Challenges of the production localization strategy of MW-class fuel cell power plants in Germany for Europe

Transcription

1 Challenges of the production localization strategy of MW-class fuel cell power plants in Germany for Europe Stuttgart Contact: Dipl.-Ing. Andreas Froemmel FCES FuelCell Energy Solutions GmbH Winterbergstr. 28, Dresden, Germany Cell +49 (1 51) Direct +49 (3 51)

2 Safe Harbor Statement Referring to Private Securities Litigation Reform Act(1995): 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. The Company may refer to non-gaap (generally accepted accounting principles) financial measures in this presentation. The Company believes that this information is useful to understanding its operating results and the ongoing performance of its underlying business. Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are registered brands of FuelCell Energy, Inc.; DFC- ERG is a registered brand of Enbridge, Inc. and FuelCell Energy, Inc FuelCell Energy Solutions GmbH - October

3 Agenda: 1. Company and Products 2. Status of Localized Production 3. Localization Plan for MW Production in Germany

4 Distributed Generation 58,8 MW fuel cell park in construction 300 MW installed and ordered More than 80 Direct FuelCell plants on 64 sites wordwide produce 1,7 Mrd. kwh Energy FuelCell Energy Solutions GmbH - October

5 FCES GmbH Joint Venture (operating since 05/2012): patents, assets and IP About 150 experts for fuel-celltechnology and ceramic materials, powder and pastes 25% interests in Joint-Venture Licenses for patents and 20 years of production know-how MCFC About 250 experts for fuel-celltechnology 75% interests in Joint-Venture FuelCell Energy Solutions GmbH - October

6 FuelCell Energy Solutions GmbH Manufacture Sell (direct & via partners) Install Services FuelCell Energy Solutions GmbH - October

7 Usage potential Inexpensive materials and manufacturing processes power > 47 % efficiency > 95 % Availability naturalgas 20 years operation use of existing infrastructure and waste heat High-temperature heat: two-stage extraction possible About 400 C and C Biogas out of: wastewater treatment plants Food production landfills biomass + Low noise + no Vibrations + Low emissions (lowco2, almostnosox, nonox) H2 cooling Absorbtion- or Adsorbtionscold machines Hydrogen Station FuelCell Energy Solutions GmbH - October

8 Example: 1,4 MW with DFC1500 EU Reduction of emissions compared to classical productionmix * NO x, SO x & NH 3 : CO 2 : 24.4 t/year 9,220 t/year (equivalenttoco 2 emissionsof4,120 modern middle-classcars) NO x : 4,54*10-3 g/kwh (150 g/day) SO x : 4,54*10-5 g/kwh (1,5 g/day) CO 2 : 445 g/kwh * accordingdin V FuelCell Energy Solutions GmbH - October

9 Fuel Cell Landscape Technology MW- Class Sub-MW- Class Micro CHP Mobile Carbonate (MCFC) Phosphoric Acid (PAFC) Solid Oxide (SOFC) PEM / SOFC Polymer Electrolyte Membrane (PEM) System size range 300kW - 2.8MW 400kW 200 kw < 10 kw < 10 kw Typical Application Utilities, large universities, industrial - baseload Commercial buildings - baseload Commercial buildings - baseload Residential and small commercial Transportation Fuel Natural gas, Biogas, others Natural gas Natural gas Natural gas Hydrogen Advantages High efficiency, scalable, fuel flexible & CHP CHP High efficiency Load following & CHP Load following & low temperature Electrical efficiency Combined Heat & Power (CHP) 43%-47% (higher w/ turbine or organic rankine cycle) Steam, hot water, chilling & bottoming cycles 40% - 42% 50% - 60% 25% - 35% 25% - 35% Hot water, chilling Depends on technology used Suitable for facility heating No, which is an advantage for transportation FuelCell Energy Solutions GmbH - October

10 Products DFC250 EU DFC400 DFC300 DFC1500 DFC3000 DFC-ERG FuelCell Energy Solutions GmbH - vertraulich - Februar

11 1.4 MW DFC1500 Layout Water Treatment and Control Panel Blower, Heater, Preconverter Exhaust Stack Fuel Treatment - Desulfurizer Module Switchgear Inverter 2012 FuelCell Energy Solutions GmbH confidential- November

