The Path To EPA Tier 4i - Preparing for. the 2011 transition

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1 The Path To EPA Tier 4i - Preparing for Presented by: Todd Howe Global Product Marketing Manager Doosan Infracore Portable Power Office: the 2011 transition

2 About the Presenter Todd Howe is a 12 year veteran of the construction equipment industry Has held roles in aftermarket, product support and marketing Dedicated to onsite power generation since 2000 Currently Global Product Manager for Generators at Doosan Portable Power Responsible for new product development, strategic planning, product marketing and expansion of generator business globally Todd Howe Office: Mobile:

3 Our Purpose Today Start the education process about the use and application of Tier 4 powered products for end users, equipment dealers, and fleet buyers Provide a high level overview of the technology path engine manufacturers have selected for Tier 4 interim and the challenges equipment manufacturers face in packaging this technology Discuss new considerations that dealers, fleet operators and end users will face in day-to-day operation and servicing

4 Background The equipment industry has been developing emissions related product innovations since 1996 when off-highway diesels first became subject to EPA emissions regulations. Each successive tier change has introduced new technologies to achieve reductions in harmful exhaust emissions. Particulate matter or soot Oxides of nitrogen or NOx which is the primary contributor to the formation of smog Credit: Association of Equipment Manufacturers

5 What It Takes To Make Diesels Clean Charge air cooling Combustion optimization Electronic engine controls High pressure, common rail fuel injection systems Advanced turbochargers Exhaust gas recirculation Aftertreatment Diesel Oxidation Catalysts (DOC) Diesel Particulate Filters (DPF) Selective Catalytic Reduction (SCR) Systems New Fluids Ultra low sulfur diesel fuel Low ash engine oil Diesel Exhaust Fluid (DEF / Urea) Tier 1 Tier 2 Tier 3 Tier 4i Tier 4F

6 Tier 4 The Future Tier 4i engines will ultimately produce near zero emissions levels PM reduction of 96% vs Tier 1 NOx reduction of 78% vs Tier 1 Tier 4 technology is costly Tier 4 represents massive investments for engine manufacturers and equipment packagers Requires new considerations for operation, servicing and fleet management Tier 4f will bring further NOx control to levels 96% below Tier 1

7 What Types Of Products Are Affected kw HP >560 >751 Tier I Tier II Tier III Tier IV int Tier IV final In 2011, EPA Tier 4 interim regulations phase in for mobile, off-highway diesel powered equipment with engine power ratings greater than 174 BHP (130 kw) Vehicles (trucks, buses, etc.) are covered via an on-highway regulation Stationary applications (i.e. permanently installed generator sets) are covered by a separate regulation plus local regulations

8 What Types Of Products Are Affected kw HP >560 >751 Tier I Tier II Tier III Tier IV int In 2012, EPA Tier 4 interim regulations expand to cover equipment with engine power ratings greater than 75 BHP (56 kw) In 2013 EPA Tier 4 final regulations phase in for diesel powered equipment with engine power ratings from BHP (19-55 kw) Tier IV final In 2014 EPA Tier 4 final regulations phase in for diesel powered equipment with engine power ratings from BHP ( kw) In 2015 EPA Tier 4 final regulations phase in for diesel powered equipment with engine power ratings greater than 750BHP (560 kw)

9 Architecture For Tier 4 Interim Advanced Turbocharging Air Intake Credit: Cummins Inc.

10 Technology Overview Technology Advanced Turbo charging Cooled EGR Diesel Oxidation Catalyst Diesel Particulate Filter Hydrocarbon Dosing Full Authority Electronics Benefits Optimizes intake air density to improve combustion efficiency Reduces NOx emissions Reduces HC and particulate emissions Reduces particulate emissions Provides mechanism for active DPF regeneration Increased control and diagnostic capability

11 Portable Compressor Prototype With Cummins QSL9 DOC/DPF After treatment on T4 Concept Unit Engine compartment on Tier 4 concept unit Wrapped exhaust piping Increased cooling system load Packaging considerations to ensure serviceability

