Incremental Cost Estimates for Marine Diesel Engine Technology Improvements


          United States       Air and Radiation      EPA420-R-98-021
          Environmental Protection              September 1998
          Agency
&EPA    Incremental Cost
          Estimates for Marine
          Diesel Engine
          Technology
          Improvements
                              > Printed on Recycled Paper

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                                                                           EPA420-R-98-021
                                                                             September 1998
                                                             for
                      Engine Programs and Compliance Division
                              Office of Mobile Sources
                        U.S. Environmental Protection Agency
                                     NOTICE

    This technical, report does not necessarily represent final EPA decisions or positions.
It is intended to present technical analysis of issues using data which are currently available.
         The purpose in the release of such reports is to facilitate the exchange of
      technical information and to inform the public of technical developments which
        may form the basis for a final EPA decision, position, or regulatory action.

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MEMO                                                     EPA420-R-98-021
 To:                                         Copies:
 Alan Stout - EPA, Office of Mobile Sources    Jean Hoff - ICF
                                                                               TRANSPORTATION
                                                                               TECHNOLOGY
 From:                                         Date:
 Kassandra Genovesi and Louis Browning       30 September 1998

 Subject:
 Incremental Cost Estimates for Marine Diesel Engine Technology Improvements
INTRODUCTION
       The United States Environmental Protection Agency (EPA) plans to propose emission standards
for new propulsion and auxiliary marine compression ignition engines rated at or above 50 horsepower
(37 kW). This memorandum provides incremental cost analyses for some of the technologies most likely
to be used to meet the new emission standards. Most marine engines of less than 6,000 horsepower
(5,000 kW) are expected to be derived from land-based engines. Emission standards for on-highway, for
nonroad, and for locomotive diesel engines have already been adopted by EPA. Because these standards
are already in place, the technology exists for land-based engines to meet emission standards. Marine
engines will be expected to meet similar standards, thus this report details the costs to convert a land-
based nonroad engines meeting the appropriate, land-based emission standards into an engine suitable for
marine use and meeting marine emission standards. The technologies from this conversion process that
are considered in this report are for improvements related to turbocharging and aftercooling, which are
specific to the marine engine and distinct from those required for the equivalent engine's land-based
application. Consideration is also given to the additional development time required for adopting land-
based engine technologies, such as optimizing calibrations and reprogramming electronic controls. The
appendix at the end of this document includes tables that summarize these marine-specific costs.
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To estimate the costs of these marine engine technologies, five 'test case engines' were used with
each test case representing a power range with similar characteristics. Table 1 describes the power ranges
used to calculate separate costs and the nominal power values that define the test case engines
representing the various power ranges.
Table 1. Power Ranges and Nominal Power for Estimating Costs
Engine Power Ranges
HP
50-300
300-750
750-1500
1500-2500
2500-6000
kW
37-225
225-560
560-1000
1000-2000
2000-5000
Nominal Engine Power
HP
130
500
1000
2000
4000
kW
100
400
750
1500
3000
This report considers three aspiration and cooling circuit configurations for each nominal engine
horsepower. Case 1 is a naturally-aspirated diesel marine engine using coolant fluid circulated through a
heat exchanger to cool the engine. Case 2 is a turbocharged and aftercooled version of Case 1 engine.
These technologies are cooled by the same volume of coolant fluid that is circulated through the engine
and a common heat exchanger. Engines that are currently on the market and are not naturally-aspirated
have some kind of turbocharging, with or without aftercooling. There is a great deal of variability in the
power and sophistication of turbochargers in use today.
Case 3 is similar to Case 2, however the aftercooler in Case 3 is cooled separately from the
engine (separate-circuit aftercooling). In this configuration, the aftercooler is cooled by a volume of
coolant water or directly by seawater and is in a separate cooling circuit from the engine. For calculating
incremental costs, Case 1 serves as the baseline configuration; each component expected to change in
Case 2 or Case 3 is described in the following pages.
BACKGROUND
Diesel engines used in marine applications span a wide range of technologies and applications
from small auxiliary engines to very large ocean-going propulsion engines. In broad terms, a marine
engine can be treated as belonging to one of three categories: those that are derived from or use primarily
land-based nonroad technologies; those that are derived from or use primarily locomotive technologies;
and those that are manufactured on a unique basis or in small groups for propulsion of very large ocean-
going vessels. EPA has recently set emission limits for nonroad engines and for locomotive engines.
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Through combinations of combustion chamber improvements, fuel injection improvements, advances in
low temperature charge air cooling, and exhaust gas recirculation, manufacturers are designing these
power systems to meet applicable emissions standards. It is therefore expected that marine engines using
nonroad and locomotive based engines will already incorporate many of these improved technologies.
This report examines the costs to upgrade these engines with new or improved turbocharging and
aftercooling to meet new emission limits for marine engines. While land-based engines also use these
technologies, marine applications call for unique designs.
Two major classifications of CI engines are discussed here. The first is natural aspiration, in
which air is drawn into the cylinder by the vacuum created from the piston's downstroke. The second
classification uses a turbocharger to compress the charge air before it enters the cylinder. By compressing
the air charge, more air mass is available in the cylinder for combustion, allowing more fuel to be
injected and creating more power per stroke for the engine. Turbocharging increases the power-to-weight
ratio of the engine, reduces PM formation, and enables aftercooling of the charge air, but leads to
increased combustion temperatures and greater pressures in the cylinder over those found in a naturally-
aspirated engine. Few of the smallest CI marine engines are turbocharged, but most engines greater than
300 horsepower have some kind of turbocharging.
An aftercooler is often used between the turbocharger and the engine to cool the charge air. This
cooling makes the air denser and allows more air to enter the cylinder. By lowering the charge air
temperature, the peak combustion temperature is also reduced, thereby reducing NOx emissions. The
increased charge air density also increases power density, allowing a smaller displacement engine to do
the work that would normally require a larger engine. Another benefit of aftercooling is the potential to
improve brake-specific fuel consumption (BSFC). Studies by Ricardo's Information Research Service
show an average of a 3% improvement in BSFC for a turbocharged engine over natural aspiration and
6% improvement for turbocharged and aftercooled over natural aspiration at the same brake specific NOx
levels. Many factors affect to BSFC including engine design, load factors that depend on engine use
characteristics, and add-on technologies implemented by the boat-builder or vessel operator. Actual
BSFC improvements for a separate-circuit configuration would therefore be hard to predict and would be
dependent on NOx emission levels, but even a small improvement in BSFC shows significant cost
savings in fuel over the life of the engine. Estimated fuel savings are presented below.
Reducing the temperature of the charge air can be achieved several ways. The most common
charge air coolers in marine applications are water-to-air aftercoolers. This type of aftercooler is

