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PROPOSAL:

Execute Contract to Co-sponsor Development and Demonstration of 250 kW Hybrid Pressurized Solid Oxide Fuel Cell-Micro Turbine Power-Plant

SYNOPSIS:

Distributed generation of electricity is expected to play an increasing role in supplying electricity demands in California's deregulated energy marketplace. This deregulated marketplace will demand high-efficiency, low-emission, cost-competitive generation technologies. An advanced power generation technology that integrates an advanced solid oxide fuel cell with a micro-turbine is being developed to meet these demands. Edison Technology Solutions (ETS), in conjunction with Siemens Westinghouse and the University of California Irvine National Fuel Cell Research Center, has proposed the demonstration of a 250-kW hybrid fuel cell-micro turbine capable of over 55% efficiency and negligible emissions. Total cost of this project is $16.2 million; AQMD cost-share will not exceed $200,000.

COMMITTEE:

Technology, March 26, 1999, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Edison Technology Solutions (ETS), for development and demonstration of a 250 kW hybrid fuel cell-micro turbine power-plant in an amount not to exceed $200,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

With deregulation of the electric industry and the emergence of competitively priced small generation sources, the installation of small, stand-alone power-plants is expected to substantially increase. Examples include gas turbines, diesel generators, fuel cells, and renewable energy sources. These stand-alone power-plants offer the addition of incremental generation near customer sites, substantially reducing the need for transmission and distribution lines, and providing improved power quality to the customer.

The National Critical Technologies Panel has identified fuel cells and gas turbines as two of the 27 key technologies essential for U.S. commercialization in order to achieve competitiveness and national security. In addition, the Energy Policy Act of 1992 established the goal of developing cost-effective, efficient and environmentally benign fuel cell systems which would operate on natural gas.

Developments over the last decade have resulted in high efficiency gas turbine and fuel cell electric power plants. Typically, a conventional steam generation plant utilizes approximately 35 percent of the fossil fuel potential energy and converts it to electricity. The remaining 65 percent is "lost" as waste heat. Today’s gas-fired plants can achieve 40 percent operational efficiency. More advanced technologies, such as fuel cells and high-performance turbines by themselves, can achieve electrical generation efficiencies of 50 percent. Design studies suggest that combining a fuel cell with an advanced gas turbine can result in over 70 percent efficiency as a "hybrid" power plant.

A 70 percent efficient natural gas-fueled power plant of the future would generate about 30 percent less carbon dioxide than current gas-burning plants. Of particular importance to the consumer is the estimate that hybrid plants will be able to produce electricity at 10 to 20 percent less cost than current power plants, while reducing emissions of carbon dioxide, sulfur dioxide, and nitrogen oxides.

Proposal

Edison Technology Solutions (ETS) has proposed the development and demonstration of a high efficiency, hybrid-electric generation project using a pressurized 200 kW solid oxide fuel cell (PSOFC) integrated with a 50 kW Micro-Turbine Generator (MTG). In this hybrid power cycle the key innovation being proposed is the use of thermal energy from the fuel cell’s hot exhaust (1500 degrees F) to replace the conventional combustor of the MTG during normal operation. With no combustion in the MTG, minimal levels of pollutants are formed. The fuel combusted in the hybrid cycle during startups and partial loads is equivalent to about 7% of the fuel combusted in an equally sized conventional power plant.

This proposed project represents the first demonstration testing of a PSOFC-MTG system. As such, project performance goals of over 55 percent efficiency are modest, but this project is a critical first step in optimizing a fully integrated system. The project will include the design, development and fabrication of a 200 kW PSOFC by Siemens Westinghouse. The PSOFC will be integrated with a 50 kW MTG and factory tested to de-bug the system and ensure that the components are functional. The integrated PSOFC-MTG system will then be shipped to and installed at the University of California at Irvine National Fuel Cell Research Center (NFCRC). The NFCRC will then test and evaluate the hybrid power plant for a period of approximately 500 hours. The evaluation will include power output, electricity generation efficiency, operating range, reliability and performance degradation characteristics, and emission characteristics. AQMD funds will be used to install, operate, test and evaluate this integrated hybrid unit at UCI.

