12-12-07 ECMB Mtg - RD_D GenCell Proj Completion- by niusheng11

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									MULTI-YEAR PROGRAM;
FUEL CELL SYSTEM TECHNOLOGY DEVELOPMENT
and COMPONENT COMMERCIALIZATION
RD&D PROGRAM DEVELOPMENT PROJECT #03-2002 BY: GENCELL CORPORATION, SOUTHBURY, CT


                         IMPROVED FUEL CELL BIPOLAR PLATE
                           18-MO CONTINUATION PROJECT

                   Milestone Review – Project Completion
                                           ECMB Meeting
                                            Dec 12, 2007
 GenCell completed initial 3-yr program during Dec, 2005 and initiated the continuation project on Feb 15, 2006
 On 04-11-07 ECMB Approved 6-Mo T+12 Project Milestone & Continuation to Final Completion in Nov, 2007




                                                CONFIDENTIAL                                                      1
    TOPIC
                   TABLE OF CONTENTS                                       PAGE
    COVER TITLE PAGE – GENCELL 18-MO CONTINUATION PROJECT                   1

    TABLE OF CONTENTS                                                      2

    PRESENTATION PURPOSE                                                   3
    CONTINUATION PROJECT OBJECTIVE                                         4
    SCHEDULE & MILESTONES                                                  5
    ACCOMPLISHMENTS                                                        6, 7
    CONTINUATION PROJECT – COST SUMMARY                                    8
    CEEF’s, C&LM JOINT-UTILITY RD&D PROGRAM STAFF & PWG RECOMMENDATION     9


    **GENCELL BACKGROUND SUMMARIES – FOR INFORMATION**

    SUMMARY – CEEF, C&LM INVESTMENT AND LEVERAGING                         11
    GENCELL’S AWARDED & PLANNED PROPOSALS                                  12
    GENCELL FOLLOW-ON ACTIVITIES                                           13
    GENCELL’S UPCOMING PROJECTS                                            14
    GENCELL’S MCFC SYSTEM #1 (UCONN) POST-TEST ANALYSIS                    15
    GENCELL’S MCFC SYSTEM #2 IN STARTUP AND SYSTEM #3 IN SHIPMENT          16
    GENCELL’s MCFC SYSTEM TARGETED COST REDUCTIONS – ON TRACK              17
    GENCELL’s BUSINESS MODEL                                               18


       **INITIAL 3-YR PROGRAM (T+0 → T+36) SUMMARIES - FOR INFORMATION**

    PROJECT CHRONOLOGY – ECMB PRESENTATIONS                                20, 21



                                        CONFIDENTIAL                                 2
 Presentation Purpose
                     Project Completion Review of GenCell Corporation‟s
    IMPROVED FUEL CELL BIPOLAR PLATE 18-MO CONTINUATION PROJECT
The purpose of this presentation is to provide a brief status of the GenCell Fuel Cell Development
Program Continuation Project at the project completion Milestone.

Background:
      On Feb 15, 2006 GenCell initiated the ECMB approved $150K continuation project
      subsequent to satisfactory completion of initial 3-yr program in Dec, 2005.

Review Criteria: Every six months conduct an assessment and submit a progress report to ECMB with the
market conditions to determine if resources for any particular technology focus would be enhanced or diminished.
The purpose of this effort will be evaluating acceleration of some commercialization efforts and avoiding
unproductive/ineffective research effort.

   (ECMB milestone presentations required for Continuation Project at T+6, T+12, & Final Completion)

Progress reports to ECMB every six months provide an update on the success of GenCell meeting the project milestones.
The ECMB will have the ability to approve continued funding or to stop the project.
Every three months and prior to each presentation to ECMB, the RD&D Program Policy Working Group (PWG) will review
the report, make comments and reach a consensus on the recommendation by RD&D.

