Heliodynamics Board Meeting Discussion 08 July

1
SOLAR ENERGY FOR THE GREEN ECONOMY IS IT AN
EXPENSIVE WASTE OF TIME, OR A SMART STRATEGY?
Anders Jepsen, CEO, Heliodynamics, Inc. for
the Santa Fe Community College Sustainable
Technologies Center 25 June 2008
2
Climate Change - Somebody Elses Problem?

• We will pay for this one way or another. We
  will pay to reduce greenhouse gas emissions
  today,
• or we will pay the price later in military
  terms.
• General Anthony C. Zinni, USMC (Ret.),
• Former Commander-in-Chief of
• U.S. Central Command (CENTCOM)

3
Climate Change is an Energy Problem

• Almost all of it is caused by burning fossil
  fuel.
• Most of our energy (electricity, heat and motive
  power) comes from burning fossil fuels.
• The fossil fuel industries are firmly entrenched
  in our way of life.

4
The 21st Century Energy Challenge

• An irresistible force
• Rising energy demand to increase the size of
  the world economy
• Chinas demand has required an increase in oil
  supply.
• An immovable object
• Not enough growth in energy supply.
• Result
• Price of oil risen 1200
• in a decade
• Price of fuels has doubled
• in 10 months.

5
6-month natural gas curve
6
Why is supply not keeping pace? -1

• Oil
• 75 capacity is under control of government
  monopolies
• Both of the worlds largest oil fields, Saudi
  Arabias giant Ghawar field and Kuwaits giant
  Burgan field, are in decline

7
Why is supply not keeping pace? -2

• Natural Gas
• More capital investment time required to
  develop infrastructure.

Coal Until carbon emission problem is solved,
new investment in coal-fired power plants very
unlikely.
8
What will balance supply and demand?

• Reduction in Demand
• (either by energy conservation or by industries
  forced to close by energy costs)
• Vehicles (oil)
• Buildings (coal, gas)
• Processes (gas).

9
Whose demand may stabilise price?

• Countries which subsidise fuels? - No
• China
• India
• Most of the M. East.
• Market economies? - Yes
• IF taxes not reduced on motor fuels
• IF technologies offer improved performance.

10
What other options do we have to meet the
need for new supply?

• Other sustainable (renewable) sources of energy
• Biofuels (cellulose, sugar, seed-oil)
• Wind
• Solar
• Marine.

11
So, where does HelioDynamics fit into this
scenario?

• Were a concentrating solar technology company.
• We make systems to deliver industrial grade heat
  for solar-powered air conditioning and for other
  processes that now burn natural gas
• We make Combined Heat and Power (CHP) systems for
  both electricity and heat for many different uses.

12
Concentrating Solar

• So whats Concentrating Solar?
• Big area of focus or reflector, small area of
  receiver
• Existing systems use the heat to make
  electricity
• Solar 2 (tower, decomd) SEGS (trough,
  working) Dish Stirling (in dev)

13
How do these Concentrating Solar systems harvest
the heat energy?

• Receivers
• Tower (molten salt!) from reflecting heliostats
• heat to steam to turbine electricity
• Thermal tubes of hot oil from reflecting
  troughs
• heat to steam to turbine electricity
• Dish Stirling Stirling engine drives a
• turbine directly. 25kW per unit.

14
Whats good about these systems?

• Utility Scale Concentrating systems can and do
  deliver solar power to the grid
• Lots of sunny (windy) desert space available

But, heres the down side. 1) The technology
needs big systems to work - very costly 2) Big
arrays need extra wheeling capacity (power lines)
to deliver the power to the grid.
395
58
15
Is there a smaller technology?

• Yes, indeed! Heres a simple system
• a linear Fresnel lens, made from
• flat plate glass mirrors
• laser-cut steel or aluminum structure
• a single controller to keep the sun focused,
  and
• makes pv electricity and heat together, or
  just heat

16
Thats Combined Heat and Power! CHPCHP not
only uses PV cells to make electricityby
concentrating the the sun but also makes heat,
at the same time!

• It works just like the big systems -
• big area of reflectors, small area of
  receivers
• How does it make the electricity?
• The system has the pv cells, modified so
  they can carry a lot of current, mounted to the
  underside of the receiver.
• We cool the pv cells so optimize their
  performance,and the cooling system harvests the
  heat

And, because of its simplicity of design, it can
be installed anywhere that the energy is needed.
Its DISTRIBUTABLE!
17
And what about the heat?

