -30 -1,710 Small truck (professional use) -450 -1,320 Private car - used for long distance driving +60 -580

Outer Islands - Savings per year [USD/y] "lucky" "unlucky" Community generator (200 kW) -2,400 -14,700 Small, "historical" generator (7 kW) +440 +220 Community generator (29 kW) -4,050 -8,170 Small boat -560 -1,800 Small, modern generator (7 kW) +80 -320

Further findings of the calculations outlined above are

- Low prices for diesel prevent possible savings in several applications where extra cost per litre is very low

- The currently used “plug and play” approach of using coconut oil in cars can not be recommended, even in the best case considered.

- Use of coconut oil with a “business as usual” utilisation pattern will remain financially unattractive in any of the cases analysed, even if diesel prices rise by 100 %

If diesel prices rise, use of coconut oil will become financially attractive in all applications provided the right engine is used and the utilisation and maintenance pattern is “adapted”. Necessary price differences have been discussed above. These results underline that specific fuel prices always have to be closely considered when evaluating a potential fuel switch.

19 Recommendations for Promoting the Use of Coconut Oil in the RMI 151

19 Recommendations for Promoting the Use of Coconut Oil in the RMI

Besides offering potential for financial savings in an individual case, use of coconut oil as a fuel in the RMI is considered as beneficial in social and economic terms. The findings made in this thesis allow giving recommendations for further endeavours to promote the use of straight coconut oil as a diesel substitute in the RMI.

It needs to be emphasised that production of biodiesel from coconut oil has not been examined in this research work, and although possibly offering at least equal opportunities, will not be considered.

Use of Coconut Oil in Majuro

1st Priority: Large-Scale Power Generation It is recommended that highest priority is given to do a more in-depths analysis of using coconut oil in the power plant of Majuro. Results of the analysis indicate that most of the coconut oil production of the RMI could be used in this application with positive financial and economic outcomes. Expected developments of world market prices for both coconut oil and diesel need to be in the focus of attention. A switch back from coconut oil to diesel technically is possible at any time. Hence, financial risks in case of “adverse” developments in world market prices are limited to the initial investment cost only.

2nd Priority: Large and Small Trucks Use of coconut oil for professional purposes in both small and large trucks will become a promising application if diesel prices rise. Selected engines of heavy-duty equipment used for construction (where purpose of use demands constant high loads) ought to be considered as well. Measures to promote use of straight coconut oil in this application need to focus on both the introduction of appropriate adaptation technology and training of operating personnel. Because total amount of fuel potentially consumed in such vehicles appears limited, number of potential vehicles considered for a fuel switch needs to be investigated to assess the potential outcomes of efforts to promote use of coconut oil in this application.

3rd Priority: Sea Transportation Sea transportation may become another financially attractive application for use of coconut oil. Given the special circumstances in inter atoll shipping in the RMI and limited international experiences, it is suggested that a fuel switch in this applications is considered only after sufficient technical experiences are available.

Other Applications The least promising application is use of coconut oil in private cars, as it will become financially attractive only for a small minority of car owners. If measures to promote this application are envisaged, they should focus on education of potential users on essential 152 19 Recommendations for Promoting the Use of Coconut Oil in the RMI

prerequisites for a successful use of coconut oil. The use of coconut oil - diesel blends as a direct diesel substitute for any engine is not recommended.

Use of Coconut Oil in Outer Islands 1st Priority – Refurbishing Existing Power Plants It is recommended that use of coconut oil is considered when a new engine for an existing power plant is purchased. Although not promising financial savings at the moment, this option should be closely analysed when a power plant refurbishment project, for example in Jaluit, is considered. Such a project certainly justifies installation of a dedicated small-scale oil mill.

2nd Priority – Using “Historical” Engines for Individual Power Generation Any measure to promote use of coconut oil in the outer islands ought to consider the use of small “historical” engines. It is recommended to further investigate whether wider introduction of such engines is a reasonable option. Main factors to consider are the practicability of ensuring required spare parts infrastructure, acceptability of such technology among outer island population and whether use of such engines on an atoll can aggregate sufficient demand to justify local coconut oil production. If latter is not the case, experimenting with such technology may be done on smaller islands of an atoll where coconut oil is used for communal power generation.

3rd Priority – New Rural Electrification Projects With regard to using coconut oil in new electrification projects, an emphasis of future work needs to focus on options of securing an “adapted” utilisation and maintenance pattern, as well as to further analyse cost involved in a dedicated production of coconut oil. Local production costs need to be 0.32-0.47 USD/l below the applicable price for diesel to make use of coconut oil financially attractive.

Other Applications Introduction of adapted, modern indirect injection generators for individual use may be experimented with equal to the case of “historical” engines; yet high risk of failures and high cost involved in the case of a not appropriate utilisation do not promise success of such type of engine. A major focus with regard to this application should be the education of users on utilisation and maintenance requirements.

Use of coconut oil for local sea transportation should be promoted only after sufficient experiences have been made, due to the special circumstances of this application. It is not recommended to consider the option of using coconut oil in vehicles on land in rural areas. 20 Summary and Outlook 153

20 Summary and Outlook

In the first part of the thesis, the state of the art with regard to using vegetable oils in internal combustion engines has been presented in detail and experiences made with applying this technology were summarised. Different properties of vegetable oils are the original reason for a variety of adverse technical effects. The occurrence of such effects depends on a large number of influencing factors. Three categories of important influencing factors that have technical and subsequent financial implications were identified:

- Oil quality

- Engine used

- Utilisation and maintenance pattern.

To reduce the occurrence of adverse technical effects, it is necessary to use oil of a high quality in an appropriate engine and to “adapt” the utilisation behaviour. An “adapted” utilisation pattern includes

- Avoiding low load operation on vegetable oil

- Reducing oil exchange intervals

- Immediately stopping use of the engine if irregularities occur.

Additional maintenance in the form of cleaning injection nozzles is recommendable. Different types of engines pose different requirements on quality of the oil and utilisation pattern. Any small engine and any direct injection engine require strict load management. Very old and very large engines are more forgiving with regard to oil quality and load on the engine.

Blending of vegetable oil with fossil fuels reduces the occurrence of adverse technical effects but does not prevent their occurrence in the long term. Using additives was found not to serve as a sole solution.

In the second part of the thesis, state of the art of using coconut oil as fuel was examined. Fuel qualities of coconut oil from the Pacific Island Countries were analysed and practical experiences documented. Results of the oil testing have emphasised that high saturation of coconut oil leads to inherently good fuel properties that reduce tendency to form deposits. High acidity is an inherently bad property of coconut oil that increases wear of injection systems. Reduction of total contamination of oil produced in urban areas is a necessity and offers a major potential for quality improvement. Of the other most important quality dimensions, reduction of acidity and phosphorous content pose considerable challenges. For the latter, a direct correlation with temperature during extraction, as exists for rapeseed oil, could not be confirmed. If coconut oil is produced in rural areas, acidity is expected to be of lower concern; achieving acceptable low levels of total contamination appears to pose a major challenge. 154 20 Summary and Outlook

Analysis of use of coconut oil in the Pacific Island Countries, especially of experiences made in the RMI, revealed that in principle, all technical effects known from other vegetable oils occur. Lessons learned from use of other vegetable oils can therefore be applied to the case of using coconut oil. This implies that adverse technical effects can only be sufficiently reduced if an appropriate engine is used with an “adapted” utilisation and maintenance pattern. The latter includes a strong “human” influence, which is of major concern if coconut oil is to be used in the Pacific Island Countries. A case-by-case analysis is necessary to determine if use of coconut oil is a technically viable option in a specific engine.

In the third part of the thesis, financial consequences of using coconut oil in various potential applications were analysed for the representative case of the RMI. Potential applications where identified and best possible cases specified with regard to type of engine used and expected utilisation and maintenance pattern. To allow for an assessment of financial consequences when using coconut oil under less optimal conditions, selected additional cases were specified. Occurrence of technical effects was quantitatively estimated (incidents of failures, maintenance intervals etc.). Most estimation had to be based on a limited foundation of quantitative data available from literature and own data collected in the RMI. To counterbalance the inevitable inaccuracy, estimations were made for an optimistic “lucky” scenario and a pessimistic “unlucky” scenario. These estimations were used to calculate financial consequences of use of coconut oil in each case. Results were standardised as “extra cost per litre” incurred for each litre of diesel replaced by coconut oil.

Financial Consequences of Use of Coconut Oil in the PICs (Extra Cost per Litre) A major advantage of this approach is that the results are not influenced by local price of diesel or future changes in oil prices. Although based on specific circumstances and prices in the RMI, results achieved are likely to be applicable to other Pacific Islands Countries. Table 20.1 summarises the results for the best cases of all applications. Since both “lucky” and “unlucky” scenarios are calculated, calculations yield a “bandwidth of extra cost per litre”.

Table 20.1: Summary of "extra cost per litre" - best cases

Extra Cost per Litre [USD/litre] Urban Rural Power Generation Large-scale 0.05 - 0.06 Communal (200 kW) 0.12 - 0.19 Communal (29 kW) 0.32 - 0.47 Individual (modern) 0.38 - 0.70 Individual ("historical") 0.16 - 0.30 Sea Transportation Large boats 0.10 - 0.21 Small boats 0.27 - 0.64 Land Transportation Heavy-duty machinery 0.11 - 0.21 3.50 - 6.58 Small trucks 0.25 - 0.51 Cars 0.39 - 0.9 6.01 - 11.83

The results clearly indicate that further research into the use of coconut oil in urban areas of the Pacific Island Countries should focus on the option of replacing diesel fuel in large-scale 20 Summary and Outlook 155

power generation. When considering the use of coconut oil in vehicles on land, use of heavy- duty machinery in transportation has high priority. Most promising applications in rural areas are use of coconut oil in small “historical” engines and in engines for communal power generation, especially when a “large” engine is added to an existing power plant.

With the exception of vehicles used on land in rural areas, coconut oil in principle can be used with reasonably low extra cost in all applications considered, provided the prerequisites outlined above are fulfilled. Strategies and measures to implement these prerequisites need to be developed. Recent developments in adaptation technology in other parts of the world offer options to “automatically” improve certain elements of the utilisation pattern, such as automatically avoiding low load operation on vegetable oils. Such developments need to be closely monitored and screened for possible technology transfer to the Pacific Islands Countries.

The quantitative results and the methodology presented in this thesis can serve as a valuable starting point for further analyses on financial feasibility of using coconut oil in specific cases in the Pacific Island Countries. The influence, which a deviation from certain parameters (e.g. a change from an “adapted” to a “business as usual” utilisation pattern in a new “communal power generation” project) would have, has been quantified. Those influences need to be considered when analysing financial feasibilities.

Obviously, a variety of additional factors that are beyond the scope of this thesis need to be taken into consideration before decisions on a fuel switch can be made.

It needs to be emphasised that results presented here base on a considerable amount of assumptions on prices and estimation of technical effects, the latter based on very limited practical experiences. Together with this work, a spreadsheet is supplied that allows applying the methodology to any specific case where certain prices differ or if further experiences made allow a more precise estimation of probabilities of failures. It is of high importance to improve the empirical data pool in regard to the occurrence of technical effects. This can be done by using coconut oil in selected applications under well-controlled conditions. Results outlined above may well serve for selection of appropriate applications for pilot projects.

Financial Consequences of Use of Coconut Oil in the RMI (Absolute Savings) In a final step of the calculations, values of “extra cost per litre” obtained were used to calculate absolute financial consequences of using coconut oil in the RMI. The results for the best case of each application at current fuel prices are summarised in Table 20.2. 156 20 Summary and Outlook

Table 20.2: Summary of absolute financial consequences in the RMI - best cases

Urban Rural Absolute Financial Consequences [USD/year] "lucky" "unlucky" "lucky" "unlucky" Power Generation Large-scale +219,000 +165,000 Communal (200 kW) -2,400 -14,700 Communal (29 kW) -4,050 -8,170 Individual (modern) +80 -320 Individual ("historical") +440 +220 Sea Transportation Large boats -600 -1,800 Small boats -560 -1,800 Land Transportation Heavy-duty machinery -30 -1,710 -1,170 -2,360 Small trucks -450 -1,320 Cars +60 -580 -2,070 -4,240

Based on current fuel prices, only large-scale power generation in Majuro and use of small, “historical” engines in the outer islands are financially attractive for switching fuel. Relatively low diesel prices make a fuel switch unattractive in most cases, even where extra cost per litre is very low. The currently implemented “plug and play” approach when using coconut oil was found to be financially not attractive even in the best case considered and is therefore not recommended to be pursued.

The results of the “extra cost per litre” were also applied to assess absolute financial consequences of using coconut oil in the case of a doubled price for diesel, which can as well be interpreted as the case that production cost of coconut oil could be reduced dramatically. Even then, all cases where the utilisation pattern is not “adapted” result in financial losses. This emphasises that successful use of coconut oil will remain restricted to cases were an appropriate utilisation and maintenance pattern can be securely guaranteed.

Calculation of absolute financial consequences in the RMI has underlined that specific fuel prices always need to be closely considered when evaluating a potential fuel switch. Because of its function as a major re-exporter of diesel fuel, prices for diesel in the RMI are relatively low. When applying the same “extra cost per litre” to prevailing fuel prices in other Pacific Island Countries, absolute financial results may therefore lead to a far more optimistic picture.

Use of straight coconut oil has been exclusive focus of the work presented here. Use of biodiesel deriving from coconut oil is another possibility to use local resources of coconut oil as a substitute for fossil fuel. This option appears especially attractive for a general use in private vehicles, as requirements in regard to type of engine used and utilisation and maintenance pattern are far less restrictive.

In principle it is possible to apply the methodology developed here for use of biodiesel as well. Such a direct comparison of these two options on a quantitative basis would offer a broader base to evaluate options for the Pacific Islands Countries to become less dependent on fossil fuels. 21 Literature 157

21 Literature

[ALM02] Almeida, S. et al.; “Performance of a Diesel Generator Fuelled with Palm Oil”; Fuel, Nr. 81. p.2097-2012. 2002

[AMM04] Ammerer, A., Rathbauer, J., Woergetter, M.; “Rapeseed Oil as Fuel for Farm Tractors“; BLT Wieselburg (Austria); study commissioned by the International Energy Agency; Austria, 2004; published online (10.08.2006): http://www.task39.org/_assets/_publications/Ammerer%20et%20al%202003 %20Rapeseed%20oil %20for%20farm%20tractors.pdf

[ARN05] Arnold, K., et al.; “Synopsis of German and European Experience and State of the Art of Biofuels for Transport”; Wuppertal Institute for Climate, Environment and Energy; study commissioned by the German GTZ; Germany, 2005; published online (28.06.2006): http://www.gtz.de/de/dokumente/en-synopsis-of-german-and- european-experience-of_biofuels-for_transport-2005.pdf

[ATS95] Agency for Toxic Substances and Disease Registry (ATSDR); “Toxicological profile for fuel oils”; U.S. Department of Health and Human Services, Public Health Service; Atlanta, USA, 1995

[ATT05] Attenberger, A., Matthäus, B., Brühl, L., Remmele, E.; “Untersuchung von Einflussfaktoren auf die Qualität von kaltgepresstem Rapsöl als Speiseöl und Festlegung eines Qualitätsstandards. (“Berichte aus dem TFZ“ Nr. 5)“; Eigenverlag - Technologie und Förderzentrum (TFZ); Straubing, Germany, 2005; available online (04.02.2006): http://www.tfz.bayern.de/sonstiges/15951/bericht_5.pdf

[BAN06] Bannikov, M., et al.;“Investigation of the Characterisitics of the Fuel Injection Pump of a Diesel Engine Fuelled with Viscous Vegetable Oil-Diesel Oil Blends“; Proceedings of the Institution of Mechanical Engineers, Vol. 216. Part D: J Automobile Engineering, p. 787-792. 2006

[BAU06] Bause, H. (technical support staff, Deutz AG, Germany); personal communication, 28.09.2006

[BAT80] Batel, W., et al.; “Pflanzenöle für die Kraftstoff- und Energieversorgung”; Grundlagen der Landtechnik, Band 30. Nr. 2. S.40-51. 1980

