Monday, Cummins Inc. (CMI) said it was granted around $54 million by the Department of Energy as funding for two projects aimed at improving fuel efficiency in heavy-duty and light-duty vehicles.
Of the $54 million funding, $39 million is earmarked to support systems level technology development, integration, and demonstration of highly efficient Class 8 trucks, or SuperTruck. Cummins would receive an additional $15 million to support advanced technology powertrains for light-duty vehicles, or ATP-LD.
For the SuperTruck project, Cummins will partner with Peterbilt Motors Company, a division of the third-largest heavy-duty truck manufacturer Paccar Inc. (PCAR). The Cummins project will develop and demonstrate a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling.
The goal of the SuperTruck program, which was initiated by the Department of Energy, is to improve Class 8 vehicle freight efficiency by 50% through advanced and highly efficient engine systems and vehicle technologies that also meet prevailing emissions and Class 8 tractor-trailer vehicle safety and regulatory requirements. Every facet of energy consumption of a Class 8 tractor and trailer will be addressed through the development and integration of advanced technologies, a statement from Cummins said.
The ATP-LD program would develop a fuel-efficient, low emission diesel engine that achieves a 40% fuel economy improvement over conventional gasoline technology and significantly exceed 2010 EPA emissions requirements. The project will develop and demonstrate an advanced, highly integrated combustion engine and after-treatment system to achieve Tier2 Bin2 emission compliance while maintaining vehicle performance and drivability. The project would also develop the system architecture to accommodate on-board diagnostic regulations from the design stage to better enable product commercialization.
Tom Linebarger, chief operating officer of Cummins, said, "We appreciate the funding provided by the DOE for the Cummins SuperTruck and Light-Duty programs, which will create jobs, help address climate change and reduce oil consumption. This public-private partnership is a win for our economy, a win for the environment and a win for energy challenges."
During the program development, over 60 technical positions would be dedicated to the project work at Cummins. Successful production implementation would result in additional long-term positions.
CMI is currently gaining $0.86 or 1.60%, trading at $54.53, on a volume of 0.62 million shares on the NYSE.
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