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Economic Aspects of Fuel Cell-Based Stationary Energy Systems
SUAT SEVENCAN
Doctoral Thesis, 2016 KTH Royal Institute of Technology School of Chemical Science and Engineering Department of Chemical Engineering and Technology Applied Electrochemistry SE-100 44 Stockholm Sweden
TRITA-CHE Report 2016:1 ISSN 1654-1081 ISBN 978-91-7595-754-8 Akademisk avhandling som med tillstånd av KTH i Stockholm framläggs till offentlig granskning för avläggande av teknisk doktorsexamen fredagen den 15 januari 2016, kl. 10.00 i Kollegiesalen, Brinellvägen 8, Stockholm
”ليس شيء مطلقا ، كل شيء ممكن.“
حسن صباح
“Nothing is absolute, everything is possible.”
Hassan Sabbah
to my mother, for her constant prayers for my success and happiness… to my father, for his teachings of resourcefulness and self-reliance… to Linda, for her great love and support throughout my journey…
Abstract
It is evident that human activity has an important impact on climate.
Constantly increasing energy demand is one of the biggest causes of
climate change. The fifth assessment report of the Inter-governmental
panel on climate change states that decarbonisation of electricity
generation is a key component of climate change mitigation. Increased
awareness of this fact and escalating concerns around energy security has
brought public attention to the energy industry, especially sustainable
power generation systems.
Future energy systems may need to include hydrogen as an energy carrier
in order to achieve necessary levels of CO2 emission reductions, and
overcome the challenges renewable energy systems present. Fuel cells
could be a corner stone of future hydrogen inclusive energy solutions.
New solutions like fuel cells have to compete with existing technologies and
overcome the shortcomings of emerging technology. Though these
shortcomings are well-recognised, fuel cells also have many advantages
which makes continued research and development in the field highly
worthwhile and viable. Key to their adoption is the identification of a niche
market to utilise their advantages while overcoming their shortcomings
with continuous research and development.
This thesis aims to evaluate some of the stationary fuel cell applications
and determine whether one could become the niche market as an entry
point for fuel cells. This is achieved by economic evaluations of real and
hypothetical applications.
Results of the studies here imply that to decrease the total life cycle impacts
of fuel cells to more acceptable levels, resource use in the manufacturing
phase and recycling in decommissioning should be shown more attention.
Results also present a picture showing that none of the applications
investigated are economically feasible, given the current state of
technology and energy prices. However, fuel cell-based combined cooling,
heating and power systems for data centres show the potential to become
the niche market that fuel cells need to grow. A further conclusion is that a
broad market, longer stack lifetime, the possibility of selling electricity
back to the grid and governmental subsidies are essential components of
an environment in which fuel cells can permeate through the niche market
to the mainstream markets.
Keywords: Fuel cells, niche market, stationary applications, feasibility,
multi-generation
Sammanfattning
Det är uppenbart att mänsklig aktivitet har en viktig påverkan på klimatet. Den
femte bedömningsrapporten från FN:s klimatpanel slår fast att utfasning av
fossila bränslen i elproduktionen är en nyckelkomponent för att mildra
klimatförändringarna. Samtidigt är konstant ökad efterfrågan på energi en av
de största orsakerna till klimatförändringarna. Ökad medvetenhet om detta
faktum och eskalerande oro gällande energisäkerhet har lett till att
allmänheten fått upp ögonen för energiindustrin, i synnerhet hållbara
kraftproduktionssystem.
Framtida energisystem kommer troligen att behöva inkludera vätgas som
energibärare för att nå nödvändiga sänkta nivåer av koldioxidutsläpp, och
övervinna de utmaningar som förnybara energisystem uppvisar. Bränsleceller
skulle kunna vara en hörnsten i framtida väteinkluderande energilösningar.
Nya lösningar som bränsleceller måste tävla med befintliga tekniker och
övervinna de brister som framväxande teknik för med sig. Även om deras
brister är väl kända, så har bränsleceller många fördelar vilket gör fortsatt
forskning och utveckling inom det här området högst meningsfull och
bärkraftig. En nyckel till en ökad spridning av bränsleceller är identifieringen
av en nischmarknad där man kan dra nytta av bränslecellernas fördelar medan
bristerna övervinns genom fortsatt forskning och utveckling.
Syftet med den här doktorsavhandlingen är att utvärdera några stationära
bränslecellsapplikationer och avgöra om någon av dessa skulle kunna vara en
möjlig nischmarknad som också skulle kunna vara en inkörsport för
bränsleceller. Utvärderingen genomförs medelst ekonomisk analys av verkliga
och hypotetiska applikationer.
Resultaten av studierna här visar att för att minska de totala livscykeleffekterna
av bränsleceller till mer acceptabla nivåer, borde mer uppmärksamhet
fokuseras på resursanvändningen i tillverkningsfasen och på återvinning vid
avveckling. Resultaten visar också att ingen av de undersökta applikationerna
är ekonomiskt genomförbar med nuvarande teknik och energipriser. Däremot
har bränslecellsbaserade system som kombinerar kraft, kyla och värme för
datacenter, potential att bli den nischmarknad som bränsleceller behöver för
att växa. En annan slutsats är att en bredare marknad, längre livslängd för
bränslecellsstackarna, möjlighet att sälja elektricitet tillbaka till elnätet och
statliga subventioner är grundläggande komponenter i en miljö där
bränsleceller kan sprida sig från nischmarknaden till en bredare marknad.
Özet
Beşeri aktivitenin iklim üzerinde önemli bir etkisi olduğu aşikâr. Sürekli
artan enerji talebi iklim değişikliğinin en büyük sebeplerinden biri.
Hükümetler arası iklim değişikliği panelinin beşinci değerlendirme
raporunda elektrik üretiminin karbonsuzlaştırılmasının iklim
değişikliğinin azaltılmasında anahtar öğe olduğu ifade ediliyor. Bu
gerçeğin farkındalığının artması ve yükselen enerji güvenliği kaygısı
kamunun dikkatini enerji endüstrisine, özellikle yenilenebilir güç üretim
sistemlerine çekiyor.
Gerekli CO2 salımı azaltımına erişebilmek ve yenilenebilir enerji
sistemlerinin zorluklarıyla baş edebilmek için geleceğin enerji
sistemlerinin enerji taşıyıcı olarak hidrojeni içermesi gerekmektedir. Yakıt
pilleri hidrojeni de kapsayan enerji çözümlerinde bir köşe taşı olabilir.
Yakıt pilleri gibi yeni çözümler mevcut teknolojilerle yarışmak ve yeni
teknolojinin noksanlıklarının üstesinden gelmek zorundalar. Bu bilinen
noksanlıklara rağmen, yakıt pillerinin sahip oldukları birçok avantaj
alanda devam eden araştırma ve geliştirmeyi bir hayli değerli kılıyor. Yakıt
pillerinin benimsenmesinin anahtar ögesi araştırma ve geliştirmeyle
noksanlıkların üstesinden gelinirken bu avantajların değerlendirileceği bir
niş pazarın tanımlanmasıdır
Bu tez, bazı sabit yakıt pili uygulamalarını değerlendirerek hangisinin yakıt
pillerinin pazar giriş noktası olacak niş pazar olabileceğini belirlemeyi
hedeflemektedir. Bu, gerçek ve farazi sistemlerin ekonomik
değerlendirilmesi ile gerçekleştirilmiştir.
