Telco Energy and Infrastructure Efficiency Alkammonia and Cleancom - - PowerPoint PPT Presentation

Telco Energy and Infrastructure Efficiency Alkammonia and Cleancom Projects November 2014 Robert S Kelly

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Alkaline Fuel Cells for Off-Grid and Back-up Power

Bob Kelly

AFC Energy

Joined as April 2013 Leads global strategy

Air Products USA

7 years focused on industrial hydrogen Lead the Hydrogen Energy group for Americas/Asia 20 + installations

Industry History

BP Chemicals SOHIO Thermal Ceramics

International Speaker US/Asia/Europe/S America/Eastern Europe

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• Alkammonia

– Development of NH3 feedstock fuel cell system

• Project Clean com

– Deployment feasibility study

References to:

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Executive Summary

Current Market:

• The rapid growth in the market for mobile

communications has seen a massive deployment of cell tower installations globally. Where grid stability (electricity) is unreliable a market currently exists for

• Off grid (prime power)
• UPS
• These markets are currently served by a variety of

energy sources notably

• Diesel generators
• Hydrogen (PEM) fuel cells

Executive Summary Technology

Technology:

• A key component of the project is to use ammonia as a fuel for

the AFC systems.

• AFC’s have an inherent advantage in that they can tolerate

traces of ammonia

• The technology is within AFC current core competence

Commercial proposition:

• Calculations show that the TCO for an ammonia system is

competitive with diesel.

• The larger UPS market would be targeted subsequently based
• n the success of off grid installations.

Technical Feasibility

Current Technology

Hydrogen Cylinders Hydrogen Cylinders

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Comparable Technology

Ammonia cylinders 10 times the energy content than hydrogen cylinders Ammonia cracker Existing technology that needs to be adapted for the application Existing AFC V3 stack AFC Balance of Plant To be developed based on Alpha and Beta system designs

Electricity to the customer

Initial system design (Alkammonia)

High level System P&ID developed for Alkammonia

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Initial system design (Alkammonia)

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Commercial Feasibility

High Level Business Case

Mobile communications growth has led to a rapid increase in cell tower installations globally

• Where electrical grid stability is unreliable a market exists for:
• Off grid primary power
• Uninterrupted power supply (UPS)
• These markets are currently served by a variety of energy systems, notably
• Diesel generators
• Hydrogen (PEM) fuel cells
• Main primary power markets
• Africa
• Quickly developing market
• Tens of thousands of towers already
• Very unreliable grid
• India
• 500,000 telecom towers in India alone1
• Set to double in the next 4-5 years2
• 95% of all sites in India require a back-up generator3
• The assoc. of mobile operators (GSMA) acknowledge the potential of fuel cells
• GSMA see ammonia (NH3) as a suitable fuel

1: The Economic Times, Jun 6, 2012; 2: Several sources, i.e. rcrwireless.com 2011, 3: GSMA report: “Energy for the Telecom Towers”, 2011

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Off Grid the challenge

• It is estimated that as many as 1.6 billion people exist without

the security of available energy.

• A significant number of these people live in third world or

emerging nations

– Example approx. 65% of Africa's population are not grid connected.

• The use of solar/wind has gone someway to tackling the

problem however issues remain to establish alternatives to local (rental) generators that(running on diesel) are CO2 positive to the environment and expensive to maintain and secure.

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Extract from Lightingafrica

Africa is home to one of the world’s largest off-grid populations; approximately 590 million people live with no connection to their national electric grid. As a result, large segments of the continent’s population rely on hazardous forms of flame-based lighting, which produce very low levels of light output and require regular purchase of fossil-based fuels. This off-grid population presents a sizeable market opportunity for producers of low-cost alternative lighting products, such as those that are LED based and charged through solar or other means. The Lighting Africa initiative aims to address the lighting needs of off-grid populations by making safe, affordable, durable, and environmentally sustainable lighting available to the masses. Lighting Africa recognises that engaging in this emerging market is a challenge to manufacturers that require in- depth market research to design, develop, and deliver products and business models suited to local market needs. Lightingafrica.org Key Drivers:  Cost  Portability  Ease of replenishment  Safety

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AFC Right to Play

• AFC has the ability to

– Replicate the current business model – Offer longer runs (hrs) – Offer lower costs of ownership – Eu funds (minimum AFC investment)

