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GE-FUEL CELLS

THE POWER OF TOMORROW


By BRANDON OWENS
and JOHN McGUINNESS
GE-FUEL CELLS: THE POWER OF TOMORROW

CONTENTS

4
5

Executive Summary 6
Innovation 7
The Age of Gas 9
The Rise of Distributed Power 9
Let the Transformation Begin 10

I. Introduction 12

II. Fuel Cell Innovation 15


16
18

III. Fuel Cell Drivers 19


The Age of Gas 20
The Rise of Distributed Power 20
The Industrial Internet 22
TIGERs 24

IV. Fuel Cell Outlook 26

V. Fuel Cell Benefits 27


Modularity 27
High Efficiency 28
Near-Zero Environmental Emissions 28
Net Water Production 28
Dispatchability 31
Resiliency 34

VI. Conclusion 35

Appendix: Fuel Cell Technologies & Applications 37


Technologies 37
Applications 39

3
AUTHOR BIOGRAPHIES

Brandon Owens, John McGuinness,


Strategy & Analytics Director, GE Ecomagination Strategic Marketing Leader, GE-Fuel Cells

Brandon Owens is an economist, energy specialist, John McGuinness is currently the Strategic Marketing
technology researcher, and writer. His research has Leader for GE-Fuel Cells. Throughout his 25-year
been published in industry-leading journals such ­career in the power generation industry, John has
as INFORMS, Public Utilities Fortnightly, Energy served in many cross-functional positions includ-
Policy, and Research Evaluation. An author, keynote ing power plant operations and maintenance, man-
speaker, and expert witness, Mr. Owens has been ufacturing, engineering, product management, and
cited in ­periodicals such as the New York Times and technical marketing. In his most current role, Mr.
USA Today. McGuinness is responsible for the commercial and
business ­development of this newly formed start-
The author of GE’s 2014 whitepapers The Rise of up company.
Distributed Power and Digital Resource Productivity,
Mr. Owens is currently the director of Ecomagination Prior to this role, John led the Renewable Energy
Strategy & Analytics at GE, where he helps guide the Services Platform team, responsible for bringing wind
strategic direction of GE’s flagship environmental turbine and solar service-related technology devel-
sustainability initiative. Prior to this role, he was the opments into commercial and operational practice.
Manager of Strategy & Analytics within GE Energy’s Mr. McGuinness also served as the 9F Gas Turbine
Global Strategy & Planning group. Product Manager, leading the creation of a multigen-
eration product plan for the 9F family of gas turbines.
Prior to joining GE, Mr. Owens was Global Power Earlier in his career, he was an officer in the Naval
Director at IHS Cambridge Energy Research Associates Nuclear Power Program. John holds an MBA from
(IHS CERA). Before this, he founded and led the renew- State University at Albany and a BS in Engineering
able power consulting practice at Platts Research & Physics from Rensselaer Polytechnic Institute.
Consulting. Earlier in his career, Brandon served as
Senior Analyst for the National Renewable Energy
Laboratory (NREL). Mr. Owens holds an MS in Mineral
Economics from the Colorado School of Mines
and a BA in Mathematics and Economics from the
University of Colorado, Boulder.

© 2015 General Electric Company. All rights reserved.


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or in part without prior permission of the copyright owner.
GE-FUEL CELLS: THE POWER OF TOMORROW

ACKNOWLEDGEMENTS

We would like to extend our gratitude to the many


contributors to this paper. In par ticular, we
would like to acknowledge the following GE col-
leagues: Johanna Wellington, Debora Frodl, and
Richard Romer. We would also like to thank Scott
Samuelsen and Jack Brouwer of the National Fuel Cell
Research Center, Robert Rose at the Breakthrough
Technologies Institute, and Morry Markowitz and
Jennifer Gangi at the Fuel Cell & Hydrogen Energy
Association for their valuable contributions.

5
EXECUTIVE SUMMARY

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or in part without prior permission of the copyright owner.
EXECUTIVE SUMMARY

The future of power has arrived. After more than


a century of technology development, market and
technology forces are now converging to acceler-
ate fuel cell adoption across the globe. These forc-
es will work in harmony to expedite the integration
of fuel cells into the global energy landscape in the
­decade ahead. In many ways, the adoption of fuel
cells will mirror the renewable energy transition that
has taken place over the last decade, which moved
renewable power technologies from niche applica-
tions to mainstream power technologies. The three
primary drivers that are moving fuel cells to the
­tipping point are: technology innovation, the emerg-
ing age of gas, and the rise of distributed power.i

INNOVATION

GE is a global technology company in relentless pur-


suit of innovation. We are deeply committed to clean
­energy innovation. GE’s ongoing investment in fuel
cells is part of our $25 billion commitment to clean
­energy development over the past decade, which
is part of our Ecomagination initiative. Our new
Fuel Cell-Combined Cycle (FC-CC) technology is the
­latest example of GE’s clean energy innovation. The
FC-CC is a small heat and power generation system
that is comprised of a natural gas-fueled solid oxide
fuel cell (SOFC) and a GE Jenbacher r­ eciprocating
gas engine.

The FC-CC is unique in several ways. First, the


SOFC will be produced using proprietary additive
manufacturing techniques that dramatically
reduce costs b ­ eyond what has been previous-
ly achieved. Second, by combining the SOFC and
the Jenbacher, the FC-CC is projected to achieve
an electrical ­e fficiency ­b etween 60 and 65 per-
cent—that’s an ­u nprecedented level that has
previously been the domain of only the most ad-
vanced large natural gas combined-cycle machines.
Together, we believe that these breakthroughs will

7
Figure 1. The power of tomorrow GE’s Fuel Cell-Combined Cycle (FC-CC) is a unique combination of a solid oxide fuel cell
(SOFC) and a Jenbacher gas-fueled reciprocating engine. In this configuration, natural
gas is reformed to produce hydrogen. The resultant reformate, along with oxygen, is
used to produce electricity and water through an electrochemical reaction within the
SOFC. The fuel output or tail gas is then fed to a Jenbacher gas engine in order to create
more electricity and heat. The resultant electrical efficiency of the combined process
is projected to be 60 to 65 percent. The combined heat and power (CHP) efficiency is
expected to be as high as 90 percent.

65%
Electrical Efficiency

Electricity

Reformate
Tail Gas

Solid Oxide Fuel Cell Jenbacher Gas


(SOFC) Engine
Natural Reformer Ultra-Low
Gas Emissions

Heat
90%
Combined Heat
and Power (CHP)
Net Water Efficiency
Produced
0.5 gal./MWh

Source: GE

drive FC-CC costs down to a level that will enable it have a real breakthrough in fuel cell tech­n ology
to successfully compete with other distributed that will enable a distributed power ­s ystem with
­generation technologies in the
­­ ­absence of direct a high electrical efficiency. GE-Fuel Cells is mov-
policy supports. ing fast to bring this technology to the world,”
says Johanna Wellington, CEO of GE-Fuel Cells.
We are so excited about the technology that we The FC-CC will provide customers with modular, flex-
­created GE-Fuel Cells—a nimble start-up company ible power that provides near-zero environmental
within GE that will commercialize the FC-CC. “We emissions and is a net water producer. We ­believe

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EXECUTIVE SUMMARY

The Fuel Cell-Combined Cycle epitomizes what Ecomagination


is all about—solving the world’s toughest challenges by c­ reating
technologies that are both economically and environmentally
­beneficial.

that this package of benefits is ideally suited for by creating technologies that are both economically
­s tationary power applications from 1 to 10 mega- and environmentally beneficial.”
watts (MW). Furthermore, one of the most exciting
­aspects of the FC-CC is its ability to provide power THE AGE OF GAS
as a new source as well as a retrofit option. Existing
gas e
­ ngine installations around the world can be ret- After decades on the margin of the global power
rofitted with an SOFC module and transformed into system, natural gas is shifting from a regional
an FC-CC system. This option provides customers and marginal fuel to becoming a focal point of the
with the ability to triple their power output without global energy landscape. It has caught up with and
any additional environmental emissions on a per now competes head-to-head with oil and coal, and
megawatt hour (MWh) basis and produce water in complements wind and other renewable energy re-
the process. sources. At the global level, natural gas production
and consumption is growing, in part because the
In this manner, the SOFC provides a pathway for land-based and seaborne networks that underpin
­increasing power generation in key markets across the c­ onnection between supply and demand are
the globe without increasing the environmental foot- becoming more diverse as they expand around the
print of power production. The FC-CC’s water produc- world. Gas network growth, coupled with technology
tion potential is particularly attractive in arid regions innovation, is contributing to creating greater avail-
of the world such as parts of the United States and ability, delivery flexibility, and improved economics.
China, the Middle East, and North Africa. When all of Natural gas fuel cells like the FC-CC are poised to
these pieces are considered together, it is easy to be benefit from this emerging age of gas, which promis-
enthusiastic about the world-changing potential of es greater gas availability around the globe and more
this extraordinary GE innovation. economically favorable gas prices.

