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Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen Economy European Commission Summit: H 2 in the Economy Michael Brown Director, Delta Energy and Environment E: [email protected] T: +44 131 466 5544 www.delta-ee.com

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Page 1: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Delta Energy & Environment Ltd Registered in Scotland: No SC259964Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS

Micro-CHP in the Hydrogen Economy

European Commission Summit: H2 in the Economy

Michael BrownDirector, Delta Energy and EnvironmentE: [email protected]

T: +44 131 466 5544

www.delta-ee.com

Page 2: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Delta Energy & Environment

A consultancy in global markets for distributed energy

Generation

Demand

Electric Vehicles

Electricity Storage

HEM

CHP

PV

Energy Efficiency

Smart Demand

Heat Pumps

Networks

Micro-CHP

Energy Services

Page 3: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy 3

Deep research into mCHP markets

Page 4: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Agenda

4

Micro-CHP product development

Market outlook to 2020

Opportunities for mCHP in the hydrogen economy

Challenges

Research priorities

Page 5: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy 5

mCHP - a likely role in a diverse home energy market

Page 6: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

mCHP products on sale in Europe today

ICE

Remeha eVita 1kW

EHE WhisperGen 1kW

Stirling Engine

Baxi Ecogen 1kW

Vaillant ecoPOWER 3kW

& 4.7kW

Brötje Ecogen 1kW

SenerTec Dachs5.5kW

Vaillant / Honda ecoPOWER

1kW

Kirsch L4.12 4 kW Viessmann

Vitotwin 1 kW

Proenvis Primus 1.4 4kW

RMB Neotower

5kW

Baxi SenerTec Stirling SE 1 kW

Viessmann / ESS EM5, 5kW

6

Page 7: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Fuel Cell mCHP is arriving

1

2

4Source: Delta-ee, 2012

Solid Oxide Fuel Cell

launched in Japan

4 ICE

dominates

1 PEM Fuel

Cell launched in Japan

2 Stirling engine

launched in Europe

3

Global annual sales of micro-CHP (<6kW)

Solid Oxide FC

Stirling Engine

PEM FC

Internal Combustion Engine

Source: Delta Energy & Environment, 2012

Page 8: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Best case commercialisation time-frames

2013 2014 2015 2016/17+

2013 2014 2015 2016/17+

PEMFC

SOFC

Page 9: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Market outlook to 2020

9

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

High Growth scenario Medium Growth scenario

Low Growth scenaro

High growth scenario

Policy improves

Prices fall quicker than expected

Strong customer demand

Number of mCHP Annual Sales per Year (≤5kW)*

Potential wildcards

1. Low cost fuel cell or low cost engine – ICE or ORC?

2. Surge in customer interest

3. Shale gas revolution & rapidly rising electricity prices

4. Innovative ‘micro-CHP for free’ contracting model

~201,000 (~30% fuel cell) [€5-8k)

~98,000(~30% FC) [~€12k]

~30,000 (~50% FC) [€15-18k]

Page 10: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Main European markets for mCHP

≤2 kWe CHP

Page 11: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

3 opportunities for mCHP in a hydrogen economy

H fed into a gas grid

Local H networks

House by house

Page 12: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

3 opportunities for mCHP in a hydrogen economy

H fed into a gas grid

• Reduces emissions

• Makes mCHP look even better

• No major technical issues

Page 13: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

3 opportunities for mCHP in a hydrogen economy

Local H networks

• New build focus

• Low volumes

• PEM FC without reformer – cheaper & simpler

• Denmark is pioneering

Page 14: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

3 opportunities for mCHP in a hydrogen economy

House-by-house

• Electrolyse when prices are low

• Store the H locally, eg oil tanks

• Generate electricity when prices are high

• IRD approach

Page 15: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

House-by-house

15

Improved performance and reduced CAPEX & OPEX of Fuel Cell-based systems

Reduced CO2 emissions for electricity and heat generation

Avoid technical barriers of hydrogen distribution (and associated investment)

ηPACH2: 75%

ηPACPTH: 15%

η: 99%

ηH2PTH: 44%

ηH2PAC: 50%

η: 99%

Overall EfficiencyPAC H2 PAC : = 37%PAC H2 + PTH PAC + PTH = 85%

Source: IRD Fuel Cells A/S

Page 16: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Challenges for mCHP in a hydrogen economy

16

Challenges

Potential for reduced spark spread

Minor modifications for any technology with H2 >1% energy content

Further modifications required when H2 > 5%

Variation in H2 blends presents a major technical issue

Gas +43% Elec -16% Base Scenario Elec +16% Gas -43%-£100

-£50

£0

£50

£100

£150

£200

£250

£300

£350

SOFC ICE SE

Energy Price Scenarios

Non

-ince

ntiv

ised

Ann

ual S

avin

gs

Page 17: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Conclusions & Research Priorities

17

Research Priorities

How will spark-spread evolve with widespread H2 introduction?

• Spark-spread dictates financial savings from micro-CHP

Technology innovation to cope with H2–NG blend variations

• variations driven by renewable intermittency

System integration of micro-CHP, electrolysers & storage

• historically, R&D funding has not focussed on integrated systems

ConclusionsMicro-CHP is well placed to deliver benefits in a future hydrogen economy:

• additional CO2 emission savings

• lower energy bills

Integrating micro-CHP with on-site hydrogen production can:

• decrease losses, increasing round trip efficiency (for electricity & heat)

• distributed storage solution avoids investment in NG network upgrades

Page 18: Delta Energy & Environment Ltd Registered in Scotland: No SC259964 Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS Micro-CHP in the Hydrogen

Expertise in Decentralised Energy

Contact

Michael BrownDirectorDelta Energy & EnvironmentEdinburghUK

[email protected]+44 131 466 5544www.delta-ee.com