[BAR02] Bari, S, Yu, C., Lim, T.; “Performance Deterioration and Durability Issues while Running a Diesel Engine with Crude Palm Oil“; Proceedings of the Institution of Mechanical Engineers, Vol. 216. Part D: J Automobile Engineering, p.785-792. 2002

[BEC06] Beckett, N., et al.; “Team Lister Green – Straight Vegetable Oil Modification Kit”; student research paper; Columbia University, USA, 2006; published online (12.10.2006): http://www.me.columbia.edu/me3410/spring06/group01/index.html 158 21 Literature

[BEI97] Beitz, W.; Grote, K. (Hrsg.); “Dubbel; Taschenbuch für den Maschinenbau“; 19. Edition; Springer Verlag Berlin, Germany, 1997

[BEL01] Belitz, H., Grosche, W. Schieberle, P.; “Lehrbuch der Lebensmittelchemie“; 5. Edition; Springer Verlag; Berlin, Germany, 2001

[BIR94] Birkner, M.; “Untersuchung der Eignung von Pflanzenölen als Kraftstoff für Dieselmotoren und Vorstellung eines neuen Pflanzenöl-Motor-Konzeptes“; doctoral thesis, University of Kaiserslautern, Germany, 1994

[BOS93] Robert Bosch GmbH; “Diesel Einspritztechnik“; 1. Edition; VDI Verlag; Düsseldorf, Germany, 1993

[BOS06] Robert Bosch GmbH; company homepage (01.07.2006): http://rb-k.bosch.de/en/start/product_ds_19_axialkv.html

[BRA04] Brautsch, M.; “regOel – regionales, regeneratives Pflanzenöl als Kraftstoff – Technisch wissenschaftliche Grundlagen der Pflanzenöltechnik“; Technical University Amberg-Weiden; study commissioned by ChiemseeAgenda – RegionAktiv; Altötting, Germany, 2004

[BRE94] Breuer, C.; “Beitrag zur Verbrennung von Rapsöl und Rapsmethylester in direkt einspritzenden Dieselmotoren“; Fortschrittsberichte VDI, Reihe 12 Nr. 219; VDI Verlag; Düsseldorf, Germany, 1994

[BUR06] Burmester, R. (Mikrofiltertechnik Burmester KG, Germany); personal communication 20.08.2006

[BUC04] Buchholz, B., Hopp, M., Niendorf M., Hassel, E.; “Shipping in Coastal Regions – State of the Art and Current Research for Emission Reduction”; in: Schernewski, G., Löser, N. (Eds.); Managing the Baltic Sea - Coastline Reports 2. S. 227 – 235. 2004

[CAL06] Calvert, K. (formerly: technical development consultant, Vanuatu); email communication, 15.03.2006

[CAR02] Carmen e.V.; “Pflanzenöl BHKW in Bayern – Durch das Bayrische Ministerium für Landwirtschaft und Forsten geförderte Projekte“; information brochure, published online (10.10.2006): http://www.carmen-ev.de/dt/hintergrund/publikationen/bhkW-Bericht2-2002.pdf

[CAR05] Carranca, J. (MAN B&W do Brasil); “Green Power from Diesel Engines – Burning Biological Oils and Recycled Fats”; paper presented at the conference “Rio 5 – World Climate & Energy International Congress”, Rio de Janeiro, Brazil, 17.02.2005. 21 Literature 159

[CEH06] Cehrenli, K. (KSW Bioenergie GmbH, Germany); personal communication, 24.10.2006

[CHA06] Chand, H. (user of a Tinytech oil mill, Fiji); personal communication, 26.05.2006

[CLO05] Cloin, J., et al.; “Coco Gen – Debriefing Report”; SOPAC; Suva, Fiji, 2005; published online (10.01.2006) http://www.sopac.org/tiki/tiki-download_file.php?fileId=156

[CLO06a] Cloin, J.; “Overview of regional biofuel activities”; SOPAC Annual Session STAR Paper, Suva, Fiji, 2006

[CLO06b] Cloin, J.; private homepage (20.07.2006): http://c.1asphost.com/cloin/coconutshiluxindex.html

[CAN06] Candilas, W. (Manager of Copra Mill in Majuro, Marshall Islands) personal communication, 12.03.2006

[COU06] Courty, P. (Paco-Consult, Fiji); “Small-Scale Experience with Biofuel”; presentation at the conference “Renewable Energy and Energy Efficiency”, Suva, Fiji, 20-24.02.2006

[CRO05] Croezen, H., et al.; “The road to pure plant oil? - The Technical, Environment, Hygienic and Cost-related Aspects of Pure Plant Oil as a Transport Fuel”; Senternovem; study commissioned by the GAVE Programme, Dutch Ministry for Spatial Planning, Housing and the Environment; Delft, Netherlands, 2005

[DEA06] Deamer, T. (Motor Traders Ltd. & Island Fuel Co. Ltd., Vanuatu); email communication, 06.03.2006

[DEL06] Delphi Corporation; company homepage (12.09.2006): http://www.delphi.com/manufacturers/cv/powertrain/dp210/

[DEU06] Deutz AG; engine specification sheet 912W series; available online (10.08.2006): http://www.deutz.de/webgate/deutzcs.nsf/contentByKey/AWUE-67RCCZ-DE-p/$file/912wude.pdf

[DIN05] Entwurf DIN 51605; “Kraftstoffe für Pflanzenöltaugliche Motoren – Rapsölkraftstoff – Anforderungen“; Beuth Verlag; Berlin, Germany 2005

[DOB00] Dobiasch, A.; “Einfluss der chemischen und physikalischen Eigenschaften von regenerativen Kraftstoffen auf das Emmissionsverhalten von Verbrennungsmotoren” Fortschrittsberichte VDI, Reihe 12 Nr. 428. VDI Verlag; Düsseldorf, Germany 2000

[DOE06] Doehring, W. (TESSOL GmbH, Germany); personal communication, 24.08.2006

[EDE04] Eder, B., Eder, F.; “Pflanzenöl als Kraftstof – Autos und Verbrennungsmotoren mit Bioenergie antreiben”; Beltz Verlag; Freiburg, Germany, 2004 160 21 Literature

[ELS03] Elsbett, G., Bialkowsky, M.; “Engines Running on Pure Vegetable Oil as Regrowing Fuel – History, Development, Experience, Chances”; conference paper, “Shanghai International Symposium on I.C. Engines”, China, 2003; available online (20.02.2006): www.elsbett.com/fileadmin/elsbett/archiv/de/svohistory.pdf

[ELS06a] Elsbett, G.; “Die Normung von Pflanzenöl als Kraftstoff“; working paper; published online (08.06.2006): http://www.elsbett.com/fileadmin/elsbett/archiv/de/gepflanzenoelnorm.pdf

[ELS06b] Elsbett GmbH; “Anmerkungen zu unserem Umrüstangebot”; product presentation; published online (10.05.2006): http://www.elsbett.com/fileadmin/elsbett/archiv/de/angebotspraesentation.pdf

[ELS06c] Elsbett GmbH; online shop (31.07.2006): http://www.elsbett.com/de/online-shop.html

[EMB05] Emberger, P.; “Technische Umsetzung eines regionalen Energie- und Wirtschaftskonzeptes auf Basis biogener Flüssigkraftstoffe“; master thesis, Technical University Amberg-Weiden, Germany, 2005

[EPP01] Economic Policy, Planning and Statistics Office of the Government of the Marshall Islands; “Statistical Abstract 2001”; 14th Edition; Majuro, Marshall Islands, 2001

[ERO06] Erol, M. (Pancar Engines Ltd., Turkey); personal communication, 28.08.2006

[ETH05] Etherington, D.; “Bringing Hope to Remote Island Communities with Virgin Coconut Oil Production”; paper presented at the “International Coconut Forum 2005”, Cairns, Australia, 22-23.11.2005

[FAO06] Food And Agricultural Organisation of the United Nations; “Commodity and Trade Statistics”; institutional homepage (15.08.2006): http://www.fao.org/es/esc/prices/PricesServlet.jsp

[FIS03] Fischer, R., Gscheidle, R., Hohmann, B., et al.: “Tabellenbuch Kraftfahrzeugtechnik“; Europa-Lehrmittel-Verlag; Haan-Gruiten, Germany 2003

[FMS06] “FMSO – Fahren mit Salatöl“; private homepage (24.08.2006): http://rapsdb.rapsinfo.de/

[FRI06] Fritsch, B. (WTZ Roßlau GmbH); “Technische Grundlagen des Einsatzes von Pflanzenöl als Kraftstoff im BHKW“; presentation at the conference “KoNaRo- Fachgespräch“; Bernburg, Germany, 28.02.2006

[GEH06] Gehring, H. (senior scientific engineer, MAN B&W GmbH); personal communication, 28.08.2006 21 Literature 161

[GIL03] Gill S., Jain A.; “Navigating Innovations - The EU-India Cross Cultural Innovation Network”; working paper, RWTH Aachen University; Germany, 2002; available online (02.08.2006): http://www.zlw-ima.rwth- aachen.de/forschung/veroeffentlichungen/books/enterprises_and_cooperation_networks.pdf

[GOE98a] Goerke, D.; “Ansatzpunkte zur Verbesserung der Wettbewerbsfähigkeit von Pflanzenöl als Treibstoff gegenüber Dieselkraftstoff“; Fortschrittsberichte VDI, Reihe 12 Nr. 386; VDI Verlag; Düsseldorf, Germany, 1998

[GOE98b] Goeklap, I., et al.; “Advanced Combustion Research for Energy from Vegetable Oils (ACREVO)“; Laboratoire de Combustion et Systemes Reactifs; final report of the project FAIR-CT95-0627. FAIR Programme of the European Commission; Orleans, France, 1998; available online (06.05.2006): http://www.biomatnet.org/secure/Fair/F484.htm

[GOE06] Goelzner, H. (Motorenfabrik Hatz GmbH, Germany); personal communication, 28.08.2006

[GOO06] Google Earth; private homepage (30.06.2006): www.earth.google.com

[GRA06] Graf, T., Reinhold, G. (Thüringer Landesanstalt für Landwirtschaft); "Wirtschaftlichkeit der Produktion und des Einsatzes von Rapsölkraftstoff in pflanzenöltauglichen Motoren“; presentation at the workshop “Erzeugung von Rapsölkraftstoff“; Straubing, Germany, 23.03.2006

[HAE94] Haentsche, J.; “Ergebnisse des Anwendungsprojektes Pflanzenöl Sachsen- Anhalt“; in: “Pflanzenöle als Kraftstoffe für Fahrzeugmotoren und Blockheizkraftwerke“; VDI Berichte 1126; VDI Verlag; Düsseldorf, Germany, 1994

[HAG04] Haga, N. (Wartsila Corp., Finland); “Vegetable Oils as Fuel in Diesel Generating Sets”; conference paper “10th International Cogeneration, Combined Cycle & Environment Conference and Exhibition”; Istanbul, Turkey, 20.05.2004

[HAG05] Haga, N. (Wartsila Corp., Finland); “Use of Liquid Biofuels in Reciprocating Engines”; company brochure, Finland, November 2005

[HAG06] Haga, N. (senior scientific engineer, Wartsila Corp., Finland); email communication, 23.03.2006

[HAS05] Hassel, E., et al. (University of Rostock); “Rapsöl als Kraftstoff in der Landwirtschaft – Sachstandsbericht zum 100-Traktoren- Demonstrationsvorhaben”; presentation at the conference “Rapsöl Gemeinschaftstagung“; Veitshöchstheim, Germany, 16.-17.06.2005; available online (12.07.2006): http://www.ufop.de/downloads/03_Schuemann.pdf 162 21 Literature

[HAS06a] Hassel, E., Wichmann, V. (University of Rostock); “Ergebnisse des Demonstrationsvorhabens Praxiseinsatz von serienmäßigen neuen rapsöltauglichen Traktoren“; paper for the final conference of the "100-Traktoren- Demonstrationsprojekt"; Hannover, Germany, 9.11.2005; published online (20.02.2006): http://www.fnr-server.de/pdf/literatur/pdf_214100traktorenergebnisse.pdf

[HAS06b] Hassel, E., Berndt, S., Golisch, J., Harkner, W. Schuemann, U., Wichmann, V. (University of Rostock); “Stand des 100-Traktoren-Programmes des BMVEL – Technische Ziele, Rahmenbedingungen und wissenschaftliche Begleitforschung“; article published online by the “Union zur Förderung von Oel- und Proteinpflanzen e.V (UFOP)“ (10.09.2006): http://www.ufop.de/634.php

[HEN94] Henning, R.; “Produktion und Nutzung von Pflanzenöl als Kraftstoff in Entwicklungsländern”; in: “Pflanzenöle als Kraftstoffe für Fahrzeugmotoren und Blockheizkraftwerke“; VDI Berichte 1126; VDI Verlag; Düsseldorf, Germany,1994

[HER95] Herdman, R., et al.; “Advanced Automotive Technology: Visions of a Super- Efficient Family Car”; Office of Technology Assessment of the Defense Aquisition University, USA; available online (15.09.2006): http://www.dau.mil/educdept/mm_dept_resources/reports/OTA-Advanced-auto-tech.pdf

[HOE94] Hoeck, R., Widmann, B.; “Betriebserfahrungen mit pflanzenölbetriebenen Dieselmotoren“; in: “Pflanzenöle als Kraftstoffe für Fahrzeugmotoren und Blockheizkraftwerke“; VDI Berichte 1126; VDI Verlag; Düsseldorf, Germany, 1994

[HOL06] Holstein, H. (SEVA Energie AG, formerly: AAN GmbH, Germany); personal communication, 12.10.2006

[IWA06] Iwano, N. (senior mechanical engineer, EPC Samoa); “Report on Coconut Oil Experimental Test in E.P.C. Power Generation Plant”; unpublished discussion paper; Samoa, April 2006

[JUR94] Jurisch, C., Meyer-Pittroff, R.; “Pflanzenölgeeignete Dieselmotoren deutscher Hersteller“; in: “Pflanzenöle als Kraftstoffe für Fahrzeugmotoren und Blockheizkraftwerke“; VDI Berichte 1126; VDI Verlag; Düsseldorf, Germany, 1994

[KAR00] Karaosmanoglu, F., Kurt, G., Ozaktas, T.; “Direct Use of Sunflower Oil as a Compression-Ignition Engine Fuel“; Energy Sources, Volume 22. p. 659–672. 2000

[KEM05] Kemnitz, D., et al.; “Pflanzenöl als Kraftstoff in der Landwirtschaft – Erfahrungsberichte“; Eigenverlag - Fachagentur für Nachwachsende Rohstoffe e.V. (FNR); Germany, 2005; available online (20.04.2006): http://www.fnr-server.de/cms35/index.php?id=1202&idtitel=222 21 Literature 163

[KEY05] Keymer, A. (Bavarian State Research Center for Agriculture); “Ökonomie von Rapsölkraftstoffen”; power point presentation; Schönbrunn, Germany, 2005; available online (12.03.2006): http://www.lfl.bayern.de/ilb/technik/14676/index.php

[KHA06] Khan, I.(Department of Energy, Fiji); personal communication, 12.03.2006

[KHU06] Kumar, A; (Manager of Copra Mill in Savusavu, Fiji); personal communication, 26.05.2006

[KLE91] Kleinhanss, W., Kerckow, B., Schrader, H.; “Kosten-Nutzenanalyse: Rapsöl im Nichtnahrungsbereich“ Schriftenreihe des Bundesministers für Ernährung, Landwirtschaft und Forsten, Reihe A: Angewandte Wissenschaft Heft 410; Landwirtschaftsverlag GmbH; Münster-Hiltrup, Germany, 1992

[KLE99] Klee, P.; “Charakterisierung verschiedener Pflanzenölkraftstoffe hinsichtlich ihrer Eignung als Dieselkraftstoffsubstitute unter besonderer Berücksichtigung ihrer chemischen und physikalischen Eigenschaften”; Fortschrittsberichte VDI, Reihe 12 Nr.375; VDI Verlag; Düsseldorf, Germany, 1999