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equivalent to the jacket-water aftercoolers commonly used for land-based applications, except that the
jacket-water which cools the marine aftercooler is cooled by seawater whereas the jacket-water to cool a
land-based aftercooler is cooled by ambient air. Due to their operating environment, marine engines
typically have a virtually unlimited supply of cool water for onboard cooling. The limited space in
marine engine compartments and the fact that engine rooms are often located deep within the vessel
dictates that engine heat be discharged to seawater rather than to ambient air. Several configurations
relating the engine, turbocharger, aftercooler, and heat exchanger are possible. Three different
configurations are explained and analyzed for relative costs below.
Case 1: Engine with Onboard Heat Exchanger
The first case is the simplest case - a naturally-aspirated engine and onboard heat exchanger.
There is no turbocharger and no aftercooler associated with this configuration. Seawater is strained and
brought into the heat exchanger to cool the jacket-water. The jacket-water passes from the heat exchanger
to the engine and back thereby cooling the engine. This configuration is generally found on older
propulsion engines and most auxiliary engines rated under 100 horsepower. Although combustion
chamber design and the fuel delivery system can be optimized to increase power and reduce emissions, it
is generally expected that naturally-aspirated engines will have a difficult time meeting the new,
proposed emission standards.
;•',, , Engine
f _nnnn- ^
^~1 —
^1 _rooo- f
_./VHeat Exchanger/,^
Air
Coolant Water
Raw Water
Figure 1: Example of a naturally-aspirated engine with a heat exchanger (or keel cooler) (Case 1)
Case 2: Turbocharger and Aftercooler in the Engine Coolant Loop
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The first aftercooler configuration is shown in Figure 2. This case is a turbocharged and
aftercooled version of the Case 1 configuration. The aftercooler is integrated into the engine's coolant
loop. Thus, the same coolant that cycles between the onboard heat exchanger or keel cooler and the
engine is also circulated through the aftercooler, and the coolant that absorbs heat from the engine block
also absorbs heat from the aftercooler. This approach is regularly used in CI marine propulsion engines
and large auxiliary engines.
The main advantage of a Case 2 configuration is the increased power-to-weight ratio due to the
advantages of turbocharging and aftercooling. Although specific values vary between model lines, there
is also a decrease in BSFC and a decrease in NOx emissions over a Case 1 engine. Another advantage is
that design, installation, operation, and maintenance of Case 2 systems is generally well established and
well supported by the engine manufacturers, ship builders, and vessel operators.
The main drawback of conventional aftercooling is that the charge air temperature rarely drops
below 180°F. The coolant water enters the onboard heat exchanger or keel cooler at roughly 180-200°F
and drops 10 to 15°F. After compression in the turbocharger, the charge air is at 300 to 350°F. The
engine coolant leaving the heat exchanger is at approximately 180°F, so the charge air temperature is
typically lowered to 220 to 240°F. The cooler the charge air, the more dense it is and the more air can be
drawn into the cylinder per stroke. More air at lower temperatures generally supports a larger power-to-
weight ratio for the engine and reduced NOx emissions.
/
\
Figure 2: Example of a turbocharger and aftercooler in the same engine coolant loop (Case 2)
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Case 3: Separate-circuit Aftercooler
A cooling technology that takes advantage of the vast resource of cool water available to marine
engines is a separate-circuit aftercooler. In this configuration, a completely separate coolant loop is
formed that consists of the aftercooler, a small heat exchanger, a coolant pump, and associated plumbing.
The conventional cooling circuit consisting of a larger heat exchanger, a coolant pump, and associated
plumbing is very similar to that described for Case 2. Both circuits can use the same raw water pump; the
raw water would then simply be split before the heat exchangers to send a fraction to the aftercooler's
heat exchanger and the rest to the engine's heat exchanger. The concept of separate-circuit aftercooling is
illustrated in Figure 3.
Separate-circuit aftercooling provides the same advantages as those described for jacket-water
aftercooling (Case 2), but to a greater degree. Since the separate-circuit heat exchanger can cool the
charge air to within 30°F of the seawater, charge air temperatures can be controlled to optimum levels.
The disadvantages of separate-circuit aftercooling are the additional costs of hardware and the
additional complexity of two separate cooling systems. However, the anticipated improvements in BSFC
are likely to lead to significant savings in the total life-cycle costs of the system. There is also some
concern among engine manufacturers that lowering the charge air temperature below 130°F will lead to
condensation in the charge air and the possibility of increased wear on the engine. More research may be
necessary to address this concern and, if it is found to be valid, a thermostat with a proportioning bypass
valve could be installed with the separate-circuit to control the flow of seawater and thereby control the
temperature of the charge air.
A variation of separate-circuit aftercooling is commonly used for recreational CI marine engines.
Commonly referred to as direct seawater aftercooling, this configuration involves routing seawater
directly through the aftercooler. This achieves maximum cooling of the charge air and reduces cost by
eliminating the intermediate heat exchanger but technical drawbacks prevent this from being used in
commercial applications. The principal concern is for the increase in maintenance costs to address
corrosion of the more extensive seawater plumbing and the potential for catastrophic failure if a pipe
would fail in the engine or engine room. Because direct seawater aftercooling is not projected for
commercial applications and is already widely used for recreational applications, no increased use of
seawater aftercooling is anticipated to result from new emission standards. This report therefore does not
include estimated costs for this technology.
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S
_nnnn-
>.--" '^^ Heat Exchanger
Air
Coolant Water
Raw Water
Figure 3: Example of a separate-circuit aftercooler (Case 3 A)
A detailed description of the technology and hardware associated with these turbocharging and
aftercooling configurations are presented below. The attached spreadsheets in Tables A-l through A-5 in
the appendix show the costs for engines ranging from 130 to 4,000 nominal horsepower (100 to 3,000
kW). The 130 and 500 horsepower (100 and 400 kW) engines are derived from technology used in land-
based nonroad engines that in turn are derived from highway engine technology. The 1,000 and 2,000
horsepower (750 and 1,500 kW) engines are derived from land-based off-road engine technology. The
4,000 horsepower (3,000 kW) engine is derived from locomotive engine technology.
COST METHODOLOGY
The costs for different aspiration and cooling technologies are presented to provide information
on marine-specific incremental costs. Representative models were chosen from the test case power
ranges studied for this report. No single model was used for developing all cost information in this
report, but rather a composite engine with characteristics of all the representative models in the
applicable power range was used. Engines were considered from Cummins, Caterpillar, Detroit Diesel,
Electromotive Division of General Motors, Daytona, John Deere, and WarstilaNSD. Models from these
manufacturers were chosen to give structure to the data collection process and are not included for
endorsement purposes.
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Hardware costs depend on the individual engine model complexity and volume sold. Average
engine or vessel parameters and configurations were used to develop the costs. For example, an engine
with 16 or more cylinders will have multiple turbochargers and aftercoolers while a more compact engine
of the same power output might only have one turbocharger and aftercooler. Another example is the cost
of plumbing. A tugboat will have high-power engines in a very compact setting which requires minimal
lengths of piping while a similar high-power engine used for auxiliary power on a large ocean-going
vessel may be located several decks away from the heat exchanger cooling system thereby requiring a
much larger amounts of piping. All costs are reported in 1997 dollars.
Assembler labor rates were obtained from U.S. Department of Labor (DOL) statistics for the
Michigan and Midwest regions [1] and inflated to 1997 dollars using DOL labor cost indices [2]. Based
on this information, labor rates used in this report are $17.50 per hour plus a 60 percent fringe rate
providing a cost of direct labor of $28 per hour.
In most cases, estimated component costs were based on either the discounted retail price of
replacement parts or were built up from models developed by ARCADIS Geraghty & Miller. Much of
the hardware and cost information was gathered from engine manufacturers, component manufacturers,
and shipbuilders. Where discounted prices of replacement parts were used, estimates of supplier
component prices were determined from retail prices for replacement parts. These prices were
discounted to 33 percent of the retail price for use in the equations for calculating the retail price
equivalent. Lindgren [3] discounted retail prices to 20 or 25 percent for use in his calculations. Although
the low sales volumes and the specialty nature of many technologies in the marine industry may lead to
higher markups, it is the belief of the authors that 33 percent is more realistic in today's competitive retail
market. If a different markup can be quantified, the cost estimates in Tables 2 through 6 should be
adjusted accordingly.
Discounted retail prices already include the costs of the supplier raw materials, supplier labor and
labor overhead, and a reasonable markup for the supplier. Labor overhead in these analyses is assumed to
be 40 percent of the cost of direct labor as cited in Lindgren [3]. Manufacturer overhead and
manufacturer profit, when added together, are assumed to be 29 percent as cited by Jack Faucett
Associates [4]. The general formula used to determine the component cost to the manufacturer is:
Component Cost = {M + L * 1.4} * 1.29
where:
M = Total Hardware Cost to the Manufacturer (materials) and

