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The Role of the Internal in our Future

Anthony Greszler Volvo Organisation

AB Volvo Business Areas

BA Asia Mack Renault Volvo Construction Volvo Volvo Financial Incl. Trucks Trucks Equipment Penta Aero Services UD Trucks

Business Units

Volvo 3P

Volvo Powertrain

Volvo Parts

Volvo Logistics

Volvo Information & Others HD Market has Huge Variety Size, Shape, Duty Cycle

Projection – Provided by US DOE in 2009 Projected Use for Heavy Trucks through 2050. 6

5 Class 3-6 4 Local Class 7-8 Oil 3 Intermediate-Haul Class 7-8 Oil Inte 2 Oil

Consumption,mbpd 80% Class 7-8 1 70% Long-Haul Class 7-8 Hau

0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Year FOCUS Source: US DOE - GPRA 06 FCVT Heavy Vehicle Benefits On Class 8 Long-Haul Factors Influencing Power Choices for Motor

• Power Demand Requirements • Fuel Availability Factors Driving Potential • Durability • Reliability ICE Replacement • Operating Cost • Acquisition Cost • Finite supply of • Emissions -Cost Impact Range with on-board fuel • • GHG emissions Size • Energy security Weight • • Better alternatives? • Response lag time • • Cooling Requirements • Refueling time

Driving Factors all Relate to Fuel Issues HistoricalHistorical Look -Best & PointProjected BSFC US HD On- HighwayHD US Diesels Diesel Efficiency

0.39 g - B G CO 2

US Emission Levels - /HP 0.37 T H hr

E G 0.35 38% 506

1.2 g/hp-hr NOx .2g/hp-hr Nox 2.5 g/hp-hr NOx with SCR 0.33 200 gr/kw-hr 40% 477 Consent Decree 6g/hp-hr NOx 2014 RMC Cycle GHG target =475 2017 RMC Cycle GHG target =460 0.31 188 43% 448 BSFC (lb/BHPH) BSFC

0.29 176 46% 419 Best BSFC low speed marine diesel Diesel 51% T.E. * 13 g/hp-hr Nox * Unlimited cooling capacity *2 stroke Electrical * 95 RPM * Full Load * Unlimited space and weight adds 6% 164 Waste Heat Recover -max electrical output 12% of engine 50% 390 0.27 *Uses exhaust (diverts 10% of exhaust to power 57% total Thermal Eff turbine) and from exhaust heat

0.25 1975 1980 1985 1990 1995 1999 2001 2004 2007 2010 2014 2017 2020 Year Alternatives to ICE’s

Rankine Don’t really address the problem • unless they provide substantial • Sterling improved efficiency

• BEV • • Other?

Gas Turbine?

• Efficiency challenged to get above 40% in mobile applications. • Efficiency suffers at light load compared to diesel • Slow response • Expensive – even compared to full diesel emissions package • Might be an option in hybrid combination • But doesn’t offer a real advantage over diesel ICE Rankine Engine?

• Has been around a long time in various forms • Recent incarnations may be feasible for on-road motor vehicles • Still doesn’t approach diesel efficiency targets • Greater fuel flexibility may offer some opportunity • Still no indication that it will become a significant player in motor Sterling Engine?

• Never a strong consideration for motor vehicles • Bulky • Slow responding • Materials limit operating temperature and efficiency • Practical efficiency does not approach diesel PEM or SOFC Fuel Cell? PEM is 50-60% EFFICIENT – 45% of fuel energy must be extracted by coolant at temperatures around 70-80C. – For heavy-duty, this would mean a massive cooling system with negative aerodynamic consequences. – With H2 from fossil sources GHG outcome is significantly worse than diesel hybrid Does it make sense to synthesize H2 from renewable sources? – Some analyses indicate only 22% of electrical energy makes it to the On-board H2 storage is not capable of long-haul range requirements. Typical mobile SOFC has only 30-35% electrical efficiency, but potential of 50-55% plus waste heat secondary cycle – Long warm-up time – Could be a possible option, but a long way from feasible. – Still requires energy dense on-board fuel Battery requirements for electric

10 kg for 10 km Possible!

40 kg for 10 km Possible!

