ALTERNATIVE.EVERY
Philadelphia Diesel Difference Meeting Bill Boyce Cummins Westport Inc.
Cummins WestportA Cummins JV Company
• CWI is a 50:50 joint venture company based in Vancouver, BC Cummins Inc. - world’s largest builder of commercial
diesels, Westport Innovations Inc. - world leader in gaseous fuel
engine technology
• CWI offers 6 to 9 litre alternative fuel automotive engines. (CNG, LNG, LPG)
• Engines are manufactured by Cummins.• Local parts and service support through
Cummins Distributor network.
Cummins Inc.• More than 75 years –Leader in American diesel
manufacturing• World’s largest builder of commercial diesels• Designs, manufactures, distributes, and services
– electric power generation systems, engines, and related technologies, including fuel systems, controls, air handling, filtration, and emissions solutions.
• Headquartered in Columbus, Indiana (USA), – more than 550 company-owned and independent distributor
locations in 160 countries and territories. With 28,000 employees worldwide
– Cummins reported sales of $11 billion in 2006
• Cummins product development & manufacturing alliances include:
– Case, New Holland, IVECO, Komatsu, Westport, and Scania.
• Recognized as the world leader in gaseous fuel engine technology
• Originated from research at UBC in early 1990’s
• Public company on TSE, formed in 1995
• 170 people at Westport (including Cummins Westport, Westport Europe and Westport Germany)
• State-of-the-art facilities inVancouver, Canada:
7,400 m2 (78,000 ft2) of laboratory and office space
• Brought Gas expertise
Westport Innovations Inc.
Technology Innovation and Application Award
Why Natural Gas Engines for Buses & Trucks? Emissions Leadership
ISL G is the only Urban Bus and Truck engine that met 2010 EPA Emissions at launch in 2007
Greenhouse gas advantages
Energy SecurityReduced reliance on imported
oilLower fuel costsPathway to hydrogen
Emerging Economic BenefitsContinuous reliability improvementISL G Improved EfficiencyGreatest benefits in high fuel use
applications
U.S. Emissions Standards Continue to Change!
0.010.01 0.100.10
0.20.2
1.21.2
2.52.5
4.04.0
5.05.0
19941994
19981998
20022002
20072007
20102010
PARTICULATE [g/ HPPARTICULATE [g/ HP--hr]hr]0.00.0
0.00.0
NO
x /
NO
x+
NM
HC [
g/H
PN
Ox /
NO
x+
NM
HC [
g/H
P-- h
r]hr]
15 PPM15 PPM
500 PPM500 PPM
SULFURSULFUR
0.010.01 0.100.10
0.20.2
1.21.2
2.52.5
4.04.0
5.05.0
19941994
19981998
20022002
20072007
20102010
PARTICULATE [g/ HPPARTICULATE [g/ HP--hr]hr]0.00.0
0.00.0
NO
x /
NO
x+
NM
HC [
g/H
PN
Ox /
NO
x+
NM
HC [
g/H
P-- h
r]hr]
15 PPM15 PPM
500 PPM500 PPM
SULFURSULFUR
ALTERNATIVE.EVERY
Why Diesel?
Cummins original marketing plan…
C15 Rev 6/98
Simpler Cleaner Fuel
Complex Hydro Carbon
Simplest Hydro Carbon
Natural Gas (methane) has highest hydrogen-to-
carbon ratio of any hydrocarbon
What is changing?• Higher vehicle pricing to meet 2007 EPA
requirements
• Higher cost of Ultra Low Sulfur diesel fuel
• Additional costs to meet 2010 EPA requirements?
