Cummins 2010 Update EPA NA Emission Standards

Cummins 2010 Update

EPA NA Emission Standards 5. 0 4. 5 NOx – g/hp-hr 4. 0 EPA ’ 98 3. 5 3. 0 2. 5 EPA ’ 02 2. 0 1. 5 EPA ’ 07 1. 0 0. 5 0. 0 EPA ’ 10 0. 01 0. 02 0. 03 0. 04 0. 05 0. 06 0. 07 0. 08 Particulate – g/hp-hr 2 0. 09 0. 10 0. 11 0. 12 0. 13

Global On-Highway Standards 5. 0 4. 5 NOx – g/hp-hr 4. 0 U. S. ‘ 98 3. 5 EURO IV 3. 0 2. 5 EURO V 2. 0 U. S. ‘ 02 Japan 05 Japan 09 1. 5 US ‘ 07 1. 0 0. 5 0. 0 U. S. 10 0. 01 0. 02 0. 03 0. 04 0. 05 0. 06 0. 07 Particulate – g/hp-hr 3 0. 08 0. 09 0. 10 0. 11 0. 12

Diesel Exhaust Fluid (DEF)

Diesel Exhaust Fluid (DEF) § Diesel Exhaust Fluid is 32. 5% strength urea water solution with high purity requirements. The specification of Diesel Exhaust Fluid is currently defined according to the DIN 70700 and the ISO 22241 -1 specifications. § Water purity: ISO grade 3, produced for example by single distillation, de-ionization, ultra-filtration or reverse osmosis. 5

DEF Specifications § ISO 22241 -1 Quality and handling requirements: Standard used for bidding specifies the quality characteristics of DEF needed to operate the SCR system on your vehicle. It is a final, published International Standard. § ISO 22241 -2 Test methods, specifies test methods required for determination of the quality characteristics of DEF. It is also a published International Standard. § ISO/DIS 22241 -3 Handling, transportation and storing, describes how to deal with DEF in practice. It is much like the CEFIC QAGD above. It is also a published International Standard. § ISO/DIS 22241 -4 Refilling interface, describes elements relating to refilling components. Draft has been submitted for approval and final version is due in 2009. 6

Why 32. 5% for DEF? § The eutectic 32. 5% wt urea -water solution is the preferred form for use in SCR - A eutectic mixture is a mixture of two or more phases in a composition that: 1) has the lowest freezing point and 2) where the phases simultaneously crystallize to maintain the solution’s concentration 7 32. 5% urea/water solution has the lowest freezing temperature -11°C (11°F)

Why 32. 5% for DEF? § The 32. 5% solution provides the lowest crystallization point while also maintaining the solution in constant phase – Urea and water freeze together at 11° F so the frozen solution has the same 32. 5% wt – When thawed it will remain at the same concentration of urea solution feeding the SCR system § What happens at different concentrations of Urea … – Greater concentrations → Urea freezes before water – Reduced concentrations → Water freezes before Urea 8

DEF Properties § Non-toxic and non-flammable § Safe to handle and store § Poses no serious risk to humans, animals, equipment or the environment if properly handled § The product is slightly alkaline with a p. H of approximately 9. 0 9 Acidic p. H

Cummins Aftertreatment System Architecture DEF Dosing Valve sprays a fine mist of DEF into hot exhaust stream Cummins Particulate Filter Selective Catalytic Reduction (SCR) Catalyst Decomposition occurs in 3 steps within the Decomposition Reactor • Step 1: Evaporation • Step 2: Thermolysis • Step 3: Hydrolysis 10

DEF Storage § Shelf life of DEF is a function of ambient storage temperature § ISO Spec 22241 -3 details the Storage, Handling and Shelf Life minimum expectations for DEF throughout the distribution chain § Expectations for shelf life as defined by ISO Spec 22241 -3 are the minimum expectations for shelf life when stored at constant temperatures 11

DEF Storage Data § With extrapolation, the storage viability for DEF stored at temperature higher than 70ºC (158ºF) is short § Although certain storage data exist, the decomposition data at elevated temperature is still necessary and is in progress 12

DEF Freeze Point § Freezing of DEF begins at about 11°F § Once the DEF has melted, it can be used without problem. The first melted drop has the same consistency as defined in the Diesel Exhaust Fluid specification § The SCR system is designed to provide heating for the DEF tank and supply lines which will reduce the melting time for frozen DEF § If DEF freezes, start up and normal operation of the vehicle is not inhibited so the operator is not impacted 13

DEF Storage & Handling Recommendations § Storage temperature below 86° F is recommended to maintain shelf life § Storage temperature above 11° F is recommended to avoid freezing § The maximum temperature of stored diesel exhaust fluid on the vehicle should not exceed 122º F 14

