- Email: [email protected]
Bloom Energy wins Delaware deal for manufacturing, supply
NEWS ‘Companies are collectively saving millions of dollars in electricity costs, while reducing carbon emissions by hundreds of thousands of metric tons per year, using fuel cell forklifts and power systems,’ says Jennifer Gangi, program director at Fuel Cells 2000. ‘The US is the world leader in both fuel cell forklift deployments and combined heat and power (CHP) installations, with both markets dominated by American fuel cell manufacturers, helping to provide jobs and opportunities for export,’ continues Gangi. ‘All the companies profiled in this report are using fuel cells from suppliers with headquarters in the US.’ Last year, Fuel Cells 2000 profiled 38 companies that collectively ordered, deployed, or installed 15 MW of stationary power, 1000 fuel cell powered forklifts, and 600 fuel cell backup power units. Companies leading the charge with fuel cell deployment include: • Walmart: 6.8 MW worth of Bloom Energy Servers at 17 stores, plus more than 70 forklifts powered by Plug Power’s GenDrive® technology. • Coca-Cola: 2.1 MW at four locations (using UTC Power and Bloom Energy units), plus 72 forklifts (also GenDrive powered) at two bottling facilities. • Sysco: 500+ forklifts at multiple locations (GenDrive again), with several hundred more on order. • Whole Foods Market: 1.2 MW of UTC Power systems at four grocery stores, plus 60+ forklifts (also GenDrive). ‘Fuel cells are not only helping businesses boost their environmental and economic bottom lines, they are also providing a much-needed assist to American manufacturing,’ says Gangi. ‘Newcomers like NBCUniversal, Kroger, and Kaiser Permanente and repeat customers such as Coca-Cola, Walmart, and AT&T are helping keep the US at the head of the pack in the clean technology market.’ Download the new report: www.fuelcells.org/BusinessCaseforFuelCells2011.pdf Download the 2010 report: www.fuelcells.org/BusinessCaseforFuelCells.pdf
Neah Power offers fuel cell manufacturing license to customers
U
S-based Neah Power Systems is now offering licenses to potential customers to manufacture its patented, siliconbased PowerChip™ fuel cell technology.
November 2011
The move adds a strategic component to the company’s business model. Thus far, Neah Power’s business model has focused on outsourced manufacturing. The shift to emphasize a licensing strategy is intended to further leverage existing third-party manufacturing capacity in the semiconductor industry. ‘The ability to use existing, low-cost, thirdparty factories to manufacture our PowerChip technology is a key differentiator between our fuel cells and incumbent proton-exchange membrane (PEM) products,’ explains Dr Chris D’Couto, CEO of Neah Power. ‘Our licensing strategy is a powerful competitive tool, particularly for customers who have access to their own computer chip manufacturing capacity,’ he continues. ‘Because our products can be manufactured with existing equipment used in the semiconductor industry, licensing allows potential customers to leverage current manufacturing facilities without significant capital outlays for new equipment.’ The company believes that this manufacturing capacity, along with the longer fuel cell life, higher power density (power per unit area), and anaerobic (non-air) functionality of its PowerChip technology, provides it with competitive advantages over PEM-based fuel cells. Neah Power Systems Inc, Bothell, Washington, USA. Tel: +1 425 424 3324, www.neahpower.com
IMW in long-term deal with UTC Power to provide key modules
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anadian-based IMW Industries has signed a long-term agreement with UTC Power, to be the exclusive provider of natural gas reforming and CSA cooling modules for its PureCell® Model 400 stationary fuel cell production. No contract value was disclosed for the agreement, which runs to the end of 2014. ‘We have worked with UTC Power to provide best-in-class natural gas processing technology for its stationary fuel cells, and are pleased to be chosen as sole supplier for its market-leading system,’ says Brad Miller, president and CEO of IMW. ‘This agreement complements our growth in the expanding market for natural gas compression equipment for fueling transportation in North America and worldwide.’ IMW Industries – a subsidiary of Californiabased Clean Energy Fuels Corporation – manufactures and services advanced natural gas fueling compressors and related equipment, with more than 1200 installations in 24 countries.
