Natural Gas and Near Zero Engine Technology Cummins Westport Inc. (CWI)

. Cummins Westport is a joint venture company established in 2001 – 50% - Cummins Inc. - world’s largest builder of commercial diesels, – 50% - Westport Innovations Inc. - world leader in gaseous fuel engine technology . CWI offers 6 to 12 litre automotive engines. (CNG, LNG, RNG) . Engines are manufactured by Cummins. . Parts, service and training support through the Cummins Sales and Service network. use in vehicles has grown and evolved! Do NGV’s make sense for me? - Economics

Cost Areas Natural Gas Comparison to Factors to increase NG Diesel benefit

Fuel Cost Historically lower price and • Higher annual mileage = more stable larger fuel savings • No need for DEF fuel. CWI technology uses passive TWC Vehicle Incremental price of NG • Optimize fuel storage size Purchase vehicle largely dependent on for desired range Price off engine NG storage system • Incentive programs available to cover incremental cost of vehicle Maintenance Minor additional maintenance • Follow CMI maintenance of NG engine ~$0.01/mile intervals and procedures • Use CMI authorized parts • Set oil drain / service intervals based on average fleet speed. • Check / drain fuel filter daily Do NGV’s make sense for me? - Infrastructure

. Use Existing natural gas pipeline network . Build fleet specific infrastructure, consider: – # vehicles in fleet – Daily fuel consumption – Do vehicles return to base every day – How much time is available for refueling? – Need for Fast Fill or Time Fill?

Type Pressure Time to Fill Cost

LNG Low Similar to diesel $$$

CNG – Fast Fill Higher Similar to diesel $$

CNG – Time (Slow) Fill Lower Overnight (>4hr) $ (most School Bus fleets use Time Fill) For these reasons, natural gas adoption rate will continue to increase.

. Continued low NG fuel costs . Increased fueling infrastructure . More NG engines & vehicles available

Market Segment NG Market Adoption Rate

2016 2018 Projection

Transit Bus 25% 25-30% Refuse Truck 49% 50-60% HD Truck < 1% 4-10% Cummins Westport

Heavy Duty Engines Designed Specifically for Alternative Fuels

•Based on Reliable Cummins Engine Platforms •Common parts and design provide heavy duty performance •Engineered and Optimized Specifically for Alternative Fuel •Continued improvement in reliability and cost of ownership •Service Support through the Global Cummins Distributor network Cummins Westport Natural Gas Engines 65,000 engines delivered worldwide

6.7 Litre 8.9 Litre 11.9 Litre Spark Ignited Spark Ignited Spark Ignited SEGR SEGR SEGR Three Way Catalyst Three Way Catalyst Three Way Catalyst 33,000 lb. GVW 66,000 lb. GVW Up to 80,000 lb. GVW

School Bus/MD Truck/Shuttle Refuse/Transit/Regional Regional Haul Sweeper/Yard spotter P&D Truck/Mixers Truck/Tractor/Refuse Cummins Westport Engine Architecture

