2015 Summer Internship Final Presentation

Kofi Adu CharlesProduct Planning Intern

08/07/15

2

Agenda

Introduction Executive Summary

Project Overview

Internship Experience Questions

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About Me. Senior at Southern

Illinois University Graduating December

2015 B.S. Marketing,

Finance Minor. United States Navy, 7th

Fleet.

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About my Internship

Product Planning Intern Cummins Power Solutions (Shoreview) Manager- Ousmane Gueye May,20/ August,10 2015.

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Project Scope

Background Gas gen-sets are available for various power generation applications and can

use different fuel sources. They can vary in sizes ranging from a few kilowatts (kW) to more than 5 megawatt (MW) depending on the type of applications Understanding regional trends, applications and attributes is key to developing a winning strategy and fit-for-market product portfolio.

Scope Identify regional market trends that pertains to the Gas Power Generation

industry.

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Project Deliverables

Regional Profile Product Profile Attractive Markets Market Trends

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Methodology

SCOPE

Background

Scope Definition

RESEARCH

PrimaryGMs Interview

SecondaryIndustry Reports

ANALYSIS

Data Analysis

Trend Analysis

SYNTHESIS

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CENTRAL AND SOUTH AMERICA

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1% 3%8%

69%

1%

18%

Central and South America [2012]

Electricity source

Biomass and Waste

Coal GasGeothermal HydroelectricNuclear OilSolar Tide Wave

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

2012

-100

0

100

200

300

400

500

600

700

800Electricity Generation By Source

Biomass and Waste CoalGas GeothermalHydroelectric Hydroelectric Pumped StorageNuclear OilSolar Tide Wave Wind

Elec

trici

ty (T

Wh)

Power Generation - Source

Poised to grow at 50% by 2040

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Product Profile

Hi-Efficiency Low BTU Low MN Basic Robust (including Peak Shaving)

Standby Others0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Key Application By Product Range

300 - 1000 kW 1000 - 2000kW Above 2000 kW

% o

f Tot

al

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Attractive Market Segments

Industrial & commercial [20%]– Represent the greatest opportunity for gas engine sales.– More requirements for 300- 500kW,1.4MW,2MW and 3MW.– In Columbia Industrial application provide an opportunity for

gas engine sale.

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Attractive Market Segments cont.

Landfill Gas & Biogas [15%]– The sector is yet to take off, with total existing landfill gas

and biogas projects [using > 400kw gas engines]

Power Plant [20%]– Most product range would be > 5MW.

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Vertical Market Segment

Industrial Mfg.20%

Utilities/IPP20%

Comm. Buildings10%

Oil & Gas20%

Public Infra.5%

Datacenters5%

Landfill15%

Others5%

Key Market Segments

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Key Market Trends

A huge drive in some countries to utilize biogas/biomass project.

Oil and gas companies using associated gas replacing diesel.

Spark spread is getting attractive CNG and LNG are available in most countries (not

yet feasible to replace diesel).

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North America

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Electricity Consumption

1980 1985 1990 1995 2000 2005 2010 20120

1000

2000

3000

4000

5000

6000

Electricity Generation/Consumption- North America

Consumption Generation Distribution Losses

Billi

on k

Wh

China Russia US & Canada Western Europe0

2000

4000

6000

8000

10000

12000

14000

Total Electricity Net Consumption / Popu-lation (kWh per Capita )

kWh/

capi

ta

17

North America

45%

13%

11%

11%

North America [2012]

Biomass and Waste

Coal

Gas

Geo-thermal

Hy-dro-electricNuclear

Oil

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

2012-500

0

500

1000

1500

2000

2500

Biomass and Waste Coal GasGeothermal Hydroelectric Hydroelectric Pumped StorageNuclear Oil Solar Tide WaveWind

Elec

trici

ty (T

Wh)

Electricity Generation By Source

18

Product Profile

Hi-Efficiency Low BTU Low MN Basic Robust Standby0%

10%

20%

30%

40%

50%

60%

70%

Key Application By Product Range.

300 - 1000 kW 1000-2000 Kw Above 2000 Kw

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Attractive Market Segment.

Commercial sector (large offices and hotels) Critical infrastructure buildings( hospital, data

centers, wastewater facilities, food storage facilities, etc.)

Small industrial sites e.g. the food processing and smaller chemicals ( ethanol, pharmaceuticals and consumer products like soap detergent, etc. ) industries.