Buradaki çalışmaların sonuçları yakıt pillerinin toplam çevresel etkisinin
azaltılabilmesi için üretim evresindeki kaynak kullanımına ve demontaj
evresinde geri dönüşüme daha çok ilgi gösterilmesi gerektiğini ortaya
koymaktadır. Ayrıca sonuçların ortaya koyduğu resim mevcut teknoloji ve
enerji fiyatlarıyla incelenen uygulamaların hiçbirinin ekonomik olarak
makul olmadığını göstermektedir. Velakin veri merkezlerinin güç ve
soğutma ihtiyacını karşılayan yakıt pili tabanlı birleştirilmiş soğutma
ısıtma ve güç sistemi, yakıt pillerinin gelişebilmek için ihtiyaç duyduğu niş
market olma potansiyeli göstermiştir. Çalışmalardan çıkarılabilecek diğer
bir sonuç da; yaygın pazar, daha uzun yığın ömrü, şebekeye elektrik satma
imkânı ve devlet sübvansiyonlarının yakıt pillerinin niş marketten ana
markete doğru gelişebilmeleri için bir zorunluluk olduğudur.
List of Appended Papers
Paper I A Preliminary Environmental Assessment of Power Generation Systems
for a Stand-Alone Mobile House with Cradle to Gate Approach
Sevencan S, Altun-Çiftçioğlu G, Kadırgan N.
Gazi University Journal of Science. 2011; 24: 487-94.
Paper II Life Cycle Assessment of Power Generation Alternatives for a Stand-Slone
Mobile House
Sevencan S, Altun-Çiftçioğlu G.
International Journal of Hydrogen Energy. 2013; 38: 14369-79.
Paper III A Preliminary Feasibility Study of a Fuel Cell Based CCHP System.
Sevencan S, Altun-Çiftçioğlu GA, Kadırgan MAN.
Gazi University Journal of Polytechnic. 2011; 14: 199-202.
Paper IV Fuel cell based cogeneration: Comparison of electricity production cost
for Swedish conditions.
Sevencan S, Guan T, Lindbergh G, Lagergren C, Alvfors P, Ridell B.
International Journal of Hydrogen Energy. 2013; 38: 3858-64.
Paper V An Economical Comparison of Power-to-gas Alternatives in Bozcaada –
Turkey
Sevencan S, Lindbergh G, Lagergren C, Alvfors P.
Manuscript submitted to Energy.
Paper VI Economic Feasibility Study of a Fuel Cell-Based Combined Cooling,
Heating and Power System for a Data Centre
Sevencan S, Lindbergh G, Lagergren C, Alvfors P.
Manuscript accepted in Energy and Buildings.
http://dx.doi.org/10.1016/j.enbuild.2015.11.012
__________________________________________________
I did the data collection, calculations and interpretation for all the papers
except for Paper IV where Tingting Guan participated in the data
collection.
Abbreviations
AFC Alkaline Fuel Cell
CCHP Combined Cooling Heating and Power
CHP Combined Heat and Power
DALY Disability-Adjusted Life Year
DG Distributed Generation
EACF Equivalent Annual Cash Flow
FC Fuel Cell
FC-CCHP Fuel Cell based Combined Cooling Heating and Power
FC-CHP Fuel Cell based Combined Heating and Power
LCOE Levelized Cost of Energy
MCFC Molten Carbonate Fuel Cell
MCFC-CHP Molten Carbonate Fuel Cell based Combined Heating
and Power
MEA Membrane Electrode Assembly
MJ SE Mega Joule Surplus Energy
NG Natural Gas
NPV Net Present Value
O&M Operating and Maintenance Cost
PAFC Phosphoric Acid Fuel Cell
PEMFC Proton Exchange Membrane Fuel Cell
PEMFC-CHP Proton Exchange Membrane Fuel Cell based Combined
Heating and Power
PDF Potentially Disappeared Fraction
PTG Power To Gas
POO Probability of Occurrence
PV Photovoltaic
R-MCFC Reverse Molten Carbonate Fuel Cell
Contents
Introduction ________________________________________ 1
Compelling global demand for energy alternatives ..................... 1 The rise of hydrogen .................................................................. 2 The environmental aspects of fuel cells ..................................... 4 Status of fuel cell economics ...................................................... 6 Fuel cells in the growing IT sector .............................................. 8 Power-to-gas and Island applications ........................................ 9 The search for a niche market for fuel cells .............................. 11 Aim of the thesis ...................................................................... 13
Fuel cells __________________________________________ 15
Proton exchange membrane fuel cells ..................................... 18 Molten carbonate fuel cells ...................................................... 19
Applications of fuel cells _____________________________ 21
Transport applications .............................................................. 21 Portable applications ................................................................ 22 Stationary applications ............................................................. 22
Distributed generation ....................................................................... 23
Multi-generation ____________________________________ 25
Power-to-gas ........................................................................... 26 Combined heat and power ....................................................... 26 Combined cooling, heating and power ..................................... 28
Thermally driven cooling technologies .............................................. 28
Methodology _______________________________________ 33
Environmental assessments .................................................... 33 Life cycle assessment .......................................................................... 33
Energy related calculations ...................................................... 39 Cooling and heating load calculations ............................................... 39 Adsorption cooling components sizing .............................................. 40 Electricity from photovoltaics and wind ............................................ 43
Economic calculations ............................................................. 43 Payback period .................................................................................... 43 Cost of electricity comparison ............................................................ 44 Equivalent annual cash flow............................................................... 44
Results and Discussion ______________________________ 47
Environmental impacts of fuel cells .......................................... 47 Fuel cell-based combined cooling, heating and power ..................... 56
Fuel cell-based combined heating and power ......................... 59 Power-to-gas ........................................................................... 61
Conclusions and recommendations ____________________ 65
Acknowledgements _________________________________ 69
References ________________________________________ 71
Introduction | 1
Introduction
Compelling global demand for energy alternatives
The evidence of human influence on the climate is stronger than ever. The
anthropogenic emissions of greenhouse gases in recent decades are at the
highest levels of history. The impacts of climate change on human and
natural systems are immensely widespread. To avoid these profound and
increasingly destructive changes, it is imperative to act swiftly and
decisively.
The Earth’s surface temperature has, for the last three decades, been
getting higher than any preceding decade since recording began in 1850.
Figure 1 shows observed globally averaged combined land and ocean
surface temperatures. The 30-year period between 1983 and 2012 was
likely the warmest of the last 1400 years [1].