[KIN06] Kininger, F. (formerly: University of Kassel, Germany); personal communication, 07.09.2006

[KNU00] Knuth, H. (Deutz AG, Germany); “Einsatz von reinen Pflanzenölen und RME in Deutz Motoren”; conference paper “Agritechnika 2000“, Germany, 2000

[KNU05] Knuth, H.; “Einsatz von Rapsmethylester und reinen Pflanzenölen in DEUTZ- Motoren“; conference paper; “Agritechnica 2005“, Germany, 2005

[KNU06] Knuth, H. (senior scientific engineer, Deutz AG, Germany); personal communication, 25.10.2006

[KOL99] Kollar, M.; “Abgasemissionen und Betriebsverhalten beim Einsatz von Pflanzenölen im Wirbelkammer-Dieselmotor und Kochherd - Ein Beitrag zur Lösung von Energieproblemen in den Tropen und Subtropen”; Fortschrittsberichte VDI, Reihe 15 Nr. 217; VDI Verlag; Düsseldorf, Germany 1999

[KOR91] Korte, V., Hemmerlein, N., Richter, H.; “Experimentelle Untersuchung zur Nutzung von Pflanzenölen in Dieselmotoren - Abschlussbericht“; Dr.-Ing. h.c.F. Porsche AG; study commissioned by Bundesministerium für Forschung und Technologie; Weissach, Germany, 1991

[KOP04] Kopial, T., Pumwa, J., Turlom, S.; “Effects of Reducing Coconut Oil Viscosity on Engine Performance“; Working Paper, Papua New Guinea University of Technology, 2004 164 21 Literature

[KOS95] Kossmehl, S.; “Beurteilung der technischen, ökologischen und ökonomischen Bedingungen für den Einsatz von Biokrafftstoffen im Kraftfahrzeug”; doctoral thesis, Technical University of Berlin, Germany, 1995

[KOS97] Kossmehl, S., Heinrich, H. (Volkswagen AG); “The Automotive Industry’s Views of the Standards for Plant Oil-Based Fuels“; in: Martini, K, Schell, J. (Eds.); “Plant Oils as Fuels – Present State of Science and Future Developments”; Proceedings of the Symposium held in Potsdam, Germany, 16-18.02.1997; Springer Verlag; Berlin, Germany, 1997

[KRU02] Krueger, R.; “Systematischer Vergleich alternativer Kraftstoff- und Antriebskonzepte in der Bundesrepublik Deutschland”; Fortschrittsberichte VDI, Reihe 12 Nr. 499; VDI Verlag; Düsseldorf, Germany, 2002

[KUB06] Kubota Corporation; engine specifications Super ACTV Series; available online (12.08.2006): http://www.frontierpower.com/kubota/actvseries.htm

[LIS52] Lister & Co. Ltd.; “Stationary Diesel Engines – Marks 3-1. 5-1. 10-2 - Instruction and Spare Parts Book”; Dursley, England, 1952

[LLO00] Lloyd, B, Lowe, D., Wilson, L.; “Renewable Energy in Remote Australian Communities (A Market Survey) – Final Report”; Australian Cooperative Research Centre for Renewable Energy, Murdoch Universtiy, Australia, 2000; published online (20.07.2006): http://www.bushlight.org.au/pdf/RE_Audit.pdf

[LOV06] Lovson Exports Ltd.; company homepage (21.07.2006): http://www.slowspeedengine.com/engines_sl_techspecs.htm

[LUC00] Lucas, K.; “Thermodynamik – Die Grundgesetze der Energie und Stoffumwandlungen“, 2. Edition; Springer Verlag; Berlin, Germany, 2000

[LUD06] Ludwig, S. (MAN – Trucks AG, Germany); “Pflanzenöl als Kraftstoff“; company presentation, 2006; available online (10.09.2006): http://www.elsbett.com/fileadmin/elsbett/archiv/de/man.pdf

[MAC01] Machacon, H., et al.; “The Effect of Coconut Oil and Diesel Fuel Blends on Diesel Engine Performance and Exhaust Emissions”; JSAE Review 22. p. 349-355. 2001

[MAR06] Mario, R., et al.; “Evaluation of the Biofuel Projects in Taveuni and Vanuabalavu, Fiji Islands”; SOPAC Technical Report, Suva, Fiij, 2006

[MAS01] Masjuki, H., et al.; “Performance, Emissions and Wear Characteristics of an Indirect Injection Diesel Engine Using Coconut Oil Blended Fuel”; Proceedings of the Institution of Mechanical Engineers Part D – Journal of Automobile Engineering, Vol. 215. p. 393-404. 2001 21 Literature 165

[MAU95] Maurer, K.; “Untersuchungen zum Einsatz von Rapsöl und Rapsölprodukten im Landwirtschaftlichen Bereich”; Abschlussbericht als Kurzfassung; Universität Hohenheim/Landesanstalt für landwirtschaftliches Maschinen- und Bauwesen; Hohenheim, Germany, 1995; available online (10.05.2006): http://www.inaro.de/Deutsch/Forschun/Berichte/Unters_Raps.htm

[MAU03] Maurer, K.; “Motorprüflauf mit Rapsöl-Diesel-Mischungen - Schlussbericht”; University of Hohenheim; Germany, 2003. available online (03.06.2006): http://edok01.tib.uni-hannover.de/edoks/e01fb04/390564540.pdf

[MAY96] May, H., Birkner, C.; “Untersuchung der Unterschiede im Einspritzverhalten von Pflanzenölen und handelsüblichem Dieselkraftstoff unter motorähnlichen Bedingungen mit Hilfe einer optischen Apparatur - Abschlussbericht”; University of Kaiserslautern, Germany, 1996

[MCD99] MCDonnell, K., Ward, S., McNulty, P.; “Results of Engine and Vehicle Testing of Semi-refined Rapeseed Oil”; in: Proceedings of the 10th international Rapeseed Congress; Canberra, Australia, 1999; published online (02.02.1006): http://www.regional.org.au/au/gcirc/6/214.htm

[MCG05] McCregor & Company; “Conduct of the Copra Trade and Outer Island Shipping Services in the Marshall Islands”, study commissioned by the Asian Development Bank; Manila, Phillipines, Oct. 2005

[MCG06] McGregor, A.; “Solomon Islands Smallholder Agriculture Study (Volume 3) Markets and Marketing Issues”; study commissioned by the Australian Overseas Aid Program; Canberra, Australia, 2006; published online (18.05.2006): http://www.ausaid.gov.au/publications/pubout.cfm?ID=4088_5412_1071_6193_2813

[MEI06] Meierhofer, T.; “Untersuchungen zur Eignung verschiedener Pflanzenöle als Kraftstoff in pflanzenöltauglichen BHKW”; master thesis, Technical University of Amberg-Weiden, Germany, 2006

[MEY02] Meyer-Pitroff, R., Dobiasch, A., Lachenmaier J.; “Pflanzenölberiebene Blockheizkraftwerke – Teil 2“; Technical University of Munich; study commissioned by “Bayerische Landesanstalt für Umweltschutz“, Munich, Germany, 2002

[MIT95] Mitzlaff, K., Henning, R.; “Produktion und Nutzung von Purgieröl als Kraftstoff und Rohstoff für die lokale Seifenherstellung im Sahel - Darstellung eines Systemansatzes am Beispiel eines von der GTZ geförderten Projektes in Mali”; in: Krause, R., Schellert, C. (Eds.); “Nachwachsende Rohstoffe – aus den Tropen und Subtropen für die Tropen und Subtropen“; Eigenverlag - Verband der Tropenlandwirte Witzenhausen; Witzenhausen, Germany, 1995 166 21 Literature

[NEO06] Neoteric Biofuels Inc.; company homepage (12.07.2006): http://www.plantdrive.com/page50/page46/page46.html

[NEU06] Neum, Olaf (sales representative, Wartsila Corp. Germany); personal communication (27.09.2006)

[NOA06] Nowak, N. (Elsbett GmbH, Germany); personal communication, 26.08.2006

[OCH06] United Nation Office for the Coordination of Humanitarian Affairs; institutional homepage (30.08.2006): http://ochaonline2.un.org/Default.aspx?tabid=3782

[PET02] Peterson, C., Jones S. (University of Idaho, USA); “Using Unmodified Vegetable Oils as a Diesel Fuel Extender - A Literature Review”; conference paper “Bioenergy 2002”; University of Idaho; Moscow, USA, 2002; available online (22.04.2006): www.uidaho.edu/bae/biodiesel/raw%20vegetable%20oils_literature%20review.doc

[PIS01] Pischinger, S.; “Energiewandlungsmaschinen II – Kolbenmaschinen”; Vorlesungsumdruck, 3. Edition; RWTH Aachen University, Germany, 2001

[PRA01] Pramanik, K.; “Properties and Use of Jatropha Curcas Oil and Diesel Fuel Blends in Compression Ignition Engines”; Renewable Energy, Vol. 28, p. 239-248. 2003

[PRA03] Prateepchaikul, G., Apichato, T.; “Palm oil as Fuel for Agricultural Diesel Engines: Comparative Testing against Diesel Oil”; Songklanakarin Journal of Science and Technology (Thailand), Vol. 25 Nr. 3, May-June 2003; available online (04.03.2006): http://journeytoforever.org/biodiesel_SVO-palm.html

[PRE06] Preuß, A. (Pkw Oeltechnik GmbH, Germany); email communication, 02.05.2006

[PUD94] Pudel, F.; “Entwicklungsprojekte der OEHMI Forschung und Ingenieurtechnik GmbH“; in: “Pflanzenöle als Kraftstoffe für Fahrzeugmotoren und Blockheizkraftwerke“; VDI Berichte 1126; VDI Verlag; Düsseldorf, Germany 1994

[QUI06] Quirstorp, H. (Henkelhausen GmbH, Germany); personal communication, 29.08.2006

[REI97] Reiser, W.; “Ermittlung von motor- und verbrennungstechnischen Kenndaten an einem Dieselmotor mit Direkteinspritzung bei Betrieb mit unterschiedlich aufbereitetem Rapsöl“; Fortschrittsberichte VDI, Reihe 12 Nr. 316; VDI Verlag; Düsseldorf, Germany, 1997

[REM02a] Remmele, E., Widman, B., Breun, J., Rocktäschel, A.; “Reinigung kaltgepresster Pflanzenöle aus dezentralen Anlagen. Endbericht zum Forschungsvorhaben des Bayrischen Staatsministeriums für Landwirtschaft und Forsten (“Gelbes Heft“ 21 Literature 167

Nr. 75)“; Eigenverlag - Technologie und Förderzentrum (TFZ); Straubing, Germany, 2002

[REM02b] Remmele, E.; “Standardisierung von Rapsöl als Kraftstoff – Untersuchungen zu Kenngrößen, Prüfverfahren und Grenzwerten“; doctoral thesis, Technical University Munich, Weihenstephan, Germany, 2002

[REM05] Remmele, E., Stotz, K.; “Hinweise zur Erzeugung von Rapsölkraftstoffen in dezentralen Ölgewinnungsanlagen“; Technologie und Förderzentrum im Kompetenzzentrum für nachwachsende Rohstoffe (Ed.); working paper; Straubing, Germany, 2005; published online (02.05.2006): http://www.tfz.bayern.de/sonstiges/16411/handreichung_rk_08_2005.pdf

[SCH06a] Schümann, U. (University of Rostock); “Auswirkungen verschiedener Kennwerte von Rapsölkraftstoff auf den Betrieb pflanzenöltauglicher Motoren“; presentation at the workshop “Erzeugung von Rapsölkraftstoff“ (Technologie und Förderzentrum im Kompetenzzentrum für Nachwachsende Rohstoffe); Straubing, Germany, 23.03.2006; available online (15.05.2006): www.tfz.bayern.de/sonstiges/16789/2_schuemann_rapsoelkraftstoff_kennwerte.pdf

[SCH06b] Schwerd, M. (NEED GmbH, Germany); personal communication, 31.08.2006

[SCH06c] Schmitz, N.; “Biokraftstoffe - Eine vergleichende Analyse”; study commissioned by the Fachagentur Nachwachsende Rohstoffe e. V. (FNR); Germany, 2006; available online (20.06.2006): http://www.fnr.de/pdf/literatur/pdf_236biokraftstoffvergleich2006.pdf

[SEN97] Sengers, H., Olsen, R.; “Performance Test for Diesel Injector Fouling, Fuel Forming and Related Functional Benefits”; in: Bartz, W. (editor), “Fuels - 1st International Colloquium”; Technische Akademie Verlag; Esslingen, Germany 1997

[SHA99] Shaheed, A., Swain, E.; “Combustion Analysis of Coconut Oil and its Methyl Esters in a Diesel Engine”; Proceedings of the Institution of Mechanical Engineers Part D – Journal of Automobile Engineering, Vol. 213 Part A, p. 417- 425. 1999

[SHA06] Shah, J. (Lovson Export Ltd., India); email communication, 21.03.2006

[STA06] Stanev, A. (FNR); “Forschungs und Förderaktivitäten im Bereich Biokraftstoffe“, presentation at the conference “Biokraftstofftagung der Fachagentur Nachwachsende Rohstoffe (FNR)“; Düsse, Germany, 27.01.2006; available online (30.09.2006): http://www.duesse.de/znr/veranstaltungen/heizen_2006/stanev.pdf

[STO06a] Stotz, K. (TFZ); “Einflussfaktoren auf die Qualität von Rapsölkraftstoff“; presentation at the workshop “Erzeugung von Rapsölkraftstoff“ (Technologie und 168 21 Literature

Förderzentrum im Kompetenzzentrum für Nachwachsende Rohstoffe); Straubing, Germany, 23.03.2006; available online (15.05.2006): www.tfz.bayern.de/sonstiges/16789/4_stotz_rapsoelkraftstofferzeugung.pdf

[STO06b] Stotz, K.; “Beprobung von Rapsölkraftstoffproduzenten – Stand August 2006“; Technologie und Förderzentrum im Kompetenzzentrum für Nachwachsende Rohstoffe (Ed.); Straubing, Germany, 2006; published online (20.09.2006): http://www.tfz.bayern.de/sonstiges/16411/markttransparenz_august.pdf

[STR92] Strehler, A.; “Verwendung von Rapsöl zu Motorentreibstoff und als Heizölersatz in technischer und Umweltbezogener Hinsicht (“Gelbes Heft“ Nr. 40)“; Technical University of Munich – Weihenstephan; Eigenverlag - Technologie und Förderzentrum (TFZ); Straubing, Germany, 1992

[TAB06] Tabatzki, H. (Löschenkohl & Mitter Motorenwerk Schönebeck GmbH); personal communication, 30.08.2006

[TAR06] Tarte, A. (Producer of Virgin Coconut Oil, Fiji); personal communication, 01.06.2006

[THU02a] Thuneke, K., Kern, C.; “Pflanzenölbetriebene Blockheizkraftwerke – Teil 1”; Technical University Munich - Weihenstephan; study commissioned by “Bayrisches Landesamt für Umweltschutz“; Munich, Germany, 2002

[THU02b] Thuneke, K., Link, H., Widmann, B., Remmele, E.; “Pflanzenölbetriebene Blockheizkraftwerke – Abschlussbericht”; Technical University Munich – Weihenstephan; study commissioned by “Bayrisches Landesamt für Umweltschutz“; Munich, Germany, 2002

[THU05] Thuneke, K., Wilharm, T., Stotz, K.; “Untersuchung der Wechselwirkungen zwischen Rapsöl als Kraftstoff und dem Motorenöl in pflanzenöltauglichen Motoren”; Technologie und Förderzentrum im Kompetenzzentrum für Nachwachsende Rohstoffe (Editor); Berichte aus dem TFZ Nr. 7; Straubing, Germany, 2005

[THU06] Thuneke, K. (TFZ Straubing); personal communication, 31.08.2006

[TOB06] Tobolar Copra Processing Authority; “The Coconut Biofuel”; company publication, Majuro, Marshall Islands, 2006

