1. N Stationary Fuel CellsFor Commercial Real Estate May 19, 2010 Ryan Stepp Sales Manager / Business Development

2. What Are You Going to Learn?

Green Building

Focus Shift: from reducing energy consumption tosustainable energy generation.

Fuel Cells as Distributed Generation

Its about clean, highly efficient energy!

Savings & Incentives

Tax Credits, Rebates, Financing

How do Fuel Cells Compare to Solar?

Fuel Cells, Photovoltaics & Solar Thermal

3. Increasing Demand for Energy Solutions Worldwide electricity demand exceeds 20 trillion kW hours annually a$1 trillion+ retail market projected to grow 2.3% annually for the next 20 years Alternative energy solutions are needed; the United States utility grid cannot support this increasing demand Source: http://www.eia.doe.gov/cneaf/electricity/esr/table5.html 4.

Converging macro-trends favornew power solutions:

Utilities facing massive capitalexpenditures for cleaner powergeneration and transmission to keeppace with growth

Current alternatives constrained by cost,geography, intermittency, security & efficiency

Strong global political and societalsupport for energy alternatives

Fuel Cells offeraclean and efficient way to deliver a tangible return on capitaland an immediate reduction yourcarbon footprintFor the Future: Focus on Renewables at a Price 5. The Power of Efficiency

Energy efficiency measures to reduce consumption have been thelow hanging fruit

• Cost effective, long term, standard equipment & build practices today

• Buildings are becoming very energy efficient (Title 24, HERS, Utility EE programs)

Whats Next? Double Pane Windows High Efficiency Appliances Insulation Compact Fluorescent Light Bulbs 6. Fuel Cells as Distributed Generation

Its about clean, highly efficient energy!

Fuels, like natural gas, are a significant source of how we get energy today,and for the foreseeable future

Efficiencyis key to stretching our scarce fuel resourcesandreducing emissions now

Fuel Cells:One of the efficient ways to address todays urgent concerns:

• Criteria pollutants, CO 2,and climate change

• Rising energy costs

• Energy security

• Increasing demand on grid infrastructure

7. The Power of Efficiency (continued) 8. The Power of Efficient Energy Generation

• Small, mid-sized commercial rates in PG&E range from $0.12 - $0.18 per kWh

• A fuel cell system can operate for as little as $.02 - $.05 per kWh at current average natural gas prices

Example: Operation cost per kWh (year 1) 9. SDG&E Energy Generation Mix

Electricity Generation Mix (2008): Fuel Efficiency 1 CO 2Emissions 2

• 56% Natural Gas ~40% 1,100 lbs/MWh

• 15% Renewables ~90% zero

• 10% Coal ~30% 2,500 lbs/MWh

• 19% Nuclear ~80% zero

Heat Generation:

100% Natural Gas ~80% 550 lbs/MWh

Weighted Energy Mix

Typical Building in SDG&E Area

• Electricity 80% ~59% 1416 lbs/MWh

• Heating 20%

Fuel Efficiency measures fuel consumed and line losses vs. what is consumed by the building

CO 2emissions in pounds per MWh of energy consumed

SDG&E grid estimated to be 54% efficient and emits 866 lbs/MWh of CO 2

10. LADWP Energy Generation Mix A Time bomb?

Electricity Generation Mix (2008): Fuel Efficiency 1 CO 2Emissions 2

• 35% Natural Gas ~40% 1,100 lbs/MWh

• 20% Renewables ~90% zero

• 45% Coal ~30% 2,500 lbs/MWh

• 0% Nuclear ~80% zero

Heat Generation:

100% Natural Gas ~80% 550 lbs/MWh

Weighted Energy Mix

Typical Building in LADWP Area

• Electricity 80% ~59% 2060 lbs/MWh

• Heating 20%

Fuel Efficiency measures fuel consumed and line losses vs. what is consumed by the building

CO 2emissions in pounds per MWh of energy consumed

11. Tomorrows Energy Generation Mix

Wind

Solar

Geothermal

Bicycle

Fuel Cells

No transmission lines. Empower the energy user. Adding Clean Distributed Generation 12. Fuel Cells What Are They? 13. Ancient History of Fuel Cell Development

