I suppose a stiff warning that the warranty is void if high sulfur fuel is used and if it has been it would be very obvious.
What warranty?

BMW stopped using Nicasil by 1997 (at least in car engines) because a superior process became available: Alusil.
There are two detrimental processes going on in an engine which has Nikasil coated cylinders. Some facts:
1) Sulfur is found in petrol as well as oils. In regulated markets the sulfur content in petrol is 5 to 20 ppm, in other markets it may be substantially more.
Sulfur content in typical dual grade oils according to API-SN (for engines made before 2011) is 2000 ppm.
2) Sulfur is a strong attacker on nickel, which is the matrix material of Nikasil plating. There is practically no composition in which nickel is an ingredient that isn't cracked by sulfur. Nickel and sulfur forms nickel-sulfide (NiS), which crumbles and will be washed out with exhaust gases, or trapped by lube oil which then takes on a shade of silver. This process will gradually remove the coating and is an ongoing process, the speed of which depends on several factors, e.g. pressure, temperature, revs, and the amount of reactive sulfur in petrol and lube oil. (Source: Maserati Forum)
3) The sulfur-Nikasil reaction predominantly takes place at the top of the cylinder bore, where there is most pressure and contact between combustion gases and the cylinder lining of Nikasil plating. The break down process over time causes an increased gap between piston and cylinder, resulting in lower compression, an ingress of combustion gases to the crankcase ("leak-down"), and ever increasing oil consumption. Poor sealing of piston rings and increased friction will damage the rings and ultimately the piston itself.
4) Free sulfur is water-soluble, a by-product of the combustion of petrol, which results in the formation of sulfuric acid. The latter is a very aggressive acid. The reaction goes like this: "O2 + S -> S02; SO2 + H2O -> H2SO3" (sulfuric acid) which allows nickel to corrode more than an iron liner would have. Formation of sulfuric acid is exacerbated in large capacity engines such as V8 and V12 engines, due to the fact that these engines run relatively cooler and at a lower compression than smaller engines. Over time the sulfuric acid will corrode the Nikasil lining causing the cylinder walls to become scored, sometimes through the coating and into the underlying engine block. The corrosion takes place along the entire length of the lined cylinders. This in turn causes the cylinders and pistons to lose compression, wear to accelerate and ultimately leads to premature engine failure.
(Sources: Maserati Forum; BMW Repair Guide Forum)
https://www.popularmechanics.com/cars/a6643/top-automotive-engineering-failures-jaguar-nikasil-v8/
https://rennlist.com/forums/attachm...-the-block-be-honed-alusil-nikasil-blocks.pdf
-Knut
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