Cummins Inc.’s new power business has a new name as the company seeks to emphasize its portfolio of zero-emission technologies and strategies to remain competitive during the energy transition.
The Columbus-based company announced Wednesday that its new power business segment will now be called Accelera by Cummins. The rebranding, including the logo and color scheme, is intended to “shed a bright light” on the products currently offered by the business segment and “the strong position we plan to have in the market for future zero-emission solutions.” doing. A company official said.
Cummins President and CEO Jennifer Rumsey announced the new name during an event at the Rubell Museum in Washington, DC. Rumsey is joined by Amy Davis, president of Accelera, who will lead the new power business beginning in 2020.
Part of the business, which has been renamed Accelera, includes Cummins’ growing electrified power and hydrogen portfolios and represents a number of initiatives to invest in technologies that seek to curb greenhouse gas emissions.
The business segment, which employs about 2,000 people worldwide, will continue to be headquartered in Columbus, company officials said.
“Cummins is well known for our engine solutions,” said Ramsey. “What people may not realize is that today we are a leader in these zero-emission technologies and have really built up our capabilities as an engine solutions provider. , and the time has come for us to be recognized as a zero-emission solution provider for commercial and industrial applications.”
The launch of the Accelera is Cummins’ latest effort to declare itself a leader in zero-emission technology and secure its position in a world that is shifting away from the fossil fuels that the company’s engines have traditionally used.
Cummins may have been considering this transition for at least a year, according to filings with the US Patent and Trademark Office. The company trademarked his Accelera in March 2022, federal records show. Cummins also produced another paperwork related to Accelera this past January.
The business segment has undergone two name changes since Cummins added it as the company’s fifth segment in early 2018. Initially, this segment was called Electrified Power. According to the company’s Q1 2018 report,
In 2019, then-Chairman and CEO of Cummins, Tom Lineberger, announced that the company would rename the segment to New Power after adding hydrogen fuel cells and hydrogen power to its portfolio.
Although the business segment currently represents a small percentage of Cummins’ total revenues, pre-interest and tax revenues in this segment have increased, according to US Securities and Exchange Commission filings.
The company’s annual report said the new power business had revenue of $198 million last year, up from $116 million in 2020 and $72 million the year before. Company officials also said they expect operating segment revenues to continue to grow in the coming years.
Rumsey said the company expects Accelera to generate $350 million to $400 million in revenue. Last year, company executives announced annual revenue targets for the business unit from $6 billion to $13 billion by the end of the decade.
“We’ve been investing heavily and building new power businesses…and at this point we’re launching Cummins Axelera to see what we have now and what we’re going to take. We really feel it’s time to shine a bright light on our strong position in the market for zero-emission solutions for the future,” said Ramsey. “…I think we are well known for our engine-based solutions. Cummins launching his Accelera makes our position in the market for this zero-emission technology even clearer.”
The announcement signals that the diesel industry is now at a crossroads of sorts, as alternative fuel technologies become more viable and concerns about catastrophic climate change continue to change the way companies and policy makers think about energy consumption. Done while standing.
Diesel fuel is refined from crude oil and used as fuel for compression ignition engines, named after its inventor Rudolf Diesel.
Most freight and delivery trucks, buses, agricultural and construction vehicles, and some passenger cars and pickup trucks use diesel engines.
This situation is expected to change in the coming decades, with the industry accelerating toward more environmentally friendly fuel types and power sources, including battery electric, hydrogen and natural gas engines. And so on.
How the transition unfolds could have huge implications for cities like Columbus, whose economies are deeply rooted in auto manufacturing, and for the industry as a whole.
Cummins outlined a long-term growth strategy last year, with company executives describing the energy transition as a “growth opportunity” for Columbus’ largest employer.
According to company officials, the strategy primarily involves investing in and producing technologies that company officials believe will play a key role in the road to zero emissions, such as a range of clean diesel and other low-emission technologies. is said to contain
The company said Wednesday that it has invested more than $1.9 billion in research and technology, capital and acquisitions to build Accelera’s leadership and technology capabilities over the past several years.
According to the company’s 2022 annual report, the business unit is currently in the early stages of commercializing these technologies, primarily for electrolysers for hydrogen production, electrified power systems, and related components and subsystems. Focus on development.
Electrolyzers use electricity to split water molecules into hydrogen and oxygen. Hydrogen can be used for power generation.
“We have ambitions to grow this business significantly and this (new brand) offers an opportunity to enter areas like electrolysers where others may not recognize Cummins as a player. Srikant Padmanabhan, President of Cummins’ Engine Business Unit, said: “This will take Cummins beyond transportation and mobility into electrolyzers. We provide a place to do so.”
Wednesday’s announcement wasn’t the first time Cummins has renamed some or all of its businesses. In 2001, the company, originally called Cummins Engine Co., changed its name to Cummins Inc. “recognizing that Cummins is more than an engine company,” said Cummins’ then-chairman and chief executive. CEO Tim Solso spoke before and after the name change. .
Ramsey said Cummins has a “pretty broad” portfolio of zero-emission technologies and expects its footprint to continue to grow.
“Today, more than 500 battery electric powertrains are in operation in commercial vehicle applications,” she said. “We have over 2,000 of her fuel cells (and) 600 electrolysers operating in a variety of applications such as trucks, trains and boats. So Cummins already has a fairly broad footprint in zero-emission technology. and it’s growing.”