Humphry Davy of the Royal Institution discovers fuel cells

1839Sir William Grove demonstrates fuel cells

Francis Bacon shows the first prototype and gets a patent

NASA starts research on fuel cells

1965Gemini V rocket goes to space using fuel cells

Apollo 11 lands on the moon

UTC deployments of PAFC systems in the USA and Japan

95-03 Many PEM, SOFC, other fuel cell developments initiated

2003 ClearEdge Power started with the vision for fuel cell microCHP

14. Recent History of Stationary Fuel Cell Applications

All manned US space flights have fuel cells on board

• Space shuttle has three Alkaline fuel cell systems

• Cryogenic H 2and O 2as fuel

• Fuel cells provide drinking water for astronauts

Industrial / large commercial use of 200 kW+ fuel cell CHP

Japanese trials of 1 kW residential fuel cell microCHP

ClearEdge Power and Bloom Energy, new US products

UTC PAFC 200 kW FCEMCFC 300 kW PEFC (Japan) 1 kW ClearEdge 5 20 kW(4 x 5 kW) Bloom Box 500 kW(5 x 100 kW) 15. Types of Fuel Cells Used Today

Phosphoric Acid

• Typically > than 250kW

• Commonly used for: Large industrial/food processing

• Can run on bio-gas with anaerobic digesters

• Example: Gills Onions

Solid Oxide

• Typically > than 100kW

• Commonly used for: Office

• NOT CHP

• High temperature, low thermal cycle, high electrical efficiency ( x > 1kW

• Commonly used for: Transportation, Back-up power

• Example: Gills Onions

CHP PEM Fuel Cells???????????????

• Commonly used for: Large industrial/food processing

• Example: Gills Onions

16. Todays Energy From Fuel Cell CHP Systems

• Maximizing the value of scarce fuel resources

Whole Foods Supermarket Dedham, Massachusetts Boutique Hotel Palm Desert

• Heat & Power from one distributed generation source

Gills Onions Oxnard, CA 17. IN:Natural Gas Propane Bio-GasFuel Processor Fuel Cell Stack Power Inverter OUT:Heat OUT:AC Power How a Fuel Cell CHP System Works 18. Cell Voltage Phosphoric Acid (150C 180 C) - + H2 or Reformate How a Fuel Cell Works Cathode 2H+ + 2e- + O2H2O Anode H22H+ + 2e- 19.

Advantages

Highest efficiency device, mosteconomic value

• 90%, with over 40% as electricity

Cleaner: No burning of fuel

• Addresses all areas of EPAconcern

• • NOx

• • SOx

• • VOC

• • Particulates

• • Coal Ash

• • CO 2

Energy generation at point of use

• Relieves grid investmentrequirements

• Picks up future loads(electric cars)

Base load power - higher reduction inCO 2emissions and fossil fuelconsumption than equivalentsizedrenewables

Why a Fuel Cell CHP System?

Disadvantages

Today, runs on fossil fuels or biogas

• Future: on hydrogen fromrenewable source

Cost of Systems

• Grid parity in some areas(CA/NE/HI)

• Low volume production

• Cost of integrating w/ heat systems

Products relatively new to market

• Not well understood by publicand policy makers

Need to match CHP to heat load formax efficiency

20.

Domestic Hot Water Tanks

Radiant Heat Boilers

Pool & Spa Heat Systems

Forced Air Heating Systems

HeatCapturedIn Hot Water Storage Tank CHP Waste Heat Reduces Monthly Heating Bill Commercial Kitchens Forced Air Heating Pool & Spa Heating 21.

Power Essential Systems During Loss of Utility Power

Interior Lighting Systems

Refrigerators & Freezers

Communication Equipment

Computer Systems

Cash Registers

Landscape Lighting

Keep the Lights On - Avoid Missed Revenue 22. Smart Fuel Cell CHP Systems CentralData Server Web monitoring system (custom integration with other home monitoring systems possible) sends SMS or email to FSE in the event of an issue Each system contains 1 GB of NVMrolling memory , equivalent to a Black Box Real time monitoring of all safety and control parameters via remote HMI Real Time Data Real time customer interface iPhone & 23. Fuel Cell CHP vs. Solar