Because of the unique environmental benefits ­off- THE RISE OF DISTRIBUTED POWER
ered by the FC-CC, we have included the technology
in GE’s Ecomagination portfolio of clean tech­ Beyond the increased availability of natural gas, the
nology products and services. In order to be included rise of distributed power technologies across the
in the Ecomagination portfolio, technologies must globe is also a driving force for the FC-CC. The rise of
qualify by meeting strict environmental standards. distributed power is being driven by the same ­forces
According to Debora Frodl, GE’s Ecomagination that are propelling the broader decentralization
Global Executive Director, “The Fuel Cell-Combined movement: distributed power technologies are more
Cycle technology epitomizes what Ecomagination is widely available; they are smaller, more efficient, and
all about—solving the world’s toughest challenges less costly today than they were just a decade ago.

9
However, the rise of distributed power is also being overall distributed generation market space—
driven by the ability of these systems to overcome accounting for 570 MW of installed capacity across
the constraints that typically inhibit the development the globe—fuel cell market growth projections
of large capital projects, and transmission and distri- show a strong positive trajectory. For example,
bution lines. Distributed power systems have lower fuel cell industry experts project a 400 percent
capital requirements and can be built, and become ­increase in annual MW-scale stationary fuel cell
operational, faster and with less risk than large power ­installations by 2020.iii
plants or new transmission lines. GE expects annual
distributed power capacity additions to grow from Stationary power applications hold the most prom-
roughly 150 gigawatts (GW) per year today to 200 ise for fuel cells over the next decade. Industrial,
GW per year by 2020. ­commercial, and residential power-only and com­
bined heat and power (CHP) applications are a part­
Stationary distributed power fuel cells like GE’s icularly attractive fit for the technology. Indeed,
FC-CC will be a primary beneficiary as global power stationary fuel cells are already c­ ommercially
­n etworks incorporate an increasing number of ­installed across a wide variety of applications
­distributed generation technologies and migrate ­including universities, hospitals, data centers, water
­toward what we call integrated power networks. resource recovery facilities, and at leading compa-
Integrated power networks are those that contain nies like Verizon, AT&T, Walmart, Coca-Cola, eBay,
a combination of both central and distributed power FedEx, and Google. In California, in excess of 100
systems connected through increasingly sophis- MW are deployed. In South Korea, the installed fleet
ticated physical and digital networks. Indeed, a is approaching 300 MW.iv This is why we are in the
cluster of fuel cells that is already being used in process of developing a 1.3 MW FC-CC demonstra-
this manner has been coined a transmission-inte- tion, with an eye toward scaling the technology up
grated grid ­energy resource (TIGER) by researchers to the 10 MW range.
at the National Fuel Cell Research Center (NFCRC).
The world’s largest fuel cell installation is the 59 MW The benefits of the 1.3 MW FC-CC are considerable.
TIGER station at the Gyeonggi Green Energy facility First, it will generate enough electricity to meet the
in Hwaseong City, South Korea. needs of approximately 1,000 US homes. Second,
the FC-CC actually produces one half gallon of water
LET THE TRANSFORMATION BEGIN per MWh. This water production stands in contrast
to the US power plant average consumption rate of
According to the US Department of Energy’s 2013 2,000 gallons per MWh.v By generating electricity
Fuel Cell Technologies Market Report, worldwide without consuming water for cooling, the FC-CC will
fuel cell industry revenues reached $1.3 billion in save enough water to fill eight Olympic swimming
2013. About 35,000 fuel cell systems were shipped pools every year. Of course, this level of water sav-
in 2013, an increase of 26 percent over 2012, and ings is extremely valuable, particularly in arid regions
400 ­percent more than 2008. One hundred and fifty or areas grappling with drought. Third, ­because the
megawatts of ­stationary fuel cells shipped worldwide 1.3 MW FC-CC generates electricity at a projected
in 2013, an increase of 24 percent over 2012 and 244 efficiency of 60 to 65 percent, it will consume less
percent over 2008.ii fuel compared to the average US power plant. When
compared to the US average natural gas-fired power
Although fuel cells reflect a small fraction of t­ oday’s plant, we estimate that the fuel s­ avings as a result

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EXECUTIVE SUMMARY

At GE, we are proud to play a role in realizing the potential of fuel


cells, and we are humbled by the opportunity to help usher in a
new energy era—just as we did in 1882 when Thomas Edison built
the world’s first power plant. Together, let’s power the future.

of the high efficiency of the FC-CC will be enough to the potential of fuel cells, and we are humbled by the
meet the space heating, water heating, and cooking opportunity to help usher in a new energy era—just as
needs of 580 US homes every year. we did in 1882 when Thomas Edison built the world’s
first power plant. Together, let’s power the future.
By creating GE-Fuel Cells and developing the FC-CC,
we deepen our commitment to the distributed power
market. At GE, we are proud to play a role in realizing

Figure 2. Ready to take the plunge? GE is in the process of developing a 1.3 megawatt (MW) Fuel Cell-Combined Cycle (FC-CC)
system en route to the eventual development of a 10 MW system. The 1.3 MW s­ ystem will
produce enough electricity for 1,000 homes. Compared to the US power plant ­average
water consumption rate, it will save enough water to fill eight Olympic s­ wimming pools
every year. Further, when compared to the US average natural gas-fired power plant,
the fuel savings due to the projected high efficiency of the FC-CC will be enough to meet
the space heating, water heating, and cooking needs of 580 US homes every year.

×1000 ×8 ×580
Average US Homes Olympic Swimming Pools Average US Homes

Source: GE

11
I. INTRODUCTION

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I. INTRODUCTION

After more than 150 years of technology develop-


ment, forces are now aligning to accelerate fuel What Is a Fuel Cell?
cell adoption. “We’ve reached the tipping point,”
says Morry Markowitz, President of the Fuel Cell and A fuel cell is a device that converts the chem-
Hydrogen Energy Association. “When it comes to fuel ical energy in natural gas or hydrogen into
cells, I think the future is now. In the next decade, we electricity and water through an electro-
are going to see a transformation in the manufactur- chemical reaction with oxygen. Fuel cells are
ing and use of fuel cells around the world.” similar to batteries in structure, except they
rely upon an external fuel source instead of
The signs are everywhere. Dozens of Fortune 500 stored chemical reactants. While there are
companies utilize fuel cells to power corporate different types of fuel cells, each is made up
buildings and data centers, and to provide back- of three layers: an anode, an electrolyte, and
up power to telecom towers. Apple, Google, and a cathode. Here’s how fuel cells work:
Walmart are among those who have adopted fuel
cells. United States and South Korean utilities are • Hydrocarbon fuel, such as natural gas,
adding megawatt (MW)-sized fuel cells to their port- is reformed to produce hydrogen, water,
folios. According to the US Department of Energy’s ­carbon monoxide, and carbon dioxide;
2013 Fuel Cell Technologies Market Report, the world- • both the reformate and oxygen from ambi-
wide fuel cell industry reached $1.3 billion in 2013. ent air are fed into the fuel cell;
About 35,000 fuel cell systems were shipped in 2013, • the reformate flows on the anode side, a
an increase of 26 percent over 2012, and 400 percent negatively charged electrode, where it com-
more than 2008. One hundred and fifty megawatts bines with oxygen ions traveling through
of stationary fuel cells shipped worldwide in 2013, an the electrolyte from the cathode side to
increase of 24 percent over 2012 and 244 percent electrochemically react and form water;
over 2008.vi and then
• the electrons create an electrical current
Businesses, utilities, and municipalities have taken in the external circuit that becomes the
­n otice and are deploying fuel cells in a range of ­useful energy.
­applications. Breakthrough Technologies Institute
(BTI) Executive Director Robert Rose elaborates: Fuel cells can be used in a variety of ways.
“Fuel cells are diverse—from small portable devic- For example, they can be used in cars and
es to large megawatt-scale power plants—some of trucks to convert hydrogen into electricity to
these segments are doing very well and have fa- power the vehicle. They can be used in small,
vorable growth prospects because, from a technol- portable applications to provide electricity
ogy standpoint, fuels cells have arrived.” when and where it is needed. They can be
used as stationary electricity generators or
GE is always in relentless pursuit of ­technology combined heat and power systems. Although
­innovation. Over the last decade, through our fuel cells have been under development since
Ecomagination initiative, we’ve targeted our re- the nineteenth century, recent innovations
search efforts toward clean energy solutions GE’s by GE and others promise to make fuel cells
investment in fuel cells is part of our sustained ­effort more economically competitive.
to invest $25 billion in clean energy technologies

13
through Ecomagination. GE’s new Fuel Cell-Combined
Cycle (FC-CC) technology is one example of the fruits
of our commitment to clean energy innovation. GE
Ecomagination Global Executive Director Debora
Frodl sums it up: “The Fuel Cell-Combined Cycle
technology e­ pitomizes what Ecomagination is all
about—solving the world’s toughest challenges by
creating technologies that are both economically
and ­environmentally beneficial.”