• The shifting economics of diesel operation
Diesel / NG Pathways 2007 to 2010Diesel
ULSDActive Diesel Particulate FiltersCEGR (ISC/ISL)NOx Adsorber or SCR
SCR more efficient but a liquid that will be regulated and taxed
Crank Case Ventilation (CV) ’07Lube Oil
Will require new, low ash oilNew Oil Filters
=Phase In
1.2 NOx + 0.01 PM (Avg.) in 20070.2 NOx + 0.01 PM in 2010
Natural Gas No change- CNG or LNG capable Replace Oxicat with Three Way Catalyst Add- CEGR (ISL G) No NOx adsorber required
No CV required–reduced maintenance vs. LBSI
No Change- Low Ash Oil in use today CES20074
Fleetguard Filter
=No Phase In
0.2 NOx + 0.01 PM in 2007
What are your alternatives?
• Get out your checkbook
• Manage better
• Keep increasing costs to a minimum
• Change vehicle specifications
• Maximize vehicle specs for fuel economy
• Consider other alternatives
Alternative Fuel Options
• Fuels– Biofuels (non-biodiesel ester)– Biodiesel– Di-Methyl Ether (DME)– Ethanol– Methanol– Gas to liquid– Coal to liquid– Water/diesel emulsions– Ethanol/diesel emulsions– Natural Gas (CNG / LNG)– Propane– Hydrogen– Hythane (NG + H)
• Criteria– Availability– Efficiency– Emissions– Infrastructure– Price– Safety
Alternative Fuel PropertiesCharacteristics Diesel Biodiesel MeOH EtOH NG LPG
Structure C18H36 C1 8H35O2 CH3OH C2H5OH CH4 C3H8
Cetane No. 40+ 40+ 10 10 -- 5
Octane No. -- -- 95 95 120 95
Energy (LHV) btu/gal(x1000) 128 119 57 76 85(LNG) 84 btu/cu. ft 1000(CNG)
Energy Storage 1 1.1 2.3 1.7 1.7 (LNG) 1.6 (relative vol.) 3.7 (CNG)
Volume and Range ComparisonTank Space
per 100 miRange Per 100
Gallons Tank Space
380 mi
170 mi
LNG
CNG26 Gal.
58 Gal.
Diesel
* Estimate based on 6.5 mpg diesel, and same efficiency for NG vehicle
15 Gal.650 mi
What About Natural Gas ?
• Cleaner burning than diesel• Abundant supply in North America• Engine efficiency improving over diesel• Renewable fuel – LFG to LNG• Can be less expensive to operate than diesel• Latest technology engines available
Comparison of Diesel to LNG• LNG
– 1 U.S. gallon weighs 3.4 lbs.– Heating value is 21,500 Btu
per lb, and 73,000 Btu per gallon.
– LNG is produced through a cryogenic process in which the gas is cooled to -258 degrees F. At that temperature point it becomes a liquid.
– In the liquid state, the vehicle can carry more fuel than CNG in a smaller area.
– Engine doesn’t know whether fuel is LNG or CNG, fuel enters engine as a gas.
• Diesel– 1 U.S. gallon weighs 7.1 lbs.– Heating value is 18,250 Btu per
lb and 129,575 Btu per gallon.
Natural Gas is a Safe Fuel
• Lighter than air• Rises• Doesn’t accumulate in low places• Rich mixture burns off slowly• Ignites at temperatures of approx.
600 C• Non toxic• Odorless-detection fragrance is
added• Evaporates quickly
• Heavier than air• Descends • Accumulates in low places• Rich mixture explodes• Gas and diesel vapors ignite at
approx. 200 C• Toxic, especially gasoline• Strong inherent odor
• Evaporates slowly at room
temperature
CNG Liquid fuels
CWI Natural Gas Engines Reduce Urban Noise
50.0
70.0
90.0
Peak Torque, F
ull Load
Low Idle, N
o Load
Engine Test Mode
Diesel bus engine C Gas Plus
Natural gas is 11.8 decibels quieter at idle
Natural gas is 6.1 decibels quieter at peak torque and load
50.0
70.0
90.0
Peak Torque, F
ull Load
Low Idle, N
o Load
Engine Test Mode
Dec
ibel
s d
B(A
)
Diesel bus engine C Gas Plus
Natural gas is 12.2decibels quieter at idle
Natural gas is 4.7decibels quieter at peak torque and load
Communities notice the natural gas noise
advantage.
