Rugged Fuel Cells: Clean power from dirty fuels · Rugged Fuel Cells: Clean power from dirty fuels...

Rugged Fuel Cells:Clean power from dirty fuels

PointSourcePower

Michael Lebow

Team

2Copyright © 2013

Jon BachmanPhD Chemical Engineering2018

Ben BayatMBA 2014

Mike Lebow (Team Lead)MBA2014

James TinkerMDP2014

Ari van SchilfgaardeJD2015

Sibel LeblebiciPhD Materials Science2015

Cleantech to Market Team

Point Source Power Team

Craig JacobsonInventor, Co-Founder, CEO

Michael TuckerElectrochemical Technologies GroupLawrence Berkeley National Laboratory

The off-grid natural gas market is growing

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4

Michael Lebow

(VIDEO TOUR)


5

Michael Lebow

(VIDEO TOUR)


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Michael Lebow

(VIDEO TOUR)


7

Michael Lebow

(VIDEO TOUR)


8

Michael Lebow

(VIDEO TOUR)


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Michael Lebow

(VIDEO TOUR)

Michael Lebow


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Venting = $6B worldwide

Off-grid natural gas wells require venting

198

116

Switch to Natural Gas Renewables

Pneumatic venting results in harmful emissions

11Note: 1 car picture = 1M carsCopyright © 2013


Cumulative Emissions Saved US, MMTCO2e, 2007-2011




48

116

150





Worldwide venting has the climate impact equivalent to 10M cars

48

116

150


14Source:Copyright © 2013

Double Bottom Line:

PointSourcePower

10M cars off the road per year

$6B annual savings


PointSourcePower

Clean power from dirty fuels

Michael Lebow

(TECHNOLOGY DEMONSTRATION)

PSP fuel cells use heat and fuel to generate electricity

16Source: Point Source Power, C2M Team analysisCopyright © 2013

O2 (air)

H2, CO, or CH4

Electricity H2O + CO2

Anode

CathodeElectrolyte650 to 900°C

Metal Support

Metal Support

Anode

CathodeElectrolyte

PSP fuel cells are ideal for conditions at the well pad


Traditional Fuel Cell PSP Fuel Cell

Anode

CathodeElectrolyte

PSP fuel cells are ideal for conditions at the well pad


Flexible FuelLow MaintenanceDurableRapid Start-upInexpensiveSmall Scale20 Year Lifetime

PSP helps off-grid natural gas wells save money

19Copyright © 2013

Electronic valve control & data acquisition

Natural gas wells Oil wells

Limited applications

Co-producing wells

On-grid wells


Off-grid wells

PSP helps off-grid natural gas wells save money

20Copyright © 2013


Natural gas wells Oil wells

Limited applications

Co-producing wells

On-grid wells


Off-grid wells

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PSP fuel cells are applicable at off-grid wells

PSP fuel cells are applicable at off-grid wells


Valves are a major source of methane emissions at the well pad

$ CH4

Pneumatic Valves

Source: EPA, Inventory of U.S. greenhouse gas emissions and sinks: 1990-2011; EPA 430-R-001Copyright © 2013

($2,200)per well

Venting from pneumatic valves accounts for 52,560 scf/yr per device

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Fuel cell power and electric controls provide significant advantages

Fuel Cell

Electric Valves

$1,700per well

Electric valves eliminates venting and only use 20% of previously lost gas

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Fuel cell power and electric controls provide significant advantages

Fuel Cell

Electric Valves

$1,700per well

Electric valves eliminates venting and only use 20% of previously lost gas

12

Benefits of electric controls:• Eliminate natural gas venting• 27 month payback period• Remote visibility and control• Increased safety• Regulatory compliance

Current strategies to electrify wells are problematic

Natural Gas Generators Solar

Diesel GeneratorsDiesel Generators

Source: C2M team interviews and analysisCopyright © 2013 13

Current strategies to electrify wells are problematic

Natural Gas Generators Solar

Fuel too dirty Unreliable

power

Diesel GeneratorsDiesel Generators

Require fuel

delivery

Source: C2M team interviews and analysisCopyright © 2013 13

TechnologyCost Total Cost of

Ownership(20 years)

Payback Period (months)

