Economic analysis of fuel cell system options in cogeneration applications

Abstract

Cogeneration systems can save primary energy sources by producing useful electrical and thermal energy more efficiently than conventional systems. The cost effectiveness of a cogeneration system is dependent on many factors that vary dramatically with different applications or cities. Energy use patterns and the pricing structure of conventional energy sources are two of the primary factors. Selecting a cogeneration system with the best characteristics, as well as sizing and operating it properly in the application is difficult due to these variations. Defining the best combination of price, performance and operational flexibility for advanced power equipment can be even more difficult. M–C Power Corporation is developing molten carbonate fuel cells (MCFC) for the power generation marketplace. Our goal is to develop a single high–efficiency, low–emissions product for introduction before the turn of the century. It is therefore important to define the best combination of characteristics (such as efficiency and capacity). This paper will examine some of the economic factors that influence the engineering decisions and the product's design. The discussion will also provide insight into how application parameters (such as thermal load, hourly use, and electric rate structure) affect cogeneration opportunities.