Cummins, Inc.

Off-Road Engine Emissions: Bridgingthe Gap

Tom StoverCummins, Inc.

Cummins, Inc.

HighlySociable

Low InitialCost

ElectronicIntegration

FuelEfficientLow

Maintenance

Reliableand

Durable

HighPerformance

Customer Requirements

Cummins, Inc.

Evolution of NA HDOn-Highway Engines

0

5

10

15

0 0.1 0.25 0.6 1.0

1974 EPA (HC + NOx)

19881978 (HC + NOx)

199019911994*

1998

1978 ModelsRetard TimingJWACLow Friction1988 Models

Retard TimingIncr. Inj. PressLow temp JWAC

Higher BoostHigher Comp Ratio

1991 ModelsRetard TimingIncr. Boost, CACIncr. Inj. Press.Electronic Inj. Control

Particulate [g/(HP-hr)]

NO

x [g

/(H

P-h

r)]

*500 ppm max. sulfurfuel available in 1994

20042007

Cummins, Inc.

Evolution of MobileOff-Highway Engines

EPA 174-301 HP MOH Segment Shown

0

5

10

15

0 0.15 0.4 1.0

Tier I

Tier II

Tier III Incr. Inj Pressures

Tier I Models

Retard Timing

Particulate [g/(HP-hr)]

NO

x [g

/(H

P-h

r)]

Tier II Models Retard Timing High Boost, CAC Incr. Inj Pres Electronic Controls?

Cummins, Inc.

World Emission Levels for HD Truck

1995 2000

US Europe GroupUnregulated

EPA 94 Euro 1/2 1 NOx>6.5 g/bhphr, PM>0.25 g/bhphr

EPA 98 Euro 3 NOx=3.5-6.5 g/bhphr, PM=0.1-0.25 g/bhphr

EPA 02 Euro 4 NOx=2.0-3.4 g/bhphr, PM=0.06-0.1 g/bhphr

EPA 07 Euro 5 NOx=1.0-1.9 g/bhphr, PM=0.05 g/bhpr

EPA 12? Euro 6? NOx<1.0 g/bhphr, PM<0.05 g/bhphr

2010 2005

2

1

1

1

2

2

1

2

3

2

2

2

1 3

3

1

4

3

3

3

4

4

2

2

2

2

0

1

2

3

4

5

Cummins, Inc.

Diesel Market SizeBy NOx Emissions Level

HD Auto

2000 Ind

Power Gen

HD Auto

2005 Ind

Power Gen

HD Auto

2010 Ind

Power Gen

Total Market Size ($B)

0 2 4 6 8 10 12 14 16 18 20

Legend: Unregulated

6-9 g/bhphr

4-6 g/bhphr

2-4 g/bhphr

<2 g/bhphr

Cummins, Inc.

Engine Manufacturer’sProduct Dilemma

US Tier III (3.0-3.5 g/HP-hrNOx+NMHC)

Euro IV (2.6 g/HP-hrNOx/.015 g PM)

US EPA 2004 (2.5 gmNOx+NMHC/.1 g PM)

US EPA 2007

Tier I and Tier II IndustrialWW

Unregulated Markets

Euro V (1.5g/HP-hrNOx/.015g PM)

??

Ultralow Sulfur Fuel

Low Sulfur Fuel

How to participate in worldwide diesel growthwith an economic portfolio of products?

Std. Sulfur Fuel

Cummins, Inc.

On-Highway Benchmark - NorthAmerican Class 8 Truck

60 MPH clean ramair, low fan usage

Standardized, modularcomponents allow customspecification

Legislated Vehicle Designs andDuty Cycle: Dimensions, RoadSpeed, GVW

<500 ppm fuel sulfursince 1994

Market drivers: fuel economy, low cost ofoperation, availability, driver retention

300-600 HP typical

Cummins, Inc.

