In this issue: Stationary Fuel Cells
Issue 22 • May 1, 2011
• Stationary Fuel Cells at a Glance
• Technologies
• Benefits and Drawbacks
• Q&A with EBay and Stop & Shop
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
EL Insider: Stationary Fuel Cells
Stationary Fuel Cells at a Glance
Fuel cells are a type of power device that derive energy from a feedstock using a chemical reaction. Unlike
batteries, fuel cells use feedstocks that get replenished. Many people associate these devices primarily with
hydrogen, which is a popular feedstock. But these devices can use a variety of fuels including natural gas and
biogas.
Fuel cells’ most popular use has been in transportation and portable applications. Lately, however, the buzz
around stationary fuel cells has grown. Undoubtedly the lion’s share of that excitement was created by Bloom
Energy, a manufacturer that launched with a suite of big-name customers in early 2010. Bloom does have
serious competition, however – and each manufacturer offers a slightly different product with its own
advantages and disadvantages.
How they work
In very simplified terms, a fuel cell consists of an electrically conductive material (an electrolyte) sandwiched
between two electrodes: a negatively charged anode and a positively charged cathode. In the case of
hydrogen– which lends itself to some of the simplest chemical reactions – fuel is channeled to the anode,
where a catalyst encourages the hydrogen atoms to separate into protons from electrons. The protons pass
through to the cathode, while the electrons flow through an external circuit, forming an electric current. The
electrons and protons meet up again at the cathode, where they combine with oxygen to form water and heat.1
1 http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/fct_h2_fuelcell_factsheet.pdf
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Comparison of Fuel Cell Technologies
Fuel Cell
Type
Operating
Temp.
Typical
Stack Size Efficiency Applications Advantages Challenges
Polymer Electrolyte
Membrane
(PEM)
50-100°C 122-212°F typically 80°C
1 kW–100 kW
60% Transportation 35% stationary
•Backup power •Portable power •Distributed generation •Transportation •Specialty vehicles
•Solid electrolyte reduces corrosion & electrolyte management problems •Low temperature •Quick start-up
•Expensive catalysts •Sensitive to fuel impurities •Low temp. waste heat
Alkaline
(AFC) 90-100°C 194-212°F
10–100 kW 60% •Military •Space
•Cathode reaction faster in alkaline electrolyte, leads to high performance •Low cost components
•Sensitive to CO2 in fuel & air •Electrolyte management
Phosphoric Acid
(PAFC) 150-200°C 302-392°F
•400 kW •100 kW module
60% •Distributed generation
•Higher temperature enables CHP •Increased tolerance to fuel impurities
•Platinum catalyst •Long start up time •Low current and power
Molten
Carbonate
(MCFC)
600-700°C 1112-1292°F
•300 kW–3 MW •300 kW module
45-50%
•Auxiliary power •Electric utility •Distributed generation
•High efficiency •Fuel flexibility •Variety of catalysts •Suitable for CHP
•High temp. corrosion & breakdown of cell components •Long start up time •Low power density
Solid Oxide
(SOFC) 700-1000°C 1202-1832°F
1 kW–2 MW 45-50%
•Auxiliary power •Electric utility •Distributed generation
•High efficiency •Fuel flexibility •Variety of catalysts •Solid electrolyte •Suitable for CHP & CHHP •Hybrid/GT cycle
•High temp. corrosion & breakdown of cell components •High temp. operation requires long start up time and limits
Source: DOE Energy Efficiency and Renewable Energy, Fuel Cell Technologies Program, April 2011
Technologies
All fuel cells have the same basic setup of an electrolyte and two electrode. But the various types of fuel cells
vary considerably, mostly by the kind of electrolyte they use.2 The choice of electrolyte determines what kind of
chemical reaction takes place in the fuel cell, along with other properties such as the temperature range of
2 http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/fct_h2_fuelcell_factsheet.pdf
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
operations. As the chart on the previous page shows, this results in different benefits and drawbacks for each
technology. The most widely used fuel cell types are:
Polymer Electrolyte Fuel Cell (PEFC) or Proton Exchange Membrane Fuel Cell (PEMFC)
The electrolyte in this type of fuel cell is made of a polymer that is a good conductor of protons. This type of
fuel cell runs at low temperatures and is the most popular for automotive, small stationary, and portable power
applications. PEMFCs require very pure hydrogen as the fuel.