Benefits to AQMD

The proposed project is included in the November 1998 update of the Technology Advancement Plan under Project 98S2-1, "Development and Demonstration of Advanced Stationary Fuel Cell Power Plants." The proposed project addresses the air quality objectives stated in the AQMD’s AQMP which heavily rely on the expedited implementation of advanced technologies, clean fuels, and clean energy conversion devices to achieve air quality standards in Southern California.

The proposed 250 kW fuel cell hybrid power plant will be operated for approximately 500 hours. With an average heat rate of 6,500 BTU per kilowatt hour versus 10,000 BTU per kilowatt hour for a conventional power plant, the hybrid power plant represents a 35% reduction in fuel consumption, with resultant reduction in carbon dioxide emissions.

The hybrid cycle generation technology, using a PSOFC integrated with a MTG, combines two very promising emergent technologies that will result in higher efficiency and lower emissions per kilowatt hour of generation than other fossil fuel electric generators. The target electric-efficiency for this first hybrid demonstration is 55%. Air pollution and effluent emissions are expected to be near zero. The SOFC emissions are less than 1.0 ppm NOx, no detectable SOx, and negligible VOC and other toxic pollutants. The high temperature exhaust of the SOFC will be used to power the MTG, except for minimal supplemental burning during startups and low loads. If the demonstration is successful, the project will be an important step forward in the wide-scale commercialization of environmentally benign fuel cell-hybrids for multiple applications in the Basin. Hospitals, hotels, universities and other customers with high electricity demand are seen as likely markets for this technology.

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provisions B.2.c(1), "the desired services area are available from only the sole source based upon the unique experience and capabilities of the proposed contractor or contractor team," B.2. c(2), " the proposed project involves the use of proprietary technology," B.2. c(3), "the contractor has ownership of key assets required for project performance," and B.2. d(1), "other circumstances, including projects involving cost sharing by multiple sponsors." It is in the best interest of the AQMD to cosponsor this innovative project proposed by ETS and its contracting team that consists of Siemens Westinghouse and UC-Irvine.

ETS is a new, non-regulated subsidiary of Edison International, one of the largest utilities in the country. ETS plans to develop and market new technologies, products and services for the global energy and electricity marketplace. Siemens Westinghouse Power Corporation (Siemens), the inventor and developer of this solid oxide fuel cell, and Southern California Edison (SCE), together hold several patents and other related intellectual property to hybrid plants, and ETS has the necessary exclusive license to successfully commercialize worldwide these hybrid power-plants of size 500 kW and below. Thus, the key asset ETS owns is the acquisition of the exclusive marketing rights which, in turn, provide ETS the exclusive access to proprietary knowledge owned by Siemens Westinghouse and SCE. If the technology proves successful, ETS will commercialize this technology locally and worldwide.

Siemens is regarded as a world leader in the development of solid oxide fuel cells, with many successful demonstrations of prototype solid oxide fuel cell systems. It owns key assets in that it has acquired several patents on the tubular solid oxide fuel cell technology. Siemens is a global multinational providing services and products in electric engineering and electronics, with 400,000 employees around the world. Siemens develops and manufactures leading-edge products, and designs and installs complex power systems and power projects for customers in over 190 countries.

UC Irvine (UCI) will be the site for demonstrating the feasibility of this project. UCI has demonstrated unique experience and capabilities. It manages the National Fuel Cell Research Center (NFCRC), which was established to support the fuel cell industry with research, development and demonstration. Additionally, UCI is the home to the UCI Combustion Laboratory. This combustion lab is recognized as a "one-of-a-kind" facility in the country, focused on research for cleaner fossil energy through improved combustion. UCI is also testing several micro-turbines from various vendors. This knowledge would be useful in evaluating the performance, durability and emissions of the proposed integrated hybrid power-plant.

As listed below, there are several organizations co-funding this project. These include ETS, SCE, Department of Energy (DOE), UCI and the California Energy Commission (CEC).

Resource Impacts

The total amount of AQMD funding for the proposed project will not exceed $200,000. Total project costs of $16.2 million dollars are distributed as follows

This project is to be funded from the FY 1998-99 budget. Sufficient funds are available in the FY 1998-99 Budget from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Emission fee surcharges under this Clean Fuels Program are imposed on the largest stationary source facilities within the AQMD and are restricted, by statute, to support related stationary source clean fuel technology developments.

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