Fuel Cell Systems 

Multi-Y ear 

Program Plan 

Fiscal Years 

1995 to 2000 

U.S. Department of Energy 

Assistaut secretary for Fossil Energy 

Deputy Assistant Secretary for Advanced 

Research and Special Technologies 

Washington, D.C. 20585 

DlSTRlBUTlON OF THIS DOCUMENT IS UNLfbltED d 
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otherwise does not necessarily constitute or imply its 

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opinions of authors expressed herein do not necessarily 

state or reflect those of the United States Government or 

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DISCLAIMER 

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document. 
TABLE OF CONTENTS 

Forward 

Summary 

I Introduction 

II Goals and Strategies 

m Technology Description 

Iv Technical Status 

V Program Description and Implementation 

VI 

VII International Activities 

Coordinated Fuel Cell Program Interactions 

1 

3 

9 

11 

17 

21 

27 

35 

39 
.. - 11 - 
List of Exhibits 

1 Overall Fuel Cell Plan 

2 Development Targets for Fuel Cell 

Systems 

3 Fuel Cell Power Plant 

4 Representations of Three 

Types of Fuel Cells 

5 Fuel Cell Program Activities 

6 Major World Fuel Cell Activity 

m2 

5 

12 

17 

18 

32 

40 
- iv - 
FORWARD 

This document is intended to foster improved communications among those with an interest 

in the development and application of fie1 cells. The document provides a short overview of 

the fuel cell program being conducted by the Department of Energy, Office of Fossil Energy 

in partnership with the private sector and other government agencies. 

1 
2 
SUMMARY 

The mission of the fbel cell systems program of the Department of 

Energy, Mce of Fossil Energy, in partnership with its customers and 

stakeholders, is to foster the U.S. industry's commercialization of new, 

improved fuel cell power generation systems and thereby enhance the 

Nation's environment and economic opportunities. This program is 

aligned with the Department of Energy's core mission (business line) 

of energy resources. 

Consistent with the concept of sustainable energy resources 

development, the fuel cell program supports the Department's natural 

gas program overall mission and strategic plan. These encourage 

economic growth and job creation, make the most effective use of 

domestic resources, promote economic and energy efficiency, protect 

human health and the environment, and enhance energy security. The 

program is conducted within the guidance of the Energy Policy Act 

(EPACT), the National Environmental Policy Act (NEPA), and the 

Clean Air Act Amendments (CAAA), and Federal and DOE energy 

acquisition regulations. 

The Energy Policy Act lays the foundation for a more efficient, less 

vulnerable and environmentally sustainable energy future. Several 

advanced energy conversion technologies under development by the 

Department of Energy can help achieve these objectives. Fuel cell 

systems are among those technologies having the potential for highly 

efficient energy conversion, enhancement of environmental quality and 

stimulating creation of a major new manufacturing industry. 

The Department of Energy (DOE), Office of Fossil Energy, is 

participating with the private sector in sponsoring the development of 

molten carbonate fuel cell (MCFC) and solid oxide fuel cell (SOFC) 

technologies for application in the utility, commercial and industrial 

sectors. Phosphoric acid he1 cell (PAFC) development was 

3 
sponsored by the OfEce of Fossil Energy in previous years and is now 

being commercialized by the private sector. 

Private sector participants with the Department of Energy include the 

Electric Power Research Institute (EPRI), the Gas Research Institute 

(GRI), electric and gas utilities, universities, manufacturing companies 

and their suppliers. The Department of Energy program is also 

coordinated with fuel cell development, demonstration and application 

efforts by the Department of Defense @OD), and the National 

Aeronautics and Space Administration (NASA). 

Also within the Department of Energy, the Oftice of Energy Efficiency 

and Renewable Energy is participating in sponsoring development of 

fuel cells for transportation propulsion systems. The program for 

transportation applications is focused primarily on the development of 

polymer electrolyte or proton exchange membrane fbel cells, and also 

includes a demonstration program for phosphoric acid fbel cell buses 

and analysis of kel cells for heavy duty transportation such as trucks 

and trains. DOE fuel cell research, development and demonstration 

efforts are part of the national fbel cell development and 

commercialization efforts which also involve private sector 

participation and fbnding. This document describes the fuel cell 

activities of the DOE Office of Fossil Energy. 

Through continued government and private sector support, fbel cell 

systems are emerging power generation technologies which are 

expected to have significant worldwide impacts. An industry with 

annual sales of over a billion dollars is envisioned early in the 2 1 st 

centuq. PAFC power plants have begun to enter the marketplace and 

MCFC and SOFC power plants are expected to enter the marketplace 

in the late 1990s. 

In support of the efficient and effective use of our natural resources, 

the &el cell program seeks to increase energy efficiency and economic 

effectveness of power generation. This is to be accomplished through 

the development and commercialization of cost-effective, efficient and 

environmentally desirable fbel cell systems which will operate on fossil 

fbels in multiple end use sectors. 

The program objectives are to develop and demonstrate cost effective 

fbel cell power generation which can be successfblly commercialized 

in the 1990s. 

4 
Fuel Cell Systems Program Plan 

The overall schedule of the fbel cell program is shown in Exhibit 1. 

EXHIBIT 1 

OVERALL FUEL CELL PLAN 

Phosphoric Acid Fuel 

Cell Technology 

Molten Carbonate 

Fuel Cell Technology 

Solid Oxide Fuel Cell 

Technology & Advanced 

Concepts 

Advanced Research 

1975 1980 1985 1990 1995 2000 2005 

e 

Supputling reseamh and future amxpts 

The activities shown in Exhibit 1 include basic and applied research 

and development, proof-of-concept activities, precommercial 

demonstrations, and associated private sector commercial scale 

activity. Some of the key elements of the program include: 

Development and demonstration, by 1996, of commercial size 

MCFC and SOFC integrated system units meeting fbnctional 

requirements for utility scale, distributed power and on-site 

generation applications; 

Demonstration of cost reduction, performance and durability 

improvements which would enable private sector production 

of competitive market entry power plants before the year 

2000; 

5 
6 

Evaluation and identification, by 1999 of advanced fbel cell 

concepts and configurations which would enable efficiencies 

over 60% (on higher heating value basis; 70% on lower 

heating value basis) and installed costs below 1000 dollars per 

kilowatt for utility scale, distributed power and on-site 

generation; 

Support of advanced research which would ensure availability 

of the critical materials and processes required for commercial 

market entry units before 2000 and advanced units by 2005; 

Cooperation with private sector commercialization activities 

to fdtate rapid cost reductions and rapid market penetration 

enabling industry growth to annual sales of $1 billion early in 

the 21st century. 

