Cummins Westport Product Overview. Gordonexel

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Cummins Westport Product Overview

April 2011

Gordon Exel

Vice President and General Manager Americas

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CWI Corporate Overview

3

Cummins Westport Inc. (CWI) is a Joint Venture of Westport & Cummins

Cummins Inc.

“CWI”Cummins Westport Inc.

50/50

Cummins Inc.Westport

Innovations Inc.

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), – serves customers in approximately 190 countries and

territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations.

– Cummins reported sales of $14.3 billion in 2008

� 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/NASDAQ, formed in 1995

� Almost 300 people World-wide

� State-of-the-art facilities inVancouver, Canada:

7,400 m2 (78,000 ft2) of laboratory and office space

� Leading Natural Gas expertise and industry relationships

Westport Innovations Inc.

Technology Innovation andApplication Award

Vancouver, BC, Canada

Natural Gas EngineReliability Improvement

C8.3G / C Gas Plus - Reliability

0

1

2

3

4

5

6

7

1999 3 1999 4 2000 1 2000 2 2000 3 2000 4 2001 1 2001 2 2001 3 2001 4 2002 1 2002 2 2002 3 2002 4

Build Quarter

Rel

ativ

e C

ost

C Gas PlusC8.3 G

Six Fold Reliability Improvement

Cummins Confidential

CWI: Fully integrated within Cummins. We are Cummins’ automotive natural gas engine company

ProductEngineering

Cummins Tech CenterCummins VPI Process

Cummins AccountTeams & Distributors

Manufacturing

Warranty

Cummins Plants

Parts& Service

Cummins Distributors

It’s a Cummins Engine!

Sales

Cummins Warranty

Cummins Confidential

Over 28,000 Engines DeliveredDecember, 2010

On Highway Product Line

5.9 LitreLean Burn 195–230 hp 420–500 lb-ft EURO III-V, EEVRMEP

8.3 LitreLean Burn 250-280 hp 660-850 lb-ft EURO IVRMEP

8.9 LitreStoich EGR250-320 hp 660-1000 lb-ft Euro VI EEV, EPA 2010RMEP

5.9 LitreLean Burn 150–230 hp 325–500 lb-ft EURO V, EEVCIL

Global Products

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Why Use Heavy Duty Natural Gas Engines

Natural Gas Market Drivers

Cummins Confidential

Environmental LeadershipMeets/beats Regulated 2010 EPA/Euro EEV

Lower greenhouse gas emissions

Energy SecurityReduced reliance on oil

Biomethane capablePathway to hydrogen

Economic BenefitsImproved ReliabilityImproved Efficiency

Lower total fuel costs

13

Growing Natural Gas Availability Will Keep Price DownForecast: Delivered Energy Prices for Diesel &

Natural Gas Transportation Fuels, 2010-2035

Source U.S. Energy Information Administration, Annual Energy Outlook 2010

2008 Equivalent U.S. Dollars Per Gallon Equivalent

Gas Shale Plays are an Industry Changing

Breakthrough

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2010 2015 2020 2025 2030 2035

Natural Gas Diesel

North America Resource Estimates� 2,119 Tcf of Total Resource� 95+ Year Supply at 75 Bcf/d� 70+ Year Supply at 100 Bcf/d

0.01 0.10

0.2

1.2

2.5

4.0

5.0

EPA 1994

EPA 1998

EPA 2004

PARTICULATE [g/HP-hr]

NO

x [g

/HP

-hr]

Euro 2 1996

Euro 3 2001

EPA 2007

Euro 5 /EEV 2009

Euro 4 2006

0.075 0.110.015

JE05

EPA 2010/Euro 6

Traditional Focus-Regulated Emissions

California Air Resources Board Executive Order

Cummins Westport Confidential 15

16

NMHC NOx CO PM

FTP EURO

FTP EURO

FTP EURO

FTP EURO

STD 0.14 0.14 0.2 0.2 15.5 15.5 0.01 0.01

CERT 0.13 0.04 0.13 0.01 1.2 0.4 0.002 0.000

California Air Resources Board - Executive Order Shows Emissions Results

ISL G is under 2010 NOx and PM regulations

FTP: Federal Test Procedure [ transient and steady state ]

EURO: Euro III European Steady-State Cycle

STD: standard or emissions test cap

CERT: certification level

Tough California Emissions Standards and Cummins Westport Engines

Further Reductions are Being Explored• Sub Ambient•“Zero” Emissions

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Internal Combustion Engines & Green House Gases (GHG)

