Transcript Fuel Cell Energy PPTJuly 09

FuelCell Energy, Inc.
NASDAQ: FCEL
Jeff Cox
Director of Business
Development, West Region
July 28, 2009
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.
Company
Introduction
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FuelCell Energy (“FCE”) has been delivering
commercial fuel cell power plants in CA since
2003 with our Direct FuelCell® technology
A leading fuel cell technology developer for
over 30 years – over $500 million invested.
HQ in Danbury, CT with state of the art
manufacturing in Torrington, CT with 50 MW
capacity – 100 MW via Automation.
Torrington, CT
Established commercial presence in U.S.,
Canada, Germany, Japan and Korea via
distributor relationships.
Currently the largest manufacturer of
stationary fuel cells using carbonate and solid
oxide technologies.
Danbury, CT
Why Fuel Cells?
C O N V E N T I O N A L P O W E R P L A N TS
FUEL
COMBUSTION
FUEL
STEAM
TURBINE/GENERATOR
ELECTRICITY
COMBUSTION TURBINE/GENERATOR ELECTRICITY
FUEL CELL P O W E R P L A N T
FUEL
DIRECT FUEL CELL
ELECTRICITY
High Electrical
Efficiency
Fuel to Electrical Efficiency
DFC power plants offer the highest efficiency of
available distributed generation technologies
60%
DFC-ERG
DFC/Turbine
58 – 65%
50%
40%
Direct
FuelCell (DFC)
47%
30%
20%
10%
Microturbines
25 – 30%
Small Gas
Turbines
25 –35%
Natural Gas
Engines
30 – 42%
Fuel Cell
Configuration
MATRIX
ANODE
OXIDANT
FUEL
CATHODE
BIPOLAR
PLATE
FCE Products
FCE Products
DFC300
Single Module
300 kW
Single-Stack Module
DFC1500MA
Four 1-Stack
Modules
1.2 MW
DFC1500B
One 4-Stack
Module
1.4 MW
Cell
Package
and Stack
Four-Stack Module
DFC3000
Two 4-Stack
Modules
2.8 MW
FuelCell Energy
Power Plant
Locations
• Over 60 global units
• More than 230 million kWh produced at customer sites
Cost Effectiveness
DFC power plant costs are declining while
the cost of grid power increases
25,000
45
Solar PV 30 to 40
cents/kWh
20,000
35
30
15,000
25
20
10,000
15
10
5,000
5
0
0
1996
2003
2004
2005
2006
2007
2008
2009
2010
DFC Product Cost, $/kW
Unsubsidized DFC Power Cost
Grid Power Costs (CT, commercial rate)
2011
2012
Power Cost, cents/kWh
Powerplant Cost, $/kW
40
California
Market Drivers
• AB 32 passed – strict limits greenhouse gas emissions
• CARB 07 sets tough new standards for NOx emissions
– ALL FCE Products are CARB 07 certified on BOTH Natural Gas AND Biogas
• $80 million + annual incentive program for clean energy
generation projects (Self-Gen Incentive Program)
• $2500/kW for power plants running on natural gas
• $4500/kW for power plants running on biofuel
• 40% of FCE’s total installed capacity
• All FCE products are Rule 21 Certified
– Simplified interconnection
Santa Barbara, California
FCE History in
California
• FCE Evolution in California DG market
• Earliest plants operated by LADWP on natural gas
• Follow-on plants operated on Digester Gas at Palmdale and Santa Barbara
• Currently over 20 projects totaling 12+ MW operating in CA today
40% of existing projects operate on Bio Gas up to 12/07
93% of new projects being installed in ’08 are Bio Gas
• Lessons Learned
• Digesters occasionally take the day off – have natural gas as a backup
• Bio Gas treatment systems require continuous O&M – N.G. backup
• WWTP’s run diesel generator test monthly – install load banks
• CA policy makers favor renewable fuels – be ready to use them all
Biogas Treatment
Issues
FuelCell Biogas treatment requirements vs. Combustion
Bio-Gas Issue
FCE Specs.
Engine Specs.
Turbine Specs.
H2S Removal
Yes – 2 vessels for
average system
Yes – 1 vessel for
average system
Yes – 1 vessel for
average system
Siloxane Removal
Yes – lower
tolerances
Yes – can cause
internal & catalyst
damage
Yes – can cause
internal damage
Halogen, Chlorides,
and Fluorides
Removal
Yes
Optional
Optional
Gas Compression
15 PSI - low
1-40 PSI - medium
>200 PSI- high
Natural Gas backup
Yes Recommended
No
No
Parasitic losses
Medium
Low
High
Early Bio Gas
Fuel Cell Installation
Current Bio Gas
Fuel Cell Installation
Current Biogas Fuel
Cell Installation
City of Riverside – 1 MW Biogas Fuel Cell – Dedicated August, ‘08
Kyoto Eco-Energy
Project (KEEP)
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Fuel is Digester Gas from Food Waste
Part of Mini-Grid with wind turbine, PV, & gas engines connected in parallel to
the local electrical grid
4 DFC300 Plants
Sierra Nevada
Brewery, California
Brewery waste converted to ADG = 1 MW + Steam
First Site with Automated Fuel Blending
DFC1500 1 MW
Plant at King
County, Seattle
Municipal Wastewater Treatment Plant
First Site with On-Line Fuel Switching
2 DCF300 Plants
Santa Barbara, CA
Municipal Wastewater Treatment Plant
Multi-MW Scale
Fuel Cells
2.4 MW Fuel Cell – Pohang, Korea
Multi-MW Scale
Fuel Cells
2.4 MW Fuel Cells – Pohang, Korea
FCE History on
Renewable Gas
Project Name
Date In Service
Total Output
King County, WA
06/2004
1 MW
Kirin Beer (Japan)
09/2003
250 kW
Fukoka (Japan)
01/2004
250 kW
LA County - Palmdale
08/2003
250 kW
Santa Barbara
09/2003
500 kW
Tancheon (Korea)
04/2006
250 kW
Super Eco Town (Japan)
06/2006
250 kW
Sierra Nevada Brewery
05/2005
1 MW
KEEP (Japan)
01/2006
250 kW
Tulare
10/2007
900 kW
Dublin-San Ramon
03/2008
600 kW
Rialto
12/2007
900 kW
Riverside
08/2008
1 MW
Turlock
10/2008
1.2 MW
Moreno Valley
10/2008
750 kW
Gills Onions
10/2008
600 kW
Livermore
Construction
600 kW
Point Loma
Construction
300 kW
San Diego
Construction
1.4 MW
UC San Diego
Construction
2.8 MW
Summary
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Questions?
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Tours available for FCE units in the field
Sheraton Hotel, New York
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Jeff Cox
– Director of Business Development, West Region
– [email protected]
– (760) 741-3970