Cummins Inc.’s new energy business is getting a new name as the company looks to highlight its portfolio of zero-emission technologies and its strategy to remain competitive during the energy transition.
The Columbus-based company announced Wednesday that its new energy business unit will now be called Columbus Accelera. The rebranding, which includes the logo and color scheme, is meant to “shine a bright light” on the business unit’s current products and “reinforce our strong position in the market for zero emissions solutions in the future.” Officials of the organization said.
Cummins President and CEO Jennifer Ramsey announced the new name Wednesday at an event at the Rubel Museum in Washington, D.C. Ramsey will lead the new energy business beginning in 2020 and Amy Davis will serve as president of Accelera.
The rebranded business unit Accelera includes Cummins’ electrified power and hydrogen portfolio and represents the majority of its efforts in technologies aimed at curbing greenhouse gas emissions.
The business unit, 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,” Rumsey said Wednesday during the event. “What people may not realize is that today we have a leadership position and built capacity in these zero-emission technologies. It’s time to be recognized as a provider of engine solutions and zero-emission solutions for commercial and industrial applications.”
The launch of the Accelera is the latest effort by Cummins to position itself as a leader in zero-emission technologies and secure its place in a world where the company’s engines are moving away from fossil fuels.
Documents with the U.S. Patent and Trademark Office suggest Cummins may have been considering the move for at least a year. The company trademarked Accelera in March 2022, federal records show. Cummins made several filings related to Aclera last January.
Since adding Cummins as the company’s fifth division in early 2018, the business unit has undergone two name changes. Originally, the division was called “Electrified Power,” which sought to design, manufacture, sell, and support all-electric power systems. to hybrid”, according to the company’s first quarter 2018 report.
In the year In 2019, former Cummins Chairman and CEO Tom Linebarger announced that the segment was being renamed “New Energy” after the company added hydrogen fuel cells and hydrogen generation to its portfolio.
The business segment currently accounts for a small percentage of Cummins’ total revenue, although the segment’s earnings before interest and taxes are growing, according to the U.S. Securities and Exchange Commission.
Last year, the new energy business reported sales of $198 million, up from $116 million in 2020 and $72 million previously, according to the company’s annual reports. And company officials said they expect the business unit’s revenue to grow in the coming years.
Rumsey said Wednesday that the company’s Accelera will generate $350 million to $400 million in revenue. Last year, company officials announced an annual revenue goal for the business of $6 billion to $13 billion by the end of the decade.
We’re investing heavily and building our new energy business… and we really feel it’s time to launch Accelera by Cummins at this point to shine a bright light on what we have now and what we plan to do. Take in the market for zero-emission solutions for the future,” Ramsey told The Republic. “…I think we’re known for motor-based solutions. Launching Accelera by Cummins will further clarify our position in this zero emission technologies market.
The announcement comes as the diesel industry finds itself at a crossroads, with the growing viability of alternative fuel technologies and the threat of catastrophic climate change changing how companies and policymakers think about energy consumption.
Diesel fuel is refined from crude oil and is used to fuel compression engines named after its inventor, Rudolph Diesel, according to the US Department of Energy.
Most freight and delivery trucks, buses, farm and construction vehicles, and some cars and pickup trucks use diesel engines, according to the US Energy Information Administration.
But this is expected to change in the coming decades, as the industry accelerates the adoption of more environmentally friendly fuel types and energy sources, including, among others, battery electricity, hydrogen and natural gas engines.
How the transition works and how it works for a city like Columbus and its economy based on automotive manufacturing could have huge implications for the industry as a whole.
Last year, Cummins outlined its long-term growth strategy, with company officials describing the energy transition as a “growth opportunity” for Columbus’ largest employer.
The strategy will primarily involve investing in and developing technology that company officials believe will play a key role in the path to zero emissions, including a wide range of clean diesel and other low-emissions technologies, company officials said.
The company announced Wednesday that it has invested more than $1.5 billion in research and technology, capital and acquisitions over the past several years to build Accelera’s leadership and technology capabilities.
The business unit is currently in the early stages of commercializing these technologies, with efforts focused primarily on the development of electrolyzers for hydrogen production and electric power systems and related components and subsystems, according to the company’s 2022 annual report.
Electrolytes use electricity to split water molecules into hydrogen and oxygen. Then the hydrogen can be used to generate energy.
“We have ambitions to grow this business significantly, and this (new brand) gives us an opportunity to go into areas like electrolysers, because we’ve historically been in the transportation and mobility space, where we don’t recognize Cummins as a player,” Srikanth Padmanabhan, president of Cummins’ engine business, told The Republic. It’s not only in the area of transportation and mobility, but it’s also in the area of electrolysis.”
Wednesday’s announcement was not the first time Cummins has rebranded part or all of its business. In the year In 2001, the company was originally named Cummins Engine Co. The company used to call itself Cummins Inc. “Cummins has recognized that it is more than an engine company,” former Cummins chairman and CEO Tim Solso told The Republic at the time. turn into.
Ramsey, for her part, said Cummins has a “very broad” portfolio of zero-emissions technologies — and she expects that footprint to continue to grow.
“Currently, we have more than 500 battery electric generators in commercial vehicle applications. We have more than 2,000 fuel cells operating in various applications — cars, trains, boats — (and) 600 electrolyzers. So, Cummins already has a very broad portfolio of zero-emission technologies. It has a footprint, and it’s growing,” Ramsey said.