18

GHG & Fuel Economy Improvement

Phase 1� 6 Sigma tools compared 2007 ISL G and 2001 C Gas Plus at Orange County Transit

Authority (OCTA)

� Demonstrated + 5% improvement

Phase 2� US GHG Regulations

� 2013 - No change

� 2017 – Another 3% Improvement

GHG Well to Wheel for Urban Bus - GH Genius

2010 Results (Vancouver, Canada)

22.6% GHG reductionIncluding vehicle material and assembly - 21.9% GHG

Extraction Processing Transportation and storage

End user Total

Natural Gas

115 g/km 49.5 g/km 53.9 g/km 1,183.9 g/km

1,402.4 g/km

Diesel

268.8g/km 179.5 g/km 9.7 g/km 1,353.7g/km

1,811.7 g/km

Source:http://www.nrcan.gc.ca/es/etb/ctfca/PDFs/GHGenius/gh_genius_pamphlet0405_e.html

Biomethane Impact

Bio Fuel improves GHG impact

Biomethane: 75-200% reduction

Compressed Natural Gas - 22% GHG reduction

Source:http://www.nsca.org.uk/assets/biogas_ as_transport_fuel_june06.pdf

Bowerman Landfill

WM Altamont

1,811.7 g/km

1,353.7g/km

9.7 g/km179.5 g/km

268.8g/km

Diesel

1,402.4 g/km

1,183.9 g/km

53.9 g/km49.5 g/km

115 g/km

Natural Gas

TotalEnd user Transportation and storage

Processing

Extraction

Agriculture Waste

Dairy farm uses manure from 10,000

cows to generate Bio-Methane to

power delivery trucks

1000 cows produce 78000 DGE/year of

Bio-Methane (1)

Hilarides Dairy - Lindsay, California

(1) Biomethane from Dairy Waste A Sourcebook for the Production and Use of Renewabl e Natural Gas in California (2005)

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CWI Technology Overview

March 2011

24

We Start with Simple Cleaner Fuel

� Natural gas is a low carbon fuel

14/30 = 1:2

1/4 = 1:4

Spark Ignited Technology

Spark Plug

• Fuel and air are premixed outside the cylinder

• Spark plug ignites the mixture

• Air flow controls fuel flow

• Air/Fuel ratio controls emissions

Cummins Confidential

Coil on Plug Ignition

Ignition coils mounted at 45 degree angleOne coil per cylinderLeft side of valve cover

1. Stoichiometric • Low NOx with TWC

• Combustion temperatures limit

power density, efficiency and

durability

•First technology used in HD natural

gas engines

0

20

40

60

80

100

120

12 14 16 18 20 22 24 26 28 30

Air / Fuel Ratio

Pe

rcen

t Ma

xim

um

NO

x

Sto

ichi

omet

ric

LeanRich

Natural Gas Engine Technology Evolution

Lean Burn

3. Stoichiometric with Cooled EGR• Combines & Improves the best attributes of Stoichiometric & Lean Burn combustion

• TWC for NOx control - Sub-EPA 2010 emissions with passive aftertreatment

•Cooled EGR in place of air in Lean Burn reduces in cylinder combustion temperatures

• Improved low end torque and fuel economy

EGR2. Lean Burn • Introduced in ’90s

•NOx control is in-cylinder

•Lean combustion reduces in cylinder

temperatures improving power

density/efficiency

•Proven reliability/durability in heavy

duty applications

•Capable of EPA 07 Euro4/5 emissions

Cummins Confidential

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Cummins Westport Inc. B Gas Plus – C Gas Plus

5.9L, LBSI, Full Electronics

Euro 5, EEV

Over 100 million kilometers operational experience

ApplicationsUrban Shuttle/BusMedium Duty TruckSpecialty Vehicles

Engine RatingsModel Horsepower Peak Torque230 230 @ 2800 500 @ 2800200 200 @ 2800 465 @ 2800195 195 @ 2800 420 @ 2800

