Navistar confirms use of Selective Catalytic Reduction (SCR)

Christopher Goodfellow - 6 July 2012

Navistar said it will use a Selective Catalytic Reduction (SCR) aftertreatment technology along with engine optimization to meet EPA 2010 requirements and position the company to meet 2014 and 2017 greenhouse gas (GHG) rules in advance of requirements.

The technology package, which Navistar is calling In-Cylinder Technology Plus (ICT+), combines Navistar's advanced in-cylinder engine expertise with urea-based aftertreatment and is expected to be available beginning early 2013.

In a statement released prior to its Q2 2012 investor call, Navistar confirmed the use of Selective Catalytic Technology (SCR), which had been widely speculated, after continued difficulties certifying its big bore engine at the EPA 2010 0.2 g/bhp-hr NOx emissions standard and the resulting poor performance in its heavy-duty truck segment.

Daniel C. Ustian, Navistar chairman, president and CEO, said: "Our distinctive solution will leverage the investment and advancement we've made in clean engine technology while providing immediate certainty for our customers, dealers, employees and investors. We have made tremendous progress with in-cylinder technology and with the introduction of ICT+ our goal is to offer the world's cleanest and most fuel efficient diesel engine, benefiting both our customers and the environment for years to come."

Ustian confirmed that the company would continue to try to certify its big bore engine and would rely on noncompliance penalties as a back-up option until the new technology was available, likely to be early next year:

"The company intends to continue to build and ship current model EPA-compliant trucks in all vehicle classes using appropriate combinations of earned emissions credits and/or non-compliance penalties (NCPs) during the transition to ICT+."

The manufacturer submitted an EGR-only 0.2 g/bhp-hr NOx emissions engine in February, 2012, expecting certification to take between 3-4 months. In May the engine was resubmitted after the Environmental Protection Agency (EPA) asked Navistar to make modifications. Ustian said "it shouldn't take nearly as long" to certify the engine from resubmission, compared to the original time frame.

The EPA is currently finalizing a rule to permit Navistar to sell non-compliant engines with NCPs, after an interim rule was thrown out by U.S. Court of Appeals in June, in a case brought by its competitors.

If EPA certification is not given before year end, Navistar expects noncompliance penalties could run to between $30-40 million. Navistar's Q2 2012 results said that the manufacturer had already incurred $10 million in fines for the production of non-EPA 2010 compliant engines.

Ustian added that when certification was complete, the manufacturer could begin production in 30 days.

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