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Best of Breed … Cost, Reliability, and Sustainability Power Quality Solutions for Industrial & Manufacturing

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Page 1: AP intro - Industrial June 2016_compressed 2

Best of Breed … Cost, Reliability, and Sustainability

Power Quality Solutions for Industrial & Manufacturing

Page 2: AP intro - Industrial June 2016_compressed 2

2Proprietary and Confidential | ©2016 Active Power Inc.

Our company saves nearly $200,000 per year in operating expenses, by eliminating power disturbances and keeping our semiconductor production lines running using Active Power UPS’s.”

Active Power Solves Industrial & Manufacturing Problems

In our highly sensitive manufacturing environment we needed a reliable UPS that could handle power disturbances and provide a bridge to generator during an outage. Active Power’s product has never failed.”

With the flywheel UPS, we never have to worry about losing power or productivity, and in a factory setting, having that peace of mind is invaluable.”

Unreliable utility power caused production downtime and economic losses at our bottling plant, until we installed Active Power UPS’s on our factory floor.”

1,330+ Units Installed • 325+ Customers • 44 Countries

Page 3: AP intro - Industrial June 2016_compressed 2

3Proprietary and Confidential | ©2016 Active Power Inc.

Global Competition Increasing levels of automation

Never ending quest …

• Process• Machine Control• Communications• Material Flow

• Higher Productivity• Improved Quality• Lower Cost

• Efficiency• Resiliency

Industrial Facilities Are Mission Critical

Page 4: AP intro - Industrial June 2016_compressed 2

4Proprietary and Confidential | ©2016 Active Power Inc.

Harsh Environments Remote Locations Critical Processes

• Unstable Grid• Dirty Power

• Continuous Operations

• Expensive Machines

• Expensive Raw Material

• Temperature• Air Quality• Safety is a Priority

Industrial Environment is Unique

Page 5: AP intro - Industrial June 2016_compressed 2

5Proprietary and Confidential | ©2016 Active Power Inc.

Active Power Provides Unique Advantages for Industrial & Manufacturing Facilities

Eliminates the costs associated with downtime and

necessary clean up

Protects against all power quality

issues

A great fit to integrate into your

operations and achieve your goals

Page 7: AP intro - Industrial June 2016_compressed 2

7Proprietary and Confidential | ©2016 Active Power Inc.

Flywheel vs Battery: The Advantages of Flywheel Technology are Clear

Flywheel Energy Storage Advantages 20 year operating life No degradation with use Limited maintenance required Operating temperature range up to 40C Compact, enclosed footprint If the flywheel is spinning,

power is available

Lead-Acid BatteryChallenges

Multiple replacements during UPS lifeFrequent use degrades lifespanSensitive to temperature variationsExtensive maintenance and monitoringExpensive safety and health systemsMost common reason for UPS outages

Page 8: AP intro - Industrial June 2016_compressed 2

8Proprietary and Confidential | ©2016 Active Power Inc.

Why Active Power? Power Quality Protection

Bottling Company

“ The lack of consistent and reliable power to support our operations was an ever present management headache before we installed CleanSource UPS. Since installation, we are very pleased with the improvement in our day-to-day operations.”

Page 9: AP intro - Industrial June 2016_compressed 2

9Proprietary and Confidential | ©2016 Active Power Inc.

Active Power Systems Provide Complete Power Conditioning

HarmonicDistortion

Line Noise

Transients

Spikes

Surge

Sag

Brownout

Outage

CleanSource UPS corrects all types of power problems by use of TVSS, line inductance, line capacitance, active filtering, power converters and flywheel energy. The UPS provides isolation at ALL TIMES (on utility, in discharge, and on generator).

CorrectedSine wave

Frequency

Page 10: AP intro - Industrial June 2016_compressed 2

10Proprietary and Confidential | ©2016 Active Power Inc.

Unmatched Reliability

Twelve times less likely to fail

Field proven to be the most reliable solution

Active Power CleanSource UPS

Typical UPS with battery backup

Mean Time Between Failures(including energy storage) 2 million hours Not published **

Demand failures of the flywheel energy storage system are extremely unlikely; if the flywheel is operational at the moment an outage occurs, the flywheel will almost certainly function.”

– Steve Fairfax, Mtechnology

Typical UPS with battery backup

Annual probability of failure*

Active Power CleanSource UPS

6.4%

0.5%

* Active Power White Paper #115, “Mitigating Risk of UPS System Failure,” Jan. 2016 ** UPS manufacturers only publish MTBF for UPS excluding energy storage (batteries)

Page 11: AP intro - Industrial June 2016_compressed 2

11Proprietary and Confidential | ©2016 Active Power Inc.