C Gas Plus - Natural Gas History

C8.3G Mechanical

•Lean Burn Combustion

•Introduced in 1998

•Major improvement over 1st

generation CNG L 10 Series

•Over 4000 still in service

•Improved Reliability

C Gas Plus

•Introduced in 2001

•Lean Burn combustion

•State of the art spark ignition/control system

•First engine 2004 EPA Certified- 1.8 NOx

•Six fold reliability Increase

Base Platform for C Gas and C Gas Plus

1995 2001

Engine Designed for Gaseous Fuels– Improved drive by Wire actuator

– Lower emissions

– Wide range fuel composition capability• 65 Methane number for gas

– Knock sensing and control

– Robust oxygen sensor design

– Adaptive learn through control system

– Modern engine controller

– Improved controls

– More sensed parameters

– Humidity sensing and compensation

Why is Plus Better

CHARGE-COOLEDAIR

THROTTLE POSITION

ENGINE POSITION

INTAKE PRESSURE &TEMPERATURE

BOOST PRESSURE

COOLANT TEMPERATURE

WIDEBAND OXYGENSENSORFUEL PRESSURE & TEMPERATURE

Improvement Areas

Fuel

Control Valve

Fuel FlowSensor

Filter

Fuel Pressure Regulator

FuelShutoff

ENGINECONTROLLER

CM556

IGNITIONMODULE

DRIVE-BY WIRETHROTTLE

PC BASED DIAGNOSTICS

OIL PRESSURE/TEMP

EXH. BACK PRESSURE

KNOCK SENSOR

FUELSpark Plugs

CM 556 ENGINE

CONTROLLER

IGNITIONMODULE

MIXER

WASTEGATECONTROL VALVE

TURBOACTUATOR

AIR/FUEL

Focal Point of Third Generation “Plus” Technology

ImprovedReliability

Operability

Serviceability

Life Cycle Costs

Fuel Flexibility

Downtime

Maintenance Costs6-C/L Gas Plus Coil Packs 2-B Gas Plus

ShutoffShutoff

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ISL G Overview

March 2011

34

ISL G Natural Gas Engine � 8.9 Litre (540 cu. In.)� In line 6 cylinder� Charge Air Cooled (CAC)� Spark ignition� Peak Rating:

– HP-320 hp Torque -1000 lb-ft

� Certified to 2010 EPA and CARB NOx and PM standards

� Three Way Catalyst Aftertreatment� Manufactured by Cummins in Cummins

Engine Plant- Rocky Mount, North Carolina

� Over 8,000 in service.

LNGLNGLNGLNG

35

� Cooled Exhaust Gas Recirculation (CEGR)

� Stoichiometric Combustion

� Three Way Catalyst (TWC)

Cummins

CumminsEmission Solutions

ISL G - Three Key Emission Technologies

Cummins Westport

Catalyst Inlet

NOX

CO

HC

Catalyst Outlet

N2

CO2

H2O

ISL G TWC - similar package size to current mufflers

Three Way Catalyst

� TWC reduces three harmful emissions: NOX, CO, HC

� End products are: N2, CO2, H2O

� Packaged as a replacement muffler

� Simple, passive, maintenance-free

� Consistent performance across all duty cycles

37

Technology What is the Same?

� Major Engine Components– Block, crankshaft, main bearing,

piston rods, EGR

– Over 80% parts commonality

� 500 hour Maintenance Interval

� Parts and Service

– Global Cummins Distributor Network

� 320, 300, 280, 260 and 250 HP ratings

� Compatible with Cummins Diagnostic tools– Insite

– Quickserve online

� Manufactured in Cummins Engine Plant, North Carolina

38

Technology What is Different?� Cylinder head

– 2 valve vs. 4 valve (diesel)

� Ignition – Spark Ignition (SI) vs. Compression

(diesel)

� Fuel System– Intake manifold vs. Common rail

injection (diesel)

� Aftertreatment– 3 way catalyst vs. Particulate Filter +

Selective Catalytic Reduction (diesel)

� Maintenance Cost– Incremental maintenance for ignition

and valve adjustments – can be offset with diesel fuel system maintenance

� Fuel Cost– Natural gas costs less than diesel

– Fuel cost per mile (KM) is lower

– Total LCC can be less than diesel

� Lubricating Oil– Natural gas engines require a specific

oil that meets Cummins specification CES 20074

� Noise– Natural gas engines are up to 10db

quieter at idle

� Compression Ratio– ISL G is 12:1 compression

Reduced Noise

Noise Comparison

70

80

90

100

110

Peak Torque / Full Load Idle / No Load

Engine Test Mode

Dec

ibel

es d

B(A

)

07 ISL

07 ISL G

ISL G is 5.5 decibels quieter at peak torque

and load

ISL G is 9.9 decibels quieter at Idle/no load

Communities notice the natural gas noise

advantage.

