Fuel Cells: The most efficient electrical generator :

1. Fuel Cells: The most efficient electrical generator: Robert Morgan UK Manager Ceramic Fuel Cells Ltd. April 3rd 2014

2. UK Electricity Market Centralised Electricity Efficiency: • Influenced by generation efficiency • Influenced by transmission efficiency Carbon Intensity: • > 500 g/CO2/ kWh

3. Centralised electricity generation overview

4. Around 70% of the electricity consumed in the UK is produced by burning fossil fuels • Coal • Coal-fired power stations typically have an efficiency of up to 38%, • Remaining energy being rejected to atmosphere • The average supply efficiency figure is around 35% at the point of use, allowing for losses during electricity transmission and distribution. • Gas – Combine Cycle Gas Turbine (CCGT) • CCGT increases the power output by using heat recovered from the gas turbine • Generating efficiency of a CCGT power plant ranges from 40% to 55%, depending on the mode of operation, with the remaining energy rejected to the environment. • Supply efficiencies of up to 47% are achievable.

6. Transmission losses: • Overall losses in the national grid are low at <2% • There are significant further losses in onward electricity distribution to the consumer, causing a total distribution loss of about 7.7%. • Losses differ significantly for customers connected at different voltages; • High voltage the total losses are approx 2.6%, • Medium voltage 6.4% • Low voltage 12.2%.

7. Carbon Intensity of the UK grid

8. What about economies of scale? £0.14/kWh Value of electricity generated £0.045/kWh CFCL’s SOFC – Solid oxide fuel cell PEMFC – Proton exchange membrane fuel cell MCFC – Molten carbonate fuel cell CCGT – Combine cycle gas turbine 8

9. Types of fuel cell available

10. All fuel cells produce electricity and heat through an electrochemical process using an electrolyte, a cathode and an anode. They transform the chemical energy liberated during the electrochemical reaction of hydrogen and oxygen into electrical energy. How do fuel cells work

11. Types of fuel cell 11

12. How do fuel cells work ?

13. - the electrochemical reaction of hydrogen and oxygen into electrical energy How do fuel cells work Atomsare the smallest units which consist of protons, neutrons and surrounded by electrons. The number of protons is always equal to number of electrons and thus an atom has no charge. E.g. C, O, N are atoms. Molecules are combination of atoms with bonds. Molecules are created by bonded atoms when electrons fill up the outer orbit of each atom. E.g. H2, O2, CO2, N2

14. SOFC & PEMS fuel cells - Solid Oxide Fuel Cells & Polymer Electrolyte Membrane fuel cells

15. SOFC fuel cells - Solid Oxide Fuel Cells operate by reforming methane. SOFC fuel cells can operate using either 1/ Methane CH4 from natural gas 2/ Methane CH4 fromrenewable Biomethane f

16. Methane reforming: Using steam • CH4 + H2O = 3H2 + CO Endothermic – cools the fuel cell ‘stack’

17. Methane reforming: Using steam • CH4 + H2O = 3H2 + CO Endothermic – cools the stack Fuel Cell Reaction: • H2 + O2- = H2O + 2e- • CO + O2- = CO2 + 2e- • Releases electrons = electricity • Resistance to current heats stack • 7 Heat proportional to I2R- Exothermic reaction – heats the stack

18. The structure of a SOFC

19. SOFC Fuel Cell

21. SOFC Energy Balance

22. Energy balance… at 60% • At 1.5 kW export power 0.17 kWe Electrical parasitic losses for system operation (including grid connect inverter) 1.67 kWe 1.5 kWe Export to grid 2.48 kW Gross stack power (DC) Net power (AC) Gas Input (LHV) Heat recovery system2 ‘Useful’ Heat Up to 0.54 kWth 0.81 kWth Heat 1 0.12 kWth Lost exhaust heat 0.15 kWth Heat loss from Gennex 1. Including some HHV (latent heat) recovered from the fuel input 2. Based on exhaust gas cooled to 30° C 22