Phosphoric Acid Fuel Cell (PAFC)
The electrolyte in this type of fuel cell is phosphoric acid. Buses and stationary applications both currently use
PAFCs.
Molten Carbonate Fuel Cell (MCFC)
The electrolyte here is usually a combination of alkali carbonates, retained in a ceramic matrix. The MCFC
operates at a high temperature that allows the user to benefit from both electricity and thermal energy, raising
efficiencies. The Department of Energy says that MCFCs are well-suited to large-scale stationary applications,
and are currently being used to power buildings. High-temperature fuel cells can more easily use a wide range
of fuels.
Solid Oxide Fuel Cell (SOFC)
The electrolyte in the SOFC is a solid, nonporous metal oxide. At temperatures over 650 degrees Celsius,
SOFCs can use hydrocarbon fuels, such as natural gas, directly – similar to the MCFC. The SOFC can also
generate thermal energy. High-temperature SOFCs are currently being used for stationary power applications.
Alkaline Fuel Cell (AFC)
This was one of the first modern fuel cells to be developed, and was by the Apollo space missions for on-board
electric power. The electrolyte here is alkaline (KOH). AFCs need pure hydrogen as a feedstock.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Feedstocks
The feedstock used in a fuel cell can greatly influence the environmental attributes of the device. Some of the
common feedstocks are:
Hydrogen
Fuel cells using hydrogen emit only water and heat, and are therefore emission-free.3 Hydrogen is not itself an
energy source, but stores and delivers energy in a usable form. It must be produced from hydrogen-containing
compounds.4 To measure the full environmental impact of these devices, therefore, one must consider how the
hydrogen is created.
The cheapest way to make hydrogen is from natural gas. Hydrogen can also be created using coal, biomass,
nuclear, wind, solar, geothermal and hydroelectric power. The DOE expects that costs of hydrogen, assuming
widespread deployment, will come down to $3.00 per gallon gasoline equivalent, competitive with gasoline.5
The department says that the diversity of supply is an important part of why hydrogen technology is so
promising. There are also a variety of technologies for producing hydrogen. Some technologies, such as steam
methane reforming, are well-developed and commercially available, while others – such as high-temperature
thermochemical water-splitting, biological, and photoelectrochemical methods – are in early stages of
development.
3 http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/fct_h2_fuelcell_factsheet.pdf
4 DOE fact sheet: Fuel Cell Technologies Program: Production
5 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
One problem with hydrogen is that its transport tends to be costly. It contains less energy per volume than
other fuels such as natural gas and gasoline.6 The least expensive way to move hydrogen is by pipeline, but
the U.S. currently has less than 1,200 miles of such pipeline (compared to more than one million miles for
natural gas).Some of the major hydrogen pipelines today are near large petroleum refineries and chemical
plants in Illinois, California and along the Gulf Coast. Compressed hydrogen gas can be transported by road,
but this tends to become cost-prohibitive at distances over 200 miles, the DOE says. Liquefied hydrogen is
more dense and therefore cheaper to move over long distances, but the liquefaction process is itself costly.
Natural gas
Fuel cells can also run on natural gas directly, which is cheaper both to purchase and to transport. It is not,
however, emission-free.
Biofuel/biogas
Fuel Cells can run off of biofuel, or from biogas emitted during on-site industrial activities, such as sewage
processing, food and beverage production, and crop and animal agriculture. 7
6 DOE Fuel Cell Technologies Program: Delivery Fact Sheet.
7 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Benefits of Fuel Cells
Benefits of fuel cells include:
Low emissions
Most fuel cells on the market today boast no or minimal emissions of CO2, CO, Nox, SOx and volatile organic
compounds (VOCs). Fuel cells’ high operating efficiency reduce their emissions compared to traditional fossil
fuels, even when the fuel cells run on or derive their hydrogen from natural gas.
