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Copyright Statement All rights reserved. All material in this document is, unless otherwise stated, the property of FPC International, Inc. Copyright and other intellectual property laws protect these materials. Reproduction or retransmission of the materials, in whole or in part, in any manner, without the prior written consent of the copyright holder, is a violation of copyright law.

FPC-2 COMBUSTION CATALYST BOSCH SMOKE TESTS FOR PACIFIC NATIONAL KOORAGANG NSW October, 2009 Prepared by: Fuel Technology Pty Ltd 2 Tipping Road KEWDALE WA 6105 Australia Tel: (08) 9353 1016 Fax: (08) 9353 1013 E-mail fueltech@iinet.net.au ABN 83 100 293 490

C O N T E N T S Executive Summary Page 1 Introduction Page 2 Test Method Page 2 Instrumentation Page 2 Test Results Page 2 Benefits of Reduced Exhaust Particulates Page 3 Net Annual Savings Page 4 Greenhouse Gas Emissions Page 4 Conclusion Page 4 Appendix A Bosch Smoke Patches

EXECUTIVE SUMMARY The FPC Combustion Catalysts manufactured and marketed by Fuel Technology Pty Ltd have proven in laboratory and field testing to reduce fuel consumption in the 2% to 8% range under comparable load conditions and substantially reduce carbon emissions. Several renowned International testing facilities around the world have verified these benefits including Southwest Research Institute (SwRI) San Antonio, Texas, where tests were conducted to Association of American Railroads recommended Test Procedure RP-503. A recent study and subsequent paper written for BHP Billiton Iron Ore by University of Western Australia Chemical Engineering, Professor Zhang, states that Fuel Technology s Combustion Catalyst will provide fuel efficiency savings of a minimum 2.5% at a 97% confidence level and the chemistry has a sound scientific basis (Report available upon request). An FPC-2 fuel efficiency study conducted early 2009 on Pacific National locomotives operating between Port Augusta power station and Leigh Creek coal mine resulted in an average 4.1% fuel saving along with substantial reductions in exhaust particulates. Further fuel efficiency tests were then scheduled to be conducted on locomotive 9034 at Kooragang Island Newcastle at which time Fuel Technology conducted Bosch Smoke Tests where an average 45% reduction in particulate exhaust emissions were recorded following FPC treatment of fuel. Pacific National personnel also commented on the significant visible reduction in exhaust smoke of test Loco following the introduction of FPC. Page 1

INTRODUCTION Untreated Bosch Smoke tests were conducted on 90 class loco 9034 on 20 August 2009 after which fuel was manually treated with FPC Combustion Catalyst at time of each refuelling. Treated tests were then conducted on 12 October 2009. The results of this present study are documented in this report. TEST METHOD The Bosch Smoke tester pump nozzle is inserted into exhaust stack and when activated, draws one third of a litre of exhaust particulates through a white blotter paper. This blotter paper is then evaluated by infrared light with a Bosch evaluation number assigned between 0.0 (white) and 9.9 (black). The Bosch Smoke Tests are conducted to maintain general conformity (where practical) with the Australian Design Rule ADR30/00 diesel engine exhaust smoke emissions and the Bosch smoke meter operating instructions. INSTRUMENTATION Bosch Smoke meter sampling pump ETD 020.00 Bosch infrared evaluator ETD 020.50 TEST RESULTS Bosch Smoke Tests Bosch smoke measurements were conducted at the four test throttle Notch settings 2, 4, 6 & 8. The results of these tests are summarised in Table No 1. The smoke patches are contained in the Appendix. Page 2

TABLE 1 LOCOMOTIVE 9034 (Bosch assigned evaluation number) Notch Untreated Treated Change 2 0.7 0.4-43% 4 0.6 0.2-66% 6 0.8 0.5-37% 8 1.0 0.6-40% AVERAGE 0.775 0.425-45% BENEFITS OF REDUCED EXHAUST PARTICULATES A reduction in exhaust particulates equates to a more complete combustion of the fuel which in turn results in fuel efficiency savings, lower soot levels in lubricating oil and reduced wear rates and carbon build up in combustion areas. Following treated tests loco 9034 injectors were removed and as photo indicates, were in extremely clean condition. Injectors from Loco 9034 following seven weeks FPC treatment of fuel. (Injectors wiped with soft workshop rag only) Page 3

Experience in North America has also, due to reduced hot carbon emissions, demonstrated a substantial reduction in track wayside fires following the introduction of FPC Combustion Catalyst to the fuel supply. NET ANNUAL SAVINGS Engineering test procedures conducted by some of the world s leading test facilities and to AAR RP503 have proven FPC to provide a minimum fuel efficiency saving of 1.7% when tested on as new engines run at their most efficient mode. (Cost of FPC is 0.7% of efficiency gains). Example of savings to Pacific National Rail are as follows: 100,000,000 litres fuel per annum @ cost of $0.70 per litre. 1.7% fuel efficiency $718,000 net saving per annum. 3% fuel efficiency $1,634,000 net saving per annum. 4% fuel efficiency $2,339,000 net saving per annum. GREENHOUSE GAS EMISSIONS Applying formula outlined in Worksheet 1 of the Electricity Supply Business Greenhouse Change Workbook the following reduction in Greenhouse Emissions will apply: 1.7% fuel efficiency 4,574 tonnes per annum. 3% fuel efficiency 8,071 tonnes per annum. 4% fuel efficiency 10,762 tonnes per annum. CONCLUSION These Bosch Smoke emission tests conducted on Pacific National locomotive 9034 provide clear evidence of reduced exhaust particulates in the region of 45% providing further evidence of a more complete burn of the fuel following the introduction of FPC Combustion Catalyst to fuel supply. Page 4

Appendix A Bosch Smoke Patches