[TOG98] Togashi, C., Kamide, J.; “Operation of a Diesel Engine Using Unrefined Rapeseed oil as Fuel”; Miyagi Agricultural College (Japan); published online: http://ss.jircas.affrc.go.jp/kankoubutsu/jarq/33-2/Togashi/togashi.html 21 Literature 169

[VAI92] Vaitilingom, G.; “Huiles Vegetales – Biocombustible Diesel; Influence de la nature des huiles et en particulier de leur composition en acides gras sur la qualite- carburant”; doctoral thesis, University of Orleans, France, 1992

[VAI06a] Vaitilingom, G. (CIRAD, France); personal communication, 31.02.2006

[VAI06b] Vaitilingom, G. (CIRAD, France); “Biofuels for the Pacific – Technical Options”; presentation at the conference “Renewable Energy and Energy Efficiency”, Suva, Fiji, 20-24.02.2006

[VEG06] Vegetable Oil Fuels Database; private homepage (20.08.2006): http://www.vegetableoildiesel.co.uk/fuelsdatabase/database/index.php

[VEL82] Vellguth, G.; “Eignung von Pflanzenölderivaten als Kraftstoff für Dieselmotoren“; Grundlagen der Landtechnik, Band 2. Nr. 5. 1982

[VWP06] Vereinigte Werkstätten für Pflanzenöltechnologie GmbH; “Flottenversuch mit pflanzenöltauglichen Serienmotoren in 60 PKW’s“; press release, Germany, 2006; published online (03.08.2006): http://www.pflanzenoel-motor.de/Flottenv.pdf

[WAD05] Wade, H., Johnston, P., Vos, J.; “Pacific Regional Energy Assessment 2004 – Regional Overview Report”; Pacific Islands Renewable Energy Project (PIREP), Apia, Samoa, 2005; available online (10.09.2006): http://www.sprep.org/climate_change/pirep.htm

[WAR06] Wartsila Corporation; company homepage (10.10.2006): www.wartsila.com

[WEI06] Weigel, K. (Karl Weigel Energietechnik GmbH, Germany); personal communication, 06.09.2006

[WEL06] personal communication with people from Welangi Village, Fiji, 31.05.2006

[WWG06] Wentzel & Wolf GbR; online shop (31.07.2007): http://www.activoil.de/

[WIC05] Wichmann, V.; “Wissenschaftliche Begleitforschung zur Umrüstung“ in: Kemnitz, D. (FNR), et al.; “Pflanzenöl als Kraftstoff in der Landwirtschaft – Erfahrungsberichte“; Eigenverlag - Fachagentur für Nachwachsende Rohstoffe e.V. (FNR); Germany, 2005; available online (20.04.2006): http://www.fnr-server.de/cms35/index.php?id=1202&idtitel=222

[WID01] Widman, B.; “Erhebung des technischen Standes bei pflanzenölbetriebenen Blockheizkraftwerken im Alpengebiet – Abschlussbericht“; Technical University Munich – Weihenstephan; study commissioned by “Deutsche Bundesstifftung Umwelt“; Freising, Germany, 2006 170 21 Literature

[WID02] Widmann B., Thuneke K.: “Rapsöl als Kraftstoff“, in: Bundesinitiative BioEnergie (Ed.): “Kraftstoffe der Zukunft“; Proceedings of the conference “Fachkongress für Biokraftstoffe“; Berlin, Germany, 4.-5.12.2002

[YAN06] Yanmar Corporation; product specification Yanmar 3YM30; available online (30.05.2006): www.yanmarmarine.com/products/pdf/GM_YM/3YM30_TechData.pdf

[ZIE05] Zieroth, G.; “Feasibility of Coconut Oil as Diesel Substitute in Kiribati - Inception Report”; SOPAC, Suva, Fiji, 2005; available online (01.02.2006): http://www.sopac.org/data/virlib/PI/PI0028.pdf Appendix 171

Appendix

Appendix 1 - Summary of Quantitative Survey in the RMI

m m e t e s s s t t t n y i i s o y s s s i t s o o n a p p y o s l i e e i t e e r p r d d c r e p u e u l o o u j l i t t m i s n a y i a f e e l l f f u u o e p o e d d p u l f z m l e e e i r z u r r n o i u o p u u l l l t i n i i s n n t a r a a i f f f a o s o i c r t t r r i o o c c o o r j p n e e n b i j j i a e u n n D M I I M M L "Long term experiences" months Fuel filter exchanges 1 Canter truck, RMI Visitor Centre 14 ~6 months 2 Pick-up truck, RMI Visitor Centre 14 ~3 months 3 Pick-up truck, Fred Muller 17 ? 4 Pick-up truck, Mike Traver 12 x ~2 months 5 Pick-up truck, Gerald Zackios 14 x* ? 6 Pick-up truck, Tobolar 36 x x x ~3 months 7 Canter truck, Tobolar 36 x* x* x* ~3 months "Long term experiences" total 143 23111

"Short term experiences" Comments 1 Canter truck, Momotaro Corp 2 ** 2 Pick-up truck, Momotaro Corp. 4 ** incrasing loss of power realised ->diesel 3 Small truck, Marshall Island Ressort 3 ** x 4 Pick-up truck, Marshall Island Ressort 0.5 ** CNO caused "weird noises" 5 Van, College of RMI 3.5 "wild" idle speed running 6 Pick-up truck, College of RMI 3.5 7 Pick-up truck, Nils Flores 3 8 Pick-up truck, Witton Phillipo 5 x* x* 9 Van, Steve Clark 7 10 Pick-up truck, Bank of RMI 0.25 ** Fuel filter clogged up, one tank only 11 Pick-up truck, Tobolar (new vehicle) 4 12 Pick-up truck, Ron Kyles 3.5 13 Ford Pick-up, Pac. Wheels Car Rental I 4 x 14 Ford Pick-up, Pac. Wheels Car Rental II 4 15 Ford Pick-up, Pac. Wheels Car Rental III 4 16 Ford Pick-up, Pac. Wheels Car Rental IV 4 x 17 Ford Pick-up, Pac. Wheels Car Rental V 4 x deposits in catalytic converter 18 Pick-up truck, Pac. Wheels Car Rental VI 4 x deposits in catalytic converter 19 Kia small truck, Pacific International Corp. 2 x 20 Kia SUV, Pacific International Corp. 3 x 21 Small Canter truck, Home Garden Centre 0.5 ** 22 Large Canter truck, Home Garden Centre 0.5 ** x x 23 Pick-up truck, Home Garden Centre 0.5 ** x 24 Large truck, U&I Transport Company 2 ** coconut oil leaking from exhaust 25 Large truck, U&I Transport Company 2 ** 26 Pick-up truck, Majuro Stewedore Comp. 3 ** fuel filter exchange "every two weeks" 27 Van, Majuro Stewedore Company 3 ** 28 Loader, Majuro Stewedore Company I 3 ** x build up of deposits in comb. chamber 29 Loader, Majuro Stewedore Company II 3 ** realised & cleaned --> switch to diesel 30 Loader, Majuro Stewedore Company III 3 ** x 31 Boat "Oleander", main engine 6 Cleaning of injector nozzle every 32 Boat "Deborah K.", main engine 7 x ~250 hours instead of 500 33 Boat "Beborah K.", generator engine 7 x 34 Boat "Mercy K.", main engine 5 35 Boat "Mercy K.", generator engine 5 x 36 Small Generator, Satoshi's Dive Tours I 4 ? ? fatal failure 37 Small Generator, Satoshi's Dive Tours II 3 ? ? fatal failure 38 Generator, Ramsey Reimers 0.5 30% of CNO 39 Generator, Ron's Boat 8 filter exchange "less than with diesel"

"short term experiences" total13435333

* information obtained from workshops ** switched back to diesel 172 Appendix

Appendix 2 - Estimated Probabilities of Failures

Individual Land Transportation Professional Land Transp.

, ) , , I ) d d d d ) I) I e I Estimated Probabilitites e e

e D e e s t t t t c I c t D t ID " " " " ( " ( ID o n r o p p , n r p , r r n ) r ) r e a e a a I a n a I e n e ap t ed t t a t a k ( k ( t ss a d ) d s ) s d io D s u D al" s u c c c c e I 2 i I 4 u a i a u ad ( ( a u at u ap ) d m d m ) Urban ) d ) d r r su e e s r r y y d 1 e 3 t e t sin s s 2 u a g m t g m a i t i 1 l t a ili l t a a l e u e c e c c t n o p n o c p " " a al b Applications 1/2 s s " u C c C o c a o a l l as " a a ase d d " " C C a C a C sm sm lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky Deposits in the fuel supply (per year) 10% 30% 15% 35% 5% 25% 10% 30% 10% 40% 10% 40%

Minor failure ofiInjection system (per year) 5% 20% 20% 50% 5% 20% 20% 50% 10% 25% 10% 25%

Failure of injector nozzle (per year) 5% 20% 10% 25% 5% 15% 10% 20% 15% 30% 15% 30%

Major failure of injection pump (per 5 years) 10% 30% 20% 50% 15% 40% 25% 55% 20% 50% 25% 55%

Minor failure due to deposits (per 5 years) 10% 20% 15% 25% 0% 0% 0% 0% 20% 40% 0% 0%

Major failure due to deposits (per 5 years) 0% 10% 5% 15% 20% 40% 40% 70% 0% 10% 60% 100%

Major failure due to lube oil polym. (per 5 years) 0% 0% 0% 10% 20% 40% 75% 150% 0% 0% 30% 80%

Urban Heavy Duty Sea Transp. Large Scale Power Generation

" d d 5 % " Estimated Probabilitites 5 . n e e , , n . 0 t t n ) 2 ) ) , o I I o l 2 2 i e e p p o i ) , ( t O i w , D t a a D t n n d I a I O i ) a e i d N l e ( t ( c d d t l g r n g N o n O C a a u a r o i e e n o r ) n ) o C N ) ) e ) g Urban t n n e p 1 e 3 1 i i p % 2 s S 2 n C s 0 g g s e % e n e e e e W n W 0 n n n s 0 s Applications 2/2 s s o s a 0 1 e e a a M M a a r c ( W a r a t 1 " C C 4 ( C " C T C M lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky

Deposits in the fuel supply (per year) 10% 40% 10% 40% 20% 50% 50% 100% 50% 100% 30% 60%

Minor failure ofiInjection system (per year) 5% 20% 5% 20% 5% 20% 0% 0% 0% 0% 0% 0%

Failure of injector nozzle (per year) 15% 40% 15% 35% 10% 40% 150% 250% 150% 250% 50% 90%

Major failure of injection pump (per 5 years) 25% 50% 35% 60% 25% 65% 200% 300% 200% 300% 70% 100%

Minor failure due to deposits (per 5 years) 10% 40% 0% 0% 10% 20% 100% 200% 100% 200% 30% 100%

Major failure due to deposits (per 5 years) 0% 10% 50% 90% 0% 15% 0% 0% 0% 0% 0% 0%

Major failure due to lube oil polym. (per 5 years) 0% 0% 30% 60% 0% 0% 0% 0% 0% 0% 0% 0%

Communal Power Generation

y Estimated Probabilitites , , W d ) ) v a I I s . . W W k , n " a e a r k D " k D n p p I n I 0 a d e ( d ( o o y S s s s 9 o 9 " 0 t i i e L t e l t r r s 2 t H l 2 t t 2 a n n a l r a u o o e p l a ) a ) t p t Rural a a u ) e s a s n a D c 1 a 2 i r a r a i a i s 3 r n l r l r d i r d i s T o T e e u e t u e t e e a a u u s s u Applications 1/2 L s g " n " u n R a a b R e e a " C C g g C lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky

Deposits in the fuel supply (per year) 15% 35% 15% 35% 25% 45% 20% 40% 15% 30% 30% 80%

Minor failure ofiInjection system (per year) 20% 40% 20% 40% 10% 30% 5% 20% 5% 20% 10% 40%

Failure of injector nozzle (per year) 5% 20% 5% 20% 10% 40% 15% 40% 10% 25% 40% 80%

Major failure of injection pump (per 5 years) 10% 30% 5% 20% 15% 35% 20% 50% 25% 55% 100% 200%

Minor failure due to deposits (per 5 years) 0% 0% 0% 0% 25% 50% 5% 20% 0% 0% 50% 100%

Major failure due to deposits (per 5 years) 20% 40% 15% 30% 0% 20% 0% 20% 40% 100% 0% 30%

Major failure due to lube oil polym. (per 5 years) 30% 60% 25% 50% 0% 0% 0% 0% 30% 70% 0% 0%

Individual Power Generation

Estimated Probabilitites , , r

) ) , s o I I ) I s " t t W W W a l "

D " D a n n k a k I k I o D ) a d ( d ( s ( r o o " 4 n s " c e i i l 7 e 7 r e 7 r s r l i t t t t ) s r a , e n ) ) e a a o a o o p p 3 e t t d t s o e Rural 1 2 n u s s u t a a i n i a i a e a a s e i g l l s s e r e r s t r d i d i i u s s u C t s e t s e p e a a u h Applications 2/2 a u W " u a u a a n " n b n " C b k e e " d e C C " g g a g 7 lucky unlucky lucky unlucky lucky unlucky lucky unlucky

Deposits in the fuel supply (per year) 10% 30% 10% 30% 15% 35% 10% 30%

Minor failure ofiInjection system (per year) 5% 20% 5% 20% 5% 20% 0% 10%

Failure of injector nozzle (per year) 5% 15% 5% 15% 5% 15% 5% 10%

Major failure of injection pump (per 5 years) 15% 30% 20% 35% 20% 35% 5% 15%

Minor failure due to deposits (per 5 years) 15% 40% 0% 0% 0% 0% 5% 15%

Major failure due to deposits (per 5 years) 0% 10% 50% 100% 70% 150% 0% 10% Major failure due to lube oil polym. (per 5 years) 0% 0% 50% 120% 150% 300% 0% 0% Appendix 173

