Energy Solution CenterEnergy Solution CenterNGV Working Group

June 8, 2010

Explore Every Alternative.

Cummins Westport Inc. (CWI)Cummins Westport Inc. (CWI)A Cummins JV Company

CWI is a 50:50 joint venture company based in V BCVancouver, BC

Established in 2001Cummins Inc. - world’s largest builder of commercial di ldiesels, Westport Innovations Inc. - world leader in gaseous fuel engine technology

CWI ff k i it d lt ti f l t tiCWI offers spark ignited alternative fuel automotive engines. (CNG and LNG)Engines are manufactured by Cummins. Over 24,000 engines in service worldwideLocal parts and service support through Cummins Distributor network.

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CWI: Fully integrated within Cummins. We are Cummins’ automotive natural gas engine companyCummins automotive natural gas engine company.

Product Cummins Tech CenterEngineering Cummins VPI Process

Manufacturing Cummins Plants

Cummins AccountTeams & Distributors

Manufacturing

Sales Teams & Distributors

Warranty Cummins Warranty

Parts& Service Cummins Distributors

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It’s a Cummins Engine!

Why Natural Gas Engines for Buses & Trucks?y a u a Gas g es o uses & uc sEmissions Leadership

ISL G is the only Urban Bus and Truck engine that met 2010 EPA Emissions at launch in 2007that met 2010 EPA Emissions at launch in 2007 Low Carbon - Greenhouse Gas advantages

Energy SecurityR d li i t d

Emerging Economic BenefitsC ti li bilit i t Reduce reliance on imported

oilLower fuel costsPathway to hydrogen

Continuous reliability improvementISL G improved fuel economyGreatest benefits in high fuel use applications

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Pathway to hydrogenapplications

Why Natural Gas?

Explore Every Alternative.

Simpler Cleaner Fuel

Complex Hydro Carbon

Simplest Hydro Carbonp y

Natural Gas (methane) has highest

h d t b

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hydrogen-to-carbon ratio of any

hydrocarbon

What has Changed?gHigher vehicle prices to meet 2010 EPA requirements.

Additional cost increases related to engine technology required to meet 2010 EPA requirements.

Higher cost of Ultra Low Sulfur diesel fuel and uncertain crude oil pricing (Fuel prices of 2008!).

The economics of diesel operation are changing!

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Lower Emissions

ISL G and 2010 EmissionsIn-Use Results (equipment loaded on bus)Sensors Inc contracted to testSensors Inc. contracted to test Sacramento Transit Bus in serviceUsed EPA in use test procedure– Tests full load and speed combinations– Tested bus on city and highway routes

Sensors Inc. concluded that emissionsSensors Inc. concluded that emissions were “significantly lower than the 2010 EPA Heavy Duty emissions regulations.”

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CNG Engines Reduce Noise

Noise Comparisonp

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ISL G is 5.5 decibels quieter at peak torque and load

Communities notice the natural gas noise

advantage.

ONE Diesel engine idling

90

100el

es d

B(A

)

07 ISL07 ISL G

ISL G is 9.9 decibels quieter at

Idle/no load

is louder than TEN natural gas engines idling

together

80

Dec

ibe 07 ISL GIdle/no load

70Peak Torque / Full Load Idle / No Load

Engine Test Mode

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Up to 20% Lower Greenhouse Gas Emissions

HD NGV GHG Performance• As natural gas fuel economy

improves, CO2 emissions are reduced

-5

01995 2000 2005 2010 2015 2020 2025

• CH4 emissions, adjusted to consider GHG impact are less than 10% of total GHG emissions.

-20

-15

-10

Perc

ent C

hang

e• Well to Wheel analysis with GHGenius modeling tool predicts up to 20% WTW GHG emissions for natural gas vs. diesel

-25

Year

diesel.• Using landfill gas or

anaerobic gas as a biomethane fuel increases GHG difference to ~90%

GHGENIUS A Model for Life Cycle Assessment of Transportation FuelsGHG difference to ~90%.

• Cummins Westport approves the use of biomethane that meets fuel specifications.

