Reciprocating Engines For Stationary Power Generation Technology Products Players and Business Issues

Reciprocating Engines for Stationary Power Generation
Technology, Products, Players, and Business Issues
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Reciprocating Engines for

Stationary Power Generation
Technology, Products, Players, and
Business Issues
GRI-99/0271
EPRI TR-113894
Final Report, December 1999
Project Managers
W. Liss, GRI
J. OSullivan, EPRI
GRI 8600 West Bryn Mawr Avenue, Chicago, Illinois 60631 USA
773.399.8100 www.gri.org
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CITATIONS
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Principal Investigator
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This report describes research sponsored by GRI and EPRIGEN.
The report is a corporate document that should be cited in the literature in the following manner:
Reciprocating Engines for Stationary Power Generation: Technology, Products, Players, and
Business Issues, GRI, Chicago, IL and EPRIGEN, Palo Alto, CA: 1999. GRI-99/0271, EPRI
TR-113894.
iii
REPORT SUMMARY
Reciprocating engines (REs) have long played an important role in the distributed resources
market and should, in the future, continue to provide end-use customers and energy companies
benefits in both onsite and grid-connected power generation service. This report presents a
comprehensive worldwide overview of RE technology and the business climate for these
products.
Background
REs have been the preferred customer choice for on-site standby and emergency power systems
and, in recent years, for a growing number of peakshaving, intermediate, and baseload power
generation applications. The customer acceptance of reciprocating engines results, in part, from
their competitive pricing, proven track record, and established sales and service infrastructure.
These prime movers are also used by a number of utilities for meeting their power generation
requirements, particularly municipalities and other smaller power producers. The competitive
positioning of RE products and the status of different players in the market is a key factor in
understanding the potential of this established technology.
Objectives
To provide a comprehensive overview of RE technology and key product characteristics,
including efficiency, power density, durability, reliability, maintenance costs, and emissions.
To present a comprehensive worldwide overview of the companies (and their products)

participating in the stationary RE business.
Approach
This report is based on primary and secondary research and interviews with key players and
stakeholders in the RE market. The project team gathered information on the latest technology
and product developments as well as the competitive positioning of RE companies worldwide.
The team also reviewed numerous representative existing projects using REs.
Results
The worldwide stationary RE business is substantial. In terms of power generation capacity sold
and revenues, the RE business is similar in magnitude to the demand for large combustion
turbines. RE products are most competitive below 15 MW, where their cost and efficiency begin
offering significant benefits over combustion turbine products. RE demand continues to increase
substantially, building on a growth rate of nearly 255% for larger (over 1 MW) REs in the past
decade. This demand growth includes diesel power generators and, increasingly, spark-ignited
and dual-fuel natural gas-fired REs.
Strong competition and market factors are pushing RE manufacturers and packagers to further
improve their product and service offerings. The specific cost ($/kW) of RE generator sets is
decreasing while evolutionary advances in electrical generation efficiency are being achieved.
RE technologyespecially larger, low-speed diesel enginesprovides the highest simple-cycle
power generation efficiency in the market. Advanced products offer 45-50% efficiency.
Environmental regulations and intertechnology competition from combustion products and
emerging technologies (such as microturbines and fuel cells) place continuing challenges on both
diesel and clean-burning natural gas RE technology. Fortunately, a number of combustion and
postcombustion RE emission control options exist for satisfying most worldwide environmental
regulations.
Over the past decade, there have been several mergers, acquisitions, and strategic alliances
formed in the RE area. This trend is expected to continue in the near future, as a number of
worldwide players seek to enhance their competitive position and strength in this market. Such
trends are likely to result in stronger product lineups from leading players and more efficient use
of sales and service channels for different products.
EPRI Perspective
REs, as noted, are the dominant player in the distributed generation marketplace up to 10 MW.
At larger sizes combustion turbines become more competitive. The DOE advanced turbine
program is targeting the 4-12 MW market to provide improved turbines in this size range. The
new competitors, fuel cells and microturbines (up to 300 kW), will have to find their special
market entry niches to survive. Fuel cells (~200 kW) are finding a home in premium power, but
the price ($/kW) is still too high. Similarly, the performance and price of microturbines is still
too uncertain to delineate the applications within which they make economic sense. To help
energy companies meet such market uncertainties, EPRI and GRI have cosponsored a series of
reports dealing with various technologies and their role in the growing marketplace of distributed
generation.
EPRI TR-113894
GRI-99/0271
Keywords
Distributed resources
Power generation planning
Reciprocating engines
Cogeneration
Emission limits
vi
EPRIGEN Licensed Material
ABSTRACT
The Distributed Resources (DR) market is projected to be an expanding part of the power
generation mix in the futures as the market shifts from a strong reliance on large, central station
power plants to greater use of smaller, more dispersed power generation sources located closer to
load centers.
This is a state-of-the-art report on reciprocating engine (RE) technology, products,
manufacturers/suppliers, and industry business issues impacting the application of REs for the
stationary electric power market. The primary target readers are domestic energy companies
particularly electric utility companiesand others that may not be very familiar with stationary
engines beyond diesel standby units.
The report focuses on the status of RE technology, the products available from the key
companies in both the U.S. and international markets, products under development by these
companies, and a business assessment of these companies and their products relative to the
international market.
The primary emphasis is on natural gas-fueled spark-ignition (SI) engines in the 300-5,000 kW
unit size rangefor distributed generation (DG) applications. The status of natural gas-fueled
dual-fuel (DF) engines and diesel engines is also reviewed in appropriate depth. DG includes
both on-site generation and grid-connected powerusing any type of power generating
technologynominally in plant sizes up to 25 MW.
vii
CONTENTS
1 INTRODUCTION.................................................................................................................. 1-1
Background ........................................................................................................................ 1-1
Markets and Business Climate....................................................................................... 1-1
REs Versus CTs ............................................................................................................ 1-1
Report Objective................................................................................................................. 1-2
Report Basis and Organization........................................................................................... 1-3
Technology Types and Characteristics (Chapter 2) ....................................................... 1-3
Environmental Performance and Emissions Control (Chapter 3).................................... 1-4
Other Fuels (Chapter 4) ................................................................................................. 1-4
Economics (Chapter 5) .................................................................................................. 1-4
Key Companies, Products, and Business Issues (Chapter 6) ........................................ 1-5
2 TECHNOLOGY TYPES AND CHARACTERISTICS............................................................ 2-1

Introduction ........................................................................................................................ 2-1
Overview ............................................................................................................................ 2-2
RE Types....................................................................................................................... 2-6
Engine Speed Classifications and Characteristics ......................................................... 2-7
BMEP, Engine Speed, and Power Output.................................................................... 2-10
Turbocharging.............................................................................................................. 2-11
Maintenance Factors ................................................................................................... 2-13
Reliability and Availability ................................................................................................. 2-13
Power Generation and Useful Thermal Output ................................................................. 2-14
Generating Sets (Gensets)Full Load and Part Load Heat Rates............................... 2-14
Standard Conditions for RE Ratings ............................................................................ 2-16
Load Service Ratings................................................................................................... 2-17
Thermodynamic Differences Between REs and CTs.................................................... 2-17
Waste Heat UtilizationCogeneration......................................................................... 2-18
RE Types and Characteristics .......................................................................................... 2-19
ix
Operating Cycles ......................................................................................................... 2-19

4-Stroke Otto Cycle................................................................................................. 2-19
4-Stroke Diesel Cycle.............................................................................................. 2-20
2-Stroke .................................................................................................................. 2-22
Natural Gas Spark-Ignition (SI) Engines ...................................................................... 2-24
Power Density and Costs ........................................................................................ 2-26
Fuel Considerations and Issues .............................................................................. 2-26
Air/Fuel Ratio and Engine Size................................................................................ 2-27
Precombustion Chamber (PC) SI Engines .............................................................. 2-29
Spark-Plug Life........................................................................................................ 2-32
Retrofitting Older SI Engines for Leaner Combustion and Lower NOx..................... 2-32
Dual-Fuel (DF) Engines ............................................................................................... 2-33
Conventional DF Engines........................................................................................ 2-34
High-Pressure Gas-Injected DF Engines................................................................. 2-36
Micropilot Prechamber DF EnginesLiquid Spark Plug Engines.......................... 2-37
Aftermarket Conversions of Diesel Engines to DF Operation .................................. 2-39
Diesel Engines............................................................................................................. 2-42
High-Speed Diesel Engines..................................................................................... 2-43
Medium- and Low-Speed Diesel Engines................................................................ 2-43
Technical Issues and Development Trends ...................................................................... 2-46
Competitive Pressures................................................................................................. 2-46
Issues .......................................................................................................................... 2-46
Development Trends.................................................................................................... 2-48
High-Performance SI Engines ................................................................................. 2-48
Autoderivative Engines............................................................................................ 2-50
The Miller Cycle ...................................................................................................... 2-51
DF Engines ............................................................................................................. 2-51
The Advanced Reciprocating Engine Systems (ARES) Program............................. 2-52
Diesel Engines ........................................................................................................ 2-53
Outlook ........................................................................................................................ 2-54
Market Applications and RE Systems............................................................................... 2-54
Distributed Generation (DG) ........................................................................................ 2-61
Basic GensetsSimple Cycle ..................................................................................... 2-61
Standby/Emergency Power ..................................................................................... 2-61
Peaking, Peakshaving, Peaksharing ....................................................................... 2-61

Intermediate Load (Cycling) .................................................................................... 2-62
Continuous and Baseload ....................................................................................... 2-63
Mechanical Drives................................................................................................... 2-63
Cogeneration/Combined Heat and Power (CHP) ......................................................... 2-63
Combined Cycle .......................................................................................................... 2-65
Conventional Combined Cycle ................................................................................ 2-65
Turbo Compound Systems...................................................................................... 2-66
Hot Windbox Repowering........................................................................................ 2-66
RE Power Plant Supply................................................................................................ 2-67
Packaged and Containerized Units and Plants........................................................ 2-67
Custom-Engineered Plants ..................................................................................... 2-67
3 ENVIRONMENTAL PERFORMANCEEMISSIONS CONTROL........................................ 3-1

Introduction ........................................................................................................................ 3-1
RE Air Emissions................................................................................................................ 3-1
Nitrogen Oxides (NOx)................................................................................................... 3-1
Products of Incomplete Combustion .............................................................................. 3-3
SO2 and Fuel Ash .......................................................................................................... 3-3
NOx Formation .............................................................................................................. 3-4
Combustion Process Control of NOx ............................................................................. 3-5
Gas Engines .................................................................................................................. 3-5
Diesel Engines............................................................................................................... 3-7
Alternative Fuels ............................................................................................................ 3-9
Post-Combustion Emissions Control [4]............................................................................ 3-10
TWC ............................................................................................................................ 3-10
SCR............................................................................................................................. 3-12
Oxidation Catalysts...................................................................................................... 3-13
Dual Function Catalysts ............................................................................................... 3-13
Combined Absorption-Catalytic Emissions Reduction.................................................. 3-13
Lean-NOx Catalysts..................................................................................................... 3-14
SO2 Scrubbing ............................................................................................................. 3-14
Particulates Control ..................................................................................................... 3-14
4 OTHER FUELS.................................................................................................................... 4-1
xi
Introduction ........................................................................................................................ 4-1

Alternative FuelsCharacteristics and Considerations [1-3] .............................................. 4-2
LPG ............................................................................................................................... 4-4
Field Gas ....................................................................................................................... 4-5
Biogas ........................................................................................................................... 4-5
Digester Gas.................................................................................................................. 4-5
LFG ............................................................................................................................... 4-5
Industrial Waste Gases and Manufactured Gases [1,2] ...................................................... 4-7
DMEAn Alternative Diesel Engine Fuel [8,9] ................................................................... 4-8
5 ECONOMICS....................................................................................................................... 5-1
Introduction ........................................................................................................................ 5-1
REs Versus CTsThe Competitive Climate....................................................................... 5-2
Capital Costs ...................................................................................................................... 5-2
Budget-Level Equipment Costs .......................................................................................... 5-3
Switchgear and Utility Interface (Protective) Package .................................................... 5-5
Cogeneration Equipment ............................................................................................... 5-7
Post-Combustion Catalytic Emissions Control Technologies ......................................... 5-7
Total Installed Costs ...................................................................................................... 5-8
Operating Costs ................................................................................................................. 5-8
Fuel ............................................................................................................................... 5-9
Consumables................................................................................................................. 5-9
Cogeneration Credits........................................................................................................ 5-10
Operating Labor and Maintenance (O&M) Costs ......................................................... 5-10
Engine Life ....................................................................................................................... 5-12
6 KEY COMPANIES, PRODUCTS, AND BUSINESS ISSUES............................................... 6-1

Introduction ........................................................................................................................ 6-1
The United States............................................................................................................... 6-2
The Advanced Reciprocating Engine Systems (ARES) Program ................................... 6-9
Caterpillar Inc............................................................................................................... 6-10
Cooper Energy Services (CES) ................................................................................... 6-11
Cummins Engine Company, Inc................................................................................... 6-12
Detroit Diesel Corporation (DDC)................................................................................. 6-13
Electro-Motive Division (EMD) of General Motors (GM) ............................................... 6-13
xii
Fairbanks Morse (FM).................................................................................................. 6-14

GE Transportation Systems (GETS) ............................................................................ 6-15
Waukesha Engine........................................................................................................ 6-16
Western Europe ............................................................................................................... 6-16
Alstom (Mirrlees Blackstone, Paxman Diesels, and Ruston Diesels) ........................... 6-20
Deutz AG ..................................................................................................................... 6-21
Jenbacher Energiesysteme AG (JES).......................................................................... 6-22
MAN B&W Diesel AG and S.E.M.T. Pielstick ............................................................... 6-23
MTU Motoren-und Turbinen Union Friedrichshafen GmbH .......................................... 6-24
Rolls-Royce (Allen Diesels and Ulstein Bergen)........................................................... 6-25
Wrtsil NSD Corporation............................................................................................ 6-26
Japan ............................................................................................................................... 6-27
ADD Inc. ...................................................................................................................... 6-30
Daihatsu Diesel Manufacturing Co., Ltd. ...................................................................... 6-30
Diesel United, Ltd. ....................................................................................................... 6-31
Hitachi Zosen Corp. ..................................................................................................... 6-31
Kawasaki Heavy Industries Ltd. (KHI).......................................................................... 6-31
Komatsu Ltd. ............................................................................................................... 6-32
Mitsubishi Heavy Industries, Ltd. (MHI)........................................................................ 6-32
Mitsui Engineering & Shipbuilding Co., Ltd. (MES) ...................................................... 6-33
Niigata Engineering Co., Ltd. (NEC) ............................................................................ 6-33
NKK Corp. ................................................................................................................... 6-33
Yanmar Diesel Engine Co., Ltd.................................................................................... 6-34
Small Engine Manufacturers and Suppliers to Original Equipment Manufacturers
(OEMs) and Packagers .................................................................................................... 6-34
Deere Power Systems Group ...................................................................................... 6-36
Ford Industrial Power Products LLC ............................................................................ 6-36
GM Powertrain............................................................................................................. 6-36
Isuzu Engine Division................................................................................................... 6-37
Iveco S.p.A. ................................................................................................................. 6-38
Nissan Industrial Engines ............................................................................................ 6-38
Volkswagen Industrial Engines .................................................................................... 6-38
Volvo Penta ................................................................................................................. 6-39
Genset Packagers and OEMs .......................................................................................... 6-39
Aggreko Inc. ................................................................................................................ 6-41
xiii
Cummins Onan Corp. .................................................................................................. 6-41

F.G. Wilson (Caterpillar) .............................................................................................. 6-42
Katolight Corporation ................................................................................................... 6-42
Kohler Co..................................................................................................................... 6-42
SDMO Industries S.A................................................................................................... 6-43
Stewart and Stevenson Services Inc............................................................................ 6-43
Synergy International Inc. ............................................................................................ 6-44
Tecogen....................................................................................................................... 6-44
Niche Players ................................................................................................................... 6-45
A REFERENCES....................................................................................................................A-1
Chapter 2 ........................................................................................................................... A-1
Chapter 3 ........................................................................................................................... A-2
Chapter 4 ........................................................................................................................... A-3
B GLOSSARY AND ABBREVIATIONS .................................................................................B-1
xiv
LIST OF FIGURES
Figure 2-1 Characteristic Price/Load Duration Curve .............................................................. 2-2
Figure 2-2 Worldwide Large Prime Mover Orders ................................................................... 2-5
Figure 2-3 Engine Sales Below 750 kW .................................................................................. 2-6
Figure 2-4 Turbocharged RE Schematic ............................................................................... 2-12
Figure 2-5 Comparative Fuel Consumption Rates................................................................. 2-15
Figure 2-6 Comparative Energy Flows for Large RE and CT Products.................................. 2-18
Figure 2-7 Otto Cycle Operation............................................................................................ 2-19
Figure 2-8 Otto Cycle PV Diagram ........................................................................................ 2-20
Figure 2-9 Diesel Cycle PV Diagram..................................................................................... 2-21
Figure 2-10 Diesel Engine Air Intake, Compression, and Fuel Injection ................................ 2-21
Figure 2-11 Air-Standard Dual Cycle PV Diagram................................................................. 2-22
Figure 2-12 2-Stroke Diesel Engine ...................................................................................... 2-23
Figure 2-13 Fairbanks Morse 2-Stroke Opposed Piston Engine............................................ 2-25
Figure 2-14 Illustrative SI Performance Curve....................................................................... 2-29
Figure 2-15 Benefits of Increasing Excess Air Ratio in SI and DF Engines ........................... 2-30
Figure 2-16 Precombustion System for SI Engine................................................................. 2-31
Figure 2-17 Wartsila NSD 34 SG Precombustion Chamber Gas Engine ............................... 2-31
Figure 2-18 Illustration of Engine Performance Optimization With Individual Cylinder
Control .......................................................................................................................... 2-32
Figure 2-19 Conventional DF Engine .................................................................................... 2-36
Figure 2-20 Precombustion Chamber on DF Engine ............................................................. 2-38
Figure 2-21 Westport Innovations DF System ....................................................................... 2-41
Figure 2-22 Illustrative Medium-Speed DI Engine Performance ............................................ 2-44
Figure 2-23 Illustrative Gas Engine Operating Map ............................................................... 2-47
Figure 3-1 NOx Versus Excess Air Ratio................................................................................. 3-4
Figure 5-1 RE and CT Price Comparison ............................................................................... 5-4
xv
LIST OF TABLES
Table 1-1 Levels of Emphasis in This Report .......................................................................... 1-3
Table 1-2 Key RE Manufacturers Discussed in Chapter 6....................................................... 1-6
Table 1-3 Key Packagers Discussed in Chapter 6 .................................................................. 1-6
Table 1-4 Niche Players Discussed in Chapter 6 .................................................................... 1-7
Table 2-1 RE Types by Speed and FuelAvailable Unit Sizes (Continuous Ratings,
MW)................................................................................................................................. 2-8
Table 2-2 Theoretical Impact of Engine Speed Increases on Output and Specific Cost .......... 2-9
Table 2-3 Theoretical Impact of BMEP Increases on Output and Specific Cost..................... 2-11
Table 2-4 Representative Availabilities and Outage Rates for Gas Engines and Gas
Turbines ........................................................................................................................ 2-13
Table 2-5 ISO Conditions for REs and CTs........................................................................... 2-16
Table 2-6 Prominent 2-Stroke Engines Available Currently ................................................... 2-24
Table 2-7 Knock Resistance, Critical Compression Ratios, and Volumetric Higher
Heating Values for Methane and Other Light Hydrocarbons .......................................... 2-27
Table 2-8 Comparison of Models of the Caterpillar 3516 SI Engine (Natural Gas Fueled,
1,200-rpm, Sea Level Operation)................................................................................... 2-28
Table 2-9 Manufactured DF Engines and Aftermarket DF Retrofit Options ........................... 2-35
Table 2-10 Representative RE Power and Cogeneration Installations................................... 2-56
Table 2-11 Exhaust Gas Temperatures of Selected REs ...................................................... 2-65
Table 3-1 Representative NOx Emissions from REs and Natural Gas-Fired CTs.................... 3-2
Table 3-2 Representative Emissions from SI and DF Gas Engines with NOx as the
Controlled Emission......................................................................................................... 3-6
Table 3-3 NOx Emissions Versus Efficiency Tradeoffs in Gas Engines................................... 3-7
Table 3-4 Post-Combustion Emissions Control Technologies for Stationary REs.................. 3-11
Table 3-5 Overview of SCR Catalysts ................................................................................... 3-13
Table 4-1 Characteristics of Natural Gas and Selected Alternative Fuels for Gas Engines
[1] .................................................................................................................................... 4-3
Table 5-1 Representative Capital Costs of 60 Hz Diesel and Gas Engine Gensets................. 5-5
Table 5-2 Representative Switchgear and Grid-Interconnection Equipment Prices (1999
$)..................................................................................................................................... 5-6
Table 5-3 Order of Magnitude Costs for RE Waste Heat Recovery Equipment ....................... 5-7
Table 5-4 Approximatea Costs of Catalytic Emissions Control Technologies (1999$) .............. 5-8
Table 5-5 Representative Overhaul Intervals for SI Gas Enginesa in Baseload Service......... 5-11
xvii
Table 6-1 Overview of Primary Manufacturers of REs for the U.S. (60 Hz) Stationary
Power Market .................................................................................................................. 6-3
Table 6-2 Major U.S. RE Manufacturers and Their European Subsidiaries: Stationary
Power Product Lines and Revenues................................................................................ 6-6
Table 6-3 Major Western European RE Manufacturers: Stationary Power Product Lines
and Revenues ............................................................................................................... 6-18
Table 6-4 Major Japanese RE Manufacturers: Stationary Power Product Lines and
Revenues ...................................................................................................................... 6-28
Table 6-5 Representative Manufacturers of Engines Under 300 kW (1800 rpm, 60 Hz,
continuous, if applicable a) ............................................................................................. 6-35
Table 6-6 Selected RE Genset Packagers and Plant Designers/Suppliers for the U.S.
Stationary Power Market ............................................................................................... 6-40
Table 6-7 Independent Niche Players in DF Engine Market (Aftermarket and New and
Re-Manufactured Engines)............................................................................................ 6-46
xviii
1
INTRODUCTION
Background
Markets and Business Climate
Tremendous growth in the use of stationary prime moverscombustion turbines (CTs) and
reciprocating engines (REs)is expected in stationary electric power generation over the next
decade. In particular, CTsthe dominant choice above 30 megawatts (MW)will continue to
be major players in both the U.S. and international power markets. This projection builds on
experience in the past decade, during which worldwide orders for large RE and CT prime movers
(above 1 MW) increased 255 and 370 percent, respectively.
Reciprocating engines, the focus of this report, are expected to meet a significant portion of the
worldwide demand for power in the under 30 MW distributed generation (DG) market. As used
here, the term DG includes on-site generation and grid-connected power, using various types of
power generation technology (e.g., RE, CT, microturbine, fuel cell, solar/photovoltaics, or wind).
With the power generation market opening to competition and choice, financial resources are
being deployed to improve or develop existing and emerging power generation products. This
includes investments by major commercial players (manufacturers, packagers, independent
equipment suppliers, and developers) and support organizations such as the U.S. Department of
Energy (DOE), GRI, and EPRI. For DG product manufacturers and their customers, key
considerations going into the new decade are product positioning, strengthened and expanded
product capabilities (e.g., design and supply of turnkey plants), inter-technology competition,
distribution and service channels, and new product adoption rates.
Numerous acquisitions, mergers, and strategic alliances in the RE and CT business arenas have
occurred since the 1980s. More activity undoubtedly will occur in the future as players seek to
strengthen their positions and gain market share. This is likely to result in improved options and
services for customers to choose from.
REs Versus CTs

Both RE and CT technologies have evolved and matured greatly over their long histories. Each
has characteristics that favor deployment in certain power generation market segments. Each also
faces unique technology, market, and regulatory challenges.
1-1

Introduction
Fundamental drivers favor large CT power plants (over 30 MW). These products have lower first
costs and shorter installation periods than a coal-fired power plant. Moreover, large CTs offer
lower environmental impact, with nitrogen oxides (NOx) emissions of 9 to 25 parts per million
by volume (ppmv, at 15% oxygen, dry basis) without post-combustion controls. Large
combined-cycle systems are also highly efficient plantsin the range of 50 to 58% efficiency
(based on the fuels lower heating value, LHV).
CTs, however, begin to lose their superiority at smaller sizes. In the market segment from 3.5-30
MW, aggregate worldwide sales of CTs and REs (both diesel and gas) are about equal. Below
about 5 MW, however, diesel and gas REs become dominant players, outselling CTs by a
substantial margin. As CTs decrease in size, they exhibit diseconomies of scale (increasing
$/kW) and lower efficiencies. Between 2 to 5 MW, CT and RE generator sets (gensets) have
comparable first costs. However, REs in this size range have efficiencies between 37 and 42%
(LHV) compared to turbines that are below 32%. In sizes less than 2 MW, RE gensets are priced
lower than CTs and are considerably more efficient.
While CTs have a high-technology image and are enjoying strong demand in large sizes, REs
continue to play a major role in the power generation market. In many regions worldwide
especially where heavy fuel oil is abundant as the lowest cost fuelmultiple 3-50 MW diesel
engines are operating in large-scale, 40-200 MW power plants. Gas engines, clean and efficient
small power plants, continue to make market stridesfor example, in Europe where demand for
new cogeneration plants has been growing rapidly.
Intensified ongoing R&D on both gas and diesel engines has the potential for further enhancing
the competitiveness of RE products. Developments are focusing on reducing capital costs
($/kilowatt, kW) and operating costs ($/kW per hour, kWh), further improving efficiencies and
reliabilities, and reducing NOx and other emissions to much lower levels.
Report Objective
This report is intended to serve as a state-of-the-art primer on RE technology, products,
manufacturers/suppliers, and business issues impacting the use of RE products in the stationary
power generation market. The report focuses on the status of RE technology, the products
available from the key companies in the international market, products under development by
these companies, and a business assessment of the companies and their products relative to the
international market. Business issues emphasized include product competitiveness (efficiency,
emissions performance, capital cost, maintenance expense, etc.), company size, recent
acquisitions, alliances, market channels, market share (where available), and business strategy or
philosophy.
The primary emphasis is on natural gas fueled spark-ignition (SI) engines for DG applications in
the 0.3-5 MW unit size range followed by a review of natural gas-diesel dual-fuel engines and
diesel engines. The specific emphases of this report are shown in Table 1-1.
1-2

Introduction
Table 1-1
Levels of Emphasis in This Report
Primary Emphasis
Secondary Emphasis
Size Range
300 kW-5 MW
Under 300 kW
Over 5 MW
Market
Applications
Peaking, peak-shaving, intermediate, and

baseload distributed power generation
(with and without heat recovery)
Standby/emergency
Fuel Type
Natural gas (spark-ignited)
Dual-fuel (gas-diesel)
Diesel
Topical
Focus
Technology, products, business issues
Environmental issues
Report Basis and Organization

The report relied on SFA Pacifics in-house database on RE technologies, applications,
manufacturers, developers, and packagers. The database results from ongoing work in this field
and prior work for GRI on REs and CTs. Telephone contacts with key vendors and developers,
as well as key publications in the field, provided the necessary updates. GRI provided important
information and insights from its publications and R&D and demonstration programs on gas
engines.
The three main sections of the report described in detail below cover 1) technology types and
their characteristics, 2) economics, and 3) the key companies, products, and business issues.
Brief sections on environmental performance and on other fuels are also included.
Technology Types and Characteristics (Chapter 2)

This section concerns the various RE technologies and their design, operating, and performance
characteristics. Although air emissions performance and RE costs are covered in Chapters 3 and
5, respectively, some related discussion is also essential in Chapter 2.
This first part reviews RE types and their characteristics, including the basic natural gas fueled SI
and oil-fueled compression ignition (CI) systems; engine crankshaft speeds and the relationships
among speed, design, and performance; service ratings; and thermodynamic characteristics such
as efficiencies and waste heat utilization.
Then the characteristics of SI, dual-fuel (DF), and diesel engines are examined, beginning with a
review of SI and CI operating cycles. Both four-stroke and two-stroke cycles are discussed. SI
engine uses, power density-cost relationships, and fuel considerations and issues. Combustion
system parameters, design, and control are examined in more detail.
1-3

Introduction
DF engines are discussed in some detail, because of their unique characteristics as natural gas
engines (or gas-diesel engines, as some people call them). Advanced, micropilot DF engines
(i.e., those operating with <1% pilot fuel oil) and low-cost aftermarket conversions of existing
diesel engines to DF engines are addressed, since their advantages and potential for increased
deployment are often not widely recognized.
The unique characteristics of diesel engines are discussed, particularly their higher compression
ratios (relative to SI engines), high efficiencies, varying distillate-to-heavy fuel oil capabilities,
emissions and their control, and worldwide applications for emergency/standby power andin
many regionsfor continuous utility and industrial power generation.
The next part of Chapter 2 examines technology issues and development trends, beginning with
trends and issues that are relevant to REs in general. Then SI, DF, and diesel engine
developments and issues are discussed individually.
Chapter 2 concludes with a review of the full range of market applications for RE systems
namely, simple-cycle (basic gensets), cogeneration, and combined-cycle systems. An extensive
table is provided of example RE installations that illustrate all of the main applications categories
both in the U.S. and abroad.
Environmental Performance and Emissions Control (Chapter 3)

This section provides a concise overview of production and control of NOx, carbon monoxide
(CO), hydrocarbon, and particulate air emissions from gas and diesel engines. Because NOx
typically is the primary emission of concern with gas enginesand shares the regulatory
spotlight with particulate emissions in the case of diesel enginesNOx formation during the SI
and diesel CI combustion processes is reviewed to facilitate understanding of techniques for
controlling it. Commercial and developmental gas and diesel engine combustion control
techniques are reviewed. The chapter concludes with an overview of the post-combustion
exhaust treatment processes (mainly catalytic) that are generally applicable to both gas and diesel
engines or specifically to one type of engine.
Other Fuels (Chapter 4)

This section briefly discusses the operation of REs on liquefied petroleum gas (LPG), waste
gases, and manufactured gases. Operation of diesel engines on dimethyl ether (DME) is also
briefly considered.
Economics (Chapter 5)
This section provides an overview of representative equipment costs for gensets, paralleling
switchgear, and utility interconnection equipment, as well as installed plant costs and operating
and maintenance (O&M) costs for gas engines. Factors affecting installed costs, including
cogeneration impacts, are also discussed. The focus is on DG applications in which one or more
gas engine gensets operates in parallel with the utility grid. Representative minor and major
overhaul intervals for gas engines are also briefly discussed.
1-4

Introduction
Key Companies, Products, and Business Issues (Chapter 6)

This section provides a concise overview of the business, products, size, market position, market
channels, business alliances, and philosophy/strategy of each of the major players in both the
U.S. and the international markets. The size of the major players is indicated by annual revenue
or engine sales. Specific market shares generally are not published for competitive reasons;
however, apparent market shares of leading players are qualitatively discussed. Table 1-2 shows
the companies discussed in this section.
In addition to the major manufacturers of engines in the 0.3-5 MW size range (and up), key
manufacturers of smaller enginesmainly in the 50-300 kW size rangeare briefly discussed.
These companies supply engines to hundreds of original equipment manufacturers (OEMs) and
packagers worldwide that build and package gensets. These manufacturers include John Deere,
Ford Industrial Power Products, GM Power Train, Isuzu, Nissan, Volkswagen Industrial
Engines, Volvo, and others.
Major packagers supplying gensets to both the U.S. and international markets are briefly
discussed. In addition, an overview of about thirty prominent genset packagers and RE plant
designers/suppliers to the U.S. market is included. The top packagers of this type are indicated in
Table 13.
Finally, the products and/or development activities of niche players are discussed (Table 14).
All of these niche players except RODI are developers of aftermarket DF conversions (retrofits)
for existing diesel engines of various makes. RODI is an OEM that is also developing a new
diesel truck engine and a DF version of the engine.
1-5

Introduction
Table 1-2
Key RE Manufacturers Discussed in Chapter 6
U.S.A.-Based or Prominent
Based in Europe
Based in Japan
Caterpillar (including MaK and

Perkins)
Alstom (Mirrlees Blackstone,

ADD Inc.
Paxman Diesels, Ruston Diesels)
Cooper Energy Services
Cummins-Wrtsil (joint venture)
Daihatsu Diesel
Cummins Engine Company
Deutz AG
Diesel United
Cummins-Wrtsil (joint venture)
Jenbacher Energiesysteme
Hitachi Zosen
Detroit Diesel Corporation
MaK (Caterpillar subsidiary)
Kawasaki Heavy Industries (KHI)
Fairbanks Morse
MAN B&W (S.E.M.T. Pielstick)
Komatsu Ltd.
GE Transportation Systems
MTU (SKL)
Mitsubishi Heavy Industries (MHI)
GM/Electro-Motive Division
Perkins (Caterpillar subsidiary)
Mitsui Engineering & Shipbuilding
Jenbacher Energiesysteme (via

GE)
Rolls-Royce (Allen Diesels &

Ulstein Bergen)
Niigata Engineering Co.
Wrtsil NSD
Wrtsil NSD (NSD & GMT)
NKK Corp.
Waukesha Engine Division
Yanmar Diesel
Table 1-3
Key Packagers Discussed in Chapter 6
Cummins Onan Corporation (Cummins subsidiary)
F.G. Wilson (Caterpillar subsidiary)
Generac
Katolight
Kohler Co.
SDMO groupes electrogenes
Stewart & Stevenson
Synergy International
Tecogen
1-6

Introduction
Table 1-4
Niche Players Discussed in Chapter 6
BKM/Clean Air Partners
Electronic Fuel Control (EFC)
Energy Conversions Inc. (ECI)
Gas Technologies Inc. (splintered from OCLI)
Innovative Technology Group Corp. (ITGformerly

OCLI)
RODI Power Systems
Vinyard Engine Systems inc. (VESi)
Westport Innovations
1-7
2
TECHNOLOGY TYPES AND CHARACTERISTICS
Introduction
This section discusses REs, their common and distinguishing characteristics, technology issues,
applications, product availabilities, and development trends. Primary focus is on natural gas
fueled SI enginesthe main natural gas RE technology followed by dual-fuel DF engine
technology. Finally, oil-fueled diesel engine technology is reviewed.
In terms of unit sizes, the report emphasizes RE products in the 300-5,000 kW range. Smaller
and larger RE products are briefly discussed. Peaking, peakshaving, intermediate, and baseload
distributed power generation applications are the primary market focus. Standby/emergency
power applications are briefly discussed.
It is assumed the reader is familiar with RE mechanical and operational principles. Hence, some
engine details are discussed only to distinguish RE types and designs and explain relevant
performance or cost characteristics. This section touches on air emissions, fuel issues, and cost
considerations; these subjects are discussed further in Sections 3, 4, and 5, respectively.
Similarly, this section mentions key RE manufacturers and developers. Section 6 contains a more
complete discussion of the major domestic and international RE players.
This section is organized as follows:
RE development drivers, types, and applications are discussed, followed by an overview of

engine types and power output factors (e.g., engine speed, cylinder pressure, turbocharging),
maintenance, reliability, and availability issues.
RE power generation characteristics are considered including part-load performance,

standard conditions for rating REs, thermodynamic differences between REs and CTs, and
waste heat utilization.
RE types and characteristics begins with an overview of the 4-stroke and 2-stroke operating
cycles, followed by the specific discussions of SI, DF, and diesel engines.
This section concludes with a concise review of a full range of market applications of REs
from basic gensets in simple-cycle applications (standby to baseload) to cogeneration and
combined-cycle applications.
2-1

Technology Types and Characteristics
Overview
REs have been widely employed for years in standby and emergency power, peaking service,
intermediate to baseload power, and cogeneration (combined heat and power, CHP) applications.
A variety of stationary engine products are available to cover diverse market applications and
duty cycles. Figure 2-1 shows a characteristic load-duration curve and how REs are used in the
various applications and duty cycles.
100
Price ($/MWh)
80
Standby/
Needle Peaking
Low Capital Costs

Reasonable Variable Costs
Reasonable Efficiency
!
!
60
Reasonable Capital Costs

Low Variable Costs
High Efficiency
Peaking/
Peakshaving
!
!
40
20
Intermediate
Duty Cycle
!
Baseload
Duty Cycle
!
0
0
Annual Hours (Thousands)

Figure 2-1
Characteristic Price/Load Duration Curve
In the simplest terms, there are two basic types of REsSI engines and CI engines. The oilfueled CI engine is called the diesel engine after its developer, Rudolf Diesel. Many CI engines
are available in DF versions, which are co-fueled with 90-99% natural gas (on an energy basis)
and a balance of fuel oil used for CI. The pilot fuel amount depends on the sophistication of the
DF design. Most DF engines can operate in either DF or 100% diesel mode, and the mode can
often be switched on the fly.
Natural gas fueled SI and DF engines came into prominence for gas compression service and
electric power generation during the 1930s to 1960s and are now widely used in the U.S. and
Europe for industrial, commercial, and institutional power generation and cogeneration
applications as well as utility power generation. The term gas engines includes both SI and DF
2-2

enginesi.e., any engine that operates on natural gas or other gaseous fuels such as LPG or
landfill gas (LFG).
Diesel engines have been used for land and sea power generation applications worldwide for
many decades. Historically, diesel engines were the most popular type of REs for both small and
large power generation applications. However, in the U.S. and other industrialized nations, diesel
engines are increasingly relegated or restricted to emergency standby or limited duty-cycle
service because of air emission concerns. There are exceptions, particularly areas with limited
emission regulations, units that are grandfathered from air emission restrictions, or when postcombustion emissions controls are employed. Diesel engines are highly preferred for emergency
standby power generation, due to their low $/kW capital cost, rapid start-up capability (e.g.,
within 10 seconds), and excellent load-following capabilities. While some fairly large (4-10
MW) diesel engines are used in standby and emergency power service, most units are
considerably smaller (under 2 MW).
With increasing emission concerns in industrialized nations, the higher-duty-cycle stationary
power market (over 500 hr/yr) for REs has focused more on natural gas fueled, lean-burn SI
engines. Today lean-burn, low-NOx engines are commercially available in sizes up to 5.5 MW,
with 6-9 MW units under development. Growing market demand is driving the increasing size
availability for larger gas engines. More diesel engines are becoming gasifiedthat is,
available as a gas engine option.
The more recently developed micropilot (1% pilot diesel fuel) DF gas engine has emerged in the
past decade as a challenger to the lean-burn SI engine. The micropilot DF gas engine offers
comparable or improved efficiency to a SI gas engine and similar to moderately higher
emissions. The micropilot gas engine has added benefits of gas/oil fuel flexibility, potentially
lower capital cost (if optimized for maximum power), and potential to avoid periodic ignition
system maintenance. The micropilot gas engine has many of the positive attributes of CI and SI
engines. However, there is a limited selection of commercial micropilot DF engines, in part due
to patent issues.
Conventional DF engines (mainly in the 0.5-16 MW unit size range) typically burn 90-95%
natural gas and 5-10% pilot fuel. Conventional DF engines generally have higher emissions than
optimized micropilot (<1%) or SI engines, but lower than diesels. Existing diesel engines can be
retrofitted to DF operation at relatively low cost. This can result in reduced NOx and particulate
emissions and possibly lower fuel operating costs (depending on natural gas and diesel fuel
prices). Fuel flexibility is also a DF engine benefitcustomers can choose the lowest-cost fuel
option.
During the past three decades, RE developers have been driven by economic and environmental
pressures for power density upratings (more output per unit of engine displacement), improved
fuel efficiency, and reduced emissions. Computer-based systems have greatly advanced RE
design and control, accelerating advanced engine designs and making possible more precise
control and diagnostic monitoring of the engine combustion process. Along with the internal
R&D efforts of stationary engine manufacturers, major worldwide engine R&D firms such as
Ricardo (U.K.), AVL (Austria), Southwest Research Institute (U.S.), and FEV (Germany) are
helping drive advanced engine technology, including diffusion of technology and concepts from
the automotive market to the stationary market.
2-3

Pushing engine performance limits has been accompanied by efforts to maintain or improve
reliabilities and to simplify and reduce the cost of maintenance. Also, within the past decade,
natural gas SI engine manufacturers have experienced pressures to match the strides of
international engine competitors and improvements from alternatives such as CTs. Key factors
include first costs (genset prices in $/kW), improved generating efficiency, and reduced NOx
emissions.
In contrast to CTs that tend to decrease in specific cost with increasing size, RE costs tend
exhibit a negative economy of scale (i.e., increasing specific cost with size). This may be due to
various factors, including the lowering of speed with increasing engine mass and bore size and
limited production volumes.
Empirically, the switch in market choice between engines and turbines occurs in the 5-15 MW
size range (Figure 2-2, units over 1 MW). The crossover point has increased in the past 10 years,
indicating growing market acceptance of 1-10 MW REs. The shift is abrupt as size decreases.
For example, between 1 and 2 MW, worldwide engine sales are 30 times greater than CTs.
Below 1 MW, nearly all prime movers are REs. Engines below 2 MW enjoy an economy of
mass production, while larger engines are more likely to be built in more limited volumes.
As noted, under about 2 MW, most prime movers sold worldwide are REs. Smaller engine sales
are significant in terms of units and total gigawatts (GW). Figure 2-3 shows data reported by
Parkinson Associates at an Electric Generating Systems Association (EGSA) meeting in 1999.
Over a quarter million small (under 75 kW) gensets are sold annually, along with a significant
number of units in the 75-750 kW size range. The total estimated 32 GW of annual engine sales
represents a substantial portion of the total worldwide prime mover market. At a nominal price of
$250/kW, the RE market is over $9 billion in annual sales.
As a result of the foregoing drivers, REs are well suited to various DG applications, including
cogeneration systems in which hot water, low-pressure steam, or waste-heat-fired absorption
chillers are required. REs have significantly higher efficiencies than CTs of comparable size, and
thus lower fuel-related operating costs. REs start quickly, follow load well, have good part-load
efficiencies, and generally have high reliabilities. In many cases, multiple RE units are used to
increase power plant capacity and availability. The first costs of RE gensets are lower than CT
gensets up to 2-3 MW and often do not require the cost and operational expense of on-site fuel
natural gas compressors, as does a CT genset. RE maintenance costs may be twice those of small
CTs, but the maintenance can often be handled by in-house staff or provided by local service
organizations. Advanced lean-burn natural gas SI engines are available that produce NOx levels
as low as 50 ppmv @ 15% O2 (dry basis)only twice the 25-ppmv levels of CTs with water or
steam injection for combustor NOx control.
2-4

50
45
40
35
30
25
20
15
10
5
0
Total Capacity (GW)

Engines
Turbines
1-3.5 MW
3.5-10MW
10-30 MW
30-120 MW
>120 MW
Size Range (MW)

Source: Diesel & Gas Turbine Worldwide
Figure 2-2
Worldwide Large Prime Mover Orders
2-5

Worldwide Engine Generator Sets

Total Units Sold - 1998 Data
Total Capacity: 32.7 GW
Source: Parkinson (EGSA 8/99)
0-75 kVA
260,000
75-375 kVA
78,000
Over 750 kVA

11,000
375-750 kVA
14,000
Figure 2-3
Engine Sales Below 750 kW
Frequently, minimal lead-time is required for delivery and installation of power generation
equipment. An increasing number of manufacturers, distributors, and independents offer rental
trailer-mounted gas engine units up to about 1.5 MW and diesel engines up to 2.5 MW. These
can be used to meet temporary and/or seasonal peaking requirements at substations or at
industrial and commercial sites. Larger temporary facilities are possible with modularized
(containerized) plants. Containerized packages, for example in 20 or 40 foot ISO shipping
containers, may be a cost-effective option for permanent installation.
RE Types
Fuel/air mixture ignition technique is often used to distinguish RE types. The two main
approaches are SI or CI. SI engines use conventional SI components (e.g., coil, spark plug) to
ignite the fuel/air mixture. The standard fuel for stationary SI engines is natural gas, although
other fuels can be utilized (such as LFG, sewage digester gas, LPG/propane, and gasoline). CI
engines use the combined effects of pressure and temperature to self-ignite diesel fuel. The
standard fuel for diesel engines is diesel oil (No. 2 distillate); other fuels can be utilized, such as
DME and (in the case of large marine engines) Bunker C fuel oil. Also, as noted earlier, many
2-6

diesel engines can be equipped to operate as DF engines on 80-99% natural gas, with the balance
as diesel fuel. The pilot diesel fuel is used to maintain compression ignition. While the term
gas engines is commonly used for both SI engines and DF engines, it does not convey the exact
type of engine.
Engines are further categorized by crankshaft speed (rpm), operating cycle (2- or 4-stroke), and
whether turbocharging is employed. With engines above about 300 kW, it is assumed the engine
is turbocharged to increase power output, improve efficiency, and lower specific costs ($/kW).
Examples of a basic identification of an engine type include:
A 800 kW, 1,200 rpm, 4-stroke lean-burn SI engine. If the engine had a precombustion
chamber, it frequently would also be called a prechamber engine.
A 400 kW rich-burn (or stoichiometric) SI engine. This might include a three-way catalyst
for emission control.
A 3,300 kW, 900 rpm, 4-stroke diesel engine.
A 3,200 kW, 900 rpm, 2-stroke DF engine. If the engine were equipped with a micropilot
precombustion chamber for operation on 1% pilot fuel, that information would also be stated.
REs are even further typed by their original design purpose: automotive, truck, industrial,
locomotive, and marine engines. Many automotive engine models are used in hundreds of smallscale stationary power, cogeneration, irrigation, and gas-driven chiller applications. These are
low-priced engines due to their large production volume. However, unless conservatively rated,
these engines have limited durability. Truck engines have the cost benefit of production volume.
Truck engines are designed for reasonably long life (e.g., one million miles) and thus can offer
longer durability than automotive engines in stationary uses. A number of truck engines are
available as stationary engines. Engines intended for industrial use are designed for durability in
a wide range of mechanical drive and electric power applications. Their sizes range from about
20 kW up to about 6 MW, including industrialized truck engines in the 200-600 kW range and
some industrially applied marine engines above about 1 MW. Marine and locomotive engines are
quite suitable for stationary power applications.
Engine Speed Classifications and Characteristics

REs traditionally are classified as high-, medium-, or low-speed. While there is no international
standard, per se, the speed ranges in Table 2-1 represents generally accepted values. This table
also summarizes unit size ranges for each type of engine in each speed class. Engine-driven
electric generators typically must run at fixed (or synchronous) speeds to maintain a constant 50
or 60 Hertz (Hz) output:
60 Hz: 400, 514, 600, 720, 900, 1,200, and 1,800 rpm
50 Hz: 375, 428, 500, 600, 750, 1,000, and 1,500 rpm
2-7

Table 2-1
RE Types by Speed and FuelAvailable Unit Sizes (Continuous Ratings, MW)
Gas Engines
Speed
Class
High-speed
Mediumspeed
Low-speed
a
b
c
d
e
Crankshaft
Speed,
rpm
Stoichiometric &
a
Rich-Burn
Spark-Ignited
Lean-Burn SI
Dual-Fuel
(Prechamber
with Largeb
Bore)
1,2003,600
up to ~ 1.3
275-1,000
58-275
Diesel
Engines
With Micropilot
c
Prechamber
Dual-Fuel
Conventional (8095% gas +
d
pilot fuel)
(100%
oilfueled)
0.15-2.7
1.1-3.3 e
None
Up to 3.6
not practical
1.0-6.0
1.0-15.7
1-23
0.5-36
None
None
none
2-65
2-65
Stoichiometric combustion or rich-burn are required with use of 3-way catalytic converter for emissions control.
Large bore is approximately 7-inches; these engines will often include a precombustion chamber. Smaller leanburn SI gas engines will often be open-chamber configurations with the spark plug directly firing in the main
chamber.
Fueled by 99% natural gas and 1% pilot fuel oil.
At full load. Depending on the design, the percentage of gas fuel may drop as load is decreased.
Under development.
Source: SFA Pacific, Inc.
Due to synchronous speed requirements and engine dynamics, RE rotational speed must be
lowered in steps as engine bore size (piston size) increases. Because of their massive physical
size and speed-related power reduction, low-speed engines have become increasing displaced by
medium- and high-speed engines as the primary contenders for stationary power applications in
the U.S., Western Europe, Japan, and many other rapidly industrializing regions.
Engine power output is proportional to engine speed, affording high-speed engines the highest
power output per unit of displacement (cylinder size) and the most output per "ton" of material
used to fabricate the engine (power density). Consequently, high-speed engines have the lowest
$/kW production costs (and prices) of the three types. Table 2-2 shows the theoretical impact of
speed on power and specific cost of sample engines at their normal rated speeds and the next
highest speed level for 60Hz electric power generation. The effects of increased speed on
friction, wear, and other factors must be accounted for in the engine development.
2-8

