Presentation to ClientThursday, May 26, 2016

May Today’s Agenda  Problem statement  Fuel cell overview and types  Market overview  Utility interconnection  Different fuel types  Economics  Summary

May Problem Statement MidAmerican Energy desired an analysis of where fuel cell technology is and its economic feasibility for distributed applications. – Can fuel cell derived energy provide a competitive $ / kW to current energy production methods? – How do fuel cells function? – Where can fuel cells be utilized? – When can fuel cells be expected to reach market? – Who will benefit from fuel cell energy? – Why are fuel cells worth investing in? – What additional benefits and pit falls exist with fuel cells?

May Research Approach  Address the following: –Advantages / disadvantages of fuel cells –Electrical distribution issues and safety –Required resources –Market readiness –Economics –Life expectancy

May James Parker - Client MidAmerican Energy Brian Anderson EE Brad Davis EE Curtis Irwin EE Hamed Abdelsalam EE Dr. Vijay Vittal Faculty Advisor Fuel Cell Project Team

May Fuel Cell Overview 1.Extracted hydrogen enters the anode 1.Oxygen (Air) enters the cathode 2.Hydrogen electrons separate via anode catalyst; the electrolyte transfers the hydrogen ions only

May Fuel Cell Overview 3.Electrons are utilized in an external circuit for energy consumption 4.Electrons, hydrogen ions, and oxygen recombine into water

May Fuel Cell Types

May Common FC Specifications  Expected Life –Entire unit lasts approximately 20 years –Fuel Cell stack lasts about 40,000 hours –Increases based on capacity of operation  Efficiency –Typically between 30% and 50% (No CHP) –Decreases based on capacity of operation  All types can be used as CHP units

May Utility Implications  State of Iowa –Fuel cells not “Renewable energy sources”  United States Federal Government –May be considered “Renewable energy sources”  Department of Defense – Climate Change Rebate Program –$1000/kW

May Natural Gas Market Source: Natural Gas Annual, U.S. Department of Energy

May Natural Gas Supply & Demand Natural gas DemandNatural gas Supply

May Current Fuel Cell Market ManufacturerSizeUnits Installed Date of Commercialization FC Type Ballard250kW02004PEMFC FuelCell Energy 250kW20+Currently marketedPEMFC Plug Power25 kW78Currently marketedPEMFC Siemens Westinghouse 200kW 500kW 0250 kW, 10/ kW, 2005 SOFC UTC200kW250+Currently marketedPEMFC

May Applicable Size Range Source: American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) 2002 publication, Fuel Cells for Building Applications

May Initial Commercialization Source: American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) 2002 publication, Fuel Cells for Building Applications

May First Cost Estimates Source: American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) 2002 publication, Fuel Cells for Building Applications

May Utility Interconnection Major requirements for distributed power generation (DPG) summarized from the IEEE Draft Standard P1547 in three categories:  General requirements  Safety and protection requirements  Power quality requirements  Grid independent  Grid parallel

May  Voltage Regulation: –120/240V s-ph: max 126/252V and min 114/226V –600V 3-ph: max 630V and min 570V  System Frequency: –For system operating at 60 Hz ac, IEEE Standard 929 recommended range 59.3 – 60.5 Hz for low power system Interconnection: Gen. Requirements

May Interconnection: Gen. Requirements  Synchronization: –DPG shall not cause a voltage fluctuation at the PCC more or less than 5% of the prevailing voltage level  Monitoring Provision: –A DPG of 250 kW or larger shall have provisions for monitoring connection status, and real and reactive power output at the point of connection

May Interconnection: Gen. Requirements  Isolation Device: –A readily accessible, visible-break isolation device shall be located between the DPG unit and the area EPS  Grounding: –Grounding scheme and the grounding fault protection of DPGs should be coordinate with the EPS operators

May Interconnection: Safety & Protection  Voltage Disturbances: Voltage at PCCMax Trip Time V < 60 (V<50%)6cycles 60 <= V < 106 (50% <=V<88%)120 cycles 106<= V<132 (88%<=V<110%)Normal operation 132<=V<165 (110%<=V<137%)120 cycles 165 <= V (137%<=V)2 cycles

May  Frequency Disturbances: –Follow area EPS frequency normal range. Energize EPS within a specified time. Adjustable freq. range and disconnection delay time  Loss of Synchronism: –A DPG of 250 kW or larger equipped with loss of synchronism protection functions Interconnection: Safety & Protection

