Company Update May U ltra -C lean Efficient Reliable Power

Transcription

1 Company Update May 2016 U ltra -C lean Efficient Reliable Power

2 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. 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. 2

3 Integrated Fuel Cell Company Research & Development Global fuel cell technology platform Robust intellectual property portfolio Leveraging core technology for new market opportunities Sales, Manufacture & Project Execution Project development Direct Sales Global manufacturing (200+ MW capacity) Engineering, Procurement and Construction Services Operate & Maintain power plants 100+ DFC plants operating at 50+ sites globally >4 billion kwh ultra-clean power produced > 300 MW installed/backlog Fuel cell stack Four-Stack Module 1.4 megawatts Completed module 1.4 megawatts 2.8 MW power plant 5 unit fuel cell park 3

4 Global Relationships North America Asia Europe Partners Market Development / Project finance Largest IPP in N. America $40 million project finance facility to FCE Owns 5% FCEL stock FCE-developed projects to yieldco Market Development Asian Manufacturing Largest IPP in S. Korea POSCO 2015 sales: ~$48 billion Owns 10% FCEL stock License/royalty for Asia Asian manufacturing Market Access Leveraging R&D Providing gov t & industry introductions Received 4.9 million R&D funding from gov t Near-term opportunities in Germany, UK, and Italy Utility & IPP customers On-site Power (behind the meter) 4

5 Preferred Resource Grid support with CHP Grid support benefitting urban redevelopment University Micro-grid with CHP Fuel cell / Solar integration 5

6 Solutions that Create Value Preferred Resources for Distributed Generation Emission reductions w/ Carbon Capture Distributed Hydrogen On-site CHP Utility scale Coal-fired Natural Gas Combined cycle plant On-site CHP Transportation Industrial $18 billion global market potential Represents market opportunity for Equipment & Services in key markets in N. America, W. Europe and select Asian countries $>25 billion global market potential Represents market opportunity for both Coal and Gas-fired power plants assuming only 1% of existing plants in select global markets $7 billion global market potential Represents market opportunity in key markets for Equipment & Services for Industrial & Transportation markets, assuming ¼ of 1% of total industrial hydrogen produced and est. transportation market Supply and emissions reduction Emission reduction / Power & CO 2 Supply, Recovery & Compression Common Technology Platform, Project Development Model & Financing 6

7 CCS Global carbon reduction need for gas-fired power Solution: affordable & scalable carbonate fuel cells o Carbonate fuel cells consume/capture CO 2 o Power generation leads to affordability o Modularity leads to scalability Collaboration partner with extensive resources o World s largest energy company & public gas producer o Leading expert & experience with sequestration o World-leading research capabilities Opportunity o Integration with combined cycle gas plants o Global market opportunity measured in Gigawatts And we continue to press forward on innovations such as carbon capture and sequestration. Earlier today, ExxonMobil announced a collaborative research program to pursue the novel application of carbonate fuel cells to capture carbon dioxide from power plants. Such breakthrough technology could substantially reduce costs. We are still in the early days, but making carbon capture more economic could lead to large-scale applications around the world, reducing emissions and mitigating the risks of climate change. - Rex Tillerson, Chairman & CEO, ExxonMobil; May 5, 2016 speech at US Energy Association 7

8 Fuel Cell Value Drivers Coal/Gas plant - USA avg. Near-zero emissions Source: FCE & NREL NO x - lb's/mwh Grid - USA avg. Lean burn gas engine FuelCell Energy High fuel cell plant availability FuelCell Energy Nuclear Coal Gas - CC Wind - MW USA Wind - SE USA Solar PV - SW USA Solar PV - NE USA Availability 0% 20% 40% 60% 80% 100% Source: FCE & NREL Favorable land density Source: FCE & NREL 8

9 Enhancing Competitiveness Grid-comparable LCOE - unsubsidized - Continuing to reduce all four cost components Global manufacturing footprint - Redundancy important to customers & financing - Growing production volume further reduces per-unit costs Project developer model accelerates order closure millions Project developer PPA model Behind-the-meter example On-site CHP project (1.4 MW) delivered in 5-9 months under PPA that saves the end-user on power costs. Unlevered IRR of 9%-11% for project owner. ~$20 million revenue opportunity for FCE Project developer PPA model Utility-scale example Utility-scale project (19.6 MW) delivered in 9-15 months under PPA priced $0.09 to $0.11/kWh and generating un-levered IRR of 8% - 10% to utility/ipp owner or project investor. ~$200 million revenue opportunity for FCE millions 9

