Enabling Wind, Solar, and Biofuel Energy using HydrogenPresented at National Hydrogen Association Conference, May 4, 2010
FuelCell Energy, Inc.NASDAQ: FCEL
Fred C. JahnkeSenior Manager, Hydrogen Programs
Pinakin PatelDirector of Special Systems and Research
Safe Harbor Statement
This presentation contains forward-looking statements, including statements regarding the company's plans and expectations regarding the development and commercialization of fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statements are based.
Overview
•Opportunity in renewable Energy– Wind, Solar need energy storage
•Hydrogen as Energy Storage– Renewable Hydrogen from biomass and wind
•FuelCell Energy DFC-H2 Technology– synergy with other technologies
•Opportunities for hydrogen community
Renewable Power
http://en.wikipedia.org/wiki/Renewable_energy_in_the_United_States
Ter
aWat
t-h
ou
rs /
yr
Santa Barbara, Californiahttp://www.cecsb.org/index.php?option=com_content&task=view&id=61&Itemid=100&gclid=CIHo9MaimJ0CFUdM5QodLVRm2Q
First, it is generally the most economical source of renewable energy, competitive with and sometimes cheaper than electricity from fossil fuels and nuclear power. Good sites can produce wind power at eight to ten cents per kilowatt-hour (kWh) – even less when the federal tax credit is factored in. (By comparison, the cost of electricity from a new natural gas plant in California is ten to eleven cents per kWh.) Wind power is expected to become even more cost-effective as the industry develops larger turbines and the price of fossil fuels continues to rise, as it surely will in the long-term.
Second, we have enormous potential for wind power in this region. For example, the 97.5 megawatt (MW) wind farm recently approved near Lompoc could supply 285 gigawatt hours (GWh) a year -- about a tenth of our county’s current demand for electricity. In Santa Barbara County, wind power potential is much, much greater. Professor Dan Kammen -- chairman of UC Berkeley’s Energy Resources Group – and his graduate students, in a study performed for CEC, found potential for nearly 3,800 GWh of wind at onshore sites in the county. When adding the potential from offshore sites and small wind turbines, Kammen calculated a potential of 290,000 GWh. In other words, wind power in our region could theoretically produce over 100 times our current demand for electricity.
Wind Power is the Opportunity
• Wind Power is now rapidly expanding
New wind projects completed in 2008 account for about 42% of the entire new capacity added in the U.S. during the year, 8,800 MW of Powerhttp://en.wikipedia.org/wiki/Wind_power_in_the_United_States
Santa Barbara, Californiahttp://www.cecsb.org/index.php?option=com_content&task=view&id=61&Itemid=100&gclid=CIHo9MaimJ0CFUdM5QodLVRm2Q
First, it is generally the most economical source of renewable energy, competitive with and sometimes cheaper than electricity from fossil fuels and nuclear power. Good sites can produce wind power at eight to ten cents per kilowatt-hour (kWh) – even less when the federal tax credit is factored in. (By comparison, the cost of electricity from a new natural gas plant in California is ten to eleven cents per kWh.) Wind power is expected to become even more cost-effective as the industry develops larger turbines and the price of fossil fuels continues to rise, as it surely will in the long-term.
Second, we have enormous potential for wind power in this region. For example, the 97.5 megawatt (MW) wind farm recently approved near Lompoc could supply 285 gigawatt hours (GWh) a year -- about a tenth of our county’s current demand for electricity. In Santa Barbara County, wind power potential is much, much greater. Professor Dan Kammen -- chairman of UC Berkeley’s Energy Resources Group – and his graduate students, in a study performed for CEC, found potential for nearly 3,800 GWh of wind at onshore sites in the county. When adding the potential from offshore sites and small wind turbines, Kammen calculated a potential of 290,000 GWh. In other words, wind power in our region could theoretically produce over 100 times our current demand for electricity.
November 13, 2008, 2:32 pm
http://greeninc.blogs.nytimes.com/2008/11/13/texas-adjusts-its-grid-for-wind/
Texas Adjusts Its Grid for WindBy Kate Galbraith NYTimes Blogs“The major problem with wind as a power source is that it doesn’t blow all the time. To remedy that, Texas is spending $30 million a year to bolster its back-up power, in a change to the electricity grid that began on Nov. 1.”
