Co-Production of Electricity and Hydrogen Using NH3-Fueled SOFC Systems

Co-production of Electricity and Hydrogen Using NH3-Fueled SOFC Systems

Pinakin Patel Randy Petri FuelCell Energy, Inc. Versa Power Systems Danbury, CT Denver, CO

Presented at

Ammonia Fuel Conference 2006 Golden, CO

October 9-10, 2006 Overview

! VPS Team Intro ! VPS SOFC Technology Status ! Ammonia fuel cell systems ! SOFCs & the Hydrogen Infrastructure ! Path forward

Versa Power Proprietary 2 Company Overview: Versa Power Systems

! A U.S. for-profit company with operations in Colorado and Calgary – Founded in 2001: a joint venture between the members of the Solid Oxide Fuel Cell Consortium

! Strategic Alliances – Cummins: mobile and small scale applications – FuelCell Energy: commercial and industrial DG/combined heat and power (CHP)

! Our product: planar solid oxide fuel cell system – Demonstrated ability to achieve high electrical power densities and long life using low cost materials – Validated manufacturing processes; scalable to high volume production rates

Versa Power Proprietary 3 U.S. DOE SECA: ~$1.5 billion Program ! Program goal: accelerate commercialization of low-cost SOFCs through attainment of technical and cost metrics

! VPS is part of two out of six industrial teams – VPS/FuelCell Energy – VPS/Cummins – General Electric – Siemens Westinghouse – Delphi/Battelle – Acumentrics

! $600MM of basic technology research is available to the industrial teams. Research conducted by— – MIT, University of Utah, UC Berkeley, Northwestern University, University of Wisconsin, – Los Alamos National Laboratories, National Energy Technology Laboratory, Pacific Northwest National Laboratory, Argonne National Laboratory, and Chevron Technology Ventures

Versa Power Proprietary 4 Introduction to Fuel Cell Technology ! A fuel cell is an electrochemical energy conversion device that generates electricity directly from electrochemical reactions between a fuel and an oxidant

! A solid oxide fuel cell is a high temperature electrochemical device with a solid oxide electrolyte that produces electric power from a variety of fuels (such as hydrogen, natural gas, propane or diesel)

! Higher efficiency than competing technologies Fuel

! The core SOFC cell is ceramic and has three principal layers – Anode, electrolyte and cathode – Inexpensive materials

Versa Power Proprietary Air 5 SOFC Principle of Operation

Air - —! = O + 4e 2O - - Cathode 2 + e e

CathodeO= Electrolyte O=

AnodeElectrolyte Fuel _ e- 2H + 2O= —! 2H O + 4e- 2 2 Anode e- = —! - 2CO + 2O 2CO2 + 4e

• Anode – nickel-zirconia cermet, ~ 1 mm thick RT PO2 (oxidant) • Electrolyte – yttria-stabilizedE = —— ln ——— zirconia———— (YSZ), ~ 5 µm thick • Cathode – conducting4F ceramic, PO2 (f u~e 50l) µm thick

Versa Power Proprietary 6 Benefits of Solid Oxide Fuel Cell Technology ! Customer & environmentally friendly – Quiet operation – Compact package for more flexible installations – Negligible emissions of air pollutants – Ideal for residential and commercial CHP

! Higher efficiency than competing technologies – SOFCs are expected to be around 50% efficient at converting fuel to electricity – In applications that capture the system's waste heat (CHP), overall fuel use efficiencies could top 80% – Higher efficiencies lead to lower emissions levels than competing technologies

! Adaptability to many practical fuels – Solid oxide fuel cells operate at high temperatures (around 650-1,000°C) – Removes the need for precious-metal catalyst, thereby reducing cost – Allows SOFCs to reform fuels internally, enabling the use of a variety of fuels and reduces the cost associated with adding a reformer to the system

Versa Power Proprietary 7 VPS Planar SOFC Design

8 Single Cell Test Trend Data Test #10545; (Long Term Test: TSC1, 10 x 10 cm2) Test Stand #6, January 9, 2002 - January 10, 2005

1.000

0.800 V

e 0.600 g a t l o Test Conditions: V 0.400 750°C, 556 mA/cm2 389 mA/cm2 Degradation rate: 54% fuel utilization: 1.3% per 1000 h 630 439 mlpm H2, 630 439 mlpm N2, 3% H2O 0.200 27% air utilization: (11 mV per 1000 h) 3000 2092 mlpm air

0.000 0 5000 10000 15000 20000 25000 Elapsed Time, h Long term benchmark testing achieves 26,000 hrs 9 VPS Cell Reliability

