Climate Change and the

Emerging Strategies of

Mitigation

Increasing Gas Generator Set Efficiencies

Bio-Fuel developments

2

Outline

Cummins Power Generation Overview

CHP Overview

Cummins CHP Solutions

Cummins CHP Experience

3

Cummins OverviewCummins Power Generation� Cummins, Inc: $13B Sales (2007), 33,000 employees

� Cummins Power Generation: $2B Sales, over 1m units in service

� The “Power of One”: Integrated Design, Sourcing, and Support of engine, alternator, controls, switchgear

4

Global Distribution and Support

Cummins global distribution covers 160 Cummins global distribution covers 160

countries, with 550 distributors and over 5,000 countries, with 550 distributors and over 5,000

service and parts outlets.service and parts outlets.

5

CHP Overview

Cogeneration, or Combined Heat & Power (CHP), utilizes the full potential of the input energy.

CHP can reclaim over half of the otherwise lost fuel energy

6

Mechanical

Thermal

Electrical output 39%

HT circuit (85- 95°C) 15%LT & Oil circuit (50- 60°C) 9%

Exhaust (120°→35° + unburned) 5%

Generator losses

1%Cooling circuit CAC 2.5%

Exhaust (→ 120°C) 25%

Engine radiation 3.5%

Recovered

Energy

88%

Losses

12%

Efficiency Benefit

Heat Balance: QSV91G

7

CHP Schematic

8

CHP Overview

CHP is not a new technology

�Used in Thomas Edison’s first electric generating plant in 1891

�Used in industrial, institution, and municipal applications today

Governments see the benefit for both fuel savings and emissions

�US Department of Energy has a goal to double CHP use by 2010

�European Commission has set similar targets

9

Environmental Benefit

Reduce demand on national electric grid

�Power often produced by high emitting coal-fired plants

�Reduction in CO2, NOx, and Particulates

Higher efficiency means conservation of natural resources

10

Hospitals

Greenhouses

Hotels

Industrial/Chemical Plants

Manufacturing Facilities

Commercial Facilities

Government Facilities

Colleges and Universities

Food Processing Plants

Health Clubs

Swimming Pools

Nursing Homes

District Heating

Landfills and Sewage Treatment Plants

Coal Mining and Oil Fields

Typical CHP Applications

11

Emerging Technologies

Define the objectives

Identify the barriers

Identify the technology

The development cycle.

12

Key ARES Program Goals for 2010:50% Efficiency at 0.1 g/hp-hr NOx

10% lower operating cost, Increased fuel flexibility

Cummins Targets

39%

44%

47%

50%

35%

40%

45%

50%

55%

2001 2005 2007 2010

Bra

ke T

herm

al E

ffic

ien

cy

Planned work is split into 3 phases.

Each phase ends with a Field test to demonstrate:

1. 44% BTE in 20052. 47% BTE in 20073. 50% BTE in 2010

13

Cummins Targets

1

0.10.05 0.02

0

0.2

0.4

0.6

0.8

1

1.2

2001 2005 2007 2010

NO

x (

g/h

p-h

r)

Cummins Targets

39%

44%

47%

50%

35%

40%

45%

50%

55%

2001 2005 2007 2010

Bra

ke

Th

erm

al E

ffic

ien

cy

Efficiency Targets Emissions Targets

Addressing Customer DG Needs• DOE Advanced Reciprocating Engine System

(ARES) Program was Launched• Targeted gains for Distributed Generation

Market are:- 50% Fuel Efficiency at 0.1 g/hp-hr NOx- 10% lower operating cost

Program Phase I II III

14

Aggressive Gas

Cummins Fuel Classification

From Fuel Gas Analysis

Limits corrected to LHV 36MJ/m3

Units mg/Nm3CH4

FuelCateg

ory

TOTAL SULPH

UR

TOTAL GASEOU

S SILICON

TOTAL HALOG

EN

Standard operation with low BTU servicing.

C 100-1000

1-20 1-100

Standard low BTU Operation with increased servicing

D 1001-2000

21-40 101-200

Site specific special servicing required

E >2000 >40 >200

15

SiteEngineHours

Fuel Clas

s

Sulphur

mg/nm3

Silicon mg/nm

3

Halogen mg/nm3

HoursSpark Plugs

HoursOil

Drain

HoursCylinder heads

Operational Comments

Betton Abbots1 x 1370kW

5,700 E 4 29 203 1500 1500 10,000**Predicted head change

Broadpath2 x 1370kW

5000 E 22 98 61 1000 500 7,000Predicted Head change.

Burnhills1 x 1570kW

8,500 E 22 30 214 1000 1500 7000

Regap plugs 500hrsEx Betton Abbots

Dunbar2 x 1750kW

18,500 E 17 50 223 1500 1500 7500Regap plugs 750hrs

**Pluckley1 x 1370kW

11,000 C 2 11 46 3000 3000 700050% load operation

Westbury1 x 1370kW

12,000 E 23 41 131 1000 1000 7000 **Ex Pluckley

Ardley

1 x 1750kW500 C 0 8 54 1500 1500 10000

EstimatedMaintenance

Whitehead

2 x 1570kW0 E 62 88 93 1000 500 7000

Installed July 07Comm SeptHigh H2SG1 Ex Burnhills

Dunbar 3

1 x 17500 E 17 50 223 1500 1500 7500 Install Aug 07

Jaguar Site6 x 1530kW

55,000 A 0 0 0 2000 4000 30,000Base Engine reference.