Note 1: The Continuation Project T+12 milestone status report was presented to PWG Mar 22, 2007 recommending
continuation to project completion including a 3-mo no cost extension. PWG approved the continuation contingent upon
satisfactory progress at the monthly milestones and ECMB funding continuation vote approval at the ECMB Meeting on
April 11, 2006. ECMB voted to approve 3-mo no cost extension and funding to project completion.


                                                   CONFIDENTIAL                                                        3
Improved MCFC Bipolar Plate Technology
Continuation Project - Objective
                   $150K, Continuation Project Initiated Feb 15, 2006
Project Objective: Develop technologies to join multiple coils of dissimilar materials in continuous
                   coil- to-coil mode of manufacture.

Basic Goals: - ANTICIPATED BENEFITS
  Reliability: Improve bipolar plate quality to decrease corrosion and increase fuel cell stack life.

   Manufacture: Develop suitable joining method using mill clad aluminum                              RE-COILED FOR
                                                                                                       PLATE STAMPING
    sheet to replace existing aluminization process and eliminate hazmat.

   Cost: Reduce manufacturing cost by consolidating                                                JOINING STATION
                                                                                                  (NEW TECHNOLOGY)

    3 manufacturing steps into one hi-volume operation.


                                                                                      STAINLESS




                                                                                    MILL-CLAD STAINLESS


 GenCell current bipolar plate design                        Proposed coil-to-coil manufacture

                                             CONFIDENTIAL                                                               4
Improved MCFC Bipolar Plate Technology
Continuation Project - Schedule & Milestones
Continuation Project By: GENCELL Corp., Southbury, CT




                                           CONFIDENTIAL   5
Improved MCFC Bipolar Plate Technology
Continuation Project – Accomplishments
   Evaluated several different joining technologies and their manufacturing
    methods to select laser welded approach.
       Progressed through multiple designs “A” to “E” resulting in:
          Laser butt weld in the coil direction
          Laser lap weld for the plate end seals (cross coil direction).

       Demonstrated mfg methods in prototype manufacturing tests.

       Produced welded samples:
          Flat stock
          Actual stamped parts.

   Secured the capable technical assistance of the Connecticut Center for
    Advanced Technology‟s (CCAT) Laser Application Lab, who filled the need
    of “Process Supplier” in the program.



                                        CONFIDENTIAL                           6
Improved MCFC Bipolar Plate Technology
Continuation Project – Accomplishments
    Tested laser and resistance seam welds in extended corrosion test with hot
     MCFC electrolyte.

    Produced mock bipolar plate and pressure tested welds.

    Designed and built prototype fixture for laser butt welding in coil direction. Tested
     in collaborative work at the Laser Applications Lab.

    Tested full size laser bipolar plate, a 2-segment single cell, in a new MCFC test
     platform.

    Estimated capital and operating costs to implement on a commercial scale.

    Identified quality control requirements, including sensors and controls for
     commercial volume production.




                                     CONFIDENTIAL                                        7
Improved MCFC Bipolar Plate Technology
Continuation Project – Cost Summary
Per Proposal and Award → $200,000 Program:
 $150,000 from CEEF
 $ 50,000 private cost share from GenCell and TMI (RI)

Actual vs Estimated → $250,000+ Program:
 $150,000 from CEEF
 $112,000 private cost share from GenCell and CCAT LAL
   - GenCell - $37,000
   - CCAT‟s Laser Application Lab - $75,000 (estimated)

Result: Cost Share Exceeded Expectations


 Continuation Project leveraged an additional $70,000:
 $50K from GenCell‟s Mexico partner to test 2-Segment MCFC (project completed).
 $20K opportunity with GenCell Asian partner for 2-segment MCFC (order within ~3mo)



                                    CONFIDENTIAL                                   8
    CEEF’s C&LM, RD&D Program Recommendation
    ECMB Meeting Dec 12, 2007
Fuel Cells are still considered „too expensive‟:
o      C&LM staff and RD&D PWG regularly reviews news and speaks with industry experts which confirm current opinion;
o      Connecticut Academy of Science, (CASE) “Fuel cells are an evolving technology, and the current costs are
       relatively high compared to other currently available distributed energy products.”
o      CASE FC study estimates costs at ~$2,000 - $10,000/kW
o      FC Technology now available „off-the-shelf‟ is $3,000-$4,000/kW range
o      Higher electric rates (congestion charges) may make fuel cells more attractive.

