SCR Technology The Daimler AG Experience

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1 SCR Technology The Daimler AG Experience

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4 The Roadmap to Sustainable Mobility Green Truck fuel & vehicles Emission free Fuel Cell Technology Hydrogen Renewable energy Fuel Economy Hybrid Technology Biomass, BTL Diesel substitution with significantly improved C02 balance Compressed Natural Gas Technology Fats and oils FAME, NExBTL Low emissions Diesel substitution Optimization of Conventional Technology Clean Conventional Fuels Sulfur-free, Low in Aromats Burn less / POWERTRAIN FUELS \Burn clean

5 Daimler: Shaping Future Transportation with CleanDrive Technologies

6 North American Leadership - Component Integration & SCR Technology Efficient DD15 Aerodynamic Cascadia

7 True Truck and Engine Integration

8 What is SCR A Technology Overview Good for Business + Good for the Environment 3-5% fuel savings + near zero emissions Coming in

9 Diesel Technology Through U.S. EPA Emission Levels EPA 2002 / 2004 EPA 2007 EPA 2010 Technology EGR Bigger cooler Higher EGR rates Even bigger coolers Diesel Particulate Filter Ultra low sulfur diesel Higher EGR rates Even bigger cooler Diesel Particulate Filter Ultra low sulfur diesel Milder EGR rates Milder EGR rates SCR catalyst Diesel Exhaust Fluid Diesel Exhaust Fluid

10 Leading the SCR Charge In North America

11 Examining Technologies to Address 2010 Clearing Up Confusion and Misunderstanding

12 Key Factors Considered for Different Types of SCR Efficiency of the catalyst 80% to 90% based upon type Must achieve the 0.02 g/bhphr standard Balancing Act Up front Cost vs Fuel Economy Precious metal content Needed to catalyze NOx and ammonia Adds to the up front cost Affects system efficiency $ Engine-out NOx level Higher = less particulates Less PM = Fewer regens Fewer regens = less fuel consumed

13 What Types of Technology Exist for Near-Zero Emissions in North America? Increased EGR could possibly be used as a bridge strategy as an SCR solution is developed and implemented. LNT-SCR is a strategy used by Daimler today for light duty applications that has significant drawbacks for trucking. Urea-SCR uses DEF as the source of ammonia to economically reduce NOx at remarkably efficient levels.

14 Each Technology Has Pros & Cons Pro Con Improves Fuel Economy Requires DEF Urea-SCR Truly Clean Highly Proven DEF tank lines LNT-SCR Creates its own ammonia No def Degrades Fuel Economy Light and medium Duty Focus Needs Much Precious Metal

15 Daimler Has Selected Urea-SCR Pro Con Improves Fuel Economy Requires DEF Urea-SCR Truly Clean Highly Proven DEF tank lines LNT-SCR Creates its own ammonia No def Degrades Fuel Economy Light and medium Duty Focus Needs Much Precious Metal

16 Future Innovations and Improvements Daimler will always keep an eye out for alternatives Global leadership brings advantage of scale and technological expansion Customers will choose lean AND clean Research and validation never ends Daimler Urea-SCR BlueTec Is the Clear Leader For EPA2010, Euro 6, and Foreseeable Future

17 SCR Advantages Summary SCR = Better Economics Clear Advantage for SCR SCR = Cleaner Not Just Compliant, But Cleanest SCR = Convenient Progress Being Made SCR = Reliable Hardware Successful In Europe Validation Well Under Way in North America SCR Acceptance Is Growing Fast But Still Needs Momentum

18 SCR Saves Diesel in Three Steps SCR = Better Economics Less Heat Rejection The internal combustion process can be tuned for higher engine-out NOx levels. This results in higher combustion temperatures, less heat rejected and therefore higher thermal efficiency. Less Particulate Matter The higher engine-out NOx result in lower PM levels, therefore fewer DPF regenerations. Less Active Regeneration The higher engine-out NOx allow for DPF regenerations at lower temperatures, therefore increasing passive regenerations and reducing active regenerations. Less Diesel Consumed The combination of EGR, DPF and SCR exceeds the emission standards while saving diesel.

