75 Green Businesses You Can Start to Make Money and Make a Difference. Glenn Croston
to drive continued growth for generators from 3 million units in 2006 to 7.1 million by 2011, according to market research group SBI. The market for generators includes backup generators; generators that provide power at remote locations and construction sites; and mobile generators. Engine-based generators running on diesel fuel are loud, polluting, and require constant maintenance to ensure they are ready to go at a moment’s notice.
Fuel-cell technology to generate electricity is well-established. Fuel cells generate electricity directly from chemicals such as hydrogen by drawing the electrons from the fuel and pulling electrons through the system to create a current. Unlike diesel engines that are noisy and burn fuel to produce energy, fuel cells are quiet and shuttle electrons around to produce energy. Even better, when hydrogen is used as fuel, water is the only exhaust. Despite a great deal of talk and big expectations about fuel-cell cars, fuel cells are appearing more quickly in backup power generation.
In general, fuel cells still are an expensive way to produce electricity, which is one of the factors limiting their use in cars. For bulk power generation in the United States, such as using fuel cells as the main source of power for a home or business, fuel cells have a hard time competing with the price of electricity from the grid. But for backup power, fuel cells don’t need to compete; they are on only when the grid is down. That makes backup power a nice niche to start with.
Fuel-cell generators won’t replace diesel generators only for backup power; they will open new markets as well. You cannot run a diesel generator indoors without risking asphyxiation, but this is not a problem with some fuel cells. The Federal Bureau of Reclamation has compared several backup options—including ultra-capacitors, flywheels, batteries, and engines—and found that only fuel cells provide all the desired characteristics. The ability to use kilowatt-size generators in residential homes, office buildings, and other indoor settings will reach millions of additional customers who were previously not part of the generator market.
COMPETING TECHNOLOGIES
Different fuel-cell technologies being developed and marketed include hydrogen and methanol fuel cells. Hydrogen’s storage and supply are not yet routine, leading those in the small-generator markets to continue developing alternative systems that do not require hydrogen gas.
Many fuel cells are powered by hydrogen as a fuel. Hydrogen has many advantages as a fuel. However, the storage and distribution of hydrogen as a compressed flammable gas is not routine. Most homeowners are probably not ready to store compressed-hydrogen tanks inside their homes. Power Air Corp. in Livermore, California, and other companies are searching for hydrogen alternatives, such as zinc fuel cells, that lack these concerns. Power Air’s fuel cells turn zinc pellets into zinc oxide to supply electricity without emissions. In addition, Power Air plans to recycle spent zinc oxide into new zinc pellets, closing the loop. As long as the Power Air system has zinc and air, it keeps producing power and can run indoors without a hitch. Competitively priced fuel cells that can run indoors without hydrogen will find a ready market.
ECO-ISSUE
One big advantage of fuel cells is that they can work at any time. Solar power needs sun, and wind power needs wind, so if it’s not sunny or windy, these options won’t do the trick. Fuel cells turn on with the flip of a switch, day or night, wind, rain, or shine.
Some industries produce hydrogen, making the fuel basically free. HydroGen Corporation of Cleveland, Ohio, is planning megawatt-size fuel cells powered with waste hydrogen from industries such as steel. FuelCell Energy of Danbury, Connecticut, also is developing large, industrial-scale fuel cells with a different chemistry, using molten carbonate.
INDUSTRY INFO
The U.S. Fuel Cell Council supports the fuel-cell industry with resources and information about current developments. Learn more at usfcc.com.
Markets for sales of fuel cells to provide emergency power will include applications that put a premium on uninterrupted power. These would include hospitals, fire stations, police, communications systems, cell phone networks, banks, and information systems. In the paper “The Future of Fuel Cells” (Electrical Construction and Maintenance magazine, March 4 2005), the economics affecting the uptake of fuel cells in the emergency power are discussed, projecting that fuel cells must provide power at $1,000 per kw to achieve sales to more customers, a goal that is fast approaching. According to Wintergreen Research, the market for stationary fuel cells could grow to $17 billion by 2012, as costs decline with increased production volume (“Stationary Fuel Cell Market Opportunities, Strategies, and Forecasts, 2006 to 2012,” Wintergreen Research Inc. 2006, wintergreenresearch.com).
RELATED TREND
Fuel cells also might replace batteries for mobile uses, such as laptops. Methanol fuel cells are a problem to use on airplanes since methanol is flammable. There is an opportunity to invent a fuel cell for laptops using a nonliquid, nonflammable fuel that does not raise objections for airplanes.
The opportunities in fuel-cell backup power include:
For all of the fuel-cell technologies, cost is an issue, and reducing costs will open up new possibilities. As long as our power supply remains uncertain, the great number of potential customers afraid of getting left in the dark ensures a bright future for fuel-cell backup power.
OPPORTUNITY 9 Negawatt Installation and Verification
| The Market Need | Increased energy efficiency |
| The Mission | Use markets to stimulate energy efficiency |
| Knowledge to Start | Mechanical, engineering, energy efficiency, green trading |
| Capital Required | $$ |
| Timing to Start | Months to years |
| Special Challenges | The market for negawatts (white tags) is just getting started |
As the economy grows, consumption of electricity also grows steadily, triggering the construction of