“A High Mileage Extended Duration Fleet Trial of Orbital's Direct Fuel

Hamburg Germany, 8-10th June 1999

“A High Mileage Extended Duration Fleet Trial of Orbital’s Direct Fuel Injected Automotive 2-Stroke Engine”

David Shawcross 8th June 1999

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Thank you for this opportunity to present to you today.

My name is David Shawcross and I am Commercial Engineering Manager with the Orbital Engine Corporation based in Perth, Western Australia.

It is my objective to present to you today, the preliminary results of a high mileage extended fleet trial that was based in Australia over the last 3 years and comprised 100 vehicles fitted with an Orbital air assisted direct fuel injected 2-stroke engine.

I will attempt to show an automotive 2-stroke engine can be made durable and consumer acceptable and is a commercially viable opportunity that yet remains unexploited.

1 INHERENT ADVANTAGES of 2-STROKE ENGINES Compared to a conventional 4-Stroke, a 2-Stroke engine can have:

• Up to 40% Reduced Packaging Volume

• Up to 40% Fewer Parts

• Up to 30% Lighter Weight

• Up to 30% Greater Power Density

• Up to 30% Lower Manufacturing Cost

• Reduced maintenance requirements

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I think most people here would be aware of the inherent advantages of two- stroke combustion engines.

If I had to condense these it would be: •Size, •Weight, •Cost.

2 THE 2-STROKE ENGINE PARTS BENEFIT

FOUR-STROKE SUB OCP TWO-STROKE FOUR-CYLINDER ASSEMBLY THREE-CYLINDER 43 BLOCK ASSEMBLY 38 4 HARNESS 7 13 IGNITION 14 22 CRANKSHAFT 34 48 PISTON AND RODS 33 7 FLYWHEEL AND RING GEAR 11 3 ENCODER 2 58 INLET /THROTTLE BODY 35 6 WATER PUMP 6 18 FRONT DRIVE 16 11 OIL PUMP AND LINE 10 8 FUEL SYSTEM 19 5 FUEL AND AIR PLUMBING 3 25 EXHAUST MANIFOLD 20 4 EGR VALVE 4 284 CYLINDER HEAD / COVER 27

APPROX. 560 COMPONENTS 560 APPROX. 0 BALANCE SHAFT / DRIVE 15 0 EXHAUST VALVE / DRIVE 25

6 ALTERNATOR 6 COMPONENTS 340 0 AIR COMPRESSOR 14

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This slide shows the substantial parts count advantage a two-stroke engine can have over a conventional multi-valve four-stroke engine.

The cylinder head is the most graphic example and yet these days cylinder heads are becoming much more sophisticated and complex with variable valve timing, cylinder valve deactivation and the like.

3 TRADITIONAL DEFICIENCIES

Conventional 2-Stroke engines have: • High fuel consumption • Excessive exhaust emissions

OCP Direct Fuel Injection Enables:

• Exhaust gas scavenging by fresh air • Injection of fuel after port closure

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Most people would be well aware of the traditional deficiencies of two-stroke engines, namely: high fuel consumption and excessive exhaust emissions.

Orbital has overcome these problems by the application of the Orbital Combustion Process.

4 THE ORBITAL COMBUSTION PROCESS

• Air-Assist Low-Pressure Direct Injection System • Engine Management & Control System • Lean-Burn Stratified-Charge Combustion System

COMBUSTION SYSTEM INJECTION CONTROL SYSTEM SYSTEM

OCP: More than just a Fuel System CONFIDENTIAL AND COPYRIGHT ORBITAL ENGINE COMPANY 1999 8144 8JUNE99P5

The Orbital Combustion Process, simply abbreviated “OCP”, contains three essential elements: •An air assisted low-pressure direct fuel injection system •An engine management and control system •A lean burn stratified charge combustion system

The application of OCP gives both fuel consumption and exhaust emission control benefits.

5 THE GENESIS FLEET PROGRAM

A 100-vehicle fleet trial, fitted with the OCP 1200cc 3-cylinder 2-stroke engine: • Environmentally friendly • Sporty responsiveness • Representative of production

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To demonstrate the maturity of the OCP 2-stroke engine, Orbital undertook a US$15m, 3-year engineering development and sign-off program, culminating in the release of 100-vehicles into the Australian market.

The purpose of this trial was to demonstrate: •In-field durability •Production feasibility •Market acceptance •Automotive applicability of a two-stroke engine.

It was also intended to build an information-database on •Mechanical durability •Oil consumption •Fuel consumption •Emission durability •Any unknown in-field issues associated with a 2-stroke in an automotive application.

