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A portion of CAT's business is in the manufacturing of diesel and natural gas engines and gas turbines which, in addition to their use in the company's own vehicles, are used as the prime movers in locomotives, semi trucks, marine vessels and ships, as well as providing the power source for peak-load power plants and emergency generators.

In 2004, the company introduced with ACERT diesel engines that exceed federal guidelines for emission standards. In 2007, Caterpillar released a second generation of ACERT to meet even stricter standards.