Coordination with he1 cell development and testing activities 

of the Department of Defense, DOE'S Office of Energy 

Efficiency and Renewable Energy, the Electric Power 

Research Institute, the Gas Research Institute, the National 

Aeronautics and Space Administration, electric and gas 

utilities and manufacturing companies in order to leverage the 

available resources, avoid duplication, and maximize taxpayer 

return on investment. 

The program strategy is to assist the private sector in developing 

molten carbonate and solid oxide he1 cell technologies and to 

participate in those field tests which would greatly improve prospects 

for commercialization by the private sector. The strategy also 

includes supporting advanced research to provide solutions in critical 

areas and to idenw concepts which offer opportunities for significant 

reductions in cost and improvements in performance. 

This strategy has been selected in order to leverage and focus the 

available resources of the government and private sectors. The intent 

is to accomplish important advancements in these technologies 

through research and development and foster the translation of these 

advancements into actual economic and environmental benefits. 

Commercialization plans have been formulated by the private sector 

for market entry of these power plants fbeled by natural gas in the late 

1990s. Introduction of larger power plants with integrated coal 

gasifiers is anticipated prior to 2010. 
Fuel Cell Systems Program Plan 

Congressional appropriations for this program in fiscal year 1995 are 

$49.6 million. This is similar to the appropriation levels in fiscal years 

1993 and 1994 of $50.4 million and $51.1 million respectively. 

Private sector resources being devoted to fie1 cell development in the 

United States have also been estimated to be approximately $50 

million per year. 

7 
8 
I 

INTRODUCTION 

Fuel cell power systems are emerging power generation technologies 

for the efficient, economical and environmentally acceptable 

production of electricity. In some applications the by-product heat 

can also be efficiently used in cogeneration. Fuel cells produce 

electricity through the electrochemical oxidation of a fuel. They can 

be operated on a variety of fbels, including natural gas, coal gas, land 

fill gas and renewable fbels. First market entry units are fbeled by 

natural gas. Fuel cells offer the opportunity for a major new 

manufacturing industry. 

System studies have shown that kel cell power plants can be designed 

with overall system efficiencies in the 50 to 60 percent range (higher 

heating value basis) (55 to 65 percent on lower heating value basis). 

Fuel cell power plants are unique in that they offer high efficiency and 

low emissions even at part-load and in small sizes. Because of their 

efficiency, fbel cells will help in reducing CO, emissions. 

Additional benefits are the environmentally desirable operating 

characteristics offered by fbel cells. Because electricity is produced 

through an electrochemical reaction rather than by combustion, fbel 

cells generate very little NO, and are extremely quiet. This 

combination of operating characteristics and high efficiency make fuel 

cells attractive for kture electric utility applications. On-site industrial 

and commercial applications where the by-product heat can be utilized 

are also attractive. Fuel cells can be sited in environmentally sensitive 

and populated areas and early commercial units have been installed in 

hotels, office buildings and similar locations. The overall program 

goal is to develop and commercialize cost-effective fuel cell systems 

which utili these advantages. 

9 
Development of fuel cell technologies has been underway in the 

United States with funding support provided by both public and 

private sectors. The DOE Office of Fossil Energy, the Gas Research 

Institute (GRI), and the Electric Power Research Institute (EPRI) are 

cooperatively sponsoring the development of fuel cell systems for 

applications in the utility, commercial and industrial sectors. Funding 

of development and demonstration is also provided by &el cell 

developers and potential users. 

This document describes the fuel cell program of the DOE Office of 

Fossil Energy and its coordination with other fuel cell activities. 

10 
I1 

GOALS AND STRATEGIES 

In support of achieving the power generation vision for natural gas, 

the strategic goal of the he1 cell program is to expand the clean, 

efficient and economic use of natural gas in the utility-scale, 

distributed, and on-site power market sectors through: (1) the 

successhl development, demonstration and commercialization of 

advanced he1 cell power generation systems; and (2) the reduction of 

market hurdles and removal of regulatory barriers to the deployment 

of new, advanced gas-based he1 cell power generation technologies. 

The strategic approach to overcome the issues / barriers associated 

with increased he1 cell use in the power generation area is guided by 

the natural gas commercialization strategy in the Market Entry section 

of the natural gas crosscut program plan. 

To achieve this strategic goal, DOE has identified supporting goals for 

(1) developing technology, (2) fostering market pull for technology, 

(3) removing policy impediments, and (4) ensuring the maximization 

of the environmental benefits of advanced gas-based &el cell power 

generation, while recognizing the changing market forces in the 

electric generation area. 

TECHNOLOGY 

Goal 

The program technology goal is to complete the development and 

demonstration which responds to domestic industry needs leading to 

the commercialization of high efficiency, environmentally benign 

molten carbonate and solid oxide he1 cell power plants for stationary 

11 
12 

applications in utility-scale, distributed, and on-site power markets 

(domestic and export). Efficiency targets are 55 to 60 percent on the 

basis of higher heating value (HHV) (60 to 65 percent on basis of 

lower hating value, LHV) for molten carbonate fuel cell (MCFC) and 

solid oxide fuel cell (SOFC) systems, with both technologies cost 

competitive with other power technologies. (New-Tern) 

Development targets for system efficiency and capital cost for MCFC 

and SOFC (based on volume production and the 20 10 time fiame) are 

shown in Exhibit 2. 

