Energy Conversions Inc.

•  Systems to Convert Diesel Engines to 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 9’s, 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 EMD’s 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 –  Today’s 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 wasn’t 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