The world’s energy demand is constantly increasing due to the steady
growth of population and increased quality of living. Today more than ever,
with the increasing global awareness of climate change over the last
decade, development of sustainable power generation systems is a great
concern. Another issue that attracts the public’s attention to sustainable
power generation is energy security. As the conventional fossil fuel
resources are concentrated in a limited number of geopolitical regions and
nuclear power plants have fallen from the public’s grace, many countries
are looking for alternatives such as renewable energy.
2 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 1 - Observed globally averaged combined land and ocean surface
temperature anomaly 1850–2012 [1]
The rise of hydrogen
The fifth assessment report Intergovernmental panel on climate change
states decarbonisation of electricity generation is a key component of
climate change mitigation [2]. Figure 2 shows the CO2 emission reduction
levels needed between three scenarios in the International Energy Agency’s
2012 Energy Technologies Perspective report. In this report it is stated
that, to limit the global temperature rise from 6 oC to 2 oC or even 4 oC, a
Introduction | 3
tremendous amount of CO2 emission savings is necessary and the lion
share in these savings should be in electricity decarbonisation [3]. We have
the technological means, such as alternative energy generation methods,
to limit climate change and give a better chance to future generations.
Figure 2 - CO2 emissions and reductions in buildings [3]
Abandoning conventional methods of power generation is an imperative
step in taking control of climate change. Although renewable energy
systems are promising solutions for all these issues, they are sporadic in
nature. In order to overcome the challenges renewable energy systems
present and to achieve considerable CO2 emission reductions, it is likely to
be imperative that future energy systems include hydrogen due to the
benefits it offers as a clean energy carrier [4]. Self-proclaimed ‘hydrogen
romantic’ Veziroğlu prophesized an optimistic projection of hydrogen
replacing all fossil fuels by 2074, shown in Figure 3 [5]. Of course, it is
impossible to say whether or not his prophecy will be fulfilled, but it is
obvious that fuel cells, electrochemical devices that convert chemical
energy of a fuel, usually hydrogen, into electrical energy without
combustion, will play a key role in such endeavours [4, 6, 7].
4 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 3 – Veziroğlu’s projection for the use of hydrogen in the world [5]
The environmental aspects of fuel cells
Emphasising environmental benefits of fuel cells as added value may be
the key to market entry [8-11]. There are Life Cycle Assessment (LCA)
studies in the literature that evaluated the environmental advantages of
fuel cells. Pehnt [12] investigated the polymer electrolyte fuel cell stack
production process to identify environmental impacts of stack components
and materials in comparison with the utilisation of the stacks in vehicles.
Pehnt concluded that, although the advantages of fuel cell vehicles,
especially for urban areas with severe environmental conditions, should
not be underestimated, the environmental impacts of stack production
cannot be neglected in relation to the impacts from utilisation of said stack
in vehicles and the platinum group metals as catalysts are the main cause
of these impacts. Although the impact per kW from stacks produced for
stationary applications are higher than the ones produced for mobile
applications, because of their longer lifetime in per kWh impacts
comparison they are better. Also the impact of the production process of
the stack has much less importance in stationary applications than in
mobile systems. Pehnt also concluded that by recycling platinum group
metals environmental impacts can be decreased substantially. Lunghi and
Bove [13] did an LCA study of a Molten Carbonate Fuel Cell (MCFC) stack
Introduction | 5
to identify process steps that have high environmental impact and find
improvement possibilities. They concluded that the highest environmental
impacts are due to the anode production and, to a lesser extent, cathode
production and that there is a need for more energy efficient processes with
higher recycling of the materials. Khan et al. [14] studied a fuel cell – wind
turbine hybrid system with process chain analysis, focusing on greenhouse
gas emissions. They concluded that although the system they investigated
is a zero emission system in operation, considering the production phase
of the components it has significant GHG emission in total. However, it
still has far lower global warming potential than a conventional diesel
system. Khan et al. calculated that the system has 40.6 gCO2eq/kWh GHG
emission and 0.372 MJ/ kWh energy use. The fuel cell contributed most to
the global warming potential (49 %), followed by the electrolyser (26 %),
and the wind turbine (25 %). Staffell and Ingram [15] studied
environmental impacts of an alkaline fuel cell-based residential
cogeneration system using the Impact2002+ indicator considering only
manufacture and disposal stages. They concluded that in relation to other
components of the cogeneration system the alkaline fuel cell stack
production has considerable environmental impact, of which sulphur
dioxide and other respiratory inorganics present the greatest
environmental burden. For the entire system stainless steel and other
structural material dominates the impacts. They also mention the large
influence of catalyst recycling on environmental impact and the possibility
of decreasing the catalyst load, a system optimization to reduce the use of
steel and design change to enable easy disassembly and recycling. Staffel
et al. [16] made a comparative LCA between a solid oxide fuel cell-based
cogeneration system with boiler and the UK national grid combination to
determine energy and carbon payback times. They concluded that although
a complete 1 kW solid oxide fuel cell cogeneration system, including stack
replacements over the lifetime, emits 1.8-2.9 tonnes of CO2 and requires
29-55 GJ of primary energy, carbon and energy payback times averaged
0.5 and 1.5 years for displacing coal fired generation, 1.7 and 2 years for
displacing the average grid mix, and up to 3.5 years for displacing
combined cycle gas turbine units. Mori et al. [17] did a cradle-to-end-of-
utilisation environmental assessment of an Uninterruptable Power Supply
(UPS) using a Polymer Electrolyte Membrane Fuel Cell (PEMFC) and
compared it to an internal combustion engine-based UPS using the
CML2001 impact assessment method. Their results pointed out that a
6 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
hydrogen UPS is an environmentally sound system compared to an
internal combustion engine UPS. They also concluded that the impacts of
hydrogen UPS system are mainly from the manufacturing phase while
internal combustion engine systems impacts are mainly at the operational
phase. Cox and Treyer [18] compared cracked ammonia-fuelled alkaline
fuel cell with a diesel generator for off-grid use. Their results show that the
LCA results are dominated by the production of ammonia, and that
renewable ammonia production pathways improve environmental
performance considerably. They also pointed out the environmental
benefits of recycling of platinum group metals and electrode substrates as
well as the economic ones. Strazza et al. [19] evaluated environmental
impacts of a 230 kW Solid Oxide Fuel Cell (SOFC) and compared it to a
micro gas turbine. They concluded that the SOFC system has
environmental and economic benefits over micro gas turbines. The
contribution analysis they did for the natural gas fuelled SOFC system,
revealed that the fuel supply is a large part of the environmental impact
and a biogas-fed system shows environmental benefits, depending on the
power and energy mix used during the digestion process.
