prometheus - haas school of businessprometheus: next generation h 2 storage 1. faster 2. lower...
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PrometheusBringing safe & efficient
hydrogen storage to humanity
Team receives $8 million in funding!
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Jeffery Urban Eun Seon Cho Anne Ruminski
With commitments from leading car and stationary-power manufacturers…interest [in hydrogen] is once again swelling in this carbon-free technology. Julie Chao, LBNL
Hydrogen is a game-changer
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Range208 miles
312 miles
Refueling Time
5 – 10 hours
5 minutes
H2
Hydrogen offers many advantages
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✓ Has multiple uses: - transportation - electricity grid - industry
✓ Can be stored long term
✓ Potentially better for the environment than alternatives
Source: IEA 2015 technology roadmap – Hydrogen and Fuel cells
…But concentrating H2 is difficult
Hydrogen is the lightest element
on earth
- 253°C (- 423°F)
700 bar (10,000 PSI)
High pressure storage is dangerous
Hydrogen is the lightest element
on earth
700 bar (10,000 PSI)
Potential of high pressure rupture of tank
Metal hydrides store H2 as solid
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Solid storage is safer and more dense
Metal (e.g. Mg, Al, Li)Metal Hydride
(M-H)
Prometheus: next generation H2 storage
1. Faster
2. Lower Temperature
3. Lower Pressure
Nanotechnology
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Lower pressure, safer storage
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Compressed H2
• High pressure (700 bar)
• Flammable & explosive
• Gas leak – energy loss
Lower pressure, safer storage
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Prometheus • Lower pressure (15 bar)
• Safer
• Less/no gas leaking
Compressed H2
• High pressure (700 bar)
• Flammable & explosive
• Gas leak – energy loss
Smaller volume
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Prometheus Compressed H2 (700 bar)
Liquid H2Other metal hydrides
Smaller volume = easier integration + more space
Smaller volume
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Model S: enabled by modularity of battery pack
Prometheus Compressed H2 (700 bar)
Liquid H2Other metal hydrides
Smaller volume = easier integration + more space
Prometheus Compressed H2 Liquefied H2
Pressure (safety) ✓ x xDesign Modularity ✓ x xH2 stored per volume ✓ x xH2 stored per mass x ✓ ✓
Tank + hydrogen
130-150 kg Prometheus: heavier
120 kg Compressed
28 kg Liquefied
Advantages of Prometheus
Tank + H2 + metal hydride
0 0.5 0.9 1.4 1.8
Prometheus has great potential
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Gravimetric (kWh/kg)
Prometheus – Competitive and Improving
DOE Targets for 2020
Current
0 0.5 0.9 1.4 1.8
Prometheus has great potential
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Gravimetric (kWh/kg)
Prometheus – Competitive and Improving
DOE Targets for 2020
Current
Volumetric (kWh/L)
Prometheus – Best option
DOE Targets for 2020Current
*Graph values are for overall system weight and volume
0 0.5 0.9 1.4 1.8
Prometheus has great potential
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Gravimetric (kWh/kg)
Prometheus – Competitive and Improving
DOE Targets for 2020
Current
Volumetric (kWh/L)
Prometheus – Best option
DOE Targets for 2020Current
*Graph values are for overall system weight and volume
Pressure (bar)
700 bar 15 bar
15700
✓✖
Automotive is the holy grail
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Fuel Cell Government
funding
Private investment
Auto Industry Sales $126.9 Billion
51 by 2016 (enough for 13K FCEVs)
44 stations in 2015
DOE H2 & Fuel Cell Technology Funding:
FY 2014 FY 2015 FY 2016 (Request)
92.997
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10K by 2018179 FCEVs in 2015
…but we have 3 main challenges
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Must replace high pressure systems in vehicles AND
refueling stations
Beating the status quo Deploying in Automotive
Deploying in Automotive will require 2-5 years after technology is proven
…but we have 3 main challenges
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Insufficient Hydrogen refueling infrastructure
Lack of infrastructure
prevents hydrogen vehicle adoption
Pursue Automotive in the future
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Year 1 Year 2 Year 5: Larger market
So, where do we begin?
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Cus
tom
er p
ain
poin
ts
Familiarity with Hydrogen
We looked into several sectors and prioritized immediate opportunities
Start where the pain is high
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Submarines Materials Handling
$28B US gov’t spending on submarines (next 10 years)
$12.2B market for forklifts
Current solutions
Market Size
Value Proposition
Store hydrogen in compressed tanks
Safety & space concerns
Use chemical batteries or compressed H2
Strict emission limits & high operations efficiency
Market Plan - Year 1
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Year 1: Initial stage
Year 2: Proof of concept
Year 5: Larger market
Initial Market: Nuclear Submarines
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Drop-in solution
• Nuclear submarines store H2
• Distribution channel in place
Initial Market: Nuclear Submarines
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Superior value propositionDrop-in solution
✓ Nuclear submarines store H2
✓ Distribution channel in place
• Increased safety
• Space Savings
• Competitive advantage
Initial Market: Nuclear Submarines
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✓ Nuclear submarines store H2
✓ Distribution channel in place
✓ Increased safety
✓ Space Savings
✓ Competitive advantage
Superior value propositionDrop-in solution
Entry Plan:
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• High willingness to pay
>>> License the technology
• Potential funding during proof of concept +• Licensing structure
• Exclusivity clause
?