Table 2-2
Theoretical Impact of Engine Speed Increases on Output and Specific Cost
Power Output, kW
Specific Cost, $/kW
Example 1: Speed increased from 900 rpm to 1,200 rpm

900 rpm
365
300
1,200 rpm
480
227
Example 2: Speed increased from 1,200 rpm to 1,800 rpm

1,200 rpm
480
300
1,800 rpm
Source: GRI (Liss & Kincaid 1999)
725
200
The $/kW cost benefit of high-speed engines must be weighed against other factors. Smaller,
high-speed engines tend to have somewhat lower efficiencies (by a few points) than large-bore,
lower-speed enginesan effect due in part to the higher surface area to volume ratio for small
cylinders yielding slightly higher heat rejection. Also, higher speed operation results in increased
friction losses. Additionally, high-speed engines tend to have higher wear rates, resulting in
somewhat shorter periods between minor or major overhauls. As noted previously, for limited
duty-cycle applications, these factors are less important than capital costs.
Some high-speed engines are derived from automotive and truck units, yielding lower
manufactured costs. This benefit may or may not necessarily translate into lower prices.
Manufacturers may realize higher margins per unit on these engines or need to amortize special
engineering and product support costs over a more limited market. This situation is variable
among manufacturers and is a function of what the market will bear.
Many high-speed diesel engines are mass-produced for the worldwide packaged genset market,
making them the lowest $/kW source of power. High-speed gensets are relatively compact and
can be completely shop fabricated (skid-mounted), which minimizes field erection labor.
Because of their low cost and lighter weight, high-speed REs are favored over medium-speed
engines for emergency/standby applications. Nevertheless, there are many relatively large (3-10
MW) medium-speed diesel engines in critical standby applications worldwide.
Medium-speed stationary power engines are largely derived from engines built for marine and
locomotive applicationsthe primary medium-speed markets. If properly designed, some
medium-speed diesel engines can burn lower grades of Bunker C fuel oil as is often possible
with low-speed diesel engines. Medium-speed RE capital costs per kW are higher than highspeed engines, but the medium-speed efficiencies are normally a few points higher. These units
are suitable for applications ranging from peaking to baseload duty. Medium-speed REs between
3 and 12 MW have become popular worldwide for stationary baseload and cycling power
applications, particularly in less-industrialized nations.
2-9

BMEP, Engine Speed, and Power Output

Engine power is related to crankshaft speed (as discussed previously) and the brake mean
effective pressure (BMEP) during the power stroke. BMEP can be regarded as an average
cylinder pressure on the piston during the power stroke and is a measure of the effectiveness of
engine power output or mechanical efficiency. [BMEP is defined as the theoretical constant
pressure exerted during each power stroke that would produce power (or work) equal to the
brake power (or work).]
Engine manufacturers often include BMEP values in their product specifications. BMEPs are
now as high as 230 psig (15 atmospheres, atm) for large SI engines and 350 psig (23.8 atm) for
4-stroke diesel engines. These values are being pushed higher in some manufacturers
developments. Corresponding peak combustion pressures are about 1,750 psi and 2,600 psi,
respectively (119 to 177 atm). High BMEP levels lower specific costs ($/kW) and raise
efficiency. However, proper design and testing is required to ensure that durability and reliability
is not compromised from increased thermal and pneumatic stresses associated with higher BMEP
operation.
The engines brake horsepower (bhp) is proportional to its BMEP, speed, and displacement:
bhp = BMEP Z L Z A Z N Z (n/z) = BMEP Z Vd Z N
33,000 Z 12
396,000 Z z
where,
L = length of the stroke, in

N = engine speed, rpm
A = area of the piston face, in2

n = number of cylinders
z = number of revolutions required for each power stroke delivered per

cylinder (z = 1 for 2-stroke engines, and z = 2 for 4-stroke engines)
Vd = the total displacement of the engine, in3 = vd Z n

vd = displacement volumethe volume swept by a single piston in one stroke = 0.785 Z bore
size, in Z length of piston stroke
If BMEP is increased while holding other factors constant, engine power density increases and
specific cost can potentially decrease (see theoretical estimates in Table 2-3). BMEP increases
are obtained by increasing combustion cylinder air pressure through increased turbocharging,
improved aftercooling, and reduced pressure losses. These factors increase charge air density and
raise peak combustion pressures, translating into higher BMEP levels [1]. Some REslike CTs
in their evolutionary pathsmay undergo three or more BMEP and output upratings over time,
as the manufacturers develop and refine the engines further.
The theoretical or ideal cycle efficiency of a RE is a function of the compression ratio and can be
calculated from the thermodynamic relationships for the idealized cycle (discussed later). The
compression ratio, rc, is defined in terms of volumes (not pressures) as:
rc = (vc + vd)/ vc
where:
2-10
vc = the clearance volumethe volume of the combustion chamber at the end of the compression
stroke, which also is the volume of the compressed gas

Table 2-3
Theoretical Impact of BMEP Increases on Output and Specific Cost
BMEP, psi
Power Output,
kW
Specific Cost,
$/kW
Base Case
175
725
300
Step 1
200
830
262
Step 2
225
930
233
Step 3
250
1,035
210
Source: GRI (Liss & Kincaid 1999)
Although raising compression ratio increases the theoretical cycle efficiency, the improvement is
partially offset by frictional losses that accompany increasing cylinder pressure. With
turbocharging, the compression ratio generally is reduced to avoid excessive pressures and, in SI
engines, to prevent autoignition and engine knock (discussed later). Manufacturers typically do
not list compression ratios for their engines, except in the case of some SI engines.
Adding more cylinders also can increase engine capacity. Both in-line and V-configurations are
common in most families (also called series) of medium-speed and high-speed engines. The
largest V-block engines are 20-cylinder engines. All of the low-speed units are in-line
configurations and available with up to 12 cylinders (approximately 65 MW).
Turbocharging
Essentially all modern engines are turbocharged to achieve higher power densities. Nevertheless,
many naturally aspirated (non-turbocharged) models are still available, especially below 300
kW. The simpler, yet dependable, naturally aspirated engines may be more suitable for remote
regions such as natural gas gathering operations or in less developed countries where O&M
resources are limited.
A turbocharger basically is a turbine-driven intake air compressor. The hot, high-velocity
exhaust gas leaving the cylinders powers the turbine. In fact, some of the microturbines now
under development are based on RE turbochargers. The placement of a turbocharger on an
engine is illustrated in Figure 2-4. Very large engines typically are equipped with two
turbochargers. On a carbureted engine, turbocharging forces more air and fuel into the cylinders,
increasing the engines output. On a fuel-injected SI or CI engine, the mass of fuel injected must
be increased in proportion to the increased air input. The cylinder pressure and temperature
normally increase as a result of turbocharging, thereby also increasing the knocking tendencies
of both SI and DF engines. A balance is required between compression ratio and turbocharger
boost level in a SI or DF engine. Turbochargers normally boost inlet air pressure on a 3-4:1 ratio,
while advanced high-efficiency turbochargers have pressure ratios up to about 5:1. A wide range
of turbocharger designs and models are available.
2-11

Figure 2-4
Turbocharged RE Schematic
When the ambient temperature (and air density) is below the engine rating temperature,
turbocharger surging and excessive engine air input should be controlled. This can be done by
dumping a portion of the compressed air through a device called a wastegate to the atmosphere
or by diverting a portion of the engine exhaust gas away from the turbocharger so that it
compresses less air. Heat exchangers (called aftercoolers or intercoolers) are often used on the
discharge air from turbochargers to keep the temperature of the air to the engine under a
specified limit. These can be either air-to-air or air-to-water heat exchangers.
Some manufacturers will custom-select a turbocharger on a project-specific basis for the highest
expected ambient temperature to ensure the engines rated power output is achieved year-round;
turbochargers might also be sized for different elevations. Other manufacturers specify only one
or two turbochargers for a given engine series. A possible alternative to matching the
turbocharger with the site conditions would be inlet air conditioning (cooling and/or
humidification).
2-12

Maintenance Factors
The main operating parameters affecting engine wear and maintenance are combustion chamber
and exhaust gas temperatures, combustion pressure, engine speed, effectiveness and durability of
the lubricants, fuel quality, and mode of service (e.g., continuous baseload, intermittent,
standby). Friction, mechanical stress, thermal stress, and chemical attack cause lubricant and
material breakdown in an engine. On SI engines, spark-plug life is a periodic service item.
Another factor affecting maintenance costs is the availability and cost of spare parts, which are
functions of the manufacturers worldwide service network and engine model popularity. For
example, a manufacturer will likely have ample supply of spare parts for popular engines, while
spare parts may not be immediately available for a custom-built engine. Spare parts in the latter
case can be considerably more expensive if they are manufactured on an as-needed basis. Any
delay in delivery of such spares could be expected to reduce plant availability.
Reliability and Availability

RE availabilities vary greatly with engine type, speed, and the quality of the fuel. Although REs
generally are characterized as maintenance intensive, prior GRI efforts have documented that gas
engines can provide high levels of availabilityeven in high load factor applicationsas
illustrated in Table 2-4 [2]. Diesel engines have comparable, if not better, availabilities. The use
of multiple-unit plantespecially when spare engines are usedincreases overall plant
availability without unduly compromising overall economics. Of course, some engine models
have reputations and records for higher than average reliabilities.
Table 2-4
Representative Availabilities and Outage Rates for Gas Engines and Gas Turbines
Gas Engines
80-800 kW
Gas Engines
>800 kW
Gas Turbines
1-5 MW
Gas Turbines
5-25 MW
Availability Factor, %
94.5
91.2
92.7
90.0
Forced Outage Rate, %
4.7
6.1
4.8
6.5
Scheduled Outage Factor, %
2.0
3.5
3.0
4.1
Source: GRI [Liss, 1999]
For large REs, lease or replacement units for planned maintenance or emergency service have
been regarded as impractical due to weight considerations or there being too few units in the
field to justify such support. However, at least one manufacturer (Cooper Energy Services) offers
this type of insurance with delivery (by truck and/or rail) of a pre-overhauled or uprated
exchange engine. If scheduled for a planned outage, the exchange can cut 8 or 9 days out of a 12day downtime for a field overhaul. Reportedly, the transaction can be accomplished for nearly
what it would cost for a field overhaul [3].
Aeroderivative and light industrial CT manufacturers have offered lease/exchange engine
programs for years. The actual availabilities of power and cogeneration plants using these
2-13

turbines are significantly improved (e.g., 98-99%) by the manufacturers abilities to promptly
deliver and quickly install replacement units on short notice.
Power Generation and Useful Thermal Output

Generating Sets (Gensets)Full Load and Part Load Heat Rates
In a RE power generation or cogeneration system, a synchronous generator is coupled to the
engine, which runs at a constant speed, to produce steady alternating current (AC) power. At part
load, the heat rate characteristics of CI engines (i.e., mass of fuel per unit of power output) are
more favorable than SI engines and CTs as shown in Figure 2-5. The heat rate curve for CI
engines is comparatively flat between 50 and 100% load, showing a minimum at about 70-80%
of full load and increasing by only about 3-10% from this minimum at any other point.
For SI engines, the heat rate increases steadily as load is decreased. The heat rate at 50% load is
approximately 115% of the full-load value. As the load is decreased further, the SI engine heat
rate curve may rise even more steeply. Similarly, the power generation efficiency of CTs
decreases steadily as load is reduced and may be 15-30% lower at 50% load than it is at full load.
Where regular load reductions of 15-20% or more are expected, multiple SI units may be
preferable to a single large unit to avoid heat rate penalties. Multiple, comparatively highefficiency RE units also may offer heat rate advantages over a single CT in variable-load, simple
cycle applications or in cogeneration applications requiring only hot water or low-pressure
steam.
2-14

Figure 2-5
Comparative Fuel Consumption Rates
2-15

Standard Conditions for RE Ratings

The ISO standard ambient conditions for rating REs differ from those for CTs (Table 2-5).
Table 2-5
ISO Conditions for REs and CTs
Combustion
SI Engines
Diesel Engines
Turbines
Ambient air temperature, F (C)
77 (25)
77 (25)
59 (15)
Coolant temperature, F (C)
77 (25)
77 (25)
59 (15)
0.987 (1.00)
0.987 (1.00)
1.00 (1.013)
60
60
60
dry natural gas
Distillate
dry natural gas
900 Btu/scf
18,390 Btu/lb
900 Btu/scf
Barometric pressure, atm (bar)

Relative humidity, %
Fuel
Fuel heating value, LHV
RE thermal efficiencies (related to shaft mechanical power output) and electrical efficiencies
traditionally are based on lower heating values (LHVs). However, fuel is often purchased on a
higher heating value (HHV) basis. Conversion factors for LHV to HHV vary slightly with fuel
composition. Typical values are as follows:
Natural gas: HHV = 1.106 x LHV
Diesel fuel: HHV = 1.06 x LHV
Care must be exercised in using manufacturers engine performance data because many
manufacturers, particularly in Europe, may report fuel consumption rates or efficiencies in terms
of mechanical shaft power (hps or kWs) rather than generator electrical output (kWe). Similarly,
engine emissions are frequently reported as grams per brake hp-hour (g/hph), rather than as
g/kWh.
Since REs, like CTs, are air-breathing machines, their performancee.g., their rated power
outputs and efficienciesdegrade as ambient temperature or site elevation increases (i.e., air
density decreases). For CTs, performance degradation is more significant at elevated
temperatures. Typically, CT output drops several percent and efficiency drops a few percent at
77F from the ISO 59F rating point. Moreover, some engine manufacturers, especially diesel
manufacturers, rate engines at 90 to 110F (32 to 43C) and at elevations above sea level, so that
the rated power output can be maintained up to these temperatures and altitudes. This rating
flexibility is made possible by turbochargers. The effect of temperature and elevation can be
important, especially during high-temperature peak demand periods where spot prices for power
may be high.
2-16

Load Service Ratings

RE manufacturers typically assign three power ratings to their engines, depending on the
intended load service. While there is some variation among manufacturers, the following ratings
appear to be common:
Standby (continuous full or cycling load for a relatively short duration, usually expected to
be less than a few days until the primary source of power is restored): maximum power
output rating
Prime (continuous operation all year, but with regular variations in load): 80-85% of the
standby rating
Baseload (continuous full-load operation all year): 70-75% of the standby rating.
The baseload applies to constant load service and is the highest power output intended at a
specified speed for an unlimited time, except for normal maintenance shutdowns. The continuous
rating of many manufacturers includes an allowed overload for a brief period daily (e.g., 10% for
2 hours). The prime power rating applies to continuous operation with variable loads, including a
peak load that typically is 110% of the continuous rating. Many manufacturers also allow brief
intermittent overloads up to the standby rating, which normally is 10% higher than the prime
rating. The standby rating is the maximum output the engine is intended to produce upon
interruption of the normal source of power. Standby units typically are expected to operate less
than 100 hr/yr.
Thermodynamic Differences Between REs and CTs

In simple-cycle configurations, REs have higher efficiencies than comparable-sized CTs. The
waste heat temperature of a RE or CT has a significant impact on the cogeneration
configurations that can be applied.
Essentially all the waste heat from CTs is rejected as exhaust gas in the temperature range of 750
to 1,100F (400 to 600C). In contrast, only about half the heat rejected from REs exits as hightemperature exhaust gas. The other half is rejected mainly in the form of low-temperature engine
jacket cooling water (below 250F/120C). Consequently, for REs and CTs having comparable
power outputs, the amount of steam that can be generated from the RE exhaust gas is only about
half that from a CT system. The differences in electric generating efficiency and thermal output
between a 2.5 MW Wrtsil Diesel SI engine and small CTs in the 2 to 6 MW size range are
illustrated graphically in Figure 2-6.
2-17

Figure 2-6
Comparative Energy Flows for Large RE and CT Products
Waste Heat UtilizationCogeneration

Figure 2-4 (shown earlier) illustrates the four sources of usable waste heat from a REexhaust
gas, engine jacket cooling water, lube oil cooling water, and turbocharger aftercooling. Exhaust
gas thermal energy can be recovered as hot water or low- to intermediate-pressure steam, with a
practical steam pressure of 150 psig (10.2 atm) being a practical upper limit. Some low-pressure
(15 psig, 1 atm) steam can be generated from the engine jacket by using an ebullient-cooled
systemi.e., one in which the engine jacket is pressurized to 15 to 20 psig (1 to 1.4 atm) to
permit controlled boiling inside the jacket. The heat removed by the engine jacket and
lubricating oil cooling water can be exchanged with water (or another heat transfer fluid) and
used for a variety of purposes. Common uses are hot water or steam for space heating, providing
heat for potable hot water supplies, and driving absorption chillers to provide cold water, air
conditioning, and refrigeration.
A condensing steam turbine can be used to generate electric power from the low-pressure steam
generated from an engines exhaust heat. However, the power typically is only 5 to 8% of the
engine output. Stationary RE combined-cycle power plants have been promoted by some
European engine manufacturers. Some installations can be found, including a few in the U.S.
2-18

RE Types and Characteristics

Operating Cycles
4-Stroke Otto Cycle
The 4-stroke cycle engine developed by Nikolaus Otto in Germany in the 1870s, became very
successful and came to be known as the Otto cycle. In this cycle, the crankshaft completes two
revolutions for each power stroke delivered by the cylinder. The four strokes of this cycle are
the:
1. Intake strokeintake of fuel and air.
2. Compression strokecompression of air and possibly fuel at or near the end of which a
spark-ignition source initiates rapid combustion of the pressurized fuel-air mixture. The exact
end of the compression stroke is called top dead center (TDC).
3. Power strokein which work is done by the expanding hot, high-pressure combustion gases.
4. Exhaust strokewhich displaces the gas from the cylinder through the exhaust port.
The basic Otto cycle is shown in Figure 2-7. The P-V diagram in Figure 2-8 represents its
operation. In the Otto cycle, the compression ratio normally equals the expansion ratio, since the
piston retraces its steps in completing the cycle. SI engines operate at compression ratios of 7:1
Figure 2-7
Otto Cycle Operation
2-19

to 12:1depending on the fuel, engine design, and turbochargingto prevent autoignition (from
the heat of compression) and destructive engine knock. There are techniques to operate engines
at different compression and expansion ratios. The most popular is the Miller Cycle, where the
intake valve is opened or closed late to alter the effective compression ratio. The Miller Cycle,
when properly implemented, can provide an efficiency improvement.
Figure 2-8
Otto Cycle PV Diagram
4-Stroke Diesel Cycle

The diesel cycle is named after Rudolf Diesel, who developed this engine-operating concept in
the early 1890s. It differs from the Otto cycle in fuel type used, fuel injection technique, and use
of heat of compression (rather than externally supplied spark) to trigger ignition. Most CI
engines operate at compression ratios of about 12:1 to 17:1, and some as high as 20:1.
The four strokes of this cycle are the:
1. Intake strokein which air alone is inducted
2. Compression strokeair is compressed and raised in temperature above the fuel autoignition
temperature. At or near TDC, fuel is addedat a rate that theoretically maintains constant
pressure combustion during the initial portion of the power stroke.
3. Power strokework done by expansion of the hot, pressurized combustion products
4. Exhaust strokeexpulsion of the combustion products.
2-20

In the diesel cycle, the expansion ratio is less than the compression ratio. The idealized diesel PV
cycle is shown in Figure 2-9. Figure 2-10 illustrates the operation of a diesel engine up to the
fuel injection event.
Figure 2-9
Diesel Cycle PV Diagram
Thermodynamic analysis indicates that, for a given compression ratio and without turbocharging,
a diesel cycle has a lower thermal efficiency than an Otto cycle engine. However, as a practical
matter, diesel engines offer higher efficiencies than Otto cycle engines because they can operate
Figure 2-10
Diesel Engine Air Intake, Compression, and Fuel Injection
2-21

Figure 2-11
Air-Standard Dual Cycle PV Diagram
at higher compression ratios. High-performance, very lean-burn (precombustion chamber) SI

engines are an exception in that they have efficiencies comparable to their diesel counterparts.
Also, in modern CI engines, the pressure is not constant during the combustion process. While
the major portion of the combustion process is considered to approach a constant-volume
process, the late burning approaches a constant pressure process. Therefore the cycle
corresponding to this operation is called the dual cycle and is represented by the P-V diagram
in Figure 2-11. The dual cycle is not to be confused with dual-fuel operation of CI engines,
which approach Otto cycle operation (discussed later).
2-Stroke
The 2-stroke cycle is completed in one crankshaft revolution. It was developed in the 1870s by
Dugald Clerk to increase power output and simplify the engine mechanically by eliminating
valves. Although applicable to SI operation, it has been used primarily with diesel engines. The
largest (up to 65 MW with 38-inch/960mm diameter pistons) and highest-efficiency REs
manufactured today are low-speed, 2-stroke diesel engines. These were originally developed for
ship propulsion with Bunker C fuel oil (heavy, residual oil).
The 2-stroke cycle illustrated in Figure 2-12 consists of the following steps:
1. The compression strokewith combustion initiated at or near TDC as indicated above for
the 4-stroke engines
2. The power stroke
3. Discharge of the combustion gases near the end of the power stroke through exhaust valves
(or ports) at the top of the cylinder simultaneous with admission of charge air pumped in by a
2-22

Figure 2-12
2-Stroke Diesel Engine
blower or turbocharger. The charge air displaces the exhaust gas. Fuel losses and emissions
due to mixing of the air and the exhaust gas is a potential problem, depending on the design.
In the early valveless 2-stroke engines, charge air was inducted into the engine through the
crankcase during the compression stroke. Modern 2-stroke engines use turbochargers, blowers,
or both to compress and deliver air. In the early 1980s, large-bore, 2-stroke CI marine engines
manufacturers changed to long-stroke designs for higher efficiency. Valves were added to
improve scavenging. (Scavenging is the term used for the process of removing the combustion
gases from the cylinder to permit fresh charge to enter for the next cycle.)Many 2-stroke diesel
engines are in stationary emergency, standby power, and continuous power generation
installations worldwide. In some emergency standby generator applications, 2-stroke diesel
engines are preferred because they deliver power faster on start-up than 4-stroke engines. Highspeed 2-stroke engines also quickly respond to load changes. The predominant applications of
large 2-stroke engines for continuous power include gas compressor drives, railway locomotives,
and marine propulsion.
Except for emergency standby uses, marine propulsion, and remote power plants (e.g., island
communities and Third World regions), the market acceptance of 2-stroke (with two exceptions)
has been waning in favor of 4-stroke engines. The main 2-stroke engines still available today are
listed in Table 2-6 along with their manufacturers, sizes, and status. Cooper-Bessemer and others
built two-stroke gas engines up to 13,500 hp (10,070 kW), but apparently none this big have
been supplied since the 1970s.
2-23

Figure 2-13 illustrates the valveless, opposed-piston, 2-stroke engine introduced by Fairbanks
Morse in the 1930s. This engine still has competitive power, efficiency, and emissions ratings
todayparticularly in its low-emissions precombustion chamber dual-fuel and SI versions.
Table 2-6
Prominent 2-Stroke Engines Available Currently
Manufacturer
Type of RE
Sizes
Status
Detroit Diesel Corp.
Diesel
110-2,170 kW
Manufactured now only for special customers

mainly the U.S. Armys truck program.
Otherwise replaced with new 4-stroke engine
product line for most applications.
Dresser-Rand
SI
1,730-8,500 hp
In current product line, but used exclusively as

Dresser-Rand gas compressor drivers
Electro-Motive Div.
(EMD) of GM
SI
570-3,580 kW
In current product line
Fairbanks Morse
Diesel
1,290-3,165 kW
Current
SI
1,025-2,585 kW
Current
Dual-Fuel
1,290-3,165 kW
Current
Diesel, DF
1,100-66,000 kW
Current
Diesel
1,400-64,000 kW
Current
Diesel, DF
1,400-64,000
Current
MAN B&W
MHI
Wrtsil NSD
Numerous licensees in Europe and the Far East also manufacture MAN B&W 2-stroke engines.
Numerous licensees in Europe and the Far East also manufacture Wrtsil NSD 2-stroke engines.
Natural Gas Spark-Ignition (SI) Engines

SI engines use spark-plugs, with a high-intensity spark of timed duration, to ignite a compressed
fuel-air mixture. The engines operate on the Otto cycle. Natural gas is the predominant SI engine
fuel used in electric power and cogeneration applications. Other gaseous and volatile liquid fuels,
ranging from low-Btu gas (LBG) to gasoline, can also be usedwith the proper fuel system,
engine compression ratio, and tuning. The most commonly used alternative fuels for stationary
power generation with SI engines are landfill gas, sewage digester gas, [both of which are
medium-Btu gases (MBGs)], and propane (or LPG).
American manufacturers developed large SI engines for the burgeoning gas transmission
industry after World War II. In smaller sizes, Caterpillar, Waukesha, and Cooper Energy
Services produced numerous engines for gas gathering and transmission applications. As
previously noted, SI engines for electric power generation are mainly 4-stroke engines, available
in sizes up to 5.0 to 5.5 MW (from Niigata Engineering and Wrtsil NSD). In addition, 6 to 9
MW SI engines are under development by Wrtsil NSD, and possibly others. The
conservatively designed Cooper-Bessemer line of large, 400 rpm (@ 60Hz) gas engines (SI up to
6.0 MW and dual-fuel up to 6.3 MW) and diesel engines were discontinued about three years
ago, because they were not competitively priced. Two-stroke SI engines are used mainly in gas
2-24

Figure 2-13
Fairbanks Morse 2-Stroke Opposed Piston Engine
compressor applications. The largest 2-stroke SI engine available for electric power generation is
2.6 MWfrom Fairbanks Morse.
Two ignition techniques are employed with SI engines, depending on engine size:
Open chamberwith the spark-plug tip exposed in the combustion chamber, directly igniting
the compressed fuel-air charge upon excitation. Open chamber ignition is applicable to any
engine operating near the stoichiometric air/fuel ratio up to moderately lean mixtures.
Precombustion chamber (also called prechamber)a staged combustion system, with the
spark-plug housed in a small chamber mounted in the cylinder head. This chamber is charged
with a richer fuel-air mixture, whichupon ignition, shoots into the main combustion
chamber as a high-energy torch. This provides ignition energy for lighting off very lean fuelair mixtures used in large-bore gas engines. Space requirements for the prechamber hardware
apparently preclude application of this technology to cylinder bores smaller than about 6.5
inches (165 mm).
The simplest SI engines operate with natural aspiration of air and fuel (via a carburetor or other
mixer) by the suction of the intake stroke. High-performance SI engines are turbocharged to
force more charge air into the cylinders. With turbocharged engines, the fuel may be injected
under pressure into the intake port just before the intake valves of each cylinder. In some cases, a
draw-through carburetor is used where the fuel is mixed with air at low pressure upstream of the
turbocharger. The turbocharger is then used to compress the fuel and air mixture.
2-25

SI engines operate at modest compression ratios (compared with CI engines)in the range of
7:1 to 12:1, depending on the fuel, engine design, and turbocharging. This is needed to prevent
autoignition and engine knock, which can cause serious engine damage. In simple terms, knock
is produced by explosive autoignition of a portion of the fuel due to compression and heating of
the gas ahead of the flame front. The terms knock and detonation are often used synonymously.
Using high-energy ignition technology, very lean fuel-air mixtures can be burned in gas engines,
lowering peak temperatures and NOx emissions. The lean-burn approach is analogous to dry lowNOx combustors in CTs. All major SI engine manufacturers offer lean-burn, low-emissions
models and are engaged in R&D to improve them.
SI engine efficiencies typically are lower than CI engines, because CI engines operate at higher
compression ratios. However, large, high-performance lean-burn SI engine efficiencies are
comparable to diesel engines of the same size. SI engine efficiencies range from about 25% for
small engines to 38% for the largest high-performance lean-burn engines (HHV; 27 to 42%,
based on LHV). Lean-burn SI engines tuned for maximum efficiency may produce twice the NOx
emissions as the same engine tuned for minimum NOx. Tuning for low-NOx typically results in a
sacrifice of 1 to 1.5 points in electric generating efficiency from the highest level achievable.
Power Density and Costs
Many of the natural gas SI engines are derived from diesel engines; i.e., they typically are built
using the same block, crankshaft, main bearings, camshaft, and connecting rods as their parent
diesels. However, SI engines operate at lower BMEP and peak pressure levels to prevent
autoignition and engine knock. Due to the derating effects from lower BMEP, the SI offspring of
diesel engines often produce only 60-80% of the power output of their parent diesels.
Manufacturers often enlarge cylinder bore about 5-10% for the SI engine to increase power, but
this only partial compensation for the derated output. Consequently, the $/kW capital costs of SI
engines are higher than their parent diesels. However, by operating at lower cylinder pressure
and bearing loads, as well as in a cleaner combustion environment (i.e., gas versus oil), SI
engines offer the benefit of prolonged component life, compared with their diesel parents.
Fuel Considerations and Issues
The main fuel consideration with pipeline quality (clean, very low sulfur, dry) natural gas is its
detonation (knock) characteristicwhich varies slightly with composition. This may require
adjustments in spark-ignition timing and/or compression ratio. The knock-resistance (octane
ratings) of methane through some C4 hydrocarbons, and the critical compression ratios for
autoignition of these fuels are listed in Table 2-7. The critical compression ratios are from
laboratory tests under controlled conditions, and therefore will differ from compression ratios in
actual practice [4]. Fuels that contain more than approximately 5% by volume of hydrocarbons
heavier than propane should be used only in low-compression engines to avoid detonation. Also,
the air-fuel charge temperature for turbocharged gas engines must be kept below the
manufacturer specifications (by controlling the aftercooler water temperature) to avoid the
increasing tendency toward detonation as the charge temperature increases. High-load conditions
also increase the knock tendency for any fuel.
2-26

Table 2-7
Knock Resistance, Critical Compression Ratios, and Volumetric Higher Heating Values for
Methane and Other Light Hydrocarbons
Fuel Gas
Octane Rating
Critical
Compression
Ratio
HHV
Btu/scf @ 60F
Methane
(CH4)
130.0
15.0:1
1,012
Ethane
(C2H6)
103.0
14.0:1
1,783
Propane
(C3H8)
99.6
12.0:1
2,578
Iso-butane (C4H10)
98.4
5.25:1
3,354
n-Butane
91.6
6.4:1
3,369
(C4H10)
Source: Caterpillar
An increasing number of manufacturers use methane number (a rating devised in the 1960s by
AVL) rather than octane number as an indicator of knock in gaseous fuels. On the methane
number scale, methane is assigned a value of 100 and H2 is assigned a value of zero. Caterpillar
recommends that fuels with more than 50 vol% H2 not be used.
The limitations of octane numbers and methane numbers became apparent in the early 1990s, as
higher performance engines were developed. Methane number work was based on commercial
quality natural gas and did not apply well to field gases. Also, octane number calculations were
not sufficiently accurate at the increased outputs of the newer engines. Consequently, some
manufacturers developed more accurate methods for calculating the knock resistance of gaseous
fuels, including natural gas, field gas, and low-heating value gases. Some of these methods; e.g.,
the Waukesha Knock Index, can account for the positive effects of the inert gases often found in
gaseous fuels [5].
Depending on the specific engine design characteristics, derating is needed for operation with
fuels below a certain methane number to avoid detonation. For example, unprocessed gas as it
comes directly from the gas well (called field gas), often contains more than 5 vol% of heavy
ends (butane and heavier) as well as water, salts, and H2S. This gas is often scrubbed to remove
the liquid heavy ends, H2S, and inorganic material. Since the gas contains some propane and
some C4+ vapors, the engine compression ratio must be lowered to use field gas. Either a
naturally aspirated or turbocharged engine may be used, but ignition timing may have to be
retarded to eliminate detonation. These adjustments derate the engine relative to high-quality
natural gas operation.
Air/Fuel Ratio and Engine Size
The compression ratio at which knock occurs decreases as engine bore (cylinder diameter) is
increased and engine speed is decreased. These conditions allow more time for detonation to
occur. This effect may be offset in both SI and dual-fuel engines by lean-burn operation, which
permits using a higher BMEP, thereby increasing thermal efficiency and specific power output.
2-27

The Caterpillar 3516 SI engine (Table 2-8) illustrate the performance benefits of lean-burn
design and operation.
Table 2-8
Comparison of Models of the Caterpillar 3516 SI Engine (Natural Gas Fueled, 1,200-rpm,
Sea Level Operation)
Fuel Efficiency
(standard
emissions)
Stoichiometric
(before TWC
catalyst)
Lean-burn
(lowemissions)
Compression ratio
9:1
9:1
11:1
Power output, kW a
769
769
815
Fuel flow, scfh @ 60F
9,057
9,251
9,523
Air flow, lb/h
7,063
6,648
11,171
Exhaust flow, lb/h
7,488
7,083
11,572
Percentage excess air
8.5
62
Electrical efficiency (LHV), % b
32.0
31.3
34.5
NOx
24.8
16.6
1.4
CO
1.1
14.5
2.2
Total hydrocarbons
1.0
1.8
6.3
NMHC
0.14
0.28
0.97
O2, % (dry basis)
2.1
0.2
9.0
Parameter
Emissions, g/kWh
a
b
Based on 95% generator efficiency.

Assuming LHV = 905 Btu/scf.
Source: SFA Pacific, Inc. and Caterpillar data
Performance curves for gas engines (both SI and dual-fuel) often are presented with the
volumetric air/fuel ratio as the basic independent variable (x-axis). Power output, BMEP, brakespecific fuel consumption (usually as Btu/hp-h) or thermal efficiency (based on shaft power
output), emissions (g/hp-h), and exhaust gas temperature are the commonly displayed
performance variables (y-axis). Figure 2-14 shows an example performance curve. Optimal fuel
consumption in this example is at volumetric air/fuel ratios of 10.0 to 10.8 (corresponding to an
O2 level in the wet exhaust gas of 1-2.5%). Engines equipped with 3-way catalytic converters for
emissions control require air/fuel ratios close to stoichiometric (9.5-9.7) to keep the O2
concentration in the exhaust close to zero (0-0.5%). [Note: this example does not convey an
optimized lean-burn engine design.]
Another commonly used air/fuel ratio term is excess air ratioa normalized air/fuel ratio,
typically represented by the Greek letter lambda (). A volumetric air/fuel ratio of 20
corresponds to of 2.1; is 1.0 at stoichiometric conditions. Figure 2-15 illustrates the
2-28

performance benefits of increasing the excess air ratio in optimized gas enginesboth SI and
dual-fuel [6]. At s above about 1.7, NOx is approaching its lowest value, but BMEP and
efficiency continue to increase as is increased further. However, CO and unburned
hydrocarbon emissions increase as is increased.
Precombustion Chamber (PC) SI Engines
Lean combustion requires a higher-energy ignition system than stoichiometric combustion. This
is even more important in achieving stable and complete combustion in large-bore, very-leanburn gas engines. In modern high-performance, lean-burn gas engines this is accomplished with
a prechamber. Although prechambers reportedly have been used in opposed-piston SI engines
since the 1950s and in other SI engines since the 1970s, the emphasis on lean-burn combustion
for reduced emissions during the last decade has given manufacturers more incentive to produce
prechamber lean-burn models.
A representative SI prechamber system is shown in Figure 2-16. A fuel-rich mixture is created in
Figure 2-14
Illustrative SI Performance Curve
2-29

the prechamber and ignited by a spark plug. A flame jet shoots from the prechamber and
provides a high-energy torch that results in more rapid, stable, and uniform lean-burn
combustion in the main chamber. The cylinder firing pressure is more stable from cycle to cycle,
more uniform between cylinders, and engine power output is more constant than a lean-burn
open-chamber SI combustion system. The higher air flows (leaner combustion) with
prechambers reduce peak firing temperatures and NOx emissions.
Figure 2-15
Benefits of Increasing Excess Air Ratio in SI and DF Engines
Figure 2-17 shows the performance versus excess air curves for Wrtsil NSDs largest
prechamber SI engine (5.2 MW @ 60Hz)tuned for maximum efficiency of 42.0% (LHV).
This illustrates that, for very lean-burn operation, the engine must be controlled within a narrow
band to avoid knock and incomplete combustion (misfire) limits. This figure also shows how
higher s enable increased BMEPs and efficiency. Precise engine control is essential to
optimizing fuel use and emissions performance while maintaining reliability of these engines.
With todays advanced sensors and computer controls, precise control of the fuel gas admission
and air/fuel ratio control for each cylinder is applied to optimize engine performance. Wrtsil
NSD claims this type of control system enables reducing fuel consumption by 5-10% and
increasing output 15-20% (compared to conventional mechanical control systems).
2-30

Figure 2-16
Precombustion System for SI Engine
Figure 2-17
Wartsila NSD 34 SG Precombustion Chamber Gas Engine
2-31

Figure 2-18 illustrates how Wrtsils individual cylinder control facilitates holding each
cylinder close to its optimal performance point, compared with the scatter of individual cylinder
performance that might occur when operating with only single-point control of the fuel
admission and air flow to the engine.
Figure 2-18
Illustration of Engine Performance Optimization With Individual Cylinder Control
Spark-Plug Life
Spark-plug life can be shorter in prechamber engines, since the plugs run hotter and at higher
pressures in these engines than in conventional open-chamber engines. Spark-plug life varies
from one prechamber engine model to anotherfrom as high as 5,000 to 6,000 hours to as low
as 1,000-2,000 hours. Severity of the operating conditions is also an important factor. In some
cases (e.g., landfill gases), the prechamber spark plugs may have to be regapped very frequently
(possibly every week), because the combustion process is very sensitive to the spark intensity.
Some manufacturers compensate for this effect with a control system that automatically adjusts
the spark as the plugs wear.
In contrast, spark-plug life in conventional lean-burn engines is 5,000 to 10,000 hours. This may
decrease to 1,000 to 5,000 hours in very high BMEP engines. Continuing R&D by RE and sparkplug manufacturers is aimed at developing improved spark plugs, including better materials and
improved spark-control. Advanced diagnostic techniques have also been developed to allow realtime monitoring of spark plug condition.
Retrofitting Older SI Engines for Leaner Combustion and Lower NOx
Increasingly stringent air emissions regulations have prompted retrofits of older existing engines
to lean combustion and reduced NOx. Some manufacturers of prechamber SI engines (e.g.,
2-32

Cooper Energy Systems) offer retrofit systems with new turbochargers and prechambers. These
are estimated to cost roughly $50/kW, which includes turbocharger modifications.
An effect approximating that of prechamber may be obtained by employing a stratified charge
i.e., by creating a richer fuel-air mixture in the vicinity of the spark-plug while maintaining a
predominantly lean main cylinder. This can be done by programmed injection directly into the
individual cylinders or just before the intake ports. The stratified charge ignites more readily than
the lean mixture. The NOx levels achievable by this technique are at best still about twice the
magnitude of those achievable with prechambers and lean-burn operation. Aftermarket stratified
charge systems have been retrofitted to a number of engines in gas and oil fields by independent
suppliers.
Cooper Energy Services INOx Ignition System is an example of a system that can be retrofitted
to an old engine to convert it to a lean-burn low-NOx engine. Using a plasma ignition technology,
INOx produces a high-energy spark that can be kept arcing for up to 20 degrees. It helps
combusts lean mixtures and can achieve NOx as low as 1.4g/kWh. However, it is not applicable
at s above about 1.7. Misfiring will occur with INOx applied to leaner mixtures.
A somewhat similar concept is used in the multi-strike ignition system available from Altronic,
Inc. It uses multiple ignition strikes spread over about 8 to 12 degrees to improve combustion
stability and reduce misfire in large-bore gas engines. It apparently was developed for old 2stroke gas engines used in gas compressors. It would appear to produce a less intense spark and
may be somewhat less effective than the INOx system.
Dual-Fuel (DF) Engines

DF engines are diesel (CI) engines fueled predominantly by natural gas with a small percentage
of diesel oil as the pilot fuel. The pilot fuel autoignites and combusts the main lean air-fuel
charge. The two fuel inputs are typically expressed as percentages of total fuel energy input. DF
operation is a combination of Diesel and Otto cycle operationapproaching the Otto cycle more
closely as the pilot fuel percentage is reduced to low values. Most DF engines can be switched
back and forth on the fly between DF or 100% diesel operation.
DF engine development apparently began in the 1930s, using 80-95% natural gas. Derating was
necessary to prevent detonation. These characteristics still basically represent conventional DF
engines available today, although improved control of intake air flow and air/fuel ratio have
minimized the derating in some cases. Conventional DF engine installations proliferated in the
U.S. from the 1940s to the oil crisis and temporary natural gas shortages of the 1970s. DF engine
applications proliferated in Europe from the 1970s. European manufacturers introduced highpressure gas-injected DF engines in the late 1980s to overcome derating, but this technology has
not been well accepted. The micropilot prechamber DF engine was also introduced commercially
in the late 1980s. This has the potential of becoming more successful in the marketplace.
Today, there still are the three basic types of commercial DF engines: very lean-burn micropilot
prechamber, conventional, and high-pressure gas-injected DF engines. Ongoing R&D by may
eventually lead to commercial micropilot open-chamber DF engines, as another type. Table 2-9
2-33

provides an overview of the currently manufactured DF engines and aftermarket DF conversion

options.
Conventional DF Engines
Conventional DF engines typically require about 5-10% pilot fuel and, depending on specific
designs, may be derated to about 80-95% of the 100% diesel capacity to avoid detonation. For
conventional dual-fuel engines, the minimum pilot fuel requirement is set by the turndown ratio
of the diesel fuel-injection system. Conventional diesel fuel injectors cannot reliably turn down
to less than 5-6% of the full load injection rate.
The operation of a conventional DF engine is illustrated in Figure 2-19. The natural gas input is
controlled at each cylinder by injecting gas just before the air intake valves. Methods of reducing
the intake air flow at reduced loads (to avoid overly lean mixtures) include: throttling the air,
using variable-geometry turbochargers, and turbocharger bypass. Some older DF engines employ
the simple technique of premixing the fuel and air entering the engine.
Because of lowered fuel oil usage, NOx, smoke, and particulate emissions are lower for dual-fuel
operation than for straight diesel operationparticularly at full load. However, CO and unburned
hydrocarbon emissions are higher, partly because of incomplete combustion in the crevice
volumes. NOx levels are higher than lean-burn SI engines and micropilot prechamber DF
engines. Consequently, post-combustion catalytic emissions controls generally are required with
most conventional DF installations in most of Western Europe, Japan, and the non-attainment
regions of the United Statesexcept for standby service or, possibly, limited peak-shaving
service.
U.S.-manufactured DF engines were used by many Midwestern municipal power companies and
rural electric cooperatives in the United States from the 1940s into 1970s. Originally, these were
employed in baseload and cycling service. Many of these engines are still in place and operable,
but used primarily in standby, peaking, and cycling standby service. It is believed that most of
the large CI engines manufactured for stationary power applications (excluding standby) in the
United States in the 1950s and 1960s were dual-fuel engines. A total of approximately 5,000
MW of utility-owned diesel and DF engine capacity is installed in the United States, including
Alaska and Hawaii. Based on SFA Pacifics analysis of DOEs power plant inventory data [7],
approximately 2,600 MW of this total (1,500 engines) are owned by 325 municipal utilities in
the diesel beltextending from Minnesota and Michigan to Louisiana and Texas. Although
the exact number and total capacity of DF engines in this total is not available, it is believed that
most of the units are DF units.
2-34

Table 2-9
Manufactured DF Engines and Aftermarket DF Retrofit Options
Pilot
Fuel, %
NOx,
g/kWh
Size
range
MW
Conventional, low-pressure, with multi-point

gas-injection (just before the air intake valve)
5-8
5-8
0.5-65
Allen Diesels, Fairbanks Morse (FM),

MAN B&W, Mirrlees Blackstone, Ruston
Diesel, Wrtsil NSD
High-pressure (>3,600 psi) gas-injected (direct

injection of gas)
3-8
5-8
5.0-65
MAN B&W with Mitsui Engrg &

Shipbuilding, Wrtsil NSD
0.6-1.5
1.3-15.7
FM, MAN B&W, Wrtsil NSD
Conventional DF adaptation of RODIs new 2stroke, V-4 diesel truck engine
5-10
n.a.
310
RODI Power Systems with partial support

from TVA
Advanced conventionalno micropilot or PCs
2-3
n.a.
n.a.
Caterpillar a
0.6-1.5
1.1-3.3
0.25-0.5
<0.5
n.a.
Retrofit with micropilot PCs and sequential

multi-point gas-injection (just before the air
intake valve of each cylinder) (high-tech)
1-1.5
1.4-2.0
1.3-10
CES, FM (only their engines). Also Energy

Conversions, Inc. (ECI) developing both
DF and SI prechamber retrofits for an EMD
diesel engine.c
Central point gas-injection (basic-tech)

with premixing before the intake manifold
(also called fumigation)
10-30
6-10
all sizes
Innovative Technology Group (ITG)

(formerly OCLI), Gas Technologies Inc.
(split off from OCLI), Electronic Fuel
Control (EFC) c, VESi c
Sequential multi-point gas-injection (hightech) with conventional pilot fuel injectors
5-10
2.5-8
all sizes
BKM/Clean Air Partners (CAP) d, ECI,

Stewart & Stevenson (installer of the ECI
technology), VESic
Sequential multi-point gas-injection (hightech) with micropilot fuel injectors & skip-fire
1-2
1.4-2.0
Possibly
>10
BKM/CAP. 2% micropilot pilot

demonstrated. Now 1% demo is
underway.d
1-2
3-4
0.3-2
DF Engine Option
Manufacturers & Suppliers
Currently Manufactured DF Engines
Micropilot, with prechambers (PCs)

DF Engines Under Development
Micropilot with PCs

Advanced micropilot & PCs
Cooper Energy Services (CES)

CES, FM,b
Aftermarket DF Conversion Technologies
High-pressure (>3000psi) direct-injection of

gas and diesel fuel via micropilot injector
Westport Innovations (Detroit Diesel

engines in Vancouver, B.C. bus fleets and
Cummins engines) c
It is likely that Caterpillar is also investigating micropilot prechamber engines.