Status of fuel cell economics
For fuel cells to take their rightful place in the global energy system,
environmental advantages will not be enough, they have to be
economically viable. Combined Heat and Power (CHP) and Combined
Cooling Heating and Power (CCHP) are promising applications for fuel cell
systems. Several studies have been made to evaluate economical aspects of
fuel cell CHP and CCHP systems. Silveira and Gomes [20] made a techno-
economic analysis of a CCHP system with an MCFC. They concluded that
an investment cost of more than 1500 USD/kW renders the system
unfeasible with more than 6 years payback time. Lipman et al. [21]
investigated electricity generation from a PEMFC as a distributed
generation system as well as a fuel cell vehicle generating electricity when
parked in California. Their analysis showed that a residential PEMFC
system can break-even at the investment cost of 1200 USD/kW and a 6
USD/GJ natural gas cost as the commercial system’s break-even point is at
700 USD/kW investment cost and 4 USD/GJ natural gas price. For a fuel
cell vehicle scheme to be viable the system should work at above 30 %
(LHV) overall efficiency and natural gas prices must be in the order of 3-4
Introduction | 7
USD/GJ. Alanne et al. [22] made a comparative financial assessment of a
SOFC system versus gas, oil and electricity heating systems for a single-
family dwelling considering different capital costs, interest rates, gas, oil
and electricity prices. They concluded that a 1-2 kWe SOFC system is viable
when compared to electrical and oil furnaces. Zabalza et al. [23] presented
the results of a feasibility analysis of fuel cell CHP systems for different
loads, single family house, apartment blocks, hotels and department
stores, comparing them with a combination of central boiler for heat and
utility for electricity. They calculated the total cost in EUR/year for the
SOFC system to be greater than the conventional alternative for every size.
Their sensitivity analysis showed a large influence of capital cost, the need
to change fuel cell stacks every 7-8 years and surplus electricity sale price
on the feasibility of the system. They also concluded that determining the
working hours as well as the thermal and electrical capacity of the fuel cells
is also important for achieving optimum energy use. Staffel et al. [24]
investigated the economic performance of four fuel cell technologies at 1
kWe as part of a residential CHP system in the UK to find cost targets using
demand profiles of 102 house-years. Estimated annual savings for these
technologies were in the range of 225-250 EUR giving a viable target cost
range of 350-625 EUR/kW for fuel cells with a minimum of 2.5 years of
lifetime. They concluded that increasing lifetime may bring the cost to a
significantly more favourable level. It was also emphasised that in case of
using one house-year demand, the results of savings and target costs can
deviate by up to 28 % of the mean values that were presented in the study.
Ren and Gao [25] analysed gas engine and fuel cell-based 1 kW residential
micro-CHP application in Japan. They looked into minimum cost and
minimum CO2 emission operation modes for both systems. They
concluded that the fuel cell system is the better option for the examined
residential building from both economic and environmental points of view.
In minimum cost mode the annual cost was calculated to be 24 % and 26
% lower using gas engine and fuel cell, respectively. The Fuel cell system in
minimum emission mode lowered annual CO2 emission by 9 % where gas
engine lowered CO2 emission by 2 % in the same mode. They also
concluded that the economic benefits of the systems they investigated were
mainly due to the governmental incentives. Pruitt et al. [26] did an
operational savings versus total installed cost analysis to determine
conditions for fuel cell CHP to be economically viable considering eight
scenarios with different sizes, locations, building types, and net metering
8 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
models. Their analysis indicated that to reach positive operational savings
a market with higher electricity price relative to the natural gas price and
net metering is essential. Furthermore, greater electrical and thermal
efficiencies are necessary for better energy savings. Staffell and Green [27]
explored the cost of fuel cell CHP systems to determine the gap between
the numbers in the studies and targets set by agencies and the reality by
gathering past estimates, current prices and targets. Their investigation
showed that the US Department of Energy’s targets of 1500 USD/kW by
2015 and 1000 USD/kW by 2020 are untenable. Unless the market
quadruples by then, 1000 USD/kW will not be reached. They concluded
that these targets do not include the components and the complexity of the
balance of plant; when these are included in the estimations the target
comes to a more reasonable level of 3500/kW. Chen and Ni [28] made an
economic analysis of a fuel cell cogeneration (power and cooling) and
trigeneration (power, cooling and hot water) system for a hotel in Hong
Kong. They concluded that the cogeneration system has a payback period
of 10 years and that total system efficiency may be improved to 94 % from
84 % by transforming the system from cogeneration to trigeneration. The
trigeneration system’s payback time is 5.7 years. These payback periods are
subject to subsidies, electricity price, natural gas price and the balance of
plant component prices. The trigeneration system’s payback period may
vary between 2.7 and 13.9 years. The results of a techno-economic study of
PEMFC and SOFC-based micro-CHP systems, performed by Napoli et al.
[29] show that these systems decrease the primary energy use of domestic
users considerably. Load-following ability increases the positive effects of
these systems especially with PEMFC, due to its low operation temperature
and higher flexibility. When choosing between PEMFC and SOFC systems,
from a primary energy point of view, the SOFC system is the better option.
Although the SOFC system has a higher investment cost it also has higher
yearly savings.
Fuel cells in the growing IT sector
The possibility of employing fuel cells in the IT sector has been attracting
attention for a while [30-36]. Many of the studies in the literature are
focussing on meeting just the power load of data centres. In their studies
of a 10 kW in-rack fuel cell application Zhao et al. [37, 38] concluded that
it is possible to eliminate grid dependence and the internal power
Introduction | 9
distribution system of a server rack with an in-rack fuel cell. They also
concluded that in-rack fuel cells can achieve 53 % energy efficiency for a
single server rack. Riekstin et al. [39] looked into the possibility of in-rack
fuel cells for a whole data centre. They concluded that such a system may
reach above 20 % cost reduction even with conservative projections. There
are also studies focussing on the possibility of using multi-generation for
data centres. Looking into powering and cooling a data centre via
cogeneration Schmidt et al. [40] concluded that the feasibility of such a
system is dependent on natural gas and electricity prices. Xu and Qu [41]
did a comprehensive assessment of a gas turbine-run CCHP system
meeting power and cooling demands of a data centre. Guizzi and Manno
[42] modelled a fuel cell CCHP system for a data centre with constant
power and cooling load. The system was estimated to make a 47 % cost
reduction, above 20 % primary fuel use reduction and more than 20 % CO2
emission reduction. They concluded that the stable nature of the demand
and the low power-to-cooling-demand ratio make these centres a good
match for CCHP use; however, to make CCHP feasible for data centre use,
the electricity price per MWh should be higher than the price of natural
gas. They further concluded that CCHP, for the case they were
investigating, may bring an operational cost saving of up to 54 %.
Power-to-gas and Island applications
Another possible application for fuel cell technologies is using them to
complement power fluctuations of a wind and/or photovoltaic energy
system. This application is especially attractive for places where the grid is
not available, like remote islands. In their paper introducing the
Renewislands project, Chen et al. [43] emphasize how hydrogen and fuel
cells may be the solution for the intermittent nature of renewable energy
systems. In their review article of power-to-gas Götz et al. [44] investigated
polymer electrolyte membrane, solid oxide and alkaline electrolysis
systems as well as methanation technologies. Their cost analysis concluded
that the literature indicates lower specific investment for an alkaline
system than for both polymer electrolyte membrane and solid oxide
electrolysis systems. Kalinci [45] investigated energy generation
alternatives for an island in Turkey, two of which were fuel cell systems.