ONE Diesel engine idling is louder than TEN natural gas engines
idling together
Alternative Fuel Challenges
• Costs – Infrastructure and equipment
• Performance
• Emission reduction trade-offs
• Infrastructure and fuel availability
• Impact on engine component reliability
ALTERNATIVE.EVERY
The Global Market for Energy
U.S. Transportation Petroleum Use
0
2
4
6
8
10
12
14
16
18
20
22
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Source: Transportation Energy Data Book: Edition 22, September 2002and EIA Annual Energy Outlook 2003, January 2003
Mil
lio
ns
of
Ba
rre
ls p
er
Da
y
Domestic ProductionDomestic
Production
Actual Projected
Light Trucks
Heavy Vehicles
Year
Air
MarineMarine
RailOff-roadOff-road
Cars
•Diesel and natural gas prices follow a fairly predictable pattern in relation to crude oil prices with natural gas being less expensive than diesel fuel•When crude oil prices rise, natural gas prices tend to rise less than diesel prices do, widening the price gap
•If anything, at today’s higher crude oil prices natural gas prices are less than this historical relationship
Natural Gas Fuel Costs Less
Price History for Crude Oil, Diesel Fuel, andPipeline Natural Gas for Commerical Customers
442.5¢
166.87¢
$125.40
0
50
100
150
200
250
300
350
400
450
Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
Pric
e [U
S $
per
bar
rel o
r U
S c
ents
per
die
sel-e
quiv
ale
nt g
allo
n].
U.S. No 2 Diesel Retail Sales by All Sellers [Cents per Gallon]
Natural Gas for Commercial Consumers [Cents per Diesel-Equivalent Gallon]
Cushing, OK WTI Spot Price FOB [Dollars per Barrel]
Diesel Fuel
Natural Gas
Crude Oil
data source: US DOE Energy Information Administration
due to a lag in data reporting on the EIA website, NG prices are only to March 2008
(12.84 $/MMBTU)
$12.84 MMBTU = $77.04 Barrel$12.84 MMBTU = $1.83 DGE
US Price of Diesel and Natural Gas vs. Crude OilMonthly Prices, April 1994 to January 2008
y = 0.0166x + 0.525
R2 = 0.7764
y = 0.0319x + 0.5357
R2 = 0.9743
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
10 30 50 70 90 110
Crude Oil Spot Price (Cushing, OK WTI Spot Price FOB) [US Dollars per Barrel]
Fue
l Pric
e [U
S D
olla
rs p
er D
iese
l-Equ
ival
ent G
allo
n]
U.S. No 2 Diesel Retail Sales by All Sellers [Dollars per Gallon]
Price of Natural Gas Sold to Commercial Consumers in the U.S.[Dollars per Diesel-Equivalent Gallon (Westport unit conversion)]
data source: US DOE Energy Information AdministrationWestport analysis
Price Comparison PlotNatural Gas price advantage grows as crude prices riseNatural Gas price advantage grows as crude prices rise
Conclusions• Both diesel and natural gas prices have trended
upward with crude oil prices.
• The diesel to CNG price gap is widening.
AND• CNG to Diesel fuel economy gap is closing
• These factors can improve CNG Vehicle Life Cycle Costs.
