By Vesela Veleva, ScD, Codirector, SERC
While fuel cells have been around for decades, the technology has experienced rapid development in recent years. According to a recent industry report, in 2013, global fuel cell industry sales reached $1.3 billion with consistent annual growth of over 30 percent. Fuel cells offer clean, cool, quiet, efficient, and reliable energy generation. They are seen by the U.S. Department of Energy as an important energy source for a wide range of markets, including defense, electric power, and automobiles. What is behind this growing investment, and how is the industry working with policymakers and other stakeholders to overcome current challenges and ensure future growth?
On March 2, 2015, the Center for Sustainable Enterprise and Regional Competitiveness (SERC) hosted a panel presentation and discussion on current developments and future opportunities for fuel cell technology. Presenters included Charlie Myers, President of the Massachusetts Hydrogen Association and Expert, Fuel Cell & Hydrogen Technologies, SRA International, and Dr. Gami Maislin, Lead of the Power Enterprise Campaign at Raytheon. Prof. Vesela Veleva, Lecturer and SERC Co-Director, moderated the event.
Fuel cells are electrochemical devices that combine hydrogen and oxygen to produce electricity, water, and heat. Since they don’t burn fuel, they are quiet, reliable, and can be two to three times more efficient than combustion. The three main markets for fuel cell technology are a) stationary power, b) transportation, and c) portable power. In the U.S., fuel cell technology has more patents filed than any other clean energy technology (over 1,000 in 2012 alone), with GM, Honda, Toyota, Samsung, Nissan, and Ballard submitting most patents. Among the early adopters, Sysco and Wal-Mart purchased fuel cell-powered forklifts, which provide significant time and labor savings. Verizon was among the early adopters investing in a fuel cell and solar energy project to power critical data centers, central offices, and other buildings across several states. All major car manufacturers are rolling out fuel cell cars, some by the end of this year.
Two main challenges facing future fuel cell technology growth include building refueling infrastructure and reducing fuel cell costs. A single fueling station, for example, can cost as much as $1.5 million. Several recent initiatives in the U.S. aim to address the above challenges. H2USA is a public-private partnership including over 30 organizations and focused on advancing the hydrogen infrastructure in the U.S. H2FIRST is another U.S. initiative serving as a national lab and including industries. The governors of eight states (California, Connecticut, Massachusetts, Maryland, New York, Oregon, Rhode Island, and Vermont) signed a Memorandum of Understanding (MOU) to coordinate actions in order to build infrastructure to achieve 3.3 million Zero Emission Vehicles by 2025. California is spending $50 million to build 28 stations that will be operational by the end of this year and has committed $20 million annually to build 100 hydrogen-fueling stations in order to meet the state goal of 1.5 million ZEVs by 2025. As part of its strategy to get away from oil, Hawaii has an agreement signed by 12 stakeholders, including GM, utilities, hydrogen providers, the Department of Defense, and the Department of Energy, to establish hydrogen as a major part of its future energy mix. With more players entering the market, it is expected that fuel cells cost will go down. Department of Energy Hydrogens and Fuel Cells Program has committed funding to achieve its 2020 goals, including fuel cell cost of $40/kWh, hydrogen cost of less than $4/gge, and fuel cell durability of at least 5,000 hours.
Fuel cell technology provides additional benefits for defense applications, as explained by Gami Maislin, who discussed a number of possible mission areas for fuel cells. Since there are no moving parts in the power-producing system, fuel cell applications mean very quiet operations. Additionally, Raytheon is considering fuel cells for applications that require high reliability, enhanced mission duration, and minimal maintenance. For long-duration missions, fuel cell systems can be much smaller and lighter than batteries. For example, a soldier currently may carry more than 20 pounds of batteries depending on their mission, as explained by Dr. Maislin; and the Department of Defense is looking for better ways to support 72-hour missions. Fuel cells are also being investigated for use in anaerobic environments, in which the high pressure and hot exhaust of combustion are not tolerated. Remote and island environments are particularly expensive and often involve fuel convoys that risk soldiers’ lives. Fuel cells are more efficient and thus use less fuel than an engine would, and may be operated in reverse to provide hydrogen fuel from tap water and electricity (regenerative fuel cell). The Department of Defense is also embracing technology as a way to ensure energy security and protection against grid outages at their facilities. In stationary or mobile applications with high peak demand, fuel cells can provide the base load power, with energy storage providing the peak power. Some of the current challenges in the above applications include the need for fuel cell systems that can run on military logistics fuels (e.g., diesel, JP8), the system cost, the physical robustness of the system to operate in various shock and vibration environments, and good fuel and power system management.
In the discussion that followed, the audience raised questions about moving away from natural gas as the main source of hydrogen, the role of airlines in adopting fuel cells, and the cost of FCEVs. To be truly zero emission, fuel cell technology must use hydrogen produced through electrolysis (splitting water into hydrogen and oxygen), where electricity has come from renewable sources such as wind and solar or the reformation of biogas. The lease on Toyota Mirai is expected to be $499 per month and includes both fuel and maintenance. Both Boeing (787) and Airbus (A320) have been working on incorporating fuel cells in their airplanes as a way to reduce emissions but have not announced any timelines. Clearly, future opportunities for market and technological innovation are significant. Among the attendees were representatives of two companies working to develop more efficient and cost-competitive fuel cells – Acumentrics and Proton OnSite, who shared their insights. The event concluded with a discussion about the best career strategy for students interested in the clean energy field and the importance of seeking internships with local companies leveraging the opportunities provided by the Massachusetts Clean Energy Center Internship Program.