The Palmdale Fuel Cell Project: Five-Year Review

SCAP Energy Management Committee Meeting

Mark McDannelLos Angeles County Sanitation Districts

July 28, 2009

Presentation Overview

Facility Descriptions and Design Parameters

ResultsLessons Learned & Conclusions

Antelope Valley Green Energy Program

Parallel renewable combined heat and power projects using digester gas

Similar size units at similar size plants250 kW Fuel Cell Energy molten

carbonate fuel cell at Palmdale 250 kW Ingersoll-Rand microturbine at

Lancaster

Palmdale Water Reclamation PlantPalmdale Water Reclamation PlantSTARTED: NOVEMBER 1952 CAPACITY: 15 MGD CURRENT FLOW: 9.2 MGD

Project Design Data

Manufacturer Fuel Cell Energy

Rated unit output, gross 250 kW

Net system power output 225 kW

Startup date 2005

Electrical efficiency (LHV) 47%

% of heat input recovered as waste heat

26%

Combined heat and power efficiency 73%

2005 Performance Test Data

Gross power output 251 kW

Electrical Efficiency 46%

Palmdale Fuel Cell Project

Fuel Cell Energy molten carbonate fuel cell

Capital cost $2.4 million

50% of cost recovered from SGIP

Fuel Cell Project Team

Quinn Power Systems Associates Prime contractor Operation and maintenance under contract to LACSD

Fuel Cell Energy- Fuel cell supplier Subcontracted to Quinn for fuel cell O&M

SCS Energy- Design and installation Gas treatment skid o&m

Facility ownership retained by LACSD

Fuel Cell Fuel Skid

Load Profiles at Palmdale Electricity Purchase Load Profile With and Without Fuel Cell In

Service (typical days)

0

50

100

150

200

250

300

350

400

0:00

0:45

1:30

2:15

3:00

3:45

4:30

5:15

6:00

6:45

7:30

8:15

9:00

9:45

10:3

011

:15

12:0

012

:45

13:3

014

:15

15:0

015

:45

16:3

017

:15

18:0

018

:45

19:3

020

:15

21:0

021

:45

22:3

023

:15

Time

Lo

ad (

KW

)

Fuel cell at full loadFuel cell out of service

Results

Plant PerformanceEconomicsSiloxane RemovalLessons Learned & Conclusions

Fuel Cell Availability and Capacity

58.2%

70.2% 69.8%

76.5%

42.6% 41.5%35.8%

31.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2006 2007 2008

Availability Capacity Factor

Fuel Cell Availability and Capacity

Availability has increased during the program

Capacity has decreased despite improvements in availability

Capacity factor well below 90% target

Breakdown of Downtime

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008

% T

ime

Un

avai

lab

le

Unknown/Other

Planned OutageDistricts' Equipment

SCE GridFuel Skid Outage

Power Equip. Outage

Palmdale Availability

Fuel cell balance of plant equipment Routine repairs on water treatment

systemMultiple significant fuel skid issuesFour electrode stack replacementsCarbon filter media replacement

Stack Replacements

Four stack replacements 3975 hrs - Replaced with new stack

design 2696 hrs – Stack degradation 5386 hrs - Sulfur poisoning & excessive

startups 9889 hrs - Sulfur poisoning

Causes of Capacity Reduction at Palmdale Fuel Cell

Frequent long time periods at reduced loads due to fuel cell issues

Variations in digester gas pressure due to issues with the fuel skid

Lower digester gas flows and higher methane content due to sewer cleaning

Defective stack installed in 2008

Causes of Capacity Reduction at Palmdale Fuel Cell, ctd

Long start up times after outagesParasitic Loads

Internal fuel cell loads of 18-20 kW not counted against net, but cost plant when fuel cell is in hot standby

Fuel skid, 25 kW (design value, not metered)

Three sulfur poisoning events have resulted in reduced power output for several months

Net Electrical Generation per Quarter

0

20

40

60

80

100

120

140

160

180

200

220

240

260

Q1

2005

Q2

2005

Q3

2005

Q4

2005

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Net

Po

wer

, kW

Rated Net Output

Other Issues at Palmdale

Integration into plant digester gas system including flare and boilers was complex