The FC-CC is a first-of-its-kind combination of a solid


oxide fuel cell (SOFC) and a GE Jenbacher recip-
rocating gas engine. In this configuration, ­natural
gas is first fed into the SOFC. The FC-CC then takes
­advantage of the residual heating value of the fuel
that ­exits the SOFC. This fuel is fed into a gas-­fueled
Jenbacher reciprocating engine, which ­generates
even more electricity. The SOFC and the Jenbacher
are combined in a capacity ratio of 2:1 to create
power generation solutions in the 1.3 to 10 MW range.
When configured in this m ­ anner, the SOFC and the
Jenbacher will provide a projected combined efficien-
cy of 60 to 65 percent. Efficiencies in excess of 60 per-
cent for power generators in the size range of 10 MW
and below have never before been achieved.

In the coming years, GE will begin offering the FC-CC


in size ranges from 1.3 to 10 MW to provide station-
ary power solutions for our customers. By creating
GE-Fuel Cells and developing the FC-CC, we deepen
our commitment to the growing distributed power
space. We are excited about the potential of the
revolutionary FC-CC. That’s why we created GE-Fuel
Cells, a start-up company within GE that is currently
­developing a 1.3 MW SOFC demonstration project.

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II. THE LEGACY OF INNOVATION

II. FUEL CELL


INNOVATION

15
Technology innovation is the key ingredient that has
led to the development of the revolutionary FC-CC. What is Ecomagination?
Indeed, recent technology innovations by GE and
­others have brought fuel cell technologies to the cusp Ecomagination is GE’s commitment to develop-
of competitiveness. Automotive manufacturers like ing technologies that reduce our consumption
Honda, Toyota, and Hyundai have made a commit- of natural resources while creating econom-
ment to develop and commercialize hydrogen fuel ic benefits for our customers. GE’s portfolio
cell vehicles and have achieved improved ­reliability, of Ecomagination technologies and services
performance, and power density. GE’s FC-CC is the is diverse—from wind turbines to water fil-
latest fuel cell innovation. To develop the FC-CC, we’ve tration systems and everything in between.
built upon a rich legacy of fuel cell innovation that The portfolio also includes distributed power
dates back over 150 years. Indeed, we stand on the techno­logies such as GE’s aeroderivative
shoulders of giants. gas turbines and gas engines, and the new
Fuel Cell-Combined Cycle (FC-CC) technology.
FUEL CELL HISTORY Since its founding in 2005, the GE t­ echnologies
and solutions in the Ecomagination ­portfolio
The first prototype fuel cells were conceptualized have generated $200 billion in revenue. GE
and developed in 1839 by Welsh physicist William has maintained its commitment to efficient
Grove and German physicist Christian Friedrich ­resource solutions by investing $25 billion in
Schönbein. In 1893, Friedrich Wilhelm Ostwald research and development over this period.
­e xperimentally determined the interconnected
roles of the ­v arious components of the fuel cell:
­electrodes, ­electrolyte, and oxidizing and reducing
agents.vii Chemists Ludwig Mond, Charles R. Alder GE’s history with fuel cells dates back to the 1950s,
Wright, and C. Thompson i­ndependently built func- when GE scientists W. Thomas Grubb and Leonard
tioning fuel cells around the turn of the twentieth Niedrach jointly invented the first proton exchange
century. Their fuel cells produced a small electrical membrane (PEM) fuel cell. After developing the PEM in
current but were much too costly to build. In 1896, 1955, GE went on to develop this technology for NASA
William W. Jacques built a fuel cell with a thermoelec- in 1962, leading to its use during Project Gemini—
tric efficiency of 8 percent. NASA’s second human space flight program. This
was the first commercial use of a fuel cell. Research
In the first decades of the twentieth century, hydro- on SOFC began in the late 1950s at GE’s global
power and steam turbines were able to produce large ­research center in Niskayuna, New York. Scientists
amounts of electricity at increasingly lower costs. at Westinghouse began SOFC research in the 1960s,
Fuel cells couldn’t compete with either, and fuel funded in part by the US Department of Interior. In
cell research retreated to the laboratory. By 1939, 1964, GE developed the first nickel-yttria stabilized
British engineer Francis Thomas Bacon successful- zirconia (Ni-YSZ) anode.
ly developed a 5 kilowatt (kW) stationary fuel cell.
Bacon’s work was put on hold due to World War II, but High costs and low efficiencies continued to ­create
over the course of twenty years after the war, Bacon challenges for fuel cell researchers. Increasingly
continued his work, which eventually led to large- ­efficient large-scale technologies and low fossil
scale demonstrations with alkali cells. fuel prices meant that researchers would have to

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II. THE LEGACY OF INNOVATION

Figure 3. Fuel cell innovation timeline Fuel cell developments can be traced back to 1839. By the turn of the twentieth ­century,
researchers concluded that fuel cells were too inefficient and costly to compete with
­increasingly large central generation plants. After a century of gradual innovation, GE
­researchers are now developing the megawatt-scale Fuel Cell-Combined Cycle (FC-CC), an
innovative fuel cell hybrid technology that is expected to achieve efficiency levels that have
hitherto been the domain of only the largest and most efficient power plants in the world.

1830s–1930s 1950s–1980s 1990s–2010s

1839 1950s 1990s


The first prototype fuel cells GE’s history with fuel cells dates back GE continued at its fuel cell
were conceptualized and to the 1950s, when GE scientists W. research its Hybrid Power
developed. Thomas Grubb and Leonard Niedrach, Generation Systems business
jointly invented the first proton in Torrance, California,
1893 exchange membrane (PEM) fuel cell. throughout the 1990s and
Friedrich Wilhelm early 2000s.
Ostwald experiment­ 1953
ally determined the First polymer electrolyte 2002
inter­connected roles membrane (PEM) fuel cell. GE researchers renewed
of the various fuel cell their focus in 2002 when
components. 1962 they partnered with the US
GE went on to develop this National Energy Technology
1896 technology with NASA and Laboratory with support from
William W. Jacques McDonnell Aircraft, leading the US Department of Energy
built a fuel cell with to its use during Project Solid State Energy Conversion
a thermoelectric Gemini. Alliance (SECA) program.
efficiency of 8 percent.
1964 2006
1932 First nickel-yttria stabilized GE exited the SECA Program.
Francis Bacon zirconia (Ni-YSZ) anode.
developed the first 2013
successful fuel cell 1982 GE develops the Fuel Cell–
in 1932, running on GE Developed Molten Combined Cycle (FC-CC)
pure O2 and H2 and carbonate fuel cell (MCFC) by combining SOFC with
using an alkaline electrolyte. a gas engine.
catalyst and nickel
electrodes. 2014
GE launches GE-Fuel
Cells to develop and
commercialize the
FC-CC.