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Key Market Trends

Cogen will grow faster in < 1MW applications relative to other power density nodes due to decreasing deployment cost.

Units with higher power density are more desirable, as designers are shifting from multiple 2MW nodes.

Fuel pressure requirements are being designed around 2psi fuel inlet pressure which works for our competitors and leaves CMI as not suitable.

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ASIA AND OCEANIA

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Asia & Oceania

China India Other Asia / Australia

US & Canada

Western Europe

0

2000

4000

6000

8000

10000

12000

14000

Total Electricity Net Consumption / Population (kWh per Capita )

kWh/

capi

ta

23

Asia & Oceania

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

2012-1000

0

1000

2000

3000

4000

5000

6000

Electricity Generation By Source

Biomass and Waste Coal GasGeothermal Hydroelectric Hydroelectric Pumped StorageNuclear Oil Solar Tide WaveWind

Elec

trici

ty(k

Wh)

24

Product Profile

Hi- Efficiency Low BTU Low MN Basic Robust( including Peak Shaving)

Standby others0%

10%

20%

30%

40%

50%

60%

Key Application by product range

300-1000kW 1000-2000kW Above 2000kW

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Attractive Market Segment

Independent Power Producers (IPP) Coal Mine Methane (CMM) Industrial sites, e.g. steel, ceramics and cement

industries are better suited for 3-10MWe size classes.

Health sector, large hotels, data centers and commercial buildings.

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Vertical Market Segments

60%

5%

30%

5%

Key Markets

Asia ( South Pacific)Utilities/ IPPsComm.BuildingsMining Healthcare

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Key Market Trends.

Mining market: trend towards replacing diesel fired power at remote, off grid location with gas units.

Grid capacity opportunities via IPP and rental in Indonesia.

Biogas opportunities likely in Thailand and Indonesia Oil and gas opportunities in Thailand, Vietnam and

the Philippines.

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AFRICA AND MIDDLE EAST

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Middle East

1980 1985 1990 1995 2000 2005 2010 20120

100

200

300

400

500

600

700

800

900

1000

Electricity Genaration/Consumption - Middle East

Consumption Distribution Losses Generation

Billi

on k

Wh

Africa China Middle East US & Canada0

2000

4000

6000

8000

10000

12000

14000

Total Electricity Net Consumption / Popu-lation (kWh per Capita )

kWh/

capi

ta

30

Electricity

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

2012

-50

0

50

100

150

200

250

300

Electricity Generation By Source.

Biomass and Waste Coal Gas Geothermal Hydroelectric

Hydroelectric Pumped Storage Nuclear Oil Solar Tide Wave Wind

Elec

trici

ty(T

Wh)

31

Attractive Market Segment-Africa and Middle East

Commercial sector- Agricultural processing, Manufacturing of textiles, Cement and tires.

Critical infrastructure buildings( data centers,hospitals,wastewater facilities).

Key Market Trend– Gas genset on Biogas project below 1MW are on higher

demand.

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EUROPE

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Attractive Market

Small industrial sites- food and drink, automotive and chemical firms, application range would be 1- 5 Mwe.

Health sector, education and Commercial buildings. There is significant potential for small scale( 400 kWe to 2MWe)gas engine CHP deployment in hospitals.

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Key Market Trends- UK

A shift towards smaller units- today 40-50 units is being Installed/yr.

By 2020 70-80 units being Installed/yr (for 400kWe-size bands).

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Key Market Trends/ Germany

There is a shift from biogas to natural gas.– NG systems have increase sales due to support via CHP

Law.

Key market segments includes:– Small industry- a relative robust segment for CHP.– District heating.– Commercial buildings.

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Key Market Trends/ Turkey

Large genset market(> 5MWe) units sizes are most preferred with a market share of 50%.

Key market segments:– Power plants– Textile industry– Biogas & Landfill gas– Light industry

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Key Market Trends/ Russia The engine size balance will shift steadily towards

larger engines by 2020 as more utility and DH applications are developed.– The main market today is for gas engine CHP in industrial

facilities.

Key market segments:– Industrial sites– Utility applications– District heating(DH) modernization

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Internship Experience

Big Brother Big Sister

Twin City Pride

Feed my starving children

Bob Sonntag walk

EEEC Projects

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Questions