EXHIBIT 2 

DEVELOPMENT TARGETS M)R FUEL CELL SYSTEMS 

TYPES OF FUEL CELL - SYSTEMS BEING DEVELOPED1 

Capital Cost 

Natural Gas-Fueled 

Plant: 

Electric Utility I 

0 On-Site 

Coal-Fueled Plant: 

0 Electric Utility 

Efficiencies (HHV) 

Natural Gas-Fueled 

Plant: 

Electric Utility 

0 On-Site . 

Coal-Fueled Plant: 

Electric Utility 

$800/KW , $600/KW 

$1000/Kw I I $800/KW 

$1 ooo/KW ti $1 200/KW 

60% 

55% 

60% 

55% 

50% 50% 
Fuel Cell Systems Program Plan 

Strategy 

Foster the development, scaleup and system integration of 

molten carbonate and solid oxide he1 cell power plants 

through the demonstration plant stage (with increasing levels 

of private sector cost sharing). (Near-Term) 

MARKET/COMMERCIALIZA"ION 

The market and commercialization goal is the private sector 

realization of significant market penetration with molten 

carbonate and solid oxide he1 cell power plants for on-site 

cogeneration and distributed power generation as well as new 

and repowering central power plant applications in domestic 

and export utility and nonutility generator markets. widTerm) 

Strategies 

Foster the realization of expanded fuel cell market penetration 

in partnership with industry. 

While each developer has its own specific commercialization 

strategy, common elements exist such as the need to offer a 

product meeting the needs of specific customers, competitive 

costs, and a need to lower the perceived risks associated with 

this new type of power plant. The government role 

complements the private sector commercialization strategies 

by assisting in demonstrating the capabilities and level of 

development of these emerging technologies. mid-Term) 

Coordinate with the Department of Defense on fostering 

application of near-term power plants ready for commercial 

offering. (Near-Term) 

Cultivate opportunities for commercialization activities which 

target mket entry of advanced he1 cells before 2000. widTerm) 

13 
POLICY/REGULA TORY 

0 The policy and regulatory goal is to foster market 

opportunities by overcoming market and regulatory hurdles 

for commercialition of advanced gas-based fuel cell power 

generation technologies both domestically and globally. (NearTerm) 

Strategies 

0 Increase DOE interaction with States and other stakeholders, 

including participation in meetings with the National 

Association of Regulated Utility Commissioners, on matters 

such as increased competition, industry restructuring, rate 

making, environmental regulations, and integrated resource 

planning. Participate as an interested party in the state rule 

making process to encourage the enactment of state 

regulations which allow for introduction of new technologies 

into the power generation market. Institute regional strategies 

for changes to rate making and dispatching on basis of 

integrated resource planning including environmental and 

externality considerations. (Near- Term) 

Participate in forums to improve networking of users, 

suppliers, and manufacturers and provide opportunities 

conducive to constructive interaction with key local, state and 

federal regulators. (1vear-Temt) 

- 

Analyze domestic and export markets to improve 

understanding of customer needs and concerns. Utilize 

optimization analyses to provide input useful to government 

or private sector decision-making processes with regards to 

investments, regulations, and market response to changes in 

the power industry. wear-Term) 

EN WONMENTAL 

Goal 

The program environmental goal is to realize consistent and 

rational standards set by states and EPA to allow gas-based 

14 
Fuel Cell Systems Program Plan 

he1 cell power generation systems to compete in the power 

generation market. 

Strategies 

SpotIight fuel cell technology as a means for power generation 

systems to meet environmental standards. 

0 Examine environmental externalities as an incentive for 

increasing use of he1 cell power plants. 

0 Encourage states and the EPA to adopt scientifically based 

emissions standards that allow economically and realistically 

achievable emissions for specific applications, areas and 

regions. 

The program beiig implemented and progress toward achieving these 

goals are described in the following sections of this report. 

15 
16 
I11 ~ 

TECHNOLOGY DESCRIPTION 

A basic fuel cell consists of two electrodes, the anode and cathode, 

separated by an electrolyte. Fuel cell types are typically characterized 

by their electrolyte. For example, phosphoric acid fuel cells utilize a 

phosphoric acid electrolyte in a matrix between anode and cathode 

electrodes. A fuel cell power plant as shown schematically in Exhibit 

3 has three main components: the power conversion section which 

contains the series of fuel cells (often referred to as the fuel cell 

stacks), the fuel processor, and the power conditioner. The fuel 

processor converts a hydrocarbon fuel (e.g., natural gas or coal) to a 

hydrogen-rich gas that is fed to the fuel cell stacks. The fuel cell 

stacks combine oxygen fiom the air with the hydrogen fiom the fuel 

processor to generate direct current electricity and heat. The heat 

may either be used directly as a co-product or applied in a bottoming 

cycle to produce additional electricity. The power conditioning 

section changes the direct current fiom the fuel cells to alternating 

current. 

EXHIBIT 3 

FUEL CELL POWER PLANT 

D.C. 

Power + 

HW w 

+ Power Condiioner 

Convenbn (Inverter 

Controls 

Fuel 

Processor 

(Gasifier or 

Rdomr 

Fud 

section and Power 

@ 

(Fudcelis 

and 

bttoming 

Eauimt) 

Ah 

Cycle , + 

I --I-- 

Hertnd 

sbnt I 

AX. 

Ekcb#ty 

Hwt 

17 
Fuel cell technologies under development in the U.S. include 

phosphoric acid, molten carbonate, solid oxide, polymer, and alkaline. 

A schematic representation of the three fuel cell technologies 

addressed by DOE'S Office of Fossil Energy is shown in Exhibit 4. 

