Virginia Pupil Transportation

June 23, 2010

Russ SpanglerVice President – Automotive & Bus SalesCummins Atlantic LLC

Rick Glover- Technical Support ManagerCummins Inc.Southern Division

Todays Topics

2010 EPA Emissions– Standards

• New for 2010

– Methods • SCR - Selective Catalytic Reduction• EGR - Exhaust Gas Recirculation

– Approaches– What’s next?

CUMMINS MID-SOUTH, INC.

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CUMMINS INTERSTATE POWER, INC. CUMMINS INTERSTATE POWER, INC.

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HalifaxHalifax

CUMMINS NORTHWEST, LLC.

CUMMINS WEST, INC.

CUMMINS CAL PACIFIC, LLC

CUMMINSROCKY MOUNTAIN LLC.

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CUMMINS SOUTHERN PLAINS, LLC

CUMMINS CENTRAL POWER, LLC

CUMMINS NPOWER, LLC

CUMMINS POWER SOUTH LLC

CUMMINS ATLANTIC LLC

CUMMINS CROSSPOINT, LLC

CUMMINS BRIDGEWAY, LLC

CUMMINS POWER SYSTEMS, LLC

CUMMINS NORTHEAST, INC.

HAWAII BRANCH OF CUMMINS WEST

Alaska Branch of Cummins Northwest

Hawaiian Islands

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Arcata

Pendleton

Coburg

Chehalis Yakima

Spokane

Medford

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Redding

*West Sacramento

*Fresno

*Bakersfield

**Montebello*

Ventura *Bloomington

* El Cajon

*Tijuana

*Phoenix

*Farmington

*Albuquerque

*El Paso

*Las Vegas

*Elko

*Sparks

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*Boise

*Rock Springs

Salt Lake City

**Grand Junction

*Gillette

*Billings

*Fargo

*Grand Forks*

Minot

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Sioux Falls

**Kearney

*Colby

*Garden City ** *

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Wichita

*Tulsa

*Oklahoma City

* *Dallas

*Fort Worth

*Amarillo

*Houston

*Mesquite

*Odessa

*San Antonio *Morgan City *

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New Orleans

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*Little Rock

Kansas City

JoplinSpringfield

Columbia

Sikeston

Cedar Rapids

Des Moines

St. Louis

Duluth

DePere

Milwaukee

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Iron Mountain

Madison

ChicagoGary

Bloomington- Normal

Rock Island

Eldorado

Grand Rapids Saginaw

*Fort Wayne

EvansvilleLouisville

Elkhart

Columbus

Cincinnati

ClevelandToledo

Youngstown

Charleston

Fairmont

Hazard

Nashville

Chattanooga

Mobile

Birmingham

MontgomeryJackson

Albany

Gainesville

Tampa

Ft. Myers

Jacksonville

Hialeah

West Palm Beach

Ocala

Orlando

Charleston

ColumbiaMyrtle Beach

Spartansburg

Knoxville

Augusta

GreensboroKenly

RichmondRoanoke

Tidewater

Baltimore

PittsburghHarrisburg

Newark

SpringfieldAlbanyWilliamsville Syracuse

Scarborough West Lebanon

Savannah

Anchorage

Honolulu

Missoula

CUMMINS MID-SOUTH, L.L.C.

Rocky Hill

Bronx

Mt. Clemens

Dearborn

Rochester

*Austin

Contact: John D. Rondot - Distributor Support

U.S./CanadaDistributor Network

Fort McMurray

Vancouver

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Lethbridge

Regina

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Thunder Bay Ottawa

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CUMMINS WESTERN CANADA

CUMMINS EASTERN CANADA, LP.

Val d ‘Or Montreal

Ste. Foy Fredericton

Yarmouth

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Wabush

Note: Maps not to scale

Eau Claire

Maui

CombustionTechnology

Electronic Controls

Turbochargers Fuel Systems

Systems Integration

Aftertreatment System

Diesel Exhaust Fluid Filtration

2010

One 20 year old truck = 100 New

What’s in Air We Breathe?

Nitrogen 78%

Oxygen 20%

Carbon Dioxide < 2%& Trace Elements

Effect of Oxides of Nitrogen (NOx)

Sun transformsNOx into SMOG

EPA ’98

0.010.0 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.130.0

0.5

1.0

1.5

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EPA NA Emission StandardsN

Ox

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hp-h

r

Particulate – g/hp-hr

EPA ’02

EPA ’07

EPA ’10

Methods for 2010 Emissions Compliance

“Advanced” EGR Selective Catalytic Reduction

100% EGR Challenges

Fuel Economy Significantly Compromised

5-9% loss

Combustion Efficiency degradation:• Lower Combustion Temperatures• Higher engine pumping losses• Increase Particulate Filter Regenerations

100% EGR Challenges

Horsepower - Power Density / Engine ResponseSignificantly Compromised

Deterioration of 50 – 100 hp for same displacement

Higher EGR flow & EGR controls compromises engine performance

100% EGR Challenges

Engine Life-to-Overhaul significantly reduced

Higher EGR flow produces excessive acidic condensation:• Corrosion of internal engine systems

• High rate of lube oil contamination

Negative impact on Durability

100% EGR Challenges

Significant Increase in Heat Rejection 20% increase

Higher EGR flow:• Multiple EGR coolers

• Larger vehicle cooling package

• Major redesign of radiator / Charge Air Cooler / Fan systems

Increased Heat Load under the hood

What is Selective Catalytic Reduction (SCR)?