13Source: Presentation to AFVI convention by Don O’Conner (S&T)2 Consultants May 2008

Natural Gas Provides Lower Fuel CostsPrice History for Crude Oil, Diesel Fuel, and Vehicular Compressed Natural Gas

$140

per

$7.00

allo

n]Cushing, OK WTI Spot Price FOB (Dollars per Barrel)

$100

$120

Pric

e FO

B [D

olla

rs

$5.00

$6.00

esel

-equ

ival

ent G

aU.S. No 2 Diesel Retail Sales by All Sellers [Dollars per Gallon]

Diesel fuel for vehicles, US DOE, Clean Cities Alternative Fuel Price Report

CNG fuel for vehicles, US DOE, Clean Cities Alternative Fuel Price Report

Diesel-CNG price gap (US DOE, Clean Cities Alternative Fuel Price Report)

$60

$80

ing,

OK

WTI

Spo

t PBa

rrel

]

$3.00

$4.00

ces

[Dol

lars

per

Di

data source: US DOE

$20

$40

il Sp

ot P

rice,

Cus

h

$1 00

$2.00

nd N

atur

al G

as P

ric

$-

$20

Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09Dai

ly C

rude

Oi

$-

$1.00

Ret

ail D

iese

l an

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Natural gas historically 25- 42% cheaper than Diesel -$20 -$1.00

Market LeaderAlternative Fueled EnginesAlternative Fueled Engines

1988 - Demonstrated lean burn combustion concepts for HD NG engine1991 - First new technology HD NG product (L10-240G)1992 - CARB emission certification at 2.0 g/bhp-hr NOx (L10-240G)1994 - Technology / product upgrades (enhanced power / electronics):

• Re-certified at 1.7 g/bhp-hr NOx (L10-260G)1995 - First full electronic, closed-loop control MD NG engine (B5.9G)p g ( )1996 - First full electronic, closed-loop control HD NG engine (L10-300G)1996 - First fully integrated natural gas fueled engine:

• Engine subsystems• Electronic controls & diagnostics• Electronic controls & diagnostics

1997 - First to be ULEV Certified (B5.9G in mid-1997)2001 – Cummins Westport Inc. - Joint Venture formed.2001 - First engine certified EPA 2004 (C Gas Plus) 1.8 g/bhp-hr.2002 – B Gas Plus introduced2004 – L Gas Plus 8.9 litre engine introduced at 1.5 g/bhp-hr2005 – B Gas International introduced – production at CIL and DEC2007 – First 2010 compliant HD engine – ISL G – 0.2 g/bhp-hr.

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p g g p• Stoichiometric EGR combustion• Three Way Catalyst

Cummins Westport

Heavy Duty Engines Designed Specifically for Alternative Fuels

•Based on Reliable Cummins Engine Platforms

for Alternative Fuels

g

•Common parts and design provide heavy duty performance

•Engineered and Optimized Specifically for Alternative Fuel g p p y

•Continued improvement in reliability and cost of ownership

•Service Support through the Global Cummins Distributor networkpp g

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Four Generations of CWI Natural Gas EnginesFour Generations of CWI Natural Gas Engines1998 2001 2004 2007

C8.3G Mechanical C Gas Plus L Gas Plus ISL G

•Introduced in 1998•Major improvement over 1st

generation CNG L10 Series•Over 4000 still in service•Improved Reliability

•Introduced in 2001

•State of the art spark ignition/control system

•First engine 2004 EPA Certified

•Introduced in 2004

•Improved Ignition control system

•VG Turbo

•Introduced in June 2007

•Stoichiometric EGR combustion, three way catalyst

•First HD engine certified 2010 NOx and PM levels

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Certified

•Six fold reliability Increase•Based on 8.9 L ISL Block

•2007 NOx and 2010 PM levels

NOx and PM levels

Customer Experience-Diesel vs. NG

Just Like Cell Phones, Natural Gas Engines have Continued to Improve

BetterBetterBetterBetterEmissions

’07 ISL GC PlusC 8.3L 10 GBetterBetterBetterBetterEmissions

’07 ISL GC PlusC 8.3L 10 G

Better*SimilarWorseWorseFuel Cost/Mile

SimilarSimilarWorseWorseReliability

Better*SimilarWorseWorseFuel Cost/Mile

SimilarSimilarWorseWorseReliability

Better*WorseWorseWorseLCC

SimilarSimilarWorseWorseDurability

Better

Better*WorseWorseWorseLCC

SimilarSimilarWorseWorseDurability

Better

BetterWorseWorseWorse

2007200119961989Timeline

BetterWorseWorseWorse

2007200119961989Timeline

*M t H F l P i Diff ti l t b l

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*Must Have Fuel Price Differential to be lower

Cumulative Engine SalesOver 24 000 enginesOver 24,000 engines.

