FuelCellStocks.Com
Investing in Fuel Cells and the Hydrogen Economy

Fuel Cell News

August 15, 2005

Midtown Fuel Cell a Glimpse of the Future

Source: Daniel Hendrick, Newsday

New York City's latest foray into alternative energy looks more like a construction trailer than a 21st century technological breakthrough. But the beauty of a 28-foot-long white box atop a terrace in midtown Manhattan is much more than meets the eye.

This new type of fuel cell, humming above 52nd Street, generates 10 percent of the Sheraton New York Hotel & Towers' electricity while serving as a backup supply in case of a blackout. In doing so, it creates less than 7 percent of the pollution and greenhouse gases given off by a typical New York City power plant. It's also engineered for efficiency, cannibalizing its own heat to create hot water for hotel guests and the laundry.

The $1.8-million miniature power plant is the first of its kind in New York City, marking the broadening of a technology that many hope will one day power everything from cell phones and laptops to the family car.

"In the history of mankind, we've always burned fuel, whether it's wood for fire, or whether it's heat energy or electricity," said Jerry Leitman, chief executive of FuelCell Energy, the Danbury, Conn., company that built the Sheraton's fuel cell. "With a fuel cell, for the first time, you are not burning anything. That's a whole different mind-set."

How it works

Fuel cells may sound like space-age stuff, but the principle behind them is no more complicated than middle school science.

The fuel cells draw hydrogen, or a fuel containing it, through an electrode that splits the gas into electrons and protons. After passing over a catalyst that speeds up the reaction, the hydrogen combines with oxygen to produce water, electricity and heat.

Depending on the catalyst used, there are nine kinds of fuel cells, and four are used in large commercial projects such as the Sheraton. The hotel's fuel cell is the first in the city to use molten carbonate, a solution of lithium and potassium carbonate.

The 16 other commercial fuel cells in the city use phosphoric acid as their catalyst - including the city's first, installed in 1992 at St. Vincent's Hospital Staten Island. Those are the oldest and most common.

The differences between the old and new cells aren't staggering, said Robert Wichert, technical director for the U.S. Fuel Cell Council, the leading trade group based in Washington, D.C. The advantage of the newer one is its heat. The 394 chambers in the fuel cell operate at 1,200 degrees Fahrenheit, three to four times hotter than the earlier model, creating more energy and making it more fuel-efficient.

Compared with traditional combustion, however, all fuel cells have advantages. They reduce dependence on foreign sources of oil, which, at about $60 a barrel, is trading near its highest price ever. In stationary installations like the Sheraton's, they generate power where it's needed and take stress off of old transmission lines.

Fuel cells' biggest selling point is their lack of impact on the environment. According to the Strategic Center for Natural Gas & Oil in Washington, D.C., fuel cells produce less than 1 percent of the carbon monoxide, soot, and nitrogen and sulfur oxides (the building blocks of acid rain) than does the average fossil fuel plant. Fuel cells emit no mercury or dioxin, two of the most harmful by-products of power plant combustion.

About half of the fuel cells in the city use a truly renewable fuel - human waste. Eight fuel cells at four city-owned wastewater treatment plants, located in Brooklyn, Staten Island and the Bronx, are powered by a gas that is produced when bacteria break down sewage.

Yet for the most part, fuel cells still are a fossil-fuel technology. Three of every four large fuel cells in the United States, including the Sheraton's, get their hydrogen from natural gas. For that reason, they are a transitional step toward renewable sources such as water, said Ashok Gupta, director of air and energy programs at the Natural Resources Defense Council. Engineers and industry representatives say water will not be a source of hydrogen until an efficient extraction method is developed.

Some obstacles

There have been some bumps in the road during the 13 years that fuel cells have operated in the Big Apple. For instance, the units at the sewage treatment plants don't switch between fuels smoothly and not all of the sewage gas is collected, said Fred Sachs, chief of the city Department of Environmental Protection's regulatory coordination division.

The Durst Organization, which owns the Conde Nast building, didn't count on small amounts of steam escaping from its two fuel cells that were installed in 2000.

"It was somewhat problematic because the steam condensed on some of the structure outside, and created kind of a big icicle that dripped," said Jody Durst, the organization's co-president. Insulation was added to the unit to prevent the steam from escaping, he said.

