Company Update. November 2017

Transcription

1 Cmpany Update Nvember 2017

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. Please refer t the Cmpany s earnings release fr further disclsure and recnciliatin f nn-gaap financial measures. 2

3 Energy Trends Grid resiliency & reliability Emissin reductins and De-carbnizatin Distributed hydrgen Supprting intermittent renewable deplyment Predictable n-site generatin enhances resiliency and reliability Avids csts, risks f interruptin and siting issues f transmissin Enables infrastructure capitalavidance fr utilities Highly efficient electr-chemical prcess n burning Scalable & cst effective carbn capture that generates pwer while capturing CO 2 & destrying ~70% f cal/gas-fired pwer statin NO x emissins Tri-generatin fr high-purity hydrgen plus pwer & heat Affrdable and significantly cleaner than steam refrming Fr Transprtatin & Industry Carbn-negative hydrgen when using renewable bigas Strage supprts intermittent pwer: shrt duratin (<4 hurs) & lng duratin (6+ hurs r days) Batteries meet shrt duratin Reversible fuel cells fr scalable and affrdable lng-duratin slutin - high rund-trip efficiency Glbal energy industry trends driving strng demand Predictable and distributed clean pwer generatin Carbn capture fr pwer generatin and industry Distributed hydrgen fr transprtatin and industrial uses Lng-duratin strage supprts increased renewables penetratin 3

4 FuelCell at a Glance Snapsht Cmpany Overview Design & Manufacture Prject Develpment FuelCell Energy designs, manufactures, undertakes prject develpment, installs, perates and maintains megawatt-scale fuel cell systems Serving utilities, industrial and large municipal pwer users with slutins that include bth utility-scale and n-site pwer generatin, carbn capture, lcal hydrgen prductin fr transprtatin and industry, and lng duratin energy strage SureSurce TM slutins efficiently and affrdably generate predictable energy where it is used via a clean and quiet, electrchemical prcess Investment Highlights Turn-key Prject Delivery Plant Operatin Delivering clean innvative slutins fr the glbal supply, recvery and strage f energy Crprate ffice, R&D and glbal service in Danbury, CT Manufacturing facilities in Trringtn, CT; Taufkirchen, Germany; and via partner in Phang, Suth Krea Mre than 50 installatins n 3 cntinents Prduced >6 millin MWh s f ultra-clean pwer > $1 Billin recent prject awards Sizeable glbal market ptential fr affrdable, efficient and easy t site fuel cell slutins Cmpelling business mdel - pwer plant sales plus recurring high margin electricity sales frm retained Generatin prtfli and Services revenue and supprted with rbust IP Targeting industry leaders with the market s nly MW-class fuel cell slutin Versatile fuel cell platfrm supprts glbal pprtunities with carbn capture, distributed hydrgen & strage Prject prfiles attract private capital Balance sheet t supprt 20 year utility service cntracts; ttal assets >$300 millin Experienced management team with decades f pwer industry and industrial experience NASDAQ: FCEL 4

5 Market Overview Energy Generatin NEAR-TERM Carbn Capture & Distributed Hydrgen $18+ Billin Estimated Market $32+ Billin Estimated Market Utility Grid Supprt Easy and quick t site Enhances grid resiliency Supprt Clean and Renewable prtfli standards advancement On-Site Slutins Micr-Grid / CHP Easy-t-site resiliency Sustainability benefits Saving custmer mney TODAY Gas Pipelines Harnessing energy frm gas depressurizatin High efficiency Sustainability benefits Fuel Cell Carbn Capture Affrdable & scalable Generates pwer while capturing CO 2 Cllabrating with ExxnMbil Pilt prject at Suthern C. pwer statin Distributed Hydrgen Leading slutin fr reducing transprtatin emissins Cmpetitive with gasline DEVELOPING Lng-Duratin Energy Strage Tens f $ Billins f Estimated Market Reversible Fuel Cell Hydrgen is strage medium Site at substatins Favrable ecnmics fr 6+ hurs 5

6 Glbal Relatinships Nrth America Eurpe Asia Strategic Investrs Largest IPP in S. Krea Owns 4% FCEL stck Largest IPP in USA Owns 2% FCEL stck Finance Prviders Extends $40 millin prject finance facility Manufacturing: Cnnecticut, USA Germany Suth Krea (via POSCO Energy) 6

