Southeastern Air & Waste Management Association Conference

1. Stationary Fuel Cells: Power Generation Applications for Industry and Government Tom Militello, Executive Director FuelCellSouth Partners Forum, Inc. Southeastern Air & Waste Management Association Conference Sea Palms Resort

2. FuelCellSouth Partners Forum, Inc. Mission Fostering Awareness and Creating Market Opportunities for Fuel Cell Industry Growth • Programs • - Southeastern Hydrogen and Fuel Cell Conference • - Crystal Flame Innovation Awards • - Quarterly Partners Forums • Webcasts and Newsletters • Business and Economic Development Sea Palms Resort

3. Background • FuelCellSouth was officially founded in May 2003, starting with South Carolina companies, researchers and entrepreneurs. • In 2004 we added participation from Georgia and North Carolina; held our inaugural FuelCellSouth Conference. • From 2005-2007 we have broadened our reach by: • Organizing as a 501 (c) (6) non-profit corporation • Expanding to serve twelve (12) Southeastern States • Launching Quarterly FCS Partners Forums • Offering a bimonthly newsletter • Conducting FuelCellSouth Seminars • Researching Opportunities for Sponsored Demonstration Programs • In 2008 – 2010 we will grow to include representation and events in Texas, Oklahoma, Missouri, West Virginia, Maryland and Delaware. Sea Palms Resort

4. The Chemistry Regional End User Markets e- e- State & Federal Support Industry Support H+ H+ Research National and Regional Special Interest Groups H+ H+ * FuelCellSouth Partners Forum *A catalyst like FuelCellSouth is needed to make the reactions go! Sea Palms Resort

5. Industrial / Research Advisory* Swagelok BellSouth Oak Ridge National Lab U.S. Department of Energy LOGAN Energy Plug Power Fuel Cell Energy Clemson ICAR NC State College of Textiles MPT University of South Carolina Showa Denko Carbon Finnish Chemicals Savannah River National Lab Columbian Chemicals Sequentus Fuji Center for Hydrogen Research Concurrent Technologies Corp. NSF Center for Fuel Cell Research North Carolina Advanced Vehicle Research Center Sea Palms Resort

6. Targeted Industries • Oil & Chemical • Utilities – Electrical, Gas, Telephony, Water • Manufacturing • Healthcare • Hospitality / Hotels • Education (Public & Private) • Government Sea Palms Resort

7. Researches Region for Special Projects of Interest Advise Executive Committee on Projects & Funding. Develops, Delivers and Manages Programs / Projects Supports and Participates in National / International Conferences and Market Education Events. Develops and Delivers Quarterly FuelCellSouth Partners Forums and Annual Conference. Process, Programs & Project Teams Sea Palms Resort

8. Fuel Cell Basics • Fuel Cell Basics • The Chemistry • The Components • Fuel Cell Technologies • Proton Exchange Membrane (PEM) • Molten Carbonate (MCFC) • Phosphoric Acid (PAFC) • Solid Oxide (SOFC) • Direct Methanol (DMFC) Sea Palms Resort

9. Anode: H2 = 2H+ + 2e- Cathode: O2 (Air) + 2H+ + 2e- = H2O Electric Circuit e- e- Anode (negative side) Cathode (positive side) Electrode H2 H+ O2 H+ H+ H+ Catalyst H2O The Chemistry *A catalyst like Platinum is needed to make the reactions go! Sea Palms Resort

10. Fuel Cell Technologies • Proton Exchange Membrane (PEM) • Molten Carbonate (MCFC) • Phosphoric Acid (PAFC) • Solid Oxide (SOFC) • Direct Methanol (DMFC) Sea Palms Resort

11. Named for their electrolyte Proton Exchange Membrane Like a battery, but supplied with external fuel Generally use hydrogen from a reformer converting: Natural Gas, Propane or Methanol Products are: DC Power Heat Water Power: 1 to 100 kW PEM Fuel Cells Idatech PEM Fuel Cell Stack Sea Palms Resort