Efficiency
Combustion-based power plants typically generate electricity at efficiencies of 33 to 35 percent, but fuel cells
can achieve efficiencies up to 60 percent.8 Most fuel cells are designed to work as combined heat and power
(CHP) systems, with the cell’s heat output used for space or water heating, or even to drive chillers. This, in
turn, increases efficiency, to as high as 85 percent.9
Lowered electricity/heating costs
Many customers and manufacturers say their fuel cells lower electric and natural gas bills with a payback of
three to five years. The CHP function can also help to significantly reduce utility bills. Of course, fuel cells also
present cost challenges (see Feedstocks, above, and Drawbacks, below). The financial feasibility of a fuel cell
will depend on a combination of factors including the business’s energy demands, geographical location, and
technology under consideration.
8 http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/fct_h2_fuelcell_factsheet.pdf
9 Pike Research, Stationary Fuel Cells: Fuel Cells for Residential, Commercial and Industrial Applications: Market
Analysis and Forecasts. 4Q 2009.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Backup power
Since fuel cells are a type of distributed generation – that is, they generate power on-site rather than relying on
the electricity grid – they can be used to provide back-up power in the case of outages or emergencies. This
makes them especially suited to businesses with 24-hour energy needs, such as hospitals and telecoms
companies.
Scalability
Fuel cells can be stacked to create plants with greater power, and range in output from hundreds of watts to
multiple megawatts.
Durability/maintenance
Fuel cells have few moving parts compared with batteries and thermal generators, and they cope well with
harsh outdoor environments.10
Drawbacks of Fuel Cells
Drawbacks of fuel cells include:
Installation costs
The cost of buying and installing a stationary fuel cell has long been high. These costs still vary widely for the
different fuel cell technologies, according to the DOE – from $2,500/kW for some technologies to more than
$40,000/kW for direct methanol fuel cells. While prices have come down substantially in the past few decades,
they are still not competitive with other energy sources, SBI says. Fuel cells developed for NASA in the 1960s
10 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
and 1970s cost $600,000 per kilowatt. Today, the most common fuel cell types cost $4,500 per kilowatt.11
There are, however, government incentives available to help defray costs (see below).
Immaturity
The fuel cell sector is still very young, although levels of installation are growing. Analysts are uncertain
whether the industry will be able to find the economies of scale to help bring down costs.
Resources
Most types of fuel cells are made with precious metals. Also, fuel cells are rarely emissions-free when
considered across the entire lifecycle of energy production, in the way that renewable technologies such as
wind and solar are.
Financial Incentives
Federal
The Emergency Economic Stabilization Act of 2008
An investment tax credit of 30% for qualified fuel cell property, or $3,000/kW of the fuel cell capacity, whichever
is less. The equipment must be installed by Dec. 31, 2016.
A credit of 10% for combined-heat-and-power-system property.
The American Recovery and Reinvestment Act of 2009 expanded incentives to include
11 SBI Energy: Fuel Cell Technologies Worldwide. September 2010.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Grants for energy property (in lieu of tax credits), which allow facilities with insufficient tax liabilities to apply for
grants instead of claiming investment or production tax credits.
A 30 percent manufacturing credit, for investment in property used for manufacturing fuel cells.
The DOE has awarded $42 million under the American Recovery and Reinvestment Act to accelerate the
commercialization and deployment of fuel cells. These efforts will deploy up to 1,000 fuel cells, primarily in
backup power and forklift applications, the department says. Industry participants, including Sprint, AT&T,
FedEx, Whole Foods, Sysco, Wegmans and Coca-Cola, provided approximately $54 million in cost-share
funding—for a total of nearly $96 million. As of December 2010, 60 percent of these funds had been spent with
300 fuel cells delivered.12
State
A number of states offer incentives for the installation of fuel cells and hydrogen energy systems. A 2010 report
from Fuel Cells 2000, ―State of the States: Fuel Cells in America,‖ said that Califiornia, Connecticut, New York,
Ohio and South Carolina are leading the way with their fuel cell policies. These states have installed stationary
fuel cells at power plants, hotels, restaurants, schools, hospitals, grocery stores and homes.