7 Financial Mdel Diversified revenue surces: Prduct Service & license Generatin Advanced technlgies Expanding glbal installed base Backlg & recent Prject awards >$1.5 billin Prduct sales and expanding Generatin prtfli Frecasted EBITDA Breakeven - blend f Generatin prtfli & Prduct sales Strng prject finance interest Predictable pwer generatin prfile, strng fftakers, easy-t-site minimizes permitting & land csts millins megawatts Existing Under cnstr. Prject awards Ttal Generatin Prtfli Krean Prduct Sale LIPA prjects Ttal Building sustainable revenue grwth and grss prfit 7

8 Recent Highlights & Catalysts Recent Business Highlights Awarded entire 40 MW fuel cell prgram by LIPA LIPA aviding $76 millin transmissin upgrade & a planned lad-pcket RFP 20 megawatt utility fuel cell park prject in Asia 7.4 megawatt utility prject at a U.S. Navy base 20 year PPA t sell pwer t SCE under Califrnia BiMAT prgram / 2 nd installatin at Tulare wastewater facility State f Cnnecticut passed Act fr utility wnership & State RFP that ptentially enables > 100 megawatts f fuel cell prjects NRG Yield site hsting SOFC prject same platfrm as strage slutin Near-term Catalysts 250 MW CA Bigas Market Adjustment Tariff Market develpment activity f >200 MW with Suth Krean utilities Cnnecticut: >100 MW f fuel cell parks under develpment with multiple cntractual paths (i.e. utility wnership, utility PPAs, State level prcurement prcess, all via PA ) Near term On-site pprtunities f 10 t 20 MW Fllw-n fuel cell carbn capture prjects Distributed hydrgen prjects fr transprtatin 8

9 Value Drivers Cmpelling Ecnmics Avids transmissin (line lsses, cst & permitting) REC s / Capacity payments / Carbn credits Cntinued reductin f all cst cmpnents High Availability High availability supprts ecnmics High level f Renewable Energy Credits (REC s) generated (3-5x the REC s f slar) Negligible Emissins Easy-t-site (CARB 2007 certified) Accelerate RPS, CO 2 & NO x reductin gals Clean predictable pwer Ecnmic Develpment Driver Urban renewal Prperty & sales tax revenue Jb creatin Mdest land usage 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 Custmer Success Stries Grid Supprt with CHP Pwer sld t grid Heat sld t district heating system 59 MW n nly 5.2 acres Only 14 m. installatin Wrld s largest fuel cell park Grid Supprt / Urban Redevelpment Pwer sld t grid Enhance resiliency Brwnfield revitalizatin 15 MW n 1 ½ acres Only 12 m. installatin Resiliency fr Pharma 5.6 MW with steam fr cmpany campus Predictable pwer slving grid quality issues Immediate savings vs. grid Sustainability Fuel Cell / Slar Integratin Utility-wned, rate-based Enhance resiliency 2.8 MW fuel cell n ¼ acre - ~23,000 MWh annually 2.2 MW slar n ~9 acres - ~3,000 MWh annually 10

11 Enhancing Cmpetitive Advantage Slving Resiliency Issues & Enhancing ROI MW-Class Distributed Generatin with Cmbined Cycle Electrical Efficiencies De-carbnizing & NOx Reductin Affrdable & scalable Carbn Capture Generating pwer while capturing CO 2 ExxnMbil - cllabratin partner Demnstratin at Suthern C. Plant Barry Canadian Oil Sands engineering prject 2.7 GW cal/gas-fired Plant Barry Site hst fr fuel cell carbn capture prject 11

12 Bradening New Grwth Opprtunities De-carbnizing Transprtatin Tri-generatin fuel cell slutin prviding hydrgen fr fuel cell vehicles plus clean reliable pwer Price cmpetitive, clean & negative carbn ptin Imprving the Value f Energy Strage Alternate between pwer generatin (H 2 fuel) & electrlysis Add additinal lw cst H 2 strage (vs. mre batteries) Energy Strage System 12

13 Summary: Attractive Lng Term Mdel 20 megawatts Revenue Grss Margin Operating Expenses $1 billin recent awards Diverse revenue streams Expanding recurring Services & Generatin revenue Strng Generatin margins & strengthening Services business Strng incremental margins frm increased vlume Advanced Technlgy benefiting frm private cntracts G&A psitined t supprt grwth Manufacturing capacity available t supprt grwth Lng-Term Mdel Grw recurring Generatin & Service revenue Expand glbal installed base with new prjects Target Grss Margin: 25-35% Estimated EBITDA Breakeven with blend f Prduct sales and Generatin prtfli 11 megawatts 20 megawatts 11 megawatts 13