On a capital dollar invested basis, CHP technology outperforms solar power

• • 10xthe energy productivity

• • 2xfaster return on invested capital

• • 2xthe reduction in CO 2emissions

• • 2xthe reduction in natural gas consumption

• • 24/7all-weather; grid-connected orgrid-independent / back-up power

1) Grid Independent & Backup capability to be added in late 2010 *Solar Calculation Source: www.findsolar.com 24. 5kW Solar Panel Array Fuel Cell microCHP vs. Solar Comparison Solar Calculation Source: PVwatts1 Performance Calculator (San Diego Site 5kWFuel Cell 27kW Solar Panel Array *equipment space only; clearance spaces will vary Space Requirement High Efficiency 5 kW Fuel Cell 5kW Solar 27kW Solar Electric Production-Annual 43,800 kWh 8000 kWh 43,200 kWh Heat Production 51,000 kWh None None Space Required* 6 sq. ft. 500 sq. ft. 2700 sq. ft. 25. ClearEdge5 vs. SolarCO 2Reduction*CCNG power plant, PG&E 4.0Metric Tons per year 11.7Metric Tons per year 26. Integrated Energy Systems: ClearEdge5 and Solar PV

Dual System Integration:

• A second bi-directional meter needed

• ClearEdge5 supplements electricity generation directly to the power panel

• ClearEdge5 provides heat

27. Integrated Energy Systems: ClearEdge5 and Solar Thermal

Dual System Integration:

• One additional heat exchanger needed

• Two options for ClearEdge5 heat production:

• • Preheat water for solar thermal system to increase efficiency

• • Feed directly to a second hot water tank for pool, spa, fan coil

• ClearEdge5 provides electricity generation

28.

9 units 3x each building

$1M savings in construction costs

Eliminated need for solar thermal

Reduced amount of solar PV needed

Allowed for less expensive type of solar PV

Fuel Cells qualify for City of SD Green Building Program fast tracked through the permitting process

LEED Silver Project Energy & Atmosphere credits

Commercial Application Case Study Village Lindo Paseo Dormitories - San Diego, CA Design/Build, 193 room/386 bed student residence 29. Utility Bills How can a fuel cell impact my energy cost?

Small hotel: 30 rooms, laundry, spa,40 kW demand, 18 MWh/mo., 800 therms

Electricity Type Charge Before w/ 20 kW Fuel Cells Change

• • • • kW $8,781 $4,610 - $4,171

• • • • kWh $20,225 $4,656 - $15,569

• • • • Total Electric $29,006 $9,266 - $19,740

Gas Energy/transport $9,988 $17,997 $8,010

Total Energy Cost $38,994 $27,263 - $11,730

30% Expense Reduction! 30. What Incentives are in Place For Fuel Cells?

Federal Incentives

• ITC provides $3,000 per 1kW tax credit

• Grant in lieu of tax credit

• MACRS accelerated depreciation

CA SGIP Rebate

• $2,500 per 1kW on natural gas

• $4,500 per 1kW on diverted biogas (30 kW min)

Clean Energy Financing AB811

• Summer 2010

• $50,000 project cap

31. Integrating a Fuel Cell microCHP with the Building 32. How Does a Fuel Cell System Work with My Building?

Mechanical interface:

Natural gas line minimum, capable of 50,000 BTU/hour, 0.5 to 2 psi pressure

• Flex connections required

Minimum pad requirement: 34 x 46 x 8 deep, with #4 rebar, 12 OC

Clear service area: 3 feet on front and left side

Indoor install: 8 class D vent, 1000 cfm of make up air, condensate drain

• Gas detector required

• 14.5 stand for garage install elevation

33. ClearEdge5 Multi Unit Installation 34. Certification & Safety Requirements

Fuel Cell systems need to be certified by a Nationally Recognized Testing Lab (NRTL)

• CSA, UL, ETL (Intertech) are recognized

• ANSI / FC1-2004 is the standard

Safety codes that apply

• NFPA 853 Standard for installation of stationary fuel cell power systems

• NFPA 70 National electric code

Local building permit required

35.

Our Company:

Established in 2003

Headquartered in Portland Oregon, with offices throughout California

Direct distribution of our product

• Full control of lifecycle

• • Design & Manufacture

• • Installation & Permitting

• • Service & Maintenance

Experienced executives and engineers

• Possess extensive background in fuel cell design and integration

Our Products:

Designed to address the urgent concerns:

• Environmental impact

• Increased demand on grid infrastructure

• High energy costs

Manufactured in our 75,000 sq ft facility

Certifications:

• ISO 9001 Quality Management Systems

• ISO 14001 Environmental Management Systems

About ClearEdge Power 36. ClearEdge Power LEADING THE SMART ENERGY REVOLUTION Contact Info:Ryan Stepp, Business Development (805) 340-3626 [email_address]