0 BNSF Railway Alternative Fuels for Locomotives Discussion Points June 8 th, 2011

1 BNSF BioDiesel Currently use up to 5% BioDiesel “B5” as part of ASTM D975 diesel fuel specification “B20” test at Havre, MT to evaluate maintenance & reliability impacts Initial plugging of fuel filters due to fuel system “clean-up”, no subsequent issues Fuel injector teardown inspection, no issues Extreme winter operation – no testing issues 1 year test concludes July 2011 B20 test locomotive at Havre, MT undergoing 1 year test of 20% BioDiesel to evaluate maintenance and reliability impacts of higher concentration BioDiesel. The test is a cooperative effort between BNSF, Opportunity Link, Bear Paw Development Corp and Montana State University – Northern sponsored by the Montana Department of Environmental Quality.

2 Hydrogen Fuel Cell Hybrid - Update Defense Non-Tactical Generator & Rail Equipment Center, Hill AFB May 21, 2010 In service testing Commerce, CA complete 1Q-2010 Hill Air Force Base stationary power generation testing complete 2Q-2010 Topeka 1H-2011 “Phase II Upgrade” - Increased fuel cell power - Increased hydrogen storage capacity - Electrical control upgrade Static & TTCI Pueblo testing 2H-2011

3 Natural Gas as a Locomotive Fuel Spark Ignition - Gas premixed with air and spark ignited - Loss in efficiency relative to diesel - Significant loss in horsepower (30%) Duel Fuel Low Pressure Gas Injection - Early cycle low pressure gas injection into cylinder with diesel pilot ignition - 8% efficiency loss due to reduced compression ratio to prevent pre- ignition “engine knock” Dual Fuel High Pressure Gas Injection - Late cycle high pressure gas injection w/diesel pilot ignition - High compression ratio maintained, no loss in power or efficiency - High pressure presents design and safety challenges Engine Combustion Options:

4 Burlington Northern LNG Effort Burlington Northern Collaboration with Energy Conversions and Air Products 2 SD40-2’s converted with low pressure gas injection and diesel pilot ignition. 25,000 Gallon stainless steel tender fueled 2 locomotives Operated between Montana and Superior Fuel facility at Staples 3 year test concluded in 1995 SD40-2 operated on Refrigerated Liquid Methane “RLM” (high purity form of liquefied natural gas). Start, Idle and low notches on diesel, duel fuel in high power on duel fuel. Capable of 100% diesel operation if needed.

5 Example: MK1200G LNG HP LNG fueled switch locomotive built by MK Rail (now Wabtec) Powered with Caterpillar 3516G Spark ignited engine 16 cylinder engine normally rated at 2000 HP LNG fuel tanks under frame. “DTL” fueled. 2 built for ATSF & 2 for UP BNSF has experienced reliability issues and escalating fuel cost MK1200G LNG fueled switch locomotive operated by ATSF and UP. UP ended participation in 1998 due to low reliability and high fuel costs. BNSF leased 2 former UP locomotives which are now used with the original ATSF units on the LAJ. The lease on all 4 locomotives expires March 2012.

6 UP EMD & GE Development Program with EMD and GE to investigate LNG Late cycle high pressure injection with diesel pilot ignition. 100% diesel use possible. Intended to provide in service demonstration. Only succeeded in basic engine and fuel system development. Operated on LNG with negligible impact to efficiency and power output compared to diesel. Difficulties in EMD and GE programs including issues with gas injectors, LNG fuel system, and engine control systems. One of two General Electric Dash-8 duel fuel LNG locomotives with LNG tender car. Similar conversions done by EMD on 2 SD60M locomotives. At the conclusion of the program locomotives converted back to diesel only operation.

7 Locomotive Emissions “PM” Particulate Matter - Carbon (soot) - Sulfate (sulfur in fuel) - Organic Compounds (Fuel / lube oil) Improved with reduced oil consumption, more complete combustion, low sulfur fuel “NO x ” Oxides of Nitrogen - Oxides of Nitrogen (N, NO, NO 2 ) - Formed at high temperatures Improved by reducing combustion temperature (better intake air cooling “split- cooling” or retarding engine timing) Particulate Matter Components Particulate Matter Sources Soot from combustion Oil transfer past rings Oil transfer past valve stems

8 Emissions Reduction Path Tier 3 ( ) Tier 2 ( ) Tier 1 ( ) Tier 0 ( ) Tier 4 - DPF / DOC - SCR / Urea - EGR Unregulated Tier 0 - Intake cooling - Injectors - Timing Tier 1 - Power assembly - Turbo - Timing Tier 3 - Power assembly - Common rail fuel 1 year 3 years 7 yrs PM Emissions (gm/hp-hr) NO x Emissions (gm/hp-hr) 2 yrs - 25% - 55% - 50% - 22% - 26% Where we have come from … Where we are going … How we are getting there 2015 Tier 2 - EVo Engine - Intake air cooling - Control system

9 GE Tier 3 Changes Fuel Injector High Pressure Fuel Pump Cam Shafts Turbocharger Fuel Filter HP Fuel Line Water Separator Engine Controller Piston Rings