COPYRIGHT © 2010 BALLARD POWER SYSTEMS INC. ALL RIGHTS RESERVED
B A L L A R D P O W E R S Y S T E M S
PUTTING FUEL CELLS TO WORK
NOVEMBER 2010
Utilizing Renewable Energy Resources for Distributed Generation
Michael GoldsteinVP & Chief Commercial Officer
NOVEMBER 2010 P A G E 2
Fuel cells have unique ability to provide base load power, power regulation, or load cycle as required to meet the demands of distributed generation
Application of Fuel Cells in Smart Grid
Source: EPRI
chemical plant utility
wind
PV
fuel cell
micro CHP
commercial building
industrial complex
hybrid
fuel cell
fuel cell
turbine
NOVEMBER 2010 P A G E 3
Fuel Cell Attributes Ideal for Distributed Generation
Fuel Cell Applications in BC’s Energy Mix:
Base load power from by-product hydrogen
Remote community electrification
Peaking power applications
Combined heat & power from natural gas
Key Drivers of Fuel Cell Adoption:
By-product hydrogen
High efficiency
Dispatchability
Lower transmission cost
NOVEMBER 2010 P A G E 4
Key Driver #1: By-Product Hydrogen Availability
~1,000 MW of by-product hydrogen available globally
Sufficient to power ~800k-1M homes for a year
Often vented or combusted for heat
Low-cost fuel for electricity production through fuel cell system
Sources:
Chlorine production
Sodium chloride production
Petrochemical refineries
Production of acetylene, ethylene & styrene
NOVEMBER 2010 P A G E 5
Key Driver #2: High Efficiency Operation
Combined efficiency of 40% to 80%
fuel
heat
fully dispatchable
electricity
utility
point of use
NOVEMBER 2010 P A G E 6
Key Driver #3: Dispatchability
solar
wind
Problem: Renewable energy & demand for electricity (load) do not coincide
electrolyser
hydrogen storage
CLEARgen™
Solution: Energy storage with fuel cell system
tidal
fully dispatchable electricity
NOVEMBER 2010 P A G E 7
Key Driver #4: Reliability & Cost of Transmission Infrastructure
Lower Transmission Cost:
Locate generator close to load
Reduce transmission losses
Reduced infrastructure costs
Increased security, grid reliability
NOVEMBER 2010 P A G E 8
Example #1: By-Product Hydrogen Generator
Fuel cell system to offset power requirements at K2 Pure Solutions’ Californian bleach plant
Benefits:
Offset power demand on site
Sell excess electricity to utility
Zero GHG emissions
48% efficiency
15-20% IRR possible
Enablers:
Capital grant (SGIP)
Low cost fuel
Net metering
NOVEMBER 2010 P A G E 9
Example #2: Remote Community Electrification
Renewable power for remote, off-grid communities to displace diesel generators
>300 communities across Canada isolated from grid, ~3,000 worldwide
Benefits:
Reduces/eliminates reliance on diesel
Low noise
No transmission losses
Dispatchable
Zero GHG emissions
BC Hydro's Hydrogen-Assisted Renewable Power (HARP) initiative
Bella Coola demonstration project
Enablers:
Capital purchase incentives
Clean energy mandates
NOVEMBER 2010 P A G E 10
Fuel Cell Success Will Be Policy Driven
Volume will come through:
Clean energy mandates (RPS, Clean Energy Act)
Feed-in tariffs
Capital purchase incentives
Net metering programs
Canadian value proposition
Local, high-value jobs
Retain fuel cell leadership
Global export markets
Clean, green energy
‘Levelized Cost of Energy’ ~$0.06-$0.13/kWhr
(reflecting US Federal and California state incentives)
2007 2008 2009 2010 2020
USD
/stack
Product Cost Reduction
volume driven
~45% to date