2007 Program Update 2007 Program Update for ATA/TMCfor ATA/TMC

John CampbellJohn Campbell10 June 2003

TopicsTopics

2007 Emissions Approach2007 Emissions Approach

2007 Program Objectives2007 Program Objectives& Timeline& Timeline

Aftertreatment TechnologyAftertreatment TechnologyOptions and InstallationOptions and Installation

Projected Capital CostsProjected Capital Costs

SummarySummary

ACERT™ Is The Foundation for ACERT™ Is The Foundation for 2007/20102007/2010

1998Engine

Add:– Split Inj– Oxicat

10/02Bridge

Add:– Adv Combustion– NOx AT– Diesel Part. Filter

2007ACERT

10/03ACERTAdd:– VVA– Series

Turbo

– Adv Comb– NOx

Aftertreatment

2010ACERT

• Cat's Technology Strategy & Approach– Build Upon 03 ACERT™– Continue to Enhance Engine Performance While Incrementally

Introducing Advanced Aftertreatment– Investigate Multiple NOx Aftertreatment Technologies– Provide Best Value To Customer and Optimum Technology to Truck

OEMs

2007 Program Objectives2007 Program Objectives

2003 Focus2003 Focus– Develop and Demonstrate Systems to Achieve 2007 EmissionsDevelop and Demonstrate Systems to Achieve 2007 Emissions

– Maximize Reliability & Fuel EconomyMaximize Reliability & Fuel Economy

– Minimize Product Cost & Development Cost (for OEM & Cat)Minimize Product Cost & Development Cost (for OEM & Cat)

– Develop Solutions for Heavy Duty and MidrangeDevelop Solutions for Heavy Duty and Midrange

– Performance and Durability in Engine Test CellPerformance and Durability in Engine Test Cell

– Vehicle Integration Studies with Truck OEMsVehicle Integration Studies with Truck OEMs

Deliver Customer Value

2007 Timeline & Critical Dates2007 Timeline & Critical Dates2003 2004 2005 2006 20072002

2007 NTI

2007 Platform NPI

2007 Production

Sellable Customer Truck TargetOEM Specs

2008 2009 2010 2011

Demo Truck ProductionOEM NPI

2012

Truck OEM

Demos of 07 Emissions Technology (Multiple Paths)

2001

2007 Research

2007 Field Demos

NTI = New Technology Introduction Program NPI = New Product Introduction Program

Technology Selection

PM Reduction PM Reduction TechnologiesTechnologiesand Activitiesand Activities

Wall Flow Filter TechnologyWall Flow Filter Technology

Soot Collectson Inlet Walls

Cell Plugs

Exhaust Inlet(Soot, CO,HC, NOx)

CleanExhaust Out(CO2, H2O)

Filter Substrate

• Diesel Particulate Filter (DPF)

• Collects Soot

• Oxidizes / Burns Soot

• Wall Flow Ceramic Filter

• Over 50,000 in Service

Best Value Solution will be if Engine Can be Tailored for Thermal Management

Temperature Is Key to Filter Temperature Is Key to Filter RegenerationRegeneration

Optimum is 350°C (660°F)Optimum is 350°C (660°F)

– Below 300°C (570°F) too SlowBelow 300°C (570°F) too Slow

»Low TemperatureLow Temperature

– Above 400°C (750°F) even SlowerAbove 400°C (750°F) even Slower

»NONO22 Generation Limits Reaction Generation Limits Reaction

-0.10

-0.08

-0.06

-0.04

-0.02

0.00

0.02

0.04

0.06

0.08

0.10

100 200 300 400 500

Temp (°C)

So

ot

Co

llec

ted

- S

oo

t B

urn

ed (

g/h

p-h

r)

<0

Yes

Reg

en>

0N

o R

eg

en

NeedTo BeIn ThisRegion

Temperatures Vary With Application Temperatures Vary With Application and Duty Cycleand Duty Cycle

