Treatment of Biogas for Feeding High Temperature Fuel Cells by Maria Turco Angelo Ausiello & Luca Micoli

Author:Maria Turco, Angelo Ausiello & Luca Micoli
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

3.5.1 Fuel Cell System Cost Reduction

Identifying real examples of cost reductions in the fuel cell field is difficult given the limited numbers of units in service and the increase in production experience to date. However, evidence from the Japanese Ene-Farm project over the past few years provides examples of what has been achieved by leading businesses in the field. Both Panasonic and Toshiba have made public announcements in the past few years about the costs of their products and progress in reducing these costs alongside product improvements.

Panasonic, with Tokyo Gas, announced in January 2013 that it had reduced the price (excluding installation) of its domestic PEM fuel cell system to ¥1,995,000 by approximately ¥760,000, a reduction of 27.5 % from its 2011 model. This itself was a reduction from its 2009 model (selling at ¥3,465,000 [104]) of 20 %. A year or so earlier in January 2012 Toshiba, with Osaka Gas, announced that it had reduced the price of its domestic fuel cell system by ¥650,000–¥2,604,000, a 25 % reduction in cost [105]. In both cases sales increases were anticipated and further cost reductions expected. The Panasonic announcement also included further information on the performance and other aspects of the unit. The cost reduction was associated with an improvement of lifetime from 50,000 to 60,000 h; a reduction in components by 20 %; reduced weight by 10 % and reduced size overall. Of significance was a reduction in noble metals in the fuel processing subsystem by 50 % and platinum catalyst by 50 %. Total efficiency, both heat and power, was calculated at 95 % LHV.

It is evident that cost reductions are possible over time, but that they are not simply a function of numbers of units produced and installed, or technology improvements, but a mix of both production increases and technology and product improvements, made by it should be added, experienced and capable businesses.

Public Support

One means to address the issue of the current overly expensive stationary fuel cell systems is to provide some form of financial support from the public sector. Public support is an important early market incentive for stationary fuel cells systems, be this in the form of capital subsidies (e.g., North Rhine-Westphalia in Germany [106]); or capital support and feed-in-tariff style pricing (e.g., South Korea [107]); or capital and other incentives available in the USA, usually at the State level, where incentives vary up to $5500/kWe. This support goes some way toward negating the higher prices of stationary fuel cell systems when compared with competitive systems.

Market

Fuel cell systems with grid gas connections have proven to be highly reliable in terms of power and heat provision [108] for end users. Similarly, stationary fuel cell systems offer end users the prospect of better control over their energy costs. As energy costs continue to rise, for example in Europe, the attractiveness to large energy users of autonomy from the grid is likely to prove increasingly attractive.

There are markets where the relatively high cost of fuel cell systems, be it

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