meeting report
Fuel Cells for Portable Applications Conference
Boston, MA USA
September 5-6, 2002
- Portable Energy Think Tank
THE CONFERENCE ON “Fuel Cells for Portable Applications” was held at the Hilton Back Bay Hotel in Boston. The event was sponsored by EyeforFuelCells, a London-based company that runs executive-level conferences, publishes newsletters and builds web communities for various industries. (See www.eyeforfuelcells.com for their newsletter and pay-for-view premium content site which includes transcripts and PowerPoint presentations from this conference.) About 150 people representing a wide cross-section of the fuel cell industry attended the conference, which provided a mix of presentations, panel sessions, and networking opportunities. The following are synopses of most of the presentations along with contact information.
Revolutionizing the Stack Manufacturing Process
There has been a lot of attention to and emphasis on the material cost of fuel cells. And rightfully so, with platinum and precious metal catalysts standing out as top line cost items on the bill of materials. Assembly costs have received much less attention, although they also loom as a major cost obstacle to a mass market pricing. Consider that fuel cell stacks are sensitive to compression and impact and 18 cells must be layered to get a nominal 12 volts out. Further, each layer is typically gasketed to plumb air, fuel and cooling water. The general thinking on reducing labor costs here is understandable and probably follows the line of thinking that automation and manufacturing engineering can be applied to stack designs once they are finalized and customers clearly identified. Protonex has jumped ahead of this type of linear product and business planning. It has attacked the fuel cell business from the standpoint of what can be done to make the fuel cell stack production-ready today. Its solution is an insert injection molding approach to fuel cell stack construction. Borrowing from technology used to make filtration cassettes in the pharmaceutical industry, the electrodes are placed into a mold and the seals and housing are formed around them. This solution not only solves the cost problem – the claim is that it will cost 1/5 of the cost of conventional methods – but apparently also results in a more reliable stack that may even weigh less. There are no dynamic seals, relaxed tolerances can be applied to the materials used, and roll-to-toll MEAs can be implemented. Protonex provided an idea of stack cost for various order quantities and sizes; it is summarized in the following table.
At the moment, Protonex is concentrating on PEM fuel cells in the10W-3000W size range. Perhaps the question to ask is, “Will they be the Dell of fuel cell stacks?”
Presenter: Paul Oesener, Chief Technology Officer, Protonex Technology Corporation, Marlborough, Massachusetts,
www.Protonex.com.
Technological Breakthrough – A New Concept for Portable Fuel Cells
The French Atomic Energy Commission (CEA) engages in R&D outside of nuclear energy. It has programs in fundamental research, defense, and technology for industry. One of the programs under the technology-for-industry umbrella looks at high potential payback areas in new energy technology for the information and communication industry. The starting point of this group is that there is a major opportunity for power in portable communicating tools (laptop computers, cellphones) if it can meet present battery size and weight but provide the combination of fast-charging independence from the AC grid and longer operating time. These requirements brought them to fuel cells. In their analysis of fuel cell technology, they reached two key conclusions regarding the ability of the technology to meet the size constraints they had set: 1) existing approaches to membrane assemblies would have to be abandoned; and 2) an alternative source of hydrogen would need to be found. As a substitute for membrane-type electrodes, they embarked on a program to use microelectronic fabrication techniques and processes for core fuel cell architecture in September 2000. At the present time, they have achieved electrode performance of 40mW/cm2, using silicon micro fabrication processes.
On the issue of fuel, among the choices considered were pressurized hydrogen, metallic hydrides, carbon nanotubes, sodium borohydride and direct methanol. None was deemed capable of meeting the size constraints. Either the fuel and container itself or the hardware to handle the fuel would be too large. They embarked on a search for alternatives. The result is a patent for an on-demand hydrogen gas-generating device that meets their size criteria. In developing this technology, they enlisted an industrial partner, the SNPE group, which has experience in gas generation with energetic materials in products such as automotive air bags. On the strength of these developments, CEA will be expanding its staff in the energy program from about 20 to 35 people.
The presenter of this paper was Didier Bloch, Manager, Energy for Electronics Program, French Atomic Energy Commision (CEA), Grenoble, France, email: blochd@chartreuse.cea.fr
Direct Methanol/Ethanol Fuel Cells – A Non-PEM Route
The Medis direct liquid ethanol/methanol fuel cell has its technical roots in the former Soviet Union and is fundamentally different from the Direct Methanol Fuel Cell systems being developed by other companies. The Medis fuel cell uses a basic electrolyte and its own electrodes, whereas the other systems use an acid electrolyte and PEM electrodes. The Medis approach offers several advantages. The cathode does not require precious metal catalysts such as platinum (Pt). The anode can work with low levels of Pt, which Medis is trying to reduce to zero. Fuel concentration can be high, 30-35% compared with 5-7% in the DMFCs. Power density is about 80mW/cm2. No water management system is needed. Medis is not using any forced air system. One disadvantage is that the electrolyte must be changed periodically. However, the claim is that there is an easy way to do this during one of the refuelings. The recent change to using ethanol avoids the limitations placed on methanol, such as prohibition on commercial aircraft. A 45cc fuel cell can provide 1.5W at 300Wh/liter.