Typical Off-HighwayApplication

0 MPH dirtycooling air, fan onall the time

Huge variety of standardmachines w/ littlecustomization

NO Legislated Vehicle Designsand Duty Cycle: Dimensions, RoadSpeed, GVW

2000-3000 ppmfuel sulfur

Market drivers: Availability,productivity, ergonomics, packaging,noise

175-600 HP typical

Cummins, Inc.

Tier III Technology Considerations

Cost Sensitivity

Fuel Options

Emission Technology Options

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

3.0 NOx* 302 - 751 HPQSL, QSM, QSX, QSK19

3.0 NOx* 174 - 301 HPQSB, QSC

3.0 NOx* 100 - 173 HPQSB

3.5 NOx* 49 - 99 HPB3.3, QSB

Time* Gr/BHP-HR NOx + NMHC

Cummins, Inc.

Key TechnologiesNOx and PM Reduction-2005

NOx

Particulate

•Cooled EGR

•Lean NOx

•Lean NOx + HC

•Plasma Assisted LeanNOX

•NOX Adsorber

•Microwave Preheating

•Selective CatalyticReduction

•Diesel OxidationCatalyst

•Catalyzed Soot Filter

•MicrowaveRegenerated Soot Filter

Starting Point: Advanced In-Cylinder Emission Control

+

+

Cummins, Inc.

EGR

• No extra fluid• No Aftertreatment• Common w. On-

highway product• Regulatory

acceptance

• Increased heatrejection

• 500 ppm fuelrequired

Modular Design-EGR System

+ -

Cummins, Inc.

Urea SCR

• Availabletechnology

• No heat rejectionimpact

• Improved fueleconomy

• Modular andscalable

• Sulfur tolerant

• Urea Infrastructure• Regulatory

acceptance?• Tamperproofing• Freezing• Installation impact• Unique off-road

product

+ -

ECU

Ureametering

Catalyst

Urea storage

UREA SCR Schematics

Cummins, Inc.

Future Emissions

• By 2020, EPA estimates that non-road willcontribute:– 66% of mobile NOx– 76% of mobile PM

• Standards seem likely to harmonize around on-road technology, with recognition of thecharacteristics of the non-road markets

Cummins, Inc.

Key TechnologiesNOx and PM Reduction-2007

NOx

Particulate

•Cooled EGR

•Lean NOx

•Lean NOx + HC

•Plasma Assisted LeanNOX

•NOX Adsorber

•Microwave Preheating

•Selective CatalyticReduction

•Diesel OxidationCatalyst

•Catalyzed Soot Filter

•MicrowaveRegenerated Soot Filter

Starting Point: Advanced In-Cylinder Emission Control

+

+

+

Cummins, Inc.

Catalyzed Soot Filter

• Issues:– Regeneration

• Level• Frequency• Speed/Load/Duty Cycle Dependence

– Wide applicability will require activeregeneration

– Once initiated, regeneration must becontrolled

• Soot loading• Reduction in engine airflow during

regeneration can lead to excessivetemperatures and catastrophic failure

Exhaust Temperature (deg F)

0

100

200

300

400

500

600

100 200 300 400 500

Temperature (deg C)

Fre

quen

cy

0%10%20%30%40%50%60%70%80%90%100%

Cum

ulat

ive

ENGINE DUTY CYCLE REQUIREMENT10% of operation over 350 deg C

(conservative figure for on-highway)

Cummins, Inc.

Soot Filter Issues

• Many duty cycles are very light• Exhaust temperatures are low• CSF regeneration a big issue

– Winter conditions

• Ultralow sulfur fuel will be arequirement for many applications

• Active regeneration may be requiredfor broad applicability

Higher Pt

Better RegenHigher Sulfates

Higher CostULSF Req’d

Lower Pt

Worse RegenLower Sulfates

Lower CostLSF Req’d

Cummins, Inc.

NOx

NOx

SOx

DPF/NOx Adsorber System

DPF

ExhaustFlow Paths

low rangeNOx sensor

high rangeNOx sensor

w/O2

VariablePosition valve 2-way valves

∆P sensortemp

sensor

tempsensor

tempsensor

Note: Sensors from lower circuit have been omitted for clarity

MAF

HCinj.H

eat

sour

ce(e

.g. e

lect

ric)

DPF SOx

DOC H2S

Cummins, Inc.

