FuelCell Energy, Inc. (NasdaqNM:FCEL), a manufacturer of stationary fuel cell power plants, has finalized terms with the U.S. Department of Energy (DOE) for a $36.2 million Phase I award to develop a coal-based, multi-megawatt solid oxide fuel cell-based hybrid system.
The award provides funding for the first stage of the 10-year, three-phased Fuel Cell Coal-Based Systems project, part of the DOE Office of Fossil Energy’s Solid State Energy Conversion Alliance (SECA). Total project funding for this and the other two planned phases is anticipated to be approximately $180 million. The program’s objective is to develop solid oxide fuel cell (SOFC) technology, fueled by coal synthesis gas (coal gas) that will be used in highly-efficient central generation power plant facilities. The advanced fuel cell-hybrid system will have an overall efficiency of at least 50% in converting energy contained in coal to grid electrical power. In contrast, today’s average U.S. coal-based power plant has an electrical efficiency of approximately 35 percent.
In addition, the envisioned SOFC-hybrid system is expected to capture 90% or more of the system’s carbon dioxide emissions while being cost-competitive with other base load power generating technologies.
The project will culminate with the fabrication and operation of a multi-MW proof-of-concept SOFC-hybrid power plant at a suitable location, using coal-derived synthesis gas as fuel.
Phase I project objectives include scale-up and performance enhancement of the existing SOFC cell and stack configuration, engineering design analysis for a proof-of-concept power plant and cost analysis. The Phase I project deliverable will be testing of a stack building block unit operating on simulated coal syngas. A further objective of the FuelCell Energy project will be to construct an 80-100kW capacity stack tower, comprised of these building block units, to validate design components associated with a multi-stack tower. The stack tower will be validation tested at the company’s test facility toward the end of the Phase I program.
FuelCell Energy utilizes the cell and stack design of its technology team partner, Versa Power Systems Inc. (VPS), for all its SOFC development programs. VPS has been engaged in SOFC development since 1997 and is considered a world leader in SOFC cell and stack technology.
VPS provided the 3kW prototype stack and system for FuelCell Energy’s DOE SECA Cost Reduction project, initiated in April 2003. In recently-completed Phase I testing, the 3kW SOFC prototype system operated for over 2000 hours and successfully met or surpassed all DOE performance metrics for power output, efficiency and degradation (life). Applicable elements of this existing SECA project will be integrated into the new project’s technical objectives, based on similarities in cell and stack development.
In February, FuelCell Energy was selected by the DOE as a prime contractor for this award and is responsible for the overall systems development of the power plant. Other team members for the newly awarded Fuel Cell Coal-Based Systems project include: Gas Technology Institute (GTI), providing advanced gasification clean-up technology; Nexant, Inc. providing coal gasification and carbon sequestration expertise; WorleyParsons Group Inc. providing engineering, procurement and construction support and SatCon Technology Corporation, providing power conditioning system engineering.
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