6 GENESIS VEHICLE DISTRIBUTION

Darwin Brisbane Hire Car Fleet . High mileage, Medium/low mileage city open road, high speed country & country driving. driving. Hot humid summer Single driver conditions. Warm dry winter Hot humid summer Warm dry winter. Perth Medium/low mileage city/country driving. Sydney/Melbourne Multi/single driver vehicles. Medium/low mileage Hot dry summer Multi/single driver vehicles. Mild wet winter. Hot summer Adelaide Cold winter. Hot dry summer, Cool wet winter. Canberra/ACT Hobart Medium mileage city & Mild summer, freeway driving. International Allocations: Cool wet winter. China, hot humid summer, cold dry winter. Multi driver vehicles USA, hot humid summer, cold dry winter. Hot dry summer, Asia, hot humid summer, wet winter. Cold dry winter. Europe, warm damp summer, cold wet winter.

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The vehicles were distributed across Australia, based around the capital cities for ease of maintenance and control: •approximately 25% were sold to private buyers/general public •approximately 25% were sold to Government fleets •approximately 20-40% were sold to a commercial car rental fleet and •the balance were mixed between Orbital Australia and overseas customers

7 GENESIS VEHICLE SPECIFICATION

IMPROVEMENT ECOSPORT OVER BASELINE

Displacement 1200cc -8%

Power 56kW 19%

Torque 125Nm 25%

Acceleration 0-100km/h 12.3 sec 21% 50-100km/h 15.5 sec 25%

Urban Fuel Economy 6.1 l/100km 15% (AS2877)

Emissions System ADR Compliant (USA Tier 1/Euro II hardware)

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The vehicle platform used was the readily available Ford Festiva as it is known in Australia, the Kia Avella in Europe or the Ford Aspire in the USA.

This comparison shows the difference the OCP equipped 1.2L 3-cylinder 2- stroke engine made to the vehilce performance.

The standard Festiva at that time had a 3-valve SOHC 1.3L 4-cylinder 4- stroke engine.

8 175,000 GENESIS ACCUMULATED DISTANCE 150,000 Over 5.15 million kilometres as of June ‘99

125,000 • 50% of fleet over 50,000 km • 20% of fleet over 80,000 km 100,000

75,000 Distance (kilometres) 50,000

25,000

0 Vehicle CONFIDENTIAL AND COPYRIGHT ORBITAL ENGINE COMPANY 1999 8144 8JUNE99P9

This plot shows the spread of accumulated distance the vehicles in the fleet were experienced and reflects the diverse range of drivers and operating conditions.

Some vehicles are well over 100,000 km and almost half the fleet has exceeded 50,000 km. Some vehicles are apparently in pristine condition!

9 GENESIS FUEL and OIL CONSUMPTION

10 AVERAGE FUEL 7.2 L / 100 km AVERAGE OIL 5.3 L / 10,000 km 9

Consumption 4

0 Vehicle

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This plot shows the spread of fuel consumption. Average in-field fuel consumption is approximately 7.2 L/100 km.

As a large percentage of the fleet was based with a car rental fleet in Darwin where there a open roads and no speed limits, the fuel economy is generally biased upwards.

Similarly with the spread of oil consumption. Some vehicles are driven quite hard resulting in additional lubrication demands.

Average oil consumption is comparable to the typical service change interval of the average 4-stroke vehicle with the exception that the service operation is significantly simplified. There is no filter to replace and no used oil to dispose of. Only a simple oil bottle top is required, just like fuel.

10 GENESIS IN-FIELD ENGINE EMISSIONS • 10 vehicles tested at 20,000 km intervals • Statistical database relatively small / low km’ 4

2 HC (g/mile, FTP)

NOx (g/mile, FTP) 1 Engine Out Emissions(g/mile, FTP Cycle) 0 0 20000 40000 60000 80000 Distance (kilometres)

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At the start of the fleet, 10 vehicles were identified for periodic emissions monitoring. Unfortunately the majority of these vehicles tended to accumulate distance very slowly and we were left with a poor statistical base.

As we are currently in the process of reducing the vehicle fleet are we are taking the opportunity to test those vehicles that have achieved nominally 80,000 km or more and we expect to have these results by the end of this year.

11 GENESIS ENGINE VALIDATION

• 600 hour transient durability tests • Core engine and ancillaries durability • 180 hour high speed tests • Engine and ancillaries at max speed • Urban cycle tests • Simulates cold city driving • Jogging cycle tests • Dynamic component durability • Thermal shock tests • Durability under extreme weather conditions

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A significant part of the design validation program was a focus on mechanical durability.

A suite of standard industry tests were performed and successfully completed.

