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MOTOR COAC H IN DU STRIES

Climate Change Initiatives

Percy Phillips

Director of Engineering

MCI and Climate Change Overview:

 1. About Motor Coach Industries



 2. Transportation and Climate Change



 3. Traffic and Bus Energy and Emissions



 4. MCI Climate Improvement Opportunities:

– Compressed (or Liquified) Natural Gas fueled commuter bus

– Hybrid powered commuter bus

– Low Emission Auxiliary Power Units

– Driver Training for Energy Use Optimization.



 5. Government Climate Improvement Opportunities:

– Provide R&D assistance for low emission bus projects

– Increase bus ridership

– Provide Tax Incentives and/or Subsidies to support low emission

bus deployment and ridership.

3 of 26

Privileged and Confidential

MCI: Who We Are

 MCI designs, develops, manufactures and

markets intercity coaches for revenue service

and personal use.



 MCI is the largest North American coach

manufacturer, with plants and offices in

Manitoba, Quebec, North Dakota, New Mexico,

California, Texas, New Jersey,Ohio, Kentucky,

Illinois, and Mexico.



 In Manitoba alone, we build almost 1,400

coaches per year, with almost 2,000

employees.



 Some of the major subcontractors supporting

MCI in Manitoba include: Vansco, Acrylon,

Franklin, EH Price, Custom Steel, Sigma,

Mackow, Stormtite, Industrial Rubber, Thor,

Dupont, and Atlas Alloys.



4 of 26

Privileged and Confidential

Climate Change



 Scientific evidence strongly suggests that the rapid buildup of

greenhouse gases in the atmosphere is raising the earth's temperature

and changing the earth's climate with many potentially serious

consequences.









5 of 26

Privileged and Confidential

Greenhouse Gas Emissions

 Canada is number 3 in the world for Greenhouse Gas Emissions

at 6.0 MMTCE (Million Metric Tons of Carbon Equivalent) per

capita.









6 of 26

Privileged and Confidential

Transportation’s Contribution to Greenhouse Gases:

 The transportation sector is the second largest contributor

to greenhouse gases.









7 of 26

Privileged and Confidential

Greenhouse Gases from Transportation:



 Primary Greenhouse Gases:

– Carbon Dioxide, CO2

– Nitrous Oxide, N2O

– Methane, CH4



 Indirect Greenhouse Gases:

– Nitrogen Oxides, NOx

– Carbon Monoxide, CO









8 of 26

Privileged and Confidential

CO2 Production

1998 CO2 Emissions

Fossil Fuel Combustion

Cement Manufacture

Natural Gas Flaring

Lime Manufacture

Waste Combustion

Limestone and Dolomite Use

Soda Ash Manufacture and Consumption

Carbon Dioxide Consumption

International Bunker Fuelsb









9 of 26

Privileged and Confidential

Nitrogen Oxide Emissions



 While total N2O

emissions are much

lower than CO2

emissions, N2O is

approximately 310

times more powerful

than CO2 at trapping

heat in the

atmosphere (IPCC

1996).



 Mobile sources are

the second largest

producer of N2O.









10 of 26

Privileged and Confidential

Recent Trends

 The recent trends show a general increase in total greenhouse gas emissions.









11 of 26

Privileged and Confidential

Bus Emissions

 Total bus and Heavy Duty Truck emissions have increased.

Bus Emissions





4









3.5









3









2.5

MMTCE









2 Buses CO2





HD Trucks and

Buses CH4

1.5 HD Trucks and

Buses N2O







1









0.5









0

1990 1991 1992 1993 1994 1995 1996 1997 1998

Year



12 of 26

Privileged and Confidential

Traffic

 Average MCI coach has

seating for 56 passengers



 Assuming some existing

car pooling, one coach

could easily take 40 cars

off the road during rush

hour.









13 of 26

Privileged and Confidential

Traffic Energy and Emissions

 Year 2000 average Canadian car fuel economy was 24.2 miles per

U.S. gallon, or .0412 gallons per mile per car which generates .3605

kg CO2 per mile per car.



 40 passenger cars would release 14.42 kg CO2 per mile.



 Typical MCI intercity coach fuel economy is 6.7 mpg, or .149 gallons

per mile per coach which generates 1.49 kg CO2 per mile per bus.



 If one coach could replace 40 cars during rush hour commutes, it

would generate 11 times less CO2, and save 1.5 gallons per mile.



 However, for the last 30 years, while intercity bus miles traveled in

Canada has not shown any trend, the number of passengers has

declined. In the U.S., this trend has not been demonstrated. Therefore,

bus usage has become less optimized in Canada.



