Cummins New Power 2020 Magazine

CUMMI NS

NEW POWER

2020 EXPLORING OUR

EDITION

ELECTRIFIED POWER AND FUEL CELL AND HYDROGEN TECHNOLOGIES PORTFOLIO

A CUMMINS PUBLICATION

01

03

CUMMINS 10 0 YEARS OF I N N OVAT I N G

PRODUCTS

Letter from the Editor 4 Cummins: A Global Power Leader 6 The Right Solution at the Right Time 9 Timeline: 100 Years of Innovating 10

02 ABOUT NEW POWER Who is New Power? 14 Capabilities & Locations Map 18 Cummins Turnkey Electrified System 20 Partnering Across Markets 22 Cummins Expands Battery Portfolio 24

Cummins Supplies Electrified Solutions for European Customers 44 Cummins Provides USPS with Fully Electric Vehicles in California 46 Santa Monica has Arrived 48 Over 100 Blue Bird Electric School Buses Plugging into Districts 50 3 Things to Know About Charging Your Electric Bus 52 Cummins Next Generation Battery Electric System Revealed at Busworld 54 Cummins Strengthens its Fuel Cell and Hydrogen Technologies 56

Current Applications 26 Holistic Approach to Vehicle Electrification 28 Startups, Embracing Uncertainty and Unapologetic Focus 30 5 Reasons Why Columbus, Indiana is the Silicon Valley of Electric Trucks 32 Electrified Power Adoption Indicators 38 Charging Infrastructure: Laying the Groundwork for the Future of Electrification 40 Are Off-Highway Markets Ready to Take on the Electrification Challenge? 42

5 Key Questions About the Next Frontier: Hydrogen Fuel Cells 58 Making a Splash with Our Hydrogen Fuel Cell Heavy-Duty Truck 60 Hyundai Motor Company and Cummins collaborating on hydrogen fuel cell technology 62

S U S TA I N A B I L I T Y Use Less, Use Better, Use Again 64 5 Key Questions About the Sustainability of Electric Vehicle Batteries 66 Cummins Partners with the University of California San Diego on Second-Life Battery Development 68

05 OUR PEOPLE Terri Wallace 70 Odaro Omusi 71 Rima Salve 72 Fineti “Fin” Kumbula 73

06 IN THE NEWS News Clips 74 Final Note: Dr. Franklin Chang Díaz 76

Contents

04

Thad Ewald Vice President, Strategy & President, New Power

LETTER FROM THE EDITOR Cummins just celebrated our centennial in 2019, and it was a chance to reflect on how we reached this momentous achievement—an achievement that wasn’t without adventure. At our company’s start when many were skeptical of the commercial viability of diesel over petrol, Cummins was daring enough to pioneer diesel-powered vehicles.

We saw diesel’s potential as a new frontier and proved its mettle in commercial applications.

More than 100 years later, we are the world’s largest independent diesel engine manufacturer, continuing to innovate for the future by offering a broad portfolio of power solutions.

Now with Cummins electrification, fuel cells and hydrogen production technologies, we embark on the adventure of alternative power technologies.

This magazine, New Power, named after our Cummins’ business segment of the same name, gives a glimpse into Cummins’ new and emerging alternative power technologies.

4 // N EW POWER

Although Cummins’ journey in electrification and hydrogen began decades ago, the last three years have quite literally been electrifying for Cummins.

We started in 2017 with the unveiling of our fully electric heavy-duty demonstration truck Aeos and then in 2018 debuted our fully electric and hybrid PowerDrive portfolio.

Then, fast forward to last year where we expanded our product portfolio to include the latest hydrogen innovations. This includes a complete line of hydrogen fuel cell power modules and hydrogen production technologies, which includes the new HyLYZER 1000 electrolyzer, which creates green hydrogen when powered by renewable electricity.

Hydrogen has always been a challenge of fuel cell adoption, so I am particularity excited about the addition of hydrogen production technologies to our portfolio as Cummins can now strategically address this issue and offer a full, differentiated hydrogen solution for customers.

To date, we’ve introduced complete electrified powertrain solutions in six markets across seven applications.

We have received hundreds of fuel cell system orders to develop fuel cell electric buses and trucks as well as expect to have approximately 300 electric buses on the road by the end of 2020. Plus, we have more than 500 electrolyzer installations around the world.

Cummins has proven that our willingness to embrace change and to take strategic, calculated risks — just like we did with diesel — have positioned us for success in the new frontier of zero-emissions mobility and alternative power technologies in the next one hundred years. I hope you enjoy learning more about what we have to offer and encourage you to reach out if there are opportunities where we can partner in our alternative power technologies.

Afterall, this is only the beginning of our next great adventure!

YEARS OF

Innovating We are uniquely positioned to help our customers select the right solution for their needs. We are able to help them transition from one technology to another at the time that’s best for their business.

Thad Ewald

2 0 2 0 E D ITION // 5

01

10 0 Y e a r s o f I n n o vat i n g

CUMMINS:

A

GLOBAL

POWER

LEADER N

o one has more experience converting energy into power, shaping big ideas into real solutions or transforming your ambitions into triumphs. Cummins is a global power leader comprised of complementary business units that design, manufacture, distribute and service a broad portfolio of power solutions.

Since 1919, Cummins has turned challenges into opportunities, always

6 // N EW POWER

looking for new solutions to power a more prosperous world.

Our products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions, electrical power generation systems and hydrogen fuel cell technology.

Every day, you can rely on Cummins to power your world.

OUR BUSINESS SEGMENTS D I S TR I B U TI O N Drives a comprehensive global distribution strategy and channel management. Provides sales, service and support to our customers around the world through the largest number of certified service and support locations of any engine manufacturer — more than 6,000 dealer and distributor locations in over 190 countries.

N E W P OW E R Led by Thad Ewald, New Power focuses on new and emerging alternative power technologies.

We work together to design and manufacture alternative power sources, including electrified power, fuel cell and hydrogen technologies.

Applications include school buses, transit buses, light commercial vehicles, medium duty trucks, trains, off-highway applications as well as hydrogen production technologies.

Electrified Power P OW E R SYS TE M S

ENG I NE

Provides high-speed, highhorsepower engines and power generation equipment, including standby and prime power generator sets, alternators, switchgear and other components.

Designs and manufactures stateof-the-art diesel and natural gas powered engines for on-highway and off-highway use, along with new parts and remanufactured parts and engines.

Led by Julie Furber, Electrified Power designs and manufactures electrified power technologies and products, including battery electric powertrains for transit buses, school buses, light commercial vehicles, delivery vehicles and medium duty trucks.

Fuel Cell and Hydrogen Technologies Organization C O M P O N E NT S Designs, manufactures and distributes component technologies and is comprised of four businesses: filtration, turbo technologies, emission solutions and electronics and fuel systems.

Led by Amy Adams, Fuel Cell & Hydrogen Technologies designs, manufactures and installs industrial and commercial hydrogen generation, hydrogen fuel cells and energy storage solutions.

Cummins Inc. OU R M I SSION

Making people’s lives better by powering a more prosperous world

G LO BAL H E AD Q U A RTER S

2019 R EVEN U E

Columbus, IN, USA

$23.5B

T RADE D O N N YS E

F O U N D ED

CMI

1919

2 0 1 9 N E T IN C O M E

2019 F O RTU N E 500 R A N K

Excellence

$2.2B

128

Teamwork

Integrity

OU R VISION

Innovating for our customers to power their success

O U R VA LUES

Diversity + Inclusion Caring

2 0 2 0 E D ITION // 7

“

We see customer and environmental challenges as opportunities to demonstrate leadership and innovation, and we’ve been an innovator since the very beginning.

“

Tom Linebarger CEO Cummins

at the

T HE

S OL UTI O N

TIME Cummins powertrain offerings include:

Cummins offers the powertrain for your success.

In this transition to electric, different customer applications and needs require different types of powertrains, so Cummins wants to provide them the right solution at the right time to enable their success.

