The VPS Energy Storage Solution—Unitized Solid Oxide Fuel Cell

Electrolyzers (SOFCEL)

The VPS Energy Storage Solution—Unitized Solid Oxide Fuel Cell

Electrolyzers (SOFCEL)

Robert Stokes, PhDPresident & CEO

Versa Power Systems Inc.Littleton, Colorado

Denver, CO14 October 2011

Copyright © 2011 Versa Power Systems. All Rights Reserved. 22011.05.24_to Boeing 2

Company Overview Versa Power Systems is a private

company based in Littleton, Colorado

.~$110 million in product development projects through 2011- non-dilutive

$32.2

$19.7

$50.0

$0.5

US Government Industry

Current owners GLE/Enbridge

Currentequity holders

VPS Ownership

Copyright © 2011 Versa Power Systems. All Rights Reserved. 3

Company Overview- 32,000 ft2 of research & pilot manufacturing facilities

Pilot manufacturing and fuel cell development As-received powders → cells → stacks → stack modules

Screen Printing

One Step Co-Firing

Tape Casting

Test Infrastructure

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VPS’s 32,000 square foot facility contains stack product development infrastructure

Copyright © 2011 Versa Power Systems. All Rights Reserved. 52011.05.24_to Boeing 5

VPS’s 17,000 square foot facility contains systems product development infrastructure

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Versa Power Systems’ Projects U.S. Department of Energy, National Energy Technology Laboratory

– FuelCell Energy is project prime– Development and supply of SOFC technology for operation on gasified coal– Scale-up and R&D of large SOFC systems

• Large area cells and high kW stacks

VTT Technical Research Centre of Finland– Demonstration of 10 kW natural gas powered system– Supply of 10 kW SOFC module for integration and testing with

VTT balance of plant

Wärtsilä Finland Oy– Joint development of SOFC power plants for stationary and marine applications

U.S. Department of Energy, Energy Efficiency and Renewable Energy– Reversible SOFC / SOEC materials development– kW stack demonstration

U.S. Defense Advanced Research Projects Agency (DARPA) – Boeing is project prime– Development and delivery of high efficiency energy storage system for

un-manned aerial vehicle

– Reversible SOFC / SOEC operation, high specific power, ultra high efficiency

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DARPA Vulture II / Boeing Project

Versa Power Systems to deliver a high efficiency, light weight, energy storage systems (ESS)

– In the System trade studies-- SOFCEL identified as best fit– VPS ESS systems enable continuous flight: 90 day, full-flight demo

Program complete early 2014, follow-on programs possible

http://boeing.mediaroom.com/index.php?s=43&item=1425

Overall objective is to develop technology that will enable an airborne payload to perform uninterrupted intelligence, surveillance, and reconnaissance over an area of interest

– pseudo-satellite capability, in an aircraft package

– 5 year aloft

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So- how does Energy Storage using SOFCEL get applied, commercially?

Unitized, Solid Oxide Fuel Cell/Electolyzers (SOFCEL) are energy storage and conversion devices. They are capable of operating in both power generation mode (SOFC) and electrolysis mode (SOEL)

SOFCEL can integrate renewable production of electricity and hydrogen when power generation and steam electrolysis are coupled in a system, which can

– turn intermittent solar and wind energy into “firm power”…– or, can turn intermittent power into peaking power, to offset gas turbine peaking plants, and

allow coal plants to run baseload.

H2

O2

2H2O + 4e- — 2H2 + 2O=

ElectrolyteO= O=

Cathode

Anode 2O= — O2 + 4e-

+

_e-

e-

H2

O2

e-

e-

e-

H2O

Power Load

2H2 + 2O= — 2H2O + 4e-

Electrolyte

O= O=

Anode_

Cathode O2 + 4e- — 2O= + e-

e-

e-

e-

e-

H2O

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The Market Opportunities: the promise for a multifunctional energy storage facility

Baseload arbitrage, Transmission support, Energy services, and Renewable energy storage/peak load arbitrage

e.g.: Renewable Energy Sales into Peak Market Prices-- With Energy Storage

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The NREL Study Conclusion

Lowest Levelized Cost of Electricity (LCOE):– Compressed air energy storage (CAES)

– Pumped Hydro

Summary:– Hydrogen is competitive with batteries and

could be competitive with CAES and pumped hydro in locations that are not favorable for these technologies.

An appendix to the NREL Study evaluated the VPS Unitized, SOFCEL: – “Integration of electrolysis and fuel cell

functions into a single piece of equipment could:

• Reduce capital cost• Increase utilization• Improve round-trip efficiency”

– LCOE? Almost ties CAES and Pumped Hydro; beats the others.

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Summary Encouraging results are being obtained in the area

of SOFCELo Cell materials development on-going to improve steady-state

SOEL degradation and cyclic performanceo SOEL stack operation demonstrated, however more

development required Analysis to define system based operating conditions are under

development Electricity and Stability-

o It's what the electric power transmission system needs and it's what the VPS unitized, SOFCEL energy storage system can provide.