12. Named for their electrolyte Molten alkali carbonate mixture (Molten carbonate salt that becomes a liquid and a good ionic conductor.) Operate at a temperature of about 650 degrees Centigrade. Produces heat and water vapor Fuel is typically Reformed Natural Gas Utilized for Large-scale power generation (> 250 to 2,000 kW) Heat Water Molten Carbonate Fuel Cells (MCFC) Photo Credit: American Society of Mechanical Engineers. Sea Palms Resort

13. Phosphoric Acid Fuel Cell (PAFC) • Named for their electrolyte • phosphoric acid • Able to reform methane or industrial waste gases to a hydrogen rich gas with the waste heat from the fuel cell stack. • Heat may be used for heating or hot water. • Scale – a few kilowatts to several megawatts. Photo Credit: HydroGEN LLC Sea Palms Resort

14. Solid Oxide Fuel Cell (SOFC) • Uses yttria-stabalized zirconia as its electrolyte. • Runs at a temperature of around 1000 degrees centigrade. • Three Designs for SOFCs • Tubular, Planar and Monolithic • Produces heat for use in cogeneration applications or steam turbines to produce electricity. • Fuel Sources: • Pure Hydrogen • Methane • Carbon Monoxide Photo Courtesy of Siemens Westinghouse. Sea Palms Resort

15. Direct Methanol Fuel Cell (DMFC) • Based on Solid Polymer Technology that uses methanol directly as the fuel. • Benefits –reduces the need for storage or generation of hydrogen. • Prototype products exist, but research and development is still early stage. Toshiba 100 milliwatts embedded DMFC Sea Palms Resort

16. Types of Fuel Cells Portable Sea Palms Resort

17. Types of Fuel Cells Transportable Sea Palms Resort

18. Types of Fuel Cells Stationary Sea Palms Resort

19. Types of Fuel Cells Transportation Sea Palms Resort

20. 2005 Sea Palms Resort

21. Fuel Cell Implementations:Backup & Distributed Power Solutions Commercial Power Residential / Small Business Source: Ballard Fuel Cell Power Plug Power, Inc. Sea Palms Resort

22. What is Distributed Generation? Distributed generation is a concept where smaller, highly efficient power plants are installed along the existing grid, close to the end-user customer. It is similar in concept to the move from large central computers to desktop computers on a network. Sea Palms Resort

23. Why is Distributed Generation Occurring? • There are localized shortages of electricity in this country, particularly in California and the Northeast. The ability to quickly build power plants to provide needed power is attractive. • It is getting increasingly difficult to site new power plants near population centers due to air quality concerns. • Deregulation is opening up new markets and new players on those markets, all of whom are looking for tools that will make them as competitive as possible. • National Security Sea Palms Resort

24. Distributed Generation in the Southeast? • Electricity in the Southeast is relatively inexpensive, but recognized as being less clean then alternative energy sources. Distributed Fuel Cells are one potential source for clean power, but not cost competitive today with fossil fuel plants. • Today, renewable energy implementations are relatively few in the Southeast, but do exist… utilizing landfills and reciprocating engines… participating in the Green Power Program. e.g. Santee Cooper - Horry County Landfill Anderson County Landfill Sea Palms Resort

25. Distributed Generation in the Southeast? • We need more reliable power alternatives for business and mission critical environments. Power security and inclement weather (ice, wind, thunder & lightning, etc.) present economic and security threats to our region. • The Southeast has many feed stocks for biomass and large-scale wastewater management facilities upon which to leverage for green power. These environments present opportunities for research, demonstration, public awareness and ultimately lower cost implementations. Sea Palms Resort

26. Distributed GenerationFuel Cell Economics US DoE, EPA, DoD, State and Private Programs Economics Work in High Energy Cost Regions… e.g. Northeast, California, Arizona, Japan, etc. Source: Fuel Cell Energy, Inc. Sea Palms Resort

