CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

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1 CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

2 Convion BACKGROUND An R&D unit of Wärtsilä Corporation through Convion started in 2013 following a spin-off CURRENT STATUS Unique IPR portfolio including 38 patented inventions Focus on mid-range SOFC co-generation solutions First customer delivery in Q4/2016 C50 PRODUCT Power 58kW, heat 30kW >53% (net-ac), >80% total Biogas or natural gas Power security during grid outages CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

3 What is an SOFC fuel cell? A fuel cell is an electrochemical device that directly converts chemical energy of a fuel into electricity and heat It produces low-voltage DC directly from the fuel (NG, BG, H2 and CO) Key properties High electrical efficiency Low emissions Fuel flexible Scalable from mw to MW CONVION Fuel Cell Technology September 21, 2016

4 Market potential, role of biogas Source: AEBIOM, European bioenergy outlook 2014 CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

5 Trends from the use of biogas technology in Germany, Lucas Wagner, German Biogas Association CONVION September 21, 2016 Name / Event Internal / Conf / Pub

6 20000 Biogas in Europe Germany: GWh-eq Population Germany UK Italy Czech Republic France Netherlands Spain Poland Austria Belgium Sweden Denmark Greece Hungary Slovakia Portugal Finland Ireland Latvia Slovenia Romania Croatia Lithuania Luxembourg Cyprus Estonia Bulgaria Malta 0 Landfill Gas Sewage Sludge Gas (Urban/Ind.) Other Gas (Agric./MSW/Co-Digestion) Population Ref.: Sustainability 2016, 8, 298; EurObserv ER. Biogas barometer 2014 CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

7 Photo courtesy of Photographic Archives SMAT CONVION Industrial scale demonstration of Biogas fueled SOFC CHP

8 Energy economy of waste water treatment Production Gross gas production l/pe/day IEA Bioenergy 1 Typical gas composition 63-67%-vol CH 4 IEA Bioenergy 1 CHP generator efficiency <100kW e : <36% kW e : 35-40% 88% tot efficiency Adapted from ASUE BHKW- Kenndaten 2014/2015 Consumption Electric energy for AD 1-2.5kWh/PE/year IEA Bioenergy 1 Electric energy for sludge dewatering Thermal energy for sludge and reactor heating kWh/PE/year IEA Bioenergy kwh/pe/year IEA Bioenergy 1 1. Sustainable biogas production in municipal wastewater treatment plants, N. Bachmann, IEA Bioenergy CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

9 Energy economy of waste water treatment Heat balance of WWTP, ICE vs SOFC Power balance of WWTP, ICE vs SOFC 85% 85% 75% 75% 65% 65% 55% 55% 45% 45% 35% 35% 25% 25% 15% 15% 5% 5% -5% % % -15% Heat surplus, ICE Heat surplus, SOFC Power surplus, ICE Power surplus, SOFC SOFC generates more power and less heat compared to conventional generators Heat is a local commodity and difficult to trade SOFC makes possible energy autonomy at small scale CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

10 DEMOSOFC Project: FACTS AIMS The DEMOSOFC project will demonstrate the technical and economic feasibility of operating a 174 kwe SOFC running on anaerobic digestion (AD) biogas. WHERE The DEMO plant will be installed in a medium size wastewater treatment plant (WWTP) located in the Torino area (IT). HOW Biogas is produced from the anaerobic digestion of sludge recovered from mixed urban/industrial wastewater September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

11 DEMOSOFC Project: FACTS WHEN The plant commissioning in late Full-load operation with all the three modules (58 kw X 3) is expected from Feb onwards. WHO POLITECNICO DI TORINO (IT): project coordinator CONVION (FI): SOFC technology provider SMAT (IT): WWTP owner/ end-user of electricity and thermal energy VTT (FI): performance evaluation IMPERIAL COLLEGE (UK): business analysis CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