Test 101406: Steady-State Cell Voltage Degradation Over 250 Thermal Cycles

0.9

0.8

0.7 (V) 0.6

0.5 5 5 0 0 0 0 5 0 7 5 7 5 0 2 2 5 0 Voltage 6 5 7 5 1 7 2 1 1 1 1 2 2

0.4 C C C C C C C C C C C C C T T T T T T T T T T T T T Cell 0.3 Cell Dimensions 10 x 10 cm? T = 750°C 0.2 I = 0.500 A/cm? Ua = 25% U = 50% 0.1 f Fuel = 50:50 H2:N2 Mix / 3% Water

0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Time at Current (h)

VPS single cell demonstrated durability-- steady-state voltages after 250 thermal cycles and 4700 hours operation

Versa Power Proprietary 10 Stack Development Path Cell Component Stack Engineering Development Seal Integration

Interconnect

Contacts

Current Collection

Flow Management

Thermal Management Technology Manufacturability Stack Manufacturing Development Process Development Repeatability

Tolerance Versa Power Proprietary 11 Stack Performance - Characterization & Qualification -

Versa Power Proprietary 12 Development of Low Cost SOFC Manufacturing at Versa Power Systems

Tape Casting “T”

Screen Printing “S” The VPS “TSC” process for SOFC manufacture is proven: ! One firing step ! Cost effective Co-Sintering “C” ! High yields: a result of process control

Versa Power Proprietary 13 Stack Repeatability 28 Cell Stacks 60A, TC1 and 3 hour hold Min/Max/Average 1

0.9

0.8

0.7

0.6 e g a t 0.5 l o

V 0.4

0.3 28 Cell Stacks @ 121 cm2 active area 23.5% U , 28% U , 0.496 A/cm2 0.2 f a 42 slpm H2, 37.8 slpm N2, 84 slpm Air 0.1 725°C Furnace Temperature

0 9 0 1 8 2 6 7 3 5 4 4 5 3 2 1 0 6 9 8 7 0 6 6 3 4 1 5 2 5 9 2 9 1 0 7 8 8 6 3 4 7 5 4 1 4 0 7 9 9 3 6 3 8 2 5 2 8 7 0 0 0 0 1 1 0 1 1 1 0 0 4 0 1 0 3 1 3 3 2 2 2 2 1 2 1 3 1 2 3 2 3 3 3 2 3 2 3 2 5 5 5 5 4 5 4 5 4 5 4 4 5 5 4 4 4 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ------9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G

VeSrstaac Pko Nwuemr Pbreorprietary 14 Manufacturing Process Development

100%

80% t d u

60% l p e d t i l h s e Y g i o

u s Y C

o s s r d e 40% l s h c e e t i T t o c u r Y t u

o p s P p r s h o h s t P g C g s e

20% u c u o o o o r C r

r h h P T T 0% 1999: 16 steps/5 firings 2001: 14 steps/3 firings 2002: 10 steps/1 firing

Versa Power Proprietary 15 SOFC Power System Build-Up

-Up Ceramic cell Multi unit intercon+nects & cells are seals

form unit cell combined into stack Stack Fuel Reformer

Thermal Management The stack is integrated with the balance of plant components into a power Air system Blower Fuel Supply Power Electronics Controls

Versa Power Proprietary 16 System Testing

Versa Power Proprietary 17 3 kW Prototype System (3-1)

• Thermally integrated power system • Pipeline natural gas fuel • Autonomous control • Grid connected (parallel) • Designed towards applicable codes and standards compliance • Builds on the experience gained from >40,000 h of accumulated operation of previous prototypes

Versa Power Proprietary 18 The VPS SOFC Technology

System Stack Cell Demonstrated 3,400 8,800 26,000 Test Duration (hrs.)

System Stack Cell Demonstrated 3 40 250 Deep Thermal Cycles (TCs)

Cell System Stack Demonstrated 500 950 1,400 Power Density (mW/cm2)

Versa Power Proprietary 19 SECA Targets

SECA SECA SECA Minimum Requirements Phase 1 Phase 2 Phase 3 Power 3 – 10 kW 3 – 10 kW 3 – 10 kW

$US 800 / kW $US 600 / kW $US 400 / kW Cost @50,000 / yr. @50,000 / yr. @50,000 / yr.

