CUMMINS INC. SELECTED BY THE UK DEPARTMENT OF TRANSPORT FOR ITS HIGH-HORSEPOWER METHANOL VESSEL RETROFIT PROJECT

Daventry, United Kingdom
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One of Only 10 Flagship Projects Chosen in the Multi-Million-Pound ZEVI Competition Enabling Decarbonization of the UK’s Maritime Sector

Today, Cummins Inc. (NYSE: CMI) announced the selection of its proposal to jointly develop a Methanol Kit for its QSK60 engine as part of the Zero Emission Vessels and Infrastructure (ZEVI) competition, funded by the UK Government and delivered in partnership with Innovate UK. To be chosen as one of the top 10 projects, Cummins delivered a proposal to collaborate with a major UK port and operators to develop, deploy and operate clean maritime technology solutions on the path to decarbonization and reduction to the overall greenhouse gas footprint.

The £4.4M in total funding will be leveraged by Cummins and its fellow project stakeholders — Ocean Infinity, the Aberdeen Harbour Board, and Proman AG — in the deployment of a UK-designed and built methanol conversion kit for a high-horsepower marine internal combustion engine, offering the UK an important foothold in enabling the transition to cleaner maritime fuels.

Upon completion in the second quarter of 2025, the project targets a reduction in CO2 emissions of 50 percent for offshore operations of the vessel with NOx, SOx and PM at levels considerably below those emitted by conventional fuel. Furthermore, all retrofitted dual-fuel engines will achieve compliance with IMO Tier III emission standards.

"Cummins is honored to be selected by the UK Government in support of this dual fuel project that aligns well with our bridge technologies strategy," said Mark Bargent, Cummins Technology Architecture and Planning Director. "We remain committed to helping the maritime sector reach its goal of 50 percent reductions in greenhouse gas emissions by 2050, as required by the IMO. To get there, ship builders need a roadmap for their decarbonization plans."

"This project, with its focus on the conversion of existing engine installations, offers a seamless transition between today and the future builds of new, cleaner technology ships," added Molly Puga Cummins Executive Director - Strategy, Product Planning & Digital. "It dismisses the need for a major vessel overhaul and creates an immediate positive impact on carbon emissions reduction in all environmental and operating conditions, ultimately helping the maritime sector meet our global climate needs."

As part of the consortium, Ocean Infinity will provide one of its Armada 78m lean-crewed hybrid offshore service vessels for Cummins to design, develop, and test the dual fuel HVO (hydrotreated vegetable oil) and methanol technology. Earlier in Q3, Cummins had announced the approval of unblended paraffinic fuels — often referred to as renewable diesel including HVO — in all its high horsepower engines for all industrial applications.

The Port of Aberdeen — with a strong ambition to become Scotland’s premier net zero port — offers its world-class facilities and services for testing the vessels, while Proman AG lends its long-standing global expertise in methanol production and leading development of ultra-low carbon methanol production.

Ocean Infinity's Chief Technology Officer Josh Broussard said: "Ocean Infinity exists to use innovative technology to transform operations at sea for the benefit of people and the planet. This project forms part of our wider future fuels strategy targeting a transition from traditional energy sources to low carbon alternatives to ultimately minimize the environmental impact of our ship operations. Our strategy includes advanced bio-fuels, such as HVO and methanol, to bridge the gap before eventually developing ammonia in the future."

For more information on Cummins Marine engines, visit https://www.cummins.com/engines.
 

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues, EBITDA and agreement in principle to settle regulatory proceedings regarding our emissions certification and compliance process for pick-up truck applications. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into the Agreement in Principle, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc. (Meritor); raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; uncertainties and risks related to timing and potential value to both Atmus Filtration Technologies Inc. (Atmus) and Cummins of the planned separation of Atmus, including business, industry and market risks, as well as the risks involving the anticipated favorable tax treatment if there is a significant delay in the completion of the envisioned separation; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2023 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

ZEVI Projects

The High-Horsepower Methanol Vessel Retrofit Project is part of the Zero Emission Vessels and Infrastructure competition (ZEVI), which was announced in February 2023, funded by UK Government and delivered in partnership with Innovate UK. As part of ZEVI, the Department for Transport allocated over £80m to 10 flagship projects supported by 52 organisations from across the UK to deliver real world demonstration R&D projects in clean maritime solutions. Projects will take place in multiple locations from the Orkney Isles to the south west of England.

ZEVI is part of the UK Shipping Office for Reducing Emission's (UK SHORE), focused on clean maritime technologies that can be scaled rapidly to decarbonise the UK's domestic maritime sector. In March 2022, the Department announced the biggest government investment ever in our UK commercial maritime sector, allocating £206m to UK SHORE, a new division within the Department for Transport focused on decarbonising the maritime sector. UK SHORE is delivering a suite of interventions throughout 2022-2025 aimed at accelerating the design, manufacture and operation of UK-made clean maritime technologies and unlocking an industry-led transition to Net Zero. 
 

About Cummins Inc.

Cummins Inc., a global power solutions leader, comprises five business segments - Components, Engine, Distribution, Power Systems and Accelera by Cummins - supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company's commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023. 

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