by N Kholod · 2015 · Cited by 2 — About 12,500 BELAZ trucks worked in the mining Available at epa/otaq/documents/nonroad-diesel/nr-ria.pdf. EPA, 1998b.

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Report No. PNWD – 4448 Evaluation of Black Carbon Emission Reduction s fr om Mining Trucks in Russia : The Case of the Murmansk Region By Nazar Kholod a Meredydd Evans a Vladimir Malyshev b a Battelle Memorial Institute b Murmansk State Technical University Prepared under a cooperative agreement with the U.S. Environmental Protection Agency Ju ly 201 5

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3 Contents Executive Summary .. .. .. 4 Acronyms and Abbreviations .. .. .. 5 1. Background .. .. .. 6 2. Climate and Health Effects of Black Carbon Emissions .. . 7 3. Emission Standards in the World and in Russia .. .. 7 4. Fuel Economy and Costs Associated with Emission Reductions .. 8 5. Mining Industry in the Murmansk Region .. .. 10 6. Black Carbon Emissions from Mines in the Murmansk Region .. .. 12 7. Mining Emission Reduction Options .. .. .. 13 7.1. Vehicle repowering through engine upgrade .. .. .. 13 7.2. Speeding up the engine replacement .. .. 15 7.3. Vehicle replacement .. .. .. .. 15 7.4. Retrofits .. .. .. 16 8. Conclusions .. .. .. 18 Acknowledgments .. .. .. . 18 References .. .. .. .. .. 19 Appendices .. .. .. .. . 23

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4 Executive S ummary This report discusses options for black carbon (BC) emission reductions from mining equipment in open pit mines in the Murmansk Region of Russia. The lessons learn ed in the Murmansk Region can be useful in Russia and Arctic – wide. The off – road , heavy – duty mining trucks and equipment in the Murmansk Region are very large and use diesel fuel to operate. Each truck burns more than a ton of diesel per day, reflecting its size, power, and long hours of operation. Diesel engines produce BC emissions , a result of incomplete combustion of fuel. Exposure to BC can harm the cardiovascular system and cause prematu re death. Black carbon is also considered a major contributor to current global warming , a longside carbon dioxide and methane. BC has an additional warming effect in the Arctic when deposited onto ice and snow, which also increases melting . This report considers the options for BC emission reductions from mining vehicles through engine repowering, vehicle replac ement and engine retrofit s . Given the sho r t life of engine s , mines can quickly replace old Tier 0 engines with new Tier 2 engines. Newer engines are not only much cleaner , but are also more economical and reliable. Based on the information from equipment manufacturers , i t is cost – effective for companies to buy these more expensive vehicles; they are also more reliable , fuel efficient and cleaner trucks. Our analysis shows that mines can recover the additional cost for replacing Tier 0 engines with Tier 2 ones through fuel savings. The lump – sum cost of the 1 , 000 kW engine upgrade from Tier 1 to Tier 2 is in the range of $20,000 – $30,000. Given that a new engine can work three years before its first overhaul, the average cost per year during this period is $7,000 – $ 10,000. The fuel cost savings would be $20,000 – $ 58,000 per year. Replacing a Tier 0 engine with a Tier 2 engine during planned repowering requires a one – time investment and mines can recover this cost during the first year of operations. Mines also could speed up engine replacement to increase savings . Installing a new and more efficient engine could be more cost – effective than the rebuilding of an old engine. Replacing Tier 0 engines will reduce emissions. Reduc tion of BC emissions will benefit employees , local communities , and the envir onment , and, in some instances, improve mine operation s . BC emissions reductions would reduce the risk of cancer as well as lung and cardiovascular diseases among mine workers and other residents of Murmansk R egion . R eduction of BC emissions in the Arctic will also benefit the global environment through mitigation of the melting effects of global warming.

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5 Acronyms and Abbreviations BC black carbon EPA U.S. Environmental Protection Agency EU European Union PM particulate matter PM 2.5 particulate matter with a diameter of 2.5 microns or less WHO World Health Organization DERA Diesel Emissions Reduction Program DOC diesel oxidation catalyst s P – DPF passive diesel particulate filter s A – DPF active diesel particulate filter s SCR selectiv e catalytic reduction EGR exhaust gas recirculation MECA Manufacturers of Emission Controls Association

