1 Tecogen Technology Review The Emerging Technologies Coordinating Council December 10, 2012 Bob Panora President and COO Outline 2 Company Background Key Technology Areas (CA Funded) Microgrid Enabled CHP Module Commercial High Applications Efficiency Water Heating (Ilios) Advanced Advanced Engine Emissions Control System Application to Commercial Products Other Engines 3 Company Background World Energy Use/Opportunity for Efficiency Improvement 4 Basis for Our Products 5 Remote Power Station Power is Inefficient Substantial Improvement (~2X) Possible if… Power Generation Distributed Power Generation is Staged Second Stage is Applied to Onsite Heating Product Offering (3 general Areas) Combined Heat and Power (CHP) Air Conditioning High Efficiency Heating (Heat Pump) Tecogen’s Customer Base Office Buildings 13% Multi-Unit Residential 12% Other 15% Industrial 15% Hospitals 14% Schools 17% Depart. Stores Sports Arenas Ice Rink Hotels Athletic Clubs Senior Homes 13% TECOGEN Inc. – Many Local Installations & Factory Service (off map:) * (off map:) Recn Facility Office Industrial Govt Office Bldg College Recn Facility Recn Facility Govt (Jail) * * Hospital * Recn Facility Nursing Home Hospital Govt Lab Apts Nursing Home Apts Apts Apts Nursing Home Recn Facility Hospital Nursing Home Recn Facility Nursing Home Recn Facility Hospital Nursing Home Nursing Home Nursing Home Nursing Home Nursing Home Apts Recn Facility Hospital Nursing Home Apts Apts Nursing Home Apts School College Apts Hospital Nursing Home FACTORYSERVICED TECOGEN COGEN MODULES & CHILLERS IN BAY AREA Recn Facility T Hospital Recn Facility Recn Facility School Recn Facility Nursing Home Recn Facility Hospital * * College (off map:) Govt Nursing Home School School (off map:) College College 9 Tecogen Products For CA Market Sample Tecogen InVerde CHP system CA Funded CHP Module (InVerde) Development Funded By Pier (CEC) and SoCal Gas Funds Utilizes Technology From Related Commision Projects CERTS Microgrid Ultra-Low Emissions Important Features Seamless Transfer in Outage Utility Friendly Certification UL 1741 Emissions Compliant South Coast Rule 1110.2 CE Mark for EU Off-Grid System in NYC Microgrid Feature 11 Demonstrated in Recent NY Outage (Sandy) 400 Unit Condo Operated 5-6 Days Fully Powered SMUD Headquarters Demo CEC Funded Completely Seamless Transfer Advanced Heat Pump Water Heater 12 Incorporates Two CA Funded Technologies Advanced Natural Gas Engine (CEC Funded) Ultra-Low Emissions (CEC/SoCal) Important Features Rule 1110.2 Compliant Peak Efficiency >200% Just Introduced Favorable CHP Conditions 14 Fuel of Choice - Natural Gas Supply Abundant/ Anticipate Long-Term Low Price High Product Demand in Traditional/New Markets Microgrid Capability Increasingly Important Feature California Historically Difficult Market Positive Development Emissions/Tariff Issues/Interconnection Tecogen Emissions Breakthrough Sept/Oct 20-Stop Road Show 15 Engine Emissions Pollution Levels Comparable to Fuel Cells Advanced Emissions System 16 2008 Tecogen Was Awarded Research Contract by California Energy Commision and SoCal Gas Goals System Compliant with Latest SoCal (SCAQMD) Regulations for Distributed Generation (DG) Back Story Several Years Earlier The District Had Exposed Shortcomings of the Aftertreatment Systems for Natural Gas Engines In 2008 Issued New Regulation for DG Technologies (Rule 1110.2) Based on “CARB 2007” Combined Heat in Power in CA Facing Uncertain Future Compliance of Engine-Base Systems Not Feasible Emerging Technologies Still Constrained by Cost, Other Shortcomings No Viable CHP Option in CA Project Outcome 17 Faced Intractable Problem Price of Very Low NOx is High CO Price of Low CO is High NOx Final Stages of Project Produced Unexpected Breakthrough Highly Positive Attributes Easily Commercialized Modest Cost/Design Impact No Significant Performance Penalty Appears Transferable to Other Engines Before….Low NOx, but non-Compliant CO 18 After…Highly Compliant all Pollutants 19 Company Confidential Additional Testing AVL Gmbh (Lake Forest CA) 2.5 Liter Automotive Engine Natural Gas Fueled Field Test (San Fernando, CA) Standard Tecogen CHP Unit (Retrofitted) 24/7 Application Continuous Sampling 4 Times Per Hour/3 Minutes Source Test (San Fernando, CA) Licensed Emission Contractor Follow Mandated Process for Permit Long-term Compliance ppm [@ 15% O2] 20 15 CO - CARB Limit NOx CO 10 NOx - CARB Limit 5 0 4/1 5/6 6/10 7/15 8/19 9/23 10/28 12/2 1/6 2/10 3/16 4/20 5/25 6/29 8/3 * w/ 60% Efficiency credit Date Performance (8000 hr Source Test) 22 Emissions [ppm @ 15% O2] 30 25 20 NOx 70 ppm CO 15 10 CARB CHP CO Standard4 5 CARB CHP NOx Standard 4 0 Tecogen Ultra Fuel Cell Engine BACT 1) Tecogen emissions based upon actual third party source test data 2) Fuel Cell emissions from Summary Report - Fuel Cell Emission, CEC Grant PNG-06-002, by University of California Irvine-Subcontract UCI-06-002. 3) Stationary engine BACT as defined by SCAQMD. 4) Limits represent CARB 2007 emission standard for Distributed Generation with a 60% (HHV) Overall Efficiency credit Why Emissions Are Important 23 Annual Pollution Created (lbs/year) 1400 600 megawatt-hrs Electricity 40.2k Therms Heat 1200 1000 800 CO 600 NOx 400 200 0 CO n/a Pollution From Power Plant From Gas Boiler From Typical CHP Unit EPA BACT Advanced Tecogen System Current Status 24 Available in All Tecogen CHP Products (“Ultra" Option) Successfully Certified in NJ Clean DG Patent Applications in Process (US/EU/Other) Technology Published in Peer-Reviewed Scientific Forum Society of Automotive Engineers (SAE) Up-fit Program to Industrial Water Pumping Engine Air Permit Exemption SoCal Gas/Local Water District Lake Forest CHP Unit Source Test (Imminent) Milestone Permit (Rule 1110.2) 25 California–Specific Market Barriers California Policy and Regulatory Issues 26 Oct 2012 U.S. Clean Heat and Power Association Forum (DOE) Panel “The California Conundrum– Policy vs. Practice” Highlighting the Dismaying Evolution of CA CHP Policy Main Points Highly Varied Incentives and Exemptions Based on Technology Rather Than Neutral Parameters Should Have Technology Neutral Basis (Efficiency, etc.) Rule 21 Certification Not Available For InVerde (Manpower Constraints) Complexity Burdensome Small Projects Standby/Departing Load Charges Thank You! 27 robert.panora@tecogen.com Tecogen Inc. 45 First Ave, Waltham MA 781-466-6401