pdc machines
TRANSCRIPT
PDC Machines
Hydrogen Refueling for the Home.
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
40 mile round trip = average drive distance
60 mile round trip = 10hr fueling distance
240 mile round trip = full tank
Driving from Torrance
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
Similar Insallation to Thermostat
Wall MountABS Plastic
LCD Screen
Push Button SwitchON/OFF
Circuit Board
Front CaseABS Plastic
Back CaseABS Plastic
Slide CoverABS Plastic
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
WEH NozzleTK17 H2
WEH Filling & Venting Hose
In-line WEH BreakwayTSA2 H2
Re-usable without factory reservicing
High Density Polymer
AluminumJeadams Hose Reel6025-8
High Density Polymer
Angled Sections for Venting Possible Leaks
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
Compressor18x18x36” 550lbs1 Nm^3/hr
Electrolyzer31x38x42” 475lbs1 Nm^3/hr
Possible Reformer18x28x24” 130lbs.064 kg/hr
Compressor Unit Pad
Riser
Break Pressed Metal Sheeting5/32”
3/36” L-shaped Framing
Threaded Insert Fasteners
Angled Roof for Venting
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
PDC Machines, Hayden Prouty, Sean Haney, Anthony Land, Derek Desanto, Alaina Gallagher
PDC’s Hydrogen Home Refueling Station 1 Background Information Pressure Dynamic Consultants (PDC) Machines, Inc. Is an industry leader in the process industry through partnerships in the chemical, petrochemical, and specialty gas industries around the globe (pdcmachines.com). With the constant changing business environment, PDC has aligned themselves with an environmental supportive cutting edge innovation. The key word in today society is “sustainability”. PDC’s current view is “compressing a cleaner future.”(www.fuelcellmarkets.com) In a recent project, PDC has been involved is supplying Sysco and Whole Foods with a diaphragm compressor for hydrogen refueling forklifts. Along with success of the forklift market, PDC has proven to be an industry leader by representing about 85% of the world’s equipment and packaging for hydrogen refueling stations. The Project Currently, PDC operates in a Business-to-Business marketing model. The end consumer is a business owner. With the rise in the hydrogen fuel cell market, PDC wants to reach the consumer and be aligned with the future market conditions. A team of Philadelphia University’s students was presented with a challenge to develop a case for PDC’s Diaphragm Compressor and it’s components for home use. The vision is that a homeowner could refuel their hydrogen fuel cell vehicle at home and at their convenience. The challenge is broken down into three parts: Design
• Design a case that is pleasing and feasible to use for the end- consumer Engineering
• Ensure environmental engineering of the case and components are ideally suited for optimal performance for the satisfaction of the consumer
Commerce
• Analyze the market conditions and create a business plan for the case and components
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The Current Market Conditions
The current most popular use for hydrogen as a fueling source is its use in fueling forklifts in distribution centers. A report published by Fuel Cell 2000 highlights major corporations currently using hydrogen to power their forklifts. Wal-mart, the number one retailer in the world, currently uses fuel cells to generate power for hydrogen fueling forklifts, at 17 of its California retail sites. Companies currently using the hydrogen fuel cells have seen many benefits:
• Increase in their “green” profile for consumers • Greenhouse gases can be reduced 90% • Elimination of storage space and battery changing rooms • Cost savings for electricity • Zero to low emissions • Help companies to achieve LEED certifications
Backup power is another growing market for hydrogen fuel cells. AT&T and Verizon are installing fuel cells at their cellular towers. A selling point for hydrogen fuel cell is that they are functional in rugged terrains and extreme weather climates. Hydrogen Infrastructure
PDC’s Hydrogen Home Refueling Station 3 Hydrogen as a form of alternative fuel is very appealing. There are many benefits for the use of hydrogen. One main issue for the common consumer use of hydrogen is the infrastructure. The public does not have access to hydrogen. Car manufacturers will not release the cars into the market until there is an infrastructure in place. Main issues:
• Delivery of Hydrogen • Storage • Funding to decrease the cost of hydrogen • Public Acceptance
Hydrogen Fuel Cell Cars Hydrogen is the best alternative to reduce petroleum use and greenhouse gas emissions for the transportation sector. With the current cost of gasoline, people are looking for a safer and cheaper alternative fuel opposed to petroleum.
Major car manufacturers are investing money in research and development to develop a hydrogen fuel cell vehicle. The prediction from industry experts is that in 2015 hydrogen fuel cell vehicles will be released in large quantity to the public.
Currently, Honda has developed a Hydrogen Fuel Cell Vehicle called the FCX Clarity. Honda has released the car on a trail bases. The goal is to release 200 cars a year.