Appendix 3 - Algorithms in Calculation of Financial Consequences

1 BCD E F J L O 2 Application: 3 Use of CNO Use of Diesel

4 "lucky case" "unlucky case" 5 6 Extra Cost per litre =J9/J8 =L9/L8 7 8 Total Amount of Diesel Saved [l/year] =O11 =O11 9 Total extra Expenditure for CNO use [USD/year] =J17-O17 =L17-O17 10 1211 Total Fuel Consumption per year [l/y] =J23*(J13*J15) =L23*(L13*L15) =O13*O15 1413 km or running hours per year [km/y] [h/y] =O13 =O13 1615 fuel consumption [l/km], [l/h] =O15 =O15 1817 Total other cost per year [USD/y] =J19+J25+J32+J38+J64 =L19+L25+L32+L38+L64 =O19+O25+O32+O38+O64 2019 Cost for additional fuel (CNO) needed [USD/y] =J21*(J23-1)*J13*J15 =L21*(L23-1)*L13*L15 0 2221 Estimated Price Coconut oil [USD/l] 2423 Factor for increased consumption of CNO 2625 Initial Investment Cost for CNO use per year [USD/y] =(J27+J28+J29+J30)/J34 =(L27+L28+L29+L30)/L34 0 27 Cost for engine modification [USD] 28 Cost for additional filtration equipment [USD] 29 Cost for additional fuel supply infrastructure [USD] 3130 Cost for external consultations [USD] 3332 Depreciation cost per year [USD/y] =J36/J34 =L36/L34 =O36/O34 3534 expected residual lifetime [y] 3736 Present value of engine/vehicle [USD] =O36 =O36 3938 Maintenance Cost per year [USD/y] =J40+J48+J56 =L40+L48+L56 =O40+O48+O56 40 Cost for engine oil + filter exchange per year [USD/y] =J13/J42*J44 =L13/L42*L44 =O13/O42*O44 41 4342 every ....km, running hours [km], [h] 44 Costs: Total [USD] =J45+J46 =L45+L46 =O45+O46 45 Spare Part [USD] 4746 Labour [USD] 48 Cost for fuel filter changes per year [USD/y] =J13/J50*J52 =L13/L50*L52 =O13/O50*O52 49 5150 Fuel filter change every ....km, running hours [km], [h] 52 Costs: Total [USD] =J53+J54 =L53+L54 =O53+O54 53 Spare Part [USD] 5554 Labour [USD] 56 Cost for cleaning of Injector Nozzle per year [USD/y] =J13/J58*J60 =L13/L58*L60 =O13/O58*O60 57 5958 every ....km, running hours [km], [h] 60 Costs: Total [USD] =J61+J62 =L61+L62 =O61+O62 61 Spare Part [USD] 6362 6564 Repair Costs per year [USD/y] =J74+J84+J94+J104+J114+J124+J6 =L74+L84+L94+L104+L114+L124+L66 66 Cost for Cleaning of Fuel Supply System per year [USD/y] =J68*J70 =L68*L70 67 6968 Probability of Incident per year: 70 Costs: Total [USD] =J71+J72 =L71+L72 71 Spare Part [USD] 7372 Labour [USD] 74 Costs due to Failure of Injector Nozzle per year [USD/y] =J76*J78 =L76*L78 75 7776 Probability of Incident per year: 78 Costs: Total [USD] =J79+J80+J81+J82 =L79+L80+L81+L82 79 Spare Part [USD] 80 Labour [USD] 81 Transportation of Engine [USD] 8382 Travel of Technician [USD] 84 Cost due to minor failure of injection pump per year [USD/y] =J86*J88 =L86*L88 85 8786 Probability of Incident per year: 88 Costs: Total [USD] =J89+J90+J91+J92 =L89+L90+L91+L92 89 Spare Part [USD] 90 Labour [USD] 91 Transportation of Engine [USD] 9392 Travel of Technician [USD] 94 Cost due to major failure of injection pump per year [USD/y] =J96*J98 =L96*L98 95 9796 Probability of Incident per year: 98 Costs: Total [USD] =J99+J100+J101+J102 =L99+L100+L101+L102 99 Spare Part [USD] 100 Labour [USD] 101 Transportation of Engine [USD] 103102 Travel of Technician [USD] 104 Cost due to minor failure due to deposits [USD/y] =J106*J108 =L106*L108 105 107106 Probability of Incident per year: 108 Costs: Total [USD] =J109+J110+J111+J112 =L109+L110+L111+L112 109 Spare Part [USD] 110 Labour [USD] 111 Transportation of Engine [USD] 113112 Travel of Technician [USD] 114 Cost due to major failure due to deposits [USD/y] =J116*J118 =L116*L118 115 117116 Probability of Incident per year: 118 Costs: Total [USD] =J119+J120+J121+J122 =L119+L120+L121+L122 119 Spare Part [USD] 120 Labour [USD] 121 Transportation of Engine [USD] 123122 Travel of Technician [USD] 124 Cost due to lube oil Polymerisation [USD/y] =J126*J128 =L126*L128 125 127126 Probability of Incident per year: 128 Costs: Total [USD] =J129+J130+J131+J132 =L129+L130+L131+L132 129 Spare Part [USD] 130 Labour [USD] 131 Transportation of Engine [USD] 132 Travel of Technician [USD] 174 Appendix

Appendix 4 - Complete Calculation of Financial Consequences

Urban – Individual Land Transportation – Case 1

Application: Urban Individual Land Transporation Use of CNO Use of Diesel Case 1) "Long Distance Commuter", adapted engine, adapted Utilisation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.393 0.901 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 1260.00 1260.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 495 1,136 3: own estimations

Total fuel consumption per year [l/year] 1,323 1,386 1,260 Source of Data Comments km or running hours per year [km/year] [h/year] 18000 18000 18,000 km 2* 30 km per day, 300 days/year Fuel consumption [l/km], [l/h] 0.07 0.07 0.07 l/km [HER95] Total other cost per year [USD/y] 603 1,244 108 Cost for additional fuel (CNO) needed [USD/y] 33 67 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 204 216 108 Cost for engine oil + filter exchange per year [USD/y] 168 168 84 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 7,500 7,500 15,000 1 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 36 48 24 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 3 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 132 728 Cost for cleaning of fuel supply system per year [USD/y] 20 60 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 30% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 28 110 Repair done: Exchange injector Probability of incident per year: 5% 20% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 18 70 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 34 102 Repair done: Replace injection pump Probability of incident per year: 2% 6% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 33 66 Repair done: Take apart & clean respective parts Probability of incident per year: 2% 4% Costs: Total [USD] 1,650 1,650 Spare part [USD] 150 150 3 Labour [USD] 1,500 1,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 320 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 175

Urban – Individual Land Transportation – Case 2

Application: Urban Individual Land Transporation Use of CNO Use of Diesel Case 2) not adapted car (IDI) "long distance commuter" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.455 1.296 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 1260.00 1260.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 574 1,634 3: own estimations

Total fuel consumption per year [l/year] 1,323 1,386 1,260 Source of Data Comments km or running hours per year [km/year] [h/year] 18000 18000 18,000 km 2* 30k m per day, 300 days/year Fuel consumption [l/km], [l/h] 0.07 0.07 0.07 l/km [HER95] Total other cost per year [USD/y] 682 1,742 108 Cost for additional fuel (CNO) needed [USD/y] 33 67 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 0 0 0 Cost for engine modification [USD] 0 0 Cost for additional filtration equipment [USD] 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 216 240 108 Cost for engine oil + filter exchange per year [USD/y] 168 168 84 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 7,500 7,500 15,000 1 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 48 72 24 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 15,000 10,000 30,000 3 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 433 1,435 Cost for cleaning of fuel supply system per year [USD/y] 30 70 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 15% 35% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 55 138 Repair done: Exchange injector Probability of incident per year: 10% 25% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 70 175 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 20% 50% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 68 170 Repair done: Replace injection pump Probability of incident per year: 4% 10% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 50 83 Repair done: Take apart & clean respective parts Probability of incident per year: 3% 5% Costs: Total [USD] 1,650 1,650 Spare part [USD] 150 150 3 Labour [USD] 1,500 1,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 160 480 Repair done: Replace engine Probability of incident per year: 1% 3% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 320 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 176 Appendix

Urban – Individual Land Transportation – Case 3

Application: Urban Individual Land Transporation Use of CNO Use of Diesel Case 3) adapted car (IDI), "city user" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 2.092 4.048 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 787.50 787.50 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 1,647 3,187 3: own estimations

Total fuel consumption per year [l/year] 827 866 788 Source of Data Comments km or running hours per year [km/year] [h/year] 10500 10500 10,500 km ~35 km per day, 300 days/year Fuel consumption [l/km], [l/h] 0.08 0.08 0.08 l/km [HER95] Total other cost per year [USD/y] 1,710 3,250 63 Cost for additional fuel (CNO) needed [USD/y] 21 42 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06b] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 70 77 63 Cost for engine oil + filter exchange per year [USD/y] 49 49 49 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 15,000 15,000 15,000 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 21 28 14 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 1,386 2,899 Cost for cleaning of fuel supply system per year [USD/y] 10 50 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 5% 25% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 28 83 Repair done: Exchange injector Probability of incident per year: 5% 15% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 18 70 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 51 136 Repair done: Replace injection pump Probability of incident per year: 3% 8% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,650 1,650 Spare part [USD] 150 150 3 Labour [USD] 1,500 1,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 640 1,280 Repair done: Replace engine Probability of incident per year: 4% 8% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 640 1,280 Repair done: Replace engine Probability of incident per year: 4% 8% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 177

Urban – Individual Land Transportation – Case 4

Application: Urban Individual Land Transporation Use of CNO Use of Diesel Case 4) not adapted car (DI), "city user" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 5.563 10.776 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 708.75 708.75 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 3,943 7,637 3: own estimations

Total fuel consumption per year [l/year] 744 780 709 Source of Data Comments km or running hours per year [km/year] [h/year] 10500 10500 10,500 km ~35 km per day, 300 days/year Fuel consumption [l/km], [l/h] 0.07 0.07 0.07 l/km (10% lower then IDI) Total other cost per year [USD/y] 4,006 7,700 63 Cost for additional fuel (CNO) needed [USD/y] 19 37 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 0 0 0 Cost for engine modification [USD] 0 0 0 Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 77 91 63 Cost for engine oil + filter exchange per year [USD/y] 49 49 49 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 15,000 15,000 15,000 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 28 42 14 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 15,000 10,000 30,000 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 3,910 7,572 Cost for cleaning of fuel supply system per year [USD/y] 20 60 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 30% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 55 110 Repair done: Exchange injector Probability of incident per year: 10% 20% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 70 175 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 20% 50% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 85 187 Repair done: Replace injection pump Probability of incident per year: 5% 11% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,650 1,650 Spare part [USD] 150 150 3 Labour [USD] 1,500 1,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 1,280 2,240 Repair done: Replace engine Probability of incident per year: 8% 14% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 2,400 4,800 Repair done: Replace engine Probability of incident per year: 15% 30% Costs: Total [USD] 16,000 16,000 Spare part [USD] 15,000 15,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0

178 Appendix

Urban – Professional Land Transportation – Case 1

Application: Urban Professional Land Transportation Use of CNO Use of Diesel Case 1) adapted small truck (IDI), "adapted utilisation" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.245 0.512 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 3240.00 3240.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 794 1,659 3: own estimations

Total fuel consumption per year [l/year] 3,402 3,564 3,240 Source of Data Comments km or running hours per year [km/year] [h/year] 36000 36000 36,000 km ~120 km per day, ~300 days per year Fuel consumption [l/km], [l/h] 0.09 0.09 0.09 l/km [HER95] Total other cost per year [USD/y] 1,010 1,875 216 Cost for additional fuel (CNO) needed [USD/y] 86 171 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 408 432 216 Cost for engine oil + filter exchange per year [USD/y] 336 336 168 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 7,500 7,500 15,000 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 72 96 48 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 284 1,039 0 Cost for cleaning of fuel supply system per year [USD/y] 20 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 40% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 83 165 Repair done: Exchange injector Probability of incident per year: 15% 30% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 35 88 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 10% 25% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 68 170 Repair done: Replace injection pump Probability of incident per year: 4% 10% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 78 156 Repair done: Take apart & clean respective parts Probability of incident per year: 4% 8% Costs: Total [USD] 1,950 1,950 Spare part [USD] 150 150 3 Labour [USD] 1,800 1,800 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 380 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 179

Urban – Professional Land Transportation – Case 2

Application: Urban Professional Land Transportation Use of CNO Use of Diesel Case 2) adapted small truck (IDI), "business as usual" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 1.182 2.317 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 3375.00 3375.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 3,990 7,821 3: own estimations

Total fuel consumption per year [l/year] 3,544 3,713 3,375 Source of Data Comments km or running hours per year [km/year] [h/year] 37500 37500 37,500 km ~120 km per day (+idle speed running ~5km equivalent), ~300 days per year Fuel consumption [l/km], [l/h] 0.09 0.09 0.09 l/km [HER95] Total other cost per year [USD/y] 4,215 8,046 225 Cost for additional fuel (CNO) needed [USD/y] 89 178 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 250 275 225 Cost for engine oil + filter exchange per year [USD/y] 175 175 175 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 15,000 15,000 15,000 Costs: Total [USD] 70 70 70 Spare part [USD] 50 50 50 1 Labour [USD] 20 20 20 1 Cost for fuel filter changes per year [USD/y] 75 100 50 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 1 Labour [USD] 15 15 15 1 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 3,643 7,360 Cost for cleaning of fuel supply system per year [USD/y] 20 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 40% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 1 Costs due to failure of injector nozzle per year [USD/y] 83 165 Repair done: Exchange injector Probability of incident per year: 15% 30% Costs: Total [USD] 550 550 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 35 88 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 10% 25% Costs: Total [USD] 350 350 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 85 187 Repair done: Replace injection pump Probability of incident per year: 5% 11% Costs: Total [USD] 1,700 1,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,950 1,950 Spare part [USD] 150 150 3 Labour [USD] 1,800 1,800 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 2,280 3,800 Repair done: Replace engine Probability of incident per year: 12% 20% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 1,140 3,040 Repair done: Replace engine Probability of incident per year: 6% 16% Costs: Total [USD] 19,000 19,000 Spare part [USD] 18,000 18,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 180 Appendix

Urban – Heavy-Duty Machinery Case 1

Application: Urban Heavy Duty Use of CNO Use of Diesel

Case 1) adapted engine (IDI), "transportation" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.108 0.215 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 15750.00 15750.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 1,696 3,380 3: own estimations

Total fuel consumption per year [l/year] 16,538 17,325 15,750 Source of Data Comments km or running hours per year [km/year] [h/year] 45000 45000 45,000 km ~150 km per day, 300 days a year Fuel consumption [l/km], [l/h] 0.35 0.35 0.35 l/km 120 kW engine Total other cost per year [USD/y] 1,989 3,673 293 Cost for additional fuel (CNO) needed [USD/y] 416 832 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 650 650 0 Cost for engine modification [USD] 3,900 3,900 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 559 585 293 Cost for engine oil + filter exchange per year [USD/y] 480 480 240 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 7,500 7,500 15,000 Costs: Total [USD] 80 80 80 Spare part [USD] 70 70 70 1 Labour [USD] 10 10 10 2 (carried out by machine operators) Cost for fuel filter changes per year [USD/y] 79 105 53 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 20,000 15,000 30,000 Costs: Total [USD] 35 35 35 Spare part [USD] 25 25 25 1 Labour [USD] 10 10 10 2 (carried out by machine operators) Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 364 1,606 Cost for cleaning of fuel supply system per year [USD/y] 20 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 40% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 2 Costs due to failure of injector nozzle per year [USD/y] 113 300 Repair done: Exchange injector Probability of incident per year: 15% 40% Costs: Total [USD] 750 750 Spare part [USD] 600 600 2 4* ~150 USD Labour [USD] 150 150 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 18 70 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 350 350 Spare part [USD] 50 50 2 Labour [USD] 300 300 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 160 320 Repair done: Replace injection pump Probability of incident per year: 5% 10% Costs: Total [USD] 3,200 3,200 Spare part [USD] 3,000 3,000 2 Labour [USD] 200 200 3 Transportation of engine [USD] Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 54 216 Repair done: Take apart & clean respective parts Probability of incident per year: 2% 8% Costs: Total [USD] 2,700 2,700 Spare part [USD] 200 200 3 Labour [USD] 2,500 2,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 620 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 31,000 31,000 Spare part [USD] 30,000 30,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 31,000 31,000 Spare part [USD] 30,000 30,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 181

Urban – Heavy-Duty Machinery Case 2

Application: Urban Heavy Duty Use of CNO Use of Diesel

Case 2) adapted engine (IDI), "construction" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.624 1.126 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 10080.00 10080.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 6,287 11,352 3: own estimations

Total fuel consumption per year [l/year] 10,584 11,088 10,080 Source of Data Comments km or running hours per year [km/year] [h/year] 1050 1050 1,050 h utilisation ~3.5 hours per day, 300 day per year Fuel consumption [l/km], [l/h] 9.60 9.60 9.60 l/h 120 kW engine, 20% average load, fuel eff; ~0.4 l/kWh Total other cost per year [USD/y] 6,696 11,762 410 Cost for additional fuel (CNO) needed [USD/y] 266 532 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 650 650 0 Cost for engine modification [USD] 3,900 3,900 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 446 483 410 Cost for engine oil + filter exchange per year [USD/y] 336 336 336 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 250 Costs: Total [USD] 80 80 80 Spare part [USD] 70 70 70 1 Labour [USD] 10 10 10 2 (carried out by the machine operators) Cost for fuel filter changes per year [USD/y] 110 147 74 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 35 35 35 Spare part [USD] 25 25 25 1 Labour [USD] 10 10 10 2 (carried out by the machine operators) Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 5,334 10,097 Cost for cleaning of fuel supply system per year [USD/y] 20 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 40% Costs: Total [USD] 200 200 Spare part [USD] 0 0 Labour [USD] 200 200 2 Costs due to failure of injector nozzle per year [USD/y] 113 263 Repair done: Exchange injector Probability of incident per year: 15% 35% Costs: Total [USD] 750 750 Spare part [USD] 600 600 2 4* ~150 USD Labour [USD] 150 150 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 18 70 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 350 350 Spare part [USD] 50 50 2 Labour [USD] 300 300 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 224 384 Repair done: Replace injection pump Probability of incident per year: 7% 12% Costs: Total [USD] 3,200 3,200 Spare part [USD] 3,000 3,000 2 Labour [USD] 200 200 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 2,700 2,700 Spare part [USD] 200 200 3 Labour [USD] 2,500 2,500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 3,100 5,580 Repair done: Replace engine Probability of incident per year: 10% 18% Costs: Total [USD] 31,000 31,000 Spare part [USD] 30,000 30,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 1,860 3,720 Repair done: Replace engine Probability of incident per year: 6% 12% Costs: Total [USD] 31,000 31,000 Spare part [USD] 30,000 30,000 2;3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 182 Appendix