ALTERNATIVE.EVERY
Natural Gas Engine Technology for 2007
• Cummins has been developing natural gas fueled engines for heavy duty vehicle applications since the 1980’s and marketing them since the early 1990’s
• Today over 17,000 engines have been produced powered by compressed and liquefied natural gas or propane (LPG)
Cummins Natural Gas History
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
1990 1992 1994 1996 1998 2000 2002 2004 2006
CumulativeAlt FuelSales
Introducing Next Generation 2007 Natural Gas Engine Technology• ISL G currently meets
2010 emissions standards ahead of schedule
• 85% lower NOx than previous engines
• 34% more torque at idle• Improved efficiency =
improved fuel economy• No exhaust related
maintenance costs
Four Generations of Natural Gas Engines
1998C8.3G Mechanical
2001C Gas Plus
2004 L Gas Plus
2007
ISL G
• Stoichiometric EGR combustion
• Three Way Catalyst
• First HD engine certified 2010 NOx and PM levels
ISL G – Next Generation Natural Gas Engine– Stoichiometric Engine
– Lowest emissions • 0.20 g/bhp-hr NOx
• 0.01 g/bhp-hr PM
– Higher efficiency• Target: 5% fuel economy
improvement vs. CWI’s current products
– Diesel-like reliability & durability
– Improved performance - Higher clutch engagement torque
ISL G 280 vs. C Gas Plus 280Torque (lb-ft)
550
600
650
700
750
800
850
900
950
1000 1200 1400 1600 1800 2000 2200 2400
Engine Speed (rpm)
Torq
ue (l
b-ft)
ISL G 280 C Gas Plus 280 ISL05 280
The Two Key Emission Technologies
for 2007 ISL G Natural Gas Engines
• Cooled Exhaust Gas Recirculation (CEGR)
• Three Way Catalyst (TWC)
Cummins
CumminsEmissions Solutions
Change to Stoichiometric Combustion Engine.
Meet 2010 emission standards in a one step change
No further aftertreatment is required
Customer Experience-Diesel vs. NG
Just Like Cell Phones, Natural Gas Engines have Continued to Improve
Better*WorseWorseWorseLCC
2007200119961989Timeline
SimilarSimilarWorseWorseDurability
Better*SimilarWorseWorseFuel Cost/Mile
SimilarSimilarWorseWorseReliability
BetterBetterBetterBetterEmissions
’07 ISL GC PlusC 8.3L 10 G
Better*WorseWorseWorseLCC
2007200119961989Timeline
SimilarSimilarWorseWorseDurability
Better*SimilarWorseWorseFuel Cost/Mile
SimilarSimilarWorseWorseReliability
BetterBetterBetterBetterEmissions
’07 ISL GC PlusC 8.3L 10 G
*Must Have Fuel Price Differential to be lower
Consider the Natural Gas Alternative
• Things have changed since 1989
• Meeting 2010 emissions in 2007
• Natural gas as a lower cost alternative
• Natural gas not for everyone
ALTERNATIVE.EVERY
Life Cycle Cost Drivers
Natural Gas: Key Economic Drivers1. Six fold increase in CWI reliability/durability since 2001
2. CNG is closing maintenance cost gap
– Basic service intervals same as diesel– Spark ignition will result in slightly higher scheduled maintenance
costs
3. Fuel cost savings can be significant
– CNG’s lower cost contributes to lower LCC– CWI Fuel economy gap closing
• 17% in 2005• 10% in 2007• 7% in 2010
Fuel Pricing Creates Economic AdvantageFuel price differential creates overwhelming benefit for NG
Natural Gas Breakeven Price: $0.73 Less/DGE $0.93 Less/DGE $0.62 Less/DGE
Transit Refuse Truck $1,500/bus/yr $1,200/truck/yr $1,200/truck/yr
200 buses 50 Trucks 50 Trucks
$7.2 M Capital $875K Capital $875K Capital45,000 miles-3.5 mpg 15,000 miles-1.5 mpg 65,000 miles-6.5 mpg
Every 10 cents Saved in Fuel price = thousands in savings
$100 USD Crude!
