1. Fuel Cell mCHP: Pathways in the UK to a low carbon future
ene.field and PACE projects: findings and overview
Lisa Ruf, Element Energy
13th March 2017
The research leading to these results has received funding from the European Union´s 7th Framework Programme (FP7/ ) for the Fuel Cells and Hydrogen Joint Undertaking Technology Initiative under Grant Agreement Number

2. What is micro-CHP? Micro-Combined Heat and Power…
…is a highly efficient distributed energy solution, simultaneously producing heat and electricity near the point of consumption
…meets demand for heating, hot water and/or cooling in buildings while generating electricity to replace or complement the grid supply
…normally installed in residential and public buildings, as well as small businesses
With an overall efficiency of up to 96 per cent. Compared with a condensing boiler and electricity sourced from the grid, the systems reduce CO2 emissions by up to one third.

3. ene.field & PACE are part of a larger deployment effort
> 2,500 units
€34 million – EU funding
Further product innovation, cost reduction and policy & market development
Up to 1,000 units
27 partners from industry and research
€26 million EU funding
Show potential of market segment & open new market
High level recognition under the Energy Union Framework (upcoming EED, EPBD Reviews, Electricity Market Design Initiative)
Large scale deployment of FC mCHP in Germany
Subsidies to max 40% of eligible costs (e.g. € for a 1 KWe unit)
Targetting end-users (initial)
433
~500 units installed
Significant costs reduction achieved
> 3million operating hours
System reliability confirmed
Subsidies unconfirmed

4. Introduction to ene.field project
ene.field is the largest European demonstration of fuel cell micro-CHP to date
It aims to deploy around 1,000 Fuel Cell heating systems in 11 key European member states
Project duration of 5 years. Systems will be demonstrated for 2 to 3 years
Monitoring for all units
Outputs of the project include:
Detailed performance data
LCC & LCA assessments
Market analysis & commercialisation strategy
Policy recommendations
project goal
• market launch of fuel cell systems in Europe
• creation of European supply chains
• development of commercial models
• installation of around fuel cell systems in Europe
Ene.field will aim to deploy and monitor up to 1,000 units across 12 Member States. It represents a step change in the volume of fuel cell deployment for this sector in Europe. By learning the practical implications of installing, operating and supporting a fleet of fuel cells with real world customers, ene.field will demonstrate the environmental and economic imperative of FC mCHP, and lay the foundations for market exploitation. The primary outcomes from ene.field will be:
- Real world learning - demonstration of market potential, segmentation, cost and environmental benefits of FC mCHP.
- Develop market focused-products – specifications and harmonised codes and standards.
- A more mature supply chain, readied for deployment of FC mCHP.
- An evidence base on cost and environmental performance that can be used to accelerate policy support from governments and adoption by channels to market.
Countries of installations in Europe
Status as of Feb. 2017, additional systems to be deployed
Source: ene.field project 4

5. ene.field is a European platform for FC micro-CHP
The consortium brings together 27 partners including:
the leading European FC micro-CHP developers,
leading European utilities ,
leading research institutes
The consortium brings together all of the leading European fuel cell micro-CHP developers under a single partnership and combines them with some of the leading European utilities. In addition, there are several research partners to be able to produce world leading data and research in a number of diverse areas. Some other partners will be in charge of the dissemination and coordination of the project.
The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is committing c. €26 million to ene.field under the EU's 7th Framework Programme for funding research and development

6. ene.field FC mCHP Field trials partners and products
 Vitovalor 300-P
Viessmann
FCmCHP G4
Ballard Power
Galileo 1000 N
Hexis
Logapower FC10 Bosch (Buderus)
Cerapower
Bosch (Junkers)
Dachs InnoGen
Baxi Innotech
G5+
Vaillant
SteelGen
Ceres Power
Elcore 2400
Elcore
BLUEGEN
SOLIDpower
ENGEN2500
SOLIDpower
Inhouse 5000+
RBZ
Source: ene.field project | FC mCHP: Fuel Cell microCombined heat and Power 6

7. Reliable performance has been demonstrated
Demonstration projects such as Callux and ene.field have shown reliable performances
Hours of operation
kWh of power produced
>3.2 million hours of operation
2.8 million kWh of power produced
This contributes to the already >4 million hours and 2.5 million kWh of power produced recorded under Callux project in Germany
Cumulative operational hours and kWh produced between 2014 and 2016
Source: ene.field project

