CHS Energy A Division of CHS Inc.

WelcomeViafield Farmer Meeting

March 15, 2011

Tank Maintenance/Filter Plugging

Will become the #1 issue facing us

JBC 11/1/01 3

Fuel Filter Plugging

• Biomass build up• Fuel filter blocking

Sock Filter GM light duty truck

Furnace Filter Heavy DutyDiesel Truck Filter

Ultra Low Sulfur Diesel Fuel

Transition from: History of Diesel Fuel

-Beginning 5000ppm (High Sulfur)

-1994 reduced to 500ppm (Low Sulfur)

-2006 reduced to 15ppm (Ultra Low Sulfur)

All of this is driven by the EPA EMISSIONS

Side effect of making ULSDDistillates have undergone progressively deeper hydro-desulphurization in order to meet lower S targets. The hydrotreating and hydrocracking processes remove naturally occurring polar fuel components which afforded relatively effective protection. The actual diesel cut also has an impact on the most important, active lubricity components.

As sulfur levels decrease

Lubricity propertiesdecrease

Result Pump & InjectorFailures

Q and A

• Why is water in the tank harmful?

• How often should tanks be cleaned?

• How do “bugs” survive in fuel?

• Why is ULSD more susceptible to bugs?

Importance of Proper Tank Maintenance

Why is tank maintenance critical? One word, WATER.

A significant amount of water in the tank will likely cause problems including, oxidative degradation (rust, scale), particulates and microbiological growth.

Water

Oxidative Degradation Particulates Microbiological growth

Microbes

Diesel Fuel

Water

• Bugs cannot grow in diesel fuel alone– Require water, carbon

and trace nitrogen for life, growth, & reproduction

– Water bottoms• Bugs live at a fuel water

interface– Any place a droplet of

water is present

Dead Microbes

Contaminants-Water• Water will;

– Promote bugs – aids in rapid filter plugging– Induce corrosion– Interaction with certain lubricity additives– Degrade biodiesel– Negatively impact cold flow improvers

• Helpful Hints– Check water separators daily– New (larger micron) fuel filters for winter operability– Don’t forget to check vehicle tank water levels often

Proper Tank Maintenance Tips

• Storage Tanks – Drain and remove all water and contaminants

quarterly and or prior to winter season.– Change filters and clean pump screens– Use Hydrosorb Filters (Warm Temperatures)– Send in bottom sample from tank quarterly– Have tanks cleaned annually

Observed In-Vehicle Field Problems with Emission Controlled Vehicles

• Vehicle dependent fuel filter blocking• Fuel pump gumming• Fuel line corrosion• Power loss, > 6%• Fuel Economy deficits• Not achieving oil filter PMI

Shortened PMI

Warranty IssueWarranty Issue

Diminished drive ability↑ CO2 , ↑ $$$ Fuel Spend

Shortened PMI

Not specific to one engine manufactureNot specific to one injector manufacturerHigh degree of regionality

Evolution of fuel injection pressures for heavy-duty

Pres

sure

at n

ozzle

-ba

r

1991 1994 2003 2006 20091997 20000

2500

1000

500

2000

1500

Inline pump

Unit injector

Unit pump

Common rail

Advanced high-pressurehigh-flexible FIE

source - Bosch SAE Oct. 2008

Typical HPCR fuel system

Suction filter

Lift pump

Pressure-side filter

High pressure pumpCommon Rail

Injectors

Injected fuel

Return

source - Cummins Inc. SAE Oct 2008

Fuel tank

Power Loss, Fuel Economy Deficits and Driveability Issues

• High incidence of “conventional” injector tip deposits• Evidence of slight fouling on matched tolerance components causing significant power

loss– Tolerance, 1 – 3 microns– Even “tarnishing” causes problem

• Widely reported in recent literature:- Bosch, Delphi, Siemens, etc.

Deposit Locales

Conventional

HPFI

Microns (μm) and HPCR tolerances• A micron is 0.001 mm (1 μm)• Human hair 70μm• Smallest you can see – 40μm• Rust Inhibitor - 1μm• Bacteria – 1μm• Many tolerances are measured in

microns– Spray hole diameters 150μm– Matched Clearance - 2μm ~

7μm– Filter media (final) 4μm ~5μm

(c)

-2μm ~ 7μm

source - Cummins Inc. SAE Oct 2008

Human hair 70μm

Fuel Filter Blocking - Illustration

Black deposit ex injector internal 3624

Particles appear to be agglomerates of smaller, hydrogen rich carbonaceous particles

Fuel Filter Blocking - Illustration

• Problems highlighted in medium duty urban fleets and mine vehicles

Highly Stressing Environments

Power Loss, Fuel Economy Deficits and Driveability Issues - “Non-Conventional” Injector Deposits

0 hrs 50 hrs 100 hrs166 hrs

166 hours without Additive 48 hours with Additive 96 hours with Additive

48 additionalhours withantifoulant

48 additionalhours withantifoulant

What Vehicles are affected?• The problem is a function of ULSD, Modern Injection System Technology, not

Vehicle Manufacturer.– All use High Pressure Direct Injection common rail technology (i.e. Higher

Temps, Higher pressures, tighter tolerances)- Up to 2,000 Bar

• Latest generation engines are experiencing problems to some degree or other

• Severity related to:-– Fuel– Additives– Fuel Rail Pressure– Duty Cycle– Engine Management ( time & temp of fuel soak)

Fleet users are becoming aware of systemic problems

What fuels are affected?