Improved Fuel Cell Bipolar Plate has several anticipated benefits:
o      Improve quality to decrease corrosion and increase stack life.
o      Eliminate hazardous material in manufacturing.
o      Consolidate three manufacturing steps to one hi-volume operation.
o      Improve downstream operations (eyeleting).
o      Solve other fuel cell materials problems with same approach.
o      Generate patentable intellectual property.
o      Reduce manufacturing cost.
o      Increase component revenues.



Recommendation:
       CEEF‟s C&LM, Joint-Utility RD&D Program Staff & PWG Recommendation:
       Approve Project Completion Milestone and Final Payment of $15K



                                                   CONFIDENTIAL                                                  9
GenCell Background Information




            CONFIDENTIAL         10
    CEEF C&LM Investment & Leveraging
o     CEEF Total investment in GenCell as of 12/12/07: ~$4.13-Million:
            2001:    $1,116,566

            CEEF Investment under the $2.9-Million 3-yr FC Development Program.
            2002: $ 250,000
            2003: $ 950,000
            2004: $1,200,000
            2005: $ 500,000
                   $2,900,000

            CEEF Investment under the $150k Improved FC BiPolar Plate Continuation Project to date:
            2006:   $110,000   and 2007: $25,000         (Remaining Final Pmt: $15,000)

o     CEEF C&LM funds have enabled GenCell to leverage >$2.3-Million add‟l funds to date:
            2002: U.S. Dept of Energy -       $ 200K
           *2003: CCEF -                      $ 450K
           *2004: CCEF -                      $ 438K
            2007: CT State SBIR award         $ 65K
            2007-08 – U.S.Dept of Energy      $1,200K
                            TOTAL =         $2,350,000
         *(CCEF funding is convertible loan at 0% with warrants (25% of loan value)

o     CEEF C&LM funds have enabled GenCell to leverage >$2 Million strategic partner funds to date.

      NOTE: On 07/12/05 ECMB Approved $150K for BiPolar Plate Development Continuation Scope
      contingent upon 100% attainment of milestone deliverables under initial 3-yr program contract at T+36.
      100% T+36 project completion presentation to ECMB on 12/13/05. Continuation project commenced 02/15/06.

o     Royalties to C&LM Fund: 2% for 10-yrs; 1% for 5-yrs; could amount to ~$1-Million/yr in 2010.

                                                     CONFIDENTIAL                                               11
GENCELL’s Awarded & Planned Proposals

         Agency                 Partner               Technology              Status                 Value
DOE Bipolar Plate       Oak Ridge National Labs         PEM for            SUCCESSFUL
“National Lab only                                     automotive             Funding
solicitation”                                          applications        to commence
                                                                             July 2007          $750,000 in 1st 12
                                                                                               months, $550,000 in
                                                                                               second 12 months
CT “State SBIR” (OWC)         Confidential           SOFC for military     SUCCESSFUL
                         nanotechnology partner        applications          Funding
                                                                              started
                                                                             Feb 2007            $65,000 in 2007
CT Clean Energy Fund    Several candidate projects      MCFC for          Evaluating several
(CCEF)                           in state               stationary       candidate CT users
                                                       applications             now.
                                                                                                    $500,000
U.S. Dept of Energy         GenCell is prime         MCFC for “direct    Phase 1 proposal
(DoE)                         contractor              coal fuel cell”    due Jan 15, 2008




                                                                                                 $200,000 (total)



                                                  CONFIDENTIAL                                                      12
Improved MCFC Bipolar Plate Technology
Post Continuation Project → Follow-on Activities