Highway/Energy Bill Private Fleets Currently Using Diesel Fuel
$0.60
LNG $/ DGE
CNG$ / DGE
CNG$ / DGE
To Fleet
To Fuel Provider
To Fuel Provider or
Fleet
Net Benefit
$32,000 Vehicle Credit To Fleet
$0.68
$30,000 Infrastructure Credit To Fleet
Energy Bill*
Highway Bill*
All Infrastructure
Don’t Own Infrastructure
Own Infrastructure
* CWI’s Interpretation Subject to IRS Rule Making
$0.60
Oct 1, 2006
Natural Gas Vehicles Ease Squeeze on City Budget
• Source - KFSN Fresno, CA Friday, 21 March 2008 USA, Fresno
The Californian city of Fresno is celebrating it's investment decision of five years ago, when it switched some of it's fleet to natural gas. KFSN reports with the price of diesel fuel skyrocketing so far this year the city has been forced to pay out $400,000 dollars more to fuel its fleet than budgeted but, "we would have been $1.2 million over had we not switched to liquid natural gas (LNG)," said Joseph Oldham, Fresno Fleet Supervisor.
"Now we've seen not only emissions benefits but cost savings by running alternative fuels." Compared to the typical diesel garbage truck the city's 80 natural gas powered ones are not only cheaper to run they're quieter and don't pollute the air as much. By the Year 2010 Fresno plans to replace its' entire fleet of garbage trucks by ones that run on natural gas, on the way to even bigger savings down the road.
ALTERNATIVE.EVERY
Where are we now?
ISL G ApplicationsREFUSESpecialty BusTruck
OEM Availability North America
OEM Model Segment B Gas Plus B LPG Plus ISL G Comments
Sterling Truck Setback 113 (Class7/8) MD/HD Truck X LNG May '08 -CNG option in '09
American LaFrance Condor Refuse XAutoCar WX / WXLL Refuse XCrane Carrier LCF Refuse XPeterbilt 320 Refuse X
Mack TerraPro Series Refuse X New '08Blue Bird Ultra LF Shuttle XEl Dorado National Axess/E-Z Rider II/Transmark RE/XHF Shuttle X XFreightliner Custom Chassis MB-55 Shuttle X XOptima Bus AH-28 (CNG + Propane) Shuttle X XBlue Bird All American School Bus X Available July '08
Thomas Bus Saf-T Liner School Bus X Available July '08Elgin Eagle/Broom Bear/Crosswind Sweeper X XAllianz Sweeper 4000 Sweeper X XSchwarze A7000 Sweeper X X
Tymco Model 600 Sweeper X XNABI 35 LFW/40 LFW/60 BRT Urban Bus XNew Flyer 30 LF/35 LF/40 LF Urban Bus X
Orion Orion V HF/Orion VII LF Urban Bus XCapacity TJ9000 (LNG), TJ5000 Yard Spotter X X X ISL G now availableOttawa Yard Spotter X X
Re-PowerComplete Coach Works Freightliner M2 Business Class MD/HD Truck X ISL G Re-Power
Fontaine Modification Company Freightliner M2 Business Class MD/HD Truck X
August 2008
Similar Maintenance ScheduleEvery 12,000 km Every 24,000 km Every 36,000 km Every 48,000 km
(7,500 Mi), 500 Hrs (15,000 Mi), 1000 Hrs (22,500 Mi), 1500 Hrs (30,000 Mi), 2000 Hrs
or 6 Months (1)(3) or 12 Months (1)(3) or 18 Months (1)(3) or 2 Years (1)(3)
Whichever Comes First Whichever Comes First Whichever Comes First Whichever Comes First
Operator's Report - Check Catalyst Housing - Check Exterior Drive Belt - Check Spark Plugs and Boots- Replace (6) Vibration Damper - CheckEngine Oil - Check, add if required Air Cleaner - Check Automatic Belt Tensioner - Check Ignition Coils - Check Turbocharger - CheckEngine Coolant - Check, add if required Charge Air Cooler - Check Fan Hub, Belt Driven - Check Engine Coolant - Flush and ReplaceCooling Fan - Check Charge Air Piping - Check Water Pump - Check Air Compressor - Check
Radiator Hose - Check Lubricating Oil - Change(4) Catalyst - Check
Air Intake Piping - Check Lubricating Oil Filter - Change(4) Engine Fuel Filter - Replace
Fuel Filter - Drain(2)
Supplemental Coolant Additives
(SCA) and Antifreeze - Check(5) Overhead Valve Lash- Adjust (7)
Throttle Response - Check Coolant Filter - Change(5)
Crankcase Breather Tube - Check
7. Initial valve lash adjustment only - therafter regular adjustment interval is 2000 hours
6. Use only Cummins authorized spark plugs for scheduled maintenance or repairs. The use of unauthorized parts can affect performance and emission control system. The recommended 36,000 km [22,500 mile] interval is based on an average vehicle speed of 24 kph [15 mph] and must be derated accordingly for slower speed applications (i.e. 1500 hr times average kph [mph] = distance maintenance interval).
