stationary fuel cells - energy leader...around stationary fuel cells has grown. undoubtedly the...

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

http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/fct_h2_fuelcell_factsheet.pdf



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





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.



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.


4 DOE fact sheet: Fuel Cell Technologies Program: Production

5 http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html


http://www1.eere.energy.gov/hydrogenandfuelcells/applications.html



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.





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.


9 Pike Research, Stationary Fuel Cells: Fuel Cells for Residential, Commercial and Industrial Applications: Market

Analysis and Forecasts. 4Q 2009.




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





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.



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





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/

http://www.environmentalleader.com/2011/04/20/renewable-briefing-cape-wind-bloom-boxes-nrg/



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.



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



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.

Google

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


$86 $94

$218

$135

$4 $5

$37

$258

$7 $7

$0

$50

$100

$150

$200

$250

$300

$350

2005 2009



Total Sales, US$ millions, 2005 v. 2009





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/



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/

http://www.environmentalleader.com/2010/10/22/caltech-ikea-coke-power-up-clean-power-systems/

http://www.environmentalleader.com/2010/08/31/supermarket-installs-400-kw-fuel-cell/



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.



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.



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



Unit Sales Projections, in thousands, 2010 v. 2014

144,292




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



Sales Projections, US$ millions, 2010 v. 2014


http://www.sbireports.com/Fuel-Cell-Technologies-2625062/



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.



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.



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.



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.



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?



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.

stationary fuel cells - energy leader...around stationary fuel cells has grown. undoubtedly the...

Documents