12 DEMOSOFC site in Europe SMAT Collegno CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

13 C50 operated at 20kW output for validation purpose for >5000h - Synthetic CH4/CO2 mixture - Switching between grid connected and grid independent modes CONVION System pre-validation for DEMOSOFC

14 20 70% 18 Electrical efficiency (%) 60% 50% 40% 30% 20% 10% System tests* Disruptions from automation signal (CANOpen) errors Planned shutdowns Simulated biogas operation >2000 hours continuous power production Electrical efficiency above 50 % Island mode tests Net AC power produced (kw) 0% Operation hours * Reduced power system tests: different operating points, system control principle validation, system dynamic response and controller tuning 0 CONVION 21-Sep-16 C50 Pre-validation Electrical efficiency and Net AC Power 14

15 Emissions of an SOFC system Low local emissions, noise level < 70dB, no vibrations NOTE! Convion fuel cell CO, NOx and VOC emissions are measurement determination limits actual emissions are lower (or equal); measured PM at exhaust was g/kWh which was below ambient air PM level at measurement location; EPA and turbine reference VOC emissions include non-methane hydrocarbons only, Convion FC figure includes also methane. Sources kw CNG turbine, 2. Tier 4 emission standard for kw compression-ignition (diesel) engines, EPA Title 40: Protection of Environment, Part EU Stage V standard for all engine types, kw, DieselNet - EU standards, Nonroad Engines September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

16 BIOGAS CLEAN-UP & COMPRESSION CONTROL ROOM SOFC MODULES CONVION Plant layout

17 CONVION WWTP + SOFC integration

18 Seasonal fluctuations of biogas production CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

19 Capacity optimization Number of modules Biogas share for electricity production Equivalent capacity factor at full load Number of forced shut-downs (during reference period) 26.7% 53.4% 76.5% 97.8% 100.0% 99.8% 95.7% 87.3% Average electrical efficiency 53.16% 53.15% 53.05% 52.66% Average thermal efficiency 80.00% 79.96% 79.09% 77.35% CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

20 Modulation of a SOFC system In grid-tied mode, SOFC can be modulated from 100% to 50% with little compromise in efficiency. In an event of power grid failure, SOFC system with built-in dissipative means can form an intentionally islanding grid and supply dynamic loads with power Island mode Net AC efficiency % Island mode modulation range Normal modulation range Power Noncritical loads Secured loads Dissipative buffer From grid Load SOFC Power % 0 Time CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

21 Renewable ready power generation Zero marginal cost generation is increasing lower capacity factors for conventional generation Emerging business models in energy services with DER s e.g. load-matched SOFC CHP, storage and demand response resources. 60 SOFC modulation from 100% to 50% with little efficiency compromise 50 Supply and demand matching, capacity trading, security of supply Net AC efficiency % Lowest variable cost of all fuel based gen. - Highest eff, no T&D losses, CHP Power % CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

22 The big picture Load matched distributed generation resources and dispatchable loads are assets of a virtual power plant. Aggregation of supply and demand makes possible maximum renewables introduction and minimization of primary energy use. CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

23 Steps Towards Commercialization h validation of C20 unit - Product: Verified process solutions, design and performance - Power security: High reliability and island mode capability - Sustainability: Bio gas capability with zero emissions Further steps together with partners Demonstration, certification, education Demosofc and other pilot projects with customers Market development Customers, applications, business models, 5 10 Demonstrations & customer pilots Early commercial deployments key customers and applications CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

24 Conclusions SOFC provides the highest electrical generation efficiency regardless of scale. SOFC provides a power-to-heat ratio better matching with local loads as compared to conventional technologies. Efficiently modulating SOFC system fueled by biogas can facilitate increasing intermittent renewables. SOFC technology facilitates zero local emissions inherently. CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

25 Contacts Convion Ltd., Tuomas Hakala, Co-founder +358-(0) DEMOSOFC Prof. Massimo Santarelli, Project coordinator CONVION September 21, 2016 Nordic Biogas 2016 Tuomas Hakala Public

26 Thank you CONVION Tekniikantie 12, FI Espoo, Finland