Transcript CFCL_Presentation_010604

Transformational Energy Futures
Efficient and clean energy for the world
Helen Millicer, I&PR Manager
Who is CFCL?
• Based in Noble Park (Melbourne), Australia
• Established 1992
• IPO July 2004
• 9000m2 of R&D and prototyping facilities
• Pilot SOFC production plant
• 100 employees
• European subsidiary established September 2004
Summary of Presentation
• Trends in world energy market
• New challenges of efficiency and emissions
• Disruptive technologies:
1. Micro-CHP and distributed generation
2. New energy for the future - fuel cell generators
World Energy Market Trends
Challenges:
Increasing population and industry activity
Pressures and mandates on efficiency, greenhouse and
particulate emissions
Increasing price of fuels and electricity
Falling supplies of conventional fuels
Ageing energy infrastructure
Solutions:
More efficient and cleaner systems
New energy sources
World Energy Trends – Government Actions
UK’s Prime Minister plans to raise energy performance
target in 2005 to 50% for new buildings, and 60% cut in
carbon emissions by 2050
Australia NSW adopts BASIX 5 Star program – 40% less
greenhouse emissions for all new residential
development by mid-2006
New York State to have 25% electricity supplied by
renewables, including biogas fuel cells, by 2013
German Government provides subsidies for fuel cell
technologies powered by biomass
German Government passes Law providing subsidy
incentive of 5 € cents for energy from small combined
heat and power systems
Regional Energy Costs
20
15
Retail Electricity
US$/MWh
10
Wholesale Gas
US$/Gj
5
0
Australia
USA
Germany
UK
Comparing stationary power systems
Centralised power:
• Coal – 25-40% efficiency, high emissions, constant power
• Nuclear – 40% efficiency, highly toxic long life waste,
constant power
• Gas – 30-50% efficiency, moderate CO2 emissions, generally
peak demand
Localised (decentralised) power:
• Solar – no emissions, intermittent power
• Wind – no emissions, intermittent power
• CFCL’s micro-CHP unit – 85% efficiency, variety of fuels, low
emissions, continuous power
CFCL’s sweet spot
CFCL’s market and product alignment
Market drivers:
• Price for electricity and fuel – Europe very high
• Fuel scarcity – Europe (importer of fuels)
• Efficiency imperative – regulations and Kyoto on users and
utilities - Europe
• Natural gas penetration – Europe extensive
• Industry framework and interest – horizontal integration and
government incentives - Europe
Product solution: 1kW micro-CHP domestic generator for Europe
CFCL path to market
1995 Technical review, 2 yr plan to progress from small to bigger
cell stack technology funded by existing investors, reach 5kW
1997 Technical review, further investment, Fed Govt R&D Start
Grant progress to 25kW stack, aiming at < 200kW generator,
problems with thermal cycling of large metal stack
1999 CFC becomes Co Ltd, Woodside and Energex grow to be
major investors, move to all ceramic smaller stack
2003 CFCL recognises market shift to micro-CHP and adjusts
business model to being provider of 1kW stacks to domestic
appliance manufacturers
2004 CFCL lists on ASX, IPO and cap raising $25M
Disruptive Technology
“Micro-CHP has a predicted capacity of similar order of
magnitude to the existing nuclear generating capacity in
the emerging liberalised energy markets in Europe. It has
the potential to substantially disrupt the established
electricity supply industry both economically and
technologically.”
EA Technology Ltd, UK, 2003.
