Presentation Terra Cair Diesel Exhaust Fluid 07-20-2011

TerraCair® Diesel Exhaust Fluid
Sales Presentation
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Government Mandates for Diesel Engine Exhaust
Emissions
As part of the Clean Air Act of 1970, the EPA has
mandated that all on-road diesel vehicles manufactured
January 1, 2010 or later must be equipped with technology
to reduce NOx emissions. NOx stands for Oxides of
Nitrogen.
Selective Catalytic Reduction (SCR) is a new catalyst in
the exhaust system. It’s good for the vehicle - better fuel
mileage AND good for the air we breathe – less pollution.
Who is affected?
• On-highway to include passenger cars in the 2011
model year
• Class 1-8 Light, Medium and heavy duty trucks as of
Jan 1 st 2010.
• Off-highway, rail and marine manufacturers must
comply beginning in 2013
If it’s a diesel engine over 3 liters of displacement it’s got
to meet the standard.
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Diesel Exhaust Fluid (DEF)
• 32.5% Urea
• 67.5% High quality demineralized
water
• Meets ISO3696 grade 3 or
above
NOx from Engine
+
Hot Exhaust @ 400⁰ F
Diesel Exhaust Selective Catalyst
Reduction (SCR) Technology
5% Average MPG Benefit!
WHY?
• Improved engine brake thermal efficiency enabled
through optimal combustion process
• Reduced soot resulting in fewer active
regenerations and less filter back pressure
SCR Catalyst
System Output
Reduction of NOx to
elemental nitrogen
and water
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Equipment Gauges and Lights
What truckers will see
FULL
DEF Level Gauge Lamps DEF Lamp
75% to 100% 4 green lights off
50% to 75% 3 green lights off
25% to 50% 2 green lights off
10% to 25% 1 green light off
5% to 10% 1 yellow light on solid
0% to 5% 1 red light flashing on flashing
EMPTY
• Check Engine Lamp
• 25% Engine Derate
• 55 MPH Vehicle Speed Limit
• Malfunction Indicator Lamp (MIL)
Vehicle speed will be limited to 5 mph once the diesel fuel tank is
refilled by more than 30% with no DEF added
4

DEF Math
DEF Math
DEF Dosing
3% of Diesel Consumption
One gallon of DEF = 210 miles*
(6 mpg)
At 120,000 miles/year, you will
require 571 gallons DEF
On-board tanks = 15-30 gallons
(Range 4500–9000 miles)
Economics of DEF
Assume Fuel economy increase of 5%:
– Truck getting 6 mpg improves to 6.30 mpg
Assume 120,000 miles per year:
– Fuel consumption goes from 20,000 gal.
to 19,048 gal. (Save 952 gallons/year)
Assume $4 gal. diesel
– 952 gal. x $4 diesel = $3,808 diesel savings
Assume $3 gal. DEF and 3% dose rate
– 19,048 gal diesel x (3%) = 571 gal. DEF usage
– 571 gal. x $3 = $1,714 DEF cost
Hypothetical Fuel Savings:
$3,808 - $1,714 = $2,094/year
DEF Usage Calculator
* Assumes fuel economy of 5%
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All Diesel engine manufacturers in the U.S. must comply
with EPA Mandates by 2016
Rail
Marine
On-Highway
Off-Highway
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: EPA.Gov website
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US Diesel Fuel Consumption Percentage by State
1-5 Diesel Consumption 6-10 Diesel Consumption
11-15 Diesel Consumption
16-20 Diesel Consumption
21-25 Diesel Consumption
26 + Diesel Consumption
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New SCR Systems in Heavy-Duty On-Highway vehicles will
drive high demand for DEF over the next 5 years
Projected United States DEF Consumption
in million gallons 2009 2010 2011 2012 2013 2014 2015
Light Duty Cars 0.23 0.57 1.02 1.87 2.89 4.06 5.37
Light Duty Trucks 2.39 4.97 10.42 16.94 23.96 31.38 39.29
Medium Duty Trucks N/A 2.84 9.78 22.35 43.11 64.05 82.93
Heavy Duty Trucks N/A 4.86 70.77 193.76 347.52 484.14 581.52
Off-Highway Vehicles N/A N/A N/A N/A 13.97 28.37 43.19
Total 2.62 13.25 91.99 234.92 431.44 611.99 752.30
Projected DEF Consumption By Container Type
in million gallons 2009 2010 2011 2012 2013 2014 2015
Bulk 0.13 1.05 17.83 117.46 254.78 443.05 575.48
Drums/Totes 0.00 2.31 24.17 54.03 100.05 87.21 88.41
Cans 2.49 9.89 50.00 63.43 76.61 81.73 88.41
By 2015 over 76% of all DEF will be sold in BULK
Source: 2011 Internal Data, May 2011
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Heavy-Duty Class 8 Trucks will drive DEF volume
• Starting in 2010, 79.5% of
all class 8 trucks produced
moved to the SCR
technology platform
– Kenworth®
– Peterbilt®
– Volvo®
– Mack®
– Freightliner®
• On average the useful life
of a Class 8 Truck is 7
years.
• Yearly turnover equates
to 14.3%
• By December 2015 more
than 72% of Class 8 trucks
will require DEF.
Source: Transport Topics, June 20, 2011 edition
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Reducing Customer Risk with
Our Reliable Delivery Network
Reliable
Delivery
Network
• Terra Environmental Technologies offers complete delivery
solutions providing BEST IN INDUSTRY support for
distributors and end-user customers
– Dedicated quality and engineering team ensure purity to the tank
– The TerraCair team certifies all network partners according to
ISO22241 standards
– Access to full-line equipment suppliers who specialize in DEF who
provide installation and on-going service
– Financing options available
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