D istributed Generation/Fuel Cells DOE Helps Expand Both Technologies and Markets

Abstract

The early entry market penetration by ONSI and its phosphoricacid fuel cell (PAFC) technology has proven that fuel cells are reliableand suitable for premium power and other opportunity fuel niche ap-plications. Now, new fuel cell technologies—solid oxide fuel cells,molten carbonate fuel cells, and polymer electrolyte fuel cells—arebeing developed for early market entry shortly after 2003. Some of theevolving fuel cell systems are incorporating gas turbines in hybridconfigurations. The combination of the gas turbine with the fuel cellpromises to lower system costs and increase efficiency to enhancemarket penetration.Significant early entry markets exist to sustain the initially highcost of some distributed generation technologies. However, distrib-uted generation technologies must have low introductory first cost,low installation cost, and high system reliability to be viable optionsin competitive commercial and industrial markets. In the long-term,solid state fuel cell technology with stack costs under $100/kilowattpromises deeper and wider market penetration in a range of applica-tions including a mature distributed generation market