23. Carbon savings BlueGEN offers significant benefits in terms of carbon savings when compared to today's grid electricity The carbon intensity during generation is around 240g CO2/kWh compared to the grid at over 500g CO2/kWh

24. What do stationary fuel cells look like ?

29. Balanced Flue & Heat Recovery Sealed Cabinet Gennex Module (Fuel Cell Stack inside) Power System Gas Safety Electronics (GSE) Gas Desulphuriser Water Treatment System Gas Delivery System Air Delivery System Condensate Recovery System System Components

30. Monitored European Installations

31. United Kingdom Germany Japan Netherlands France Switzerland USA Italy Australia Customers worldwide in the last 21 years

32. DECC & government policy • “The Big Six need to become the Big 60,000.“ Greg Barker DECC - Sept 2013 • Big bets on gas - fracking, US shale gas imports, new gas storage • Return to an expansive nuclear programme • Observing the crisis in Germany caused by the nuclear policy – e.g. RWE - Npower & EON , new CCGT plant redundant • Renewables on the grid and political interferencewill destabilise the UK power companies and may lead to power shortages and a lack of investment in generation and distribution.

33. Factors behind the move from centralised to decentralised electricity production • Aging grid with instability and connection limitations • Inefficiencies of the grid in delivering power across the UK • Unpopular reliance on “The Big 6” power providers • Projected reduction in reserve margin of generation below 5% • Renewables like wind & solar are intermittent and require demand side management and/or energy storage • Nuclear is expensive, slow to deliver capacity and controversial • Energy is becoming a political issue since 2012 • Preparation for future smart grids & Virtual Power Plants

34. Your own local Power-plant Net Power production: 13,000 kWhel/year for direct use or grid feed-in Net Heat production approx: 5250 kWhth/yr or. ~ 200 Litres Hot-water each day BlueGenPower:1.5 kWel / 0.6 kWthElectrical efficiency: 60%Thermal efficiency up to 30% Input Natural / Bio-gas24.000 kWh / year 2500 m3 35

35. Applications in the UK Market

36. Social Housing Tackling Fuel Poverty – 4.5m - 17% of homes in UK

37. ESCOs

38. Small to Medium sized businesses • SME’s with consumption between 13,000 & 150,000 kWh p.a. • SME’s where no space exists for PV, wind or biomass • SME’s where electric heat or limited heat is required • * Current limitation by number of electricity meters

39. Residential • HNWI & early adopters – 10,000 + kWh • Private residential blocks in cities with electric heat • * Current limitation by number of electricity meters

40. Future Direction for fuel cells

41. Confidential Technology and products • BlueGen • Micro generation unit • Continuous power plus hot water • Connects to existing heating and hot water systems Key facts • 1-2 kW power, 24/7 • ~13,000 kWh power per year • Plus 200 litres hot water per day • Up to 60% electrical efficiency - higher than any other small-scale power generation technology • Plus up to25% heat efficiency • Generates all the power for an average home over a year plus export to the grid • Remotely controlled over the internet • Quiet, unobtrusive Same technology platform creates different products & customer offerings • Integrated mCHP • Fuel cell plus boiler • Makes power, hot water and space heating • Replaces old heating systems • Made by appliance partners Fuel cell module 42 42

42. Thank you..... www.cfcl.com.au www.bluegen.info Robert Morgan – UK Manager 43

43. UK feed in tariff – over £2000 from April 2014 • Generation Tariff: • 13.24 pence per kWh paid for all power generated • 13,000 kWh x 13.24 p/kWh = £1721 • Feed in Tariff: • 4.77 pence per kWh paid for power exported to grid • (50% deemed export basis ) • 6500 kWh x 4.77 p/kWh = £310

44. Case Study The Madeley Centre

45. Case study: New Build “retrofit” • Plant room installations • Installation is at the Madeley Centre, near Crewe • Installation includes a ground source heat pump and a large pre-heat tank • Electrical efficiency is the same as in all BlueGEN installations • Overall gas to heat efficiency up to 212% LHV 191% HHV 46

46. BlueGen + Heat Pump (illustration) Illustration purposes only

47. Case study: BlueGEN plus heat pump numbers 48