She concluded that the wind/FC system investigated needed a larger
hydrogen tank and electrolyser to cope with intermittency during the
10 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
summer months and added photovoltaic panels to complement the
summer intermittency and increase the reliability. The wind/PV/FC
system has an electricity cost of 0.836 USD/kWh. Loisel et al. [46]
inspected a hybrid off-shore wind power system with different uses of
hydrogen, power generation via fuel cell, injection into gas-line and as fuel
for boats and cars. Their results showed loss for all the scenarios
investigated. The production cost of hydrogen was calculated as 4.2
EUR/kg H2 in the most viable case. Another conclusion they drew was that
combining many usages that need different infrastructure may cause
losses. Enevoldsen and Sovacool [47] studied a hybrid hydrogen-wind
power system for the island of Mykines. Their calculations showed that
comparing to the conventional diesel generators on the island, the
wind/FC system has a higher cost of electricity, 0.23-0.39 USD/kWh and
0.53 USD/kWh, respectively. They concluded that for the hybrid system to
compete with the conventional system an increase of efficiency of both
electrolyser and fuel cell was needed as well as a decrease of the capital
costs. They also suggested that with the environmental benefits and the
self-sufficiency it brings, the hybrid system may be worth the electricity
price difference.
There are also several studies focussing on the cost of hydrogen production
in power-to-gas applications. Glatzmaier et al. [48] made a report on
hydrogen production from concentrated solar energy for the National
Renewable Energy Laboratory. They estimated a cost of hydrogen,
depending on the cost of the photovoltaic system, between 5.78 USD/kg H2
and 23.27 USD/kg H2. Greiner et al. [49] presented a method for the
evaluation of wind-hydrogen systems. They claimed it enables optimised
component sizing as well as calculation of hydrogen production cost. Their
results revealed that the hydrogen costs were 2.8 and 6.2 EUR/kg H2 for
grid-connected and isolated systems respectively. The techno-economic
analysis of a Wind-FC system by Bernal-Agustin and Dufo-Lopez [50]
showed that an electricity price of 1.71 EUR/kWh is required to make the
system feasible. In their study of hydrogen from off-shore wind systems
used as transportation fuel, Mathur et al. [51] showed that farm capacity is
inversely proportional to hydrogen price: 1.53 INR (Indian Rupee)/MJ H2
for a 300 MW system and 2.33 INR/MJ H2 for a 5 MW system. They
concluded that these costs cannot compete with petrol prices. The potential
for hydrogen and electricity production from wind in Kırklareli, Turkey
Introduction | 11
was investigated by Gökçek [52]. An annual hydrogen production of 102.37
kg H2 and an annual electrical energy production of approximately 15000
kWh was found possible. The grid-integrated system with a hub height of
36 m they studied had hydrogen production costs of 0.35 – 4.49 USD/kg
H2. Hydrogen production from wind in Western Canada was studied by
Olateju and Kumar [53] They showed the optimum size for electrolysers to
be 240 kW and 360 kW with a hydrogen production costs of 10.15 USD/kg
H2 and 7.55 USD/kg H2, respectively. Hydrogen production from solar
electricity using alkaline electrolysers was investigated by Negrou et al.
[54]. The case study of Algeria showed hydrogen costs between 3.25
EUR/kg H2 and 11.45 EUR/kg H2 depending on the production capacity.
They also showed that hydrogen from solar electricity becomes less
expensive than hydrogen from conventional sources at minimum of 8000
tH2/year production capacity. G. Genç et al. [55] made a cost analysis of a
wind-electrolyser-FC system for Kayseri, Turkey. Their study showed that
the price of hydrogen was in the range of 8.8 – 30.8 USD/kg H2, depending
on size of system and height of hub. M.S. Genç et al. [56] did a review of
wind-hydrogen production in central Anatolia for five cities with three
different hub heights and three different numbers of electrolysers with a
total rated power of 40 kW and four wind turbines of different rated power.
Their results showed a trend for lower hydrogen prices for higher hubs,
higher wind turbine power and a group of electrolysers with smaller rated
power instead of one big electrolyser.
The search for a niche market for fuel cells
New technological options such as fuel cells generally represent solutions
to new requirements or new constraints and they have to compete with the
existing technologies [57, 58]. The technologies fuel cells need to compete
with, currently have unsatisfactory environmental performances but work
to improve these technologies is ongoing and they may someday reach an
acceptable level of environmental performance. In the current framework
shaped to best utilise the incumbent technologies, fuel cell systems are
simply too expensive. It is necessary to find a niche market for fuel cells
that values their non-standard attributes. Subsequently, research and
development efforts will improve fuel cell attributes to satisfy the
mainstream market. However, for the research and development to
continue, a steady stream of investments is essential. A suitable niche
12 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
market which is consistent and large enough should ensure this steady
stream and, if close enough to the mainstream markets could allow fuel
cells to penetrate these markets. There are several studies presenting
possible niche markets for fuel cells. Tso and Chang [59] conclude that fuel
cell scooters might be a solution for Taiwan’s search for a zero emission
scooter as well as a viable niche market for fuel cells. Cigolotti et al. [60]
compare three cogeneration system with an internal combustion engine,
gas turbine and a molten carbonate fuel cell, and they concluded that the
MCFC system with biogas from anaerobic digestion at a cost of 3000
EUR/kW shows promise to be a niche market. In their market survey,
Ramírez-Salgado and Domínguez-Aguilar [61] concluded that the market
for small handheld devices in Mexico has an encouraging size of 107
Million USD for direct methanol fuel cells. Klebanoff et al. [62] presented
the success of a fuel cell powered mobile light tower project that will be
commercialized soon. In their investigation on fuel cell-based residential
combined heat and power, Brown et al. [63] assessed four countries’-
Germany, the UK, the USA and Japan - relative strengths and concluded
that, with its industry-government collaborations, Japan is the leading
country for the prospect of commercialisation of such systems. Cottrell et
al. [64] recommended continuing demonstration projects to increase
consumer awareness and suggested residential combined heat and power
and remote stand-alone applications, such as mobile telecommunication
towers, as possible niche markets.
Economic viability is probably the most important aspect in the search for
a niche market that will allow fuel cells to grow. There are many ongoing
studies trying to find an application for fuel cells that is economically
viable. However, many of these studies use estimations instead of real life
costs: this renders their results less accurate. The work presented here
consists of studies that mainly used real life data from actualised
applications and/or already commercialised products; this allows us to
draw more accurate conclusions about the future of fuel cells.
Introduction | 13
Aim of the thesis
This thesis aims to evaluate some of the stationary fuel cell applications
and determine which one could become the niche for the fuel cell market
entry point. This is achieved by economic evaluation of real and
hypothetical applications. This work also aims to shed light on
environmental impacts and the current economic state of fuel cell systems
and what would be required for them to compete with alternatives in
stationary applications.
14 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Fuel cells | 15
Fuel cells
Fuel cells were invented in 1830’s but the first commercial use did not
occur until the 1960s when NASA used fuel cells in space missions to
generate power for probes, satellites and space capsules [65]. Since then,
fuel cells have been used in many applications, portable and stationary.
