Dynamic Gas Blending Overview

Dynamic Gas Blending What is it?

A way to use two fuels simultaneously in a power application

Why is it important to our customers?

Savings ↑

Regulated Emissions

What is Caterpillar’s competitive advantage?

Superior substitution and more tolerant of low quality gas

Emissions Certification*

Factory warranty with more coverage

*Applicable to U.S. kits

Why Dynamic Gas Blending?

Historical high discrepancy between natural gas and diesel fuel prices

Abundance of field gas in various shale plays worldwide

Expanding infrastructure for gas delivery

Regulatory pressure to reduce flaring

Maintain regulated emissions compliance

Product Overview Core diesel engine with gas introduced into the intake air stream

Still a compression ignition engine

Use gas when it’s available, seamlessly revert to diesel-only mode if no gas available

Continuously optimizes gas substitution up to 70%-gas, 30%-diesel while maintaining diesel power and transient performance

Closed loop feedback monitors combustion characteristics to continuously protect engine from detonation

Can handle poor fuel quality, up to 2300 Btu/scf (Non Regulated)

Automatically adjusts to operate under a wide range of methane number gas quality

Simple installation and no load bank required

Integrated control panel for engine, generator, and gas system control and monitoring

Generator Set Schematic

Fuel Valve Reg Shutoff Fuel Htr

EKW Signal EMCP4.4

ISM ADEM 4 Exhaust Thermocouples

Detonation Sensors

Gas Supply in

Integrated Sensor Module (ISM)

Monitors combustion and communicates

data to the updated Engine Control

Module(*) and controls system to adjust and

protect the engine

*Not shown – ADEM A4 ECM

(new with DGB)

EMCP 4.4 Control Panel

Analog gauges for quick daily walk-around

Improved display performance, 16 languages,

paralleling & troubleshooting capability

Dynamic Gas Blending Technology

1 2

3

4

1. Customer connection point

2. Gas heater, Gas Shut Off

Valve & Pressure Regulator

3. Gas Fuel Control Valve

4. Line supplying metered gas

to the intake air stream

Estimated Fitting Times

Engine Hardware : 16-32 labor hrs Control System : 16-32 labor hrs

No manual tuning or additional

genset commissioning required

for DGB system operation

+

Gauges with walk around parameters

5.5” Graphical Interface

Improved troubleshooting/diagnostics

16 language capability

Integrated generator monitoring & control

Panel Side by Side Comparison

Generic gauges with some inactive

Very small display interface

Toggle switch navigation

No programmability

No generator monitoring or control

Old New

Dynamic Gas Blending Controls

Caterpillar: Confidential Yellow

Concept OnlyGAS BLENDING CONTROL

STATUS ENABLEDMAX % 70%ACTUAL % 40%

LOWER

GAS BLENDING

ON OFF RAISE

Panel Value

Direct Rack Input Connection (mAmps to PWM

Converter)

Plug and Play Connection to Engine and CAT

Generator

6 Gauge Direct Readout

Supports future Caterpillar Remote Monitoring

DGB Parameters

Gas Blending on/off (Switch Input)

Max % Substitution (Operator Input)

Act % Substitution (Feedback)

Reason Code for % Diff

Gas Pressure

Gas Valve Position Status (Open/Closed)

Generator Power KW (PWM Input to Engine)

Safety

Unique safety features

Design of genset as a whole fully

reviewed by Caterpillar

Diesel control ECM intertwined with gas

controls and combustion sensors

Flame arresters at each cylinder to

protect engine and operators

Knocking and exhaust monitoring at

each individual cylinder

Caterpillar-quality components used :

no plastic piping for gas

Drill rig majority load range

Dynamic Gas Blending

Substitution Curves*

Above 60% for majority of load range

Drilling : Theoretical Fuel Savings

Additional savings will be realized by reducing the number of truck deliveries of

diesel. If using only flared gas, gas price can be considered to be near zero.

Working hypothesis :

Quantity 3 units

Gensets Engine power 1,450 bhp / unit

Electric power 1,000 kWe / unit

Associated gas : typical 50% substitution Average load 35%

Pipeline gas : typical 70% substitution Hours per year 4,000 hrs (8,766/yr)

Subject to gas analysis and load profile.

