TheThe ProvenProven Heating Oil AdditiveHeating Oil Additive™

Product BackgroundProduct Background Co-developed by Mobil Oil Corp. R & D & Co-developed by Mobil Oil Corp. R & D &

Octel-America (DuPont) for Terminal Octel-America (DuPont) for Terminal additizationadditization

Bench-Tested in Lab, Trials in Several NE Bench-Tested in Lab, Trials in Several NE MarketsMarkets

Extensively Field Tested with Extensively Field Tested with Santa FuelSanta Fuel CoCo. in Bridgeport CT . in Bridgeport CT

Presented at Brookhaven National LabsPresented at Brookhaven National Labs

Fractional Distillation ColumnSeparates crude oil components by boiling ranges

Why the need for a Heating Oil AdditiveWhy the need for a Heating Oil Additive ?? Refinery processes generally result in Refinery processes generally result in poorpoor fuel quality fuel quality ““Cracking” hydrocarbons creates more higher valued Cracking” hydrocarbons creates more higher valued

products from low-gravity bottoms, but changes products from low-gravity bottoms, but changes molecular structure of feedstock, resulting in: molecular structure of feedstock, resulting in: • Unstable productUnstable product with chemically reactive bonds with chemically reactive bonds• Fine particulatesFine particulates (sludge pre-cursors), then (sludge pre-cursors), then• SludgeSludge (gums, varnish, sediment, etc.) which can- (gums, varnish, sediment, etc.) which can-• Clog filtersClog filters, strainers, nozzles, creating, strainers, nozzles, creating

• Fuel-related service problems Fuel-related service problems

Fuel StabilityFuel Stability A fuel is considered unstable when it

undergoes chemical changes that produce undesirable consequences such as insoluble gums, deposits and sediment that can plug fuel filters or fuel injection systems.

What should a Heating Oil Additive doWhat should a Heating Oil Additive do ? ? Stabilize fuelStabilize fuel by disabling chemically reactive by disabling chemically reactive

bonds (prevents cracked molecules from bonds (prevents cracked molecules from recombining, ‘recombining, ‘repolymerizationrepolymerization’) ’)

Gradually Gradually dissolvedissolve sludge and disperse water sludge and disperse water CleanClean fuel system and nozzles fuel system and nozzles ProtectProtect tank from rust and corrosion tank from rust and corrosion DeactivateDeactivate metal particles in fuel metal particles in fuel

An Effective Heating Oil Additive An Effective Heating Oil Additive program will:program will: Reduce Fuel-related Service CallsReduce Fuel-related Service Calls Reduce Demands on Service Technicians Reduce Demands on Service Technicians Increase Customer Satisfaction, andIncrease Customer Satisfaction, and Be a Powerful Be a Powerful Marketing ToolMarketing Tool

Why use Avalux Heating Oil AdditiveWhy use Avalux Heating Oil Additive ? ? Components in Avalux: Components in Avalux:

Considered “Considered “Gold StandardGold Standard” in Industry” in Industry Basis for only long term stability additive for US Basis for only long term stability additive for US

ArmyArmy The only chemical type approved by US NavyThe only chemical type approved by US Navy Regarded as best available Detergent/dispersant Regarded as best available Detergent/dispersant Work Work immediatelyimmediately to stabilize fuel, clean fuel to stabilize fuel, clean fuel

system and disperse watersystem and disperse water Formulated to work Formulated to work graduallygradually to dissolve sludge to dissolve sludge

PROVEN TO REDUCE FUEL RELATED SERVICE CALLS!PROVEN TO REDUCE FUEL RELATED SERVICE CALLS!

Filter Replacement Rate

Filters per 100,000 gal. delivered

0

5

10

15

20

25

30

35

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

# of

Filt

ers/

100,

000

gal. 92/93

94/95

95/96

98/99

00/01

01/02

Economics:Economics:Cost vs. SavingsCost vs. Savings SantaSanta FuelFuel experienced a reduction of 11.1 experienced a reduction of 11.1

fuel-related service calls per 100,000 gals. fuel-related service calls per 100,000 gals. delivereddelivered

At $100 per service call, a At $100 per service call, a savingssavings of $1,110 of $1,110 Cost to additize 100,000 gals. is about $500Cost to additize 100,000 gals. is about $500 Net Savings is $610 per 100,000 gals. Net Savings is $610 per 100,000 gals.

delivered.delivered.

How to Additize FuelHow to Additize Fuel Three Basic Methods-Three Basic Methods-

Hand-AdditizeHand-Additize to Storage or Truckto Storage or Truck

•Calibrated Containers (9000:1 Treat-Calibrated Containers (9000:1 Treat-rate)rate)

Bulk Plant Injection SystemsBulk Plant Injection Systems, or, or

On-Truck Injection SystemsOn-Truck Injection Systems

•(4000:1 Treat-rate)(4000:1 Treat-rate)

Other issues impacting fuel qualityOther issues impacting fuel quality Heating Oil has become a Heating Oil has become a commodity !commodity !

Now Unbranded / NYMEX quality Now Unbranded / NYMEX quality standards standards

Mixing of fuels creates an even Mixing of fuels creates an even lessless stable blendstable blend

Distillates produced to “Distillates produced to “fungiblefungible” ” standards in NEstandards in NE

Colonial Pipeline / Buckeye Pipeline set Colonial Pipeline / Buckeye Pipeline set minimumminimum distillate specifications. distillate specifications.