   GENCELL Follow-on Laser Bipolar Plate Manufacturing Development

       Additional 2-segment work with conventional and laser welded plates

       Implement continuous laser butt welding with possible CCAT LAL, Lean
        Mfg help

       Continuous visual defect detection – Univ of Hartford (ME Dept) with LAL

       Potential collaboration with CT mfg, LAL, via SBIR proposal


    CCAT LAL = Connecticut Center for Advanced Technology‟s Laser Application Lab

                                   CONFIDENTIAL                                     13
GENCELL’s Upcoming Projects
Related to Earlier CEEF Funded Projects


  Follow-on laser welded plate work


  20-40 kW MCFC in-state demonstration with CCEF Operational
   Demonstration Program funding


  Hi-Temp PEMFC stacks




                                CONFIDENTIAL                    14
GENCELL’S 40 kW MCFC Demo System #1 (UCONN)
Completed Teardown, Post Test Analysis at GenCell Shop




     Shipped ~ January 2005           Returned to GenCell shop in 2006.
                                       Photo shows stack teardown for
    Installed, Operated in 2005           post-test analysis of each
    CT Global Fuel Cell Center                cell/bipolar plate




                              CONFIDENTIAL                                15
GENCELL 2005-06 Demonstration System Progress
With Strategic Partners




       Demo System #2                            Demo System #3
   Operated at partner‟s plant                  Stack in shipment to
         (Italy Partner)                           (Asia Partner)


                                 CONFIDENTIAL                          16
    GENCELL’s MCFC System Targeted Cost Reduction

   GenCell strategy is to use its cost advantages to bring high temperature fuel
    cells (MCFC or SOFC) to the MID-SIZE USER (40-125kW)
       More difficult without the MW class economy of scale but,
       Much, much larger market potential


   GenCell‟s technology allows cost reduction with much lower volume
    requirements than other fuel cell suppliers, but requires reasonable capital
    investment to implement GenCell “designed for manufacturing” approach


   GenCell‟s MCFC System cost projected to be reduced to approximately
    $3,000/kW at 1 MW/year volume


   GenCell‟s MCFC System cost projected to be reduced to approximately
    $1,750/kW at 10 MW/year volume



                                          CONFIDENTIAL                              17
    GENCELL’s Business Model
   GenCell Business Strategy - revised in response to investor and market feedback to:
    (1) Sell bipolar plate components to other fuel cell manufacturers
    (2) License MCFC systems technology to strategic partners, sell them demonstration systems and components

   MCFC System business focused on forming strategic (manufacturing, distribution)
    partnerships to provide revenue from demonstrations (short term) as well as a continuing
    market for components: This will reduce capital outlays and minimize time to profitability.

   GenCell is in the “Later Stage” in the chart below:

                                                                          2011
                                                                        $60 MM/yr

               Target                                                   Strategic
                Rev                                  2007-09
                                                                         Partner
               $MM/yr                               $4.0 MM/yr          Business
                                                 Early System            Model
                                   2005-06           Sales
                                $1.5-2.0 MM/yr                         Demo Systems
                                                                       Licensing
                                 Strategic        ~50%                Components
                 2000-04                           Subsidies
                                  Partner         Use Strategic
                 $1 MM/yr
                                 Funded            Partners
                  Grant
                                Demo Systems
                 Funded         Licensing
                  RD&D          Components

                Early Stage     Later Stage      Market Penetration     Expansion


                              GenCell Phase and Capitalization




                                                           CONFIDENTIAL                                         18
Initial 3-YR Program (T+0 → T+36)

       ECMB Chronology

   Summaries for Information


              CONFIDENTIAL          19
   BACKGROUND – ECMB CHRONOLOGY
GenCell‟s RD&D Project (T+0) - $2.9-Million, 3-yr, Multi-Year Fuel Cell System Technology Development and
Component Commercialization Program approved by ECMB during fall, 2002. This program was initiated on November 18,
2002, with the requirement to provide progress reports to the RD&D Policy Working Group (PWG) at 3-mo intervals, and to
ECMB at 6-month intervals – (May & Nov), to validate the prudence of proceeding with the next increment of work scope.