The figure shows the hydrogen and oxygen reacting with the electric 

charge canying ion of the electrolyte. These reactions produce an 

electric current which powers the external load. Water and heat are 

also produced by these reactions and must be controlled by the overall 

system. In the case of molten carbonate systems carbon dioxide is 

also used at the air electrode and formed at the fuel electrode, 

requiring a COz supply or recycle in these systems. In the solid oxide 

and molten carbonate he1 cells, carbon monoxide in the he1 stream 

is also typically utilized as fuel. 

EXHIBIT 4 

REPRESENTATIONS OF THREE TYPES OF FUEL CELLS 

d oxidant 

duct 

ut 

, 

Anode Electrolyte 

(ion conductor) 

Cathode 

* In the solid oxide and molten carbonate fuel cells, carbon monoxide in the fuel 

stream is also typically utilized as fuel 

18 
Fuel Cell Systems Program Plan 

Phosphoric acid fuel cells use an electrolyte of phosphoric acid in 

a matrix and operate at approximately 200 "C (400' F). 

Development since the late 1960s has brought the technology to 

market introduction in the electric utility and commercial on-site 

sectors with natural gas as the fuel. Commercial deliveries of 

200 kW on-site units began in 1992 and an electric utility 11 MW 

power plant has been demonstrated in the private sector. 

Molten carbonate fuel cells use an electrolyte composed of alkali 

metal carbonates and operate at approximately 650 "C (1200 OF). 

The high operating temperature is needed to achieve sufficient 

conductivity of the electrolyte. An effect associated with this higher 

temperature is that noble metal catalysts are not required for the cell 

electrochemical oxidation and reduction processes. Molten 

carbonate fuel cells are being developed for natural gas and coal 

based power plants for the industrial and electric utility sectors. 

Solid oxide fuel cells are being developed which use a ceramic 

electrolyte of yttria stabilized zirconia and operate at about loo0 "C 

(1800 OF). The attractiveness of this cell relates to its solid state 

nature, its potential to reform gaseous fuel within the cells, 

demonstrated long cell life and its high operating temperature which 

can provide high quality heat for additional power production or 

other uses. The solid electrolyte eliminates problems of electrolyte 

containment and allows designs which utilize the electrolyte as part 

of the structural members of cells. 

Polymer fuel cells use a class of fluorinated sulfonic acid polymer 

electrolytes. The electrolyte is a solid membrane which is currently 

operated between 40 OC and 90 "C (100 OF and 200 OF). Polymer 

fuel cells are being considered for applications where high specific 

power together with high efficiency are important. Examples are 

19 
space power and transportation system applications. Polymer fuel 

cells currently being developed are also sometimes referred to as 

proton exchange membrane (PEW fuel cells. Polymer fuel cells 

development is not being funded by the DOE Office of Fossil 

Energy but is being funded by the DOE Office of Energy Efficiency 

and Renewable Energy for transportation applications. 

Alkaline fuel cells have been used since the mid 1960s in the U.S. 

space program. Future space system applications are expected. 

Alkaline fuel cells are not economically attractive for commercial 

terrestrial applications at present because they require the use of 

reactants free of carbon dioxide. The carbon dioxide contained in 

reformed fuels and air forms insoluble carbonates in the alkaline 

electrolyte. These carbonates hinder operation of the cell. 

Removal of the carbon dioxide from the fuel and air has not been 

economical. Alkaline fuel cell development is not being funded by 

the Department of Energy. 

20 
TECHNICAL STATUS 

PHOSPHORICACID FUEL CELL STATUS 

PAFC systems were developed for megawatt-scale applications in the 

electric utility sector and kilowatt-scale applications in the commercial 

and industrial sectors. International Fuel Cells (IFC) is marketing a 

200 kW system for on-site cogeneration use in the commercial sector. 

Approximately 75 of the 200 kW on-site power plants have been 

produced. The 200 kW power plant is currently a first-of-a-kind 

cogeneration system. The cost of these units is expected to decrease 

fi.om the initial market entry levels with increased production and with 

continued technology improvement by industry. 

The Department of Defense implemented a program fbnded in FY 

1993 and 1994 for he1 cell demonstration and use. Under this 

program the Army, Navy and Air Force are purchasing and installing 

commercially manufactured, 200 kilowatt &el cell units. The DOE is 

cooperating in these activities to provide information and to obtain 

maximum benefits fiom these demonstrations. A subsequent program 

funded in FY 1995 in the Department of Defense provides partial 

rebates (up to lo00 $/kW or 1/3 of purchase cost) to buyers of market 

entq fuel cell units. The Department of Energy is also cooperating in 

the implementation of this later DOD program. 

MOLTEN CARBONATE FUEL CELL STATUS 

The MCFC status has advmd to the stage of integrating commercial 

size stacks with the balance of plant and preparing for field testing of 

units. Developers have pilot plant manufacturing facilities with 

21 
capacities of 2- to 10-megawatts (MW) per year. Subscale stack 

testing also continues with emphasis on testing that directly supports 

the pilot manufacturing and commercial-scale demonstration efforts. 

Private sector (Le., utilities and manufacturing industries) and regional 

(state and local) interest and funding support remain strong and 

industry is proceeding to implement commercialization plans. 

Domestic MCFC developers are Energy Research Corporation (ERC), 

M-C Power Corporation and International Fuel Cells (IFC). 

ERC has constructed a pilot manufacturing facility in Torrington, 

Connecticut which is manufacturing full size 125 kW test stacks with 

cell areas of .56 square meters each (6 square feet). Manufacturing 

capacity of this plant is 2 to 10 MW/year. Three full size stacks were 

tested in 1993 and 1994. Full size stacks are being assembled for a 2 

MW field test described below. 

An ERC subsidiary, Fuel Cell Engineering Corp. (FCE), signed an 

agreement with DOE in 1992 for a 2-megawatt field test 

demonstration. The 2 MW unit will include 16 of the 125 kW stacks. 

The cost-shared power plant is being installed at a municipal utility 

site in Santa Clara, California. Completion of installation and 

checkout is expected in FY 1995 with operation beginning in FY 

1996. ERC plans a second 2-megawatt field test in 1998, and the 

stacks required will be reduced from 16 to 8. Cell size will be 

increased to 0.8 square meters (8.6 square feet). 