It is possible that FM has cut back on its micropilot R&D following its settlement with CES over patent rights.\
c
Under development.
d
CAP is also employing skip-fire; i.e., shutting off gas feed to selected cylinders as engine load decreases, while maintaining pilot fuel to all cylinders.
b
2-35

In Europe, use of DF engines in stationary power and cogeneration began in the 1970s, when
natural gas from the North Sea and the Soviet Union became available. Many of these engines
were based on marine diesel engines. DF engines enabled taking advantage of the new fuel
supply with the ability to switch to 100% diesel operation in the event of gas supply
interruptions. DF engines continued to increase in Europe since the 1970s. While statistics are
not readily available, the number of DF units installed in Europe is undoubtedly large.
Currently only one U.S. manufacturerFairbanks Morsemanufactures conventional DF
engines, while most major European manufacturers and a few Japanese manufacturers still offer
the technology. Rebuilt DF engines are sometimes available from a number of independent
specialists in the U.S. and Europe, as well as from Cooper Energy Services. RODI Power
Systems, a U.S. packager/OEM of John Deere engines, is developing a conventional 310 kW 2stroke DF engine with support from the Tennessee Valley Authority (TVA). The utility
reportedly plans to deploy engines throughout its system in distributed power applications. Some
equipment manufacturers and developers offer diesel-to-dual fuel conversions, most of which
result in a conventional dual-fuel engine.
High-Pressure Gas-Injected DF Engines
Derating of conventional DF engines can be significantly reduced, or eliminated, by injecting
Figure 2-19
Conventional DF Engine
2-36

natural gas at pressures of 3,600-5,100 psig (245-347 atm) directly into the main chamber as the
pilot fuel is injected. The gas is not premixed with the charge air. Unfortunately, the parasitic
power for gas compression from its typically low delivery pressure is about 4-7% of the rated
power outputpartly offsetting the benefit of preventing derating. Because of this drawback, as
well as the additional equipment costs and customer concerns about highpressure natural gas,
this technology has not become popular.
Wrtsil NSD, a pioneer of this technique in the late 1980s, supplied one plant in the U.S. and
apparently a few in Europe. The U.S. plant is an 18 MW (gross) combined-cycle cogeneration
plant in Pennsylvania, built for Cogentrix (an independent power producer) in 1989-1990. It
employs three 5.6 MW engines and a 1.2 MW steam turbine. In addition, a demonstration of this
technology was built in Japan by Mitsui Engineering & Shipbuilding Co., Ltd.(MES) in 1994,
using a 40 MW MAN B&W 2-stroke, low-speed diesel engine. MES is the top licensed
manufacturer of the giant MAN B&W engines, and the two companies collaborated in
developing the high-pressure gas-injected technology.
The MES demonstration burns about 8% low-sulfur diesel oil as the pilot fuel and consumed
about 6% of the generator output for parasitic loadsmainly gas compression to 4,350 psig (296
atm). The MES plant is equipped with SCR. Wrtsil has developed an electronically-controlled
pilot fuel injection system, which reduced its pilot fuel requirement to just 3%. Emissions were
reduced, but NOx output still is approximately 5 g/kWhabout four times that of micropilot
prechamber DF and lean-burn SI engines.
In the U.S., the Electro-Motive Division (EMD) of General Motors (GM) has a high-pressure
gas-injected diesel engine development program being conducted at SwRI in San Antonio, TX.
A 16-cylinder, 4,000 hp (2985 kW), 2-stroke diesel locomotive engine was running on 5 to 7%
pilot fuel injected at about 3,000 psig (204 atm). The objective is full horsepower on natural gas
or diesel, with the ability to switch between the two modes. This program is now in limbo.
Detroit Diesel Corporation (DDC) was also working on high-pressure gas-injection of a one of
its 2-stroke bus engines, based on pressurized LNG, which is vaporized prior to injection.
However, this program has been terminated with the phase-out of DDCs 2-stroke engines.
Micropilot Prechamber DF EnginesLiquid Spark Plug Engines
The micropilot injector is named because it can achieve pilot fuel injection close to 1%. Like its
SI prechamber cousin, the micropilot DF prechamber engine, illustrated in Figure 2-20, provides
a high-energy torch that ignites the very lean, compressed fuel-air mixture in the cylinder. Leaner
mixtures than lean-burn SI prechamber engines are possible, since the ignition energy provided
by the diesel-fueled micropilot prechamber is higher than that obtained with a SI prechamber. To
operate on 100% diesel, these engines must also be equipped with conventional diesel fuel
injectors. With engines having bore sizes larger than 15 inches (381 mm), two prechambers per
cylinder further improves combustion smoothness, fuel efficiency, and NOx control.
2-37

Figure 2-20
Precombustion Chamber on DF Engine
Some people call micropilot DF prechamber the liquid spark plug, because it replaces the
conventional spark plug used in SI gas engines. DF operation at or close to the parent diesel
engines compression ratio and BMEP is permissible, so littleif anyderating occurs. In this
case, the high power density and low $/kW cost advantages of the parent diesel are retained and
efficiency at 75 to 100% load is closer to that seen with 100% diesel fueling. The NOx and other
emissions are comparable to those of lean-burn SI prechamber engines.
A liquid-fueled CI engine with a prechamber combustion system is called an indirect injection
(IDI) engine, in contrast to the direct injection (DI) engine in which all the liquid fuel is injected
into the cylinder. The development of CI prechamber technology began more than 30 years ago.
However, IDI has not been popular for heavy-duty, 100% liquid-fueled diesel engines, as it
usually degrades their fuel economy by 8 to 12% [8].
Cooper-Bessemer (a division of Cooper Energy Services) apparently introduced the first
commercial micropilot prechamber DF engine in the late 1980s, by retrofitting an existing
conventional Cooper-Bessemer DF engine at an industrial customers research campus with
2-38

micropilot precombustion chambers. Cooper-Bessemer obtained early patents on this

technology.
Fairbanks Morse introduced similar technology for its dual-fuel engines in the early 1990s and
assisted the German RE manufacturer MAN B&W in adapting the technology to their products
in the mid-1990s. Meanwhile, Wrtsil NSD and a few other manufacturers began developing
similar technology, and Wrtsil commissioned its first commercial micropilot prechamber DF
engines in Turkey in 1997. Caterpillar is apparently investigating this technology and other
variations on DF engines, but has not yet announced a product for stationary power generation.
As discussed later under Aftermarket Conversions of Diesel Engines to DF Operation,
Caterpillar also is a licensee of the DF retrofit technology of Clean Air Partners.
While recent litigation in the U.S. has established Cooper Energy Services as a valid holder of
micropilot CI prechamber patents, the international status of the patents is presently unclear.
Although Cooper-Bessemer discontinued production of its entire line of 400 rpm engines in
1997, Coopers other division, Ajax-Superior, is developing a new engine based on this
technologythe 1,200 rpm 2400 Series DF engine in sizes from 1.1 to 3.3 MW . Superiors
prototype micropilot DF engine is scheduled for field testing in 2000. GRI is working with
Cooper Energy Services in this development program.
Prechamber DF engines are commercially available in the U.S. in sizes from about 1.3 MW up to
about 9 MW, and in Europe up to 16 MW. There are about 15-20 micropilot DF engines
(Cooper-Bessemer and Fairbanks Morse combined) installed in the U.S. and several in Europe
and Turkey combined.
Cooper Energy Services can retrofit Cooper-Bessemer and Enterprise diesel engines (both no
longer manufactured) with DF and micropilot technology. Similarly, Fairbanks Morses diesel
engines can be retrofitted to operate as conventional or micropilot DF engines. CI prechamber
retrofits by the original engine manufacturer to its own engines are estimated to cost up to
$50/kW, which includes turbocharger modifications.
Reducing the pilot fuel requirement to 0.5% of the total fuel energy input appears to be a target
of the manufacturers of this technology. Challenges in achieving this target include increased
potential for combustion instability, achieving precise pilot injection control, and potential for
prechamber fouling.
Aftermarket Conversions of Diesel Engines to DF Operation
Existing diesel engines of most types and sizes can be retrofitted for dual-fuel operationwith
70-98% natural gas fueling at full load, depending on the engine and the retrofit technology. A
1% micropilot retrofit kit may be available by 2001 from Clean Air Partners (CAP)an
independent equipment supplier/developerin addition to the micropilot prechamber retrofits
available from Cooper Energy Services and Fairbanks Morse for their engines. One opportunity
for DF retrofit technology is the relatively low-cost conversion of existing standby emergency
diesel engine gensets for use in peaking, cycling, and even baseload servicein cases where repermitting is appropriate and can be readily accomplished. The reduction in NOx emissions
enabled by predominantly natural gas operation should facilitate re-permitting in many cases. It
2-39

should be noted that manufacturers may not warrantee an engine that has been retrofitted with a
third-party DF conversion kit. One exception is the Clean Air Partners (CAP) DF conversion
technology, which appears to be supported by Caterpillar.
Several independent developers have commercialized or are testing prototypes of DF retrofit
kits for converting existing diesel engines to DF engines. The main North American
developers are highlighted in Table 2-9. Undoubtedly developers in Europe and Japan are also
pursuing various DF conversion technologies. In addition, the Southwest Research Institute in
the U.S. has been conducting contract research on DF engines for a number of years, including
high-pressure direct gas-injection and micropilot injectors.
The conversion kits, which allow fuel switchability, can be put into three general categories:
Simple (Basic-Tech) Fumigation Systems. With fumigation systems, the natural gas and
air are premixed before the turbocharger or intake manifold. These are low-cost conversions,
costing $15-$30/kW, installed. The fumigation technique is generally limited to a maximum
of about 80% natural gas at full load, although 85-90% reportedly is possible with certain
engines and careful tuning. The NOx reduction at 80% gas fueling is approximately 40-60%.
Fumigation systems require the proportion of diesel to increase as load is decreased;
otherwise the air/fuel ratio becomes too lean for stable combustion. Innovative Technology
Group Inc. (ITG) (formerly OCLI) apparently has been successful at selling and installing its
kits on both vehicle and stationary diesel engines worldwideboth on-land gensets and offshore oil platforms. This includes the activities of ITGs predecessors, before their
technology rights were acquired by OCLI.
Notable ITG/OCLI installations are in New York. Several 600-1,200 kW Mitsubishi diesel
engines in islanded cogeneration systems at electroplating companies in Brooklyn, New York
were retrofitted by UMR Power, the cogeneration system installer, when the engines were
installed. UMR claims the ITG conversion works well and is simple enough to be serviced by
a standard diesel mechanic. The engines employ retardation of pilot fuel injection to improve
NOx reduction.
At AFG Industries (a major glass manufacturer) in Victorville, California, a 1 MW Cummins
diesel engine is equipped with ITG/OCLIs DF kit. This engine was originally a standby unit.
It was fairly easily repermitted for peakshaving during Southern California Edisons highrate summer peak periods.
GRI has been working with VESi, which is developing a fumigation-type DF system with
electronically controlled air/fuel ratio that may allow natural gas fueling up to 90% at full
load. VESi already offers a mechanically controlled fumigation system, which uses a
modified carburetor for air/fuel ratio control. VESis product may be introduced by 2001.
Sophisticated, Low-Cost High-Tech Systems. The levels of sophistication of these systems

vary. However, no major engine modifications are required, so the installed retrofit costs are
$30-$60/kW. These higher-tech conversions presently are capable of 2-10% pilot fuel, with
proportionately lower NOx output (compared with the fumigation systems), as well as better
part-load efficiency and emissions characteristics. Systems typically employ electronic
controls with sequential multiport gas-injection, air/fuel ratio control, and turbocharger
bypass. For improved reduced load operation, pulsed gas-injection (to partially stratify the
2-40

fuel charge) or skip-firing also may be employed. Skip-firing involves firing less than all of
the cylinders.
A leading developer of such systems is CAP of San Diego, California. CAPs technology
includes all of the above features with the option of CAPs recently demonstrated 2%
micropilot injector. No prechamber is used, so no major engine (head) modifications are
required. CAP is now beginning the demonstration of a micropilot designed to operate with
1% pilot fuel still with no prechamber. GRI, Southern California Gas, and the California
Energy Commission have been working with CAP in these development programs. In
addition, between 75-100% load, the retrofitted diesel engine operates at about 5% higher
efficiency than the 100% diesel engine. This system does require higher-pressure gas (80-100
psig). Caterpillar became a licensee of CAPs technology in 1997, applying it so far to longhaul trucks and refuse-hauling trucks. The Los Angeles area Caterpillar dealer is performing
the retrofits [9]. CAP is free to license additional parties for stationary applications.
Westport Innovations is developing a new diesel and natural gas injector and DF system that
offers the potential for a more sophisticated dual-fuel engine (Figure 2-21). Westport has
been working mainly with Cummins. This system has similarities to prior Wrtsil efforts on
high-pressure direct injection with dual-fuel pilot ignition.
High-Tech Conversions That Require Major Engine Modifications. These conversions

typically use many of the above features. However, they also require new or modified heads
and possibly new or modified pistons. Energy Conversions Inc. (ECI) of Tacoma, WA uses
this approach in the commercial retrofit of EMD engines. Using a conventional diesel fuel
injector, the ECI conversion is limited to 5-10% pilot fuel. The installed cost ranges from
$120-160/kW, depending on the engine and installation labor rates. ECIs technology has
been proven in extended long-haul railway locomotive service with Burlington Northern and
a number of subsequent stationary applications. Stewart & Stevenson has retrofitted a
number of EMD 2-stroke diesel engines with ECIs technology for offshore oil platforms.
ECI has also recently adapted the technology to the Caterpillar 399 diesel engine, a rugged
but discontinued model that is widely used. ECI is now developing both DF and SI
precombustion chamber retrofits for the 1,200 to 3,600 kW EMD710 Series diesel engines.
Figure 2-21
Westport Innovations DF System
2-41

Diesel Engines
CI engines require compression ratios of about 12:1 to 17:1 to heat the cylinder air to a
temperature at which the injected fuel oil will ignite. The quality of fuel injection significantly
affects CI engine operating characteristics, fuel efficiency, and exhaust emissions. Fine
atomization and good fuel dispersion by the injection nozzle is essential for rapid ignition, ideal
combustion, and emissions control. High-pressure injection is required for good atomization.
Increasingly, diesel engine manufacturers are favoring common rail injection systems (CRISs),
which employ a common small-volume fuel manifold (rail) under high pressure, feeding
individual, electronically controlled fuel injectors for each cylinder. This system provides more
precise calibration of fuel delivery and accurate injection timing. It also enables injection rate
shaping over the complete operating range of the engine. Thus, CRIS provides better engine
control, fuel economy, and potential for reduced combustion noise [10].
CI engines are excess air engines, requiring a above 1.6 to prevent smoke formation. Excess air
levels range from about 115% for small diesels to 300% for the large, low-speed, 2-stroke
diesels. This excess air is comparable to CTsyielding exhaust gas with 12-17% O2 (dry basis).
Depending on the engine and fuel quality, CI engines produce 5-20 times the NOx (on a ppmv
basis) of a lean-burn gas engine, as well as assorted heavy hydrocarbon and particulate air
emissions. However, diesels produce significantly less CO than lean-burn gas engines. The NOx
output from heavy oil fueling typically is 25-30% higher than distillate fueling. Common NOx
control techniques are: delayed fuel injection, exhaust gas recirculation, water-injection, fuelwater emulsification, inlet air cooling, intake air humidification, and compression ratio and/or
turbocharger modifications. Water-injection (including emulsification) is becoming increasingly
popular, because it can reduce NOx 50-60% without increasing fuel consumption or smoke
output. In addition, an increasing number of stationary, locomotive, and marine diesel units are
equipped with SCR and oxidation catalyst systems for post-combustion emissions reduction.
Diesel engines are the most efficient simple-cycle prime movers in the market. Efficiency levels
increase with engine size (bore size). Electric generating efficiencies range from about 32%
(LHV) for small high-speed diesel engines up to 45 to 50% (LHV) for the large-bore, low-speed
engines. Advances in diesel engine technology over the next few years could raise engine
efficiencies by 1 to 2 points.
The largest diesel engines (continuous power ratings @ 60 Hz) in each speed class are as
follows:
High-speed:
3.6 MW @50 Hz (1,500 rpm) and 3.1 MW @ 60 Hz (1,200 rpm)
Medium-speed:
36 MW (both 50 Hz and 60 Hz)
Low-speed:
65 MW (both 50 Hz and 60 Hz)
2-42

High-Speed Diesel Engines

High-speed engines have limited time available for combustion, thus require a high-quality fuel
oil with good combustion properties. No.1 and No. 2 distillate comprise the standard diesel fuels.
Low-sulfur distillate is preferred to minimize SO2 emissions.
Typically high-speed units are mass-produced, except the larger sizes which are built to order.
The smaller, high-speed, distillate-fueled diesel engines are important for standby and many
continuous small electric power and cogeneration applications, where environmental regulations
permit. Thousands of high-speed gensets between 300 to 2,000 kW are sold every year for
worldwide stationary power applications. In the 1,000 to 2,000 kW range, roughly 3500 units are
sold annuallyprimarily for standby and continuous service, and secondarily for peaking [11].
High-speed diesel engines are not suited to burning oil heavier than distillate. Heavy fuel oil
requires more time for combustion. Also, the combined impacts of high-speed and contaminants
in lower quality heavy oils causes excessive wear and other damage in high-speed diesel engines.
Medium- and Low-Speed Diesel Engines
In world power markets where natural gas is not available, medium-speed diesel engines
comprise a preferred power generation technology. This leadership exists due to their heavy-fuel
oil capability, economics, and reliability. Such engines increasingly are being deployed in a full
range of sizes for continuous power generation, particularly throughout the developing world.
Figure 2-22 shows typical performance curves for a medium-speed diesel engine as a function of
engine load. This illustrates an important characteristic of CI enginesthe relatively flat
efficiency curve over a wide load range. This differs markedly from CTs, which show a
characteristic decrease in efficiency as load is reduced from full load.
2-43

Figure 2-22
Illustrative Medium-Speed DI Engine Performance
While generally slightly less efficient than larger low-speed 2-stroke engines, medium-speed 4stroke engines generally are more practical and economic than the 2-stroke engines for stationary
power/cogeneration plants because they:
Are less massive and cost less to purchase and install
Can be delivered sooner
Being lighter, require lighter foundations and simpler civil engineering
Can be erected faster
Can make higher pressure/temperature steam
May be slightly cleaner burning
However, low-speed 2-stroke diesel engines hold a large portion of the market for sea-going
vessels [12].
An innovative, compact, lightweight medium-speed diesel enginecalled the advanced diesel
engine development (ADD) engineis now in commercial stationary power plant and marine
service. Designed in Japan by ADD Inc. and built under license by Mitsui Engineering &
2-44

Shipbuilding Co., Ltd. (MES), the engine has a single valve per cylinder (serving both intake and
exhaust), designed to produce 40% higher output than engines of equivalent bore, and is 30%
lighter than engines of equivalent output. The ADD V-engine is available in 6 to 18 cylinder
versions at 3.3 to 10.3 MW. It can burn heavy oil and reportedly will provide, at relatively low
cost, high efficiency, high reliability, and easy maintenance. The engine achieves high power
output through high BMEP (about 400 psi or 27.2 atm) and a relatively high piston speed [13].
Actual performance data have not yet been published. ADD is a collaborative venture of MES,
Kawasaki Heavy Industries Ltd. (KHI), Hitachi Zosen Corporation, and the Japan Development
Bank. This engine could become a formidable competitor in the Asian power market. The ADD
engine was introduced in 1996 and the first units were delivered in 1997for ship propulsion.
Four 8.8 MW units entered commercial service at a 32 MW IPP facility in Malaysia in 1999.
Many medium-speed and all low-speed marine engines are designed to burn heavier oils
including low-grade residual oils or Bunker C oils. Some medium-speed diesel engines can burn
crude oil (a lighter oil than residual oil), but should not burn residual oil. The engine
manufacturers specify engine fuel oil gradesin terms of acceptable properties (density,
viscosity, flash point, pour point, Conradson carbon residue, etc.) and maximum concentrations
of potentially damaging constituents (ash, water, sulfur, vanadium, and aluminum). The
International Council on Combustion Engines (CIMAC) has diesel engine heavy fuel oil
recommendations [14]. Generally a manufacturers guidelines will reference CIMAC
designations.
CTs cannot tolerate the same poor-quality heavy oil fuels. Although some CTs are reported
operating with heavy oil, checking reveals these oils are often crude oils blended with distillate
that have properties which hopefully meet the CT manufacturers specifications.
Since Bunker C fuel is typically the cheapest available fuel in many island and remote coastal
communities, their predominant power generation choice are medium- and low-speed diesel
engines. Similarly, heavy oil-fueled diesel engines typically are the choice for other remote
communities, remote industrial operations (e.g., mining), and many rapidly growing or rapidly
industrializing Third World regions. For example, China, India, and Latin America have a large
installed base of heavy oil-fueled utility and industrial electric power generating stations. Most of
these are multi-unit plants with total capacities in the 50-225 MW range. Unit sizes are typically
8 to 23 MW, although 3 to 8 MW engines are also popular. Barge-mounted diesel engine power
plants (as large as 200 MW) have become popular during the past five years for use in the
Caribbean region, Africa, South and Southeast Asia, and the Philippines.
Most of the foregoing regions and plants lack strict environmental regulations. They usually burn
high-sulfur fuel oil without any emissions controls. However, there is increasing pressure to
reduce emissions. Control options include water injection and selective catalytic reduction (SCR)
for NOx control, and exhaust gas scrubbing to capture SO2. SCR is used on many heavy oilburning ships when in North American, European, and Japanese coastal territories to meet the
local NOx regulations. During such times they burn low-sulfur fuel oil to avoid the need for
scrubbers.
2-45

Technical Issues and Development Trends

Competitive Pressures
The same drivers spurring the development of REs to todays high-performance machines will
continue to push RE developments further. Competition among RE manufacturers and packagers
for both regional and global power market shares, as well as competition from CT manufacturers
and packagers, drive engine R&D onward. Gas engine manufacturers are under heavy downward
pressure to price their engines (on a $/kW basis) competitively with CTs or other RE
manufacturers. Similarly, engine manufacturers are under pressures to reduce engine O&M costs
and NOx emissions levels to match CTs. Compared with CTs of comparable power output, above
about 1,000 kW REs become more massive.
Finally, REs have not enjoyed the high tech appeal CTs have enjoyed in recent years. Some
prospective customers perceive CTs as modern technology, while viewing REs as basic-tech.
Lingering negative perceptions are often difficult to change, even in the face of the high-tech
advances and excellent performance characteristics of todays state-of-the-art gas and diesel
engines. The added prospect of competition from microturbines and fuel cells adds further
pressure to RE technology.
Diesel engine manufacturers experience tremendous competitive pressures within and external to
their industry, particularly from the increasing use of CTs for ship propulsion and oil- and
naphtha-fired CT power plants abroad. In addition, there are increasingly strong environmental
pressures on diesel engine buildersparticularly manufacturers of car, truck, and locomotive
enginesto clean up NOx and particulate exhaust emissions.
Issues
The technical challenges faced by engine developers include the following issues,
considerations, and trade-offs.
Increasing engine BMEP or speed increases power output and power density. However,
increasing either parameter taxes the materials and strength of the engine, as well as affecting
friction and lubrication demands, wear, efficiency, ignition systems, cooling load, and emissions
control.
The room to grow to uprate an existing engine (in contrast with designing a new engine)
depends on how conservatively it was designed in the first place. Many if not most engines of a
particular bore and stroke are already optimized for a selected speed. While most engines are
designed to operate at different speedsas required by 50 Hz and 60 Hz power, marine,
mechanical drive, and vehicles marketsoperating them near their specified maximum speeds
on a continuous basis increases wear and maintenance. In some cases, this may increase the risk
of engine damage. An engines speed cannot be increased beyond a certain dynamic limit,
without requiring redesign.
2-46

Figure 2-23
Illustrative Gas Engine Operating Map
Raising the BMEP increases the peak temperature, unless offset by techniques to keep
temperature under controle.g., leaning-out the air-fuel mixture further (increasing the air/fuel
ratio), exhaust gas recirculation, and water injection. Hotter combustion generally means higher
efficiency and more complete combustion of the fuel. However, hotter combustion also means
higher NOx, reduced spark-plug life, potentially shorter life for other combustion chamber
components, and increased stress on lubricants.
As the air-fuel ratio and BMEP are increased in high-performance, very lean-burn gas engines,
the operating region between detonation and misfire is narrowed, so that precision control of
air/fuel ratio and ignition timing for each cylinder at the optimum control point is essential
(Figure 2-23). Gas engines operated in the upper pinch-zone between detonation and misfiring
where high efficiency and low emissions is possiblemay be at higher risk of damage or misfire
in the case of failure of a critical sensor, electronic control component, or shifts in fuel quality.
With current commercial technology, the highest efficiency and lowest NOx cannot be readily
achieved simultaneously. Therefore, major manufacturers of lean-burn, high-efficiency, low-NOx
gas engines offer different engine versionsa low-NOx version and a high-efficiency version.
The differences lie in tuning the controls and ignition timing. Achieving highest efficiency
operation results in conditions that produce about twice the NOx as the low-NOx engines; i.e.,
approximately 100 ppmv versus 50 ppmv (both corrected to 15% O2, dry). Achieving the lowest
NOx typically entails sacrifice of about 1 to 2 points of efficiencyand as much as 4 points in a
few cases. In addition, CO and unburned hydrocarbon emissions are higher when the engine is
controlled for minimum NOx.
2-47

The fact these high-performance engines can achieve NOx levels as low as 50 ppmv is
remarkable for internal combustion engines. It would appear that achieving lower raw exhaust
NOx levels in gas engines will be challenging without altering the cycle, the fuel mix and its
combustion/detonation characteristics, or using post-combustion emission controls.
Development Trends
The primary development targets of RE manufacturers, developers, and packagers continue to
encompass the following:
Higher power densities and significantly lower $/kW manufacturing costs and selling prices.
Lower O&M costsreducing engine wear and complexity, simplifying required service,
extending scheduled service internals, and minimizing operator/technician attention.
Longer engine lifetimessignificantly extending the time between minor and major
overhauls.
NOx emissions less than 10 ppmv (on a 15% O2, dry basisas for CTs), without sacrificing
fuel efficiency and (ideally) without a need for catalytic exhaust gas treatment.
Alternativelylow-cost exhaust gas treatment for the final control of NOx, CO, and
unburned hydrocarbons.
Higher efficiencies.
Higher reliabilities and availabilities.
New and improved alloys, ceramics, and composite materials for components (cylinder
sleeves, piston rings, valves, valve seats, thermal barrier coatings) to support the more
demanding engine performance.
Improved engine control systems (e.g., air/fuel ratio into each cylinder, fuel-injection timing
and rate-shaping, detonation sensors, programmable logic control of the engine for optimal
performance under all conditions).
Improved lubricants (in collaboration with various oil companies).
Ongoing R&D efforts continue to address these targets via many approaches. However, uprating
and optimizing designs and performance are challenging tasks because of the complex
interrelationships among combustion process variables, operating cycle parameters, engine
dynamics, and mechanical design.
Representative recent developments and current development activities in both gas engines and
diesel engines are discussed below.
High-Performance SI Engines
The large-bore, lean-burn, precombustion chamber SI engines of most manufacturers have
pushed to leaner combustion, higher BMEPs, and electric generating efficiencies in the 39-42%
range (depending on tuning for NOx output).
2-48

Advanced electronics and computers enable individual cylinder control that is essential to
operate gas engines in this manner. This precise control enables both smoother operation and
increased efficiencycompared with conventional control methods. Sensors now used to
augment precision control include detonation sensors andin some casespressure sensors for
individual cylinder BMEP monitoring.
Improving spark-plug materials and lifeparticularly for prechamber and high BMEP engines
continues to receive major attention. Some manufacturers have introduced noble metal spark
plugs, which are claimed to significantly extend spark-plug life (3,000 to 6,000 hours are now
claimed by some manufacturers). Nevertheless, achieving a spark-plug life of 2,000 hours with
high BMEP engines is still an accomplishment.
As high-performance engines accumulate operating hours, good mean times between major and
minor (top endvalves) overhauls are being demonstrated. Representative minor overhaul
intervals are 15,000 to 24,000 hours or more for 1,200 rpm SI engines and 36,000 hours for 900
rpm engines. Major overhaul intervals may be twice as long.
Ceramic-coated piston ringsrecently developed by MAN B&Whave reduced ring and liner
wear on large MAN B&W diesel engines to one-third previous levels. MAN B&W reports that
other engine manufacturers are now using this technology with positive results [15]. Recent work
supported by Caterpillar and GRI at the Southwest Research Institute (SwRI) showed ceramic
valve seats can significantly reduce seat wear and extend the time between top-end overhaul in
SI gas engines.
Other recent gas engines R&D at SwRI includes liquid-spark R&D, laser ignition, late-cycle
high-pressure direct gas-inject DF engines, and development of syngas-fueling of SI engines.
Syngas-fueling employs catalytic pretreatment of about 10% of the fuel gas (partial oxidation
and water gas shift) to produce a hydrogen-rich stream that is mixed with the main fuel to all
cylinders. This permits extremely lean combustion and reportedly reduces NOx formation to
about 0.2 g/kWh (15 ppmv at 15% O2, dry). The hydrogen increases flame speed and extends
the lean limit of a lean-burn engine or increases the flame speed in an engine where excess
oxygen is replaced by recirculated exhaust gas [16].
Caterpillar, with support from GRI, is developing a higher-speed (1,800 rpm) version of its 1,200
rpm G3500 Series of lean-burn SI engines. However, since this engine operates at 1,500 rpm in
50 Hz applications, stepping it up to 1,800 rpm is actually just a 20% increase in its speed
capability. The output of the standard 820 kW V16 model in this series should be raised to 1.3
MW by the combined effects of speed increase and other refinements. It is supposed to have an
efficiency of at least 37.5% (LHV) and NOx emissions of 0.7 g/kWh (approximately 50 ppmv at
15% O2, dry). The specific cost ($/kW) and maintenance costs are projected to be 30% less than
existing products. The new engine should be available in 2000 [1].
According to an unofficial report, Caterpillar is also in the process of uprating its 1.1-3.0 MW
G3600 Series of lean-burn prechamber SI engines. Waukesha has already uprated its 900 rpm
and 1,200 rpm SI engines, covering the 500 kW to 2.8 MW power range.
Adding cylinders to a proven engine is one way of increasing power output. Typically this is
done when per cylinder output is uprated by increasing BMEP and other improvements. Recent
2-49

examples include: Jenbacher adding a 2.7 MW V20 engine to its largest SI engine line (the 1,500
rpm 600 Series) and Waukesha adding a 2.9-3.3 MW V16 engine to its largest SI engine series
(the 900-1,000 rpm AT27GL Series).
Also, Wrtsil NSD is designing a 7 MW 20-cylinder version of its largest SI engine series (the
720 rpm 34SG Series). This will be the worlds largest SI engine. Wrtsil claims this design has
the potential for 9 MW output. Prototype tests were scheduled to begin in October 1999, and a
pilot installation is scheduled to Spring of 2000. In another pilot installation, a Wrstil
18V34SG engine has been running at 6.0 MW (uprated from 5.5 MW) since late 1998. This
uprated engine should soon be released commercially [17]. Meanwhile, ten 4 MW Wrstil
18V28SG engines are being installed in a natural gas liquids processing plant in Mobile,
Alabama. This will be one of the largest gas engine plants in the U.S.
New high-performance, lean-burn SI engines and diesel engines from the Cummins-Wrtsil
joint venture (formed in 1995 and since strengthened) began appearing commercially a couple of
years ago. Sizes range from 330 kW to 2,800 kW. (A recent announcement indicates this joint
venture is in the process of being dissolved.)
Cooper Energy Services is collaborating with GMs Electro-Motive Division (EMD) to gasify
EMDs recently introduced H diesel engine as a low-emissions lean-burn, prechamber SI engine.
Called the HG-300, its conservative introductory rating is 5,000 hp (3,730 kW) at 1,000 rpm and
190 psi BMEP (12.9 atm). Cooper may later uprate the engine to 1,200 rpm and 250 psi BMEP
(17 atm). The engine will be designed and assembled by Cooper, under the Superior brand name.
Autoderivative Engines
A autoderivative engines of 50-60 kWattractive because of their low first costcontinue to
find applications in stationary power generation. Although many in the RE field have a dim view
of autoderivative engine durability in continuous stationary power applications, successful
examples can be found. Keys to success are conservatively rating and properly maintaining the
engines. One example is the increasing number of cogeneration systems on the East Coast and in
California based on the 55-60 kW Ford V8 enginesupplied in cogeneration packages by Coast
Intelligen, a California packager. Another is hundreds of gensets based on the 50-60 kW GM V8
engine supplied by CNG Engines, a Texas packager, for unattended electrically driven
agricultural pumping applications. CNG has also packaged hundreds as direct drives with rotary
gas compressors for large independents and major oil and gas companies with production in
fields of the Gulf Coast, Permian Basin, and Rocky Mountains [18]. These packagers reportedly
are achieving 3 to 5 year engine life. CNG performs a top-end overhaul (valves) at 20,000 hours.
The engines can easily be outfitted with a 3-way catalytic converter for emissions control, if
required.
Unfortunately, Ford stopped production of the above V8 engine 2 to 3 years ago, and the
inventory backlog will soon run out. Consequently, packagers are looking for alternative
engines. While Ford will release an industrial version of the successful V10 truck engine by
2000, it expects the new engine will be more expensive to purchase and maintain.
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Coast Intelligen, F.G. Wilson (Caterpillars Ireland-based packaging subsidiary), and probably
others, have developed low-cost microelectronic control systems using embedded basic
paralleling switchgear and protective relay functions for utility interconnections. In principle,
these systems are similar to those microturbine developers have embedded in the power
electronicsand are claiming contain all of the switchgear and protective equipment needed for
utility interconnections. Significant application of low-cost interconnections in the U.S. probably
awaits the development, publication, and acceptance of the forthcoming IEEE standards on
utility interconnections for distributed generation technologies. A large IEEE working group is
dedicated to completing this task. Publication of the standards is anticipated within 1 to 2 years.
The Miller Cycle
This cycle, patented by Ralph Miller in the 1940s, is a modification of the Otto cycle. It
continues to attract some attention. In fact, Mazda has been using a 210 hp/157 kW (@3,500
rpm) V6 Miller cycle engine in some of its automobiles for about 3 years. The engine, with
higher power output and efficiency than its conventional predecessor, has received favorable
reviews. Also in Japan, Tokyo Gas Co. and Yanmar Diesel are investigating the Miller cycle for
stationary power and cogeneration applications with 300 kW-class SI engines. Tokyo Gas
reports the Miller cycle efficiency of stoichiometric engines with 3-way catalysts can be
improved to the levels lean-burn engines. Tokyo Gas also has applied the Miller cycle to a leanburn prechamber engine, raising its efficiency from 37% to 39%. Apparently SwRI is also
investigating the Miller cycle. Undoubtedly other engine manufacturers are evaluating the Miller
cycle.
In the Miller cycle, intake valves are closed earlier or later than in conventional engines. The
objective is to increase the expansion ratio and efficiency. At the same time, reducing the
compression ratio reduces the tendency to knock. Tokyo Gas modification of a 324 kW SI
engine to the Miller cycle involved: changing the intake cam profile to reduce the compression
ratio, changing the piston chamber geometry to increase the expansion ratio, and changing the
turbocharger to increase the boost pressure [19, 20].
DF Engines
Dual-fuel engine development efforts have intensified in the U.S. and Europe during the past
several years. Fairbanks Morse assisted MAN B&W in adapting their micropilot prechamber
technology to selected MAN diesel engines. The DF engine range from 400 kW to 15.7 MW.
Fairbanks Morse is selling the mid-range DF engines in the U.S. to augment its own DF engine
line. Wrtsil NSD also recently introduced a family of micropilot prechamber DF engines
between 1.4 and 6.3 MW. Apparently full commercial release of these engines depends on
successful completion of testing of the first two commercial units (installed in Turkey).
Caterpillar has acknowledged conducting DF engine R&D, including the possibility of DF
versions of the medium-speed diesel engines from its German subsidiary, MaK. However,
Caterpillar has not made any DF product announcements. Undoubtedly, other European
manufacturers also are developing micropilot prechamber DF engines.
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The high-tech DF retrofit technology developed by BKM/Clean Air Partners (CAP) and licensed
by Caterpillar is now operating on an increasingly number of large CNG-fueled trucks with
converted Caterpillar diesel engines. CAP also demonstrated a 2% micropilot injector (without a
prechamber) on a stationary engine and is proceeding to demonstration a 1% micropilot injector.
GRI has been working with BKM/CAP for some time on these developments. The 1%
micropilot should be available for use with essentially any existing diesel engine within 1-2
years. It is not limited to Caterpillar stationary engines either technically or by CAPs license
with Caterpillar.
Cooper Energy Services, with GRI support, is developing a new line of high-output micropilot
prechamber DF engines with power ratings from 1.1 to 3.3 MW. These would be DF
counterparts of the Superior 2400 Series of 1,200 rpm lean-burn prechamber SI engines. Two
BMEP levels are targeted240 psig/16.3 atm in continuous duty and 270 psig/18.4 atm in
peaking/standby service. Shaft efficiency is projected at 38 to 41% (LHV), which corresponds to
36.5 to 39.8% electrical efficiency with a 96-97% efficiency electric generator. NOx is projected
at less than 1 g/kWh (100 ppmv at 15% O2, dry) [1].
RODI Power Systems is developing a DF version of its new 310 kW truck diesel engine. The
engine will operate on 90 to 95% natural gas at full load. TVA, which is partially supporting its
development, intends to deploy hundreds of the new engine gensets in distributed generation
applications.
Both basic-tech and high-tech diesel-to-DF conversion kits have been recently developed or are
under development by a number of other independent developers. GRI has been working with
one of them, VESi. Those that are still under development should be ready commercially by
2001.
The Advanced Reciprocating Engine Systems (ARES) Program
Efforts are underway to evaluate the potential for a major national development effort on
stationary gas engines. ARESa new R&D consortium formed in October 1998is evaluating
strategies to develop next-generation gas engines (products beyond 2005) with a targeted 45 to
50% electrical efficiency and NOx emissions as low as 5 ppmv (@5% O2, dry). The NOx target,
which is one-tenth of the lowest NOx now achievable with large lean-burn prechamber SI
engines, allows for the use of exhaust gas treatment for the final reduction of NOx. As noted
earlier, the highest electric generating efficiency now claimed for SI engines is 42% (LHV). The
ARES program will be investigating alternative ignition techniques (including micropilot DF),
lean combustion limits, mitigating knock with water injection, combustion chamber
configurations, increased BMEP, friction, heat losses, modeling/simulation, and exhaust gas
aftertreatment.
Most of the major U.S. engine manufacturers, some component suppliers, GRI, and Southern
California Gas are partners with U.S. DOE in this effort. The program is being hosted at SwRI.
ARES is intended to become the RE counterpart of DOEs Advanced Turbine Systems Program.
Initially, ARES is a 5-year program.
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Diesel Engines
The primary focus of diesel engine R&D appears to be emissions reductionmainly NOx and
particulates. All of the major manufacturers of diesel engines for stationary power, industrial,
locomotive, marine, on-the-road, and off-road applications in the U.S., Europe, and Japan have
been conducting R&D on a variety of emissions control techniques with increasing intensity
during the past decadeespecially the past five years. Of course, efficiency, power output, cost
reductions, and component improvements also continue to receive attention. Obviously many
technology advances, particularly in materials, mechanical components, and electronic controls,
are shared by diesel engines and gas engines. Both combustion control and post-combustion
control of emissions are being developed further.
The common-rail injection system is becoming more widely adapted by manufacturers of all
sizes of enginesfor the superior control, precision, and flexibility that it allows. In conjunction,
the further development and refinement of high-pressure fuel nozzles continues, as well as basic
R&D on the diesel ignition and combustion processes, combustion chamber optimization, and
the intake and exhaust processes.
SwRI and others are developing an innovative CI engine system, called homogeneous charge
compression ignition (HCCI). HCCI may reduce the engine-out NOx emissions substantially. In
HCCI, the air and fuel are mixed so that each atomized droplet of fuel is surrounded by more
than twice the amount of air necessary for combustion. As the mixture is compressed in the
cylinder, the air temperature rises and triggers autoignition of the droplets [21]. It appears this
technique can closely approximate homogeneous lean-premixed combustion.
Water-injection (direct or via oil-water emulsions) for NOx reduction is rapidly being adapted to
commercial diesel engines of many sizes at sea and on land. Water injection can reduce NOx by
about 50%, and also reduce or eliminate smoke formation, without detrimental effect on fuel
efficiency. Exhaust gas recirculation (EGR) is also being investigated widely for NOx reduction
and is expected to come into much more widespread use in the near future. Both water-injection
and EGR have been well known for many years, but not needed with diesel engines until recent
years.
Advancements that may be made in truck diesel engine emissions control over the next three
years should be translatable to larger enginesand vice versa. Truck diesel engine emissions
improvement programs are now on a fast-track schedule. The pressure on seven major diesel
truck engine manufacturers was exacerbated by their October 1998 settlement with the U.S.
Department of Justice and the U.S. EPA over charges that they cheated on on-highway emissions
controls. According to the EPA, the manufacturers employed defeat devicesonboard
computer algorithms that improved fuel economy but increased NOx emissions during highway
driving. The EPA calls the $1 billion settlement the largest Clean Air Act enforcement in
history. As part of the settlement, by October 1, 2002 the manufacturers are to reduce emissions
by 80% compared with current levels. In addition, they will spend an additional $110 million on
environmental projects, such as the development of emission control technologies.
Another notable development is the compact, high-output ADD diesel engine developed recently
in Japan and described earlier. This engine would make an interesting DF engine if ADD should
elect to pursue DF development.
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In Finland, Wrtsil NSD has been developing a technology called hot combustion for higher
efficiency. Hot combustion involves improved combustion chamber design (including new hightemperature alloys and coatings) to reduce the low-temperature cooling losses from the engine.
This is projected to raise the engines exhaust temperature and increase engine efficiency by up
to two points. Wrtsils objective is both improved engine and combined-cycle efficiency. The
concept is being demonstrated on a 10 MW medium-speed diesel engine in Finland. If successful
and economical for REs in the 1-10 MW size range, the technology should be transferable to
some SI and DF engines within a few years.
Post-combustion diesel engine emissions control R&D includes ongoing efforts to improve
commercial catalytic process for NOx reduction (SCR) and oxidation of CO, volatile organic
compounds, and heavier organic compounds. Considerable effort has also gone into the
development of particle filterssome in combination with oxidation catalysts. The search is also
on for a 3-way catalyst for diesel engines that contain excess exhaust oxygen. A relatively new
combined absorption-catalytic process, called SCONOx, has been shown to produce very low
NOx emissions with natural gas-fired CTs. This technology is being adapted (developed further)
to diesel engine NOx control.
Outlook
The outlook for continued improvement and advancement of both gas engines and diesel engines
is very favorable. With the anticipated advanced techniques, materials, and technologies
further improvements in power densities, efficiencies, emissions, durability, and reliability can
be expected. Major risk issues are related to environmental regulations and their potential to add
significant costs to stationary RE applications.
Market Applications and RE Systems

REs, like CTs, are used in a range of power generation applications. RE systems can be
categorized as simple-cycle, cogeneration, and/or combined-cycle systems. Applications such as
standby/emergency power, peaking, peakshaving, peaksharing, and cycling (intermediate) load
service typically are simple-cycle systems; i.e., comprised of the basic genset, controls, and
utility grid interconnection (if required). Simple-cycle baseload RE power plants are common
outside of the United Statesmainly oil-fired diesel engines. In Europe and the U.S., utilityowned baseload and cycling DF RE power plants are common.
Cogeneration is best suited for situations in which a substantial thermal load and electric power
demand operate at high annual capacity factor. The electricity demand can be internal or
external. If the annual load factor is high and the prices for sale of the thermal and electric power
outputs are attractive, cogeneration should result in energy savings and cost benefits. If as much
electricity can be sold as made, then high efficiency electric generating technology (high powerto-thermal output ratio) may offer advantages.
The form (hot exhaust gas, hot water, steam, organic heat transfer fluid), flow rates, and
temperature levels of the thermal streams required by the host determine whether REs can be
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considered. Only about half of the waste heat of a RE exits as hot exhaust gas suitable for steam
generation. For practical economic reasons, steam pressure is limited to approximately 150 psig.
Combined-cycle RE systems; i.e., those with additional power generation by a steam turbine, are
relatively uncommon, although they are feasible.
A sampling of selected RE power and cogeneration installations is presented in Table 2-10.
These types of applications are discussed further in the remaining portion of this section. Most SI
engine power generation applications since the 1970s are cogeneration systems. A large number
of SI engines also are in service as compressor drives on gas pipelines. Many dual-fuel engine
power plants exist in the United States and Europe; however, their primary application since the
1970s appears to be cogeneration. Most simple-cycle CI engine power plants worldwide are
100% oil-fueled; i.e., standard diesel engine plants. While there are some diesel engine
cogeneration plants in Europe (and elsewhere), the cost of oil and the tightening of Western
European emissions regulations has discouraged diesel cogeneration there.
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Total plant
output, MW
Unit Rating,
kW
No. of units
Application/Plant
Manufacturer &
Type of Engine
Table 2-10
Representative RE Power and Cogeneration Installations
Start-up date &

Comments
Peaksharing (Interruptible Power)

Heavy machinery manufacturing plant
Cummins,
diesel
1,250
5.0
Early 1990s. Contract permits the utility,

NSP, to call the plant to go off the grid only 80
hours per year.
Cummins,
diesel
N.A.
N.A.
4.0
Early 1990s. NSP is the utility.
Cummins,
diesel
1,250
9.85
1,100
Mid-1990s. Cummins is a co-owner of CDC.

Contract allows North Carolina Power & Light
to call on CDC to reduce load for up to 12
hours a maximum of 32 days each year.
18
1,600
28.8
Janesville, Wisconsin
Caterpillar,
diesel
(mobile
rental units)
1997. Rented to cover critical summer peak

season. Wisconsin Power & Light would give
1 hour notice before power shutoff.
Acordis Industrial Fibers Inc. (extrusion

of resins to make fibers)
Caterpillar,
diesel
2,000
10.0
Mid-90s. Interruptible power agreement with

TVA. Acordis also uses REs for peak-shaving.
Caterpillar,
diesel
2,000
7.4 (total)
925
Two 2,000 kW units added in the mid-1990s.

Other units were installed earlier. Interruptible
power agreement with Alabama Power
Eagan, Minnesota
Northwest Airlines facility
Minneapolis area, Minnesota
Consolidated Diesel Co. (CDC) (engine
manufacturing)
Whitakers, North Carolina
GM truck plant
Scotsboro, Alabama
Mobile Infirmary Medical Center
Mobile, Alabama
Litho Productions
(full-service lithography)
650
Caterpillar,
diesel (rental
module)
400
0.4
1996. Interruptible agreement with Madison

Gas & Electric. Typically operates 32 hours
per year. Plants power quality is also assured
by an uninterruptible power supply.
Caterpillar,
SI
20
800
16.0
1993. Maximum dispatched run time is

approximately 100 hours per year.
Cummins,
diesel with
aftermarket
DF
conversion
1,000
1.0
1998. Existing standby unit, repermitted for

peaking/peak-shaving during summer and
retrofitted with OCLIs DF conversion kit for
60-80% natural gas fueling. Operation not
expected to exceed 250 hours per year.
Cummins,
diesel
(mobile
rental units)
48
1,250
60
1998. Summer peaking, 6-8 hours per day.

