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FuelCell Energy has called for support for the plan by US Senator, Christopher Dodd, to spur broader use of fuel cell power plants and create U.S. jobs and manufacturing. Senator Dodd‟s proposal would encourage federal agencies and private business to increase their use of fuel cells as a source of electricity. At FuelCell Energy's manufacturing plant in Torrington, Connecticut, Senator Dodd publicly announced a program to foster an immediate demand for fuel cell power plants. Building on aspirations set out in the 2005 Energy Policy Act, the proposal seeks to expand the number of U.S. government facilities powered by this form of clean energy. The program also seeks to broaden the use of fuel cells in the private sector by boosting the investment tax credit (ITC). Currently, when a business purchases a fuel cell for a highly efficient Combined Heat and Power (CHP) application, it is eligible for an ITC of up to 30% of the plant's cost (up to $3,000 per kilowatt). The new plan increases the ITC up to 40% of cost (up to $3,500 per kilowatt) for CHP applications.
The widespread utilization of FuelCell Energy‟s power plants would contribute to fulfilling many Government initiatives. It would increase power reliability, improve energy security by distributing smaller power plants, and ensure greater energy independence by utilizing domestic fuel sources. The resulting demand for fuel cell power plants would be expected to drive U.S. manufacturing and create new jobs.
US GOVERNMENT IS WORLD’S LARGEST ENERGY USER
Many federal facilities are well-suited to the compact, quiet profile that on-site fuel cell power plants represent. Under the Dodd proposal, government agencies would be required to identify qualified locations. "The U.S. government is far and away the No. 1 user of energy in the world; no one else even comes close," said R. Daniel Brdar, Chairman and CEO of FuelCell Energy. "A program like this is a chance for the government to lead by example, and put these home-grown technologies to use for creating jobs, building a market for clean-tech products and sustaining American manufacturing. The positive effects would ripple through our economy for years to come."
KOREA INCLUDES FUEL CELLS IN RENEWABLE PORTFOLIO STANDARD
The Republic of Korea has announced the passage of a Renewable Portfolio Standard (RPS) which will mandate the introduction of 350 megawatts (MW) of additional renewable energy per year from 2012 through 2016, increasing to 700 MW per year through 2022. Carrying forward the policy introduced under Korea's feed-in tariff program, the Government has elected to designate fuel cells operating on natural gas and biogas as "New and Renewable Energy," fully qualifying under the new program.
"South Korea recognizes the inherent advantages of fuel cell power generation - clean, low carbon, dependable and reliable - and this announcement consolidates our place in the mandated mix of ultra-clean and renewable energy," said Ben Toby, Vice President of Global Business Development for FuelCell Energy. "With our successful track record in Korea, and our strong relationship with our partner, POSCO Power, we are confident that this new policy will help drive our international market growth. There is no other fuel cell company on the planet with the products that meet Korea's need for baseload, clean power for grid-support as well as ours." Highly efficient, clean and reliable fuel cells operating on widely available natural gas, as well as renewable biogas from wastewater treatment facilities, agricultural waste streams, and food and beverage facilities, will help South Korea achieve these RPS targets. There are already 24 MW of FuelCell Energy power plants operating in South Korea, providing baseload power to the grid, which complements and supplements power produced from intermittent sources like wind and solar. FuelCell Energy's fuel cells are twice as electrically efficient as other distributed generation of their size, which means less fuel is used. Because fuel cells produce power electro-chemically, without combustion, they produce near-zero emissions and have proven to be highly reliable since going commercial in 2003. FuelCell Energy currently has 97 megawatts of products installed or in backlog worldwide.
Considering the mandated requirement for the addition of substantial new renewable capacity before 2012, utility companies throughout South Korea are expected to move project development plans into high gear. To meet the expected demand, further the cost reduction progress, and consolidate market leadership, POSCO Power and FuelCell Energy have announced a strategy to localize certain manufacturing, under which fuel cell stack modules will be manufactured by POSCO Power in Korea from core components produced by FuelCell Energy in Connecticut. POSCO has already commenced operation of its new balance of plant facility in Pohang and is expected to begin the expanded scope of manufacturing later this year.