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6 1. Background Off – road vehicles are a significant source of emissions world – wide. For example, in the U.S., BC emissions from off – road diesel vehicles account for 33.6% of emissions from all mobile sources (EPA, 2012) . In t he Murmansk Region , mining trucks produce the majority of PM and BC emission s due to their size and the mode of operation (Evans et al., 2015) . Ore movement is typically the single largest energy – using activity for open pit mines, and mining trucks consume up to 80% of total diesel consumption at the open pit mines . The role of mining trucks is growing with the increasing scal e of mining operations. According to Parker Bay, a mining market research company, the current fleet of mining trucks in the world increased from around 38,500 at the beginning of 2013 to 42,000 in October 2014 (Parker Bay Company, 2014) . The number of mining trucks in Russia is also increasing. BELAZ, the largest supplier of m ining trucks to the country, sells about 800 mining trucks to Russia every year and this number ha s been growing (Petrovich et al., 2013) . About 12,500 BELAZ trucks work ed in the mining industry in Russia in 2012. In 2012, 1 , 725 new mining trucks were sold in Russia; their total value was $ 1.05 billion. The share of BELAZ was 59.2% and Komatsu 10.2% (Discovery RG, 2015) . According to a forecast by the Russian company Discovery Research Group, the mining truck market segments will grow by 1 – 7 % per year during the next decade. Expansion of mining operations in Russia brings up several important issues. First of all, mining companies need more energy efficient and reliable trucks. Recent development s in mining truck technologies provide significant improvements in productivity, safety and efficiency. New engines are more economical while provid ing the same power output , which is important given increasin g fuel prices in Russia. Second, most countries have been introducing more stringent environmental requirements , and , in response , engine producers have improved technologies to significantly reduce emissions. Lowering emissions is important for companies and their surrounding communities because diese l emissions, including BC , have negative impact s on health. By using new cleaner engines, mining companies can improve the air quality and avoid cost s associated with health problems. Exhaust gase s from mining trucks and equipment also can create a significant problem fo r mining operations. According to an Apatite mine representative, exhaust emissions from mining trucks can significantly limit visibility in open pit mines , causing work stoppages due to poor air quality to avoid an increased risk of accidents.

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8 Mining trucks are mostly equipped with engines with power output over 560 kW. The U.S. adopted its first emission regulation for off – road vehicles with engine power of over 560 kW in 2000 (Table 1). Table 1 . The U . S . EPA off – road diesel engine PM emission standards for engines over 560 kW EPA Tier Model Year PM , g/kWh (g/bhp – h) Tier 1 2000 0.54 (0.4) Tier 2 2006 0.20 (0.15) Tier 3 (voluntary) 2006 0.12 (0.09) Tier 4 interim 2011 0.10 (0.075) Tier 4 final 2015 0.04 (0.03) Source: Russia introduced European standards for new diesel engine s for on – road vehicles in 2006 (Government of Russian Federatio n, 2005) . However, Russia does not have emission regulations for off – road construction and mining vehicles. Russia mostly uses foreign – made, off – road engines . Most mining truck engines in Russia are marked with EPA Tier standards . Since there are no emission control requirements, mining vehicles can be equipped with engines which do not meet even Tier 1 requirements. Engine producers that supply the Russian market, such as Cummins, can supply engines either with or without emission controls (Mining Magazine, 2008) . Th e extent of controls is one of the important uncertainties regarding emission estimates from the mining industry . Russia has limited production of mining trucks and Belorussian producer BELAZ is the largest suppliers of large trucks to Russia. Most BELAZ trucks are equipped with Cummins engines. Based on information from Cummins, 88% of the large, Cummins – powered, BELAZ mini ng truck s have no controls on their engine exhaust and the remaining 12% meet EPA Tier 1 requirements (Mueller, 2014) . A smaller population of Caterpillar and Komatsu trucks meets Tier 2 requirements. The Tier distribution of a limited number of the MTU engines in Russia is as follows: T ier 0 20%, Tier 1 75%, Tier 2 5% (Madariaga, 2014) . The lack of emission s regulations in Russia is a significant hurdle for emission s reductions from off – road vehicles. 4. Fuel E conomy and Costs Associated with E mission R eductions The primary goal of Tier rules is to reduce emission s . In order to meet the most stringent Tier 4 requirements, PM emission s from diesel engines were reduce d by 90% from unregulated levels. Emission reductions also are associated with changes in fuel economy and the cost of equipment. U . S . EPA is responsible for impact analysis of the proposed emission reductions rules. EPA analysis initially suggest ed that the Tier 1 standard was associated with a fuel penalty (increase in fuel consumption) in the range of 3 to 5 percent (EPA, 1994) . H owever, in recent years, because of tech nological improvements, higher T ier vehicles can actually have significant fuel economy improvements compared to earlier models of lower tier vehicles (Cummins Inc, 2014) .