12 ENGINE BLOCK and CRANKSHAFT TRANSIENT DURABILITY 600 hrs 1000 hrs CYLINDER BORE WEAR AT TDC (um) A FRONT 5 7 B INLET 12 12 B A C REAR 12 12 C D D EXHAUST 7 7 1000 hrs 1600 hrs E CRANKSHAFT JOURNAL WEAR (um) F E FRONT MAIN 8 1 G F CRANK PIN #1 5 0 H G MAIN #1 2.6 0 H CRANK PIN #2 2.3 3 J J MAIN #2 1.1 4 K K CRANK PIN #3 5.4 3 L L REAR MAIN 0 2.2

These results show the wear observed on the key components of engine block and crankshaft.

In contrast with 4-stroke manufacturing processes, the block used a nickel silicone carbide coating and the crankshaft had nitride hardened journals.

The Genesis program took engines to a 600 hour test limit, however, we have additionally taken engines beyond this duration and these results have also been provided for further information.

13 PISTON, PISTON RING and CONROD TRANSIENT DURABILITY

600 hrs 1000 hrs PISTON RING WEAR 0.04 C (weight loss in grams) Max B um um PISTON SKIRT A 35 48 A DEFORMATION PISTON SKIRT B 21 27 D DEFORMATION PISTON SKIRT B 10 15 WEAR PISTON PIN BORE C 32 37 CLEARANCE PIN BORE RADIAL 27 - 29 25 - 29 D CLEARANCE BIG END RADIAL E E 20 - 22 20 - 27 CLEARANCE

As with the previous slide the critical piston, ring and conrod components have demonstrated excellent durability.

These results presently show engine dynamometer running. As the fleet is reduced in-field measurements to be undertake. The engines that have been inspected to date reflect the dynamometer results previously given.

14 GENESIS FLEET IN-FIELD DURABILITY • Issues: • Resolutions: • Balance shaft timing belt • New FEAD layout • Fuel regulator diaphragm • Use Off-the-shelf regulator • Throttle potentiometer drift • Implement adaptive software • Exhaust valve actuator shaft • Shaft re-design • Electrical harness earthing • Earthing re-design • Occasional engine cut-out/stall • Software correction • EMS diagnostic sensitivity • Improved software filtering • Compressor head gasket • Clamp force re-design • Oil replacement • Driver education • Connecting rod • Improve process control • Exhaust valve carboning • Modify cylinder flow rate

In-field we have observed a range of different durability issues but otherwise the durability performance was been very pleasing.

Early in the trial, a number of issues arose which were quickly assessed and contained.

It is important to stress that Orbital is neither an engine nor vehicle manufacturer and in launching such a fleet basically jumped on a rapid learning curve which mainstream manufacturers have long since mastered.

Long term resolutions for these issues have been designed and in the majority of cases re-verified with further dynamometer and/or in-field testing.

15 GENESIS CUSTOMER RESPONSE

• General response: Very positive • Common themes: • Impressive torque OVERALL RESULTS AVG • Impressive power POWER & ACCELERATION 7.6

• Engine is very flexible NOISE CRUISE 7.3 • Sporty feel and sound NOISE ACCELERATION 6.7

• “Where can I buy one ?” NOISE IDLE 5.8 OVERALL • Industry Awards SATISFACTION 7.7 •SAE Australasia • Far Eastern Economic Review

The overall customer response has been very positive.

People are genuinely impress with the vehicle’s sporty responsiveness and performance. Some drivers are not necessarily aware that they are driving a 2-stroke engine.

A quantified engineering review of the vehicle has shown the weakest area to be NVH at idle attributed to vehicle response to the 3-cylinder characteristic.

Very little change was made to the standard vehicle chassis to accommodate the new engine and this consequently lead to compromises affecting the engine performance and feel. A new vehicle installation should not impose the same level of constraints Genesis was subjected to.

16 MARKET OPPORTUNITIES FOR AN AUTOMOTIVE 2-STROKE ENGINE

An OCP 2-stroke engine should be used where it makes the most sense and gives maximum value:

• City Car Applications Markets • Hybrid Electric Vehicle Applications • Emerging Automotive Markets

In summary, the Genesis Fleet Trial has shown that a 2-stroke engine can be acceptable and viable in automotive applications. Consumers enjoy the responsiveness of the technology and manufactures may take advantage of the inherent and added advantages an air assisted direct fuel injected 2-stroke engine offers - size, weight and cost.

A 2-stroke engine should be used where it makes the most sense and there are a range of applications possible.

If you would like any further information or have any questions please do not hesitate to ask or see me after this session. We do intend to publish a comprehensive technical paper early next year once all the vehicle fleet data has been obtained and processed.

In the short term you can see an Australian (RHD) ECOsport vehicle in the exhibition hall and I have a LHD vehicle briefly available outside for limited demonstrations during Engine Expo.

Thank you very much.

17 Hamburg Germany, 8-10th June 1999

“A High Mileage Extended Duration Fleet Trial of Orbital’s Direct Fuel Injected Automotive 2-Stroke Engine”

David Shawcross 8th June 1999