Micro-CHP + fuel cell generator
CFCL 1kW micro-CHP
Existing micro-CHP Products
Sales: 13,000 in 2004
Market value: €112 million
Six products: 4 x 5kW, 2 x 1kW
Markets: Japan, Germany, catching up UK
Best Opportunities: countries with widespread
natural gas, high retail electricity prices, long
heating season*
* Fuel cells may reach 1:1 power to heat ratio, existing
micro-CHP reach 1:5 ratio
Efficiencies in Electricity Generation
Solid oxide fuel cells are recognised as potentially the most
efficient electricity systems in the world
Solid Oxide Fuel Cells combined
cycle plant
Electrical Efficiency %
70
60
50
Phosphoric Acid Fuel Cell
Advanced Steam Power
Plant
40
30
20
10
0
0.1
1
10
Power Plant Capacity (MW)
100
1000
Source: Siemens AG
Comparing electrical efficiency
100
80
60
Efficiency
40
Combined
20
0
SOFCells
PEM Cells
Coal
Gas
Energy Waste: CFCL’s CHP vs conventional
power plant and hot water unit
CFCL’s CHP unit – heat and
power delivered to site
Energy used to power CHP system .5kW, 20%
Transmission
losses 0 kW, 0%
Actual heat recovered used for hot water 1kW, 40%
Save 44% energy using CFCL’s CHP
unit instead of a conventional
electricity power plant and domestic
water heater
Actual electricity generated for use on site 1kW, 40%
Conventional power
station
Plus
Transmission losses
0.1kW, 10%
Wasted heat 2.15 kW, 66%
Domestic gas hot
water unit
Wasted heat energy .2
kW, 18%
Heat energy 1 kW, 82%
Outlet
Electrical energy 1.1 kW,
33.8%
Electrical energy for use on site
1 kW, 30.8%
Source: ABARE
2004
Emissions: CFCL’s CHP vs Conventional
centralised power plant and hot water unit
Emissions
(per kW energy output)
Option 1
Option 2
VS
CO2
CO2
534 g
900 g
NOx 0 g (Neg)
SOx 0 g
Plus Solid
Wastes
CFCL’s CHP combined
home electricity generator
and hot water unit alone
saves 54% CO2 emissions
CO2
261 g
NOx 4 g
NOx .5 g
SOx 10 g
SOx 0 g
Ash/Gypsum 50 g
Chloride/sulphate 20 g
Conventional centralised
power plant
Conventional home
gas hot water unit
Source:
ABARE 2004
Australian Government
European Market Opportunities for CFCL
100
100
6500
2008
0
1000
2000
3000
Gas Units
0.4
1
6100
2004
500
2000
5000
2012
4000
5000
Fuel Cells
6000
7000
8000
Others
Existing and growing EU market for new gas boilers (000 units sold p/a)
CFCL market calculations
Benefits of using fuel cell CHP units
• Have own reliable constant energy system, end
risk of blackouts
• Potentially reduce fuel bill and energy
consumption
• Sell surplus electricity to grid
• Replace two units with one – gas powered
generator and hot water unit
• Utilities defer cost of power station and networks
• Utilities and governments meet emission
requirements of Kyoto Protocol and legislation
Energy Business Models with micro-CHP
Residents in Tokyo, Japan, have the opportunity to provide power
and hot water for their homes using a fuel cell cogeneration
system developed by Tokyo Gas, Ebara Ballard Corp and
Matsushita Electric Industrial Co Ltd.
Cost: about US$9,550 (1 million yen)
Power: 1-kilowatt fuel cell system
Period: 10 years
Deal: customers also earn a 3 % discount
on their gas bills for 3 yrs and bills capped
at about $90 per month (9,500 yen).
How CFCL’s micro-CHP operates
2
2
1
1
1 – Fuel cell generator stack
2 – Hot water storage tank
6
3 – Heat exchanger & burner
65 45 4 3
3
4 – Fuel / air pre-treatment
5 – Waste heat recovery
6 – Mains power converter & controls
The building blocks - CFCL’s fuel cell
CFCL’s CHP Competitive Advantage
Not limited to hydrogen, own internal gas reformer
Able to use a number of gas fuels
natural gas
methane
LPG *
higher hydrocarbons : light napthia, low sulfur diesel
Able to use renewable fuels
biomethane (dairy, sewage) *
ethanol (from sugar, starch, cellulose) *
biodiesel *
coal seam methane *
hydrogen
* capacity identified
Fuel cell industry growth
CFCL operates in the
SOFC field
Source: Fuel Cell
Today, Dec 2004
Automotive fuel cells
Size range: 20-120kW
Fuel: Hydrogen (compressed, liquid): refueling
infrastructure very limited to date (about 70 stations
globally)
Demo cars - Toyota, GM, Honda
Commercial series: 2010 - 2015
Portable/miniature Fuel Cells
Distributed Generation
PAFC 200 kW
PEMFC 200 kW
MCFC 1 MW
SOFC 100 kW
MCFC 300 kW
SOFC CC 250 kW
Conclusion
The paradigm shift and deep cuts in energy and
emissions via micro-CHP and fuel cells:
1. Distributed energy – no transmission losses
2. Reduced capital cost
3. Efficient use of fuel ~ nearly 50% improvement
4. Cleaner air with nearly zero particles
5. Reduced CO2 greenhouse gas emissions ~ > 50%
Thank you,
Helen Millicer