Source: GE and Smithsonian Natural Museum of American History, Fuel Cells: Discovering the Science (April 2013).

achieve cost reduction and efficiency breakthroughs their efforts on the more promising SOFC. GE conti­
to make fuel cells commercially viable. Nonetheless, nued its fuel cell research throughout the 1990s and
GE r­ esearch forged ahead. In 1982, GE developed early 2000s at its Hybrid Power Generation Systems
a ­molten carbonate fuel cell (MCFC) electrolyte. By business in Torrance, California.
the end of the 1980s, GE researchers began focusing

17
In 2002, GE researchers partnered with the US
National Energy Technology Laboratory (NETL) with What is GE-Fuel Cells?
support from the US Department of Energy Solid
State Energy Conversion Alliance (SECA) program. GE-Fuel Cells is a new start-up business fund-
The challenge was to reduce manufacturing costs ed by GE Ventures. It was born from fuel cell
while improving energy density and reducing degra- technology that GE scientists have been
dation. GE researchers made a major pivot in 2006 developing at GE’s Global Research Center
to find a lower cost manufacturing approach, and by in Niskayuna, New York. Led by longtime
2012 had achieved a significant measure of success. ­research leader Johanna Wellington, GE-Fuel
During 2013, GE’s efforts focused on fuel cell scale-up, Cells is focused on commercializing the Fuel
which brought about the decision to form GE-Fuel Cell-Combined Cycle (FC-CC) technology,
Cells in 2014. which is a hybrid system comprised of a solid
oxide fuel cell (SOFC) and a Jenbacher gas
GE INNOVATIONS engine. The FC-CC will be available in 2018.

More recently, GE researchers independently dis-


covered a novel and significantly less expensive Jenbacher gas engine. By putting the SOFC together
method to manufacture SOFCs. They took a well- with a Jenbacher engine in a combined cycle config-
known process— thermal spraying that is used on uration, GE researchers project the FC-CC efficiency
GE aircraft engines and industrial gas turbines—and to be 60 to 65 percent. Further, by directing the tail
reapplied it to fuel cells manufacturing. Applying gas to the gas engine, the fuel cell system design
thermal spray technology to the SOFC was a signif- is simplified – leading to lower costs and longer life.
icant breakthrough because it opened the door to It’s a technology win-win.
the ­potential of high volume, low cost manufactur-
ing of SOFCs. GE’s FC-CC makes perfect sense. “Fuel cells are made
for hybridization,” according to Robert Rose, Executive
The second recent innovation involved marrying the Director of BTI. “It’s a natural fit because h
­ ybridization
SOFC with another mature technology that had makes the fuel cell system more efficient and eco-
a rich history of its own and was already an import- nomical.” By combining two technologies into an
ant part of GE’s distributed power portfolio: GE’s integrated system and making fuel cells less ­costly
Jenbacher gas engine. “It was right under our nose,” and more efficient, GE has finally achieved what
says Johanna Wellington, seasoned GE Technology fuel cell researchers had been trying to accomplish
Director and CEO of GE-Fuel Cells. “We just had to put for more than a century. Indeed, GE’s success in this
the pieces together.” ­endeavor is the product of the cumulative e ­ ffort
of a long line of researchers stretching back over
It is unrealistic to expect that every single hydrogen 150 years. We are tremendously proud to be part of
ion and oxygen ion will combine in perfect chemi- this legacy.
cal reaction within the fuel cell stack of an SOFC
system. Some amount of fuel will pass through
unused. Instead of focusing their efforts on getting
the exact chemistry in the fuel cell, GE researchers
decided to feed the unutilized fuel or tail gas to a

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III. FUEL CELL DRIVERS

III. FUEL CELL DRIVERS

19
GE is always in relentless pursuit of technology innovation. Over
the last decade, through our Ecomagination initiative, we’ve
­targeted our research efforts on clean energy solutions like the
new Fuel Cell-Combined Cycle.

Although innovation played a key role in bringing and improved e ­ conomics. As a result, the world is
fuel cells to the cusp of competitiveness, other key now entering what we call the age of gas. Distributed
­factors are at work today in support of fuel cells. The natural gas-fueled technologies, like the FC-CC, will
most important trends are what we call the age of be one of
­­ the most prominent beneficiaries of the
gas and the rise of distributed power.viii The age of ­emerging age of gas.
gas is the phrase we use to capture the current and
­e xpected growth in natural gas production, con- THE RISE OF DISTRIBUTED POWER
sumption, and networks around the world. The rise
of ­distributed power refers to the current growth in The rise of distributed power is also a driving force
small, distri­buted power systems across the globe. for fuel cell technologies. A wave of decentralization
Both of these trends positively reinforce what’s is sweeping across the globe and changing the way
­happening in the fuel cell market. we live, work, and play. The organization of ­resources
and people is moving away from centralized s­ ystems
THE AGE OF GAS toward integrated networks that include both
­distributed and centralized elements. The trend is
The first commercialized natural gas use occurred ­pervasive across society and the global economy.
in Britain. Around 1785, the British used natural gas Telecommunications, computing, retail, and enter-
produced from coal to light houses and streets. tainment have all moved toward decentralization.
In 1816, Baltimore, Maryland, used this type of Today, we are at the beginning stages of decentral-
manu­factured natural gas to become the first city ization in higher education, healthcare, and energy.
in the United States to light its streets with gas. The decentralization movement has the p ­ otential
What is new and changing today is the role of this to ­e nable unprecedented productivity gains and
unique resource in the global energy mix. Natural ­improve living standards for all.
gas is shifting from a regional and often marginal
fuel to becoming a focal point of the global energy Electric power systems are riding the wave of de-
landscape as it catches up and competes head-to- centralization through the deployment and use of
head with oil and coal, and complements wind and distributed power technologies. These innovations,
other renewable e ­ nergy sources. which have been around since Thomas Edison built
the first power plant in 1882, are used more and more
Gas growth is accelerating, in part because the net- today to provide electrical and mechanical power at
works that underpin the connection ­b etween or near the point of use. The use of distributed power
­s upply and demand are becoming more di- technologies creates a decentralized power system
verse as they ­expand around the world. Gas net- within which distributed generators meet local
work growth, ­coupled with technology innovation, power ­demand throughout the network.
is creating greater availability, greater flexibility,

© 2015 General Electric Company. All rights reserved.


This material may not be copied or distributed in whole 20
or in part without prior permission of the copyright owner.
III. FUEL CELL DRIVERS

Figure 4. Natural Gas Production Gas production and consumption is expected to increase over the next decade. According
to GE’s forecast, natural gas production will grow 35 percent between 2012 and 2025
to 4,780 billion cubic meters up from 3,518 in 2012. The growth in gas will be supported
by an increase in both land-based pipeline and seaborne liquefied natural gas trade.
Gas-fueled distributed power technologies, such as GE’s new Fuel Cell-Combined Cycle
(FC-CC), will be one of the primary beneficiaries of this emerging age of gas.

131 132 227 66 185 119 249 51 102

900

800

700

600

500

400

300

2012–2025 200
Growth
100
2012
Natural Gas 0 BCM
Production North Europe Middle Eurasia Other Latin China Asia- Africa
America East Asia America Pacific

Source: GE

The portfolio of distributed power technologies ­ ropulsion. Distributed power technologies can
p
­includes diesel and gas reciprocating engines, stand alone, or they can work together within a net-
gas turbines, fuel cells, solar panels, and small wind work of ­integrated technologies to meet the needs of
turbines. Although there is no standard definition, both large and small energy users.
distributed power technologies are less than 100
MW in size—and typically less than 50 MW, which The rise of distributed power is being driven by
is the limit that distribution systems can accom- the same forces that are propelling the ­b roader
modate at distribution voltages. They are highly decentralization movement: distributed power
­flexible and suitable across a range of applications ­t echnologies are more widely available, smaller,
­including electric power, mechanical power, and more efficient, and less costly today than they were

21
just a decade ago. But the rise of distributed power The proliferation of distributed power systems will
is also being driven by the ability of distributed power benefit nations, industries, and people around the
systems to overcome the constraints that typically world because power use is critical to human and
inhibit the development of large capital projects and economic development. Research has shown that
transmission and distribution (T&D) lines. Because ­increasing electricity use is positively correlated with
they are small, they have lower capital requirements advances in income, education, and health. This is
and can be built and become operational faster, and particularly true in developing countries—such as
with less risk than large power plants. In addition, dis- China, India, and Brazil—that have lower per capita
tributed power systems can be incrementally added income levels, and this is where the demand for dis-
to meet growing energy needs. tributed power is the greatest today.