Medis has cooperation arrangements with several partners related to military evaluation – General Dynamics, Israeli Military, and Sagem SA, a European communications company. Medis’s business plan is to seek other partnerships for manufacturing and distribution while it concentrates on R&D.
Presenter: Robert K. Lifton, CEO, Medis Technologies, New York, New York, www.medisel.com
Fuel Cells for Aircraft
There are a several applications for fuel cells in aircraft: reserve power, auxiliary power, regenerative fuel cell combined with solar for “perpetual flight,” and propulsion in piloted aircraft. James Dunn is involved in demonstrating fuel cell propulsion for piloted aircraft. He comes by this project through an organization called Foundation for Advancing Science & Technology in Education which teams students with scientists to come up with solutions. Dunn is also president of Advanced Technology Products, which is building the aircraft, and he is the chief technical officer for NASA’s New England Technology Transfer Center. The aircraft selected for conversion from an internal combustion engine is a two-person, single propeller, all carbon frame, Lafayette III. The project demonstrates a number of points. One is just how good gasoline IC engines are – they deliver 2600Wh/kg at 20% efficiency. However, the promise of fuel cells is also the promise of an electric propulsion system- increased reliability, low noise, easier maintenance, lower life cycle cost and no emissions. The main obstacles in reaching these benefits are wringing out the necessary power and weight from the fuel cell-electric propulsion system, developing the hydrogen storage/generation system and resolving heat transfer problems. The three-phase program expects to have a fuel cell plane in the air with a range of at least 500 miles by August 2004. See www.aviationtomorrow.com.
Presenter: James Dunn, Center for Technology Commercialization, Westborough, Massachusetts, jdunn@ctc .org.
Do Fuel Cells Fit the Model of a Disruptive Technology?
In the book Innovator’s Dilemma by Clayton M. Christensen, the concept of “disruptive technologies” is developed. A disruptive technology is one that at the outset is technically inferior to the mainstream solution, has only a very small niche of interested users, and is typically dismissed by the dominant companies in the industry because it isn’t what their mainstream customers want or are willing to buy. However, the disruptive technology goes on to major success because it has other features its supporters value and these, in concert with its potential to exceed existing technology, eventually emerge through continuous development. In this process, the market for the disruptive technology expands to include new users. Eventually, the technology is propelled to success as the mainstream begins to convert, accepting it as the new standard. The story of the personal computer displacing the minicomputer is one example of this process.
Dr. Frank Gibbard of H Power in his presentation poses for consideration whether fuel cells might fit the disruptive technology concept. Fuel cells are not competitive with batteries in portable devices. While the potential for higher energy density exists and the feature of instant recharging is attractive, only small niche markets (e.g. military) may be able to take advantage of these benefits. Similarly, with backup, standby and remote power applications where internal combustion engine generators are the mainstream technology. Here, fuel cells are valued in some niche applications over IC engines for quiet operation, reliability, and no-emission operation.
Another interesting point in disruptive technology concept is that alternative distribution channels wind up playing a part in championing their cause. So far, this also seems to be true in fuel cells in the portable device area. The major primary battery makers have eschewed any public participation in fuel cells while major rechargeable battery makers have a mixed record. What will bear watching as to whether the hydrogen economy has begun and fuel cells fit the disruptive technology model will be the degree of success achieved by fuel cells in the niche applications and their subsequent progress along the technical performance and cost curves. A factor in the fuel cell’s favor is that the sustaining technologies of batteries and IC engines seem to have reached plateaus in their technical and cost evolution.
H Power is presently offering a modular 500 Watt, 48 VDC direct hydrogen fuel cell system that can be combined to custom configurations, including conversion to 120VAC.
H Power has a wide experience base in fuel cell systems, having developed systems for laptop computers, brief-case power supplies, wheelchairs, portable military power, highway message signs and cell phone towers.
Presenter: Frank Gibbard, CEO, H Power, Belleville, New Jersey, www.hpower.com.
Metal Hydride Storage for Portable Applications
HERA Hydrogen Storage Systems Inc. is a jointly owned venture of Shell Hydrogen, GfE, and Hydro-Quebec CapiTech. It is engaged in the commercialization of metal hydride hydrogen storage products.
Metal hydrides have a number of attractive features as a storage medium for hydrogen. They have good volumetric energy density, store hydrogen at low pressure, provide pure hydrogen, can be used for multiple discharge and charge cycles without significant capacity loss, have good environmental characteristics, and the containers may be conformable to the product.
HERA has been engaged in several demonstration projects to explore metal hydride storage and fuel cell solutions for portable power. One study with the Fraunhofer Institute looked at powering a camcorder with a 10W PEM FC and a 35Wh metal hydride tank. The graph below compares the metal hydride solution to other power sources over a range of capacities. The data suggest that above 35Wh, metal hydride storage with a PEM FC offers a volume advantage. Another project examined metal hydrides for portable computer fuel cells. The Fraunhofer Institute coordinated with partners Siemens Nixdorf and LG Technology; the study looked at external and fully integrated designs.
