When You Can’t Afford To Be Without Power

Fuel Cells: The Emerging Way of

Ensuring Network Reliability

Marcos VillanuevaVice President, International Business Development

June 2006

2

Backup Power Industry Trends• Natural disasters demonstrate the

need to improve reliability.

• Communication networks are vital to national security and emergency response.

• Network operators are exploring alternatives to incumbent technologies.

• Expanding telecom services results in increased backup power requirements

• Developing countries need reliable quality power to sustain economic growth.

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Communications Systems Backup Power

• Historical– Wireline carriers typical back-up objective ≥ 8 hours– Wireless carriers backup objectives range from 2 hours to 8 hours

• Recent Events– The importance of robust and reliable communications has come

to the forefront in the minds of the consumer, corporations, policy makers and therefore the Carriers

• Natural Disasters• Terrorism• Critical Services

• Today– Carriers are seeking extended power solutions to support their

networks • Expectation is up to 48 hours and even 72 hours without the need for

site visits, refueling, or supplementary technology• Traditional solutions pose increasing challenges related to refueling,

environmental, reliability, and theft

4

Incumbent Technologies

• Batteries (VRLA)– Traditionally a primary design component of a reliable

network– Economical for short run times– Issues

• Life of 3-5 years

• Higher temperatures = lower life

• Extending reserve time = increasing number of batteries proportionally

• Hazardous materials require special disposal conditions

• Inability to remotely monitor health or reserve time

5

Incumbent Technologies

• Generators– Traditionally a solution to battery limitations– Economical for longer run time needs than batteries– Issues

• Complexity increases threat of failure

• Maintenance costs / time

• Initial installation expense may be high– Provides AC power– Most communication sites need DC power

• Environmental restrictions– Permitting– Spill containment– Potential contamination issues– Noise restrictions

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Typical Back-Up Power System

ACDISTRIBUTION

PANEL

RECTIFIER

UTILITY FEED

DCBUS

METERED DISCONNECT

BATTERY BANK

Backup Run Time Determined by Size/Capacity of Battery Bank

LOAD

LOAD

OPTIONAL GENERATOR

AC TRANSFER SWITCH

7

e-

e-

e-

e-

H+

H+

e-H+

H+

H+

H+

H+

+ H -

H

H

O

O2

H2

O

OxygenMolecules

Electrical Load

Water molecules forming

Catalyst/ElectrodeProton exchangemembrane electrolyte

Catalyst/Electrode

HydrogenMolecules

ElectronsfromHydrogen

PEM Fuel Cell: How It Works

H2

8

A Modular, Cartridge-Based Design Fuel Cell

• An energy producing system

• PEM Fuel Cells use a chemical reaction to produce electric power

• Its fuel is Hydrogen

• Efficient mode to produce electricity • “Hot-swappable” cartridges

– Failed membranes are bypassed– Load is not interrupted

• Environmentally friendly

9

Typical Back-Up Power System

ACDISTRIBUTION

PANEL

RECTIFIER

UTILITY FEED

DCBUS

METERED DISCONNECT

BATTERY BANK

Backup Run Time Determined by Size/Capacity of Battery Bank

LOAD

LOAD

OPTIONAL GENERATOR

AC TRANSFER SWITCH

10

Typical InstallationsMicrowave Applications:• Microwave Hub Sites:

– High Traffic/Revenue Sites– Multiple BTS Sites Dependent On Hub– Lower Channel Count

• Microwave Repeater– BTS Link to MSC– BTS’s “daisy-chained” to MSC

Hub Site

DS1, FIBER ORMICROWAVE TRANSPORT

BACK TO MSC

MICROWAVELINKS

MICROWAVELINKS

BTS

BTS

BTS

BTS

BTS

MICROWAVELINK

MICROWAVELINK

LINK TOMSC

BTS

BTS

MICROWAVELINK

BTS Applications:• Limited Access/Remote Sites

– Long Drive Time to Sites– Substantial Permitting Restriction– Repeater Sites in Congested Areas

• Highway Sites:– Large Coverage Area/Minimal

Overlap

Fiber Backhaul Applications:• Fiber Amplifier/Re-Gen

Equipment– High Volume of Traffic

11

Applications:

Targeted Applications: • Microwave Hub/Repeater/Backhaul Sites• Remote Base Station Backup• Environmentally Restrictive Sites

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Competitive Advantage

Fuel Cells vs. Incumbent Technologies

ReliOn Batteries Generators Fuel Cells

Modular

Hot-swappable

Simple Design

Environmentally Friendly

Low Maintenance

Low Installation Costs

Extended Run-time Solutions

13

Value Proposition for Fuel Cells as Backup Power

• Flexibility: Fuel cells are scalable and can be configured according to the load and supplied with fuel to allow various runtimes depending on site requirements.