Mobile - 25% Mobile - 30% Mobile - 30% Efficiency Stationary - 35% Stationary - 40% Stationary - 40%

Steady State Operation 80% 85% 95% - Availability <2% / 500 hrs. <1% / 500 hrs. <0.1% / 500 hrs. - Delta Power Transient Operation <1% / 10 cycles <0.5% / 10 cycles <0.1% / 10 cycles NG, Propane, NG, Propane, Fuel Type NG Diesel Diesel Maintenance Interval >1,000 hrs. >1,000 hrs. >1,000 hrs. Design Lifetime 40,000 hrs. 40,000 hrs. 40,000 hrs.

Versa Power Proprietary 20 Efficiency and Power Output Syste3m -Ef1fic ieSncyy & Psowteer vms. Time

. 45% 5.0

40% 4.5

4.0 35%

3.5 30%

] 3.0 ] % [ W 25% k y [ c

r n 2.5 e e i w c i o

f 20% f P

E 2.0

15% 1.5 NNete At CA CEf fEicfifeicniceyn (cPyM ()% [%) ] 10% Nominal Operating Condition CNalec.t NDeCt DECff iEcifeficniceyn c(y% [%) ] Temperature: 730°C 1.0 NNete At CA C(P wProMwtre) r[ k(WkW] ) 42 A (0.347 A/cm2) 5% 58% U , 43% U , 0.5 CNalec.t NDeCt DPCo w(Ce)r [k(kWW] ) f a

0% 0.0 0 168 336 504 672 840 1008 1176 1344 1512 1680 1848 2016 2184 Time Since Start [Hours] Versa Power Proprietary 21 Prototype 3-1 kW System Test Summary

DOE Target Result Fuel Type Natural Gas Pipeline NG Steady state degradation " 2% / 500 h 1.28% / 500 h Transient degradation over 10 cycles " 1% 0.87% Peak Net DC Electrical Power 3-10 kW 5.26 kW Peak Net DC Electrical Efficiency ! 35% 39.6% EOT Net DC Electrical Efficiency ! 35% 36.4% Availability ! 80% 98.6% Cost " 800/kW $773/kW

Notes: Hourly averaged data Efficiencies based on LHV Calgary pipeline natural gas

Versa Power Proprietary 22 VPS SOFC System Status & Markets

Early Adopter & Small/Med DG

Completed: $70MM 1-50 in Technology kW Development

Mobile 3-10kW APU

>100kW

Industrial CHP

Versa Power Proprietary 23 The Co-production Concept Using Ammonia

Electricity Ammonia Fuel Cell Hydrogen

heat 2NH3 N2 + 3 H2 (34 lbs) (28 lbs) (6 lbs)

Versa Power Proprietary 24 Ammonia and Different Types of Fuel Cells

Operating Type of Fuel Cell Potential Benefits Considerations Temp., °C Polymer Electrolyte 60-120 ! Reduced fuel ! Filter for trace Membrane (PEM) processing steps ammonia Phosphoric Acid 180-200 ! Moderate efficiency ! Ammonia cracker (PAFC)

Carbonate (MCFC) 600-700 High efficiency; Source of CO2 moderate simple system Solid Oxide (SOFC) 700-900 Simplest; highest Thermal integration system efficiency

SOFC is the Most Suitable Technology

Versa Power Proprietary 25 Ammonia Vs. Conventional Fuel Systems

ANODE GAS OXID.

AGO -1

S HEAT

U RECOVERY PRECONVERTER A P UNIT AFTER FILTER C N E A A O R S AIR N T O D H O H F E E PRECONVERTER D O C A E D T E E

R GAS DEOXIDIZER

ELECTRIC

HEATER

HUMIDIFYING NG/PROPANE EXCHANGER

DESULFURIZER WATER VENT RO/DI

Conventional Hydrocarbon-Based SOFC System: Highlighted fuel pre-treatment equipment increases system complexity and cost.

Versa Power Proprietary 26 Ammonia Vs. Conventional Fuel Systems

ANODE GAS OXID.

AGO-1

S HEAT U RECOVERY A P C UNIT N E A A O S R N T FRESH D O H O H AIR E E F D C O A E D T E AMMONIA E VAPORIZER R

AMMONIA

VENT/EXHUST

Candidate Ammonia SOFC System: Simple system with practically no fuel pre-treatment equipment.

Versa Power Proprietary 27 Ammonia and Propane System Costs and Cost of Electricity $/kW PSOFC ASOFC Fuel Processing 788 67 Fuel Cell Stack 1,079 636 Inverter 841 745 Auxiliary Equipment 231 127 Total Cost 2,739 1,575

Estimated Levelized Cost of Electricity, cents/kWh $5/MMBTU $10/MMBTU $15/MMBTU PSOFC 17.8 22.2 26.6 ASOFC 11.6 16.0 20.5

Ammonia can cost more than $6/MMBTU higher than propane and deliver the same COE.