The company operates a manufacturing facility at its headquarters near Vancouver, another near Shanghai, China, and a third one near Ferndale, Washington, USA. The PureCell solution from UTC Power uses phosphoric acid fuel cell technology to generate 400 kW of electric power using natural gas as input fuel. The byproduct heat can be easily harnessed to provide space heating or domestic hot water – or, with the addition of an optional absorption chiller, to produce cooling. While centralized power plants achieve about 35% energy conversion, the PureCell system can attain energy conversion efficiencies as high as 90%. UTC Power, South Windsor, Connecticut, USA. Tel: +1 860 727 2200, www.utcpower.com IMW Industries, Chilliwack, BC, Canada. Tel: +1 604 795 9491, www.imw.ca
Bloom Energy wins Delaware deal for manufacturing, supply
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alifornia-based Bloom Energy has received approval from the Delaware Public Service Commission for a lucrative deal with Delmarva Power and Light, an electric utility serving Delaware, Maryland and Virginia. The controversial agreement will see Bloom Energy build a manufacturing facility in Delaware and supply significant fuel cell power capacity, subsidized by a modest surcharge (estimated at an average $1.34 per month) on the utility’s electricity bills. Delaware recently passed legislation to include the use of fuel cells under the state’s renewable energy mandate. Delmarva Power will partner with Bloom Energy to facilitate 30 MW of solid oxide fuel cell installations as part of the utility’s renewable energy portfolio. Bloom Energy will receive significant job creation incentives – apparently worth some $18 million – from Delaware as well as support from the University of Delaware, which owns the planned site. The new investment could create up to 1500 high-tech jobs between Bloom Energy and its suppliers at the site of the former Chrysler factory in Newark. The facility will manufacture Bloom Energy Servers, which were launched early last year [FCB, March 2010]. The Newark facility would directly employ 900 people, with a potential additional 600 jobs through co-located suppliers. Construction is expected to begin next March, with manufacturing beginning about a year after that.
Fuel Cells Bulletin
9
NEWS The 30 MW of power capacity would be supplied over the next 21 years at a stable and competitive price, starting with 10 MW in 2012 [FCB, July 2011]. Bloom Energy Servers – each rated at 100 kW – would be used at two Delmarva substations in New Castle County to provide locally manufactured power to businesses and residences. So far, more than 120 Bloom Energy Servers have been deployed across California, including recently announced installations for telecom giants AT&T and NTT America [FCB, August 2011]. There is also a Bloom Box installed at the Electric Power Board headquarters in Chattanooga, Tennessee [FCB, August 2010].
In the future the group expects to generate 60% of combined turnover in industrial applications. This will significantly reduce SFC’s dependence on seasonal fluctuations in the leisure business, and on the generally low predictability of the defense market. There is also significant potential for increased efficiency resulting from development, production, and supply chain synergies.
Bloom Energy Corporation, Sunnyvale, California, USA. Tel: +1 408 543 1500, www.bloomenergy.com
DLA report analyzes fuel cells for near-term DOD power needs
Delmarva Power and Light: www.delmarva.com
SFC Energy acquiring PBF to boost strategic focus on system supply
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unich-based SFC Energy AG, a leader in mobile and remote power solutions based on fuel cells, has signed a contract to acquire PBF Group BV, a Dutch company specializing in switched-mode power supplies and higher-level power management solutions. SFC says that the acquisition – expected to be completed by year-end – is an important step in the company’s strategic reorientation as a systems provider. PBF – originally spun out from Philips Electronics in 1999 – develops, manufactures, and markets customized high-tech power solutions, from power supply units to complete power systems for producers of professional machines and equipment. The company – with unaudited revenues of some E9 million in fiscal 2010 – is headquartered in the Netherlands, and operates an R&D and production site in Romania. The net purchase price is up to E9.35 million (US$12.5 million), consisting of E6.0 million in cash, 350 000 new SFC shares (at E5.70 per share), and a performance-related earn-out payment of up to E1.35 million in cash. The combined expertise of the two companies will support the strategic reorientation of SFC as a systems provider. It will also offer considerable growth potential to SFC and PBF by increasing both companies’ presence in existing markets, such as industrial applications, security, and defense, as well as extending the customer base into new markets, such as medical equipment.