F UL LY EL EC T RI C Urban Transit Bus + Densely populated area + Improves air and noise quality + Electricity readily available in route & at depot + Lower operation costs + Capital cost borne by FTA grant process

D I ES EL Heavy Duty Long Haul + Coast-to-coast 500–600 miles/day + Empty interstates + Steady cruise speeds + Reliable access to diesel

HY BRI D Utility Truck + Makes repairs at regional and local sites + Provides power during repair work

HY D RO G EN F UEL C EL L Commuter Train + Uses existing rail infrastructure + Roof-mounted fuel cells and hydrogen tanks + Only by product of water vapor + Improve air and noise quality

2 0 2 0 E D ITION // 9

1919

through 2019

A H I S T O RY O F

Innovation

100 YEARS

01

1931

1931 First 100-mph Diesel Racer, the Cummins No. 8 Duesenberg

I N DY 500

1945

1924

First diesel-powered wrecking cranes

Powered by a 100-horsepower Model U, the Diesel Racer was the first to complete the Indianapolis 500 without stopping.

3

2

Production of the Model F begins

1

9

1940

1950

1930 Record-breaking bus ride from NYC to LA in

2011

91hrs

Cummins unveils QSK95 engine, the world’s most powerful high-speed diesel with over 4,000 horsepower

Cummins Engine Co. founded by Clessie Cummins, backed by William G. Irwin

1929 Pioneering the Diesel Shovel

2006

H YB R ID B US

30%

fuel consumption & greenhouse gasses reduction

2

F H I e

Pioneer 2010

The 10MPG Supertruck is created, boosts fuel economy by

EPA hails Dodge for developing

cleanest heavy-duty diesel pickup truck

2017 Announced work on fully electric transit powertrain

2

0

1

3

54%

2007

More than 1,000 vehicles in North America enter service with Cummins ISB-H and ISL-engines during a breakthrough year for the diesel-electric hybrid transit bus.

JUN

191 9

2017

1920

2015

T H E QSK95 The QSK95 with, 5,000 horsepower, would go on to power highhorsepower generators, marine vessels and passenger locomotives.

2015 Largest and most powerful diesel engine begins production at Seymour Engine Plant

L AU NCH OF T HE

Electrification Business Development Initiative

12 // NEW POWER

A UG

20

Unv hea truc

1985 U.S. diesel truck market share reaches

1967

1959 First articulated tractor in production

51%

1972

Largest-ever three-axel diesel school bus sets power

standard

1960 5 5 9

20%

1991

1985

Cummins 19-liter engine powers the biggest-ever forklift, able to lift 99 tons

2000 Introduction of the 3,500 horsepower haul truck

Introduction of aerodynamic contours to Class 8 trucks with Kenworth T600

1990

2000 2017

1989 Cummins Turbo Diesel introduced in the Dodge Ram

1999 2018 Acquired U.K-based high-voltage battery designer Johnson Matthey Battery Systems

Introducing the cleanest bus fleet in Asia with B5.9 natural gas engines

SE P

JA N

Announced electrified power partnership with GILLIG for zeroemission transit buses

higher fuel efficiency

OCT

1

19 62

First hybrid heavy truck, Oshkosh HEMITT A3 with Cummins 9-liter ISL 400-horsepower engine and electrical generator

2018 Released a fully electric mini excavator prototype in partnership with Hyundai

2018 Debuted the Cummins PowerDrive Suite and fully electric DAF truck at IAA

2018 2019 More than 100 Cummins-powered Blue Bird school buses sold

M AY 1 6

Electrified Power Business Unit — the

Acquired Silicon Valley-based electric and hybrid powertrain provider Efficient Drivetrains, Inc. (EDI)

A UG

Cummins launches the

J UL

2018

2019 Announced the electrification business headquarters in Columbus, Indiana

company’s 5th report segment

2019

Acquired low-voltage battery designer Brammo

New Power The Electrified Power Business Unit is renamed New Power to reflect its broad alternative power offerings, including electrified power and fuel cell and hydrogen technologies.

2019 Acquired Hydrogenics, made a minority investment in Loop Energy and signed a memorandum of understanding with Hyundai Motor Company to collaborate on hydrogen fuel cell technology

2019 Unveiled new 40-foot battery electric buses in partnership with GILLIG

M AY 0 2

2017

S EP

OCT 16

OCT 10

Cummins lightweight L10 engine proved an ideal power match, contributing up to 20 percent higher fuel efficiency.

1980

20 05

veiling of the fully electrified avy-duty demonstration ck AEOS

L10 Engine

1970

Powering the most advanced fireboat

01 7

LIGHTWEIGHT

Hendrickson 360 super heavy duty “Hulks” haul oil production

02

Cummins New Power

Who is

New Power?

14 // NEW POWER

New Power is Cummins’ fifth business segment, focused on alternative power technologies.

2 0 2 0 E D ITION // 15

Cummins New Power

“

16 // NEW POWER

The New Power Segment is made up of two separate but cohesive organizations: the Electrified Power organization and the Fuel Cell and Hydrogen Technologies organization.

“

02

L

ed by Thad Ewald, VP – Strategy & President of New Power, the New Power Segment is Cummins fifth business segment and is focused on new and emerging alternative power technologies. The New Power Segment is made up of two separate but cohesive organizations: the Electrified Power organization and the Fuel Cell and Hydrogen Technologies organization. Working together to form the New Power segment, these two organizations design and manufacture alternative power sources, including electrified power, fuel cell and hydrogen technologies as well as other emerging technologies. These applications and technologies include electric school buses, commercial buses, light commercial vehicles, medium duty trucks as well as hydrogen fuel cell powered heavy duty trucks, buses and trains, as well as hydrogen production technologies.

F U E L C E LL A N D H Y D R O G E N TEC H N O LO G I E S Led by Amy Adams, Cummins Hydrogen & Fuel Cell Technologies organization is a subsection of the New Power Segment. Fuel Cell & Hydrogen Technologies designs, manufactures and installs industrial and commercial hydrogen generation and hydrogen fuel cells.

The applications developed include PEM and alkaline hydrogen generators for industrial processes, fueling stations and MW scale energy storage, and hydrogen fuel cells for vehicles, including transit buses, commercial trucks, delivery vans and rail, and also stationary power for critical and backup power.

Hydrogen & Fuel Cell Technologies has locations in Mississauga, Canada; Carlsbad, Milpitas and Dixon, California; Gladbeck, Germany; Oevel, Belgium; and China.

EL EC T RI F I ED PO WER Led by Julie Furber, VP – Electrified Power, Cummins Electrified Power is an organization that is a subsection of the New Power Segment. Electrified Power focuses on designing and manufacturing electrified power technologies and products, including battery electric powertrains for transit buses, school buses, light commercial vehicles such as pickup and delivery vehicles and medium duty trucks.

To date, the organization has introduced complete electrified powertrain solutions in six markets across seven applications. With it’s headquarters located in Columbus, Indiana, the Electrified Power organization also has locations in Talent, Oregon; Milton Keynes, England; China; and India.

2 0 2 0 E D ITION // 17

02

Cummins New Power

Milton Keynes Talent

OREGON Silicon Valley

CALIFORNIA Carlsbad

CALIFORNIA

ELECTR IF I E D POW E R

Capabilities Map 18 // NEW POWER

ENGLAND

Mississauga

ONTARIO

Malta

NEW YORK Columbus

INDIANA

Moscow Gladbeck

RUSSIA

GERMANY

Beijing

Oevel

CHINA

BELGIUM

Wuhan

CHINA

Pune

INDIA

map

key

2 0 2 0 E D ITION // 19

02

Cummins New Power

CUMMINS

Turnkey Electrified Systems

SYSTEM OFFERINGS

SERVICE + SUPPORT

F U E L CE L L & IC E N GIN E H Y BRID S

Prime Mover

Gen Battery

COMPONENTS

Fuel

H2

BAT T E RY M AT E RI A L S , ME A s & CELLS

Traction

O2

Fuel Cells

Battery Pack

Inverters & Converters

Controls

C H A R G I N G , C O N N E C T I V I T Y, 20 // NEW POWER

F U LL EL E C TRIC

Battery

Battery

Battery

Traction

Motor Generator Gear Boxes Engines Accessories, Cooling, Wiring

H2

Storage

I N T E G R AT E D P O W E RT R A I N SYSTEM

B AT T E RY / S TA C K R E US E O R R E C Y C LE

H Y D R O G E N G E N E R AT I O N + S U P P LY 2 0 2 0 E D ITION // 21

02

Cummins New Power

Partnering across markets to provide the right solution at the right time for our customers

22 // NEW POWER

“We’re offering customers viable solutions that they can invest in with the assurance that Cummins stands behind our products. We’ll support the product with our vast service and support network that they can rely on. Customers have the security that we’ll be there for the long haul and help them make significant changes in their industry.”