Wind Power is Soft Energy
http://knowledgeproblem.com/2008/02/29/meanwhile_in_te/
Operators of the Texas power grid scrambled Tuesday night to keep the lights on after a sudden drop in wind
power threatened to cause rolling blackouts
• Wind can create havoc on grid – Texas has experienced near misses
• Wind Power is now rapidly expanding
GRID
Load Following Fuel Cell
Hydrogen Storage
Wind Power
Hydrogen Provides Hard Power Backup to Wind
Hydrogen & Wind Power
Even just 20% of new USA wind power backup (1,800 MW), requires 2,500,000 kg/day of H2
Potential Sources of Hydrogen
Source Advantages1. Electrolyzer Can be used to load level wind power
(effective use of excess power) H2 and oxygen available (at up to 200 psi )
2. Pipeline No storage needed Potentially low cost by-product H2
3. LP Gasifier Can be biomass fed
4. High Pressure Coal Gasification
Commercially demonstrated High pressure H2 easily stored Low cost fuel source
5. High Pressure Gasification with CO2 Sequestration
High pressure H2 easily stored Low cost fuel source Low CO2 emissions
6. DFC-H2®
Renewable Fuels
Distributed hydrogen generation Improves overall power generation efficiency Sub-megawatt DFC-H2® demonstration in progress
FCE Confidential and Proprietary
Co-Production of Renewable Hydrogen in California
SMART GRID
Load Following Fuel Cell
Hydrogen Storage
Base Load Fuel Cell
Co-Produced Hydrogen
Hydrogen Storage
Peak Power Generation using DFC-H2® + Low Temperature Fuel Cell
BioGas fuel (ADG) for Renewable Hydrogen
• Over 60+ units globally, 450+ million kWh produced
• Fuel Flexible – Natural Gas, Biogas, Propane
Engines
Direct FuelCell®
0.1 1 10 100 1000
10
30
50
70
EF
FIC
IEN
CY,
%(L
HV
)
Gas Turbines
Combined
Cycle
0.01
Microturbines
SYSTEM SIZE (MW)
PA/PEM FC
AverageU.S.Fossil FuelPlant = 33%
Coal/
Steam
DFC-H2/PEM Peaker
High Efficiency for Peak Power Generation
Co-product
Co-Production Capacity of DFC-H2 Power Plants
DFC300Ò DFC1500Ò DFC3000Ò
2,4001,200300Fuel Cell Cars, 0.5 kg/day
Refueling Capacity
4.02.00.5Heat, mmBtu/hr
1,000500125Hydrogen, kg/day
2,0001,000250Power, kW
4,0002,000500Peak Power (8 hrs/day), kw
Peaker Capacity
SMART GRID
Load Following Fuel Cell
Base Load Fuel Cell
Co-Produced Hydrogen
Hydrogen Storage
Wind Power
Electrolyzer
DFC-H2® Peaker compliments Smart Grid
Wind Power Integration Benefits
BioGas fuel (ADG) for Renewable Hydrogen
Biomass Required to Meet Liquid BioFuel Goal
0
200
400
600
800
1,000
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Goal (15 billion gal/yr)
mm
lb
/day
Bio
mas
s
20% of biomass to biofuel
40% of biomass to biofuel
H2 Needs for backup.xls
Biomass Opportunity
Potential Hydrogen from Waste Biomass
0
5
10
15
20
25
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Goal (15 billion gal/yr)
mm
kg
/day
Hyd
rog
en
20% of biomass to biofuel
40% of biomass to biofuel
Biomass Opportunity
Peaker H2 Demand
Renewable Energy Portfolio
Challenge
Biomass Challenges
Biomass Source of CO2 for high density energy crops
Waste biomass needs higher value-proposition
Cost of conversion to liquid biofuels is high
Integrated Biomass Liquid Fuel Production
Biomass Processing Gasification DFC-H2® UnitCO2, CH4 Power
High Level Heat
Low Level Heat
Hydrogen
Clean CO2 (Cathode exhaust, Low O2, Higher N2)
Optional other waste biomass
Low Level Heat
Biomass Growing
(such as Algae)
Liquid Biofuel
EHS System
Bio Hydrogen
Bio RefiningCrude Bio oil
Clean CO2 Increases Biomass Production
H2, CO, CO2, CH4
Processing Waste
Electrochemical Hydrogen Separator
Development
Technology Scale-up
~50% Reduction in Energy Consumption
Baseline
Advanced
2004 2005 2006 2007 2008 2009 2010
25 cm2 cell
300-cm2 cell
300-cm2
25-cell stack(CCEF Program)
1000-cm2
6-cell stack
1000-cm2
100-cell stack
1000cm2
EHS Stack
with tolerance to 5,000 ppm
CO
MO3240b50 cm2 Cell
600 cm2
3-Cell Stack
600 cm2
24-Cell Stack
1000cm2 EHS Stack with
tolerance to 10 ppm CO
2004 2005 2006 2007 2008 2009 2010
25 cm2 cell
300-cm2 cell
300-cm2
25-cell stack(CCEF Program)
1000-cm2
6-cell stack
1000-cm2
100-cell stack
1000cm2
EHS Stack
with tolerance to 5,000 ppm
CO
MO3240b50 cm2 Cell
600 cm2
3-Cell Stack
600 cm2
24-Cell Stack
1000cm2 EHS Stack with
tolerance to 10 ppm CO
FuelCell Energy Business Confidential Information
H2 Separation
Biomass
Wind
Solar
Conversion
Intermittent Power
Intermittent, Day Only Power
Liquid Fuels
Gaseous Fuels /H2 Mix
H2 Separation
H2 Storage
LTFC
Reliable, Load Following Power
Gaseous Fuel HTFC
Reliable, Base Load Power
Transportation Fuels
Load Following
Power
Electrolysis
HTFC = High Temperature Fuel CellLTFC = Low Temperature Fuel Cell
High Wind, Excess Power
~5-10%
~90-95%
DFC-H2®
Soft Power converted to Hard Power
Renewable Energy Source
Reliable, Load Following, Fully
Renewable Power
H2 Enables Use of Renewable Energy
NHA Members to Implement
Team Effort Needed to Move Forward
Thank you
Questions?
Fred C. JahnkeSenior Manager, Hydrogen Projects
fjahnke @ fce.com203-825-6108