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L = Labor (to install the components on the engine and on the vessel)
Fixed costs will include extensive efforts to test and map engine performance in the new marine
configuration. Fixed costs included in this report are those that are incremental to the costs that a Case 1
engine would require. These costs reflect efforts to maximize aftercooler and turbocharger effects on the
engine performance and the additional testing required to develop performance characteristics for the
separate-circuit aftercooler technology which requires a greater degree of development.
The estimates presented in this report represent costs in the first year of production of
components on a nationwide scale. Production costs related to direct and indirect labor are likely to fall in
subsequent years as workers gain skill, develop shortcuts, and improve the flow of tasks. Costs for
materials are also likely to decline over time, although not as rapidly as labor costs due to methods for
reducing waste or using lower cost materials.
TECHNOLOGY
Turbocharger: Turbochargers used on marine engines must operate with reduced surface
temperatures and are therefore typically cooled using engine coolant, which substantially increases their
cost. The sophistication and performance of turbochargers for marine engines varies widely which makes
it difficult to precisely estimate turbocharger costs over a wide range of engine models. Turbocharger
costs were estimated based on a quote from a turbocharger manufacturer that turbochargers for engines in
the horsepower ranges 400 to 2,000 horsepower (300 to 1,500 kW) are sold for $1.50 per engine
horsepower in bulk shipments of greater than 1,000 pieces to the original engine manufacturer (OEM).
The factor used in the calculations was $ 1.60 per turbocharger to account for some smaller volume sales
or slightly more sophisticated technologies.
Dual turbochargers and even quadruple turbochargers are used in some applications, usually for
engines with 12 or more cylinders. Some locomotive-sized engines have 16 or 20 cylinders and therefore
use four turbocharger/aftercooler combinations, one for each set of 4 or 5 cylinders. This reduces
pumping losses and reduces the overall equipment size. In this report, the engines rated at 2,000
horsepower (1,500 kW) were treated as having dual turbochargers of total cost of $1.90 per engine
horsepower. The 4,000 horsepower (3,000 kW) engines were costed to have four turbochargers, each one
servicing one quarter of the total engine horsepower at $1.90 per horsepower. Information from some
manufacturers suggests that turbochargers for large medium-speed engines will be significantly more
expensive, ranging from $25,000 to $100,000 apiece for rebuilt and new turbochargers, respectively. If a
discount factor of one third is applied to these prices to account for engine and equipment supplier