 RESULTS OF OPERATING HYBRID POWER PLANT IN TORONTO
FuelCell Energy has released data for the first year of operation of its 2.2MW ultra-clean hybrid power plant in Toronto. The system known as the Direct Fuel Cell – Energy Recovery Generation™ (DFC-ERG) significantly reduces air pollutants compared with other power generation alternatives, while achieving record peak electrical efficiency over 70%, average electrical efficiency of 62.5%, availability over 93% and reduced greenhouse gas emissions of up to 45%. Since January 2009, Enbridge Inc. monitored the DFC-ERG plant under several configurations - matching operating modes for different markets - to measure its emissions and electrical efficiency. The results underscored the plant‟s successful operation over a range of scenarios.
THE TECHNOLOGY
Natural gas is transported via pipelines under high pressure most of the time, but as the gas enters urban centers, its pressure is reduced at “letdown” stations so that it may be safely distributed to homes and businesses. A hybrid system incorporating a turboexpander and a Direct Fuel Cell in a letdown station enables the released energy to be converted to high grade electricity and heat. The heat from the fuel cell obviates the need for a boiler to maintain the temperature of the gas - a step which itself burns some gas, wastes energy and pollutes the air. This joint development effort of FuelCell Energy and Enbridge produces 2.2 megawatts (MW) of electricity, enough to power approximately 1,700 homes.
MONITORED RESULTS
While the DFC-ERG unit demonstrated an availability averaging 93% for the entire year, it exceeded 96% availability during the final six months of 2009. Similarly, although its average electrical efficiency of 62.5% compares favorably to typical conventional fossil fuel generation of about 35 to 40% efficiency, the plant‟s peak electrical efficiency topped 70% in some of the scenarios under which it was evaluated. In all of the tests, the benchmark for air quality was the clean air standard from California, which is the toughest in the nation. The system‟s high electrical efficiency allowed it to reduce greenhouse gas emissions by up to 45% compared to a conventional natural gas power plant.
US AND INTERNATIONAL INTEREST
“All the time we were operating this plant and getting remarkable electrical efficiencies, we were seeing availability numbers in the 90s,” said Chuck Szmurlo, Vice President, Alternative and Emerging Technologies, Enbridge. “That tells me this is a commercially robust technology. We will submit our results to be independently verified and, when the review is complete, we‟ll disclose our data to the industry.”
FuelCell Energy and Enbridge are making commitments for other systems totalling 18 MW in Connecticut and gas utilities in other U.S. states are also evaluating the technology. International interest in the Toronto project was stimulated by the evaluation by the Asia Pacific Partnership, a clean energy cooperative involving Australia, Canada, China, India, Japan, South Korea and the United States. “Enbridge‟s validation of the DFC-ERG system is a significant milestone, especially since the market potential is worldwide,” said R. Daniel Brdar, CEO and Chairman of FuelCell Energy. “It gives gas utilities a way of improving pipeline efficiency, reducing emissions and delivering clean energy to the world‟s power grid as a by-product of their daily operations.”
THE FIRST MARKETS
As well as achieving very high efficiency for the gas utilities, FuelCell Energy‟s products can be powered by indigenous energy supplies. Food and drink producers utilize biogases given off during processing to power their fuel cells. Hospitals and prisons, which require secure supplies of electricity and heat, are reducing energy costs as well as harmful atmospheric emissions. Manufacturers rely upon fuel cells to provide both electricity and heat for 24 hours a day. Wastewater treatment plants can obtain a large part of their electricity and heat from the methane which may otherwise be emitted as a potent greenhouse gas. Educational premises enjoy reduced energy costs, while at the same time having on site a first class facility to train the engineers needed to service the growing fuel cell industry. |
