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Market Transformation Fact Sheet

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Market Transformation Fact Sheet FUEL CELL TECHNOLOGIES OFFICE Market Transformation Market Transformation is based on the concept that federal support can catalyze a market to achieve economic and environmental benefits that can reduce costs through economies of scale. Adoption of fuel cells in emerging markets expands the growth of green jobs, with new opportunities in manufacturing, fuel cell maintenance Class III fuel cell powered lift truck at Sysco Houston distribution center in Houston, Texas. and support systems, and domestic Sysco Houston. hydrogen fuel production and delivery. By providing reliable field operations fuel cell users in industry. The collabora- supported fuel cell MHE operated by data and increasing user confidence, tions have resulted in the deployment of Sysco Foods, FedEx Freight, GENCO (at early market deployments help thousands of fuel cells that are now dem- Wegmans, Coca- Cola, Kimberly Clark, and Whole Foods), and H-E-B Grocers. overcome non-technical challenges onstrating the use of these clean energy technologies to reduce greenhouse gases, Combined, these projects have completed like developing appropriate safety reduce our Nation’s use of petroleum, and over 1.2 million hours of operation2 and codes and standards and reducing increase our energy security. almost 200,000 refuelings.3 Successful high insurance costs. DOE-supported MHE projects have Material Handling led to more than 3,500 additional fuel Strategies cell lift truck installations or orders by Equipment Market Transformation’s primary goal is industry without any DOE funding.4 to accelerate the expansion of hydrogen Many leading American businesses are choosing fuel cells to power their and fuel cell use by lowering the life Emergency Backup Power cycle costs of hydrogen and fuel cell material handling equipment (MHE) Fuel cells are a viable option for emer- technologies and identifying and reducing because of the productivity gains, lower gency backup power, particularly for the barriers impeding full technology cost, and performance advantages of fuel mission critical operations and telecom- commercialization. The strategy is to: cell-powered lift trucks. When compared to typical battery-powered units, fuel cell munications. Traditional backup power • Use government as a test bed for early lift trucks provide 80% lower refueling technologies used during power grid adoption of hydrogen and fuel cells labor costs and require 75% less facility outages employ batteries or genera- space for refueling, based on preliminary tors that operate on diesel, propane, or • Demonstrate the value proposition data collection and analysis by the gasoline. Although these systems are of hydrogen and fuel cells through National Renewable Energy Laboratory.1 well-established, concerns about noise, collection and analysis of performance Fuel cell-powered lift trucks offer longer pollution, maintenance, and reliability and cost data runtimes, constant power between are motivating many customers to seek refueling, rapid refueling time, and the alternatives that provide high reliability • Develop models, tools, and templates opportunity for increased productivity. and durability at reasonable cost. for users to provide best practices in In high-throughput, multiple shift MHE real-world implementation Currently there are over 2,000 telecom- operations, fuel cells can lower the total munication systems using fuel cells for cost of ownership and provide a positive Market transformation is built on forming backup power in the United States.5 Fuel return on investment. partnerships with stakeholders through- cells can offer significant cost advantages out the country. These partners include Fuel cell-powered MHE is already over battery-generator systems or battery- technology project developers, vehicle being used at dozens of warehouses, only systems when shorter run-time manufacturers, federal, state and local distribution centers, and manufacturing capability of three days or less is suf- government organizations, academia, and plants across the country. DOE funding ficient. In a study for the DOE, Battelle CLEAN CITIES CLEAN FUEL CELL TECHNOLOGIES OFFICE Increasingly, companies are installing fuel cells to generate onsite primary or backup power to buildings, data centers, and cell phone towers, because of their high reliability and no harmful emissions. To date, close to 700 fuel cells have been deployed to provide backup power. These successful projects have more than 800 hours of operation and have led to over 1,300 additional industry instal- A fuel cell CHP system provides lations and on-order units without any Fuel cell backup power at Fort Sumter primary power, heating, and cooling DOE funding.5 for Verizon’s Central