Taken together, the net result is an increase in dis- THE INDUSTRIAL INTERNET
tributed power investment and capacity installations
that is expected to continue over the next decade.­ The world is in the midst of the widespread penetra-
In 2012, $150 billion was invested in distributed power tion of information technology hardware, software,
technologies including gas turbines, reciprocat- and communications technologies into the business
ing engines, and solar PV in electric, power, mech­ and social fabric of our lives. From the way we shop,
anical drive, and propulsion applications globally. to the way we receive our news and run our busi-
Approximately 142 GW of distributed power capac- ness operations—all aspects of our lives have been
ity was ordered and installed. During the same year, enhanced by digital technologies in the last decade.
GE estimates that 218 GW of central power capac- Today, the penetration of digital technologies is act-
ity was ordered. This means that distributed power ing as an accelerant to the adoption of distri­buted
­capacity additions accounted for about 39 percent power technologies around the world. Its impact on
of total global capacity additions. the rise of distributed power will grow over time as
each of these trends gains additional momentum.
By 2020, distributed power will play an even l­arger
role. GE estimates that annual distributed power Digital control systems currently embedded in dis-
­capacity additions will grow from 142 GW in 2012 tributed power technologies enable operators to
to 200 GW in 2020. That’s a 58 GW increase and rep- remotely optimize operations and minimize costs
resents an average annual growth rate of 4.4 per- in ways that were not possible a decade ago. Both
cent. During this period, investment in distri­buted hardware and software have grown more sophisti-
power technologies will rise from $150 billion to cated to the point where distributed power systems
$206 billion. To be sure, installations of central power can be controlled from a smartphone. But that’s not
­capacity will also increase between 2012 and 2020. the whole story. The forthcoming marriage of the
GE estimates that annual central power a ­ dditions will Internet and industrial machines, in what is known
grow from 218 GW in 2012 to 272 GW in 2020. That as the Industrial Internet, promises to transform iso-
represents an average annual growth rate of 2.8 per- lated distributed power technologies into remotely
cent. This means that on a global basis, distributed operated and synchronized fleets of virtual power
power ­capacity additions will grow 60 p ­ ercent faster plants with extended capabilities.ix
than central power additions. As a result, d ­ istributed
power’s share of global capacity additions will i­ncrease Tomorrow’s Industrial Internet-enabled distributed
from 39 percent in 2012 to 42 percent in 2020. power control systems will have extended capabil-

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This material may not be copied or distributed in whole 22
or in part without prior permission of the copyright owner.
III. FUEL CELL DRIVERS

Figure 5. Global distributed power Between 2012 and 2020, distributed power capacity additions will grow from 142 giga-
capacity additions watts (GW) to 200 GW. That’s a 58 GW increase and represents an annual growth rate
of 4.4 percent. During this period, investment in distributed power technologies will rise
from $150 billion to $206 billion. Stationary power fuel cell applications will be part of the
growing mix of distributed power solutions.

2000 2012 2020

47 GW/yr 142 GW/yr 200 GW/yr


21% Share of 39% Share of 42% Share of
Capacity Additions Capacity Additions Capacity Additions
$30 billion $150 billion $206 billion

Source: GE

ity beyond today’s systems. They will provide oper- grid-connected plants to deliver electricity to the
ations decision support, such as how to run, start, transmission network in unison during periods of
shut down, and buy power. This will create better peak demand. A VPP could serve as a substitute to
investment decisions, leading to better ­economic a single large power plant. Further, individual dis-
­returns for investments. Additional capabilities tributed power units would be more flexible and
will allow distributed power operators to self-install quicker to react to fluctuations in electricity demand.
­software upgrades and eliminate the risks and costs VPPs also have the potential to coordinate distribut-
of downtime. ed power system operation with options related to
electricity demand, such as demand response and
Beyond enhanced control and optimization of dis- other load-shifting approaches.
tributed power technologies, the Industrial Internet
holds the promise of coordinating distributed power Today’s distributed power digital control systems
systems in ways that add further value to distrib- have already enabled operators to remotely monitor
uted power technologies at the system level. This and control all aspects of power plant operation. This
­extended capability has the potential to further tilt capability has enhanced the distributed power value
the landscape in favor of distributed power systems proposition, and it is part of the driving force behind
like the FC-CC. the rise of distributed power. However, this is only
the tip of the iceberg. Tomorrow’s control systems
A virtual power plant (VPP) is a group of distributed will open the door to an extended range of capabil-
power technologies that are aggregated and oper- ities that will further enhance the appeal of distri­
ated in unison by a centralized control system pow- buted power. VPPs will enable a fleet of distributed
ered by the Industrial Internet. Centralized control power systems to operate in a coordinated manner
and operation extends the capabilities of indivi­ to facilitate fleet-wide optimization. VPPs will serve as
dual distributed power units by enabling groups of a virtual complement to large central power plants

23
by providing both electricity supply and coordinating the highest level of grid support; and they are
demand-side options. Together, the digital wave and clean-burning so they can meet strict emissions
the Industrial Internet will propel distributed power standards and be ­located at or close to the point of
to new heights. use—even in j­urisdictions with the most stringent
emissions requirements.
TRANSMISSION-INTEGRATED GRID ENERGY
RESOURCES (TIGERS) A cluster of fuel cells that is already being used in
this manner is known as a transmission-integrated
Technology advances have enabled the development grid energy resource (TIGER). The world’s largest fuel
of a new breed of distributed power technologies, cell installation is the 59 MW station at the Gyeonggi
like the FC-CC, that have the ability to rival the cost and Green Energy facility, in Hwaseong City, South Korea,
performance of central station power plants, but in which happens to operate as a TIGER station. In the
a much smaller package. Just as important, today’s context of the rise of distributed power, fuel cell TIGER
distributed power technologies now enable control installations in the United States and South Korea
and customization to occur either on-site or remotely. are a harbinger of things to come.
Thus, the operation of distributed power technolo-
gies can be synchronized within the context of broad-
er integrated power networks that are composed of
both distributed and central power plants.

Integrated power networks are characterized by


a combination of central station and ­d istributed
power systems that can operate in isolation or
­together within increasingly interconnected and
intelligent transmission networks. Power networks
across the globe will become increasingly integr­ated
over time as distributed power technologies and
intelligent T&D components are added to l­egacy
networks. Thus, the rise of distributed power is
­ushering in a new power landscape where technol-
ogies work in tandem to provide a range of services
that couldn’t be provided by either central station or
distributed technologies in isolation.

Fuel cells are ideally suited to enable integrated


power networks: they have the ability to change
electricity output levels to meet rapid fluctuations
in electricity demand. This is extremely helpful
when buffering the presence of variable genera-
tion ­resources such as wind power and solar; they
are small-scale so they can be situated in the
­distribution network in locations where they p
­ rovide

© 2015 General Electric Company. All rights reserved.


This material may not be copied or distributed in whole 24
or in part without prior permission of the copyright owner.
III. FUEL CELL DRIVERS

Figure 6. Transmission-integrated grid A cluster of stationary fuel cells interconnected within electric transmission and distri­
energy resource (TIGER) bution systems is known as a transmission-integrated grid energy resource (TIGER).
The world’s largest fuel cell TIGER installation is the 59 megawatt TIGER station at the
­Gyeonggi Green Energy facility, in Hwaseong City, South Korea.

Distributed Generation

Solar Solar

Micro Combined Heat


and Power (CHP)

Residential Commercial Gas Engine Industrial

Transmission-Integrated
Grid Energy Resource (TIGER)
Station

Gas Turbine Renewables Steam Turbine Hydro Power Nuclear


Combined Cycle

Central Generation

Source: Brendan Shaffer, Brian Tarroja, and Scott Samuelsen, ”Dispatch of Fuel Cells as Transmission Integrated Grid Energy Resources to Support
Renewables and Reduce Emissions,” Applied Energy 148 (2015): 178–186.

25
IV. FUEL CELL OUTLOOK
Experts expect stationary fuel cell installations to grow by more
than 400 percent through the end of the decade.