Units packaged and rented by Aggreko. 24
units at each of two substations.
Caterpillar,
diesel
(mobile
rental units)
50
1,600
80
1998. Summer peak. Rental units supplied by

Caterpillar dealers.
Madison, Wisconsin
Temple University
Philadelphia, Pennsylvania
Industrial Peakshaving
AFG Industries (glass manufacturing)
Victorville, California
Peaking
Commonwealth Edison (substations)
Chicago, Illinois
Commonwealth Edison (substations)

Chicago, Illinois
2-56
Madison Gas & Electric (substations)

Madison, Wisconsin
Southern Electric
Southhampton, England
Retirement home
Undisclosed, Maryland
Rauschen Municipal Water Works

Rauschen (Heidelberg), Germany
Total plant
output, MW
Unit Rating,
kW
No. of units
Application/Plant
Manufacturer &
Type of Engine
Start-up date &

Comments
Cummins,
diesel
(mobile
rental units)
27
1,250
33.8
1997. Summer peak. Units packaged and

rented by Aggreko. 9 units at each of three
substations.
Wrtsil
NSD, diesel
2,300
11.5
Mid-1990s. Plant may be run up to 1,000

hours per year with 300 starts.
Undisclosed,
diesel
750
1.5
Late 1990s. Existing standby diesel gensets at

retirement home retrofitted with controls and
enclosure upgrade to permit dispatch for
peaking by Southern Maryland Electric
Cooperative. Backup for home has priority.
MTU, diesel
735
0.7
1997. Standby unitalso provides peaking

support to Heidelberg grid. First commercial
application of MTUs diesel fuel/water
emulsion injection system for NOx reduction
to levels <200ppmv @ 15%O2, dry
Independent Power and Municipal Utility Peaking/Peak-Shaving, Cycling & Baseload

Trans Alta Enterprises (an IPP)
Calgary, Alberta, Canada
Oberlin Power and Light

Oberlin, Ohio
Ingenco (an IPP)
Undisclosed site, Virginia
City of Pratt Municipal Power

Pratt, Kansas
City of Russell
Russell, Kansas
City of Lakin
Lakin, Kansas
Waukesha,
SI
10
1,100
11.0
Early 1990s. Prime power for gas compression

(putting gas into the pipeline). Multiple units
ensure 98-99% availability, permit operating
with no grid backup. Skid-mounted, can be
trucked to another field after gas well is dry.
Waukesha,
SI
2,000
2.0
Early 1990s. Provides power for critical water

pump load for the city.
Detroit
Diesel, diesel
16
260
4.2
(nominal)
3.1 operated
at one time
1996. Baseload, diesel-fueled power

generation and sale to grid; !2 units operate,
while 4 are on standby. Water-injection used
for NO x reduction and 2 engines reportedly
have been converted to DF operation (80%
natural gas). SCR is not required.
Fairbanks
Morse,
micropilot
DF
7,780
7.78
1993. First Fairbanks Morse micropilot DF

engine sold, 1% pilot fuel
Nordberg,
DF (rebuilt)
3,650
7.3
1990. Although the respected Nordberg engine

line is no longer manufactured, refurbished
Nordberg engines remain in use.
Nordberg,
DF
5,000
5.0
1990
CooperBessemer
DF (rebuilt)
2,500
6.0
1989
3,500
Fairbanks
Morse,
micropilot
DF
4,500
4.5
1999. Built by FM under license from MAN

B&W
Wrtsil
NSD, SI
5,240
5.2
1999. Planned to operate 600 hours per year

as a peaker/peak-shaver and back-up to the
citys baseload supplier
(rebuilt)
City of Rochelle
Rochelle, Illinois
City of Sabetha Municipal Utility
Sabetha, Kansas
City of Iola
Iola, Kansas
2-57
Pebbly Beach Generating Station Catalina

Island, California
EMD/GM,
diesel (No.2
fuel oil)
2,800
North Carolina Electric Membership

Corp. (2 plants), Ocracoke Island, and
Cape Hatteras, North Carolina
EMD/GM,
diesel (No. 2
fuel oil)
1 (Ocracoke)
5 (Cape
Hatteras)
Total plant
output, MW
Unit Rating,
kW
No. of units
Application/Plant
Manufacturer &
Type of Engine
Start-up date &

Comments
2.8
1996. Replaced a 1940s vintage EMD unit

rated at 1,000kW. The plant is owned &
operated by Southern California Edison.
2,890
2.9
2,890
14.5
1990 @ Ocracoke Island and 1991 @ Cape

Hatteras. The units supply peaking and
backup to power from the mainland.
Cogeneration for District Heating (Municipal, Institutional, & Commercial)

Upper Marlboro County Correctional
Institution
Waukesha,
SI
750
2.2
1987. Landfill gas-fueled. Provides electricity

and heat to correctional facility. Four
additional Waukesha engines drive gas
compressors that draw and compress the gas
from the landfill.
Denver International Airport
Waukesha,
SI
2,100
6.3
1996. Drives for 12,000ton chillers for airport

air conditioning.
CooperBessemer
DF
6,000
12.0
1993. Micropilot DF engines, 1-2% pilot fuel.

Supplies campus with electricity and thermal
energy for heating and cooling.
Wrtsil
NSD, SI
4,050
8.1
1999. Expansion of the 12 MW campus

cogeneration facility.
MAN B&W,
DF
1,550
4.66
1995. Equipped with SCR/oxidation catalyst

system.
Wrtsil
NSD, SI
2,500
5.0
1995. CDH District Heating is a subsidiary of

Cornwall Electric. First Wartsila lean-burn
units in North America.
2,950
20.6
1996. Plans to expanded plant later to

48.8MW, which would be the largest gas
engine cogeneration plant in Europe.
Denver, Colorado
University of Illinois
Chicago, Illinois
University of Illinois
Chicago, Illinois
Town of Grimma
Grimma, Germany
CDH District Heating (municipal district
heating)
Cornwall, Ontario, Canada
Bronderslev district heating plant (town of Ulstein

Bergen, SI
18,000 households) Bronderslev,
Denmark
Cogeneration for District Heating (Municipal, Institutional, & Commercial) (continued)

Family building complex
30 km outside Moscow, Russia
Paxton Creek Cogeneration Assoc.
(municipal district heating)
Harrisburg, Pennsylvania
Indiana University of Pennsylvania
Indiana, Pennsylvania
San Francisco State University

San Francisco, California
Wrtsil
NSD, SI
1,000
3.0
1996. Electricity and heat for 60 family

houses, 400 sq meters each
CooperBessemer
DF
6,300
12.6
1986. A PURPA facility. May now be

converted to micropilot to satisfy stricter
emissions regulations.
CooperBessemer
DF
6,060
12.2
1986. A PURP facility. Converted to

micropilot DF in mid-1990s. Variable output
since utility bought out their power purchase
contract.
Waukesha,
SI+TWC
725
1.98
1985 (Waukesha) and 1999 (Fairbanks Morse)
1,250
1,400
5.6
1994. Provides electricity, steam, and hot

water for campusincluding driving an
absorption chiller.
FM,
micropilot
DF
Wellesley College
Wellesley, Massachusetts
2-58
Jenbacher, SI
Valley Medical center
Total plant
output, MW
Unit Rating,
kW
No. of units
Application/Plant
Manufacturer &
Type of Engine
Amityville, New York

Crozer-Chester Medical Center
Chester, Pennsylvania
900
3.6
1997. Supplies steam, building heat, and

domestic hot water to the hospital. One unit
kept in reserve as a standby.
CooperBessemer
DF
670
1.34
1989.
CooperBessemer
DF
1,150
2.3
1988
700
Cogen: 60,
72
Cogen: ~45
Numerous North American commercial

and institutional cogeneration
installationsplus some industrial. Some
abroad
Tecogen, SI
Lunardis Supermarket
Chillers:
San Diego, California

Phoenician Resort (American
Intercontinental Corp.)
Since mid-1980s. Packaged cogen systems

based mainly on 60kW and 72kW
autoderivative (GM) engines. Chillers based
on same engines plus larger Caterpillar
engines.
300
enginedriven
chillers
>25,000hp
Ford, SI
60
120
1998. Electric power to run freezers. Hot water

is exported to large, multi-building retirement
community next door. Coast Intelligens
cogeneration packages, installation,
ownership, operation, and service.
Caterpillar,
SI
800
0.8
1987. Electric power, heating, and chilling.

Heat recovery system drives absorption chiller
for air conditioning.
Caterpillar,
SI
350
1.65
650
1988. Plant installed with construction of the

new resort, for electricity, heating & air
conditioning.
Mitsubishi,
diesel with
aftermarket
DF
conversion
Several
600-1,200
n.a.
1995-1998. Existing and new engines

retrofitted with OCLIs DF conversion kit for
operation at 80% natural gas.
CumminsWrtsil, SI
1,250
1.2
1999. One of the largest aggregate (gravel,

concrete, etc.) operations in New York City.
Uses thermal energy from RE exhaust in the
aggregate drying process.
Wrtsil
NSD, SI
10
4,050
40.5
1999. Provides the power and process heat for

natural gas liquids processing plantowned
by Duke Energy Corp. & MCN Energy Group
Caterpillar,
SI
650
4.87
810
1988. But idled on standby basis, since utility

offered them cheap electricity in 1991
Wrtsil
NSD, highpressure gasinjected DF
5,600
18.0(gross)
CooperBessemer
DF
4,850
4.85
Los Gatos, California
Intercontinental Hotel
Comments
Jenbacher, SI
Renton, Washington
South Oaks Hospital
Start-up date &
Scottsdale, Arizona
Industrial Cogeneration
Electroplating companies (several)
Brooklyn, New York
Van Bro Corp.

New York, New York
Mobil Bay Energy

Near Mobile, Alabama
Ingersoll Milling Machine Co.
Rockford, Illinois
Cogentrix of Pennsylvania
Ringgold Township, Pennsylvania
Specialty Minerals
Adams, Massachusetts
1990. A PURPA facility. Combined cycle

plant with 1,200 kW steam turbine
1989. A PURPA facility. First U.S diesel with

SCR. Runs in both DF and diesel modes.
2-59
3M R&D Center
Austin, Texas
Colorifico Ceramico Bonet

Castellon, Spain
Beximco Textiles Ltd.
Near Dhaka, Bangla Desh
Wight Salads (the largest independent
tomato grower in the U.K.)
Total plant
output, MW
Unit Rating,
kW
No. of units
Application/Plant
Manufacturer &
Type of Engine
Start-up date &

Comments
CooperBessemer
DF
6,000
12.0
1986. Retrofitted in 1987 with Coopers

micropilot prechambersfirst commercial
application of technology. Steam that is
generated drives a small CT-generator when
steam not needed for building heat, hot water.
Wrtsil
NSD, SI
1,000
1.0
1996. Electricity for oxygen production in

enamel manufacturing, and exhaust gases for
drying enamel
Wrtsil
NSD, SI
1,000
7.0
1995
Jenbacher, SI
18
2,000
36.0
1999-2000. The 18 engines will supply

electricity, heat, and CO2 to six large nursery
sites. After RE exhaust gas NOx reduction with
SCR and CO oxidation to trace levels with
oxidation catalyst, the CO2 -rich exhaust gas is
cooled and fed to the greenhouses to enrich the
CO2 content of the air.
Isle of Wight, U.K.
Utility and Independent Power Cycling and Baseload Power Abroad (with heavy oil-fuel)
Wrtsil Diesel Development Corp.
Wrtsil
NSD, diesel,
heavy oil
9,000
72
1996. Single power barge. Wrtsil Diesel

Development Corp. is an IPP
New Sulzer
Diesel
(Wrtsil),
diesel, heavy
oil
45,000
90
1996. Two units at each island site
45,000
90
Far East Levingston Shipbuildg Ltd

Luzon, Philippines
Caterpillar,
diesel, heavy
oil
13
3,440
44.7
13
3,440
44.7
Unspecified, numerous sites
New Sulzer
Diesel,
diesel, heavy
oil
>160
10,000
>1,600
Since early 1980s. Supplied by NSD before

the merger with Wrtsil Diesel to form
Wrtsil NSD
MAN B&W,
diesel, heavy
oil
>1,500
10,000
>1,500
Since the early 1980s
Wrtsil
Diesel,
diesel, heavy
oil
n.a.
5,000-10,000
>500
Since 1990. Supplied by Wrtsil Diesel

before the merger that created Wrtsil NSD.
Pielstick,
diesel, heavy
oil
20,000
100
1996
Old Harbour, Jamaica

Electricite de France
Martinique and Guadalupe
China (primarily southeast coastal

provinces)
provinces)
provinces)
Kerala State Electricity Board
Brahmapuram, Kerala, India
2-60
1994. Two barge-mounted plants

Distributed Generation (DG)

A broad definition of DG is any power generation plant not located at a traditional central power
station. The example RE installations represent many varieties of existing DG installationsas
well as future possibilities for DG as on-site power/cogeneration and dispersed utility power.
Even many of the large multi-unit diesel engine power plants abroad can be viewed as DG
plants, because they fill local needs where either the grid or the central power generating
capacity has not developed as fast and/or reliably as needed.
Basic GensetsSimple Cycle

In the RE simple cycle, none of the engines exhaust gas heat is recovered. Jacket water, lube oil,
and turbocharger cooling are accomplished via a radiator and/or cooling tower which reject the
heat to the environment. Since aftercoolers typically require a cooling water temperature of 90F
(32C), an alternative means of cooling is required if cooling water cannot be made available at
this temperature.
Standby/Emergency Power
The standby genset is typically the simplest system, being used to provide power only when the
primary source is out of service or falters in its voltage or frequency. Installation requires a
cement or concrete pad, possibly an enclosure or building, controls and transfer switch
appropriate to the application. Multiple standby gensets may be used, depending on the size and
priorities assigned to the loads that are backed up. Standby applications range from a few kW to
very large capacities in some industrial situations. Individual generator sets as large as about 910 MW can be found in some large back-up situations; e.g., nuclear power plants. Standby units
typically run for a brief time on a regular basis (e.g., once per month) to ensure their readiness.
One of the most common causes of standby genset failure to start is batteries that are discharged
or dead because of neglect.
Peaking, Peakshaving, Peaksharing
While some regard these terms as synonymous, there are distinctions. Peaking is usually
regarded as utility company operation of units to produce additional grid power during peak
periods. This is often less than 200-300 hours per year. On-site power generation to replace highpriced, utility-supplied power (and avoid high demand charges) is called peakshaving. The
peakshaving customer typically operates his own on-site gensets to save moneya unilateral
action by the customer. Peaksharingalso called interruptible powerinvolves a cooperative
agreement whereby the utility can curtail a customers power use during peak-demand periods to
facilitate demand-side management. The customer may operate on-site standby power generation
equipment during those periods.
Peaking. Numerous examples of utility-owned/operated peaking RE units and plants can be

found in the U.S. and abroad. The most numerous examples in the U.S. appear to be at
municipal utilities and electric cooperatives. With expansion consciousness of distributed
generation (DG) has come a broad recognition that the many installed standby generator sets
2-61

at many sites (excluding hospitals and others with special priorities and concerns) represent a
potentially valuable peaking power resource. From an electric utility perspective, this is a
source of hidden reserve capacity. Examples can already be found in which owners of
standby equipment allow utilities or others to modify their equipment for dispatch during
peak periods. In these cases, the hosts power requirements may still take priority in an
emergency.
Peakshaving. These units typically operate daily during the normal peak demand hours
typically from about 8 or 9 a.m. until 9 or 10 p.m.and thus run at a substantial capacity
factor. Consequently, a peak shaving plant in the United States, Europe, or Japan probably
would be required to meet the same emissions limit as a baseloaded plant. Utilities
traditionally have been resistant to customer-operated, peakshaving units. Numerous
peakshaving plants have been installed in the United States, although some are shut down
and converted to standby status as a result of rate reductions or power sales contract buyouts
by the utilities. However, expansion of consciousness about DG optionsas the utility
industry undergoes deregulationcasts peakshaving in a more favorable light.
PeaksharingInterruptible Power. The utility offers peaksharing customers lower power

rates, if they will agree to power cutbacks during peak periods. In return for the reduced
rates, the customer may install an on-site power plant that is operated on dispatch by the
utility only as a peaking power plant to meet the customers needs. Savings from the reduced
rate enable the customer to pay for the plant in a reasonable time frame (usually three to five
years). The utility benefits by gaining control over a portion of its peak demand and by not
having to invest in the permitting, design, and construction of new peaking capacity.
The agreement with the utility usually calls for peaking operation for just a small fraction of
the year100 to 500 hours. Therefore, in many air pollution control districts, the plant
should be able to obtain permits under emergency standby plant regulations and to burn oil
rather than natural gas. This enables purchase of diesel engines, rather than more expensive
SI engines. Peaksharing plants also function as standby power generators. In some cases the
owners also operate the units as peakshavers.
A number of U.S. utility companies were pursuing peaksharing arrangements with selected
customers for at least a few years in the mid-1990s. Engine manufacturers, such as
Caterpillar and Cummins, and their distributors promoted the peaksharing/interruptible
power concept by working closely with interested utilities to identify and sell the idea to
peaksharing candidates. However, uncertainties about the outcome of utility industry
deregulation and restructuring in the United States appears to have diminished peaksharing
opportunities, if only temporarily.
Intermediate Load (Cycling)

Typically, 2,000-5,000 hours of operation per year is considered intermediate service. Usually
the load is cycling between off and full-load or part load, running for hours or days during each
operating cycle. REs are well suited for this service. They start-up quickly, respond to load
changes quickly, and feature good part-load heat rates down to about 50% of full load.
Generally, RE plant designers, operators, and owners tend to favor multiple units for higher
availability. However, redundancy usually increases capital cost. In addition, there are trade-offs
2-62

to be considered at reduced-load operation between operating all of the units at reduced load
versus keeping some units running at full load thereby at lower heat rates.
The best examples of REs in this type of service are the many DF and diesel engines owned and
operated by U.S. municipal utilities and rural electric cooperatives. Of course some of these
units, particularly the older ones, are also used as peaking units. While some of the diesel engine
power plants abroad also operate intermittently, it appears thatwhere they are the primary
source of powerthey are operated continuously, albeit with some cycling. Institutional and
commercial RE cogeneration plants also generally operate at the intermediate service level.
Seasonal variations force municipal district energy plants to cycle, at least in regard to their
export of thermal energy. Those with summer requirements for thermally driven chillers may be
in the more favorable position of being able to cogenerate almost year-round at a reasonably high
annual capacity factor.
Continuous and Baseload
Many industrial cogeneration/self-generation plants and many of the large utility RE power
plants abroad operate continuously at high annual capacity factors. The latter plants usually are
straight power plants; i.e. no cogeneration. Many operate baseload year-round, except for
scheduled maintenance shutdowns and surprises. Again, redundancy in the number of units may
be used to ensure high availability.
Mechanical Drives
Although not producing electric power, mechanical drives represent a form of DG. REs are used
extensively as direct mechanical drives in a wide range of applications, including water pumping
(e.g., in agriculture/irrigation, municipalities), air compression, gas compression, and
chilling/refrigeration.
Cogeneration/Combined Heat and Power (CHP)

Engine-based cogeneration involves concurrent production of electric power and useful thermal
energytypically as hot water and/or steam. (The term CHP is a commonly used synonym for
cogeneration in Europe.) Some industrial RE cogeneration applications use the engine exhaust
gas directly for drying purposes. RE waste heat is used in some other cases for heating process
fluids or organic heat transfer fluids. With effective utilization of the thermal energy, overall
system thermal efficiencies of 80 to 85% HHV can be achieved.
A cogeneration facility may be required to provide multiple steam and/or water streams at
different pressure/temperature levels. The systems configuration will vary accordingly. The
maximum temperature and pressure levels of the various thermal output streams are set by the
operating characteristics of each engine, and by practical economic considerations in the design
of the heat recovery equipment to satisfy the needs of the thermal host (or hosts).
2-63

As previously illustrated, there are four sources of waste heat in a REthe exhaust gas, engine
jacket cooling, turbocharger aftercooling, and lube oil cooling. Engine cooling systems
(exclusive of exhaust gas cooling) can be classified as follows:
Hot water systemnormal temperature: The jacket is basically unpressurized, and the outlet
cooling water temperature is about 190 to 210F (88 to 100C). The primary coolant circuit
(typically water) is a closed system with heat transferred to a secondary circuit. Radiator
cooling also can be used if the jacket heat is not needed.
Hot water systemhigh temperature: The jacket is pressurized to prevent boiling. Depending
on the engine, temperatures up to 266F (130C) can be employed, if the pressure is at least
25 psig (1.7 atm).
Hot water and steam system with flash boiler: This jacket cooling system is similar to the
previous one, with the added feature of discharging the pressurized hot water into a lower
pressure (8 to 10 psig/0.6 atm) vessela flash flash tank. With the pressure letdown, a
fraction of the hot water vaporizes, providing steam for external use. The unvaporized hot
water, returned condensate, and makeup water are pumped up to the jacket pressure and
recirculated.
Ebullient system: The engine jacket is pressurized to about 15 psig (1 atm) to permit
controlled boiling inside the jacket. The water-steam mixture from the jacket is piped to an
external separator, where low-pressure steam is removed for external use and water is
returned to the engine.
Depending on the engine and the cogeneration systems requirements, the lube oil cooling and
turbocharger aftercooling may be either separate or part of the jacket water cooling circuit.
Steam and/or hot water also can be generated via heat recovery from the hot exhaust gas. This
unit can be independent of the engine cooling network, or it can be coupled with it. For example,
hot water from engine cooling can be used as boiler feedwater or as boiler feedwater preheat. In
a typical cooling scheme for a district heating system, jacket cooling, lube oil cooling, singlestage aftercooling, and exhaust gas heat recovery are all integrated for steam production. For a
multi-level district heating application, the jacket water circuit is separated from the lube oil
cooling and aftercooling circuits. Two-stage aftercooling can be used to permit the engine to
see the low inlet manifold temperatures required for high engine ratings, while accommodating
the relatively high temperatures to the aftercooler associated with maximum heat recovery [22].
To provide an idea of the maximum superheated steam temperatures achievable with REs of
different sizes and efficiencies, the exhaust gas temperatures for some selected models are listed
in Table 2-11. Producing elevated-pressure superheated steam probably would not be practical
with a power plant smaller than about 10 MW, except under unusual circumstances, because of
the high cost of the incremental superheater surface.
Literally thousands of RE cogeneration systems exist worldwide in just about every conceivable
industrial, commercial, and institutional application. Many have multiple thermal output streams
(e.g., water at two or more temperature levels and, sometimes, steam) serving different functions.
They are predominantly SI and dual-fuel CI engine systems, often using up to six engines. SI
engine installations typically are 7 MW or less, although the average size is increasing due to the
2-64

increasing availability of large-size (up to 6 MW) lean-burn, low-emission SI engine models.

These larger systems represent a market segment in which SI and dual-fuel CI engines will be
competing more strongly with CTs. A number of example cogeneration installations are listed in
Table 2-10.
Table 2-11
Exhaust Gas Temperatures of Selected REs
Electrical
Approximate
Rating, kW,
Efficiency
Exhaust Gas
(@60Hz)
(LHV), %
Temperature, F
Type
Vendor
Model
SI
Caterpillar
3500 series
375-800
33.1-35.3
945-770 b
SI
Caterpillar
3600 series
1,135-3,049
37.0-37.6
845-810 b
SI
Jenbacher
Series 6
1,438-2,688
40.7-41.5
750 (est.)
SI
Cummins-Wrtsil
CW18V220
2,600
38.7
734
SI
Waukesha
VGF GL/GLD
170-835
N.A.
836 d
SI
Waukesha
VHP GL
430-1,475
33.2
700 d
SI
Waukesha
8L/12V-AT27GL
1,418/2,150
37.2
700 d
SI
Waukesha
16V-AT27GL
2,930
38.0
770 e
SI
Wrtsil NSD
18V28SG
4,107
41.5
716
SI
Wrtsil NSD
18V34SG
5,211
42.0
784
1,240-2,585
39.7
600
1,580-3,165
39.5
610
5,635-8,450
41.4
730
2,561
44.6
590
19,500-33,400
47.3
545
SI
Fairbanks Morse
38ETDS series
Dual-Fuel
Fairbanks Morse
38EDD series c
Dual-Fuel
Fairbanks Morse
PC-2.5 series
Diesel
MAN B&W
NR26R
Diesel
Wrtsil NSD
RTA76 series
After turbocharger.
Decreases with increasing number of cylinders.
c
Opposed piston, 2-stroke.
d
Wet exhaust (water-cooled manifold).
e
Dry exhaust.
b
Source: SFA Pacific, Inc. from manufacturers data
Combined Cycle
Conventional Combined Cycle
With RE systems larger than about 10 MW, a combined cycle may become practical. The
conditions under which the addition of the steam turbine bottoming cycle might become
2-65

economic include: a high natural gas price, a sufficiently large total power output, and
continuous plant operation at high load (essentially baseload). However, four factors work
against the practicality of RE combined cycles; namely:
Only about half of the waste heat is in the form of hot exhaust gas.
The exhaust gas temperatures of large, high-efficiency REs are relatively low compared to
exhaust gas temperatures from CTs, which are commonly used in combined-cycle
applications.
Diseconomies of scalewe are discussing quite small steam cycles here.
Small steam turbines are less efficient than large steam turbines.
Consequently, a modest steam flow and maximum steam conditions of approximately 150
psig/800F (10.2 atm/427C) may be achievedenabling at most an additional 5 to 10% in
electric power output from a condensing steam turbine. However, some European vendors often
push these limits in the interest of achieving higher fuel efficiencies. In steam turbine power
cycles, for example, European vendors typically assume steam condenser pressures appreciably
lower than the 2.5 inch of Hg typically used in the United States. The lower condenser pressure
adds a significant boost to the steam cycle power output.
Diesel engine combined-cycle systems appear to be most practical on ships and for island
economies, where saving fuel is important and where direct cooling with relatively cold seawater
can be employed. Wrtsil NSD appears to be the only engine manufacturer aggressively
promoting combined cycleswith all of its engines above about 2.5 MW enginesbut usually
in multi-engine plants, where the steam from all the units feed one steam turbine.
Reciprocating engine combined-cycle plants are rare in the U.S. However, there are at least three
in the United States, two of which are listed in Table 2-10 under Industrial Cogeneration;
namely, the 3M R&D Center in Austin, Texas and the Cogentrix plant in Ringgold Township,
Pennsylvania.
Turbo Compound Systems
On very large diesel engines, a separate exhaust gas power turbine driving an asynchronous
generator can be used to boost fuel efficiency 3 to 4 points. In this option, called the turbo
compound system, the turbocharger bypass diverts some of the exhaust gas to a power turbine.
This system is used aboard some large ocean-going, refrigerated container vessels for operational
flexibility and fuel economy. About 10% additional power appears to be the practical limit for
this system and is generally not considered practical with engines smaller than about 15 MW.
MAN B&W and Wrtsil NSD offer this option on their large, low-speed, 2-stroke engines.
Hot Windbox Repowering
Wrtsil NSD also has promoted various diesel combined-cycle (DCC) systems, in which the
engines are coupled with conventional Rankine-cycle power plants. One of the proposed
configurations amounts to hot windbox repowering of the boiler; i.e., putting the engines hot
2-66

exhaust gas into the windbox of the boiler. The low-level engine jacket heat rejection is used to
reheat boiler feedwater. Alternatively, the engines exhaust gas could also be used for boiler
feedwater heating before it is fed into the boiler windbox. The nominal advantages of these
schemes include improved steam-cycle heat rates and the ability to use high-sulfur, residual fuel
oil in the diesel engine, taking advantage of the boilers SCR and SO2 scrubber for emissions
control. However, no DCCs have been installed.
RE Power Plant Supply

Packaged and Containerized Units and Plants
Packaged single-engine gensets are available in sizes from about 5 kW to about 1,500 kW. They
can be provided as standardized modules, either containerized or mobile (trailer-mounted),
which are fully equipped with mechanical and electrical auxiliaries and controlsready to be
installed and operated.
Such modules can be leased from some RE distributors and packagers, as well as independent
leasing companies. Major customers include the movie and construction industries. Within the
past three years, leasing multiple units to provide as much as 100-150 MW of emergency backup power to some utility grids has become a big business for companies such as Caterpillar and
independent equipment leasing companies such as Aggreko.
Standard sea-cargo ISO containers (8 ft wide x 9 ft high x 40 ft long), which can be hauled on
truck trailers, are typically used for the larger modules (700 to 1,500 kW ). The limiting
maximum genset size that can be placed in the standard container is governed by the challenge of
accommodating the units radiator. SI engine systems up to about 1 MW and diesel genset
modules up to about 1.6 MW can fit in the standard container. In some casese.g., where
ambient conditions minimize cooling system requirements and/or where there are no special
requirements for noise reductionunits up to about 2 MW may be accommodated in a standard
container. Oversize (longer) containers are sometimes used, if necessary.
Wrtsil NSD offers an Instant Power Plant based on its 2.3 MW Model 200 diesel engine.
However, due to its size, the Instant Power Plant is comprised of three standard containers, one
each for the genset, radiator, and control system. While this containerized plant offers the
advantage of delivery in essentially finished form and quick installation, Wrtsil indicates that
installation of the same gensets skid-mounted in a conventional, erected corrugated metalenclosed building would be less expensive.
Custom-Engineered Plants
Except for relatively simple RE installations, such as rental unit installations and emergency/
standby units, most RE applications require site-specific engineering and systems customization,
depending on the site, size, and complexity of the system. Cogeneration and trigeneration
(electricity, steam and/or hot water, and chilling) system designs typically are the most
complicated, because of site-specific variations. Although the REs waste heat is exported to
users in cogeneration, some additional waste heat rejection may be required to reduce the
2-67

returned cogeneration stream temperatures to the levels required by the engine jacket, lube oil,
and turbocharger aftercooler. For power-only applications, radiator cooling of the engine cooling
medium may be sufficient. Alternatively, a cooling tower may be required.
The smaller gensets can be delivered skid-mounted or frame-mounted, and may be more readily
accommodated in existing buildings. Depending on the manufacturer, modes of transport
available for delivery (i.e., sea, rail, trailer truck, flatbed truck), and the related economics,
gensets in sizes as large as 4-10 MW may be frame-mounted at the factory for shipment. Larger
engines and their generators are shipped separately. The gensets or separate engines and
generators are placed (on frames, if needed) on concrete pads designed to handle the units
weight and vibrations. The construction of power plants using the massive medium-speed and
the low-speed diesel engines is quite challenging.
Barge-mounted RE and CT power plants have become increasingly popular within the past
decade. Barge-mounted plants are well suited for the bays of some islands and seacoast
countries. Supplying a barge-mounted power plant allows control over essentially the entire
construction phase of the project in the constructors own shops. Like their land-based mobile
cousins, barge-mounted plants can be quickly installed once they are delivered. Theoretically,
they can also be disconnected and towed away if the political or economic necessity should arise.
2-68
3
ENVIRONMENTAL PERFORMANCEEMISSIONS
CONTROL
Introduction
Exhaust emissions comprise the primary environmental concern with reciprocating engines
(REs), as is also the case with combustion turbines (CTs). For a given engine, there are trade-offs
between low NOx emissions and high efficiency. Since engine efficiency is also related to
combustion efficiency, there can be trade-offs between achieving low NOx emissions and low
emissions of the products of incomplete combustion.
There are three main approaches to this dilemma. One is controlling the engine for lowest
NOxaccepting a fuel efficiency penalty and possibly higher CO and hydrocarbons emissions.
The latter could be controlledif necessaryby using an oxidation catalyst. Another option is
finding an optimal balance between emissions and efficiency. A third option to design for
highest efficiency and using post-combustion exhaust treatment. Key treatment options include
stoichiometric operation with a three-way catalyst or selective catalytic reduction (SCR) systems
coupled with an oxidation catalyst.
This section focuses on providing a concise overview of RE exhaust gas emissions formation and
control. Both combustion control techniques and post-combustion exhaust gas treatment are
discussed for spark-ignited (SI), dual-fuel (DF), and diesel engines. Alternative fuels that have
reduced emissions potential are also briefly discussed.
RE Air Emissions
Nitrogen Oxides (NOx)
NOx emissions are usually the primary concern with gas engines. NOx is a term used
collectively for the two environmentally regulated oxides of nitrogennitric oxide (NO) and
nitrogen dioxide (NO2). Both are involved in chemical smog formation and are acid rain
precursors. The NOx in the product gases from normal combustion processes (e.g., REs, CTs,
furnaces) typically is 90% NO. However, by convention, NOx emissions are as equivalent NO2
as an output rate (e.g., lb/h) or exhaust gas concentration (e.g., ppmv at 15% O2, dry or mg/Nm3
at 5% O2, dry, the German standard). Other common units for presenting RE air emissions are
g/hp-hr and g/kWehr.
3-1

Environmental PerformanceEmissions Control
Among engine options, lean-burn gas engines produce the lowest NOx emissions and diesel
engines produce the highest NOx levels. NOx output from these engines are compared in Table
3-1 along with CTs using dry low-NOx combustors or water- or steam-injection. The ppmv and
g/kWhr values indicated for the diesel engines are nominal ranges.
Table 3-1
Representative NOx Emissions from REs and Natural Gas-Fired CTs
NOx
NOx ppmv
Engines
Fuel
@ 15% O2, dry
g/kWehr
Diesel Engines (high-speed &

medium-speed)b
Distillate
4501350
7-18
Diesel Engines (medium- and

low-speed)c
Heavy oil
900-1800
12-20
Lean-Burn SI and Micropilot

Prechamber DF Engines
Natural gas
45-100
0.6-1.4
Combustion Turbines
Natural gas
25
0.37-0.7e
0.12-0.46e
9-15d
a
The convention for reporting CT exhaust gas NOx concentrations in the U.S.15% O2,
dry basisnow is also commonly used for gas engines.
b
Efficiency range: 37-44% (LHV).
c
Efficiency range: 42-48% (LHV).
d
With dry low-NOx combustors.
e
The highest values correspond to a small CT operating at 22% efficiency (LHV). The lowest
values correspond to the largest aeroderivative CTs operating at 42% efficiency (LHV).
NOx (or other emissions) outputs expressed as amount per unit of useful energy output (e.g.,
g/kWh)which is a function of the efficiency of power generationis a more appropriate
measure of the environmental performance than exhaust gas concentration of the pollutant.
Consider an example of two 5,000 kW gas engines controlled to produce 100 ppmv of NOx at
15% O2 (dry). One operates at 40% efficiency (LHV) and the other operates at 42% efficiency
(LHV)both baseload. The 40% efficiency engine produces NOx at the rate of 1.53 g/kWh or
7662 g/h, while the 42% efficiency engine emits 1.46 g/kWh or 7297 g/h (5% less).
The equation for converting NOx concentration as ppmv at 15 vol% (dry) to NOx as g/kWe is:
NOx (g/kWh) = k [NOx, ppmv @15% O2, dry]
Where k is 0.67 for methane, 0.61 for No. 2 oil, and 0.54 for No. 6 oil (heavy oil)and is the
electrical generating efficiency, percent (LHV). These numbers can be multiplied by 0.746 to
provide NOx emissions in terms of g/hp-hr. As this equation implies, an increase in efficiency
reduces the NOx emissions rate.
3-2

Products of Incomplete Combustion

The other main RE air pollutants are produced by incomplete combustion; namely, CO,
hydrocarbons, oxygenated hydrocarbons, soot, and smoke. CO and unburned hydrocarbons
usually are regulatedin addition to NOxin the U.S., Canada, Europe, and Japan.
Volatile hydrocarbon emissions from REs typically are often reported as non-methane
hydrocarbons (NMHCs). Since methane is not significantly involved in the atmospheric
chemistry of ozone build-up and smog formation, it currently is not regulated. However, that
situation could eventually changesince methane is of concern as a greenhouse gas (having
21 times the global warming potential of CO2). The heavier hydrocarbons are more reactive than
methane in chemical smog formation and therefore are an issue. The term volatile organic
compounds (VOCs) includes oxygenates (e.g., formaldehyde) as well as other hydrocarbons (but
usually excluding methane).
Inadequate oxygen, low temperature, and inadequate reaction time are conditions that result in
incomplete combustion. Cooling at the combustion chamber walls and reaction quenching in the
exhaust process also may cause incomplete combustion. Excessively lean conditions can lead to
incomplete and unstable combustion.
With diesel engines, emissions of VOCs, heavy liquid and solid hydrocarbons and oxygenates,
particulates (smoke, heavy hydrocarbons, and fuel ash), and SOx (SO2 and SO3) are issues. Fuel
and lube oil hydrocarbons also can be transformed into a variety of polynuclear aromatic
hydrocarbons (PAHs). These, in turn, can react with other gaseous componentse.g., with NOx
to form nitro-PAH compounds. Liquid hydrocarbons adsorbed on solid particulates are referred
to as the soluble organic fraction (SOF). Particulate matter (especially the SOF) and other heavy
organic components in diesel engine exhaust gases are human health hazards.
SO2 and Fuel Ash

Since pipeline quality natural gas contains relatively little sulfur, SO2 emissions are not normally
a major concern with natural gas. However, both SO2 and ash emissions are issues with diesel
engines.
Essentially all the sulfur in a sulfur-bearing fuel is oxidized to SO2 during combustion. A small
amount of the SO2 is converted to SO3, which can react with exhaust moisture to form a corrosive
sulfuric acid mist. If the exhaust gas is cooled below its dew point, condensation of the acid can
occur on the surfaces of the cooling equipment and/or on the exhaust gas particulates. The ash
content of fuel oil also appears in the exhaust gas as fine particulates.
Fuel ash also can form deposits on the combustion chamber and downstream surfaces. Therefore,
reduction of exhaust gas particulates is an important means of reducing exhaust system corrosion
in diesel engines. Ash also may be picked up by the lubricating oil, potentially exacerbating
engine wear and waste lube oil disposal issues. This can create problems in catalytic exhaust
treatment equipment (e.g., masking or poisoning the catalyst).
3-3

NOx Formation
The primary mechanism of NOx formation in gas engines is the thermal NOx mechanisma
complex mechanism in which oxygen and nitrogen combine to produce NO (nitric oxide). The
rate of NOx production increases exponentially with temperature, becoming significant at
temperatures above approximately 2,800F (1538oC). NOx production also depends on oxygen
and nitrogen concentrations and reaction time. With liquid fuels, oxidation of fuel-bound
nitrogen also produces NOxcalled fuel NOx.
Diesel engines produce higher combustion temperatures and more NOx than lean-burn gas
engines, even though the overall diesel engine air/fuel ratio may be very lean. There are three
reasons for this difference: (1) heterogeneous near-stoichiometric combustion, (2) the higher
adiabatic flame temperature of distillate fuel, and (3) fuel NOx. The diesel fuel is atomized as it
is injected and dispersed in the combustion chamber. Therefore, combustion largely occurs at
near-stoichiometric conditions at the air-droplet and air-fuel vapor interfaces. The diffusioncontrolled combustion in these zones is near stoichiometricresulting in maximum
temperatures. In contrast, lean-premixed homogeneous combustion often used in gas engines
results in lower combustion temperatures and NOx production.
The NOx-production difference between homogeneous lean combustion of natural gas and
heterogeneous combustion of oil droplets in air or air-natural gas mixtures is illustrated in Figure
3-1. This figure, based on data measured with six different engines, compares NOx output for
straight diesel engine operation with various percentages of pilot fuel use in DF operation [1]. As
the pilot fuel level decreasesand as the air/fuel ratio is increasedthe amount of NOx
Figure 3-1
NOx Versus Excess Air Ratio
3-4

produced drops to the low values characteristic of todays high-performance lean-burn engines.
The spark-gas (SI) line in can be considered the zero pilot fuel. The 100% diesel line remains
horizontal as the air/fuel ratio is increased.
As previously discussed in Section 2 under Technology Issues and Development Trends, the
homogeneous charge compression ignition (HCCI) being developed at SwRI and elsewhere
appears to enable fuel oil combustion at conditions approaching the homogeneous lean-premixed
combustion of natural gas [2]. If this system were to be represented in Figure 3-1, it would be a
line close to the SI (spark gas) engine.
Combustion Process Control of NOx

Control of the combustion process conditions is the first line of attack on NOx and other
emissions. The primary focus is combustion temperature. However, there are trade-offs in the
optimization effort. When combustion NOx control is emphasized, the other emissions fall where
they will. For example, while high temperatures favor good burnup of fuel and low residual
hydrocarbons, it promotes NOx formation. Very lean combustion reduces combustion
temperatures and NOx formation. It also allows a higher compression ratio or firing peak
pressuresresulting in higher efficiency. However, if the mixture is too lean, misfiring and
incomplete combustion occur.
Aside from lean homogeneous combustion with gaseous fuels, combustion temperature can be
controlled in REs by one or more of the following techniques:
Delaying combustion by retarding ignition timing or fuel injectiona common practice.
Diluting the fuel-air mixture with exhaust gas recirculation (EGR), which replaces some of
the air and contains water vapor which has a relatively high heat capacity (absorbs some of
the heat of combustion).
Introducing liquid water by direct injection or via fuel oil emulsification, whereby
evaporation of the water cools the charge
Reducing the inlet air temperature with a heat exchanger after the turbocharger (called
intercooling or aftercooling) or via inlet air humidification.
Modifying valve timing, compression ratio, turbocharging, and the combustion chamber
configuration.
Although water injection and EGR are old techniques, they apparently have not been applied to
stationary REs to any significant extent until recent years. EGR, water-injection, and delayed
ignition timing each have the potential to reduce NOx emissions by 25-60%.
Gas Engines
With the exception of stoichiometric engines coupled with 3-way catalysts for gas cleanup, the
main thrust of NOx control for gas engines has been lean-burn technology. Both SI and DF leanburn technologies were discussed in Section 2. As discussed there, an added performance
advantage of lean-burn operation is higher output and higher efficiency.
3-5

Representative air emissions for stoichiometric, open-chamber lean-burn SI engines, lean-burn

prechamber SI engines, and micropilot DF engines are shown in Table 3-2. In this table, the
lean-burn engines are tuned for high efficiency. Emissions for a DF engine operating in the
100% diesel mode are also indicated.
Table 3-2
Representative Emissions from SI and DF Gas Engines with NOx as the Controlled
Emission
Emissions:
g/kWh (ppmv @
15% O2, dry
a
basis)
Stoichiometric SI
b
(no TWC)
Stoichiometric SI
b
after TWC
Lean-Burn
SI Openc
Chamber
Lean-Burn SI
with
c
Prechamber
17
<1.7
1.4
1.4
1.2-1.4
10-16
(860)
(<86)
(90)
(90)
(90-110)
(670-1100)
15
<1.5
2.0-3.4
2.0-4.0
1.8-3.0
0.4-1.3
(1250)
(<125)
(210-360)
(210-420)
(190-315)
(45-140)
0.3
<0.06
0.3-1.0
0.4-1.2
0.6-0.8
(44)
(<9.0)
(25-75)
(30-235)
(60-120)
Not available
(n.a.)
6.3
<1.9
n.a.
n.a.
n.a.
(925)
(<280)
NOx
CO
Non-methane
hydrocarbons e
Total
hydrocarbons d
Lean-Burn DF
DF Engine
with Micropilot Operating in
c
Prechamber
100% Diesel
Mode
0.4-0.6
(80-115)
The ppmv values are approximate. Actual values vary, depending on a specific engines air/fuel ratio and efficiency.
Based on Caterpillar 3500 Series SI engine and assumed three-way catalyst (TWC) conversion efficiencies.
c
Based on emissions data from Caterpillar, Fairbanks Morse, Cooper Energy Services, and Wrtsil NSD
d
ppmv is expressed as CH4
b
Table 3-3 shows data illustrating the tradeoffs between NOx emissions control and efficiency
when selecting control settings for two large lean-burn gas engines. At the lowest achievable
NOx levels (45-50 ppmv), 1.3 points are lost in the rated full load efficiency. Most of the leanburn gas engines of other manufacturers offer comparable performance.
Retrofitting gas engines to reduce NOx emissions was discussed in Section 2. Techniques
include stratified-charge, higher-intensity and longer-duration spark-ignition, prechambers for
engines with sufficiently large bores, and accompanying turbocharger upgradesif needed to
facilitating leaning-out the charge.
It is anticipated that EGR and water-injection will be applied for further reductions of NOx with
lean-burn gas engines over the next few years. As discussed in Section 2 under Technical Issues
and Development Trends, the ARES program is investigating water-injection and other
techniques in its efforts to develop next-generation gas engines. No outstanding examples of
lean-burn gas engines operating with water-injection or EGR were available for this report. The
potential for further gas engine NOx reductions with these two techniques may be indicated, at
least qualitatively, by the results obtained with their application to diesel enginesdiscussed
later.
3-6

One promising technique for enabling extremely lean combustion and achieving low NOx levels
with gas engines appears to be the syngas-fueling technology developed by SwRI (briefly
discussed in Section 2). In this system, a portion (about 10%) of the natural gas fuel is processed
in an on-line catalytic partial oxidation and water-gas shift system to produce a hydrogen-rich
stream, which is then remixed with the main fuel to all cylinders. The hydrogen increases the
flame speed and lean limit of the fuel-air charge in lean-burn engines or increases the flame
speed in an engine in which excess oxygen is replaced by recirculated gas. The NOx levels
achievable are claimed to be below 0.2 g/kWh (<15 ppmv) [3]. No projected costs for this
technology were obtained.
Table 3-3
NOx Emissions Versus Efficiency Tradeoffs in Gas Engines
Engine Characteristics
Lean-Burn SI with
Prechamber
Lean-Burn DF with
Micropilot Prechamber
Model 18V34SG
Model 18V32DF
Low-NOx
HighEfficiency
Low-NOx
HighEfficiency
Rating @ 60 Hz, MW
5.2
5.2
5.8
5.8
Speed, rpm
720
720
720
720
Efficiency, % (LHV)
40.7
42.0
40.7
42.0
Emissions: g/kWh (ppmv @ 15% O2, dry basis)

NOx
CO
Non-methane hydrocarbons
0.7
1.4
0.6
1.2
(46)
(92)
(50)
(90)
3.2
2.0
3.2
1.8
(361)
(227)
(360)
(210)
0.9
0.6
N.A.
N.A.
(61)
(39)
Source: SFA Pacific, Inc. based on manufacturers ratings
Diesel Engines
Representative diesel engine emissions for both No.2 fuel oil and heavy fuel oil are shown in
Table 3-1. The ranges of are wide due to the numerous differences among the engines, as well as
widely varying fuel characteristics. Engine differences include speed, BMEP, injector and nozzle
design, injection timing and duration, air/fuel ratio, and combustion chamber configuration. For
medium-speed engines, emissions for both distillate oil and heavy fuel oil are shown. Lowspeed engines typically burn the lowest grade heavy oils and tend to produce higher NOx,
hydrocarbon, and particulate emissions. Some medium-speed engines can burn the same worstquality heavy oil often used in low-speed engines. Combustion proceeds more slowly with the
heavier, more viscous oils. Residual oil must be heated to a temperature at which it can be
pumped and also a temperature at which it has the viscosity and lubricity specified by the engine
manufacturer for proper fuel-injection, atomization, and combustion.
3-7

