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CUFC EPA2010 Update

CUFC EPA2010 Update. Mike Finney Vocational Sales Manager, Utilities and Cranes May, 2009. Agenda. Why SCR? EPA10 SCR Equipment Component Packaging Vehicle Performance/Operation Cummins Experience – SCR vs Extreme EGR Diesel Exhaust Fluid Myths DEF Infrastructure Summary M2e Hybrid

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CUFC EPA2010 Update

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  1. CUFC EPA2010 Update Mike Finney Vocational Sales Manager, Utilities and Cranes May, 2009

  2. Agenda • Why SCR? • EPA10 SCR Equipment • Component Packaging • Vehicle Performance/Operation • Cummins Experience – SCR vs Extreme EGR • Diesel Exhaust Fluid Myths • DEF Infrastructure • Summary • M2e Hybrid • Natural Gas Vehicles

  3. 33% Urea concentration in water • Clear & odorless • Non-toxic and biodegradable • Corrosive to aluminum • Weight = 9.2lbs/gallon • Freezing point = 12° F (will require • heated tank and injection lines) Common Terms Overview • SCR = Selective Catalytic Reduction • A vehicle emissions control technology to reduce diesel engine emissions for passenger cars, light & heavy duty trucks. Reduces NOx using a reducing agent by converting NOx into nitrogen, water and tiny amounts of carbon dioxide. • DEF = Diesel Exhaust Fluid • A solution of 32.5% automotive-grade urea and 67.5% purified water used in the SCR process; also referred to as AUS32 32.5% Urea 100% DEF Diesel Exhaust Fluid 67.5% Water

  4. Overview Common Terms • DOC = Diesel Oxidation Catalyst • Part of the 2007 Aftertreament system that converts soot into ash • DPF = Diesel Particulate Filter • Part of the 2007 Aftertreatment system that traps ash • ATD = AfterTreatment Device • Combination of DOC and DPF used to meet 2007 EPA emissions standards • SCR Catalyst • EPA 2010 hardware used to convert NOx into Nitrogen and Water

  5. Exhaust Gas Recirculation at lower levels than EPA 2007 Exhaust Gas from DPF Outlet Containing Nitrogen Oxides (NOx) Precisely Controlled Quantities of 32.5% DEF Solution Injected Into the Exhaust Stream Ammonia and Nitrogen Oxides React In the Catalyst to Form Nitrogen and Water DEF Solution “Hydrolyzes” Into Ammonia Gas Which Mixes with the Exhaust Gas SCR Device How SCR Works Overview Intake Throttle Valve = Exhaust NOx PM Doser P T T T NOx Diesel Oxidation Catalyst (DOC) Diesel Particulate Filter(DPF) N2 H2O

  6. SCR Benefits • SCR is better economics… with 3 - 5% better diesel fuel economy than equivalent HD 2007 engines, and 5 – 9% better than a high EGR approach for medium duty engines, SCR is the first emissions change to provide a cost benefit to the customer. • SCR is cleaner… SCR is the only technology that is able to meet NOx levels of 0.2g/bhp-hr at the tailpipe. Customers can be proud to support environment improvements. • SCR is convenient… Fewer active regenerations will improve operational flexibility. DEF supply will not be an issue and will become second nature to driver when operating their vehicles. • SCR is proven… With over 600,000 SCR vehicles in operation in Europe and over 10 Million SCR test miles run in the United States customers can be confident in SCR.

  7. Daimler Vehicles Daimler Trucks – Trucks forthe World! Truck market (Med/Hvy): 2.1 Million units 2008 Principal Daimler Trucks production sites in the world Manufacturer Market share Vehicles Components

  8. Overview Most Engine and Truck OEMs Are Gearing Up For SCR In 2010

  9. SCR Equipment • New major components for 2010: • Understep or Vertical system contains both ATD & SCR catalyst • OR • 2 Box separates ATD & SCR catalyst (est. 10% vehicles) • DEF plastic storage tank (6, 13, 23 gallon sizes) ISB/C Switchback DD13 1-Box

  10. Fact – actual SCR design SCR Equipment - Myth vs Facts Myth - what the competitor says SCR will look like

  11. SCR DPF MD 1-Box Understep ATS • Pros: • Clear BOC solution • Lightest weight • Cons: • LH fuel tank only

  12. MD 1-Box Understep ATS W/HZ Outlet 2nd 1 box system (current DC 016-1BT)

  13. SCR DPF MD 2-Box Vertical ATS (2V2) Left-hand and Right-hand configurations required for markets, e.g. Snow Plows Cummins configuration in M2-106 shown

