Track B Large Commercial/Industrial Sales & Account Management - Selling Fuel Cells

Transcription

1 Track B Large Commercial/Industrial Sales & Account Management - Selling Fuel Cells Northeast Gas Association 2018 Sales & Marketing Conference Christopher A. Cavanagh, PE March 8, 2018

2 Our Challenge The Energy Tri-Lemma Provide customers with Affordable, Reliable, and Sustainable energy in the future. Modernize our infrastructure to meet 21 st century demands. Put customers in charge. Connect our customers to renewable energy solutions. 2

3 An International Energy Company UK Electric 11 Million Customers 7 million + customers UK Gas 3,700 MW Electricity Generation 3

4 The transition is underway: Industry trends Solar Over the next five years, the U.S. solar market is expected to nearly triple in size. ** Since 2008, the cost of solar panels has dropped by almost 80%. Record solar PV interconnections 5,250 in FY 2016 Wind Total U.S. installed wind capacity, through end of 2016: 82,183 MW. First off-shore Wind deliveries this month in RI. Electric Vehicles (EV) The EV market in the US is expected to grow at an annual growth rate of 24% over the next three years.* * Technavio Renewable Heating **Solar Energy Industries Association (SEIA) ***American Gas Association UK Renewable Heat Incentive In 2011, American Gas Foundation (AGF) found that with the right policies, Renewable Gas could meet the natural gas needs of half of all American homes. *** 4

5 The Way Forward Safety/compliance and reliability Investing to grow and modernize the system Improving the customer experience and helping customers manage their energy costs Advancing clean energy solutions and environmental stewardship Partnering with communities to make our region safer, healthier and more vibrant Creating a more customer-centric, resilient, responsive, efficient and environmentally sound energy network to meet the needs of the 21 st century. 5

6 Reforming the Energy Vision (REV) REV is the NYS proceeding to transform the New York electric energy industry Creating market-based sustainable products and services Enabling distributed energy resources to manage load and optimize systems Empowering customers to manage energy use and reduce electric bills Carbon Reduction System Reliability & Resiliency Customer Knowledge REV Core Policy Outcomes Fuels and Resource Diversity Market Animation System Efficiency 6

7 Energy System Benefits of Fuel Cells Customer energy savings and resiliency Near elimination of criteria pollutants (SO X, NO X, PM) Reduction n Greenhouse gases Improved electrci and gas load factors 7

8 Carbon Reduction from Generation Bloom Fuel Cells Environmental Benefits NYC Name Plate Bloom ES-5700 Unit Size [kw] 200 1,320,000 BTU LHV Generating Efficiency LHV 60.0% 11,563,200,000 BTU/Yr LHV Load Factor 98.0% 12,781,687,742 BTU/Yr HHV Annual Gas Use [DTH] 10,799 12,782 DTH 51.7% eff. LHV Annual Carbon Benefits Electric Produced: [kwh] 1,716,960 Carbon Produced by Grid (Marginal) CO2 NYC Zone "J" 1,237 lbs/mwh 1,062 Tons/Yr. Long Island Zone "K" 1,268 lbs/mwh 1,089 Tons/Yr. Natural Gas Emissions Carbon Produced 120,000 lbs/mmcf 666 Tons/yr Carbon Savings: NYC 37.3% LI 38.8% 8

9 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 9

10 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 10

11 Fuel Cells 11

12 Fuel Cell Power Plant 12

13 Commercial Fuel Cell Product Evolution United Technologies PAFC 12.5 kw 1968 United Technologies PAFC 40 kw 1986 ONSI PAFC 200 kw 1993 Fuel Cell Energy SOFC 300 kw 2006 GE 1.3 MW SOFC (future) 13

14 Small Fuel cells - The Hype Curve 14

15 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 15

16 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 16

17 C & I Distributed Generation with Modular Fuel Cells Phosphric Acid 440 kw Generating Efficicncy: 45% LHV Thermal Available: 27% Solid Oxide Solid Oxide* MW 200 kw Generating Efficiency: 59% LHV Generating Thermal Available: 19% Efficicncy: 65% LHV Business Energy Investment Tax Credit (ITC) for Fuel Cells Extended: 30% , 26% , 22% for 2022, sun-setting Dec 31, Maximum of $1,500 per ½ kw *Home Depot, LI

18 Case Study Commercial Office kw Fuel Cell Energy Heat Recovery 9,462 MMBthu/yr IRR 20 > 7% NPV 20 > $250,000 18

19 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 19

20 Microgrids and Resiliency 1 1 Microgrids for Critical Facility Resiliency in New York State, Final Report, NYSERDA, Report Number 14-36, December 2014, Figure 7-6, at p

21 NY Prize Opportunity Zones Microgrid Competition Local Public/private partnerships (3) Stage competition for funding (feasibility, design, implementation) Initial National Grid Applicants (22) Downstate (31) upstate Funding ($40 Million) Stage 1 $100,000 ea. Stage 2 $8 Million (10/2016) Stage 3 $5 Million ea. 21

22 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 23

23 Fuel Cell Transportation Annual CO 2 e (tons) 450, ,000 Baseline Electric Bus (Depot Charge) Fuel Cell Bus (SMR) Low NOx CNG Bus & RNG Electric Bus (Depot & In-Route) Fuel Cell Bus (Electrolysis) 350, , , , , ,000 50,

24 Fuel Cell Vehicles may be in the Future of Transportation Efficiency Fuel Cells Vehicles (FCV)s run on hydrogen that can be sourced from any conventional or renewable energy source locally or distributed Fuel cell vehicles are battery-electric hybrid, zero emissions vehicles with advanced features: Toyota Mira cruising range is 311 miles and fills with compressed hydrogen in 3-5 mins It s high density PEM fuel cells (3.1kW/liter) results in a fuel economy of 67 mpg equiv. National Grid developed a hydrogen fueling station for FCV s at Lido Beach, NY National Grid s fleet will test (20) fuel cell Nissan light trucks for the USDOE & US Hybrid 25

25 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 26

26 Micro Combined Heat and Power Potential US Products with 5 yrs SolidPower Panasonic Kyocera 1.5 kw 12 kw SOFC Eff: 60% 0.7 kw PEFC Eff: 38% kw SOFC Eff: 60% 27

27 Micro-Combined Heat and Power NY State REV Demonstration Market Animation Customer Knowledge Carbon Reduction System Reliability & Resiliency System Efficiency 5 kw microchp $755,000 Heating with an Engine or Fuel Cell Japan has made the most progress Customer Benefit Energy cost savings through self generation and beneficial use of heat Backup Power Carbon Savings: 20-30%+ (based on 1.2 kw) Gas technology to relieve electric constraints Increased gas revenue: 20-25% (based on size) 10 ea. NYC & LI (funded in part through shared savings) 28

28 Savings Simulation (SOLIDPower) Small NYC Apartment Bldg (common area) Thermal load following Net Metered (if allowed) Residential DG gas rate 1B-DG Annual Savings: $2,900 29

29 Agenda Fuel Cells and Some History Distributed Generation and Cogeneration Microgrids Transportation Applications Aggregating Micro CHP Emerging Concepts 30

30 Emerging Concepts Stationary Direct Use of Hydrogen Backup Power (e.g. telecom) Forklifts (warehouse productivity) Direct Use of DC Power (Combine with Solar) Improving Power Density (e.g. MEAn Technologies 40% increase in power density) 31

31 With your help we can lead the way in creating the climate for change nationalgrid 32