JULIE FURBER Vice President, Electrified Power 2 0 2 0 E D ITION // 23

02

Cummins New Power

Cummins battery packs are powering us forward Batteries aren’t just at the heart of our electric power systems — they are where our journey into electrified power began, and our batteries continue to mark major milestones in Cummins Electrified Power’s journey toward becoming the leader in electrified power.

We’ve set the base for strategic battery development programs targeting mini-excavators, buses and trucks.

Our battery development teams in Milton Keynes, England; Talent, Oregon and Columbus, Indiana designed and built batteries utilizing lithium-ion technology with a high energy density and proprietary control technology maintaining a high battery performance for a longer zeroemission range. The modular design allows the system to be scaled and aligned with the capability and duty cycle of the application.

Cummins lithium-ion battery portfolio includes battery packs and battery modules that can be integrated expertly with our new electric and hybrid powertrain portfolio, providing customers with a broad range of flexible, scalable power solutions for small and large commercial applications.

Cummins broad expertise ranges from low-voltage packs (battery modules that include our BM2.0E, BM4.4E and BM5.7E) that power material handling applications, all the way to high-voltage energy-dense battery systems (battery packs that include our BP35E, BP39E and BP74E) that have the energy needed for long-range buses and trucks.

Our Battery Portfolio BP74E

24 // NEW POWER

BP39E

BP35E

BM2.0E

BM4.4E

BM5.7E

1

LIG H T WE IG H T E NC LOSU RE

2

FLE X IB LE M ODU LE S

Cummins uses composite materials to create a super lightweight case that maximizes energy density and increases durability.

Our flexible, energy-dense modules

make it easy to scale battery packs to your specific vehicle application.

3

CROSS-FLOW COOLIN G Our modular cross-flow approach keeps cells at the optimal temperature range, prolonging battery life.

BP 74E

4

PROPRIETARY BATTERY MAN AGEMEN T SYSTEM (BMS) Cummins proprietary BMS is the brains of the pack. It keeps your vehicle safe by continuously monitoring and reacting to adjust key parameters.

5

TEMPERATURE CON TROL Targeting 77°F +/- 6°F, the battery thermal management system maintains isothermal performance of the battery.

2 0 2 0 E D ITION // 25

Cummins New Power

APPLICATION HIGHL IGHTS

02

1

2 1. BLUE BIRD EL EC T RI C SCHOOL BUS 2. F UEL CEL L BUS 3

4. ALSTOM FUEL CELL TRAIN 5. AEOS, FUL LY EL EC T RI C HEAVY-D UTY TR UC K 4

5 26 // NEW POWER

3. USPS EL ECTRIC VAN

6. F UEL CELL TR U C K

6

7.

H Y B R I D EL E C T R IC S ER V IC E V EH IC LE

8.

EL EC TR IC MINI E X C AVAT O R

9.

U NIP ER ’S P OWE R -T O-G A S FA C I L ITY, FALK E NHA G E N, G ER M A N Y: 2 M W EL EC TR O LY Z E R

10 . G I L L IG B ATTE RY EL EC TR IC B U S 11 . K A L M A R EL E C T R IC TER M INA L TR A C T OR

7

8

9

10

11 2 0 2 0 E D ITION // 27

02

Cummins New Power

A Holistic Approach to Vehicle Electrification We’re closer than ever to transforming vehicle propulsion, from delivery vans and trucks to trains and construction applications.

28 // NEW POWER

2019 saw a series of milestone moments for the conversation about

transportation, health and environmental protection. Many see a clear opportunity for manufacturers in the automotive sector to diversify into ultra-low emissions solutions such as battery-powered electric vehicles (EVs) alongside internal combustion engine-based offerings.

However, when the alternative power options have been on the horizon of the industry for some time, and when we’re seeing increasingly specific policy around both targets and infrastructure rollout, it’s worth questioning whether we’re moving as fast as we can, where the roadblocks are and how we might work together to overcome them.

many vehicles which cannot be left behind in the mission to reduce emissions.

Clearly, some of these vehicle types are closer to meeting the four factors of readiness than others. Current battery technology, for instance, cannot store power with the density that a heavy-duty truck would require in order to be viable.

However, the vehicle manufacturing sector could speak more clearly about the work being done to diversify power beyond the passenger car, such as progressing battery technology and innovating around the battery supply chain and lifecycle. More work can also be done on the infrastructure between cities to open up more flexible and efficient modes of operation for low-emissions vehicles, while policy could, of course, take a more holistic view of vehicle emissions in order to accelerate this transition.

There are four factors which need to come together to drive adoption of EVs: technological maturity, economic reality, regulatory surety and infrastructural capacity. Only after achieving all of these necessary targets will EVs move into the mainstream.

“

Technological progress in itself means that the stars are closer than ever to aligning across those four factors.

There are four factors which need to come together to drive adoption of EVs: technological maturity, economic reality, regulatory surety and infrastructural capacity. Only after achieving all of these necessary targets will EVs move into the mainstream.

But cars are just one part of the picture. In cities, heavy vehicles such as buses, delivery trucks and waste disposal trucks contribute a significant portion of overall emissions. Beyond cities, mass transport and freight services are just as significant a presence as personal vehicles — and off the public highway, there are

Technological progress in itself means that the stars are closer than ever to aligning across those four factors, setting us up for a large-scale transformation to how we power transportation, from delivery vans and trucks to trains and construction applications. Now is the time to come together in speaking more clearly about how to remove the final roadblocks.

This was originally written as an editorial and was published in Automotive World.

2 0 2 0 E D ITION // 29

“

02

Cummins New Power

Startups, Embracing Uncertainty and Unapologetic Focus 30 // NEW POWER

B

uzzworthy headlines, startups and even

rocket ships seem to define the world of electrification today. Just like other startups, our New Power business segment, comprised of our Electrified Power and our Fuel Cell and Hydrogen Technologies portfolios, has big plans and even bigger dreams. It’s poised and eager to push the boundaries of innovation and is ready to unlock the future of a world with diverse power.

New Power is focused solely on our core mission: becoming the leader in electrified power, along with other emerging power solutions, in all of the markets we serve.

When electrification is the best choice for our customers, Cummins will be ready to help them electrify. We are in the enviable position as a startup in that we don’t have to be distracted from our goal by financial woes or stunts to catch the attention of investors. More challenging for us — we can’t let infinite possibilities distract us from our core mission.

The world is changing quickly, and disruptive trends are making us rethink how we power the world. However, these trends are not necessarily evolving in a linear fashion. This is due to a variety of complex factors, including technology limitations and regulations.

The uncertainty of our markets is one of several factors that set New Power apart from other segments. At Cummins, we know our core markets inside and out — we’ve had 100 years to learn all about them. But we still have a lot to learn about electrification. Our newest business segment is strategically set up to leverage the best of Cummins — all of its experience, expertise and support — while remaining agile and flexible as we figure out the best product roadmap in this rapidly changing environment.

As a business segment, we’re excited to realize our potential and let the innovation of Cummins 10,000 engineers soar.

2 0 2 0 E D ITION // 31

02

Cummins New Power

CO LU M B US , I N

Robert N. Stewart Second Street Bridge

REASONS WHY COLUMBUS, INDIANA IS THE SILICON VALLEY OF ELECTRIC TRUCKS Conventional wisdom holds that most innovation comes out of Silicon Valley... or does it? When it comes to the future of electrified power in trucks, look no further than Columbus, Indiana.

Here are the top five reasons why a city in the heart of the Midwest is becoming a hotbed for a cleaner, greener future of transport.

