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 Axelera by Cummins. and “our planned strong position in the market for future zero-emission solutions”. A company official said.
Cummins president and CEO Jennifer Rumsey announced the new name Wednesday at an event at the Rubell Museum in Washington, DC.
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,” Ramsey said at Wednesday’s event. “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. According to the company’s Q1 2018 report,
In 2019, Cummins former Chairman and CEO Tom Linebarger announced that the company would change the name of this 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 Wednesday that 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 have invested heavily and built a new power business … and at this point we are shining a bright light on what we currently have and the strong position we plan to be in. We really feel it’s time to launch Accellera by Cummins to enter the market for zero-emission solutions for the future,” Ramsey told The Republic. “…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. It was done when
According to the U.S. Department of Energy, diesel fuel is refined from crude oil and used as fuel for compression-ignition engines named after inventor Rudolph Diesel.
According to the U.S. Energy Information Administration, most freight and delivery trucks, buses, farm and construction vehicles, and some passenger cars and pickup trucks use diesel engines.
However, this situation is expected to change in the coming decades, with the industry accelerating its shift to greener fuel types and power sources, among them battery electric, hydrogen and natural gas. engine and so on.
How the transition will unfold and could have profound implications for cities like Columbus, whose economies are deeply rooted in auto manufacturing, and the industry as a whole.
Cummins outlined a long-term growth strategy last year, with company management 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 $1.5 billion in research and technology, capital and acquisitions to build Accelera’s leadership and technology capabilities over the past few years.
According to the company’s 2022 annual report, the business segment is currently in the early stages of commercializing these technologies, primarily developing electrolysers for hydrogen production, electrified power systems, and related components and subsystems. is focused on
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]has historically been in the transportation and mobility space, so other people see Cummins as a player. It gives us an opportunity to enter areas like electrolyzers where there is no market,” Srikanth Padmanabhan, president of Cummins’ engine business, told The Republic. “This gives Cummins a foray into the transport and mobility sector as well as the electrolyser sector.”
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 former Cummins chairman and CEO. One Tim Solso told The Republic around the time of the company’s 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. So Cummins already has a fairly broad footprint in zero-emission technology, and it’s growing,” Ramsey said.