Petrochem/Utilities Industry Trends

Fuel Cell Technology: Opportunities and Challenges

Issue Table of Contents

Fuel Cell Technology: Opportunities and Challenges U.S. Fuel Cell Council Urges Acceleration of Codes and Standards Powering the Future IEEE Begins Standard on Fuel Cells and Other Distributed Resources Linked to Power Systems

The need for an environmentally clean, quiet and highly fuel-efficient power sources is driving the development of Fuel Cell Technology. Fuel Cells are one of the most promising technologies for meeting future global power requirements. Unlike power plants that use conventional technologies, Fuel Cell plants that generate electricity and usable heat can be built in a wide range of sizes. Fuel cell power sources produce electricity, heat and water electrochemically, with no moving parts, noise, or pollutant emissions.

Fuel Cells operate much like a battery, turning oxygen and hydrogen into electricity in the presence of an electrically conductive material called an electrolyte. However, unlike a battery, Fuel Cells never lose their charge. As long as there is a constant source of fuel, usually natural gas for hydrogen and air for oxygen, Fuel Cells will generate electricity.

Fuel Cells, using the electrochemical process, were originally developed by the National Aeronautics and Space Administration (NASA) to generate electricity, heat, and water in U.S. space vehicles. However, the technology can also have many advantages on Earth. For example, it is a cogeneration system, simultaneously producing electricity and heat (in the form of steam or hot water). Beyond that, Fuel Cells have advantages over other cogeneration systems in that they are more efficient in producing electricity, produce fewer emissions, and make less noise.

Today, Fuel Cells are not a significant contributor to current U.S. generating capacity. According to the Council on Engineering of the American Society of Mechanical Engineers (ASME) it is estimated that Fuel Cell power systems could account for 36 GW or 4.2 percent of projected U.S. electricity generation by 2020.

Commercial market opportunities for Fuel cell in the U.S. are focused in several areas:

• Power plants
• Industrial plants
• Commercial/residential buildings
• Transportation buildings
• Utilities
• Automobiles

Fuel Cells are already providing on-site power for banks, police stations, and office buildings. In the near future, Fuel Cells could be propelling automobiles and generating electricity for homes (e.g. basements or backyards.)

Because Fuel Cells cross so many different industry lines, numerous government agencies and industry Standard Developing Organizations (SDOs) are involved in the standards process making a wide array of codes and standards available. Some active participants in these standards include:

Industry

• American National Standards Institute (ANSI)
• American Petroleum Institute (API)
• Institute of Electrical and Electronics Engineers (IEEE)
• International Electrotechnical Commission (IEC)
• National Fire Protection Association (NFPA)
• SAE International (SAE)
• Underwriters Laboratories, Inc. (UL)

Government

• Department of Defense (DoD)
• Department of Energy (DOE)
• National Aeronautics and Space Administration (NASA)

According to the Department of Energy (DOE), the commercial building sector, which accounts for more than 4.5 million buildings, has a primary energy consumption of more than 13 quads per building. Using Fuel Cell for cogeneration of heat in buildings would greatly reduce the consumption of primary fuels.

Additional benefits include:

• Significant reduction in carbon dioxide emissions resulting from the large reduction in primary energy consumption
• Reduction in the need for an electric utility infrastructure (i.e. generation, transmission, and distribution) with associated cost reductions in the delivery of electric services
• Positions U.S. industries as leaders in this dynamic area of technology (Japan and Europe have also shown great interest) with implications for worldwide sales and domestic job growth.

Renewable, environment-friendly energy sources are becoming more important in today's world. Researchers in university and government laboratories, as well as commercial businesses, continue to explore, develop, and improve upon the processes and technologies needed to make the Fuel Cell a reliable and cost-effective alternative power source.