• Cost: Factoring in capital and operational costs, many fuel cells are cost effective compared to batteries or generator sets.

• Reliability: ReliOn fuel cells have been thoroughly tested resulting in measured reliability and availability of 99.8%.

• Simplicity: ReliOn fuel cells are modular and simple to maintain and, if needed, to repair using hot-swappable, field replaceable devices.

• Environmental: Hydrogen fuel cells are quiet and clean producing only heat and water as byproducts. Compressed hydrogen is proven and safe without the need for spill containment or abatement.

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Outdoor Installations

• Backup for Existing Installations:– Critical Installations/Unreliable Power

• Installation Options– Cabinetized Sites– Sheltered Sites

ReliOn Outdoor Enclosure

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Indoor Installations• Basic Integration Into Shelter

• Fuel Storage Outdoors

• Fuel Cell Installed Inside and Integrated with Rectifiers & Battery String

• Optional Indoor Fuel Storage• No External Impact to Shelter

• Fuel Storage Room

• Fuel Cell Installed in Equipment Room

Outdoor Fuel Storage Rack Mountable Indoors

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Installations: Bahamas Telephone Company

• First Installations August 2004 • Rollout Underway

– Wireline & wireless sites– One to three kilowatts – 48kWh

runtime

• Backup Power – OPM & DLC sites– Neighborhoods, industrial, remote– Frequent Power Outages

• Hurricanes

• Poor power infrastructure

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Fuel Cells as Backup Power

• Reliability: ReliOn fuel cells have been thoroughly tested resulting in measured reliability and availability of 99.8%. – Results in revenue protection

• Cost: Factoring in capital and operational costs, fuel cells are cost effective compared to batteries or generator sets.– Lower life cycle costs

• Environmental: Hydrogen fuel cells are quiet and clean, producing only heat and water as by-products. Compressed hydrogen is proven and safe without the need for spill containment or abatement.

Fuel cells offer a modern, effective, forward-looking method for increasing network dependability, while reducing costs!

When You Can’t Afford To Be Without Power

THANK YOU!!THANK YOU!!

Fuel Cells: The Emerging Way of

Ensuring Network Reliability

Marcos VillanuevaVice President, International Business Development

June 2006

19

Hydrogen Basics

• Hydrogen First Discovered 1766 – Henry Cavendish– Named for being a “water former”– 1 Proton, 1 Electron– H2 – Diatomic Molecule, 2 Protons, 2 Electrons

• Colorless, Odorless and has no Taste• Lightest Element in the Universe• Disperses Rapidly – 1/16 the density of air• Non-toxic• Environmentally-friendly

H

20

8.0 kWh140 lbs261 cu-ft9” x 60”

6.1 kWh125 lbs197 cu-ft9” x 56”

2.5 kWh65 lbs80 cu-ft6” x 37”

1.0 kWh29 lbs33 cu-ft6” x 24”

Hydrogen is sold in high pressure steel or aluminum bottles which come in many different sizes. The actual storage capacity is dependent on bottle volume and fill pressure.

Example Bottles Sizes:

Hydrogen Solutions261 CUF

197 CUF

80 CUF

33 CUF

60”

Existing Solution = Compressed Hydrogen• AirGas, Air Liquide, Linde, Praxair, Air Products, &

Locals

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Backup Solutions

REFILL

BATTERYBRIDGE

ENGINE GENERATOR

(DIESEL/PROPANE)

REFUEL(8-24Hr Window)

FUEL CELLCOMPRESSED

HYDROGEN

FUEL CELLCOMPRESSED

HYDROGEN

MULTIPLEREFILLS

REFUEL

2-4 Hours

8-24 Hours

8-24 Hours

8-100+ Hours

TIME

UTILITY POWER RESTORED

UT

ILIT

Y P

OW

ER

INT

ER

RU

PT

ED

BATTERIES

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Environmentally Restrictive Applications

Fuel Cells Solve Problems Encountered Due To• Air Resources Boards/Local Municipalities

– Generator Emission & Noise Limits/Regulations– Fuel Containment Limitations

• Generator Fuel Storage and Permitting

• Potential Cost of Fuel Leaks

• Battery Restrictions– Electrolyte Level Limitations – NFPA & Local Jurisdictions – Additional Costs for Spill Containment