12 Engineering Challenges Engine envelope has increased due to addition of EGR system and advanced turbocharger system Engine heat rejection increases of 30-40% vs Tier 3 require redesigns of cooling systems and fan drives to meet application requirements and customer performance attributes DOC/DPF must be mounted in accordance with strict tolerances and require stainless steel exhaust piping with insulation wrap to maintain heat to the DOC/DPF for regeneration Space claim for DOC/DPF and exhaust silencer to meet noise limits and customer expectations Control system redesign to incorporate EPA-mandated controls and indicators for DPF regeneration system Design package to safely manage higher exhaust temperatures encountered during active regeneration Design planning for currently undefined Tier 4 final technology

13 Diesel Oxidation Catalyst (DOC) Open cell substrate flow though device Reduces HC and CO significantly and PM by 10-30% Converts NO to NO 2 for passive regeneration of the DPF Oxidizes HC (diesel fuel) as part of active regeneration strategy No servicing required Requires use of low sulfur diesel or ULSD to prevent plugging Credit: John Deere Power Systems

14 Diesel Particulate Filter (DPF) Wall flow, high filtration efficiency (>95%) Traps ash, soot and any particles Needs periodic regeneration / cleaning Requires low ash engine oil (API Spec CJ-4) to prevent plugging Periodic servicing for ash removal required Credit: John Deere Power Systems

15 DOC/DPF After treatment Diesel Oxidation Catalyst (DOC) Diesel Particulate Filter (DPF) Temperature Sensors Pressure Sensing Ports Credit: John Deere Power Systems

16 What is Regeneration? Regeneration is the cleaning out of accumulated carbon (soot) in the DPF from normal engine operation Regeneration is accomplished by using heat to create a chemical reaction within the DPF to convert accumulated carbon to CO2 Carbon accumulation varies depending upon engine and upon load factor on the engine regeneration frequency and duration will vary Three modes of regeneration: Passive Active Manual / Forced

17 What is Regeneration? Engines that run regularly with a high load factor will likely passively regenerate during operation IE: happen transparently during the normal use of the product Exhaust heat at the inlet to the DPF is normally high enough to provide the necessary heat energy for the regeneration reaction Engines that run regularly with a light load factor will likely need active regeneration during operation Exhaust heat isn t sufficient to cause passive regeneration so additional fuel must be injected to build the necessary heat energy to cause the regeneration reaction Exhaust temperatures will be higher than normal during active regeneration Active regeneration is not transparent to the operator Active and passive regeneration can happen in mission, i.e. during normal operation Active regeneration can prevented by the operator via an inhibit switch on the control panel.

18 Manual (Forced) Regeneration In the event that an engine operates in a manner that passive regeneration does not take place, and the operator inhibits active regeneration, the unit will need manual regeneration periodically Manual regeneration is non-mission, i.e. cannot take place during normal operation. Manual regeneration must be initiated by the operator via a switch on the control panel Failure to allow regeneration as needed by the engine will ultimately lead to a warning condition with a derate Continued operation without regeneration will lead to a shutdown condition and will require a service call

19 DPF Controls and Indications EPA has mandated new indicator lamps and operator controls to govern regeneration events Operator training is an important consideration to ensure equipment operates correctly

20 DPF Controls and Indications Manual Regeneration Switch Normal Operation Regen Inhibit Switch Diesel Particulate Filter (DPF) Lamp High Exhaust Temperature (HEST) Lamp Regen Inhibit Lamp Check Engine Lamp (CEL) Stop Engine Lamp (SEL)

21 Regeneration Considerations A properly applied and sized machine generally should passively regenerate Oversized machines may require active or manual regeneration Inhibiting regeneration should be avoided unless there is application concern relative to elevated exhaust temperatures

