OPTIMISED NATURAL GAS ENGINES FOR PHASE II GHG COMPLIANCE. Mark Dunn, Westport Innovations

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OPTIMISED NATURAL GAS ENGINES FOR PHASE II GHG COMPLIANCE Mark Dunn, Westport Innovations 1

Westport Fuel Systems Brands and Market Breadth BRAND EQUITY IN ALTERNATIVE FUEL SPACE BREADTH OF REACH Passenger Car & Light Truck Medium-Duty Heavy-Duty Industrial High Horsepower CNG Refueling 2

Large Scale Shifts in Fuel Selection Can Occur 1. MacKay & Co., & Wards Auto Group, a division of Penton Media, Inc. 2. ACEA 3. Westport 3

Introduction» The HD GHG 1 rule (2014 to 2017) broke new ground in 2011 3 main categories: pick up trucks and vans, vocational vehicles and tractor trailers Different test methods, cycles and limits according to the segment» New GHG 2 final rule covers 2021 to 2027 More integrated approach for engines and vehicles in Class 4 and above Allows engine benefits to be transferred to the vehicle in new ways» Under GHG 2, natural gas can provide engine and vehicle compliance benefits» The market for natural gas is strong in some segments such as refuse trucks and transit bus but we need to target larger segments such as HD pickups and Class 8 trucks to make a bigger impact 4

Heavy Duty Pickup Trucks (Class 2b/3) Opportunity» Class 2b/3 is the largest heavy duty segment in terms of sales volumes» NG options are available but they have limited appeal Less than gasoline performance Diesel like price premium. Load bed space is taken up with CNG storage» The issues can be addressed with suitable engine and CNG storage approaches» Addressing the HD pickup opportunity requires the combination and improvement of light and medium duty SI NG engine approaches Option prices relative to gasoline today: Diesel: $8,600 $9,300 CNG: $9,500 $11,000 5

The Class 2b 3 Vehicle Challenge Minority of Class 2b /3 sales Electrification and hybridization is beneficial for smaller vehicles but difficult to implement economically in heavy duty pick ups 50% of Class 2b 70% of Class 3 6

Progression of Natural Gas Technologies in Light Duty Space Driving Performance, Efficiency 1 Gasoline NA PFI engines with NG PFI Common. Current/prior generation. Slightly degraded peak power & torque relative to gasoline. Progression 7

1 Problem Static view of CNGV Potential» GREET model assumes that CNGV engine technology is almost static compared with improving SI DI engines» 5% efficiency gap widens to 12% with introduction of more efficient SIDI engines (most likely down sized assumed) 8

Progression of Natural Gas Technologies in Light Duty Space Driving Performance, Efficiency 1 2 Turbo Gasoline Good. Current OEM state of the art. Only Volvo DI engines (Westport), VW and Mercedes in Europe. with NG PFI Matches gasoline performance*. Gasoline NA PFI engines with NG PFI Common. Current/prior generation. Slightly degraded peak power & torque relative to gasoline. * Gasoline co fueling and other protection countermeasures required in NG mode. Progression 9

2 Turbo DI Engines Produce More Compelling CNG Vehicles V90 Bi Fuel Specification Engine Torque Max Output Transmission T5 Bi Fuel. Four cylinder, turbo charged Drive E 350 N m 254 hp 8 speed Geartronic auto Cylinder Capacity 1969 cm 3 Consumption combined driving (auto) 4.5* kg/100 km (gas) [approx 6.8 l/100 km petrol equivalent] 6.7* litres/100 km (petrol) V60 Results Emission standard Euro 6 * Preliminary data 10

Progression of Natural Gas Technologies in Light Duty Space Driving Performance, Efficiency 1 3 Turbo Gasoline DI engines with NG DI Better. Delphi, Conti and Bosch developing NG DI FIE. Exceeds gasoline performance & efficiency. 2 Turbo Gasoline Good. Current OEM state of the art. Only Volvo Gasoline NA PFI engines with NG PFI DI engines with NG PFI (Westport), VW and Mercedes in Europe. Matches gasoline performance*. Common. Current/prior generation. Slightly degraded peak power & torque relative to gasoline. * Gasoline co fueling and other protection countermeasures required in NG mode. Progression 11

3 CNG DI can exceed GDI Base Engine Performance Engine full load performance with and without CNG DI optimized turbocharger and resulting time to torque comparison for Ford EcoBoost 1.0L engine using CNG DI system (Source: CNG Specific Downsizing Potentials and Challenges, Internationales Wiener Motorensymposium 2015, Ford Werke GmbH, Köln, FEV GmbH, Aachen) 12

Progression of Natural Gas Technologies in Light Duty Space Driving Performance, Efficiency 1 3 Turbo Gasoline DI engines with NG DI Better. Delphi, Conti and Bosch developing NG DI FIE. Exceeds gasoline performance & efficiency. 2 Turbo Gasoline Good. Current OEM state of the art. Only Volvo Gasoline NA PFI engines with NG PFI DI engines with NG PFI 4 Turbo Diesel Best. Outperforms gasoline and base engines matches or exceeds diesel with NG DI performance. (Westport), VW and Mercedes in Europe. Matches gasoline performance*. Common. Current/prior generation. Slightly degraded peak power & torque relative to gasoline. * Gasoline co fueling and other protection countermeasures required in NG mode. Progression 13