As noted previously, conditions that reduce NOx often tend to increase other emissions. This is
the case with severe ignition retardation timingthe most common technique for CI engine
combustion control and NOx reduction. Ignition timing retardation can reduce NOx about 2550%. However, comes at the expense of increased fuel consumption, higher smoke levels, and
piston ring and liner wear rates.
Industry R&D on diesel engines has included efforts to reduce emissions through higher fuel oil
injection pressure and better atomization. More recently, efforts have focused on modifying the
combustion process to optimize the balance between fuel economy and low emissions.
The common rail injection system (CRIS) is now being used in an increasing number of diesel
engines from automobile engines to very large medium-speed and low-speed engines. The highpressure CRIS enables better atomization and more flexible and precise injection control,
including injection rate shaping. This presents the possibility of minimizing NOx emissions
(relative to fuel injection) over the engine operating range by changing the rate shape. CRIS also
facilitates multiple injections in one injection cycle, which can keep the combustion temperature
low.
Other combustion control methods now increasingly being applied in the development and (in
some cases) manufacture of reduced-emission diesel engines include the following:
Direct water injection or water-fuel oil emulsions. While heavy oil and water can be mixed to
form stable emulsions, distillate and water separate rapidly after mixing. A stabilizing agent
is added to produce a distillate/water emulsion having even short-term stability. Use of these
techniques are becoming widespread. Apparently ordinary tap water is satisfactory in many
cases.
Engine design changes; e.g., modification of the compression ratio and turbocharger, and
redesigning the combustion chamber and air intake to improve air flow and fuel mixingand
promote more complete combustion
Improved fuel-injection
Intake air humidification (also called fumigation), intake air cooling, and/or cooling the
turbocharger discharge air.
Thermal barrier coatings (TBCs)coating the piston crown, cylinder head, and valve faces
with a ceramic material to reduce combustion chamber heat losses and improve combustion
efficiencyincluding reduced CO, hydrocarbons, and particulates. Some engine
manufacturers apply TBCs at the factory. Also some independent engine TBC specialists can
apply retrofit TBCs to combustion chamber components.
Manipulating fuel characteristicswith additives, alternative fuels, and designer fuels. In

the latter category, for example, Fischer-Tropsch synthesis of diesel-quality hydrocarbons
offers the possibility of tailoring and optimizing molecular composition and fuel
properties.
By using one or more of these methods, NOx can be reduced about 30-60% from uncontrolled
levels. A 15-25% NOx reduction is possible with the dry methods before fuel efficiency begins
to decrease, although such methods tend to increase smoke output. Optimized low-emissions
3-8

engines using dry methods now can achieve NOx levels of 7-10 g/kWh when burning distillate,
while maintaining or even improving fuel efficiency.
Direct water injection or fuel/water emulsification can reduce NOx up to 60% without increasing
fuel consumption or smoke output. Water-injection combined with other optimization and
abatement measures, can reduce NOx on distillate-fueled engines down to about 4-5 g/kWh.
Some tests have shown oil-water emulsions are about twice as effective as water injection into
the intake manifold, while also reducing smoke output. The use of heavy oil-water emulsions has
become fairly widespread, although mainly in marine applications. The use of emulsions almost
eliminates particulate emissions. For high-sulfur residual oils, this large reduction of particulates
also is credited with reducing or eliminating sulfuric acid condensation, corrosion, and fouling in
the exhaust system. High sulfur is typical of residual oils.
Exhaust gas recirculation (EGR), standard practice on automotive gasoline engines, also can
reduce NOx in diesel engines, but at the expense of a slight increase in smoke output.
Approximately 30% NOx reduction is achievable with 10% EGR. However, the percentage of
EGR that an engine can tolerate also may be limited by the soot and other particulates in the
exhaust gas, since recycled particulates can degrade the engine lube oil. However, particulates
recycle may be reduceable with the use of a diesel particulates filter. Problems have been
encountered in EGRaffecting materials such as rings in advanced low-emissions diesel
engines.
Alternative Fuels
The challenges of reducing air emissions frequently leads to consideration of alternative fuels.
However, for gas engines, natural gas provides the combined characteristics of abundant lowpriced supply and low-emissions. Hence, there are no practical alternative fuel candidates for gas
engines emissions improvements. Of course there are opportunity fuels for gas engines, which
are discussed briefly in Section 4. They include landfill gas, sewage treatment plant digester gas,
and manufactured gases. While methanol-fueled SI car, truck, and bus engines have been
developedand could be adapted for stationary power generation applicationsthere are no
practical incentives for such adaptations.
While natural gaswith conversion to dual-fuel operationis the most effective, practical, and
economical alternative fuel for reducing diesel engine NOx, investigations of other fuels
continue to be investigated in the U.S., Canada, Europe, and Japan. The alternative fuels include
methanol, ethanol, bio-diesel, dimethyl ether (DME), and naphtha-water emulsions. With the
exception of naphtha, these fuels are relatively expensive. The fuel with the greatest technical
promise is likely DMEa synthetic fuel (derived from natural gas) with good CI characteristics.
The following discussion is based primarily on limited data and anecdotal reports on tests with
alternative fuels in truck diesel engines.
DME-fueled truck engine tests produced essentially zero soot and only 25% of the NOx produced
with diesel fuel. However, DMEs CO and unburned hydrocarbon emissions are comparable to
those of diesel fuel. With DME and 30% EGR, NOx emissions reductions of 90% (relative to
diesel oil operation) have been observed with no loss in efficiency, but with a 70% increase in
3-9

CO emissions. The DME-fueled CI engine has an efficiency level comparable to that of the
conventionally-fueled diesel engine.
Methanol- and ethanol-fueled diesel engines present challenging design issues; e.g., very high
compression ratios to achieve compression ignition. Nevertheless, under the California Energy
Commission methanol program (launched in 1979), Detroit Diesel Corporation (DDC)
developed a promising low-NOx two-stroke diesel engine fueled by 100% methanol. It is also
capable of burning a 95% ethanol/5% unleaded gasoline fuel blend, although with twice the NOx
output of methanol fueling. Other U.S. truck diesel engine manufacturers (Caterpillar, Cummins,
Navistar) have investigated methanol engines, as have some Japanese and Chinese
manufacturers.
Caterpillar has investigated diesel engine operation on naphtha-water emulsions stabilized with
proprietary additives from an independent developer. Apparently there has been no indication
that Caterpillar is proceeding any further with this option.
Biodiesel is a generic term for vegetable oils or their derivatives (e.g. esterified oils) burned in
diesel enginesusually blended with distillate fuel. While many of the biodiesels appear to be
compatible with diesel fuels, they do not appear to offer any outstanding environmental or
economic benefits for diesel engine operation.
Post-Combustion Emissions Control [4]

There are several types of catalytic exhaust gas treatment processes applicable to various types of
REs. These include three-way catalytic conversion (TWC), selective catalytic reduction (SCR),
oxidation catalysts, dual-function catalysts, combined absorption-catalytic processes, and leanNOx catalyst systems. TWCs are applicable only to rich-burn and stoichiometric SI engines.
Dual-function catalysts are applicable to clean fuels. The other two systems are applicable to
both lean-burn gas engines and diesel engines.
The application of gas scrubbers for SO2 removal from heavy oil-fueled diesel engine exhaust
gas is gradually increasing in parts of Europe and Asia.
The catalytic processes, SO2 scrubbing, and diesel engine particulates collectors are listed in
Table 3-4 and briefly discussed below.
TWC
The catalytic 3-way conversion process is so named because it reduces concentrations of all three
major air pollutantsNOx, CO, and hydrocarbons. The TWC is also called non-selective
catalytic reduction (NSCR). NOx and CO reductions are greater than 90%, and NMHCs are
reduced about 80% in a properly controlled TWC system. These reductions can bring the
emissions of a rich-burn or stoichiometric SI engine down to as low as lean-burn enginesand
lower in some cases. However, it is effective only with exhaust gas from stoichiometric
enginesoperated so the exhaust gas contains less than 0.5% O2. Under this condition, the CO
3-10

and hydrocarbons reduce the NOx to N2. The remaining CO and hydrocarbons are then oxidized
to CO2 and H2O.
Table 3-4
Post-Combustion Emissions Control Technologies for Stationary REs
Engine
Operation
Type of
Engine
Control Technology
Target Emissions
Status
Rich
Gas
3-way catalyst (TWC)
NOx, CO, NMHC
Commercial
Stoichiometric
Gas
3-way catalysts (TWC)
NOx, CO, NMHC
Commercial
Lean
Gas
Oxidation catalyst (2-way)
CO, NMHC
Commercial
Diesel
Oxidation catalyst (2-way)
CO, NMHC, particulates Commercial
Gas & diesel
Selective catalytic reduction NOx

(SCR)
Commercial
Gas
Dual-function catalyst
NOx, CO, NMHC
Commercial
Gas & Diesel
Absorption + catalytic
reduction (SCONOX)
NOx, CO
Commercial with
CTsbeing applied to
gas and diesel engines
Gas & Diesel
Lean-NOx catalyst
NOx, CO, NMHC
R&D
Diesel
Mechanical particle
collectors
Particulate
Commercial and R&D
Diesel
SO2 scrubbers
SO2 and SO3
Source: Manufacturers of Emission Controls Association and SFA Pacific, Inc.
Commercial
TWCs are based on noble metal-based catalysts, which are vulnerable to poisoning and masking.
Hence, their use is limited to engines operated with clean fuels; e.g., unleaded gasoline and
natural gas. Also, the engines must use lubricants that do no generate poisoning compounds and
have low concentrations of heavy and base metal additives. Unburned fuel, unburned lube oil,
and particulate matter also can foul the catalyst.
TWC technology is not applicable to diesel engines or lean-burn gas engines. TWCs comprise
the basic auto exhaust gas cleanup technology used worldwide in gasoline-fueled SI automotive
engines. TWCs are also in use with some stationary natural gas-fueled gensets in North America,
Europe, and Japan. As indicated in Table 3-2, the TWC emissions levels are lower than those of
lean-burn gas engines without post-combustion controls. However, it is be difficult to find
stoichiometric engines much larger than about 1,300 kW.
R&D efforts to develop a TWC for lean-burn enginesparticularly on-the-road diesel engines
have been underway for years. The lean-NOx catalyst system, discussed below, could be
considered a type of TWC for lean-burn engines.
3-11

SCR
This technology is so named because it selectively reduces NOx to N2. A reducing agent is
required. NOx reductions greater than 80-90% are achievable. Higher reductions are possible
with use of more catalyst or more reducing agent, or both. The two agents used commercially are
ammonia (NH3 in anhydrous liquid form or aqueous solution) and aqueous urea. In the hot
exhaust gas and SCR reactor, urea decomposesreleasing ammonia. Typically, the amount of
ammonia required for 80-90% NOx reduction is approximately 0.9-1.0 mole of ammonia per
mole of NOx at the SCR reactor inlet.
Some unreacted ammoniacalled ammonia slipalways exits in the flue gas. Many local or
regional regulatory authorities specify ammonia slip limits on SCR processes, in addition to
limits on NOx. There are trade-offs between percentage NOx reduction and ammonia slip, which
can present challenges where both high-NOx reduction and low slip are required. Increasing the
NH3 may increase slip. Another trade-off is that pressure drop across the SCR reactor increases if
the catalyst volume is increased by increasing the length of the reactor.
The choice between ammonia and urea involves a number of considerations. On a $/unit of NH3
basis, the delivered price of urea is 2-4 times that of ammonia. However, urea is safer and
simpler to handle and easier to permit than ammonia.
The choice of catalyst depends on the exhaust gas temperature, the pollutants, their
concentrations, and economics. There are four types of SCR catalystshaving different effective
temperature windows, performance characteristics, and costs. Their characteristics are
summarized in Table 3-5. All except the Shell process are widely used in the U.S., Europe, and
Japan. The recently commercialized Shell process has so far been used in a small number of fired
furnaces and CTs. Its low operating temperature window allows placing the SCR unit after the
exhaust gas cooling equipment, thereby reducing installed costs, particularly for CT retrofits.
Base metal catalysts have been proven in numerous applications with all kinds of fuels and
power generation technologies worldwide. Since V2O5 is classified as a hazardous material
requiring special handling and disposal, spent catalyst typically are recycled to the catalyst
vendor. Zeolite catalysts are finding increased use with CT and diesel engine power systems
because of their resistance to poisoning and masking and their effectiveness at higher
temperatures than other SCR catalysts. The higher temperature window allows the catalyst to be
placed directly after the exhaust of an RE or CT. Zeolite catalysts are not classified as hazardous;
therefore, the spent catalyst can be disposed of at ordinary landfills.
The SO2-tolerant catalysts will promote the oxidation of a small percentage of any SO2 present to
SO3. The SO3 can, in turn, react with ammonia to form ammonium sulfate and corrosive bisulfate
salts. In this case, the SCR system must be designed and operated so as to prevent salt
deposition on the catalyst or the surfaces of downstream exhaust gas cooling equipment. As long
as sulfuric acid has not condensed along with the salt deposits, such catalyst fouling usually can
be reversed by heating the catalyst. Catalysts designed with low SO2 oxidation activity usually
also have lower NOx reduction activity, thereby increasing the amount of catalyst required.
Since precious metal-based catalysts are vulnerable to poisoning and fouling by heavy
hydrocarbons and soot, their use generally is limited to clean fuels such as natural gas. Lube oil
3-12

blow-by can also foul the catalyst. The precious metal content gives the catalysts some salvage
value at the end of their life.
Table 3-5
Overview of SCR Catalysts
Catalyst
Fuels
Temperature
Window, F (C)
SO2Tolerant
Tolerant of particulates
(hydrocarbons and ash)
Base metal (typically

V2O5 on TiO2)
All
570-750 (300-400)
Yes
Yes
Zeolite
All
750-1,125 (400-595)
Yes
Yes
Clean
only
450-550 (230-290)
No
No
Clean
only
325-450 (165-230)
No
No
Precious metals
Shell low-temperature
(V2O5-TiO2-SiO2)
Oxidation Catalysts
Oxidation catalysts generally are precious metal compounds that promote oxidation of CO and
hydrocarbons to CO2 and H2Oin the presence of excess O2. CO and NMHC conversion levels
of 98% and 90% are achievable. Methane conversion may be up to 60-70%. Oxidation catalysts
are now widely used with all types of engines, including diesel engines. They are being used
increasingly with lean-burn gas engines to reduce their relatively high CO and hydrocarbon
emissions. Frequentlyparticularly with CT systemsboth an oxidation catalyst and SCR are
used.
Dual Function Catalysts

These are precious metal-based catalysts that combine the SCR and CO oxidation functions in
one catalyst. However, they are applicable only with clean fuels. Their operating temperature
range is about 425-550F (220-290C).
Combined Absorption-Catalytic Emissions Reduction

In this type of system, NO is catalytically converted to NO2 and absorbed on the catalyst, while
CO and hydrocarbons are oxidized to CO2 and water. When the catalyst is saturated with NO2, a
reducing agent is passed over the catalyst, which promotes the reduction of NO2 to N2. A small
portion of the fuel for the RE can be used as the reductant or to generate hydrogen (in a dilute
stream) for use as the reducing agent. This process requires the use of multiple swing-beds
(sections) of catalyst to enable the absorption and desorption steps to be carried out without
disrupting the overall engine operation.
3-13

One new process of this type, called SCONOx, is operating commercially on two 27 MW CTs
and one 5 MW CT and achieving emissions of NOx and CO less than 2 ppmv with the larger
units and less than 0.5 ppm with the 5 MW system. The SCONOx catalyst has a potassium
carbonate coating on a substrate. Hydrogen (produced by autothermal reforming of about 0.2%
of the natural gas fuel to the plant) is used as the reducing agent. The developer of the process is
Goal Line Environmental Technologies [5]. Goal Line claims SCONOx operates effectively over
the 300-700F (149-371C) temperature range, and a wide load range. SCONOx presently costs
25-35% more than SCR on a $/ton of NOx removed basis. For a sulfur-bearing fuel, a 2-stage
reactor system is used. The first uses the proprietary SCOSOx sulfur removal catalyst. The
second stage is the SCONOx catalyst. Commercial guarantees are available for CTs, gas-fired
boilers, and gas engines. Goal Line is now developing SCONOx for diesel engines.
A 2-stage system under developmentcalled the lean-NOx trapoperates on a somewhat
similar principal, also using potassium carbonate. In the first stage, NO is converted to NO2,
which is then absorbed in the second stage, where it is reduced to N2 by a reductant (usually a
portion of the fuel). This system is not yet applicable to stationary engines.
Lean-NOx Catalysts
The so-called lean-NOx catalysts also utilize a hydrocarbon reductant (usually the fuel)
injected upstream of the catalystto reduce NOx. In that sense they are similar to SCR systems,
with hydrocarbons used in place of ammonia. While lean-NOx systems are still under
development, it appears that NOx emissions reductions of 80% and both CO and NMHC
emissions reductions of 60% may be possible. However, longer-term testing has raised issues
about the sustained performance of lean-NOx catalysts. Thus far, lean-NOx catalysts are
poisoned by both lube oil and fuel sulfur. Both precious metal and base metal lean-NOx catalysts
are highly intolerant of sulfur. Nevertheless, it is hoped that further R&D will improve the
performance. With the high NOx output of diesel engines, approximately 3% of the fuel may be
required as the reductant.
SO2 Scrubbing
Three relatively simple types of conventional SO2 scrubbing processes may be appropriate for
diesel engines burning high-sulfur fuel. They are a spray dryer-type scrubber using a lime or
limestone slurry, dry sorbent injection into the exhaust gas, and scrubbing with aqueous alkaline
solutions. These processes also scrub some of the particulates from the exhaust gas. All must be
placed after the SCR, oxidation catalyst, and exhaust gas heat recovery unit.
Particulates Control
Mechanical collectors are used to reduce diesel engine soot and other particulates. The designs
include knock-out traps, cyclones, and filters. High-efficiency cyclone designs may separate as
much as 99% of the larger soot particles from the exhaust gas. However, since approximately
90% of diesel exhaust particulates are smaller than 1 micron, the actual total percentage removal
is limited. Filters called trap oxidizers combine mechanical separation and an oxidation
catalystand can reduce particulates by up to 90%.
3-14
4
OTHER FUELS
Introduction
This section mainly discusses several alternative gaseous fuels for gas engines and their impacts
on engine specifications, operation, performance, and maintenance. The emissions impacts
usually are positive; i.e., the low-emissions ratings of the lean-burn engines usually can be
maintained on the alternative fuels. Unless noted otherwise, the discussions apply to DF engines
as well as SI engines.
The fuels of interest include:
Liquefied petroleum gas (LPGpropane and butane and their mixtures)
Field gasunprocessed natural gas as it comes directly from the gas well
Biogasany of the combustible gases produced by biological degradation of organic wastes,

such as landfill gas (LFG), sewage digester gas, and animal waste digester gas.
Industrial waste gases (e.g., flare gas and process off-gases from refineries, steel mills,
chemical plants, etc.)
Manufactured gasestypically low-Btu gas (LBG) and medium-Btu gas (MBG) produced as
the primary products or coproducts of gasification and pyrolysis processes.
Generally, all of these fuels can be considered opportunity fuelsincluding manufactured gases,
when they are produced by thermal conversion of waste fuels (residual oil, petroleum coke, scrap
tires) or biomass.
All of the above fuels are already in use with gas engines. The applications occur under
appropriate economic circumstancesalmost invariably at or near the sites at which they are
produced. Unlike pipeline quality natural gas, these fuels are not transported significant distances
by pipeline.
Alternative liquid fuels for diesel engines comprise a different case. In this case, any alternative
fuels commercialization effort would include developing alternative fuel-capable engines with
competitive or superior first costs, O&M costs, fuel economy, and environmental performance
plus commercial engine manufacturing commitments, development of a fuel distribution
infrastructure, and competitive fuel costs.
Two of the alternative diesel engine fuels mentioned in Section 3, dimethyl ether (DME) and
naphtha-water emulsions, appear to have satisfactory CI characteristics that enable their use
4-1

Other Fuels
directly in existing diesel engines with only minor modifications. They also appear to have good
emissions reduction potential relative to distillate fuel. Additional information on DME is
discussed here to augment the earlier Section 3 discussion. Sufficient information on the
naphtha-water emulsion option was not available for further discussion in this report. The other
alternative fuels that have been investigated for diesel engines are not discussed further here,
since interest in their use has waned for a variety of technical and economic reasons.
Of course natural gas remains the premier alternative fuel for diesel engines. As discussed in
detail in Section 2, its use requires a diesel engine equipped for operation as a DF engine.
Alternative FuelsCharacteristics and Considerations [1-3]

The first concern with waste gases is fuel quality; namely: cleanliness (i.e., content of
troublesome contaminants), heating value, combustibility, detonation characteristics, and flame
temperature relative to natural gas (which will impact the NOx output).
Representative characteristics of some of the other gaseous fuels that can be used in SI and DF
engines are summarized and compared with natural gas in Table 4-1.
Industrial waste and manufactured MBGs and LBGs are not included in Table 4-1, because their
compositions vary widely, depending on their sources. They typically contain H2 and/or CO.
Other common constituents are CO2, water vapor, one or more light hydrocarbons, and H2S or
SO2. Hydrogen and CO have LHVs of approximately 292 Btu/scf (@ 60F) and 322 Btu/scf (@
60F). Therefore, the presence of any hydrocarbons would raise the LHVs of CO-H2 mixtures to
higher levels. Diluents, such as CO2 and N2, reduce the LHV. LBGs with LHVs as low as 65 to
120 Btu/scf are used in some CTs in Japan and assorted REs worldwide.
The concerns with alternative fuel gases in general center around the following characteristics:
Volumetric heating value. Since engine fuel is delivered on a volumetric basis, fuel delivery
volume increases as heating value decreases; engine derating may occur at the full load. This
is more pronounced for naturally aspirated engines, and may be compensated partly or
totally with a turbocharged engine, depending on the air requirements.
Detonation tendency
Autoignition characteristics
Contaminants that may impact engine components life/engine maintenance or result in air
pollutant emissions that require additional control measures
4-2

Other Fuels
Table 4-1
Characteristics of Natural Gas and Selected Alternative Fuels for Gas Engines [1]
Pipeline
Natural Gas
100%
Propane
Butane
Digester
Gas
Landfill
Gas
CH4, %
81-97
35-65
40-60
C2H6, %
3-15
C3H8, %
0-3
100
C4H10, %
0-0.9
100
Higher CxHx, %
0-0.2
CO2, %
0-1.8
--
--
30-40
40-60
N2, %
0-14
--
--
1-2
0-13
CO, %
--
--
--
--
--
0-0.1
--
--
Chlorine, g/kJ
--
--
--
18.9
18.9
Sulfur, g/kJ
--
--
--
18.9
18.9
Moisture, g/m
--
--
--
1.85
1.85
Oil, g/m3
--
--
--
0.035
0.035
Particulates: >0.4 m
--
--
--
<0.4m
--
--
--
7.1
7.1
832-1075
2300
3025
320-591
363-545
MJ/m3
31-40
86
Caterpillars specifications for the G3600 SI LFG engines.
113
11-22
13-20
H2, %
Maximum Contaminants
LHV, Btu/scf
a
100%
Source: SFA Pacific, Inc. and Caterpillar [1]
The impacts of the foregoing characteristics on engine rating/derating, efficiency, needs for
pretreating the fuel gas, and requirements/options for post-combustion treatment of the exhaust
gas for emissions reduction.
Hydrogen-containing fuels require special consideration, because of hydrogens unique
flammability and explosion characteristics. The protocols for handling and firing H2-containing
fuels may vary somewhat among RE and CT manufacturers. Hydrogen considerations for RE
applications may be different from those for CTs due to the REs lower fuel delivery pressure
requirements, special considerations relative to turbocharging and detonation, and other REspecific issues. As noted in Section 2, under Fuel Issues, Caterpillar recommends that fuels with
more than 50 vol% H2 not be used in its engines.
Even though CTs operate at higher fuel delivery pressures than REs and burn the fuel differently,
an indication of the issues for hydrogen-containing fuels can be derived from GEs CT protocols
4-3

Other Fuels
for using these fuels. GE separates the protocols for fuels containing H2 into three categories
according to the H2 content by volume: less than 5%, 5-30% and over 30% [4]. If the fuel
content is less than 5% H2, no special precautions are necessary, and starting the turbine on this
fuel is permissible. For fuels containing 5 to 30% H2, an alternate starting fuel is required, and a
special exhaust system purge cycle is incorporated into the CT starting sequence. Additional
precautions must be taken relative to high-point venting and H2 leak prevention. In addition, if
the fuel contains more than 30% H2, electrical devices used in the fuel gas and turbine
compartments should be certified for use in Group B atmospheres.
The main fuel contaminant issues concern acid gas components (H2S, halogen acids, HCN);
ammonia; salts and metal-containing compounds; organic halogen-, sulfur-, nitrogen-, and
silicon-containing compounds; and oils. In combustion, halogen and sulfur compounds form
halogen acids, SO2, some SO3, and possibly some H2SO4 (sulfuric acid) emissions. The acids can
also corrode downstream equipment. A substantial fraction of any fuel-nitrogen will be oxidized
to NOx in combustion. Solid particulates must be kept to very low concentrations to prevent
corrosion and erosion of hot path components. If any fuel contaminant levels exceed the
manufacturers specifications, various fuel scrubbing, droplet separation, and filtration steps will
be required. Landfill gas in particular typically contains chlorine compounds, sulfur compounds,
organic acids, and silicon compounds which dictate pretreatment.
LPG
LPGs are composed primarily of propane and/or butane. Propane can be used in natural gas
engines, with retardation of ignition timing and other appropriate adjustments, and is sometimes
used as a backup fuel where there is a possibility of an interruption in the gas supply. It should
always be fed as a vapor to the engine. However, its use in both naturally aspirated and
turbocharged high-compression ratio engines may be limited to non-lugging applications. The
propane should be 95 vol% pure with an HHV of 2,500 Btu/scf, and with the remaining 5% not
heavier than butane. Cooling the propane before use may be required to condense out excess
Butane. However, propane meeting the desired specifications should be available commercially.
Butane is recommended only for low-compression ratio, naturally aspirated engines. The timing
should be retarded from the setting used for natural gas. The exact setting is found by trial and
error until detonation is eliminated.
LPGs are considered wet gases since liquids can condense out of them under normal CT fuel
systems operating conditions. Design considerations for the use of wet fuel gases center around
the prevention of condensation and the ingestion of liquid slugs by the engine, which cause
power and emissions spikes and misfiring. Heat tracing of piping and jacketing of valves is
required to prevent condensation during system startup. Recirculation of hot LPG down to the
fuel gas stop valve assists line heating, but is not a substitute for heat tracing. There are
additional design details related to condensation prevention, as well as safety considerations.
4-4

Other Fuels
Field Gas
Field gas often contains more than 5 vol% of heavy ends (butane and heavier), as well as water,
salts, and H2S. It must be scrubbed to remove the liquid heavy ends, H2S, and inorganic material.
Since the gas will contain some propane, and some C4+ vapors will remain in the gas, cooling the
gas may be required to reduce the concentrations of C4+ components. A lowered engine
compression ratio must be used. Either a naturally aspirated or turbocharged engine may be
used, but the ignition timing may have to be retarded to eliminate detonation.
Biogas
LFG gas and digester gas are also referred to as biogas, since they are both products of the
anaerobic decomposition of organic matter. Both are predominantly mixtures of methane and
CO2 with HHVs typically in the range of 300 to 700 Btu/scf. LFG also contains a variety of
troublesome contaminants, as discussed below. Generally the waste gas quantities available
limit their use to SI REs, small CTs, and small boilers. Since biogases are produced essentially at
atmospheric pressure, they must be compressed for delivery to the user. After compression,
cooling and scrubbing or filtration are required to remove compressor oil, condensate, and any
particulates that may have been entrained in the original gas. Scrubbing with a caustic solution
may be required if acid gases are present. Because of the additional requirements for raw gas
treatment, biogas-based (particularly LFG-based) RE power generation facilities are more costly
to build and operate than natural gas-based power generation with basically the same gensets.
Depending on local utility electricity rates and attitudes toward LFG power generation, LFGpower generation in particular may not economical without government incentives.
Digester Gas
Gases produced by the anaerobic digestion of sewage, animal manure (e.g., feedlot wastes),
slaughterhouse wastes, and other organic wastesin large digestion tanksmay contain a small
amount of sulfur as H2S, which must be removedtypically by scrubbing. After scrubbing the
gas must be dried. Chilling may be required before drying to maximize moisture removal.
RE power generation plants at digestion facilities frequently are cogeneration facilities.
Municipal sewage treatment plants, for example, typically can utilize the REs waste heat for
process and building heating needs.
Data on the total sewage digester gas-to-electric power capacity in the United States was not
obtained for this report. However, it is believed to be substantial. For example, according to
Waukesha, in California alone the digester gas-based RE capacity is more than 110 MW
(comprised predominantly of Waukesha engines).
LFG
Today, approximately 200 LFG-to-energy plants are in operation. The combined electric power
generation from these plants may now exceed 400 MW. Approximately 25% of these plants may
be exporting LFG as fuel gas (primarily boiler fuel) to nearby users. The Solid Waste
4-5

Other Fuels
Association of North America (SWANA) projects thatif the federal and state governments
extend tax credits and subsidiesa total of 400 plants could be in operation by 2004 and a total
of 600 plants in operation by 2009 [5]. Caterpillar, Cooper Energy Services (Superior), and
Waukesha appear to have the most LFG RE installations in the U.S. Fairbanks Morse also has
some engines at landfills. Jenbacher (a leader in biogas RE plants in Europe) has been marketing
its biogas engines aggressively and successfully in the U.S. over the past few years, and now
claims the worlds largest RE-based LFG power planta 13.5 MW facility in Chicago, Illinois
using eight 1,688 kW SI engines.
There are of course also numerous LFG RE power/cogeneration systems in operation worldwide.
Because of their typically remote locations, LFG facilities usually do not offer cogeneration
opportunities. Economic exploitation of LFG requires a sufficiently large underground mass of
decomposing waste to support at least one engine for a reasonable project lifetime.
The Landfill Gas Association of the U.K. is targeting 800 MW of LFG generating capacity in
operation by 2005. The U.K. reportedly had 175 MW operating by 1998. Since then,
commissionings and orders for new projects bring the current U.K. LFG generation capacity
total to 650 MW. Caterpillar and Jenbacher are the market leading LFG engine vendors in the
U.K., followed by Deutz [6].
A 1996 EPA ruling requires large landfills in the United States to burn their LFG to produce
electricity. Landfills unable to market the electricity or use it themselves are allowed to flare the
gas (presumably with low-NOx burners). The rule is intended to reduce landfill emissions of
methane, as well as smog-forming and toxic pollutants such as benzene. The rules apply to
landfills that emit methane and other volatile organic compounds (VOCs) in excess of 50
megagrams per year. Consequently, it affects only the biggest 4% of existing landfills and 5% of
the new ones that will be built by 2002about 280 landfills in all, according to the EPA [7]. In
conjunction with this ruling, the EPA has established the Landfill Methane Outreach Program,
which tries to match landfill owners with LFG-to-energy developers. According to SWANA, the
program is doing a good job of bringing these parties together [5].
In many LFG RE cases, natural gas is used as a backup fuel or is blended with the LFG as
needed to maintain a high load factor or desirable fuel characteristics. LFG characteristics may
vary over timeincluding seasonally, due to the impact of changing ambient temperatures on
condensation within the LFG collection network (piping).
LFG collection and treatment systems vary in design and complexity, depending on the landfill
(the gas quality and volume of gas used) and the engines that use the fuel. Nevertheless, in
addition to compression of the raw gas, the following operations typically are also needed:
gas/oil and/or gas/entrained water droplets-separation, removal of entrained solid particulates,
cooling/chilling to condense moisture and any condensable organics, gas/condensate separation,
and filtration. The techniques and sequences for accomplishing the various purification steps
may vary among plants.
Due to the four categories of contaminants that it contains, all of which are detrimental to engine
life, landfill gas (LFG) represents a rather special and challenging case of waste gases. The LFG
contaminant categories and their considerations relative to LFG fueling of gas engines are as
follows [1]:
4-6

Other Fuels
Halogen (chlorine and fluorine) compounds primarily VOCs from industrial and
household solvents and chlorofluorocarbons (CFCs) from aerosol propellants and
refrigerants. In combustion, these compounds produce hydrochloric acid (HCl) and
hydrofluoric acid (HF). These acids can be introduced into the engine oil from blowby gases
and can cause corrosion of engine components if they condense. Since acids can also affect
the lubricating oil, selection of lube oil with extended acid-neutralizing capabilities is critical.
Oil analyses at regular intervals may be necessary to ensure that the proper oil is being used
and that metals from engine wear are not showing up in the oil. Lube oil change intervals for
LFG engines will probably be shorter than the same engines on natural gas.
H2S and other volatile sulfur compounds formed by the decomposition of organic wastes. In
combustion these compounds form SO2 and a small amount of SO3, which can also form
corrosive compounds in the engine oil, as well as sulfurous and sulfuric acids which can
corrode the exhaust system components at lower temperatures.
Water vapor. Unprocessed LFG is typically saturated with water vapor, which may combine
with organic compounds to form organic acids. To prevent corrosion from water-born acids,
the moisture content of LFG is reduced during gas processing.
Silicon from particulate matter and siloxanesorganic compounds found in many consumer
products (e.g., personal care products such as deodorants). Most particulates are filtered out
during gas processing. Another technique for removing particulates is to inject lube oil into
the compressor. The oil serves to cool the compressor and to capture all of the entrained
particles before they reach the gas/oil separator.
Siloxanes can appear in trace amounts in LFG. Some cases of reduced engine component
life (e.g., worn valve seats and valves) have been documented due to silicon deposits in
combustion chambers and exhaust systems caused by siloxanes. Although siloxanes can be
removed by gas processing, the high associated cost generally discourages doing so in the
United States. Therefore, engines must be able to tolerate some silicon deposits. Jenbacher
has indicated privately that problems related to siloxanes seem to be more pronounced with
larger bore, higher performance engines; e.g., 7.5-inch bore compared with 5.3-inch bore.
Industrial Waste Gases and Manufactured Gases [1,2]

Industrial waste gases that are commonly used as both RE and CT fuels include refinery offgases
and process offgases. Refinery offgases typically contain such components as H2, CO, light
hydrocarbons, H2S, and ammonia, as well as CO2 and N2. Process offgases include a wide variety
of gaseous compositions. Blast furnace gas (BFG) and coke oven gas (COG) are two examples
of process offgases that are used as CT fuels. BFG contains mainly CO2 and N2 with CO and
some H2. COG contains N2, CO2, H2, CO, and light hydrocarbons. Generally, waste gases are
MBGs and LBGs. BFG and COG typically have very low LHVsin the 65 to 120 Btu/scf range.
While MBGs generally can be used without significantly derating an engines, derating may be
necessary with LBGs.
Depending on their origins and contaminants, these gases could require pretreatment comparable
to that applied to raw LFG before being suitable for use in REs. Particulates (e.g., catalyst dust),
oils, condensable gases, water, C4+ hydrocarbons, acid gases, etc. would have to be removed.
4-7

Other Fuels
Process off-gases are usually available at pressures of a few atmospheres or higher, which are
generally satisfactory for piping to an on-site or nearby RE facility.
The term manufactured gases is used here to designate MBGs and LBGs that are deliberately
produced in small quantities for fuel use, such as town gas (producer gas) or the product gas
from a small gasifier dedicated to a particular application. For example, during World War II in
parts of Europe and China, small charcoal and wood gasifiers were widely employedattached
to the backs of trucks and automobilesto produce LBG which powered the vehicles engines.
Those fuel gases are estimated to have had LHVs in the range of 70 to 130 Btu/scf. In some
Third World regions today, small, simple fixed-bed biomass, charcoal, and coal gasifiers are
used to produce a similar LBG fuel for stationary REs and other applications.
The Swiss developers of a relatively new waste pyrolysis process (Thermoselect) that produces
syngas (a mix of H2, CO, and possibly some methane) has been seeking large gas engines
suitable for operation on the gas for projects that are under development. Thermoselect has been
working with Jenbacher for about three years and has a 1.6 MW Jenbacher SI engine operating
on syngas at the developers large pilot plant in Italy. The Thermoselect syngas contains
approximately 40% H2, 40% CO, and 20% CO2 and has an LHV of about 250 Btu/scf. Jenbacher
also has supplied twelve 540 kW gensets (6.5 MW total) to a coke manufacturer in Spain for
operation on coke gas that contains up to 50% hydrogen. The engines were specially modified
for this fuel.
DMEAn Alternative Diesel Engine Fuel [8,9]

Amoco (a major producer of natural gas) and Haldor Topsoe (a process engineering and catalyst
manufacturing company) have jointly investigated the combustion of DME (CH3OCH3) as a
clean-burning, alternative diesel fuel. DME is produced from commercially in a two-step process
involving catalytic of methanol from syngas, followed by dehydration of the methanol to DME.
The required syngas is produced by reforming natural gas or heavier hydrocarbons. Haldor
Topsoe has developed a new one-step catalytic process, which promises lower DME production
costs with sufficiently large-scale facilities. Today DME is used primarily as an aerosol
propellant due to its environmentally benign characteristics.
Amoco and Haldor Topsoe believe that DME may have a future on the basis of its potentially
higher fuel efficiency, lower engine maintenance, and overall better performance than diesel oil,
even though DME will be more expensive. Although DME from the new process still would not
be competitive with diesel fuel in the present U.S. and European markets, Amoco believes that
DME can compete with LNG on a delivered $/MMBtu basis in Japan. Apparently the two
companies are now concentrating on DME synthesis at remote natural gas resources as a way of
reducing the syngas production costs and economically utilizing gas resources that might
otherwise remain unexploited.
The normal boiling point of DME (at atmospheric pressure) is -13F (-25C), so it must be kept
under pressure at ambient temperatures to be stored in the liquid state. Its handling
characteristics are claimed to be very similar to those of LPG. DME has a higher energy density
(Btu/unit volume) than methanol, but only half the energy density of conventional diesel fuel;
namely, 67,000 Btu/gal versus 133,000 Btu/gal (LHV). The cetane number (a measure of the
4-8

Other Fuels
ignition quality of diesel fuel) of DME is 55 to 60, compared with 40 to 55 for conventional
diesel fuel.
Apparently the DME investigations so far have concentrated on truck diesel engines. The DMEfueled diesel engines had efficiencies comparable to the diesel-fueled engines. Also, engine noise
is lower with DME. Neat DME (100% pure) is reported to produce only 25% of the NOx that
diesel fuel produces, and essentially zero soot, while its CO and UHC emissions are comparable
to diesel fuel. With 30% exhaust gas recirculation, NOx emissions reductions of 90% were
observed with no loss in efficiency and no soot, but with a 70% increase in CO emissions. The
addition of water to the DME decreases NOx and soot further, but increases CO and UHCs.
Finally, the relative cradle-to-grave greenhouse gas emissions (CO2, CH4, and N2O) of DME
are reported to be close to those of diesel oil.
The CI and emissions characteristics of DME suggest that it is worth investigating as an
alternative pilot fuel for DF enginesparticularly micropilot DF engines.
4-9
5
ECONOMICS
Introduction
This section provides an overview of representative equipment, installed plant, operating, and
maintenance (O&M) costs for reciprocating engines. The cost information presented here is
based on numerous contacts over the past few years with engine manufacturers, their
distributors, packagers, and switchgear equipment suppliersas well as published information
on specific RE projects and their costs.
The focus is on natural gas-fueled distributed generation applications in which one or more gas
engine gensets operates in parallel with the utility grid. This covers both the case of exporting
power to the grid and that of satisfying a portion of the site's power requirements while
purchasing the balance from the utility. Grid-paralleled operation typically represents the most
complicated and expensive installationin terms of the utility interface requirements.
The simplest installation would be island operation without any grid backup; i.e., no utility
interface. The next step up from island operation would be an emergency standby or peakshaving/peak-sharing situation in which the on-site power generation equipment is operated
when the site-load is disconnected from the gridby appropriate transfer switches.
Of course cogeneration adds dimensions of complexity and costs, depending on the waste
utilization scheme. Cogeneration is briefly addressed in this section.
The primary focus is on RE unit sizes up to approximately 5 MW. Multiple unit installations are
briefly considered in terms of paralleling switchgear and utility grid interconnection
requirements.
Equipment costs are presented as budget-level retail prices (f.o.b.). These prices may vary, much
like prices on automobiles due to several factorsincluding competitive pressure among
manufacturers. Purchasers should anticipate the potential to negotiate downward from list prices.
Installed plant costs are built-up from the equipment costs plus an additional cost of installation.
The equipment costs covered include gensets with basic controls, paralleling switchgear, and the
utility interconnection equipment. Installed plant costs are discussed in terms of the typical range
of costs above the equipment costs incurred in installing RE plants. Finally, the approximate
costs of various catalytic exhaust gas treatment processes for emissions reduction are briefly
discussed.
5-1

Economics
O&M considerations such as service intervals and level of service are discussed, as well as
representative O&M costs. In many, if not most cases, the RE owner will have the option of a
maintenance service contract, as well as self-maintenance.
REs Versus CTsThe Competitive Climate

As indicated in previous sections of this report, RE manufacturers have been under tremendous
pressures during the past decade to make their gas engine products competitive with CTs on a
first cost basis; i.e., $/kW selling price. In addition they are under pressures to reduce their RE
emissions levels to those of CTs and reduce maintenance costs.
On all scores they have partially succeeded. SI genset prices are on par with or lower than CT
genset prices at sizes up into the 2 to 5 MW range, depending on specific manufacturers and
models compared. However, in contrast with the positive economies of scale that CTs exhibit
with increasing unit size, large REs are saddled with diseconomies of scale. As engine speed has
to be decreased with increased cylinder size and power outputs, the engines become more
massive and more expensive per kW.
In addition, the electric generating efficiencies of gas engines are 30-50% higher than CTs of
similar size. At unit sizes above about 800 kW, lean-burn gas engine electric power generation
efficiencies are typically higher than 36% (LHV) and some are as high as 39 to 42%. The only
small CTs that reach these efficiency levels are aeroderivative CTs larger than about 25 MW,
Solar Turbines new Mercury 4 MW (recuperated) small industrial turbine (developed under
DOEs ATS Program), and two 1.4 MW recuperated CTs that are under development in Holland.
However, the non-fuel O&M costs of REs typically tend to be higher than those of CTs.
In a comparative analysis of the cost of producing electricity from REs versus CTs, only modelspecific and site-specific assessments will show how the above advantages and disadvantages
balance out. The economics also are highly dependent on the expected duty cyclee.g., standby,
peak-shaving, intermediate, or baseload. In some cases, the deciding economic factor could be
the cost of post-combustion emissions controls that might be perceived as necessary for REs to
meet regulated emissions limits for a potential project.
Although it appears that the lowest gas engine NOx emissions levels achievable without catalytic
exhaust gas treatment presently are about 2-6 times the lowest levels achievable by many CTs,
there is strong potential for R&D over the next 3-8 years to significantly reduce NOx and other
RE emissions levelswithout catalytic exhaust gas treatment.
Capital Costs
The total capital costs of RE plants can be estimated from the costs of the primary equipment;
namely, the generator sets, switchgear, utility interconnection equipment, and the cost of
installing the equipment as a finished facility. These components of plant costs are discussed
next. The discussion is generalized and is utilizes representative equipment costs to illustrate the
approximate magnitudes of the various cost components. Consequently, the information outlined
5-2

Economics
below is useful in developing preliminary and scoping estimates. If greater numerical precision
and certainty in the results is desired, it would be necessary for the project evaluator to identify
candidate RE models and obtain model-specific performance and price information from the
respective manufacturers, distributors, and packagersand to develop appropriate site-specific
plant cost estimates using more rigorous methods.
Budget-Level Equipment Costs

An overview of typical factory (including distributor) prices (equipment only, f.o.b.) of RE
gensets (based on continuous ratings) is presented in Table 5-1. The prices are for skid- or framemounted gensets with basic controls. Paralleling switchgear and the utility interface package
(protective relays, breakers, etc.) are not included in these prices. The prices include a radiator or
heat exchanger. The indicated prices are for small orders; i.e., one to a few gensets. In the case of
large orders, it should be possible to negotiate appropriate volume discounts.
Diesel engines are less expensive than SI engines, mainly because of the higher power densities
of diesel engines, and secondarily because of the additional work required to modify the parent
diesel engine components for SI gas firing. Hence the growing interest in liquid spark
micropilot dual-fuel (DF) engines, which are capable of diesel engine power densities and
efficiencies, and the low NOx of lean-burn SI engines. A preliminary, non-official estimate
(based on sister-SI genset budget-level prices) of the price of the Superior 2400 DF engine that is
under development is included in Table 5-1, as a projected possibility.
The diseconomies of scale in going from the smaller-bore high-speed engines to the larger-bore
medium-speed engines are evident, if one examines the data in Table 5-1. On the other hand,
where a particular series of SI engines is based on a diesel engine that enjoys the economies of
relatively high-volume production (e.g., the 720 Wrtsil NSD 16V and 18V34SG SI engines
and the model 16V and 18V32 diesel engines), the prices may be competitive with some higherspeed engines.
Also, the range in prices shown for any given class of engines represents the spread in prices
encountered by the authors of this report over the size-range indicated for that class. This
spread reflects both the variations in pricing among manufacturers and the inevitable
uncertainties built into budget-level prices. Therefore, for preliminary cost estimating and
scoping evaluations, prices from Table 5-1 should be used with that understanding.
Figure 5-1 shows a relative comparison of RE and CT prices up to about 7 MW in size. This
illustrates the fundamental differences between engines and turbines as a function of size. As
noted earlier, the values shown are list prices and do not necessarily capture all the equipment
costs need for installation (e.g., a gas compressorif required) or the potential for discounting
from list prices.
5-3

Economics
Figure 5-1
RE and CT Price Comparison
5-4

Economics
Table 5-1
Representative Capital Costs of 60 Hz Diesel and Gas Engine Gensets
Type
Diesel Engines
Speed
Class
High
Speed,
rpm
Size range
(continuous
rating), kW
Capital cost,
$/kW f.o.b.
a
(1999 $)
Notes
1,800
175-2,300
200-320
1,200
1000-3,000
300-450
900
1,500-4,300
300-450
720
5,100-6,800
575
600
2,500-3,800
600-630
514
3,200-9,500
560-660
1,800
50-60
250-300
SI (autoderivative)
1,800
100-1,800
350-500
SI (4-stroke)
1,500
300-2,700
500-600
SI (4-stroke). Requires a gearbox coupled

with an 1,800 rpm generator.
1,200
400-2,500
400-600
SI (4-stroke)
1,200
1,100-3,300
335-400
Micropilot DF (4-stroke, under

development)
900
1,300-2,600
790550
SI 2-stroke OP; economy
(distillate fuel oil)
Medium
SI and Dual-Fuel
Gas Engines
High
Medium
Standby ratings are 20-30% higher, with a

proportionate inverse effect on the price
of scale with more cylinders
900
1,600-3,200
770550
Micropilot DF OP 2-stroke; economy of

scale with more cylinders
900
1,100-4,000
450-550
SI (4-stroke)
720
4,600 & 5,200
450-475
SI (4-stroke). Two sizes only.
720
5,820
500-600
Micropilot DF. $600/kW for one unit;

$500/kW for order of several units
514
5,600-8,400
650-680
Micropilot DF (4-stroke)
400
1,800-6,000
>650
SI and DF (Discontinued CB product line)
Skid- or frame-mounted unit with basic controls. Includes radiator (not installed).
Switchgear and Utility Interface (Protective) Package

Table 5-2 indicates representative budget-level prices of automatic transfer switches, paralleling
switchgear, and basic utility interface equipment (protective relays, load control and
synchronizing with the grid, integration with master control of the genset system, etc.). There can
be considerable variation in pricing of switchgear and utility interface packages among
equipment manufacturers. Pricing can also be influenced by the requirements of utilities for
protective relaying. The prices indicated are on the optimistic side.
5-5

Economics
Table 5-2
Representative Switchgear and Grid-Interconnection Equipment Prices (1999 $)
Genset Unit Size, kW:
Voltage Level
50-60
100
300
500
1,000
2,000
5,000
Low
Low
Low
Low
Low or
Medium
Medium
Medium
20
20 or 100
50
20
For Isolation from Grid:

Automatic Transfer Switch, $/kW
70
40
30
For Grid-Paralleling:
Paralleling switchgear, $/kW
(one required per unit paralleled)
100 (for 1-4

units) a
260
90
60
40
25
12
Utility interface package, $/kW

(one required per system of units
paralleled with each other and
the grid)
Embedded
controller
with
switchgeara
260
90
60
40
25
12
a
b
Low voltage = up to and including 600 volts. M medium-voltage = 4,160 to 15,000 volts.
Not yet Underwriter Laboratories approved.
The diseconomies of scale in switchgear and utility interconnection equipment for small-scale
(i.e., 500 kW and smaller) gensets are evident in the data in Table 5-2. The high cost of this
equipment at these small sizes is one of the main reasons that there are relatively few small
gensets operating in parallel with the grid.
The 50 to 60 kW genset is a unique case. These units are autoderivative SI engines. An
inexpensive new electronic control package with embedded paralleling switchgear and utility
interconnection and protective functions is available from a few packagers. While this new
control package apparently is not yet approved by Underwriter Laboratories, it appears to be
comparable to the types of paralleling switchgear and utility interconnection functionality that
microturbine developers/manufacturers claim are included with the power electronics of
microturbines. If the IEEE standards that are under development for utility interconnections in
distributed generation encourage the implementation of such controls, the economics of smallscale distributed generation would be significantly improved.
For paralleling multiple units with each other and the grid, a paralleling switchgear package
(engine genset control and synchronizing) is required for each unit, plus one utility interface
package for the whole system. The latter includes integration with the master control for the
system. These packages are housed in cabinets that are commonly called cubicles.
The Table 5-2 data indicate that there are trade-offs to be considered in configuring a RE system.
For example, consider two options for a 500 kW baseload SI engine system paralleled with the
gridone 500 kW genset versus five 100 kW gensets. The equipment costs for the single large
unit add up to approximately $545approximately $425/kW for the engine (an average from
Table 5-1) plus $120/kW for the switchgear and grid-connection. The equipment cost for the 5unit system add up to approximately $745/kWbased on five gensets units at $425/kW each,
five 100 kW paralleling switchgear cubicles at $260/kW each, and one 500 kW interface
5-6

Economics
package at $60/kW. While the redundancy of five units offers the assurance of high availability,
in this particular example (chosen at random) its up-front cost is high.
One way of reducing the capital outlay for equipment is purchasing used and refurbished
equipment. In addition to used (as is) equipment that can be found occasionally, it should also
be noted that rebuilt and remanufactured REs are available from a number of companies
including independents, some manufacturers, and some distributorsat attractive prices. In
many cases, the engine rebuilders are able to incorporate upgrades (e.g., new turbochargers and
ignition systems) that improve the performance of the engines. Also, diesel engines rebuilt as SI
engines occasionally are available from a smaller number of rebuilders. Good sources of
information on engine rebuilding experts include manufacturers, distributors, and major parts
suppliersas well as some municipal electric utilities, operators in the gas and oil fields, and
owners/operators of large marine diesel engines. Similarly, used switchgear and grid-protective
equipment can sometimes be found. Of course, there are trade-offs to be evaluated between
equipment cost savings and shorter life expectancy for the used equipment, depending on its
condition and level of performance relative to new state-of-the art equipment.
Cogeneration Equipment
The costs of cogeneration equipment vary considerably, depending on the cogeneration
application. A discussion of the myriad of configurations and costs is beyond the scope of this
report. Generally, to keep the genset facility costs separate from the downstream cogeneration
equipment requirements and costs, it is helpful to draw the boundaries around the power
generating facility to include only the waste heat recovery equipment. Estimates of added costs
of this equipment for single RE units are indicated in Table 5-3.
Table 5-3
Order of Magnitude Costs for RE Waste Heat Recovery Equipment
Heat Recovery Equipment
500 kW RE
5,000 kW RE
Hot water
$40-$70/kW
$20-$30/kW
Steam and hot water
$70-$120/kW
$40-$70/kW
Post-Combustion Catalytic Emissions Control Technologies

The approximate equipment costs of the technologies discussed in Section 3 are summarized in
Table 5-4. There are economies of scale with SCR, and there can be significant diseconomies of
scale with SCR systems with REs smaller than about 2,000 kW. As the plant scale and SCR size
decrease, the SCR instrumentation and control cost component changes relatively little. If the
local regulatory authorities require extensive emissions data logging, storage, and reporting, this
requirement adds significantly to the cost of the SCR controlsor any other emissions control
system for that matter. Hence the desire of RE power plant proponents to avoid SCR. According
to Miratech Corp.(a supplier of emission control equipment for REs), the RE unit size threshold
5-7

Economics
below which SCR is not economical has gradually decreased over recent years and is now
approximately 700 kW.
Table 5-4
Approximatea Costs of Catalytic Emissions Control Technologies (1999$)
Process
Cost, $/kW
3-Way Catalytic Converter
16-19
SCR
80-200
Oxidation
14-16
Catalyst included
Source: SFA Pacific, Inc. based on data from Manufacturers of Emission Controls Association (MECA).
Total Installed Costs

As a rule of thumb, installed costs for simple cycle RE power generating plants lie in the range
of 1.5 to 2.0 times the total equipment cost, not including land. These multipliers can be used in
preliminary evaluations and scoping studies to estimate the likely range of installed plant costs
for a particular project. By this method, the single 500 kW unit in the previous example would
have an estimated installed cost of $818/kW to $1,090/kW.
A more dependable estimate could be made by traditional methods of project cost estimating,
based on site-specific details and the estimated costs for project engineering, equipment,
controls, facilities, site preparation, construction, and mechanical and electrical installation
workas well as land, project development and permitting expenses, interest during
construction, contingency, etc.
Representative turnkey plant costs are as follows:
$800-$1,000/kW for high-speed and medium-speed gas engines and diesel engines larger
than about 700 kW (without cogeneration)
$1,200-$2,000/kW for cogeneration installations (which may include the downstream heating
and cooling equipment).
The turnkey plant costs do not include project development costs, permitting costs, legal costs,
financing costs, and land costs. These fall in the soft costs category. Soft costs can be as high
as 25-50% of the turnkey plant costs for projects that involve a considerable development and
permitting effort.
Operating Costs
Operating costs are comprised of the cost of fuel, consumables, operating labor, and
maintenance.
5-8

Economics
Fuel
Fuel costs vary with fuel type, location and size of the plant (fuel demand), season, and purchase
arrangementsi.e., whether interruptible or non-interruptible, spot market, etc.
The net electric generating efficiencies (or net heat rates) of the engines to be usedas a
function of load service expecteddetermine the fuel consumption. Consequently, to evaluate a
proposed a plant that may be operated in a mode other than full-load baseload operation, it is
important to have some information on the load-profile of each engine over time (or the
approximate time spent at different loads) and the engine efficiencies at those loads. The
efficiencies of gas engines decrease gradually as load is decreased from full load.
Generally, the efficiencies of high-speed diesel engines decline less rapidly than gas engines.
However, as discussed earlier in Section 2, the efficiencies of most medium- and low-speed
diesel engines increase slightly up to a maximum at approximately 75% load, and then decrease
continuously as the load is decreased further. This characteristic is the result of the turbochargers
usually matched to the larger diesel engines.
While the efficiency versus load profiles vary somewhat because of numerous differences among
engineseven those of comparable ratingsspecific data for the candidate models should be
obtained if the differences are deemed to be potentially critical. For example, there probably are
performance, cost, and reliability trade-offs involved in the case of a prospective project in which
the load will cycle and the plant capacity can be satisfied by various numbers of gensets of
different sizeswhere one or more of the units might be shut down so that the others can be run
at higher loads and higher efficiencies.
A representative spread of part-load heat rate increases for gas enginesrelative to the full load
heat rateis approximately as follows:
75% load: 1.02 to 1.08 x the full load heat rate
50% load: 1.06 to 1.17 x the full load heat rate
The spread reflects variations among engines.