Another developer, M-C Power, is developing an internally 

manifolded MCFC design and has assembled their first full scale stack 

containing approximately 250 cells with an electrical output rating of 

approximately 250 kW plus cogeneration heat. This stack has been 

installed at a test site in Brea, California, and testing is scheduled 

during FY 1995. 

M-C Power produces full size stack components in their pilot 

manufkturing faciity in Burr Ridge, Illinois. Manufacturing capacity 

is estimated at 3 to 4 MW/year. 

M-C Power signed an agreement with DOE in 1992 for a 250- 

kilowatt field test demonstration of a cogeneration unit. The costshared power plant is being installed at a site at the Miramar Naval Air 

Center in San Diego, California. Completion of installation and start 

of operation is scheduled for FY 1996. 

22 
Fuel Cell Systems Program Plan 

In addition to the two continuing efforts described above, another 

developer, International Fuel Cells Corporation has concluded DOE 

fbnded research contracts to improve MCFC stack performance. 

Further development is planned under private sector sponsorship. 

This private sector effort is being assisted through a Cooperative 

Research and Development Agreement between DOE and IFC which 

makes certain development equipment available to IFC and keeps 

DOE informed on program progress. 

Although sigdcant progress has been made in the development of 

MCFC, fbrther cell and stack technology advances aimed at product 

improvement will be required to achieve the targets for cost, 

performance and durability necessary for prototype MCFC power 

plants. Cooperative agreements for product design and development 

were awarded to ERC and M-C Power in FY 1995 to reach these 

targets. 

Conceptual designs have been prepared by the developers for typically 

250 to 2000 kW plants. Design studies predict 50-60 percent 

efficiency (HI-IV basis) with small scale units on natural gas and for 

plants integrated with coal gasifiers. Manufacturing cost estimates 

indicate that stack selling prices of less than $300/kW may be feasible 

at modest production rates (200 MW per year). These results 

increase confidence that overall development targets (shown in Exhibit 

2) are achievable. 

In cooperation with an initiative by the American Public Power 

Association, ERC has developed a commercialization plan that aims 

to have, by 1998, orders for over 100 MW of early production units. 

A group of electric and gas utilities, known as the Fuel Cell 

Commercialization Group, (presently approximately 3 5 members) has 

endorsed this plan and is helping to secure the orders for 50 (or more) 

2 MW power plants. 

M-C Power has also developed plans for commercial market entry 

around 1998. M-C Power has formed a commercialization team 

including Bechtel Corporation and Stewart and Stevenson which plans 

to package and market M-C Power fuel cells. A number of gas and 

electric utilities and other companies have formed a group known as 

the Alliance to Commercialize Carbonate Technology (with 

23 
approximately 20 members) to facilitate commercialization of the M-C 

Power technology. 

SOLID OXIDE FUEL CELL STATUS 

Several SOFC geometric configurations are now under development 

or are being evaluated in the United States. These have been 

characterized as tubular and various monolithic or planar approaches. 

The tubular configuration is much Mer along the development cycle 

than the other SOFC approaches. The planar and monolithic 

approaches may offer advantages in power density, efficiency and 

fabrication costs, but are at a very early development stage and 

projections have not yet been proven. 

Westinghouse Electric Corporation has been the major developer of 

the tubular configuration. The Westinghouse design packages tubular 

cells in bundles containing eighteen cells. Groups of bundles are then 

mounted in a thermally integrated system which make up a module. 

Westinghouse has built and tested systems ranging in size from 500 W 

to 25 kW (40 kW peak). Six 20 to 25 kW generators have been built 

and are being tested by gas and electric utilities. Westinghouse has a 

pre-pilot manufacturing facility in operation which is capable of 

producing approximately 2 MW of cells per year with capacity 

scheduled to be increased to 4 MW per year in FY 1995 . 

Testing at Westinghouse has progressed to the point where groups of 

cells have been operated for over 54,000 hours (over six years). Selfsupported cells are now used in generators, which improve 

performance and reduce cost by eliminating the porous support tube. 

Cell lengths of up to 200 centimeters have been produced and tested. 

Conceptual design of a 300 MW integrated gasifierhe1 cell power 

plant has been completed. Several 100 kW tests are planned. The 

first 100 kW generator is scheduled for completion of fabrication in 

FY 1996 and start of testing at a utility site in FY 1997. 

Monolithic and planar cells have not yet been operated above the 

small module, laboratory test scale. Expanded development efforts 

focused on material selection and stack fabrication would be required 

to realize the potential of these alternative SOFC concepts. Under 

prior DOE sponsorship, Allied Signal teamed with Argonne National 

Laboratory and fabricated stacks of several monolithic cells by 

techniques which roll thin dorm layers of the materials used to form 

24 
Fuel Cell Systems Program Plan 

the ceramic structure. Planar cell stacks of up to several kW output 

have been reported fkom private sector programs. 

25 
26 
V 

PROGRAM DESCRIPTION AND 

IMPLEMENTATION 

The Fuel Cell Program Office is in the Office of Special Technologies 

within the Office of Fossil Energy. Program contracts with industry 

are implemented through the Department's Morgantown Energy 

Technology Center. 

The program of the Department of Energy and the private sector 

seeks to develop and deploy he1 cell power plant technology for use 

in electric utility-scale, distributed, and on-site power generation 

applications with 55 to 60 percent efficiencies and producing 

ecofKlmic and environmental benefits. The following issues are being 

addressed. 

Issues 

0 Although advanced fbel cell systems achieve high efficiencies 

of 55 to 60 percent in development testing with gaseous fbels, 

they must be scaled up to commercial size complete power 

plants and operated in user environments. Commercialization 

of these power plants will require building market place 

confidence through verifjling performance, durability, 

reliability, applicability, and cost-effectiveness of the market 

entry products. 

