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The global leader in natural gas engines.

Natural Gas in High Horsepower Engine ApplicationsWestport InnovationsDale Goudie, PEng

Overview

Introduction to Westport

Why natural gas ….Why now?

Natural gas engine technologyNatural gas as a fuel

Combustion methods, performance and emissions

Westport HPDI

Current high-horsepower engine development

Westport at a Glance

market focus position strategy

Transformation from petroleum-fueled to

alternative-fueled engines.

The global leader in gaseous fuel engineering

and technology.

Leverage IP to penetrate markets through

relationships with market-leading OEMs.

Volvo

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Westport Global Operations

ChinaBeijing & Weifang

ChinaBeijing & WeifangCanada

VancouverCanada

Vancouver

ItalyPernumia & Brescia

ItalyPernumia & Brescia

FranceLyon

FranceLyon

U.S.A.DetroitU.S.A.Detroit

U.S.A.Signal Hill

U.S.A.Signal Hill

AustraliaBayswaterAustralia

Bayswater

SwedenGothenburg

SwedenGothenburg

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stock symbols market capitalization

TSX NASDAQ CAD USD

WPT WPRT $1.4 billion ~$1.4 billion

“The Golden Age of Natural Gas”

source: “Are We Entering a Golden Age of Gas?”, IEA, June 2011.

World natural gas resources by major region, January 2010 (tcm)

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Downward Pressure on Natural Gas Prices

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Natural gas price projections are significantly lower than past years due to an expanded shale gas resource base

sources: EIA, Annual Energy Outlook 2011; EIA, Annual Energy Outlook 2010; and EIA, An Updated Annual Energy Outlook 2009 Reference Casevia: Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources, Richard Newell, June 21, 2011

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9

8

7

6

5

4

3

2

1

01990 1995 2000 2005 2010 2015 2020 2025 2030 2035

natural gas spot price (Henry Hub); 2009 dollars per million Btu

history 2009 projections

$9/MMBtu

Current price:$1.84

updatedAEO2009 AEO2010

AEO2011

$7/MMBtu

Energy Equivalent price

for Diesel:$0.26 US gal

NOx Emissions LegislationIMO Tier III (2016) NOx Regulations - ECAs

0

1

2

3

4

100 600 1100 1600 2100Engine Speed (rpm)

NO

x (g

/kW

h)

3.4

EPA = 1.8

1.96

Not just NOx…

Emission control areas (ECA) are really targeted to inland waterways and coastal vessels… so what are the technical solutions and options?

US - EPA Emissions Legislation (g/kWh)

Engine Class Start year Cycle Size NOx NMHC CO PMHD On-highway 2010 FTP > 14000 lb 0.27 0.19 21 0.013

Locomotive (line haul) 2015 1033.53 > 750 kW 1.7 0.19 2.0 0.04

Marine (Category 1/2) 2014-2017 ISO 8178 < 3700 kW 1.8 0.19 5.0 0.04

Mobile non-road 2015 ISO 8178 > 560 kW 3.5 0.19 3.5 0.04

Natural Gas as an Engine FuelComposition

C1, C2, C3, C4+Inert GasesNo sulphur

StorageVolume (LNG vs. CNG)Liquefaction costsBoil off

OtherInvisible/odorlessNon-toxicGHG (25x CO2e)

Combustion PropertiesNarrow flammability limitHigh exhaust H2O contentReduced flame temperature (NOx)Reduced carbon content (PM)

Ignition Properties~595°C compared to diesel at ~260°CNot easily oxidized(i.e. after-treatment)

Onboard LNG storage is well understood

Current NG Engines (Category 1/2)

Wärtsilä 20DFBergen C26:33

6, 8 and 9 cylinder

1,056 to 1,586 kW

Medium speed engine

Dual fuel

6, 8 and 9 cylinder

1,460 to 2,430kW

Medium speed engine

Gas only lean burn spark ignition

Claimed max BTE of 48%

NG Combustion Summary

Spark-Ignited (SI) Dual-Fuel (DF)High Pressure Direct

Injection (HPDI)

How it works

Gas and air pre-mixed at low pressure

Ignition from spark plug (often pre-chamber)

