Vehicle Transportation: Technology & Alternative Fuels

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Vehicle Transportation: Technology & Alternative Fuels Reg Modlin Director, Environmental Affairs USAEE/IAEE North American Conference September 25, 2006 P:/Strategic Planning/SBD 2006/Summary Report/SBD book 2006_6_8_Review_v2.ppt CD / S / C 0

Global Petroleum Perspective Global demand for petroleum is increasing Consumption by emerging economies like China are projected to grow by 50% in the next 5-10 years Supply is constrained: Geopolitical unrest Acts of God such as Hurricane Katrina Political challenges exist to reduce greenhouse gas emissions while still fulfilling society s mobility needs The transportation sector consumes more than one half of the worlds oil The automobile represents a large portion of the transportation sector Millions of Barrels per Day Million Barrels per Day 140 120 100 80 60 40 20 0 '60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30 45 40 35 30 25 20 15 10 5 World Oil Consumption 1960-2030 World Oil Consumption By Sector, 2003 Source: Energy Information Administration (EIA) 0 Commercial Electrical Residential Industrial Transportation Source: Energy Information Administration (EIA) 1

Automobile Industry Contribution Our objective is to achieve a sustainable road transportation system by focusing on technological advances in energy sources, efficiency and innovation Industry continues to develop and implement advanced technologies and alternative fuels Optimization of conventional technologies Hybrid technology Fuel cell technology Renewable fuels Insert Picture Here Large scale changes, such as a renewable fuel infrastructure, require the commitment of many stakeholders Automobile Companies Fuel Manufacturers/Distributors Government Investors 2

DaimlerChrysler Strategy DaimlerChrysler s powertrain strategy: Invest in technologies focused on fuel efficiency and alternative fuels Provide multiple solutions tailored to a variety of customer needs 3

DaimlerChrysler s Portfolio of Technologies Enabling Technologies Optimization of Combustion Engines Vehicle Driveline Efficiencies Diesel/Bio-Diesel Technology Ethanol/E85 FFV technology Hybrid Technology Fuel Cell Technology 4

World Engine Inline 4 cylinder - three displacements Dual-cam Variable Valve Timing (VVT) Four valves per cylinder Dual overhead camshafts Electronic Throttle Control (ETC) High compression Manifold flow control valves Up to 5% fuel-efficiency improvement over predecessor engine. 5

Continuously Variable Transmission (CVT) Offers improved driveability, fuel economy and performance. Allows engine to operate at optimum combination of speed and throttle opening and fuel economy for power requirement. Provides a wide ratio (6.0-to-1) spread of gears from first gear to overdrive for best performance over all vehicle speeds. Up to 6% fuel-efficiency improvement over predecessor transmission. 6

World Engine/CVT Technology Applications Dodge Caliber The 2007 Dodge Caliber, Jeep Compass and Jeep Patriot feature the all new, more fuelefficient World Engine and continuously variable transmission (CVT). Jeep Compass - Concept Jeep Patriot - Concept 7

Multiple Displacement System (MDS) V8 Mode - No cylinders deactivated The engine seamlessly transitions from V8 mode to V4 mode in 40 milliseconds. V4 Mode - Four cylinders deactivated Oil control valves closed Valves operating, combustion occurs The MDS systems improves fuel economy by up to 20% under certain driving conditions. Oil control valves open Valves deactivated, no combustion occurs 8

MDS Technology Applications DaimlerChrysler currently has Eight models that feature the Multiple Displacement System (or MDS) fuel saving technology. The Chrysler 300, Dodge Magnum, Dodge Charger, Jeep Grand Cherokee, Dodge Durango, Dodge Ram, Jeep Commander, and Chrysler Aspen all feature MDS. By 2007, MDS is estimated to save over 60 million gallons of gasoline per year. 9

Advanced Diesel Technology Advanced diesel technology is available today and can help reduce our nation's dependency on foreign oil. Diesel can improve fuel economy by an average of 30% and lower CO 2 emissions when compared to equivalent gasoline engine. According to a J. D. Power and Associates study, light duty diesels could grow from a 3% market share in 2004 to 12% in 2012. 10

DaimlerChrysler BLUETEC Diesel Technology The worlds cleanest diesel Capable of achieving 50-state emissions 11

Hybrid Technology Hybrid Cooperation: Sets standards with a family of products Increases technical expertise Shares elements of cost, risk, and benefits Pools volume leading to economies of scale Leap frog existing technology DC-GM-BMW MoU, 12.09.2005 Technology Application: Delivers up to 25% better fuel economy while retaining towing capacity Engine technology Improvements to optimize performance and fuel economy: Variable Cam Timing Increased MDS Operation EGR (Exhaust Gas Recirculation) Rapid Heat up cooling system 12