O2 T O2 Sensor Three Way Sensor Spark Plug Catalyst

EGR Cooler Cooler Charge Air

Fuel Spark Ignited Throttle

. Cummins Westport engines feature spark ignition with Stoichiometric / EGR . This combustion technology was introduced in 2007 with the ISL G, the first heavy duty engine to meet the EPA 2010 standards (0.2 g/bhp-hr NOx, 0.1 g/bhp-hr PM) . SEGR Technology capability provides pathway to Near Zero NOx and GHG emissions. . Cummins Westport engines are factory built, dedicated natural gas engines that are based on Cummins platforms with over 80% parts commonality Natural Gas Engine . Key Markets – School Bus – MD Truck (Class 6-8), Shuttle Bus, Vocational . Key Product Attributes – 4 cycle, spark ignited, in-line 6 cylinder, turbocharged, CAC – Displacement – 6.7 litres (408.9 cu in) – Peak rating: 260 hp, 660 lb-ft – 2016 EPA/CARB certified – Meet 2017 EPA GHG requirements – Dedicated 100% natural gas engine – Three Way Catalyst after-treatment – Automatic Transmissions – Base warranty will be same as ISB6.7 diesel ISL G Natural Gas Engine . Introduced in 2007 . 8.9 Litre (540 cu. In.) . In line 6 cylinder . Charge Air Cooled (CAC) . Spark ignition . Peak Rating: – HP-320 hp Torque -1000 lb-ft . Certified to 2017 EPA and CARB NOx and PM standards . Certified to Euro 6, EEV . Meets 2017 EPA GHG standards – OBD in 2018 . Three Way Catalyst Aftertreatment . Up to 66,000 lb GVW The Right Applications

. Medium Duty Market – Refuse / Dump / Mixer – Transit and School Bus – Pickup and Delivery Truck – Medium Duty Specialty Vehicles (street sweeper, yard spotter, etc…)

. Heavy Duty Market – Less Than Truck Load (LTL) applications – Regional / Bulk Haul applications Natural Gas Engine . Key Product Attributes – 4 cycle, spark ignited, in-line 6 cylinder, turbocharged, CAC – Displacement – 11.9 litres (726.2 cu in) – 2016 EPA/CARB certified – Meets 2014 EPA GHG requirements – Dedicated 100% natural gas engine – Engine braking – Manual/Automatic/AMT Transmissions – Over 8,500 in service (+700 in Refuse applications)

Horsepower 320-400 HP 239-298 kW Peak Torque 1150-1450 lb-ft 1559-1966 N-m Torque at Idle 700 lb-ft 949 N-m Aftertreatment Three Way Catalyst Engine Brake Optional 240 HP @ 2100 RPM Performance Three Way Catalyst

. Reduces three harmful emissions: .Consistent performance across all duty cycles NOX, CO, HC  N2, CO2, H2O .Similar to catalyst on passenger cars . Simple, passive device . Packaged as part of muffler. Vertical or . No Regeneration horizontal mount. . No SCR . Weighs ~ 100 lbs . No maintenance

Catalyst Inlet Catalyst Outlet

NOX N2

CO CO2

HC H2O 2010 Engines Aftertreatment Comparison

SCR Catalyst Particulate Filter

2010 Diesel

Heated Urea Tank Urea ECM Dosing Control Unit

Cummins TWC

Three Way Catalyst Continued Emission Leading Performance

C Gas Plus ISL G ISX12 G ISB6.7 G

First engine 2004 EPA First HD engine HD Truck engine Mid range engine First engine Certified Certified certified 2010 EPA/ARB certified EPA/ARB certified EPA/ARB Near Zero ARB 1.8 g/bhp-hr. NOx 0.2 g/bhp-hr. NOx 0.15 g/bhp-hr. NOx 0.1 g/bhp-hr. NOx 0.02 g/bhp NOx Lean Burn Combustion SEGR Combustion SEGR Combustion SEGR Combustion SEGR Combustion

2001 2007 2013 2016 2016

Particulate Matter (PM)

All CWI engines have met the 2010 EPA/ARB Particulate Matter (PM) standard (0.01 g/bhp-hr.) with a catalyst since 2001 Why Lower NOx Emissions?

. High temperature engine combustion produces NOx

. Via complex reaction with sunlight NOx leads to NO2 . This Conversion leads to ground level ozone formation . Criteria pollutants – Ozone (NOx + VOCs = Smog) – Particulate matter (PM) (soot) – Carbon Monoxide – Sulfur Dioxide (acid rain) . Toxic Air Contaminants (carcinogens and mutagens in the air) . Greenhouse Gases = climate change California (ARB) Has Plans to Lower NOx . CARB/EPA current standards for engine manufacturers have achieved 96.7% NOx reduction since 1990! . Not enough to meet air quality targets . Moving forward ARB has established three optional low NOx emissions standards – 0.02 g/bhp-hr is called “Near Zero” NOx emissions, – This is a 90% reduction in NOx from current EPA standards! – Funding Available!!!