32 // NEW POWER

People The people of Cummins are vital to all that we do. With access to a pool of sparky entrepreneurs internally, and with Purdue University, Notre Dame and Rose-Hulman Institute of Technology nearby, Cummins has access to some of the nation’s smartest engineers, primed to develop the electric solutions of tomorrow.

2 0 2 0 E D ITION // 33

02

Cummins New Power

Technology The Cummins Technical Center is our hub for research and development, and the place where our electrified power business got started. Our strengths in understanding catalysis for the Emission Solutions business kickstarted research into battery cell chemistries.

34 // NEW POWER

Location Fourteen interstate highways begin in, end at or pass through Indiana, earning the state the nickname “Crossroads of America.� This means great access to customers, land for off-highway vehicle testing and Lake Michigan for pushing electrified solutions to the next level.

2 0 2 0 E D ITION // 35

02

Cummins New Power

Service Scaling up to produce product repeatedly and reliably is no simple task.

Rest assured, Cummins has brought the same great minds together to develop our electrified power operations as we have done for the rest of the company’s businesses.

36 // NEW POWER

Culture THE WORLD IS CHANGING FA ST. Cummins has the people, know-how and facilities to drive innovation. After 100 years in business, we know our customers and what they need — and no one knows commercial vehicles like Cummins.

Columbus, Indiana has adopted the motto “Everywhere art and unexpected architecture.” Columbus is celebrated as one of the best small cities in the world for architecture lovers.

Where there’s art, there’s inspiration for bright ideas that lead to future innovation.

2 0 2 0 E D ITION // 37

02

Cummins New Power

ELECTRIFIED POWER

Adoption Indicators The adoption of an electric powertrain depends on total cost of ownership, infrastructure, technology and regulations. Cummins is working to improve the value proposition of electrified powertrains by researching technology to improve the performance, durability and affordability of battery systems.

Trend supporting acceleration in EV adoption

How do fully electric vehicles work?

Fully electric vehicles (EVs) may seem like the cars, vans and buses of the future, but they have actually been around since 1834. However, it wasn’t until recently that they gained popularity due to increased affordability and public desire to reduce carbon emissions.

What is a fully electric vehicle?

Fully electric vehicles are powered by an electric motor instead of a conventional internal combustion engine (ICE). The drivetrain, which supplies power to the vehicle’s axles, gets power from a collection of rechargeable batteries.

38 // NEW POWER

No significant change in signpost in favor of or against EV adoption

You may be familiar with hybrid vehicles, such as the Toyota Prius or other popular consumer models, but EVs are different. While hybrid vehicles run on both gasoline and battery power, EVs only run on a battery electric drive system.

How does an electric vehicle work?

It all starts with the battery supplying electrical energy to the stator, which is the stationary part of the motor’s rotary system. In turn, this electrical energy powers coils within the stator to create rotating magnetic fields that spin the rotor. This mechanical energy turns the gears of the car, which then rotate the wheels.

None of this movement is possible without an electrical charge. An EV is charged by plugging into a charging

Total Cost of Ownership

Infrastructure Readiness

Technology

Regulations

station or wall port. Passenger cars can charge using a 240-volt outlet similar to the outlet that powers a clothes dryer. Trucks, buses or delivery vans require a direct current charge of 150kw or 350kw.

An EV’s working range depends on the vehicle. A package delivery van featuring the Cummins electric drivetrain can go over 120 miles on a single charge. Cummins AEOS semitruck model has a range of about 100 miles, with potential for 300 miles in the extended range version.

While there is still plenty of room to grow, electric vehicle charging stations are becoming more embedded in urban infrastructure, making fully electric vehicles a viable option for urban transit, package delivery and school buses.

What does this look like in the real world?

Organizations across the globe are beginning to explore fully electric fleet options. School systems, public transit, postal delivery and other industries see great opportunity to benefit from the unique features of electric transportation. Cummins PowerDrive systems are already

being used in applications such as school buses, delivery trucks and package vans.

Electrification is at the forefront of global climate change solutions.

Cummins has been a leader in innovation for 100 years, and we’re proud to be driving the industry forward as a leading provider of electrified power solutions.

ELECTRIC CITIES:

Shifting into the Future of Electrified Transportation

Cities all throughout the world are embracing an electrified future — leading to cleaner air, quieter communities and more efficient transportation everywhere. There are a handful of standout cities across the world that have been adopting electrification in breakthrough ways, on a major scale.

2 0 2 0 E D ITION // 39

02

Cummins New Power

CHARGING INFRASTRUCTURE:

Laying the Groundwork for the Future of Electrification Power comes in many forms. For electric vehicles (EVs), it’s electricity.

It sounds simple enough, but transitioning a fleet to electrified power takes careful planning and a number of considerations in infrastructure.

At some point, you may need to make a u-turn and revisit a previous step.

40 // NEW POWER

Here are five considerations you should make during infrastructure planning, and how to navigate some of the many decisions you’ll face along the way.

F E A S I B I LI T Y Some communities may not yet have compatible grid power or electrical infrastructure to support large-scale EV adoption immediately. Even if the grid has enough power to support electrification at the aggregate level, there can be local limitations and power may not be available at the location it is needed.

Consider conducting a feasibility study to see what the limitations will be, if any, should your town, city or organization pursue electrified transportation. It can be helpful to get a third-party reality check to make sure your electrified ambitions are achievable with your community’s resources.

H A R DWA R E One of the first considerations in building out an electrified transportation system is your charging infrastructure — the nuts and bolts delivering power to your EV fleet. There are a lot of options currently out in the market, and a trusted advisor can help you navigate the many choices you’ll have for chargers and other hardware needed. By examining your fleet, your city’s layout, existing infrastructure and power availability, you’ll begin the process of deciding what chargers work best for your electrification strategy.

ROUTES Not only do you need to decide if and where chargers will be placed along routes (as opposed to only in a charging depot), but where your electric vehicles will drive.

Transit authorities and city planners must accommodate for the potentially limited range of EVs compared to that of vehicles powered by an internal combustion engine (ICE). But this can rapidly become a chicken-or-the-egg situation: Should you purchase your fleet based on your route requirements, or should you adjust your route requirements based on your chosen vehicles? Oftentimes, it’s a bit of both.

G R I D P OW E R When planning your electrification infrastructure, evaluate the grid power and determine what kind of chargers you need and the quantity of EVs they can support. The grid power your fleet will need will depend on the size of the battery in the vehicle, the energy requirement for the next day’s mission and the available time for the charging event.

Charging times can have a major impact on the overall cost of charging and will influence infrastructure design and route planning as well. It may work best to charge your entire fleet overnight in a depot, or your grid power may better support staggered charging throughout the day, either in a depot or on route.

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02

Cummins New Power

Are off-highway markets ready to take on the electrification challenge?

E

nergy diversity, connectivity and automation are key trends transforming

commercial industries across the globe. For off-highway markets, tough working conditions, long shift hours and high vehicle utilization are some challenges faced every day. As our industries evolve to mitigate these challenges, the Cummins portfolio is also evolving.

As the world looks for breakthroughs that will solve the problems of today and tomorrow, here are three ways in which electrification solutions for offhighway markets are challenging the impossible.

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1 2

Creating improved working environments Equipment that runs for long hours in contained zones can contribute to high emission concentration and reduced air quality. Electrifying the equipment found in these zones creates a better working environment by reducing workers’ exposure to emissions.

Facilitating new technologies Electric applications are leading the way in automation and development of anti-collision technology. Large numbers of sensors and sophisticated control systems contribute to benefits in reliability and performance, as well as reductions in operating costs. As the need for public transit grows, anti-collision technology will promote safer operation of vehicles.

3

Quieter construction sites Construction sites are inherently noisy — but change is possible. The all-electric mini excavator prototype powered by Cummins and Hyundai reduces noise pollution and extends working hours, so jobs can be completed faster.

K A LM A R TE R M I N A L TR AC TO R

For some working environments, electrified power solutions can present opportunities to improve the ways we work and even how we tackle new jobs, allowing operation in entirely new ways.

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PRODUCTS

Cummins Supplies Electrified Solutions for European Customers Cummins electrified solutions are all over the globe. See how we’re making leaps and bounds with two major European customers.

