In parallel with Japan’s PEMFC development program, the Japanese government’s New Energy Development Organization (NEDO) has quietly also been fostering residential SOFC systems. Although research funding has gone on for well over a decade, NEDO’s flagship SOFC program, the Demonstrative Research on SOFC project (DRSOFC henceforth), was announced in 2007.

Fast forward almost four years, and it’s clear that more time is required before Japan’s SOFC program replicates the commercial success of the PEMFC-based ENE-FARM program (see previous ENE-FARM post for more info). In 2009, the SOFC project demonstrated 67 units, to over 6000 commercial PEMFC sales.

Compared to PEMFC, Japan’s residential SOFC development is at an earlier stage, so a like-for-like comparison is perhaps unfair. It is interesting nonetheless to have a look at some of the differences between the Japanese government’s two residential fuel cell development strands.

First, as its name suggests, the DRSOFC focuses on technological progress, and there is no explicit aim of producing commercial units yet. There is an SOFC roadmap, but it is not linked to production.

Secondly, DRSOFC doesn’t follow the ENE-FARM model in that it lacks a close-knit consortium of collaborating members. NEDO has identified and apportioned distinct research tasks that participating companies work on in relative isolation.

An Eneos SOFC program manager told me, with somewhat startling honesty given his position, that the units currently being produced by DRSOFC will struggle to repeat the success of ENE-FARM, and for a variety of reasons.

Firstly, the project has come somewhat late to the party. “We want to join ENE-FARM, and if we can deliver the technology soon then there is no political reason why we can’t. In fact, we need to join ENE-FARM. It’s the only way we can benefit from the government subsidies available and bring down unit cost.”

But, and crucially, time is running out. ENE-FARM funding is scheduled to last until 2013. DRSOFC participants would need several years of government subsidization before volume production to could enable their units to enter the market unsupported. This doesn’t leave much time before the 2013 deadline.

Another point is that the technology being developed under DRSOFC is not ideally suited to some of the peculiarities of Japan’s housing stock, the intended market for the demonstration units. The units achieve higher conversion efficiencies than ENE-FARM’s PEMFC units (reportedly almost 60% (LHV)), including a significant amount of high grade heat. In Western houses this heat can be usefully applied to the central heating system, but in Japan, and despite notoriously poor home insulation, a majority of houses don’t have central heating and rely instead on small kerosene heaters or wall-mounted electric heater/aircon units.

“The 700W electrical output is aimed at the typical Japanese home, but our residential heat use profile is different from that of the US or Europe”, my SOFC developer friend told me. So, whilst the electrical output is small enough for individual houses, the heat output would be better suited to a different, more heat demanding type of property. This is a significant discontinuity.

Interestingly, Nippon Telegraph and Telephone Corporation (NTT), Toho Gas and Sumitomo Precision Products are now also developing a 3kW SOFC unit running on natural gas which they envisage going into convenience stores and restaurants. This, given the heat load of most Japanese homes, seems like a better fit.

DRSOFC’s 700W units are physically smaller than the ENE-FARM PEMFC units, so I wondered if they could be put actually inside apartments rather than on the ground just outside. Given the pressure on space, Japan’s housing stock has a very high ratio of apartments to detached houses. So, if SOFCs could be placed in apartments they would have clear market differentiation from PEFC units aimed at detached houses.

I was told that although the units might indeed physically fit into a single apartment, it is unlikely that they would be deployed in this way because of concerns over carbon monoxide emissions. Given the fact that there is no hesitation over putting a cheap kerosene burner in your front room in Japan (sometimes with a kettle balanced on top), I don’t quite understand this… Japan’s hordes of apartment dwellers (myself included) continues to be unserved by fuel cells.

So, I admit, I struggle to see DRSOFC’s 700W units making inroads into the residential market anytime soon. This is certainly not to say that SOFC in general will not do so; there are a number of non-Japanese companies making residential SOFC which are possibly better suited to the Japan’s housing stock than those developed domestically because of more favourable heat:electricity ratios. Also, Japan’s all-pervasive convenience stores and small eateries require high grade heat, and represent a significant opportunity for SOFC.