ONE Diesel engine idling is louder than TEN natural

gas engines idling together

CWI Natural Gas Engines WorkSupported By Same Structure as Cummins Diesel

North America215 Distributor Locations

3860 Dealer Locations

Central and South American88 Distributor Locations

142 Dealers

Japan and Korea5 Distributor Locations

35 Dealers

SE Asia and China

27 Distributor Locations18 Dealers

Australia and New Zealand

26 Distributor Locations91 Dealers

India30 Distributor Locations

104 Dealers

Europe and Middle East62 Distributor Locations

308 Dealers

•Cummins has one of the largest network of service p roviders in the world.

•Local service and support for CWI Products is avail able at any authorized Cummins facility

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Natural Gas and Infrastructure

Why CNGWhy LNG

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

� Strong inherent odor

� Evaporates slowly at room temperature

Natural Gas Liquid fuels

Drop Test

• Tanks must pass extensive safety testing i.e. drop test

• Natural gas is non-corrosive

• Narrow flammability range and high auto-ignition temperature

• Will not contaminate soil or water

Station Configurations

Typical CNG Station

1. Compressor

2. Gas Dryer

3. Storage vessels

4. Dispensers, along with underground piping

Typical L/CNG Station

1. LNG Storage

2. Vaporizer

3. Odorizer

4. Dispensers, along with underground piping

Volume and Range Comparison

Tank Space per 100 mi

Range Per 100 Gallons Tank Space

380 mi

170 mi

LNG

CNG26 Gal.

58 Gal.

Diesel

* Estimate based on 6.5 mpg diesel, and same effici ency for NG vehicle

15 Gal.650 mi

LNG Tanks

� Tank internal design maintains a dedicated vapor space (aka “ullage”)

– Net liquid capacity approx. 10% < gross capacity

� LNG tanks require 6” to 8” valve access at rear of tank

– Need to allow for this when spec’ing frame-mounted components

Fuel valves behind shroudLNG tank

CNG Cylinders

CNG cylinder packageCNG cylinders

Fuel or Vehicles First?

Established North American ISL G Applications

REFUSEBUS

48

Fuel or Vehicles First? North American Truck OEM’s

OEM Freightliner Peterbilt Kenworth Volvo

Model M2 - 112 320

384

365

T800SH

W900S

T440

T470

VNM

Engine ISLG 320

ISL G 300

ISL G 320 ISLG 320 ISL G 320

Application 6x4 Tractor

4x2 Tractor

4x2 Truck

6x2 Truck

Vocational

Tractor

Vocational

Mixer

Tractor

Vocational

Mixer

Tractor

LNGLNGLNGLNGOR

Cummins Westport Confidential

CNG & TrucksPaper Transport – Green Bay to Chicago

5X15 DGE CNG tanks (75 DGE total)

•Hauling paper towels/napkins southbound (55,000 lbs GVW)•Scrap paper northbound (75,000 lb GVW)• Saving $1.50/gln vs. diesel•Averaging 5.6 mpg•Two trucks operating 5 days/week since Feb. 2010 logging approx. 160,000 miles each•Five more delivered in Sept. with 30,000 miles/each

Kenworth T440 – CNG Rail Mount

2X 40.5 DGE CNG tanks = 81 DGE Total

Top North America CNG Transit Fleets

300BOSTON 400WASHINGTON 600PHOENIX

300SACRAMENTO400SAN DIEGO250SAN BERNADINO 250TACOMA

over

8,000engines in

service

Las Vegas, NV

Ocean Side, CACulver City, CA

Baton Rouge, LA

Santa Clara, CA

Salem, OR

Toronto, ON

LA, CA — Foothill

Montgomery County, MD

St. Louis, MO

LA, CA — DOT

San Antonio, TX

Medford, OR

Fort Worth, TX

Port Huron, MI

Atlanta, GA

Seattle, WA

Fresno, CA

Long Island, NY

Hamilton, ON

Santa Monica, CA

Vancouver, BC

Albuquerque, NM

Corpus Christi, TX

Cape Cod, MA

1500L A

500ORANGE COUNTY

150NYCT

“A Better Fuel for the Future”“I have a dream that will change the world”

“I have a better engine design”

“I have a better fuel for the future”

…. Clessie Cummins

Diesel power had half a century to perfect technologyWe’ve come all this way in only a decade!

www.cumminswestport.com