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markups, supplier costs range from approximately $8,300 to $33,000, which falls within the range of the
costs used in this report.
Cooling System: The total cooling system cost is the sum of the aftercooler, heat exchanger, raw
water pump, plumbing, coolant, coolant pump, thermostat and wiring costs, as estimated below.
Aftercooler: Aftercooler costs were estimated from supplier price estimates and from aftermarket
prices from parts suppliers discounted to one third of retail price. The factor used to determine nominal
aftercooler cost in the calculations was $1.35 per engine horsepower. Aftercooler costs for were
increased by 10 percent over Case 2 to account for more durable materials and extra manufacturing costs
that might be required to produce an aftercooler capable of withstanding larger temperature changes.
Heat Exchanger: Heat exchanger costs were estimated for units that used copper-nickel tube
bundles and copper shells. Copper-nickel is often used with seawater as it is corrosion resistant and has a
high heat transfer coefficient. As other corrosion resistant materials are also used to make heat
exchangers, the prices in this report can be scaled using a ratio of the alternate metal's cost to the cost for
copper-nickel. Price estimates were based on engineering calculations conducted by ARCADIS Geraghty
and Miller and verified by price estimates from independent heat exchanger manufacturers. The factor
used here was $1.85 per engine horsepower for the heat exchanger used with the Case 1 engine. This cost
was increased by 25% to $2.30 per engine horsepower for Case 2. The cost for a Case 2 heat exchanger
was increased by 50% to $3.45 to account for the addition of a second heat exchanger of approximately
half the size in Case 3.
A keel cooler could be used in place of a heat exchanger. A simple way to visualize a keel cooler
is to picture a heat exchanger mounted on the hull of the vessel under the water line. Coolant fluid is
piped to the keel cooler and raw water flows by on the outside of the unit. In this way, no raw water is
brought into the vessel. If a vessel owner wants a keel cooler, it is usually designed as part of a new
vessel as keel coolers are a difficult retrofit option. The keel cooler is slightly more expensive than a
standard, OEM-supplied heat exchanger but requires less maintenance as there is no internal fouling of
tube bundles, raw water pipes, or raw water pumps. The keel cooler is also safer since no seawater is
pumped into the ship. However, a keel cooler may not be able to support the cooling needs of larger
engines. The efficiency of a keel cooler is often less than that of a heat exchanger as the wall thickness
of a keel cooler is greater that the tube thickness of a heat exchanger and thus has more resistance to heat
transfer. The weight of a keel cooler is also a concern for some vessel operators.
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Raw Water/Seawater Pump: When an internal heat exchanger is used, a pump is required to bring
the seawater into the heat exchanger bundles. The rate of seawater flow is often similar for engines under
1,000 horsepower (750 kW). Pump costs are based on estimates from vendors who supply pumps to the
OEM for installation on the engine. Raw water pumps are engine driven and do not require separate
motors, controls, or additional wiring. Smaller horsepower engines with lower operating hours often use
a rubber impeller pump with a bronze housing. Larger engines that require higher flowrates or engines
that are operated for the long hours, typical of commercial applications, often use centrifugal pumps with
bronze blades and housings.
The same price estimates were used for Case 1 and Case 2 raw water pumps. This is reasonable
because the added heat load of the turbocharger and aftercooler is carried by increasing the flow rate
(within the allowable boundaries of the existing pump) and upgrading the efficiency of the heat
exchanger. For the upgrade to a separate-circuit aftercooler, the analysis assumes that the raw water
pump will need to be upgraded to the next flow rate level. The addition of a separate-circuit aftercooler is
expected to add 30 gpm to the Case 2 flow rate for engines under 1,000 horsepower (750 kW) and 60
gpm for engines greater than 2,000 horsepower (1,500 kW). The base price is $500 for a pump rated at
100 gpm plus an additional $100 for each additional 30 gpm.
Coolant/Fresh Water Pump: The coolant fluid pump is a centrifugal pump powered by the
engine. No changes will need to be made to this pump between Cases 1 and 2. Case 3 requires the
addition of a separate coolant pump. This pump will be a small fraction of the size and cost of the
primary coolant pump. Pump prices are based on aftermarket parts suppliers, discounted to 1/3 of their
listed price.
Plumbing: Plumbing consists of all the pipes and hoses used for the raw water circuit and the
coolant water circuit. The raw water circuit brings seawater into the heat exchanger and returns it slightly
warmer after it has circulated through the heat exchanger. The coolant loop carries coolant to the engine
pump from the heat exchanger and then for the Case 2 configuration, carries part of the coolant to the
aftercooler and part to the engine. The heated coolant then returns to the heat exchanger. Engines in the
130 and 500 nominal horsepower (100 and 400 kW) ranges are compact units with the aftercooler,
turbocharger, and heat exchanger all mounted on or very close to the engine block. Thus, the lengths of
coolant piping for these engines are small and not likely to add much cost to the overall system. For the
500 horsepower (400 kW) engine, a total of 10 feet of 2" OD steel pipe at $1.20 per foot was used for the
coolant loop in Case 1,10 feet in Case 2, and 20 feet in Case 3. The raw water circuit used a total of 20