Major Manufacturers
Some of the major manufacturers of stationary fuel cells are:
BloomEnergy (bloomenergy.com)
A private company based in California, Bloom caused quite a stir when its solid-oxide fuel cells, or ―Bloom
boxes‖, hit the market in February 2010. Not only had the start-up managed to keep mum about its big-ticket
12 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
clients –Bank of America, Coca-Cola, Cox Enterprises, eBay, FedEx, Google, Staples and Wal-Mart – but it
also promised that its product would revolutionize fuel cells by bringing down costs considerably.
Bloom Boxes use a ceramic electrolyte and don’t contain any precious metals or corrosive matierals. The
company says that SOFCs’ high operating temperature give them superior electrical efficiencies and fuel
flexibilities, and that it has managed to solve the engineering challenges that long plagued this type of fuel cell.
Unlike many other types of fuel cells, Bloom Boxes are not touted as CHP devices – but Bloom says that the
devices’ efficiency for electrical operations more than makes up for this. Bloom Boxes run on either natural gas
or biogas. Today customers include Safeway, Adobe, Kaiser Permanente and CalTech. Last month Bloom
announced that it would quadruple the size of its Silicon Valley factory.13
UTC Power (utcpower.com)
This division of the $5.87 billion United Technologies Corp. makes the PureCell Model 400, which produces
400 kW of electricity and about 1.7 million Btu of heat per hour. The phosphoric acid fuel cell (PAFC) runs on
natural gas, and its heat can be used for space heating, hot water applications, and for driving absorption
chillers for cooling, the company says.
UTC says its system is suitable for a variety of facilities including supermarkets, hospitals, hotels, industrial,
schools, data centers and other energy-intensive buildings. The cells also quality for LEED points. Customers
include Coca-Cola, Fujitsu, Hilton, New York Power Authority, Price Chopper, Samsung, Stop & Shop, Verizon
and Whole Foods (see Adoption by Business).
Fuel Cell Energy (fcel.client.shareholder.com)
Also based in Connecticut, Fuel Cell Energy says it has installed over 50 of its Direct FuelCell power plants,
which have generated over 650 million kW hours of electricity. The Direct FuelCell is a high-temperature
carbonate system developed especially for stationary uses. It runs on gases from wastewater treatment, food
processing and landfills, as well as natural gas, coal gas and propane. There are four models: the sub-
13 http://www.environmentalleader.com/2011/04/20/renewable-briefing-cape-wind-bloom-boxes-nrg/
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
megawatt DFC300, the 1.4 megawatt DFC1500, the 2.8 megawatt DFC3000 and the DFC-ERG system, which
combines a Direct FuelCell power plant with an unfired gas expansion turbine.
Customers include Campbell’s Soup subsidiary Pepperidge Farm and four organizations in California: Cal
State Northridge, the city of Tulare, Santa Rita Jail and Gills Onions, the largest onion processor in America.
ClearEdge Power (clearedgepower.com)
Established in 2003, this Oregon-based company makes the ClearEdge5, a sleek white PEM fuel cell that runs
on natural gas. At 26 inches deep, 36 inches wide and under six feet tall, with about 35 square feet needed for
installation and clearances, the unit is ideally scaled for small commercial operations such as restaurants,
hotels and health clubs, the company says. The system generates about 120kWh per day, which equates to
about 43,000kWh annually (43MWh).
Ballard (ballard.com)
The FCgen PEM fuel cells from this Canadian company are designed for distributed generation, as well as
backup power for the telecoms industry. The units use hydrogen as a fuel, and are available in one-megawatt
building blocks that can be combined. Ballard is targeting customers in chemical production as well as
renewable energy producers, who may use fuel cells to provide energy storage during off-peak times.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Latest Developments in Stationary Fuel Cells
Worldwide and U.S. markets
SBI data shows that large stationary
systems – defined as those over 10 kW,
used to power operations including data
centers, office complexes, hospitals,
prisons, hotels and large retail stores –
made up a very small portion of the fuel
cell units sold worldwide in 2005 and 2009.
Only 77 were sold in 2009, compared to
7,500 small stationary units, 5,423 vehicle
units and 18,223 portable units - with all
sectors except large stationary making
huge leaps over 2005 levels.
But by revenue, the picture is quite
different. The high cost of large-scale
stationary systems means that in 2009,
their sales were second only to that of fuel
cells for vehicles. Revenue for large-scale
stationary systems fell by 38 percent
between 2005 and 2009 – probably
because of the decline in costs per MW.
