symp13-Fiveland

Realizing Natural Gas Opportunity: Markets, Products & Technological Challenges

Spark Plug

Prechamber

Orifice

Main Chamber

Burned GasesFresh Mixture

Spark Plug

Prechamber

Orifice

Main Chamber

Burned GasesFresh Mixture

Dave T. Montgomery : Gas Engine Technology Specialist

Scott B. Fiveland : GAS NTI manager

June 5th, 2013

Caterpillar Gas Engine Footprint

LPSD Gas Engines

EMD

IPSD MWM

MAK

Integrated Team, Right Platforms

PDGT

World Energy Demand

3

15.000

10.000

5.000

0

2030

28%

26%

27%

202520202015201020052000

25%

23%

38%

HydroelectricityNuclear EnergyBiofuelsRenewables

Natural Gas

Oil

Coal

Source: 2030 BP Energy Forecast (Million tons oil equivalent)

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Natural GAS will have LARGE DEMAND.Moving Forward

$-

$20

$40

$60

$80

$100

$120

$140

2006 2007 2008 2009 2010 2011 2012

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USA (Henry Hub) Oil (WTI)

Natural Gas Prices by Region

$0

$2

$4

$6

$8$10

$12

$14

$16

$18

2006 2007 2008 2009 2010 2011 2012

$

/

m

m

b

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Europe (Zeebrugge) USA (Henry Hub) Japan

Natural Gas

Abundant Supply Shale Gas Energy Independence Opportunity

Regional Pricing

Emissions Cleanest Fossil Fuel Flaring Reduction

LNG Expansion Growth to Continue USA Export?

USA

EU

Japan (LNG)

USA Gas vs Oil Price (Energy Equivalence)

Natural Gas by Region

4

Price Spread

Economic Advantage of GasEstimated Annual Fuel Savings**

** Price spread of $2 per DGE and gas substitution of 65%

$ 182 million

$0

$7

$14

$21

$28

US Germany China India Brazil$0

$1

$2

$3

$4

400 EMD Locomotives

$ 17 million25 Cat 797 Trucks

$ 36 million50MW Power Plant

$ 6 millionTypical Fracturing Crew

$/mmBTU $/DGE

Pricing Differential: Diesel to Natural Gas2011 Actual

* Large EPG and Industrial Customers

A Growth Opportunity

Driven by Customer Value

Long-termGas Contracts

Fixed GasPricing

5

Supply of Natural Gas

Demand forNatural GasA Growth Opportunity

Supply and Demand

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Strategy Summary Continuous Speed Product for EP Market

Technology priorities Burns 100% Gas Efficiency > 50% Power density

Technology StrategySpark Ignited Engines

Key Driver: Owning & Operating Cost / Electrical Efficiency

7

Enriched Prechamber System

Spark Plug

Prechamber

Orifice

Main Chamber

Burned GasesFresh Mixture

Spark Plug

Prechamber

Orifice

Main Chamber

Burned GasesFresh Mixture

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10000120001400016000

200 300 400 500 600Crank Angle (deg)

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PrechamberMain Chamber

Jet Ignition

Conventional Ignition

10 BTDC

4.3 BTDC

3.6 BTDC

2.9 BTDC

2.2 BTDC

1.5 BTDC

Jet Ignition

Conventional Ignition

10 BTDC

4.3 BTDC

3.6 BTDC

2.9 BTDC

2.2 BTDC

1.5 BTDC

Qualitative Example

Caterpillar Approach to Modeling GAS Engines

Combustion Physics-Chemical Kinetics

- Flames

Cycle Simulation-Zonal combustion

- Stochastic models end-gas knock

Combustion CFD- Full cycle

Thermo-mechanical-Piston Rings

- Thermal Loading

6/5/201313

Laminar Flame Speed Measurements

Engine Combustion conditions- Lean Combustion : Lambda = 1.7- Pressures > 100 bar- GAS : variable methane number

Misfire / NOx limit

DYNAMIC GAS BLENDINGDYNAMIC GAS BLENDINGDYNAMIC GAS BLENDINGDYNAMIC GAS BLENDING

Dual Fuel Enginesand Retrofit Kits

Oil & Gas

Marine Mining

Rail

S Y S T E M S A N D K I T S

3512 Land Electric Drilling Module

PROFIT FROM FLEXIBILITYPROFIT FROM FLEXIBILITYPROFIT FROM FLEXIBILITYPROFIT FROM FLEXIBILITY

Lower fuel costs - up to 70% replacement of diesel with gas

Use gas when it is available and diesel when it is not

Continuous adjustment to fuel quality and pressures

Wide variety of fuels from associated gas to gasified LNG

Maintain diesel power and transient response

Maintain service intervals and component life

Improved display performance and troubleshooting

Reduce gas flaring by consuming dry field gas

Maintain original emissions certification with retrofit kit

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HIGH PRESSURE DIRECT INJECTION (HPDI)HIGH PRESSURE DIRECT INJECTION (HPDI)HIGH PRESSURE DIRECT INJECTION (HPDI)HIGH PRESSURE DIRECT INJECTION (HPDI)

Dual Fuel Enginesand Retrofit Kits

THE FUTURE OF MOBILE GASTHE FUTURE OF MOBILE GASTHE FUTURE OF MOBILE GASTHE FUTURE OF MOBILE GAS

Much lower fuel costs - over 95% replacement of diesel with gas

Maintain diesel power, transient response, and reliability

Capable of meeting Tier 4 off-highway and rail standards without SCR or DPF

Engine retrofit is fuel systems only uses robust diesel components

Engine controls work like diesel, no additional complexity

Same or better fuel efficiency compared to Tier 3 base engine

5 - 7% better fuel efficiency than micro-pilot engines at Tier 4 emissions

Tanks and tender cars will be adapted to machines to deliver LNG

MAXIMIZING FUEL SAVINGS ANNUALLY*MAXIMIZING FUEL SAVINGS ANNUALLY*MAXIMIZING FUEL SAVINGS ANNUALLY*MAXIMIZING FUEL SAVINGS ANNUALLY*

$ 266 million400 EMD Locomotives

$ 25 million25 Cat 797 Trucks

* Estimated based on price spread of $2 per DGE and gas substitution of 95%

HPDI Dual Fuel injector

replaces existing diesel

injectorAcceleratingAcceleratingAcceleratingAccelerating

ThroughThroughThroughThrough

PartnershipPartnershipPartnershipPartnership

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Challenges Modeling HPDI

Diesel Modeling Challenges Ignition Soot Modeling

HP Natural Gas Modeling Challenges Injector modelingexit Jet penetration /

spreadartificial diffusion (grid)

Conclusions

Natural Gas Abundant in Supply Lean-Burn Spark Ignited Engines

Focused on Electric Power Flames are lean / high-pressure

Dynamic Gas Blended Engine Require integrated modeling approaches

High Pressure Direct Injection Need data to validate HP gas jet models