Remote monitoring and operation help minimize down time

Installation of natural gas line was necessary for backup and controlled shutdown

Capital Cost

Fuel Cell $1,178,000

Fuel Treatment Skid $201,600

Installation $526,301

Control Room Signal $2,895

Gas Piping Installation $2,511

Satellite Internet $5,328

Warranty $330,000

Sales Tax $113,817

SCE Interconnection $3,038

Natural Gas Piping $19,084

Total Capital Cost $2,382,574

SGIP Rebate -$1,125,000

Net Cost to Districts $1,257,574

Facility Economics (design, assuming 90% capacity factor)

Capital Cost $2,382,574

Subsidies $1,125,000

Net cost $1,257,574

Annual power purchase savings (at 90% capacity factor)

$227,000

Total subsidized production cost /kW-hr

$0.093

Operation and maintenance /kW-hr $0.035

Capital recovery /kW-hr $0.058

Retail electricity cost /kW-hr $0.128

Cost of Power Production

$0.190

$0.058

$0.049

$0.035

$0.041

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

Design 90% C.F. Actual

$/kW

h

Natural Gas

O&M

Capital Recovery

Average Retail Electrical Price

$0.093

$0.28

Net Savings per Year

2005 $66,5512006 $69,4522007 $46,5432008 $2,119

Cumulative Net Savings

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Dec-04

Mar-05

Jul-05

Oct-05

Jan-06

May-06

Aug-06

Nov-06

Feb-07

Jun-07

Sep-07

Dec-07

Apr-08

Jul-08

Oct-08

Jan-09

$1,257,574Capital Cost to Districts with

SGIP Grant

$184,665Net Savings Earned through Dec 2008

Siloxane Removal

Carbon absorptionAlso removes Cl, S to protect fuel

cellRequires periodic testing for

breakthroughShort term high siloxane levels

could cause undetected breakthrough

Criteria Pollutant Emissions

NOX 0.05 ppm @ 15% O2

0.0017 lb/MWh

CO 1.2 ppm @ 15% O2

0.025 lb/MWh

TGNMO 2.07 ppm0.016 lb/MWh

Sulfur Compounds

Raw Digester

Gas

Treated Digester Gas

H2S, ppm 20 ND<0.5*

Total Reduced Sulfur, ppm 20 ND<3.5

*Note-detection limit not sensitive enough to fully protect fuel cell

Trace Organic Compounds

Raw Digester

Gas

Treated Digester

Gas

Exhaust

Chlorobenzene, ppb 38 2.1 ND<0.05

Vinyl Chloride, ppb 2.0 0.38 ND<0.05

Benzene, ppb 26 2.4 0.95

Toluene, ppb 830 36 ND<0.27

Recent Operating Status

Stack replaced in Sep 2008.A leak in the new stack forced

reduction in output to 40 kW in Dec 2008

Operated at nearly 100% availability at reduced load

Fuel cell was shutdown June 11 upon discovery of sulfur breakthrough

Unit will not be restarted

Lessons Learned by LACSD

Ambient temperature considerations Chiller was undersized for high summer

temperatures Lower digester gas production during winter

months

Carbon media must be monitored and/or replaced periodically

Site involvementDigester gas system balancing

Lessons Learned by Fuel Cell Energy

Natural gas must be used as a backup fuel

A load bank should be installed to mitigate grid disturbances

Ensure proper maintenance of the fuel skid

Contracting Issues Impacting the Facility

These were demonstration projects; as such, providers would not provide availability guarantees

The current O&M contracts have no performance incentive or penalty: down time costs the owner but does not cost the contractor

Fast response not always justified by plant economics Other contracting options

Incentives and penalties for response time and availability Power purchase agreement, unit owned by provider or third

party These options are generally currently available

Conclusions

The Palmdale fuel cell did not meet performance goals

The Palmdale fuel cell met its goal to demonstrate a high efficiency, low emission technology on digester gas

As an early adopter, Districts allowed manufacturers to address and resolve design and operating issues

Questions?

Contact information mmcdannel@lacsd.org (562) 908-4228 x2442