ELECTRIFIED P O W ER 44 // EL ECTRIFIED PO

KALMAR TERMINAL TRACTOR

DAF LF TRUCK

Kalmar, part of Cargotec, selected Cummins to be the electrification solution provider for the electric terminal tractor offering for the European market.

As the sole supplier of engines for the DAF LF, a distribution truck, Cummins has proven its reliability.

Building on our historic relationship, DAF, PACCAR’s European brand, approached Cummins with a new challenge: transform the powertrain of two 19-ton, medium-duty LF trucks from diesel to electric.

“By combining Kalmar’s next-generation terminal tractor platform with our lithium-ion battery expertise and experience in system integration, we will be able to deliver market leading, optimized electric powertrain solutions for port and distribution customers,” said Julie Furber, Vice President of Electrified Power, Cummins.

A transcontinental, cross-functional Electrified Power team quickly went to work, switching out the 6.7-liter engine for the sharp, hushed whirring of two electrical battery packs, each composed of seven BM8.9E battery modules connected in series. The DAFCummins electric prototype, modified at the Darlington Engine Plant, located in the United Kingdom, was showcased by DAF at the IAA show in September 2018.

A few months later, engineers from DAF visited the test track to experience firsthand the electric powertrain by test driving the truck. After concluding the test drive, the lead engineer from DAF was impressed with the performance of the vehicle.

The Kalmar T2 Terminal Tractor is slated for launch in 2020. The electric terminal tractor will be equipped with a 107 kWh lithium-ion battery capable of DC fast charge. This means that operators can take advantage of opportunity charging during shift breaks. To maintain battery life, a thermal management system keeps it within the optimal temperature range, enabling the machine to operate in a range of climates.

“We’re delighted to be releasing our second electric terminal tractor in 2020 with Cummins as our electrification solution provider,” said Gina Lopez, Vice President, Terminal Tractors, Kalmar.

The truck is fitted with a Battery Electric System (BES).

As we continue to understand the requirements of an electric powertrain system for medium-duty truck application, our learnings from this DAF prototype will be vital as the company continues to electrify across applications and markets.

“We selected Cummins because of our longstanding cooperation in providing world-class drivetrain platforms, their global reach and their strong commitment to leading the industry in electrification solutions.”

GINA LOPEZ Vice President, Terminal Tractors, Kalmar

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PP R RO OD DU UC C TT SS

Cummins Provides U.S. Postal Service with Fully Electric Vehicles in California

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Cummins has delivered eight Cumminspowered all-electric vehicles to the United States Postal Service (USPS). The fullyelectric vehicles, equipped with Cummins PowerDrive, help reduce vehicle emissions along with fuel and maintenance costs. The pilot program, made possible by a grant, placed the zero-emission vehicles in Fresno and Stockton, California.

“We’re excited to provide the U.S. Postal Service with these fully electric vehicles for demonstration and testing. Cummins has a storied history of providing dependable, quality innovations to help power a world that is always on,” said Julie Furber, Vice President of Electrified Power, Cummins.

The Cummins-powered vans began service in March 2019. The vans have an all-electric range up to 85 miles with a full load on urban drive cycles typical of USPS collection vehicles. The direct drive architecture provides improved performance over the gasolinepowered version in critical areas of power and efficiency.

“This program demonstrates our ability to help customers do real work in the real world.

We’re committed to continue as the leading power supplier in all the markets we serve with the right technology at the right time.”

JULIE FURBER Vice President, Electrified Power, Cummins

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P PR RO OD DU UC C TT S S

Santa Monica Has Arrived

On August 21, 2019, the city of Santa Monica, California came together to experience the clean power and potential of the firstever GILLIG battery electric bus, powered by Cummins. Everyone from local riders to government officials got to experience the latest in electric transit innovation.

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OFFICIALLY ON BOARD The battery electric bus was on display around town, traveling from downtown to the pier. City Manager Rick Cole was one of several people to ride the bus and discover firsthand how it could be the answer to a greener future for the city.

“Getting on board this big, beautiful bus is the way of the future,” said Cole. The rollout is the first step in Big Blue Bus system’s goal to transition to a clean energy fleet by 2030. Riders can experience the new zero-emission bus service on regular routes in Santa Monica, California.

BUILT ON EXPERIENCE The battery electric bus is the latest innovation from the partnership between GILLIG and Cummins, two of the most respected names in heavy-duty transit. With over 200 years of combined experience, GILLIG and Cummins have a long history of collaborating to develop power solutions for transit applications.

“The drivers’ response to the new bus has been great,” said Hector Calvinisti, Transit Training Coordinator at Big Blue Bus. “They are really surprised about how well it performs on our mobility landscape, especially when it goes up hills.”

“The technology has really advanced over the past few years, so we are really fortunate to be able to work with the bus.”

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PRODUCTS

OV ER 10 0

Blue Bird Electric School Buses PLUGGING INTO DISTRICTS

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+ Blue Bird’s clean, green electric school bus technology expands with Cummins partnership, saving schools money and cutting emissions.

Across North America, some students travel to school every morning on electric school buses.

More than 100 electric school buses, powered by a Cummins fully electric drivetrain, have been ordered to date from Blue Bird Corporation, a school bus manufacturer highly focused on alternative fuel technologies.

“The nation is increasingly influenced in electric vehicle transportation in general, and we anticipate rapid growth of electric school buses as more districts are educated on the zero-emissions and low-maintenance benefits they bring to their local communities,” said Phil Horlock, president and CEO of Blue Bird Corporation.

Blue Bird electric buses are already operating in California, North Dakota and Washington. Additional buses on order will transport students in California, Colorado, New Jersey, New York and Quebec in 2020.

Blue Bird has been working with electric technology in school buses since 1994, and recently partnered with Cummins for electrified power solutions including drivetrains for Blue Bird’s Vision Electric and All American Electric buses. The partnership brings over 30 years of electric drivetrain experience to this fast-growing segment, and almost 200 combined years of leadership in customer support.

“The amount of interest has been outstanding; people are very excited about a 100-percent electric-powered school bus.”

PH I L H O RLO C K President and CEO, Blue Bird Corporation

“Cummins and Blue Bird are committed to supporting customers and ensuring that we are safely transporting our children and improving air quality for communities. Schools can count on Cummins to deliver the same level of support and service network for these electric buses that we’re already known for.” said Julie Furber, Vice President of Electrified Power at Cummins.

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PRODUCTS

1 2

VEHICLE RANGE

CHARGING INFRASTRUCTURE

3

ROUTE PLAN

Electric buses offer a promising opportunity for the future of transit. All-electric buses produce zero emissions, require less maintenance, leverage connectivity and more advanced telematics compared to other powertrain systems.

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1. VEHICLE RANGE With the 2019 launch of the GILLIG Battery Electric Bus powered by Cummins, there are more opportunities than ever before for cities and organizations to explore the switch to electric vehicles.

Today’s electric buses offer impressive range, but any vehicle’s range can be affected by many factors, including weather, terrain, speed, number of stops and even bus

model. All drivers should be aware of their

vehicle’s average working range in a variety of situations and environments by collaborating with logistics professionals and engineers.

It is new territory in many applications, including public transit, school systems and more — but exciting developments and rapidly advancing technology promise new opportunity for transformational innovation.

2. CHARGING INFRASTRUCTURE City urban transit planners should also have a deep understanding of the vehicles a city

plans to use. Drive cycles, routes and charge time will all help determine the quantity and

location of charging stations. As an operator, it’s helpful to have an understanding of your city’s charging infrastructure.

Managing an electric bus fleet can spark a variety of questions, including concerns about charging the vehicles properly and efficiently. But don’t fret — we’ve got the three things you need to know about charging your electric bus.

3. ROUTE PLAN Careful route planning maximizes your

drive time, ensuring you’ll get where you’re going and get power when you need it.

Fleet managers work with engineers and

researchers to carefully predict range and

strategically plan routes to make sure you’re never left without a charge.

