EcoDual

www.ecodual.com

Ira H. DorfmanSenior Director –Business Development EcoDual, LLC ira.dorfman@ecodual.com 202-255-6050

Northeast Gas Association’s NGV Committee: The Compelling Case for

Dual Fuel Use in Class 8 Trucks

EcoDual About EcoDual

A South Carolina-based company located in Beaufort, SC

Affiliated with the Clemson University’s International Center for Automotive Research in Greenville, SC

Additional test facilities located in Santa Ana, CA

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EcoDual

EcoDual & Clemson University’sInternational Center for Automotive Research Development

EcoDual on-road engine development center to be located at CU-ICAR in Greenville, SCEcoDual & ICAR are also pursuing major commercialization projects for dual fuel locomotives through our new rail subsidiaryFull testing and fabrication facilities including two AC dynamometer cells

EcoDual History with Dual Fuel

A Dual Fuel diesel engine is a diesel engine that has been fitted to utilize natural gas as a supplemental fuel. The engine is basically unchanged and continues to use compression ignition of diesel for ignition of the NG fuel.

Has been used since 1935 for diesel generators but has had mixed successful for use in Class 8 trucks

With the addition of electronic engine control, the CAN bus, affordable engine sensors, and advance algorithms, adding dual fuel to a Class 8 engine can produce substantial emission reduction/fuel cost savings if done correctly 4

EcoDual Dual Fuel: The Fast Track to Expanded Natural Gas Use in US Transportation

120,000 NGVs in America today. The Class 7/8 truck market represents 6+ million trucks and 25% of the US transportation fuel use

New OEM natural gas truck engine deployment will only impact a relatively small percentage of the 200,000+ new Class 6-8 trucks sold annually

EcoDual’s natural gas/dual fuel solution for Class 7/8 trucks -- Initially focusing on the 15L Cummins ISX engine, the most popular Class 8 truck engine

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EcoDual’s system is simple, safe and reliable. It mounts post-turbo and takes one day to install -- including fuel tanks.

EcoDual EcoDual’s Patent-Pending SystemRuns on up to 85% natural gasNo loss in fuel economy (MPG)No loss in operating rangeCan use CNG or LNGNo power loss on hills or during accelerationNo mechanical or electrical modifications to the original diesel engineRuns on 100% diesel at full power and without adverse impact on emissions if natural gas is not availableCan electronically monitor/log real time natural gas substitution rates for regulatory agency compliance and fleet operator useDoes NOT void the engine warrantySignificantly quieter than the original engine on dual fuel

EcoDual Evidence of Environmental Benefits in EcoDual’s On-Road Test Results

3:1 reduction in regeneration cycle timevalidates large PM reductionSubstantial NOx reduction Cost Effective Diesel Emission Reduction Strategy: Relatively inexpensive conversion cost + high fuel use (18,000 + gallons/year) + 1,600 – 2,500 hours of on-road operation/year (80,000 – 125,000 miles)

EcoDual EcoDual’s Dual Fuel System Operating Concept Maximize Fuel Savings

The use of natural gas provides up to 40% operating fuel cost savings depending on fuel cost differential

Start Normal Idle High RPM/High Load

Percen

tage Fue

l

0%

100%

0%

20%

80%

100%

Percen

tage Fue

l

DieselNatural Gas

60%

40%

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Overnight High Idle

EcoDual EcoDual Responds to the High Priority Concerns of Major Fleet Operators

Meaningful fuel substitution rates – on average a minimum of 60-70% natural gas – the highest of any dual fuel system = 1 year return on investment

A Fully EPA/CARB Certified System – not just Outside Useful Life (OUL) approval or temporary EPA waivers –50-state availability without minimum mileage requirements

Provides CNG range of 412 miles with standard 46 dge tank system; runs at full power on diesel when CNG is not available – no tow charges; no range anxiety

A national network of OEM dealer support for sales, installation, warranty and spares

Truck-sized warranty and assurance that original engine warranty will not be voided

EcoDual EPA’s Outside Useful Life Approval is Only First Step to Full CARB/EPA Certification

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Light-Duty and Heavy-Duty Outside Useful Life Clean Alternative Fuel Conversions http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm

Fuel Information Conversion Original Vehicle Information Conversion Vehicle Information

Conversion Fuel

Original Fuel

Manufacturer

Model Year OEM OEM Test Group

OEM EvapFamilies

Eng Disp

Conversion Evap Family

Conversion Test Group Conversion Models Covered

Diesel or Diesel/CNG Diesel American Power

Group, Inc. 2004 Caterpillar 4CPXH0928EBK 15.2 BAPGH15.2CP4 C15

Diesel/CNG Diesel Clean Air Power, Inc.

1998, 1999, 2000, 2001, 2002

Caterpillar, Inc.

WCPXH0729ERK, XCPXH0729ERK, YCPXH0729ERK, 1CPXH0729ERK, 2CPXH0729ERK

11.9 BCLAH0729E6J C-12

Diesel/CNG Diesel Clean Air Power, Inc.