27 
Commercialization of &el cell power plants will require raising 

capital in the private sector for expansion of manufacturing 

facilities. Raising this investment capital in a timely manner 

may be a challenge. 

Integration of pilot demonstration plants of up to 11 MW on 

natural gas has been accomplished with a PAFC power plant. 

However, no large scale integrated system tests (above 125 

kW) have been performed with more advanced molten 

carbonate or solid oxide &el cell technologies. 

For many on-site and distributed power applications, the costs 

of these new power plants may not be competitive during the 

market entry phase which involves low production volumes. 

Means are sought which aid in achieving lower costs of the 

early units as well as means to stimulate market pull to 

accelerate the market penetration rate and realize the cost 

reductions associated with higher production volumes. 

Notwithstanding the environmental and efficiency benefits of 

fuel cells and their potential for becoming economically 

competitive, the historical position for many state public utility 

commissions (PUCs) has been to pursue only the least cost of 

electricity to the consumer, thereby making the introduction 

of these new technologies into the utility market difficult. 

Further, utilities have generally been discouraged from taking 

risks with these newer, advanced technologies by PUC rulings 

which 1) do not allow passing on costs of power systems 

demonstrations into the rate base; and 2) do not provide any 

return for investments in successhl demonstrations by ruling 

that any savings garnered must be passed to the consumer. 

Bugram Outuuts 

In support of the Energy Policy Act, the DOE program, with the 

private sector participation, (1) supports technology base development 

of fuel cell systems to provide highly efficient, environmentally 

superior technology for the generation of electrical and thermal energy 

for utility, distributed, and on-site applications; and (2) seeks to 

strengthen the national economy by providing technologies that 

28 
Fuel Cell Systems Program Plan 

improve U.S. international competitiveness in this new manufacturing 

industry, and by generating export sales for technology and products. 

Specific projected outputs are: 

Near-term (to year 2000) - demonstration and commercial 

introduction of high efficiency, gas-fueled, multi-kilowatt, onsite power plants and low MW electric utility power plants at 

competitive costs; 

Mid-term (to year 2010) - significant penetration of all 

markets for high efficiency gas-based systems, and commercial 

introduction of fuel flexible, multi-MW power plants at 

competitive costs; and 

Long-term (to year 2030) - commercial availability of 

advanced, ultra-high efficiency, integrated fuel cell systems. 

The DOE program is providing support toward the development, 

integration, scaleup, and commercial scale demonstration of molten 

carbonate and solid oxide &el cell power plants with increasing levels 

of private sector cost sharing. In addition, the program facilitates 

technology transfer to the private sector by stimulating interactions 

between manufacturers and potential users. Activities also continue 

involving basic and applied research on materials, processes, and 

components applicable to fuel cell systems in order to achieve steady 

progress in improving these technologies. 

DOE also conducts analyses of domestic and global markets to 

identi@ hurdles to commercializing fuel cells and generate strategies 

to overcome those hurdles. Specific focus areas of the domestic 

analyses include prediction of market responses to the introduction of 

fuel cells, inclusion of environmental attributes and other externalities 

in integrated resource planning, and the effect of electric utility 

restructuring on fuel cell commercialization. Analyses of global 

markets lead to better understanding of markets and market timing 

for specific &el cell systems. Results are presented in workshops and 

fonuns with the participation of industry as well as regional, state, and 

federal government representatives, These interactions foster more 

informed deliberations regarding environmental and other regulatory 

29 
decisions as well as private sector decisions regarding 

commercialization activities. 

FY 1994 Accomdishments 

0 Fabricated first 250 kW molten carbonate fuel cell stack for 

operation in a stack field test in FY 1995 

0 Completed verification tests of 125 kW molten carbonate 

stacks for installation and operation in a 2 MW molten 

carbonate power plant field test in FY 1995 and 1996 

0 Demonstrated continuing operation of 20 and 25 kW solid 

oxide fuel cell generators and demonstrated solid oxide 

laboratory cell life over 53,000 hours (133% of life goal) 

0 Initiated market analyses and participated in forums, public 

hearings, workshops and other meetings to accelerate 

commercialization of fuel cells and encourage policy and 

regulatory decisions with sound scientific basis and desirable 

economic results 

Planned Activities 

0 Demonstration of a 2 MW molten carbonate &el cell power 

plant fbeled by natural gas on a municipal utility grid 

(installation in FY 1995, begin operation in FY 1996) 

0 Demonstration of a 250 kW molten carbonate co-generation 

integrated power plant (complete installation and begin 

operation in FY 1996) 

0 Demonstration of a 100 kW solid oxide fuel cell power plant 

fueled by natural gas (install in FY 1996 and begin operation 

inFY 1997) 

0 Initial commercial production of natural gas-fueled molten 

carbonate fuel cell power plants (FY 1998) 

30 
Fuel Cell Systems Program PIan 

0 

0 

Phase I study on commercialization opportunities and hurdles 

for advanced fbel cells (end of FY 1996) 

Regional forums on development and commercialization 

opportunities involving fbel cell power plants (several during 

FY 1995 and FY 1996) 

Major planned program activities are shown in Exhibit 5. These 

activities are, of coucse, subject to the availability of resources and the 

degree of technical progress realized. 