Capital Operational

PSP Fuel Cell $2,250 $750 $17,250 27

Diesel Generator $950 $2,200 $44,950 Never

Natural Gas Generator and

Membrane$2,900 $1,000 $22,900 47

Solar Panels and Batteries $12,800 $2,160 $56,000 Never

PSP fuel cells have a cost advantage over competitors

28Copyright © 2013

PSP has a market opportunity of $880 million

29Copyright © 2013

AggressiveConservative

PSP

Mar

gin

Natural Gas Well Electrification Market RangeWorldwide, 2015, USD Millions

25% 50% 75% 100%

50% $147M $293M $440M $587M

75% $171M $343M $514M $685M

100% $196M $392M $587M $783M

125% $220M $440M $660M $880M

Amount of Market Captured

U.S. Gas WellsThousands, 2001-2020(e)

The US is responsible for 20% of world production

0

100

200

300

400

500

600

700

800

2001 2010 2020

Projection

EPA is tightening regulations to greenhouse gas emissions

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Note: A gas well is defined by how much gas is produced compared to oil, and varies state by state. Source: EPA New Source Performance Standards (40 CFR Part 60 Subpart OOOO) (Oct. 15, 2012), President’s Climate Action PlanCopyright © 2013

20152013 2014

EPA publishes new emissions regulations for fracked gas wells

Ventingprohibited

Green completions required –flaring prohibited

Low bleed pneumatic controllers required upstream from processing plant.

Pneumatics banned?Extensive electronic leak monitoring required?

Confirmed regulations

Potential actions

PSP has three possible go-to-market channels

31Copyright © 2013

Benefits Strong influence& need

A few big players

Compelling value proposition

Drawbacks Fragmented market Limited motivation Limited influence

Exploration & Production

1 Contract Drilling

2Electric Valve Manufacturing

3

Maintain strategic flexibility while establishing a beachhead

PSP needs $5M to deploy a product in 3 years

32Copyright © 2013

201620152014

KeyActivities

Design 500 Wprototype

Test and refine in the field

Deploy full-scale products to beachhead

Funding Needed $1.5M $1.5M $2M

Time Required 12 months 9 months Determined by market

adoption rates

Phase 1 Phase 3Phase 2

Milestone to Achieve

Deploy 500 Wprototype in field

Start pilot manufacturing

Start manufacturingat scale

Deploying PSP fuel cells at off-grid well sites delivers a double bottom line

33:Copyright © 2013

10 million cars

$880 M

Market opportunity

Need Alignment Timing

Questions


PointSourcePower



Appendices


PointSourcePower


Vented Gas Calculations

Source:Copyright © 2013

• 210.3 Bcf vented in US production sector annually1

• 20% of this is from pneumatic valves1

• The US accounts for 19.2% of world production2

• Price of NG at wellhead is $2.66 /1000 scf3

210,000,000,000 𝑠𝑐𝑓 ∗0.2 𝑓𝑟𝑜𝑚 𝑝𝑛𝑒𝑢𝑚𝑎𝑡𝑖𝑐𝑠

0.192 𝑓𝑟𝑜𝑚 𝑈𝑆 ∗$0.00266

𝑠𝑐𝑓 = $5.83𝐵

1US Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse GasEmissions and Sinks: 1990-2011 (Environ Protec Agency, Washington, DC), 2013

2Central Intelligence Agency (CIA). The World Factbook. Natural Gas – production, 20133U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. U.S.

Energy Information Administration (EIA), 2013

Market Size Calculations• $1,500 to produce fuel cell and all other components• 33,411 new pneumatics in the US per year1

• 19.2% of natural gas is produced in the US2

• 1 fuel cell per new pneumatic

𝑆𝑒𝑟𝑣𝑖𝑐𝑒𝑎𝑏𝑙𝑒 𝐴𝑐𝑐𝑒𝑠𝑠𝑖𝑏𝑙𝑒 𝑀𝑎𝑟𝑘𝑒𝑡 = 33,411 𝑛𝑒𝑤 𝑤𝑒𝑙𝑙𝑠 𝑖𝑛 𝑈𝑆 ∗

.∗ $1,500 ∗ 𝐹𝑟𝑎𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡 ∗ (1 + 𝑚𝑎𝑟𝑔𝑖𝑛)

1US Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse GasEmissions and Sinks: 1990-2011 (Environ Protec Agency, Washington, DC),

20132Central Inteligence Agency (CIA). The World Factbook. Natural Gas – production, 2013

Cost Competitor CalculationsCapital Costs:• At 50% margin, fuel sell cost to consumer = $2,250• 1 kW Diesel Generator = $9501