Every type of fuel cell is characterized by its materials, dimensions, and
geometry; yet, the core of the device remains the same: it consists of two
electrodes and an electrolyte. The electrolyte should have such properties
that it will insulate the two half-cell reactions electrically while
simultaneously allowing ionic passage between the anode and cathode
sides. The electrolyte should also be impassable for gases to prevent
unwanted reactions. Lastly the electrolyte should not react with any of the
reactants or products of the process.
As the electrolyte is not electrically conductive, the electrons that are
released from the anode reaction need to follow a longer route to the
cathode; through the load that is connected between two electrodes. This
makes it possible to harvest their energy directly in the form of electrical
current. Since there is no combustion, there is no need for extra energy
conversions (heat to mechanical, mechanical to electrical), increasing
efficiency to much higher levels than combustion-based electricity
generation methods.
Electrode materials vary depending on the type of fuel cell. The common
aspect of the electrodes is their porous nature so that they have a high
surface area and the reaction zone is maximized.
Fuel cells have many advantages over conventional electricity generation
systems. As explained above, fuel cells have higher efficiency than
conventional systems because of direct energy harvesting; they are not
producing electricity through a thermal energy conversion process. This
makes it possible for small scale systems to be as efficient as large ones.
This feature makes fuel cell an important contender for small-scale
applications. Due to the lack of combustion, another important advantage
of fuel cells is no or comparatively very low emissions at the point of use. If
the hydrogen is generated via electrolysis using electricity from renewable
16 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
energy sources, such as solar or wind power, emissions at the use stage are
eliminated. The lack of moving parts is another important advantage of fuel
cells due to the simplicity, increased reliability and decreased need for
regular maintenance. It also makes fuel cells very quiet systems; this is an
important feature for Distributed Generation (DG) applications where the
power generation system is very close to, or sometimes inside, the building
it is powering. An average fuel cell system including a fuel reformation unit
is around 60 decibel at one meter distance.
Although fuel cell types are named and usually distinguished by the
electrolyte used in them, there are other important differences. For
different purposes and applications, different types of fuel cells have
emerged from research.
Basic information about the five principal types of fuel cells is given in
Table 1.
Proton Exchange Membrane Fuel Cell (PEMFC),
Molten Carbonate Fuel Cell (MCFC),
Solid Oxide Fuel Cell (SOFC),
Phosphoric Acid Fuel Cell (PAFC),
Alkaline Fuel Cell (AFC).
Table 1 - Types of fuel cells and selected features (adapted from [65, 66])
FC
Type Electrolyte
Mobile
Ion
Operating
Temperature
PEMFC Solid Polymer
Membrane H+ 30 – 110 oC
MCFC (Na,K)2CO3 CO32- 500 – 700 oC
SOFC (Zr,Y)O2-δ O2- 600 – 1000 oC
PAFC H3PO4 H+ 150 – 250 oC
AFC KOHaq OH- 50 – 200 oC
Fuel cells | 17
Figure 4 – Fuel cell types for different applications (adapted from [65])
Different types of fuel cell are suitable for different applications according
their capacity, materials and operating conditions. Figure 4 illustrates the
compatibility of different fuel cell types with different applications.
Since the studies reported here are focussed on two types of fuel cells, only
these principal fuel cell types will be described in detail in this thesis:
PEMFC (papers I-V) and MCFC (papers IV-VI).
Types of
Applications
Power (W) 1 10 100 1k 10k 100k 1M 10M
Main Advantages
FCs Bring to
Application
Cars, boats, and
domestic CHP
Distributed power
generation, CHP, CCHP
Different types of
FCs that can be
employed for the
application
Higher energy density than
batteries, Faster recharging
Potential for zero
emissions, Higher
efficiency
Higher efficiency, low
noise, low pollution
Portable electronics
Equipment
AFC MCFC
SOFC
PEMFC
PAFC
18 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Proton exchange membrane fuel cells
PEMFCs have a wide range of capacity and many transport, stationary and
portable applications [67]. Their distinctive features are low working
temperature and polymer membrane electrolyte. The basic principle of the
PEMFCs is shown in Figure 5.
Figure 5 - Basic principle of PEMFCs
Sulfonated polymers are used as the electrolyte in PEMFCs, most
commonly Nafion. On both sides of the membrane there are electrodes,
commonly carbon cloth which supports the platinum catalyst particles.
Outside the electrodes there is an electrically conductive gas diffusion layer
which ensures effective diffusion of reactants to the catalyst layer. This
sandwich as a whole is called the Membrane Electrode Assembly (MEA).
In the MEA, hydrogen supplied to the anode goes through the gas diffusion
layer and is split into protons and electrons at the electrode. Protons are
then transported to the cathode side through the membrane in form of
CathodeAnode
H3O+
4e-
O2
Fuel Air
Excess Fuel
Water VapourExcess air
Heat
H2
H2
H2O
H2O4e-
H3O+
H3O+
H3O+
Electrolyte
Fuel cells | 19
H3O+ while the electrons go through the external circuit producing
electricity. In the meantime oxygen from air goes through the gas diffusion
layer and reacts with protons and electrons forming water at the cathode.
Hydrogen oxidation at anode: 2𝐻2 → 4𝐻+ + 4𝑒−
Oxygen reduction at cathode: 𝑂2 + 4𝐻+ + 4𝑒− → 2𝐻2𝑂
Overall reaction: 2𝐻2 + 𝑂2 → 2𝐻2𝑂
Molten carbonate fuel cells
MCFC uses an electrolyte consisting of liquid molten carbonate salt
immobilised in a chemically inert porous ceramic made of LiAlO2. MCFCs
operate at 500-700 oC and have CO32- as mobile ions. The high temperature
makes them a good candidate for cogeneration applications. The basic
principle of the MCFC is shown in Figure 6.
Figure 6 - Basic principle of MCFCs
CathodeAnode
4e-
FuelAir,CO2
Excess Fuel,
Water Vapour,
Heat,CO2
Excess Air4e-
Electrolyte
O2
CO2
CO2
CO2
H2O
CO2
H2O
CO32-
CO32-
H2
H2
20 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Ionic salt releases carbonate ions when heated. These flow to the anode and
combine with hydrogen to form CO2, H2O and electrons. Oxygen and CO2
recycled from the anode react with electrons coming from the anode
through the external circuit, giving back the carbonate ion to the
electrolyte.
Anode reaction: 2𝐻2 + 2𝐶𝑂32− → 2𝐻2𝑂 + 2𝐶𝑂2 + 4𝑒−
Cathode reaction: 𝑂2 + 2𝐶𝑂2 + 4𝑒− → 2𝐶𝑂32−
Overall reaction: 2𝐻2 + 𝑂2 → 2𝐻2𝑂
As may be seen in the reactions, CO2 is involved both anode (product) and
cathode (reactant) reactions. CO2 formed at the anode is recycled to be
used in the cathode by burning anode exhaust. The resulting mixture of
steam and CO2 is fed to the cathode after mixing with fresh air. The heat
from the burning of the anode exhaust is used to pre-heat the reactant air,
improving the efficiency and maintaining the operating temperature of the
system.