The convergence of fuel cell innovation, the age of Fuels cells in transportation also represent a
gas, and the rise of distributed power have brought promising area. Major auto manufacturers Toyota,
fuel cells to the cusp of competitiveness. The growth Honda, and Hyundai have announced the commer-
of fuel cell TIGER installations in the context of cial availability of fuel cell vehicles (FCVs) in 2015.
the movement from isolated to integrated power Enabled by the buildout of hydrogen fueling sta-
­networks indicates that the next decade will be one tions, consumers in the Japan and California ­markets
of growth for stationary fuel cells. Indeed, fuel cell will have the opportunity to be among the first to
industry experts expect stationary fuel cell installa- get behind the wheel of tomorrow’s transportation.
tions to grow by more than 400 percent through the Buses are also getting into the game. In Europe, to
end of the decade. meet greenhouse gas emissions reduction targets,
­countries such as Germany are supporting FCV de-
Of course, fuel cell applications go beyond MW- velopment. Navigant Research expects one million
scale stationary power generation applications. fuel cell light duty vehicles on the road by 2027.xi
Other areas include kW-scale stationary CHP, trans-
portation, and portable app­lications. All of these These are just some examples of current commer-
applications are expected to grow over the next cial fuel cells adoption and future expectations
decade as well. around future fuel cell growth. As each fuel cell
­application area matures, the benefits will carry over
For example, consider kW-scale residential CHP fuel to the other fuel cell industries. Continued ­support
cells known as fuel cell micro-CHP systems. These policies, ­research and development spending, and
systems have overall efficiencies exceeding 90 per- supply chain development will collectively contin-
cent and can be installed in both new and e ­ xisting ue to reduced lifecycle costs for fuel cells and help
buildings. Japan’s Ene-Farm program, which start- ­ensure that the vast potential of fuel cells is realized
ed in 2009, provides an incentive for residential fuel in the years ahead.
cell CHP installations. In September 2014, the pro-
gram celebrated 100,000 cumulative installations
along with a 50 percent cost reduction since the
inception of the program. x The Japanese govern-
ment has a ­national target of 1.4 million cumula-
tive ­installations by 2020 and 5.3 million by 2030.
Germany recently announced a similar program
that provides capital grants to micro-CHP projects.

26
V. FUEL CELL BENEFITS

V. FUEL CELL BENEFITS

MODULARITY • First, due to their scalability, distributed power


technologies require less money to buy, build,
Small is Beautiful is the title of a 1973 collection of and operate. In regions where capital is con-
essays from British economist E.F. Schumacher. He strained, it is increasingly important to provide
discussed the benefits of small, appropriate tech- critical i­nfrastructure, such as electricity, without
nologies, in contrast to increasingly large machines. ­h aving to raise hundreds of millions of dollars in
The phrase is ideally suited to describe the benefits capital to finance infrastructure projects. The cap-
of distributed power technologies like the new ­FC-CC. ital ­simply isn’t available in many parts of the de-
Distributed power technologies provide a number of veloping world to support large projects.
distinct benefits due to their size: • Second, because of their small size, distributed

27
power technologies enable energy providers to natural gas to electricity was $35/MWh (7,948 Btu/
match the level of demand with the level of ­supply, kWh × $4.38/mmBtu HHV). xiii The higher net electri-
and to increase supplies incrementally as needed. cal efficiency of the FC-CC yields a conversion cost of
Centralized power stations require large ­capital $25/MWh. That’s a $10/MWh cost savings simply as a
­investment and are available in sizes that are often ­result of the higher conversion efficiency of the FC-CC.
not appropriate for the required level of ­supply.
Incremental distributed power development is Regions where gas prices are higher, such as South
the appropriate development path in many parts Korea and Japan, rely on more expensive liquefied
of t­ he world today. natural gas imports. Here, the cost savings as a re-
• Third,
 because distributed power technologies are sult of the high efficiency level of the FC-CC are even
situated at or near demand, they facilitate a local more pronounced. With the natural gas price at $10/
level of control, operation, and maintenance that mmBtu, the cost of converting natural gas to elec-
is not possible with central power stations. This tricity grows to $79/MWh at 43 percent efficiency,
­enables system owners and operators to monitor and just $58/MWh for the FC-CC. Thus, the impact of
and customize distributed power solutions to meet conversion efficiency increases at higher fuel prices.
their specific needs.
• Unique to fuel cells and other clean energy-distrib- NEAR-ZERO ENVIRONMENTAL EMISSIONS
uted energy resources, permitting is possible in con-
gested areas due to near zero emissions. It’s not just the high efficiency that makes the FC-CC
a game-changer, it’s also the improved environmen-
Advantages of the FC-CC go beyond just its size tal performance and greater level of resource pro-
alone. From high efficiency, near-zero emissions ductivity relative to other generation options. Within
and net water production, to fuel flexibility and the FC-CC system, SOFC is integrated with the gas
modularity, GE’s FC-CC offers a range of benefits engine at a capacity ratio of roughly 2:1. For every 2
not ­available in any other generation technology— MW of SOFC, the FC-CC includes another 1 MW of gas
distributed or otherwise. engine capacity. We combine an ultraclean gas en-
gine with a near-zero emissions SOFC, resulting in a
HIGH EFFICIENCY 67 percent reduction in emissions relative to a stand-
alone gas engine. When equipping the FC-CC with
The efficiency with which power plants convert fuel selective catalytic reduction technology, emissions
into electricity is the most important determinant drive down even further. GE’s preliminary estimates
of generation cost. High efficiency levels mean that indicate that the FC-CC greenhouse gas and par-
more fuel is converted to electricity and less fuel is ticulate emissions will place it on par or better than
wasted. Consider the average conversion effi­ciency state-of-the-art large central-station gas ­turbine
of the US natural gas-fired power plant fleet. The av- combined cycles.
erage efficiency of the US natural gas fleet in 2013
was 43 percent ­(average annual heat rate 7,948 NET WATER PRODUCTION
Btu/kWh HHV). xii That means that 43 percent of the
­energy embedded in the natural gas was convert- Global water resources are becoming increasingly
ed to ­electricity, while 57 percent was wasted in the constrained in the face of growing economies, r­ ising
conversion process. At the average natural gas price population levels, and the growing impacts of climate
of $4.38/mmBtu HHV in 2013, the cost of converting change. The World Resources Institute (WRI) has

28
V. FUEL CELL BENEFITS

Figure 7. Checking all of the boxes From high efficiency, near-zero emissions, and net water production, to fuel flexibility,
and modularity, GE’s Fuel Cell-Combined Cycle (FC-CC) offers a range of benefits not
available in any other generation technology— distributed or otherwise.

Electrical
Ultra-Low Efficiency > Net Water
Modular Dispatchable
Emissions 60% Production

Wind

Diesel Engine

Natural Gas
Combined Cycle

Solar PV

Gas Engine

Fuel Cell
Simple Cycle

Fuel Cell-
Combined Cycle

Source: GE

­ xamined local water stress throughout the globe


e Development (OECD), one billion people live in wa-
and found extreme stress in select areas across all ter-stressed regions today. xiv Furthermore, WRI
seven continents. The most stressed regions are ­expects water stress to intensify over the next 15
Africa, the Middle East, and Australia. According to years across all scenarios. xv Ensuring adequate
the Organization for Economic Co-operation and ­supplies of water in many parts of the world will be

29
Table 1. Fuel cost of generation for new The Fuel Cell-Combined Cycle (FC-CC) is projected to have a combined efficiency of 60
and existing power plants to 65 percent, placing it alongside state-of-the-art large power plants for efficiency.
­Efficiency levels this high translate into reduced fuel costs and more competitively priced
power, particularly in regions where fuel prices are high.

Fuel Cost of Generation ($/MWh)

Heat Rate
Conversation $4/ $6/ $8/ $10/ $12/
[LHV] (Btu/
Efficiency (%) MMBtu MMBtu MMBtu MMBtu MMBtu
kWh)

Existing Coal Plant


9,609 36% $40 $61 $81 $101 $121
(US Average)

Gas-Fuelled Reciprocating
8,632 40% $38 $57 $77 $96 $115
Engine (US Average)

Existing Natural Gas-fired


Gas Turbine Combined 6,913 49% $31 $46 $61 $77 $92
Cycle (US Average)

Solid Oxide Fuel Cell —


6,690 51% $30 $45 $59 $74 $89
Simple Cycle

New Natural Gas-fired


Gas-Turbine Combined 5,503 62% $24 $37 $49 $61 $73
Cycle Plant

GE-Fuel Cells FC-CC* 5,249 65% $23 $35 $47 $58 $70

*Expected conversion efficiency of the new FC-CC will be 60 to 65 percent.


Source: GE and US Energy Information Administration, Form EIA-860, Annual Electric Generator Report.

a challenge in the face of rising population and eco-


­
generation, and each kWh generated from coal re-
nomic output levels. quires withdrawal of 25 gallons of water.xvi This adds
up fast. The average thermal power plant in the
These trends tell us that it will become ­increasingly United States consumes—primarily through evapo-
important to minimize water use during ­e nergy ration, which must be replaced—approximately a half
production. This holds not just for traditionally gallon of water per kWh. When factoring in the evap-
water-scarce regions like the Middle East , but oration from hydroelectric power plants, the weight-
­­also other areas that are experiencing increasing ed average water consumption per kWh in the United
water stress. States is two gallons per kWh.xvii

According to Sandia National Laboratories, the This is where the FC-CC shines, because water is
electricity industry is the second largest source of one of the outputs of the fuel cell electrochemical
freshwater withdrawals in the United States. Coal process. The SOFC component of the FC-CC is actu-
currently accounts for 52 percent of US electricity ally a net water producer, not a consumer of water for

© 2015 General Electric Company. All rights reserved.