Diesel Derived Spark Ignited Medium Duty NG Engines Lean Burn Technology Cummins L10G launched 1 st CNG bus engine Stoichiometric with Cooled EGR Technology 1 st demonstrated in 2004 1 st launched - CWI ISL G - in 2007 High Efficiency SI (HESI) Technology 1 st demonstrated 4 1992 2004 2007 2014 High excess air with turbocharging Much lower NOx & PM than diesel 25% lower peak torque than diesel Oxygen-free exhaust using cooled EGR 3-way catalyst 15-25% lower peak torque than diesel Retains stoich + EGR combustion Removes constraint of common cylinder head with diesel engine Higher peak torque than diesel Enables downsizing Tumble air motion High turbulent kinetic energy (TKE) at point of ignition 14

4 High Efficiency SI (HESI) Engine Cylinder Head Features» The HESI cylinder head is a fundamental enabling technology that determines design of other engine components.» When integrated with a pre existing diesel engine bottom end (engine block, crankshaft, main bearings, etc.), it enables high efficiency, high output Otto cycle combustion. Even airflow distribution cylinderto cylinder Optimized thermal management no hot spots and increased knock resistance Cascading design improvements to piston, fuel, intake and exhaust systems Tumble air motion fast, combustion and simple piston Integrated EGR high flow for knock control and dethrottling VVT residuals control, combustion optimization and de throttling Compact combustion chamber with maximum heat dissipation 15

Heat Release Rate Comparison Tumble combustion system provides high turbulent kinetic energy at point of ignition Intensifies mixing, promoting efficient combustion Increased flame propagation speed, causing rapid heat release rate after ignition Lower exhaust temperature but higher cylinder pressure Strong bottom end needed to maximise the benefit of the approach Tumble 1 litre/ cylinder Full Load 1500 rev/min Swirl 16

Estimated CO2 Benefit versus 2027 Requirement Heavy Duty Pickup» Analytical comparison of options based on experience, GT Power analysis and comparison with published literature [1,2].» Un throttled NG engine not really practical in this segment due to cost, aftertreatment and packaging reasons. Methane emissions may also offset a significant proportion of the CO2 reduction depending upon combustion strategy» HESI with VVT (MHD solution) provides a significant CO2 reduction but only half of the fuel carbon intensity benefit is captured» HESI with cylinder deactivation could provide enough benefit to meet the reductions called for by 2027 14% ~11% ~16% 1: DOT HS 812 194, February 2016, Commercial Medium and Heavy Duty Truck Fuel Efficiency Technology Study Report #2 2: Cutting edge technology for fuel efficiency: Active Cylinder Management ACT in a four cylinder engine, VW https://www.volkswagen media services.com/en/detailpage/ /detail/cutting edge technology for fuelefficiency Active Cylinder Management ACT in a four cylinderengine/view/201914/7227fa995ef711551e7c4741077ed756?p_p_auth=3oaxmfiz 5800 lb work factor 17

Summary High Efficiency SI» High efficiency SI can make an impact in Class 2b/3 by offering capability equal to diesel with rapid payback (zero to small premium over diesel)» Dedicated natural gas cylinder head approach for diesel bottom end provides significant benefits in performance, efficiency and robustness» SI technology is progressing but there is still a lot more to come SI DI CNG in light duty around 2020 Optimised SI DI (step 4) in medium duty also around 2020 Combined technology package in HD pick up for 2021? 18

The Challenge for Class 8 Trucks» Over 20% reduction in CO2 required for Class 8 tractors over the next 10 years» Powertrain and vehicle technology combinations are required meet this target» Efficient natural gas technologies stand to make a significant contribution AVL viewpoint 19

Westport HPDI for Class 8 Trucks»HPDI Principles and Rationale»Fuel System Overview HPDI Injectors Fuel Conditioning Modules LNG Tank and Pump»Performance and Emissions»Outlook and GHG 2 impact /// 20

HPDI Technology Principles» Reproduces Diesel Cycle but with mostly natural gas.» Diesel base engine configuration Same power cylinder architecture, including compression ratio Same air handling system Same control approach» Fuel injected at high pressure at end of compression stroke Diesel Pilot For Ignition Natural Gas Generally variable rail pressure up to 300 bar for both fuels» Low diesel usage 5% to 10% diesel over vehicle operating cycle /// 21