Urban – Sea Transportation

Application: Sea Transport Use of CNO Use of Diesel

Sea Transportation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.099 0.208 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 52500.00 52500.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 5,176 10,913 3: own estimations

Total fuel consumption per year [l/year] 55,125 57,750 52,500 Source of Data Comments km or running hours per year [km/year] [h/year] 500 500 500 h ~25 return travels per year, 10 hours one way Fuel consumption [l/km], [l/h] 105.00 105.00 105.00 l/h Engine ~400 kW, average load 75%, fuel efficiency 0.35 l/kWh Total other cost per year [USD/y] 5,688 11,425 513 Cost for additional fuel (CNO) needed [USD/y] 1,386 2,772 0 Estimated price coconut oil [USD/l] 0.528 0.528 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 2,500 2,500 0 Cost for engine modification [USD] 5,000 5,000 0 3 Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 10,000 10,000 0 3 (Installation of extra Tank ~10,000 litre) Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 1,009 1,025 513 Cost for engine oil + filter exchange per year [USD/y] 760 760 380 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 500 Costs: Total [USD] 380 380 380 Spare part [USD] 350 350 350 3 ~140 liter oil, 2 USD/litre ; Oil Filter 2*35 USD Labour [USD] 30 30 30 3 Cost for fuel filter changes per year [USD/y] 49 65 33 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 667 500 1,000 Costs: Total [USD] 65 65 65 Spare part [USD] 50 50 50 2 Labour [USD] 15 15 15 3 Cost for cleaning of injector nozzle per year [USD/y] 200 200 100 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 250 250 500 Costs: Total [USD] 100 100 100 Labour [USD] 100 100 100 3

Repair costs per year [USD/y] 794 5,128 Cost for cleaning of fuel supply system per year [USD/y] 80 200 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 20% 50% Costs: Total [USD] 400 400 Spare part [USD] 0 0 Labour [USD] 400 400 3 Costs due to failure of injector nozzle per year [USD/y] 70 280 Repair done: Exchange injector Probability of incident per year: 10% 40% Costs: Total [USD] 700 700 Spare part [USD] 600 600 3 Labour [USD] 100 100 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 28 110 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 550 550 Spare part [USD] 50 50 3 Labour [USD] 500 500 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 510 1,326 Repair done: Replace injection pump Probability of incident per year: 5% 13% Costs: Total [USD] 10,200 10,200 Spare part [USD] 10,000 10,000 1 Labour [USD] 200 200 3 Transportation of engine [USD] Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 106 212 Repair done: Take apart & clean respective parts Probability of incident per year: 2% 4% Costs: Total [USD] 5,300 5,300 Spare part [USD] 300 300 3 Labour [USD] 5,000 5,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 3,000 Repair done: Replace engine Probability of incident per year: 0% 3% Costs: Total [USD] 100,000 100,000 Spare part [USD] 100,000 100,000 3 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 100,000 100,000 Spare part [USD] 100,000 100,000 3 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 183

Urban – Large-Scale Power Generation - Case 1

Application: Power Generation Use of CNO Use of Diesel

Case 1) new, 4 MW engine (100% CNO)l "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.048 0.061 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 4200000.00 4200000.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 200,808 255,286 3: own estimations

Total fuel consumption per year [l/year] 4,494,000 4,578,000 4,200,000 Source of Data Comments km or running hours per year [km/year] [h/year] 6000 6000 6,000 ~30% downtime, 24 hours, 7 days a week when running Fuel consumption [l/km], [l/h] 700.00 700.00 700.00 4 MW engine, average load ~70%, fuel efficiency 0.25 l/kWh Total other cost per year [USD/y] 207,408 261,886 6,600 Cost for additional fuel (CNO) needed [USD/y] 118,188 151,956 0 Estimated price coconut oil [USD/l] 0.402 0.402 0 Factor for increased consumption of CNO 1.07 1.09 0 Initial investment cost for CNO use per year [USD/y] 48,750 48,750 0 Cost for engine modification [USD] 0 0 0 Cost for additional filtration equipment [USD] 400,000 400,000 0 [NEU06] new fuel pretreatment system ~100 USD/kW installed Cost for additional fuel supply infrastructure [USD] 87,500 87,500 0 tank~350,000 litre, 0.25 USD/l Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 10.0 10.0 10.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 9,910 13,200 6,600 Cost for engine oil + filter exchange per year [USD/y] 0 0 0 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 1 1 1 same as Diesel [NEU06] Costs: Total [USD] 000 Spare part [USD] 0 0 0 Labour [USD] 0 0 0 Cost for fuel filter changes per year [USD/y] 9,910 13,200 6,600 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 550 550 550 Spare part [USD] 500 500 500 3 Labour [USD] 50 50 50 3 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 not necessary [NEU06] Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 30,560 47,980 Cost for cleaning of fuel supply system per year [USD/y] 500 1,000 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 50% 100% Costs: Total [USD] 1,000 1,000 Spare part [USD] 0 0 Labour [USD] 1,000 1,000 3 Costs due to failure of injector nozzle per year [USD/y] 9,900 16,500 Repair done: Exchange injector with diesel 2 times a year [BAU06] Probability of incident per year: 150% 250% with CNO ~ twice as often [NEU06], [GEH06] Costs: Total [USD] 6,600 6,600 Spare part [USD] 6,000 6,000 12 cylinders, 500 USD each [NEU06][BAU06] Labour [USD] 600 600 3 3 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 0 0 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 19,680 29,520 Repair done: Replace injection pump with diesel every 2 years [BAU06] Probability of incident per year: 40% 60% with CNO ~ twice as often [NEU06], [GEH06] Costs: Total [USD] 49,200 49,200 Spare part [USD] 48,000 48,000 12 cylinders, 4000 USD each [NEU06][BAU06] Labour [USD] 1,200 1,200 3 6 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 480 960 Repair done: Take apart & clean respective parts Probability of incident per year: 20% 40% Costs: Total [USD] 2,400 2,400 (cleaning comb. chamber) Spare part [USD] 0 0 Labour [USD] 2,400 2,400 3 12 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% does not apply Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% does not apply Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 184 Appendix

Urban – Large-Scale Power Generation - Case 2

Application: Power Generation Use of CNO Use of Diesel

Case 2) old, 2.5 MW engine (100% CNO) "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.054 0.067 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 3600000.00 3600000.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 193,981 241,915 3: own estimations

Total fuel consumption per year [l/year] 3,852,000 3,924,000 3,600,000 Source of Data Comments km or running hours per year [km/year] [h/year] 6000 6000 6,000 ~30% downtime, 24 hours, 7 days a week when running Fuel consumption [l/km], [l/h] 600.00 600.00 600.00 2.5 MW engine, average load ~80%, fuel efficiency 0.3 l/kWh, 100% CNO Total other cost per year [USD/y] 235,381 283,315 41,400 Cost for additional fuel (CNO) needed [USD/y] 101,304 130,248 0 Estimated price coconut oil [USD/l] 0.402 0.402 0 Factor for increased consumption of CNO 1.07 1.09 0 Initial investment cost for CNO use per year [USD/y] 29,167 29,167 0 Cost for engine modification [USD] 0 0 0 Cost for additional filtration equipment [USD] 100,000 100,000 0 3 Cost for additional fuel supply infrastructure [USD] 75,000 75,000 0 ~300,000 litre tank , 0.25 USD/l Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 (old engine) Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 79,510 82,800 41,400 Cost for engine oil + filter exchange per year [USD/y] 68,400 68,400 34,200 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 500 3 precautionary measure: 1/2 of exchange intervall Costs: Total [USD] 2,850 2,850 2,850 Spare part [USD] 2,750 2,750 2,750 Lubricant oil: ~0.5% of fuel consumption, 1.5 USD/litre (large bulk price); Labour [USD] 100 100 100 3 oil filter: 500 USD Cost for fuel filter changes per year [USD/y] 9,910 13,200 6,600 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 550 550 550 Spare part [USD] 500 500 500 3 Labour [USD] 50 50 50 3 Cost for cleaning of injector nozzle per year [USD/y] 1,200 1,200 600 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1,500 1,500 3,000 3 precautionary measure, based on exp.of MEC with HFO Costs: Total [USD] 300 300 300 Labour [USD] 300 300 300 3 1.5 days work, 2 mechanics

Repair costs per year [USD/y] 25,400 41,100 0 Cost for cleaning of fuel supply system per year [USD/y] 500 1,000 0 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 50% 100% 0% Costs: Total [USD] 1,000 1,000 0 Spare part [USD] 0 0 0 Labour [USD] 1,000 1,000 0 3 Costs due to failure of injector nozzle per year [USD/y] 8,100 13,500 0 Repair done: Exchange injector with Diesel 2 times a year [BAU06] Probability of incident per year: 150% 250% with CNO ~ twice as often [NEU06], [GEH06] Costs: Total [USD] 5,400 5,400 Spare part [USD] 5,000 5,000 10 cylinders, 500 USD each [NEU06][BAU06] Labour [USD] 400 400 3 2 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 0 0 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 16,400 24,600 Repair done: Replace injection pump with diesel every 2 years [BAU06] Probability of incident per year: 40% 60% with CNO ~ twice as often [NEU06], [GEH06] Costs: Total [USD] 41,000 41,000 Spare part [USD] 40,000 40,000 10 cylinders, 4000 USD each [NEU06][BAU06] Labour [USD] 1,000 1,000 3 5 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 400 2,000 Repair done: Take apart & clean respective parts Probability of incident per year: 20% 100% Costs: Total [USD] 2,000 2,000 (cleaning comb. chamber) Spare part [USD] 0 Labour [USD] 2,000 2,000 3 10 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Appendix 185

Urban – Large-Scale Power Generation - Case 3

Application: Power Generation Use of CNO Use of Diesel

Case 3) old, 2.5 MW engine (20% CNO) "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.078 0.099 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 720000.00 720000.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 56,174 71,563 3: own estimations

Total fuel consumption per year [l/year] 770,400 784,800 720,000 Source of Data Comments km or running hours per year [km/year] [h/year] 6000 6000 6,000 ~30% downtime, 24 hours, 7 days a week when running Fuel consumption [l/km], [l/h] 120.00 120.00 120.00 2.5 MW engine, average load ~80%, fuel efficiency 0.3 l/kWh, 20% Coconut oil Total other cost per year [USD/y] 97,574 112,963 41,400 Cost for additional fuel (CNO) needed [USD/y] 20,261 26,050 0 Estimated price coconut oil [USD/l] 0.402 0.402 0 Factor for increased consumption of CNO 1.07 1.09 0 Initial investment cost for CNO use per year [USD/y] 13,333 13,333 0 Cost for engine modification [USD] 0 0 0 Cost for additional filtration equipment [USD] 50,000 50,000 0 3 Cost for additional fuel supply infrastructure [USD] 15,000 15,000 0 ~60,000 litre tank (0.25 USD/l) Other cost [USD] 15,000 15,000 0 3 mixing equipment Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 (old engine) Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 55,120 59,520 41,400 Cost for engine oil + filter exchange per year [USD/y] 45,600 45,600 34,200 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 375 375 500 3 precautionary measure: 3/4 of exchange intervall Costs: Total [USD] 2,850 2,850 2,850 Spare part [USD] 2,750 2,750 2,750 Lubricant oil: ~0.5% of fuel consumption, 1.5 USD/litre (large bulk price); Labour [USD] 100 100 100 3 oil filter: 500 USD Cost for fuel filter changes per year [USD/y] 8,800 13,200 6,600 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 375 250 500 Costs: Total [USD] 550 550 550 Spare part [USD] 500 500 500 3 Labour [USD] 50 50 50 3 Cost for cleaning of injector nozzle per year [USD/y] 720 720 600 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 2,500 2,500 3,000 3 precautionary measure Costs: Total [USD] 300 300 300 Labour [USD] 300 300 300 3 1.5 days work, 2 mechanics

Repair costs per year [USD/y] 8,860 14,060 Cost for cleaning of fuel supply system per year [USD/y] 300 600 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 30% 60% Costs: Total [USD] 1,000 1,000 Spare part [USD] 0 0 Labour [USD] 1,000 1,000 3 Costs due to failure of injector nozzle per year [USD/y] 2,700 4,860 Repair done: Exchange injector Probability of incident per year: 50% 90% Costs: Total [USD] 5,400 5,400 Spare part [USD] 5,000 5,000 [NEU06][BAU06] 10 cylinders, 500 USD each Labour [USD] 400 400 3 2 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 0 0 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 5,740 8,200 Repair done: Replace injection pump Probability of incident per year: 14% 20% Costs: Total [USD] 41,000 41,000 Spare part [USD] 40,000 40,000 [NEU06][BAU06] 10 cylinders, 4000 USD each Labour [USD] 1,000 1,000 3 5 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 120 400 Repair done: Take apart & clean respective parts Probability of incident per year: 6% 20% Costs: Total [USD] 2,000 2,000 (cleaning comb. chamber) Spare part [USD] 0 0 Labour [USD] 2,000 2,000 3 10 days work, 2 mechanics Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 186 Appendix

Rural – Land Transportation

Application: Rural Land Transportation Use of CNO Use of Diesel

"lucky case" "unlucky case"

Extra cost per litre [USD/l] 6.009 11.825 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 372.30 372.30 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 2,237 4,403 3: own estimations

Total fuel consumption per year [l/year] 391 410 372 Source of Data Comments km or running hours per year [km/year] [h/year] 4380 4380 4,380 km average ~12 km per day, 365 days per year Fuel consumption [l/km], [l/h] 0.09 0.09 0.09 l/km [HER95] Total other cost per year [USD/y] 2,265 4,430 28 Cost for additional fuel (CNO) needed [USD/y] 15 29 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 33 38 28 Cost for engine oil + filter exchange per year [USD/y] 18 18 18 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 15,000 15,000 15,000 (no extra maintenance is done) Costs: Total [USD] 60 60 60 Spare part [USD] 50 50 50 1 Labour [USD] 10 10 10 3 (done by local labour) Cost for fuel filter changes per year [USD/y] 15 20 10 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 10,000 7,500 15,000 (diesel case: reduced intervall due to remote environment) Costs: Total [USD] 35 35 35 Spare part [USD] 25 25 25 1 Labour [USD] 10 10 10 3 (done by local labour) Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 1,984 4,130 Cost for cleaning of fuel supply system per year [USD/y] 8 18 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 15% 35% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 (done by local labour) Costs due to failure of injector nozzle per year [USD/y] 53 210 Repair done: Exchange injector Probability of incident per year: 5% 20% Costs: Total [USD] 1,050 1,050 Spare part [USD] 400 400 1 4 * ~100 USD Labour [USD] 150 150 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to minor failure of injection system per year [USD/y] 170 340 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 20% 40% Costs: Total [USD] 850 850 Spare part [USD] 50 50 1 Labour [USD] 300 300 1 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 54 162 Repair done: Replace injection pump Probability of incident per year: 2% 6% Costs: Total [USD] 2,700 2,700 Spare part [USD] 1,500 1,500 1 Labour [USD] 200 200 1 Transportation of engine [USD] Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] Spare part [USD] Labour [USD] Transportation of engine [USD] Travel of technician [USD] Cost due to major failure due to deposits [USD/y] 680 1,360 Repair done: Replace engine Probability of incident per year: 4% 8% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 2 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 1,020 2,040 Repair done: Replace engine Probability of incident per year: 6% 12% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 2 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Appendix 187