Applications of fuel cells | 21
Applications of fuel cells
Applications of fuel cells can be categorised into three main areas:
Transport applications
As well as their environmental advantages, fuel cells have several
properties that make them suitable for many transport applications. There
are several demonstration applications, from fuel cell scooters to passenger
carts, from boats to busses, from three-wheelers to forklifts. Fuel cell cars
are coming out of demonstration stage to become commercial. Currently
there are two companies in the market that have started initial commercial
sales of their fuel cell cars. Figure 7 shows a number of fuel cell vehicles.
Fuel cell car – Toyota Mirai Fuel cell scooter – Suzuki Burgman
Fuel cell passenger cart – Istanbul, Turkey Fuel cell forklift – Istanbul, Turkey
Figure 7 - Some fuel cell vehicles
22 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Portable applications
Fuel cells are also suitable for portable applications, where they are built
into or charge up products that are designed to be moved. The size of these
applications may range from 500 kW to less than 5 W, e.g. auxiliary power
units for trucks, personal devices such as laptops, radios, etc., small
personal electronics, cameras, mp3 players, portable chargers, military
applications to power wearable electronics, toys, educational kits. There
are already commercial auxiliary power units with fuel cell technology as
well as toys, educational kits and portable chargers. Figure 8 shows some
portable applications of fuel cells.
A laptop powered by a direct methanol fuel
cell
An educational fuel cell toy car
A fuel cell portable charger
Figure 8 - Portable fuel cell applications
Stationary applications
Units that provide energy to a location-bound load are called stationary
units. Fuel cells may be used as prime movers, systems that convert energy
from fuel to other forms of energy, in several stationary applications: main
power units, backup power systems, uninterruptible power systems. There
are many demonstration projects as well as several commercial ones.
Figure 9Figure 9 - Several stationary fuel cell power systems shows some
of them.
Applications of fuel cells | 23
Bloomenergy – 200 kW SOFC –
California, USA [68]
FuelCell Energy – 300 kW MCFC –
Connecticut, USA [69]
Ballard – 1.1 MW PEMFC –
California, USA [70]
UTC – 400 kW PAFC –Connecticut,
USA [15]
ACCAGEN – 21 kW PEMFC –
Bozcaada, Turkey [71]
IDATECH – 5 kW PEMFC –
Istanbul, Turkey [72]
Figure 9 - Several stationary fuel cell power systems
Distributed generation
Central power plants, which are located close to energy sources and far
from populated areas, comprise an integral part of the current electric grid.
They supply the distribution network which distributes the power to load
centres and to consumers. These systems were preferred due to the fact
that it was less expensive to take advantage of economies of scale and
distribute power than to transport fuel and integrate power generation
technologies with populated areas. Technological innovations increasing
24 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
efficiency of power generation systems in small scales made it economical
to generate power at or close to the consumer, which in turn increased the
focus on distributed generation (DG). Generating power at or close to the
load site brings a substantial decrease in transmission and distribution
losses of electricity and savings on infrastructure [73-76].
DG can be at different scales according to level of proximity to the
consumer; from district level to building level, to even household level; this
brings many advantages. DG can put off large investments with long
payback such as central power plants, substations and infrastructure. DG
is an important opportunity for promoting renewable energy systems. It
may also create possibilities for utilising local fuel alternatives instead of
fuel transportation. Increased DG in a local grid will increase energy
sources on the grid, decreasing energy dependency and vulnerability to
grid failures, service interruptions, vandalism and external attacks. It will
also bring flexibility against price fluctuations [73, 74, 77, 78]. Systems
investigated in this thesis are all DG systems at different levels: district,
building, household and single consumer. Co-location of energy systems
with load leads to the possibility of multi-generation.
Multi-generation | 25
Multi-generation
Today’s energy problems cannot be solved without a multidimensional
solution that addresses efficiency, pollution, and energy security. Multi-
generation can address these problems as well as create economic appeal
for alternative energy systems. Multi-generation systems are systems that
combine prime movers with key processes enabling them to use various
sources and generate a multitude of marketable products as well as power,
such as heating, cooling, synthetic fuels, desalination and chemicals [79].
A representation of possible outputs of a multi-generation system is shown
in Figure 10.
Figure 10 - Possible outputs of a multi-generation system
Compared to separate generation, multi-generation brings many benefits
such as higher total efficiency, ability to utilise different primary energy
sources, minimised emissions, etc. The multi-generation systems that are
Multi-generation
26 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
investigated in this thesis are Combined Heat and Power (CHP), Combined
Cooling, Heating and Power (CCHP), and Power-to-gas (PTG).
Power-to-gas
Power-to-gas (PTG) is converting electricity to another energy carrier in
gaseous form, primarily hydrogen. PTG is a method for storing energy as
hydrogen or other gases such as methane. It is a fitting solution for
sporadic power generation from renewable energy sources such as solar
and wind energy. Combined with such systems, PTG is used to store energy
as hydrogen when generated energy exceeds the demand and used for
electricity generation in peak hours via a fuel cell and/or hydrogen internal
combustion engine coupled to electricity generators [80, 81]. Hydrogen
may be fed to existing gas lines, used as transportation fuel, stored in tanks
or used to synthesise hydrocarbons [81-83]. Figure 11 shows components
of a PTG system and uses of the hydrogen produced.
Figure 11 - Power-to-gas system (Paper V)
Combined heat and power
CHP produces and utilises heat and power from a single energy source
which is enabled by co-locating supply and demand. Due to the fact that it
Electrolyser H2 Storage
Methanisation
Industry
H2 Fuelling
Fuel Cell, H2-fuelled Generator
Gas Network
CH4
Renewable electricity
Multi-generation | 27
is easier to transfer excess electricity than excess heat, CHP systems are
designed to meet a given heat demand. This limits CHPs to high heat-
demand users. Conventional separate generation of heat and power has
losses at power plant, distribution and heat generation. Since power and
generation is combined and located at/close to point of use, CHP systems
have smaller losses and may reach much higher total efficiency levels.
Figure 12 illustrates an example comparison between CHP and
conventional heat and electricity generation.
Figure 12 - Sankey energy flow diagram of a combined heat and power
system
A CHP system consists of a prime mover, an electricity generator, a heat
recovery system and a control system. The prime mover generates
electricity via driving the generator and also creates usable heat that is
recovered and used for heating purposes. Another benefit of CHP is being
able to utilise almost any primary fuel depending on the prime mover.
Some prime movers can even use multiple fuel types, which provides
flexibility against price volatility and addresses energy security concerns.
28 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Combined cooling, heating and power
CCHP is a derivation of CHP. It has all the advantages of a CHP system and
utilises the recovered heat further providing space cooling or cooling for
processes, increasing the total efficiency. Figure 13 shows a Sankey energy
flow diagram comparing CCHP to conventional separate generation. In
short, a CCHP system is a CHP coupled with a thermally driven cooling
system.