31 
EXHIBIT 5 

FIlEL CELL PROGRAM ACTIVITIES 

I I I I I I I PHOSPHORIC ACID 1 

Product Improvement 8 Market 

Cost Reduction Entries 

- 

I . I CommercialUnit I I 

MOLTEN CARBONATE 

+ Comrnkial~se I I I I I 

I I I I I I Privatesector ' 

ImprovementTests I , I I I I .CompleteStack ' 

I I I I I I 

I I I I I I I I I I I 1 I I 

LMotEntrtr 

(-1 Thndogy 

Development Techndogy Development 8 Scale Up Product Improvement & Cost Reduction 

Full Area vrt A I I I I stacks Tested 

I Tested Test Demos Tested Demos 1 

I I I I 

SOLID OXIDE/ADVANCED CONCEPTS I I I I I 

cost Reductton 

e Initial Power Pit Field &med 

I 

I I I I 

(125 250 kw) (yunipal8 coset\) I I I I 

Product Improvement & Thndogy Technology Development & Scale Up DeJvelopment 

I A AI I AI I I L 

in 100 kW Class Commercial I9 eneratorTest I Demos 

2 825kW Begin 25 kW 

SCE Test I 

I I I I I I I 

I I GenecaorsTested 9 I 

I I I 

I I I I I ImplementDODFunded 11 I 

I I I I I MatketEntryRebatesGrmts I I I 

dovANcEb RESEA~~CH I I I I I I I 

I--L--l-- 

I __-__-_-- d 

Future Concepts and Crttlcal Areas; Including Electrodes, Seals, Matedais, and Performance improvements 

I I I I I I I I I I 

1989 ! 1990 ! 1991 ! 1992 ! 1993 ! 1994 I 1995 ! 1996 1997 ! 1998 I 1999 

Commercial Use 

8GxlDemOs 

Commercial Use 

~&coalDemOs 

CALENDAR YEAR 
Fuel Cell Systems Program plag 

hmm Funding 

Program finding is shown in the following table. 

DOE Historical Spending ($ in millions) 

Most of the fbnded activities involve cost-shared contracts with 

private industry interested in commercializing these power plants. 

Cost sharing sources include the he1 cell developers, gas utility 

Companies, the Gas Research Institute, electric utility companies, and 

the Electric Power Research Institute. Some supporting research is 

also performed by the DOE National Laboratories. 

Cost-Sharing 

Cost-sharing in major activities ranged from approximately 30 percent 

to over 50 percent in FY 1994. 

The DOE Fossil Energy program is coordinated with GRI, EPRI and 

the Department of Defense fUel cell programs through a joint &el cell 

steering committee, a memorandum of understanding and periodic 

meetings and frequent informal communication. The GRI and EPRI 

programs emphasize application to gas and electric utility industries 

and provide synergistic support of the DOE program. Considerable 

synergism also exists with the Department of Defense fbel cell 

program which focuses on operation on liquid fbels compatible with 

the Defense mission. 

33 
34 
VI 

COORDINATED FUEL CELL PROGRAM 

INTERACTIONS 

The natural gas ibel cell power generation program interacts with 

other programs within the Department of Energy's Office of Fossil 

Energy, Office of Energy Efficiency, Office of Energy Research, and 

Office of Policy. Coordination and significant cost sharing on 

development efforts is conducted on projects involving the 

Department of Defense, the Gas Research Institute, the Electric 

Power Research Institute, and gas and electric utilities as well as the 

companies developing the &el cell technologies and other private, 

state and local interests. The following paragraphs provide brief 

summaries of some of these activities. 

0 The Office of Fossil Energy manages programs to develop, 

scaleup, and demonstrate fbel cell technologies applicable to 

stationary, on-site, and distributed power plants and 

cogeneration in industrial, commercial, and residential 

applications. The primary focus of the work is to develop 

advanced high efficiency, low pollution fuel cell power 

generation technologies for increased effective use of natural 

gas and to overcome technical, market, and regulatory 

obstacles to private sector adoption and deployment. 

Different ibel cell types are being considered for a range of 

power generation applications. Phosphoric Acid Fuel Cells 

(PAFCs) are being commercialized by industry primarily for 

on-site (including cogeneration) power applications. 

35 
Advanced natural gas-based he1 cells (molten carbonate and 

solid oxide) are being developed for on-site, industrial and 

distributed power applications by the year 2000. For the 

longer term, development of larger systems to serve central 

power plant applications is planned for completion by 2010. 

0 Fuel Cells in Transportation (Office of Energy Efficiency and 

Renewable Energy): These programs are focused on systems 

with considerably different performance and cost targets but 

provide information applicable to some aspects of fbel cells 

operating on natural gas for stationary uses. This effort has 

been focused on development of proton exchange membrane 

fbel cell technology for automotive use and adapting 

phosphoric acid fuel cell technology to bus applications. The 

use of fuel cells in other transportation applications is also 

being evaluated. 

Gas Stream Cleanup Program (Office of Fossil EnergyKoal): 

This program is primarily targeted at cleaning hot gas streams 

in coal-fired gasification and combustion systems. Some 

results of the program may have application to natural gas 

systems as well as to operation with gasified coal. 

The Department of Defense initiated a program in FY 1993 

(continued in FY 1994) for the purchase and use of market 

entry &el cell power plants at sites located on defense bases. 

This effort was followed in FY 1995 with an initiative to 

provide grants for up to one third of the purchase costs of 

market entry units with use in defense applications to have 

preference. The Department of Defense is also funding 

modification of fuel cell power plant technology for defense 

applications emphasizing durability and operation on logistic 

diesel and jet fuels. This development activity is being 

conducted by the Advanced Research Project Agency of the 

Department of Defense. The Department of Energy maintains 

close coordination with these activities and is providing 

support in implementing the rebate grant initiative as well as 

sharing some fuel cell test hardware involved in the 

technology modification activities. Total funding of $23 

million was appropriated in FY 1995 for these Defense 

Department programs. 

36 
Fuel Cell Systems Program Plan 

0 The Gas Research Institute fbel cell program is directed 

toward on-site cogeneration and electric utility distributed 

power generation equipment fbeled with natural gas. With the 

introduction of a 200 kW phosphoric acid fuel cell power 

plant in 1992, GRI’s program emphasis has shifted from the 

development of phosphoric acid fbel cells to supporting the 

development of more advanced molten carbonate and solid 

oxide fbel cell technologies while maintaining some 

monitoring activity in the performance of phosphoric acid fbel 

cell units. GRI’s interest in fbel cell technology spans the 

marketplace from small commercial (30 kW to 100 kw) to 

industrial (500 kW to 40 MW) to electric utility applications 

(1 MW to 20 Mw). The GRI budget for &el cells in FY 1994 

was approximately $3.5 million and FY 1995 fimding of $3.2 

million is planned. The objectives of the GRI program over 

the next 5 years are to: develop complete molten carbonate 

fuel cell systems for market entry at small scales (-250 kW) 

with cogeneration leadiig into larger scale (500 kW to 2 Mw) 

applications; identie and assess alternate materials and 

processing techniques for solid oxide fuel cell components 

with emphasis on reducing solid oxide fuel cell operating 

temperatures; and continue assistance in phosphoric acid fuel 

cell system deployment efforts. 