Market Plan - Year 2
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Year 1: Initial stage
Year 2: Proof of concept
Year 5: Larger market
Proof of concept: Materials handling
Drop-in solution
• Large companies use H2 powered forklifts
• Increased efficiency
• Space savings
Proof of concept: Materials handling
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Superior value propositionDrop-in solution
✓ Large companies use H2 powered forklifts
Proof of concept: Materials handling
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✓ Increased efficiency
✓ Space savings
Superior value propositionDrop-in solution
✓ Large companies use H2
powered forklifts
Entry Plan:
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• Facilitates deployment of hydrogen powered materials handing
• Partnership conditions?
>>> Partnerships
• Compatible with fuel cells
• Low pressure requires less capital expenditures+
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Testing▪Partnership▪Fuelling infrastructure work
Year 1 Year 2 Year 5Licensing
Partnerships
Testing
Licensing
SaferEfficientReversible
Prometheus promises great change
Questions?
Dulce Kadise, MBA
Kevin Wujcik, PhDNorman Su, PhD
Travis Axelrod, MBA Adrián Gómez, MBA
Nikolas Thiessen, MBA
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APPENDIX
Hydrogen stations
37Source: DOE, Alternative Fuels Data Center - http://www.afdc.energy.gov/fuels/hydrogen_infrastructure.html#setbacks
Construction and Setbacks
Setbacks are applicable to a 7,000 psi hydrogen system *1,500 liter liquid hydrogen storage tank +Only pertains to dispensing equipment
• Fire Safety code limits potential locations for hydrogen stations
• Underground storage can resolve the problem but it’s more expensive to implement
• Current Hydrogen vehicle refueling stations cost between $1-9M to build
Safety regulations
▪75 foot buffer between hydrogen storage tank and fill line for fueling stations
▪Lower Flammability Limit: 4% by volume▪Upper Flammability Limit: 75% by volume▪Liquid hydrogen leaks at rate of at least 1% total per day▪500oC Auto-ignition temperature
Rules
Metrics
Incentives for H2 economy
▪Low and Zero Emission Vehicle Research, Demonstration, and Deployment Funding▪Alternative Fuel Tax Exemption, etc…
Research and consumer incentives
Government fleets
▪Vehicle Acquistion and Fuel Use Requirement for Federal/Private and Local Governement Fleets
Cost to store 5 kg of hydrogen
40Calculations: 1. Based on Lab Scale costs = $50/gram x 1000 gram/kg ÷ 6% x 5kg = $4.2M
High Costs at early Stage Lab results:
Industry: $4,000 Lab: $4.2M1
vs.
Compression Storage
Dispenser
CoolingOther
Current H2 cost breakdown ($2.50/kg H2):
60%
Challenges on the path to market
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1.Adapt & expand infrastructure
2.Reduce costs: laboratory to market
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Phase 1: Initial
Research
Phase 2: Secondary Research
Our 20,000 ft view
43Initial Research
▪ Initial brainstorming exercises yielded 20 potential applications:
CategoryHypothesis
# Hypotheses (Nano MgH can be used...)Back-up Power
1 For stationary remote energy storage (ex. telecommunications towers, remote camp grounds, etc.)
2 For portable remote energy storage (ex. military applications, supply power for remote events)
3 To power handheld conusmer electronics4 To provide energy storage for residential applications
Long-duration travel
5 For Space Travel6 For travel by sea: Submarine7 For travel by sea: Boat
Utility services
8 MgH is better suited for utility scale storage than other storage technologies9 MgH has multiple applications for utility storage10 For energy resiliency in the space constrained private sector (ex. Google, Apple, public transit)
Hydrogen production
11 To produce hydrogen (ex. split H2 from water)12 To capture hydrogen from other gas/chemical byproducts (ex. refineries, wastewater
treatment plants, etc.)Freight & Travel
13 To power light-duty vehicles14 To power heavy-duty vehicles and machinery15 To power airplanes
Other areas
16 MgH can be used to capture other gases (ex. CO2, methane, etc.)17 For heat recovery and cooling (ex. leverage excess heat from combined cycle plant)18 To store and utilize hydrogen in non-energy applications (ex. chemical manufacturing,
ammonia, glass production, electronic manufacturing, etc.)19 To produce Nano-magnesium batteries (chemical storage)20 To generate licensing revenue from the nano-material production process
Reducing our Hypotheses
44Initial Research
▪ We used high-level research to categorize 20 potential applications into High, Med, Low attractiveness:
HIGH LEVEL RESEARCH Investigate why people would/wouldn’t use nano-Mg. Answer these questions:
Has anyone spoken about Hydrogen fuel cells in your sub-category?Is there more than one substitute in your sub-category?Does the market benefit from the following characteristics?(a) Durability & Reversibility(b) Design freedom(c) Energy density (a.k.a. energy per weight)(d) Emissions(e) Safety / Stability of storage(f) OtherIs the government invested in developing hydrogen solutions in this sub-category?Is this a monopoly or oligopoly?Would this be a drop-in solution? (i.e. is the infrastructure already established)Why should we pursue this?Why should we not pursue this?