27. Power Generation South Carolina Power Sources Source: Green Power Alliance The Southeast is predominately a nuclear / fossil fuel powered region – our power is relatively inexpensive… Sea Palms Resort

28. Power EconomicsLocalSituational Analysis Note: Data obtained from the Energy Information Administration and Platts' POWERdat database Sea Palms Resort

29. Emissions Criteria Pounds of emissions per 1,000 kW hours of NOx, CO, Sox, Hydrocarbons, Particulates Average US Fossil Fuel Plant 24.09 Micro-turbine 1.2 Combined Cycle Gas Turbine 0.6 Fuel Cell (Molten Carbonate/DFC) 0.04 Source: http://www.eere.energy.gov/ Sea Palms Resort

30. National Security • Growing Concern about Power Security • Reliability of National Grid (Blackouts) • Vulnerability of National and Regional Grid, in particular Generation and Transmission Facilities. • Business Operations are vulnerable to power availability fluctuations due to weather and local load factors. • Not just a big business concern anymore… an “Internet connected society” needs reliable power… in the home, in the office – 7 x 24. Sea Palms Resort

31. Distributed Generation Scenarios End-User • Remote Generation (on or off grid) • Export to System Side (sell the excess power back to the utility) • Backup Generation (replacement of diesel generators) System Side • Energy and Capacity (e.g. green power program) • Ancillary Services (in support of distributed generation) • Local Reliability Generation Services (in mission critical areas, e.g. hospitals). Sea Palms Resort

32. End User Scenarios – Remote Generation On Grid - Residential • Generate power locally and feed back unused power to the local utility. • Feed Stock: Natural Gas • Contains an on-board reformer Utility Company Requirements • Must not compromise system reliability. • Create or extend an outage. • Decrease the life of or damage equipment. • Reduce reliability to other customers. • Must not shift costs to other customers. • Safety concerns • Back feed onto the grid. 5 kW Unit with combined Heat and Power • Single Phase 110/208 VAC • 22,000 BtuH 135 Deg F Source: Logan Energy Sea Palms Resort

33. On Grid - Commercial • Generate power locally and feed back unused power to the local utility. • Scale: 250 to 2,000 kW • Heat Utilized for HAVC. • Feed Stock: Natural Gas, Methane (no onboard reformer required). 250-kilowatt MCFC fuel cell power plant Higher fuel efficiency than micro-turbines, turbines, reciprocating engines and low temp fuel cells. Source: FuelCell Energy, Inc. Sea Palms Resort

34. Source: FuelCell Energy, Inc. Note: similar models could apply for future Phosphoric Acid Fuel Cells Sea Palms Resort

35. Sample Direct Fuel Cell Implementations • Coast Guard • University • City Municipal Power • Manufacturing • Hotel • Hospital • Wastewater Treatment Facility Sea Palms Resort

36. Typical Project Goals • Grid Independence • Environmentally Friendlier Power • High Quality Power • Reliable Emergency Power • Cost Effectiveness Sea Palms Resort

37. Sample Funding Sources Mass. Coast Guard Implementation • Sponsor Programs (1.07 million) • DOE program (250K) • State Technology Fund (406K) • Partner Energy Company ($100K) • Total Contract $1.83 million Source: Mass Coast Guard. Sea Palms Resort

38. Budget Mass. Coast Guard Implementation Cost Breakdown • Fuel Cell $1,250 K • Heat Recovery Unit $150K • Engineering / Project Management $143K • Site Preparation $100K • Installation / Start-up $66K • Interconnect $60K • Modifications $66K (Mod. Rate: 4%) Source: Mass Coast Guard. Sea Palms Resort

39. Utility Company Interface • Typical Requirements • Single line diagram • Load flow study • Loss of phase protection • Loss of power sequencing • Certification protocol • Testing protocol • Determine the appropriate utility interface • Customer representative • Distribution engineer • Substation engineer • Involve them in the project from the beginning • The utility focus will be on safety, reliability and cost allocation Commercial and Residential Implementations Alike Sea Palms Resort