DEF Storage & Handling Conclusions § DEF will degrade in time and this is dependent on temperature and exposure to sun light § Stated shelf life is based on continuous exposure to heat and sunlight. In reality, continuous exposure is unlikely § Concerns over ‘shelf-life’ have been over-stated 15

DEF Quality System API Certification § Currently, the mark has not yet been approved. § Most likely it will feature the full name American Petroleum Institute in a square quality symbol § Website address likely a form of 'API-DEF. org/. com/. net' – Licensing renewal on an annual basis – Fees still TBD 16

DEF Service Tool § A service tool called a refractometer is in development. § The refractometer measures the concentration of urea in the DEF. § May provide one quick, simple way for urea quantification. 17

DEF Infrastructure § Major investments in DEF production, pump and container equipment, transportation and distribution channels to serve the on-highway market are being made now and will be in place by 2010 § Pilot Travel Centers recently announced their intent to carry DEF at the pump 18

Urea Producers 2007 Domestic Urea Capacity 8. 2 Million Tons 19 § Terra Environmental Industries § Potash Corporation / PCS § CF Industries § Agrium § Other Market Players – Industrial Services Solutions – Yara – Dyna Nobel

DEF Producers § Terra Environmental Industries – Considered to have a leadership position in the market – Currently manufacture a DEF product: Terra. Cair™ Ultra. Pure DEF (urea liquor) – Has 4 manufacturing plants – Currently pursuing partnerships to create North American Distribution network 20

DEF Producers § Yara – Global chemical company that produces and sells industrial gases and chemicals primarily in Europe, but also has a presence in several Asian and African countries – Largest producer of Ad. Blue in Europe and interested in the US DEF market – Brenntag is their European distribution counterpart 21

DEF Producers § Dyno Nobel – Leading supplier of industrial explosives and blasting services to the mining quarrying and construction industries – Produces DEF under the name DYNOx 32 – Announced distribution agreement with Cervantes. Delgado, a marketing and distribution company focusing on urea solutions for SCR systems, in 2007 22

DEF Producers § Potash. Corp / PCS – Integrated producer of fertilizer, industrial and animal feed products – Claim to be the world’s largest fertilizer producer – Currently manufacture high purity granular urea – Exploring partnerships for distribution 23

Potential DEF Producers § Agrium – Major supplier of specialty fertilizers in the US – Has been investigating the DEF opportunity § Industrial Solution Services – Has been in the industrial urea business and has storage and distribution capacity in the US – Is taking steps to supply the mobile market in the US § CF Industries – Major Urea producer in the US – Interest in the DEF market is currently unknown 24

Example of a Major Distributor’s DEF Infrastructure System § Brenntag is the world’s leading chemical distribution company Blending, stocking, and /or repackaging the bulk material. Inventory Product arrives from the manufacturer by rail or truck to one of our many hubs located across North America. Product is delivered from the hub directly to the customer. or delivered closer to the customer for JIT delivery. 25

Specialized Urea § New reagent “Denoxium” – Developed by Kemira Oyj Industrial Chemicals in Finland – Mixture of urea, ammonium formate and pure water, and meets the DIN 70070 standard – Claims to be “fully compatible and interchangeable with DEF” – Usable down to -30 o. C (-22 o. F) which may eliminate the need for heating systems on DEF tank and lines – Performance difference between DEF and Denoxium not understood - manufacturers own data shows differences in NOx conversion performance – Not approved by CES due to corrosion issues in DEF doser pump 26

What is the Real Price for Engine Quality DEF? § Automotive quality DEF is only slightly more expensive to produce as it requires a higher purity urea base stock and deionized water § Higher prices are associated with small containers and low volume suppliers § DEF prices loosely follow natural gas commodity prices so these numbers will change if there is a significant shift in NG § Also, we have heard some suppliers may have aggressive discounting initially to gain market share 27

Diesel Exhaust Fluid (DEF) Availability and Accessibility § Cummins plan for DEF availability and accessibility – We will use the existing Cummins Customer Assistance Center 1 -800 -DIESELS • Ensure they have the tools to locate DEF for customers – Dealer/distributor DEF stocking locations – DEF locator websites • Offer shipment of DEF to a customer, who is not able to obtain DEF locally, by putting the customer in touch with the closest Cummins distributor/dealer (shipping/handling at the expense of the customer) EPA 2007 Dealers 28

Current DEF Existence in North America § Cummins Filtration § The products are blended with high purity synthetic Urea dissolved in deionized water § The finished formulation is further filtered to protect internal SCR system components and enhance catalyst life 29

SCR System Review

Cummins Aftertreatment System Selective Catalytic Reduction (SCR) Catalyst Cummins Particulate Filter 31 Decomposition Reactor Diesel Exhaust Fluid (DEF) Dosing Valve