8. Early results and status of analysis conducted
The ene.field project is now entering into the final period of the project
A number of reports and deliverables have also been completed for the project and are available on the website
ene.field Public Deliverables
Field Support Report - evaluation of the current state of the art for field support arrangements, training and certification
Position Paper on RCS (regulations, codes and standards) overview of the current European framework for installation aspects
European Supply Chain Analysis Report - evaluation of the maturity, competition and standardisation levels
Position Paper on Smart Grid Capabilities – analysis of potential for FC-micro-CHP to positively contribute to grid stability in the context of the emerging smart grid model
Report on the Grid Connection of fuel cell based micro-CHPs: Standards, legislations, issues and lessons learned - insight in the current status of grid connections (incl. standards, legislations, connection guidelines and issues)
Non-economic barriers: preliminary report - identifies product perception by consumers or installers, policy and political environment
Field Support Reports: Review of lessons learnt - analysis of the lessons learnt and of future needs for installation and field support
See full reports here:
Source: ene.field project

9. PACE – Pathway to a Competitive European FC mCHP Market
9 Partners
representing manufacturers, utilities & research community
> 2.500
FC mCHP
to be deployed across Europe between
Across 10 countries
Incl. 4 target countries: Belgium, Italy, NL & UK
€90 m total budget
€ 33.9 mil in
Horizon2020 funding
via FCH JU
OBJECTIVES:
Product innovation and cost reduction
Supply chain development
Policy collaboration
Demonstrating and verifying primary energy savings, and testing grid benefits
Product innovation and cost reduction – constructing and demonstrating next generation FC mCHP units, designed for cost reduction, increased performance and mass manufacture
Supply chain development – working to build a more competitive EU component supply chain
Policy collaboration – working collaboratively with members states to develop policy to enable the transition to wider roll-out.
Demonstrating and verifying primary energy savings, and testing grid benefits – for innovative business model application

10. PACE – Pathway to a Competitive European FC mCHP Market
will demonstrate that FC mCHP products are smart grid ready and that they can run on renewable fuels, thus enabling a higher uptake of renewable energy
brings innovative products to the consumer through new business models
will provide up-skilling opportunities for the domestic heating sector supply chain (i.e. installers, planners)

11. Conclusions and key successes for ene.field & PACE 1/2
ene.field and now PACE are contributing to show reliable performance and advances in quality of the products and support opening new markets for further commercialisation activities
Reduction in appliances dimension and weight, system are now better fitted for quick installations, reduction in maintenance requirements
Callux project led to significant progresses: 90 % lower service costs, 60% reduction of the cost of producing fuel cell heating units, 90% reduction of the costs for servicing and stocking replacement parts
While FC mCHP are already competitive with regards to OPEX and GHG emissions compared to other heating technologies, CAPEX needs to be reduced significantly for the technology to be attractive to a wider group of customers
Increased manufacturing volumes is expected to be the biggest driver of capital cost reductions, which will require a stable policy framework and high level political commitment to ensure investor confidence
Administrative barriers and lack of harmonisation of standards are preventing access to existing support schemes
ene.field and now PACE are the largest European deployment of FC mCHP energy solutions to date, contributing to advances in quality of the products and opening new markets for further commercialisation activities
Demonstration projects such as Callux and ene.field show reliable performance and advances in products quality (reduction in appliances dimension and weight, system are now better fit for quick installations, reduction in maintenance requirements)
90 per cent lower service costs
With the support of the German Federal Government, the participating companies and research institutes have made technical improvements to the fuel cells and reduced costs. To achieve these goals, the German Federal Ministry of Transport and Digital Infrastructure (BMVI), together with the industry, invested 75 million euros through the National Hydrogen and Fuel Cell Technology Innovation Programme. The result was a 60% reduction of the cost of producing fuel cell heating units. The project participants reduced the costs for servicing and stocking replacement parts by 90 per cent. A new communication interface, the Callux Box, transmits fault and error messages and ensures more effective system support. During the project, installation was simplified with improved integration in existing building services equipment. As the project progresses, the number of service deployments was halved. One of the main contributors to this was increasing the average stack service life to over 16,000 hours. The electric efficiency increased to 34 per cent, while the overall efficiency rose to up to 96 per cent. Compared with a condensing boiler and electricity sourced from the grid, the systems reduce CO2 emissions by up to one third.
While FC mCHP are already competitive with regards to OPEX and GHG emissions compared to other heating technologies, CAPEX needs to be reduced significantly for the technology to be attractive to a wider group of customers.
Increased manufacturing volumes is expected to be the biggest driver of capital cost reductions, which will require a stable policy framework and high level political commitment to ensure investor confidence
Collaboration among industry, research institutes and other relevant stakeholders at European and national levels is expected to contribute to accelerate costs reduction and tackle some key challenges around supply chain development.
European industry is investing substantial sums, given its belief in the potential of FC mCHP to deliver environmental and economic benefits, however commitment needs to be sustained by high level political recognition of these benefits
The market uptake of FC micro-CHPs requires a coherent, steady and predictable policy framework  Analysis conducted in the context of the project showed that these conditions are not in place today
Germany is the strongest early market, this is due to regional funding opportunities, tolerance of higher cost heating systems and a more developed manufacturer and installer base, among other factors
Financial support is key during the transitional period to mass commercialisation as shown by the European experience promoting other emerging technologies (e.g. PV, heat pumps)

