Mike Finney

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
Overview
Common Terms

• 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
Overview
How SCR Works

• Exhaust

Intake Throttle Valve
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 for the World!
Truck market (Med/Hvy) 2.1 Million units 2008
Principal Daimler Trucks production sites in the
world

Market share
Manufacturer
Vehicles
Components
8
Most Engine and Truck OEMs Are Gearing Up For SCR
In 2010
Overview
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
SCR Equipment - Myth vs Facts
Myth - what the competitor says SCR will look like
11
MD 1-Box Understep ATS

• Pros
• Clear BOC solution
• Lightest weight
• Cons
• LH fuel tank only

12
2nd 1 box system (current DC 016-1BT)
MD 1-Box Understep ATS W/HZ Outlet
13
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
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
Vehicle Performance/Operation
Gauges/Lights
100
0
90
80
70
60
50
40
30
20
10
Full
Empty
DEF in tank
19
Vehicle Performance/Operation
Gauges/Lights

• 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
0
90
80
70
60
50
40
30
20
10
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
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
5 Reasons Cummins chose SCR vs High EGR for EPA10
Cummins Experience High EGR vs SCR

• 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
Costs for meeting emissions change
Cummins Experience High EGR vs SCR

• 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
DEF Fact or Fiction?
Fiction

• DEF is corrosive, hazardous, and unsafe to handle

Fact

• Material Safety Data Sheet (MSDS)
• Hazards Identification Urea Solution is not
  Flammable
• First Aid MeasuresWash area thoroughly with
  soap and water
• Fire Fighting MeasuresUrea solution is not
  flammable
• Transportation InformationUrea solution is not
  listed by any US or Canadian transportation
  authority as a hazardous material

26
DEF Fact or Fiction?
Fiction

• Urea becomes toxic at 118F

Fact
Urea does not become toxic at any
temperature at 122F, 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
DEF Fact vs. Fiction
Fiction

• DEF is useless in the cold because it freezes at
  12F

EPA Requires DEF flow within 70 minutes Detroit
Diesel testing has proven DEF flow within EPA
requirements
Fact
Engine coolant is used to thaw DEF in tank.
System will function until DEF begins to flow
DEF will start to freeze at 12F
28
DEF Fact vs. Fiction

• At 86F DEF will only last 1 month

Fiction
Fact
At 86F DEF has a shelf life of 1 YEAR!
95F avg. July temp
Source Terra Industries
29
DEF Fact vs. Fiction
Fiction

• DEF will cost between 17 and 34 per gallon

Fact
DEF pricing is dependant on packaging size
Worst CasePass Car Dealership Gallon
Most Frequent ScenarioFleet Terminal 275 Gallon
IBC
15.50 per Gallon
2.61 per Gallon
719.60/275 2.61/gallon
7.752 15.50/gallon
30
2010 Fact vs. Fiction
Even Europe is moving away from SCR technology
Fiction
Fact

• Euro 6 (2013) limits are almost certainly going
  to require EGR and SCR to share the burden of NOx
  control
• - Roadtransport.com

• It is generally accepted that a Euro 6 (2013)
  engine will combine both SCR and EGR technology.
  - Automotive World

31
2010 Fact vs. Fiction
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
How Can I Determine how Much DEF I will Use?
Diesel Exhaust Fluid Myths
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 _at_ 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
SoDEF fill-up approx. every 6 to 8 weeks
Example Only
33
How Can I Determine how Much DEF I will Use?
Diesel Exhaust Fluid Myths
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 _at_ 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
SoDEF fill-up approx. every 6 weeks
Example Only
34
Diesel Exhaust Fluid - Calculator
35
Myth 5 DEF will be difficult to find.
Diesel Exhaust Fluid Myths

• 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
Infrastructure Taking Shape Rapidly
DEF Infrastructure - Availability

• 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
• WM 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 IBCs will support the early launch
  of DEF as the primary home fill option
• IBCs 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
DEF Infrastructure - Industry Website
FactsAboutSCR.com

• 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
DTNA is committed to continued support of the NG
Market with the introduction of the
Freightliner M2-112 with Natural Gas
Sterling to Freightliner Transition
Sterling SB 113 Production discontinued March 2009
M2 112 2009 SOP
45

• Thanks!!!