1998, 1999, 2000, 2001, 2002

Caterpillar, Inc.

WCPXH0893ERK, XCPXH0893ERK, YCPXH0893ERK, 1CPXH0893ERK, 2CPXH0893ERK

14.6 CCLAH0893E6J C-15

Diesel/CNG/LNG Diesel EcoDual LLC

2009, 2008, 2007, 2006, 2005, 2004

Cummins

9CEXH0912XAK, 9CEXH0912XAL, 9CEXH0912XAM, 8CEXH0912XAK, 8CEXH0912XAL, 8CEXH0912XAM, 7CEXH0912XAK, 7CEXH0912XAL, 7CEXH0912XAM, 6CEXH0912XAK, 6CEXH0912XAL, 6CEXH0912XAM, 6CEXH0912XAH, 6CEXH0912XAJ, 5CEXH0912XAH, 5CEXH0912XAJ, 4CEXH0912XAH, 4CEXH0912XAJ

14.9 BEDGE14.9ISX ISX

Gasoline/LPG Gasoline Parnell USA 2002 Ford 2FMXH05.4BHF2FMXE0155BAG, 2FMXE0155BAH, 2FMXE0155BBH

5.4 BPRLE0155BAG BPRLH05.4BH2 F-350 2&4WD

EcoDual EcoDual Target Market: Cummins and Detroit Diesel Engine Families Representing 3 Million Trucks

Engines Manufacturer

Model Displacement Horsepower EPA 2004 -2006

EPA 2007 - 2009

EPA 2010 -2012

Cummins –Approx. 31%of our market –mostly ISXs

ISM/ISX12 10.8L/11.9L 280 - 500 ✓ ✓ ✓

ISX/ISX15 14.9L 385 - 600 ✓ ✓ ✓

CAT -Approx. 19%of our market

C13 12.5L 350 - 525 ✓ ✓

C15 15.2L 435 - 550 ✓ ✓

Detroit Diesel -Approx. 25%of our market

MBE 4000 12.8L 350 - 450 ✓ ✓

Series 60 12.7L 380 - 515 ✓

Series 60 14L 470- 515 ✓ ✓

DD 13 12.8 L 350 - 470 ✓ ✓

DD 15 14.8L 455 - 560 ✓ ✓

MACK/Volvo Approx. 17%of our market

Maxidyne 370 12.1L 370 /405 ✓

MP7/D11 10.8 L 325 - 405 ✓ ✓ ✓

MP8/D13 12.8 L 415 - 505 ✓ ✓ ✓

MP10/D16 16.1 L 515 - 605 ✓ ✓

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EcoDual EcoDual’s Deployment Strategy: Wrapping Together Sales, Installation and Warranty for Fleet Owner Assurance

System will only be sold as a total package (electronics, tanks, fueling box, plumbing, etc.) to reduce risk and better manage cost/availability EcoDual has announced a national network of over 200 dealers through the WheelTime network for • Sales• Installations• Warranty• SparesTruck-sized warranty: 2 years/250,000 milesUp to 3-year financing available for systemsOn-site fueling stations options with strategic partners

EcoDual EcoDual’s Current Market

Drayage Port Market2 million TrucksClass 8 EnginesFunded by EPA’s SmartWay Drayage Program

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Off-Road Vocation Trucks1.5 Million TrucksClass 6/7/8 EnginesMining, Quarry, Waste Hauling, Concrete, Construction, Drilling, etc.

On-Road Freight Market

6.8 Million TrucksClass 6/7/8 Engines75% Short Haul and 25% Long Haul

Large LoadersMillions Class 6/7/8 Engines Operating as a GeneratorMining, Quarry, Concrete, Construction, etc.

EcoDual EcoDual is Ready to Deliver

Approved EPA OUL system for 2004-2009 Cummins ISXFull EPA/CARB certification on ISX underway – test protocol CARB approved; engine dyno testing has begun350 systems targeted for installation in 2012;6,000 systems targeted for 2013EPA-approved systems for multiple 2004-2012 Cummins and Detroit Diesel engines will available in 2012• Cummins ISX15 and ISM (ISX12)• Detroit Diesel Series 60, DD13, DD15

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EcoDual

EcoDual’s Next Generation R&D Efforts for Enhanced Emission Benefits

Collaboration with Clemson University’s International Center of Automotive Research on the development of advanced dual fuel engines to increase natural gas substitution rates, lower emission levels and reduce the requirements for aftertreatment Major engine manufacturers have strong interest in participating in the project A strong expression of interest in the project by both NREL and the US Department of EnergySuccessful development will lead to early commercialization in new OEM trucksAdvances in dual fuel engine design are applicable to multiple engine families for on-road and off-road use

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Thank You

EcoDual, LLC Limited Distribution 17

Ira H. DorfmanSenior Director – Business Development EcoDual, LLC ira.dorfman@ecodual.com 202-255-6050