Because of the hydrogen infrastructure problem, Honda has created qualifications for the consumer in order to purchase the FCX Clarity. Honda seeks assurances that the consumer must have access to a hydrogen refueling station.
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California Hydrogen Use
California is the main geographical focus for the hydrogen economy. Compared to other states California has the most activity and incentives for the consumer.
This map represents the number of Hydrogen Fuel Clusters. The car manufacturing companies are focusing on the yellow highlighted areas for the initial release of the cars. As the infrastructure of hydrogen fuel cars grow, the market will follow. Compared to the other states California currently has the most hydrogen stations.
Benefits in California
Programs Benefits
Zero Emission Vehicle Regulation Requires vehicle manufacturers to make a certain number of “pure” zero emission vehicles in CA as a percentage of their overall sales
South Coast Air Quality District Management District
The district is located in Southern California. Their mission is promoting public health by reducing pollution. One of their main focus is hydrogen
The California Fuel Cell Partnerships Creating partnerships with Automotive makers, Energy makers, Fuel Cell
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Technology members and Government stakeholders to promote fuel cell vehicle commercialization
Driving Range The Driving Distance was based on the Fuel Capacity of the Honda FCX Clarity Hydrogen-Powered Vehicle. The Clarity has a fuel capacity of 3.92 kilograms of Hydrogen fuel, giving it a maximum driving range of 240 miles, with an efficiency of 60 miles per kilogram of H2. With this capacity in mind, the driving distances were based on the fuel efficiency, the average daily commute in Southern California, where the Clarity is currently being released, and how far can be driven on one overnight, 10-hour charge using a home –refueling station. The average commute in Southern California is 41 miles per day. This uses about one-third of a kilogram of hydrogen fuel. On a quarter-tank, the driver can get to a 60-mile range. On a full tank of fuel, a driver can travel 120 miles one way, for a 240-mile roundtrip, without needing to refuel. Reformer The Reformer being used in this application is the E1 H13 Hydrogen Generator. It has a hydrogen output of 0.064 kg/hr, with a fuel consumption of 0.317 gallons per minute of methanol, requiring 144 watts .The methanol needs to be 62-63 wt% with balance DI water. The methanol must meet IMPA purity standards, and the DI water must meet the ASTM Class II purity standard. The reformer itself costs $10,000. With a flow rate of 0.064kgH2/hr, it would take 61.25 hours for a full fill of 3.92 kg filling the fuel capacity of the Honda Clarity. The average cost for electricity in Southern California is $0.16/kWh, resulting in $16.11 for a full fill. With a fuel consumption rate of 0.317 gallons per hour, it would take 19.42 gallons of methanol fuel for a full fill of 3.92kg. Considering the costs of a 55-gallon barrel of methanol and DI water, $165 and $607.75, respectively, it would cost $58.26 to full the 3.92kgH2. For a total refueling cost using the E1 H13 Hydrogen Generator, it would cost $115.87, based on the fueling costs for electricity and fuel consumption rates. Electrolyzer The Electrolyzer being used in this application is the HOGEN S40 Hydrogen Generator. It has a hydrogen output of 0.0946 kg/hr, with a fuel consumption of 0.25 gallons of water per hour of water, requiring 6.7kWh/Nm3. The water used must be DI water meeting ASTM Class I purity standards. The Electrolyzer itself costs $60,000. With a flow rate of 0.0946kgH2/hr, it would take 41.44 hours for a full fill of 3.92 kg filling the fuel capacity of the Honda Clarity. At 6.7kWh/Nm3 and a production rate of 1.05 Nm3/hr, and the average Southern California electricity rates of $0.16/kWh, it would cost $1,932.65 for a full fill.
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With a fuel consumption rate of 0.25 gallons per hour, it would take 10.36 gallons of DI water to produce 3.92kg H2. Using the costs for the DI water of $607.75, it would cost $114.06 to full the 3.92kgH2. For a total refueling cost using the HOGEN S40 Hydrogen Generator, it would cost $2,046.71 based on the fueling costs for electricity and fuel consumption rates. Hydrogen Detection Equipment For the sensing of Hydrogen leaks using the above-mentioned methods of production, three types of equipment can be used to detect the release of Hydrogen gas.