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9 The costs of meeting Tier 1 emission standards were expected to add well under 1 percent to the purchase price of typical new off – road diesel equipment, although for some equipment the standards may cause price increases on the order of 2 or 3 percent (EPA, 1998b) . While introduction of the Tier 1 standard at the end of the 1990s brought some increase in fuel consumption for certain engines , the subsequent standards have been associated with better fuel economy. Learning from previous experience and applying additional R&D enabled manufacturers to optimize a combination of control strategies and techniques (EPA, 2004) . Engine manufacturers reported both their energy efficiency gains and cost changes. Development of Tier 2 engines brought additional benefits for mining operators, in addition to emission reductions. For example, Cummins announced that their QSK19 Tier 2 engine shows the fuel economy, horsepower, torque rise, transient response and service intervals similar to the levels achieved by Tier 1 models of the QSK19. In addition, n ew QSK19 engines not only last 30% longer, until the first rebuild, bu t also get an additional 30% longer life after the first rebuild (Cummins Inc, 201 4) . Tier 4 standard requirements demand PM emissions reductions of 90% from the unregulated level. The newest engines have significantly better fuel economy. For example, Cummins Tier 4 Final S olution reduces diesel fuel consumption by up to 7 percent compared with their own Tier 2 engines, depending on the duty cycle (Cummins Inc, 2012) . The Cummins QSK50 engine has 5% lower operating costs. In addition, life – to – overhaul for the Tier 4 QSK50 was extended by additional 1,500 hours or more before rebuild (Cummins Inc, 2014) . MTU repor ted that their Tier 4 engines generate fuel saving s of up to 5%, compared with previous models. Additional emission reductions req u ire higher engine production costs . We obtained real life data about the cost and fuel economy from mining trucks suppliers to Russia. The most detailed information was provided by Komatsu. Komatsu imports mining trucks with payload capacit ies of 180 and 220 tons from the U nited States to Russia . Thes e trucks are equipped with Tier 2 1,500 kW and 1,900 kW engines. Komatsu also imports into Russia from Japan and produces in Yaroslavl 90 ton HD785 – 7 trucks . These trucks are equipped with Tier 2 900 kW engines. A few years ago, Komatsu supplied similar trucks with Tier 0 engines and thus it is easy to compare the changes in the cost of equipment and energy efficiency. A new Tier 2 engine is 6 percent more expensive than a Tier 0 engine. This also ali gns with – 1.5% more than a regular vehicle (assuming that the engine accounts for 15% of the total vehicle cost) . The new Tier 2 engines are more p owerful , provid ing 875 k W as opposed to the 783 k W of old Tier 0 engines. HD785 – 7 trucks have an option to change the power output depending on work conditions. The engines provide 809 – 895 kW in full capacity mode and 698 – 750 kW in the economy mode. Fuel economy is one of the most important factors in s electing mining trucks give n the long hours of operation and fuel consumption. The new engine provides up to 12% increase in fuel economy over that of the Tier 0 engine depending on the operation mode . Given that the increase in total price is incremental , mines should consider switching to newer engines which have better fuel economy and significantly lower emissions.