SOFC will enter the Japanese market eventually. SOFC manufacturers still need to find a clear and distinct market benefit over better-established PEMFC products; a niche which they can dominate. First though, a clear vision needs to emerge from NEDO – what form exactly should SOFC take, and what markets precisely will it serve? Will it compete with PEMFC or serve a subtly different purpose?

It’s still early days in Japan for SOFC, but it has an interesting, if as yet unresolved, future.

*******

Dr. Mike Hugh is a Director at Asia Fuel Cell Gateway (www.asiafuelcellgateway.com). By means of a range of networking and market intelligence services, Asia Fuel Cell Gateway aims to bridge language, cultural, and geographical business divides between English-speaking companies in North America and Europe, with those of the markets of the Asia Pacific (APAC) region. Mike has worked in the fuel cell sector for over ten years, in academia, and in industry as an analyst and technology broker. He lives in Japan.

To get in touch with Mike, please email: mikehugh@asiafuelcellgateway.com

Hi! My name is Margot Kaplan and I am from Austin, TX. I am a rising junior at American University majoring in Business Administration and minoring in Spanish. I am treasurer of the International Business Club and am hoping to go abroad to Madrid next Spring. Apart from school, I like to run, watch movies, and cook. I am excited to get involved in the clean energy movement and to learn more about fuel cells. I am sure this summer will be an interesting, educational experience!

German government is investing 1.4 billion Euros through 2016 into federal R & D through the NIP to develop hydrogen fuel cell technology in order to keep Germany competitive in the global economy, provide a clean energy supply, and create sustainable green jobs, the. The NIP is a federal agency of Germany under administration of the NOW. NOW has published its 2009 Annual Report providing an overview of the NIP and the multitude of hydrogen fuel cell projects it is investing in, including hydrogen vehicles. NOW’s Annual Report 2009 available online in both German and English here.

The German government claims Germany is the largest market for fuel cells.  To entice investors, a guide published and available online by the federal agency GTAI profiles specific market and research opportunities in fuel cells, hydrogen, batteries and smart grids. The publication, titled “Germany: Lead Market for Energy Storage & Fuel Cell Systems,” lists selected companies and projects for potential partners to collaborate on.  For a copy of the publication, the link has been posted online here.

Hi, my name is Sandy and I’m another new intern here at the US Fuel Cell Council. I recently graduated from Dartmouth where I studied engineering and economics. Outside of the classroom I spent countless hours rowing for Dartmouth’s heavyweight crew. I’m interested in a career in clean and renewable energy, so I’m excited to get involved with the fuel cell industry. I hope to learn a lot here this summer and make meaningful contributions to the advancement of clean energy.

Fuel cell advocates who read tea leaves will be heartened by President Obama’s Memorandum Regarding Fuel Efficiency Standards.  Language throughout the document suggests that the Administration is beginning to understand the value in a portfolio approach.  It’s not exactly a ringing endorsement of the fuel cell vehicle pathway but there is clearly an inclination to be inclusive.   Among the relevant passages (emphasis added):

“I request that additional coordinated steps be taken to produce a new generation of clean vehicles.”

. . .

[The EPA Administrator should] “Work with the State of California to develop by September 1, 2010, a technical assessment . . . reflecting input from an array of stakeholders on relevant factors, including viable technologies, costs, benefits, lead time to develop and deploy new and emerging technologies, incentives and other flexibilities to encourage development and deployment of new and emerging technologies, impacts on jobs and the automotive manufacturing base in the United States, and infrastructure for advanced vehicle technologies;

. . .

The Secretary of Energy [should] promote the deployment of advanced technology vehicles by providing technical assistance to cities preparing for deployment of electric vehicles, including plug-in hybrids and all electric vehicles; and

The Department of Energy [should] work with stakeholders on the development of voluntary standards to facilitate the robust deployment of advanced vehicle technologies and coordinate its efforts with the Department of Transportation, the NHTSA, and the EPA.