10
Fuel Cells Bulletin
SFC Energy AG, Brunnthal-Nord, Germany. Tel: +49 89 673 5920, www.sfc.com PBF Group BV, Almelo, The Netherlands. Tel: +31 546 540030, www.pbfgroup.nl
I
n the US, the Defense Logistics Agency (DLA) has sponsored an assessment of how fuel cells can help meet the Department of Defense’s power needs in the next five years. The assessment, Beyond Demonstration: The Role of Fuel Cells in DoD’s Energy Strategy, was written by government consulting specialist LMI. It is intended to assist DOD in establishing priorities and taking actions that reflect the potential energy, environmental, and economic benefits of fuel cells. It also looks at the current readiness of fuel cells to support DOD missions, and DOD’s role as an early adopter of technology. The report defines 11 potential fuel cell applications for DOD, and concludes that DOD should more proactively evaluate and acquire fuel cell systems for three of these: • Distributed power generation: All or a portion of baseload power, as well as heating and cooling needs, can be provided by fuel cell systems, as an option for supplying facility energy services. • Backup power: Military facilities are highly dependent on a vulnerable commercial power grid, so backup power systems eliminate risks from grid disruption. • Unmanned vehicles: Growth is expected in DOD’s use of unmanned vehicles. As an option for powering these vehicles, and based on demonstration results, fuel cells have excellent potential to improve mission capability. The fourth application of particular interest for near-term routine acquisition of fuel cell systems is non-tactical material handling equipment. The report notes that for some private sector customers, there is a growing preference for fuel cell powered equipment. DOD should
continue to monitor the costs and benefits of introducing this technology in appropriate distribution operations. Earlier this year DLA ordered fuel cell power modules for forklifts from Nuvera Fuel Cells, for deployment at the Susquehanna Defense Distribution Supply Depot in Pennsylvania [FCB, March 2011]. And last summer it awarded a $6 million contract to the Atlanta-based Center for Transportation and the Environment, to develop a DOD hydrogen fuel cell pilot program at the Defense Depot San Joaquin (DDJC) in Tracy, California. This is the fourth in a series of DLA pilot projects to research the economic, operational, and environmental benefits of powering materials handling equipment with fuel cells [FCB, June 2010]. DLA Hydrogen Fuel Cell Pilot Program: www.dlafuelcells.org Download the report: http://ow.ly/7E9jK
FuelCellEurope creates working committees for key applications
F
uelCellEurope, the leading European industry association for fuel cell technologies, is stepping up its activities to better meet the needs of its current and potential new members, and reflect the speed of development in the industry. To this end, FuelCellEurope has launched five new working committees dedicated to the different application areas of fuel cell technologies. Each working committee will be responsible for a variety of activities as they relate to that application area: policy monitoring and lobbying, identification and lobbying for funding, creation of business opportunities, communication and public relations, workshops and events, connection with national associations, and regulations, codes and standards (RCS). LOGANEnergy will take the lead for the CHP committee, Nedstack for UPS, aerospace giant EADS for non-road transport, and Hydrogenics for electrolyzers and grid activities; only the micro CHP (μ-CHP) committee is still looking for someone to take the lead. All companies related to the fuel cell industry are invited to participate in any of the committees. To further engage in a sustainable collaboration with FuelCellEurope, organizations will eventually need to become members. FuelCellEurope: www.fuelcelleurope.org
November 2011
Neah Power offers fuel cell manufacturing license to customers
U
S-based Neah Power Systems is now offering licenses to potential customers to manufacture its patented, siliconbased PowerChip™ fuel cell technology.