Least affected Most affected

All OEMs

ULSD B5 B10 B15 B20

CHS Experience• End users reporting abnormal filter plugging problems and

injector fouling issues (‘07)• OEMs discuss issue (SAE meeting Oct ‘08)

– Cummins, Deere, Detroit and Bosch• CHS arranges meeting with John Deere to discuss issues (End

Oct ‘08)• Deere performs engine testing on Innospec’s additive (Jan ‘09)

– 2500 hr test• CHS participates in joint field test with Deere (Feb ’08)

Engine Stand Test using PL-2293D (2nd Gen Eco Clean formulation)

Using a B20 blend

Energy Division Mission

• “High Quality” – CHS Energy will only provide products that meet or exceed industry standards.

• “Solutions” – CHS Energy will search for and create effective solutions for our customers that create a strategic advantage.

• “The Strength of the Cenex Brand – CHS Energy will be passionate about the protection and promotion of Cenex and related brands, allowing no compromise of its products or quality.

Ruby Fieldmaster“Quality Balanced System”

Ruby Fieldmaster & Roadmaster XL contains the following components, quality balanced for your area:

• Detergents• High Cetane• Lubricity Enhancers• Water Demulsifiers• Corrosion Inhibitors• Fuel Stabilizers• Soy Enhanced• Tracer

Ruby Fieldmaster & Roadmaster XLFeature/Benefits

Feature: Ruby Fieldmaster & Roadmaster contain “Corrosion Inhibitors” to provide superior corrosion protection.

Benefits:1) Prevents rust and corrosion formation on metal parts.2) Extends fuel life.3) Reduces engine wear.4) Reduces filter plugging.5) Reduces down time.

Ruby Fieldmaster & RoadmasterFeature/Benefits

Feature: Ruby Fieldmaster & Roadmaster contains“Aggressive Detergent Components” to keep fuel systems clean and performing at their optimum level. They achieved “Superior Pass” rating on the Cummins L-10 test.

Benefits:1) Cleans up and keeps injectors clean.2) Reduces injector fouling and clogging.3) Maintains ideal injector fuel spray pattern.4) Optimizes power and fuel economy.5) Improves combustion

Ruby Fieldmaster & Roadmaster XLFeature/Benefits

• Feature: “Cetane” enhances the ignition quality of a fuel.– The higher the cetane number, the easier the fuel will

ignite. – Typical #2 diesel fuel cetane number: 41. – Ruby Fieldmaster & CF Roadmaster cetane number: 47+

Benefits: Quicker starts, especially in cold temperatures. Smoother starting, less engine noise. Less smoke during start-up. Reduces exhaust emissions during start-up. Reduces wear and tear on engine.

Ruby Fieldmaster & Roadmaster XLFeature/Benefits

Feature: Ruby Fieldmaster & Roadmaster contain a “Lubricity Component”that provides increased lubricity.

Benefits:1) Protects injectors and injector pump against wear.2) Increases injector and injector pump life.3) Reduces maintenance costs.4) Reduces downtime.5) Improves lubricity of low sulfur diesel.

Ruby Fieldmaster & Roadmaster XLFeature/Benefits

Feature: Ruby Fieldmaster & Roadmaster include “Demulsifiers” for water shedding capabilities.

Benefits:1) Forces water to fall to bottom of tank to be drained.2) Moisture will not be carried through the fuel system.3) Reduces volume of moisture entering the combustion chamber.4) Reduces sulfuric acid metal erosion.5) Reduces filter plugging.6) Extends engine life.

Ruby Fieldmaster & Roadmaster XLFeature/Benefits

Feature: Ruby Fieldmaster & Roadmaster contain “Stabilizer and Anti-Sludge” components to increase storage life.

Benefits:1) Extends fuel life.2) Tolerates temperature extremes.3) Reduces varnish and gum build-up.4) Less filter plugging.5) Increases injector life.6) Provides maximum performance.7) Optimizes combustibility.

Field Test: Summary

• Test Results of Ruby Fieldmaster over #2 diesel fuel:

– 4.5% increase in power over #2 fuel.– Easier, quicker starting with less smoke.– No visible wear on injection pump versus visible wear

in 12 different areas with the #2.– Lower emissions: range from 2.6% to 9.1% less than #2

fuel.

Savings Calculations based on 4.5% improved power and fuel economy

from field testFuel 4.5% Diff. SavingsPrice Increase over #2 $.00/gal

$2.60/ gal $.117 $.05 $.067$2.80/ gal $.126 $.05 $.076$3.00/ gal $.135 $.05 $.085$3.20/ gal $.144 $.05 $.094$3.40/ gal $.153 $.05 $.103$3.60/ gal $.162 $.05 $.112$3.80/ gal $.171 $.05 $.121Note: The higher the cost of the fuel, the greater the savings.

Thank youfor your business!