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MAIZE ASSOCIATION OF AUSTRALIA 6TH TRIENNIAL CONFERENCE 2006

ETHANOL AND THE IMPACT ON CORN PRODUCTION IN THEMURRUMBIDGEE AND MURRAY VALLEYS

Stewart Rendell

Australian Ethanol Ltd, PO Box 1792, West Perth WA 6872 www.australianethanol.com.au

AbstractAustralian Ethanol Ltd plan to construct five ethanol production facilities to service the motor transportfuel (“mogas”) markets of the East Coast of Australia. The plants are planned at Swan Hill in Victoria,Coleambally in NSW, a site in Central West NSW, Horsham in Victoria and the Darling Downs regionof South East Queensland. Each facility is planned to produce 90 million litres of fuel grade ethanol intwo stages – initially at 45 million litres with expansion capacity to 90 million litres.

The purpose of the paper today is to look at the ethanol industry from a rural and regional perspectiveand consider the effects, impacts, benefits and drawbacks of developing ethanol production in regionalAustralia. The model for the Australian industry, which has been adopted by Australian Ethanol Ltd, isthe US model where the ethanol industry is almost entirely based on grain feedstock. The otherethanol model that has been successfully implemented internationally is the Brazilian Model. Thismodel uses sugar based feedstock and by product to produce fuel ethanol. Australian Ethanol Ltdhave adapted this model to the present Australian sugar industry and found it to not to be viable underthe current sugar industry structure, the reason being the cost of inputs, disposal of waste products,environmental and industry structure effects. The same is not true for a grain based ethanol industry inAustralia where Australian production costs are internationally competitive even against extensiveinternational subsidy support by foreign governments.

What is ethanol?Fuel ethanol is a clear, odourless, clean, highly combustible natural product. It is miscible (mixes withwater), an alcohol which is 200% proof (99.8% pure) and manufactured from the fermentation of starchor sugars contained in most cereal grains. The production process is outlined in the Table 1.

Grains such as wheat, barley, corn, sorghum and other cereals typically contain 55–70% starch.Various varieties of grain are adapted for high protein or high starch and can be successfully grown inthe Riverina and Murray River regions of Australia. A typical grain analysis for varieties grown inAustralia is contained in Table 2.

The grain ethanol production process can use seconds or sub standard grain, which may be affectedby frost, hail, disease, contamination or physical damage. Grain costs make up over 70% of the totalfuel ethanol production costs hence the efficient purchase of grain is essential (Table 3). Other signifi-cant production costs are gas (for steam and heat generation), labour (typically around 35 peopledirectly employed in the production facility), chemicals such has yeast, enzymes, nutrients andneutralising components, electricity and water. The other significant cost is the carrying cost ofinventory such as grain and finished products.

The important production cost element is not so much the cost of the grain but the cost of starch. Onetonne of starch will produce around 620 litres of ethanol. So this translates to grain at 60% starchproducing 360 litres of ethanol, while at 70% starch the grain will produce 420 litres of ethanol (anincrease of 17%). With the sale price of ethanol valued between 50 and 65 cents per litre the cost ofstarch is the critical issue for any grain ethanol producer.


Table 1. Grain ethanol production process

Grain 55-70% MILLING Starch

Hammer mill

Flour

Add Water Slurry

Enzymes and Cook

Soluble Starch LIQUEFACTION

Enzymes and Cook

Starch to

Sugars SACRIFICATION Sugar to

Ethanol FERMENTATION CENTRIFUGE

Decant Boil off By Product Ethanol DISTILL

EVAPORATE Concentrate Remove

Syrup Water DEHYDRATE

Co Product Add 5% To Stockfeed Petrol DENATURE

DISTILLERS GRAIN

Transport To Fuel Distributor Add 10% To Petrol Retail


Table 2. Typical Feedstock Analysis

Table 3. Australian Fuel ethanol plant - typical production cost breakdown

Ethanol and fuelWhy is ethanol important to the fuel mix in Australia going forward? To understand this question youhave to look at the international vehicle manufacturing industry, cleaner fuel legislation and tail pipeemissions in vehicles. The issue of national fuel security and depletion of a finite oil resource is also aconsideration.

