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Fuel Cell Technology Opportunities & Challenges


             Two large-market opportunities could offer the level of manufacturing volume that would allow substantial reductions in the cost of distributed hydrogen production.
             The FCEV market is the one most discussed and seems to be on the verge of emerging around 2013-2016, particularly in Europe, Japan, and South Korea. The use of hydrogen production as a way to enable renewables by making them dispatchable is a market opportunity of substantial scale that has until recently received less attention than the vehicle opportunity. In this second large application, intermittent renewable electricity generation is used to produce hydrogen via electrolysis. The hydrogen is stored "for example, in large underground caverns or somewhat smaller above ground tanks "and later used for power generation. Alternatively, the hydrogen produced by renewables could be injected into gas pipelines for storage as well as transport to load centers (a concept referred to by some manufacturers as "power-to-gas ").
             In the very near term, two currently-served markets are providing valuable learning and initial scale. The use of fuel cells in forklifts employed in various industrial and warehouse applications has been an early market for hydrogen. This market could be substantial if all forklifts and similar products (e.g. airport ground equipment) were to switch to fuel cell power. Most customers to date have opted for delivered hydrogen rather than investing in on-site production. Back-up power at remote sites, such as cell towers, has also offered an early market for distributed hydrogen. In virtually all cases to date the required hydrogen has been delivered rather than produced on-site. .
             Transportation Applications.
             Some form of incentive is required to help encourage owners and operators to proceed with early installation of fueling facilities that may not be economical until the fleet sizes of FCEVs have increased.


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