0

5

10

15

20

25

30

35

40

45

125 150 175 200 210 220 230 240 250 260 270 280 290 300 310 325 350 400 425 450 500 550 600 650 700 800

Fre

qu

en

cy,

(ab

so

lute

)

0%

20%

40%

60%

80%

100%

Fre

quen

cy

% T

ime

Abo

ve T

empCold Route

Only 10% of Time Above 250°C

0

5

10

15

20

25

125 150 175 200 210 220 230 240 250 260 270 280 290 300 310 325 350 400 425 450 500 550 600 650 700 800

Temperature, (ºC)

Fre

qu

en

cy,

(ab

so

lute

)

0%

20%

40%

60%

80%

100%

%T

ime A

bo

ve T

em

pera

ture

Temp (°C)

Fre

quen

cy

% T

ime

Abo

ve T

empHot Route

Over 60% of Time Above 250°C

Temp (°C)

Exhaust Temperatures vary with:• Power• Installation• Application• Ambient Conditions

NOx Reduction NOx Reduction TechnologiesTechnologiesand Optionsand Options

NOx Reduction OptionsNOx Reduction Options2003ACERT™Engine

Aftertreatment NOx Technology OptionsEngine NOx TechnologyNOx

AdsorberUreaSCR

DeNOxCatalyst

AdvancedDiesel

Combustion

• Engine-Out NOx Measures Can Reduce Size / Cost of Aftertreatment• Aftertreatment Options Need to Be Evaluated for Maturity and Cost• Combination of Engine-Out and Aftertreatment May Provide Best Value

Path

TC

TC

TC

TC

ParticulateFilter

NOxAT

Engine Measures for NOx Engine Measures for NOx ReductionReduction

•Caterpillar Continues To Expand The Envelope On Engine-Out Performance

•ACERT™ Has Further Potential to:–Reduce NOx & PM Emissions

– Improve Fuel Consumption andHeat Rejection

AdvancedCombustion

•Aftertreatment Technology to Reduce NOx Emissions–Capable of Substantial NOx Reduction

•Current Development Work:– Integration of DeNOx With Engine Measures

for NOx Reduction

–System & Component Design

–System Performance & Packaging

–Catalyst Development

–Catalyst Performance Evaluation

Advanced DeNOx CatalystAdvanced DeNOx Catalyst

DeNOx Benefits

• Simple CatalyticConverter

• No 2nd FluidRequired

Drawbacks

• Lower NOx Reduction Capability

• Durability Unproven

• Fuel Penalty

ParticulateFilter

DeNOx

Diesel

ParticulateFilter

DeNOx

DieselDiesel

                             

• Low NOx Emissions Technology– Based On Industrial Technology

– Currently In-Production on Cat 3516Stationary Engine

– Potential Capability to MeetOn-Highway NOx Emission Levels

• Reaction of NOx With Urea

• Current Development Work:– System & Component Design

– System Performance & Packaging

– Catalyst Durability Evaluation

– Truck Demonstration

Selective Catalyst Reduction Selective Catalyst Reduction (SCR)(SCR)