25000

20000

25000

CumulativeAlt FuelSales

10000

15000Sales

0

5000

01990 1992 1994 1996 1998 2000 2002 2004 2006 2008

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2010 Natural Gas Truck and Bus Engineg•8.9 litre Stoichiometric Cooled EGR engine

•Ratings from 250 to 320 hp•Low emissionsLow emissions

•0.20 g/bhp-hr NOx•0.01 g/bhp-hr PM

•Three Way Catalyst Aftertreatment•Maintenance Free

•Diesel like Performance, Reliability, Durability•Same rated speed/similar torque curve

•Over 30% more torque at idle vs. previous engine

•Improved fuel economy-target 5% vs. previous

•Over 80% common Cummins diesel partsOver 80% common Cummins diesel parts

•In production since mid 2007

•Over 6000 in service

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•CNG, LNG, or Biomethane

ISL G Ratings

ENGINE MODEL ADVERTISED PEAK TORQUE GOVERNED

g

ENGINE MODEL HP(KW) @ RPM LB-FT @ RPM SPEED

ISL G 320 320 (239) @ 2000 1000 (1356) @ 1300 2200 RPM

ISL G 300 300 (224) @ 2100 860 (1166) @ 1300 2200 RPM

ISL G 280 280 (209) @ 2000 900 (1220) @ 1300 2200 RPM

ISL G 260 260 (194) @ 2200 660 (895) @ 1300 2200 RPM

ISL G 250 250 (186) @ 2200 730 (990) @ 1300 2200 RPM

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Three Key Emission Technologies

Cooled Exhaust Gas Recirculation (CEGR)

y g2010 EPA/Euro EEV Natural Gas Engines

Cooled Exhaust Gas Recirculation (CEGR)

Stoichiometric Combustion

Cummins

Three Way Catalyst (TWC) Cummins

Cummins Westport

Emissions Solutions

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San Diego MTS BRT

ISL G – Next Generation Natural Gas Engine

– Stoichiometric CEGR Engine

ISL G 280 vs. C Gas Plus 280Torque (lb-ft)

Engine

Improved performance 850

900

950

– Improved performance

Over 34% higher clutch 700

750

800

850

orqu

e (lb

-ft)

– Over 34% higher clutch engagement torque

550

600

650

700

To

– Diesel-like reliability & durability

1000 1200 1400 1600 1800 2000 2200 2400Engine Speed (rpm)

ISL G 280 C Gas Plus 280 ISL05 280

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2010 ISL G Natural Gas2010 ISL G Natural Gas

Cummins TWC

Stoichiometric CombustionCooled EGR

Three Way Catalyst Aftertreatment

•Same rated speed as ISL diesel•30% more torque at idle•5% Better Fuel Economy

Aftertreatment•Passive device•Packaged as a muffler•Maintenance Free

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Three Way Catalysty yReduces three harmful emissions: NOX, CO, HC

End products are: N CO H OEnd products are: N2, CO2, H2O

Simple, passive, maintenance-free

Catalyst Inlet Catalyst OutletCatalyst Inlet

NOX

CO

Catalyst Outlet

N2

CO2

HC H2O

ISL G TWC - similar package size to current mufflers

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ISLG Integrated Fuel Housing

EGR

Fuel Inlet Press Sensor 4921495EG

EGR

4921495

FSOV 3931710

Fuel Reg 3970615

Fuel Flow Valve 3933841

Fuel Outlet Press Sensor 4921479

Throttle Act. 4934537

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3933841Gas Mass Flow Sensor 3929159

NG Fuel flow path

ISL G and ISL DieselWhat is the Same?What is the Same?

Major Engine Components 320, 300, and 260 HP truck – Block, crankshaft, main

bearings, piston rods, EGR– Over 80 % parts

ratingsCummins Base Warranty– 2 years 250 000 milesp

commonality500 hour Maintenance Interval

2 years, 250,000 milesExtended Warranty Option– Available

Parts and Service– Available from local

Cummins Distributor

Compatible with Cummins Diagnostic tools– Insite and Quickserve onlineCummins Distributor

Manufactured in Cummins Engine Plant, North Carolina

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ISL G and ISL DieselWhat is Different?What is Different?

