Since the last paper presented at the Second Grove Fuel Cell Symposium, the Energy Research Corporation (ERC) has established two commercial subsidiaries, become a publically-held firm, expanded its facilities and has moved the direct fuel cell (DFC) technology and systems significantly closer to commercial readiness. The subsidiaries, the Fuel Cell Engineering Corporation (FCE) and Fuel Cell Manufacturing Corporation (FCMC) are perfecting their respective roles in the company's strategy to commercialize its DFC technology. FCE is the prime contractor for the Santa Clara Demonstration and is establishing the needed marketing, sales, engineering, and servicing functions. FCMC in addition to producing the stacks and stack modules for the Santa Clara demonstration plant is now upgrading its production capability and product yields, and retooling for the final stack scale-up for the commercial unit. ERC has built and operated the tallest and largest capacities-to-date carbonate fuel cell stacks as well as numerous short stacks. While most of these units were tested at ERC's Danbury, Connecticut (USA) R&D Center, others have been evaluated at other domestic and overseas facilities using a variety of fuels. ERC has supplied stacks to Elkraft and MTU for tests with natural gas, and RWE in Germany where coal-derived gas were used. Additional stack test activities have been performed by MELCO and Sanyo in Japan. Information from some of these activities is protected by ERC's license arrangements with these firms. However, permission for limited data releases will be requested to provide the Grove Conference with up-to-date results. Arguably the most dramatic demonstration of carbonate fuel cells in the utility-scale, 2 MW power plant demonstration unit, located in the City of Santa Clara, California. Construction of the unit's balance-of-plant (BOP) has been completed and the installed equipment has been operationally checked. Two of the four DFC stack sub-modules, each rated at 500 kW, are on-site and will be installed to the BOP upon completion of the BOP pretests now in the final stages. Full operation and commencement of the formal demonstration is to begin late this year. Now five years old, the Fuel Cell Commercialization Group (FCCG) has grown to include over 30 buyers. The Group's Committees have been actively working with FCE personnel to hone the plant's performance, configuration and cost/benefit trade-offs to assure a market-responsive unit results from the collaboration. A standard contract has been developed for use with the FCCG buyers to streamline the purchase agreement negotiations for the early units. These are essential steps to support a market entry for the 2.8 MW power plant in 1999. The paper details the program's progress and provides additional information on the current demonstration and stack test efforts, with comparisons to earlier test data. Recent accomplishments and planned efforts to affect market entry of the first production units is reviewed as well.
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