Effect of Fuel Sulfur on NOx Adsorber Performance

0

10

20

30

40

50

60

70

80

90

100

0 50 100 150 200 250

Time (Hours)

(%)

NO

x C

on

vers

ion

Phillips Ultralow Sulfur ~5 ppm

Low Sulfur ~ 400 ppm

Cummins, Inc.

high rangeNOx sensor

w/O2

Urea SCR System

DPF

ExhaustFlow

low rangeNOx sensor

VariablePosition valve

∆P sensor

tempsensor

tempsensor

tempsensor

MAF

Hea

t so

urce

(e.g

. ele

ctri

c)

DPF

DOC SCR Pre

UREAInjector

airassist

meteringpump

heatedlines

tempsensor

qualitysensor

Heat source(e.g. electric)

UreaTank

Cummins, Inc.

The Tier III Gap

Tier II

Cooled

EGR

Urea

SCR

Tier IV?

InfrastructureRegulatory

Fuel SulfurHeat Rejection

2005Tier III

Today 2010?

Automotive TechnologyAdsorber or Urea SCR

Soot FilterULSF Single Fuel

Cummins, Inc.

Bridging the Gap!

VehicleIntegration

LubricantDiagnostics

Filtration

Clean, Safe, and Efficient Business Solutions for End-Users!

ExhaustAftertreatment

Fuel

Air Handling

• Tier III in 2005 willrequire focus on the keyunderlying issues:

– Fuel sulfur– Urea

• Rationalization w/ on-highway seemsinevitable

• Tier III will only be aninterim technology

• Significant air burdengains w/ advancedaftertreatment arepossible…given timeand development

• System solutionsneeded to keep USManufacturerscompetitive!

Cummins, Inc.

Backup

Cummins, Inc.

Diesel EmissionRegulation - US EPA

Diesel EmissionRegulation - US EPA

0

5

10

15

20

1970 1975 1980 1985 1990 1995 2000 2005 2010Model Year

Oxi

des

of

Nit

rog

en (

g/b

hp

-hr)

0.0

0.5

1.0

1.5

2.0

Particu

late Matter

PM

Steady StateTest

NOx + HC

Transient TestNOx(Unregulated)

PM (Unregulated)

NOx

NOx + HC

NOx

Urban Bus PM

2002 EPA

2007 NPRM

NOx + NMHC

Cummins, Inc.

EPA MOH Emission Standards

0

5

10

15

20

Oxi

des

of N

itrog

en (g

/bhp

-hr)

Unregulated level

1980 1985 1990 1995 2000 2005 2010Model Year

82% reductionof NOx

54%

35%

40%

2015 2020

??

Tier I

Tier II

Tier III

Cummins, Inc.

Projected Emissions Requirements

98 2002 ‘07 NPRM Euro III Euro IV Euro V Tier II Tier III

NOx (gm/hp-hr) 4.0 2.0 0.2 3.7 2.6 1.5 4.8 3.0

PM (gm/hp-hr) .05-0.10 .05-0.10 0.01 0.075 0.015 0.015 0.15 N/A

US EPA European Industrial

Cummins, Inc.

End-User Cost ComparisonUS Heavy Duty

1.01.0

EGR Only

0.0

5.0

10.0

15.0

20.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Estimated On-Highway NOx (g/bhp-hr)

Est

imat

ed A

nnua

l Cus

tom

er C

ost I

ncre

ase

(%)

Assumptions for Base HD Vehicle:NOx = 8.0 g/bhphr100,000 miles/year6 miles/gal fuel consumption$1.40 Gal Diesel Fuel Cost4 Yr. SL Depreciation (25% RV)

200

7 N

PR

M

2002

EP

A

Typical Customer Operating Profit Level

Timing Retard Only

Adsorber

SCR

EGR+ Aftertreatment

Cummins, Inc.

Future Solutions DemandSystem Integration!