- Bob Rose

France’s Joseph Fourier University has made a breakthrough in powering small micro-fuel cells with elements found in the human body. What are being called “glucose biofuel cells” has been proved to convert oxygen and hydrogen from glucose in bodies of living organisms into electricity. These fuel cells use electrodes made from compressed graphite and enzymes to create oxidation which generates electricity. These biofuel cells are contained in a permeable plastic that contains the fuel cell’s enzymes while allowing in glucose and oxygen from its host.

The devices are shown to generate 6.5 microwatts, it takes 10 microwatts to power a pacemaker, but researchers are hopeful that they will be able to improve the technology. These miniature fuel cells have a number of applications in the medical world, not just pacemakers, but also likely artificial organs among many others.

According to MIT’s Technology Review, this is the first time scientists have been able to prove that electrical energy can be derived from organic body fluids. For more information, MIT’s Review is located here.

Deloitte just published a new report called “Gaining Traction: A customer view of the electric vehicle mass adoption in the U.S. automotive market” that focuses on consumer attitudes and behaviors when it comes to purchasing vehicles and possible electric vehicle acceptance.  Although the report focuses specifically on battery electric vehicles (BEVs), many of the findings could apply to fuel cell vehicles, too.    Connor took a look at the report and here are some of the highlights -

The report studied 2,000 individuals and interviewed a number of OEM and clean-tech executives and sought to answer three questions:

· Is this the time for the electric car?

· Who is likely to buy this vehicle?

· What do OEMs need to overcome to make these vehicles acceptable for the mass market?

The report found that customer’s main considerations when purchasing a vehicle are price, reliability, cost to charge, and convenience to charge.

Factors that would prevent a customer from buying an EV are price, limited range, and the size of the vehicle.

The 6 potential barriers to EV adoption are:

· Familiarity, Brand, Range, Charging, Infrastructure, and Price and cost of ownership

Familiarity

· Customers only know hybrids and have little knowledge of other alternative fuel technology

· Customers require “educating” and “correcting,” which will cost more than the $1 billion spent on hybrid education cost

Brand

· The brand must be trusted

Range

· Though EVs current range is 50-100 miles a charge will satisfy 88% of the daily driving needs of consumers, 70% surveyed said they would expect a minimum range of 300 miles. (good news for FCVs!)

· EVs must mimic the experience and performance that drivers are accustomed to.  (FCVs do!)

Charging

· 81% would prefer to charge at home, though 61% do not have access to home-charging.

· 54% say they would not purchase unless charging locations are widely available and easy to locate. 79% would consider battery swapping an alternative

o Problems: cost of 500k/station, standardization is necessary, and tragedy of the commons would mean people would treat them poorly.

(FCVs take a few minutes to refuel)

Infrastructure

· By 2015 there will be an estimated 5.3 million charge stations globally.

· A station that can service charging of 100 customers in 24 hours at 50kWh per charge would cost $1.8-$3 million. (NRC estimates it would cost $2.2 million to build a hydrogen fueling station that could support 1500 FCVs.)

· Infrastructure is a concern, but smart grid technology will likely be implemented by 2015 and will solve most problems.

Price

· 69% say price is the most important factor

· If gasoline remains at $3/gallon, EVs are cost effective against ICEs when battery drops below $600kWh, could likely occur in 2014.

Market Forecast

· The “probable” market penetration analysis for EVs indicates 60,000 vehicles in 2015 and 465,000 vehicles in 2020, which will be 3.1% of the market.

Most automakers are predicting FCV commercialization by 2015, with some companies estimating tens of thousands of vehicles by then.   Many of these assumptions (battery cost dropping, smart grid, home charging) help make the case look brighter for EVs, but to us, these are not trivial obstacles.  FCVs should be part of the alternative vehicle strategy, providing the range, comfort and brands that people are accustomed to and, according to the report, expect.

Bob Rose is in Essen, Germany at the World Hydrogen Energy Conference (WHEC) and there have been several big announcements.   Here are some of the highlights -

The Japanese government agency NEDO (New Energy and Industrial Technology Organization) and NOW, the German Organization for Hydrogen and Fuel Cell Technologies, have signed a sweeping memorandum of understanding on fuel cell and hydrogen commercialization.  the MOU covers exchange of data on fuel cells for all applications and related hydrogen infrastructure; commercialization planning, project management, policy and technology “trends.”

