1. © Ricardo plc 2014 The difference is CLEAR 2014 Iowa Renewable Fuels Summit

2. 2 © Ricardo plc 2014 Our Heritage More than 90 years of successful project delivery across multiple market sectors Providing technology, product innovation, engineering solutions and strategic consulting to the world’s automotive industries since 1915 2013 1915 Ricardo is a global, world-class, multi-industry consultancy for engineering, technology, project innovation and strategy.

3. 3 © Ricardo plc 2014 Global Reach

4. 4 © Ricardo plc 2014 Products & Services Engines Transmissions & DrivelineHybrid/Electrical Systems Vehicle EngineeringPerformance Products Strategic Consulting Environmental Consulting Software

5. 5 © Ricardo plc 2014 Diverse Market Sectors

6. 6 © Ricardo plc 2014 Our Clients We have experience working with leading companies across a number of demanding market sectors Passenger CarHigh Performance Vehicles & Motorsport Commercial Vehicles Agricultural & Industrial Vehicles Motorcycles & Personal Transportation MarineRailClean Energy & Power Generation DefenceGovernment UK MoD TACOM

7. 7 © Ricardo plc 2014 Legendary Automotive Innovators: Henry Ford, Charles Kettering (GM), and Sir Harry Ricardo – Ethanol Based Fuels Anticipated depletion of petroleum reserves Expressed hope for a destiny beyond fossil energy –Ford expected bio-fuels would strengthen the rural economy –Kettering planned to help the auto industry avoid oil shortages –Sir Harry hoped to promote national energy security All three had views on ethanol as an anti-knock additive Over 90 years ago “Ricardo Discol racing spirit” was patented, an alcohol-blended fuel The work continues today … questions include: –What is the ultimate fuel economy possible from downsizing? –Where is the “sweet spot” for fuel octane ?

8. 8 © Ricardo plc 2014 Cross Sector Innovation Evolutionary development of current technologies will deliver benefits – but disruptive technologies can be game changers Current ICE Technology Low Carbon Propulsion Systems Disruptive Revolutionary Technologies Source: Ricardo Analysis Iterative Evolutionary Technologies Combustion Optimisation Charge/Boost Technology Downsizing Friction reduction Exhaust Gas Heat Recovery Advanced Fuel Injection Low Carbon Sustainable Fuels Hybrid Systems Energy Recovery New Ideas in Thermodynamics Integrated Cycles New Processes Intelligent Automation Combination of Function

9. 9 © Ricardo plc 2014 Downsizing & Boosting- Synergy With Ethanol

10. 10 © Ricardo plc 2014 EBDI- Extreme Boosted Direct Injection A Ricardo Technology Demonstrator Fuel economy improvement benefit for multiple applications: o Passenger cars o Truck and medium duty vehicles o Off road applications: Agricultural and Construction Provides a scalable SI engine technology package EBDI = EXTREME Downsizing Objective: o Develop a 3.2L Spark Ignited engine running on E85 ethanol with performance of 6-7L diesel engine: o Provide flexible powertrain optimized for operation on standard pump gasoline to E85

11. 11 © Ricardo plc 2014 EBDI- Extreme Boosted Direct Injection Significantly Improved SI Fuel Economy Using standard vehicle transmission: o Achieved diesel like fuel efficiency o Higher fuel economy over FTP75 cycle 26.5% higher compared to existing gasoline engine 3.5% higher compared to existing diesel engine Further improvements in highway performance is possible by optimizing the vehicle’s transmission gear ratios

12. 12 © Ricardo plc 2014 EBDI- Extreme Boosted Direct Injection High Performance Capability Achieved diesel like performance: o Low speed torque o Broad torque curve o High torque (900 Nm)

13. 13 © Ricardo plc 2014 Conclusion: During the next decade internal combustion engines will become significantly more efficient Future fleet fuel economy targets in the U.S. will require significant changes in engine technology over the next 10–15 years Vehicle electrification will be part of the solution, but the vast majority of vehicles sold in 2025 will use internal combustion engines as the primary form of propulsion –Battery-only electric vehicles will only represent a niche market Engines will have higher specific power from using technologies such as –Direct injection –Turbocharging or similar boost systems –Higher compression ratios Ethanol fuel properties make it possible to match diesel efficiency in a highly Boosted Engine by means of downsizing –Combine with downspeeding to create further benefits Future powertrain solutions will have a natural thirst for higher octane fuels

14. 14 © Ricardo plc 2014