Active Power’s Limited Maintenance is a Benefit for Industrial & Manufacturing Customers

Limited maintenance requirements . . .1 non-invasive preventive maintenance per year

Bearing change every 3-4 years

. . . Minimize disruption and risk to your facility• Reduced downtime• Less time you’re unprotected• Fewer opportunities for human error

… … years

Page 12: AP intro - Industrial June 2016_compressed 2

12Proprietary and Confidential | ©2016 Active Power Inc.

A Great Fit

Glass Manufacturer

Active Power systems are small and durable, so I can fit ours right on our production floor. That helps me in my already too-cramped facility.”

Page 13: AP intro - Industrial June 2016_compressed 2

13Proprietary and Confidential | ©2016 Active Power Inc.

Smallest Footprint

Half the Space• The most power dense UPS on the market today• Perfect for retrofits & tight spaces• Ambient operating range up to 40C• More usable space for business purposes

Footprint comparison based on published specifications of equivalent 750 kVA units with four standard battery cabinets versus CleanSource 750HD UPS

Page 14: AP intro - Industrial June 2016_compressed 2

14Proprietary and Confidential | ©2016 Active Power Inc.

40% Total Cost of Ownership Savings

Key assumptions: 1 MW UPS capacity at 75% load; CleanSource HD 97.8% efficient; 750 kVA battery UPS: 96.5% efficient; 6 minute VRLA batteries w/ 5 year replacement cycle; $0.10/kWh energy cost

TCO ($ mil.)

Years

CleanSourceHD UPS

Over 15 years, total cost is3-5X the initial purchase

price

15

1.0

1.5

0.5

0.0

2.0

0 105

Additionalcost

$0.9M

$0.6M

$1.4M

$0.9M

$1.9M

$1.1M

CompetitorUPS

$800k savings over 15 years

Page 15: AP intro - Industrial June 2016_compressed 2

15Proprietary and Confidential | ©2016 Active Power Inc.

Active Power’s Solution Helps Customers Reach Their Sustainability Goals

• No hazardous materials introduced to your facility

• No spill containment needed• No added ventilation requirements• Does not emit harmful gases in to your air

• Safety• Completely enclosed – no open racks or

exposed power connections

• LEED certification points• Energy efficiency • No hazardous material

• No recycling / disposal responsibilities

Page 16: AP intro - Industrial June 2016_compressed 2

16Proprietary and Confidential | ©2016 Active Power Inc.

Smart and Responsible

Energy efficiency and permanent energy storage combine to make Active Power the smart and responsible choice

• 90% less carbon used in UPS manufacture• Over 40% less carbon emitted over 15 years

For a 1 MW facility, 1,800 metric tons less carbon emissions over 15 years.Equivalent to:

1,400 metric tons less coal mined

27,000 mcf less natural gas burned

14 fewer train cars of coal

4,700 fewer barrels of oil consumed

216 homes powered

400 fewer cars on the road

Page 17: AP intro - Industrial June 2016_compressed 2

17Proprietary and Confidential | ©2016 Active Power Inc.

Are We a Fit For Your Operation?

Ideas to move forward:• In-depth review of your requirements and specification• Custom TCO and sustainability analysis• Active Power customer case study examples• Active Power technical deep-dive

Eliminates the costs associated with downtime and

necessary clean up

Protects against all power quality

issues

A great fit to integrate into your

operations and achieve your goals

Page 18: AP intro - Industrial June 2016_compressed 2

18Proprietary and Confidential | ©2016 Active Power Inc.

Appendix

Page 19: AP intro - Industrial June 2016_compressed 2

19Proprietary and Confidential | ©2016 Active Power Inc.

Active Power Provides a Full Portfolio of Power Technology & Services

UPS Systems Modular Solutions ServicesFactory-built and tested electrical systems and modular data centers designed for low cost, rapid deployment, and superior management capability.

Preventative maintenance and support programs to ensure your critical power infrastructure operates with the utmost reliability.

Active Power's flywheel-based UPS solutions provide reliable, economical backup power for mission critical operations. • CleanSource HD UPS (750

kVA/675 kW) with a large system building block

• Modular and expandable CleanSource UPS (150 kVA to 1200 kVA)

Page 20: AP intro - Industrial June 2016_compressed 2

20Proprietary and Confidential | ©2016 Active Power Inc.

CleanSource 300 UPS CleanSource HD UPS CleanSource DC• 675 kW UPS• Parallelable for larger

applications• Largest, most cost

effective building block

• 250-500 kW DC energy storage

• Replaces or augments batteries in conventional UPS solution

• 150 kW – 1 MW single UPS solution

• Parallelable for larger applications

• N+1 energy storage available

• Flexible, modular design

CleanSource UPS Products

Page 21: AP intro - Industrial June 2016_compressed 2

21Proprietary and Confidential | ©2016 Active Power Inc.

