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Reducing Total Cost of Ownership
through Innovation
Gary Kassen, Engineering Director – Hydraulics/Pneumatics
Burr Ridge, IL
Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited.
October 19, 2017
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19 October 2017
2Our Products
Crawler Excavators CombinesTractorsEngines and Transmissions
Skid Steer Loaders
Trucks Buses and Coaches Firefighting Equipment Civil Protection and Defense Vehicles
CNH Industrial – 2016 Sales $23.7 B~55% Off-Highway
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19 October 2017
Megatrends & Related Material TopicsFive-Time Leader in the Dow Jones Sustainability Indices Topics
EMPLOYEE ENGAGEMENT
CO2 AND OTHER AIR EMISSIONS
RENEWABLE ENERGY WATER AND
WASTE EFFICIENCY AUTOMATION/
AUTONOMOUS VEHICLES
DIGITAL WORKPLACES
INNOVATION-TO-ZERO
VALUE CHAIN MANAGEMENT
CIRCULAR PRODUCT
LIFECYCLE
LOCAL COMMUNITY
ENGAGEMENT
TRADE, REGULATIONS
AND PUBLIC DEBATE
SELF-SUSTAINING SYSTEM FOR FOOD
Food scarcity & Food security
Source: CNH Industrial Sustainability Report, 2016
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Renewable Fuels
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Reducing Total Cost of Ownership
Renewable fuels
� Methane
� Hydrogen
Automation
� Functions
� AutonomousMethane Tractor
Autonomous Tractor
Hydrogen Fuel Cell Tractor
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Methane Power Tractor
PERFORMANCE – TIER 4A T6.175 VS T6 METHANE POWER
Methane Tractor debut at 2017 Farm Progress Show
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Methane AdvantagesNatural Gas / Bio-Methane Vs. diesel
Natural gas (fossil)CO2 -14%
Bio-methaneCO2 -100%
-14%
Cursor 9 NGCursor 9 diesel
CO2 [g/kWh]
-99%
Cursor 9 NGCursor 9 diesel
Euro VI limits
PM [mg/kWh]
Cursor 9 diesel
-31%
NOx [g/kWh]
Cursor 9 NGEuro VI limits
Significantly lower noise with Methane
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ATS – Diesel Vs. CNG/LPG solution
ATS solution for CNG/LPG engines is ~90% smaller volume (ref. Tier4B)
3- Way catalyst
Tier 4B Diesel ATS Tier 4B CNG/LPG ATS
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Total Cost of Ownership – Commercial filling station simulation
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Fuel Price
Engine efficiency
Energy Value (MJ per kg)
Fuel cost (€/hrs) – Contractors operators (VAT excluded)
Fuel Consumption: Diesel: 27L/hrs - Methane: 25 kg/hrsEngine Efficiency: Diesel: 45% - Methane: 37.5 (average field data)Reference Yearly Usage: 1500 hrs/yearPump Price: average price across IT/FR/UK/DE/ES/PO/NL
44 48
+7%
Diesel Methane
24
20
-15 / 20%
MethaneDiesel
100 83
Methane
-17%
Diesel
-20 / 25%
MethaneDiesel
From0.9 to 1.1€/kg
From1.2 to 1.4€/kg
Not considering urea usage (2% saving) and the elimination of potential fuel theft, the Methane tractor could achieve more than €5500 per year savings compared to a diesel powered tractor
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19 October 2017
Total Cost of Ownership – Energy Independent Farm simulation
21 September 2016
Fuel Price
Engine efficiency
Energy Value (MJ per kg)
Fuel cost (€/hrs) – Contractors operators (VAT excluded)
Fuel Consumption: Diesel: 27L/hrs - Bio Methane: 25 kg/hrs
Engine Efficiency: Diesel: 45% - Bio Methane: 37.5 (average field data)
Reference Yearly Usage: 1500 hrs/year
Pump Price: average price across IT/FR/UK/DE/ES/PO/NL
44 48
+7%
Diesel Bio Methane
24
16
-25 / 40%
Bio MethaneDiesel
100 83
Bio Methane
-17%
Diesel
-40 / 45%
Bio MethaneDiesel
From0.7 to 0.8€/kg
From1.2 to 1.4€/kg
Not considering urea usage (2% saving) and the elimination of potential fuel theft, the Methane tractor could achieve more than €13,000 per year savings compared to a diesel powered tractor
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Hydrogen Fuel Cell – New Holland T6
Background:
�Splits hydrogen gas (H2) molecule to produce electricity
�Zero emissions
�Lower noise
�High efficiency (150% of diesel)
�Fuel cells are currently expensive but cost could drop
dramatically if widely used in automotive
�Limited distribution infrastructure (H2) but could be
produced locally on farms
�Requires tanks for pressurized hydrogen fuel (790 bar
currently being used in automotive)
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Autonomy – Operator Input vs. Productivity
*No local supervision*All manned vehicles
*Manned back-up
*All manned vehicles*In-field supervision ofunmanned vehicles
Level 1 Level 2 Level 3 Level 4 Level 5
Guidance Coordination Operator Assisted Autonomy
Supervised Autonomy Full Autonomy
Operator Productivity Operator Productivity Operator Productivity Operator Productivity Operator Productivity
Medium
Low Reduced
Remote
High
Note: There are many other tangible and intangible benefits – Agronomic, Economic, Safety, etc.
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Legal
� Limited rules and compliance framework
� Impact on insurance business
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Challenges to Autonomy
Safety
� More safety directives
� System security
Human Vs Machine
� Up to which level do we want the machine to take the decisions?
Technology adoption
� Need to educate people
� Find the right technology costs
Small Scale Farming
� Lack of competitiveness
� Adapt machine sizes
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� Renewable Fuels – require more space
• Improve efficiency
• Reduce parasitic losses
• Reduce size of components
� Automation
• E-braking and E-steering
• Higher level of functional safety
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Fluid Power Challenges
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Reducing Total Cost of Ownership - Summary
Technology
� Renewable fuels
• Methane
• Hydrogen
� Automation
• Functions
• Autonomous
Benefit
� Lower fuel costs
� Lower emissions
� Lower noise
� Higher productivity
� Reduced required skill
� Lower cost