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10 We should also mention that higher – Tier engines require low sulfur diesel , in part to ensure that s elective catalytic r eduction systems and other emission controls are not poisoned by the sulfur . While o ld diesel equipment can run on fuels with high sulfur content, Tier 2 engines require low or ultra – low sulfur fuel. Switching to ultra – low sulfur fuel enables using retrofit technologies, e specially DPF , and helps reduce emissions. Russia ha s significantly increas ed diesel quality. Currently three types of diesel are available on the Russian market: Euro 3 with maximum sulfur content of 350 ppm, Euro 4 (50 ppm) and Euro 5 (10 ppm). In 2013, Euro 5, with a maximum sulfur content of 10 ppm, accounted for 52% of Russian diesel production for the domestic market while the share of Euro 4 was 18% and Euro 3 was 26% (Novak, 2014) . Russia banned production of Euro 3 fuel starting in January 2015 and will restrict production of Euro 4 for the domestic market in 2016. As a result of a targeted tax policy incentivizing low – sulfur diesel production , Russia has sufficient supply of low or ultra – low sulfur diesel. The mining companies in Ru ssia use expensive machinery and fuel quality is very important for proper functioning of the engines. Diesel with low and ultra – low sulfur content is available in t he Murmansk Region . At a stakeholder meeting in Murmansk in 2012, an Apatite mine representative reported that Apatite use s low sulfur diesel (50 ppm). 5. Mining I ndustry in t he Murmansk Region The mining ind ustry accounts for about 40% of all industrial output in t he Murmansk Region . The region produces 100% of Russian apatite and brazilite, 45% of nickel , 35% of nepheline and 9 % of its iron ore (VSEGEI, 2012) . There are no fossil fuel deposits in the region. The mining industry is by far the largest industrial consumer of diesel in t he Murmansk Region . According to the Murmansk Statistical Service , diesel consumption in the region was 392,000 tons (MSS, 2013) . Mines consumed 139,000 tons of diesel, while on – road transport used 65,100 tons (based on bottom up calculations) and locomotives 21,200 tons (Evans, 2015) . According to official statistical data, mining companies in the region consumed 139,000 tons of diesel in 2012. The largest mines in t he Murmansk Region are Joint Stock Company Apatite , Kovdorsky GOK, Olenegorsky GOK and Kolskaya GMK. Table 2 shows diesel consumption. Table 2 . Diesel fuel consumption by largest mines in t he Murmansk Region , tons Mine 2010 2011 2012 Apatite 65 , 954 67 , 509 64 , 469 Kovdorskiy GOK 35 , 277 42 , 262 47 , 395 Olenegorskiy GOK 16 , 635 18 , 661 21 , 233 Kolskaya GMK 5,766 9,786 5,457 Sources: Apatit e – http://www.e – , Kovdorsky GOK – http://www.e – , Olenegorsky GOK – http://www.e – , Kolskaya GMK – http://www.e – ,

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11 The Belo rus s ian automaker BELAZ supplies the majority of the largest trucks, i.e., those with a payload capacity of 130 – 136 tons. BELAZ trucks are equipped with Cummins engines (QSK 19 – , QST 30 – C, QSK45 – C and KTA 38 – C , KTA 50C engines with mechanical transmission ) and MTU or Detroit Diesel engines . Appendix 1 shows technical characteristics of BELAZ trucks. BELAZ tru cks still constitute 70% of the Russian mining fleet (Petrovich et al., 2013) . BELAZ trucks have diesel engines with a 780 to 1,200 kW power output. The most popular model of BELAZ trucks used in the mining industry is the BELAZ – 75131 , which has a payload of 130 – 136 tons and is equipped with Cummins KTA 50 – C engines. The biggest advantage of BELAZ truck s is that they are significantly less expensive than their competit ors. BELAZ was the only producer of large haul trucks in the Soviet Union and has been supplying trucks for decades to open pit mines in Russia and other post – Soviet countries. Recently, mining companies in Russia have been purchasing more foreign – made trucks, and mines have been gradua lly replacing the older BELAZ models with Caterpillar, Unit Rig and Komatsu trucks ( Appendix 1 ). However, the share of BELAZ is still higher than 50%. The turnover rate of equipment and machinery in the mining industry in t he Murmansk Region was 15.9% in 20 12 (Statistical Yearbook, 2012) . Mining trucks operate for well over 6, 0 00 hours per year (Mining Magazine, 2007) . Trucks typically work in three operating modes: driving with full load, empty and idling. The time distribution between these three modes depends on the characteristics of particular mines (depth, haul – road grade, distance travelled, etc.). For example, t he average ratio for the load/empty/idling modes at the Eastern mine of Apatit e Company is 32:28:40 (Nikitin, 2012) . The time distribution is important for specific diesel consumption, an d as a result, for emissions. There are no official data on the number of mining trucks in t he Murmansk Region . Using information from individual mines, we estimated that there are no less than 250 mining trucks. Several mines have been exp a nding their operations in the region. As a result, the number of mining trucks is projected to increas e in the near future. Mines also operate a large variety of diesel equipment including trucks, excavators, bulldozers, drilling rigs, supplementary machi nery and on – road vehicles. The common feature of all of them is that Russia does not have emission regulation s for off – road vehicles and manufacturers can supply all range of equipment from Tier 0 (unregulated) to Tier 2 . W e did not find any evidence tha t Tier 4 equipment exists in t he Murmansk Region . Moreover, the Tier 4 standard does not cover equipment with engines over 560 kW ; the European countries have not regulated emissions from these engines yet. As a result, we analyzed emissions only from unre gulated engines, Tier 1 and Tier 2 engines.

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