• Thats where the real energy savings come in.
• If you have a use for the heat, the capital cost
  barrier that has stood in the way of solar power
  for all these years IS REMOVED.
• So how can we use the heat?
• Community power, cooling and heat
• Hot water for hospitals, labs, industries
• Drive a Chiller for refrigeration and cooling
• Hot water for schools and gymnasia
• What do you need? What do you want?

18
So where does CHP fit in todays world?

• Three configurations available
• Heat only receiver has no pv cells,
• industrial grade heat up to 225 C
• Electricity only GaAs cells, 500x concn.
• Coming soon for large energy parks
• Combined Heat and electric Power
• (true CHP Electricity 90C hot water)
• (presently limited by pv cell shortage)

19
Some Applications

• Off grid mobile home park in Napa Valley
• Food processor
• Hospital hot water
• Retirement Community air conditioning
• Albuquerque airport car rental facility

20
Mobile Home Park CHP

• Long term Object 500 kWe,
• LEEDS certification,
• community heating (propane now)
• and community air conditioning
• Start with 10 kWe plus
• 60 kWtherm
• Use for heat air conditioning,
• winter heating and pasteurization
• for ag use
• Local value of the electricity
• _at_.30 per kWe 6000yr
• Local value of the heat
• _at_4.40/therm 17,600/yr

21
Food Processor Refrigeration(and hot water for
cleaning)

• Objective Refrigeration and hot water
• Obstacle CFO, payback
• Motive Save now
• Technical replace 50 tons elect refrign
• plus 1.6MMBTU/hr hot water
• Value Replace 116,600 kWe/yr
• 35,400 therms gas/yr
• Cost 700,000, payback 3.5 years

22
Hospital hot water

• Objective hot water
• Obstacle payback
• Motive
• hedge against ga
• Look green
• Size 1287 kW therm
• over pkg lot
• Cost 1,100,000
• Payback 11 yrs w/ FTC
• (before gas price increase)

23
Retirement Community Cooling

• Objective Provide A/C
• cooling to individual units
• Obstacle CFO, payback
• Motive look green
• Hedge against gas
• Size 450 tons of cooling
• Cost 3.4 million
• Payback 7 years
• Incentives FTC, 5-yr depn

24
Albuquerque Airport - CHP

• System 30 tons refrigeration (105 kW cooling)
• equivalent to 35 kWe of electricity plus 13
  kWe
• Site SunPort car rental
• Output 48 kWe (equiv)
• Cost 6.00 per watt!

25
Question So, how did we adapt this technology
to bigger, utility-scale systems?

• Answer(1) We developed a two-axis system
• using GaAs pv cells and a greater optical
  concentration 500 suns

26
HD GaAs 2 Axis Concentrator

3-5-5-3 Module Array on 30m Turntable. Output
48kWe (DC) Primary Optics Cradles x15kW/m2
Secondary optics Parabola x200
kW/m2 Tertiary optics Lens x750 kWm2 Space
Need 5 acres per MWe
Azimuth Tracking
Cradles
4m
7.5m
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and another adaptation

• Answer(2) We adapted our HD16.t single-axis
  system with higher performance fittings on the
  thermal receiver to generate up to 225C heat.
• This is hot enough to drive an Organic Rankine
  Cycle (ORC) 120kWe turbine.

28
Again, 1 MWe on 5 acres, 6 per watt today,with
both electric power and heat!

• Multiple arrays of HD16.t, yielding heat at 225C

Layout of complete system with wood burning
backup for extended operation beyond solar hours
29
A LocalGrid Integrated Schematic
Sun
Customer Service Unit
ORC Turbogenerator
Inverter
Solar PV
Nickel salt battery
BiodieselGenerator Sets
Boiler
Fuel dryer (opt)
Chipped woodfuel
Biodiesel
30
So, a Quick Recap

• Solar Technology simple design thats a
  candidate for local manufacture (much of it,
  anyway).
• Applications
• Solar Powered Air Conditioning
• Combined Heat and Power for Commercial/Industrial
• Stand-Alone off-grid systems with other
  renewables
• Can be scaled up for grid scale production
• Solar is becoming cost competitive as well as
  being green

31

• It doesnt seem like such a waste of time after
  all!
• Thank you for your attention
• Anders Jepsen, CEO
• HelioDynamics, Inc.
• 23 Dos Posos
• Orinda, CA 94563
• jepsen_at_heliodynamics.com
• tel [phone]