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PRODUCTS

Cummins Next Generation Battery Electric System Revealed at Busworld

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As both the European market and the bus segment

meet different OEM- and market-specific requirements

are fundamental drivers for electrification, Busworld Europe is a key event for Cummins and the New Power business unit due to the number of bus and coach operators, transport companies and transit authorities in attendance.

and proving the company’s commitment to providing customers with the right solutions at the right time.

At the 2019 show in Brussels, Belgium, Cummins displayed the next generation Battery Electric System for the very first time with an interactive display built in a 9-meter-long bus. The bus display showcased multiple battery mounting locations available within the latest electric drivetrain, demonstrating the ability to

The transformation from a diesel system to an electric system was a 12-week process. The entire diesel powertrain was removed and replaced with the new electric powertrain including the Low Profile Battery and the Integrated e-Drive, as well as existing products in the EPBU portfolio, such as the BP39E. Visitors to the show were able to take a guided tour through the bus to see the next generation electric system and technologies firsthand.

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P PR RO OD DU UC C TT S S

Cummins Strengthens its Fuel Cell and Hydrogen Technologies Cummins’ adds new hydrogen production technologies with acquisition of Hydrogenics Fuel cell capabilities officially came to Cummins in September 2019 when we closed on the previously announced acquisition of fuel cell and hydrogen production technologies provider Hydrogenics Corporation.

“We are thrilled to welcome the Hydrogenics employees to the Cummins family,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “Hydrogenics is one the world’s premier fuel cell and hydrogen production technologies providers and their expertise and innovative approach will strengthen Cummins’ fuel cell capabilities. This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers.”

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Cummins began developing its fuel cell capabilities more than 20 years ago and the acquisition of Hydrogenics with Air Liquide’s support accelerates Cummins’ ability to further innovate and scale hydrogen fuel cell technologies across a range of commercial markets. Owning both fuel cell and hydrogen generation from electrolysis capabilities will enable the company to offer a full, differentiated hydrogen solution, from start to finish, seamlessly integrated for customers.

Hydrogenics is now part of Cummins New Power Segment and is part of New Power’s Fuel Cell and Hydrogen Technologies organization.

“Air Liquide and Cummins have a shared vision of the key role that hydrogen plays in the energy transition. As a shareholder, and more widely as a company, Air Liquide is highly supportive of a hydrogen-based society.”

“The two global companies, leaders in their sector, have complementary expertise in the development of hydrogen energy. Thanks to Cummins’ investment, we believe Hydrogenics technologies will be able to accelerate significantly their development.”

PI E R R E ETIEN NE F RANC CEO, The Hydrogen Company In addition to acquiring Hydrogenics, Cummins also announced an investment in Loop Energy, a fuel cell electric range extender provider, and signed a memo of understanding with Hyundai Motor Company to collaborate on hydrogen fuel cell technology across commercial markets in North America.

Cummins Invests in leading fuel cell technology company Loop Energy In September 2019, Cummins invested in Loop Energy, a leading provider of fuel cell electric range extenders for medium and heavy-duty transport applications.

Loop Energy will supply Cummins with range extender systems for incorporation into demonstration trucks.

Loop’s no-compromise module provides a breakthrough in terms of cost and power density, allowing truck operators to transition to zero-emissions without an impact to cost of ownership.

“Cummins is investing in a broad portfolio of power solutions, including advancements in hydrogen fuel cell technologies and the electrification of commercial applications,” said Thad Ewald, Vice President of Corporate Strategy, Cummins. “This investment is continued evidence of our commitment to next-generation trucking technologies, and we look forward to working with Loop Energy to further validate the provision of zeroemissions fuel cell range extenders for customers.”

Hydrogen fuel cells are gaining interest from transportation industry leaders as they can facilitate the transition from vehicles running on fossil fuels to sustainable electric solutions. In commercial transport applications, fuel cell range extended vehicles emit no greenhouse gas or pollutant emissions and there is no impact to vehicle payload weight, power demands or refueling time compared to battery-only systems.

“Cummins investment in Loop Energy affirms the positioning of our company and technologies to meet the demand for a cost-effective alternative to the internal combustion engine in commercial trucking,” said Ben Nyland, President and Chief Executive Officer of Loop Energy. “This new investment by Cummins is solid evidence of the traction we are gaining in the market through investments, customer orders, and vehicle demonstration programs.”

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P PR RO OD DU UC C TT S S

5 KEY QUESTIONS ABOUT THE NEXT FRONTIER:

HYDROGEN FUEL CELLS

Fuel cell technologies have grabbed headlines lately, and rightly so. If sourced from renewable means, an element such as hydrogen can be a zero-emission, extremely efficient fuel source capable of powering anything from vehicles to data centers. So, what are fuel cells and how do they work?

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Q: What are fuel cells?

A: A fuel cell uses the chemical energy of hydrogen, natural gas or other hydrocarbon fuels to generate electricity. Unlike a battery, a fuel cell system does not store energy — it relies on a constant supply of fuel and oxygen. A Proton Exchange Membrane fuel cell, also known as a hydrogen fuel cell, uses hydrogen exclusively as the fuel. In the case of hydrogen-powered fuel cell electric vehicles (FCEV), hydrogen is typically compressed and stored in tanks that are attached to the vehicle.

Q: How do hydrogen fuel cells work?

A: A fuel cell consists of two electrodes separated by an electrolyte. Each fuel cell is only a few millimeters thick and hundreds of them are stacked together to build a fuel cell stack.

The supply of hydrogen comes from a tank attached to the vehicle.

The fuel is fed into the anode while oxygen is introduced to the cathode.

For the most part, a catalyst is introduced between the electrodes, which causes electrons to travel through an external circuit.

Q: What are the benefits of hydrogen fuel cell technology?

A: Compared to the electric batteries of today, fuel cell powertrains would

have a higher energy density and are quicker to refuel, making them more suitable for applications with longer daily ranges. Analyses indicate that PEM fuel cells could be a viable solution for medium to long haul trucks, while battery-only vehicles may be more suitable for short hauls because of the weight associated with long-haul battery requirements.

When vehicles do need to refuel, hydrogen refueling is much quicker compared to recharging batteries.

Fuel cells also offer great flexibility due to their modular design: fuel cell systems and storage tanks can be tailored to meet the needs of different applications across different markets.

Hydrogen can be sourced from water using a process called electrolysis, which uses electricity to separate a water molecule into hydrogen and oxygen. Thus, fuel cells can be a decarbonized source of energy.

Q: What are the current challenges of hydrogen fuel cell technology?

A: Fuel cell technology is still developing, which means there is limited real-world testing and limited investment in infrastructure.

Customers also have a higher upfront vehicle cost with payback largely dependent on the price of fuel.

Fuel cell electric vehicles do offer flexibility allowing customers the option to refuel with hydrogen or recharge with electricity depending on which provides the best value, but

long-term savings on those operating costs will be directly connected to the price of hydrogen.

These systems are also challenged by increased weight, reduced power density and increased refueling time, creating challenge when compared to traditional liquid fuel refill times for similar amounts of fuel energy.

Q: Is Cummins involved in hydrogen fuel cell technology?

A: Absolutely — and we have been for years. In 2014, Cummins joined a pilot project to explore the development of the first hydrogenfueled transportation system in Costa Rica. In 2018, we joined the Hydrogen Council, a global coalition that explores and promotes hydrogen as a clean energy fuel source.

In September of 2019, Cummins acquired fuel cell and hydrogen production technologies provider Hydrogenics Corporation.

Hydrogenics’ expertise and innovative approach represents another step forward as Cummins continues to provide a broad range of clean, fuel-efficient and highperforming products.

The acquisition of Hydrogenics was shortly followed by an announcement that Cummins has entered into a partnership with Hyundai Motor Company to jointly evaluate opportunities to develop and commercialize electric and fuel cell powertrains.

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P PR RO OD DU UC C TT S S

Making a splash with our hydrogen fuel cell heavy-duty truck

The latest innovation from

UNVEILING IN A BIG WAY

Cummins made a big splash at

After many months of behind the scenes work, Cummins unveiled a heavy-duty truck with fuel cell and battery electric power. The zero-emission class 8, 6x4 day cab tractor is a technology demonstrator suitable for vocational applications including regional haul, urban delivery operations, port drayage and terminal container handling.

the North American Commercial Vehicle Show (NACV) in Atlanta.