November 2011
The move adds a strategic component to the company’s business model. Thus far, Neah Power’s business model has focused on outsourced manufacturing. The shift to emphasize a licensing strategy is intended to further leverage existing third-party manufacturing capacity in the semiconductor industry. ‘The ability to use existing, low-cost, thirdparty factories to manufacture our PowerChip technology is a key differentiator between our fuel cells and incumbent proton-exchange membrane (PEM) products,’ explains Dr Chris D’Couto, CEO of Neah Power. ‘Our licensing strategy is a powerful competitive tool, particularly for customers who have access to their own computer chip manufacturing capacity,’ he continues. ‘Because our products can be manufactured with existing equipment used in the semiconductor industry, licensing allows potential customers to leverage current manufacturing facilities without significant capital outlays for new equipment.’ The company believes that this manufacturing capacity, along with the longer fuel cell life, higher power density (power per unit area), and anaerobic (non-air) functionality of its PowerChip technology, provides it with competitive advantages over PEM-based fuel cells. Neah Power Systems Inc, Bothell, Washington, USA. Tel: +1 425 424 3324, www.neahpower.com
IMW in long-term deal with UTC Power to provide key modules
C
anadian-based IMW Industries has signed a long-term agreement with UTC Power, to be the exclusive provider of natural gas reforming and CSA cooling modules for its PureCell® Model 400 stationary fuel cell production. No contract value was disclosed for the agreement, which runs to the end of 2014. ‘We have worked with UTC Power to provide best-in-class natural gas processing technology for its stationary fuel cells, and are pleased to be chosen as sole supplier for its market-leading system,’ says Brad Miller, president and CEO of IMW. ‘This agreement complements our growth in the expanding market for natural gas compression equipment for fueling transportation in North America and worldwide.’ IMW Industries – a subsidiary of Californiabased Clean Energy Fuels Corporation – manufactures and services advanced natural gas fueling compressors and related equipment, with more than 1200 installations in 24 countries.
The company operates a manufacturing facility at its headquarters near Vancouver, another near Shanghai, China, and a third one near Ferndale, Washington, USA. The PureCell solution from UTC Power uses phosphoric acid fuel cell technology to generate 400 kW of electric power using natural gas as input fuel. The byproduct heat can be easily harnessed to provide space heating or domestic hot water – or, with the addition of an optional absorption chiller, to produce cooling. While centralized power plants achieve about 35% energy conversion, the PureCell system can attain energy conversion efficiencies as high as 90%. UTC Power, South Windsor, Connecticut, USA. Tel: +1 860 727 2200, www.utcpower.com IMW Industries, Chilliwack, BC, Canada. Tel: +1 604 795 9491, www.imw.ca
Bloom Energy wins Delaware deal for manufacturing, supply
C
alifornia-based Bloom Energy has received approval from the Delaware Public Service Commission for a lucrative deal with Delmarva Power and Light, an electric utility serving Delaware, Maryland and Virginia. The controversial agreement will see Bloom Energy build a manufacturing facility in Delaware and supply significant fuel cell power capacity, subsidized by a modest surcharge (estimated at an average $1.34 per month) on the utility’s electricity bills. Delaware recently passed legislation to include the use of fuel cells under the state’s renewable energy mandate. Delmarva Power will partner with Bloom Energy to facilitate 30 MW of solid oxide fuel cell installations as part of the utility’s renewable energy portfolio. Bloom Energy will receive significant job creation incentives – apparently worth some $18 million – from Delaware as well as support from the University of Delaware, which owns the planned site. The new investment could create up to 1500 high-tech jobs between Bloom Energy and its suppliers at the site of the former Chrysler factory in Newark. The facility will manufacture Bloom Energy Servers, which were launched early last year [FCB, March 2010]. The Newark facility would directly employ 900 people, with a potential additional 600 jobs through co-located suppliers. Construction is expected to begin next March, with manufacturing beginning about a year after that.
Fuel Cells Bulletin
9
NEWS The 30 MW of power capacity would be supplied over the next 21 years at a stable and competitive price, starting with 10 MW in 2012 [FCB, July 2011]. Bloom Energy Servers – each rated at 100 kW – would be used at two Delmarva substations in New Castle County to provide locally manufactured power to businesses and residences. So far, more than 120 Bloom Energy Servers have been deployed across California, including recently announced installations for telecom giants AT&T and NTT America [FCB, August 2011]. There is also a Bloom Box installed at the Electric Power Board headquarters in Chattanooga, Tennessee [FCB, August 2010].
In the future the group expects to generate 60% of combined turnover in industrial applications. This will significantly reduce SFC’s dependence on seasonal fluctuations in the leisure business, and on the generally low predictability of the defense market. There is also significant potential for increased efficiency resulting from development, production, and supply chain synergies.