HPDI Technology Benefits» Provides the same power and torque capability as the parent diesel engine» Provides same drivability (transient response)» Provides same engine compression braking» Maintains high efficiency of diesel cycle minimizes CO2e emissions Torque [Nm]» Engine Development perspective Minimizes changes to the base diesel engine Aligned with diesel emissions control equipment and strategies Similar exhaust temperatures Brake Thermal Efficiency [%] 3000 25.2 3000 HPDI 1.0 ref IMechE C3170, 2013 2800 23.5 2500 2600 21.8 2000 2400 20.2 44 1500 42 2200 18.5 1000 40 38 2000 16.8 36 500 32 1000 1200 1400 1600 1800 2000 0 Engine Speed [rev/min] 600 800 1000 1200 1400 1600 1800 2000 Test 1 Test 2 Test 3 Full Load Target Speed [rev/min] HPDI 1.0 ref IMechE C3170, 2013 BMEP [bar] Torque [Nm] /// 22

Fuel System Overview 23

Technology Progression: HPDI 1.0 to HPDI 2.0» 1300 HPDI 1.0 trucks deployed between 2007 and 2013 First generation fuel system installed by Westport on purchased Cummins 15L ISX engines and standard after treatment» Lessons learned Drivability and Performance generally well liked Product not robust in all situations Cost too high Incompatible with the new generation of HD engines coming to the market 2nd generation required» HPDI 2.0 designed to overcome limitations of HPDI 1.0» Components designed & developed in conjunction with industry leading component manufacturers, including Delphi Diesel Systems 1.0 2.0» HPDI 2.0 injector up to 500 bar pressure capable» Initial implementation 300 bar 24

Technology Progression: Fuel Storage and Supply System» Completely re designed» Cost reduced, quality improved, easier integration» Integrated LNG Pump» High & low pressure variants» Enables cold LNG for increased range and longer hold times Integrated LNG Tank Module Integrated Gas Module High Pressure LNG Pump 25

HPDI 2.0 Results» HPDI 2.0 Fuel System was adapted to two European heavy duty in line 6 cylinder engines with peak ratings above 360kW» The two engines rely on a combination of combustion phasing, EGR and EATS to meet emissions requirement. EATS = SCR, DOC & DPF» Calibrated using standard design of experiment methods to optimize: Injection timing (and pilot to gas delay) Fuel pressure EGR and air handling EGR rates are generally reduced from base diesel engine» Operate within the base engine mechanical and thermal limits. Euro VI Type 1 A dual fuel limits NOx < 0.46 g/kwh PM < 0.01 g/kwh CO < 4 g/kwh nmhc < 0.16 g/kwh CH4 < 0.5 g/kwh NH3* < 10 ppm» Type 1 A dual fuel definition (1) Engine must idle using both diesel and natural gas. (2) The gas energy ratio (GER) must be greater than 90% as measured over a warm WHTC. (3) Emissions testing only required over combined hot cold WHTC. No WHSC testing required. *(for systems with SCR) /// 26

Gas Energy Ratio» Gas Energy Ratio (GER) is defined as natural gas energy / total fuel energy» Driven principally by the minimum diesel injection quantity that produces stable combustion 27

Combustion 28

Rapid Torque Response diesel like» HPDI t90 response, relative to base diesel, as a function of sweep (t90 time from 0% to 90% of rated torque at each speed) 29

Overall Performance Measures Peak Efficiency (%), including hydraulic pump parasitic load* Road duty cycle BSFC relative to diesel. HPDI includes hydraulic pump parasitic* Tailpipe GHG over various transient cycles, relative to diesel up to 46% 1.01 1.03 0.80 0.82 Road duty cycle Gas Energy Ratio (GER) 0.94 0.95 World Harmonized Test Cycle GER 0.91 0.93 Emissions NOx, CH4, nmhc, CO and PM emissions demonstrated to meet Euro VI requirements. *Average LNG pump parasitic load over certification or typical operating cycles corresponds to a fuel consumption increase of approximately 2% /// 30

GHG Compliance Impact of HPDI 2.0» Phase II rule requires CO 2 reduction of approximately 5% for a HD engine by 2027 compared to 2017 baseline» HPDI offers potential for ~20% CO 2 e reduction on a HD engine» Without further engine modifications, this provides potential transfer of ~15% CO 2 saving to a HD tractor Could lower compliance cost by avoiding more expensive CO 2 reduction options such as Waste Heat Recovery Or it could be used to generate credits Assumptions: Fuel energy consumption 2% greater than base diesel Fuel consumption: 8% diesel, 92% NG by energy 0.2% CH4 slip CH4 GWP of 34 20% 31

Effect of Increasing Gas Pressure (McTaggart Cowan et al., SAE 2015 01 0865) /// 32

Summary HPDI 2.0 for Class 8 Trucks» HPDI 2.0 is designed for high BMEP (~24 bar), high efficiency (~45%), Class 8 (or equivalent) on road engines with displacement of 10 to 15L» Performance, efficiency and emissions and diesel like transient response confirmed on two separate EU VI engine platforms» Methane emissions are controlled to extremely low levels incylinder (<0.2% slip)» GHG savings in the range of 20% are possible» There is future potential for enhancements (e.g. increased injection pressures for higher efficiency). /// 33

QUESTIONS? Mark Dunn Mdunn@westport.com www.wfsinc.com 34