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feet in Case 1 and 20 feet in Case 2 of 2" copper-nickel pipe at $3.60 per foot. Case 3 used 40 feet of the
same pipe to feed raw water to the two heat exchanger circuits. Larger engines (greater than 1,000
horsepower (750 kW)) will sometimes have auxiliary systems such as heat exchangers mounted in other
compartments or even in other decks of the ship than the main propulsion engine(s). More extensive
lengths of piping were costed for the larger engines (e.g. up to 160 feet of 4" copper tubing for a 4,000
horsepower (3,000 kW) engine).
Coolant: Ethylene glycol and water are mixed to create the coolant fluid. As more coolant will be
needed for the separate-circuits of Case 3, coolant costs are included in the incremental cost estimates.
The concentration of ethylene glycol in the coolant varies depending on the use of the vessel and the
climate it most frequently operates in. For this study, mixed coolant was estimated at $0.50 per gallon
with coolant tanks varying from 30 to 150 gallons.
Thermostat: Thermostat costs are expected to increase modestly or not at all between the various
cases. While the algorithms governing thermostatic controls may change with the addition of
turbochargers and aftercoolers to the engine, it is not expected that the actual thermostat hardware will
change or that an additional thermostat will be required.
Wiring: Estimated wiring costs varied widely in our investigation. While one manufacturer stated
that nearly $500 worth of wiring needed to be added on an aftercooled, turbocharged, and electronically
controlled engine, other estimates were much lower. For these cost analyses, ARCADIS Geraghty and
Miller treated the $500 cost as though it included both for the wire and the installation labor. Actual costs
of wire in this report are $10 to $25 depending on the size of the engine with additional costs factored
into the installation labor costs for each case.
FIXED COSTS
Fixed costs are included to show the development costs incremental to the Case 1 baseline that
will be required for Case 2 and Case 3 engines. These incremental costs are for such efforts as adjusting
and fitting the water cooled manifold system, the water cooled turbocharger, and the aftercooler system
to the engine as well as costs for lab tests and field tests of engine performance. Although Case 2
technologies already exist in land-based nonroad engines of equivalent power ratings, their transfer to
marine applications will require additional development costs such as testing and setting the injection
characteristics of the engine over those required for the land-based engine.
Fixed costs are calculated based on the development costs per model line obtained by
conversations with several engine manufacturers. Fixed costs per model line range from $400,000 to $1.4

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million depending on the degree of redesign and the size of the engine. Higher costs are expected for
larger engines due to the additional expense of fabricating prototype parts and conducting engine tests.
These development costs per model line are amortized over 5 years at seven percent interest per annum.
Fixed costs per engine are found by taking the amortized development costs per model line, dividing by
the engine sales per year, and multiplying by the model lines in the power range. Some manufacturers
have indicated that there will be fewer model lines for engines meeting new emission standards. While a
reduction in model lines has not been included in the fixed cost estimates of this report, streamlined
production offerings would result in reduced fixed costs per engine.
IMPROVEMENTS IN BRAKE SPECIFIC FUEL CONSUMPTION
As described earlier, turbocharging and aftercooling an engine improve the engine's BSFC.
Lifetime fuel cost savings for each one percent improvement in BSFC are detailed in Table A-6 and
summarized in Table 2. Baseline BSFC numbers were obtained from marketing information available
from Cummins, EMD and DDC for engines in the test case engine horsepower ranges. Load factors,
annual hours of operation, and engine lifetime were obtained from Power Systems Research and are
expected to be representative for the test case engines. The average cost per gallon of API 35 fuel was
based on EPA estimates of nationwide fuel prices at $0.65 per gallon. If fuel prices increase over time,
the value of the BSFC improvement will increase correspondingly.

Table 2 - Lifetime Savings From One Percent Improvement in BSFC

Commercial
Auxiliary
130 hp
$781
$613
500 hp
$3,626
$2,561
1,000 hp
$7,857
$4,641
2,000 hp
$20,049
$9,159
4,000 hp
$46,257
$18,560
Annual fuel costs per engine were determined by multiplying the BSFC by the estimated annual
operating hours, load factor, rated horsepower, and cost of fuel per gallon then dividing by fuel density.
This annual cost was then extended over the expected lifetime of the engine and brought to the net
present value of money using a seven percent interest discount rate.
RESULTS
Table 3 presents the total and incremental costs associated with each of the nominal test case engines
examined in this study. More detailed analysis is available in the Appendix.

Table 3 - Estimated System and Incremental Cost Estimates
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Engine
Power
Ranges
(Hp)
50-300
300 - 750
750 - 1,500
1,500-2,500
2,500 - 6,000
Nominal
Engine
Power
(Hp)
130
500
1,000
2,000
4,000
Case 1
System Incremental
$2,582
$4,417
$8,688
$14,972
$25,058
Case 2
System Incremental
$4,236 $1,655
$9,954 $5,536
$26,436 $17,748
$41,391 $26,419
$70,715 $45,657
Case 3
System Incremental
$5,167 $2,585
$12,493 $8,075
$32,721 $24,032
$50,943 $35,971
$86,427 $61,369
EPA Contract No. 68-C5-0010, WA 2-05
Page 14 of 23
                                          SJ007305.0000

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REFERENCES

1.   "Industry Wage Survey: Motor Vehicles and Parts 1989," U.S. Department of Labor, Bureau of
    Labor Statistics, October 1991, Bulletin 2384, page 7.