SBI’s data shows that the U.S share of fuel cell sales has shrunk, from 48 percent of revenue in 2005 to 40
percent in 2009, while Japan’s fuel cell sales jumped 163 percent in that time. But this data is for all fuel cell
applications, not just stationary.
850
7,500
23 77
4,559
207
5,423
75 275
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2005 2009
Small stationary Large stationary Portable Vehicle Other
Source: SBI Energy, September 2010
Fuel Cell Growth by Applications
Unit Sales, 2005 v. 2009
18,223
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Adoption by Businesses
Fuel cells are well suited to businesses with high electric loads, and sites where electricity outages carry a high
financial or security cost. Such applications include data centers, hospitals, high-volume financial processing
centers and prisons.14
Ebay
The e-commerce giant was a Bloom
early adopter, installing a 500 kW fuel
cell at its San Jose, Calif., facility – see
Q&A.
The search engine behemoth was
another one of Bloom Energy’s pilot
customers, with a 400 kW unit on its
main campus. Over the first 18 months,
the project delivered 3.8 million kilowatt
hours of electricity.
Kaiser Permanente
The insurer has put in one of the biggest Bloom Box order yet announced, planning on 20 200 kW fuel cells for
a total of 4 MW. Kaiser won’t buy the boxes outright, but has signed up to the Bloom Electrons service. Under
the agreement, Bloom will own and operate the fuel cells, and will sell the energy to Kaiser while supplying the
14 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html
$86 $94
$218
$135
$4 $5
$37
$258
$7 $7
$0
$50
$100
$150
$200
$250
$300
$350
2005 2009
Small stationary Large stationary Portable Vehicle Other
Fuel Cell Growth by Applications
Total Sales, US$ millions, 2005 v. 2009
Source: SBI Energy, September 2010
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
local natural gas transmission networks with biogas to offset greenhouse gas emissions.15 Kaiser expects the
Bloom Boxes to reduce each building’s use of fossil fuels for electricity by 34 percent.
Fireman’s Fund
The insurance company plans to install six Bloom boxes at its Novato, Calif., site. The fuel servers will produce
60 percent of the site’s energy needs and will cost about $5 million, much of that covered by state incentives
and federal credits.16
Wal-Mart
The company has installed two 400 kW Bloom systems at retail locations in Southern California.
Bank of America
The bank is putting in a 500 kW Bloom installation at a call center in Southern California.
Cox Enterprises
The company is putting in a 400 kW Bloom Box at its KTVU TV station in Oakland, Calif.
FedEx
The company has installed five 100 kW Bloom boxes at its package sorting facility in Oakland, Calif.
Staples
The office supply store put in a 300 kW Bloom installation at its Ontario, Calif., distribution center.
15 http://www.environmentalleader.com/2011/01/20/kaiser-permanente-to-install-4-mw-of-bloom-boxes/
16 http://www.environmentalleader.com/2010/12/22/firemans-fund-expects-bloom-boxes-to-meet-60-of-energy-needs/
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Coca-Cola
The company’s Elmsford, N.Y. production facility has two UTC Power fuel cells that provide 35 percent of the
electricity and heat required, and it recently signed a contract to install two more UTC Power fuel cells at its
bottling plant in East Hartford, Conn.17 The drinks maker is also installing a 500 kW Bloom Box at its Odwalla
plant in Dinuba, Calif. That fuel cell will run on re-directed biogas and provide up to 30 percent of the plant’s
electricity needs.
Stop & Shop
The supermarket has installed a UTC Power PureCell System Model 400 at its store in East Torrington, Conn.
The 400 kW system provides 95 percent of the store’s electricity and produced 2,511 mWh of electricity in its
first 310 days of operation, equivalent to a continuous output of 337 kW. The cell, which also produces heat,
has reduced the store’s overall utility spend by about 50 percent. Electricity bills are significantly lower, and
natural gas spend is higher due to the feedstock needed for the fuel cell itself. See Q&A for more information.
