NGEO REVIEW Ray Sparling, Technical Support. January 20, 2016

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1 NGEO REVIEW Ray Sparling, Technical Support January 20, 2016

2 Agenda Natural Gas Stationary Engines Types/Applications Vehicular Engines Types/Applications OEMs and Approvals Summary Open Discussion

3 Stationary Gas Engine Overview Generally very durable, robust designs Typically 40,000 hours between overhauls with quality engine oils Engines rebuilt many times Engine reliability important to customer Generally operate at Constant speed High, continuous load Come in all power ranges 100 kw to 16 MW Most common application ~1 MW Typical cost ~1+ MM U.S. dollars

4 Why do gas engines need special oils? Because the engines run on methane gas! The engines often generate severe oil stress Gas burns very hot (cogeneration engines run even hotter) Engines run at high load (often above full rated load) Stationary engines are often in remote operations Oxidation control is important, especially in 4-cycle applications Natural gas usually contains no sulfur Less TBN is required Gas is dry Oil ash controls valve wear in 4-cycle engines Minimum ash level is required for 4-cycle application Ash deposits can lead to pre-ignition or port plugging Ash level must be optimized for 4-cycle applications Ashless oils are required for 2-cycle application

5 Recoverable Shale Gas in the U.S.

6 Horizontal Wells + Hydraulic Fracturing

7 NGEO Applications From the Wellhead to the Powerplant Application Wellhead Gathering Gas Processing Plants Gas Pipelines / Compressor Stations Residential Electric Power Plants Industrial Electric Power Plants Natural Gas Vehicles Typical Natural Gas Engine Type 4-cycles with some 2-cycles Large 2-cycles / large 4-cycles Large 2-cycles / large 4-cycles / Turbines Large 4-cycles / Turbines Large 4-cycles / Turbines Mobile CNG / LNG engines

8 America Main Gas Engine Builder Caterpillar, Waukesha, GE Jenbacher, Cummins, Europe Detroit / Volvo, Dresser Rand, Cooper Compression, Wärtsilä. GE Jenbacher, Waukesha, Caterpillar, MWM (Deutz Power Systems), Wärtsilä, Rolls Royce, Guascor, MDE/MTU, MAN. Asia Caterpillar, GE Jenbacher, Weichai, Yammar, Komatsu, Waukesha, Wärtsilä.

9 Gas Engine Technology Performance & Approvals No Industry-wide Specifications No universal industry performance specifications as with Automotive Oils Most OEMs place the responsibility for oil selection and performance on the oil supplier Most OEMs have established oil selection guidelines Chemical and physical properties Proven field service Many OEMs have approval processes or recommend oils by brand name Performance is determined by Extensive Field Testing

10 RUGGED NATURAL GAS ENGINE OIL Rugged Natural Gas Engine Oil is a premium quality, dispersant-detergent natural gas engine oil designed for use in mobile equipment. The formulation is low-ash and features excellent antiwear properties to protect pistons, liners and valve-trains against excessive wear. It provides outstanding performance in transit, school and delivery fleets powered by Detroit Diesel, Cummins or John Deere CNG or LNG engines in both normal and extended drain service intervals. Rugged Natural Gas Engine Oil possesses excellent oxidation and nitration resistance, as well as outstanding protection against wear, rust, corrosion, foaming and aeration. APPLICATIONS: Transit buses School buses Delivery trucks Equipment with CNG or LNG engines SPECIFICATIONS: Cummins CES Detroit Diesel Company 93K216 Volvo CNG Renault RGD Mercedes Benz DC API CF-4 Endorsements: Mack endorses this specific formulation A SUPERIOR PRODUCT BY COLORADO PETROLEUM TH TYPICAL PROPERTIES 15w40 Specific 60 F 0,876 Flash (COC), C ( F) 228 (440) Pour Point, C ( F) -36 (-33) Viscosity, Kinematic C 114 C 15.2 Viscosity Index 139 Total Base Number (TBN), ASTM D Sulfated Ash, ASTM D874, wt %.77 Phosphorus, wt % 0.08 Zinc, wt % Cold Cranking Viscosity, -20 C 6,300

11 OEM & API Claims Proven Field Performance Cummins CES Excellent performance in double length Cummins C8.3G Excellent wear and deposit control Field test in Cummins B5.9 engines required for approval Cummins Approval obtained Detroit Diesel Corporation (DDC) 93K216 DDC completed a 1000 hour in-house engine test Field test completed in DDC 50G Series engines DDC Mobile Gas Engine Oil (MGO)

12 OEM & API Claims Additional OEM Claims: Volvo CNG MB Renault RGD API CF-4

13 North America Natural Gas Engines ISB 6.7 G ISL G ISX 12 G D13G ISX 15 G HD 15 No Image Available No Image Available 6.7 liter SEGR 8.9 liter SEGR hp 11.9 liter SEGR hp 13 liter HPDI 15 liter SEGR 15 liter HPDI hp 2015 launch Widely used 2013 launch 2014 launch 2015 launch Available (costly)

14 Cummins C8.3G Engine For Cummins CES Test Duration 200 h Engine Speed 2400 RPM Power Output 200 kw Fuel Feed Rate 43 kg/h Gallery Oil Temp 106 C Coolant Temp 90 C Intake Air Temp 46 C Fuel Temp 20 C

15 Cummins - C8.3G Liner wear Average Liner Wear, µm Lower is Better CES Pass/Fail Limit for 200 h Test : 5 µm Good Reference Poor Reference Good Reference Poor Reference Rugged 400h

16 Cummins B5.9 CNG Field Test Valve Recession Valve Recession (In) Rugged HDEO vs HDEO HDMO HDEO Rugged Rugged INTAKE Valve Position EXHAUST

17 NGEO Field Test Unit Detroit Diesel Approval

18 DDC Series 50G Field Test-Phase II Rugged NGEO Technology 275 hp, Detroit Diesel Series 50G Rugged NGEO technology has been field tested in a city bus fleet Field test protocol Test Duration: 120,000 miles (Approximately 2 years) Drain Interval: 6,000 miles Final inspections involved: Complete dismantling of all the engines Four Complete Engine Tear-Down Inspections done at DDC Dealership witnessed by DDC Field Representative Rating of piston deposits, valve deposits, sludge, etc. Visual inspection for valve train wear and bore polish

19 Detroit Diesel Piston deposit formation Average Piston Deposit Rating (Demerit) Lower is Better Good Reference (Fleet Oil) Rugged NGEO Technology

20 Detroit Diesel DDC Series 50G field test conclusions Rugged NGEO Technology offers excellent performance in the areas of TBN depletion, TAN increase Oxidation/Nitration and bearing corrosion Engine cleanliness was excellent : Good ratings for sludge and valve deposits Piston deposit control was better than the lower ash Fleet Oil

21 Summary Rugged NGEO provides improved performance for Mobile Gas Engines The product has improved oxidation & nitration control in addition to outstanding wear and deposit benefits Rugged NGEO is formulated for Extended Drain Mobile Applications Excellent field and engine test performance

22 Questions?

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