Some fuel cells cannot be used when they would seem to be needed the most. During the August 2003 blackout, the Conde Nast building shut down its fuel cells - a move that Durst said Con Edison required because of safety concerns.

Whether a fuel cell must shut down in a blackout depends on the unit, said Peter Meloro, a Con Ed manager for marketing and sales.

Some fuel cells that are or can be disconnected from the power grid can stay on.

The first fuel cell technology to reach the average American consumer will come in much smaller packages, miniaturized for cell phones and laptop computers, maybe in the next two or three years. Industry analysts say fuel cell cars probably won't be a reality in most of the country for another 10 to 15 years, until an infrastructure for hydrogen fueling is built.

How much it costs

The biggest hurdle facing the technology is cost.

John Lembo, director of energy for Starwood Hotels & Resorts, which owns the Sheraton chain, expects the New York hotel's $3.5-million annual utility bill to drop by $100,000 because of the new fuel cell.

But there would be no savings if the cell weren't heavily subsidized by taxpayers, as many fuel cell projects are. The New York State Energy Research & Development Authority put $920,000 toward the Sheraton's fuel cell, with the remaining cost picked up by a private company.

To date, the development authority has spent $2 million on fuel cells that are up and running, and the agency has commitments to spend another $3 million on cells in development and design, according to spokeswoman Colleen Ryan.

Seventeen other states have established funds or programs that boost clean-energy technologies like fuel cells. And the federal government is one of the technology's largest supporters. Just last week, President George W. Bush signed a comprehensive energy bill that appropriates nearly $4 billion for hydrogen and fuel cell research and projects.

"You have to have government support to pull this off. If they really believe in the technology and get it out there, that will bring the price down and make fuel cells more visible to the public," said Jennifer Gangi, program director of Fuel Cells 2000, a Washington, D.C., nonprofit group.

"It's like the first computers," she added.

Daniel Hendrick is a frequent contributor to Newsday.

Fuel cells in the city

Seventeen commercial fuel cells are scattered across 11 locations in the New York City.

Fuel + Oxygen

Doesn't run down like a battery; keeps operationg as long as it is supplied with fuel and air.

Electric + Waste products

When hydrogen gas is used for fuel, water is the only waste product.

HOW A FUEL CELL WORKS:

Cell is a sandwich of two electrodes with a membrane in between.

Hydrogen passes over - Membrane + Oxygen (air) passes over

negative electrode positive electrode.

Most efficient fuel: Pure hydrogen and oxygen from the air

Hydrogen

1. Hydrogn gas is fed into one side of fuel cell. A metal catalyst helps separate it into negatively charged electrons and positively charged protons.

Oxygen

2. Catalysts help nudge protons through the membrane. On the other side, the protons combine with oxygen.

- + Electrical circuit

3. The imbalance in the charge makes electric current flow. Current is sent through a circuit and can be used to power electronics, lights, or a motor.

Heat and water

4. Protons combine with electrons arriving from negative side, producing water.

THE BENEFITS:

Produces electricity for longer periods than batteries

Weighs far less than a conventional battery.

Can use a variety of hydrogen-rich fuels, including natural gas, coal-derived gas, landfill gas or alcohols.

Extremely efficient; emits virtually no pollution

LOCATIONS Total cells Kilowatts per cell

Manhattan

1. The Durst Organization/ 2 200

Conde Nast Building

2. Sheraton New York Hotel 1 250

and Towers

3. NYPD, Central Park Precinct 1 200

Brooklyn

4. DEP's Red Hook Wasterwater 2 200

Treatment Plant

5. DEP's 26th Ward Wastewater 2 200

Treatment Plant

6. New York Aquarium 1 200

Bronx

7. DEP's Hunts Point Wastewater 3 200

Treatment Plant

8. North Central Bronx Hospital 1 200

Staten ISland

9. St. Vincent's Hospital 1 200

10. Sun Chemical Corp. 2 200

11. DEP's Oakwood Beach 1 200

Wastewater Treatment Plant
Copyright 2005 Newsday Inc.


© FuelCellStocks.Com 2003-2005