• 1 kW Gas Generator = $1,0002

• Membrane for CO2/CH4 separation = $1,9003

• 1 kW Solar Panels = $2,0004

• 72 kWh of batteries = $10,8005

Operational Costs:• Fuel cell replacements = 1/3 capital cost = $750/year• 0.28 L fuel burned per kWh in diesel generator6 * $1.05/L * 8760 h/yr =

$2,575/yr in fuel cost• $1,000/yr in membrane maintainance3

• Battery lifetime is 5 years5

Payback Period:• $2,168/well vented, 20% consumed in FC

1Honda Generators: Portable Generator Power for Home, Work, and Play. Honda.com2Inverter Generator with CMD Triple-Fuel System. Honda.com3Hybrid Membranes with Metal-Organic Frameworks for Carbon Dioxide Removal from Natural Gas, 2013 NSF SBIR 0074Amazon.com5Tesla.com6Cummins Power Generation : Model DGDB. Cumminspower.com

Car equivalent to pneumatic venting• Annual CO2 emissions from one vehicle: 5.1 metric tons CO2

– Source: “Greenhouse Gas Emissions from a Typical Passenger Vehicle” EPA “http://www.epa.gov/OTAQ/climate/documents/420f11041.pdf

• Table

– Source: EPA Report: “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990–2011”

. . . . . Tg CO2eyrs × tons

Tg × car∙yr. tons = 1.7 million cars ~ 2 million cars in US


Reduced carbon intensity“The carbon intensity of the electricity produced fell by 13 percent from 2007to 2012. Emissions would have been about 314 MMTCO2 higher if the carbon intensity of the electricity supply had not declined and this accounts for most of the reduction in the carbon intensity of the total energy supply.

– Of this reduction about 198 MMTCO2 is due mainly to the shift from coal to natural gas.

– The remainder (116 MMTCO2) is largely the result of a 9-percent increase in non-carbon generation (renewable and nuclear).”

• Source: http://www.eia.gov/environment/emissions/carbon/


http://www.eia.gov/environment/emissions/carbon/

Natural gas can reduce US climate forcing emissions if venting can be reduced.

42Source: Climactic Change, EIACopyright © 2013

US Energy Mix and Corresponding Carbon Emissions 2005-2012, Tons and percentage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

4800

5000

5200

5400

5600

5800

6000

6200

2005 2006 2007 2008 2009 2010 2011 2012

Coal Emissions Natural Gas Other Carbon Emissions

Source: Allen, et. al “Measurements of methane emissions at natural gas production sites in the United States”, Proceedings of the National Academies of Science, (Sep 2013)Copyright © 2013

But leaks and accidental emissions are far larger than originally expected.

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Unless leakage rates for new methane can be kept below 2%, substituting gas for coal is not an effective means for reducing the magnitude of future climate change.Wigley, T., “Coal to gas: the influence of methane leakage” Climactic Change, August 2011. Available at http://link.springer.com/content/pdf/10.1007%2Fs10584-011-0217-3.pdf

NOAA aerial monitoring of Denver-Julesberg and Uintah Basins indicates fugitive emissions equivalent to 4-9% of production. Pétron, G., et al. (2012), Hydrocarbon emissions characterization in the Colorado Front Range: A pilot study, J. Geophys. Res., 117.

Estimated Emissions Reductions from Pneumatics Controllers by Sector Tons per Year

310,678

165,333

44,284

520,507

639,341

Methane SavingsTotal Emissions

“Studies Find Methane Emissions in California and U.S. 1.5 Times Greater Than Expected”

http://link.springer.com/content/pdf/10.1007/s10584-011-0217-3.pdf

½ in ID electronic valve, $1261 ½ in ID pneumatic valve, $1122

1Solenoid Valve, ½ in. NC, 120V, Brass. Granger.com2Honeywell ½ in. NPT Two-Way Unitary Valve ( 1.6 Cv ) Item# 32544

Model# VP531C1000. Honeywell.com

Electric and pneumatic controllers

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Market Assessment


Market Assessment

There are a variety of possible applications for rugged fuel cells


Camping

Emergency preparedness

Wood Stoves

Research stations

Communication towers

Landfills

Size (W)

Oil Wells

Agriculture Waste

Rugged fuel cells are ideal for co-producing oil wells


Camping

Emergency preparedness

Wood Stoves

Research stations

Oil WellsCommunication towers

Agriculture Waste Landfills

Size (W)1

2

PSP’s customers are well services engineers

49Copyright © 2013

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