40. Project Scope Mass. Coast Guard Implementation • Engineering & Design • Design Review • Final Design • Site Preparation (slab, piping, etc) • Fuel Cell Configured, Tested and Delivered • Installation & Start Up • Acceptance Test • Fuel Cell Online 60 days 2 days 15 days 30 days 15 days 10 days 15 days 2 days 149 days Note: a program delay set back the project almost ½ year… expect the unexpected to occur. Source: Mass Coast Guard. Sea Palms Resort

41. Long Island Power Authority… Sea Palms Resort

42. or City of Westerville, Ohio • "The 250-kilowatt (kW) DFC power plant creates the hydrogen it needs from a readily available fuel, natural gas. The unit is manufactured by FuelCell Energy and distributed by Caterpillar through its dealer Ohio Cat. • The fuel cell power plant is located at Westerville's electric substation #2, and will produce enough energy to power approximately 180 homes in Westerville. Sea Palms Resort

43. Commercial Installations Food Processing Plant Yale University Sea Palms Resort

44. Hotel and Hospitality Business Starwood began using fuel-cell energy in 2003 at its Parsippany and Edison, N.J., properties, They have cut about 5% from the hotels' energy costs. The DFC300A uses natural gas that is supplied by New Jersey Natural Gas of Wall, N.J. H.T. Lyons, a PPL subsidiary based in Allentown, Pa., was responsible for the installation.The New Jersey Clean Energy Program provided $860,000 in funding to PPL as part of its incentive program to encourage the use of clean and efficient technology. Other Sites: Starwood NYC Sheraton San Diego 4 x 250 kW power plant 1,044 Rooms Sheraton Hotel – Edison NJ Sea Palms Resort

45. Wastewater Treatment Facilities • Industrial and municipal wastewater treatment facilities with anaerobic gas digesters present an important opportunity. • The methane generated from the anaerobic gas digestion process is used as fuel for the fuel cell power plants, which in turn generates the electricity to operate wastewater treatment equipment at the facility. • Wastewater treatment gas is a renewable fuel eligible for government incentive funding for project installations throughout the world. • There are over 550 municipal wastewater treatment facilities in the U.S. that are capable of producing enough methane from anaerobic gas digestion to fuel a 250-kilowatt or larger fuel cell power plant. Sea Palms Resort

46. FuelCell Energy DFC 1500 Power Plant • Using digester gas from King County's South Treatment Plant in Renton, Wash., the Company's DFC1500 power plant provides one megawatt of electricity for the wastewater treatment facility, enough to power 1,000 households. • The electricity generated by the Direct FuelCell (DFC) power plant is used to run some of the treatment plant equipment and the waste heat is used to produce hot water for the treatment facility. Sea Palms Resort

47. Molten Carbonate Fuel CellWastewater Treatment Application Site: Renton, WA ( King County Wastewater Treatment Facility) Project Cost: $22 million, with $12.5 million provided in the form of a grant from the US EPA. Two (2) Year Demonstration Project; 5 years from concept to Go live (including DOE bid) Fuel: digester gas Solution:On Grid Power Generation:1 MW Air Blower & Oxidizer Methane Conditioning Electrical Enclosure Fuel Cell Module Heat Recovery And Stack Source: FuelCell Energy, Inc. Sea Palms Resort

48. Obstacles to Adoption • Low volume production results in high initial capital equipment costs. • Interconnection standards, exit / stand-by charges, net metering. • No clear correlation between spot market natural gas prices and grid-delivered electricity rates, making business unfavorable for distributed generation. • Rate definition process can cause delays or lags in fuel price impact on utility rates. • Government incentive programs can be overly complex. Public and industry awareness of reduced emissions unrecognized… … understanding of risk mitiga- tion from on-grid dependency and overall power security risks not understood or quantified. Sea Palms Resort

49. Questions Sea Palms Resort

50. Contact Us Phone / Fax: 888.481.8433 info@fuelcellsouth.org Sea Palms Resort