1. Cutting costs and carbon with fuel cell CHP Edinburgh Napier University Merchiston Campus 23 rd February 2015

2. Topics  Who is iPower?  What’s so exciting about fuel cells?  Micro CHP Case Studies  Business benefits  Bigger than micro  Strategy 2

3. Question Are your buildings an energy burden? Or are they an energy opportunity? Towards local energy economies Scottish Government vision 3

4. Introduction to iPower iPower is a developer of low carbon projects in the UK – We develop, fund (when appropriate) and manage solar PV, Fuel Cell, renewable heat and energy efficiency projects – Our social esco (energy services company) business model helps our customer avoid capital cost and ongoing management and maintenance. The model can be applied across a range of technologies – We are a social enterprise. A majority of our profit is committed to supporting sustainable development in local communities 4

5. What is so exciting about fuel cells? 5

6. 6 6 From centralised coal fired generation:

7. 7 7 To controllable high efficiency Distributed Generation

8. Energy balance… At 1.5 kW export power 8 2. Based on exhaust gas cooled to 30° C 1. Including some HHV (latent heat) recovered from the fuel input 0.81 kW th 0.12 kW th Export to grid Heat 1 1.5 kW e Net power (AC) 1.67 kW e Gross stack power (DC) 2.48 kW Fuel Input (LHV) Up to 0.54 kW th Lost exhaust heat 0.15 kW th Heat loss from Gennex 0.17 kW e Electrical parasitic losses for system operation (including grid connect inverter) ‘Useful’ Heat Heat recovery system 2

9. 9 Low Cost Power – High electrical efficiency of 60% means cheap electricity Low cost heat or hot water – No extra fuel cost (gas or electricity) – Up to 200 litres of hot water per day as part of the process Virtually silent – Easy to install. No noise or vibrations – Uses standard connections Government supported (MCS approved for FiTs) – Payment for the generation and export of electricity Carbon Reductions – c4.00 tonnes per year compared with average grid intensity BlueGEN Key Features

10. Anne Veck Hair Salon Installation..... 10 BlueGen neatly installed in the kitchen area of the salon

11. Anne Veck Hair Salon Installation..... 11 BlueGen showing access to water treatment filters

12. Social Housing examples Sheltered Housing in Maidenhead – x4 BlueGen installations – Installed in two sheltered housing blocks within the plant rooms reducing the base load cost with savings being passed to the tenants. Includes UK’s first multiple install – Hot water from the BlueGen units is supplied to the pre heat cylinders which in turn will reduce the cycling of the current gas boiler. Madeley Centre (near Crewe) BlueGen installation installed within central plant room reducing base load electricity and providing hot water to pre heat tanks. Tenants within RSL attached to centre will benefit from reduced monthly contribution payment for centres communal costs.

13. BlueGEN Business Benefits Installed cost: c£16-£17k: dep. on volume and site Self-Funded Option: 8-13% typical return; c6 yr payback. Enhanced return with 2kW fuel stack Third Party-Funded programme: 5+ units: 20-40% saving on cost of energy displaced. This is a UK First Where suitable: – Single installs: sites with 1.5kWe baseload; c20,000+ kWh/year electrical load and a use for heat generated – Multiple installs: sites with scope for private wire and multiple addresses eg new build, student accommodation etc

14. Funded BlueGEN Programme Phase One BlueGEN Funded Programme now underway £1m programme, debt funded Repayment of Debt from Feed In Tariff Will support installation of approx 70 units Funding from Social Investment Scotland with support from Big Society Capital Letter of Intent for £5m Phase Two programme

15. Sheltered Housing Example Saving over 10 years per BlueGEN: £8116 Y1 saving £383 Y10 saving £1201 Saving rises as electricity prices increase faster than gas prices CO2 saving: 36 – 49 tonnes per BlueGEN over 10 years Higher savings if combined with heat pump or displacement of electric heating/hot water 12 BlueGEN illustration Around £100,000 saving over 10 years CO2 saving: 430-590 tonnes over 10 years

16. BlueGENs in Scotland First install: Edinburgh Napier University, Merchiston Campus, Edinburgh Expressions of Interest from: Businesses, Local Authorities, Housing Associations, NHS, Universities, Schools etc Several Scottish installers working with us

17. Evolving Story Fuel Cell CHP is a developing story Mid scale Fuel Cell CHP Individual home scale Fuel Cell CHP Virtual private networks

18. Strategic Context New ways of providing energy More embedded generation Storage Links to Grid Smart Management, Demand Response Virtual Power Stations Properties a burden, or an opportunity?

19. Process Make contact Discussion of suitable stock: Expression of Interest Business Case: with projected savings Confirmation of Interest Site survey Confirmation of proposition: Free/self- funded/lease and formal offer Contract (First Come First Served for Phase One Funded Option)

20. Let’s talk And understand your needs Jon Cape Jon.cape@ipoweruk.com