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DIESEL ENGINES Erik Neandross, CEO of Gladstein, Neandross & Associates, which organized the High Horsepower Summit conference, estimates that a single mining truck could save about $500,000 annually by using LNG instead of diesel. Cost vs. savings estimates for dual-fuel applications are encouraging customer interest. Full Throttle on LNG Just recently, Caterpillar became the latest to publicize its intentions to go full-bore on LNG engine development for mobile appli- cations. Joel Feucht, Caterpillar's director of gas engine strategy for the energy and power systems businesses, made the announcement during his keynote address at HHP Summit 2012, a first-of-its-kind event that examined the economic and environmental benefits of using natural gas in high-horsepower applications. "We have decided to go all-in on [nat- ural] gas," said Feucht. "We are going to invest because we see a global market long term. Large engines are going gas. It's not debatable; it's our conclusion." Feucht's remarks confirmed that Caterpillar will provide an LNG fuel option for engines across its many high-horsepow- er lines for mining, rail, construction and other applications. The company recently announced its first expected LNG-powered products will include large mining trucks and the locomotives produced by Electro- Motive Diesel (EMD), a unit of Caterpillar's Progress Rail Services. "There is huge economic incentive to move to natural gas," Feucht said, noting the price of oil and gas are going to stay disconnected for the foreseeable future, thereby creating an economic incentive to use natural gas in fuel-hungry high-horse- power applications. Current users of natu- ral gas to power high-horsepower equip- ment are realizing a cost savings of 30% to 50%, and new technologies expanding access, particularly in North America, have contributed to the expanding availability and decreasing cost of natural gas. www.e-mj.com Although the prospect of using natural gas to fuel their trucks has had long-term appeal for many mine operators, until recently it's been an "if you build it, will they come?" type of situation for engine builders. At the MINExpo 2012 trade show held recently in Las Vegas, a product line manager for one of the major engine sup- pliers described the quandary: "Miners are always looking to be the first to try out new technology, but the second to pay for it." However, that mindset appears to be changing. Tom Aubee, vice president for global energy at consulting firm Pace Global, which advises mining companies worldwide, noted that mine operators "…are saying to me 'Where can I buy a nat- ural-gas haul truck?' They're ready to go." Cat's public commitment to develop- ment of natural gas fueled mining engines came just a few months after it signed an agreement with Westport, a natural gas engine specialist, to co-develop natural gas technology for off-road equipment. Cater- pillar and Westport will combine technolo- gies and expertise, including Westport's High Pressure Direct Injection (HPDI) tech- nology and Cat's off-road engine and machine product technology, to develop the natural gas fuel system. Caterpillar will fund the development program. When the prod- ucts go to market, Westport expects to par- ticipate in the supply of key components. And it's a sizable market, according to Westport's statistics: With almost 29,000 "units of interest"—in this case, haul trucks in the 100-ton-capacity range and above— in service around the world, and global diesel fuel consumption within that sector pegged at about 1.8 billion U.S. gallons per year, Westport has predicted that the total economic value of fuel cost savings involved in a massive switchover to natural gas from diesel would be in the range of $3.6 billion per year, assuming a $2/gallon savings of LNG energy equivalent over diesel. "This is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries," said David Demers, CEO of Westport. "We are working with the global leader in engines, locomotives and off-road equipment to develop an attractive natural gas offering for their customers." "The substantial price difference between natural gas and diesel fuel is result- ing in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrific- ing operational performance," said Demers. "There is also a clear environmental incen- tive because of the reduced carbon emis- sions. Adding to the solid business case for this program is the potential to convert exist- ing field units to natural gas—opening up a whole new market opportunity." While the agreements initially focus on engines used in mining trucks and locomotives, the compa- nies will also develop natural gas technology for Caterpillar's other off-road engine lines. "This agreement does more than pair two leaders in their respective industries," said Steve Fisher, vice president of Caterpillar's Large Power Systems Division. "Many of our customers are asking for natural-gas pow- ered equipment in order to reap the financial and environmental benefits. The program positions Caterpillar to become the first manufacturer to bring HPDI technology to the high horsepower off-road market, offer the broadest product line of natural gas- fueled machines and equipment, and capi- talize on the attractiveness of natural gas as an alternate mobile fuel—all within the shortest time frame for our customers." Westport's HPDI system is based on a patented injector that simultaneously allows tightly controlled quantities of diesel fuel and large quantities of natural gas to be delivered at high pressure to the combustion chamber. The natural gas is injected at the end of the compression stroke. Natural gas requires a higher ignition temperature than diesel, so to assist with ignition, a small amount of diesel fuel is injected into the engine cylinder fol- lowed by the main natural gas fuel injection. The ignited diesel fuel acts as a pilot light. HPDI allows replacement of approxi- mately 95% of the diesel fuel (by energy) with natural gas, according to Westport, but efficiency remains roughly the same as a pure diesel engine. CO2 emissions are reduced by about 22%. Development programs are under way at Caterpillar for both new and existing engines, combustion technology and fuel systems. According to Luis De Leon, Caterpillar vice president with responsibili- ty for the Mining Products Division, work on LNG-powered Cat 793, 795 and 797 trucks is in the early stages, with commer- cial launch expected within five years. In addition to offering new LNG prod- ucts, Caterpillar and EMD are developing NOVEMBER 2012 • E&MJ; 49