Company Update July, Ultra-Clean Efficient Reliable Power

Transcription

1 Cmpany Update July, 2016 Ultra-Clean Efficient Reliable Pwer

2 Safe Harbr Statement This presentatin cntains frward-lking statements, including statements regarding the Cmpany's plans and expectatins regarding the develpment and cmmercializatin f fuel cell technlgy. All frward-lking statements are subject t risks and uncertainties that culd cause actual results t differ materially frm thse prjected. The frward-lking statements speak nly as f the date f this presentatin. The Cmpany expressly disclaims any bligatin r undertaking t release publicly any updates r revisins t any such statements t reflect any change in the Cmpany's expectatins r any change in events, cnditins r circumstances n which any such statements are based. The Cmpany may refer t nn-gaap (generally accepted accunting principles) financial measures in this presentatin. The Cmpany believes that this infrmatin is useful t understanding its perating results and the nging perfrmance f its underlying business. 2

3 Integrated Fuel Cell Cmpany Research & Develpment Glbal fuel cell technlgy platfrm Rbust intellectual prperty prtfli Leveraging cre technlgy t new market pprtunities Sales, Manufacture & Prject Executin Prject develpment Direct Sales Glbal manufacturing (200+ MW capacity glbally) Engineering, Prcurement and Cnstructin Services Operate & Maintain pwer plants 100+ DFC plants perating at 50+ sites glbally Millins f MWh s ultra-clean pwer prduced > 300 MW installed/backlg 2.8 MW pwer plant 15 MW fuel cell park 59 MW fuel cell park 3

4 Glbal Relatinships Nrth America Asia Eurpe Partners Market Develpment / Prject finance Largest IPP in N. America $40 millin prject finance facility t FCE Owns 5% FCEL stck FCE-develped prjects t yieldc Market Develpment Asian Manufacturing Largest IPP in S. Krea POSCO 2015 sales: ~$48 billin Owns 8% FCEL stck License/ryalty fr Asia Asian manufacturing Market Access Leveraging R&D Prviding gv t & industry intrductins Multi-millin Eur R&D prjects Near-term pprtunities in Germany, UK, and Italy Utility & IPP custmers On-site Pwer (behind the meter) CO 2 capture & H 2 4

5 Preferred Resurce Grid supprt with CHP Grid supprt benefitting urban redevelpment University Micr-grid with CHP Fuel cell / Slar integratin 5

6 Slutins that Create Value Preferred Resurces fr Distributed Generatin Emissin reductins w/ Carbn Capture Distributed Hydrgen On-site CHP Utility scale Cal-fired Natural Gas Cmbined cycle plant On-site CHP Transprtatin Industrial $18 billin glbal market ptential Represents market pprtunity fr Equipment & Services in key markets in N. America, W. Eurpe and select Asian cuntries $>25 billin glbal market ptential Represents market pprtunity fr bth Cal and Gas-fired pwer plants assuming nly 1% f existing plants in select glbal markets $7 billin glbal market ptential Represents market pprtunity in key markets fr Equipment & Services fr Industrial & Transprtatin markets, assuming ¼ f 1% f ttal industrial hydrgen prduced and est. transprtatin market Supply and emissins reductin Emissin reductin / Pwer & CO 2 Supply, Recvery & Cmpressin Cmmn Technlgy Platfrm, Prject Develpment Mdel & Financing 6

7 Tri-State RFP: 63 MW Beacn Falls Energy Park Prject wner & EPC: O&G Industries O&G website Prject Develper: Beacn Falls Energy Park B.F. LLC website Equipment supply & service: FuelCell Energy, Inc. FCE ptential cntract size: > $500 millin (phased equipment & service) Revenue recgnitin: % cmpletin as plants shipped/installed Service revenue ver prject life Expected timing: Multiple phases beginning in late 2016 Current & Upcming RFPs CT DEEP 2-20 MW RFP Prject develper & EPC: FuelCell Energy, Inc. Overview: 4 separate prjects bid ttaling > 50 MW Revenue recgnitin: Expect 100% at COD Service revenue ver prject life Expected timing: Late 2016 PSEG 40 MW Fuel Cell FiT Prject develper & EPC: FuelCell Energy, Inc. Overview: Multiple prjects under develpment t bid Revenue recgnitin: Expect 100% at COD Service revenue ver prject life Expected timing: Late MW Beacn Falls Energy Park 7