Albertsons
A 400 kW UTC fuel cell at an Albertsons supermarket in California is expected to generate nearly 90 percent of
the store’s electricity requirements and cut carbon dioxide emissions by 478 metric tons per year. Byproduct
heat from the fuel cell process will be captured and used to warm water used in the store, heat the store when
necessary and power a chiller to help cool the refrigerated food, resulting in an overall energy efficiency of
approximately 60 percent, nearly twice the efficiency of the U.S. electrical grid, according to the supermarket.18
17 http://www.environmentalleader.com/2010/10/22/caltech-ikea-coke-power-up-clean-power-systems/
18 http://www.environmentalleader.com/2010/08/31/supermarket-installs-400-kw-fuel-cell/
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Fujitsu
The company commissioned a PureCell Model 200 for its Sunnyvale, Calif. Location in 2007.
Mohegan Sun
The casino and resort commissioned two PureCell Model 200s, fueled by natural gas, in 2002.
Verizon
The telecoms company has used seven PureCell Model 200 units, fueled by natural gas, at its Garden City,
N.Y. site since 2005.
Price Chopper
In 2009, the retail chain installed a PureCell Model 400 at its new concept store and pharmacy in Colonie, N.Y.
Whole Foods
The supermarket’s San Jose, Calif., location will use a UTC fuel cell to generate about 90 percent of its needs.
Whole Foods is also using fuel-cell technology at stores in Glastonbury, Conn., and Dedham, Mass.
City of New Haven
The city installed a 400 kW UTC fuel cell in a new, 700,000 square foot mixed use development in the center
of town. The fuel cell provides power to 500 residential units, common areas and retail spaces within the
building, 360 State Street. It will meet nearly 100 percent of the building’s electric needs as well as provide
thermal energy for space heating, domestic hot water and the swimming pool. The project received a grant
from the Connecticut Clean Energy Fund to cover nearly half the cost of the fuel cell unit. This assistance, in
addition to the annual energy savings the fuel cell will produce, allow for a payback of five and half years.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
CalState
The university uses a 1 MW FuelCell Energy plant.
City of Tulare, Calif.
The city installed a 900 kW FuelCell Energy system, consisting of three fuel cells, at its regional wastewater
treatment plant.
Santa Rita Jail
The jail uses a 1 MW FuelCell Energy system to augment its 1.2 MW solar array.
Pepperidge Farm Bakery
The Campbell Soup Company uses two FuelCell Energy power systems at a 260,000 square foot facility,
providing a total electrical output of 1.45 megawatts (MW).
NBC Universal
The company uses a ClearEdge Power system at the Universal Studios Hollywood, in a move that NBC says
will cut CO2 emissions from the theme park’s enormous food production operations by 40 percent compared to
traditional forms of power generation.
Irvine Unified School District
ClearEdge Power says its system at this public school district will reduce carbon emissions by 37 percent and
save almost $36,000 per year.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Projections
Stationary fuel cells offer enormous
long-term potential, because of their
low emissions, efficiency and
expanding range of feedstocks. But
cost issues make fuel cells’ long-term
future difficult to predict.19 Pike says
costs may never come down
substantially without the introduction
of more uniform government
subsidies. SBI says that commercial
and public entities will likely lead the
way in adopting fuel cells as power
sources, because they are the most
aware of the economic and political
advantages of clean energy.20
SBI projects that large stationary
installations will grow by over 250%,
from 139 in 2010 to 489 in 2014 – an
impressive rise, but still a far cry from
19 Pike Research, Stationary Fuel Cells: Fuel Cells for Residential, Commercial and Industrial Applications: Market Analysis and Forecasts. 4Q
2009.
20 SBI
14,020
49,283
139 489
41,048
7,390
25,977
400 1,406
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2010 2014
Small stationary Large stationary Portable Vehicle Other
Fuel Cell Growth by Applications
Unit Sales Projections, in thousands, 2010 v. 2014
144,292
Source: SBI Energy, September 2010
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
vehicles’ projected use of 144,292 fuel cells
in 2014. The race is closer when it comes
to revenue, but here too, stationary uses
are not projected to sell as well as those for
vehicles. Sales for large stationary
installations are predicted to reach $399
million by 2014.
Pike estimates that nationwide fuel cell
capacity, which was about 38 MW in 2008,
will grow to 219 MW by 2013, a compound
annual growth rate (CAGR) of 33 percent.
