Corporate Template

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M O T O R C O A C H I N D U S T R I E S
Climate Change Initiatives
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Percy Phillips Director of Engineering
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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 RD assistance for low emission bus
  projects
• Increase bus ridership
• Provide Tax Incentives and/or Subsidies to
  support low emission bus deployment and ridership.

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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.

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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.

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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.

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Transportations Contribution to Greenhouse Gases

• The transportation sector is the second largest
  contributor to greenhouse gases.

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Greenhouse Gases from Transportation

• Primary Greenhouse Gases
• Carbon Dioxide, CO2
• Nitrous Oxide, N2O
• Methane, CH4
• Indirect Greenhouse Gases
• Nitrogen Oxides, NOx
• Carbon Monoxide, CO

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CO2 Production
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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.

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Recent Trends

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

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Bus Emissions

• Total bus and Heavy Duty Truck emissions have
  increased.

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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.

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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.

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

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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

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MCI Climate Change Initiatives/Opportunities

• MCI CNG fueled Commuter bus is currently offered.
• Future opportunities 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.

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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

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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.

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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
  its 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 CO2 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.

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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.

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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 arent dragging, etc.).
• However, MCI currently does not have the budget
  to expand training programs.

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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

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Summary

• Opportunities for the Canadian and Manitoba
  Governments
• provide RD 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.