22 Normal Operation Empty DPF

23 Normal Operation Passive Regeneration

24 Active Regeneration Needed

25 Moderate Soot Load Active Or Manual Regeneration Needed

26 High Soot Load Manual Regeneration Needed

27 Stop Engine Service Required To Clean DPE

28 DPF Ash Cleaning And Removal Ash accumulates in the DPF over the course of normal operation and is not removed as part of the regeneration process Over time the DPF will need to be removed from the machine and brought to a service center for cleaning EPA mandates at least 4,500 hours of operation between ash cleaning service intervals for engines above 175 hp Minimum 3,000 hours for engines below 175 hp It is likely that engine manufacturers will offer an exchange program via their dealer network DPF cleaning is a 4-6 hour process (plus R&R and travel time) Service cost varies by engine manufacturer and location but is in the $1500 range

29 Key Priorities for OEMs Make the technology as transparent to the operator as possible Maintain or increase performance attributes (output, fuel economy, noise levels, power density, etc.) versus prior tier Rigorously test the new technologies to ensure the reliability demanded by our customers Provide the technology interface to simplify operation and diagnostics Provide training support (service, sales and operator) to ensure a smooth and successful transition

30 Emissions Challenges For Customers Increasing levels of electronic control require higher levels of training and diagnostic capability of service technicians Investment in service tools to diagnose and repair electronic systems End user training to explain regeneration controls / indications and how different applications affect regeneration cycles Requirements for ultra-low sulfur diesel (ULSD) and new generation lubricants (API CJ-4) to maintain compatibility with fuel injection and after-treatment systems New service procedures to maintain diesel particulate filters New controls and diagnostic indicators on operator panel for active regeneration of diesel particulate filters Increases in the cost of compliance By working together, OEM s, Dealers, Fleet Customers and End Users can successfully transition to Tier 4

31 Market Impacts Engine cost increases of 65-90% over Tier 3 New package designs to incorporate space claim for larger cooling systems, DPF systems, and potential future technologies needed for Tier 4 final Projected product market price increases up to 50% over 2010 price levels Dealers will need to make bigger investments in service capabilities (technician training, service tools), to support these products Operators will need training to properly use and understand regeneration strategies Fleet management will become a critical issue

32 TPEM Flexibility Provision TPEM (Transition Program for Equipment Manufacturers)- In year of an emissions change (and for 7 years after), the equipment manufacturer has rights to use a flexibility clause as defined in EPA d.1 This permits DIPP to use a mix of emission engines (current tier plus prior tier) in a power band as long as the aggregate shipments from the Corporation meets the law. The Flex provision stipulates that a cumulative maximum of 80% of each year s production volume over a maximum of 7 years can be prior tier provided 20% is current tier One Flex rule covers both tier 4i and tier 4f All prior tier engines must be phased out of production by the end of 2017 Doosan Portable Power may employ TPEM strategies to ensure supply continuity and a successful transition from Tier 2 / 3 to Tier 4i

33 TPEM Examples A business produces 500 units annually in a particular horsepower category. Example 1: Spend all TPEM allowance year 1: Example 2: Split TPEM evenly among transition years: TPEM Tier 4i TPEM Tier 4i TPEM Tier 4i TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f % 0% 0% 0% 0% 0% 0% 0% 80% TPEM Tier 4i TPEM Tier 4i TPEM Tier 4i TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f % 0% 0% 40% 0% 0% 0% 0% 80%

34 TPEM Examples Example 3: Spread TPEM evenly across maximum number of years TPEM Tier 4i TPEM Tier 4i TPEM Tier 4i TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f TPEM Tier 4f % 11% 11% 11% 11% 11% 11% 0% 80%

35 How To Support The Industry Take a leading role in the industry to communicate and educate about the changes and impacts associated with the transition to Tier 4. Dealers End Users Fleet buyers Industry Associations Capture VOC to further understand the potential impacts of this technology and use it to develop solutions to the challenges. Chart your course! Create design and portfolio plans and establish resources to get there. There are a lot of still unanswered questions, but we ll learn more together as an industry if we share our knowledge and experience. Invest in the training necessary to prepare your customers and channel partners for tier 4. Prove your commitment to the Onsite Power Industry!

36 THE END

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