A new direction in energy? 5 October Britain 'to be hit by 70s-style blackouts within three years' Daily Mail Blackouts possible as coal power stations go offline early, warns Ofgem Guardian 19 October Green Deal 125m cashback scheme to launch in January 2013 Construction News 15 October New Gas Field Discovered in Red Sea Global Advisory 18 October Cameron gets drawn into row as confusion over energy tariff row escalates Independent Increasingly politicised debate over the UK's future energy supplies risks scaring off investors in the power sector Wales Online 18 October The government's plans for new nuclear power stations are on the rocks Huffington Post 3 October German VPP launched with 25 BlueGen units Ceramic Fuel Cells Paddy Thompson General Manager Business Development Ceramic Fuel Cells October 2012 Energy starting from the ground up 1. BlueGen basics MCS accreditation & feed in tariff support 2. Finding solutions for fuel poverty in residential properties Retrofit New build 3. Reducing carbon emissions in small commercial properties 4. Summary
Fuel cells are (finally) here 3 The company behind BlueGen Ceramic Fuel Cells Limited (CFCL) Formed in 1992 From the Australian Government research institute (CSIRO) Employs approx. 120 staff world-wide Head office plus R&D in Melbourne Manufacturing in Germany EU administrative centre in Netherlands UK sales and support UK network of service partners Listed company Australian Securities Exchange (ASX) London Stock Exchange Alternate Investment Market (AIM) Around 250 million invested to date 4
What we do Fuel cells for small scale power generation We make products that deliver clean, controllable electricity on-site Our fuel cells turn natural gas into electricity, without combustion or noise Waste heat is turned into useful hot water, up to 200L per day per unit Continuous generation = maximum run time = 13,000kWh/year per unit Generate power more cheaply on-site More power from less fuel = primary energy savings + CO 2 savings Generate power where it is used to reduce losses Recover as much heat as possible Of most financial benefit to those paying highest electricity prices Up to 4 tonnes of CO 2 savings per BlueGen per year Why is electricity expensive? because the process is so wasteful Coal fired power stations currently provide around 50% of UK electricity 6
How does BlueGen help...?...highly efficient and controllable, on-site generation UK installations today ~45 BlueGens in UK
How can fuel cells reduce fuel The social poverty? benefits of sharing Why are fuel prices going up? Electricity prices set to increase in the medium term with Ever increasing numbers of appliances Electrification of heat (heat pumps) Electrification of transport (electric vehicles) Improvements to the grid for the additional usage Subsidies for low carbon technologies Enforced shut down of coal fired power generation Increasing demand and constrained supply Gas prices set to decrease in the medium term with Reductions in demand due to insulation Significant new gas field discoveries Shale gas Easier global movement of gas as LNG Expiry of long term gas contracts linking oil and gas prices 10
What does BlueGen do? Generates power more cheaply on-site using natural gas World s highest electrical efficiency at this scale (60%) means More power from less fuel Primary energy savings CO 2 savings Lower costs More power means Less heat, but enough for daily hot water demands Continuous operation throughout the year Maximum generation potential per unit installed On site generation means Generate in buildings at the point of demand No distribution losses Why less heat and more power? More insulation is always better than using more fuel Heat doesn t travel well Electricity is easy to share, instantaneously How does BlueGen address fuel poverty? BlueGen generates c. 13,000 kwh per year Enough power for four homes, on average BlueGen is therefore best installed on a shared basis Enough power to run both a heat pump and an electric vehicle BlueGen makes heat pumps cheaper to run than gas boilers Reduces energy bills for small businesses too Gas is much cheaper than electricity Marginal cost of generation is 4-6p/kWh Of most benefit for those paying the highest prices for their electricity Social housing tenants, e.g. in small blocks of flats Small businesses Anyone who can share a BlueGen Indoors in Europe Outdoors in Australia
Sharing electricity in flats Integrated with other technologies, such as heat pumps Cheaper electricity 60% electrical efficiency means less fuel used Less fuel means lower costs Free hot water No additional fuel used Up to 200 litres of hot water per day Virtually silent Easy to install. Little noise and no vibrations Uses standard connections Low carbon Less fuel means less carbon Up to 4 tonnes CO 2 savings per unit per year