FSEC Smart Tape FSEC Smart Tape is a type of chemo chromic hydrogen-sensing tape that shows a visual representation of where the leak is and how severe it may be. The Smart Tape is currently in use by NASA and the DLA. It is not currently available in the market, but the Florida Solar Energy Center is in talks with 3M about making the product widely available to the general public. The technology is now in its third generation and has a response time of 72 seconds. It has a very high sensitivity and response to 10% and 1% gas mixtures. Although it is not commercially available, material costs for the product are:
Material Costs (1”-Wide Chemo chromic Tape)
Reagents &
Chemicals ($/yd)
Matrix ($/yd)
Total ($/yd)
Costs $0.05 $0.87 $0.92
ProtiSen Hydrogen Sensor
The ProtiSen Hydrogen Sensor acts as an audible detection device. It features a catalytic bead sensor for measuring hydrogen in air, with a 200ppm resolution. The alarm concentration is 8000ppm, with a warning concentration signal of 4000ppm. The cost for this device is $165.
Desotec Deactivated Carbon
Desotec Activated Carbon can be used as a discrete Hydrogen capture measure. The product in mind is the Airpel 10. It was developed for the purification of air, as it removes/adsorbs Hydrogen gas and other volatile organic compounds. This product is of interest because of its high adsorption capacity, and is non-hazardous, non-carcinogenic, and non-flammable. It is shipped from Belgium in 25kg bags and costs $137.50, excluding value added taxes and transport. Samples of
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Airpel 10 are available in sizes of 250g, of which only transport costs will need to be paid.
Key Partnerships
With Hydrogen at the beginning stages of development, partnerships are the key to market expansions. Partnerships allow companies access to avenues of varying resources: financial allocation, brand recognition and flexibility.
PDC has an established relationship with Air Products. In Italy, Air Products and PDC developed a hydrogen refueling station.
In Torrance, CA, Air Products and Toyota have partnered together to construct a hydrogen refueling station for the public.
“Building an extensive hydrogen re-fueling infrastructure is a critical step in the successful market launch of fuel cell vehicles,” said Chris Hostetter, Group Vice President of Product and Strategic Planning, TMS. “We plan to bring a fuel cell vehicle to market in 2015, or sooner, and the infrastructure must be in place to support our customers’. (www.bloomberg.com)
Supply Chain
PDC Air Products Toyota
Suppliers
Distributor
End User Car Owner
Car - Dealerships
Proton Onsite or Element 1 PDC
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Analyzing the distribution channel, PDC will supply the components and the case. Depending on the consumer needs, Proton Onsite or Element 1 will supply the electrolyzer or transformer. Toyota will distribute the Home Hydrogen Refueling Station along with the car. When the consumer purchases the hydrogen fuel vehicle, the price of the refueling station will be added to the total purchase of the car.
This distribution channel has proven to be successful for Nissan. Nissan recently has launched an electric car: The Nissan Leaf. Nissan sells a refueling station along with the Leaf. Before purchasing the Leaf, Nissan conducts a house assessment to make sure the house is suitable for the refueling station. Once the house is approved, Nissan installs the station for the consumer.
Consumer Profile
• College Graduate • Commutes to work – Average commute 20 miles • Homeowner • Household income - $90,000 to $120,000 • The age between 30-50 years old • Resides in Southern California: Torrance, Santa Monica and Irvine
Marketing Strategies
Social Media
Social Media and Networking are the new way of communication. People turn to the Internet for news and information. Social Media is an effective marketing outlet.
To advertise on networking or blogging sites is very inexpensive. A positive for the use of social media, is it makes it easier to close in on the target market.
Suggested Sites:
• Fuel Cell Insider - http://www.fuelcellinsider.org/ • Fuel Cells 2000 - http://www.fuelcells.org/
University Partnerships
An issue with the Hydrogen fuel economy is awareness. The public is unaware of the benefits and how hydrogen can be cost effective. A university partnership can create awareness for the public.
PDC can sponsor projects with Universities in the Southern California Area. To increase awareness, PDC can sponsor educational events for example with popular and target centric guest speakers.
PDC’s Hydrogen Home Refueling Station 9 Partnerships with a University increase research and industry development. Corporations these days have the power to increase student development. This type of partnership allows for first hand recruitment out of the Universities.
Car Shares
Car Shares have grown eightfold since 2006. Consumers living in urban locations and in their mid-twenties are using more car shares. This will reach a non-homeowner. The consumer will become aware and more likely to purchase a hydrogen fuel cell car in the future.
Zipcar has a location in Santa Monica, California. One of the car’s offered in the location is the Toyota Prius. This shows the consumer in Santa Monica is looking to drive an eco-friendly car.
The picture shown above is ZipCar’s electric cars. While the cars are idle, they are plugged in and recharged for the next consumer. The refueling stations can be installed along side stores and the cars can be plugged in while waiting for the next driver to arrive.