12. Conclusions and key successes for ene.field & PACE 2/2
Collaboration among industry, research institutes and other relevant stakeholders at European and national levels is a key enabler
European industry is investing substantial sums, however commitment needs to be sustained by high level political recognition of these benefits
The market uptake of FC micro-CHPs requires a coherent, steady and predictable policy framework
Analysis conducted in the context of the project showed that these conditions are not fully in place today
Germany is the strongest early market, this is due to regional funding opportunities, tolerance of higher cost heating systems and a more developed manufacturer and installer base, among other factors
Financial support (national and European) is key during the transitional period to mass commercialisation as shown by the European experience promoting other emerging technologies (e.g. PV, heat pumps)
ene.field and now PACE are the largest European deployment of FC mCHP energy solutions to date, contributing to advances in quality of the products and opening new markets for further commercialisation activities
Demonstration projects such as Callux and ene.field show reliable performance and advances in products quality (reduction in appliances dimension and weight, system are now better fit for quick installations, reduction in maintenance requirements)
90 per cent lower service costs
With the support of the German Federal Government, the participating companies and research institutes have made technical improvements to the fuel cells and reduced costs. To achieve these goals, the German Federal Ministry of Transport and Digital Infrastructure (BMVI), together with the industry, invested 75 million euros through the National Hydrogen and Fuel Cell Technology Innovation Programme. The result was a 60% reduction of the cost of producing fuel cell heating units. The project participants reduced the costs for servicing and stocking replacement parts by 90 per cent. A new communication interface, the Callux Box, transmits fault and error messages and ensures more effective system support. During the project, installation was simplified with improved integration in existing building services equipment. As the project progresses, the number of service deployments was halved. One of the main contributors to this was increasing the average stack service life to over 16,000 hours. The electric efficiency increased to 34 per cent, while the overall efficiency rose to up to 96 per cent. Compared with a condensing boiler and electricity sourced from the grid, the systems reduce CO2 emissions by up to one third.
While FC mCHP are already competitive with regards to OPEX and GHG emissions compared to other heating technologies, CAPEX needs to be reduced significantly for the technology to be attractive to a wider group of customers.
Increased manufacturing volumes is expected to be the biggest driver of capital cost reductions, which will require a stable policy framework and high level political commitment to ensure investor confidence
Collaboration among industry, research institutes and other relevant stakeholders at European and national levels is expected to contribute to accelerate costs reduction and tackle some key challenges around supply chain development.
European industry is investing substantial sums, given its belief in the potential of FC mCHP to deliver environmental and economic benefits, however commitment needs to be sustained by high level political recognition of these benefits
The market uptake of FC micro-CHPs requires a coherent, steady and predictable policy framework  Analysis conducted in the context of the project showed that these conditions are not in place today
Germany is the strongest early market, this is due to regional funding opportunities, tolerance of higher cost heating systems and a more developed manufacturer and installer base, among other factors
Financial support is key during the transitional period to mass commercialisation as shown by the European experience promoting other emerging technologies (e.g. PV, heat pumps)