The Electric Power Research Institute fbel cell program is 

focused to develop and commercialize electric power plants 

with the highest possible efficiency and least environmental 

intrusion. With regards to natural gas fired fie1 cells, small 

modular distributed generators in the 1 MW to 10 MW size 

range are being developed with the expectation that as capital 

costs are reduced, these fuel cell systems can be adapted to 

central power generation applications. Towards these goals, 

the near-term EPRI projects are aimed at assisting utilities 

which are considering the deployment of fuel cells by 

documenting fbel cell demonstrations in collaboration with 

utility companies, and where necessary, by developing Iowercost components and resolving systems integration problems 

in collaboration with DOE or GRI sponsored R&D. The 

EPRI budget for fkel cells in FY 1994 was approximately $6 

million involving co-fknding by EPRI and member utilities. 

The major objectives of the next five year period are to: 

37 
complete technical and economic evaluation of the 1 MW and 

11 MW phosphoric acid fiel cell power plants being 

demonstrated overseas; initiate utility demonstrations of 250 

kW and 2 MW molten carbonate fiel cell power plants in 

distributed power generation applications, stimulate fiel cell 

commercialization programs with member utilities; define 

approaches and risks to the development of yet more efficient 

fiiel cell power plants; and develop molten carbonate and solid 

oxide he1 cell technology applicable for central station utility 

power plants in the late 1990s. 

38 
VII 

INTERNATIONAL ACTIVITIES 

The high efficiency, environmental benefits and other attributes of 

fuel cells continue to attract world-wide attention. As of the end of 

1994, total installed electtic genemting capacity was estimated at 50 

MW. Exhibit 6 summarizes major world fuel cell activity, 

primarily relating to stationary power plant applications. 

The majority of fuel cell applications and tests to date outside the U.S. 

have been in Japan and a number of European countries. Some of 

these activities are summarized below. 

In Japan, the government, the gas and electric utilities industry, 

universities, and other institutions have established cooperative, 

synergistic programs. The New Energy and Industrial Development 

Organization (NEDO) is the focal point for the government to 

coordinate the development of PAFC, MCFC, SOFC, and polymer 

electrolyte membrane fuel cell (PEM) technology, supplying the 

results to the manufacturerhser sectors. Companies sponsor the 

development of specific power plants, some with cooperative 

governmenthndustry cost shared programs to demonstrate the 

technology. These activities have led to the installation and operation 

of approximately 40 MW of fuel cell power plants. In addition to 

sponsoring numerous PAFC demonstrations (totaling 30 MW), the 

government instituted a cost sharing program where approximately 

one-third of the purchase cost of on-site cogeneration PAFC power 

plants was provided for units installed during 1992 through 1994. 

39 
Exhibit 6 

Major World Fuel Cell Activity 

Fuel CeUstcltwr Approximate Operating 

Capacity (KW) 

Phosphoric Molten Solid Proton [in 19941 

Acid Carbonate Oxide Exchange 

Austria Qs 200 

Finland (B 200 

Japan . . . . . . . . . . . (B@@'@ (B@ 0 os Q -40,000 

Netherlands QcB 0 

Spain o3 200 

Switzerland @I 200 

(i, -Research 

0 -Development 

Q) -Demonstration 

(D - Near commercial OT commercial sales 

I 

Notes: 

1 - U.S. power plant@). 

2 - 100 kW alkaline he1 cell submarine system. 

3 - Japanese power plant@). 

5 - Westinghow (U.S.) SOFC modules. 

4 - U.S. and Japm~e power plants. 

40 
Fuel Cell Systems Program Plan 

In Europe significant he1 cell development programs have been 

identified in Germany, Italy, the Netherlands, Belgium, Denmark, 

Norway, and Switzerland. As part of its Joule II and Thermie 

programs, the European Commission has supported fuel cell R&D at 

European research institutions and cosponsored cost shared 

demonstrations with various organizations in member countries. The 

fuel cell &ort in Europe is focused on applying available PAFC stacks 

to systems which incorporate European balance of plant, on 

developing MCFC for stationary use, on developing SOFC (the fuel 

cell technology in which the Europeans feel they hold a competitive 

advantage), and on developing PEM for vehicular use. 

Among the programs of individual European countries, Germany is 

developing &el cells as an important part of an effort aimed at 

developing a hydrogen economy. Major, large companies in Germany 

also have development programs on MCFC, SOFC, and PEM. Italy 

has a large program demonstrating on-site PAFC plants using 

available stacks with European balance of plants (up to 1 MW 

operated). The Netherlands is developing their own MCFC stacks and 

has started an SOFC program. Belgium has developed a significant 

alkaline he1 cell technology and is seeking to apply it for 

transportation purposes. The United Kingdom has renewed their fuel 

cell developments concentrating on SOFC and PEM technology. 

Other countries have reported various degrees of fuel cell activities. 

Noteworthy are the Canadian and Australian activities. Ballard Power 

Systems, Inc. of Canada has become one of the leaders in PEM 

development. Companies in other countries are using Ballard fuel cell 

stacks in various PEM demonstration programs. Additional countries 

that are involved with either smaller development programs or have 

demonstrations are: Austria, Brazil, China, Finland, India, Korea, 

Norway, Spain, Sweden, Russia, and Taiwan. 

The Department of Energy continues to monitor the progress being 

demonstrated in the development and early commercialization of fuel 

cells throughout the world. 

41