14 of 26

Privileged and Confidential

Intercity Bus Usage in Canada

Canadian Intercity Bus

(source: Transport Canada)







250,000









200,000









150,000



Passengers (X1000)

Veh-Kms (X1000)





100,000









50,000









0

1941

1943

1945

1947

1949

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

Year







15 of 26

Privileged and Confidential

Canada vs. U.S. Bus Usage Intercity Bus Passengers

(source: Transport Canada)







120









100









80

Index (1970 = 100)









US

60

Canada







40









20









0

70



71



72

73



74



75



76

77



78



79

80



81

82



83



84

85



86



87

88



89



90



91



92



93



94



95

96



97

19



19



19

19



19



19



19

19



19



19

19



19

19



19



19

19



19



19

19



19



19



19



19



19



19



19

19



19

Year



16 of 26

Privileged and Confidential

Canadian Bus Usage

 If Canadian Bus Usage could be returned to the 1970 level, we could

take over 20 Million car trips off the Canadian roads, and save at least

387 kg of CO2 per mile traveled.



 Less traffic congestion would also further reduce the emissions

generated by the remaining vehicles on the street, through smoother

flowing traffic.









17 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:



Natural Gas Fueled Engines:







 Compared to current Diesel Engines:





– 50% less NOx emissions

– up to 25% less CO2

– significant reductions in other toxic emissions









18 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:

 MCI CNG fueled Commuter bus is currently offered.



 Futureopportunities for LNG Commuter Bus and

CNG/LNG short haul Tour Coach.



 Challenges:

– Current CNG/LNG DDC S60 engine carries a tremendous cost penalty.

The S60G engine is currently the only CNG/LNG engine available in the

power range required for our bus/coach size/weight.

– Low cost, light weight fuel tanks.

– R & D costs for MCI to develop LNG Commuter Coach ~ $2 Million (US).



 Opportunities:

– possible alternative CNG/LNG engine development cooperative program

with Westport Innovations of Vancouver, B.C.





19 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:



Diesel fueled Hybrid-Electric Powered:







 Compared to current conventional Diesel Powertrains:





– 50% less NOx emissions*

– 50% less CO2 emissions*

– significant reductions in other toxic emissions



* over CBD-14 standard driving cycle



20 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:

 MCI does not currently offer a Diesel Hybrid Electric

powertrain bus.



 Future sales opportunities for Hybrid- Electric Commuter

Buses.



 Challenges:

– R & D costs for MCI to develop a Hybrid Powered Commuter Coach ~ $2

Million (US)

– Cost of hybrid components are still high, therefore the hybrid bus will also

carry a significant cost penalty.



 Opportunities:

– MCI currently has an opportunity with Allison Electric Drives to co-

develop an advanced Parallel Hybrid-Electric commuter bus.





21 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:

Low Emission Auxiliary Power Units (APU):





 Current Commuter Buses and Coaches often spend a great deal of

time idling, to maintain interior comfort levels (heat in winter, A/C in

summer), and electrical accessories.



 A typical Coach or Commuter Bus spends 40% of it’s time with the

engine at idle. This corresponds to about 2000 gallons of fuel, and

generates approximately 20,000 kg of CO2, per year per bus. With

over 3000 coaches in Canada alone, this corresponds to 60 Million kg

of CO2 per year. For all of North America, 880 Million kg of CO 2 are

generated by coaches idling.



 A low emission, high efficiency APU could generate electricity to run

the bus/coach “hotel loads”, and allow the main engine to shut down,

thereby conserving fuel and reducing emissions.

22 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:



 MCI does not currently offer a low emission APU.



 Future opportunities to use small Fuel Cells,

MicroTurbines, or other low emission, high efficiency

auxiliary power sources.



 Challenges:

– MCI does not currently have the budget (or necessary expertise) to

develop the APU systems.

– Cost of Fuel Cells are still high, therefore the APU may also carry a

significant cost penalty.



 Opportunities:

– Canada is the leader in Fuel Cell technology, with several companies

developing different fuel cell systems.

23 of 26

Privileged and Confidential

MCI Climate Change Initiatives/Opportunities:



Driver and Mechanic Training:





 Current and future Bus and Coach drivers and service personnel can

be trained to:

– minimize bus idling times (park in shaded areas in summer, etc.)

– drive smoothly to conserve energy and reduce emissions

– maintain the bus/coach in a “clean” and efficient state of tune

(brakes aren’t dragging, etc.).



 However, MCI currently does not have the budget to expand training

programs.







24 of 26

Privileged and Confidential

Summary:



Opportunities for MCI to help reduce climate change:



 CNG/LNG powered buses/coaches



 Hybrid-Electric powered buses



 High Efficiency, Low Emission APUs to reduce idle time



 Driver and Maintenance Training Programs









25 of 26

Privileged and Confidential

Summary:



Opportunities for the Canadian and Manitoba Governments:



 provide R&D assistance for the “green” technology bus projects, and

training initiatives.



 increase bus ridership in Canada.



 offset “green” technology bus costs with Tax Incentives or Subsidies

for bus/coach operators:

– ~ $50,000 (US) for each Hybrid bus

– ~ $80,000 (US) for each CNG/LNG bus

– ~ $30,000 (US) for each APU equipped bus

– reduce fuel taxes on ultra low sulfur Diesel fuel, CNG and other

possible “clean” fuels.





26 of 26

Privileged and Confidential


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