Versa Power Proprietary 28 Old Generation Performance on Ammonia and Hydrogen (100 cm2, 2-cell Stack) 2.5 50

2.0 40

35 V W

1.5 30 ,

, e r g e a 25 t w l o o P V 1.0 Voltage, V(H2) 20 Voltage, V(NH3) 15 Power, W(H2) 0.5 Power, W(NH3) 10

0.0 0 0 5 10 15 20 25 30 35 40 45 Current, A Preliminary Data Indicates Performance Comparable to Operation on Hydrogen

Versa Power Proprietary 29 Ammonia Required for Co-production

Co-production Size of Fuel Ammonia Fuel Cell Cell Required Electricity Hydrogen Cars Served tons/day kW lbs/day Sub-MW 2.5 250 300 250

Megawatt 10.0 1000 1200 1000

Versa Power Proprietary 30 Ammonia & the Hydrogen Infrastructure

! Ammonia as a carrier of hydrogen has ~18 wt% capacity (DOE target: >6 wt%) ! Safety and handling systems are established ! Distribution system is reasonably developed in the US (pipeline, train, large, trucks) ! On-site extraction of hydrogen via catalytic cracking is commercially available & relatively simple ! Can be made from coal, the abundant feed stock ! Can contribute to the much needed “bridge” to Hydrogen Economy

Versa Power Proprietary 31 Ammonia Pipeline Infrastructure

MAPCO and GULF Pipelines

Versa Power Proprietary 32 Rural Electric Coop Operating Territories

Versa Power Proprietary 33 Co-op Electric Demand; Ammonia Production and Consumption

Coop Electric Consumption million kWh, 2000 30,000

Ammonia Production thousand mT, 2001 5,500

Ammonia Consumption thousand T, 2001 20 to 50 50 to 110 110 to 230 230 to 480 480 to 560

Versa Power Proprietary 34 Ammonia SOFC in Co-Op Applications- Perspective

! Rough Ammonia SOFC Consumption: – ~ 9 slpm/kW – ~0.9 lb/kWh ! Basis: Per 1% of Co-Op Annual Electric Consumption Converted to ASOFC: ~2BBkW-h ! At ~11,500 kW-h per household per year: – ~175,000 households – ~ 0.8 MM mtons ammonia consumed ! REF: Total US Ammonia Consumption 2005, ~14.7MM mtons Per 1% of Co-Op Electric Consumption Converted to ASOFC– This represents ~175,000 households, and ~ 6% of the annual ammonia consumption.

Versa Power Proprietary 35 Ammonia-SOFC Opportunities & National Economic Benefits

Features of ASOFC Potential Benefits Utilization of indigenous, domestic feedstock Improved energy security, reduced imports New use: creates additional demand and jobs

Versa Power Proprietary 36 Ammonia-SOFC Opportunities & National Economic Benefits

Versa Power Proprietary 37 Ammonia-SOFC Opportunities & National Economic Benefits

Versa Power Proprietary 38 Ammonia-SOFC Opportunities & National Economic Benefits

Features of ASOFC Potential Benefits Utilization of indigenous, domestic feedstock Improved energy security, reduced imports New use: creates additional demand and jobs Simple system, virtually maintenance-free, does not Attractive for remote generation in agricultural require water communities Utilization of fuel with an established infrastructure Easier introduction to market, no new investment in for distributed generation infrastructure, enhanced natural security (from rail and pipeline, to end user delivery system, servicing small-volume, widely dispersed agricultural customers) User acceptance already established Rural users of the ASOFC require no additional training or added familiarity

Versa Power Proprietary 39 Ammonia-SOFC Opportunities & National Economic Benefits

!Direct use of NH3 eliminates costly fuel processing equipment

Versa Power Proprietary 40 Ammonia-SOFC Opportunities & National Economic Benefits

!Direct use of NH3 eliminates costly fuel processing equipment Domestic manufacturability Creates new jobs, supports U.S. economic growth

Versa Power Proprietary 41 Ammonia-SOFC Opportunities & National Economic Benefits

!Direct use of NH3 eliminates costly fuel processing equipment Domestic manufacturability Creates new jobs, supports U.S. economic growth

Significant reduction in system cost Can Accelerate SOFC commercialization and export markets in general

Versa Power Proprietary 42