200 kg for 10 km Possible!

20 tons for 1000 km Not possible!

45 000 tonsBattery of batteries. operation alone not The take off weight is 413 tons ! Notpossible possible! for Long Haul/Coach … One possible Full Electric Option…

• A Plug In vehicle able to charge from a “Slide In” track in the road

• Can REALISTICLY reduce the Energy Use by 50 % (Long haul) up to 75 % Converter () to Battery Voltage

• Almost eliminates the use of fossil BATTERY fuel

• Does not require any Rocket Science and can have realistic safety

• But requires development of safe and reliable method to electrify major roadways.

Where does that leave us?

• Diesel cycle will be prime movers for freight for a long time – This means compression ignition, not necessarily • Vehicle electrification (where feasible) and efficiency improvements should be applied as broadly and quickly as possible • Fossil and should be reserved for long- haul transport and industrial feedstocks that don’t have alternatives. So,Historical how Look - Bestdo Point we BSFC achieve US HD On-Highway these Diesels efficiencies?

0.39 g - B G CO 2

US Emission Levels - /HP 0.37 T H hr

E G 0.35 38% 506

1.2 g/hp-hr NOx .2g/hp-hr Nox 2.5 g/hp-hr NOx with SCR 0.33 200 gr/kw-hr 40% 477 Consent Decree 6g/hp-hr NOx 2014 RMC Cycle GHG target =475 2017 RMC Cycle GHG target =460 0.31 188 43% 448 BSFC (lb/BHPH) BSFC

0.29 176 46% 419 Best BSFC low speed marine diesel Diesel 51% T.E. * 13 g/hp-hr Nox * Unlimited cooling capacity *2 stroke Waste Heat Electrical * 95 RPM * Full Load * Unlimited space and weight adds 6% 164 Waste Heat Recover -max electrical output 12% of engine 50% 390 0.27 *Uses exhaust turbine (diverts 10% of exhaust to power 57% total Thermal Eff turbine) and rankine cycle from exhaust heat

0.25 1975 1980 1985 1990 1995 1999 2001 2004 2007 2010 2014 2017 2020 Year Back to Basics…

• Air-Standard Otto-Cycle 0.9 0.8 Efficiency goes up with rc 0.7 Efficiency goes up with 0.6 Gamma 0.5 Typical Diesel 0.4 Is it really Efficiency 0.3 gamma = 1.3 0.2 gamma = 1.4 this simple?

0.1 gamma = 1.5 Gamma (Cp/Cv) for dry air is 0 1.4 at 20 C. 0 10 20 30 Gamma decreases with increasing temperature. Gamma decreases for burned gases vs unburned gases. (EGR is negative) Efficiency vs. Compression Ratio

0.75

0.7

0.65 Theoretical Cycle Efficiency 0.6 Heat Transfer & 0.55 Combustion Loss ITE 0.5 Friction Loss Efficiency 0.45 Pumping Loss BTE 0.4

0.35

0.3 10 15 20 25 Compression Ratio Path from 43% to 50% ? • Combustion BTE Efficiency Gain(%) – Peak cylinder pressure – High efficiency SCR to decouple 2-3% NOx/efficiency trade-off • & gas handling efficiency 2-3% • Exhaust & EGR Heat Energy Recovery Turbo-compound – 2-3% – Rankine cycle – Thermo-electric • Friction, – Efficient accessories 1-2% • Managing engine speed & load within optimal efficiency range via powertrain 1-2% – Hybridization in appropriate duty cycles – Idle elimination • Alternative premixed combustion strategies 1-2% – RCCI, PCCI, LTC

2 4 6 8 Conclusions • Although electrification options are feasible to displace a majority of fossil fuel in light duty applications, this is not true for long-haul, heavy duty. • There are no significant alternatives to ICE’s for long-haul heavy transport. • Diesel cycle engines will continue dominate in this market – Even engines will likely be compression ignition for long-haul – Other (even typical SI fuels) may be used in low temperature combustion schemes • Secondary waste heat recovery cycles will see increasing use • Efficiency will be driven by fuel cost and by regulation – NOx battle has been won – Efficiency and GHG is the new front