Current EPA 0.2 g/bhp-hr NOx standard 0.1 g/bhp-hr

0.05 g/bhp-hr ARB optional low NOx standards 0.02 g/bhp-hr “Near Zero” Current control programs drive NMHC NOx CO PM all HD vehicles to 2010 0.2 NOx 2016 FTP EURO FTP EURO FTP EURO FTP EURO standard by 2023… rapid STD 0.14 0.14 0.02 0.02 15.5 15.5 0.01 0.01 progress but still not enough CERT 0.01 0.000 0.01 0.004 1.5 0.3 0.001 0.000 to hit Clean Air targets

. Accelerated NZ NGV NOx is 90% below STD deployment could . PM is 90% below STD reduce NOx 90% below current controls (around . CO2 is 16% below STD 60 extra tons per day) . RNG compatibility enables GHG emission reduction to near zero levels as well (landfills, dairies, waste water streams, etc.) South NOx (tonsCoast per day) . ISL G NZ is ready now… how

NZ NGV Deployment clean do you want to be and how fast? EPA and California ARB Certifications

Current ISL G certification NMHC NOx CO PM . FTP EURO FTP EURO FTP EURO FTP EURO PM is 80% below the EPA standard STD 0.14 0.14 0.20 0.20 15.5 15.5 0.01 0.01 . NOx is 35% below the standard CERT 0.06 0.06 0.13 0.01 9.8 8.00 0.002 0.001

ISL G Near Zero certification NMHC NOx CO PM . FTP EURO FTP EURO FTP EURO FTP EURO PM is 90% below the EPA standard STD 0.14 0.14 0.02 0.02 15.5 15.5 0.01 0.01 . NOx is 90% below the NZ standard! CERT 0.01 0.000 0.01 0.004 1.5 0.3 0.001 0.000 . CO2 is 16% below NZ Standard! Greenhouse Gas Reduction

Greenhouse Gas Reduction Emissions Criteria Engine related Methane ↓ 70% reduction (CH4) (crankcase and tailpipe) Greenhouse Gases ↓ 9% reduction (CO2 equivalent) (technology pathway for further reduction in 2019/2020)

Potential further GHG reductions to near zero levels when used with renewable natural gas (RNG) Emissions Reduction Impact - NOx

=

1985 1990 1991 2000 2010 2016

NOx (g/hp-hr) 10.8 6 5 4 0.2 0.010.02

PM (g/hp-hr) 0.59 0.59 0.25 0.05 0.01 0.01 54 1080540 Near Zero - Not just California

. Even with 2010 emissions standards fully adopted, further reductions will be needed to meet National Air Quality ground level ozone standards . Many “non-attainment zones” across USA . NZ technology can help and is ready now What is NZ technology?

O2 T O2 Sensor Three Way Sensor Dedicated natural gas engine Spark requires methane at 60-150 psi… Plug Catalyst agnostic to source

EGR Cooler Passive Aftertreatment Outlet

TWC N2

CO2

Inlet H2O Charge Air Cooler Fuel NO Spark Ignited X Throttle CO HC . Spark-ignited . Stoichiometric combustion with CEGR (SEGR) . Maintenance Free Three Way Catalyst (TWC) aftertreatment . This technology was first introduced in 2007 with our ISL G engine… first HD engine to meet EPA 2010 standard . Base ISL G engine design is the same – Engine will be factory built at Cummins Rocky Mount Engine Plant – Ratings, warranty and operational / maintenance procedures will be the same – No change in technician service certification requirements . Closed Crankcase Ventilation (CCV) will be added to engine – CCV system reduces engine related methane emissions by 70% – CCV filter change required at 2,000 hours . Three Way Catalyst will change to meet next level emissions – Remains maintenance free – Larger size catalyst with addition sensor added – New substrate composition for durability and emission performance Move to Zero … new for 2018