Partnering with a social ESCO Social housing tenants can t afford fuel cells Tenants need to buy heat and power The social ESCO sells them power and heat at a guaranteed discount And offers them free WIFI at the same time Seamless service with guaranteed benefits At no additional cost to the social landlord An ESCO can afford fuel cells ESCO funds the fuel cell installation and receives the feed in tariff Where a housing association has its own funds, then ESCO service can be provided on a branded basis 15 Retrofit reality BlueGen installed with Housing Solutions in Maidenhead Care homes with landlord electricity supply Waiting for feed in tariff increase to finalise commissioning Heat recovered fed into existing heating system no disruption to residents Pipeline social housing projects Electrically heated sheltered housing schemes (>50 flats each) BlueGen installed in common areas so minimal disruption Four in a block retrofit In conjunction with other energy efficiency measures Community centre with sheltered housing Several more being discussed 16
New build reality BlueGen achieving Code 4 for Energy with a fabric first approach Exemplar installation with Crest Nicholson in Epsom Family moving in very soon No boiler required BlueGen provides a full microchp solution Pipeline of new build schemes One-between-four approach in blocks of flats Several schemes being examined Code 4 and Code 5 targets with fabric first approach BlueGens in combination with heat pumps Avoids the need for an energy centre or district heating 17 Fuel cells in small commercial premises Saving carbon, saving money
Carbon savings for small commercial properties Carbon emissions reductions are a reality for many businesses Carbon Reduction Commitment or Corporate Sustainability Objectives Lower carbon means less fuel, means less cost Energy efficiency is good for business - increasingly a board level consideration Many solutions exist for large commercial and industrial premises Very difficult to achieve carbon savings across an estate which includes many small properties, e.g. retail outlets The easy wins have mostly been won already BlueGen is the next big step down the carbon reduction curve For a retail estate of 250 properties, BlueGen represents 1,000 tonnes per year of CO 2 savings 19 Small, unobtrusive installations Many small commercial properties still have high power demand Refrigeration running 24/7 Data servers running 24/7 Minimum levels of lighting required 24/7 BlueGen is small enough and quiet enough for most locations Restaurants, Cafes, Pubs Petrol stations Convenience stores Any retail outlet with a data server Doctors surgeries University accommodation Small offices 20
Financing available BlueGen can be fully financed using feed in tariff income Vendor finance, subject to minimum volumes Company pays costs of gas and maintenance only Levellised cost of electricity as low as 7-8p/kWh, depending on gas tariff One BlueGen per property (feed in tariff rules) Company must use all electricity generated on site (up to 2kW continuous) Pre-registration now open 21 Summary The application of common sense to energy
Why are we excited by the UK market? The time is now right for BlueGen: The right energy efficiency product at the right time Proven in the field many times over with customers The only fuel cell product eligible for the UK feed in tariff MCS accreditation Feed in tariff increases from 1 st December 2012 Guaranteed tariff with no degression for first 30,000 installations Full financing now available, subject to minimum volumes UK installer network in place including Scotland UK CFCL support engineers in place EU manufacturing capacity of up to 10,000 per year 10 year full service warranty and maintenance package as standard UK customers include E.ON, Housing Solutions, Crest Nicholson, Durham University Thank you for listening www.cfcl.com.au Paddy Thompson General Manager Business Development paddy.thompson@cfcl.com.au 24
Disclaimer BlueGen is a registered trademark of Ceramic Fuel Cells Limited. This Presentation has been prepared by, and is proprietary to, Ceramic Fuel Cells Limited ( CFCL ). This Presentation does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. No representation or warranty, express or implied, is given by CFCL, its Directors, employees or professional advisors as to the accuracy, fairness, sufficiency or completeness of the information, opinions or beliefs contained in this document. Except in the case of fraud, no liability is accepted for any loss, cost or damage suffered or incurred as a result of the reliance on such information, opinions or beliefs. The information in this Presentation reflects prevailing conditions and the views of CFCL as of this date, which are subject to change. CFCL 2012 25