Fuel Cells Energize a University – Part 2

Generating More Energy From Available Fuels
The power generation process is highly efficient, producing more energy from a given unit of fuel, compared to similar-sized combustion-based power sources. Additional efficiency is realized when the power plants are configured for CHP operations, further reducing fuel consumption, carbon emissions, and reliance on combustion-based boilers for heat. The higher efficiency reduces operating costs and results in a carbon footprint that is only about ¼ of that of the US electric grid.

As a leading manufacturer of stationary fuel cell power plants, FuelCell Energy provides its systems in turnkey fashion, including project development, financing, installation, maintenance, and service. Gagne especially appreciated the speed and manner with which FuelCell Energy executed the project. “I was impressed with how quickly the project came together and the plant became operational,” explains Gagne. “FuelCell Energy’s team was phenomenal. They were professional and took all of the university’s needs into account, including safety issues and the concerns of our neighbors.”

Depending on seasonal and other factors, CCSU’s 165-acre campus, comprised of approximately 40 buildings, generally consumes from 3,500 to 4,000 kW of electric power, up to a peak of about 5,000 kW. In addition to the fuel cell power plant, which generates 1,400 kW (1.4 MW) of power, the university operates two gas-powered generators, which can produce about 2,500 kW of power combined. Integrated completely into the university’s electric power system, the fuel cell power plant feeds into the campus’ primary 4160-V bus via a step-up transformer, which then distributes power through step-down transformers to the entire campus.

Combining Heat and Power for Greater Efficiency
The university gains additional efficiency—and thus additional cost savings—by directing the power plant’s heat energy into a Heat Recovery Steam Generator (HRSG) to supplement its primary steam system for hot water and heating needs and for steam absorption chilling. In addition to two electric chillers, the university operates a single 1,500-ton steam absorption chiller. When steam is not being used for heating purposes, as in the summer months, use of this chiller helps reduce electric power consumption.

CCSU operates three 65,000-pound-per-hour boilers in its main plant, and Gagne estimates that the heat from the fuel cell power plant produces 1,600 to 2,000 pounds per hour of steam. While a modest percentage of CCSU’s total requirements, engineers estimate the value of the steam at about $1,600 a month, or more than $19,000 annually in addition to the estimated $100,000 savings for electric power.

Attracting Financing With a Well-Structured Project
Camilo Patrignani, CEO of Greenwood Energy, understands the renewable energy marketplace well and has a solid appreciation for fuel cells. “Our business is focused on renewable energy and on certain themes in particular,” says Patrignani. “Energy efficiency is the ‘low-hanging fruit’ of the energy industry today. FuelCell Energy’s technology makes sense because it is much cleaner and more efficient than conventional generation, such as reciprocating engines or microturbines.”

The Libra Group, Greenwood’s parent organization, is a privately owned international business group with substantial renewable energy interests in Europe, and the CCSU power plant builds on Greenwood’s strengths in the renewable energy marketplace, particularly CHP projects.

The CCSU power plant represented Greenwood’s first energy project with FuelCell Energy. “From Greenwood’s perspective, the project was painless,” recalls Patrignani. “There wasn’t a single glitch and the power plant was installed on time. The FuelCell Energy team was very knowledgeable and delivered exactly what they promised.”

Patrignani believes the project’s design benefits all parties. “This was a very well-structured project, with a ten-year Power Purchase Agreement, and includes a natural gas pass-through for the university,” he explains. “The financial returns were attractive and a public university is a credit-worthy counterpart. Without the PPA, the investors’ returns would have had to be higher due to their increased level of risk, and the project would have been more difficult to finance.”

Well-structured fuel cell power projects are also attractive to lenders. Webster Bank, a Waterbury, CT-based regional bank, wanted to invest in renewable energy and the CCSU project represented a local opportunity with a favorable risk profile. “The continual power output of fuel cells, which is not dependent on the time of day or the weather, provides for consistent financial returns and this is attractive to lenders,” says Patrignani. “Webster has been very pleased with this project. They subsequently refinanced the loan and increased the loan amount, which speaks to their faith in the project.”

FuelCell Energy’s solid reputation as a global leader in the design, manufacture, operation, and service of fuel cell power plants and turnkey power projects also mitigates risk for investors and lenders. First commercialized in 2003, the company’s growing installed base has generated more than 3 billion kWh of clean energy, adequate to power more than 270,000 US homes for a year.

In addition to prominent universities on both coasts of the USA, including installations with the University of California and California State University systems, FuelCell Energy’s global customer base includes utilities, commercial operations, healthcare facilities, and other municipal sites. Fuel cell manufacturing and assembly facilities on three continents support the Company’s global footprint. The CCSU installation, as well as the fuel cell installations in nine different countries, are operated remotely and monitored 24 hours per day, 365 days per year from the Company’s global technical assistance center in Danbury.

“We have been extremely pleased with this project,” says Patrignani. “What impressed me most was that FuelCell Energy delivered exactly what they had promised. They continue to be an excellent partner, providing the necessary service for the plant. FuelCell Energy possesses solid technical expertise and outstanding customer service. We’ve had as good an experience as we could’ve hoped for. It’s a great relationship.”

Patrignani believes fuel cell power plants are well-suited to universities. “Universities have high and consistent power needs,” he explains. “Fuel cell power plants provide power continuously, with virtually no pollutants, while other clean technologies such as solar can only produce power intermittently. Generating distributed power with fuel cells helps universities spearhead positive environmental change. Quiet and easily sited, they are highly efficient, saving money, reducing emissions, and contributing to energy independence and security. These benefits make fuel cell power a winning solution for universities.”

Savings Compared to the US Electric Grid