  14. MD 2-Box Vertical ATS (2V2) Left-hand and Right-hand configurations required for markets, e.g. Snow Plows DD13 configuration in M2-112 shown

  15. DPF SCR MD 2-Box Horizontal (2HH) • Pros: • Clear BOC solution • Familiar design • Support dual fuel tanks • Cons: • PTO restrictions • W/B restrictions

  16. DEF Storage and Injection System MD 13 & 23 Gallon DEF Tank Mtg 19mm fillerneck (smaller than diesel nozzle) DEF Dosing Pump MD CBOC 6 Gallon DEF Tank

  17. SCR Equipment • Compared to EPA07 weight increase for EPA 2010 will be approximately 217lbs – 500lbs • Lower weight for medium duty with 6 gallon DEF (217 lbs) • ISB with SCR expected to be 325 lbs lighter than Maxxforce DT w/high EGR • Higher for on-highway w/23 gallon DEF (up to 500 lbs) • Includes the weight of DEF • SCR hardware is designed to last the life of the vehicle • Current maintenance intervals will not change • DEF filter will need replacement at approximately 200,000 to 300,000 miles

  18. Gauges/Lights Vehicle Performance/Operation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Full Empty % DEF in tank

  19. Gauges/Lights Vehicle Performance/Operation • 0% to 2.5% DEF tank level: • - Under no circumstances will the engine be shutdown due to running the vehicle out of DEF or putting the improper fluid in the DEF tank • After prolonged driver warnings and clear evidence of safe vehicle situation, vehicle speed may be limited to 5 mph. • after refueling diesel tank • vehicle stationary for more than 1 hour • after restart 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Full Empty % DEF in tank

  20. Vehicle Performance/Operation • SCR system will detect when an improper fluid has been put in the Diesel Exhaust Fluid tank • When improper or contaminated DEF is detected, the following inducement will be employed: • 25 % engine derate • 55 mph speed limit imposed • After 1,000 miles or 20 hours of operation without remedy a more significant action will be initiated in which the vehicle speed will be limited to 5 mph provided one of the following conditions are met: • after refueling diesel tank • vehicle stationary for more than 1 hour • after restart Malfunction Indicator Lamp • Under no circumstances will the engine be shutdown due to running the vehicle out of DEF or putting the improper fluid in the DEF tank

  21. Less Diesel Consumed The combination of EGR, DPF and SCR exceeds the emission standards while saving diesel. Less Active Regeneration The higher engine-out NOx allow for DPF regenerations at lower temperatures, therefore increasing passive regenerations and reducing active regenerations. Less Heat Rejection The internal combustion process can be tuned for higher engine-out NOx levels. This results in higher combustion temperatures, less heat rejected and therefore higher thermal efficiency. Vehicle Performance/Operation Engine Optimized for Fuel Efficiency 3 - 5% better diesel fuel economy than comparable HD 2007 engine 5 - 9% better diesel fuel economy than extreme EGR approach on MD 2010 engine

  22. Cummins Experience – High EGR vs SCR 5 Reasons Cummins chose SCR vs High EGR for EPA10 • Reliability • Cummins found high-EGR engines produce condensation in the engine which severely impacts life to overhaul (20 to 25% reduction) • Fuel economy • Cummins SCR solutions found to be 5-9% more fuel efficient than high-EGR • Performance • High-EGR would have resulted in 50-100hp loss for same displacement engine • Throttle Response • Better throttle response in 2010 with SCR • Operating Range • Wider sweet spot for driveability and enhanced fuel economy

  23. Cummins Experience – High EGR vs SCR Costs for meeting emissions change • Clearly there are costs associated with meeting tightening regulations • Cummins found that there would have been costs with either high-EGR or SCR solutions. • High-EGR: complex changes to EGR system, air handling system, vehicle cooling systems. Twin turbos, additional coolers, new hoods and cooling systems, new injection system and electronics • SCR: addition of SCR catalyst, tanks, lines • SCR is the solution that provides long term payback • MD 5-9% fuel economy differential between SCR and high-EGR • SCR has no degredation in durability/reliability • SCR has no change to maintenance intervals • SCR extends duration between DPF Regen cycles

