Efficiency & Reducing CO2

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1 Technologies for Improving Truck Fuel Efficiency & Reducing CO2 Making Transportation and Goods Movement tleaner, Cleaner & Greener June 17, 2011 Sponsored by the Diesel Technology Forum

2 Volvo Group Business Areas Mack Trucks Renault Trucks Volvo Trucks UD Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services

3 Trucking is Closely Linked to Economic Growth More than 80% of all communities in the United States are supplied exclusively by trucks Trucks hauled 10.7 billion tons of freight in % of all freight carried in the U.S. in terms of weight. Virtually every item a person comes in contact with traveled on a truck at some point. Trucking represents roughly 5% of the U.S. gross domestic product Over 80% of all freight transportation revenues en es for all modes (truck, air, water, rail and pipeline)

4 Projection Provided by US DOE in 2009

5 EIA 2011 Outlook with HD GHG Rule Impact Fuel use driven by increased Freight volume Heavy duty petroleum use and GHG emissions are predicted to continue to grow barring major new technology developments. Source: US Energy Information Administration Annual Energy Outlook 2011 April 26, 2011

6 How to Meet This Challenge? Light Duty often refers to a 3 legged stool approach to reduced use of fossil energy. Heavy Duty Long-Haul - ½ legged stool??? Improving the front (tractor) half of the combination truck through vigorous competition but not much focus on trailers. Minimal government policy plans for low carbon alternate fuels to replace diesel Little government attention to VMT We need all three legs. Fuel Efficiency Engines Vehicle Low Carbon Truck and tractor Fuels Implement trailer improvements Integrate tractor and trailers for breakthrough aerodynamics. Policies to enable reduced VMT while still moving the freight that supports our economy. Serious policies to develop and implement new low carbon fuels for HD application. Vehicle Efficiency Reduce VMT A typical size car, operating with the same ton-mpg efficiency as today s fully loaded dtractor trailer rig would get 130 mpg!

7 Truck Fuel Cost is a Big Factor $500,000 C O S T Fuel may now surpass driver as biggest single long haul operating cost! 800, $4/ Gal $30,000 $30,000 Vehicle $120,000 Vehicle Cost Cars Class 8 Trucks

8 Heavy Truck Fuel Efficiency Progress and Opportunities

9 Key Factors in HD Truck Efficiency Powertrain Engine Combustion/fuel injection Peak cylinder pressure Turbocharging Increased Efficiency Increased pressure ratio Friction and parasitic Exhaust aftertreatment Turbo compound Mechanical Electric Waste heat recovery Continuously improving New opportunity for optimization Coming Soon Hybrid Highly effective but only for urban applications Drivetrain Transmission Automated manual Powershift Hybrid Electric Parallel series Hydraulic Plug-In Electric Only feasible for very limited local delivery due to battery capacity limitations.

10 US NOx Reduction Impact on Fuel Efficiency Unlimited NOx Relative Potential 10-15% Engine Efficiency NOx Level Actual with NOx Reduction Electronic 0 Variable Timing Consent Decree EGR, VGT Advances in injection, PCP, turbocharging, friction, etc. HEGR, DPF EATS= Exhaust Aftertreatment System EGR = Exhaust gas recirculation i HEGR = Heavy EGR VGT= Variable geometry turbocharger DPF = Diesel Particulate Filter NOx = oxides of nitrogen NOx EATS.2 gr/hp-hr

11 Key Factors in HD Truck Efficiency Vhil Vehicle Tractor Aerodynamics Frontal area Side skirts Roof fairings Mirrors Active Aero Rolling Resistance Super single tires Proper inflation Reduced Mass Generally Deployed Trailers Rolling resistance Super Single tires Rolling resistance Aerodynamics Side skirts Boat tail Weight Increasingly Deployed Integration Matching Powertrain and engine to intended load/speed Trailer gap AccessoriesA i Air compressor Air conditioning Cooling system Power steering Idle management APU Truck stop electrification Energy storage systems

12 Where are we? 1980 Big change in tractors. Trailer changes?? 1950? Used as rolling warehouse Three trailers per tractor Often owned by shipper Least cost is main consideration Very long service life 2010