This equates to a growth in sales from $242
million to $716 million, a CAGR of 24
percent.
Stationary Fuel Cells: What does all this mean?
Fuel cells show tremendous promise as a source of low-emission, high-efficiency energy, both for electricity
and heat
Prices have come down in recent years, and the technology has improved, but buying a fuel cell is still an
expensive proposition.
Companies and manufacturers have reported ROIs of three to five years, and this will make fuel cells an
attractive option for businesses with heavy electrical loads that would benefit from the energy security that fuel
cells provide.
$105
$216 $195
$399
$6 $14
$286
$584
$6 $12
$0
$100
$200
$300
$400
$500
$600
2010 2014
Small stationary Large stationary Portable Vehicle Other
Fuel Cell Growth by Applications
Sales Projections, US$ millions, 2010 v. 2014
Source: SBI Energy, September 2010
http://www.sbireports.com/Fuel-Cell-Technologies-2625062/
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Q&A
Ebay
ELI: What fuel does your fuel cell run on?
We are proud to be Bloom’s first biogas customer, working with a landfill to pull clean energy directly onto the
grid. By running our fuel cells on biogas, we’ll save more than three times the carbon that would have been
used by a system running on natural gas.
ELI: How many kWh of electricity have the fuel cells produced and how much CO2 emissions have they prevented (please give timeframe for measurements)?
More than 7Mkwh, over 9M lbs of CO2 reduced (since the installation was turned on, July 2009)
ELI: What percentage of the headquarters' electricity needs does the fuel cell provide? How about heat?
The Bloom system takes roughly 18% of eBay’s North campus off the grid (including more than half of the
energy it takes to power our LEED certified Mint building that they sit behind), which when combined with our
650KW rooftop solar array, means 1/3 of the campus is powered by clean, renewable energy.
ELI: Do you have or are you planning to install any other fuel cells, and if so can you give me the details of those?
We will continue to explore new, innovative, out-of-the-box options as they become available, including (but not
limited to) more Bloom systems. While our main operations are in California, our footprint is global, and we will
continue to look for the right renewable solution for the right geography.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
ELI: Why did you choose a fuel cell over other forms of renewable electricity?
We are committed to clean energy, as green is part of our core values as a company. While the up-front cost of
fuel cell energy was slightly more than solar, we are getting five times the power over the course of the year,
so the cost benefit is much greater. When innovative companies like Bloom offer up solutions that not only help
us meet our environmental goals, but make financial sense, we jump at the opportunity.
ELI: What are the benefits of using a fuel cell?
We invested in fuel cells because we want to be a disruptive force for clean, economical power and an early
adopter of technology that can help get us there. The Bloom fuel cells provide a consistent, reliable, affordable,
clean power source – that’s good for our business, and good for the environment.
ELI: What are the drawbacks?
Very few thus far. The biogas comes with a fuel price premium, but even with the premium, the cost of power is
still cheaper than what we were paying before. Also, we have had to have Bloom out a couple of times to
replace the ―wafers,‖ but that all falls under regular maintenance. Nothing major.
ELI: How did you choose your provider?
In comparison to other fuel cell providers (mostly hydrogen based) Bloom provided an affordable, reliable,
cutting edge technology while demonstrating the willingness to partner.
ELI: There are a few different commercialized stationary fuel cell technologies out there. How
did you decide which to go with (and what did you choose first, the technology or the provider)?
We were interested in fuel cell technology and talked to a few providers during our research process. The
business case for Bloom Energy was clear and the ROI was compelling.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
ELI: What were the equipment and installation costs, and how quickly do you expect a return
on investment?
While we can’t disclose the equipment and installation cost, we can tell you our payback period is three years
and we are on track to meet it.
ELI: Do you own the fuel cell outright or do you use the Bloom Electrons service?
We own the fuel cells outright.
ELI: You seem to be one of the first companies to install an on-site stationary fuel cell to supply your electricity. Are there dangers in being an early mover, and if so, what are they?
We don’t see it as a risk, we see it as an opportunity. If you remember from February 2009, we stood next to
Bloom proudly, with hopes that other companies would see the value in technologies like this and follow suit.
eBay is a company that has as long history of taking chances with new, innovative, and disruptive technologies
– that was exactly what we saw in Bloom.
