Future Technology Trends in Heavy Duty Commercial Vehicle Diesel Engines February 26 th, 2013

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1 Future Technology Trends in Heavy Duty Commercial Vehicle Diesel Engines February 26 th, 2013 David Shrader APAC Commercial Vehicle Sector Head Norgren Inc.

2 Future Technology Trends in Heavy Duty Commercial Vehicle Diesel Engines Agenda What s driving Future Engine / Power Train Changes? Market Drivers impact on Applications Technology for those Applications Future of the Technology Roadmap

3 Legislation Market Drivers impacting HD Diesel Engines Legislation continues to underpin our technology Roadmap Asia in process of implementing new standards Asia divided over SCR (better for low quality fuels) and EGR (lower costs) New legislation in N.A. on efficiency & green house gasses; coming to other Regions as well Cost of Ownership Continued pressure to reduce cost of truck Operating costs of trucks experiencing continued upward pressure Fuel efficiency Cost of Fuel can be 50% of operating costs Pressure to improve efficiency Cost of Fuel will continue to rise GHG Reduction Environmental concerns driving reductions

4 Market Drivers and Impact on Technology Driver Effect Emissions Legislation In cylinder and after treatment solutions to reduce NOx and PM Cost of Ownership Fuel efficiency Constant drive to reduce price and Operating costs Heat recovery, Aerodynamic improvements, reduced parasitic loading & weight Green House Gas Reduction Alternative Fuels, Hybridization, Larger Loads Initial stages of Market Drivers can be met with current Technology Market Drivers will Demand New and updated Technology

5 What does the Technology Roadmap Look Like? Driver - Emissions Legislation Applications clear to move forward Charge air and exhaust flow control Selective Catalytic Reduction Exhaust Gas Recirculation Future Legislation Standards High Performance Turbos Common Rail Fuel Injection Current Emission Legislation Particulate Matter NO x Roadmap pretty well defined

6 What does the Technology Roadmap Look Like? (cont.) Drivers Applications Cost of Ownership Value Engineering New Materials and processes Fuel Efficiency Charge air and exhaust flow control Automated Transmissions Waste Heat Recovery Green House Gases CNG, LNG Bio Fuels Hybridization Market Drivers will Require further Technology Applications being Adopted

7 CV TECHNOLOGY ROADMAP to Satisfy Market Drivers There are many different technologies available Many different strategies Drivers Not all inclusive Emissions Legislation Cost of Ownership Fuel efficiency Green House Gas Reduction Effect In cylinder and after treatment solutions to reduce Nox and PM Constant drive to reduce price and Operating costs Heat recovery, Aerodynamic improvements, reduced parasitic loading & weight Alternative Fuels, Hybridization, Larger Loads Applications SCR EGR DPF Common Rail Injection High Performance Turbos Charge Air and Exhaust Flow control Value Engineering Automated Transmissions Waste Heat Recovery CNG, LNG, Biodiesel Battery Thermal Management Technology Water Valves Electric Throttles Proportional Actuation Cartridge Solenoids Fuel Valves VTG, Multistage Smart Waste Gate Chassis Valves Digital Actuation Fuel Components Connectors Manifolds CNG,LNG Valves Boiler Feed Modules Steam Valves

8 Future of Technology Roadmap Technology Water Valves Fast response <100ms Electric Throttles Proportional Actuation OBD Capability Integrated Designs Emissions Legislation Cartridge Solenoids Fuel Valves VTG, Multistage Smart Waste Gate Proportional Control Temperature Capability Position Feedback Temperature Capability Accuracy High Vibration Capability As Legislation gets more demanding Technology is Changing and Advancing Specifications will become more demanding

9 Future of Technology Roadmap As Market Drivers get more demanding New Technology Required Cartridge Solenoids Cost of Ownership Fuel efficiency Green House Gas Reduction Fuel Valves Chassis Valves Digital Actuation Fuel Components Manifolds CNG,LNG Valves Boiler Feed Modules Further Advancements Lower cost Accuracy Durability Further Advancements Lower cost Faster Response Vibration Capability Accuracy Sensors Control Valves Further Fuel Use and GHG Reductions Steam Valves Dual Fuel Combustion Efficiency Control Modules Further Advancements Advanced technology Extreme Temperatures Integrated design Variable Valves Air Systems Friction reduction / Insulation Waste Energy Recovery Aftertreatment

10 Technology Roadmap Lifecycles There are some interesting trends Technologies do have a finite lifecycle Pneumatic control on the decline for engines Technologies required that as yet not available to the market

11 Technology Roadmap Acceptance OEM s need to set technology strategies that best fit their Needs Strong trends emerging, such as adoption of electric drive / electronic control Not all options will be adopted industry wide Some will have a greater impact on improvements (?) 11

12 What Future Technology may have large impact on improving engine efficiency and meeting market drivers? Waste Heat Recovery Step change required Recover heat lose from Engine system Major opportunity to Improve engine efficiency Estimated efficiency gain of 5 to 11 % 12

13 Future Trends in HD Diesel Engine Technology Summary» Existing technologies will allow initial compliance with Market Drivers» Achieving Future compliance is less likely without a significant technology change, such as waste heat recovery, CNG/LNG, Hybrids or a yet to be defined technology.» Technologies can only contribute to the extent they are integrated into the complete vehicle / Engine as a system Focus to reduce purchase price and running costs Heat recovery, Aero improvements, reduce parasitic, weight Emissions, Cost of Ownership, Fuel efficiency, GHG reduction In cylinder & aftertreatment Alternative fuels, Hybridization, Larger Loads 13

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