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Fuel Cells: Still on the Verge
UTC official says price drop must precede widespread commercialization
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Business New Haven
3/3/2003
By: Mitchell Young
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James Bolch, vice president of operations for United Technologies Corp.'s fuel-cells division, UTC Fuel Cells, explained how fuel cells function, the obstacles to widespread use and anticipated growth in the market over the next decade at a February 21 presentation at University of New Haven. The event was part of UNH's celebration of "Engineering Week 2003" from February 18-22.
Bolch explained that his company has been making fuel cells since 1966 for the space program and that each of NASA's space shuttle orbiters is equipped with three UTC fuel cells.
Bolch also explained that President George W. Bush visited UTC three times before announcing in his January State of the Union address a multi-billion dollar commitment to fuel cell technology to eventually replace the burning of fossil fuels.
Commercialization of fuel cells is becoming a reality, according to Bolch. UTC has been producing a 200-kilowatt power plant, PC25, since 1991. The device is in use at more than 250 installations in 19 countries.
The power plants create electricity by extracting hydrogen from natural gas, then using the hydrogen in an electrochemical reaction by combining the hydrogen from the fuel stock with oxygen in the air to generate electricity.
In the absence of combustion, according to Bolch, the only by-products are a small amount of water. UTC says that the current cells are 40-percent efficient in their use of the natural gas feedstock, compared to approximately 18 percent for burning gas in a conventional power plant.
Bolch acknowledged that conventional power plants are still more efficient in overall costs. Fuel-cell plants produce electricity at a cost of approximately 15 cents per kilowatt, compared to less than half that in most states. UTC sees market potential in places and countries where the additional costs of power transmission lines or the concern for clean energy outweigh those costs.
Bolch cited New York's Central Park police sub-station as an example: The city did not want to add power lines through the park but had a natural gas line that could power a fuel cell power station. In Connecticut, the Mohegan Sun casino installed two PC25 plants for back-up power.
Bolch cited surveys suggesting that the current $1 billion annual fuel-cell market may grow five-fold by 2005 and to $10 billion by 2010. UTC. To achieve those gains, however, Bolch said fuel-cell costs will have to be reduced 50-fold.
UTC is studying the efficacy of 5 kW units for back-up residential use as well as for areas without access to transmission.
Honored at an UNH awards dinner was Rob Lee (UNH '78), executive vice president of the Electro-Fluidic Systems Group in Essex, a subsidiary of the Lee Co., a family-owned engineering and manufacturing business in Westbrook. The company has more than 600 employees, including more than 70 engineers, in Connecticut.
Lee recalled his early interest in engineering: "I was one of those types to make stuff and break stuff," he said.
Business remains strong for Lee in the current economy, according the company's namesake: "We're doing pretty well," he says, though acknowledging, "Before 9/11 the aircraft part of our business was going into a slump - that got much worse."
"We send a lot of our people through UNH engineering programs," said Lee. That number may grow, as the company recently extended education benefits to spouses of employees, he noted.
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