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Cummins Aftertreatment System 33

Cummins Aftertreatment System DEF Dosing Valve Cummins Particulate Filter Decomposition Reactor Selective Catalytic Reduction (SCR) Catalyst ENGINE-OUT EGR PM NOx PM PM Filter ENGINE-OUT SCR 0. 01 34 TAIL-PIPE OUT 0. 2 TAIL-PIPE OUT

Cummins Aftertreatment System § Cummins Emissions Solutions: – Particulate Filter / Decomp Reactor / SCR Catalyst – Control Module / DEF Pump / DEF Valve / NOx sensor § Certification includes specified SCR system and controls. § OEM's are required to install the system defined in the certification process. 35

Low DEF Warning & Inducement DEF (Urea) Tank Level Notification* Inducement Lamp - or - Message >10% full Stage 1 <10% full Stage 2 <5% full F E <2. 5% full F Stage 4 E F Empty, after the engine has been shut down 36 *Preliminary None DEF lamp solid Warning message None Increasing message duration and/or frequency None F Stage 3 E None DEF lamp flashing E DEF lamp flashing Amber warning lamp solid DEF lamp flashing Red lamp solid Maintenance derate (12 -17% torque derate) Inducement message Vehicle speed limited to 5 mph

Incorrect DEF Warning & Inducement Notification* DEF (Urea Mixture) Lamp - or - Message Correct DEF None Incorrect DEF Amber Lamp Solid Warning message None Incorrect DEF + 10 hrs Amber Lamp Solid Inducement message Incorrect DEF + 20 hrs, after engine has been shut down 37 *Preliminary Red Lamp Solid Maintenance derate (12 -17% torque derate) Vehicle speed limited to 5 mph

How Can I Determine how Much DEF I will Use? Example…Heavy duty Annual miles for average truck = 120, 000 miles MPG for average truck = 6 mpg 120, 000 miles / 6 mpg = 20, 000 gallons diesel fuel per year DEF usage @ 2% of fuel consumption = 400 gallons of DEF / year 400 gallons / 20 gallon tank (average size) = 20 DEF fill-ups / year 38 Example Only

How Can I Determine how Much DEF I will Use? Example…Medium Duty Annual miles for average truck = 50, 000 miles MPG for average truck = 10 mpg 50, 000 miles / 10 mpg = 5, 000 gallons diesel fuel per year DEF usage @ 2% of fuel consumption = 100 gallons of DEF / year 100 gallons / 10 gallon tank (average size) = 10 DEF fill-ups / year 39 Example Only

How Much DEF Will I Use? § Approximately 2% DEF consumption gallons of Every 50 fuel = llon of DEF 1 ga 40

2010 Aftertreatment Dash Lamps § HEST Lamp – High Exhaust Temperature § DPF Lamp – Diesel Particulate Filter § Diesel Exhaust Fluid Lamp – Low level warning MIL Lamp § Malfunction Indicator Lamp – OBD (On-board Diagnostics) – Emissions non-compliance indication 41

2010 Engine Platforms

2010 Engine Platforms & Ratings § ISB 6. 7 200 -325 HP § ISC 8. 3/ISL 9 260 -380 HP § ISX 11. 9 § ISX 15 43 310 -425 HP 400 -600 HP

2010 Technology § Mid. Range & Heavy Duty Platforms – ISB 6. 7, ISC 8. 3/ISL 9, ISX 11. 9 (new), ISX 15 – All utilize common subsystems, e. g. ECM, VGT, EGR, Aftertreatment § XPI fuel system – High Pressure Common Rail – Ultra high injection pressure – Multiple injections per cycle § SCR aftertreatment - MR & HD 2010 – Breakthrough SCR Technology – NOx conversion efficiency 90% on-highway 44

Cummins XPI Fuel System §Common rail system §Ultra high injection pressure §Pressure available on demand §Multiple injections per cycle 45

2010 Mid. Range § Comparable Fuel Economy relative to 2007 § Reliability improvement – Regeneration capability in broad range of duty cycles § NOx/PM ratio favorable for DPF passive regeneration § Same service intervals – Oil change interval same as 2004 & 2007 – Ash cleaning interval 200 K-400 K miles – Crankcase breather interval 120 -150 K miles – DEF supply pump filter 200 K miles 46

2010 Heavy Duty § § § Up to 5% MPG advantage versus ’ 07 HD engines No increase in EGR rates No increase in heat rejection NOx/PM ratio favorable for DPF passive regeneration Same service intervals – Oil change interval same as 2004 & 2007 – Ash cleaning interval 200 K-400 K miles – Crankcase breather interval 120 -150 K miles – DEF supply pump filter 200 K miles 47

Our Commitment §Right Technology §On Time 48 §Depend On Cummins