May 13, 2003 (T+6) - The first 6-mo progress report (T+6) was presented to ECMB on May 13, 2003. GenCell received
ECMB funding approval continuance through the remainder of 2003.

September 23, 2003 (T+10) - CenCell‟s program progress report was presented to ECMB in support of obtaining
DPUC‟s advance budget approval of 2004 funding at the $1-million level, i.e., $830K from 2004 funds and $170K from
unused 2003 C&LM funds. The purpose of the advance budget approval request was to enable GenCell to obtain an
additional $437K co-funding from CCEF to support planned installation of a 40-kW MCFC demonstration at the UCONN
Global Fuel Center during early 2004. GenCell received ECMB approval to request advance budget approval from DPUC

October 24, 2003 - DPUC issued Motion 17 under Docket No. 03-01-01 approving the $830K of 2004 funds towards the
RD&D program‟s on going fuel cell project with GenCell in advance of the 2004 budget filing. The original and revised
RD&D funding schedules are provided for comparison purposes.

                          Original: $2.9-Million GenCell Program - C&LM Funding Schedule:
                          2002 – Initial $250K; 2003 - $950K; 2004 - $1.2-Million; 2005 - $500K

                          Revised: $2.7-Million GenCell Program – C&LM Funding Schedule: ($200K Reduction)
                          2002 – Initial $250K; 2003 - $950K; 2004 - $1.0-Million; 2005 - $500K.

November 12, 2003 (T+12) – GenCell‟s program progress report (T+12) was presented to ECMB on Nov 12, 2003.
GenCell received ECMB funding approval continuance for the next six months to milestone (T+18).




                                                      CONFIDENTIAL                                                      20
BACKGROUND – ECMB CHRONOLOGY
   May 11, 2004 (T+18) – GenCell‟s program progress report (T+18) was presented to ECMB on May 11, 2004.
    GenCell received ECMB funding approval continuance for the next six months to Milestone (T+24) Nov, 2004.


   August 10, 2004 (T+21) – GenCell‟s progress report (T+21) was presented to ECMB on Aug 10, 2004. GenCell
    received ECMB funding approval continuance for the next three months to milestone (T+24), November 11, 2004.
    GenCell received ECMB approval to restore $200K to the program budget for 2004 that was reduced on Oct 24, 2004.
    The GenCell Program budget is now consistent with the signed agreement:

              Restored to Original: $2.9-Million GenCell Program - C&LM Funding Schedule:
                2002 – Initial $250K;  2003 - $950K;    2004 - $1.2-Million; 2005 - $500K

                          YR-2005 $500K Funding Distribution Schedule:
    @T+27 Milestone Approval: $200K; @T+30 Milestone Approval: $200K; @T+33 Milestone Approval: $100K

   November 15, 2004 (T+24) – RD&D Program Staff presented GenCell‟s progress report (T+24) to ECMB.
    GenCell received ECMB funding approval continuance for next six months to Milestone (T+30) May, 2005.

   May 10, 2005 (T+30) – RD&D Program Staff to present GenCell‟s progress report (T+30) to ECMB.
    ECMB funding approval will provide for continuance for next six months to Milestone (T+36) Nov, 2005

   July 12, 2005 (T+33) – RD&D Program Staff presented GenCell‟s proposed 1-yr, $150K continuation proposal to
    ECMB recommending approval. ECMB approved 1-yr continuation project contingent upon satisfactory completion of
    on-going program scope at Milestone T+36.

   Dec 13, 2005 (T+36) – RD&D Program Staff ~1-yr continuation project presented GenCell‟s progress report
    (T+36) to ECMB.
    ECMB approved initiation of and funding for “Improved Fuel Cell BiPolar Plate” Continuation Project.


                                               CONFIDENTIAL                                                   21

								
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