Natural Gas Transportation, Locomotives and Marine Power Generation, On and Off shore Energy Conversions Inc. Company Background Is a privately held corporation in the State of Washington Formed in 1986 for the purpose of developing alternative fuel equipment Develops and manufactures engine conversion systems for diesel to dual fuel or dedicated natural gas In house testing and development facilities for EMD engines and power generation engines of up to 4000 HP 25,000 sq. feet of warehouse, testing and manufacturing facilities Products EMD dual fuel systems EMD spark ignited systems Economizer systems, all four stroke engines Custom engine monitoring systems Testing and research New product development Gas System Basics Dual fuel systems allow as much as 90% replacement of diesel depending on engine and system type. Economizer, few engine changes, additional hardware Controller Gas fuel supply system EMD more involved, higher performing Pistons, Heads, Cooling alterations Controller Gas fueling system Locomotive Applications Energy Conversions is world leader. Converted two locomotives for LNG for Burlington Northern Railroad evaluation 1990-96 (SD40-2), Successful 6 year demonstration. Also converted for Napa Valley Railroad all gas, spark plug, CNG locomotive in 2000 (still operating). Peru GE road locomotive and Thailand GEA road locomotive , Brazil BB36, DDM, Dash 9s, India passenger, CN SD40-2 2 systems rail commissioned in Sept. 2012 operation on branch line. Power Generation Applications Exclusive EMD product offering Economizer highest performance low cost system 3 20 cyl EMDs 3512 CAT Economizer 3406 CAT air compressor Marine Kings Pointer training vessel Project was never completed, involved USCG and Marad Petrobras Brazil Project was never completed, ECI attained ABS type approval New interests Todays marine market is growing rapidly with 34 classed vessels operating internationally. Tow boat / push boat large potential. Ferry system in Washington moving forward with DNV and in depth studies. Tote (not with ECI systems) moving forward with several container vessel conversions. General Aspects of Conversion in the US Is Changing with abundant natural gas The primary drive for conversion in USA has been the environment issue. The cost difference alone between Diesel and NG typically wasnt good enough IRR (investment return rate). Gas engine and fuel storage equipment typically is more costly than diesel Electric price and availability very good for stationary power Emissions becoming a large issue with ICE (internal combustion engine) Emissions are good, regulations challenging to work with New diesel and gas prices are creating huge potential in several market areas General Aspects for Conversion Internationally Gas prices usually 25 to 50% of diesel Gas availability increasing monthly Electric availability not as good as US Emission regulations not as strict Aspects are better than US Comparison of Technology SI engine cons Size, fuel flexibility, engine wear, efficiency, ignition life, engine cost and no backup fuel, slower engine response to load change Competitors dual fuel conversion systems less detailed control, reduced protection, reduced overall replacement ECI Manufactured Products Ranges from quality cast iron parts, machined components, fabricated items to electronic circuit boards Product integration and assembly Wholly owned software source code Testing and final commissioning Economizer Style Conversion Simple application requiring no major engine modifications Conversion time and cost is not significant System designs vary dependent on application Fully automated control of gas operation Knock detection and control. EMD Style Systems May or may not be fully enhanced after cooling Separate circuit after cooling with active flow controls provided max performance Auxiliary hydraulic system for gas injectors Integrated after cooling with Vaporizer Speed governor uses gas control Bank idling system for diesel idle Engine monitoring for EGT and knock Engine water pre-heating strongly recommended EMD Hardware Examples Separate Circuit After Cooling EMD After Cooling Drawing Gas Fuel Connection to Locomotive Thailand Peru CNG pressure reducer Locomotive Piping Brazil prototype tender Brazil pre-production units UP car in 2003 never made it to rails until CN picked it up and did a refit with ECI BN project in 1989, first tender car BN refueling station Staples MN CN locomotive Re-fit summer 2012 CN commissions UP car for the first time 20 Years later Energy Conversions Inc. 6411 Pacific Hwy. E Tacoma, WA 98424 253-922-6670 www.energyconversions.com