FuelCell Energy Inc. (NasdaqNM:FCEL) announced it has redesigned the 250-kilowatt (kW) Direct FuelCell (DFC) power plant resulting in a 25 percent cost reduction. This is part of FuelCell Energy’s rolling three-year cost-out program that targets a 20-25 percent cost reduction per year.
In addition to reduced capital costs, the DFC300MA power plant — the new name for the sub-megawatt unit — is expected to result in lower routine maintenance expenses thanks to its modular three-piece design. This modular architecture, with separate skids for the mechanical balance of plant, electronic balance of plant and the DFC module, is expected to enhance serviceability due to greater accessibility for each component.
“Experience with our fleet of DFC power plants at global customer sites, including feedback specific to existing customer applications, provided us with a rich source of data for driving top-to-bottom improvements,” said R. Daniel Brdar, FuelCell Energy’s Chief Operating Officer. “We’ve evaluated every step on an ongoing basis, from initial construction, testing, conditioning, delivery, installation and serviceability that has enabled us to improve the quality and lower costs of our ultra-clean DFC products.”
Additional improvements in the DFC300MA power plant include modifying certain subsystems, so parts and materials may be sourced from multiple vendors, and automating the fuel cell conditioning process resulting in higher product quality. The design enhancements to the Company’s sub-megawatt DFC power plant will extend to the megawatt (MW) plant design as well.
After final verification, the DFC300MA power plant will begin shipping in the fourth calendar quarter of 2005. The unit is expected to be certified by CSA International, a world-leading certification and testing organization to meet requirements for California and other markets, and also expected to be certified for the emission standards set by the California Air Resources Board’s (CARB) stringent distributed generation emissions standards for 2007.
DFC power plants generate electricity without combustion. Their highly efficient electrochemical reactions are thousands of times cleaner than plants burning fossil fuels, and are significantly quieter. These characteristics make fuel cell power appropriate for generating base load electricity where customers face cost, reliability, security or environmental issues with their existing electric power sources — in settings that include municipal/industrial wastewater treatment facilities, telecommunications/data centers, hotels, universities, manufacturing plants, hospitals, prisons, federal buildings and grid support applications.
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