SCR uses a chemical called Diesel Exhaust Fluid (DEF) and a SCR catalytic converter to significantly reduce nitrogen oxide (NOx) emissions in diesel engines.

Cummins Aftertreatment System

Cummins Aftertreatment System

Selective Catalytic Reduction

(SCR) Catalyst

Decomposition Reactor

Diesel Exhaust Fluid (DEF)

Dosing Valve

Cummins Particulate

Filter

The Right Technology Matters

Cummins Heavy-Duty engines will add integrated SCR solution to meet 2010 EPA Emission Standards

- Significant advancements in SCR technology have been achieved by Cummins Emission Solutions as demonstrated by our 2010 MidRange development program.

- SCR solution offers up to 5% improvement in fuel economy.

The Right Technology Matters

New SCR catalyst technology allows the engine to operate with optimum fuel efficiency- NOx conversion efficiency of new Copper Zeolite SCR catalyst allows much better fuel economy

- Fuel (+DEF) consumption better than industry-leading Cummins 2007 ISX

- Approximately 2% DEF consumption- Maximizes Passive Regeneration of the DPF

New SCR catalyst is a Step Change in Technology

Heavy Duty Solution

Cooled EGRParticulateFilter

2007

15L

Cooled EGRParticulateFilter

Same as today

SelectiveCatalyticReduction

2010

Heavy Duty Solution

15L

Non-toxic and non-flammable

Safe to handle and store

Poses no serious risk to humans, animals, equipment or the environment if properly handled

The product is slightly alkaline with a pH of approximately 9.0

DEF Properties

Acidic pH

All Outlets

Cummins Outlets - RedOEM Outlets – GreenParts Distribution Centers (PDC) – BlueIndependent Distribution - Yellow

Diesel Exhaust Fluid (DEF)

Diesel Exhaust Fluid is 32.5% strength urea water solution with high purity requirements.

The specification of Diesel Exhaust Fluid is currently defined according to the DIN 70700 and the ISO 22241-1 specifications.

Water purity: ISO grade 3, produced for example by single distillation, de-ionization, ultra-filtration or reverse osmosis.

The 32.5% wt urea water solution provides the lowest freezing point while also maintaining the solution in constant phase.

– Urea and water freeze together at 11° F so the frozen solution has the same 32.5% wt.

– When thawed, it will remain at the same concentration of urea solution feeding the SCR system.

What happens at different concentrations of Urea:

– Greater concentrations → Urea freezes before water– Reduced concentrations → Water freezes before Urea

Why 32.5% for DEF?

DEF Freeze Point

Freezing of DEF begins at approximately 11°F.

Once the DEF has melted, it can be used without problem. The first melted drop has the same consistency as defined in the Diesel Exhaust Fluid specification.

The SCR system is designed to provide heating for the DEF tank and supply lines which will reduce the melting time for frozen DEF.

If DEF freezes, start up and normal operation of the vehicle is not inhibited so the operator is not impacted.

DEF Service Tool

A service tool called a refractometer is in development.

The refractometer measures the concentration of urea in the DEF.

May provide one quick, simple way for urea quantification.

How Much will DEF Cost?

Automotive grade DEF is only slightly more expensive to produce compared to Agricultural grade DEF.- Requires a higher purity urea base stock and deionized water

Higher prices of DEF are associated with smaller containers and low volume suppliers.

DEF prices loosely follow natural gas commodity prices

How Much DEF Will I Use?

Approximately 2% DEF consumption

Every 50 gallons of

fuel = 1 gallon of DEF

Cummins 2010 Advantages

1. Outstanding Base Engine– XPI Fuel System

2. Aftertreatment System– Cummins designed and developed– Copper Zeolite SCR Catalyst

3. Industry Leading Fuel Economy– 5% better than ISX ’07– Up to 10% better than competition– Less driver MPG variability

across the fleet

ISX15 Readiness

1. Proven base engine– Built on success of today’s industry-leading ISX

2. Cummins designed / developed subsystems– Only diesel manufacturer with this capability

3. Exceptional product testing results– Will exceed 5,000,000 field test miles by production launch

4. Service channel is ready for 2010– Approx. 3500 service locations across North America

BetterBetter Every Mile.Every Mile.

BetterBetter Fuel Economy.Fuel Economy.– 5% better than ’07 ISX / Up to 10% better than competition

BetterBetter Performance.Performance.– Improved driveability and throttle response

Better Reliability.– Best-in-class durability and dependability

BetterBetter for the Environment.for the Environment.– Near zero NOx and PM emissions – Improved MPG results in smaller carbon footprint

Thanks!

0.0

0.5

0.01

US98

0.0 0.02 0.03 0.04 0.04 0.04 0.06 0.07 0.08 0.09 0.10 0.11 0.12

US04

1.0

1.5

2.0

2.5

3.0

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Global On-Highway Standards

EURO IV

EURO V

NO

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g/H

P-hr

Particulate – g/HP-hr

US07

US10

EURO VI