Office. National Monument in South Carolina. DOD-DOE MOU light tower has been successfully used Memorial Institute analyzed lifecycle As part of an interagency partnership to at many high-profile events, including costs of backup power for wireless tow- strengthen American energy security and the Academy Awards, the Golden Globe ers, comparing fuel cell power with 2 kW develop new clean energy technologies, Awards, the Screen Actors Guild Awards, battery-only backup power of 8 hours and the DOE and U.S. Department of Defense and the Grammy Awards. Stakeholders 5 kW battery-generator backup of 52, 72, are testing how fuel cells perform in real supporting the project include Multiquip and 176 hours.6 On a lifecycle basis, fuel world operations, identifying improve- Inc., Altergy Systems, Boeing, the cells can provide service at lower total ments manufacturers could make to Caltrans Division of Research and cost than batteries or battery-generator enhance the value proposition, and Innovation, Stray Light Optical systems for all 4 runtime lengths when highlighting the benefits of fuel cells for Technologies, and Luxim Inc. the current Federal tax incentive is various applications. included. Mobile Lighting and Renewable Hydrogen Other fuel cell advantages include the Energy Storage Project ability to remotely monitor the equip- Mobile Generators DOE and the Naval Research Laboratory ment, reduced space and weight require- Mobile light towers are commonly used are collaborating with the University of ments, longer lifetimes, and consistent for road maintenance, general construc- Hawaii’s Hawaii Natural Energy Institute power in extreme temperature conditions. tion, and other industrial applications. on a project to demonstrate hydrogen Backup power fuel cells are modular Traditional diesel-based systems release energy systems as a grid management and scalable from 1 to 10 kW and easily harmful air contaminants and greenhouse tool to mitigate the impacts of renew- adaptable to different power needs unlike gases that pollute the air and contribute able energy generation variability on an generators that have fixed power ranges. to global warming. These incumbent electrical grid. The program will analyze Fuel cells are quieter than generators and technologies are also comparatively and demonstrate the use of water elec- have no polluting air emissions. inefficient, noisy (creating potentially trolysis as a control tool to provide grid hazardous working conditions), and con- services such as off-peak load leveling tribute to U.S. dependence on imported thereby relieving curtailment of renew- oil. In comparison, the fuel cell mobile able energy. The hydrogen produced will light tower doesn’t produce harmful be used to fuel hydrogen-powered buses emissions at the point of use, operates operated by the County of Hawaii Mass at nearly twice the efficiency of diesel Transportation Agency and the National systems with minimal noise, and reduces Park Service. This integrated system has the nation’s dependence on diesel fuel. the potential to optimize use of renewable DOE has facilitated a collaboration of energy resources while reducing barriers private companies spearheaded by Sandia to the introduction of hydrogen infra- National Laboratory to commercialize structure in Hawaii. a clean technology alternative to incumbent diesel-powered equipment. Landfill Gas Purification The group’s objective was to demonstrate Project fuel cell-powered mobile light towers in real world operating environments, Supported by the Fuel Cell Technologies PlugPower fuel cells provide reliable including road construction, airports, and Office, South Carolina’s Advanced backup power to cell phone towers. entertainment industry deployments. The Technology Institute project is validating FUEL CELL TECHNOLOGIES OFFICE provided by the natural gas-fueled 6. Identification and Characterization of systems is used to power the building, Near-term Direct Hydrogen Proton and the excess heat generated by the Exchange Membrane Fuel Cell Markets, Battelle Memorial Institute (April 2007) fuel cell is released into heating and ventilation systems to provide space 7. National Renewable Energy Laboratory, heating. Alternatively, the heat can be “Fuel Cell Operation Hours by Quarter: ARRAMHE11” (9/21/2012) http://www. used for hot water or other needs for the nrel.gov/hydrogen/proj_fc_mar- facility. Excess electricity produced by ket_demo.html the CHP system can be sold back to the 8. National Renewable Energy Laboratory, local utility company. “Refuelings by Quarter: ARRAMHE03” (10/4/2012) http://www.nrel.gov/hydro- The Fuel Cell Technologies Office’s gen/proj_fc_market_demo.html Market Transformation activities are 9. DOE Hydrogen and Fuel Cells Program aimed at accelerating early market Record # 11017. http://hydrogen.energy.
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