Vehicles are sold into a globalised market and are required to meet the legislation and regulatoryrequirement of all countries of manufacture and sale. Vehicles are now manufactured to a Euro stan-dard, which requires compliance with increasingly stringent tail pipe emissions and vehicle efficiencyrequirements. Both of these requirements are important to the fuel ethanol industry. Vehicle emis-sions can be reduced by more sophisticated catalytic conversion of exhaust gases (but only to a point)and with cleaner fuels that burn more efficiently and do not carry the same extent of impurities.

Vehicle exhaust systems are proven emitters of carbon monoxide and carbon dioxide (green housegas), oxides of nitrogen and sulphur, benzene group components (carcinogens), aromatics and olefins,as well as other traces of heavy metals picked up in the process. In short, vehicle emissions are thesingle biggest source of pollution in major cities.

Typical Analyses Wheat Barley Corn Sorghum

Moisture (%db) 12.5 10.0 14.0 14.0

Starch (%db) 65.3 60.0 70.0 74.6

Protein (%db) 13.0 10.0 9.5 8.0

Fibre (%db) 9.0 10.2 11.5 10.0

Fat (%db) 2.0 3.0 3.9 3.1

Ash (%db) 2.5 2.5 1.6 1.0

Other Sol. (%db) 8.7 14.3 3.5 3.3

TOTAL (%db) 100.0 100.0 100.0 100.0

Percentage of Total Cash Operating Cost

Grain Feedstock 72%

Utilities 17%

Consumables 4%

Labour 4%

Maintenance 1%

Administration & Expenses 2%


Appendix 1 contains the reprint of an article that outlines the affects of vehicle exhaust pollution assummarized and presented to the Australian Federal Cabinet by a group of eminent doctors andscientists in September 2003. If only partly true, the effects of vehicle pollution in Australia is devastat-ing.

The other requirement for vehicle manufacturers is improved engine efficiency or more kilometres forless petrol. This is generally achieved by increasing engine comprehenssion ratios to improve motorperformance. Higher compression ratio engines require the use of higher octane fuels to eliminateengine knocking.

Euro requirements in vehicle manufacture have been targeted to meet specific performance criteria witha key date being 2008. Almost all manufacturers have introduced the necessary improvements earlierand most new vehicles built today are already Euro compliant.

Vehicle legislation is one aspect of tail pipe emission reduction but accompanying this is the need toimprove fuel quality to enable the vehicle performance to comply with the new emissions requirement.“You can not put crappy fuel in a Euro 4 or 5 vehicles and expect the tail pipe emissions to comply”.So the other leg of the emissions reduction equation is cleaner fuels policy. Australia’s fuel regulations“harmonise” with those in Europe, which means that our regulations tend to follow the Europeanregulations but are introduced with about a two-year lag time. Current fuel legislation is in place inAustralian to 2006. The Vehicle Motor Emissions Committee (VMEC) has prepared and committed ona preferred option for the post 2006 period. Copies of pre and post 2006 requirements are attached inTables 4 and 5.

The key aspect of the Australian legislation to 2006 and beyond for the fuel ethanol industry is theoctane level in fuel. For Euro compliant vehicles, octane levels are legislated at RON 95, and MTBE/ETBE, benzene, sulphur and aromatics are significantly reduced in fuel over time. This legislation hasthe effect of adding additional process steps to the refining of mogas in order to comply with the morestringent regulations. These additional processing steps effectively lower the octane rating of the fuel.Ethanol with an RON Octane number of 108 when blended at 10% increases the octane levels back upto the Euro requirements of RON 95. Ethanol is the only commercially suitable source of octane to theAustralian refineries in the future. Hence when the cleaner fuel legislation is put in place the use ofethanol to produce octane 95 blend mogas is inevitable.


Table 4. Current fuel standards in Australia


Table 5. Future vehicle emissions and fuel standards – summary of Options 1 – 4

Recommended Option is Option 4

Ethanol is a natural fuel product. It is miscible with water, clean burning, contains no sulphur, nitrogenor heavy metals and when combusted substantially reduces tail pipe pollutants. When mixed at 10%with petrol (E10) the total fuel mix is more efficient, better combustible and lower in pollutants.