Building upon a long history of innovation and delivering industryleading solutions, Cummins displayd the newest development in the powertrain of choice: hydrogen fuel cell power.

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UNDER THE HOOD Designed and integrated by Cummins in Columbus, Ind., the truck includes a proton exchange membrane (PEM) fuel cell from Hydrogenics, a recent addition to the Cummins family. The truck was designed for 90 kW fuel cell and is scalable in 30 kW or 45 kW increments up to 180 kW. The fuel cell truck also has 100 kWh lithium-ion battery capacity.

The truck has a range of 150-250 miles between filling up, but that range can be extended with additional hydrogen tanks, increasing the tank storage pressure or installing additional fuel cells to optimize management of the vehicle load factor.

THE TEAM BEHIND THE INNOVATION

LOOKING TO THE NEXT 100 YEARS

The truck was designed and built at the Cummins Machine Integration Center (CMIC) in Columbus. The facility supports global vehicle integration efforts for multiple business segments for on- and off-highway equipment and features a dedicated EV Lab for electrification work.

Cummins strategy is to provide our customers with a range of power options, from diesel and natural gas internal combustion engines to battery electric and hydrogen fuel cell solutions. In the long-run, the customers we serve will likely need more than one type of power, depending on their specific markets, applications and use cases.

More than 30 engineers and technicians and numerous suppliers had a hand in taking this from a concept to reality. This includes countless dedicated members of New Power’s systems engineering and technology leadership teams, R&T and the technical operations team at CMIC.

To this end, Cummins has made several recent announcements around fuel cells like the acquisition of Hydrogenics, a memo of understanding with Hyundai to collaborate on hydrogen fuel cell technology and an investment in Loop Energy, a fuel cell electric range extender provider. Developing the hydrogen fuel cell truck as a technology demonstrator is a critical step in gaining valuable insights that are critical to continue developing the right solutions for the market and preparing for next 100 years.

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P PR RO OD DU UC C TT S S

Hyundai Motor Company and Cummins collaborating on hydrogen fuel cell technology

Hyundai Motor Company and Cummins announced in September 2019 that the two global powertrain leaders have entered into a memorandum of understanding (MOU) to jointly evaluate opportunities to develop and commercialize electric and fuel cell powertrains.

These new powertrains are expected to be developed by combining Hyundai’s fuel cell systems with Cummins’ electric powertrain, battery, and control technologies. The initial development will be focused on the North American commercial vehicle market, including working with North American OEMs on the integration of these systems into their vehicles. The companies will also explore ways they can work together to develop next generation fuel cell systems, and have each committed to assign a team of individuals to investigate and pursue other areas of collaboration.

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“This partnership is a terrific opportunity for both companies to leverage our respective strengths and create new opportunities to grow and broaden the product portfolio we bring to our customers,” said Thad Ewald, Vice President, Corporate Strategy, Cummins Inc. “We’ve made significant investments over the past year to accelerate our fuel cell capabilities including our acquisition of Hydrogenics and this partnership is another step forward.”

“With Hyundai’s global leadership in fuel cell systems coupled with Cummins’ unparalleled electrified powertrain technologies, we expect this partnership to leave a mark in the commercial vehicle market.”

The MOU comes at a time of heightened demand for fuel cell technology. Hydrogen can be produced from renewable sources, stored economically, and deployed for a diverse range of industrial and residential energygeneration applications; as well as used in fuel cell passenger cars and commercial vehicles. Energy experts predict hydrogen will become increasingly important in meeting fast-growing global energy demand, while also supporting efforts to drive down carbon emissions from energy generation.

Hyundai Motor is a world leader in the development of hydrogen fuel cell technology, having opened the world’s first commercial production facility for fuel cell vehicles in 2013, and released the world’s first commercialized hydrogen-powered vehicle, the Tucson Fuel Cell, in 2015.

The NEXO, Hyundai’s second-generation fuel cell electric vehicle with a range of over 610 kilometers, is a versatile, three-row SUV that emits clean water vapor and even purifies the air while driving.

S A E HO O N KIM Vice President & Head of Fuel Cell Group Hyundai Motor Group “Collaborations such as this will enable us to further diversify our business, as well as reinforce our global hydrogen leadership through sales of new and existing Hyundai fuel cell systems.”

The new collaboration may extend beyond the commercial vehicle market, as the companies will also evaluate the development of fuel cell power generators.

The availability of reliable back-up power generation to prevent data loss in emergency situations is a businesscritical requirement for many organizations. Fuel cell back-up power generation is attractive for its reduced carbon footprint.

Hyundai fuel cell systems are comprised of fuel cell stacks which convert stored hydrogen into electricity, as well as other sub-components — collectively referred to as balance of plant (BoP) —for thermal management and air supply among other integral processes for power generation.

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SSUUSSTTAAI N I NAABBI LI LI TI TYY

E

R TE

US To build a more prosperous world, we must protect and preserve the environment.

Cummins cares about the environment, delivering products meeting strict emission standards around the world and reducing greenhouse gases. We also set and meet aggressive facility goals for waste, water and energy.

Here’s a quick look at some key environmental data and the 2020 goals we’ve set around waste, water and energy.

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USE BET

AIN G A

L E SS E S U

Cummins Environmental Goals Cummins 2030 environmental sustainability goals are the company’s most ambitious ever.

1

Address Climate Change

2

Use Natural Resources Sustainably

3

Make a Positive Environmental Impact in Our Communities

Our work is governed and reviewed by senior leaders and the Cummins Board of Directors, with transparent reporting on its progress, and Cummins is nearing many of its 2020 goals and working on new goals for the future.

Completed Goals Waste

Recycling rate of 95%, zero disposal at 30 sites

By the Numbers

64

sites with at least 100 employees at 95% recycling goal or better

23

Water

sites at 50% or greater water intensity reduction goal, saving more than 700 million gallons since 2010

Energy

$15M

Water intensity reduction of 50%, water neutrality at 15 sites

Energy intensity reduction of 32%, increased renewable energy opportunities

Logistics

10% reduction in carbon dioxide (CO2) per kilogram of goods shipped in the Cummins network

Products in Use

350 million metric ton annual run rate reduction in CO2 through more than 300 projects with Cummins customers

Recognition Dow Jones sustainability index for North America for 14 consecutive years #14 on Barron’s list of America’s most sustainable companies

investment in 140 energy efficiency and solar capital projects in 2018

250M

metric tons of CO2 to be reduced by 2030

700M

gallons of water saved since 2014

28%

of global energy use offset by support of Indiana windfarm expansion

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S U S TA I N A B I L I T Y

5 Key Questions About the Sustainability of Electric Vehicle Batteries As demand for both commercial and private electric vehicles grows, so will the need to develop sustainable solutions for dealing with the lithiumion batteries they use. Here are five key questions to consider.

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Q: What are second-life batteries?

A: Lithium-ion batteries in electric vehicle applications operate under extremely demanding conditions and will eventually degrade to a point where their total usable capacity and other performance requirements no longer meet standards — but these batteries still contain 70% to 80% of their initial energy capacity, which can be used in other ways. Second-life batteries are electric vehicle batteries that have been repurposed for use in another less demanding application, such as stationary energy storage.

Q: What happens when electric vehicle batteries reach the end of their useful life?

A: As things stand today, there are three basic options: dispose, recycle or reuse. Recycling lithium, however, can be tricky because it’s a highly reactive element. Recycling plants capable of handling lithium-ion batteries are in the early stages of development. With the negative environmental implications of disposal, reuse is quickly becoming the most viable option from both an environmental and economic standpoint. A new term is developing for this option: second-life batteries.

Q: Why are second-life battery solutions important for electric vehicle manufacturers?

A: As the metaphorical stockpile of partially used batteries grows, manufacturers will be expected to have solutions in place that are both environmentally and economically sustainable.

Second-life batteries are environmentally responsible because they extract additional usable energy that would otherwise go to waste. This solution also delays the recycling process, allowing procedures to be developed and improved.

Second-life batteries are economically sustainable because they create an entirely new revenue stream for manufacturers. When their batteries are no longer suitable for use in an electric vehicle, manufacturers can remanufacture them to suit less demanding applications, then resell them.