Exit Strategy
Natural gas is another alternative to petroleum. The case and the components can be used to house a natural gas compressor for home refueling use. The Phill, developed by BRC FuelMaker, has proven that the natural gas market is growing. The Phill has already sold 10,000 units. BRC FuelMaker is already revamping their distribution channel to make it more accessible to the end consumer.
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SWOT Analysis
Strengths
• Strong presences in the forklift market
• Distinguished partnerships: with Air Products and Sysco
Weakness
• 100% business-to-business portfolio
• Brand recognition with the consumer
Opportunity
• Lack of Hydrogen Fuel Stations • California’s Initiative for
Sustainability and Zero Emission Cars
• Growth of Car Shares
Threat
• Honda’s presence in the market • Electric Car sales increase • Major gasoline companies
developing hydrogen fuel stations • Awareness of Hydrogen
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Marketing Allocations Expenses
10%
60%
30% Social Media University Car Shares
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Demographic Statistics
Torrance Santa Monica Irvine Population in 2010 145,438 89,736 212,375 % of Population with College Degrees 44.60% 62.90% 65.50% % of Homeowners 57.30% 29% 53.20%
Median Household Income $74,163 $68,842
$90,939
Cost Breakdown
Compressor Unit $1,000
Electrolyzer Transformer Per Unit Cost $60,000 $10,000 Total Per Unit Cost to the Consumer $61,000 $11,000
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Sales Projections
2015 2016 2017 2018 2019 2020 369 387 424 479 553 654 The projections are based on :
• Torrance, Santa Monica and Irvine Demographics • Toyota’s Current Market Share • Based on 30% Market Share • The ratio of homeowners in Torrance, Santa Monica and Irvine
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Bibliography Honda http://www.usnews.com/news/articles/2012/03/27/despite-competition-carsharing-rivals-sharing-road-to-prosperity Current Market http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/business_case_fuel_cells_2011.pdf http://www.fuelcells.org/info/BusinessCaseforFuelCells2011.pdf http://money.cnn.com/2012/03/15/autos/hydrogen-fuel-cell-cars/index.htm http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/2010_market_report.pdf Nissan http://www.nissanusa.com/leaf-electric-car/ The Phill http://www.wisegasinc.com/wg-phill.htm Demographics http://quickfacts.census.gov/qfd/states/06/0636770.html http://www.bts.gov/programs/national_household_travel_survey/daily_travel.html PDC http://www.pdcmachines.com/ http://www.fuelcellmarkets.com/fuel_cell_markets/member_view.aspx?articleid=6955&subsite=1&language=1 Marketing Strategies http://www.ce.berkeley.edu/~tommelein/CEMworkshop/Ashley.pdf
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http://www.digitalbuzzblog.com/infographic-cost-of-social-media/ http://www.usnews.com/news/articles/2012/03/27/despite-competition-carsharing-rivals-sharing-road-to-prosperity California http://www.arb.ca.gov/msprog/zevprog/factsheets/zev_fs.pdf http://www.hydrogenhighway.ca.gov/vision/vision.pdf Air Products http://www.airproducts.com/company/company-overview/at-a-glance.aspx Hydrogen Benefits http://www.afdc.energy.gov/afdc/laws/laws/CA/tech/3255 http://www.fuelcellstore.com/en/pc/viewCategories.asp?idCategory=46 Toyota http://www.bloomberg.com/news/2012-03-06/toyota-may-make-tens-of-thousands-of-hydrogen-cars-by-2020s.html http://pressroom.toyota.com/releases/toyota+hydrogen+fueling+station+may+2011.htm Honda FCX Clarity Information http://automobiles.honda.com/fcx-clarity/drive-fcx-clarity.aspx http://automobiles.honda.com/fcx-clarity/specifications.aspx http://www.broadcore.com/go-green.htm Electricity Rates http://www.aqmd.gov/ceqa/handbook/GHG/2009/july29mtg/ElecWater.pdf
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Reformer Data Sheet and Information http://www.e1na.com/pdf/E1_H-SeriesDataSheet.pdf Contact Information Peter Hall, E1 VP of Sales [email protected] Electrolyzer Data Sheet and Information http://www.protononsite.com/pdf/HOGEN_S.pdf http://www.protononsite.com/products/neighborhood-fueling/432.html
FSEC Chemochromic Smart Tape http://www.fuelcellseminar.com/media/9171/lrd43-3%20mohajeri.pdf ProtiSen Hydrogen Sensor http://www.fuelcellstore.com/en/pc/viewPrd.asp?idproduct=1097&idcategory=61#details Desotec Activated Carbon http://www.desotec.com/EN/activated_carbon Contact Information Jille Lelong [email protected]