Figures for guidance only. Gas 4.35 $/MMBtu

Efficiency loss from using gas 7% of substitution

Diesel 4.20 $/USGal

42.80 MJ/kg 32.75 $/MMBtu

128250.30 Btu/USGal

Substitution Total fuel cost Fuel saved

rate (USGal/yr) $ / year (MMBtu/yr) $ / year $ / year / site $ / year / site

0% 297,440 1,249,249 0 0 1,249,249 0

10% 267,696 1,124,324 3,842 16,711 1,141,035 -108,214

30% 208,208 874,474 11,690 50,849 925,324 -323,925

50% 153,094 642,996 19,184 83,450 726,446 -522,803

70% 94,481 396,820 27,371 119,063 515,883 -733,366

Diesel consumption / site Gas consumption / site

Working hypothesis :

Quantity 5 units

Gensets Engine power 1,450 bhp / unit

Electric power 1,000 kWe / unit

Associated gas : typical 50% substitution Average load 70%

Pipeline gas : typical 70% substitution Hours per year 8,000 hrs (8,766/yr)

Subject to gas analysis and load profile.

Figures for guidance only. Gas 4.35 $/MMBtu

Efficiency loss from using gas 7% of substitution

Diesel 4.20 $/USGal

42.80 MJ/kg 32.75 $/MMBtu

128250.30 Btu/USGal

Substitution Total fuel cost Fuel saved

rate (USGal/yr) $ / year (MMBtu/yr) $ / year $ / year / site $ / year / site

0% 1,982,935 8,328,326 0 0 8,328,326 0

10% 1,784,641 7,495,494 25,610 111,406 7,606,899 -721,427

30% 1,388,054 5,829,828 77,930 338,996 6,168,825 -2,159,502

50% 1,020,628 4,286,639 127,892 556,332 4,842,970 -3,485,356

70% 629,873 2,645,468 182,472 793,752 3,439,220 -4,889,106

Diesel consumption / site Gas consumption / site

Production: Theoretical Fuel Savings

Additional savings will be made by reducing the number of truck deliveries

of diesel. If using only flared gas, gas price can be considered to be zero.

Emissions*

Dynamic Gas Blending kit will

retain the original emissions

certifications of the engine

Retrofit kits will include Cat DOC

Full emissions documentation will

be available through TMI

*Slide applicable for U.S. kits only

0

1

2

3

4

5

6

7

8

9

Tier 1

3512B

Tier 2

3512C

3512C with

DGB

G3516B

NOx (g/hp-hr)

CO (g/hp-hr)

PM (g/hp-hr)

3512C Diesel Oxidation Catalyst with insulation (insulation not included)

Supply Gas Quality Requirements

DGB system can accept gasified LNG, CNG, pipeline, or associated field gas

Recommended Lower Heating Value is between 900 and 1250* Btu/scf (can calculate using GERP)

– Clean, dry gas (Gaseous Fuels A&I guide LEBW4977)

– Up to 10ppm H2S (emissions certified kits)

– Up to 50ppm H2S (non-emissions certified kits with stainless steel aftercooler added)

Supply gas pressure to DGB: 12 to 35 psi

Supply gas temperature to DGB: 10 to 60 deg C

Supply gas flowrate: for 3512C, up to 6600 SCF/hr under max substitution conditions

* Applicable to U.S.A. Emissions Certified Kit

Dynamic Gas Blending - Value

Unique diesel injection timing map for Gas Blending Mode

– Allows for 10-20% improved substitution over diesel-only map at key

operating load factors

– Ensures emissions compliance on certified range of gases over all

operating load factors*

– Protects engine and expands load factor range over which substitution

can be safely achieved & optimized

Continuously maximized substitution as loads & gas

changes

– Comprehensive controls keep engine safely within peak cylinder

pressure, exhaust gas limits

– Keep engine out of detonation

– Closed loop feedback maintains genset power and transient

performance

No manual setup, extra commissioning, or tuning

– No need to retune or swap controls as sites, gas quality change

– Simple operator interface to set substitution, see live data on system

performance

– If no gas available, system automatically reverts to diesel-only mode

*Applies to U.S. kits only

Increased fuel savings opportunity

Emissions peace of mind

Reliable, durable product

No additional operating costs, maintenance activities

Timeline

Currently conducting 3512C Land Drilling & 3516B Production field

follows in the US, Canada, Russia and Argentina

Field follow progress indicates availability as shown below

*All availability dates are tentative and subject to change

Dynamic Gas Blending

Delivering Project Success

Frac Installation - Oklahoma Production Installation - Argentina

Drilling Installation - Oklahoma Drilling Installation - Canada

Caterpillar Oil & Gas product

THANK YOU FOR YOUR ATTENTION For more CAT OIL & GAS

Please contact

Mr. Otgontugs U. Sales Engineer

PSD of WAE Mob: 95951542

Tel: (976) 70187588 Fax: (976) 70187587

Email: otgontugs@wagnerasia.com Web: www.wagnerasia.com