ELI: Why do you think more companies haven't taken up this technology?
It’s possible that many companies don’t understand how compelling the business case for fuel cell energy can
be. When we installed our Bloom system, the economics worked particularly well in the state of California, in
part because of the incentives and subsidies that the state provides. Renewable energy may not be as
financially attractive in other states, but we know that’s something Bloom and other renewable energy leaders
are working to change.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Q&A
Ken Welter, senior project manager, Stop & Shop
ELI: Why did you choose a fuel cell over other forms of on-site renewable electricity?
We are continually exploring options available in the marketplace. Through a grant provided by the Connecticut
Clean Energy Fund, we were able to pursue this route. The fuel cell is only one of the technologies we're
evaluating. Over the last two years we have installed 1.3 megawatts of solar generating capacity, and have
also looked at opportunities to site a wind turbine.
ELI: What are the benefits of using a fuel cell, and what are the drawbacks?
Among the options for on-site power generation, there are multiple benefits to a fuel cell. It produces power
around the clock. It's not reliant on the sun or wind. It can run independent from the electric grid, and produces
enough power to run the entire store. The thermal energy that is a by-product of the power generation is used
to reduce our consumption of natural gas for space and water heating, as well as reduce our electric energy
consumption for refrigeration and air-conditioning
The drawback is that it consumes high levels of natural gas. That is the biggest distinction between the fuel
cell, as a clean-energy technology, and solar or wind, as a renewable energy technology.
ELI: How did you choose your provider?
The features of the UTC Power PureCell are very well matched to the needs of a supermarket. The 400 kW
capacity is enough to power the full store under most conditions. Also, the ability of this power plant to provide
thermal energy, and its compact size were key factors in selecting UTC Power.
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
ELI: What does the fuel cell run on?
The fuel cell is powered by hydrogen that is extracted from natural gas in a process that takes place within the
UTC Power PureCell system. The expense for natural gas has increased for this store, although total utility
spend has decreased by approximately 50 percent.
ELI: Is the fuel cell is owned by Stop & Shop outright, or is Stop & Shop just paying UTC for the electricity produced?
Stop & Shop owns the fuel cell.
There are a few different commercialized stationary fuel cell technologies out there. How did you decide which to go with (and what did you choose first, the technology or the provider)?
UTC Power was really the only company at the time that was targeting the supermarket industry. They
introduced us to the technology, so picking the provider and technology went hand-in-hand.
What were the equipment and installation costs, and how quickly do you expect a return on investment?
The fuel cell project was partially funded with a grant of $882,000 from CCEF’s On-Site Renewable Distributed
Generation Program. A similar amount was received through a Federal Investment tax credit available for
clean energy technologies. Together, this defrayed about two-thirds of the total project cost, and will allow for a
payback within five years.
You seem to be one of the first companies to install an on-site stationary fuel cell to supply your electricity. Are there dangers in being an early mover, and if so, what are they?
We are committed to be being a sustainable company. We only see upside to implementing energy saving
initiatives in our stores - they benefit the environment and reduce the impact directly in the communities in
which we operate.
I've noticed that fuel cells seem to be popular among supermarkets. Why are they particularly useful in the supermarket business?
EL Insights | © 2011 Environmental Leader LLC. Single license EL PRO subscription can be used by one person. For multiple users, purchase
an enterprise license by emailing [email protected] for information.
Supermarkets are characterized by a high base load electric demand and a year-round ability to use the
thermal energy created by the fuel cell. We operate large facilities and energy spend can be significant. Our
goal is to continually look for ways to reduce our carbon footprint in our operations.
What other types of businesses do you think would benefit from using stationary fuel cells?
Any retailer can benefit or other businesses that operate multiple facilities where climate and temperature
controls are a consideration. UTC Power’s high-efficiency PureCell System Model 400 is well-suited for
applications requiring anywhere from 400 kilowatts to about 2.5 megawatts of baseload power. Typical
businesses fitting this profile include hospitals, hotels, bottling, food processing, industrial, and pharmaceutical
facilities. These businesses are generally energy-intensive and have power, heating and cooling needs.