Periodic Reporting for period 1 - HyBurn (New high temperature in-situ premix gas combustion systems for more efficient and cleaner combustion of hydrogen and lean gases)
Periodo di rendicontazione: 2015-06-01 al 2015-11-30
Titel of the activity: Feasibility Study and business case for a 100% Hydrogen in-situ premix combustion system
Objective: Elaborate the technology roadmap for the selection of manufacturing equipment to ramp up and the market entry and market multiplication strategy, all to be summarised in a business plan.
Context:
The promeos innovation project “New in-situ premix gas burners” makes the combustion of difficult to handle gaseous fuels like hydrogen or hot gases more efficient, less polluting, less noisy, safer and more compact compared to state of the art burners, thus opening up new markets. Hydrogen or (lean) biogas mixtures, landfill gas or (pyrolysis) process gases today often need to be flared and are simply wasted. promeos is for the first time ever enabling the well controlled, more efficient and cleaner combustion of these fossil or renewable gaseous fuels, thus helping protect the climate.
The new in-situ premix gas burners target at global industrial markets worth billions of Euro, wherever high temperature heat is required and process gas – of any calorific value and composition - is available locally as a fuel. The in-situ premix gas burners can also be used in automotive or fuel cell applications.
The objective of the action was to find out how to enter the market for “Hydrogen-to-heat” solutions based on a unique technology and product portfolio enabling to address many still unknown needs.
The context of the action was given by the SME conditions at promeos. promeos is nearly 10 years active on the global market with “Gas-to-heat” solutions for various industries but not direct towards the consumer.
The action was carried out by means of desktop research, technical developments in our own laboratories and face-to-face and telephone interviews with prospective pilot customers. The findings were distributed through the promeos homepage (see: H2 at landing page of www.promeos.com linked to http://www.promeos.com/cms/front_content.php?idart=793 ), two in-house exhibitions at our site in Nürnberg with approx. 50 business visitors each in October 2015 and January 2016, and a speech at the Birmingham Fuel cell and hydrogen event 2016 (https://ec.europa.eu/easme/en/news/hydrogen-and-fuel-cell-conference-birmingham-hosts-sme-instrument-champions ).
Objective: Elaborate the technology roadmap for the selection of manufacturing equipment to ramp up and the market entry and market multiplication strategy, all to be summarised in a business plan.
Context:
The promeos innovation project “New in-situ premix gas burners” makes the combustion of difficult to handle gaseous fuels like hydrogen or hot gases more efficient, less polluting, less noisy, safer and more compact compared to state of the art burners, thus opening up new markets. Hydrogen or (lean) biogas mixtures, landfill gas or (pyrolysis) process gases today often need to be flared and are simply wasted. promeos is for the first time ever enabling the well controlled, more efficient and cleaner combustion of these fossil or renewable gaseous fuels, thus helping protect the climate.
The new in-situ premix gas burners target at global industrial markets worth billions of Euro, wherever high temperature heat is required and process gas – of any calorific value and composition - is available locally as a fuel. The in-situ premix gas burners can also be used in automotive or fuel cell applications.
The objective of the action was to find out how to enter the market for “Hydrogen-to-heat” solutions based on a unique technology and product portfolio enabling to address many still unknown needs.
The context of the action was given by the SME conditions at promeos. promeos is nearly 10 years active on the global market with “Gas-to-heat” solutions for various industries but not direct towards the consumer.
The action was carried out by means of desktop research, technical developments in our own laboratories and face-to-face and telephone interviews with prospective pilot customers. The findings were distributed through the promeos homepage (see: H2 at landing page of www.promeos.com linked to http://www.promeos.com/cms/front_content.php?idart=793 ), two in-house exhibitions at our site in Nürnberg with approx. 50 business visitors each in October 2015 and January 2016, and a speech at the Birmingham Fuel cell and hydrogen event 2016 (https://ec.europa.eu/easme/en/news/hydrogen-and-fuel-cell-conference-birmingham-hosts-sme-instrument-champions ).
We elaborated the technology roadmap for the selection of manufacturing technologies to ramp up and the market entry and market multiplication strategy for a in-situ premix combustion system. A key requirement for the new type of a burner head is to allow the well controlled and secure use of 100% hydrogen and/or the use of preheated air and/or oxygen.
The market research delivered an additional key requirement for industrial markets: Operationability in high temperatures.
Work performed in detail and the summarized results:
- The global technology lead of promeos in this field is confirmed, with a lack of market intelligence on Japanese market players and market developments.
- A manufacturing strategy fitting to the intended ramp up according to the expected demand.
The global burner business is divided into two groups: Real mass market products of manufacturers supplying many million burners of each type per year and small series manufacturers like promeos supplying hundreds of a kind per year. The latter needs adapted competitive manufacturing technologies to enable smaller manufacturing capacity and higher flexibility in design. promeos started as a result of this action 3D-printing activities.
- Direct feed-back from prospective customers to the planned value and product proposition:
It is not a surprise that the product requirements towards hydrogen burners differ a lot in the various industries. The evaluation takes technical challenges and economic benefits into account.
- A more detailed product strategy covering now better known customer needs:
Mobile “H2-to-heat” solutions are back on the agenda. LOHC projects gain importance. Entering the chemical sector will be a long run and driven by customer’s “pain” and need to change and improve. The market research delivered an additional key requirement for industrial markets: Operation ability in high temperatures.