 New branding  Certified lowest NOx  OBD Introducing CWI 2018 North American Products . New Product Names

. EPA/ARB Ultra Low emissions certification . Lowest Emission MR and HD engines in North America

. On-Board Diagnostics (OBD) applied for optimal emissions system performance 2018 Changes Emission Certification EPA/CARB Near Zero (NZ) EPA/CARB Near Zero (NZ) EPA/CARB Optional Low NOx 0.02 g NOx 0.02 g NOx 0.1 g NOx NOx Reduction to 2017 EPA 90% 90% 50% OBD YES YES YES

CCV YES YES YES

TWC • Same size as ‘17 ISL G NZ • Increase in size (TBA) • Same size as ‘17 ISB6.7 G • One piece design • One piece design • One piece design • Mid bed O2/Temp Sensor • Mid bed O2/Temp Sensor • Mid bed O2/Temp Sensor • OEM Harness • OEM Harness • OEM Harness

Product Changes • Steel Pistons • New fuel system improves • Additional crankcase pressure • New Liners performance and reduces sensor • Improved Ring Pack parts content • New CM2380 ECM • New Valve Seat Material • On-engine electric CCV • 500 kbaud datalink • New Oil Cooler filter with 2 CCP sensors • New wiring harness • Improved Piston Cooling • CM2380 ECM • New Ignition Control Module • Additional crankcase • 500 kbaud datalink pressure sensor • New wiring harness • New CM2380 ECM • New 2380 ICM • 500 kbaud datalink • New wiring harness • New Ignition Control Module OEM Availability

OEM ISL G ISX12 G OEM ISL G ISB6.7 G Freightliner Yes Yes El Dorado Yes Pending

International Yes - Gillig Yes

Kenworth Yes Yes New Flyer Yes

Mack - Yes Bus Transit Nova Yes Peterbilt Yes Yes Blue Bird Yes Volvo Yes Yes

Conventional Truck IC Bus - Western Star - - Autocar Yes Yes Thomas Yes Yes Built Crane Carrier Yes - School Bus

Truck Mack Yes - Refuse Refuse Peterbilt Yes Yes ISL G NZ Availability Coach MCI Yes Pending OEM orders More information…www.cumminswestport.com

. Natural Gas Academy: great source of information about NG, technology, vehicles . Series of instructional videos, including engine walk-arounds and service & driver training videos . Engine information – specs, features, maintenance intervals . Product Brochures & Bulletins available for download Natural Gas Playbook cwiplaybook.com

• An online Natural Gas Playbook with tips and tools to connect customers with Cummins teams to support the successful adoption of natural gas into truck, refuse, school bus, and transit applications.

• Features a Well to Wheel GHG emissions calculator, as well as an economic, operational calculator.

• Includes a page for each of the 5 Playbook steps (Assess, Specify, Prepare, Implement, Operate and Maintain) with information and links to where users can find other information related to each step of the Playbook. cwiplaybook.com

Natural Gas Playbook Natural Gas Playbook Emissions Calculator Payback Calculator

The CWI Well to Wheel (WTW) Greenhouse Gas The Payback Calculator is designed to give a quick Calculator is based on three published North American view of operating natural gas vehicles, and Lifecycle Greenhouse Gas Calculators: guidance on service intervals and fuel systems.

• GREET_1 2016 – United States excluding California Quickly see the potential savings available with • CA GREET2.0 – California natural gas, as well as basic service distance • GHGenius 4.03a – Canada intervals, and calculation of the natural gas fuel system capacity required for a day’s work. It’s designed to provide a representative WTW GHG analysis of natural gas engines in different applications based on user application, fuel use, and CNG/LNG/RNG fuel choices input to each of the three models Questions?

. For more information: Bill Boyce East Regional Manager (330) 720-9785 or [email protected] . Or visit www.cumminswestport.com