Legislation is in place in Australia to add a maximum of 10% ethanol to mogas. The fuel exciseregime to 2016 and beyond is also legislated and in place. The FCAI (Federal Chamber of AutomotiveIndustries) have produced a commentary by all vehicle manufacturers relating to the use of E10 fueland it’s effects on vehicle performance and warranty. A copy of the FCAI commentary is attached inAppendix 2.

Ethanol and agriculture in AustraliaThe Australian Ethanol Ltd strategy over the next six years is to build five ethanol plants capable oftotal production of 450 million litres. The plants will require approximately 1,250,000 tonne of grain - allproduced local to the production facility.

The company plans are to use 50% corn or sorghum and 50% wheat or barley. The corn will becontracted on extended contracts (3-5 year), priced and produced on irrigation to ensure a guaranteedsupply. The target market for wheat and barley is damaged or diseased grain not suitable for the highquality protein and human consumption market. Price paid will reflect convertible starch with discountprices for the seconds and diseased crops. The ethanol industry will provide a sensible local marketfor high quality corn and sorghum and lower quality damaged cereal crops grown on the dry land.

Initial requirements in the Swan Hill region are for about 75,000 tonnes of starch or 100,000 to 125,000tonnes of corn. Initial trials carried out during the summer of 2004/2005 have shown yields of 11-15tonne per hectare with starch content of 61% - 68% on moisture content of 14%

The Australian agricultural industry has traditionally (and will continue) to produce grain for domesticand international food consumption markets. The industry will continue to experience high and lowprices based on demand and production relative to output and seasonal effects in other locations andin other countries. The industry price structure will continue to be dictated by the local retail marketersand offshore consumption requirements.

Option Vehicle Emissions Standards Timing Fuel Standards Timing

1 Euro 3 for LDV – petrol, LPG, NG

Euro 4 for all diesel

2005/06

2006/07

Broadly Euro 3 petrol

Broadly Euro 3 diesel + 50ppm sulfur

2005

2006

2 Euro 4 for LDV – petrol, LPG, NG 2008/09 50ppm sulfur petrol (95 RON grade only) 2008


Euro 5 for HDV – diesel, LPG, NG

2008/09

2009/10

50ppm sulfur petrol (95 RON grade only)

Aromatics as per option 2

10ppm sulfur diesel

2008

2009


Euro 5 for HDV – diesel, LPG, NG

2008/09

2009/10

50ppm sulfur petrol (95RON grade only)

Aromatics as per option 2

10ppm sulfur petrol (95 RON grade only)

10ppm sulfur diesel

2008

2010

2009


Local producers cannot control revenue returns for their products. The ethanol industry pricing struc-ture is benchmarked against another indicator. It is relative to the world oil price - an indicator that isprobably foreign to most grain marketers. The capacity of the ethanol industry to pay higher prices isnot determined by the effects of international grain production but the effects of international oil prices.

Distillers grainThe ethanol production process uses the whole grain. Starch is converted to sugar and fermented toethanol which is used for blending with mogas while the unfermentable products are marketed as highquality stockfeed called distillers grain. Distillers grain is an important ingredient in the dietary require-ments of all dairy and stock particularly those, which are fed under supplementary conditions infeedlots and intensive high density production.

Distillers grain can be sold as a wet product – mash and syrup (30% solids), or as a dry feed (92%solids). Drying is costly, as it requires the input of further energy and under the Australian regionalmodel energy is expensive and its use should be minimized. Wet distillers grain has a shelf life of 4-5days and involves the transport of 70% water by weight of total product. Wet distillers grain supplytransport is viable usually within a 200 km distance form the ethanol production facility. Dry distillersgrain has a shelf life of 12 months or more and is package and traded as a commodity product.

A typical feed analysis for the distillers grain is shown in Table 6.

Table 6. Wet distillers grain - typical analysis

Distillers grain revenues are approximately 30% of total ethanol project revenues. Many internationalfacilities have a dairy or feedlot adjacent to the production plant enabling co-generation of waste andco-products improving transport efficiencies. This arrangement is being considered for all AustralianBiofuels production facilities in Australia.

An ethanol plant can also use other waste products produced in the region as feedstock. Materialssuch as vegetable pulp from grapes or citrus, and potato waste, can be fermented into fuel ethanol.Technology is now successfully available to convert cellulose and other wood products into ethanol.Commercialisation remains a number of years away.

The economics of grain ethanol productionThe target cost for starch for grain ethanol production in Australia is $230-$280 / tonne.