Q: What does this look like in the real world?

A: The most common application for second-life batteries is stationary energy storage, because it demands relatively low current and energy density from the battery pack.

Stationary energy storage is important because it allows energy to be captured for future use. As the world continues to prioritize the shift to renewable and diversified energy sources, the ability to store energy can make those sources more robust and less dependent on traditional energy sources.

Q: What’s Cummins doing to help?

A: Cummins recently announced a multi-year partnership with the battery validation lab at University of California San Diego to examine approaches to reuse and repurpose electric vehicle batteries.

The lab will test and validate real-world applications and create a second-life demonstration system comprised of Cummins battery modules. The batteries, once fully developed, will be used in both school and transit buses.

Cummins is determined to work with the electric vehicle manufacturers who use our products to ensure lithium batteries can be handled in both environmentally and economically sustainable ways.

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SU US S TTA A II N NA AB B II LL II TT Y Y S

Cummins partners with the University of California San Diego on second-life battery development Cummins announced a multi-year partnership with the

integration solutions for second-life battery systems and

battery validation lab at University of California San

validate stationary energy storage system performance

Diego (UC San Diego) to analyze viable business and

under grid energy storage applications.

technical approaches to effectively reuse and repurpose electric vehicle batteries.

Batteries retired from electric vehicles still maintain significant battery capacity. While that capacity may no

Under the agreement, UC San Diego will perform

longer meet the minimum requirements for the initial

accelerated testing and real-world application testing,

application, they could provide sufficient capacity for less

and will develop an outdoor second-life demonstration

demanding applications. Repurposing batteries to less

system comprised of Cummins battery modules. The

demanding applications not only provides a higher value

collaboration will enable Cummins to acquire valuable

through the life of the battery, it increases sustainability

data on the aging behaviors of its battery modules, test

by postponing recycling as well.

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&

“Electrification has the potential to play an enormous role as we move toward decarbonization of many industries, but in order to maximize that potential, it’s crucial that we focus on the sustainability of the entire product life cycle,” said Julie Furber, Vice President of Electrified Power at Cummins.

“Cummins is the nexus between the transportation and stationary energy storage sectors.”

MIKE FERRY Director of Energy Storage and Systems at the Center for Energy Research, University of California San Diego

“Battery module design is a crucial aspect to making second-life more feasible and their experience will be invaluable as we continue to develop solutions.

Given their reputation, global footprint and all they’ve accomplished in the last century, it’s a real privilege to partner with them on this project,” said Mike Ferry, Director of Energy Storage and Systems at the Center for Energy Research, University of California San Diego.

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05

OUR PEOPLE

FEEL THE ENERG Y

Our Innovators and Experts Build the Future

If I wouldn’t buy it, it isn’t going into our products.”

Terri Wallace Think Like a Customer As a Harness Design Engineer in Electrified Power at Cummins, Terri’s role involves the mechanical and electrical design, installation and fitment of harnesses into Cummins battery packs. Terri’s approach to design is simple: “If I wouldn’t buy it, it isn’t going into our products.”

By thinking like a customer, Terri brings a high level of meticulousness into her work, ensuring the placement and existence of all harnessing is functional and highquality. Her greatest satisfaction is receiving the wiring from a supplier and seeing it fit perfectly into the pack.

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We could be talking about a complete revolution of transportation in the next few decades.

Being part of that evolution is really exciting.”

Engineering Without Boundaries As an Electric Vehicle System Integration Specialist, Odaro is on the front lines of innovative change in the transportation industry, implementing new electric bus technology on a daily basis. And that’s exactly where he wants to be.

Odaro sees plenty of changes brewing in his future with Cummins, which excites him even more.

The potential for growth, for innovation, for new possibilities in electrified power — there’s a certain mystery about what’s on the horizon. For Odaro, the great unknown is a fun place to explore.

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OUR PEOPLE

“Our whole team is new. I like that everyone’s learning together. It’s chaotic, but in a good way — it’s really fun.”

Rima Salve

Making Her Mark in Electrification When it comes to career enthusiasm, you’ll be hard pressed to find someone who’s more excited about her prospects than Power Electronics Systems Engineer Rima. She exudes pure energy as she talks about the future of Cummins and how she’s an integral part of it.

Although her EPBU team and the challenges they face are new, the welcoming culture that drew Rima to Cummins in the first place is still here. No matter where her day takes her, fellow team members are always willing to lend a hand or provide guidance.

It’s the cooperative culture that pushes Rima forward, along with the knowledge that she’s a valuable team member helping to push the limits of electrification to make widespread impact on the future of power.

Interested in a career in electrification at Cummins?

Visit careers.cummins.com/electrification

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My challenge is to make sure the experiments we design and the data we produce is the best quality. The data we provide serves as the backbone of our products.”

Information for a World of Success As the Laboratory Operations Manager at the Electronic Chemistry Lab in Milton Keynes, Fin oversees a 24/7 production. The lab is always running, always performing tests that characterize lithiumion battery cells, which are the building blocks of a prismatic battery pack. The data produced from these tests guide the design of Cummins electric batteries.

The right data enables the engineering team to determine which are the best cells to use in products and how they should be built into a module to ensure we build a superior product that meets our customers’ needs. Fin summarizes the importance of his role, saying “The survival of the business relies on the information we provide.”

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IN THE NEWS

NEWS 74 // ELECTRIFIED P O W ER

“Cummins has been a clear

“With its massive presence in

leader in electrification and

both vehicle and stationary

while other engine and

power markets, Cummins is in

powertrain manufacturers have

a unique position to execute

followed, none have been as

on the battery-powered

comprehensive and determined

ecosystems that the EV

to make it happen as the folks

industry has been discussing at

in Columbus, Indiana. And

conferences for years.”

that’s news. And that’s the 2018 Newsmaker of the Year.”

“We are impressed by the thoughtfulness and strategic direction of the electrified “Diesel engine manufacturer

power business.”

Cummins beat Tesla to the punch by unveiling its own electric truck at a recent event at the Cummins Technical Center in Columbus, Indiana.”

“Electrifying news: Cummins chooses city as HQ for new business segment.”

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FINAL NOTE

The Importance of the Not-So-Distant Future It’s Wednesday morning and the Silicon Valley is witnessing a rare winter storm in February when Dr. Franklin Chang Díaz arrives at the Cummins Electrified Power Milpitas site. Chang Díaz, along with Vice President of Corporate Strategy Thad Ewald and Vice President of Electrified Power Julie Furber, are spending the day on a tour of the electrified power sites in Talent, Oregon and Milpitas, California. The group is visiting to see how the teams are bringing innovation to life and delivering for our customers, as well as sharing their own insights and direction for the business.

Chang Díaz has been on the board of directors at Cummins for nearly 10 years. As a board member, he’s focused on representing and protecting the interests of shareholders and positioning Cummins for the future. Prior to Cummins, Chang Díaz spent 25 years working at the National Aeronautics and Space Administration (NASA), manning their shuttles and working to build the International Space Station. Chang Díaz is now the chairman and CEO of Ad Astra Rocket Company, a U.S. spaceflight engineering company based in Houston, Texas.

As a former NASA astronaut, Chang Díaz has extensive experience in looking ahead,

planning for the future and bringing to life innovative technology that challenges the limits of reality. He attributes his success today to unwavering perseverance in the face of adversity, despite the language barrier and financial trials.

It is this experience looking into the future that allows Chang Díaz to be an important figure at Cummins. Space travel had once been something of a pipe dream, yet we have achieved flights to and from the great beyond.

Now, we have turned our energy to a seemingly even greater challenge: the electrification of the most ubiquitous forms of transportation, for both cargo and passengers, right here at home. Chang Díaz oversees this charge at Cummins with the same vigor that he used to spearhead humanity’s ascent into space — with an unapologetic view of what is possible.

Although electrification activities have been happening throughout Cummins for many years, we’ve only begun to scratch the surface of how we’re delivering electrified solutions for our customers. As technology, infrastructure, regulation and customer demand all evolve, Cummins is positioned to deliver quality solutions now and well into the future.

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