Heavy-Duty Vehicle GHG Emissions and Fuel Efficiency in Canada, Conference Winnipeg, MB April 30 –May 1, 2012

Heavy-Duty Vehicle GHG Reduction and Fuel Efficiency Technologies Tires Stan Lew Industry Standards & Government Regulations Michelin North America, Inc. April 30, 2012

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Greenhouse Gas Emissions – CO2 Transportation Related

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U.S. SmartWay Transport Partnership Voluntary Program – Long Haul Vehicles •  SmartWay Transport Partnership launched 2004* –  2,900 participants in 2011 –  SmartWay technology program •  LRR tire, aerodynamics, idle reduction, vehicle, retrofits.

–  Results as of 2010 •  50M barrels oil saved •  Emissions saved –  16.5 MMT CO2 (equivalent to 3M cars taken off the road) –  235,000 tons NOx –  9,000 tons particulate matter prevented

•  SmartWay program benchmark used –  California and EPA/NHTSA GHG/FE truck regulations –  Europe, Japan, China, Australia, Canada, Mexico 3 * 3/28/2011 SmartWay Program Highlights

Regulatory Responses •  H-D Vehicle GHG (Tractor-Trailer GHG) Emission Reduction* -  Over the first 11 years, beginning in 2010 (rule effective). - 

Reduce statewide ~ 7.8 MMT CO2 by 2020.

- 

Truckers/trucking companies savings ~ $8.6B and as much as 750M gallons diesel fuel in California. • 

Based on diesel fuel cost of $3.14 to $3.69 over the 11 year period.

•  GHG/FE standards for M-D and H-D engines and vehicles** -  500 M barrels of oil saved over the MY 2014 – 2018 life of vehicles. -  270 MMT CO2 -  $50 B in fuel cost savings projected * Effective January 1, 2010. ** Effective November 14, 2011.

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Regulatory Responses   •  Proposed Heavy-Duty Vehicle and Engine Greenhouse Gas Emission Regulations –  Environment Canada (Canada Gazette April 14, 2012) –  Transportation is one of the largest sources of GHG in Canada •  ~ 28% of total emissions in 2009. •  H-D vehicles ~ 24% of transportation emissions. •  Reduction of ~ 19.0 MMT CO2 equivalent over the lifetime of vehicles produced in the model years 2014–2018. •  Over the lifetime of vehicles produced in MY2014–2018, the net benefit is estimated at present value = $4.2B Cdn.

–  Alignment with US GHG/FE standards for M-D and H-D

engines and vehicles •  Target effective MY 2014

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Global Regulations Landscape H-D Vehicle CO2 and/or Fuel Consumption & Tires Canada

Russia

2014 (?) GHG/ FE

2017 Max RR

U.S.

China

2012 GHG/FE

2014 Max RR

Calif. 2010 GHG

Europe

Mexico

2012 Max RR/Grading 2018 CO2

2014 (?) FE

Brazil 2014 Max RR/ Grading

(https://www.cia.gov/library/publications/the-world-factbook/graphics/ref_maps/pdf/political_world.pdf)

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Fuel Used To Move The Vehicle * At 65 mph, aerodynamic drag consumes ~ 53% of the fuel.

Aerodynamic Drag

Mechanical losses consume ~ 15% of the fuel.

Mechanical Losses

Tire rolling resistance accounts for ~ 32% of the fuel consumed.

Rolling Resistance

* Technology Roadmap for the 21st Century Truck Program, Woodrooffe & Associates, 2000

Engine efficiency ~ 40%

Impact of Tires

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Evolution of Tire Rolling Resistance 35 30

Solid Tyres Cross-Ply Tyres

CRR [kg/t]

25 20 Radial Tyres 15 Silica Tyres

10 5 Slide from Michelin North America, Inc.

0 1890

1910

1930

1950

1970

1990

2010

Radial tires in 1946 (Radial truck ~ 1952) Introduction of silica in 1992 Optimization of architecture Optimization of material Optimization of tread design

Tire Industry Response? Low Rolling Resistance Truck Tires e.g. list of Smartway verified LRR tires continues to increase *

* EPA SmartWay verified LRR tire list - March 2, 2012

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New Generation Wide Base Single NGWBS Tire Technology •  1908 à first “dual” or “paired” tires introduced to increase load carrying capacity of heavy trucks. * •  2000 à New Generation Wide Base Single (NGWBS) introduced to service the same applications as duals. 18-Wheeler à 10-Wheeler 18-Wheeler 275/80R22.5 / 295/75R22.5

10-Wheeler

445/50R22.5 * North American Council for Freight Efficiency: Executive Report Wide Base Tires 2010

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NGWBS Tire Technology Department of Energy Study * 9.2% fuel economy improvement

* Oak Ridge National Lab Transportation Energy Data Book Edition 27 Table 5.10, 2007 test, 750000 miles over 1 year

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NGWBS Tire Technology NGWBS availability

Weight savings •  ~ 175 lbs per axle

•  7 major manufacturers (new) •  Retreadability

Retread examples (include fuel efficient designs)

Service •  Simplicity •  Efficiency NGWBS vs duals (aluminum wheels) • 

Michelin XDN2 drive / XTE trailer duals

• 

Michelin X One XDN2 drive / X One XTE trailer)

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NGWBS Tire Use •  NGWBS tires used in U.S. legal size & weight limits •  Load capacity same as dual tire-fitted axles. •  U.S. limit 7,700 kg/axle (15,400 kg/tandem axle) approved across U.S./Canada border.

•  Canada dual tire limit 17,000 kg/axle •  NGWBS parity with duals approved in Quebec & Ontario.

•  Growing NGWBS popularity leads to use in extralegal size and load applications •  Majority of states grant permits equivalent to duals. •  Popularity may align additional states’ permit rules.

•  Growth of applications •  Waste management, motor coaches, bulk delivery, etc. 13

Total Cost of Ownership - Example Current Tires Drive Trailer B C

Proposed Tires Drive Trailer D (NGWBS) E (NGWBS)

Tire

Steer A

Tire Runout Miles

91,407

271,479

130,000

245,121

130,000

Tire Price

$450

$475

$400

$1,100

$950

Tire RR

105

109

83

86

74

Price of fuel/gallon

$3.00

$4.00

 

Current Tire Annual Costs

Proposed Tire Annual Costs

Current Tire Annual Costs

Proposed Tire Annual Costs

 

Whole Fleet

Whole Fleet

Whole Fleet

Whole Fleet

1,714,286

1,635,468

1,714,286

1,635,468

$5,142,857 $581,506

$4,906,404

$6,857,143

$6,541,872

$648,876

$581,506

$648,876

$5,724,363

$5,555,280

$7,438,649

$7,190,748

Gallons of fuel consumed Fuel Costs: Tire Costs: FUEL & TIRE ANNUAL COSTS

ABC  Fleet  –  100  tractors/200  trailers  (6X4  pulling  4X0  trailer)   Avg.  annual  miles/vehicle  =  120,000  /  Avg.  mpg/vehicle  =  7.0  

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Heavy-Duty Vehicle GHG Reduction and Fuel Efficiency Technologies Tires Thank you for your attention!

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April 30, 2012