The higher prices can be paid for secured long term supply while prices at the lower end of this rangehave been modelled for spot or short term supply of damaged and seconds wheat, barley and othergrains. Obviously the higher the starch percentage content (corrected for moisture) the higher the grainprice that can be accommodated. Target starch content in corn is >68% for moisture content <14%.The Company is hoping to sign up firm long-term contracts for the 2006/07season in August andSeptember 2006. The company will discuss a bonus share arrangement with a floor.

Moisture % of total product 70%

Dry Solid Matter % of total product 30%

Protein % of dry matter 27%

Digestibility % digestible of dry matter 69.9%

Fat (Ether Extract) % of dry matter 4.6%

Metabolisable Energy MJ/kg of dry matter 10.6%


Swan Hill Chemicals Pty Ltd have been contracted to arrange all grain aggregation on behalf of Austra-lian Ethanol Ltd .

Australian Ethanol Ltd have a signed agreement with the stockfeed and co-products group James &Sons from Ballarat, Victoria. Under the agreement James & Sons will take all the wet distillers grainfrom the ethanol production plant at a price structured against a basket of agricultural indexes. Pricewill vary against the market but has a floor.

One tonne of starch grain will generate the following:

• 620 litres of ethanol (200% proof)• 430kg of wet distillers grain (30% solids)• up to 2 kilolitres of waste water containing a trace of minerals and a minimal amount of

organics.

The wastewater will be used to irrigate up to 500 ha per year of hardwood trees. The tree plantationswill be located within a practical pumping distance of the ethanol production facility. Carbon offsetcredits generated from the tree plantations will be sold to greenhouse gas emitters and industrialgroups on the international market. Anticipated revenues from the carbon offsets are equivalent to 1-2cents per litre of the ethanol produced.

Target fuel ethanol production cash costs after crediting back the distillers grain and carbon offsets(and before financing the facility) is about 30-34 cents per litre.

6TH TRIENNIAL CONFERENCE 2006 MAIZE ASSOCIATION OF AUSTRALIA

Appendix 1. Vehicle exhaust

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Appendix 2. FCAI Commentary

Capability of vehicles to satisfactorily operate on Ethanol Blend petrol (10% orE10 maximum)Most new and many older vehicle models can run on E10 blended petrol. Vehicle manufacturers andimporters have provided the following information on the capability of their vehicles to operate onethanol fuel blends up to a maximum of 10% or E10 subject to the fuel meeting the octane require-ments of the vehicle, complying with relevant mandatory Australian fuel quality standards. The Com-monwealth Government has limited the level of ethanol in petrol in Australia at a maximum of 10%. Theinformation below provides technical reasons why some models cannot or should not use E10.

For more information about national fuel quality standards or about national labelling requirements forethanol blends, please visit Department of the Environment and Heritage or Department of Industry,Tourism & Resources.

Motor vehiclesBefore use of E10 in motor vehicles not listed below, you should consult your handbook or manufac-turer to check if the fuel is suitable. A list of manufacturer contacts is available here.

Australian automobile manufacturers

Holden All petrol engine vehicles since 1986 will operate satisfactorily on E10 except as listed below.

The following models which do not operate satisfactorily on E10 fuel: Apollo (1/87-7/89), Nova (2/89-7/94), Barina (1985-1994), Drover (1985-1987), Scurry (1985-1986), Astra (1984-1989).

Ford All petrol engine vehicles since 1986 will operate satisfactorily on E10 except as listed below.

The following models may not operate satisfactorily on E10 fuel because of drivability concerns: Focus (All), F-series (1986-1992), Ka (All), Maverick (1988-1993), Mondeo (All), Transit (1996 onwards).

The following models do not operate satisfactorily on E10 fuel: Capri (1989-1994), Courier (All), Econovan (pre-2002), Festiva (1991-1999), Laser 1.3L & 1.5L (1980-1989), Laser 1.6L (1989-2002), Raider (All), Telstar (All).

Mitsubishi All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Mitsubishi vehicles with carburettor fuel systems built before 1991 may experience hot fuel handling concerns and may experience a lower level of durability in some fuel system components.

Toyota All Toyota models manufactured locally or imported by Toyota Australia since 1987 will operate satisfactorily on E10 fuel except as listed below.