19 SCR = Better Economics 1. Diesel Fuel Savings 2. Total Fluid Costs Savings 3. DEF Pricing Relative to Diesel Annual Fuel Savings Per Typical Truck from 3% = 583 4% = 769 5% = 952 gallons/yr $9,150 $7,500 $3,800 $2,000 DEF Price = $2.50 Diesel Price = $4.00 3% fuel savings 5% fuel savings $0 1 yr. 2 yr. 3 yr. Under This Scenario, Customers Save $2.40 to $4.20 In Diesel Fuel For Every $1.00 They Spend on DEF Assumptions: 6 mpg before SCR; 120,000 miles per year

20 SCR = Cleanest 22 Years of Truck Emission Changes Particulate Matter - PM (g/bhp-hr) By 2010, 65 trucks will emit the same amount of Pollutants as 1 truck did in / Nitrogen Oxides - NO x (g/bhp-hr) 20

21 SCR = Cleanest Setting the Record Straight on EPA vs Euro Emissions Euro 5 standards are less stringent than EPA 07 Euro 6 standards can only be met with SCR NOx levels Euro 5 = 2.0 EPA 07 = % more strict PM levels Euro 5 = 0.02 EPA 07 = % more strict EPA 2010 NOx reduced 83% more Exponentially tougher Bad comparison 21

22 European Experience Growth May SCR = Convenient 22

23 SCR = Convenient The DEF Infrastructure Is Developing Rapidly Here Too

24 SCR = Reliable Hardware BlueTec testing is the most comprehensive in DDC history 21 Million Miles by ,044 miles on one unit today 6856 hours on one unit today Vehicle Durability MAST

25 SCR = Reliable Hardware SCR System Validated In Extremely Cold Conditions

26 SCR = Reliable Hardware Tracked and resolved all system issues during DTNA summer test

27 Many Training and Informational Events Scheduled for 2008 MATS Technical Info & Press Release Satellite Talk on SCR Clearing the Air Informational Program Launch Customer SCR Demo Fleet Program JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Dealer and Distributor SCR Webinars SCR European Experience Event Dealer & Distributor DD15 Webinar

28 North American Customers Are Learning About SCR From European Customers

29 North American Customers Are Learning About SCR From European Customers Environmental sustainability is the hallmark of our organization SCR is really going to work in it s entirety Daimler has done a good job reassuring me that SCR is the solution and that Daimler has the answers Steve Williams Chairman and CEO, Maverick Transportation ATA Chairman

30 North American Customers Are Learning About SCR From European Customers It looks pretty easy, if Europe can do it we can too Any time you can save 3% to 5% it s a big savings Mike Card President, Combined Transportation

31 North American Customers Are Learning About SCR From European Customers This technology works The chance to see European fleets in operation and talk to them absolutely confirms it SCR is one technology that helps make sustainability cost effective David Miller Vice President of Global Policy and Economic Sustainability, ConWay Freight

32 North American Customers Are Learning About SCR From European Customers European carriers had the same concerns we have. Today, nobody even gives them a remote thought Operationally, the cost of fuel plus the cost of DEF equals a savings advantage - No fear factor Don Streuber President and CEO, Bison Transport

33 North American Customers Are Learning About SCR From European Customers I m satisfied, confident and looking forward to 2010 (SCR) The engines might cost a bit more but they run better with SCR, that was proven by European customers who have been running with SCR for two years Harry Muhlschlegel Chairman and CEO, New Century Transportation

34 Customer Choice Will Prevail

35 Daimler Efforts To Educate and Inform About SCR

36 The Ultimate Goal Reduced Pollutant Emissions

37 Thank you very much for your attention