8 CCS Glbal carbn reductin need fr gas and cal-fired pwer plants Slutin: affrdable & scalable carbnate fuel cells Generating pwer while capturing CO 2 Cllabratin partner with extensive resurces Opprtunity Integratin with cmbined cycle gas plants Glbal market pprtunity measured in Gigawatts (i.e. 1,000 megawatts = ne gigawatt) Eurpean interest fr industry And we cntinue t press frward n innvatins such as carbn capture and sequestratin. Earlier tday, ExxnMbil annunced a cllabrative research prgram t pursue the nvel applicatin f carbnate fuel cells t capture carbn dixide frm pwer plants. Such breakthrugh technlgy culd substantially reduce csts. We are still in the early days, but making carbn capture mre ecnmic culd lead t largescale applicatins arund the wrld, reducing emissins and mitigating the risks f climate change. - Rex Tillersn, Chairman & CEO, ExxnMbil; May 5, 2016 speech at US Energy Assciatin; Similar cmments were made during the ExxnMbil annual sharehlder meeting n May 25,

9 Fuel Cell Value Drivers Affrdable pwer Avids transmissin csts & siting challenges N peaking pwer supprt needed, unlike intermittent renewables Site in high density lcatins Availability = REC s High level f renewable energy credits (REC s) generated 4-5x the REC s f slar Meet RPS gals Ultra-clean pwer Drives lcal ecnmic develpment Urban renewal within Cities Pays prperty & sales taxes Uses a fractin f the land f slar Prjects attract private capital Gal: Meet RPS mandates (i.e. max. REC's) MW's Acres f land Annual MWh's FCE 10 1 ~83,000 Slar ~83,000 Challenge: Limited land availability MW's Acres f land Annual MWh's FCE 10 1 ~83,000 Slar ~220 9

10 Enhancing Cmpetitiveness Grid-cmparable LCOE - unsubsidized - Cntinuing t reduce all fur cst cmpnents Glbal manufacturing ftprint - Redundancy imprtant t custmers & financing - Grwing prductin vlume further reduces per-unit csts Prject develper mdel accelerates rder clsure millins Prject develper PPA mdel Behind-the-meter example On-site CHP prject (1.4 MW) delivered in 5-9 mnths under PPA that saves the end-user n pwer csts. Unlevered IRR f 9%-11% fr prject wner. ~$20 millin revenue pprtunity fr FCE Prject develper PPA mdel Utility-scale example Utility-scale prject (19.6 MW) delivered in 9-15 mnths under PPA priced $0.09 t $0.11/kWh and generating un-levered IRR f 8% - 10% t utility/ipp wner r prject investr. ~$200 millin revenue pprtunity fr FCE millins 10

11 Example: 1.4 MW CHP prject Financing Structures Revenue recgnitin Sale t end-user Percentage f cmpletin + Service Sale t prject investr 100% upn sale + Service Prject financing & FCE Retains PPA As pwer is sld - Mre cash generated - Higher revenue - Higher margins Prducts Prduct revenue $7.5 - $8.5 millin $7.5 - $8.5 millin n/a Prduct margins lw t mid-teens mid-teens n/a Sale / Leaseback n/a n/a $8.0 - $9.0 millin Cash Timing Milestne Payments Cnstructin Debt / Full Payment n COD Cnstructin Debt / Full Payment n COD Services (20 Year Term) Service revenue $9 - $12 millin $9 - $12 millin n/a Sale f pwer n/a n/a $18 - $22 millin Services margins mid-teens mid-teens t lw 20's lw t mid 20's Cash Timing As Earned As Earned As Earned Expanding Financing Platfrm General wrking capital Cnstructin/prject finance (FCE has PPA as develper) Sale/Lease-back FCE retains PPA Prject Examples: PNC Energy Capital Nte: Amunts are indicative based n an example 1.4MW CHP prject. Actual prject ttals / results will vary. COD: Cmmercial Operating Date Prject Financing : Accelerates prject clsure, Expands margins 11

12 Grwing the Glbal Business Clean and affrdable slutins gaining greater glbal appreciatin with utilities, legislatrs & regulatrs, and n-site custmers Enhancing cst prfile Marquee partners and custmers prvide additinal validatin Glbal manufacturing and custmer presence Leveraging multiple market applicatins with cmmn glbal technlgy platfrm 12