2.   "Employment Cost Indexes and Levels, 1975-1994,"  U.S. Department of Labor, Bureau of Labor
    Statistics, September 1994, Bulletin 2447, page 65.

3.   Lindgren, Leroy H., "Cost Estimations for Emission Control Related Components/Systems and Cost
    Methodology Description," Rath & Strong, Inc., Report No. EPA 460/3-78-002, December 1977.

4.   "Update of EPA's Motor Vehicle Emission Control Equipment Retail Price Equivalent (RPE)
    Calculation Formula," Jack Faucett Associates, Report No. JACKFAU-85-322-3, September 1985.
EPA Contract No. 68-C5-0010, WA 2-05                                            Page 15 of 23
                                         SJ007305.0000

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                                            APPENDIX

Explanatory notes for Tables A-l through A-5
•   Case 1: Naturally-Aspirated Engine with Onboard Heat Exchanger
•   Case 2: Engine with Turbocharger and Aftercooler in the Engine Coolant Loop
•   Case 3: Separate Circuit Aftercooler
•   Raw water pump may require an upgrade for Case 2 if flows need to increase appreciably due to aftercooler
    heat load. In most cases, it will be sufficient to increase the effectiveness of the heat exchanger.
•   Development costs included above are for marine specific development. Costs for electronic controls and
    combustion optimization already included in the development of the equivalent industrial and locomotive
    engines.
•   Engines per year for Case 2 and Case 3 are a sum of auxiliary and commercial sales as projected by PSR for
    the horsepower range.
•   Number of Heat Exchangers Required - The line item price for Case 3 is the combined price for both units.
EPA Contract No. 68-C5-0010, WA 2-05                                             Page 16 of 23
                                              SJ007305.0000

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         Table A-l: Incremental Costs for marine diesel engine technology improvements, 50 to 300 HP
Nominal Engine hp 130
Hardware Cost to Manufacturer
Turbocharger (each)
Number Required
Aftercooler (each)
Number Required
Heat Exchanger (total)
Number Req. (see explanatory note)
Fresh Water Pump
Raw Water Pump
Piping Total
Fresh water Pipe @ 2" feet
total fresh water pipe cost
Raw Water Pipe @ 2" feet
total raw water pipe cost
Coolant
Thermostat
Wiring feet
cost
Total Hardware Cost
Assembly
Labor @ $28/hr hours
total labor cost
Overhead @40%
Total Assembly Cost
Markup on Hardware and Assembly @ 29%
Total Component Costs
Fixed Costs
Development Costs Per Model Line
Engine Sales Per Year
Model Lines in Horsepower Range
Years To Recover
Fixed cost/engine
Total Costs/engine
Total Incremental Costs

Casel
$0
0
$0
0
$227
1
$91
$225
$44
6
$7
10
$36
$8
$15
50
$20
$630

35
$980
$392
$1,372
$580
$2,582






$2,582
$0
# Cylinders
Case 2
$208
1
$176
1
$284
1
$91
$225
$44
6
$7
10
$36
$8
$15
55
$25
$1,075

40
$1,120
$448
$1,568
$767
$3,410

$400,000
3284
26
5
$826
$4,236
$1,655
4
Case 3
$208
1
$194
1
$426
2
$137
$325
$90
8
$10
22
$80
$13
$15
60
$27
$1,434

46
$1,288
$515
$1,803
$939
$4,176

$480,000
3284
26
5
$992
$5,167
$2,585
EPA Contract No. 68-C5-0010, WA 2-05
                                             SJ007305.0000
Page 17 of 23

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        Table A-2: Incremental Costs for marine diesel engine technology improvements, 300 to 750 HP
Nominal Engine hp 500
Hardware Cost to Manufacturer
Turbocharger (each)
Number Required
Aftercooler (each)
Number Required
Heat Exchanger (total)
Number Req. (see explanatory note)
Fresh Water Pump
Raw Water Pump
Piping Total
Fresh water Pipe @ 2" feet
total fresh water pipe cost
Raw Water Pipe @ 2" feet
total raw water pipe cost
Coolant
Thermostat
Wiring feet
cost
Total Hardware Cost
Assembly
Labor @ $28/hr hours
total labor cost
Overhead @40%
Total Assembly Cost
Markup on Hardware and Assembly @ 29%
Total Component Costs
Fixed Costs
Development Costs Per Model Line
Engine Sales Per Year
Model Lines in Horsepower Range
Years To Recover
Fixed cost/engine
Total Costs/engine
Total Incremental Costs

Casel
$0
0
$0
0
$874
1
$137
$500
$85
10
$12
20
$73
$15
$15
50
$35
$1,660

45
$1,260
$504
$1,764
$993
$4,417






$4,417
$0
# Cylinders
Case 2
$800
1
$677
1
$1,092
1
$137
$500
$85
10
$12
20
$73
$15
$15
55
$38
$3,359

50
$1,400
$560
$1,960
$1,543
$6,862

$550,000
1579
15
2
$3,092
$9,954
$5,536
6
Case 3
$800
1
$745
1
$1,638
2
$227
$600
$170
20
$24
40
$146
$25
$15
60
$40
$4,260