12 Trend to Larger Installations Ten years ago - installations were individual sub-megawatt plants Five years ago - megawatt-class plants 59 MW fuel cell park Hwasung City, S. Korea 11.2 MW fuel cell park Daegu City, S. Korea 14.9 MW fuel cell park Bridgeport, Connecticut 10.4 MW fuel cell park Yeosu, S. Korea 2.8 MW renewable biogas plant Chino, California 4.5 MW directed biogas project San Diego, California Today Multi-megawatt plants and fuel cell parks FuelCell Energy Solutions GmbH - October

13 Multi MW FuelCell Park: 60MW FuelCell Energy Solutions GmbH - October

14 DFC400 EU Scheme of a sub-mw system WR (EBOP) Modul Cells MS (MBOP) FuelCell Energy Solutions GmbH - October

15 Production in Ottobrunn Sub MW production FuelCell Energy Solutions GmbH - October

16 Assembly of a 250 kw module Thermal insulated lid Heat exchanger, startup heater Partially insulated vessel, and air distributor sub assembly Installed startup heater and Hex FuelCell Energy Solutions GmbH - October Installed Recycle Blower 17

17 Assemblyofa 250 kw module Beginning of stacking Careful application of a matrix Cells End plate Compression plate FuelCell Energy Solutions GmbH - October

18 Assembly of a 250 kw module Tilting the stack to horizontal FuelCell Energy Solutions GmbH - October

19 Assemblyofa 250 kw module Instrumentation Finished module Ready to be Delivered Transport on air cushions Pulling stack into vessel FuelCell Energy Solutions GmbH - October

20 Successful cost reduction Product cost per kw MCFC BZ (DFC, MW-class) of FCE FuelCell Energy Solutions GmbH - October

21 Forecast cost reduction Product cost per kw MCFC BZ (DFC, MW-class) of FCE/FCES Growing potential with FuelCell Energy Solutions GmbH - October

22 Location ofproduction: Ottobrunn - suburb of Munich 1800 m² total Plant area Staff covering: Assembly/ Conditioning Engineering (Mechanical, Electrical, System) Status of Localized Production Support Functions(Purchasing, Logistics, EH&S, Quality, IT) Service (Maintenance, Repair) Technical Plant Capacity(Sub-MW modules only): Assemblyof75 Modules per year= 30 MW capacity Conditioningof35 Module per year= 15 MW capacity Addedvaluefora standard400 kw system(statusasof2013): Germany = 65% USA = 30% Europe = 5% FuelCell Energy Solutions GmbH - October

23 Motivation for local MW Production Reductionofmanufacturingcostbyavoidingexpensive transportation and packaging Added value for German/European supply chain Creation of local high tec jobs Blank sheet for optimal layout with new equipment (automation) Close to strategic markets FuelCell Energy Solutions GmbH - October

24 Localization Strategy Strategy has investments & operating costs justified with local market demand Local Economic Benefit High Med Low Current Capabilities Emerging Market Field Service (Sub-MW Only) BOP Production (Sub-MW Only) Module Assembly (Sub-MW Only) Research & Development EPC and Installation Sales & Applications Expanded Service Field Service (Sub-MW & MW) BOP Production (Sub-MW Only) Module Assembly (Sub-MW Only) Research & Development EPC and Installation Sales & Applications Expanded Assembly MW Module Assembly Facility Local BOP Production (Sub-MW & MW Local Service Center Field Service Research & Development EPC and Installation Sales & Applications Fully Developed Market Cell Production Facility Module Assembly Facility Local Service Center Field Service Local BOP Production Research & Development EPC and Installation Sales & Applications Up to 15 MW/Yr MW/Yr MW/Yr Market Size Greater than 70 MW/Yr FuelCell Energy Solutions GmbH - October

25 Generalized layout and process flow Fully Contained 100 MW Facility ~ 170m Modules Shipped Conditioning Condit ioning Module Assembly Module Teardown and Repair Cell Manufacturing Offices ~100m Shipping/Receiving and Warehouse Slurry Prep Facilities Product Out Material In FuelCell Energy Solutions GmbH - October

26 Business Development Strategy Initial Position Political demand for localized production Low production volume produces higher cost Higher cost reduce market size Customer accepts only market-driven cost Challenges Increase market according Localization Strategy Solutions Provide financing and/or PPA (Power Purchase Agreement) Lower equipment prices through global supply chain and volume Provide Full Service with guaranteed output Lower or defer LTSA payments Funding/Policy Changes FuelCell Energy Solutions GmbH - October

27 Contact: Dipl.-Ing. Andreas Froemmel VP of Business and Commercial Development FCES FuelCell Energy Solutions GmbH Winterbergstr. 28, Dresden, Germany Cell +49 (1 51) Direct +49 (3 51)