1. 1 May 29th, 2008 Gas Industry Micro CHP Workshop 2008 Kunihiro Nishizaki Tokyo Gas Co., Ltd. The Japanese experience in micro CHP for residential use

2. 2 Contents 1. Introduction ～ Gas Engine 2. Polymer Electrolyte Fuel Cell (PEFC) 3. Solid Oxide Fuel Cell (SOFC)

3. 3 Energy consumption (MJl/ family/ year) Ratio @ FY2002 38 ％ 34 ％ 26 ％ 2％2％ Transition of energy consumption rate in Japanese residential sector Jukankyo Research Institute Inc. Lighting, etc. Hot water Heating Large amount of energy for hot water Cooling

4. 4 >Rated power: 1kW class >Recovered heat used as hot water What’s residential CHP in Japan? Fuel (city gas etc.) Electricity (grid connected) Recovered heat Hot water supply Generation unit Hot water storage unit including backup burner

5. 5 Schematic Image of residential CHP for Connections City gas Hot water Electric power from CHP Commercial grid power

6. 6 Residential CHPs in Japan Gas EnginePEFCSOFC Efficiency E / H (%LHV) 22.5 / 6337 / 5045 / 30 OperationStart & stop Continuous StageCommercialLimited market entry Field trial PEFC: Polymer Electrolyte Fuel Cell, SOFC: Solid Oxide Fuel Cell

7. 7 Gas engine based residential CHP - Ecowill - Rated power : 1kW Efficiency (LHV) : Generation : 22.5 % Heat : 63.0 % Overall : 85.5 % Manufacturer : Honda (engine unit) Noriz or Chofu (hot water storage unit)

8. 8 Cumulative number of gas engine based residential CHP in Japan

9. 9  Higher electrical efficiency Primary energy saving, CO 2 reduction  Lower noise, lower vibration, cleaner exhaust  Common technology with FCV PEFC based residential CHP Strong support by the government Aggressive development by manufacturers and energy companies in Japan

10. 10 Components of residential PEFC

11. 11 Road Map of Residential PEFC Development Introduction phase Development phase Penetration phase 2005 2009  Large Scale Demonstration  Deregulation  Codes & Standards  Subsidy for Market Penetration  Technology Development Support Program

12. 12 Energy Companies － Market Research － Conceptual design for increase of market acceptance － Risk Management Energy Companies － Market Research － Conceptual design for increase of market acceptance － Risk Management ＭＥＴＩ － Policy making and initiative － Subsidization － Deregulation － Codes and Standards ＭＥＴＩ － Policy making and initiative － Subsidization － Deregulation － Codes and Standards Manufacturer s － R&D － Production Manufacturer s － R&D － Production Development Initiative Development Initiative Custome r 12

13. 13 JGA’s stationary PEFC testing program “Millennium project” (2000 - ) subsidized by NEDO JGA: Japan Gas Association Test Facility PEFC systems testing related to safety, performance etc. >Deregulation >Codes and standards

14. 14 Large-Scale Stationary Fuel Cell Demonstration Project (JFY 2005-2008) conducted by METI/NEDO/NEF >Demonstrator Pair of a PEFC manufacturer and a fuel supplier >Applicable fuel cells 1kW class fuel cells >Subsidy >Total number of demonstration JFY2005200620072008 \/system6 million4.5 million3.5 million2.2 million JFY2005200620072008 Total4007779301120 TG150160210276

15. 15 Ebara Pana- sonic Eneos Celltech (Sanyo) ToshibaToyotaTotal City Gas Tokyo gas 265 255520 Osaka gas4114106224 Toho gas 25 13 52 90 Saibu gas 20 1333 Hokkaido gas20 Nippon gas 66 subtotal330 285114112 52 893 LP Gas Nippon oil610 Other 9companies 25433458 subtotal 6354331068 Kero- sene Nippon oil221 Cosmo oil5 5 subtotal226 Total556 285749545 52 2187 Players in the Large-scale demonstration project (JFY2005-2007)

16. 16 Residential PEFC CHPs ENEOS celltech (former SANYO) TOSHIBA FCPEBARA MATSUSHITA (Panasonic) TOYOTA Natural gas / LPG 750W Natural gas / LPG 700W Natural gas / Kerosene 1,000W Natural gas 1,000W Natural gas 1,000W Source : NEF Home Page

17. 17 Matsushita Electric Industrial Co. Ebara Ballard Corp. Rated power: 1kW Efficiency*(electricity): 37% (heat recovery): 50% (overall) : 87% Turndown ratio: 30% Hot water storage: 200L Fuel: City gas (13A) Specification of residential PEFC of Tokyo Gas -LIFUEL- *LHV basis

18. 18 Role of Tokyo Gas in Residential FC Development Trouble shooting 、 Maintenance Customer support Establishment of concept and specification In-house R&D: Fuel processor, Operation control Evaluation through operation tests and field trials Easy installation, Maintainability, User manuals, etc. Establishment of social platform Technical support for deregulation, codes & standards, etc. Product development

19. 19 Durability Test of the Systems

20. 20 Remote Controller of LIFUEL

21. 21 Installation of LIFUEL

22. 22 Installation of LIFUEL

23. 23 Electric and Heat Efficiency High efficiency even at partial load in actual use ◆ Electrical Efficiency, ●Heat Efficiency

24. 24 Summary of the Operation Results 205 TotalAverage(/day) Generation time1015928 h13.6 h Supplied electricity Amount629 MWh8.4 kWh Contribution ratio 34 % Supplied heat Amount937 MWh12.5 kWh Contribution ratio 78 % Primary energy saving Amount743 MWh9.9 kWh Ratio25 % CO 2 emission reduction Amount263 t-CO 2 3.5 kg-CO 2 Ratio38 %

25. 25 SOFC based residential CHP Flat tubular Cell 700W(AC) SOFC Unit by Kyocera Target Electrical Efficiency :>45%LHV (@ rated power)  Higher electrical efficiency

26. 26 SOFC Demonstration Research Project (JFY 2007-2010) conducted by METI/NEDO/NEF >Objectives Clarification of the issues including durability through actual usage >Budget \765million for JFY2007, \800million for JFY2008 >Players in JFY2007 (Operator / Manufacturer) Osaka Gas / Kyocera: 25 sites Tokyo Gas / Kyocera: 3 sites Saibu Gas / Kyocera: 1 sites Hokkaido Gas / Kyocera: 1 sites Nippon Oil / Nippon oil: 2 sites (LPG, Kerosene) TOTO / TOTO: 2sites (small commercial, 2kW)

27. 27 For the children of the future