European opportunities for fuel cell commercialisation

Abstract The European electricity market is changing. This paper will look at the background to power generation in Europe and highlight the recent factors which have entered the market to promote change. The 1990s seem to offer great possibilities for fuel cell commercialisation. Awareness of environmental problems has never been greater and there is growing belief that fuel cell technology can contribute to solving some of these problems. Issues which have caused the power industry in Europe to re-think its methods of generation include: concern over increasing carbon dioxide emissions and their contribution to the greenhouse effect; increasing SOx and NOx emissions and the damage cause by acid rain; the possibility of adverse effects on health caused by high voltage transmission lines; environmental restrictions to the expansion of hydroelectric schemes; public disenchantment with nuclear power following the Chernobyl accident; avoidance of dependence on imported oil following the Gulf crisis and a desire for fuel flexibility. All these factors are hastening the search for clean, efficient, modular power generators which can be easily sited close to the electricity consumer and operated using a variety of fuels. It is not only the power industry which is changing. A tightening of the legislation concerning emissions from cars is encouraging European auto companies to develop electric vehicles, some of which may be powered by fuel cells. Political changes, such as the opening up of Eastern Europe will also expand the market for low-emission, efficient power plants as attempts are made to develop and clean up that region. Many Europeans organisations are re-awakening their interest, or strengthening their activities, in the area of fuel cells because of the increasing opportunities offered by the European market. While some companies have chosen to buy, test and demonstrate Japanese or American fuel cell stacks with the aim of gaining operational experience and developing European sub-systems, others have chosen to develop their own novel cell technology. This paper will survey the extent of the fuel cell activities in Europe and emphasise the particular markets which fuel cell manufacturers are targeting. Demand for fuel cells in defence and military applications will be the first sector to be commercially viable — European companies such as Siemens, Elenco and VSEL are already marketing AFC or PEM systems for naval and aerospace applications. The small-scale CHP sector is also a likely early market for fuel cell plant. Co-generation fuel cells are of great interest to gas companies like ENAGAS and British Gas looking to promote sales of gas by installing on-site gas-fired generators on their customers' premises. The market for utility scale fuel cell plants is expected to develop later in the decade. The largest demonstration planned for Europe is the 1 MW PAFC for Milan, due to come onstream in 1992. MBB GmbH is considering developing MW-scale MCFC plants with the US company ERC — a 2 MW demonstration is planned for the end of 1993. The potential market for utility fuel cells is large — installation rates could reach 500–1000 MW/year by the turn of the century. Fuel cells will probably not achieve significant use in transport applications in Europe until after the turn of the century unless very stringent emissions legislation for vehicles is introduced. The likely early markets for fuel cells in the transport sector seem to be for delivery and fleet vehicles. Examples of European projects in this area include the Amsterdam city bus project which will use Elenco's AFC technology and Siemens' fork lift truck which will incorporate a PEM fuel cell. Fuel cells also link conveniently with renewable energy systems — coupled with an electrolyser a fuel cell can store solar, wind or wave power. The electrolysis proces is used to generate hydrogen from water at times of surplus energy while the fuel cell consumes hydrogen fuel when demand for power exceeds supply. The SWB solar hydrogen project in Germany is testing PAFC and AFC stacks in this application. Several problems remain before fuel cell technology can fulfil its maximum potential market. For PAFC there is a need to reduce plant capital costs and to verify lifetimes and reliability. KTI's 25 kW demonstration at Delft and the Milan 1 MW plant will increase European knowledge and experience of PAFC plant operation. For MCFC there are materials problems to be solved and work needs to be carried out on the best way to scale up plants. Projects underway in the Netherlands, Germany, Italy and elsewhere should bring Europe to the forefront of MCFC technology. SOFC requires further study in the area of design configurations and fabrication techniques. Research on these aspects is underway in Denmark, Switzerland, Germany, the Netherlands and the UK. For PEM technology work on reducing precious metal loadings and selecting the best polymer membrane is required — an area in which Johnson Matthey is involved. For all fuel cell technologies there needs to be a greater awareness among power suppliers, consumers, legislators and environmentalists of the advantages that fuel cells can offer. The increase in activity among European organisations in developing, demonstrating, testing and optimising fuel cell systems will encourage a greater awareness of the technology and bring commercialisation closer to reality.