EVERY ALTERNATIVE Philadelphia Diesel Difference Meeting Bill Boyce
EVERY ALTERNATIVE. Philadelphia Diesel Difference Meeting Bill Boyce Cummins Westport Inc.
Cummins Westport A 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, 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.
Westport Innovations Inc. • 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 in Vancouver, Canada: 7, 400 m 2 (78, 000 ft 2) of laboratory and office space • Brought Gas expertise 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 Emerging Economic Benefits Energy Security Continuous reliability improvement ISL G Improved Efficiency Greatest benefits in high fuel use applications Reduced reliance on imported oil Lower fuel costs Pathway to hydrogen
U. S. Emissions Standards Continue to Change!
EVERY ALTERNATIVE. Why Diesel?
Cummins original marketing plan…
Simpler Cleaner Fuel Complex Hydro Carbon Simplest Hydro Carbon Natural Gas (methane) has highest hydrogen-tocarbon 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 2010 Diesel ULSD Active Diesel Particulate Filters CEGR (ISC/ISL) NOx Adsorber or SCR more efficient but a liquid that will be regulated and taxed Crank Case Ventilation (CV) ’ 07 Lube Oil Will require new, low ash oil New Oil Filters Natural Gas þ No change- CNG or LNG capable þ Replace Oxicat with Three Way Catalyst þ Add- CEGR (ISL G) þ No NOx adsorber required þ No CV required–reduced maintenance vs. LBSI þ No Change- Low Ash Oil in use today þ CES 20074 = Phase In 1. 2 NOx + 0. 01 PM (Avg. ) in 2007 0. 2 NOx + 0. 01 PM in 2010 þ 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 Properties Characteristics Structure Diesel Biodiesel Me. OH Et. OH C 18 H 36 C 1 8 H 35 O 2 CH 3 OH C 2 H 5 OH NG LPG CH 4 C 3 H 8 Cetane No. 40+ 10 10 -- 5 Octane No. -- -- 95 95 120 95 Energy (LHV) btu/gal(x 1000) btu/cu. ft 128 119 57 76 1 1. 1 2. 3 1. 7 Energy Storage (relative vol. ) 85(LNG) 1000(CNG) 1. 7 (LNG) 3. 7 (CNG) 84 1. 6
Volume and Range Comparison Diesel LNG Tank Space per 100 mi 15 Gal. 26 Gal. Range Per 100 Gallons Tank Space 650 mi 380 mi CNG 170 mi 58 Gal. * Estimate based on 6. 5 mpg diesel, and same efficiency for NG vehicle
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. • Diesel – 1 U. S. gallon weighs 7. 1 lbs. – Heating value is 18, 250 Btu per lb and 129, 575 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.
Natural Gas is a Safe Fuel CNG • 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 Liquid fuels • • • 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
CWI Natural Gas Engines Reduce Urban Noise ONE Diesel engine idling is louder than TEN natural gas engines idling together Natural gas is 4. 7 6. 1 decibels quieter at peak torque and load 90. 0 Decibels d. B(A) Communities notice the natural gas noise advantage. Naturalgas gasisis 12. 2 11. 8 Natural decibelsquieteratatidle 70. 0 50. 0 d oa L o d , F ue rq a Lo ull e, w o T ak Lo Pe Idl N Engine Test Mode Diesel bus engine C Gas Plus
Alternative Fuel Challenges • Costs – Infrastructure and equipment • Performance • Emission reduction trade-offs • Infrastructure and fuel availability • Impact on engine component reliability
EVERY ALTERNATIVE. The Global Market for Energy
U. S. Transportation Petroleum Use 22 Actual Millions of Barrels per Day 20 Projected 18 Air 16 14 12 Domestic Production Marine Heav les hic y Ve 10 8 6 Off-road Light Trucks Rail 4 Cars 2 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year Source: Transportation Energy Data Book: Edition 22, September 2002 and EIA Annual Energy Outlook 2003, January 2003 2020 2025
Natural Gas Fuel Costs Less • 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 $12. 84 MMBTU = $77. 04 Barrel $12. 84 MMBTU = $1. 83 DGE
Price Comparison Plot Natural 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.
EVERY ALTERNATIVE. Natural Gas Engine Technology for 2007
Cummins Natural Gas History • 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)
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 2007 1998 C 8. 3 G Mechanical 2001 C Gas Plus 2004 L Gas Plus 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
The Two Key Emission Technologies for 2007 ISL G Natural Gas Engines • Cooled Exhaust Gas Recirculation (CEGR) • Three Way Catalyst (TWC) Cummins Emissions 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 *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
EVERY ALTERNATIVE. Life Cycle Cost Drivers
Natural Gas: Key Economic Drivers 1. Six fold increase in CWI reliability/durability since 2001 2. CNG is closing maintenance cost gap – – 3. Basic service intervals same as diesel Spark ignition will result in slightly higher scheduled maintenance costs 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 Advantage Fuel price differential creates overwhelming $100 USD for Crude! NG benefit Natural Gas Breakeven Price: $0. 73 Less/DGE $0. 93 Less/DGE $0. 62 Every 10 cents Saved in Fuel price = thousands in savings Transit $1, 500/bus/yr 200 buses $7. 2 M Capital 45, 000 miles-3. 5 mpg Refuse $1, 200/truck/yr 50 Trucks $875 K Capital 15, 000 miles-1. 5 mpg Truck $1, 200/truck/yr 50 Trucks $875 K Capital 65, 000 miles-6. 5 mpg
Highway/Energy Bill Private Fleets Currently Using Diesel Fuel Highway Bill* Net Benefit CNG$ / DGE Own Infrastructure CNG$ / DGE Don’t Own Infrastructure LNG $/ DGE All Infrastructure $0. 60 To Fleet $0. 60 To Fuel Provider $0. 68 To Fuel Provider or Fleet Oct 1, 2006 Energy Bill* $32, 000 Vehicle Credit To Fleet $30, 000 Infrastructure Credit To Fleet * CWI’s Interpretation Subject to IRS Rule Making
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.
EVERY ALTERNATIVE. Where are we now?
ISL G Applications Truck Specialty Bus REFUSE
OEM Availability August 2008
Similar Maintenance Schedule Same Schedule as Diesel – Some Different Maintenance Items
Warranty - Every Coverage • Base Warranty for Bus/Shuttle, School Bus and Truck are the sam • Extended Coverage options are available for Truck and Bus Cust • 5 yr 200, 000 mile or 300, 000 mile - Transit • 4 yr / 5 yr 150, 000 mile Vocational -Truck • 4 yr / 5 yr 150, 000 mile Turbocharger -Truck • 6 yr, 300, 000 mile Major Component – All applications • All warranty programs administered per Cummins Standard Polici Polic
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: bill. boyce@cummins. com www. cumminswestport. com
- Slides: 47