Renewable Hydrogen From Tri-Generation Fuel Cells Included Under California Low Carbon Fuel Standard (LCFS)
January 14 2016 - 08:30AM
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, has received
contingent certification for a prospective pathway for its
renewable hydrogen generation solution using fuel cells at
wastewater treatment facilities under the Low Carbon Fuel Standard
(LCFS), administered by the California Air Resources Board (CARB).
Under the LCFS, certified pathways define the carbon intensity of
various types of alternative fuels. The new tri-generation pathway
has a remarkable negative carbon intensity, meaning that a vehicle
using hydrogen fuel from tri-generation is not only carbon free,
but in fact is offsetting carbon emissions compared to
alternatives. Production of renewable hydrogen from megawatt-class
FuelCell Energy power plants provides a transportation fuel for
fuel cell electric vehicles (FCEV) that is generated in a
carbon-neutral and non-polluting process. The inclusion of
tri-generation FuelCell Energy power plants in the LCFS Credit
Market means that each kilogram of renewable hydrogen supplied for
vehicle fueling is eligible for an LCFS credit that can be sold or
traded to offset carbon-intensive petroleum fuel usage. Final
certification is expected following a specified period of operation
and review of performance data of a megawatt-class tri-generation
system utilizing renewable biogas as the fuel source.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/659b5dc4-ce3e-4022-8741-d78a42ec0296
“Our commercial solution for generating hydrogen is
technologically, operationally and financially superior to
conventional hydrogen generation alternatives and our ability to
generate renewable hydrogen affordably and with private capital is
a game-changer that addresses the challenges faced by regulators
and auto manufacturers,” said Chip Bottone, Chief Executive
Officer, FuelCell Energy, Inc. “The key aspect of supporting the
hydrogen infrastructure necessary for widespread fuel cell electric
vehicle adoption is a clean and carbon-friendly solution that is
priced competitively to the cost of gasoline, which is what we can
deliver.”
LCFS, established in 2007 through a Governor’s Executive Order,
requires producers of petroleum-based fuels to reduce the carbon
intensity of their products, beginning with a quarter of a percent
in 2011 culminating in a 10 percent total reduction by 2020.
Petroleum importers, refiners and wholesalers can either develop
their own low carbon fuel products, or buy LCFS Credits from other
companies that develop and sell low carbon alternative fuels, such
as renewable hydrogen from tri-generation fuel cell plants.
California Senate Bill 1505 directs CARB to develop regulations
that ensure the production of hydrogen for transportation use is
undertaken in a manner that is consistent with environmental
goals.
“CARB's team performed a complete Life Cycle Analysis (LCA) on
our tri-generation system and determined that we have a negative
carbon footprint, as our power and hydrogen generation process is
net carbon-neutral due to the use of renewable biogas, and is a
cleaner use of the biogas compared to alternatives,” said Tony Leo,
Vice President Application Engineering & Advanced Technology
Development, FuelCell Energy, Inc. “This means that overall, we are
negative carbon emitters; a superior result in comparison to other
hydrogen generation technologies such as electrolysis or
traditional steam reforming.”
“While the LCFS standard is focused on carbon emissions, it is
also notable that tri-generation produces hydrogen without using
water, which is consumed in both electrolysis and conventional
steam methane reforming. Trigeneration uses waste heat and water
byproducts produced by the fuel cell during power generation to
make hydrogen efficiently and without the need for external water
consumption, which is increasingly a concern in certain regions,
including California,” continued Mr. Leo.
This LCFS prospective pathway certification is based on the
success of a three-year tri-generation project at the Orange County
Sanitation District in California. A FuelCell Energy tri-generation
fuel cell system produced renewable hydrogen for FCEV’s and power
for the wastewater treatment facility, demonstrating the technical
viability of the system using a sub-megawatt fuel cell plant.
FuelCell Energy’s hydrogen-co-production system, utilizing a
DFC3000® plant, generates approximately 1,200 kilogram per day of
hydrogen, which is adequate to service approximately 300 cars/day
or 50 buses/day. Simultaneous with the hydrogen production is the
generation of 2 megawatts of electric power and 2 million Btu’s of
thermal energy. Hydrogen production results in a modest reduction
of electrical output in the tri-generation configuration compared
to the power/heat-only configuration.
The FCEV market is expected to grow rapidly. Both Hyundai and
Toyota have FCEV’s commercially available today. Many other
automobile manufacturers have announced plans for commercially
launching FCEV’s including General Motors, BMW, Honda, Audi and
Mercedes. Providing renewable hydrogen for fuel cell buses and
material handling are also potential markets. The renewable
hydrogen market potential for FCEV’s is global, currently including
the USA, Western Europe and select Asian markets such as South
Korea and Japan.
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 EnergyDirect 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 four 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.
Contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
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