Presenter: Marc Hubert, Director, Business Development, HERA Hydrogen Storage Systems, Longueuil, Quebec, Canada,
www.herahydrogen.com.
A Report from the Fuel Cell Marketplace
The FuelCellStore.com is an Internet site that was created three years ago with the vision of being a “nexus” for the fuel cell industry, that is, a core and connecting link between the fuel cell industry and consumers. To get a better idea of the FuelCellStore.com and its business consider the following — it is self-capitalized, has made more than 2,000 sales mostly to education and research, has 30,000 visitors per month, uses a sales force of 38 commission-only sales agents with day jobs, and lists 6,000 self-identifying leads, that is, customers who say, “When you get product X, we’ll buy it.” As you can see, their most common answer to customers at this point is, “That product isn’t available yet.” They offer fuel cell systems from under one watt to 200kW. Some of their observations about the present marketplace make for interesting conversation starters. For example: The mass market is unaware of fuel cells; niche markets and early adopters are frustrated because of unavailability of product; many inquiries are for home fuel cells for off-grid power, mismanaged expectations have hurt credibility (e.g., stories of fuel cell cars available in 2001); and education is a good potential market. The 12-year-old in junior high is the fuel cell market; today’s college student doesn’t have the fuel cell hardware to learn the technology; and school supply companies don’t sell the fuel cells in their catalogs because it is easier selling the test tubes they know. It is interesting to tie the thought from the book Innovator’s Dilemma to one made in another presentation at this conference by H Power regarding new distribution channels being the sponsors of disruptive technologies to this company. Perhaps the best way to capture the message of this presentation would be to visit their website, www.fuelcellstore.com.
Presenter: Stephen Chase Honikman, Market Strategist, FuelCellStore.com, Boulder, Colorado, www.fuelcellstore.com.
Can Fuel Cells Cross the Chasm from Small Niche Applications to Mass Commercial Markets?
Palcan Fuel Cells Ltd. makes PEM fuel cells in the 100W to 5kW range focusing on pure hydrogen as the fuel. The portable portion of the business looks at generators and power tools. The mobile area deals with bikes, scooters, marine and auxiliary power for RVs. Palcan sees cost and lack of validation of the fuel cell as the major industry problem in fuel cells competing with batteries and internal combustion engines. Palcan’s experience is that there is no application that will pay $10,000/kW that leads to a volume market that gets you over the Catch-22 of cost and volume. The problem is bigger than any one company, and a true industry-wide consortium is needed. Some type of bridge funding and organizational support to get over the initial hurdles may also be required. A hydrogen storage and distribution system may be a good place to start.
One good example of a potential regional fuel cell market is Asia. Countries such as China and India have the potential to be the first major market for fuel cells because of their fast-growing demand for energy for transportation, business and the home in very densely populated cities. They have a major opportunity to leapfrog Western technology and avoid the pollution that will occur in their cities with traditional energy solutions. However, to make a fuel cell solution a reality, significant financial, technical, organizational, and political resources will be needed.
Presenter: Jim Macbeth, CEO, Palcan Fuel Cells Corp., Burnaby, British Columbia, Canada, www.palcan.com.
Li-Ion Batteries versus Fuel Cells – When Will DMFCs Be A Viable Alternative?
Kurt Kelty, director of business development for Panasonic, very clearly makes the case for why Li-ion batteries will be a tough technology to displace in small portable electronic products. His presentation can serve as a checklist that fuel cell developers must address if they are targeting mainstream consumers in portable computers, PDAs, and cell phones. First is that power sources must be small, light and thin. Li-ion cells can demonstrate 400Wh/liter today and project 500Wh/liter in 2003. Plus, cell thickness can get down to 3mm.
Fuel cells have not yet achieved these kinds of energy densities or form factors at the present stage of the technology in the low watt-hour capacity systems typical in small portables. Figures that quote the fuel energy density in the fuel cells but neglect the balance of plant and stack fail to present the miniaturization issues in this hardware.
Power is another area requiring thorough comparison. Loads are highly variable in portable devices and range from sleep modes to high pulses for wireless transmitting. Li-ion batteries routinely handle these loads. Fuel cells have not demonstrated such load following in the present stage of development. Moreover, fuel cells are at a stage where technical paths must still be defined for water and heat management, orientation-insensitive operation, and disposition of effluents such as methanol and CO. In addition to the technical issues, an infrastructure must be created for fuel delivery and transportation. Finally, it is important to take note of the price curve for Li-ion. With world production volumes at very high levels and new facilities coming on line in China, Li-ion prices are one-tenth what they were a decade ago. Fuel cells, on the other hand, must contend with platinum cost trends that remain high and the cost of potentially expensive balance of plant components.
All of this is not to say that fuel cells do not have technical potential, but it does point out that initial applications are more likely in markets with larger form factors, much less sensitivity to pricing, and low, steady load profiles.
<Figure 1 > <Figure 2> <Figure 3>
Presenter: Kurt Kelty, Director of Business Development, Panasonic Technologies, Cupertino, California,
keltyk@research.panasonic.com, 408-861-8408.