Cylinder head Crankcase Oil– 4 valve (diesel) vs. 2 valve

Ignition– Compression (diesel) vs spark

– Requires different crankcase oil specification – CES 20074

Fuel CostCompression (diesel) vs. spark ignition

Fuel System– Common rail injection (diesel)

Fuel Cost– Natural gas total fuel costs

(including station) can be less than diesel.Common rail injection (diesel)

vs. intake manifoldAftertreatment– Particulate Filter + Selective

t a d ese

Fuel Economy– Diesel engines typically obtain

better fuel economyParticulate Filter Selective Catalytic reduction (diesel) vs. maintenance free 3 way catalyst

Noise

better fuel economy

Initial Costs– Natural gas trucks typically cost

th di l t k

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– Natural gas engines are up to 10db quieter at idle

more than diesel trucks

Training: Key to Success for New NG Users

There are operation & maintenance differences b t NG d di l hi l Nbetween a NG and diesel vehicle. New users need an orientation for proper O&M:

F ll C i i t id li– Follow Cummins maintenance guidelines– Use only approved Cummins parts

Use proper fuels and lubes– Use proper fuels and lubes

Training can be found in the typical sources:– Virtual College ISL G training

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– Quick Serve On Line

ISL G / Natural Gas ApplicationsREFUSESPECIALTY BUSTRUCK

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Truck OEMsOEM Freightliner Mack Peterbilt Kenworth

Announced Jan, 2009 June, 2009 August, 2009 September 2009

Model M2 - 112 TerraPro LETerra Pro CO

384365

T800SHW900ST470

F l LNG/CNG LNG/CNG LNG/CNG LNG/CNGFuel LNG/CNG LNG/CNG LNG/CNG LNG/CNG

Engine ISLG 320ISL G 300

ISLG 320 ISL G 320 ISLG 320

Application 6x4 Tractor CNG/LNG4x2 Tractor CNG4x2 Truck CNG6x2 Truck CNG

Vocational

Refuse TractorVocational

MixerTractor

Vocational

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Vocational

OEM Availability – North AmericaOEM Model Segment ISL G Comments

Freightliner Truck Business Class M2 112 (Class 7/8) MD/HD Truck X6X4 Tractor (LNG, CNG),

CNG - 4X2 Tractor, 6X2, 4X2 Truck, Vocational

Kenworth T800SH MD/HD Truck X T800SH - Tractor

Kenworth W900s MD/HD Truck X Mixer

Kenworth T440 / T470 MD/HD Truck XNew for 2010 Local & regional

haul, vocational.

Peterbilt Model 384 MD/HD Truck X Model 384 - Tractor

Peterbilt Model 365 MD/HD Truck X

American LaFrance Condor Refuse XAutoCar WX / WXLL Refuse X/AutoCar Xspotter Yard Spotter X New for 2010Crane Carrier LCF Refuse XPeterbilt 320 Refuse XMack TerraPro Low Entry Refuse X TerraPro Cab Over TBANABI 35 LFW/40 LFW/60 BRT Urban Bus XNew Flyer 30 LF/35 LF/40 LF Urban Bus Xy / /Orion Orion V HF/Orion VII LF Urban Bus XFoton City - L40 CNG Urban Bus XEl Dorado National Axess/E-Z Rider II/Transmark RE/XHF Shuttle XBlue Bird All American School Bus XThomas Bus Saf-T Liner School Bus XCapacity TJ9000 , TJ5000 Yard Spotter X

32Updated April 2010 - Interested Customers should contact their OEM dealers for vehicle specifications

Capac ty J9000 , J5000 a d Spotte

Re-PowerComplete Coach Works Freightliner M2 106 Business Class MD/HD Truck X ISL G Re-Power

Fontaine Modification Company Freightliner M2 106 Business Class MD/HD Truck X ISL G Re-Power

CNG Tank Configurations

65 DGE 56.5 DGE246 DLE 214 DLE

65 DGE246 DLE 46 DGE46 DGE

174 DLE

56 5 DGE

65 DGE246 DLE

56.5 DGE214 DLE

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1 US gallon = 3.785 litre

246 DLE

Similar Maintenance ScheduleISLGMaintenanceSchedule(1)

Every 12,000 km Every 24,000 km Every 36,000 km Every 48,000 km (7,500 Mi), 500 Hrs (15,000 Mi), 1000 Hrs (22,500 Mi), 1500 Hrs (30,000 Mi), 2000 Hrs or 6 Months (1)(3) or 12 Months (1)(3) or 18 Months (1)(3) or 2 Years (1)(3)