Lean burn to avoid knock at high CR

Otto cycle

Gas and air pre-mixed at low pressure

Diesel micro-pilot for DF

Lean burn to avoid knock

Otto cycle / Diesel cycle

Separate injector for diesel only

High pressure gas injected directly in combustion chamber

Ignition from diesel pilot

Diesel cycle

Limitations / Advantages

Methane slip

Get home power

Spark plug replacement

Methane slip

Part load operation

Load response

Fuel flexibility

Limited methane slip

Diesel responsiveness and efficiency

Get home power 12

TAB

Further Emissions Control Strategies

Exhaust Gas Recirculation (EGR)Cooled and uncooled

After-treatment StrategiesUrea based SCR systemsDiesel Particulate Filter (DPF)

Fuel sulphur content affects technology15 ppm for land based engines1000 ppm for marine inside ECA (0.1% after 2015)

HPDI TechnologyPilot diesel injected just prior to natural gas to provide energy for auto-ignition of gas injection

Natural gas injected at high pressure at end of compression stroke (no pre-mixed air/fuel)

Low diesel usage under all conditionsAverage of 6% diesel over vehicle operating cycle

Diesel Engine Performance remainsSame high power and torque

Same or higher efficiency

Robust combustion over wide range of fuel composition (no premixed air/fuel so no chance of detonation)

Typical Emission Reductions

~ 40% lower NOx~ 70% lower PM

~ 20% lower GHG

HPDI delivers the required performance

Identical torque curve as selected diesel ratings

Same responsiveness

Compatible with diesel drive train components

No change in cooling requirements vs. base diesel

Torque Curve

0

200

400

600

800

1000

1200

1400

1600

1800

2000

600 800 1000 1200 1400 1600 1800 2000Engine Speed (RPM)

Torq

ue (f

t-lb)

Diesel

HPDI

Truck engine example:Certified to Australian ADR 80/02Power: 500-580hp Torque: 1,650-1,850 lb-ftSimilar BMEP as HHP engines

High Pressure Direct Injection Common-rail style injectorDirectly replaces diesel injectorCapable of independently injecting diesel and gas at up to 30 MPa injection pressureDiesel used as an ignition source, actuation fluid, lubricant, and coolant

Diesel HPDI

HPDI System - Westport HD

Westport’s HPDI technology was developed initially on the Cummins ISX platform, a 15-litre diesel engine rated from 400 to 600 HP

Currently working with Volvo and Weichai on new HD applications

Gas and Pilot Diesel Flows

Only enough diesel fuel to initiate ignition

~3% at full load

5-6% pilot on typical HD truck cycle

No idling or running solely on diesel fuel

HPDI Emissions History

(4-stroke HD high speed engines, transient operation)

HD Project Base Engine NOx PM NMHCCO

(meas.) DFCO

(cert) DOC DPF SCR

Australia ADR 80_02VGT + Cooled EGR(lightly used) 2.55 0.031 0.25 3.93 1 2.93 no no no

US EPA/CARB 2004 VGT + Cooled EGR 1.61 0.027 0.01 0.08 8.9 0.53 yes no no

Australia ADR 80_03 VGT + Cooled EGR 2.41 0.003 0.07 0.67 8.9 4.45 yes yes no

US EPA 2007 VGT + Cooled EGR 0.94 0.008 0.11 2.21 8.9 14.69 yes yes no

US EPA 2010 VGT + Cooled EGR 0.18 0.005 0.01 0.05 3.2 0.13 yes yes yesValues in g/kWh

Areas of focus for Westport High Horsepower

High fuel useTransient power requirementsPower density importantCommon engine platforms

Rail Marine Mining

Westport Approach to Rail Program

Westport is transitioning its proven HPDI technology from Heavy Duty trucking to High Horsepower applications (600 to 6000 HP)

SDTC Overview

The SDTC program requires Westport to develop a new HPDI injection system, but heavily parented off the existing truck technology

Known technology with proven track record in on-road applications

Minimal change to functionality

Leverage existing knowledge and reliability data to create a robust solution for challenging rail conditions

This fuel system will be developed as an OEM application, not a one-off demonstration

Final Thoughts

Fuel – cost, quality, infrastructure

Emissions – motivator or driver!

Engines – choice depends on application

Westport HPDI marine – coming soon!

Dale Goudie, PEngWestport Innovations Inc.

www.westport.com