SCR Advantages

• EstablishedTechnology

• FuelConsumptionBenefit

Drawbacks

• Urea Infrastructure

• Compliance

Cat C-12 With SCR System

UreaTank

UreaHeater

UreaPump Urea

Injector

ECM

SCRConverter

Caterpillar SCR ExperienceCaterpillar SCR Experience

1970’s 1980’s 1990’s 2000 2001 2002 2003

Ammonia SCR Truck

3516 Ethanol DeNOxAftertreatment

Urea SCR Truck Demo

3500 SCR System

Component Development

– Catalyst – Injection System– Control System

C-12 SCR Test EngineDemo’d NOx Red

Ele

ctri

c P

ow

erM

ob

ile

Modular SCR

SCR Test Evaluation

On-Highway

• Low NOx Emissions Technology– Stores NOx Between Regeneration Cycles

• Regeneration– NOx Reacts with Hydrocarbon (HC) Under

Lean Exhaust Conditions

– HC Provided by Rich Engine Cycle orIn-Exhaust Injection of Fuel

• Current Development Work:– System & Component Design

– Engine Management to Provide Rich / Hot Conditions for Regeneration

– System Performance & Packaging

– Engine Testing

NOx AdsorberNOx Adsorber

NOx Trap Benefits

• No 2nd FluidRequired

Drawbacks

• Sulfur Intolerance

• High Precious Metal Content

• Regeneration

Cat 3126 with NOx Adsorber System

Aftertreatment InstallationAftertreatment Installation Setback Distance Will Be ImportantSetback Distance Will Be Important Round Cans Are Rule Round Cans Are Rule Larger Diameter Single Can Preferable to Dual Larger Diameter Single Can Preferable to Dual

ExhaustExhaust Filter System Will Need to Be ServiceableFilter System Will Need to Be Serviceable

What was included in the EPA What was included in the EPA Cost Estimate? Cost Estimate?

Fixed Costs + Variable Costs Change + Operating Cost Change = Cost IncreaseFixed Costs + Variable Costs Change + Operating Cost Change = Cost Increase

R&DR&D hardware cost increase hardware cost increase $0.05 fuel premium$0.05 fuel premiumToolingTooling assembly cost increaseassembly cost increase CCV maintenanceCCV maintenanceCertificationCertification associated mark-upsassociated mark-ups PM filter maintenancePM filter maintenance

No fuel mileageNo fuel mileagechangechangeLower engine Lower engine maintenance due to maintenance due to 15 PPM fuel15 PPM fuel

EPA Cost Estimate EPA Cost Estimate Fixed CostsFixed Costs

R&DR&D– Total engine industry R&D is $385 M.Total engine industry R&D is $385 M.– Total industry PM treatment R&D is $87 M.Total industry PM treatment R&D is $87 M.– Total industry NOx treatment R&D is $133 M.Total industry NOx treatment R&D is $133 M.– R&D is amortized over 5 years.R&D is amortized over 5 years.– 7% per annum is used for NPV calculations7% per annum is used for NPV calculations

ToolingTooling– Light heavy duty - $6 MLight heavy duty - $6 M– Medium heavy duty - $9 MMedium heavy duty - $9 M– Heavy heavy duty - $10 MHeavy heavy duty - $10 M

CertificationCertification– $30,000 per family with all families requiring certification$30,000 per family with all families requiring certification– Total industry cost is $5 M.Total industry cost is $5 M.

EPA Cost EstimateEPA Cost Estimate Variable Costs Variable Costs

Incremental hardware costs (2007)Incremental hardware costs (2007)– NOx absorber $1080 MR $1650 HDNOx absorber $1080 MR $1650 HD– Catalyzed particulate filter $852 MR $1190 HDCatalyzed particulate filter $852 MR $1190 HD

» Assumes the muffler is eliminatedAssumes the muffler is eliminated– Clean up catalyst (oxidation catalyst) $261 MR $338Clean up catalyst (oxidation catalyst) $261 MR $338– Closed crankcase system $42 MR $49 HDClosed crankcase system $42 MR $49 HD

Incremental assembly costs (included in above dollars)Incremental assembly costs (included in above dollars) Associated markups (included in above dollars)Associated markups (included in above dollars)

– 1% warranty assumption1% warranty assumption– 4% manufacturer carrying cost on extra inventory4% manufacturer carrying cost on extra inventory– 3% dealer carrying cost on extra inventory3% dealer carrying cost on extra inventory

SummarySummary

Technical Decisions Must Be Made In 2003Technical Decisions Must Be Made In 2003

Proven Technology Winner Is Not ConfirmedProven Technology Winner Is Not Confirmed

Customer Demonstrations Required in 2005Customer Demonstrations Required in 2005

Truck Installation Impact Being InvestigatedTruck Installation Impact Being Investigated

Cost of Compliance Not Yet ConfirmedCost of Compliance Not Yet Confirmed