13. Thank you for your attention!
The research leading to these results has received funding from the European Union´s 7th Framework Programme (FP7/ ) for the Fuel Cells and Hydrogen Joint Undertaking Technology Initiative under Grant Agreement Number

14. Mostly one to two-family houses applications (but not limited to)
Technical characteristics of systems in ene.field
The systems deployed in ene.field include a range of fuel cell technology, system size and operating strategies
10 active suppliers directly involved in the project and in direct interaction with their customers
The products to be deployed in ene.field cover all of the technology variants in the FC mCHP space and investigate different scales of micro domestic CHP units from 0.3 to 5kWe capacities, with both floor- and wall-mounted units.
Mostly small and medium commercial buildings, block of flats applications (but not limited to)
Mostly one to two-family houses applications (but not limited to)
Source: ene.field project

15. FC mCHP has potential to play a key role in decarbonisation of heat in buildings
Solution to efficient heat supply in buildings
Highly electrical and overall CHP efficiency
Significant primary energy saving and reduction of CO2 emissions compared to incumbent technologies
Very low local pollutants and noise
Large market potential across Europe
Potential to compete in the large gas boiler market
Suitable for existing buildings and particularly well-matched to modern low heat demand housing
Straightforward integration with existing gas and electrical supplies
Complementary with national energy system transition
Consistent with continued utilisation of Europe’s well-developed natural gas infrastructure
Long-term decarbonisation possible with clean gas sources, such as biomethane and hydrogen
Complementary with increasing renewable generation penetration, e.g. as balancing reserve
Source: ene.field project | FC mCHP: Fuel Cell microCombined heat and Power | CHP: Combined heat and Power 15

16. Advanced and innovative technologies benefiting the customers
FC mCHP generates less harmful emissions for the environment and for health (CO2, PM, SOx, etc.) and can contribute to achieving Europe’s targets for emissions reductions
FC mCHP has a higher overall efficiency than a traditional boiler and grid electricity generation hence reducing overall primary energy consumption and potentially costs for the customer
A 2015 Study found that a FCmCHP could contribute to reducing CO2 emissions from a typical German household (4 residents in a medium size detached or semi-detached house) by 33% and total annual energy costs (gas and electricity) by at least 10 % once the technology is more widely available
Source: FCH JU Distributed Generation Study

17. Why is the ene.field project needed?
Success factors for the mCHP sector
A large scale deployment enables suppliers to overcome the point of greatest risk in new product commercialisation where volumes remain low and a significant cost reduction is required to move the technology to a commercial proposition
Potential development stages for fuel cell mCHP
Cooperation of EU and members states to build on initial funding with development of further incentives
This is similar to introduction strategy for other energy technologies (e.g photovoltaics or heat pumps) which were characterised by an intense research and demonstration phase, before funding from national renewable feed-in tariffs and regulations to support adoption took over to support the market
Source (Graphs): FCH JU Distributed Generation Study

18. Subsidies programs in Europe (examples)
 National programs (Germany) European Programs (FCH JU)
Callux
ene.field
Germany’ biggest practical test for fuel cell heating systems for domestic use
~500 units installed (mostly residential)
Significant costs reduction achieved
> 4million operating hours
System reliability confirmed
Subsidies unconfirmed
First European deployment of units in EU member
Up to 1,000 units (mostly residential)
26 partners from industry and research
Subsidies of ~ 30K EUR / unit (equipment + installation and monitoring)
Show potential of market segment and open new market
KfW 433 (formerly TEP program)
PACE
KfW 433 (formerly TEP program) in Germany
Dedicated support programme for the large scale deployment of FC mCHP in Germany
Subsidies could amount to max 40% of eligible costs (e.g. € for a 1 KWe unit)
Addressed at end-users (only for the residential sector for now)
Pathway to a Competitive European FC mCHP market
> 2500 units (mostly residential)
EU funding – €34 million
Further product innovation, cost reduction and policy collaboration

19. Database of energy demand profiles - demand for heating in March example from field trial
The ene.field project is developing a useful database of space heating and hot-water demand, shown here varying with external temperature, from the field trial
Source: ene.field project