HIGH
1. Portable Energy storage (ex. military) 2. Space Travel 3. Submarines 4. Boats 5. Private sector energy resiliency 6. H2 capture from other gases 7. Heavy duty vehicles (ex. material handling)
MED
1. Remote energy storage 2. Handheld consumer electronics 3. Other utility services (ex. micro-grids) 4. Light-duty vehicles 5. Heat recovery & cooling 6. Pursue Licensing revenue
LOW
1. Residential applications 2. Utility scaled storage 3. To split H2O 4. Aviation 5. Capture other gases (ex. CO2) 6. Store H2 for other industries 7. Nano-Mg chemical batteries
Phase 2: New Converging Criteria
45Initial Research
Category Sub-category Description Grading 0-4 (4=good)
Market attractiveness
Market Size Total Industry Value ($M) – based on total sales or GDP spent on that industry
Market Fragmentation Monopoly, Oligopoly, Competitive Market – barriers to entry
Stability Age of market, main market influencers
Pain points Specific problems that can be solved by hydrogen storage
Ease of entry Size of customers, Sales channels, switching costs
Competitive Landscape Existing competitors & substitutions
Product Market Fit
Clear Need Clear need for nano-Mg
Level of Familiarity Do stakeholders know about hydrogen & metal hydrides?
Technology Fit Time/resources required for our technology to meet customer needs
Deployment System Integration Is this a drop-in solution?
Partnerships required Stakeholder we need to work with in order to succeed
Regulatory Landscape Is this industry highly regulated? Could there be subsidies for us?
Secondary research
Transportation
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Key Insights: ▪ Market size is promising ▪ Every inch counts on a space ship and our product would address this need
▪ Strong push for clean and efficient sources for boats
▪ Different categories of boats would facilitate entry and allow us to experiment
▪ It will be difficult to enter the space industry
▪ Finding the right niche for boats could be challenging
Category Sub-category Space Travel
Boats
Market attractiveness
Market Size
Market Fragmentation
Stability
Pain Points
Ease of entry
Competitive Landscape
Product Market Fit
Clear Need
Level of Familiarity
Technology Fit
Deployment System Integration
Partnerships required
Regulatory LandscapeLegend:
= 4 = 1= 3 = 2 = 0
Initial Research
Secondary research
Utility Electricity
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Key Insights:
Pros: ▪ Potentially large market - very likely to grow in the future
▪ Few competitors
Challenges: ▪ Selling the benefits of the technology
▪ Need for partnerships ▪with machinery manufacturers to bundle our technology, and
▪with Fuel Cell Companies to provide an energy solution
Category Sub-category Por- table
Pri- vate
Heavy Duty
Market attrac- tiveness
Market Size
Market Fragmentation
Stability
Pain points
Ease of entry
Competitive Landscape
Product Market Fit
Clear Need
Level of Familiarity
Technology Fit
Deployment System Integration
Partnerships required
Regulatory LandscapeLegend:
= 4 = 1= 3 = 2 = 0Initial
ResearchSecondary research
Industrial (Hydrogen Waste)
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Key Insights:
▪ Market is huge (industrial hydrogen: $103bn, submarine: $88bn)
▪ Pain point - hydrogen separation/capture from industrial gas and O2/breathable air generation on subs
▪ Submarine perk: space-saving
▪ Drop-in solution ▪ Competition is high in industrial gas landscape
▪ Regulation is high for military applications
Category Sub-category H2 Capture
Sub-marine
s
Market attractiveness
Market Size
Market Fragmentation
Stability
Pain points
Ease of entry
Competitive Landscape
Product Market Fit
Clear Need
Level of Familiarity
Technology Fit
Deployment System Integration
Partnerships required
Regulatory LandscapeLegend: = 4 = 1= 3 = 2 = 0
Initial Research
Secondary research