  24. Cummins Experience – High EGR vs SCR • Heat rejection – significantly lower heat rejection for SCR • No hood or cooling package redesign needed • This drives cost for high-EGR solution • Power ratings – no change in power for same displacement engine • High-EGR would have either had to reduce hp by 50-100 hp depending on the platform or increase displacement • This drives cost and adds weight for high-EGR solution • Weight – impact minimal • SCR approximately 217 lbs on midrange (including 6 gallons DEF) • High-EGR – weight of EGR cooler, additional turbo, etc on engine • Fuel Economy – significantly better fuel economy • Starting at a fuel advantage already with 2007 product • SCR significantly more fuel efficient than high-EGR for MD products (laws of physics) • Any compensation to reduce (although not eliminate) condensation/reliability issues only further impacts fuel economy in a negative way. • This provides payback for SCR solutions which high-EGR would not have

  25. Fiction DEF Fact or Fiction? Fact: DEF is corrosive, hazardous, and unsafe to handle • Material Safety Data Sheet (MSDS) • Hazards Identification “Urea Solution is not Flammable” • First Aid Measures“Wash area thoroughly with soap and water” • Fire Fighting Measures“Urea solution is not flammable” • Transportation Information“Urea solution is not listed by any US or Canadian transportation authority as a hazardous material…”

  26. Fiction DEF Fact or Fiction? Fact: Urea becomes toxic at 118°F “Urea does not become toxic at any temperature” “…at 122°F, DEF will still meet ISO specifications of less than 0.2% ammonia for at least 35 days. At that rate with would take more than 2 years to reach the ammonia level of household ammonia which is still not classified as toxic” James Spooner VP & GM Colonial Chemical Company

  27. Fiction DEF Fact vs. Fiction EPA Requires DEF flow within 70 minutes – Detroit Diesel testing has proven DEF flow within EPA requirements Fact: DEF is useless in the cold because it freezes at 12°F Engine coolant is used to thaw DEF in tank. System will function until DEF begins to flow DEF will start to freeze at 12°F

  28. DEF Shelf Life at Constant Temperature (average temperature during month of July) 50 45 40 35 30 44 Months 74°F avg. July temp 41 Months 75°F avg. July temp Months 25 36 months 77°F avg. July temp 20 15 10 7 months 5 0 Los Angeles Chicago Atlanta Phoenix Fiction DEF Fact vs. Fiction Fact: At 86°F DEF will only last 1 month At 86°F DEF has a shelf life of 1 YEAR! 95°F avg. July temp Source: Terra Industries

  29. Fiction DEF Fact vs. Fiction Fact: DEF pricing is dependant on packaging size DEF will cost between $17 and $34 per gallon Worst Case:Pass Car Dealership Gallon Most Frequent Scenario:Fleet Terminal 275 Gallon IBC $15.50 per Gallon $2.61 per Gallon $7.75*2 = $15.50/gallon $719.60/275 = $2.61/gallon

  30. Even Europe is moving away from SCR technology Fiction 2010 Fact vs. Fiction Fact: “It is generally accepted that a Euro 6 (2013) engine will combine both SCR and EGR technology.” - Automotive World “Euro 6 (2013) limits are almost certainly going to require EGR and SCR to share the burden of NOx control…” - Roadtransport.com

  31. Fiction 2010 Fact vs. Fiction SCR is not a long term solution Fact: • SCR reduces fuel consumption which is directly tied to CO2 emissions - Transport Topics EGR 2007 EGR 2010

  32. Diesel Exhaust Fluid Myths How Can I Determine how Much DEF I will Use? Example – Delivery Annual miles for average truck = 15,000 miles MPG for average truck = 8 mpg 15,000 miles / 8 mpg = 1,875 gallons diesel fuel per year DEF usage @ 2% of fuel consumption = 37.5 gallons of DEF / year 37.5 gallons / 6 gallon tank (average size) = ~7 DEF fill-ups / year Diesel cost~ $5,625 DEF cost ~ $97.50 per year Diesel cost savings due to fuel economy improvement ~ $300 So…DEF fill-up approx. every 6 to 8 weeks Example Only