16

Strategy for achieving ARES goals:

Improve closed cycle efficiency

Explore advanced combustion concepts

Improve predictive models

Improve air handling

Reduce friction contribution

Improve controls

New sensing technology

Waste heat recovery

Higher efficiency alternator

Long life ignition system

Explore aftertreatment technologies

17

Key technologies being explored

High efficiency turbo charging

Miller cycle

Advanced lean burn concepts

Diesel pilot ignition

High Pressure Direct Injection (HPDI)

Stoichiometric combustion with EGR

HCCI

Turbo compound

Bottoming cycle

High efficiency alternator

18

ARES Phase I Efficiency

Improvements

Eff

icie

ncy

Baseline Miller Cycle Increase

BMEP

High

Efficiency

Turbo

Reduced

RPM

Technical Feature

19

NOx Control Technologies

Miller Cycle Engine� The Miller cycle engine is an example of reduced NOx emissions

due to Charge Air Cooling.

� As shown in figure below, intake valve remains open for an additional 30 degrees thus reducing the effective engine displacement.

� ‘Back flow’ due to late intake valve open is compensated by density of charge.

� Reduced combustion chamber temperature at TDC results in lower NOx.

� Reduced engine size also provides substantial reduction in frictional losses, thus increasing fuel efficiency

20

Exhaust Gas Recirculation (EGR)� Displacing an engine’s intake air with inert material can

reduce NOx emission.

• EGR is a form of intake air dilution.

Selective Catalytic Reduction (SCR) by Urea:• Typically uses nitrogen containing ammonia or urea as

reducing agents to achieve high NOx control (up to 90%+).

NOx Control Technologies

21

Particulate Matter Control Technologies

Diesel Oxidation Catalyst (DOC):• PM emissions composed of carbonaceous particles, soluble organic

fractions (SOF) and sulphates among other things.• Oxidation catalyst reduce SOF but have little impact on other components.• Typically reduce PM by 20-30%.

Diesel Particulate Filter (DPF):• Filters, also called traps, filter PM from exhaust stream with

subsequent oxidation of captured PM.• Ceramic wall-flow monoliths are used as filter material in most cases.

Diesel Fuels:• Diesel fuel properties impact diesel exhaust emissions.• Many after treatment technologies are sensitive to sulphur in the fuel.

22

Emission Control OptionsEmission Control Options

Diesel oxidation catalyst (DOC)

Catalyzed Soot Filter

Active regenerating filter

CRT

Miller Cycle

EGR

Lean NOx

Lean NOx + HC

Plasma assisted lean NOx

NOx adsorber

Selective catalytic

reduction(SCR)

NOx

Exhaust and Emission Control Systems

PM

RED: Most commonly used

Controls Reduction %

Diesel Oxidation Catalyst (DOC) PM 20 - 40

Catalysed Soot Filter PM above 90

CRT PM above 90

EGR NOx up to 50

SCR NOx up to 90

PM 20 - 40

23

Commercialization

Cummins releasing Hi efficiency Products

2 MW using light miller cycle & adaptive engine controls

1 MW with lower temperature combustion, higher power density, increased turbo efficiency and adaptive engine controls

24

Commercialization-Customer

BenefitsCummins Gensets

1750kw 2000kw 1000kw

Improvements

Emissions 0.7 0.5 0.5

(g/HP-hr NOx)

Efficiency 38% 40% 43%

(ISO elec.)

Emissions are reduced 28%

Fuel consumption is reduced 5% and 11.5% respectively

25

Biodiesel offers the environmental benefit of renewable energy

Can also help reduce dependency on imported oil

Provides overall emissions advantage with reduced PM, HC, CO and CO2 (production/use cycle basis)

Cummins is working with industry groups to standardize fuel specifications

Cummins supports the responsible production and use of biodiesel

We will use biodiesel in our operations where appropriate and produce products that are capable of operating with biodiesel

Biodiesel must not harm the availability or economics of the global food supply

Rain forests and water are resources that must be sustained

Biodiesel: Environmental Driver

26

B20 Approval

Cummins Announces Approval of B20 Biodiesel Blends – March 21, 2007 (everytime.cummins.com)

Approval limited to targeted engines - Additional approvals under evaluation/testing

Requirements specified in Cummins Service Bulletin 3379001Vehicle/equipment OEM’s have their own specific requirements

B20 approved engines:

� On-Highway: ISX, ISM, ISL, ISC and ISB engines certified to EPA '02 and later emissions standards, and ISL, ISC and ISB engines certified to Euro III

� Off-Highway: QSX, QSM, QSL, QSC, QSB6.7 and QSB4.5 engines certified to Tier 3/Stage IIIA, QSM Marine and QSM G-Drive.