When calculating fuel costs, it is important to determine whether fuel consumption is based on a
lower or higher heating value. Engine efficiency or heat rates are often quoted in terms of lower
heating value. Natural gas is normally sold on the basis of higher heating value.
Consumables
The only consumables of significant economic impact for engine systems are fuel costs, engine
lubricants, water used in cogeneration and combined-cycle systems, and emission control
catalysts and their associated reductants (ammonia, urea, or a portion of the plant fuel
depending on the catalytic process).
5-9

Economics
Lube oil costs are significant for REs. In the U.S., lubricating oil costs approximately 3-6 times
the price of unleaded gasoline. Typical values of lube oil consumption during engine operation
are 0.3-1.0 g/kWh. That does not include the additional cost of oil changes, the frequency of
which depends on the severity of operation (fuel, load, cycling, frequency of starts and stops,
etc.). Manufacturers should be consulted for their engine-specific recommendations on oil
changes. Oil sump capacities may range from about 0.05 to 0.2 gal/kW, depending on the engine
size. Oil change intervals may vary from 250 hours to more than 1000 hours, depending on the
manufacturer, model, and service duty.
For cogeneration and combined cycle systems, water makeup to the cooling water and steam
systems could be an important cost consideration. Assume that approximately 1.2 gpm of water
makeup is required per 1,000 lb/hr of generated steam. This makeup quantity includes both
cooling water tower makeup and the allowance for all steam system losses. However, assuming
a water cost of about $1.00/1,000 gal (which includes raw water and water treating costs), the
resulting water costs for a typical steam recovery system would amount to less than
$0.0003/kWh. Therefore, water costs can be considered inconsequential and be left out of
preliminary economic assessments.
Cogeneration Credits
Appropriate values ($/MM Btu or $/lb) should be assigned to exported thermal energy in
cogeneration applications. The values would depend on the forms (e.g., hot water, low-pressure
steam, intermediate-pressure steam) and thermal condition of the streams (temperature and
pressure)as well as the prices of fuels that the energy user otherwise would use to produce the
equivalent thermal energy.
Operating Labor and Maintenance (O&M) Costs

Some plant owners/operators would include consumables in O&M costs. However, excluding
fuel and other consumables here, O&M costs include the following:
Operating labor, supervision, and overhead
Maintenance labor
Engine parts and materials (oil filters, air filters, spark plugs, gaskets, valves, piston rings,
water pump, electronic components, other spare parts, etc.)
There are basically two approaches to maintenanceservice contracts and self-maintenance.

Manufacturers and many distributors, packagers, and OEMs offer service contracts. Full
maintenance contracts (covering all recommended service) typically cost 1.0 to 1.5/kWh for
engines larger than several hundred kWand 2/kWh for small engines (under about 500 kW).
With advanced computer controls and communications, many service contract options now
include remote monitoring of engine performance and condition. An alert signal may trigger an
emergency visit by the contractors engine technician. The service contract rates typically
5-10

Economics
include the travel time of the technician on service calls, which can be a major component of the
total service cost.
Operating labor, which depends on the operator hours assigned to the facility, is usually
considered to be a fixed annual cost. The number of operator hours normally assigned to a unit or
facility will depend on the level of attention deemed necessary. Againwith advanced computer
controls and remote monitoring on site, typically minimal attention is required. Consequently,
the accounting for operators in attendance might show a low fractional value. For example, an
operator checking on an engine once per shift for approximately 45 minutes would be equivalent
to 0.1 operators. In the case of three-shift days, a shift overlap is standard practice to facilitate the
transfer of information at the change of shifts. Experienced RE owners/operators (e.g., municipal
electric utilities) seem to agree that the engines that fare the best overall are those that have the
benefit of an operator/technician who cares about the engines and gives them attention.
It may be useful to keep in mind that good RE technicians are abundant in highly industrialized
countries and regions, while CT technicians are much less plentifuland probably considerably
more expensive.
Maintenance costs vary with the type, speed, size, and number of cylinders of an engine. Regular
maintenance intervals include the short intervals (typically 500-1000 hours) for oil, filter, and
possibly spark-plug changes (or plug regapping) to the longer intervals for top-end (minor)
overhauls (refurbish or replace the engine heads, valves, etc.) to the longest intervals for major
(essentially total) overhaulstop-to-bottom. The representative minor and major overhaul
intervals for gas engines indicated in Table 5-5 reflect the variations among engines and
manufacturers.
Table 5-5
Representative Overhaul Intervals for SI Gas Enginesa in Baseload Service
Time Between Overhauls, Thousand Operating Hours
a
Engine speed:
720 rpm
900 rpm
1200 rpm
1500 rpm
1800 rpm
Minor Overhaul (top-end)
>30
15-36
24-36
10-20
8-15
Major Overhaul
>60
40-72
48-60
30-50
30-36
All 4-stroke engines except the 900 rpm group, which includes opposed-piston 2-stroke engines.
For preliminary cost estimating purposes, the following approximate representative maintenance
costs for baseload operation may be used. These costs include parts, materials, and labor.
1.0 to 1.6/kWh for 1,800 rpm engineswith the highest costs being for the smallest engines
(e.g., 50-150 kW)
0.7 to 1.1/kWh for 1,200 rpm engines
5-11

Economics
0.6 to 0.9/kWh for 720 to 1,000 rpm engines
0.3 to 0.5/kWh for 500 to 600 rpm engines
These costs may be increased for severe service. Again, once candidate engines are identified
for a prospective project, the manufacturers (or distributors/packagers) should be consulted for
details on recommended maintenance. They can provide detailed schedules of service intervals,
work and parts required at each interval, and itemized parts pricesas well as recommended
spare parts to be kept on hand and their prices. Usually they will also be able to offer one or
more service contract options (as noted previously). Customers should consider the extent to
which they desire in-house staff to tackle maintenance (e.g., routine oil changes) or outsourcing
through a maintenance contract.
Engine Life
Both gas engines and diesel engines should last through at least two major overhauls. There are
many engines still operating that are 30 to 40 years old. Of course, there are economic trade-offs
between refurbishing an old engine and replacing it with a model that offers improved
performance. Nevertheless, there continues to be a market for rebuilt and remanufactured REs
particularly makes and models that have good reputations for ruggedness, reliability, and good
performance. As noted earlier, in many cases the engine rebuilders are able to incorporate
upgrades that improve the performance of the enginesand diesel engines rebuilt as SI engines
occasionally are available from some rebuilders.
5-12
6
KEY COMPANIES, PRODUCTS, AND BUSINESS
ISSUES
Introduction
This section primarily provides an overview of the predominant RE manufacturers in both the
U.S. and international markets. Their business, products, market position, market channels, and
business alliances are discussed. The sizes of the companies is discussed in terms of their annual
engine sales (revenues), if available. In some cases only the revenues of the company division
that includes RE manufacturing (and possibly turnkey plant supply) is available. If the
manufacturer is held by a larger parent company, a brief description of the parent and its total
revenues are also included.
The apparent market shares of manufacturers are qualitatively discussed. Although some
manufacturers occasionally indicate the total capacity (MW or hp) sold in the fiscal year being
reportedand sometimes from the beginning of the company, this information does not in itself
identify shares of various markets. Specific annual sales by engine type, size range, and
applications generally are not published for competitive reasons.
The major players philosophies or strategies are reflected in their R&D, market emphases,
acquisitions, and alliances. The inevitable universal philosophy for each one appears to include
the following:
Maintaining strength and improving market share in its traditionally good markets
Becoming more of a presence in markets in which it has competitive products
Maintaining or increasing R&D support to stay (or become more) competitive
Discontinuing products that have reached the ends of their practical lives (typically because
of economics, efficiency constraints, limited power output, and high emissions)
Utilize strategic alliances
Be alert and receptive to important potential acquisitions
The manufacturers are discussed in alphabetical order by three world regions: the United States,
Western Europe, and Japan. The numerous Eastern European manufacturers are not discussed.
This section is concerned primarily with the predominant manufacturers of gas engines
nominally in the 300 to 5,000+ kW size range of gas enginesand secondarily with diesel
engines of any appropriate size for the U.S. or international markets.
6-1

Key Companies, Products, and Business Issues
Some manufacturers also function as architects and engineers (A&Es), taking full responsibility
for the design and supply of complete turnkey power/cogeneration plants in-house or in
collaboration with the distributor or licensee in the customers region. Where the manufacturers
are involved as A&Es, the engines and plants typically are largewith plant capacities from
several MW up into the 100 to 200 MW range. The ongoing service relationship with the
customer after the plant is supplied typically is served through strong local distributorships or
licensees. Generally, a manufacturer will be a strong player in any region in which it has an
established distributorship and service networkor a strong licensee. In many instances, major
licensees operate totally independently of the engine technology licensor.
Some major companies, whose product lines are comprised of small (under 300 kW) engines that
are used by OEMs and packagers in manufacturing small gensets, are also briefly covered here.
They include such companies as Ford Industrial Power Products, GM Powertrain (U.S.), Nissan
(Japan), Volvo Penta (Sweden), and Volkswagen (Germany).
Original equipment manufacturers (OEMs) of gensets and genset packagers are also briefly
discussed. Since packagers are ubiquitousand packaging is also typically handled by regional
distributorsthis discussion focuses on selected leading international and North American
packagers and OEMs that sell into the U.S. market. Some packagers also offer custom
engineering; e.g., the design and supply turnkey power/cogeneration plants. However, they
typically limit the sizes of engines that they handle to a few MW.
Finally several payers in the niche market for aftermarket conversion of diesel engines to dualfuel (DF) engines are also briefly discussed. One independent developer of a new 300 kW DF
engine is also discussed with the niche players. In the latter case, the developer is converting a
new diesel engine that it is developing to a DF engine at the factory.
The United States

A summary of the products and alliances of the dominant manufacturers of REs for the 60 Hz
U.S. market is presented in Table 6-1. Five companies that are based in Europe are included.
Although MaKs and Perkins primary markets are worldwide, they are included since they are
now subsidiaries of U.S.-based Caterpillar Inc. Cummins Wrtsil, Jenbacher Energysysteme,
and Wrtsil NSD are having growing impacts on the U.S. market. The product lines in Table 61 are grouped by engine type; i.e., 2-stroke or 4-stroke, and diesel, dual-fuel, and SI.
6-2

Table 6-1
Overview of Primary Manufacturers of REs for the U.S. (60 Hz) Stationary Power Market
Product Line & Size Range, MW (60 Hz continuous ratings)

Company
Engine Type
Diesel
Dual-Fuel
SparkIgnition
Caterpillar Inc.
* Caterpillar Inc.
4-stroke
* MaK Motoren GmbH (Germany) (acquired by

Cat in 1996)
4-stroke
* Perkins (mfrd. in the U.K., acquired by Cat in

1997)
4-stroke
0.1-4.1
Under
developm
0.9-15.7
ent --
0.05-3.0
0.004-1.8
0.3-0.8
--
Cooper Energy Services (Div of Cooper Cameron)

* Ajax-Superior
4-stroke
0.4-3.3
Under
dev.
0.4-3.6
* Cooper-Bessemer (discontinued in 1996)
4-stroke
1.8-6.3
1.8-6.3
1.8-6.1
* Enterprise (refurbishing & reman only)
4-stroke
2.6-7.0
2.6-7.0
1.4-3.9
Cummins Engine Co.
4-stroke
0.02-3.0
--
Cummins Wrtsil (JVbased in France)
4-stroke
1.8-3.5
--
4-stroke 2stroke
0.3-1.8
0.1-1.8
---
2-stroke
0.7-3.6
0.7-3.6
EMD (Electro-Motive Division of General

Motors)
Collaborations, Joint Ventures (JVs), and/or Licensing
Also owns F.G. Wilsonone of the worlds largest genset packagers

(based in Ireland).
Implementing (licensee) the DF technology of Clean Air Partners
(U.S.A.) on CNG-fueled truck diesel engines. Caterpillar also owns
Solar Turbines.
Superiors 1,200 rpm diesel and SI engines are based on diesel

engine licensed from Mitsubishi. Cooper now developing counterpart
1.1-3.3 MW DF engines. Superior also just developed a 5,000 hp SI
version of EMDs new 4-stroke H-Engine.
0.006-0.5 Leading worldwide designer & manufacturer of high-speed diesel

& 0.3-2.6 engines. Subsidiary Onan Corp. is one of the worlds largest RE
genset packagers. JV with Wrtsil NSD.
1.1-2.8
JV started in 1995 and was subsequently reinforced. Developed new

families of diesel & SI engines, which are manufactured at plants of
the JV in the U.K. and France, and collaboratively marketed
worldwide.
0.1-0.2
-
- Collaborating with MTU Motoren-und-Turbinen Union (Germany), a

subsidiary of Daimler-Chrysler, on worldwide marketing/distribution
& service. They jointly developed 2 new series of diesel engines.
Kohler Co., a major U.S. genset packager, is one of DDCs largest
customers. DDCs 2-stroke product line is being phased out.
--
Collaborating with Cooper Energy, which has developed a SI version

of EMDs new 4-stroke diesel H-Engine. ECI DF conversions of
2-stroke diesel engines available through ECI and Stewart &
Stevenson, a U.S. distributor & packager of EMD engines.
6-3

Company
Engine Type
Diesel
Dual-Fuel
SparkIgnition
4-stroke
2.0-4.1
--
--
4-stroke
0.5-21.0
4.0-8.4
--
2-stroke
1.3-3.2
1.3-3.2
0.8-2.6
GE Transportation Systems (GETS) (a division of

General Electric Co.)
4-stroke
1.1-2.6
--
--
Collaborated with Deutz AG (Germany) on new 1.4-6.3 MW diesel

engines for GETSs locomotives business, GETSs nearly exclusive
business focus.
Jenbacher Energiesysteme AG (Austria) (with

U.S. Distributors GE Power Systems and
International Power Technology, IPT)
4-stroke
--
--
0.3-2.7
In 1999, GE Power Systems became the exclusive North American

distributor of JESs natural gas engines & a non-exclusive distributor
to other parts of the world. IPT is JESs biogas applications
distributor in the Americas.
Fairbanks Morse (former parent, Coltec

Industries, was acquired by BF Goodrich in 1999)
Wrtsil NSD subsidiaries excluding

Switzerland & Italy
4-stroke
2.0-36.0
1.3-15.8
0.6-5.5
4-stroke
0.4-21.0
4.1-21.0
--
2-stroke
1.4-64.0
1.4-64.0
--
* Wrtsil NSD Italia S.p.A. (formerly GMT)
4-stroke
0.5-22.0
0.5-18.0
0.5-5.7
Waukesha Engine (parent Dresser Industries was

acquired By Halliburton Company in 1998)
4-stroke
Discontin
ued in
1996
--
0.05-2.9
* Wrtsil NSD Switzerland (formerly New

Sulzer Diesel)
6-4
Assisted MAN B&W (Germany) in applying FMs micropilot DF

technology to conversion of certain MAN diesel engines to DF. FM
now is a licensee of the new MAN DF engines. FM is also a longtime
licensee of diesel engines of S.E.M.T. Pielstick (France), which is
now wholly-owned by MAN B&W.
JV with Cummins Engine Co. developed, now markets new families

of diesel & SI engines. Wrtsil also has a mfrg/assembly plant in the
U.S. A.
Wrtsil NSD (84.6% owned by Metra Corp. of

Finland and 15.4% by Fincantieri Cantieri Navali
Italiani of Italy)
Collaborations, Joint Ventures (JVs), and/or Licensing
Westinghouse became a licensee of NSDs medium-speed diesel

engines for the U.S. market in 1996.
Wrtsil acquired 40% of GMT from Fincantieri in 1996 & the
remaining 60% in 1999.
Acquiring Dresser made Halliburton the worlds largest oil field

services company. Waukesha also supplies engines to Dresser-Rand
for compressor drives.

An expanded overview of the predominant RE manufacturers headquartered in the United States

and their European subsidiaries is provided in Table 6-2. The Cummins Wrtsil joint venture is
includedeven though it is based in Francethe fill out the picture of Cummins. All of these
manufacturers market worldwide.
All but one of the eight major U.S. engine manufacturers produce diesel engines, and four of
these (Cummins, Detroit Diesel Corp. (DDC), EMD, and GE) specialize in diesel engines.
Caterpillar, Cummins, and DDC produce high-speed engines, whichin electric power
applicationsare used primarily in standby and peaking applications. Caterpillar also produces
heavy-duty high-speed engines and (with the acquisition of MaK) large (up to 15.7 MW)
medium-speed engines. Cummins and DDC also have developed high-speed heavy-duty diesel
engines. The other U.S. manufacturers produce medium-speed engines suitable for baseload
power generationthe largest available being 21 MW, from Fairbanks Morse (FM). EMD and
GE Transportation Systems (GETS) are predominantly focused on the locomotive diesel engines
market, although EMD is considerably more active in the stationary power market than GETS.
Caterpillar is the only U.S. manufacturer now with the ability to compete in Third World and
remote markets for heavy oil-fueled continuous power applications. FMs market territory for its
well-proven, big Pielstick-licensed engines is limited to the United States and Mexico. None of
the other U.S. manufacturers diesel engines are heavy oil capable. Cooper-Bessemer (CB)
discontinued its entire line of engine products 2-3 years ago.
Waukesha discontinued diesel engine production in 1996 to concentrate on SI engines.
Caterpillar, Cooper Energy, FM, and Waukesha all offer high-performance lean-burn
precombustion chamber SI engines.
Since CB stopped production, FM is the only manufacturer currently offering micropilot DF
engines in the U.S. Its largest is fairly large at 8.4 MW. However, FM is expected to have
competition within 1-3 years as Cooper Energy and Wrtsil NSD introduce their new DF
engines into the U.S. market.
6-5

Table 6-2
Major U.S. RE Manufacturers and Their European Subsidiaries: Stationary Power Product Lines and Revenues
Product Line & Size Range, MW
(50 Hz and 60 Hz, continuous)
Company (Parent)
Type
Diesel
DF
1998 Revenues,
$Millions
Marketing
SI
Direct
Packager
s & OEMs
Turnkey Engines/
Plant
Mfrg. Div.
Capability
Caterpillar Inc.
6,524
* Caterpillar Inc.
4-stroke
0.1-5.8
Under
dev.
0.006-4.5
* MaK Motoren GmbH

(manufactured in
Germany)
4-stroke
0.9-15.7
Under
dev.
--
* Perkins manufactured
in the U.K.)
4-stroke
0.4-1.8
--
0.3-0.8
~ 5,200
400-500
(est.)
Parent
Corp.
Total
Comments
20,977
Worlds leading manufacturer of construction & mining

equipment, diesel & natural gas engines, & industrial CTs.
Total engine sales includes RE subsidiaries, all RE
markets, and CT sales by Solar.
MaK is a 75-year old designer/mfr. of diesel engines for
marine, railway locomotive, & stationary power markets.
Specialist in heavy oil-fueled engines. Acquisition by Cat
in 1996 from The Krupp Group (Germany) greatly
extends Caterpillars large diesel engine product line &
market strength worldwide.
850
Perkins manufactures >300,000 units/yr for over 600

OEMs, 9 of which account for more than 25% of Perkins
sales. Also, associate companies & licensees mfr. or
assemble Perkins engines in more than a dozen countries.
418
Cooper Energy Services

(Cooper Cameron)
1,882
Parent corp. a leading mfr. of oil & gas pressure control

equip. C-B engines discontinued. Working with EMD,
Cooper has developed SI version of EMDs new 4-stroke
diesel H-Engine.
Leading worldwide designer & mfr. Of high-speed diesel

engines & leads N. American heavy-duty truck engine
market.
* Ajax-Superior
4-stroke
0.2-3.3
0.3-1.6
0.2-2.4
n.a.
* Cooper-Bessemer
(C-B)
4-stroke
1.8-6.3
1.8-6.3
1.8-6.1
n.a.
Cummins Engine Co.,

Inc.
4-stroke
0.02-3.5
--
0.006-0.5
& 0.3-2.6
3,982
(~1,200
for power
gen)
6,266
Cummins Wrtsil (joint

venturebased in
France)
4-stroke
1.5-3.5
--
0.9-2.8
< 150
(estimated
)
n.a.
Detroit Diesel Corp.
4-stroke
0.3-1.8
--
0.1-0.2
2,251
2,251
6-6
Joint venture entered in 1995 and subsequently

strengthened. Engines manufactured at facilities in
France and the U.K.
Produces diesel engines for a wide range of applications in
U.S. and abroad. Collaborating with MTU on new, 4stroke diesel engines and joint marketing & distribution
worldwide. Also a leading truck engine builder.

Company (Parent)
1998 Revenues,
$Millions
Marketing
Type
Diesel
DF
SI
2-stroke
0.1-1.8
--
--
EMD (Electro-Motive
Division of General
Motors)
2-stroke
0.6-3.6
0.6-3.6
--
4-stroke
2.0-4.1
--
--
Fairbanks Morse
(Engine Division of
Coltec Industries, Now
part of BF Goodrich)
4-stroke
0.5-2.8
--
--
4-stroke
5.8-21.0
4.0-8.4
--
2-stroke
0.5-3.2
0.5-3.2
GE Transportation
Systems (General
Electric Co.)
4-stroke
1.1-2.6
Waukesha Engine
Division (Dresser
Equipment Group, a
Halliburton Company)
4-stroke
Discontinued
in 1996
Direct
Packager
s & OEMs
Turnkey Engines/
Mfrg. Div.
Plant
Capability
n.a..
0.8-2.6
--
--
--
0.05-3.3
781
(Includes
sales from
5 divisions
of Coltec)
~ 2,000
(includes
locomotiv
es)
2,848
(Sales for
Dresser
Equipment
Group)
Parent
Corp.
Total
Comments
161,315 Approximately 90% of EMDs engine sales are for

railway locomotives, apparently mostly built by EMD.
1,504
Engine revenues include marine engines to U.S. Navy &

sales of ALCO engines (acquired from GE in 1994) to
locomotive markets. Collaborated with MAN B&W on
conversion of MAN diesel engines to micropilot
prechamber DF engines. Coltec Industries merged with
(into) BF Goodrich in mid-1999.
100,469 Nearly all engine sales for railway locomotives.

Collaborated with Deutz on new, larger diesel engines,
also for locomotives.
17,353
Previously owned by Dresser Industries which

manufactures & sells products & services for the oil &
natural gas industries. Dresser & Halliburton merged in
1998, creating the worlds largest oil field services
company.
6-7

In terms of total market activity, Caterpillar, Cummins, and DDC are the leading suppliers of
engines to the North American heavy-duty truck market. Cummins continues to enjoy the
leading share for the 26th year, although its market share has been eroded the past 12-13 years
while DDCs share has risen. This is the biggest market for these companies, and they have been
intense rivals for many years. This segment of the engines market is driven by the growth in the
industry, the operating efficiency- and cost-consciousness of the trucking industry, and now also
by federally directed pressures to significantly reduce truck air emissions on an accelerated
schedule. Heavy-duty truck engines are nominally 275 to 600 hp, high-torque engines. Although
they are built for a very different type of service than continuous (and typically larger) electric
power generation units, many of the R&D advances from the on-highway engine R&D programs
can translate into improvements in the power generation engines.
Major business developments involving major engine manufacturers over the past five years
and impacting the U.S. market include the following:
The recent creation of the Advanced Reciprocating Engine Systems (ARES) Program
involving several U.S. engine and equipment manufacturers, DOE, and GRI
Caterpillars acquisition of MaK (based in Germany), Perkins Engines (based in the U.K.),
and F.G. Wilsona major international genset packager based in Ireland
Cooper Energy Services discontinuance of production of the Cooper-Bessemer line of

engines
Cooper Energy Services collaboration with GM/EMD and development of the soon to be
demonstrated new Superior 1.1-3.3 MW micropilot DF engineand Coopers development
of a 5,000 hp SI version of EMDs new diesel H-Engine
The settlement in Cooper Energy Services favor of a dispute with Fairbanks Morse over
micropilot prechamber DF technology patent rights.
The Cummins Wrtsil joint venture, which has developed new high-speed diesel and gas
engines that the partners are successfully marketing worldwide
Successful completion of the collaborative development by DDC and MTU (Germany) of a

two new series of diesel engines, which now replace the 2-stroke engines that DDC is
discontinuing
The collaboration of DDC and MTU in engine distribution, sales, and service worldwide
Fairbanks Morses technical assistance to MAN B&W in the development of MAN B&Ws
new series of micropilot prechamber DF engines
The acquisition of Coltec Industries (Fairbanks Morses parent) by BF Goodrich
EMDs development of a new 4-stroke diesel engine, which displaces its 2-stroke engine for
EMDs diesel electric locomotives business, and will be available for stationary and marine
power applications soon
The successful reentry of Jenbacher Energiesysteme (Austria) into the U.S. market for SI
natural gas cogeneration and biogas (e.g., landfill gas) applications.
GE Power Systems (not an engine manufacturer) becoming the exclusive North American
distributor of Jenbachers SI engines for natural gas applications, and a non-exclusive
6-8

distributor for other parts of the world. Also GE becoming a distributor of new Niigata diesel
engines.
GE Transportation Systems (GETS) collaboration with Deutz AG (Germany), which

developed a new family of high-output, high-efficiency diesel engines that now form the core
technology for GETSs advanced diesel electric locomotives business
Wrtsil NSDs (Finland) aggressive marketing of lean-burn SI engines in the U.S.
The acquisition of Waukesha Engines parent, Dresser Industries, by Halliburton Company
The manufacturers and are discussed below in alphabetical order. Refer to Tables 6-1 and 6-2 for
summaries of their product lines. Essentially all of the manufacturers SI engine products include
lean-burn low-emissions engines. The Advanced Reciprocating Engine Systems (ARES)
Program is included, since it in effect will be an R&D player with delayed but potentially
important impact.
The Advanced Reciprocating Engine Systems (ARES) Program

ARES is a new R&D consortium (formed in October 1998) that is intended to become the RE
counterpart of DOEs Advanced Turbine Systems Program fostering R&D on advanced
engines that a single manufacturer probably would not fund individually. ARES is being hosted
at the Southwest Research Institute, an independent R&D and consulting organization which has
had a large engines R&D program for many years. The participating U.S. manufacturers, DOE,
and GRI are providing funding for the program, which amounts to $1.2 million for 1999.
Funding is expected to increase each year, with $5 to $15 million being projected for 2003 and
2004. Initially, ARES is a 5-year program. The initial corporate participants in ARES are
Caterpillar, Cooper Energy Services, Waukesha, Southern California Gas, Altronic (an ignition
systems manufacturer), Federal Mogul, and Woodward Governor Company (a major RE and CT
control systems manufacturer). The program remains open to other American companies.
Foreign companies are not eligible.
ARES will conduct R&D aimed at developing advanced gas engines, targeting 50% electrical
efficiency and a NOx emission of 5 ppmv (@5% O2, dry). The latter target, which is one-tenth
of the lowest NOx now achievable with large lean-burn prechamber SI engines, allows for the
necessary use of exhaust gas treatment for the final reduction of NOx. As discussed in Section 2,
the highest electric generating efficiency now claimed for SI engines is 42% (LHV). SI engines
must be tuned to achieve either the lowest NOx or the highest efficiency. An efficiency penalty
of about one percentage point accompanies tuning for the lowest NOx.
The ARES program will be investigating alternative ignition techniques (including micropilot
DF), lean combustion limits, mitigating knock with water injection, combustion chamber
configurations, increased BMEP, friction, heat losses, modeling/simulation, and exhaust gas
aftertreatment.
6-9

Caterpillar Inc.
Caterpillar Inc., headquartered in Peoria, Illinois, claims to be the worlds leading manufacturer
of construction and mining equipment, diesel and natural gas engines, and light industrial CTs.
In 1998, Caterpillar had total revenues of $21 billion. Caterpillar has a strong worldwide
distributor and serve network. Its products are sold in nearly 200 countries, and its sales are
about equally divided inside and outside of the United States. Products are manufactured in 38
plants in the United States and 40 other plants throughout the world. Caterpillar has two major
manufacturing divisions:
The machinery division is the largest, accounting for nearly two-thirds of Caterpillars 1998
revenues at $13.4 billion. This division produces machines used in construction, mining,
agriculture, and forestry.
The engines division is somewhat smaller, accounting for about one-third of Caterpillars
1998 revenues at $6.5 billion. This division produces reciprocating engines and engine
systems to power trucks, ships, and locomotives, and construction, mining, agriculture and
forestry equipment and electric power generation equipment.
Caterpillar also recently established a new power generation division, Caterpillar International
Power Systems to focus on global medium-speed power plant markets. The division will be
responsible for power plant and petroleum industry applications of both gas and diesel engines
from about 400 kW on up.
Caterpillar is also the parent of Solar Turbines (based in San Diego, California), that produces
the Solar line of gas turbines, rated from 1,000 to 13,500 kW. A broad line of reciprocating gas
and diesel range from 4 to over 15,600 kW in power output.
Caterpillar has been very aggressive about increasing its share of the world market for truck, offroad, locomotive, marine, and stationary power engines, as well as Solars share of the CT
market. Within the past few years, it has completed three major acquisitions that greatly
strengthen its ability to serve these markets worldwide:
In late-1996 Caterpillar acquired Krupp MaK Diesel, a leading and respected major German
manufacturer of heavy-duty diesel engines for marine and stationary power applications
worldwide, from the Krupp Group. This new subsidiarynamed MaK Motoren GmbH
extends Caterpillars diesel engine line from about 4.6 MW to 16 MW. MaK, Caterpillar is
now positioned to compete for any large diesel power plant project or large ship-propulsion
order worldwide. In addition, Caterpillar is known to be working on developing natural gas
engines larger than its current up to about 3 MW line. At least one of the MaK diesel engines
reportedly is being converted to a 6 MW DF engine.
In 1996 Caterpillar formed a joint venture with F.G. Wilson (FGWbased in Ireland), one
of the worlds largest RE genset packagers, and acquired a substantial minority share in its
owner, Emerson Electric Co. In June 1999 Caterpillar acquired 100% equity in FGW, which
now serves as the principal manufacturing plant for Caterpillar gensets sold outside the
United States. F.G. Wilson is one of the worlds leading packagers.
In 1998 Caterpillar acquired Perkin Engines, a leading European manufacturer and

worldwide supplier of diesel engines under 2,500 hp based in England. The Western
6-10

European diesel engine market is Perkins primary market. At the time of the acquisition,
Perkins had associate companies or licensees in 13 countries that manufacture or assemble
Perkins engines. It also had 4,000 independent distributors and dealers in over 160 countries,
as well as over 600 OEM customersincluding Caterpillar as a major customer. F.G. Also,
Wilson at that time took half of Perkins annual production. Cummins, DDC, Deutz, and also
Caterpillar were Perkins chief competitors before the acquisition.
Caterpillar is believed to be in the process of uprating some of its larger (800 to 3,000 kW) leanburn SI engines. One known project involves increasing the output of the 1200 rpm 3516 SI
engine by about 50% by increasing its speed to 1,800 rpm.
Also, a few years ago, Caterpillar licensed the DF technology developed by Clean Air Partners.
A Southern California Caterpillar distributor has been applying it to large trucks running on
CNG. The conversions and subsequent truck engine performance reportedly is excellent.
Caterpillar has the option of applying this technology to stationary diesel engines.
Cooper Energy Services (CES)

Cooper Energy Services, based in Mount Vernon, Ohio, is a subsidiary of Cooper Cameron, a
major petroleum production and industrial equipment manufacturer, headquartered in Houston,
Texas. CES is a leading supplier of power, compression, and integrated services to the oil and
gas industries and to independent power industries worldwide. Cooper Cameron had revenues of
$1.9 billion in 1998, of which CESs accounted for $418 million.
CES reciprocating compression systems include Superior separable compressors, Ajax integral
engine compressors, and CES rotary screw compressors powered by natural gas engines.
Superiors established line of natural gas engines is used in both gas compression and power
generation markets. Coopers primary SI engine product, the high-speed Superior 2400G Series
of engines are available in 6-16 cylinder configurations and sizes from.0.7 to 2.3 MW.
Development of a new line of high horsepower engines was initiated during 1998. About three
years ago, CES discontinued the manufacture of its Cooper-Bessemer line of medium-speed
diesel, DF (including micropilot prechamber), and SI engines (up to about 6 MW).
Cooper Energy Services is applying its patented micropilot PC technology to the conversion of
Superiors 2400 series of diesel and SI engines to DF engines. The first 2400 micropilot DF
engine is scheduled for field testing next year. GRI is providing partial support for this DF
development program, which began about two years ago. The Superior DF engines will have a
size range of about 1.1 to 3.3 MW. About three years ago, Cooper discontinued the manufacture
of its Cooper-Bessemer (CB) line of medium-speed diesel, dual-fuel, and SI engines (up to about
6MW).
Cooper has also been working with EMD to gasify EMDs new 4-stroke diesel H-Engine.
The result is the just introduced Superior HG-300 SI engines, which will be available in the next
year in 12V and 16V configurations ranging from 2515 to 3729 kW. Later upratings of the
engine may include raising the engines BMEP as well as its top speed from 1,000 rpm to 1,200
rpm to increase the power output.
6-11

A dispute between Cooper Energy and Fairbanks Morse over the micropilot patents was quietly
settled out of court in Coopers favor last year, but the terms have not been disclosed. Cooper
was also pursuing legal action against other manufacturers using this type of technology.
However, no information on that activity is available. Those manufacturers could include, MAN
B&W and its S.E.M.T. Pielstick subsidiary, Wrtsil NSD, and possibly a few other European
and Japanese manufacturers.
Coopers marketing is supported by a worldwide sales network and regional independent
distributors. Two prominent North American distributors are Simpson Power in Vancouver,
British Columbia, Canada and Stewart & Stevenson Services in Houston, Texas. Cooper itself
does not package gensets.
Cummins Engine Company, Inc.

Cummins Engine Co., Inc., based in Columbus, Indiana, had revenues of $6.3 billion in 1998, of
which $4.0 billion was generated by the automotive and industrial markets segments. Cummins
claims that it is the world leader in diesel engine production over 200 hp with 260,000 units and
the second largest producer of engines above 50 hp with 502,000 units. Cummins is also a
market leader in Mexico, Australia, South Africa, and many other countries, as well as in the
United States. It has a highly developed worldwide dealer/distributor network, many of which
provide project engineering support. The Onan Corporation in Fridley, Minnesota is both
Cummins top genset packager and one of the worlds largest packagers. Other major packagers
that use Cummins engines include Power Group International (a recent Cummins acquisition in
the U.K. and Singapore) and the large French genset packager SDMO. Two other important
Cummins subsidiaries are Newage International (based in the U.K.), which manufactures
generators from 5-5250 kVA, and Holset, which manufactures turbochargers. Both companies
supply Cummins and also sell to international market.
Cummins diesel and alternate fueled engines power light-, medium-, and heavy-duty vehicles
from 135 to 600 hp. Its engines power equipment used for construction, agriculture, mining,
logging, military, and marine service.
Cummins has business alliances with a number of technical organizations worldwide, including
Case (U.S.), Iveco (Italy), Komatsu (Japan), New Holland (the Netherlands), Scania (Sweden),
two engine builders in China, two engine builders in India, and Wrtsil NSD (Finland) to
manufacture engines and develop the next generation of products.
The 1995 Cummins Wrtsil (CW) joint venture is focused on diesel and SI engine products for
electric power generation, presently up to about 4 MW and 3 MW, respectively. Since Cummins
prior experience largely emphasized diesel engines, this joint venture (Wrtsils know-how)
enabled Cummins to take a quantum leap into the production of high-performance, lowemissions lean-burn SI engines. The partnership combined the manufacturing and worldwide
marketing strengths of Cummins, as a world leader in high-speed diesel engines, with those of
Wrtsilin the development, manufacture, and now successful sales of new families of highspeed and medium-speed gas and diesel engines. Although the joint venture lost money in 1998
due to the partners additional investments in it, a healthy future is expected. Since the new
engines started to become available about two years ago, the joint venture has been enjoying
6-12

increasing success in winning prominent (highly visible) gas and diesel engine projects in the
U.S., Canada, and Europe.
The partners apparently collaborate in marketing CW products worldwide. CW is headquartered
in Mulhouse, France. In the U.S. CW operates out of Wrtsils U.S. base in Annapolis,
Maryland.
Detroit Diesel Corporation (DDC)

DDC, headquartered in Detroit, Michigan, is an integrated manufacturer of a wide range of
diesel engines and associated products. In 1998 DDC reported revenues of $2.25 billion for
engines used on-road, off-road, and marine service. Both 2-cycle and 4-cycle engines are
manufactured spanning a broad range, from 22 hp to about 10,000 hp.
In 1994 DDC entered into a partnership alliance with Germany-based MTU Motoren- und
Turbinen-Union Friedrichshafen GmbH (a subsidiary of the Daimler-Benz group of
companiesnow Daimler-Chrysler). This partnership has produced two new families of highspeed diesel engines for stationary power, marine, locomotive, heavy vehicle, and industrial
applications: the DDC/MTU Series 2000 (about 600 to 1,800 hp) and the MTU/DDC Series
4000 (about 2,000 to 3,600 hp) 4-cycle engines. DDC reports that it has over 800,000 2-cycle
engines in the field and nearly 500,000 series 60 (4-cycle truck engines).
However, around late 1998, DDC essentially dropped its older 2-stroke diesel engine products.
The 2-stroke engines are now being manufactured only for special OEM accounts.
The new Series 2000 and 4000 engines accelerate the transition to 4-cycle engines. Advances in
the design of the MTU/DDC engines have increased fuel efficiency and reduced emissions and
engine noise. Komatsu Mining Systems, Euclid-Hitachi, and Liebner Mining Equipment have
put 200 Series 4000 trucks into mining service.
The new DDC/MTU engines are now available in the U.S. for genset applications. DDCs
genset product line also includes recently separately developed SI engines (based on truck
engines) covering the size range from approximately 100kW to 260kW. The major U.S.
packager Kohler Co. is one of DDCs largest customers. Kohler manufactures its own brand of
gensets based on DDC engines and an essentially identical line that DDC markets under its own
name. In addition, DDC has a small number of independent distributors around the U.S.
As part of their alliance, DDC and MTU also formed two jointly-owned distribution and service
companies. One company takes advantage of DDCs marketing, sales, and service strengths in
the Americas. The other relies on MTUs marketing success throughout Europe and Asia. The
majority of DDCs sales are realized in the United States and Canada.
Electro-Motive Division (EMD) of General Motors (GM)

The Electro-Motive Division (EMD) is part of GM Locomotive Group, one of the major
subsidiaries of General Motors Co. (GM, headquartered in Detroit, Michigan). GM has grown
into the worlds largest industrial corporation and full-line vehicle manufacturer, recording over
6-13

$160 billion in sales revenue in 1998. GMs EMD designs, manufacturers, and markets dieselelectric locomotives, medium-speed diesel engines, locomotive components, light armored
vehicles, turret systems, and locomotive maintenance services to a global customer base. Other
parts of the GM Locomotive Group include the Diesel Division of GM of Canada and Delco
Defense Systems Operations. EMDs North America distributors are: Detroit Diesel Allison
(California and Illinois), Engine Systems (North Carolina), Midwest Power Products (Manitoba,
Canada), and Stewart & Stevenson Services (Texas). There are only three distributors abroad
(Australia, Brazil, and Scotland).
GMs EMD was the originator of diesel-electric motive power for railroad applications over 75
years ago. A total of over 55,000 EMD engines have been placed in service worldwide, and
about 50% of them are presently in service. Today, EMD is the worlds largest builder of dieselelectric locomotives for all commercial railroad applications. EMD manufactures 800-5,500 hp
two-stroke, medium-speed diesel engines for marine propulsion, off-shore and land-based oil
well drilling rings, stationary power generation, and railway locomotives. The power range for
stationary gensets is 570-3,580 kW. The engines are not designed to burn heavy oil.
EMDs locomotives business which take about 90% of its annual engine production. Stationary
power appears to be the smallest part of EMDs market. EMD recently received the largest single
order in its historyfor 1,000 new locomotives over the next 3-4 years for lease by the Union
Pacific Railroad. These locomotives will replace older, less efficient units with EMDs new
higher horsepower, more fuel efficient locomotives, based on EMDs new 4-stroke, V16 diesel
H-Engine, which is rated at 4,700 kWs at 1,000 rpm.
By the end of next year, the H-Engine should also be available for stationary power and marine
applications. Cooper Energy Services collaboration with EMD to develop the HG-300 SI gas
engine version of the H-Engine was discussed above under Cooper Energy.
As discussed in Section 2 (and later here under Niche Players) Electronic Conversion Inc. has
developed a DF conversion technology for EMDs 2-stroke engines, and has successfully
retrofitted several of them in the field. In addition, Stewart & Stevenson has converted several
additional EMD engines for offshore oil platform operation on associated gas.
Fairbanks Morse (FM)

Fairbanks Morse is a Beloit, Wisconsin-based division of Coltec Industries, Inc. In 1998 Coltec
Industries had revenues of about $1.5 billion. In July 1999 Coltec Industries merged with the BF
Goodrich Company. The merged company has annual sales of $6 billion from products and
services in aerospace systems, performance materials, and industrial products. Coltec, with
headquarters in Charlotte, North Carolina, survives as a subsidiary of B.F. Goodrich, and the
Fairbanks Morse Engine Division as one of 15 operating units of Coltecs Industrial Segment.
FM manufactures a broad range of heavy-duty diesel engines, with the capacity to provide 64029,320 hp diesel engines. In addition FM manufactures dual-fuel gas and diesel engines ranging
in size from 4 to 18 cylinders. Engines are offered in both conventional V and in-line 4-cycle
versions as well as in-line two-cycle opposed piston (OP) configuration. The OP engine is also
available in a SI version. FMs primary markets are stationary power generation, locomotive
6-14

traction, and marine propulsion. FM also sells FM/ALCO locomotive product through the world,
except in India where GE Transportation Systems (the original owner of the ALCO technology)
has retained the manufacturing and sales rights. In 1998, FM continued a 60-year tradition of
being the largest medium-speed diesel engine supplier to the U.S. Navy with the award for four
10,400 hp FM/Pielstick engines for the first vessel in the LPD-17 ship program. The Navy plans
to add eleven more of these vessels over the next ten years. FM also has supplied numerous
diesel and DF engines to Midwestern U.S. municipal utility companiesincluding several
micropilot DF engines within the past five years. FMs micropilot DF engine products cover the
1.3-8.4 MW size range.
The other operating units of Coltecs Industrial Segment manufacture a wide range of products
including compressors, bearings, seals, gaskets, and machine tools. Coltec also operates an
Aerospace Segment which produces gas turbine components, aircraft landing gear, and a variety
of fuel injection and instrumentation systems. Coltec operates 18 plants outside of the United
States and also markets certain products through sales agents or representatives. The engine
manufacturing operation in Beloit appears to be FMs only engine manufacturing facility.
As noted earlier, FMs Pielstick license applies only for markets in the United States and
Mexico. FMs other engine products are marketed through sales agents and representatives
worldwide. FM does not have a network of distributors.
GE Transportation Systems (GETS)

