Natural Gas in High Horsepower Engine Applications

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1 The global leader in natural gas engines. Our products work here to keep this clear. Natural Gas in High Horsepower Engine Applications Westport Innovations Dale Goudie, PEng

2 Overview Introduction to Westport Why natural gas.why now? Natural gas engine technology Natural gas as a fuel Combustion methods, performance and emissions Westport HPDI Current high-horsepower engine development

3 Westport at a Glance market focus position strategy Transformation from petroleum-fueled to alternative-fueled engines. The global leader in gaseous fuel engineering and technology. Leverage IP to penetrate markets through relationships with marketleading OEMs. Volvo 3

4 Westport Global Operations Vancouver Canada Lyon France Gothenburg Sweden Beijing & Weifang China Signal Hill U.S.A. Detroit U.S.A. Pernumia & Brescia Italy stock symbols market capitalization TSX NASDAQ CAD USD WPT WPRT $1.4 billion ~$1.4 billion Bayswater Australia 4

5 The Golden Age of Natural Gas World natural gas resources by major region, January 2010 (tcm) source: Are We Entering a Golden Age of Gas?, IEA, June

6 Downward Pressure on Natural Gas Prices Natural gas price projections are significantly lower than past years due to an expanded shale gas resource base natural gas spot price (Henry Hub); 2009 dollars per million Btu updated AEO2009 $9/MMBtu AEO2010 $7/MMBtu Energy Equivalent price for Diesel: $0.26 US gal Curren t price: $1.84 AEO2011 history 2009 projections sources: EIA, Annual Energy Outlook 2011; EIA, Annual Energy Outlook 2010; and EIA, An Updated Annual Energy Outlook 2009 Reference Case via: Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources, Richard Newell, June 21,

7 NOx Emissions Legislation 4 IMO Tier III (2016) NOx Regulations - ECAs NOx (g/kwh) 2 EPA = Engine Speed (rpm)

8 Not just NOx US - EPA Emissions Legislation (g/kwh) Engine Class Start year Cycle Size NOx NMHC CO PM HD On-highway 2010 FTP > lb Locomotive (line haul) > 750 kw Marine (Category 1/2) ISO 8178 < 3700 kw Mobile non-road 2015 ISO 8178 > 560 kw Emission control areas (ECA) are really targeted to inland waterways and coastal vessels so what are the technical solutions and options?

9 Natural Gas as an Engine Fuel Composition C1, C2, C3, C4+ Inert Gases No sulphur Storage Volume (LNG vs. CNG) Liquefaction costs Boil off Other Invisible/odorless Non-toxic GHG (25x CO 2 e) Combustion Properties Narrow flammability limit High exhaust H 2 O content Reduced flame temperature (NOx) Reduced carbon content (PM) Ignition Properties ~595 C compared to diesel at ~260 C Not easily oxidized (i.e. after-treatment)

10 Onboard LNG storage is well understood

11 Current NG Engines (Category 1/2) Bergen C26:33 Wärtsilä 20DF 6, 8 and 9 cylinder 1,460 to 2,430kW Medium speed engine Gas only lean burn spark ignition Claimed max BTE of 48% 6, 8 and 9 cylinder 1,056 to 1,586 kw Medium speed engine Dual fuel

12 NG Combustion Summary Spark-Ignited (SI) Dual-Fuel (DF) High Pressure Direct Injection (HPDI) TAB How it Gas and air pre-mixed at Gas and air pre-mixed at low High pressure gas injected works low pressure Ignition from spark plug pressure Diesel micro-pilot for DF directly in combustion chamber (often pre-chamber) Lean burn to avoid knock Ignition from diesel pilot Lean burn to avoid knock at high CR Otto cycle Otto cycle / Diesel cycle Separate injector for diesel only Diesel cycle Limitations / Methane slip Methane slip Limited methane slip Advantages Get home power Part load operation Diesel responsiveness and Spark plug replacement Load response efficiency Fuel flexibility Get home power 12

13 Further Emissions Control Strategies Exhaust Gas Recirculation (EGR) Cooled and uncooled After-treatment Strategies Urea based SCR systems Diesel Particulate Filter (DPF) Fuel sulphur content affects technology 15 ppm for land based engines 1000 ppm for marine inside ECA (0.1% after 2015)

14 HPDI Technology Pilot diesel injected just prior to natural gas to provide energy for auto-ignition of gas injection Natural gas injected at high pressure at end of compression stroke (no pre-mixed air/fuel) Low diesel usage under all conditions Average of 6% diesel over vehicle operating cycle Diesel Engine Performance remains Same high power and torque Same or higher efficiency Robust combustion over wide range of fuel composition (no premixed air/fuel so no chance of detonation) Typical Emission Reductions ~ 40% lower NOx ~ 70% lower PM ~ 20% lower GHG

15 HPDI delivers the required performance Identical torque curve as selected diesel ratings Same responsiveness Compatible with diesel drive train components No change in cooling requirements vs. base diesel Torque (ft-lb) Truck engine example: Certified to Australian ADR 80/02 Power: hp Torque: 1,650-1,850 lb-ft Similar BMEP as HHP engines Torque Curve Diesel HPDI Engine Speed (RPM)

16 High Pressure Direct Injection Common-rail style injector Directly replaces diesel injector Capable of independently injecting diesel and gas at up to 30 MPa injection pressure Diesel used as an ignition source, actuation fluid, lubricant, and coolant Diesel HPDI

17 HPDI System - Westport HD Westport s HPDI technology was developed initially on the Cummins ISX platform, a 15- litre diesel engine rated from 400 to 600 HP Currently working with Volvo and Weichai on new HD applications

18 Gas and Pilot Diesel Flows Only enough diesel fuel to initiate ignition ~3% at full load 5-6% pilot on typical HD truck cycle No idling or running solely on diesel fuel

19 HPDI Emissions History HD Project Base Engine NOx PM NMHC Australia ADR 80_02 CO (meas.) CO (cert) DOC DPF SCR DF VGT + Cooled EGR (lightly used) no no no US EPA/CARB 2004 VGT + Cooled EGR yes no no Australia ADR 80_03 VGT + Cooled EGR yes yes no US EPA 2007 VGT + Cooled EGR yes yes no US EPA 2010 VGT + Cooled EGR yes yes yes Values in g/kwh (4-stroke HD high speed engines, transient operation)

20 Areas of focus for Westport High Horsepower High fuel use Transient power requirements Power density important Common engine platforms Rail Marine Mining

21 Westport Approach to Rail Program Westport is transitioning its proven HPDI technology from Heavy Duty trucking to High Horsepower applications (600 to 6000 HP)

22 SDTC Overview The SDTC program requires Westport to develop a new HPDI injection system, but heavily parented off the existing truck technology Known technology with proven track record in on-road applications Minimal change to functionality Leverage existing knowledge and reliability data to create a robust solution for challenging rail conditions This fuel system will be developed as an OEM application, not a one-off demonstration

23 Final Thoughts Fuel cost, quality, infrastructure Emissions motivator or driver! Engines choice depends on application Westport HPDI marine coming soon! Dale Goudie, PEng Westport Innovations Inc.

The global leader in natural gas engines setting the technology standard. Our products work here. to keep this clear. Select.

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