10 Example: 1.4 MW CHP project Financing Structures Revenue recognition Sale to end-user Percentage of completion + Service Sale to project investor 100% upon sale + Service Project financing & FCE Retains PPA As power is sold - More cash generated - Higher revenue - Higher margins Products Product revenue $7.5 - $8.5 million $7.5 - $8.5 million n/a Product margins low to mid-teens mid-teens n/a Sale / Leaseback n/a n/a $8.0 - $9.0 million Cash Timing Milestone Payments Construction Debt / Full Payment on COD Construction Debt / Full Payment on COD Services (20 Year Term) Service revenue $9 - $12 million $9 - $12 million n/a Sale of power n/a n/a $18 - $22 million Services margins mid-teens mid-teens to low 20's low to mid 20's Cash Timing As Earned As Earned As Earned Expanding Financing Platform General working capital Construction/project finance (FCE has PPA as developer) Sale/Lease-back FCE retains PPA Project Examples: PNC Energy Capital Note: Amounts are indicative based on an example 1.4MW CHP project. Actual project totals / results will vary. COD: Commercial Operating Date Project Financing : Accelerates project closure, Expands margins 10

11 Growing the Global Business Clean and affordable solutions gaining greater global appreciation with utilities, legislators & regulators, and on-site customers Enhancing cost profile Marquee partners and customers provide additional validation Global manufacturing and customer presence Leveraging multiple market applications with common global technology platform 11

12 Affordably Delivering Efficient & Ultra-Clean Power NASDAQ: FCEL 12

13 Appendix 13

14 19 MW in Bridgeport These [fuel cell] projects aren t just good for the environment, they are good for our economy. They create jobs. They help reduce asthma and breathing ailment rates for kids. They grow our tax base. Bridgeport Mayor Bill Finch (term expired Jan-2016) Type: Grid support w/ solar array Size: 2.8 MW Owner: Utility rate base Type: On-site CHP Size: 1.4 MW Owner: Project investor Sustainable and affordable energy is an increasingly important component of the new energy mix at the University of Bridgeport. Neil A. Salonen President, University of Bridgeport Type: Grid support Size: 14.9 MW Owner: Utility PPA structure The Dominion Bridgeport Fuel Cell Park is another important step in our efforts to identify and develop opportunities to produce clean energy that is reliable and cost effective." Thomas F. Farrell II, Chairman, President and CEO, Dominion Purchasing these fuel cell power plants supports our goal of investing in renewable distributed generation to enhance the reliability of our power delivery system and offer our customers cleaner energy. James P. Torgerson, President & CEO, Avangrid 14

15 63 MW fuel cell park 63 MW Beacon Falls Energy Park Project owner & EPC: Project Developer: Equipment supply & service: O&G Industries O&G website Beacon Falls Energy Park B.F. LLC website FuelCell Energy, Inc. FCE potential contract size: > $500 million (phased equipment & service) Revenue recognition: % completion as plants shipped/installed Service revenue over project life Expected timing: Multiple phases beginning in 2016 Milestones attained Partners w/ gas-plant development experience Obtain site-control of land Gain local government support Undertake inter-connect study Siting Council approval Execute property tax stabilization agreement Contracts exchanged between partners Bid submitted to Tri-state RFP website 2016 milestones Identify power off-taker (RFP award notification period: now thru July 26, 2016) Close project financing (strong interest to date) Commence construction 63 MW Beacon Falls Energy Park 15

16 Advancing New Markets Distributed hydrogen Affordably and cleanly generating multiple revenue streams, including power, heat and hydrogen Industrial Clean Natural Gas Advanced manufacturing & industrial applications Enhance security of supply Low carbon Competitive economics to central gas generation Transportation Renewable Biogas Enable clean transportation fueling infrastructure Zero carbon Cost competitive with gasoline More information Hydrogen co-production 16