DaimlerChrysler: A History of Leading Fuel Cell Development Timeline of DaimlerChrysler Fuel Cell Vehicles 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Future Hydrogen Passenger Cars Phase 1 Phase 2 Necar 2 Necar 4 Necar 4 Advanced Chrysler Natrium F-Cell Methanol Passenger Cars Necar 3 Jeep Commander Necar 5 Hydrogen Light -Duty Vehicles Machbarkeitsstudien feasibility studies and und market Markt preparation -Vorbereitung Fit fit for für daily den Alltagsbetrieb use Necar 1 Sprinter Hydrogen Heavy -Duty Vehicles NeBus Citaro 13

DaimlerChrysler Hydrogen Fuel Cell Activities Worldwide leading Experiences with DaimlerChrysler Fuel Cell Vehicles 60 F-Cell vehicles in customer hands (since 2004) 36 Buses (Citaro) Europe, Australia, China 3 Sprinters at UPS Europe, USA ~ 495.000 miles* ~ 837.000 miles* ~ 37.000 miles* DaimlerChrysler as pioneer of Fuel Cell Vehicle Daily operation of more than 100 FCV s all over the world Long experience with FCV s (first FCV in 1994) Broad portfolio of FCV s: passenger cars, buses, vans Operation of FCV s by customers in different climate zones with varying ambient temperatures Basis for technology validation and market development (customer acceptance, infrastructure build-up, Codes & Standards) 14

Bio-Fuels: Three Major Benefits Energy Environment Agriculture Energy security Reduce dependency on petroleum-based energy sources Diversify energy sources Reduce criteria emissions at local, urban, metro, and national levels Reduce greenhouse gas emissions Create new markets for agricultural crops 15

E85 Bio-Ethanol: Flexible Fuel Technology Since 1998, the Chrysler Group has sold 1.5 Million E-85 Flexible Fuel cars, trucks, and minivans without cost to the customer DaimlerChrysler s is planning to grow its E85 FFV volume to 500,000 FFVs per year by 2008 with dramatic increase for 2007 Ethanol Challenges: Low concentration ethanol blends (E10, E6) present emission challenges Infrastructure limited availability of high concentration ethanol blends (E85) Volumetric fuel economy is reduced due to lower energy content Ethanol from corn is not currently cost competitive on an energy content basis with petroleum-based fuels 16

Development of More Efficient Ethanol Processes Ethanol can be produced from cellulosic material such as switch grass or wood chips Cellulosic ethanol promises greater greenhouse gas reductions, and greater yields per acre Government/Industry research into cellulosic ethanol production will yield a more cost effective solution 17

E85 Flex-Fuel Technology Applications Dodge Ram Chrysler Town and Country Chrysler Aspen Chrysler Sebring Dodge Caravan Jeep Commander Dodge Dakota Dodge Grand Caravan Jeep Grand Cherokee Dodge Durango 18

Bio-Diesel The 2007 Jeep Grand Cherokee and Dodge Ram diesel vehicles are both approved for B5 use The Jeep Grand Cherokee is shipped to customers with B5 fuel in the tank The key to the success of biodiesel is the generation of a high quality fuel specification 19

Next Energy B20 Specification Project DaimlerChrysler is partnering with Next Energy, Bosch, Delphi, Biodiesel Industries, DoE, DoD, Michigan State University, and Wayne State University to develop a consensus specification for B20 A consensus specification is needed to support the use of B20 in retail applications, which can be used in diesel vehicles that are currently on the road Parameters and limits which are not yet clearly understood include: Stability Density Viscosity Cold Operability Emissions impacts 20

B20 Biodiesel Technology Application Dodge Ram Trucks are successfully operating on B20 in EPACT fleets nationwide Proves that B20 CAN be used, if proper quality controls are in place For 2007 MY, B20 that meets Mil Spec is approved for use in fleet vehicles 21

Conclusion Everyday, the auto industry works on a broad portfolio of technologies to improve the energy efficiency of transportation For the near-term, improving gasoline and diesel internal combustion engine (ICE) technology will be the focus for volume production For the mid-term, hybrid vehicles utilizing electric drive systems, integrated power modules and advanced batteries are being developed In the long term, fuel cell vehicles with on-board hydrogen storage from a national hydrogen infrastructure will emerge Ethanol from cellulose and biodiesel from multiple feedstocks will emerge as important transportation fuels 22