States Pouring Money into Fuel Cell Research

Funding is increasing across the country for research into fuel cell technology. The goal is to move the technology from the research laboratory to full commercialization.

Fuel cells are an emerging technology that has the potential to change the way power is generated for all types of electronic devices — from cell phones to automobiles and airplanes.

By: Ken Krizner, Managing Editor

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The technology is attractive because it is highly efficient and highly reliable, and because hydrogen, the fuel source, is the most abundant element on Earth.

“This gives a wide variety of options for finding the fuel,” said Bernadette Geyer, director of outreach programs for the U.S. Fuel Cell Council, a Washington, D.C.,-based industry trade association.

The technology is also environmentally friendly. Of the potential replacements for fossil fuels, hydrogen is considered the cleanest. Hydrogen cars, for example, use a fuel cell that produces electricity and emits water vapor, not air pollution.

The fuel cell industry is divided into three sectors: transportation (automobiles and other vehicles); portable power (cell phones, laptop computers and battery replacement technology); and stationary power (general office buildings, hospitals and homes).

Around the country, efforts are being made to help bring the industry along.

Fuel cell-related jobs in the United States increased by 19 percent from 2001 to 2002, according to a survey conducted by PricewaterhouseCoopers for the U.S. Fuel Cell Council. Reported sales of fuel cell products, parts and services increased from $151 million in 2001 to $167 million in 2002, and fuel cell-related research and development expenditures rose from $248 million in 2001 to $288 million in 2002.

States Setting Aside Funding

The state of Ohio has earmarked $103 million, in addition to the $30 million it has already spent, to develop fuel cell technology. Research is being conducted in at least eight universities across the state, including at Case Western Reserve University in Cleveland. Research is also going on at NASA’s Glenn Research Center in Cleveland, the Battelle Memorial Institute in Columbus and Wright Patterson Air Force Base in Dayton.

The state is offering grants, low-interest loans and tax exemptions to fuel cell manufacturers and suppliers.
Alliance, Ohio-based SOFCo-EFS Holdings is developing fuel cell technology, and recently received $2 million in funding to help develop a fuel cell prototyping center.

In Florida, Gov. Jeb Bush is asking the state legislature to spend $15 million in the next year on research into hydrogen technology, a $9 million increase from last year. Bush wants to create public-private partnerships to help absorb some of the cost of research.

Ford and British Petroleum both have facilities in Florida, and both are conducting research into hydrogen technology.
Rochester, N.Y., is attempting to use the presence of several companies in the fuel cell development field in its region to develop an industry cluster. General Motors, Delphi Automotive, Hydrogenics and Harris RF Communications all operate research facilities in the Rochester metro.

The Rochester Institute of Technology and the University of Rochester have significant fuel cell research and development expenditures and provide a large supply of research talent for fuel-cell work. The metro also possesses a skilled, technical work force, with a critical mass of engineering-related professionals.

Research funding in Michigan comes under the auspices of NextEnergy, a non-profit corporation founded in 2002. The organization, which operates a 40,000 square foot facility at Wayne State University, fosters innovation, strengthens collaboration and focuses on job creation.

NextEnergy received $2 million in federal funding last year to develop hydrogen fuel cell technology.

Detroit-based DTE Energy Technologies installed fuel cell systems at three Michigan universities as part of a grant program provided by the state.

One fully integrated, 5 kilowatt combined heat and power fuel cell system was installed at the Wayne State University School of Engineering in Detroit, the Henry Ford Community College Science and Technology Building in Dearborn and the M-TEC facility at Macomb Community College in Warren. The systems will be used to augment the traditional grid, while providing heat and backup power to the institutions.

The Michigan Energy Efficiency Grant offers assistance to organizations to develop and improve the quality and application of energy-efficient technologies, and to create or expand the market for such technologies.

There are still numerous hurdles that the fuel cell industry needs to overcome in order to become widespread and commercially viable, Geyer said.

The hurdles mainly surround the issues of cost and infrastructure. Currently, fuel cells cost between $2,500 and $3,000 per kilowatt, and there are no codes or standards in place to regulate their usage.

“Bringing down the cost will enable the technology to be widely accepted by the consumer,” she said.

Ken Krizner is managing editor of Expansion Management. He can be reached at [email protected].