Commercialization of Residential FC in Japan ~ Current status and driving force for the success ~ Toshiba ENE-FARM ENE-FARM is a common brand name of a residential fuel cell system in Japan. 13, November 2013 Toshiba Fuel Cell Power Systems Corporation Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 1 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 2 History and Plan of ENE-FARM Commercialization in Japan After technology verification and large scale monitoring program, Japan started initial commercialization of 1kW class residential PEMFC “ENE-FARM” in FY2009. Around 50,000units are now operated in Japanese household. 2009 FY2000~ General Technology Technology verification verification Scheme FY2005~ Introduction Introduction FY2010~ FY2020~ Popularization Popularization Real Real CommercialCommercialization ization FY2020 10GW for Stationary Progress FY2002-FY2002 Fieldtest test Field Future Scenario (Possible Image for future) FY2005-2008 FY2005-2008 Large Scale Extensive Extensive Monitoring demonstration PJ demonstration PJ From Verification to Market Introduction by ENE-FARM Enlarge market size with cost reduction by mass production & technology breakthrough Introduction: Several k-units to several ten k-units Establishment: several ten k-units to several hundred k-units Real Commercialization: More than several hundred k-units Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 3 Large Scale Monitoring Program by Japanese Government Five system manufacturers joined to the program, and delivered 3,307units. Toshiba delivered 748 units among them. The Amount of CO2 Reduction [kg/month] In advance of commercialization, over 3,300unit of residential PEFC were installed and verified in FY2005 through 2008 under governmental program. In the program, system showed enough performance and reliability as future commercial product. Thermal Load of each House [MJ/month] Residential PEFC showed the performance to reduce 100kg/month of CO2 as the average. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 4 Status of ENEFARM Dissemination Trend of sales volume Start commercialization Sales started in 2009 with the declaration by government and energy companies on January, 28, 2009. [Annual volume] The sales volume has been increased year by year. Accumulated volume is expected to be more than 40,000unit in FY2012 25 20 20 12 15 10 5 5 2009 2010 5 0 2011 2012 2013 [Fiscal year] * the volume of 2012 is roughly estimated based on subsidy condition as of end of August Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 5 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 6 History of Stationary Fuel Cell in Toshiba Toshiba FCP started PEFC development in FY2000 and is about to reach real commercial stage in FY2012. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Millennium PJ NEF・IBEC test NEF Large Scale Demo Prg. NEF LSDP First model FY2005 NEF LSDP Final model Introductory support subsidy Initial Commercial model FY2007 Real Commercial model FY2009 28 years experiments of PAFC development in Toshiba 1980 1990 50kW Pilot plant 2000 TEPCO 11MW Plant(23k hrs.) Onsite 1MW Plant(16khrs). NEDO1MW Plant Onsite 200kW PC25C Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 7 2nd Generation Model of Toshiba ENE-FAEM (TM1-AD) The highest energy saving “1.5ton/year” The higher total efficiency “94% Total (39%E & 55&H) High value added “GI capability w/o battery” Cost competitiveness “Leading cost reduction among Japanese ENEFARMs” The longest durability “80k hrs w/o CSA replacement” Higher maintenance capability “3.5yrs maintenance interval. Work w/o system shut down” Fuel diversity and its tolerance “Already delivered commercial units in Japan” Easier installation “Lighter and smaller system” Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 8 Cost reduction approach “REDUCE” was one of core concept in accelerating the cost reduction. 30% of cost reduction was achieved with technology approach. Reformer ・Optimize catalyst FC unit ・Minimize length of welding System / Package: ・Simplify system ・Apply multi module piping Module pipe ・Apply low cost BOP Inverter & Controller ・High performance one integrated to single board FY2011 New CSA ・Reduce cell number (15%) ・Reduce catalyst (20%) ・Apply low cost material CSA Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 9 Successful shifting to commercialization in Toshiba PEFC Development •>35% Electric / >85% Total Efficiency •System durability longer than 70kh •Reliability better than 5% annual failure rate •Significant CR (to 1/8 level through 5years) •Tolerant system for raw fuel (NG & LPG) •Light weight for installation (104kg) •Low noise design (<40dB) Verification •Delivered around 800units since 2005 until 08 •The longest units recorded 30kh in real field •Total fleet operation time to be 10million hrs •CO2 reduction to be 1.2-1.4t/year •Reliability potential for commercialization 4,200 Commercialization readiness •Preparing production process •Maintenance and sales channel with energy companies •Getting Japanese certification Cost reduction results Performance improvement of components System simplification Manufacturing process improvement 価格(%) Relative Cost 100% Another 17% CR Further cost reduction Cost reduction after by massFY2009 80% 60% production Manufacturing process improvement 1/2 40% 1/3 1/4 20% 1/6 1/8 10000 Large scale demo. ⇒ Initial commercialization Cost reduction trend to 1/8 level withy 5years activity (12,388) 8000 6000 4,122 4000 2,557 1,655 2000 0% FY2008 FY2009 FY2009 FY2010 FY2011 FY2004 FY2005 06年(216台) FY2006 FY2007 FY2008 04年(開発機) 05年(140台) 07年(204台) 08年(203台) 09年(1500台) Development Phase ⇒ Significant volume increase after initial commercialization 12000 125 216 204 203 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 2013 Sales volume increase of Toshiba ENEFARM Successful shifting from development phase to commercialization over death valley! Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 10 Business and Market Expanstion toward the future Various application offers the possibility to expand ENE-FARM market and business toward the future. -20degC ambient HEMS、Smart grid with PV and Battery Continuous improvement of ENE-FARM as core product (cost, performance, reliability and durability and maintainability) Offering and preparing wider application to expand the market (HEMS, expanded GI option, fuel diversity, option for colder area) Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 11 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 12 Key factors for the commercialization of residential PEM ( from IPHE Conference in 2011) Residential PEM is on the commercialization phase since 2009 in Japan! 3 Aspects 5 Factors Collaboration among Japanese companies FCCJ Governmental leadership Technology potential of manufacturers w/ long history Collaborative development under NEDO Project [Core competence in technologies] Partnership with Energy companies and manufacturers [Governmental efforts] Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. [Company collaboration] 13 ~ Thank you ~ Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 14