• AFC has the right to play in this space

Basic Running Costs (Time)

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Fuel 1.5Kw load Hydrogen 65kg cylinder = 8kWh or 5 hours Methanol 2 litres/hr Diesel 1.25 litres/hr Ammonia 68kg cylinder 260kWh 7 days

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Strategy for entering the Off- Grid power market

Strategy

• Develop a small scale unit using existing AFC

technology

• Utilize existing grant funding
• Derive and develop a business structure leaving the

new venture as a standalone business

• Possibly vertically integrated.
• Possible group/subsidiary formed

Off Grid the challenge

• The largest market for potential customers of off-grid power falls outside the

developed world, where long standing infrastructures exist today. Approximately 1.6 billion persons globally, representing >20% of the our global community are yet to have access to electricity mainly in

• Rural Asia (including Russia)
• The African continent and particularly

– Sub Saharan Africa.

• Conveniently for the purposes of this analysis, sub Saharan Africa holds potential

for the deployment of ammoniac fuel cells based on the presence of existing merchant business via Afrox (Linde)

• According to the A.R.E. (Alliance for rural electrification) over 80% of Africa's rural

population does not have grid access, and 550 million Africans do not have access to electric light.

• Even in relatively "developed" South Africa, 22 million persons lack electricity.

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Amenable Markets

• The project initially set goals of establishing the availability of

a sold market amenable to the use of fuel cells as a source of either back up or off grid power.

• The exhaustive nature of this exercise was negated to identify

geographical spaces where ammonia was available on an economic scale based on the TCO (total cost of ownership) for the system.

• The team took the lead from Linde gas, the world largest

supplier of merchant ammonia and used its product availability matrix to identify markets that would be immediately amenable to the use of ammonia as an energy carrier.

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Determining Amenable Markets

• The supply of industrial gases is essential a three fold

initiative. – Bulk pipeline – On site generated – Merchant

• Due to the inherent nature of the application and the remote

and varied location of the end user it was determined that a merchant (delivered) model would offer the best and most economic supply solution.

• Merchant models are heavily biased in terms of logistics and

supply frequency.

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Ammonia vs Diesel

• The global energy market has been a shift (since

2009) in the parity between oil (diesel) and natural gas (ammonia) prices. – The basic feedstock for diesel being oil and similarly the basic feedstock for ammonia being natural gas based on either fuel equivalence or simple feedstock value.

• Added to this to reduction in diesel subsidies we can

forecast that the gap between fuel costs based on energy equivalence will continue to widen.

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Ammonia vs Diesel

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Source US Department of Energy Increasing divergence in oil and natural gas prices

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Conclusion

• Based on
• A. Availability of ammonia region by region
• B. Desired/required energy costs
• The specified target market for immediate

evaluation and demonstration would be

– sub Saharan Africa – South Africa

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Financial Analysis

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• To be economically viable variable (fuel)costs must have a

diesel gallon equivalent of ~€ per kg of ammonia

• Based on survey results the viable sites for economic

demonstration would be

• These sites could be expanded based on the efficiency and

competitive nature of alternate technologies

City Tank Size 50 100 S Africa Johannesburg 68 kg   Pretoria 68 kg   Namibia Windhoek 68kg   Botswana Gaborone 68kg  

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Demonstration

Market Entry Demonstration

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• The data herein illustrates that there is an economic and compounding

environmental case for the deployment of a demonstration program in sub Saharan Africa.

• AFC Energy is in the process of securing additional grant funds to

validate the technology within this geographic space.

• Using the partners identified within the EU Tower Power project AFC

has secured grant money to deploy 40 units within the market space identified in this report by 2016

• African continent
• This work is now currently underway with appropriate go/no go

milestones within the process.

• Unofficially awarded by Fuel Cell and Hydrogen Joint Undertaking

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Why now?

• Mobile mast companies actively looking at new power systems
• Market for both prime and back up power systems now

developed for fuel cells

• Fuel supply is perceived as a bigger issue than a change to a

fuel cell

• Ammonia has become recognised as a suitable alternative fuel
• Currently available EU grants allow lower cost of market entry

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Bringing it all together

Thank you for your kind attention Questions ?

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