General Electric Company (GE) is a highly diversified company with 1998 revenues of $100.5
billion. GEs Industrial Products division, which includes GE Transportation Systems (based in
Erie, Pennsylvania), had 1998 revenues of $11.2 billion. GE Transportation Systems
manufactures 4-stroke, medium-speed diesel engines for locomotives, marine applications, offshore drilling rigs, and stationary electric power. However, GETSs business is almost entirely
geared toward locomotives, with only minor sales in the other markets. As of the end of 1995,
GETS had produced about 13,000 enginesabout 99% of which were for locomotives. GETS
produced 720 engines in 1995more than its main U.S. competitor EMD. It is estimated that
GETS has produced 2,000-2,500 more engines since then.
The year 1998 was a record year for locomotive and parts shipments, with the largest follow-on
order in history coming from BNSF. This brings to 637 the number of locomotives to be
delivered to BNSF through 1999. The locomotives are covered by a long-term service contract
raising GE units under service contracts worldwide to over 2,700. The new AC6000 locomotive
was tested and 50 units of more than 190 units on order were delivered.
GETS and Deutz AG of Germany recently collaborated for several years on the development of
a new family of high-output locomotive diesel engines in the 1.4-6.3MW size range. The new
4,400-6,000 hp engines built by GE in this program are strictly for its new AC6000 locomotives.
The new 1.4-3.1MW engines built by Deutz are available for stationary and marine applications,
as well as locomotives. GETS is referring customers interested in those engines to Deutz.
6-15

Waukesha Engine
Dresser Industries, Waukeshas parent company, was acquired by the Halliburton Company in
1998. The Waukesha Engine Division remains under The Dresser Equipment Group under
Halliburton. The merger between Halliburton and Dresser created the largest oil field services
company in the world. Halliburtons revenues in 1998 were $17 billion, of which the Dresser
Equipment Group accounted for $2.8 billion.
Waukesha has been building SI engines since 1906, and today manufactures only SI engines. Its
diesel engine product line was discontinued in 1996 because of the lack of a market in the U.S
for continuous diesel power generation and stiff competition abroad. It has manufacturing
facilities in Waukesha, Wisconsin and Appingedam, The Netherlands. Its spark-ignited gasfueled engines are widely used in field compression applications and in packaged engine gensets
for stationary applications. The Waukesha product line and ongoing engine uprating and
development program apparently continue as under Dresser. Waukesha has announced several
engine upratings or new versions in the past 2-3 years, including a 16-cylinder 3.2 MW (max)
version of its largest (900 rpm) engine and a 1 MW stoichiometric version of its 1,200 rpm
engine for use with TWCs to achieve very low emissions levels.
In 1998, also Waukesha introduced the Modulator, a self contained packaged power plant
designed to promote on site power generation anywhere. The preassembled modulein sizes up
to about 1.5 MW (continuous) allows for standard shipment by rail, truck, or ship.
Otherwise, Waukesha engine gensets generally are packaged by independent packagers and
distributors worldwide. In the U.S. several independent distributors handle Waukesha engines,
as well as other brands.
Western Europe
The Western European engine manufacturers listed in Table 6-3 were selected for profiling here
as the most prominent of the European engine manufacturers in both the European and
international markets. Some of the European manufacturers not discussed are licensees of one or
more of these major manufacturers, in addition to producing engines of their own designs. Table
6-3 provides an overview of the manufacturers product lines, marketing channels, turnkey plant
supply capabilities, revenues, and business.
Most of the selected European manufacturers are experienced builders of diesel engines for ship
propulsion, railway locomotives, and electric power generation. In the marine market, the
manufacturers with the most extensive experience with heavy oil-fueled engines appears to be
MAN B&W Diesel, S.E.M.T. Pielstick, MaK Motoren (discussed under United
States/Caterpillar), Wrtsil NSD, Rolls-Royce/Allen Diesels, Rolls-Royce/Ulstein Bergen,
Alstom Mirrlees Blackstone, Alstom Ruston Diesels. Since there are approximately ten times as
many heavy oil-fueled marine engines as heavy oil-fueled stationary power engines, a vendors
marine experience can be a significant competitive factor in the global stationary power market
based on heavy oil.
6-16

Most of these manufacturers have supplied units for industrial and utility power plants in Asia,
Africa, and Latin America, as well as Europe. Three of these manufacturers in particular have
supplied an estimated combined total of more than 4,000 MW of diesel power generation to
China. MAN B&W has supplied more than 1,700 MW and Wrtsil NSD has supplied more
than 2,200 MW). MaK Motoren has also supplied a fairly large amount of diesel power in China
(8 plants)and a much greater amount (300 engines) in the Philippines and Indonesia. MAN
B&W and Wrtsil NSD (and their numerous licensees worldwide) are the two primary sources
of the giant 2-stroke diesel engines. At the opposite end of the spectrum, Perkins (also a
Caterpillar subsidiary now) manufactures only small enginesbut in great volume.
While the U.K. manufacturers (Rolls-Royce/Allen Diesels, Alstom/Ruston Diesels, and
Alstom/Mirrlees Blackstone) offer dual-fuel engines, they apparently have not yet introduced
micropilot precombustion chamber versions. On the Continent, Deutz, Grandi Motori Trieste
(GMTnow Wrtsil NSD Italia), and MAN B&W have come out with prechamber dual-fuel
engines. Wrtsil NSD and MAN B&W (with Mitsui Engineering & Shipbuilding) offer highpressure gas-injected dual-fuel engines, although no demand for this technology has developed.
Deutz, Jenbacher, Ulstein Bergen, Wrtsil have been marketing low-emissions, lean-burn,
large-bore SI enginesprimarily for cogenerationfor least a few years with substantial success
in Europe. MAN B&W recently added a line of prechamber SI engines for this market. Wrtsil
and (more recently) also the Cummins Wrtsil joint venture have been aggressively marketing
these engines worldwide, including sales in the United States and Canada. Jenbacher (which
specializes exclusively in SI engines) recently entered the U.S. market with the firm intention of
being a major contender. That intention is bolstered by its distribution agreements with GE and
International Power Technology (IPT).
6-17

Table 6-3
Major Western European RE Manufacturers: Stationary Power Product Lines and Revenues
Company (Parent)
Type
Diesel
DF
1998 Revenues,
$Millions
Marketing
SI
Direct
Packager
s & OEMs
Turnkey Engines/
Plant
Mfrg. Div.
Capability
Alstom Engines Ltd. and Alstom Mirrlees Blackstone (Alstom, France)
2,200
* Paxman Diesels (U.K.) 4-stroke
0.6-3.7
--
--
n.a.
* Ruston Diesels (U.K.) 4-stroke
0.7-6.6
0.6-2.8
0.8-2.8
n.a.
* Mirrlees Blackstone
(MB, U.K.)
4-stroke
0.6-11.3
2.0-9.3
--
n.a.
Cummins Wrtsil (JV 4-stroke

France)
1.8-3.5
--
1.1-2.8
< 150
Parent
Corp.
Total
15,000
n.a.
(est.)
Deutz AG (the Deutz

Group, Germany)
4-stroke
0.004-7.3
0.6-1.7
0.25-3.6
Jenbacher
Energiesysteme (JES)
(The Auricon Group,
Austria)
4-stroke
--
--
0.3-2.7
~ 800
~ 1,200
190
441
Comments
Alstom (formerly GEC Alsthom) is a major international

organization in power plants, electric T&D, & shipbuilding, &
leader in rail transport. Acquired MB from BTR (U.K.) in 1997.
In mid-1999, Alstom and ABB merged power generation activities
in a JV called ABB Alstom Power, creating an extremely strong
international competitor in the supply of power plants of all types.
The 3 diesel engine companies, which are in Alstoms Industry
Sector, while not part of the JV, should benefit from it. $2,200
million sales are for the whole Industry Sector.
JV entered in 1995 to produce two new series of diesel engines
plus SI engines for worldwide markets. JV subsequently
reinforced. Engines manufactured at facilities in France and the
U.K.
Worlds oldest engine builder; recovered from financial trouble of
mid-1990s. Markets worldwide. Main U.S. markets are
construction machinery and gensets. Collaborated with GE
Transportation Systems on development of medium-speed diesel
& gas engines. Also starting to supply vehicle engines to Volvo.
Major European mfr. of SI engines. Specializing in lean-burn SI
engines since the mid-1980s for power/cogen. Major player in
biogas applications in Europe and elsewhere. Entered U.S. market
in mid-1990s. In 1999 GE Power Systems became JESs
distributor for natural gas applications in U.S. & other parts of the
world. ITP is JESs biogass applications distributor in the
Americas. Auricon is Austrias largest holding company.
MaK Motoren GmbH (Germany)a subsidiary of Caterpillar Inc. (U.S.A.)See Tables 6-1 & 6-2
MAN B&W Diesel Group Division (The MAN Group, Germany)
* MAN B&W Diesel
(MBD) (Germany &
Denmark)
4-stroke 2- 0.4-18.3
stroke
1.1-66.4
* S.E.M.T. Pielstick
4-stroke
(France, part of the MAN
Group)
6-18
0.6-25.2
--
0.4-15.7
1.1-66.4
1.0-3.5
3.2-9.6
--
--
~ 500
~ 13,000 The MAN Group is one of Europes largest engineering

n.a.
(est.)
250-300
(est.)
n.a.
groups. MBD has 5 large mfrg. facilities in Europe & over 40

licensees worldwide. Major supplier to marine & electric power
markets worldwide. Mitsui Engrg. & Shipbuilding is a
development partner on the large, low-speed 2-stroke engines.
Fairbanks Morse assisted MBD in developing new micro-pilot DF
engines. Now owns 67% of Pielstick.
One of the worlds leading suppliers of medium-speed diesel
engines for electric power and marine applications. Known for
reliability and performance. 26 licensees worldwide, including
China, Japan, Korea, & India.

Company (Parent)
MTU Fredrichschafen
(Daimler-Chrysler,
Germany)
1998 Revenues,
$Millions
Marketing
Type
Diesel
DF
SI
Direct
4-stroke
0.04-6.3
--
--
Packager
s & OEMs
Turnkey Engines/
Mfrg. Div.
Plant
Capability
1,081
Parent
Corp.
Total
Comments
155,000 One of the worlds leading suppliers of diesel engines for ships,
locomotives, & heavy vehiclesas well as electric power/cogen.
Also packages GE aeroderivative CTs. Co-owner (33%) of
S.E.M.T. Pielstick with MBD. Collaborating with Detroit Diesel
on new engines & joint distribution & marketing worldwide.
Perkins Group Ltd. (U.K.)a subsidiary of Caterpillar Inc. (U.S.A.)See Tables 6-1 & 6-2
Rolls-Royce (U.K.)
~ 7,300
(est.)
* Allen Diesels (U.K.)
4-stroke
0.5-15.0
0.5-1.5
0.6-1.0
~ 1,350
(est.) (All
ind. bus.)
* Ulstein Bergen
(Norway) (1999
acquisition from Vickers
plc)
4-stroke
0.5-3.8
--
0.5-3.0
~ 120
(estimated)
Allen Diesels is one of RRs 18 industrial business subsidiaries.

Engine sales include stationary power, marine, & oil/gas pipeline
applications.
680
Supplies marine & stationary power/cogen markets in Western

Europe, North America, & Asia. Vickers plc acquired the nonshipbuilding interests of The Ulstein Group in May 1999, and RR
bought Vickers in November 1999. Also collaborating with
Hyundai Heavy Industries to build Ulstein engines in Korea and
develop a new engine.
Wrtsil NSD (84.6% owned by Metra Corporation of Finland and 15.4% by Fincantieri Cantieri Navali Italiani of
Italy) ~ 2,900 (for Metra Corp.) See Tables 6-1 & 6-2 also.
* Wrtsil NSD
subsidiaries (excl.
Switzerland & Italy,
manufacturing in several
countries)
4-stroke
2.0-15.8
2.4-15.8
0.6-5.5
* Wrtsil NSD
Switzerland formerly
New Sulzer Diesel)
4-stroke
0.4-21.0
4.1-21.0
--
2-stroke
1.4-64.0
1.4-64.0
--
* Wrtsil NSD Italia

S.p.A. (formerly GMT)
4-stroke
0.5-22.0
0.5-18.0
0.5-5.7
2-stroke
4.0-40.0
(NSD
engines)
Wrtsil NSD is a leading engine supplier to the worlds marine &

~ 800
~ 2,400
power generation markets. About 25 mfrg. plants worldwide,
from the (including including ~ 20 licensees. MHI (Japan) is NSDs oldest and most
power gen. all subs
productive licensee. The Cummins Wrtsil JV is producing 2
Business of and
new families of diesel & gas engines. Metra is an international
these three associated industrial corporation. Fincantieri is the largest & most diversified
Wrtsil companies) shipbuilding organization on the Mediterranean & one of the
largest in Europe.
component
n.a.
s
Source: SFA Pacific
6-19

Notable business developments involving Western European RE manufacturers over the past
five years include:
Alstoms acquisition of Mirrlees Blackstone
The creation of ABB Alstom Powera 50:50 joint venture that combines the power
generation business sectors of ABB and Alstom
The 1998 merger of the Germany-based Daimler-Benz and U.S.-based Chrysler Corp. to
form the new company Daimler-Chrysler. (The German RE manufacturer MTU is a DaimlerChrysler subsidiary.)
Deutz AGs collaboration with GE Transportation Systems
MTUs collaboration with DDC
MTUs collaboration with SKL to develop SI versions of the diesel engines developed in the
MTU-DDC collaboration
Caterpillars acquisition of MaK, Perkins, and F.G. Wilson
The Cummins-Wrtsil joint venture
The creation of Wrtsil NSD by merger of the operations of Fincantieri, New Sulzer Diesel,
and Wrtsil Diesel under the majority ownership of Metra Corp., Wrtsils parent.
The transfer of majority ownership (from 50% to 67%) and management control of S.E.M.T.
Pielstick to MAN B&W from the 50/50 co-ownership of MAN B&W and MTU.
MAN B&Ws development of new micropilot DF engineswith the technical assistance of

Fairbanks Morse
Ulstein Bergens agreement with Hyundai Heavy Industries (Korea) to collaborate on engine
production and design
Rolls-Royces acquisition of Ulstein Bergenvia the acquisition of Vickers plc, shortly after
Vickers had acquired the Ulstein Group.
Rolls-Royces agreement with Niigata Engineering to add one of Niigatas new large diesel
engines to Rolls-Royces engine product line
The manufacturers are discussed next in alphabetical order.
Alstom (Mirrlees Blackstone, Paxman Diesels, and Ruston Diesels)

Alstom, headquartered in Paris, France, has major operations throughout Europe (23 countries),
and operates worldwide (with operations in 9 countries in the Americas, 9 in Africa and the
Middle East, and 12 in Asia and the Far East). Alstom began 1998 under the name GEC Alsthom
with joint ownership by two shareholders, Alcatel of France and General Electric Company plc
of the United Kingdom. In May 1998 Alstom acquired Cegelecs activities from Alcatel, and
sold its heavy-duty gas turbine business to General Electric of the United States. Alstom also
acquired full ownership of European Gas Turbines (EGT) small industrial turbines business (unit
sizes range of 1.6-13 MW) from GE in the deal. Alstom ended 1998 as a publicly traded
6-20

company after successful offerings on the Paris, London, and New York stock exchanges.
Alstoms total revenues in 1998/99 were about $15 billion. Alstoms industry division, which
produces a wide range of industrial equipment including diesel engines, had revenues of about
$2.2 billion.
Alstoms major divisions are energy, transmission and distribution, and transport which builds
power plants, ships and trains. In June 1999 Alstom merged its energy business with that of ABB
(Sweden and Switzerland) in a 50/50 jointly owned company known as ABB Alstom Power.
This merger creates a very formidable competitor for international power projects of all kinds.
Although Alstoms industry division is not part of the joint venture, its engine products would
be available for joint venture projects.
The Alstom Engine Ltd. subsidiary (Paxman Diesels and Ruston Diesels) and Alstom Mirrlees
Blackstone manufacturer diesel, heavy fuel, duel-fuel, and spark-ignition gas engines for power
generation, marine propulsion, marine auxiliary power, rail traction, and off-road applications, as
well as control and monitoring equipment. The diesel engine product lines are marketed
worldwide and are supported by strong sales and service networks. All three Alstom RE
manufacturing subsidiaries are based in the U.K.
Mirrlees Blackstone, acquired from BTR plc of the United Kingdom in 1997, offers a range
of medium-speed diesel, heavy fuel, and DF engines in the range 2 to over 15 MW at speeds
up to 600 rpm. These engines are used in power plants and gensets.
Paxman Diesels offers a range of light-weight, compact, high-speed diesel engines in the
power range from 0.5 to 4 MW at speeds up to 1,950 rpm.
Ruston Diesels offers a range of medium-speed diesel, heavy fuel, DF, and SI gas engines in
the power range from 0.75 to 7.5 MW at speeds up to 1,030 rpm.
Deutz AG
Deutz, headquartered in Cologne, Germany, is one of the worlds largest independent diesel
engine manufacturers. It produces diesel engines for construction and agricultural machinery,
commercial vehicles, buses, ships, lifting and conveying vehicles, compressors, and generators in
power plants and gensets. Deutz resulted from the combination of Deutz Mortoren-Werke
Mannheim AG (MWM) and Deutz Motor GmbH, major independent diesel engine
manufacturers previously part of the KHD Group. Deutz had been written off by many observes
about three years ago because of the KHD Groups severe financial problems. However, with the
support of the German government, local government, and Deutsche Bank AG, Deutz has
recovered and is doing well. Deutz engines are distributed worldwide. In 1998 Deutz had sales
engine sales of about $800 million, about 13% of which occurred in the United States. In 1998
Deutz manufactured 155,000 diesel engines, ranging 4-7,400 kW. Future plans include the
manufacture of 200,000 diesel engines by the year 2001. Volvo has been recruited as a major
customer, gaining entry to the commercial vehicle market.
Deutzs diesel engine product line ranges from 4-7,400 kW, including the new engines
developed in its collaboration with GE Transportation Systems (discussed under GETS earlier)
6-21

Its gas engine product line ranges from about 250-3,600 kW and apparently includes 600-1,700
kW micropilot DF engines.
Deutzs worldwide sales and service network includes 20 subsidiaries, 10 representative offices,
29 service centers, and more than 1,300 service partners. Deutz has one subsidiary each in the
united States and Canada, plus more than 30 service, support, or representative centers/offices in
the North America.
The KHD Humboldt Wedag AG subsidiary concentrates its efforts on cement and other
processing technology, including the primary aluminum technology. In this area, high efficiency
kilns are supplied for cement manufacture and coke calcining.
Jenbacher Energiesysteme AG (JES)

Headquartered in Jenbach, Austria, JES is a member of the Auricon Group, an Austrian group of
companies with holdings in medium-sized engineering and plant construction companies. The
Auricon Groups 1998 revenues were about $440 million, of which Jenbacher accounted for
about $210 million. The revenues of the energy systems division were about $190 million.
Another Auricon subsidiary manufactures railway vehicles.
JESs operational activities lie in the production of gas engine-driven plantsprimarily
cogeneration systems. Its engines all operate at 1,500 rpm. A high-efficiency gearbox is used for
power generation at 60 Hz. The manufacturer specializes in both natural gas and biogas
applications. It has been very successful in selling engines for biogas plants in Europe and
Australia, and has recently secured important landfill gas projects in the United States. JES
introduced a 2,800 kW high-speed lean-burn, low-emissions engine in 1998claimed to be the
only high speed engine in the world to have this power output. The number of cogeneration
plants sold rose to 383 units, bringing JESs installed power output to 470 MW. The introduction
of its new 20-cylinder gas engine, with a power output of 2,800 kW went well. Four units were
installed in Germany and 8 units in Spain. Eight 1,700 kW units are installed in a new 13.5 MW
landfill gas power plant in Chicago, Illinoisclaimed to be the worlds largest engine-based
landfill gas power generation plant.
JESs marketing activities are mainly concentrated in Western Europe. In 1998, sales were good
in Spain, France, England, Germany, and Italy, while markets stagnated in Holland and
Denmark. Jenbacher reentered the U.S. market in the mid-1990s with a new U.S. subsidiary,
after an unsuccessful effort to market here through a representative in the 1980s. Since then
markets in the United States and considers that market most important in the long term.
Jenbacher also markets in Southeast Asia and Australia.
With the recent (1999) agreement with GE Power Systems, making GE a JES distributor to many
parts of the world, JESs sales and markets should grow. However, much will depend on how
well GEa long-time manufacturer and vendor of CTs and CT power systemsperforms in its
new added role as SI engine marketer and power systems provider. GE is now the exclusive
distributor of JES engines for natural gas applications in North America and a non-exclusive
distributor in other parts of the world. International Power Technology (IPT) of Foster City,
California remains the distributor for biogas applications.
6-22

MAN B&W Diesel AG and S.E.M.T. Pielstick

MAN B&W of Augsburg, Germany has been a leading international manufacturer of diesel
engines for many years. The company is a wholly-owned subsidiary member of The MAN
Group, one of Europes largest engineering groupswith annual sales of approximately $13
billion. The companies that make up the MAN Group are engaged around the world in the fields
of machinery, plant construction, commercial vehicle manufacture, and commerce providing
technologies for the energy, petrochemical, chemical, transport, raw materials, printing, and
communications sectors.
MAN B&W states that it is the worlds leading supplier of large marine and stationary diesel
engines. This claim is based on having more than a 60% share of the worlds market for 2-stroke
diesel engines serving as main propulsion units and a 25% share of the worlds market for 4stroke engines for ships of 2,000 Giga tonnes or more. MAN B&W is also a provider of turnkey
power generation plant, all-inclusive marine propulsion facilities, turbochargers, and heating
technologies. It has two production facilities in Germany, three in Denmark, one in Singapore,
and two Pielstick facilities in France. The B&W in MAN B&W stands for Burmeister & Wain,
the Denmark component of MAN B&W. Burmeister & Wain Scandinavian Contractors of
Copenhagen, a former part of MAN B&W, was sold some years ago to Mitsui Engineering &
Shipbuilding Co., Ltd. (MES).
MAN B&Ws 1997/1998 revenues were approximately $500 million, not including S.E.M.T.
Pielstick, which it now controls. Total revenues estimated for Pielstick for the same period were
approximately $250-$300 million (including MTUs share).
From 1988 to the end of 1997 MAN B&W and MTU shared 50% co-ownership of S.E.M.T.
Pielstick, the French designer and manufacturer of 4-stroke, medium-speed, heavy-duty diesel
engines in the 0.6-25 MW size range. Pielsticks engines are respected worldwide for their
performance and reliability. From January 1, 1998, Pielstick has been a fully consolidated
member of the MAN B&W Diesel Group Divisionwith MAN B&W owning 66.6% of Pelstick
and MTU33.4%. As indicated earlier, Pielstick engines are used worldwide in baseload
stationary power plants and ship propulsion.
There are over 40 licensees of MAN B&W engines worldwide, almost every place that ships are
built, plus 75-80 service centers and authorized workshops. Pielstick has a comparable number
of licensees and authorized service providers.
MANs two-stroke and four-stroke diesel engines are used extensively worldwide in stationary
baseload power plants. In China alone, it is estimated that more than 1,700 MW of MAN fourstroke diesel engine power is installed. MANs product line consists of low-speed two-stroke
diesel and dual-fuel engines from 1-66 MW; medium-speed four-stroke diesel and dual-fuel
engines from 0.4-16 MW; and four-stroke lean-burn prechamber SI engines from 1-3 MW.
MAN Dezentrale Energiesysteme GmbH, another MAN group subsidiary, manufactures diesel
and SI engines under about 800 kW. MANs dual-fuel engines were developed with licensees.
MESMANs most productive 2-stroke licenseeled the development of the high-pressure
gas-injected dual-fuel version of the low-speed engines in the mid-1990s. At the same time,
Fairbanks Morse assisted MAN B&W in the development of micro-pilot precombustion chamber
6-23

dual-fuel versions (0.4-16 MW) of MANs four-stroke diesel enginesbased on FMs

prechamber technology. MAN B&W is now marketing these engines and FM is now a licensee
of some of these DF engines for applications in the U.S.
MAN B&W recently developed a 4-stroke 1,200 rpm engine with unrestricted heavy oil
capabilityapparently a first for high-speed diesel engines. It is available in five in-line sizes
from 500-900 kWs. More than 150 of these units have been sold and a number of the engines
now in service have clocked up to 6,000 operating hours. A larger new generation diesel
engine prototype, based on the principles of the foregoing engine, is now in testing.
MTU Motoren-und Turbinen Union Friedrichshafen GmbH

MTU (located in Friedrichshafen, Germany) and its subsidiaries form the MTU/Diesel Engines
Division of Daimler-Chrysler AG. Daimler-Chrysler is the new company formed by the 1998
merger of the Germany-based Daimler-Benz and U.S.-based Chrysler Corp. Its German
headquarters are in Stuttgart and its U.S. headquarters are in Auburn Hills, Michigan. The
merged companies reported 1998 revenues of $154 billion, of which about $1.0 billion were
from MTU.
MTU is one of the worlds leading suppliers of propulsion systems for ships, vehicles, military
tanks, locomotives, and stationary electric power generation. The engines include MTUs own
line of high-speed, four-stroke diesel engines, as well as the GE LM1600 and 2500
aeroderivative turbines that MTU packages. MTUs sales include diesel engines for all
applications, CTs, engine control systems, and engine components. It also includes MTUs share
of the revenue generated by Pielstick, in which MTU now has 33.4% ownership. MTUs own
diesel engine product size range is about 0.04-6.3 MW.
The MTU-DDC joint venture has developed two new families of advanced off-highway 3003,400 kW, four-stroke diesel engines (the series 2000 and 4000 engines). The companies also
formed two jointly-owned distribution and service companies. One takes advantage of MTUs
marketing success throughout Europe and Asia. The other relies on DDCs marketing, sales, and
service strengths in the Americas. MTU attributed a near-doubling of its North American sales in
1995 (to approximately $40 million) to the cooperation with DDC. MTU is developing markets
for its Series 2000 and 4000 in stationary power generation, in output ranges above 1,000 kW
with French genset manufacturer SDMO. Other MTU technologies include fuel cells, fuel
injection systems, and drive shafts.
Late in 1997 MTU and SKL Motoren- und Systemtechnik GmbH (another engine manufacturer
based in Magdeburg, Germany) entered into a cooperative agreement for the development,
production, and sale of gas and in-line diesel engines. SKL manufactures 450-2,800 kW diesel
engines and 125-375 kW SI engines. In the new cooperative program, SKLs development
activities initially are centered around developing 700-1,700 kW gas engine versions and 5001,000 kW diesel engine versions of the MTU/DDC Series 4000 diesel engines. In addition, SKL
is proceeding with its own development program. The jointly developed engines will be sold and
serviced through the existing German and international sales organizations of both companies.
Also, SKL engines can be marketed via MTUs global sales network, thereby supplementing
MTUs product range. SKLs design and supply capabilities include the full range of genset and
6-24

cogeneration modules, turnkey cogeneration power plants, and exhaust gas emissions control
systems. According to DDC, MTU will have the option of acquiring SKL after three years of
collaboration.
Rolls-Royce (Allen Diesels and Ulstein Bergen)

Rolls-Royce plc (RR), with headquarters in London, England, is a major provider of aircraft
engines, aeroderivative CTs, REs and related services throughout the world, with gross revenues
of about $7 billion. The aerospace segment of its business accounts for about 80% of the
revenue.
RR is an international competitor in the supply of aeroderivative CTs for land-based and offshore power generationfrom the small Allison CTs to RRs 52 MW Trent turbine. RR
acquired Allison about 4-5 years ago, and subsequently acquired the American packager of REs
and Allisons and KHIs CTs, U.S. Turbine Corporationnow called Rolls-Royce Energy
Systems. The latter would be RRs vehicle for bringing REs into the U.S. market.
Allen Power Engineering Limited, a member of the aerospace business group, manufactures
diesel engines, small steam turbines and valves. In 1998, Allen introduced a new high-efficiency,
reduced-emissions diesel engine claimed to be the most powerful in its classthe Allen 5000. It
comes in sizes up to about 8,150 kW and is aimed primarily at the international stationary power
market.
RR also just recently strengthened its diesel and gas engine manufacturing and marketing
capabilities with the late 1999 acquisition of Vickers plcthe British company that had just
acquired the Ulstein Group, including the respected Norwegian engine builder, Ulstein Bergen.
This adds the Ulstein gas engine and diesel engine product line to RRs Allen Diesels line.
Presumably the recent agreement between Ulstein Bergen and Hyundai Heavy Industries (Korea)
to work together on engine production and design.
Ulstein Bergen is one of the leading European manufacturers of diesel and lean-burn SI engines
for marine and stationary power applications. Ulstein develops, builds, markets, and services
diesel engines for the marine market and lean-burn gas engines for on-shore power stations. It
has a large number of SI engine cogeneration plant installations in Scandinavian countries. It has
sales and services representatives in the following countries outside of Norway: Korea,
Singapore, China, India, Spain, Germany, the Netherlands, Denmark, the United Kingdom, the
United States, Canada, and Brazil.
Before its May 1999 take-over by Vickers plc, Ulstein Holdings ASA (based in Ulsteinvik,
Norway) ranked as one of the worlds leading suppliers of maritime technology. The group
consisted of 35 companies in 16 countries, with operations grouped into five business areas:
design and ship systems, shipbuilding, engines, propulsion, and deck machinery and steering
gears. The total operating income for 1998 was about $680 million. The acquisition of all of
Ulstein (except the companies in the shipbuilding business area) was completed by U.K.-based
Vickers plc in May 1999.
6-25

RR is also an international competitor in the supply of aeroderivative CTs for land-based and
off-shore power generationfrom the small Allison CTs to RRs 52 MW Trent turbine. RR
acquired Allison about 4-5 years ago, and subsequently acquired the American packager of REs
and Allisons and KHIs CTs, U.S. Turbine Corporationnow called Rolls-Royce Energy
Systems. The latter would be RRs vehicle for bringing REs into the U.S. market.
Diesel & Gas Turbine Worldwide just reported that there are strong rumors in the industry that
RR also will make a bid for all of Alstoms diesel engine business, since Alstom supposedly has
given indications that it does not regard the diesel engines as part of its core activities. All of
these various diesel engine companies are strong in the marine business, in which RR is a major
provider of CT propulsion systems. In addition, RR also has a new distribution agreement with
Niigata, but only for Niigatas 13-15 MW HLX engines, which are not covered by Niigatas
agreement with GE Power Systems.
Wrtsil NSD Corporation

Wrtsil NSD, headquartered in Helsinki, Finland, is now 84.6 % owned by Metra of Finland
and 15.4% by Fincantieri of Italy. It was formed by the April 1997 merger of Wrtsil Diesel and
New Sulzer Dieselcreating the largest organization of its kind in the worldand one of the
worlds most aggressive and formidable competitors. Wrtsil NSD offers complete power
solutions for power plants and for marine propulsion. It has a comprehensive product line of
diesel and lean-burn gas engines. The company designs, licenses, manufactures, sells, and
services Wrtsil, Sulzer, and GMT engines with unit outputs ranging from 0.5-66 MW. It has
become successful at selling the gas engines in the United States and Canada, as well as Europe,
for stationary power and cogeneration applications.
Wrtsil NSD has ownership in key business alliances with other engine manufacturers,
including the Cummins Wrtsil (CW) joint venture, which was created in 1995. Wrtsil and
the U.S.-based Cummins Engine Company are 50/50 partners. The joint venture has become a
major factor in Wrtsils SI engine sales in North America and Europe during the past two
years. As of March 1999 Grandi Motori Trieste (GMT) became a fully owned subsidiary of
Wrtsil NSD under the name Wrtsil Italia S.p.A. (Ownership in GMT had been previously
shared 40/60 with Fincantieri of Italy, GMTs sole owner before the 1997 merger.)
Wrtsil NSD reported sales in 1998 of about $2 billion, accounting for 70% of Metras total
sales. Sales from the marine engine division accounted for about 34% (about $680 million), the
power plant business about 39% ($780 million), and service and sales about 26% (about $520
million). The joint venture Cummins Wrtsil encountered problems in introducing its new
engine portfolio, which required fortifying investments from the partners. Overall, due to
restructuring, decreased Asian power project activities, and losses of its associated companies
(including the CW joint venture) Wrtsil NSD showed a 32% net operating loss for 1998. It had
a smaller (5%) net operating loss for 1997. The years 1994-1996 showed about 10-15% net
operating profits.
Medium- and high-speed engines are manufactured in several Wrtsil NSD group factories in
Europe and in factories in the U.K. and France owned by the joint venture companies. The
Sulzer low-speed engines are manufactured mainly by about 40 licensees worldwide. Extensive
6-26

worldwide sales and service networks (including licensee bases) support the worldwide activities
of Wrtsil NSD. Similarly the partners worldwide sales and service networks support the CW
joint venture.
To support the expansion of its marketing and sales efforts in North America and The Caribbean,
several years ago Wrtsil Diesel established a manufacturing and assembly facility in Mount
Vernon, Indiana on the Mississippi River. The Mount Vernon plant is located within a large
industrial complex owned by Babcock & Wilcox (B&W), which was already equipped with
heavy lift capabilities. In addition, B&W has provided some assistance to Wrtsil in the form
of welding and fabrication expertise. The U.S. manufacturing operation has enabled Wrtsil to
win a large contract for the supply of engines to the U.S. Navy, which was one of the companys
major targets in locating here.
Japan
An overview of the major Japanese RE manufacturers is provided in Table 6-4. Five of them
IHI, Hitachi Zosen, KHI, MHI, and MESare among Japans largest shipbuilding and heavy
industries companies. Their RE product lines are in most cases built under license from one or
more of the major European marine engine manufacturers. It is common for Asian manufacturers
to have licenses from two or more original developers in order to provide a full product line.
Among these five companies, MHI and MES also market one or more engines that they have
developed. Niigata Engineering, a medium-scale heavy machinery and engineering company,
also sells engines of its own design, as well as engines built under license. NKK, a very large
steel maker, markets one engine built under license. Daihatsu Diesel and Yanmar Diesel, two old
diesel engine builders, and Komatsu, a major construction machinery manufacturer, sell only
their own engines. In addition, Hitachi Zosen, KHI, and MES have collaborated in the
development of an advanced diesel engine under the umbrella of the advanced diesel engine
development organization, ADD Inc. (discussed earlier in Section 4).
6-27

Table 6-4
Major Japanese RE Manufacturers: Stationary Power Product Lines and Revenues
Company (Parent)
1998 Revenues,
$Millions
Marketing
Type
Diesel
DF
SI
Direct
ADD Inc. (see

comments)
4-stroke
3.3-10.3
--
--
N.A.
See
Hitachi
Zosen,
KHI, and
MES
Daihatsu Diesel Mfg.

Co., Ltd.
4-stroke
0.5-6.0
--
--
N.A.
N.A.
Builder of marine diesel engines since early 1900s.
Diesel United, Ltd.

(Ishikawajima-Harima
Heavy Industries Co.,
Ltd. IHI)
4-stroke
3.2-21.8
--
--
N.A.
8,742
2-stroke
4.0-44.7
--
--
IHI is a major E&C company; active worldwide. Pielstick

licensee. Also builds 2-stroke engines under license from
Wrtsil NSD. Also a packager of GE aeroderivative
CTs.
Hitachi Zosen Corp.
4-stroke
4.0-12.5
--
--
N.A.
4,292
2-stroke
1.1-66.6
--
--
Major engineering, heavy equipment mfrg., &

construction company. 4-stroke license from NSD; 2stroke license from MAN B&W. Also a packager of
Allison and EGT CTs.
Kawasaki Heavy
Industries Ltd.
(KHI)
4-stroke
0.4-21.0
--
--
N.A.
9,973
2-stroke
1.1-66.6
--
--
Comprehensive heavy machinery, engineering,

shipbuilding & construction company. License of MAN
B&W (2- & 4-stroke) & Pielstick. Also a leading
designer/manufacturer of small industrial CTs.
Komatsu Ltd.
4-stroke
0.1-1.2
--
--
N.A.
8,997
Worlds 2nd largest mfr. Of construction machinery, and

related diesel engines. In JV with Cummins to develop
and manufacture new diesel engines.
Mitsubishi Heavy
Industries, Ltd.
(MHI)
4-stroke
0.01-4.3
--
2.3-3.7
N.A.
24,121
2-stroke
1.4-63.9
--
--
Japans largest heavy machinery manufacturerincluding

shipbuilding, nuclear power plants, & prime movers.
Wrtsil NSDs leading 2-stroke engine licensee. Also
sells its own design 2-stroke stroke engines. Coopers
Superior 2400 diesel & SI engines based on license of
Mitsubishis SU Series of diesel engines.
6-28
Packager
s & OEMs
Turnkey Engines/
Plant
Mfrg. Div.
Capability
Parent
Corp.
Total
Comments
Collaborative venture of MES, KHI, Hitachi Zozen, and

the Japan Development Bank. Unique new high-output
engine for ships and stationary power. Built by MES
under license.

Company (Parent)
1998 Revenues,
$Millions
Marketing
Type
Diesel
DF
SI
Direct
4-stroke
3.3-10.3
--
--
2-stroke
1.1-66.6
1.1-66.4
--
Niigata Engineering Co., 4-stroke

Ltd.
0.2-21.2
0.8-6.9
0.9-5.1
NKK Corp.
4-stroke
0.4-21.2
--
0.6-1.2
Yanmar Diesel Co., Ltd.
4-stroke
0.003-3.5
--
--
Mitsui Engineering &

Shipbuilding Co., Ltd.
(MES) (The Mitsui
Group)
Packager
s & OEMs
Turnkey Engines/
Mfrg. Div.
Plant
Capability
Parent
Corp.
Total
Comments
N.A.
3,959
(MES
only)
One of the leading shipbuilders, a leading marine diesel

mfr., process & power plant supplier, E&C company.
Most productive 2-stroke engine licensee of MAN B&W.
525
1,763
Medium-scale heavy machinery mfr. Products center

around oil refining & petrochemical plants. Also
construction equip., machine tools, & power/cogen plants.
Pielstick licensee.
N.A.
8,377
One of the worlds 5 largest steelmakers; 2nd largest in

Japan. Owns 70% of National Steel (U.S.A.). Also in
shipbuilding & plant engineering. Licensee of Pielstick.
Long-term collaboration with Alstom on thermal & CT
power plants.
2,500
(est.)
2,500
Pioneered diesel engine development in Japan. Largest

non-automotive diesel mfr. in the world. Industrial &
marine engines. Sold worldwide. Only 5-50 kW gensets
avail. from U.S. & Canada pkgrs.. Developing Miller
cycle gas engine.
(est.)
Based on Japans fiscal year ending March 31, 1999, unless otherwise indicated.
6-29

The diverse range of engineering and manufacturing activities of the five heavy industries
companies typically includes: shipbuilding, offshore platforms, large structures, heavy
machinery (e.g., for construction, mining, industrial manufacturing, materials handling), power
plants, petroleum/petrochemical and chemical plants, industrial plants, and diesel engines.
Specific additional activities will be noted with the discussions below.
ADD Inc.
ADD Inc. is a collaborative venture of Mitsui Engineering & Shipbuilding Co., Ltd. (MES),
Kawasaki Heavy Industries, Ltd. (KHI), Hitachi Zosen Corp., and the Japan Development Bank,
formed in 1989. ADDs objective was to develop an advanced medium-speed, 4-stroke diesel
enginecalled the advanced diesel engine development (ADD) engine. Much of the basic
research leading to the ADD program was conducted by an organization established in 1983 by
seven leading Japanese shipbuilders, including MES, KHI, and Hitachi Zosen.
The ADD engine is an innovative, compact, lightweight medium-speed 4-stroke engine that has
a single valve per cylinder (serving both intake and exhaust). It is a V-engine, available in 6-18
cylinder versions from 3.3 to 10.3 MW, and can burn heavy oil. The ADD engine is designed to
produce 40% higher output than any engine of equivalent bore, while being 30% lighter than
other engines of equivalent output, and is claimed to be highly reliable and easy to maintain. The
engines are built by MES under license from ADD.
Four 8.5MW ADD engines are now in service at a 32 MW IPP plant in Malaysia, in addition to
the ADD engines that are now in commercial marine service. The ADD engine could become a
formidable competitor in the Asian power market, as well as in Europe and other parts of the
world, since MES also owns Denmark-based Burmeister & Wain Scandinavian Contractor A/S
(BWSC), a large A&E and engine manufacturer. BWSC has constructed more than 115 diesel
power plants in 36 countries, most of which are believed to use engines from MAN B&W,
BWSCs former owner.
Daihatsu Diesel Manufacturing Co., Ltd.

Daihatsu Diesel Manufacturing Co., Ltd. (headquartered in Osaka) has been building diesel
engines for over 90 years. Daihatsu has a worldwide market and service network that includes
the Pacific Rim/Australasia, the North Sea region of Europe, Greece, the eastern United States
and Canada, Venezuela, and Brazil. It has two plants at Moriyama, producing 4-stroke, mediumspeed, heavy oil-rated engines in unit sizes 0.5-5.3 MW for marine propulsion, marine auxiliary
power, and stationary power generation and cogeneration. It also has developed small gas
engines and CTs. Daihatsus other business ventures include small automobiles, automotive
components, and commercial building components. Annual production and sales figures were
not available for this analysis.
6-30

Diesel United, Ltd.

Diesel United, Ltd. is a subsidiary of Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI,
headquartered in Tokyo), one of Japans largest comprehensive heavy machinery manufacturers
strong in aerospace and defense fields. Diesel United manufactures low- and medium-speed
large-capacity diesel engines for ships and land-based power generation through technological
collaboration with Wrtsil NSD Switzerland Ltd. and SEMT of France. IHI operates globally,
with nearly $9 billion in 1999 sales revenue. IHI operates 17 domestic shipyards and works, and
has extensive experience in cogeneration systems comprising gas turbines, diesel engines, and
heat recovery systems. It is also active in the field of environmental control technologies (e.g.,
SCR). IHI has a very large share of the Japanese market for jet engines, being involved at
various levels with GE, Pratt & Whitney, and Rolls-Royce in engine development and
manufacture. It is also a packager of GE aeroderivative turbines, as well as Allison and
Turbomecca CTs. IHI builds all types of power plants, and has close ties with Toshiba Corp. in
this application (especially nuclear).
Hitachi Zosen Corp.

Hitachi Zosen Corp. (headquartered in Osaka) is one of Japans leading heavy machinery and
engineering companies. It is part of the Hitachi Zosen Group (whose major stockholder is the
Sanwa Group), which comprises 81 subsidiary and affiliated companies. Hitachi Zosen does
business globally with about $4.3 billion in 1999 sales, and is active in a wide range of fields,
encompassing trading, designing, manufacturing, engineering, construction, maintenance,
transportation, and real estate. Its primary business areas (in terms of percent of 1999 sales) are
environmental systems and plants (37%), shipbuilding and offshore structures (22%), steel
structures, construction machinery, and distribution equipment (21%), and machinery and prime
movers (15%). It operates eight domestic manufacturing facilities.
Hitachi Zosen manufacturers 4-stroke, medium-speed diesel engines under license from Wrtsil
NSD and 2-stroke, low-speed engines under license MAN B&Wsupplying domestic and
overseas shipbuilders, as well as stationary power customers. It is also a packager of Allison and
EGT CTs.
Kawasaki Heavy Industries Ltd. (KHI)

KHI (headquartered in Kobe) is one of Japans largest comprehensive heavy machinery and
engineering companies, with a long history in shipbuilding, as well as being a prominent
motorcycle manufacturer. Its additional manufacturing activities include aircraft and
components, aircraft jet engines, 200-5,700 kW CTs, compressors, robotics, aerospace, railway
rolling stock, environmental technologies, (e.g., SCR and SO2 scrubbers), and consumer products
(e.g., all-terrain vehicles, jet skis, general-purpose gasoline engines, and transmissions). It is also
a licensed packager of Rolls-Royce aeroderivative turbines for ship propulsion. KHI operates 15
domestic manufacturing plants, and conducts business globally, with close to $10 billion in 1999
sales revenue. Its primary business areas (in terms of percent of 1999 sales) are multipurpose
machinery (29%), aerospace (23%), industrial machinery and steel structures (16%),
environmental equipment and engineering plants (15%), and shipbuilding (12%).
6-31

KHI has both 2-stroke low-speed and 4-stroke medium-speed diesel engine manufacturing
licenses from MAN B&W (Germany), as well as a 4-stroke medium-seed diesel engine license
from S.E.M.T. Pielstick (France). The engines apparently are built predominantly for marine use.
KHI is also conducting R&D on NOx reduction with the MAN B&W engines.
Komatsu Ltd.
Komatsu (headquartered in Tokyo) is Japans largest integrated manufacturer of construction
machinery, second in the world to Caterpillar. Komatsu operates globally, with nearly $9 billion
in 1999 sales revenue. In addition to manufacturing facilities in Japan, Komatsu has plants in the
United States, Canada, Brazil, Indonesia, and the United Kingdom. While deriving nearly 70%
of its revenue from its primary activityconstruction and mining equipmentKomatsu also
continues to expand its business in electronics, civil engineering and construction, industrial
machinery, and other operations (which includes diesel engines, logistics, and computer
software).
Although Komatsu sells 100-1,200 kW diesel engines for gensets, marine applications, rolling
stock, etc., it does not appear to emphasize the engine market by itself as a major business
activity. Komatsu is involved in twin joint ventures with Cummins, in which Cumminsdeveloped engines are being manufactured in Japan and Komatsu-developed engines are being
produced in the United States.
Mitsubishi Heavy Industries, Ltd. (MHI)

MHI (headquartered in Tokyo) is Japans largest comprehensive heavy machinery manufacturer.
MHI operates globally, has 14 domestic manufacturing facilities, and ranks first in Japan in
shipbuilding, nuclear power plants, aerospace, prime movers, and other heavy machines. MHI
also fills the majority of orders for arms from Japans Defense Agency, and is a major
international developer and supplier of NOx control technologies (e.g., combustion control and
SCR) an SO2 scrubber technologies. MHI had over $24 billion in sales revenue in 1999. Its sales
continue to be dominated by the machinery and plants sector, which accounted for 65% of total
sales in 1999, while the shipbuilding/steel structures and aerospace systems sectors each
accounted for only 16% and 14%, respectively.
MHI is the oldest and most productive of licensees for the Wrtsil NSD/Sulzer 2-stroke, lowspeed diesel engine. Additionally, MHI has developed its own version of these giant diesel
engines, which it markets in competition with Wrtsil NSD. Most of the marketing takes place
primarily in Japan, because MHIs worldwide service network is not comparable to Wrtsil
NSDs. MHI also manufacturers 4-stroke, medium-speed diesel engines of its own design,
covering the 0.01-15.5 MW power range for all applications. The 3.7-15.5 MW engines are
heavy oil capable. MHI also manufacturers 2.5-3.8 MW low-emissions SI engines. MHI markets
its medium-speed engines worldwide. Cooper Energy Services Superior 2400 Series of diesel
and SI engines are based on diesel engine technology licensed from Mitsubishi.
6-32

Mitsui Engineering & Shipbuilding Co., Ltd. (MES)

MES (headquartered in Tokyo) and a member of the Mitsui Group, is one of Japans leading
shipbuilders. The company operates five manufacturing facilities in Japan, does business
globally, and had 1999 sales of nearly $4 billion. Its primary business areas (in terms of percent
of 1999 sales) are shipbuilding (36%), machinery (including engines) (26%), industrial plants
(18%), and steel structures/construction (16%). Its additional business activities include:
environmental control technologies (e.g., waste treatment, waste incineration, NOx reduction, and
SO2 reduction), factory automation, and advanced distribution systems (e.g., at ship cargo
loading and container terminals). MES is the worlds leading producer of large marine diesel
engines2-stroke, low-speed engines that it licenses from MAN B&W. In 1994, it sold about 60
of these engines, including one or two for a barge-mounted power plant. MES lead the
development of the high-pressure gas-injected dual-fuel version of these engines in collaboration
with MAN B&W. As discussed above under ADD, MES is also manufacturing the ADD engine.
MES also manufacturers seven light industrial turbines of its own design in the 1-23 MW size
range.
Niigata Engineering Co., Ltd. (NEC)

Niigata Engineering Co., Ltd. (NEC) is a medium-sized comprehensive heavy-duty machinery
manufacturer whose products center around the design and supply of oil refining and
petrochemical plants. NEC had over $1.7 billion in sales revenue in 1999. Its primary business
areas (in terms of percent of 1999 sales) are plant engineering (40%), power systems (30%,
including engines), machine tools (7%), and other (23%, including industrial machinery,
construction machinery, transportation systems, and shipbuilding).
NEC began manufacturing REs in 1919 and today supplies marine, industrial, and stationary
markets with medium-speed and high-speed diesel engines of its own design, ranging from 0.21.5 MW, as well as medium-speed 0.9-7.8 MW DF engines and 0.9-5.2 MW lean-burn SI
engines. Niigata is also a manufacturer of 2-21 MW medium-sped diesel engines under license
from Pielstick. NEC has a distribution agreement with GE Power Systems for its new line of
diesel engines, the HLX line of medium-speed, heavy oil-capable diesel engines ranging from
1.2 to 9.7 MW.
The global market for the HLX engines will be shared with GE Power Systems and Rolls-Royce.
GE will be the exclusive distributor for the Americas, Europe, Africa, and parts of the Middle
East and Asia. NEC will be the exclusive distributor for Japan, Korea, Iran, and Iraq. China and
certain other territories will be served by both companies. NEC will supply the engines to GE,
which will have the sales, applications engineering, system integration, financing, and long-term
service and parts responsibilities in its territories. Rolls-Royce has a preexisting agreement with
NEC covering the 13-15 MW HLX engines.
NKK Corp.
NKK (headquartered in Tokyo) is one of the worlds five largest steel makers, and the second
largest in Japan. Additionally, NKK holds a 70% stake in U.S.-based National Steel. NKK
6-33

operates six domestic manufacturing facilities, and had over $8.3 billion in 1999 sales revenue.
Steel products dominated its operations, accounting for 60% of its 1999 sales. However, it is also
involved in industrial plants and shipbuilding, which accounted for 21% and 14%, respectively,
of 1999 sales. Although NKK had a long-term collaboration agreement with GEC Alsthom for
the supply of thermal and CT power plants, the status of that collaboration could have been
changed by the recent creation of the ABB Alstom Power joint venture.
NKK produces 2-21 MW medium-speed 4-stroke diesel engines under license from Pielstick, as
well as 0.4-1.2 MW multi-fuel engine of its own design, which can be operated as a baseload SI
engine or as an emergency diesel engine.
Yanmar Diesel Engine Co., Ltd.