This material may not be copied or distributed in whole 30
or in part without prior permission of the copyright owner.
V. FUEL CELL BENEFITS

Figure 8. Full and partial load efficiencies of power generation


cooling like most power plants. According to GE-Fuel technologies
Cells' preliminary analysis, the FC-CC will produce
Dispatchability—or power generation flexibility—is i­ncreasingly
water at a rate of one half gallon per megawatthour.
important as intermittent demand and variable generation
Compared to the average US water consumption ­resources, such as wind and solar power, are integrated into
rate for power generation, each 1.3 MW FC-CC will the transmission system. The Fuel Cell-Combined Cycle (FC-
CC) system offers a higher level of dispatchability than exist-
save enough water to fill eight Olympic swimming
ing fuel cell technologies because of the introduction of the
pools every year of operation. flexible gas engine into the combined system. Unlike other
generation options, the FC-CC is able to maintain a high lev-
el of efficiency even at part-load.
DISPATCHABILITY

Dispatchability—or the ability of an electricity gen- 65


erator to vary its level of electricity output in order FC-CC
to respond proactively to different levels of electric- 60 Natural Gas

% Electrical Efficiency
Combined Cycle
ity demand—is an increasingly important attribute
55
for electric generators for several reasons. First, in
many jurisdictions, generators face increasingly
50
variable demand levels due to the introduction of re-
al-time pricing and other mechanisms that expose Gas Engine
45
generators to more rapid demand changes. Second,
many regions of the world are incorporating increas- 40
ing ­levels of renewable energy resources to the grid.
At high levels of penetration, renewables require 50 75 100
­increasing flexibility from other generation units % Base Load Operation
within the electrical system in order to accommo-
date their variability. Thus, the need for—and value
of—dispatchability is increasing over time in many Source: GE.
power networks around the world.

The FC-CC is designed to be a fully dispatchable sys-


tem. The addition of a flexible gas engine provides the
FC-CC system with a higher level of ­dispatchability
than other fuel cell systems. As a result, the FC-CC is
able to maintain high levels of efficiency even at part-
load. This is a challenge to even the most ­mature
generation technologies available.

31
EXECUTIVE SUMMARY

Figure 9. 2013 global water stress map

Water is a critical natural resource. Water Extremely High Stress (>80%)


stress is present around the world and is High Stress (40–80%)
expected to intensify over the next decade
Medium-High Stress (20–40%)
in the presence of rising economic and pop-
ulation levels. Generation technologies that Moderate Stress (10–20%)
produce rather than consume water, such Low Stress (<10%)
as GE’s new Fuel Cell-Combined Cycle (FC-
CC), can play a role in alleviating water stress Arid and Low Water Use (NA)
around the world. Missing Data (No Data) 1.2 billion people living with water stress

© 2015 General Electric Company. All Rights Reserved. Source: World Resources Institute (WRI) Aqueduct Project. Data provided by the Coca-Cola Company. Hydrologic modeling performed by
This material may not be copied or distributed in whole 32 ISciences, LLC.
or in part, without prior permission of the copyright owner.
RESILIENCY Making the power system more resilient to natu-
ral disasters is critical to protecting customers and
As the world grows increasingly ­interconnected, the significantly reducing the magnitude of outages,
infrastructure networks that deliver electricity, gas, human suffering, and economic costs. Distributed or
and water to our cities have never been more import- ­on-site power technologies like the FC-CC ­enhance
ant. At the same time, the reliability of infrastructure the r­ esiliency of the power system by providing
networks is increasingly challenged by a rising tide ­c ustomers with power from on-site generators,
of natural disasters. The challenge is visible in the in- rather than from distant power plants. In addition,
creasing number of blackouts e ­ xperienced in major customers can receive electricity from gas-fueled
economies across the globe. According to Eaton, distributed generators as long as natural gas pipe-
which produces an annual blackout tracker, the an- lines remain intact. Natural gas pipelines are much
nual number of blackouts in just the United States less vuln­erable to above-ground natural disasters
alone has risen from 2,169 in 2008 to 3,634 in 2014. than transmission and distribution lines. For exam-
That’s an increase of 67 percent in six years. These ple, when hurricanes Irene (2011) and Sandy (2012)
electrical outages and surge spikes are estimated hit the northeast United States, the natural gas
to cost more than $150 billion in annual damages to transmission pipelines ­reported that they were able
the US economy.xviii to continue to operate during the storms. Meanwhile,
6.69 million customers experienced power outages
The increasing number of weather-related events during Irene, and 8.66 m ­ illion customers experi-
appears to be the source of the growing number enced power outages during Sandy.xix
of outages. For example, in 2014 alone, the follow-
ing weather-related events caused major system Distributed power technologies are a key piece
blackouts: of the puzzle when it comes to strengthening the
power system and improving resiliency. In a world
• February 5: An ice storm in Philadelphia left more of ­increasing natural disasters, fuel cell technologies
than 750,000 customers in the dark, some for sev- ­will play an increasing role over time.
eral days as they waited for power to be restored.
• March 7: Heavy rain, wind, and ice in Raleigh, North
Carolina, knocked out power for 463,000.
• July 9: Some 500,000 customers experienced a
blackout after a tornado struck the New ­York area.
• November 26: A powerful nor’easter blacked
out 350,000 customers across New Hampshire,
Massachusetts, and New York.
• October 2: A nasty weather front left more than
250,000 customers without electricity in Arlington,
Texas. The local utility reported that a large num-
ber of downed lines and power poles made the
­restoration process longer than normal.

© 2015 General Electric Company. All rights reserved.


This material may not be copied or distributed in whole 34
or in part without prior permission of the copyright owner.
VI. CONCLUSION

VI. CONCLUSION

35
GE proudly announces the addition of the FC-CC to its distributed
power portfolio. Now, even more than before, GE’s distributed
power solutions give customers of all types the ability to generate
reliable, sustainable power whenever and wherever it is needed.

Technology innovation continues to transform the a 1.3 MW FC-CC demonstration system en route to
world in new and unexpected ways. GE’s new FC-CC the development of a full-size 10 MW system.
combines two century-old technologies with the
latest innovations in advanced manufacturing to GE proudly announces the addition of the FC-CC to
produce a distributed power generation technology its distributed power portfolio. Now, even more than
that offers a combination of benefits not previously before, GE’s distributed power solutions give custom-
available. In a world that is increasingly character- ers of all types the ability to generate reliable, sus-
ized by environmental constraints and a rising tide of tainable power whenever and wherever it is needed.
natural disasters, FC-CC’s benefits—such as reduced At GE, we are humbled by the opportunity to help
environmental emissions and net water production, usher in a new energy era—just as we did in 1882
high efficiency, dispatchability, and reliability—make when Thomas Edison built the world’s first power
it an ideal technology in today’s changing energy plant. Together, let’s power the future.
landscape. Other drivers such as the age of gas and
the rise of distributed power further reinforce the
positive momentum for natural gas fuel cells.

The age of gas promises to make gas more widely


available across the globe. The rise of distri­buted
power promises to usher in an era of integrated
power systems, which contain a combination of cen-
tral and distributed resources interconnected by
increasingly intelligent transmission and distribu-
tion systems. The FC-CC provides the right blend of
­characteristics to thrive as TIGERs. Indeed, TIGERs
and self-generation fuel cell power plants have start-
ed appearing in markets as diverse as the United
States and South Korea.

Taken together, these trends tell us that the outlook


for fuel cells is positive. Experts believe that annu-
al MW-scale stationary fuel cell installations will
increase by 400 percent by the end of the decade.
We believe fuel cells have now reached a tipping
point. That’s why we created GE-Fuel Cells, a start-
up ­company within GE that is currently developing­

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APPENDIX

APPENDIX: FUEL CELL


TECHNOLOGIES &
APPLICATIONS

TECHNOLOGIES • Hydrocarbon
 fuel such as natural gas is reformed
to produce hydrogen, water, carbon monoxide, and
A fuel cell is a device that converts the chemical carbon dioxide;
­e nergy in natural gas or hydrogen into electric- • both
 the reformate and oxygen from ambient air
ity and water through an electrochemical reaction are fed into the fuel cell;
with ­o xygen. Fuel cells are similar to batteries, • the
 reformate flows on the anode side, a negatively
­except they rely upon external fuel sources instead charged electrode, where it combines with oxy-
of stored chemical reactants. While there are differ- gen ions traveling through the electrolyte from the
ent types of fuel cells, each is made up of three ­layers: cathode side to electrochemically react and form
an anode, an electrolyte, and a cathode. Here’s how water; and
fuel c­ ells work: • the
 electrons create an electrical current in the
­external circuit that becomes the useful energy
(electricity) desired from the product.