DataHouse modular data center

PowerHouse modular power system

All-in-One IT, power, and cooling

• Containerized UPS and switchboards

• IT, power, and cooling in one system

• 5-10 racks

• White space for 10-20 IT racks

• Multiple cooling options

Modular Systems

Proven Capability • 200+ modules deployed globally• Standard products, infinitely customizable• Integrated design, manufacturing, services• Proven scalability

Page 22: AP intro - Industrial June 2016_compressed 2

22Proprietary and Confidential | ©2016 Active Power Inc.

Comprehensive Service Offerings

Assess• Site survey• Site validation• System design

Implement• Turnkey installation or installation

assistance• Start up and commissioning• Project Management

Support• Maintenance and warranty

programs• Training and technical support• Remote monitoring and power

management

Page 23: AP intro - Industrial June 2016_compressed 2

23Proprietary and Confidential | ©2016 Active Power Inc.

Active Power Knows Industrial & Manufacturing

Contact Lens Manufacturer

"In our highly sensitive environment, we needed a reliable UPS that could handle power disturbances and provide a bridge during an outage. Active Power’s product has never failed.”– Damien Wassell, Utility Engineer

Three CleanSource UPS selected to protect air handlers precisely managing temperatures for vaccine production

“We run a 24-hour operation, meaning there’s never any downtime. There’s a huge demand for our product, so any interruption would lead to back orders. Choosing Active Power was a business continuity decision, and the UPSs have never let us down.” – Director of Facilities and Workplace Services

Four CleanSource UPS systems deployed to protect robotic contact lens manufacturing equipment

“The lack of consistent and reliable power to support our operations was an ever present management headache before we installed CleanSource UPS. Since installation, we are very pleased with the improvement in our day-to-day operations.”– Mauro Caceres, General Superintendent, Operations

Over 20 MW of CleanSource UPS deployed at repumping stations across Mexico

Page 24: AP intro - Industrial June 2016_compressed 2

24Proprietary and Confidential | ©2016 Active Power Inc.

Superior Performance for Industrial Applications

• CleanSource UPS ability to handle power problems, especially inrush from dynamic demand devices is far superior to traditional UPS

• Traditional double-conversion UPS have to be oversized to handle industrial equipment life VFDs and pumps

• Oversizing leads to waste and cost • Space• Energy efficiency• Increased infrastructure costs for

cabling, breakers and switchgear

• Active Power CleanSource UPS can support equipment step loads without the need for oversizing and maintaining voltage regulation during step load

Page 25: AP intro - Industrial June 2016_compressed 2

25Proprietary and Confidential | ©2016 Active Power Inc.

At Merck’s Durham, North Carolina facility, engineers develop and manufacture liquid vaccines to improve patient care.

Challenge

Solution

Result

• Manufacturers of medicines and vaccines must adhere to strict federal production guidelines to prevent contamination. If an electrical interruption occurs, all product in process must be discarded and operations can’t resume until affected equipment is cleaned & revalidated.

• Merck chose to deploy three Active Power CleanSource® UPS systems to protect the facility’s air handlers from voltage sags and other short power disturbances. The flywheel-based UPS systems require less frequent maintenance than battery-based competitors, reducing the risk of production stoppage caused by human error. Additionally, CleanSource UPS was selected due to its smaller footprint and lower total cost of ownership.

• Since installation in December 2013, the equipment protected by Active Power UPS systems has not experienced a power-related interruption.

"In our highly sensitive environment, we needed a reliable UPS that could handle power disturbances and provide a bridge during an outage. Active Power’s product has never failed.”

– Damien Wassell Utility Engineer

Merck – Durham, North Carolina

Page 26: AP intro - Industrial June 2016_compressed 2

26Proprietary and Confidential | ©2016 Active Power Inc.

Vishay Intertechnology is one of the world’s largest manufacturers of discrete semiconductors and passive electronic components . It has production facilities in Israel, Asia, Europe, and the Americas with more than 20,000 employees worldwide.

Challenge

Solution

Result

• One of Vishay’s production facilities near Turin, Italy, was experiencing micro-outages due to interferences from industrial sites nearby and no linear behavior on power distribution. These anomalies created downtime periods with each outage costing an estimated $170,000 in operating losses. Vishay required a rugged, critical backup power solution insensitive to ambient temperature that could support a frequent number of charge and discharge cycles.

• Vishay deployed its an Active Power CleanSource 250 kVA UPS in 2007 and because of the success, they deployed Active Power’s CleanSource 625HD UPS in 2014 to expand coverage. The two systems protect production tools such as furnaces, photomasking equipment, and electronic components.

• Both flywheel UPS systems experience on average more than 15 discharges a day with no interruption to operations and saving the manufacturer nearly $200,000 annually in operating expenses. These savings are due to the systems’ high operating efficiencies, lower cooling requirements, and less maintenance versus a conventional battery UPS.