May  Reconnection: –A DPG energize area EPS, and remain disconnected until voltage and frequency have returned to and maintained normal ranges for 5 minutes  Anti-Islanding: –A DPG detects island condition and cease to energize the area EPS within 2 seconds of its formation Interconnection: Safety & Protection

May  Harmonics: Individual Harmonic Order (Odd Harmonics) H < 1111 <= h <1717<= h <2323 <= h <3535 <= hTTD 4.0 %2.0 %1.5 %0.6 %0.3 %5.0 % Even harmonics are limited to 25 % of odd harmonics Interconnection: Power Quality

May  DC Current Injection: –A DPG and its interconnection system shall not inject dc current greater than 0.5% of its rated output current into the area EPS at the PCC  Flicker: –Objectionable when it causes a fluctuation of the light level –A DPG shall not create objectionable flickers for other customers on area EPS Interconnection: Power Quality

May Fuels  Five types of fuel: 1.Hydrogen 2.Natural gas 3.Methanol 4.LPG (Liquefied Petroleum Gas) 5.Coal gas

May Fuels  Hydrogen –No adequate production and transportation infrastructure to support hydrogen fuel cells for utility generation. – Current storage methods include compressed gas, liquid hydrogen, metal hydride, storage in pipelines and carbon-based systems. – Very high production and storage cost. –Second step in the U.S. Department of Energy's National Hydrogen Vision and Roadmap.

May Fuels Hydrogen Storage Cost

May Fuels  Natural Gas –Existing production and transportation infrastructure able to support use fuel cells as generation units. – Market ready Infrastructure Fuel cell design

May Fuels  Methanol, Fuel Oil, LPG, and Coal Gas –No adequate infrastructure to support fuel cells for utility generation. –Require storage tanks. –High cost of storage facilities. –Different safety measures depending on fuel type.

May Economics Overview  Economic feasibility  DoD application checklist / calculators  Results from field evaluations

May Economic Feasibility Cost of Electricity Pros: – Relatively less data intensive – Provides an indication of application feasibility Cons: – Estimating the thermal energy recovered from a fuel cell system, accurately – Determining the cost of utility supplied electricity and annual energy use Annual Savings based on Hourly Cost. Pros: – Provides a fact & data driven evaluation on application feasibility – Apply different operational strategies Cons: Large amount of data collection and evaluation must occur before the resulting annual savings value is established

May DoD Application Calculators DoD Fuel Cell - Interactive Guide Application worksheet DoD Fuel Cell - Step-by-Step Outline

May Field Evaluations 1MW ( KW paralleled PAFCs) 3/00 – 3/01 Site: USPS processing facility Anchorage, AK SCADA controlled multiple fuel cell dist. gen. Project cost: $5.5M - $5500/kW (R&D, manufacture, install) Two revenues: USPS prepaid $1M electric sales (3.6 cents/kWh) Excess power 2.5 cents/kWh Maintenance: $0.0273/kWh Fuel: $0.0342/kWh Operating cost: $0.0615/kWh Chugach Electric Association

May Field Evaluations Project declared commercial 11/00 18 unscheduled shutdowns for 221hrs of 14400hrs =98.46% March/ MBtu provided to site at no charge Reported that boiler fired only once during winter Problems: Fuel cell starting attempts Site management system (SMS) development Benefits: No need for UPS / diesel generator system because of SMS Thermal energy for building heating Grid independent and grid parallel operation Chugach Electric Association

May Field Evaluations Rock Island Arsenal MCFC Source: Engineer Research and Development Center / Construction Engineering Research Laboratory, Molten Carbonate Fuel Cells (MCFCs) for Department of Defense Applications, pg. 122, November 2000, ERDC/CERL TR-00-34

May Field Evaluations Rock Island Arsenal MCFC Source: Engineer Research and Development Center / Construction Engineering Research Laboratory, Molten Carbonate Fuel Cells (MCFCs) for Department of Defense Applications, pg. 122, November 2000, ERDC/CERL TR-00-34

May Economic Considerations  High electric to natural gas ratio  Over sized steam reformer For the production of hydrogen as a third benefit  Electrical and thermal load profiles  Natural gas rate structure  Capacity factors above 50%  Independent power producers: off-peak sales  Fuel cell production volume  Existing infrastructure

May Summary Many factors need taken into consideration when evaluating a site for fuel cell installation. By covering the types of fuel cells, market readiness, available fuels, and economic considerations can we begin to understand the variables that determine feasibility. Therefore, only through intense data collection of electrical and thermal needs for a specific application can a determination be made.

May Questions?

May Thank You!