Whichever Comes First Whichever Comes First Whichever Comes First Whichever Comes First

Daily or Refueling

ISL G Maintenance Schedule

Operator's Report - Check Catalyst Housing - Check Exterior Drive Belt - Check Spark Plugs and Boots- Replace (6) Vibration Damper - CheckEngine Oil - Check, add if required Air Cleaner - Check Automatic Belt Tensioner - Check Ignition Coils - Check Turbocharger - CheckEngine Coolant - Check, add if required Charge Air Cooler - Check Fan Hub, Belt Driven - Check Engine Coolant - Flush and ReplaceCooling Fan - Check Charge Air Piping - Check Water Pump - Check Air Compressor - Check

(4)Radiator Hose - Check Lubricating Oil - Change(4) Catalyst - CheckAir Intake Piping - Check Lubricating Oil Filter - Change(4) Engine Fuel Filter - Replace

Fuel Filter - Drain(2)Supplemental Coolant Additives (SCA) and Antifreeze - Check(5) Overhead Valve Lash- Adjust (7)

Throttle Response - Check Coolant Filter - Change(5) Same Schedule Crankcase Breather Tube - Check

1 Followthemanufacturer'srecommendedmaintenanceproceduresfor thestarter alternator generator batteries electrical components aircompressor refrigerantcompressor fanclutch andOEMNote: Refer to the appropriate manual for complete inspection and maintenance procedures.

as Diesel – Some Different

Maintenance 1. Follow the manufacturer's recommended maintenance procedures for the starter, alternator, generator, batteries, electrical components, air compressor, refrigerant compressor, fan clutch, and OEM fuel filter.2. Interval period for draining the fuel filter is dependent on the fueling station and varies for each location. The drain interval should be adjusted to the time required to accumulate no more than one ounce of oil in the fuel filter.3. At each scheduled maintenance interval, perform all previous checks in addition to the ones specified. 4. Refer toTable1,Oil DrainIntervalsforoil andfilterchangeintervalsbasedonaveragespeed.

Items

347. Initial valve lash adjustment only - therafter regular adjustment interval is 2000 hours

6. Use only Cummins authorized spark plugs for scheduled maintenance or repairs. The use of unauthorized parts can affect performance and emission control system. The recommended 36,000 km [22,500 mile] interval is based on an average vehicle speed of 24 kph [15 mph] and must be derated accordingly for slower speed applications (i.e. 1500 hr times average kph [mph] = distance maintenance interval).

4. Refer to Table 1, Oil Drain Intervals for oil and filter change intervals based on average speed.5. Do not change the coolant filter if the SCA is over 3 units. Refer to Section V.

Warranty - Every Coverage••Base Warranty for Bus/Shuttle, School Bus and Truck are the same as Base Warranty for Bus/Shuttle, School Bus and Truck are the same as dieseldiesel

••2 yr / 250,000 mile Basic Warranty 2 yr / 250,000 mile Basic Warranty -- TruckTruck

••Extended Coverage options are available for Truck CustomersExtended Coverage options are available for Truck Customers••4 yr / 150,000 miles4 yr / 150,000 miles••5 yr / 150 000 200 000 250 000 or 300 000 miles5 yr / 150 000 200 000 250 000 or 300 000 miles5 yr / 150,000, 200,000, 250,000, or 300,000 miles5 yr / 150,000, 200,000, 250,000, or 300,000 miles••6 yr / 250,000 miles 6 yr / 250,000 miles ••7 yr / 250,000 miles7 yr / 250,000 miles6 / 300 000 M j C t W t6 / 300 000 M j C t W t••6 yr / 300,000 Major Component Warranty6 yr / 300,000 Major Component Warranty

••All warranty programs administered per Cummins Standard PoliciesAll warranty programs administered per Cummins Standard Policies

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Summary

Proven technology – Cummins supportMaintenance free exhaust systemLower emissions- Lower community noise.Lower Well to Wheel Greenhouse GasBiomethane low carbon optionpPotential lower total costs with natural gas

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www.cumminswestport.com

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More information?

Questions?

For more information:Bill BoyceBill Boyce

East Regional Manager(330) 720-9785(330) 720 9785Or visit www.cumminswestport.com

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