  33. Diesel Exhaust Fluid Myths How Can I Determine how Much DEF I will Use? Example – Utility Truck with PTO operation Fuel consumption at high idle = 1.2 gallons/hour Assume PTO operation 6 hours per day, 240 days per year = 1,440 gallons per year 5,000 miles / 7 mpg = 714 gallons diesel fuel per year DEF usage @ 2% of fuel consumption = 43 gallons of DEF / year 43 gallons / 6 gallon tank (average size) = ~8 DEF fill-ups / year Diesel cost~$6,462 DEF cost ~$112 Diesel cost savings due to fuel economy increase ~ $349 So…DEF fill-up approx. every 6 weeks Example Only

  34. Diesel Exhaust Fluid - Calculator

  35. Diesel Exhaust Fluid Myths Myth #5 – DEF will be difficult to find. • DEF will be available for customers to purchase • DTNA and Cummins are working with industry partners to ensure DEF is readily available • DTNA and Cummins will be working to ensure availability of DEF through our distributor and dealer network • Many major truck stops will carry DEF through the country

  36. DEF Infrastructure - Availability Infrastructure Taking Shape Rapidly • SCR Stakeholders group continues to move forward with the distribution network to ensure a smooth transition into 2010. • Pilot Travel Centers, TA Travel Centers of America, and Petro Stopping Centers have already commented to supplying DEF. • Other partners are expected to make announcements in early 2009

  37. DEF Infrastructure - Bulk Systems • Numerous bulk manufactures have announced above ground products available for DEF • Gilbarco and Wayne Dresser are preparing to deliver approved dispensing devices: • W&M approval is an open issue • UL approval is an open issue • A number of European system manufactures are evaluating U.S partnerships in order to launch local businesses

  38. DEF Infrastructure - Bulk Containers • (275) gallon IBC’s will support the early launch of DEF as the primary home fill option • IBC’s will be available from locator DEF distributors OR at our Dealer / Distributor network • One IBC will support 89,375 miles of truck utilization • IBC enclosures will become available to house the product in cold climates (Heated enclosures) • DDC is currently testing an prototype enclosure produced by Bennacor.

  39. DEF Infrastructure – Dealer/Distributors • All Dealers and Distributors will handle DEF to support the network • This program will be launched mid year to support customer demo units and pre series volumes • Part number will be generated and a direct ship program will be launched • The market will be competitive as DEF distributors will also offer product direct

  40. DEF Infrastructure - Fluid Locator: • The U.S Department of Energy has developed a web site which will show DEF availability • The internet software will show locations of DEF availability • The site will go live with the automobile sites in 1st quarter 2009 • Commercial diesel locations will follow in 2nd quarter 2009 • All DTNA dealers and distributors will be added to the site • All travel centers handling DEF will also be part of the site

  41. FactsAboutSCR.com DEF Infrastructure - Industry Website What you will find there • Third Party information about SCR Technology • Recent 2010 Emission Press Releases • Diesel Exhaust Fluid developments

  42. SCR Summary • SCR is better economics… with 3 - 5% better diesel fuel economy than equivalent HD 2007 engines, and 5 – 9% better than a high EGR approach for medium duty engines, SCR is the first emissions change to provide a cost benefit to the customer. • SCR is cleaner… SCR is the only technology that is able to meet NOx levels of 0.2g/bhp-hr at the tailpipe. Customers can be proud to support environment improvements. • SCR is convenient… Fewer active regenerations will improve operational flexibility. DEF supply will not be an issue and will become second nature to driver when operating their vehicles. • SCR is proven… With over 600,000 SCR vehicles in operation in Europe and over 10 Million SCR test miles run in the United States customers can be confident in SCR.

  43. M2e Utility Hybrid (342-1R4) Key Specs (342-1R4, EH-8E306-UP) • M2-106 straight truck • GVW – up to 40K • Cummins ISB – 200 to 300hp / 520 to 660 ft-lb • Eaton Parallel Electric Hybrid Drive – 60hp/310 lb-ft peak • 6 speed Ultrashift transmission • Air Brakes Performance (dependent on stationary PTO usage) • Fuel Economy Improved 40% - 60% • Idle Time Reduced 4 to 5 Hours per Day • CO2 Output Reduced 13 to 17 Tons/Year Financial • Federal Tax Credit • Class 6 = $6K • Class 7 = $12K • Annual savings $4,500 to $6,000 Southwest Research Dyno Testing – ePTO Cycle

  44. Sterling to Freightliner Transition DTNA is committed to continued support of the NG Market with the introduction of the Freightliner M2-112 with Natural Gas Sterling SB 113 Production discontinued March 2009 M2 112 2009 SOP

  45. Thanks!!!

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