65
$1,820
$728
$2,548
$1,974
$8,782

$660,000
1579
15
2
$3,711
$12,493
$8,075
EPA Contract No. 68-C5-0010, WA 2-05
                                             SJ007305.0000
Page 18 of 23

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       Table A-3: Incremental Costs for marine diesel engine technology improvements, 750 to 1,500 HP
Nominal Engine hp 1000
Hardware Cost to Manufacturer
Turbocharger (each)
Number Required
Aftercooler (each)
Number Required
Heat Exchanger (total)
Number Req. (see explanatory note)
Fresh Water Pump
Raw Water Pump
Piping Total
Fresh water Pipe @ 2" feet
total fresh water pipe cost
Raw Water Pipe @ 3 " feet
total raw water pipe cost
Coolant
Thermostat
Wiring feet
cost
Total Hardware Cost
Assembly
Labor @ $28/hr hours
total labor cost
Overhead @40%
Total Assembly Cost
Markup on Hardware and Assembly @ 29%
Total Component Costs
Fixed Costs
Development Costs Per Model Line
Engine Sales Per Year
Model Lines in Horsepower Range
Years To Recover
Fixed cost/engine
Total Costs/engine
Total Incremental Costs

Casel
$0
0
$0
0
$1,747
1
$232
$1,000
$128
15
$18
30
$109
$35
$25
55
$40
$3,207

90
$2,520
$1,008
$3,528
$1,953
$8,688






$8,688
$0
# Cylinders
Case 2
$1,600
1
$1,355
1
$2,184
1
$232
$1,000
$128
15
$18
30
$109
$35
$25
60
$42
$6,601

100
$2,800
$1,120
$3,920
$3,051
$13,572

$700,000
142
10
5
$12,864
$26,436
$17,748
8
Case 3
$1,600
1
$1,490
1
$3,276
2
$369
$1,200
$255
30
$36
60
$219
$43
$25
65
$44
$8,302

130
$3,640
$1,456
$5,096
$3,885
$17,284

$840,000
142
10
5
$15,437
$32,721
$24,032
EPA Contract No. 68-C5-0010, WA 2-05
                                             SJ007305.0000
Page 19 of 23

-------
      Table A-4: Incremental Costs for marine diesel engine technology improvements, 1,500 to 2,500 HP
Nominal Engine hp 2000
Hardware Cost to Manufacturer
Turbocharger (each)
Number Required
Aftercooler (each)
Number Required
Heat Exchanger (total)
Number Req. (see explanatory
note)
Fresh Water Pump
Raw Water Pump
Piping Total
Fresh water Pipe @ 3" feet
total fresh water pipe cost
Raw Water Pipe @ 3 " feet
total raw water pipe cost
Coolant
Thermostat
Wiring feet
cost
Total Hardware Cost
Assembly
Labor @ $28/hr hours
total labor cost
Overhead @40%
Total Assembly Cost
Markup on Hardware and Assembly @ 29%
Total Component Costs
Fixed Costs
Development Costs Per Model Line
Engine Sales Per Year
Model Lines in Horsepower Range
Years To Recover
Fixed cost/engine
Total Costs/engine
Total Incremental Costs

Casel
$0
0
$0
0
$3,495
1

$395
$2,000
$310
45
$55
70
$255
$45
$25
65
$45
$6,314

135
$3,780
$1,512
$5,292
$3,366
$14,972






$14,972
$0
# Cylinders
Case 2
$1,778
2
$1,505
2
$4,368
1

$395
$2,000
$310
45
$55
70
$255
$45
$25
70
$48
$13,757

150
$4,200
$1,680
$5,880
$5,695
$25,332

$1,000,000
130
8
5
$16,059
$41,391
$26,419
16
Case 3
$1,778
2
$1,656
2
$6,552
2

$532
$2,200
$620
90
$109
140
$510
$60
$25
75
$52
$16,908

195
$5,460
$2,184
$7,644
$7,120
$31,672

$1,200,000
130
8
5
$19,271
$50,943
$35,971
EPA Contract No. 68-C5-0010, WA 2-05
                                             SJ007305.0000
Page 20 of 23

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      Table A-5: Incremental Costs for marine diesel engine technology improvements, 2,500 to 6,000 HP
Nominal Engine hp 4000
Hardware Cost to Manufacturer
Turbocharger (each)
Number Required
Aftercooler (each)
Number Required
Heat Exchanger (total)
Number Req. (see explanatory note)
Fresh Water Pump
Raw Water Pump
Piping Total
Fresh water Pipe @ 3" feet
total fresh water pipe cost
Raw Water Pipe @ 4 " feet
total raw water pipe cost
Coolant
Thermostat
Wiring feet
cost
Total Hardware Cost
Assembly
Labor @ $28/hr hours
total labor cost
Overhead @40%
Total Assembly Cost
Markup on Hardware and Assembly @ 29%
Total Component Costs
Fixed Costs
Development Costs Per Model Line
Engine Sales Per Year
Model Lines in Horsepower Range
Years To Recover
Fixed cost/engine
Total Costs/engine
Total Incremental Costs

Casel
$0
0
$0
0
$6,989
1
$671
$2,800
$401
60
$73
90
$328
$75
$500
75
$50
$11,487

203
$5,670
$2,268
$7,938
$5,633
$25,058






$25,058
$0
# Cylinders
Case 2
$2,133
4
$1,594
4
$8,737
1
$671
$2,800
$401
60
$73
90
$328
$75
$500
85
$55
$28,148

225
$6,300
$2,520
$8,820
$10,721
$47,689

$1,200,000
68
5
5
$23,026
$70,715
$45,657
20
Case3
$2,133
4
$1,753
4
$13,105
2
$871
$3,200
$729
120
$146
160
$583
$100
$500
95
$60
$34,112