Vishay Intertechnology – Turin, Italy

Page 27: AP intro - Industrial June 2016_compressed 2

27Proprietary and Confidential | ©2016 Active Power Inc.

The company’s Johns Creek, Ga. facility manufactures contact lenses, houses a research and development unit and serves as a global distribution center.

Challenge

Solution

Result

• The company’s contact lenses are manufactured by highly sophisticated robotic equipment. Even the slightest electrical interruption would shut down the assembly line, stalling operations until all of the machinery can be restarted. The company required a reliable critical backup power solution to ensure the factory remains fully operational during an utility outage.

• Four Active Power CleanSource® UPS Systems were deployed to protect the robotic equipment from occasional power disturbances. They selected Active Power over competitors due to CleanSource’s smaller footprint and lower total cost of ownership.

• Since installation, the assembly lines protected by Active Power UPS systems have not experienced a power-related interruption, even when other equipment within the facility has shut down during utility outages.

•“We run a 24-hour operation, meaning there’s never any downtime. There’s a huge demand for our product, so any interruption would lead to back orders. Choosing Active Power was a business continuity decision, and the UPSs have never let us down.”

•– Director of Facilities & Workplace Services

Contact Lens Manufacturer – Johns Creek, Georgia

Page 28: AP intro - Industrial June 2016_compressed 2

28Proprietary and Confidential | ©2016 Active Power Inc.

Founded in 1962, Active Power’s customer is a leading manufacturer of residential glass for windows and doors. The company has more than 6,000 employees at 37 manufacturing locations throughout the United States.

Challenge

Solution

Result

• The company required a reliable critical backup power solution to protect their critical conveyors that handle and transport glass within the facility and to ensure the plant remains operational during utility outages frequently caused by severe weather in Tornado Ally.

• The company chose to deploy a 900 kVA flywheel UPS. The UPS is ideal for the industrial setting because it can withstand higher ambient temperatures and has a smaller footprint than a conventional battery UPS. This enabled the customer to deploy the system right on the factory floor near the conveyors.

• The flywheel UPS is saving the end user money and valuable floor space due to the fact the system requires less cooling and delivers approximately twice the power in half the space of a battery UPS. Facility managers indicate plans to expand the plant and intends to again select flywheel UPS to provide backup power protection.

"With the flywheel UPS, we never have to worry about losing power or productivity, and in a factory setting, having that peace of mind is invaluable.”

– Mechanical Engineer

Glass Manufacturer – Durant, OK

Page 29: AP intro - Industrial June 2016_compressed 2

29Proprietary and Confidential | ©2016 Active Power Inc.

As the third largest brewer in the world, the customer operates more than 190 breweries in more than 70 countries.

Challenge

Solution

Result

• One of the brewer’s production facilities is located on an island off the coast of Africa where utility power is unreliable. Micro-outages and other electrical disturbances can impact production causing downtime and economic loss.

• The brewer chose to deploy an Active Power CleanSource 750 kVA UPS to protect its sensitive operations. The system was deployed on the facility’s production floor without the need for cooling equipment because of its rugged, electromechanical design. A legacy battery UPS would have required additional design and build cost to house batteries in conditioned space.

• Since installation, CleanSource UPS has experienced hundreds of discharges with no interruption to the customer’s production lines. Unlike a legacy UPS, the system doesn’t degrade over time providing the same predictable level of service in year one as it does at year 10. The brewer has since installed CleanSource UPS systems at more than 10 additional production sites worldwide.

International Brewer – France

Page 30: AP intro - Industrial June 2016_compressed 2

30Proprietary and Confidential | ©2016 Active Power Inc.

Pemex is the world's second largest non-publicly listed company. The organization operates re-pumping stations that pump crude oil, gasoline, and diesel to and from various cities across Mexico.

Challenge

Solution

Result

• The motors and turbines at Pemex Refinación re-pumping stations contain sensitive controls making quality power critical for efficient operations. With many of the stations in remote areas and located at the end of utility lines, incoming power is poor and unreliable.

• Pemex Refinación has deployed more than 20 megawatts of Active Power CleanSource UPS systems across 22 stations in Mexico, protecting the stations’ automated systems and motor loads from power interruptions. The systems effectively manage in-rush currents typical of inductive loads. In addition, the battery free UPS’ ability to operate in industrial environments, smaller footprint, and overall lower maintenance costs makes it a better solution for Pemex’s needs.

• The rugged and inherently reliable design of CleanSource UPS made it an ideal solution to support these mission critical re-pumping stations. The systems help ensure oil and gas continues to flow and prevents potential revenue loss and equipment damage.

“The lack of consistent and reliable power to support our operations was an ever present management headache before we installed CleanSource UPS. Since installation, we are very pleased with the improvement in our day-to-day operations.”

– Mauro Caceres General Superintendent, Operations

Pemex Refinación – Mexico