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(E) Fuel cells |
By Nenad N. Bach |
Published
01/6/2002
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Education
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Unrated
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(E) Fuel cells
http://www.redherring.com/mag/issue86/mag-energy-86.html Does anybody from the CROWN knows more about Fuel Cells? Does Croatia have any research on the issue? Please let me know. Nenad Bach January 17, 2001 Trend number nine: Energy Fuel cells will reduce our reliance on oil and allow businesses and homeowners to produce electricity independently. By Lee Bruno From the December 04, 2000 issue Consequences: Fuel cells are likely to find their way into several thousand medium-sized businesses and homes over the course of the next year. This will lead to greater consumer and business awareness about fuel cell potential and an increase in fuel cell production for 2002. Winners: Fuel cell companies like Ballard Power Systems (Nasdaq: BLDP), H Power (Nasdaq: HPOW), Plug Power (Nasdaq: PLUG), Mechanical Technology (Nasdaq: MKTY) (owns 30 percent of Plug Power and Avista), International Fuel Cells (formerly ONSI), and automobile makers committed to fuel cell investments and technology like Ford Motor (NYSE: F) and DaimlerChrysler (NYSE: DCX). Losers: Local power utility companies, oil-burning power plants, and manufacturers of gasoline-driven power generators. See also: Dead ringers Fuel's Paradise Talking Points Think our trends are off base? Video: Watch Herring editors defend the top ten against George Gilder. Go to our discussion forum to debate energy issues It's been decades since fuel cells first were pegged as a savior technology for the energy industry. But during those years the technology -- which promises to replace nonrenewable energy sources like oil and also help reduce pollution -- seemed to be stuck in slow-lane development. Over the past nine months investors have glimpsed signs that fuel cells might soon have their day, and have begun plowing money into this promising technology, which Goldman Sachs estimates could represent a $95 billion market in ten years. Here's how they work. Fuel cells convert chemical energy into electricity by breaking apart hydrogen bonds in the water molecule and using that energy to generate a flow of electrons. The same process can be used to power everything from cell phones (see "Dead Ringers") and laptops to cars and buses. Some supporters of the technology have gone so far as to predict that fuel cells have the potential to transform the energy industry in the same way the microprocessor transformed the logic industry. Although the fuel cell concept dates back to the 1830s, it has only recently developed practical applications as an environmentally friendly and efficient energy technology (see chart Fuel's Paradise). One big motivation: costs associated with producing fuel cells have fallen dramatically, now approaching the 1 to 2 cents per kilowatt hour that it costs to produce electricity from oil or gas. Fuel cell projects are getting off the ground just as rising fuel and electricity prices are hitting consumers and businesses in the United States and Europe -- a situation that led to President Bill Clinton's September release of strategic oil reserves. Other factors are contributing to the sudden interest in fuel cells. Around the globe, governments have been adopting more stringent air pollution regulations. At the same time, states and nations are in the process of deregulating their power industries. Meanwhile, utilities are facing increased demands for reliable power. CELLER'S MARKET Buses powered by fuel cells were tested in California this year. By 2003, California emission standards will require 10 percent of cars sold in the state to have zero emissions. Other states have emission standards that will force large auto companies to produce these fuel cell-powered vehicles. DaimlerChrysler (NYSE: DCX), Ford Motor (NYSE: F), General Motors (NYSE: GM), Toyota Motor (NYSE: TM), and American Honda Motor are investing in fuel cells, either by developing or licensing fuel cell technology. Mercedes-Benz has announced that in Europe it plans to build 20 to 30 buses powered by fuel cells, which will go on sale in 2002. Several states are now in the process of deregulating their utility markets. Among them, Connecticut, Maine, Texas, Illinois, and California have passed regulations that require a specific percentage of renewable-energy sources. The market for fuel cells breaks into three distinct categories: residential, commercial, and transportation. Among the players in the residential market: H Power (Nasdaq: HPOW), Plug Power (Nasdaq: PLUG), and Avista (NYSE: AVA), all of which are now testing fuel cells in the field. Plug Power, in partnership with General Electric (NYSE: GE), is looking to produce fuel cells capable of delivering 250 to 300 kW, which is sufficient to supply power for a small hospital. The two leading companies developing both transportation and stationary residential and commercial uses are International Fuel Cells (formerly ONSI), which has been producing fuel cells for 20 years for the U.S. space program, and Ballard Power Systems (Nasdaq: BLDP). Fuel cell technology will give consumers the option of producing electricity for their own homes using a variety of small, 1 to 3 kW fuel cell generators being developed by Plug Power, which specializes in fuel cells for powering individual homes. An added benefit: consumers will be able to resell unused kilowatts back to the local utilities managing the power grid. What's both compelling and problematic about fuel cells is that several different types of fuels, primarily hydrogen, methanol, propane, and gasoline, can be used to run a fuel cell, thus opening up choices for consumers. However, there's a downside to this freedom of choice. Without a single, standardized fuel, it's hard to scale up the distribution network that would be capable of profitably delivering fuel to the automobiles and power generators. Not only that, but any new fuel choice will require conversion of existing gas stations and a host of additional conversion costs. In addition, critics of the alternative energy technology point out that it faces a classic supply-and-demand conundrum: will fuel cell manufacturers be able to increase production capabilities quickly enough to meet the expected demand? distributed by CROWN - www.croatianworld.net - CroWorldNet@aol.com Notice: This e-mail and the attachments are confidential information.If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail and the attachments is strictly prohibited and violators will be held to the fullest possible extent of any applicable laws governing electronic Privacy. If you have received this e-mail in error please immediately notify the sender by telephone or e-mail, and permanently delete this e-mail and any attachments.
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