The following models will not operate satisfactorily on E10 fuel due to material compatibility issues:

Camry with carburettor engines pre July 1989 and Corolla pre July 1994.

Supra - pre May 1993, Cressida - pre Feb 1993, Paseo - pre Aug 1995, Starlet - pre July 1999.

Land Cruiser - pre Aug 1992, Coaster - pre Jan 1993, Dyna - pre May 1995, Tarago - pre Oct 1996, Hilux , Hiace, & 4 Runner - pre Aug 1997, Townace - pre Dec 1998.


Vehicle importersAlfa Romeo All Alfa Romeo vehicles imported since 1998 must run on minimum 95 RON fuel (premium unleaded petrol).

Post 1998 Alfa Romeo vehicles will operate satisfactorily on E5 ethanol blended petrol (European Standard EN 228). E10 ethanol blended petrol is not recommended as there are material compatibility and drivability issues. E10 may be used in emergency situations.

E10 ethanol blended petrol is not recommended for earlier model Alfa Romeo vehicles due to material compatibility issues.

Audi All current Audi vehicles must run on minimum 95 RON fuel (premium unleaded petrol). All Audi vehicle models since 1986 will operate satisfactorily on E10 except as listed below:

Audi A3 1.8L (Engine Code 'APG' 2000 onwards) and A4 2.0L (Engine Code 'ALT' 2001 onwards) will operate satisfactorily on E5 ethanol blended petrol (European Standard EN 228). However, E10 ethanol blended petrol is not recommended for these vehicle models as there are material compatibility and drivability issues. E10 may be used in emergency situations.

Bentley All petrol engine vehicles since 1990 will operate satisfactorily on E10.

BMW All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Citroen All Citroen vehicles are required to run on minimum 95 RON fuel (premium unleaded petrol).

Citroen vehicles will operate satisfactorily on E5 blended petrol (European Standard EN 228). However, E10 blended petrol is not recommended because of drivability and/or material compatibility issues. E10 may be used in emergency situations.

Chrysler All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Daewoo GMDaewoo does not recommend the use of ethanol blended petrol.

Daihatsu Use of E10 in any Daihatsu model vehicles is not recommended because of material incompatibility.

Honda All Honda vehicles should use the fuel recommended in the Owner's Manual.

The following models will operate satisfactorily on E10: Insight - 2004 onwards; Civic range (including Civic Hybrid) - 2004 onwards; S2000 - 2004 onwards; CRV - 2003 onwards; MD-X - 2003 onwards; Accord & Accord Euro - 2003 onwards.

Honda does not recommend E10 for other vehicle models because there may be drivability issues.

Hyundai Hyundai vehicles will operate satisfactorily on E10, but if engine drivability concerns occur revert back to 100% unleaded petrol.

Ferrari Ferrari does not recommend the use of ethanol blend petrol. E10 may be used in emergency situations.

Jaguar All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Kia All petrol engined vehicles since 1996 will operate satisfactorily on E10 but if engine driveability concerns occur revert back to 100% unleaded petrol. Please refer to Owner' s Manual for further details.

Land Rover All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Lexus All models will operate satisfactorily on E10 except for the model listed below: The following model will not operate satisfactorily on E10 fuel: IS200 - pre May 2002.

Maserati Maserati does not recommend the use of ethanol blend petrol. E10 may be used in emergency situations.

Mazda Mazda 323 1.8L (1994 onwards), Mazda 323 2.0L (2001 onwards), Mazda2 (11/02 onwards), Mazda3 (All), Premacy (5/02 onwards), Mazda6 (8/02 onwards), 800M and Millenia (8/98 onwards), RX-8 (7/03 onwards), MPV (8/99 onwards), Tribute (All) and E-series (2002 fuel injected models onwards) vehicles will operate satisfactorily on E10.

All other models not listed above do not operate satisfactorily on E10.

Mercedes-Benz All petrol engine vehicles since 1986 will operate satisfactorily on E10.

MG MGF (2000 onwards), MG ZT (2002 onward) and MG TF (2002 onward) vehicles may operate satisfactorily on E10. However, use of E10 may affect engine calibration and emissions.

MGF (pre-2000) does not operate satisfactorily on E10.