37
Figure 10. How fuel cells work All fuel cells operate in the same manner and have the same primary components: an
anode, a cathode, a catalyst, and an electrolyte. Differences in the electrolyte, the catalyst,
and the operating temperatures distinguish different fuel cell types from each other.

Hydrogen

Anode

Electricity

Cathode

Oxygen Water

Source: GE.

Differences in the electrolyte, the catalyst, and the Although fuel cells have been under development
operating temperatures distinguish different fuel since the nineteenth century, recent innovations by
cell types from each other. To generate the desired GE and others are making fuel cells increasingly eco-
amount of electricity, fuel cells can be combined nomically competitive.
in ­stacks.
There are several types of fuel cells. Each fuel cell
Fuel cells can be used in a variety of ways. For exa-­ type has its own unique properties (e.g., type of cat-
mple, they can be used in cars and trucks to convert alyst, operating temperature), characteristics (e.g.,
hydrogen into electricity to power the vehicle. They electrical efficiency, size) and most suitable appli-
can be used in small, portable applications to pro- cations (e.g., power, transportation, portable). The
vide electricity when and where it is needed. They most common fuels cells are the alkaline fuel cell
can also be used as stationary electricity generators. (AFC), the d
­ irect methanol fuel cell (DMFC), the molten

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or in part without prior permission of the copyright owner.
APPENDIX

Table 2. Fuel cell types There are several types of fuel cells. Each fuel cell type has its own unique properties,
characteristics, and most suitable applications.

Electrolyte Operating Efficiency Common Fuels Primary Benefits


Fuel Cell Type Temp. % Size Applications

Alkaline (AFC) Aqueous solution 90–100ºC 60 % 10– Hydrogen Controlled Small size, high
of potassium 100 kW aerospace and efficiency, water
hydroxide underwater production
soaked in environments
a matrix

Direct Methanol Perfluorosulfonic 60–130ºC 30–40 % <1–50 kW Methanol Portable Ease of fuel
(DEMFC) acid power, small transport,
vehicles energy density

Molten Solution of 600–700ºC 50 % 300 kW– Reformed Distributed High efficiency,


Carbonate lithium, sodium, 3MW Hydrocarbons power fuel flexibility,
(MCFC) and potassium combined heat
carbonates and power
operation

Phosphoric Acid Phosphoric acid 150–250ºC 40 % 100– Reformed Distributed


(PAFC) soaked in a 400 kW Hydrocarbons power
matrix

Polymer Perfluorosulfonic 80ºC 30–40 % 1–100 kW Reformed Transportation Low


Electrolyte acid Hydrocarbons temperature,
Membrane flexibility, higher
(PEMFC) power density

Solid Oxide Yttria stabilized 700– 60 % 1 kW– Reformed Distributed High efficiency,
(SOFC) zirconia 1000ºC 10 MW Hydrocarbons and utility- fuel flexibility,
scale power combined heat
and power
operation,
amenable to
hybridization

Source: Fuel Cells 2000. (2015). Types of Fuel Cells. Retrieved April 2015.

c­ arbonate fuel cell (MCFC), the phosphoric acid fuel • Portable


 fuel cells are used to charge non-station-
cell (PAFC), the polymer electrolyte membrane fuel ary products. Portable fuel cells are used in recre-
cell (PEMFC), and the solid oxide fuel cell (SOFC). Each ational settings (campers, boats, lighting), military
fuel cell type is described in Table 2. applications such as skid mounted generators,
portable products, and small personal electron-
APPLICATIONS ics. Portable fuel cells are designed to be moved.
They come in sizes ranging from 1 W to 20 kW.
Fuel cells are already used in a variety of applications The ­primary fuel cell technology used in portable
around the world. The most common applications ­applications are PEMFC and DMFC. An estimated
are portable, stationary power, and transport. 22,000 portable fuel cells shipped in 2014. xx

39
• Stationary fuel cells are intended to remain fixed
in a single location. Stationary fuel cells typically
­provide primary or backup power and sometimes
heat as part of combined heat and power (CHP)
applications. They include large utility, commercial,
and industrial-scale power applications as well as
smaller ­micro-CHP applications. Stationary fuel
cells come in sizes ranging from kilowatts to mega-
watts. The primary types of fuel cells used in sta-
tionary applications include SOFC, PEMFC, MCFC,
AFC, and PAFC.
• Transport fuel cells are used to provide propulsive
power in transportation vehicles as primary or
auxiliary power units. The types of fuel cell vehi-
cles include fuel cell electric vehicles (FCEV), trucks,
and buses. Transport fuel cells range in size from
1 kW to 100 kW. The most common fuel cell type
used in transportation is PEMFC, which was the
type of fuel cell used in the first fuel cell vehicle
in 1966.

On a MW-basis, stationary fuel cells are estimated to


have accounted for 84 percent of fuel cell shipments
in 2014. Transport fuel cells accounted for 15 percent,
and portable fuel cells accounted for the remain-
ing 1 percent. xxi The most commercially viable fuel
cell applications today include portable applications,
stationary backup power applications, small auxilia-
ry power units for recreational vehicles, and fork lifts.
The economic viability of fuel cell applications will
continue to evolve as fuel cell technologies mature
over the next decade.

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NOTES

NOTES

i Brandon Owens, The Rise of Distributed Power xiv O  rganization for Economic Co-operation and
(General Electric, 2014). Peter C. Evans and Development, OECD Environmental Outlook to
Michael F. Farina, The Age of Gas & The Power 2030: Summary in English (2008).
of Networks (General Electric, 2013). xv World Resources Institute, Aqueduct: Measur-
ii US Department of Energy Fuel Cell Technolo- ing and Mapping Water Risk (2015). Retrieved
gies Office, 2013 Fuel Cell Technologies Market April 2015, from http://www.wri.org/our-work/
Report (2014). This report was compiled and project/aqueduct
written by Sandra Curtin and Jennifer Gangi xvi Sandia National Laboratories, Energy-Water
of the Breakthrough Technologies Institute, Nexus Overview (February 2015). Retrieved
Inc. in Washington, DC. from http://energy.sandia.gov/climate-envi-
iii 4th Energy Wave, Fuel Cell Annual Review ronment/water-security-program/water-in-
2013 (2014). frastructure-security/energy-water-nex-
iv Scott Samuelsen, “What fuel cells bring to the us-overview/
power equation,“ Intelligent Utility Magazine 7, xvii Torcellini et al, “Consumptive Water Use.”
no. 1 (Spring 2015): 38–39. xviii E
 aton, Blackout Tracker: United States Annual
v Paul Torcellini, N. Long, and Ron Judkoff, Con- Report 2014 (2014).
sumptive Water Use for US Power Production xix US Department of Energy Office of Electricity
NREL/TP-550-33905 (2003). Delivery and Energy Reliability, Comparing the
vi US Department of Energy Fuel Cell Technolo- Impacts of Northeast Hurricanes on Energy In-
gies Office, 2013 Fuel Cell Technologies Market frastructure (2013). This report was prepared
Report. by the Office of Electricity
vii Smithsonian Natural Museum of American xx Fuel Cells 2000, The Fuel Cell Industry Review
History, Fuel Cells: Discovering the Science 2014 (2014).
(April 2013). Retrieved from http://american- xxi Ibid.
history.si.edu/fuelcells/origins/origins.htm
viii Owens, Rise of Distributed Power. Evans and
Farina, Age of Gas.
ix Peter C. Evans and Marco Annunziata, Indus-
trial Internet: Pushing the Boundaries of Minds
and Machines (General Electric, 2012).
x 4th Energy Wave, Fuel Cell Annual Review.
xi Lisa Jerram, “In Europe, Fuel Cell Vehicles
Accelerate,“ Navigant Research (blog), July 16,
2013, http://www.navigantresearch.com/tag/
fuel-cell-vehicles
xii US Energy Information Administration, Annual
Energy Outlook 2014 DOE/EIA-0383 (2014).
xiii Ibid.

41
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