293
$8,190
$3,276
$11,466
$13,218
$58,796

$1,440,000
68
5
5
$27,631
$86,427
$61,369
EPA Contract No. 68-C5-0010, WA 2-05
                                             SJ007305.0000
Page 21 of 23

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      Table A-6: Lifetime fuel savings estimated for a one percent improvement in brake specific fuel
                                           consumption
Load



Factors, % of hp
Recreational
Commercial
Auxiliary
Annual Operating Hours, hr/yr







Recreational
Commercial
Auxiliary
Lifetime, yr
Recreational
Commercial
Auxiliary
Avg BSFC, Ib/hp-hr


Avg Fuel Cost
Cost 35 API


Commercial

Present
Value

Savings
Recreational

Present
Value

Savings
Auxiliary

Present
Value

Savings
Commercial
1% Improvement

$ 0.65/gallon


Pre
1%
Pre

1%
$/lifetime
Pre
1%
Pre

1%
$/lifetime
Pre
1%
Pre

1%
$/lifetime
150
30%
69%
65%
150
225
3000
2500
150
13
15
17
130
0.343
0.340


Fuel Savings
130 hp
$8,576
$8,491
$78,114

$77,333
$781
$285
$282
$2,598

$2,572
$26
$6,733
$6,665
$61,321

$60,708
$613
400
30%
71%
65%
400
225
3241
2500
400
13
15
17
500
0.373
0.369

Density
with PV of money
500 hp
$39,814
$39,415
$362,619

$358,993
$3,626
$1,191
$1,179
$10,850

$10,741
$108
$28,116
$27,834
$256,075

$253,514
$2,561
750
40%
73%
65%
750
500
3769
2500
750
13
15
17
1000
0.338
0.334

7.001

1000hp
$86,270
$85,407
$785,737

$777,879
$7,857
$6,396
$6,332
$58,258

$57,676
$583
$50,952
$50,443
$464,068

$459,427
$4,641
2000
—
79%
65%
2000
~
4503
2500
2000
~
15
17
2000
0.333
0.330

Ib/gal

2000 hp
$220,132
$217,930
$2,004,940

$1,984,891
$20,049


$0

$0
$0
$100,556
$99,550
$915,853

$906,694
$9,159
5000
—
81%
65%
5000
~
5000
2500
5000
~
15
17
4000
0.338
0.334



4000 hp
$507,875
$502,796
$4,625,678

$4,579,421
$46,257


$0

$0
$0
$203,777
$201,739
$1,855,982

$1,837,422
$18,560
Summary
Recreational
Commercial
Auxiliary

$/lifetime
$/lifetime
$/lifetime

Annual Payment = (Avg BSFC)
(Cost 35 API)

$ 26
$ 781
$ 613
Sample
* (Nominal hp) *

$ 108
$ 3,626
$ 2,561
Calculation:
$ 583
$ 7,857
$ 4,641

$
$ 20,049
$ 9,159

(Load Factor) * (Annual hr of operation) /



$
$ 46,257
$ 18,560

(Density) *

EPA Contract No. 68-C5-0010, WA 2-05
Page 22 of 23
                                            SJ007305.0000

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     Savings       = (Pre Present Value) - (1% Present Value)
                                     Table A-7: Heat Rejection

                                                              Engine Horespower
    Heat Rejected                                     130     500     1000    2000    4000
    Case 1: engine only (kW)                              98      375     740     1200    2200
    Case 2: engine & aftercooler -conventional (kW)          228     505     955     1535    2585
    Case 3: engine & aftercooler- separate circuit (kW)       253     530     995     1600    2655
              Increase (%), Case 1 to Case 2            133%    35%     29%    28%     18%
              Increase (%), Case 2 to Case 3             11%     5%     4%      4%     3%
EPA Contract No. 68-C5-0010, WA 2-05                                          Page 23 of 23
                                           SJ007305.0000

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MEMO                                                     EPA420-R-98-021
 To:                                         Copies:
 Alan Stout - EPA, Office of Mobile Sources    Jean Hoff - ICF
                                                                               TRANSPORTATION
                                                                               TECHNOLOGY
 From:                                         Date:
 Kassandra Genovesi and Louis Browning       30 September 1998

 Subject:
 Incremental Cost Estimates for Marine Diesel Engine Technology Improvements
INTRODUCTION
       The United States Environmental Protection Agency (EPA) plans to propose emission standards
for new propulsion and auxiliary marine compression ignition engines rated at or above 50 horsepower
(37 kW). This memorandum provides incremental cost analyses for some of the technologies most likely
to be used to meet the new emission standards. Most marine engines of less than 6,000 horsepower
(5,000 kW) are expected to be derived from land-based engines. Emission standards for on-highway, for
nonroad, and for locomotive diesel engines have already been adopted by EPA. Because these standards
are already in place, the technology exists for land-based engines to meet emission standards. Marine
engines will be expected to meet similar standards, thus this report details the costs to convert a land-
based nonroad engines meeting the appropriate, land-based emission standards into an engine suitable for
marine use and meeting marine emission standards. The technologies from this conversion process that
are considered in this report are for improvements related to turbocharging and aftercooling, which are
specific to the marine engine and distinct from those required for the equivalent engine's land-based
application. Consideration is also given to the additional development time required for adopting land-
based engine technologies, such as optimizing calibrations and reprogramming electronic controls. The
appendix at the end of this document includes tables that summarize these marine-specific costs.
EPA Contract No. 68-C5-0010, WA 2-05                                              Page 1 of 23
                                          SJ007305.0000