FuelCell Energy, Inc. · NASDAQ:FCEL
FuelCell Energy — Corporate Update (September 2006)
23 slides from FuelCell Energy's corporate update, Sep 8, 2006
Slide 1: Company Update
Company Update September 8, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, including statements regarding the company's plans and expectations regarding the development and commercialization of fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could c
Slide 3: FuelCell Energy Profile
FuelCell Energy Profile Delivering products to commercial/industrial customers with advanced Direct FuelCell® technology Established strong commercial relationships with major distributors in the U.S., Canada, Germany, Japan and Korea #1 high temperature stationary fuel cell manufacturer and d
Slide 4: FuelCell Energy Core Products – 250kW-10MW
FuelCell Energy Core Products – 250kW-10MW DFC300MA DFC1500 DFC3000 Product Characteristics High temperature, high efficiency, carbonate fuel cell power plants for base load commercial and industrial applications High value waste heat by-product for cogeneration Internally generated hydrogen f
Slide 5: High Efficiency for Distributed Generation
High Efficiency for Distributed Generation Installed Generation: 70 ® /T u r bine U.S. 800+ GW DFC World 3,300+ GW ed Com bin ll® Cycle Fue lCe 50 Dir e ct EFFICIENCY, %(LHV)) Average U.S. FC ne s Coal/ Fossil Fuel PA/PEM Engine s Tur bi Ste am Gas Plant = 33% 30 rb ine s icr otu M 10 0.01 0.1 1 1
Slide 6: Value Proposition
Value Proposition ‘Ultra-Clean’ Distributed Generation Technology That Provides More Reliability For Less Cost Increases reliability by locating power closer to the end-user Gives end-user control of power generation economics, reliability and emissions Provides better economics –avoids T&D in
Slide 7: Business Strategy
Business Strategy Objective: Develop profitable vertical market segments Continue to penetrate and expand key vertical market segments Ten vertical markets providing repeatable business globally Moving sales to larger-sized units RPS and ITC creates large Multi-MW segment opportunity Continue
Slide 8: Global Markets
Global Markets Japan/Korea North America Europe Drivers Drivers Drivers Very high electricity prices Regionally high electricity Increasing electricity prices Kyoto Protocol costs Reducing CO2 Strong government support Grid constraints CHP applications Market Potential Overcomi
Slide 9: 2006 Progress
2006 Progress Market dynamics continue to accelerate for large stationary fuel cells Market Development – California – 8.75 MW installed/in backlog Japan/Korea – 8.25 MW installed/in backlog; POSCO distributor for Korean market WWT – 4.75 MW installed/in backlog worldwide Manufacturing – 3.50
Slide 10: Wastewater Treatment Facilities
Wastewater Treatment Facilities Fukuoka (Marubeni) King County (EPA) Santa Barbara (Alliance) ‘Super Eco Town’ Terminal Island (Marubeni) (LADWP) Tancheon (POSCO) Sierra Nevada (Alliance) Palmdale (CAT) Kirin (Marubeni)
Slide 11: Manufacturing
Manufacturing Epson (Marubeni) Pepperidge Farm (PPL) Sharp Michelin (MTU) NGK (Marubeni) TST Inc. (Alliance) Tokyo Gas (Marubeni) IZAR (MTU) JapEx (Marubeni)
Slide 12: Hotels
Hotels Sheraton NY (PPL) Sheraton Edison (PPL) Westin SF Airport (Alliance) Sheraton Parsippany (PPL) Sheraton San Diego (Alliance)
Slide 13: Hospitals & Universities
Hospitals & Universities Pohang Univ. DFC/T (Marubeni/POSCO) (Billings Clinic) Grand Valley St. Univ. Bad Berka Hospital (MTU) Gruendstadt Clinic (MTU) Ocean C’ty Coll. Cal State Northridge (PPL) (Alliance) Chosun Univ. Hosp. (POSCO) Magdeburg Clinic (MTU) Rhon-Klinikum Hospital (MTU) SUNY-ESF Yale
Slide 14: Reliability
Reliability Coast Guard (PPL) Camp Pendleton (LOGAN) Santa Rita Corr. Facility (Chevron) 29 Palms (LOGAN) Deutsche Telecom (MTU) SF Mail & Proc. Ctr. (Chevron)
Slide 15: Grid Support
Grid Support Tech Center (CAT) KOSEP AMP-Ohio (CAT) Vattenfall/BeWag Utility (POSCO) (MTU) RWE Energy Park (MTU) Hdqtrs., Main St. Salt River Project (LADWP)
Slide 16: Growth Areas in Renewable Energy
Growth Areas in Renewable Energy 20 States and DC now hav e mandatory RPS Standards CA/NY/PA are major near-term markets CT is initial market Source: April 2005 Primen Report on RPS
Slide 17: MW & Multi-MW Fuel Cell Projects
MW & Multi-MW Fuel Cell Projects ‘Ultra-clean’ solution for firm, 24/7 reliable and efficient power generation… New York: LIPA – 10 MW Connecticut Project 100: 4 MW Wallingford project received preliminary approval from state utility regulators Over MW expected to be bid in Phase 2 Calif
Slide 18: Value Engineering Cost Reduction Progress
Value Engineering Cost Reduction Progress $20,000 ~$20K Sub-MW 1 MW 2 MW $16,000 2006 design target for DFC3000: $3,200-$3,500/kW $12,000 $/kW ~$10K $8,000 ~$8K ~$2.5-$3.5K; Commercial ~$6.2K in Japan, ADG in U.S. $4,000 ~4.6K w/o subsidy ~4.3K ~$2-$3K; Commercial in Calif. w/o subsidy $- 7 03 04 05
Slide 19: Sources of Cost Savings
Sources of Cost Savings 6-9 MW Annual Production Service Technology Organization Uprate (300kW ) Product Value Process 22% Engineering Product Value 33% Improvement Engineering 20% Sourcing/Supply 55% Chain Management 11% Manufacturing Service Process Organization Improvement Process 13% Improvement
Slide 20: Product Reliability & Availability Improvement Program
Product Reliability & Availability Improvement Program Fleet Availablity Factor 95% 95% 93% - Actual - Projected 90% 90% 87% 85% 85% 80% 80% 75% 70% 2002 2003 2004 2005 2006 2007 Field Trial Mature Program Field Follow Commercial Units Product Stages of Product Development
Slide 21: Focus Areas to Improve Trend in Reliability/Availability
Focus Areas to Improve Trend in Reliability/Availability Percentage of Outage Hours Future Reliability Improvement Attributable to Technical Issues Areas to Achieve 95% Availability Through 108 M kWh to Date Targets Water Treatment Systems Sealing Rapid Load System Other 10% Integration Recovery 7%
Slide 22: Summary
Summary Global target markets expanding Customers/applications providing repeatable order flow – RPS, Multi-MW Product cost declining according to plan – focus on Multi-MW path to profitability Managing cash consistent with business strategy
Slide 23: FuelCell Energy
Za FuelCell Energy