Bloom Energy Corporation, Sunnyvale, California, USA. Tel: +1 408 543 1500, www.bloomenergy.com
DLA report analyzes fuel cells for near-term DOD power needs
Delmarva Power and Light: www.delmarva.com
SFC Energy acquiring PBF to boost strategic focus on system supply
M
unich-based SFC Energy AG, a leader in mobile and remote power solutions based on fuel cells, has signed a contract to acquire PBF Group BV, a Dutch company specializing in switched-mode power supplies and higher-level power management solutions. SFC says that the acquisition – expected to be completed by year-end – is an important step in the company’s strategic reorientation as a systems provider. PBF – originally spun out from Philips Electronics in 1999 – develops, manufactures, and markets customized high-tech power solutions, from power supply units to complete power systems for producers of professional machines and equipment. The company – with unaudited revenues of some E9 million in fiscal 2010 – is headquartered in the Netherlands, and operates an R&D and production site in Romania. The net purchase price is up to E9.35 million (US$12.5 million), consisting of E6.0 million in cash, 350 000 new SFC shares (at E5.70 per share), and a performance-related earn-out payment of up to E1.35 million in cash. The combined expertise of the two companies will support the strategic reorientation of SFC as a systems provider. It will also offer considerable growth potential to SFC and PBF by increasing both companies’ presence in existing markets, such as industrial applications, security, and defense, as well as extending the customer base into new markets, such as medical equipment.
10
Fuel Cells Bulletin
SFC Energy AG, Brunnthal-Nord, Germany. Tel: +49 89 673 5920, www.sfc.com PBF Group BV, Almelo, The Netherlands. Tel: +31 546 540030, www.pbfgroup.nl
I
n the US, the Defense Logistics Agency (DLA) has sponsored an assessment of how fuel cells can help meet the Department of Defense’s power needs in the next five years. The assessment, Beyond Demonstration: The Role of Fuel Cells in DoD’s Energy Strategy, was written by government consulting specialist LMI. It is intended to assist DOD in establishing priorities and taking actions that reflect the potential energy, environmental, and economic benefits of fuel cells. It also looks at the current readiness of fuel cells to support DOD missions, and DOD’s role as an early adopter of technology. The report defines 11 potential fuel cell applications for DOD, and concludes that DOD should more proactively evaluate and acquire fuel cell systems for three of these: • Distributed power generation: All or a portion of baseload power, as well as heating and cooling needs, can be provided by fuel cell systems, as an option for supplying facility energy services. • Backup power: Military facilities are highly dependent on a vulnerable commercial power grid, so backup power systems eliminate risks from grid disruption. • Unmanned vehicles: Growth is expected in DOD’s use of unmanned vehicles. As an option for powering these vehicles, and based on demonstration results, fuel cells have excellent potential to improve mission capability. The fourth application of particular interest for near-term routine acquisition of fuel cell systems is non-tactical material handling equipment. The report notes that for some private sector customers, there is a growing preference for fuel cell powered equipment. DOD should
continue to monitor the costs and benefits of introducing this technology in appropriate distribution operations. Earlier this year DLA ordered fuel cell power modules for forklifts from Nuvera Fuel Cells, for deployment at the Susquehanna Defense Distribution Supply Depot in Pennsylvania [FCB, March 2011]. And last summer it awarded a $6 million contract to the Atlanta-based Center for Transportation and the Environment, to develop a DOD hydrogen fuel cell pilot program at the Defense Depot San Joaquin (DDJC) in Tracy, California. This is the fourth in a series of DLA pilot projects to research the economic, operational, and environmental benefits of powering materials handling equipment with fuel cells [FCB, June 2010]. DLA Hydrogen Fuel Cell Pilot Program: www.dlafuelcells.org Download the report: http://ow.ly/7E9jK
FuelCellEurope creates working committees for key applications
F
uelCellEurope, the leading European industry association for fuel cell technologies, is stepping up its activities to better meet the needs of its current and potential new members, and reflect the speed of development in the industry. To this end, FuelCellEurope has launched five new working committees dedicated to the different application areas of fuel cell technologies. Each working committee will be responsible for a variety of activities as they relate to that application area: policy monitoring and lobbying, identification and lobbying for funding, creation of business opportunities, communication and public relations, workshops and events, connection with national associations, and regulations, codes and standards (RCS). LOGANEnergy will take the lead for the CHP committee, Nedstack for UPS, aerospace giant EADS for non-road transport, and Hydrogenics for electrolyzers and grid activities; only the micro CHP (μ-CHP) committee is still looking for someone to take the lead. All companies related to the fuel cell industry are invited to participate in any of the committees. To further engage in a sustainable collaboration with FuelCellEurope, organizations will eventually need to become members. FuelCellEurope: www.fuelcelleurope.org
November 2011