Nissan Nissan vehicles manufactured from 1 January 2004 onwards are capable of operation on ethanol-blended fuels up to E10 (10% ethanol), providing that blending of the ethanol component to the petroleum component of the fuel has been properly made at the fuel refinery (ie there is no "splash-blending" of the fuel). For Nissan vehicles manufactured prior to 1 January 2004, Nissan Australia does not recommend the use of E10 because of drivability concerns and/or material compatibility issues.

Peugeot All Peugeot vehicles are required to run on minimum 95 RON fuel (premium unleaded petrol).

Peugeot vehicles will operate satisfactorily on E5 blended petrol (European Standard EN 228). However, E10 blended petrol is not recommended because of drivability and/or material compatibility issues. E10 may be used in emergency situations.

Proton All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Rover Rover 75 (2001 onwards) vehicles may operate satisfactorily on E10. However, use of E10 may affect engine calibration and emissions.

Renault All petrol engine vehicles since 2001 will operate satisfactorily on E10 but Renault does not recommend its use

Rolls Royce All petrol engine vehicles since 1990 until 2002 will operate satisfactorily on E10.

Saab All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Subaru Subaru Liberty B4 (all year models) and Impreza WRX STI (1999 and 2000) do not operate satisfactorily on E10.

All other since MY1990 petrol engine Subaru vehicles will operate satisfactorily on E10.

Suzuki Suzuki Alto, Mighty Boy, Wagon R+, Swift/Cino, Ignis Sport (1.5 litre requires 98RON), Sierra, Stockman, Vitara, X-90, Jimny (SOHC) and Super Carry vehicles do not operate satisfactorily on E10.

Suzuki Baleno and Baleno GTX will operate satisfactorily on E10 but Suzuki does not recommend its use in these vehicles.

Ignis (1.3 litre), Liana, Grand Vitara/XL-7, Jimny (DOHC) and Carry (1.3 litre) vehicles will operate satisfactorily on E10.

Volkswagen All Volkswagen vehicles will operate satisfactorily on E10, but Volkswagen does not recommend it.

Volvo All petrol engine vehicles since 1986 will operate satisfactorily on E10.

Motor cyclesBefore use of E10 in motorcycles not listed below, you should consult your handbook or manufacturerto check if the fuel is suitable.

BMW All motorcycles since 1986 will operate satisfactorily on E10.

Harley Davidson All motorcycles since 1986 will operate satisfactorily on E10.

Honda All motorcycles and all terrain vehicles may operate satisfactorily on E10 but Honda does not recommend it because there may be drivability issues. Drivability, performance or durability issues resulting from the use of E10 will NOT be covered by warranty.

Suzuki All motorcycles and all terrain vehicles do not operate satisfactorily on E10 fuel.

Yamaha All motorcycles and all terrain vehicles do not operate satisfactorily on E10 fuel.


Technical reasons for inability to use E10The following are reasons why certain vehicle models cannot or should not use E10 because of mate-rial incompatibility and driveability issues respectively. There are also comments on possible exhaustand evaporative emissions issues. This list was compiled from information submitted by manufacturers.

Cannot use because of material incompatibility issues

Early deterioration of components in fuel injection system:

· Fuel tanks

· Fuel lines/hoses

· Injector seals

· Delivery pipes

· Fuel pump and regulator

Vehicles with carburettor fuel systems may experience hot fuel handling concerns and may experience alower level of durability in some fuel system components.

Some manufacturers advise not to use E10 with any model equipped with a carburettor because ofmaterial incompatibility.

Should not use because of driveability issuesVapour pressure of fuel with ethanol will be greater (if not chemically adjusted) and probability of vapourlock or hot restartability problems will be increased.

Oxygen content of ethanol is 34.7%. This can cause the engine to run lean although the EngineControl Unit (ECU) can generally compensate via feedback from the O2 sensor under light throttleconditions. However, hesitation or flat-spots during acceleration can occur due to this lean-out effect.

Difficulty in starting and engine hesitation after cold start.

Exhaust and evaporative emission levelsLean-out resulting from the oxygenating effect of ethanol in the fuel may affect exhaust emissions.

Fuel containing ethanol can increase permeation emissions from fuel system components.

Vapour pressure of fuel with ethanol will be greater (if not chemically adjusted at the refining stage) andcan lead to increased evaporative emissions.

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