In more detail according to the workplan:
1) Technical roadmap for the equipment needed to ramp-up manufacturing volumes of the MFT, based on the preliminary assumption of using 3D-printing of ceramic, metal and plastic material composites
o Technical milestones for ramp-up: 3D printing is not competitive
o Interviews with manufacturing technology suppliers: New technical requirements derived, especially product operation under high temperature requirements
o Derive a concept for a Quality System: Focus on surface homogenity of the heat source
- How to bring down manufacturing cost by using appropriately sized 3D-printers
o Calculate manufacturing costs for different growth and equipment scenarios: 3D-printers are not yet promising as conventional technologies are still more competitive even at small batch numbers
o Compare financing scenarios for the fixed assets needed: Investment into high temperature lab test bench needed.
2) Pricing model based on a TCO approach from the value added for the customer
The market research prooved Japan to be one of the most attractive markets for industrial and automotive hydrogen technologies and products: Large market sectors ar paralleled by high energy and technology prices.
The value based price requires a 2 years pay back promise.
The lifetime expectancy shall not be less than 3 years including annual inspection and maintenance.
3) Derive the market strategy for the European markets within the chemical and hydrocarbon industries
o Market entry by pilot applications and pilot customers: Ideal accounts are big refineries, ethylen production, LNG and CNG terminals, hydrogen filling stations.
o Market multiplication strategy by direct and OEM sales: Direct sales need to build first references, later OEM sales to equipment manufactures and infrastructure operators
o IP strategy options: Looking beyond the new product to stay one step ahead by including now also the functionality of handling very hot preheated air/oxygen.
o Confirm the commercial focus of the study “high value hydrogen combustion in industrial processes” through target customer and expert interviews in the chemical and hydrocarbon industry, collecting market data: 2 pilot customers still hot, 1 lost for undefined reasons.
o In depth analysis of the European chloralkali process industries: postponed to phase II.
The market research delivered an additional key requirement for industrial markets: Operationability in high temperatures.
Work performed in detail and the summarized results:
- The global technology lead of promeos in this field is confirmed, with a lack of market intelligence on Japanese market players and market developments.
- A manufacturing strategy fitting to the intended ramp up according to the expected demand.
The global burner business is divided into two groups: Real mass market products of manufacturers supplying many million burners of each type per year and small series manufacturers like promeos supplying hundreds of a kind per year. The latter needs adapted competitive manufacturing technologies to enable smaller manufacturing capacity and higher flexibility in design. promeos started as a result of this action 3D-printing activities.
- Direct feed-back from prospective customers to the planned value and product proposition:
It is not a surprise that the product requirements towards hydrogen burners differ a lot in the various industries. The evaluation takes technical challenges and economic benefits into account.
- A more detailed product strategy covering now better known customer needs:
Mobile “H2-to-heat” solutions are back on the agenda. LOHC projects gain importance. Entering the chemical sector will be a long run and driven by customer’s “pain” and need to change and improve. The market research delivered an additional key requirement for industrial markets: Operation ability in high temperatures.
In more detail according to the workplan:
1) Technical roadmap for the equipment needed to ramp-up manufacturing volumes of the MFT, based on the preliminary assumption of using 3D-printing of ceramic, metal and plastic material composites
o Technical milestones for ramp-up: 3D printing is not competitive
o Interviews with manufacturing technology suppliers: New technical requirements derived, especially product operation under high temperature requirements
o Derive a concept for a Quality System: Focus on surface homogenity of the heat source
- How to bring down manufacturing cost by using appropriately sized 3D-printers
o Calculate manufacturing costs for different growth and equipment scenarios: 3D-printers are not yet promising as conventional technologies are still more competitive even at small batch numbers
o Compare financing scenarios for the fixed assets needed: Investment into high temperature lab test bench needed.
2) Pricing model based on a TCO approach from the value added for the customer
The market research prooved Japan to be one of the most attractive markets for industrial and automotive hydrogen technologies and products: Large market sectors ar paralleled by high energy and technology prices.
The value based price requires a 2 years pay back promise.
The lifetime expectancy shall not be less than 3 years including annual inspection and maintenance.
3) Derive the market strategy for the European markets within the chemical and hydrocarbon industries
o Market entry by pilot applications and pilot customers: Ideal accounts are big refineries, ethylen production, LNG and CNG terminals, hydrogen filling stations.
o Market multiplication strategy by direct and OEM sales: Direct sales need to build first references, later OEM sales to equipment manufactures and infrastructure operators
o IP strategy options: Looking beyond the new product to stay one step ahead by including now also the functionality of handling very hot preheated air/oxygen.
o Confirm the commercial focus of the study “high value hydrogen combustion in industrial processes” through target customer and expert interviews in the chemical and hydrocarbon industry, collecting market data: 2 pilot customers still hot, 1 lost for undefined reasons.
o In depth analysis of the European chloralkali process industries: postponed to phase II.
- Technology and marketing roadmap to be implemented
- Growing visibility of promeos as a global high tech player in hydrogen thermal use for various sectors
- Number of inquiries related to the action started to grow- Investment needs for phase II to be elaborated in short
- Based on the results of the action the company decided this week to go ahead with Phase II
- Growing visibility of promeos as a global high tech player in hydrogen thermal use for various sectors
- Number of inquiries related to the action started to grow- Investment needs for phase II to be elaborated in short
- Based on the results of the action the company decided this week to go ahead with Phase II