VehicleIntegration

LubricantDiagnostics

Filtration

Clean, Safe, and Efficient Business Solutions for End-Users!

ExhaustAftertreatment

Fuel

Air Handling

Cummins, Inc.

Peak Torque PM - ISM370

0.000

0.005

0.010

0.015

0.020

0.025

0.030

3 30 150 350 3 30 150 350Fuel Sulfur (ppm)

PM

(g

/bh

p h

r)

Non-Sulfate Sulfate + H20

Engine-out After DOC

OICA Mode 2 - 518oC (964oF) catalyst inlet temperature

Cummins, Inc.

World Energy Consumption

North America

Western Europe

Industrialized AsiaEE/FSU

Developing Asia

Middle East

Africa

Central/South America

0

100

200

300

400

500

600

700

1990 1995 2000 2005 2010 2015 2020Year

En

erg

y C

on

sum

pti

on

(Q

uad

rilli

on

BT

U

Source: Energy Information Administration International Energy Outlook 1999

• World energyusage increasesby 78%

• Usage inIndustrializedCountriesincreases by44%

• Usage inEE/FSU remainsrelativelyconstant

• Usage inDevelopingCountriesincreases by219%

Cummins, Inc.

NOx

NOx

SOx DPF

PrimaryExhaust

Flow

low rangeNOx sensor

high rangeNOx sensor

w/O2

VariablePosition valve 2-way valves

∆P sensortemp

sensor

tempsensor

tempsensor

MAF

HCinj.H

eat

sour

ce(e

.g. e

lect

ric)

DPF SOx

DOC H2S

SecondaryFlow During

Regeneration

NOx Adsorber/Particulate FilterConflicting Regeneration Requirements

HIGH:Temperatures

NO2 ConcentrationO2 Partial Pressure

MODERATE:Space Velocities

MODERATE:Termperatures

LOW:NO2 ConcentrationsO2 Partial Pressures

Space Velocities

Cummins, Inc.

Catalyzed Soot Filter

• Required to meet 2007 EPA andbeyond emission levels

• Self-regenerates above certainexhaust temperatures (~300 C)

• Can be very efficient (~90+%)

System DevelopmentFundamental Research

Soot Filter System Design

Cummins, Inc.

MOH Tier III Customer Cost Analysis - PRELIMINARY(@ 3.0g/bhp-hr NOx)

$(500)

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

B3.

9 F

ork

lift

B3.

9 C

ompa

ctor

B5.

9 Lo

ader

B5.

9 E

xcav

ator

C8.

3 C

om

bin

e

C8.

3 E

xcav

ator

M11

Gra

der

M11

Du

mp

Tru

ck

QS

X15

Ag

Tra

cto

r

QS

X15

Co

mp

ress

or

QS

K19

Hau

l Tru

ck

QS

K19

Dril

l

Application

An

nu

al In

crem

enta

l Co

st v

s. T

ier

I

Cooled EGR

SCR (w/ 8g engine)

Customer Cost Analysis EGR vs. SCR

Cummins, Inc.

Mobile Off-Highway Market is veryDiverse

Cummins, Inc.

Trends in Off-Highway Equipment

Noise Treatment

Emphasis on operator vision

High Power density

Cummins, Inc.

Trends in Off-Highway Equipment

Compact Machines

Emphasis on operator vision

and productivity

Low Noise

Innovative Packaging

Cummins, Inc.

World Emission Levels for Mobile Off Highway

1995 2000

GroupUnregulated

Tier 1 1 NOx>6.5 g/bhphr, PM>0.25 g/bhphr

Tier 2 NOx=3.5-6.5 g/bhphr, PM=0.1-0.25 g/bhphr

Tier 3 NOx=2.0-3.4 g/bhphr, PM=0.06-0.1 g/bhphr

NOx=1.0-1.9 g/bhphr, PM=0.05 g/bhpr

NOx=1.0 g/bhphr, PM<0.05 g/bhphr

2010 2005

0

12

3

4

5

3

23

3

2

2

1

2

12

2

11

1

1