- Using fuel cells to cleanly and affordably generate
hydrogen where it is used
- Renewable hydrogen for transportation by converting
biogas
- On-site hydrogen generation model is structured to
attract private capital
FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in the design,
manufacture, operation and service of ultra-clean, efficient and
reliable fuel cell power plants, announces affordable on-site
generation of high purity hydrogen for transportation and
industrial applications using commercial fuel cell power plants. A
megawatt-scale FuelCell Energy hydrogen delivery system can
generate more than 1,200 kilograms of hydrogen per day, suitable
for larger industrial applications or adequate to power a fleet of
more than 1,500 fuel cell cars while also producing two megawatts
of ultra-clean electricity. The hydrogen and power is generated in
a low carbon manner when operating on natural gas, or is carbon
neutral when utilizing renewable biogas as the fuel
source.
Photos accompanying this release are available at
http://www.globenewswire.com/newsroom/prs/?pkgid=33267
http://www.globenewswire.com/newsroom/prs/?pkgid=33268
http://www.globenewswire.com/newsroom/prs/?pkgid=33269
"Our commercial distributed power generation solutions are
configurable to provide multiple value streams including high
purity hydrogen along with ultra-clean electricity and usable
heat," said Chip Bottone, President and Chief Executive Officer,
FuelCell Energy, Inc. "Resiliency of supply is enhanced with
our affordable on-site delivery system, delivering power and
hydrogen independent of external events that can interrupt the
electric grid or surface transportation network."
Transportation applications
FuelCell Energy power plants support hydrogen fueling for fuel
cell vehicles, illustrated by a three year demonstration project in
California that converted renewable biogas from wastewater into
high purity 100 percent renewable hydrogen for
transportation. This fuel cell solution provides renewable
hydrogen for transportation that is generated in a zero carbon
manner, emitting water vapor and virtually absent of the pollutants
that cause smog, generate acid rain and can exacerbate
asthma.
The emerging transportation market has the potential to
significantly increase hydrogen demand as vehicle manufacturers
introduce hydrogen fuel cell vehicles and these vehicles need a
fueling infrastructure. In addition, there is a growing fleet
of fuel cell powered fork lift trucks which represent additional
market potential for distributed hydrogen. Estimates for
global shipments by 2017 for vehicle and material handling systems
will exceed 300,000 units1. The hydrogen required by these
vehicles would be enough to support a market of about $30 billion
of fuel cell hydrogen delivery systems, plus service
opportunities. The ability of the FuelCell Energy solution to
utilize on-site renewable biogas offers an attractive opportunity
to affordably and cleanly provide 100 percent renewable
transportation fuel.
Industrial applications
Industrial users of hydrogen, including metal processors, glass
makers, operators of large material handling equipment fleets and
petrochemical applications, can benefit from environmentally
friendly and affordable on-site hydrogen generation. FuelCell
Energy is demonstrating these advanced manufacturing capabilities
at its North American manufacturing facility with a stationary
Direct FuelCell® (DFC®) power plant that converts clean natural gas
into power and heat for the manufacturing process and hydrogen that
will be used as an oxidation preventative in the manufacturing
ovens, replacing purchased hydrogen. In addition, the fuel
cells power an electric vehicle charging station located
on-site.
Industrial demand for hydrogen is substantial with more than 9
million kilograms per day produced and distributed to end
users2. As an indication of the market potential, if only ten
percent of this industrial demand was met with fuel cell based
hydrogen delivery systems, it would represent an addressable market
for fuel cell plants of approximately $5 billion in the USA, plus
Services opportunities. Global markets add another 40 to 50
percent to the market size3.
"We are powering the factory-of-the-future with on-site power
and hydrogen generation as the fuel cell hydrogen system at our
manufacturing facility is expected to save us more than $200,000
annually from reduced power and heating costs, and by avoiding the
cost and delivery charges for hydrogen used in our process ovens,"
said Tony Rauseo, Chief Operating Officer, FuelCell Energy.
The hydrogen delivery system operating at the FuelCell Energy
manufacturing facility is meeting approximately 30 percent of the
electricity needs of the operation and will minimize the need for
delivered hydrogen, reducing transportation-related pollutant
emissions. The co-generation replaces heat produced by a
combustion-based boiler, avoiding heating fuel costs and
eliminating the associated pollutants.
The production cost of the hydrogen from megawatt-scale fuel
cell plants is cost-competitive versus delivered hydrogen for
industrial users and compared to the cost of gasoline for
transportation uses. Pricing will depend on the location of
the installation, value of the electricity produced and cost of
fuel for the fuel cell power plant. The Federal Investment Tax
Credit further supports the cost competitiveness of this on-site
generation solution. In addition, on-site hydrogen generation
provides a societal benefit by avoiding the emissions and traffic
congestion from the delivery of hydrogen via diesel
truck.
Compared to existing centralized generation of hydrogen, a 2
megawatt FuelCell Energy hydrogen delivery system is estimated to
eliminate approximately 1,600 tons of carbon dioxide (CO2)
emissions annually. These systems can also operate on
renewable biogas, increasing the amount of avoided CO2 to 4,000
tons per year. Low carbon power generation by the on-site fuel
cells further reduces the carbon footprint of the system compared
to the electric grid and generating heat avoids the use of
combustion-based boilers.
"The financial profile including the multiple value streams of
our on-site power and hydrogen generation systems can attract
private capital, minimizing the need for the site owner to directly
invest in the hydrogen delivery system as we source the private
capital to own the asset," continued Mr. Bottone.
The DFC stationary fuel cell power plants manufactured by
FuelCell Energy utilize carbonate fuel cell technology and provide
continuous power located where the power is used, including both
on-site applications and electric grid support. The plants
provide combined heat and power (CHP) capabilities, also known as
cogeneration, supporting sustainability initiatives and
economics. The plants are fuel flexible, capable of operating
on clean natural gas, on-site renewable biogas, or directed
biogas. Power is produced by an electrochemical reaction,
resulting in the virtual absence of pollutants such as nitrogen
oxide (NOx) that causes smog, sulfur dioxide (SOx) that contributes
to acid rain, or particulate matter that aggravates
asthma.
About FuelCell Energy
Direct FuelCell® power plants are generating ultra-clean,
efficient and reliable power at more than 50 locations
worldwide. With more than 300 megawatts of power generation
capacity installed or in backlog, FuelCell Energy is a global
leader in providing ultra-clean baseload distributed generation to
utilities, industrial operations, universities, municipal water
treatment facilities, government installations and other customers
around the world. The Company's power plants have generated
over three billion kilowatt hours of ultra-clean power using a
variety of fuels including renewable biogas from wastewater
treatment and food processing, as well as clean natural
gas. For additional information, please visit
www.fuelcellenergy.com, follow us on Twitter and view our videos on
YouTube.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc.
are all registered trademarks of FuelCell Energy, Inc. DFC-ERG
is a registered trademark jointly owned by Enbridge, Inc. and
FuelCell Energy, Inc.
1Pike Research Fuel Cells Annual Report 2012
2US Department of Energy;
http://www.hydrogen.energy.gov/pdfs/12014_current_us_hydrogen_production.pdf
3Argonne National Laboratory, Decision and Information Science;
Assessing Current, Near-term, and Long-term U.S. Hydrogen Markets.
http://www.dis.anl.gov/news/HydrogenMarkets.html
The photo is also available via AP PhotoExpress.
CONTACT: FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
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