Daily or Refueling
ISL G Maintenance Schedule(1)
1. Follow the manufacturer's recommended maintenance procedures for the starter, alternator, generator, batteries, electrical components, air compressor, refrigerant compressor, fan clutch, and OEM fuel filter.
2. Interval period for draining the fuel filter is dependent on the fueling station and varies for each location. The drain interval should be adjusted to the time required to accumulate no more than one ounce of oil in the fuel filter.
Note: Refer to the appropriate manual for complete inspection and maintenance procedures.
3. At each scheduled maintenance interval, perform all previous checks in addition to the ones specified.
4. Refer to Table 1, Oil Drain Intervals for oil and filter change intervals based on average speed.
5. Do not change the coolant filter if the SCA is over 3 units. Refer to Section V.
Same Schedule as Diesel – Some
Different Maintenance
Items
Warranty - Every Coverage
•Base Warranty for Bus/Shuttle, School Bus and Truck are the same as dieselBase Warranty for Bus/Shuttle, School Bus and Truck are the same as diesel
•Extended Coverage options are available for Truck and Bus CustomersExtended Coverage options are available for Truck and Bus Customers•5 yr 200,000 mile or 300,000 mile - Transit5 yr 200,000 mile or 300,000 mile - Transit•4 yr / 5 yr 150,000 mile Vocational -Truck4 yr / 5 yr 150,000 mile Vocational -Truck•4yr / 5 yr 150,000 mile Turbocharger -Truck4yr / 5 yr 150,000 mile Turbocharger -Truck•6 yr, 300,000 mile Major Component – All applications6 yr, 300,000 mile Major Component – All applications
•All warranty programs administered per Cummins Standard PoliciesAll warranty programs administered per Cummins Standard Policies
What is Next?• Think about what happens next with fleet fuels?
• Think about using Natural Gas for the right applications?
• Find the best alternative for your duty cycle?
Biomethane• Using biomethane as a renewable fuel has significant
greenhouse benefits:• During combustion, biomethane is converted to carbon
dioxide (a 21 times greenhouse gas savings)• Biomethane is a renewable resource that displaces fossil
fuel 100%.• The biomethane that is burned as fuel in place of fossil
fuels produces less greenhouse gas than the fuel it replaced.
• Cummins Westport approves the use of up to 100% biomethane that meets published natural gas fuel specifications per Cummins Application Engineering Bulletins
Summary
• Proven technology – Cummins support• Commercially available from OEM’s
– Listing at www.cumminswestport.com
• Lower emissions- tailpipe and community noise.• Lower total costs with natural gas• Lower Well to Wheel Greenhouse Gas• Biomethane low carbon option
Thank You
Bill Boyce
East Coast Regional Sales and Marketing Manager
Tel: 330-534-8352
Mobile: 330-720-9785
Email: [email protected]
www.cumminswestport.com