13 Key Factors in HD Truck Efficiency Regulation, Logistic, Vehicle Management Regulations and Public policy Road Speed limiting Weight limits Trailer combinations Length limits Driver Hours of Service Congestion mitigation Incentives (hybrid) Education and support EPA SmartWay program State-to-state inconsistency is a major barrier to efficient freight movement. Logistics Load management/backloads Route Optimization Congestion Avoidance Distance Minimization Vehicle management Road speed limiting Driver management Smart gearing Acceleration control Idle management Cruise management via GPS (anticipating grade and speed limit changes)

14 Heavy Truck VMT How can we reduce the miles trucks need to travel while delivering more freight?

15 Longer Combination Trucks Single Biggest Potential Efficiency Gain via Lower VMT Fuel saving for longer US combinations (with volume limited freight- per ATRI study ) 17% Sweden and Finland allowing rigs up to m vs m in rest of EU (14-20% less fuel) Quote Ontario, Canada Ministry of Transport 22% 28%

16 Long Combination Hauling Dual Containers in Sweden 32 meters long = 105 feet; Two 40 ft containers Now looking to go to 48 meters = 157 feet; Three 40 ft containers

17 Trucks haul a lot of air! Opportunities for improvements Packaging to increase density Logistics load planning and routing Less than 20% exceed 70,000 LBS. Around 15% empty.

18 Increase Intermodal Truck-Rail

19 Class 8 Ton-MPG - A Prospective Scenario Via Vehicle Efficiency Gains and VMT Reductions Ton n-mpg Increas se 70.0% Trailers and Fleet Operations 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% Includes VMT Reductions by hauling more freight per truck and use of intermodal Trailer and Operations Tractor 0.0% YEAR Engine Incr reasing regu ulatory Com mplexity Truck Technologies Engine Technologies 65% Ton-MPG improvement yields 40% fuel savings-l/ton-km Engine gains yield ~1%/year. Double the 1980 to 1999 average

20 CO2 Reduction Through Bio-fuels Volvo Alternate Fuel Demo Fleet

21 Well-to-wheel wheel analysis (Volvo study) Energy efficiency and Greenhouse gases 40% Fossil Renewables Best energy efficiency g/kwh % Least Infrastructure Impact % % 250 0% 0 Energy efficiency, % GHG, g/kwh

22 What About Natural Gas? Compressed natural gas is quite feasible for local operations, but has inadequate power density for long-haul Tanks too large and heavy for long distances Liquid natural gas is feasible for long haul if fueling infrastructure is assured Can t invest heavily without assured fuel supply Clear commitment to infrastructure and supply needed to drive investment decisions Efficiency of NG engine is compromised unless run in compression ignition (diesel) cycle. Need effort to improve efficiency i and reduce cost

23 Potential Public Policies to Promote Road Freight Efficiency Replace new vehicle taxes (12% excise) with increased dfuel ltax to promote fleet roll-over to lower emissions vehicles. Establish uniform vehicle size and weight limits at the highest possible levels with supporting highway infrastructure. Support technology development of efficient trucks, alternate fuels, and fuel infrastructure. St Set mandatory dt hard-programmed droad speed dlimits it as is already done in Europe and most countries. NHTSA has announced plans to do this

24 Potential Public Policies to Promote Road Freight Efficiency Develop infrastructure for efficient rail and intermodal shipment between rail and truck. Develop Highway Infrastructure and Intelligent Vehicle Management Mitigation of congestion Ample truck stops to avoid idling (electrification) Truck lanes in congested areas to support longer combinations and avoid conflict with higher speed cars. Intelligent systems to manage vehicle flow Revise vehicle regulations that inhibit efficiency Allow cameras to replace mirrors Allow extra length for aerodynamic features (trailer boat-tail) Allow extra weight for emissions and fuel efficiency technologies to avoid displacing freight. Develop elop and implement a long-term alternative e fuel plan

25 Conclusion Significant gains in freight efficiency are possible, but cooperation of government, fuel suppliers, vehicle manufacturers, trailer manufacturers, carriers, and shippers is required. Thank You!

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