Yanmar (headquartered in Osaka) claims to be the largest non-automotive diesel manufacturer in
the world, and is one of the few diesel manufacturers that makes all its own parts. Yanmar is also
involved in the manufacture of machine tools, agricultural equipment, construction equipment,
and small boats. Yanmars recent annual sales appear to be over $2 billion. Yanmar operates six
plants in Japan, as well as plants in Brazil, Indonesia (one for engines and one for agricultural
machinery), Thailand, and France (construction equipment). Outside of Japan, Yanmar provides
international service through technical centers located in Singapore, Indonesia, the Netherlands,
and the United States (Chicago, Illinois).
Yanmar supplies both industrial and marine markets worldwide with engine sizes ranging from 3
kW to 3.5 MW. Yanmars larger medium-speed engines are heavy-oil capable. Also, as
discussed briefly in Section 2, Yanmar is investigating the Miller cycle for natural gas engines.
While no Yanmar engines larger than 5 kW are sold in the United States, 5-50 kW Yanmar
gensets are available from a few OEMs.
Small Engine Manufacturers and Suppliers to Original Equipment

Manufacturers (OEMs) and Packagers
The market for industrial engines has developed favorably in North America and Europe. There
are numerous small engine manufacturers and suppliers to U.S. original equipment
manufacturers and packagers. Representative manufacturers and their approximate product size
ranges for 60 Hz operation are listed in Table 6-5. Selected manufacturers are discussed briefly
in the following paragraphs.
6-34

Table 6-5
Representative Manufacturers of Engines Under 300 kW (1800 rpm, 60 Hz, continuous, if
applicable a)
Manufacturer
Arrow Specialty Co. (U.S.A.)
Caterpillar, Inc. (U.S.A.)
Cooper Energy Services (U.S.A.)
Cummins Engine Co. (U.S.A.) (including
Subsidiary Onan Corp.)
Deere Power Systems/John Deere
Engine Division (U.S.A.)
Detroit Diesel Corp. (U.S.A.)
Deutz AG (Germany)
Ford Industrial Power Products LLC (U.S.A.)
GM Powertrain (U.S.A.)
Hino Motors, Ltd. (Japan)
Honda Motor Co. (Japan)
Isuzu Engine Division (Japan)
Iveco S.p.A. (Italy)
Komatsu Diesel Co. , Ltd. (Japan)
Lister-Petter (U.K.)
Mazda Motor Co. (Japan)
Mitsubishi Engine (Japan)
Perkins (U.K.)
Nissan Diesel (Japan)
Nissan Industrial Engines (U.S.A.)
Scania Industrial & Marine Engines (Sweden)
Volkswagen Industrial Engines (Germany)
(distributed in U.S.A. by Lister-Petter)
Volvo Penta (Sweden)
Waukesha Engines (U.S.A.)
Yanmar Diesel Co. Ltd. (Japan)
Engines
SI
D
SI
SI
Diesel
SI
Diesel
SI
Diesel
SI
Diesel
SI
Diesel,
SI
Diesel
SI
Diesel
SI
Diesel
Diesel
SI
Diesel
Diesel
Diesel
SI
Diesel
Diesel
Diesel
SI
Diesel
Diesel
Diesel
SI
Diesel
Size, kW
30-68
40+
28+
250+
4+
4+
25-245
100-137
90+
150-275
4+
250+
45-90
14-77
55-70
30-75
35-165
1-8
18-242
30+
50+
100+
2-32
20-44
22 only
15+
23+
20-150
12-46
140-360
50-103
91-455
80+
5+
Parent Company
n.a.
Same
Same
Same
John Deere Co. (U.S.A.)
Same
The Deutz Group (Germany)
Ford Motor Co. (U.S.A.)
General Motors (U.S.A.)
Toyota Motor Group (Japan)
Same
Isuzu Motor Ltd. (Japan)
Fiat Group (Italy)
Komatsu Ltd. (Japan)
Schroeder (U.K.)
Same
MHI (Japan)
Caterpillar (U.S.A.)
Nissan Motor group (Japan)
Nissan Motor group (Japan)
Volvo (acquired Scania in 1999)
Volkswagen AG (Germany)
Volvo AB (Sweden)
Halliburton Co. (U.S.A.)
Same
Below about 25-40 kW, many of the small engines may be unsuitable for continuous duty. Intermittent, peaking,
and standby ratings would be higher. Consult the manufacturer for individual unit specifications.
b
Unit size followed by + indicates that the manufacturers product line extends well above 300 kW
Source: SFA Pacific,
6-35

Deere Power Systems Group

Deere Power Systems Group (DPSG, based in Waterloo, Iowa) is the subsidiary of Deere &
Company (based in Moline, Illinois) that supplies engines, axles, and transmissions to OEMs. It
is a leading manufacturer of off-highway diesel engines for internal use, with a growing presence
in OEM markets. Deere also manufactures Natural gas engines. Deere engines are primarily
supplied in three areas:
Industrial diesel enginesmore than 700 OEMs around the world use John Deere diesel
engines in agricultural and industrial equipment, gensets, portable compressors, fork lifts,
irrigation, and many other applications.
Marine enginesJohn Deere 4- and 6- cylinder in-line 75-450 hp (56-336 kW) diesel
engines are available for propulsion, auxiliary, and genset installations.
Alternative fuel enginesJohn Deere 6.8 and 8.1 L compressed natural gas engines are used
in various applications in buses and heavy-duty trucks.
Spurred by strong sales of John Deere equipment and gains in external markets, the DPSG
recorded another year of growth in 1998, with overall sales of engines and power train
components up 13%, including a 19% increase in sales to OEMs.
Ford Industrial Power Products LLC

Ford Industrial Power Products (Ford IPP, based in Southfield, Michigan) is the wholly-owned
subsidiary of Ford Motor Co. (also based in Michigan) that supplies Ford engines and powertrain
components to the industrial, marine, and specialty vehicle markets. Ford IPP was formed in
1997 when the Ford Power Products subsidiary was split into two groupsthe Engine Group
and Components Group. Ford IPP is the largest supplier of 25-174 hp gasoline and dry fuel
industrial engines in the North American market. The industrial market includes off-highway
equipment, such as chippers, irrigation pumps, sweepers, generator sets, airline baggage handlers
and aerial lifts. Products offered include 15-200 hp engines fueled by gasoline, natural gas, or
liquid propane. Multi-fuel capability is also available. Ford IPPs distributor and service dealer
network covers North America and Europe. Ford IPP also operates lead offices in Essex,
England and Koln, Germany.
Early in 2000, a newly released 80-100 hp Ford IPP V10 SI truck engine will be available for
industrial applications. The company apparently views this engine as a replacement for the
popular V8 SI engine that is used by packagers worldwide. Unfortunately, the V8 engine was
discontinued three years ago and the warehouse surplus of the engines will soon be used up.
Although the V10 is a more advance engine, prospective customers are concerned that it could
involve higher O&M costssimply because of having more cylinders, spark-plugs, and valves
than the V8.
GM Powertrain
GM Powertrain (based in Pontiac, Michigan) is the subsidiary of General Motors Corp. (GM,
headquartered in Detroit, Michigan) that supplies engines, castings, transmissions, and other
6-36

automotive components to OEMs. GM has grown into the worlds largest industrial corporation
and full-line vehicle manufacturer, reporting over $161 billion in sales revenue in 1998. GMs
worldwide automotive operations have been combined into a single global unit known as GM
Automotive Operations, composed of four regions: North America; Europe; Asia Pacific; and
Latin America, Africa, Mid-East.
GM Powertrain is an operating company of the GM North America (GMNA), one of the major
operating subsidiaries of GM Automotive Operations. GMNA reported $94 billion in sales
revenues in 1998, of which GM Powertrain accounted for approximately $12 billion. GM
Powertrain is one of the worlds largest automotive supplies, yet it has existed as a corporate
entity only since 1991 resulting from the merger of GMs Hydramatic and Engine Divisions. GM
Powertrain has operating and coordinating responsibility for 37 sites (which include plants,
engineering, and testing facilities) in 13 countries. It primarily manufactures products for GM
automobiles and trucks, but also has strong outside sales activity, including non GM-OEMs such
as AM General, Mercury Marine, Volvo, BMW, Daewoo, and Isuzu. GM Powertrain supplies a
wide variety of industrial engines to OEMs in the range 83-252 hp. Engines are manufactured in
plants in North America in Canada, Mexico, and the United States (in Michigan, New York, and
Ohio), and abroad in Argentina, Australia, Austria, Brazil, England, Germany, and Hungary.
Isuzu Engine Division

Isuzu Motors Ltd. (based in Tokyo, Japan) is one of the worlds leading manufacturers of
commercial vehicles (including light-duty passenger cars, and medium- and heavy-duty trucks),
engines, and other automotive components. It reported over $7.7 billion in sales revenue in 1999
(based on the Japanese fiscal year ending March 31, 1999). Isuzu offers more than 30 of diesel
engine models rated at 18-242 kW through its Engine Division. It developed and commercialized
Japans first small common rail direct-injection diesel engine in fiscal year 1998.
In December 1998 Isuzu signed an agreement to supply diesel engines and commercial vehicles
to GM. As a result, GM raised its equity stake in Isuzu to 49% from 37.5% through a private
placement, making GM Isuzus largest stockholder. Under the agreement, Isuzu will develop and
supply engines and commercial vehicles as a core component of GMs global diesel engine
strategy. This upgrades the 1997 alliance agreement between the two companies making Isuzu
the main entity responsible for developing and producing GMs diesel engines. Isuzus dieselengine technology has been earmarked for global expansion, and reported FY 1999 sales of $2.5
billion, accounting for about 33% of Isuzus total sales. In addition to plants in Japan, Isuzu has
several subsidiary and affiliated companies operating around the world in support of its engine
manufacturing activities, including Isuzu Motors America, Inc. (Plymouth Township, Michigan)
and DMAX Ltd. (Moraine, Ohio) in the United States, as well as others in Australia, Indonesia,
and Thailand. There are a number of Isuzu engine distributors in the United States. As part of
Isuzus assumption of a key role in GMs global diesel engine strategy, its European operations
have been expanded with the June 1999 start of full-scale production of diesel engines at a new
plant in Poland through the Isuzu Motors Polska Sp. Zo. subsidiary.
6-37

Iveco S.p.A.
Iveco (based in Torino, Italy), part of the Fiat Group of companies, is a major European engine
manufacturer. Iveco produced over 360,000 engines in 1998, offering a wide range of diesel
engines, rated 44-882 kW. The Engine Business Unit was created in early 1998 and given
responsibility for engine design, manufacture and marketing. This unit produced 345,409
complete engines and 17,680 kits. Iveco plans to release new 10 liter and 13 liter engines over
the next two years.
Iveco engines are supplied to several automotive OEMs, including Fiat, Renault, New Holland,
as well as being used in agricultural tractors and construction machinery, and Aifo industrial and
marine applications. Iveco is also involved in the EEA (European Engine Alliance), along with
New Holland and Cummins, for the development of the new range of engines known as the NEF
(New Engine Family), with 3, 4, 5 or 6 cylinders of one liter each, for use on agricultural and
commercial vehicles.
Nissan Industrial Engines

Nissan Industrial Engines manufactures four multifuel SI enginesLPG, gasoline, natural gas,
and a dual-fuel version that can be switched between natural gas and LPG. The sizes range from
42-152 hp at 3,600 rpm. Two of them are autoderivative engines, and the others were designed
originally as industrial engines. The engines are assembled at the Nissan Industrial Engines
headquarters and plant in Marengo, Illinois and sold to a number of U.S. OEMs primarily for
industrial applications and to three genset packagers via a network of 20 U.S. distributors.
The three packagers are Power Tech (Leesburg, Florida), Magnum Products (Berlin, Wisconsin),
and Gillette Manufacturing (in Indiana). Nissan elected to bring its SI engines into the U.S.
since it considers Ford Industrial Power Products to be the only competitor in small gas engines.
The relatively new Illinois assembly plant is an operation of Nissan Industrial Engine
Manufacturing USA Inc.
The parent Nissan Motor Co. in Japan has recently posted huge losses. Renault SA of France
(now the controlling shareholder) is enforcing a major restructuring of Nissan.
Volkswagen Industrial Engines

Volkswagen Industrial Engines is the division of Volkswagen AG (based in Wolfsburg,
Germany) that supplies engines, axles, and transmissions to OEMs. It offers diesel engines, rated
50-103 kW. In the U.S., VW engines appear to be used in niche markets. For example, the San
Diego packager Alturdyne has found that VW diesel engines are practical for remote
telecommunications back-up power.
In 1999, Volkswagen entered an agreement with Lister-Petter, Inc. (LPI) of Olathe, Kansas,
whereby Lister-Petter is now the importer and distributor of Volkswagen Industrial Engines, for
the United States and Canada.
6-38

This allows VW to focus on the considerable growth it is experiencing in its core business
automobiles. LPI is the western hemisphere subsidiary of Lister-Petter Ltd., Dursley, England,
which is owned by Schroedersan investment group. In addition to Lister-Petters line of small
(3-55 hp) diesel engines, LPI is also the North American distributor for Fiats Iveco Aifo diesel
engine line. In the U.K. Lister-Peter also manufactures Mitsubishis 40-80 hp S4S diesel engines
under license and sells them worldwide as part of its own brand line.
Volvo Penta
Volvo Penta (based in Gothenburg, Sweden), an independent subsidiary of the Volvo Group,
manufactures engines and transmissions for industrial and marine applications. Its industrial
engines for stationary applications are available in sizes ranging from about 90-500 kW.
Volvo Penta reported 1998 sales of approximately $600 million. In 1998 it acquired the 40%
interest in Volvo Penta Marine Products held by Outboard Marine Corp., making it a wholly
owned subsidiary. An agreement was signed whereby Volvo Penta will supply engines and
drives to OMC-owned companies. Also in 1998 Volvo Penta also terminated the agreement it
had with DDC covering distribution and servicing of Volvo Pentas diesel engines in North
America. In 1999 it will implement its portion of a new agreement that the Volvo Group has with
the German diesel engine manufacturer Deutz, whereby Volvo Penta will have an important role
as the Volvo Groups supplier of diesel engines to external customers.
In addition, Volvo has just acquired a 70% interest in the Swedish truck and bus manufacturer
Scania. This acquisition makes Volvo the number two truck and bus manufacturer in the world.
Genset Packagers and OEMs

In addition to packaging services provided by the distributors of many engine manufacturers,
there are countless independent packagers of REs worldwide. They range from suppliers of small
gensets to packagers of a wide range of gensets and even turnkey power and cogeneration plants.
A representative list of packagers serving the North American market is shown in Table 6-6. The
following discussion highlights a few major U.S. and international packagers. The packagers are
discussed in alphabetical order.
6-39

Table 6-6
Selected RE Genset Packagers and Plant Designers/Suppliers for the U.S. Stationary
Power Market
Company
Aggreko (owned by Christian
Salveson, large U.K. holding company)
Alaska Diesel Electric
Unit Size Range, kW

15-1,250
5-690
Manufacturers Used
Cummins, Iveco (Note: Aggreko builds gensets
and chiller packages for rental, and occasionally
sells only its substantially used equipment)
John Deere, Komatsu
Alturdyne
45-2,000
Caterpillar, Cummins, Detroit Diesel, John Deere,

Volkswagen
Ballard Engineering
100-3,000
Caterpillar, Waukesha
Caterpillar distributors
6,2,000
Caterpillar, Ford
400-16,000
Caterpillar, MaK
CNG Engines
50-60
GM Powertrain
Coast Intelligen
40-150
Caterpillar, Ford (cogeneration systems only)
Caterpillar International Power

Systems
Cummins distributors
2.5-4,000
Cummins and Cummins-Wrtsil
Cummins Wrtsil (joint venture)

Detroit Diesel distributors
5-2,000
Detroit Diesel
Elliott MagneTek Power Systems
10-2,000
Cummins, GM Powertrain, Isuzu, John Deere,

Mitsubishi, Volvo
Enercon Engineering
60-3,000
Many manufacturers, depending on project
F.G. Wilson (a U.K.-based Caterpillar

Subsidiary)
5-2,000
Caterpillar, Detroit Diesel, Perkins, Lister-Petter,

Ruston
GE Power Systems
200-9,700
Jenbacher, Niigata
Generac Corporation
8-1,000
GM, Mazda, Ford, Hino, Mitsubishi
Katolight Corporation
10-2,000
Cummins, Detroit Diesel, Ford, John Deere
Kohler Company
2.5-2,000
Detroit Diesel, Deutz, Ford, John Deere
Onan Corp. (a Cummins subsidiary)
4-4,000
Cummins
Perennial Energy Inc.
25-1,000
Caterpillar, Ford, GM Powertrain, Waukesha
Reagen Equipment Co.
17-550
Cummins, John Deere, Detroit Diesel, Deutz,

Isuzu, Perkins, MAN
RODI Power Systems, Inc.
14-320
John Deere, RODI is also developing its own DF

engine for TVA
250-15,000
Allen Diesels (a Rolls-Royce subsidiary), Niigata,

& expected to include Ulstein Bergen since RollsRoyces late 1999 acquisition of Vickers plc.
Rolls-Royce Energy Systems (formerly

U.S. Turbine Corp.)
RUDOX (an MHI distributor)
10-4,400
Mitsubishi
SDMO Groupes lectrognes (France)
10-1,600
Cummins, Deutz, Lister-Petter, MTU, Perkins,
6-40

Company
Unit Size Range, kW
Manufacturers Used
Volvo
Simpson Power (an MHI distributor)
10-4,400
Mitsubishi, Superior
Stewart & Stevenson Services Inc.
35-3,500
Detroit Diesel, GM/EMD, Superior, Waukesha,

Ruston, Mirrlees Blackstone
Synergy International Inc.
12-5,000
Cummins, Detroit Diesel, Ford, John Deere,

Paxman, Waukesha
60 & 75 only
Crusader Engines (based on GM V8 auto

block)also a Thermo Electron subsidiary.
Cogeneration and engine-driver chillers only.
Caterpillar engines with larger chillers.
Tecogen (subsidiary of Thermo Power

Corp., owned by Thermo Electron
Corp.)
UMR Power
100-1,200
Cummins, Mitsubishi, Waukesha (mainly

cogeneration systems)
Wrtsil NSD
600-15,800
Wrtsil NSD and Cummins-Wrtsil
Waukesha distributors
50-2,900
Waukesha
Aggreko Inc.
Aggreko is a worldwide company specializing in rental of diesel gensets from about 15-2,000
kWfor standby to continuous service. It does not supply gas engines. Using Iveco, Cummins,
and Caterpillar engines, Aggreko offers a variety of skid-mounted and containerized genset
configurations of its own design, including 400-1,300 kW units in 20-ft ISO containers, and
1,500-1,750 units in 40-ft ISO containers. It can also provide transformers, transfer switches,
distribution systems, and cables for a complete turnkey installation. Air conditioners, chillers,
and heaters are also available for rent. Aggreko sells only its substantially used equipment; it
does not package equipment for sale.
Aggreko is owned by Christian Salveson, a large U.K. holding company. Aggrekos corporate
headquarters are in New Iberia, Louisiana, and it has more than 30 supply depots around the
United States, plus numerous operations abroad.
Cummins Onan Corp.

The Onan Corp. (based in Minneapolis, Minnesota), is a wholly owned subsidiary of the Power
Generation Group of the Cummins Engine Company (based in Columbus, Indiana). Onan is a
world leader in the design and manufacture of packaged power generation equipment, power
systems, gasoline engines, custom power supplies, and local area network products for a variety
of different market applications. It packages Cummins 2.5-1,250 kW diesel engines with
generators manufactured by Newage (another Cummins subsidiary), the worlds leading
producer of alternators in the 150-1,300 kW size range. These gensets are marketed under the
brand names Petbow and Agreba by the Cummins Power Generation Group subsidiary Power
Group International (PGI). Onan also packages gensets for Cummins worldwide markets, using
Cummins 6-100 kW SI engines.
6-41

F.G. Wilson (Caterpillar)

F.G. Wilson (FGW), located in Larne, Northern Ireland, is the largest genset manufacturer in
Europe and one of the largest industrial diesel genset manufacturers in the world. It is estimated
that FGW ships over 30,000 units annually. It became a wholly-owned Caterpillar subsidiary in
1999. While Caterpillar does not report FGWs sales, an estimate of the sales can be obtained
from the 1996 FGW sales of more than $400 millionassuming that sales have increased
somewhat since then. Over 90% of its total sales are from exports to 170 countries worldwide.
FGW has subsidiary/sales offices/warehouses in five European countries, the United States,
South Africa, the United Arab Emirates, Singapore, Hong Kong, and Australiaand can also
provide O&M services.
Until 1994, FGW was an independent company, with its origins as a family-owned business
designing and manufacturing gensets in 1975. FGW was acquired by Emerson Electric Co.one
of the worlds largest electrical and electronics companies based in the St. Louis, Missouriin
1994. In 1996 Emerson sold a minority, but substantial, share of FGW to Caterpillar. FGW
subsequently signed a joint venture agreement with Caterpillar for the manufacture of gensets at
FGWs two existing facilities, plus an additional new one, all in the United Kingdom, to support
Caterpillars European marketing efforts. In June 1999 Caterpillar acquired 100% equity interest
in FGW, making it an integral part of the Caterpillar family of companies which, as a group, is
now the worlds leading provider of diesel gensets.
Until the deal with Caterpillar, FGWs product line consisted of Perkins (17-1,800 kW), DDC
(160-1,400 kW), and Lister-Petter (5-24 kW) gensets, and custom-designed systems (including
power stations) up to 20 MW. Alstoms Ruston diesels were used in larger plants. At that time,
FGW was taking half of Perkins annual engine production alone. The manufacturers utilized by
FGW may have changed since the Caterpillar takeover.
Katolight Corporation
Katolight Corp., based in Mankato, Minnesota, is a privately-owned company that manufactures
10-2,000 kW diesel gensets, using John Deere, Perkins, and Cummins engines in the 25-100 kW
range and Cummins and DDC engines above 150 kW. It also manufactures 2.5-500 kW SI
gensets, using Hercules, Ford, and Cummins engines. Overall its output is approximately 1,200
units/year. Exports account for approximately 25% of Katolights sales. Katolight mostly uses
Marathon generators in its gensets. There has not been any connection between Katolight and
Kato Engineering, the generator manufacturer also located in Mankato, for 20 or more years.
Kohler Co.
Kohler Co., based in Kohler, Wisconsin, is a large, family-owned manufacturer of gensets in the
2.5-2,000 kW range via its Kohler Power Systems group. Its gensets are sold through a
worldwide network of 50 distributors and includes models specially designed for mobile and
telecommunications markets, marine and recreational vehicles, and home standby and industrial
needs. It uses Ford SI engines for 20-200 kW gas-fueled gensets, and Deutz 20-170 kW engines,
6-42

John Deere 20-180 kW engines, and DDC 200-2,000 kW engines in various diesel-fueled
gensets. Although they are generally sold for standby power, they can be used for prime power.
Kohler is one of DDCs biggest customerspackaging the 20-2,000 kW Spectrum line of
gensets for DDC, using 20-2,000 kW diesel engines supplied by DDC and 20-100 kW Ford SI
engines. Approximately one-third of the Spectrum gensets are marketed by DDC worldwide.
Kohler also markets gensets identical to the Spectrum gensets under the Kohler brand name.
SDMO believes that the combined production of Kohler and Spectrum gensets makes Kohler a
bigger packager than itself.
SDMO Industries S.A.

SDMO Industries, headquartered in Brest, France, is a 75 year old, privately-owned company
that is one of the worlds largest independent genset manufacturers after (F.G. Wilson, Onan
Corp., and Kohler). In 1997 it reported sales of about $250 milliondown about 30% from the
two previous years. SDMO has three plants in France, as well as distributors in more than 140
countries, and exports about 80% of its gensets. In 1997 it produced over 46,000 units. SDMOs
present production is a highly standardized range of 1-3,000 kW diesel gensets, using engines
from Cummins, Deutz, John Deere, Lister-Petter, Perkins, and Volvo. It also supplies turnkey
plants up to about 4,000 kW using engines from Cummins (up to about 1,300 kW) and MTU. It
can also supply CTs. Thus far its U.S. sales have been mainly to U.S. plant constructors.
However, SDMO is interested in increasing its presence and sales in the U.S. and is now in the
process of establishing a network of dealers in the United States to support SDMOs range of
industrial gensets.
Stewart and Stevenson Services Inc.

Stewart & Stevenson Services Inc. (S&S), headquartered in Houston, Texas, is a leading
manufacturer and distributor of industrial and energy related equipment. S&S is primarily
engaged in the custom packaging of RE systems for the generation of electrical and mechanical
power. In 1998 S&S completed the sale of its gas turbine division to General Electric for $600
million in cash. Also in 1998, S&S reported sales of $1.2 billion, based on business activities in
three segments:
Power products segment, which is responsible for marketing and after-market support of a
wide range of industrial equipment, recorded sales of over $555 million during 1998.
Engineered power systems segment, which includes the manufacture of oil well stimulation
and drilling equipment (in which field S&S is a world leader), and group support equipment
for commercial aircraft, achieved sales of over $115 million.
Tactical vehicle systems segment, which manufactures a family of tactical vehicles for the
U.S. Army and others, recorded sales of over $455 million.
S&S is a distributor and packager for DDC/MTU diesel and gas engines, GM/EMD engines,
Superior gas and diesel engines, Perkins diesel engines, and Volvo Penta diesel engines (for
marine use only). Its subsidiary Waukesha engines distributor PAMCO sells primarily into the
6-43

gas transmission market. As both an EMD and Superior, S&S is seeking a suitable, highly visible
site for demonstration of the first Superior HG-300 SI engine.
S&S provides engines for the full range of appropriate applications, including the offshore oil
and gas platform industries, in which it is a major player. S&Ss RE packaging market includes
North and South America, Europe, the Far East and the Pacific Rim. S&S also distributes
products for several construction and materials handling equipment dealers, and is one of the
nations largest John Deere construction equipment dealers.
Synergy International Inc.

Synergy International Inc. was formed by the merger February 1996 of the two genset packagers
DMT Corp. and Energy Dynamics Inc., both based in Waukesha, Wisconsin. Synergy is
estimated to be about one-third to one-half the size of Kohler Co. Synergy is DDCs biggest U.S.
customer after Kohler. With a worldwide distribution system, exports account for more than half
of Synergys annual sales. Synergy manufactures units in the 12-5,000 kW range for standby and
prime power, using Ford and Cummins SI engines and Hercules (small), John Deere, Cummins,
DDC, and Alstom Paxman diesel engines. Synergy also claims recognition for its specialization
in effective sound-attenuated enclosures. Its primary activities currently include: peakshaving/interruptible power units for utilities, prime power installations for large
telecommunications companies, and trailer-mounted units (up to 1,500 kW). It has supplied a
substantial amount of prime power for phone companies in the Philippines. Synergy has been
working with the utility companies and/or some of the utilitys customers in Minnesota, Florida,
Texas, and Oklahoma to supply interruptible power and peak-shaving systems. Synergy mainly
uses Marathon generators.
Tecogen
Tecogen is a division of Waltham, Massachusetts-based Thermo Power Corp., a wholly owned
subsidiary of the Thermo Electron Corp., a leading manufacturer of measurement instruments for
a broad range of industries, with over $3.8 billion in sales in 1998. The Thermo Power
subsidiary, which recorded 1998 sales of $281 million, develops, manufactures, and markets
industrial refrigeration systems, natural-gas fueled cooling and cogeneration units (through
Tecogen), marine engines, fork-lift engines, and low-emissions natural gas engines for urban
fleet vehicles and industrial applications.
As a genset packager, Tecogen is well-known for its 60 and 75 kW packaged cogeneration
systems based on the TecoDrive engines. These engines are built from GM V8 blocks by
Crusader Engines, the former Detroit, Michigan-based Thermo Electron division that was sold
after the end of fiscal year 1998. About 700 of theses units have been installed in California and
the Northeastern United States combined, primarily in commercial and institutional settings.
However, the cogeneration business has been slow for Tecogen since the late-1980s.
Tecogen also manufactures 50-1,000 ton gas engine-driven chillers, using TecoDrive and
Caterpillar engines. Chillers have been outselling cogen packages since 1990, and Tecogen has
sold about 300 chillersprimarily in the South from California to Florida, and along the East
6-44

Coast from Florida to the Northeast. Tecogen has a small number of installations in Japan, South
America, and Europe. Although the market for Tecogens product has been relatively dormant
for several years, Tecogen considers itself the number one player in the packaged RE
cogeneration business in terms of total number of small systems sold and its longevity in the
business.
Niche Players
Several independent niche players in the aftermarket for conversion of diesel engines to DF
engines market are simply highlighted here along with one other independent player that is
developing a new DF engine. An overview of the players is presented in Table 6-7. They and
their development activities and products were discussed earlier in Section 2.
6-45

Table 6-7
Independent Niche Players in DF Engine Market (Aftermarket and New and ReManufactured Engines)
Company/Location
Product or Development
Activity
Pilot Fuel @
Full Load, %
Status
Aftermarket Conversions to DF
BKM/Clean Air Partners
(CAP) San Diego, California
High-tech micropilot open-chamber

DF conversion with sequential, multiport gas injection, skip-fire at
reduced load., and electronic control.
2%. Also,
targeted 1%
should be
achievable.
5% pilot fuel version is commercial for Cat

truck engines. Caterpillar is a CAP licensee.
2% micropilot commercially available. 1%
micropilot demonstration is underway on
stationary Caterpillar engineshould be
available by 2001. GRI/CEC/SoCal Gas
supporting demonstrations.
Electronic Fuel Control

(EFC) Forest Park, Georgia
Basic-tech central-point gas injection

(premixing before the intake
manifoldalso called fumigation)
with electronic air /fuel ratio control.
20-30%
Commercial for truck engines. Under

development for stationary engines. Should be
commercially available by 2001.
Energy Conversions, Inc.

(ECI) Tacoma, Washington
Sequential multi-port gas injection,

5-10%
with conventional pilot fuel injectors,
and electronic control. Requires
modification of pistons and cylinder
heads.
Commercial for EMD 2-stroke engines and Cat

399 diesel engines. In use on several EMD
engines in stationary power generation on-land
and off-shore oil platforms. Stewart and
Stevenson has performed some of the
commercial conversions. Also used
commercially on railway locomotives. ECI also
performs conversions in the field
Gas Technologies Inc. Ft.

Lauderdale, Florida
Fumigation
20-30%
Commercial. In use on many trucks and

stationary engines worldwide.
Innovative Technology
Group (ITG) (formerly
OCLI) Weston, Florida
Fumigation
20-30%
Commercial. In use on many trucks and

stationary engines worldwide.
Vineyard Engine Systems,

Inc. (VESI) San Antonio,
Texas
Fumigation, with electronic control
5-10%
Under development. With support from GRI.

Commercially available by 2001.
Westport Innovations
Vancouver, British
Columbia, Canada
High-pressure (>3,000 psi) directinjection of gas and diesel via openchamber micropilot injector.
Sequential injection of gas and oil
through same injector. Electronic
control.
1-2%
Near-commercial for DDC 2-stroke vehicle

engines. Then will be applied to 4-stroke
engines.
Manufactured DF Engines
RODI Power Systems
Kent, Washington
Source: SFA Pacific
6-46
Approximately 325 kW dual-fuel

5-10%
version of a new 2-stroke truck diesel
engine that RODI is now testing and
introducing.
Under development. Supported by TVA, the

intended customerfor DG applications.
RODI is a Deere Power Systems OEM. Now
establishing the new engine manufacturing
facilities in Louisiana
A
REFERENCES
Chapter 2
1. W.E. Liss and D. Kincaid, Distributed Generation Using High-Power Output, HighEfficiency Natural Gas Engines, American Power Conference, Chicago, Illinois, April
1999.
2. W. Liss, Natural Gas Power Systems for the Distributed Generation Market, GRI Technical
Paper GRI-99/0198, presented at Power-Gen International 99 Conference, New Orleans,
Louisiana, November 30, 1999.
3. J. Kane, Cooper Energy Services Extends Used Equipment Offering with Exchange
Program, Compressor Tech, November/December 1997, pp.46-48.
4. E.F. Obert, Internal Combustion Engines, International Textbook Company, Scranton,
Pennsylvania (1968).
5. Lean Combustion Engine Developments, Waukesha Engine Division, Dresser Industries,
Diesel & Gas Turbine Worldwide, December 1996, p. 62.
6. N.J. Beck et al, Evolution of Heavy Duty Natural Gas EnginesStoichiometric, Carbureted
and Spark-Ignited to Lean-Burn, Fuel-Injected and Micropilot, Society of Automotive
Engineers Paper No. 972665, 1997.
7. Inventory of Power Plants in the United States 1994, DOE/EIA-0095(94), U.S. Department
of Energy/Energy Information Agency, Washington, D.C., December 1996.
8. S. Turner and C.S. Weaver, Dual-Fuel Natural Gas/Diesel Engines: Technology,
Performance, and Emissions, Topical Report GRI-94/0094, Gas Research Institute,
Chicago, Illinois, November 1994.
9. Dual-Fuel Conversions, Diesel Progress North American Edition, July 1999, pp.54-55.
10. CRIS Enhances Diesel Engine Performance, Modern Power Systems, February 1997,
pp.47-51.
11. Annual Survey of Engine Sales, Diesel & Gas Turbine Worldwide, October 1995-1999.
A-1

References
12. J. Kane, Internal Combustion Engine Power: A Quarter Century in Review, Diesel & Gas
Turbine Worldwide, April 1994, pp. 10-16.
13. Advanced Design Medium-Speed Engine Announced by ADD, Diesel & Gas Turbine
Worldwide, March 1996, pp. 16-19.
14. Diesel & Gas Turbine Worldwide Catalog, 1998.
15. H.W. Kohler, New Piston Ring Materials Reduce Wear, Diesel & Gas Turbine Worldwide,
May 1998, pp.22-25.
16. Southwest Research Institute, San Antonio, Texas, 1998 Annual Report.
17. I. Nylund, Gas EnginesWhats New? Energy News (Wrtsil NSDs customer journal),
Issue 7, May 1999, pp. 16-17.
18. E. Hopkins, Research and Development Pay Off in Boom Times for RGS, Compressor
Tech, September-October 1999, pp.94-96.
19. The Inside Story on the Miller Cycle Engine, http://www.mazda.com.au, November 5,
1999.
20. K. Okamato, Miller Cycle Gas Engine for Cogeneration Systems, http://www.tokyogas.co.jp, and private communications, November 1999.
21. New Diesel Ignition System Cuts Emissions, Technology Today Technics, Summer
98, Southwest Research Institute, http://www.swri.org
22. R.D. Nevinger, Caterpillar G3600 High Efficiency Engine Development for Cogeneration,
ICE-Vol. 22, Heavy Duty Engines: A Look at the Future, ASME, 1994, pp. 169-176.
Chapter 3
1. J. Beck et al, Optimized Performance and Emissions for Dual-fuel Gas/Diesel Engines,
1995 SAE Future Transportation Technology Conference & Exposition, Costa Mesa,
California, August 1995.
2. New Diesel-Ignition System Cuts Emissions, Technology Today, Southwest Research
Institute, Summer, 1998, p.2.
3. Engine Design and Development, Southwest Research Institute 1998 Annual Report,
Southwest Research Institute, San Antonio, Texas, p.1.
4. Emission Control Technology for Stationary Internal Combustion Engines, Status Report,
Manufacturers of Emission Controls Association, Washington, D.C., October 1995.
A-2

References
5. M. Osenga, Emissions Reduction to 3.5 ppm NOx, Diesel & Gas Turbine Worldwide,
January/February 1998, pp.44-46.
Chapter 4
1. G.P. Mueller, Landfill Gas Application Development of the Caterpillar G3600 Sparkignited Gas Engine, Transactions of the ASME/Journal of Engineering for Gas Turbines and
Power, Vol. 117, October 1995, pp. 820-825.
2. Spark Ignited Application and Installation Guide, LEBH6154 (5-86) Caterpillar Inc.,
Peoria, Illinois (1986).
3. On-Site Power Generation Handbook, LEBX4457, Caterpillar Inc., Peoria, Illinois,
December 1984.
4. W.I. Rowen, Design Considerations for Gas Turbine Fuel Systems, Paper No. 10, 38th GE
Turbine State-of-the-Art technology Seminar, GE Power Generation, Schenectady, New
York, 1994.
5. P.A. Tom, Michels Energizes Gas Growth, Waste Age, May 1999, pp.98-102.
6. P. Mullins, Landmark Jenbacher Engine Set for Landfill, Diesel & Gas Turbine
Worldwide, March 1999, pp 26-27.
7. EPA Issues Regulation to Require Big Landfills to Burn Methane for Power, Independent
Power Report, March 8, 1996, p. 20.
8. A.M. Rouhi, Amoco, Haldor Topsoe Develop Dimethyl Ether As Alternative Diesel Fuel,
Chemical & Engineering News, May 29, 1995, pp. 37-39.
9. T.H. Fleisch, More on Dimethyl Ether: Case Is Building for DME As Clean Diesel Fuel,
Diesel Progress Engines & Drives, October 1995, pp. 42-45.
A-3
B
GLOSSARY AND ABBREVIATIONS
AC
ABB
ADD
A&E
ARES
atm
ATS
alternating current
ABB ASEA Brown-Boveri Ltd.
advanced diesel engine development
Architect & Engineering
Advanced Reciprocating Engine Systems
atmosphere
Advanced Turbine Systems
bbl
BFG
bhp
BMEP
BN
BSEC
BSNOx
Btu
barrels
blast furnace gas
brake horsepower
brake mean effective pressure
Burlington Northern
brake-specific energy consumption
brake-specific NOx
British thermal unit
C
CAP
CB
CEC
CDC
CHP
CI
CIMAC
CLI
CNG
COG
cSt
CT
degrees Centigrade (Celsius)

Clean Air Partners
Cooper-Bessemer
California Energy Commission
Consolidated Diesel Co.
combined heat and power
compression-ignition
International Council on Combustion Engines
CLI Worldwide Inc.
compressed natural gas
coke oven gas
centistokes (viscosity)
combustion turbine
DB
DC
DCC
DDC
DF
DI
DG
DLNC
DME
DOE
Daimler Benz
direct current
diesel combined cycle
dual-fuel
direct-injection, direct-injected
distributed generation
dry low-NOx combustor
dimethyl ether
U.S. Department of Energy
ECI
EFC
Energy Conversions, Inc.

Electronic Fuel Control
B-1

Glossary and Abbreviations
B-2
EGR
EIA
EMD
EPA
EPRI
exhaust gas recycle (recirculation)

Energy Information Agency
General Motors Electromotive Division
U.S. Environmental Protection Agency
Electric Power Research Institute
F
FGW
FM
ft
ft2
degrees Fahrenheit
F.G. Wilson
Fairbanks Morse
foot (feet)
square feet
g
gal
GE
GMT
gpm
GRI
GT
GW
gram
gallon
General Electric
Grandi Motori Trieste
U.S. gallons per minute
Gas Research Institute
gas turbine
gigawatt (1,000 MW)
HC
HCCI
HHI
HHV
hp
hps
hr (h)
Hz
hydrocarbon
homogenous charge compression ignition
Hyundai Heavy Industries
higher heating value
horsepower
shaft horsepower
hour
Hertz
IDI
IHI
IPP
ISO
indirect injection, indirect injected

Ishikawajima Harima Heavy Industries, Ltd.
independent power production (producer)
International Standards Organization reference conditions
[59F (15C), 14.7 psig, 60% relative humidity]
JES
JV
Jenbacher Energiesysteme AG
joint venture
KHI
KV
KVAR
kW
kWe
kWs
Kawasaki Heavy Industries, Ltd.

kilovolt
kilovolt amperes reactive
kilowatt (103 watts)
kilowatt (electric)
kilowatt (shaft power)
lb(s)
LBG
LFG
LHV
LNG
LPG
pound(s)
low-Btu gas
landfill gas
lower heating value
liquefied natural gas
liquified petroleum gas

m
m2
MaK
MB
MBG
meter(s)
square meters
Motoren GmbH
Mirrlees Blackstone
medium-Btu gas
MDB
MEP
MES
MHI
MM
MTU
MW
MAN B&W Diesel AG

brake mean effective pressure
Mitsui Engineering & Shipbuilding Co., Ltd.
Mitsubishi Heavy Industries
million
MTU Motoren-und Turbinen-Union Friedrichshafen GmbH
megawatt (106 watts)
N.A.
NMHC
NOx
NSD
NUG
not available
non-methane hydrocarbon
oxides of nitrogen
New Sulzer Diesel Ltd
non-utility generator
O&M
OECD
OEM
OP
operation (operating) & maintenance

Organization for Economic Cooperation and Development
original equipment manufacturer
opposed piston
p
PAH
ppmv
psi
psia
psig
PURPA
pressure
polynuclear aromatic hydrocarbon
parts per million (by volume)
pounds per square inch
pounds per square inch (absolute)
pounds per square inch (guage)
Public Utility Regulatory Policies Act (1978)
R&D
RE
rpm
RR
research and development

reciprocating engine
revolutions per minute
Rolls-Royce, plc.
S&S
scf
scfh
SCR
SI
SNCR
SOF
SwRI
Stewart & Stevenson

standard cubic foot (feet) @ 1 atm, 60F
standard cubic feet per hour
selective catalytic reduction
spark-ignition
selective non-catalytic reduction
soluble organic fraction
Southwest Research Institute
T&D
TBC
TCS
TDC
TWC
transmission and distribution

thermal barrier coating(s)
turbo compound system
top dead center
three-way conversion
B-3

B-4
UB
UHC
UPS
Ulstein Bergen
unburned hydrocarbon
uninterruptible power supply
v
V, vol
vol%
VOC
volt(s)
volume
volume percent
volatile organic compound
wt
wt%
weight
weight percent
Y, yr
year
%
$
normalized air/fuel ratio (or excess air ratio)

percent
U.S. dollar
U.S. cents ($0.01)

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Reciprocating Engines for Stationary Power Generation

Technology, Products, Players, and Business Issues

Reciprocating Engines for

Final Report, December 1999

DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITIES

To present a comprehensive worldwide overview of the companies (and their products)

EPRIGEN Licensed Material

EPRIGEN Licensed Material

2 TECHNOLOGY TYPES AND CHARACTERISTICS............................................................ 2-1

EPRIGEN Licensed Material

Operating Cycles ......................................................................................................... 2-19

EPRIGEN Licensed Material

Peaking, Peakshaving, Peaksharing ....................................................................... 2-61

3 ENVIRONMENTAL PERFORMANCEEMISSIONS CONTROL........................................ 3-1

4 OTHER FUELS.................................................................................................................... 4-1

EPRIGEN Licensed Material

Introduction ........................................................................................................................ 4-1

6 KEY COMPANIES, PRODUCTS, AND BUSINESS ISSUES............................................... 6-1

EPRIGEN Licensed Material

Fairbanks Morse (FM).................................................................................................. 6-14

EPRIGEN Licensed Material

Cummins Onan Corp. .................................................................................................. 6-41

B GLOSSARY AND ABBREVIATIONS .................................................................................B-1

EPRIGEN Licensed Material

EPRIGEN Licensed Material

EPRIGEN Licensed Material

EPRIGEN Licensed Material

REs Versus CTs

EPRIGEN Licensed Material

EPRIGEN Licensed Material

Peaking, peak-shaving, intermediate, and

Natural gas (spark-ignited)

Technology, products, business issues

Report Basis and Organization

Technology Types and Characteristics (Chapter 2)

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Environmental Performance and Emissions Control (Chapter 3)

Other Fuels (Chapter 4)

EPRIGEN Licensed Material

Key Companies, Products, and Business Issues (Chapter 6)

EPRIGEN Licensed Material

Caterpillar (including MaK and

Alstom (Mirrlees Blackstone,

Cooper Energy Services

Cummins-Wrtsil (joint venture)

Cummins Engine Company

Cummins-Wrtsil (joint venture)

Detroit Diesel Corporation

MaK (Caterpillar subsidiary)

Kawasaki Heavy Industries (KHI)

MAN B&W (S.E.M.T. Pielstick)

Mitsubishi Heavy Industries (MHI)

Perkins (Caterpillar subsidiary)

Mitsui Engineering & Shipbuilding

Jenbacher Energiesysteme (via

Rolls-Royce (Allen Diesels &

Niigata Engineering Co.

Wrtsil NSD (NSD & GMT)

Waukesha Engine Division

F.G. Wilson (Caterpillar subsidiary)

SDMO groupes electrogenes

Stewart & Stevenson

EPRIGEN Licensed Material