Rural – Heavy Duty Machinery

Application: Rural Heavy Duty Use of CNO Use of Diesel

"lucky case" "unlucky case"

Extra cost per litre [USD/l] 3.500 6.576 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 384.00 384.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 1,344 2,525 3: own estimations

Total fuel consumption per year [l/year] 403 422 384 Source of Data Comments km or running hours per year [km/year] [h/year] 400 400 400 ~8 hours per week Fuel consumption [l/km], [l/h] 0.96 0.96 0.96 12 kW engine, avg; Load 20%, fuel eff; 0.4 l/kWh Total other cost per year [USD/y] 1,496 2,677 152 Cost for additional fuel (CNO) needed [USD/y] 15 30 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 208 208 152 Cost for engine oil + filter exchange per year [USD/y] 96 96 96 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 250 (no extra maintenance is done) Costs: Total [USD] 60 60 60 Spare part [USD] 50 50 50 3 Labour [USD] 10 10 10 3 (done by local labour) Cost for fuel filter changes per year [USD/y] 112 112 56 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 125 125 250 diesel case: reduced intervall due to environment Costs: Total [USD] 35 35 35 Spare part [USD] 25 25 25 1 Labour [USD] 10 10 10 3 (done by local labour) Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 (no extra maintenance is done) Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 1,040 2,206 Cost for cleaning of fuel supply system per year [USD/y] 8 18 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 15% 35% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 (done by local labour) Costs due to failure of injector nozzle per year [USD/y] 40 160 Repair done: Exchange injector Probability of incident per year: 5% 20% Costs: Total [USD] 800 800 Spare part [USD] 200 200 2 2*~100 USD Labour [USD] 100 100 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to minor failure of injection system per year [USD/y] 170 340 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 20% 40% Costs: Total [USD] 850 850 Spare part [USD] 50 50 2 Labour [USD] 300 300 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 22 88 Repair done: Replace injection pump Probability of incident per year: 1% 4% Costs: Total [USD] 2,200 2,200 Spare part [USD] 1,000 1,000 3 Labour [USD] 200 200 2 Transportation of engine [USD] 0 0 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 00 Spare part [USD] 0 0 Labour [USD] 0 0 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 300 600 Repair done: Replace engine Probability of incident per year: 3% 6% Costs: Total [USD] 10,000 10,000 Spare part [USD] 8,000 8,000 3 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 500 1,000 Repair done: Replace engine Probability of incident per year: 5% 10% Costs: Total [USD] 10,000 10,000 Spare part [USD] 8,000 8,000 3 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) 188 Appendix

Rural – Sea Transportation

Application: Local Sea Transportation Use of CNO Use of Diesel

"lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.272 0.643 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 3360.00 3360.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 912 2,159 3: own estimations

Total fuel consumption per year [l/year] 3,528 3,696 3,360 Source of Data Comments km or running hours per year [km/year] [h/year] 1200 1200 1,200 2*2 hours per return travel, 300 days a year Fuel consumption [l/km], [l/h] 2.80 2.80 2.80 10 kW Engine, ~80%load, fuel efficiency ~0.35 l/kWh Total other cost per year [USD/y] 1,140 2,387 228 Cost for additional fuel (CNO) needed [USD/y] 133 266 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 (bulk purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 267 267 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 200 200 0 3 2*210 litre plastic tank Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 414 456 228 Cost for engine oil + filter exchange per year [USD/y] 288 288 144 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 500 Costs: Total [USD] 60 60 60 Spare part [USD] 50 50 50 2 Labour [USD] 10 10 10 3 (done by local labour) Cost for fuel filter changes per year [USD/y] 126 168 84 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 35 35 35 Spare part [USD] 25 25 25 1 Labour [USD] 10 10 10 3 (done by local labour) Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD]

Repair costs per year [USD/y] 327 1,399 Cost for cleaning of fuel supply system per year [USD/y] 13 23 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 25% 45% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 (done by local labour) Costs due to failure of injector nozzle per year [USD/y] 80 320 Repair done: Exchange injector Probability of incident per year: 10% 40% Costs: Total [USD] 800 800 Spare part [USD] 200 200 2 2*~100 USD Labour [USD] 100 100 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to minor failure of injection system per year [USD/y] 85 255 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 10% 30% Costs: Total [USD] 850 850 Spare part [USD] 50 50 3 Labour [USD] 300 300 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 69 161 Repair done: Replace injection pump Probability of incident per year: 3% 7% Costs: Total [USD] 2,300 2,300 Spare part [USD] 1,000 1,000 3 Labour [USD] 300 300 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 80 160 Repair done: Take apart & clean respective parts Probability of incident per year: 5% 10% Costs: Total [USD] 1,600 1,600 Spare part [USD] 100 100 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure due to deposits [USD/y] 0 480 Repair done: Replace engine Probability of incident per year: 0% 4% Costs: Total [USD] 12,000 12,000 Spare part [USD] 10,000 10,000 3 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 12,000 12,000 Spare part [USD] 10,000 10,000 3 Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary)

Appendix 189

Rural – Communal Power Generation – Case 1

Application: Communal Power Generation Use of CNO Use of Diesel Case 1) 29 kW generator (IDI), "adapted" utilisation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.320 0.468 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 10366.00 10366.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 3,317 4,851 3: own estimations

Total fuel consumption per year [l/year] 10,884 11,403 10,366 Source of Data Comments km or running hours per year [km/year] [h/year] 1460 1460 1,460 ~4 hours per day use on Coconut oil , 365 days per year Fuel consumption [l/km], [l/h] 7.10 7.10 7.10 29 kW Generator, used at ~70% load, fuell efficiency ~0.35 l/kWh Total other cost per year [USD/y] 3,799 5,333 482 Cost for additional fuel (CNO) needed [USD/y] 348 697 0 Estimated price coconut oil [USD/l] 0.672 0.672 0 (bulk purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 1,725 1,725 0 Cost for engine modification [USD] 5,000 5,000 0 3 extra cost for adapted Generator Cost for additional filtration equipment [USD] 4,300 4,300 0 [WWG06] "Trabold Tragbar 3" Cost for additional fuel supply infrastructure [USD] 1,050 1,050 0 [WWG06] ~IBC tank 1000 litre Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 1,489 1,548 482 Cost for engine oil + filter exchange per year [USD/y] 730 730 365 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 150 150 300 Costs: Total [USD] 75 75 75 Spare part [USD] 65 65 65 2 ~15 liter oil, 2 USD/litre ; Oil Filter 35 USD Labour [USD] 10 10 10 3 (done by local labour) Cost for fuel filter changes per year [USD/y] 175 234 117 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 2 Labour [USD] 15 15 15 3 (done by local labour) Cost for cleaning of injector nozzle per year [USD/y] 584 584 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1,500 1,500 1 scheduled once a year Costs: Total [USD] 600 600 Labour [USD] 100 100 3 500 500 2 travel of maintenance technician Repair costs per year [USD/y] 237 1,364 Cost for cleaning of fuel supply system per year [USD/y] 10 20 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 20% 40% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 (done by local labour) Costs due to failure of injector nozzle per year [USD/y] 60 160 Repair done: Exchange injector Probability of incident per year: 15% 40% Costs: Total [USD] 400 400 Spare part [USD] 300 300 2 3*~100 Labour [USD] 100 100 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 Done together with Cleaning of injector nozzle (if necessary) Cost due to minor failure of injection system per year [USD/y] 43 170 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 850 850 Spare part [USD] 50 50 3 Labour [USD] 300 300 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 108 270 Repair done: Replace injection pump Probability of incident per year: 4% 10% Costs: Total [USD] 2,700 2,700 Spare part [USD] 1,500 1,500 3 Labour [USD] 200 200 3 Transportation of engine [USD] Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 16 64 Repair done: Take apart & clean respective parts Probability of incident per year: 1% 4% Costs: Total [USD] 1,600 1,600 Spare part [USD] 100 100 3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure due to deposits [USD/y] 0 680 Repair done: Replace engine Probability of incident per year: 0% 4% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) 190 Appendix

Rural – Communal Power Generation – Case 2

Application: Communal Power Generation Use of CNO Use of Diesel Case 2) 29 kW generator (IDI), "business as usual" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.815 1.535 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 5715.90 5715.90 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 4,660 8,771 3: own estimations

Total fuel consumption per year [l/year] 6,002 6,287 5,716 Source of Data Comments km or running hours per year [km/year] [h/year] 2190 2190 2,190 ~6 hours per day use on Coconut oil, 365 days per year Fuel consumption [l/km], [l/h] 2.61 2.61 2.61 29 kW Generator, used at ~20% load, fuell efficiency ~0.45 l/kWh Total other cost per year [USD/y] 5,383 9,494 723 Cost for additional fuel (CNO) needed [USD/y] 192 384 0 Estimated price coconut oil [USD/l] 0.672 0.672 0 (bulk purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 1,725 1,725 0 Cost for engine modification [USD] 5,000 5,000 0 own estimation - surcharge for adapted Generator Cost for additional filtration equipment [USD] 4,300 4,300 0 [WWG06] "Trabold Tragbar 3" Cost for additional fuel supply infrastructure [USD] 1,050 1,050 0 [WWG06] ~IBC tank 1000 litre Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 811 898 723 Cost for engine oil + filter exchange per year [USD/y] 548 548 548 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 300 300 300 Costs: Total [USD] 75 75 75 Spare part [USD] 65 65 65 2 ~15 liter oil, 2 USD/litre ; Oil Filter 35 USD Labour [USD] 10 10 10 3 Cost for fuel filter changes per year [USD/y] 263 350 175 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 2 Labour [USD] 15 15 15 3 Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 2,655 6,487 Cost for cleaning of fuel supply system per year [USD/y] 8 15 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 15% 30% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 Costs due to failure of injector nozzle per year [USD/y] 90 225 Repair done: Exchange injector Probability of incident per year: 10% 25% Costs: Total [USD] 900 900 Spare part [USD] 300 300 2 3*~100 Labour [USD] 100 100 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to minor failure of injection system per year [USD/y] 43 170 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 850 850 Spare part [USD] 50 50 3 Labour [USD] 300 300 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 135 297 Repair done: Replace injection pump Probability of incident per year: 5% 11% Costs: Total [USD] 2,700 2,700 Spare part [USD] 1,500 1,500 3 Labour [USD] 200 200 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,600 1,600 Spare part [USD] 100 100 3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure due to deposits [USD/y] 1,360 3,400 Repair done: Replace engine Probability of incident per year: 8% 20% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 1,020 2,380 Repair done: Replace engine Probability of incident per year: 6% 14% Costs: Total [USD] 17,000 17,000 Spare part [USD] 15,000 15,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 500 500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary)

Appendix 191

Rural – Communal Power Generation – Case 3

Application: Communal Power Generation Use of CNO Use of Diesel

Case 3) 200 kW generator, "adapted" utilisation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.120 0.188 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 180000.00 180000.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 21,512 33,779 3: own estimations

Total fuel consumption per year [l/year] 189,000 198,000 180,000 Source of Data Comments km or running hours per year [km/year] [h/year] 4000 4000 4,000 4000 hours Fuel consumption [l/km], [l/h] 45.00 45.00 45.00 200 kW Generator, used at ~75% load, fuell efficiency ~0.30 l/kWh Total other cost per year [USD/y] 26,365 38,633 4,853 Cost for additional fuel (CNO) needed [USD/y] 6,048 12,096 0 Estimated price coconut oil [USD/l] 0.672 0.672 0 (bulk purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 8,050 8,050 0 Cost for engine modification [USD] 15,000 15,000 0 [HOL06] Cost for additional filtration equipment [USD] 10,500 10,500 0 [WWG06] "Trabold Mobil 4" Cost for additional fuel supply infrastructure [USD] 22,800 22,800 0 [WWG06] 16,000 litre tank, on land Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 9,547 9,707 4,853 Cost for engine oil + filter exchange per year [USD/y] 8,267 8,267 4,133 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 150 150 300 Costs: Total [USD] 310 310 310 Spare part [USD] 290 290 290 2 ~110 liter oil, 2 USD/litre ; Oil Filter 2*35 USD Labour [USD] 20 20 20 3 Cost for fuel filter changes per year [USD/y] 480 640 320 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 333 250 500 Costs: Total [USD] 40 40 40 Spare part [USD] 25 25 25 2 Labour [USD] 15 15 15 3 Cost for cleaning of injector nozzle per year [USD/y] 800 800 400 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 500 500 1,000 3 Costs: Total [USD] 100 100 100 Labour [USD] 100 100 100 3 0 0 0 not necessary, MEC technicians on site Repair costs per year [USD/y] 2,720 8,780 Cost for cleaning of fuel supply system per year [USD/y] 30 80 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 30% 80% Costs: Total [USD] 100 100 Spare part [USD] 0 0 Labour [USD] 100 100 3 Costs due to failure of injector nozzle per year [USD/y] 70 280 Repair done: Exchange injector Probability of incident per year: 10% 40% Costs: Total [USD] 700 700 Spare part [USD] 600 600 2 Labour [USD] 100 100 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 0 0 not necessary, MEC technicians on site Cost due to minor failure of injection system per year [USD/y] 340 680 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 40% 80% Costs: Total [USD] 850 850 Spare part [USD] 50 50 3 Labour [USD] 300 300 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 500 500 2 (1 travel of technician necessary) Cost due to major failure of injection pump per year [USD/y] 1,860 3,720 Repair done: Replace injection pump Probability of incident per year: 20% 40% Costs: Total [USD] 9,300 9,300 Spare part [USD] 8,000 8,000 3 Labour [USD] 300 300 3 Transportation of engine [USD] Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to minor failure due to deposits [USD/y] 420 840 Repair done: Take apart & clean respective parts Probability of incident per year: 10% 20% Costs: Total [USD] 4,200 4,200 Spare part [USD] 200 200 3 Labour [USD] 3,000 3,000 3 Transportation of engine [USD] 0 0 Travel of technician [USD] 1,000 1,000 2 (1 travel of 2 technicians) Cost due to major failure due to deposits [USD/y] 0 3,180 Repair done: Replace engine Probability of incident per year: 0% 6% Costs: Total [USD] 53,000 53,000 Spare part [USD] 50,000 50,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 1,500 1,500 3 Travel of technician [USD] 1,000 1,000 2 (2 travels of technician necessary) Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 54,000 54,000 Spare part [USD] 50,000 50,000 3 new engine only Labour [USD] 500 500 3 Transportation of engine [USD] 1,500 1,500 3 Travel of technician [USD] 2,000 2,000 2 (2 travels of technicians necessary) 192 Appendix

Rural – Individual Power Generation – Case 1

Application: Individual Power Generation Use of CNO Use of Diesel Case 1) 7 kW generator (IDI), "adapted" utilisation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.379 0.696 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 1251.95 1251.95 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 474 871 3: own estimations

Total fuel consumption per year [l/year] 1,315 1,377 1,252 Source of Data Comments km or running hours per year [km/year] [h/year] 730 730 730 avg; 2 hours per day Fuel consumption [l/km], [l/h] 1.72 1.72 1.72 7 kW Generator, avg; Load 70%, fuel eff; 0.35 l/kWh Total other cost per year [USD/y] 554 951 80 Cost for additional fuel (CNO) needed [USD/y] 50 99 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 (retail purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 145 160 80 Cost for engine oil + filter exchange per year [USD/y] 99 99 50 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 500 Costs: Total [USD] 34 34 34 Spare part [USD] 24 24 24 3 ~3 litre oil, ~3 USD/litre; oil filter 15 USD Labour [USD] 10 10 10 3 local labour Cost for fuel filter changes per year [USD/y] 46 61 30 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 400 300 600 Costs: Total [USD] 25 25 25 Spare part [USD] 15 15 15 3 Labour [USD] 10 10 10 3 local labour Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 126 459 Cost for cleaning of fuel supply system per year [USD/y] 5 15 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 30% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 local labour Costs due to failure of injector nozzle per year [USD/y] 23 68 Repair done: Exchange injector Probability of incident per year: 5% 15% Costs: Total [USD] 450 450 Spare part [USD] 100 100 2 Labour [USD] 100 100 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 24 95 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 475 475 Spare part [USD] 25 25 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 36 72 Repair done: Replace injection pump Probability of incident per year: 3% 6% Costs: Total [USD] 1,200 1,200 Spare part [USD] 750 750 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 39 104 Repair done: Take apart & clean respective parts Probability of incident per year: 3% 8% Costs: Total [USD] 1,300 1,300 Spare part [USD] 50 50 3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 105 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 5,250 5,250 Spare part [USD] 5,000 5,000 3 new IDI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 5,250 5,250 Spare part [USD] 5,000 5,000 3 new IDI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Appendix 193

