To reduce the NoX production to acheive EU5, combustion temps have to be reduced. To do this some exhaust gas is fed back into the engine via the EGR valve and the engine is set to run rich. By reducing the oxygen and and lowering the temperature less NoX (oxides of nitrogen) is formed. The exact process I don't know but that is the basics. I work more with heavy machinery and as emission laws have tightened fuel usage has increased.
The other way to do it is like Mercedes are trying is to after treat the exhaust with eurea, commonly know as 'add blue' in the uk but that leads to other problems with after treatment cats.
From what I understand from the chipping industry they reduce many of the negative efficency reducing requirements of achieving EU5 giving more power and using less fuel.
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