Klaus Bonhoff, head of NOW, said the MOU links “world leaders in hydrogen and fuel cell technologies.”  The organizations “can leverage each others’ experiences in order to achieve faster and more efficient advances in the technology [and] create synergies that will accelerate commercialization.”

Bob’s comment:  given the financial situation in both countries, new financial support might be hard to come by in the short term, but this is fresh evidence of the Japanese government’s interest in fuel cells, and NOW is funded for another 8 years.

Other Germany news - a new hydrogen station in Hurth, Germany, has just opened, providing the final link in a 909 km (~600 mi.) hydrogen highway.  A FCV can travel from Munich to Amsterdam without worrying about where to fill up!  See www.hycologne.de and www.chemergy.de for more info. Two Honda FCX Clarity vehicles were the first to fill up, having driven from Frankfurt (about 100 miles — Hurth is southwest of Cologne).  The Honda participation is significant not only because the Clarities are gorgeous, but also because the first cars were a Japanese make.  The Hurth station uses byproduct hydrogen from a nearby chemical plant.  Dr. Albrecht Mollmann, who chairs HyCologne, said the hydrogen travels 450 meters, pointedly noting that it is 6,500 kilometers of pipeline from the Ghawar oil field in Saudia Arabia to Hurth.

The 6-year Zero Regio fuel cell vehicle program, ending this month, has turned up “no fundamental acceptance problems for hydrogen as a motor fuel,: the group says. Lots of infrastructure data are available. The vehicles were 5 Daimler A-Class and 3 Fiat New Pandas.

Among the successful tests were fast refueling — three minutes for 5 kg — pipelining of hydrogen, and suitabuility of byproduct hydrogen for vehicle use.  Also of interest:  the program surveyed 700 teenage students.  75% of the students agreed that “h2 cars give me more confidence in the future.”  Hydrogen was the students’ first choice for fueling their vehicle, 30% compared to 13% for a battery vehicle.  (Gasoline was the second choice.)  When asked what they would recommend if the US or Japan reduced support for hydrogen R&D, 51% said Europe should increase support, while another 30% said Europe should maintain support.

The potential of hydrogen from coal or nuclear power was a strong negative for older drivers surveyed separately.  For the students, not so much; nuclear scored significantly worse for the students while coal drew an exceptionally strong negative reaction from the older drivers (84% said they would be less enthusiastic about hydrogen if it came from coal.).

Other snippets from around the World -

The International Partnership for a Hydrogen Economy (IPHE) has added fuel cells to its new name - the International Partnership for Hydrogen and Fuel Cells n the Economy. South Africa is the latest member to join IPHE and has committed to a 15 year fuel cell and hydrogen strategy and aims to provide 20% of the world’s fuel cell catalysts by 2020.

In France, there is a growing realization that battery EVs “will not fulfill their promise” says Bernard Frois, a senior energy official. The government is taking a fresh look at fuel cells and sees five potential markets – industrial, bulk energy storage, stationary generation specialty and auto. Also in France, the French utility Electricitie de France has placed newspaper ads promoting fuel cells. Until now, France has been seen as all about nuclear so this decision surprised even the French government. Seems there is a place for distributed power in France after all!

China quickly driving past the US and Europe. The World Expo in Shanghai will feature 196 fuel cell vehicles, including 100 “sightseeing” cars which look like neighborhood electrics. There will be six buses and 90 autos. Makers include GM, VW, ChangAn and SAIC.

My name is Erica Harkins, and today is my first day interning at USFCC.  I’ll be starting my senior year at UPenn this fall, and I am studying chemical and biomolecular engineering.  My main academic interest is in energy, especially renewable forms of energy, so I’m really excited about spending my summer working with fuel cells.  As a Virginia native, I am also excited about working in the beautiful city of DC. Apart from my scientific interests, I play saxophone in a band at school, spend my free time designing and sewing clothing, and, most importantly, love to cook.  This summer promises to be both interesting and educational, and I am truly looking forward to it.