Rural – Individual Power Generation – Case 2

Application: Individual Power Generation Use of CNO Use of Diesel Case 2) 7 kW generator (IDI), "business as usual" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 1.422 2.883 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 1022.00 1022.00 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 1,453 2,947 3: own estimations

Total fuel consumption per year [l/year] 1,073 1,124 1,022 Source of Data Comments km or running hours per year [km/year] [h/year] 1460 1460 1,460 4 hours per day Fuel consumption [l/km], [l/h] 0.70 0.70 0.70 7 kW Generator, avg; Load ~25%, fuel eff; 0.4 l/kWh Total other cost per year [USD/y] 1,614 3,107 160 Cost for additional fuel (CNO) needed [USD/y] 40 81 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 (retail purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 233 233 0 Cost for engine modification [USD] 1,400 1,400 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 191 221 160 Cost for engine oil + filter exchange per year [USD/y] 99 99 99 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 500 500 500 Costs: Total [USD] 34 34 34 Spare part [USD] 24 24 24 3 ~3 litre oil, ~3 USD/litre; oil filter 15 USD Labour [USD] 10 10 10 3 local labour Cost for fuel filter changes per year [USD/y] 91 122 61 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 400 300 600 Costs: Total [USD] 25 25 25 Spare part [USD] 15 15 15 3 Labour [USD] 10 10 10 3 local labour Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 1,149 2,572 Cost for cleaning of fuel supply system per year [USD/y] 5 15 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 30% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 local labour Costs due to failure of injector nozzle per year [USD/y] 23 68 Repair done: Exchange injector Probability of incident per year: 5% 15% Costs: Total [USD] 450 450 Spare part [USD] 100 100 2 Labour [USD] 100 100 2 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 24 95 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 20% Costs: Total [USD] 475 475 Spare part [USD] 25 25 3 Labour [USD] 200 200 2 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 48 84 Repair done: Replace injection pump Probability of incident per year: 4% 7% Costs: Total [USD] 1,200 1,200 Spare part [USD] 750 750 3 Labour [USD] 200 200 2 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,300 1,300 Spare part [USD] 50 50 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 525 1,050 Repair done: Replace engine Probability of incident per year: 10% 20% Costs: Total [USD] 5,250 5,250 Spare part [USD] 5,000 5,000 3 new IDI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 525 1,260 Repair done: Replace engine Probability of incident per year: 10% 24% Costs: Total [USD] 5,250 5,250 Spare part [USD] 5,000 5,000 3 new IDI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 194 Appendix

Rural – Individual Power Generation – Case 3

Application: Individual Power Generation Use of CNO Use of Diesel Case 3) not adapted, 7 kW generator (DI), "business as usual" "lucky case" "unlucky case"

Extra cost per litre [USD/l] 2.249 4.656 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 919.80 919.80 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 2,069 4,282 3: own estimations

Total fuel consumption per year [l/year] 966 1,012 920 Source of Data Comments km or running hours per year [km/year] [h/year] 1460 1460 1,460 4 hours per day Fuel consumption [l/km], [l/h] 0.63 0.63 0.63 7 kW Generator, avg; Load ~25%, fuel eff; 0.36 l/kWh Total other cost per year [USD/y] 2,229 4,442 160 Cost for additional fuel (CNO) needed [USD/y] 36 73 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 (retail purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 0 0 0 Cost for engine modification [USD] 0 0 0 [ELS06c] Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 3 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 221 282 160 Cost for engine oil + filter exchange per year [USD/y] 99 99 99 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 500 500 500 Costs: Total [USD] 34 34 34 Spare part [USD] 24 24 24 3 ~3 litre oil, ~3 USD/litre; oil filter 15 USD Labour [USD] 10 10 10 3 local labour Cost for fuel filter changes per year [USD/y] 122 183 61 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 300 200 600 Costs: Total [USD] 25 25 25 Spare part [USD] 15 15 15 3 Labour [USD] 10 10 10 3 local labour Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 1,972 4,088 Cost for cleaning of fuel supply system per year [USD/y] 8 18 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 15% 35% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 local labour Costs due to failure of injector nozzle per year [USD/y] 23 90 Repair done: Exchange injector Probability of incident per year: 5% 20% Costs: Total [USD] 450 450 Spare part [USD] 100 100 2 Labour [USD] 100 100 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure of injection system per year [USD/y] 24 71 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 15% Costs: Total [USD] 475 475 Spare part [USD] 25 25 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 48 84 Repair done: Replace injection pump Probability of incident per year: 4% 7% Costs: Total [USD] 1,200 1,200 Spare part [USD] 750 750 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 0 0 Repair done: Take apart & clean respective parts Probability of incident per year: 0% 0% Costs: Total [USD] 1,300 1,300 Spare part [USD] 50 50 3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 595 1,275 Repair done: Replace engine Probability of incident per year: 14% 30% Costs: Total [USD] 4,250 4,250 Spare part [USD] 4,000 4,000 1 new DI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 1,275 2,550 Repair done: Replace engine Probability of incident per year: 30% 60% Costs: Total [USD] 4,250 4,250 Spare part [USD] 4,000 4,000 1 new DI engine Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0

Appendix 195

Rural – Individual Power Generation – Case 4

Application: Individual Power Generation Use of CNO Use of Diesel Case 4) "historical" 7 kW generator, "adapted" utilisation "lucky case" "unlucky case"

Extra cost per litre [USD/l] 0.160 0.299 Key to the Source of Data 1: Values directly obtained in the RMI Total amount of diesel saved [l/year] 1564.94 1564.94 2: Values based on data from the RMI Total extra expenditure for CNO use [USD/year] 250 468 3: own estimations

Total fuel consumption per year [l/year] 1,643 1,721 1,565 Source of Data Comments km or running hours per year [km/year] [h/year] 730 730 730 avg; ~2 hours per day Fuel consumption [l/km], [l/h] 2.14 2.14 2.14 7 kW Generator, avg; Load 70%, fuel eff; 0.4375 l/kWh Total other cost per year [USD/y] 312 530 62 Cost for additional fuel (CNO) needed [USD/y] 62 124 0 Estimated price coconut oil [USD/l] 0.792 0.792 0 (retail purchase) Factor for increased consumption of CNO 1.05 1.10 0 Initial investment cost for CNO use per year [USD/y] 83 83 0 Cost for engine modification [USD] 500 500 0 [KIN06] Cost in India : ~200 USD Cost for additional filtration equipment [USD] 0 0 0 Cost for additional fuel supply infrastructure [USD] 0 0 0 Other cost [USD] 000 Depreciation cost per year [USD/y] 0 0 0 expected residual lifetime [y] 6.0 6.0 6.0 Present value of engine/vehicle [USD] 000 Maintenance cost per year [USD/y] 118 124 62 Cost for engine oil + filter exchange per year [USD/y] 99 99 50 Maintenance done: Exchange lubricant oil, oil filter Every ....km, running hours [km], [h] 250 250 500 Costs: Total [USD] 34 34 34 Spare part [USD] 24 24 24 3 ~3 litre oil, ~3 USD/litre; oil filter 15 USD Labour [USD] 10 10 10 3 local labour Cost for fuel filter changes per year [USD/y] 18 24 12 Maintenance done: Exchange fuel filter Fuel filter change every ....km, running hours [km], [h] 400 300 600 Costs: Total [USD] 10 10 10 Spare part [USD] 0 0 0 cleanable fuel filter Labour [USD] 10 10 10 3 local labour Cost for cleaning of injector nozzle per year [USD/y] 0 0 0 Maintenance done: Take out & clean injector nozzle Every ....km, running hours [km], [h] 1 1 1 does not apply Costs: Total [USD] 000 Labour [USD] 0 0 0 000 Repair costs per year [USD/y] 49 199 Cost for cleaning of fuel supply system per year [USD/y] 5 15 Maintenance done: Clean fuel tank, pipes, etc. Probability of incident per year: 10% 30% Costs: Total [USD] 50 50 Spare part [USD] 0 0 Labour [USD] 50 50 3 local labour Costs due to failure of injector nozzle per year [USD/y] 0 40 Repair done: Exchange injector Probability of incident per year: 0% 10% Costs: Total [USD] 400 400 Spare part [USD] 50 50 3 Labour [USD] 100 100 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] Cost due to minor failure of injection system per year [USD/y] 24 48 Repair done: Take apart, clean/tighten injection pump Probability of incident per year: 5% 10% Costs: Total [USD] 475 475 Spare part [USD] 25 25 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure of injection pump per year [USD/y] 8 23 Repair done: Replace injection pump Probability of incident per year: 1% 3% Costs: Total [USD] 750 750 Spare part [USD] 300 300 3 Labour [USD] 200 200 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to minor failure due to deposits [USD/y] 13 39 Repair done: Take apart & clean respective parts Probability of incident per year: 1% 3% Costs: Total [USD] 1,300 1,300 Spare part [USD] 50 50 3 Labour [USD] 1,000 1,000 3 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to major failure due to deposits [USD/y] 0 35 Repair done: Replace engine Probability of incident per year: 0% 2% Costs: Total [USD] 1,750 1,750 Spare part [USD] 1,500 1,500 [KIN06] Cost for Engine FOB in India: 500 USD Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0 Cost due to lube oil polymerisation [USD/y] 0 0 Repair done: Replace engine Probability of incident per year: 0% 0% Costs: Total [USD] 1,750 1,750 Spare part [USD] 1,500 1,500 [KIN06] Cost for Engine FOB in India: 500 USD Labour [USD] 0 0 Transportation of engine [USD] 250 250 3 Travel of technician [USD] 0 0

196 Appendix

Appendix 5 – Standardised Results

Urban Individual Land Transportation Urban Professional Land Transp.

Standardised ; I e I e D c ; I " D c Results I " ; ; s n r " - I ; I n r - - d " r I a D a e d "

I e t D r - a 2 t - e D e e - d t t I D n I 1 t s s u e 4 t I " s d e 2 l s u e i 3 o s p s p 1 t e i d u i d e e a s d m d t e a e t e e u a p e s d m e s e u a t y a t n d d s a p g m s t a t s i s Urban Applications y a s g m p i a p C a a t a a n o a p d i s C i l u n o a C c a t t a i d o c C a C u c " C t o c l d d a o o " l " d b 1/2 " a u a " n n a " lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky Initial investment 0.185 0.185 0.000 0.000 0.296 0.296 0.000 0.000 0.072 0.072 0.069 0.069 Additional fuel consumption 0.026 0.053 0.026 0.053 0.026 0.053 0.026 0.053 0.026 0.053 0.026 0.053 Maintenance 0.076 0.086 0.086 0.105 0.009 0.018 0.020 0.040 0.059 0.067 0.007 0.015 Repair - other 0.105 0.340 0.224 0.544 0.236 0.633 0.649 1.371 0.088 0.209 0.119 0.261 Repair - engine replacement 0.000 0.238 0.119 0.595 1.524 3.048 4.868 9.312 0.000 0.111 0.960 1.920 Repair - travel & transport 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Total 0.393 0.901 0.455 1.296 2.092 4.048 5.563 10.776 0.245 0.512 1.182 2.317

Urban Heavy Duty Sea Transport Power Generation

e e e n n Standardised " i i n

n i " g g ; n g I o ; n O n i n O - - I a o - O Results - t n D o i E N E - e I i t N 2 3 N a D E 1 1 t I t C S a 2 C C d r t e e c W W e e d " r e o W s s e u s % s t M M e r n o % % p a a s t a M 0 a p t a 0 0 s p a 5 5 p s C 0 C a C 0 . . C b s 4 2 Urban Applications n 1 C a d n r 1 2 2 a n d o a r U w a d d a " r e l l 2/2 T C " " T n o o lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky Initial investment 0.041 0.041 0.064 0.064 0.048 0.048 0.012 0.012 0.008 0.008 0.019 0.019 Additional fuel consumption 0.026 0.053 0.026 0.053 0.026 0.053 0.028 0.036 0.028 0.036 0.028 0.036 Maintenance 0.017 0.019 0.004 0.007 0.009 0.010 0.001 0.002 0.011 0.012 0.019 0.025 Repair - other 0.023 0.064 0.053 0.109 0.015 0.041 0.007 0.011 0.007 0.011 0.012 0.020 Repair - engine replacement 0.000 0.038 0.476 0.893 0.000 0.057 0.000 0.000 0.000 0.000 0.000 0.000 Repair - travel & transport 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Total 0.108 0.215 0.624 1.126 0.099 0.208 0.048 0.061 0.054 0.067 0.078 0.099

Communal Power Generation

y ) t ) I I ) I u D Standardised D I n n I D ( D ( I o o ( s " d i i " a a t y t - W d - d n Results W n - ) n e W k e t a v a e s o k o " 3 1 t i i a t t t i 2 k l 0 s t a S t r r p u 9 p 9 a e 0 L e e a l a e e l a 2 a 2 u s 2 o o s s a l s s n i d i a d i s a H a l J a p p d l a d d s i ( i a c a u C r l C t s s C e t e e " Rural Applications " C u t t t o u u a u n n b r p p p L " R a a a a a u 1/2 r r d d d

T R T a a a lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky lucky unlucky Initial investment 0.627 0.627 0.608 0.608 0.079 0.079 0.166 0.166 0.302 0.302 0.045 0.045 Additional fuel consumption 0.040 0.079 0.040 0.079 0.040 0.079 0.034 0.067 0.034 0.067 0.034 0.067 Maintenance 0.014 0.027 0.146 0.146 0.055 0.068 0.097 0.103 0.015 0.031 0.026 0.027 Repair - other 0.508 1.261 0.376 0.900 0.051 0.139 0.016 0.047 0.038 0.095 0.012 0.026 Repair - engine replacement 4.029 8.058 1.667 3.333 0.000 0.119 0.000 0.058 0.367 0.892 0.000 0.017 Repair - travel & transport 0.792 1.773 0.664 1.510 0.046 0.158 0.007 0.027 0.059 0.148 0.003 0.006 Total 6.009 11.825 3.500 6.576 0.272 0.643 0.320 0.468 0.815 1.535 0.120 0.188

Individual Power Generation

" " l l " a a W Standardised e u k u n s s W i 7 W u u " - k - g , Results - k d n 7 n s s 2 3 d 7 e o W " 4 e I a a t i e I d - e e t k d n t d l D p e s D s e 7 s I s a e o t p e a 1 a t i s s a s t s a a a c I t p a i d i d p e e e p l C a C d r D a a i e a Rural Applications s I n n C a t t s d i a i o " d i a d t u p l a s t s a i a s C a t u o u i 2/2 " d u b n b h

a " " " lucky unlucky lucky unlucky lucky unlucky lucky unlucky Initial investment 0.186 0.186 0.228 0.228 0.000 0.000 0.053 0.053 Additional fuel consumption 0.040 0.079 0.040 0.079 0.040 0.079 0.040 0.079 Maintenance 0.052 0.064 0.030 0.060 0.066 0.132 0.036 0.039 Repair - other 0.069 0.185 0.063 0.153 0.073 0.172 0.020 0.063 Repair - engine replacement 0.000 0.080 0.978 2.153 1.913 3.914 0.000 0.019 Repair - travel & transport 0.032 0.102 0.083 0.210 0.158 0.359 0.011 0.045 Total 0.379 0.696 1.422 2.883 2.249 4.656 0.160 0.299