� All future products will be compatible with biodiesel B20

27

BQ-9000

For North American markets, Cummins Inc. requires that the biodiesel fuel blend be purchased from a BQ-9000 Certified Marketer.

The B100 biodiesel fuel used in the blend must be sourced from a BQ-9000 Accredited Producer.

Certified Marketers and Producers can be found at the following website: http://www.bq-9000.org.

For areas outside of North America, the local Cummins representative must be consulted for applicable fuel quality standards.

28

Biodiesel Fuel Storage

Use biodiesel fuel within six months of its manufacture. Biodiesel has poor oxidation stability, which can result in long term storage problems. For this reason, Cummins Inc. does not recommend using biodiesel for low use applications, such as standby power or seasonal applications. Consult your fuel supplier for oxidation stability additives.

The poor oxidation stability qualities of biodiesel can accelerate fuel oxidation in the fuel system, especially at increased ambient temperatures.

29

Fuel Water Separation

Biodiesel has a natural affinity to water, and water acceleratesmicrobial growth. Storage tanks must be equipped with a fuel water separator to make sure that water is stripped out before entering the vehicle tank.

Make sure that the vehicle and storage tanks are kept full to reduce the potential for condensation accumulating in the fuel tank.

Due to the solvent nature of biodiesel, and the potential for “cleaning” of the vehicle fuel tank and lines, new fuel filters must be installed when switching to biodiesel on used engines. Fuel filters will need to be replaced at half the standard interval for the next two fuel filter changes.

30

Biodiesel Fuel Storage (cont.)

If biodiesel is used for seasonal applications, the engine system must be purged before storage by running the engine on pure diesel fuel for a minimum of 30 minutes.

Care must also be taken when storing biodiesel in bulk storage tanks. All storage and handling systems must

be properly cleaned and maintained. Steps must be taken to minimize moisture and microbial growth in storage tanks. Consult your fuel supplier for assistance in storing and handling biodiesel.

31

Capable engine

Quality fuel

Capable Vehicle/ Equipment

Quality blend/ delivery

Successful

Application

B100 Accredited Producers

B20 Certified Marketers, EMA spec

Approved engines onlyApproved Vehicles/ Equipment

Application Requirements,i.e. fuel storage,seasonal use, etc.

Summary – Key Requirements

32

All Cummins products are approved for use with B5.

Cummins has completed the necessary testing and evaluations and developed guidance to ensure that customers can reliably operate selected engines with confidence using B20 fuel.

Only B100 biodiesel that meets ASTM 6751 or EN14214 and the EMA B20 blend test specification can be used. There are no specifications to define blends above B20. Recent national audit shows quality is still a big issue in the industry.

Cummins is currently focused on supporting the B20 release and continued validation efforts to approve additional engines.

Critical needs are to improve B100 standards, create B20 standards and improve biodiesel quality.

34

William Floyd School District

Prime Movers

2 x 1250 kW @ 13.2 kVNatural Gas1 x 1500 kW @ 13.2 kVDiesel

Heat Recovery

Produces High Grade Hot Water From HT Circuits and Exhaust gas for Space Heating and absorption cooling

Operation

On-Peak Baseload Generation, Parallel with Utility, Island/Standby Capability Diesel Set Used for Summer Curtailable and Maintenance Power

35

Acushnet Company / Titleist Ball Plant 2

36

Acushnet Company / Titleist

Prime Mover

1 x 2000 kW @ 13.2 kVNatural Gas

Heat Recovery

Produces High Grade Hot Water For Manufacturing and Space Heating From HT & LT Circuits

80 PSI Steam Produced By Exhaust Gas for Manufacturing

Operation

Continuous Baseload Generation, Parallel with Utility, Island/Standby Capability

37

Columbus Water Works – Columbus, GA

38

Columbus Water Works

Prime Mover

2 x 1750 kW @ 12.47 kV

Dual FuelDigester Gas / Natural Gas

Heat Recovery

Produces High Grade Hot Water For Process Heating From HT & Exhaust Gas.

Low Grade Hot WaterFrom LT Circuit for Grease Tank Heating.

Operation

Continuous Baseload Generation, Parallel with Utility, Island/Standby Capability

39

40

Hazelwood VHP Nursery, Kent, UK� Customer: Nedalo UK (CHP packager/IPP)� 6 x 1.5 MW Cummins QSV91G Gas Gensets� 9.2 MW Electrical Output� 11,58 MW(th) hot water � “Tri-gen”: Uses CO2 for plant growth

� Electrical Efficiency 36.5%� Total Efficiency 80.6%

Benefits� Upgrade for old oil-fired boiler� Liquid CO2 plant food replaced

with SCR-cleaned exhaust� Surplus electricity sold to grid� Lower emissions for electricity

and eliminate fuel and CO2delivery vehicles

Hazelwood Greenhouse, UK