Figure 13 - Sankey energy flow diagram of a combined cooling heating
and power system (Paper VI)
Thermally driven cooling technologies
Thermally driven cooling systems are designed to use heat for cooling
purposes. They have been commercially available for decades. There are
different types of thermally driven cooling that use different
thermodynamic cycles in varying capacities. Although compared to
conventional vapour compression systems, they have lower efficiency and
higher capital costs, their ability to utilise waste energy makes them
attractive especially when there is large amount of waste heat available
[84]. There are several types of thermally driven cooling systems. The types
that are studied in this thesis are open cycle adsorption and absorption
cooling.
Multi-generation | 29
Open cycle adsorption cooling
Open cycle adsorption cooling is based on dehumidification of outside air
with an adsorbent such as silica gel or LiCl. After dehumidification with the
help of a sorption wheel, the air is precooled with maximally humidified
exhaust air and cooled down to feeding temperature by evaporative
cooling. Low temperature heat is used to heat exhaust air to be used in
regeneration. The adsorbent is then regenerated with this heated air [15].
Figure 14 illustrates the operating principle.
Figure 14 - Operating principle of open cycle adsorption cooling (adapted
from [85])
Sorption wheel
The sorption wheel is the key technology behind open cycle adsorption
cooling’s continuous nature. Adsorbent is embedded into a wheel which
has two air flows; the air that needs to be dehumidified and the
regeneration air that desorbs the moisture from the desiccants. The wheel
rotates with a constant speed changing the part of embedded adsorbent
that is in contact with the flows continuously, constantly drying the
adsorbent with regeneration while using the regenerated part to
dehumidify the other flow. The speed of the wheel is adjusted with the
temperature of the regeneration air and humidity conditions to prevent
heat inhibition, inhibition of the adsorbents caused by over desorption and
heating [15, 16]. Figure 15 is an illustration of a commercially available
sorption wheel.
Heat
Source
Sorption
Wheel
Heat
Exchanger
Humidifiers
Inlet
Air
Exhaust
Air
Outside Air
Waste air
30 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 15 - Sorption wheel [86]
Open cycle adsorption systems are mainly used where there is low
temperature heat available, for instance waste heat from a PEMFC or heat
from solar thermal collectors. The system may only be used at low outside
air humidity. If the outside air humidity is higher than the system can
handle, it is possible to couple it with an absorption chiller.
Absorption Cooling
Absorption cooling is very similar to conventional vapour compression
cooling, but instead of a mechanical compressor absorption system it uses
an absorber to compress the refrigerant vapour. The systems has four main
elements: generator, condenser, evaporator and absorber. In the generator
refrigerant - ammonia or water - is separated from solvent - water, LiBr -
by evaporation with the heat input. The refrigerant in vapour form then
goes to the condenser where it is condensed back into liquid form. Liquid
refrigerant flows to the evaporator through a nozzle where it takes heat
from a chilled water circuit. Once again vaporised refrigerant goes into the
absorber, being absorbed back into the refrigerant-weak solution which
Multi-generation | 31
comes from the generator and is pumped to the generator as refrigerant-
rich solution. Figure 16 illustrates the working principle of the system.
Figure 16 - Working principle of absorption cooling (Paper VI)
Cooling Water
Cooling Water
Chilled Water
Hot Water/Steam
Refrigerant-rich solution
Refrigerant-poor solution
Absorber
Evaporator
High Pressure Chamber
Generator
Condenser
Liquid Refrigerant
Low Pressure Chamber
32 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Methodology | 33
Methodology
Evaluation of environmental impacts of fuel cell systems is done by Life
Cycle Assessment using Eco-indicator 99 method. Economic aspects of the
systems are assessed using capital budgeting techniques. Both of these
assessments required calculations of energy demand and power generation
for sizing of systems and/or defining parameters.
Environmental assessments
Life cycle assessment
The environmental life cycle of a product consists of all the stages from raw
material extraction to its waste management. LCA is an evaluation method
of environmental impacts related to a product that considers all the energy
and material inputs and wastes to the environment throughout the
product’s life cycle; from extraction and processing of raw material to
manufacturing, from distribution to recycling and final disposal of it [87].
An LCA study is performed in four phases as shown in Figure 17.
Figure 17 - LCA procedure (adapted from [87])
The LCA Procedure
Goal and Scope
Definition
Inventory
AnalysisInterpretation
Impact
Assessment
34 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Goal and scope definition
Goal and scope definition is the phase where the product/process/system
that is going to be assessed are stated. It should include details such as
purpose of the study, intended audience and specifications of the flow
model to be constructed in the subsequent inventory analysis phase, such
as, the functional unit, system boundaries, data sources, impact categories.
It is important to be as clear as possible in these definitions, leaving no
space for ambiguities and being consistent with the intended application.
Figure 18 shows the flow chart that is generally part of the output of this
first phase
Figure 18 - Initial flowchart (adapted from [87])
Raw Material
Acquisition
Processes
Transports
Manufacture
Use
Waste
Management
Resources e.g.
Raw materials,
Energy,
Land resources
Emissions to
Air
Water
Ground
System
Boundary
Distribution
Methodology | 35
Inventory analysis
In this phase a system model according to the requirements of first phase
is built. This model is built upon the rudimentary flow chart developed in
the first phase. In the inventory analysis phase this flow chart is expanded
to show all modelled activities and flows between them [88]. Then
input/output data for these activities are collected, such as energy, raw
materials, intermediate products, solid wastes and emissions to water and
air, and used to calculate the amount of resources used and pollutant
emissions of the system in relation to the functional unit.
Impact assessment
The impact assessment phase aims to describe the impacts of the
environmental loads quantified in the previous phase. This allows the
practitioner to convert the results from inventory analysis, from emissions
and resource use to impacts on environment, and combine them into fewer
parameters. In a classification step inventory results are sorted according
to the environmental impact they cause. Then, in a characterisation step
the impact contributions of these groups are calculated using scientific
models of cause-effect chains in the natural systems of varying complexity.
These results may then be combined into a limited number of impact
categories chosen in the first phase. Life cycle impact assessment is thus a
stepwise aggregation of the information from the previous step as shown
in Figure 19.
36 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 19 - Illustration of the stepwise aggregation of information in the
impact assessment phase (adapted from [87])
Interpretation
This phase summarises the results from previous phases to create a basis
for conclusions and recommendations for decision makers according to the
statements made in the goal and scope definition. This may be done by
selecting the most important parameters to present or to present them in
weighted impact assessment results.
Variants of LCA
There are several variants of LCA according to choices made in the goal and
scope definition phase. Figure 20 illustrates the different variants. Two of
these variants were used in this work.
ClassifiedInventory
Results
CharacterisationResults
WeightingResults
H+ equiv.
Acidificationpotential
One-dimensionalindex
Eutrophication Potential
SO2
NOX
HCl
Etc.
NOX
NH3
P
Etc.
CO2
Etc.
CH4
CFC5
Global Warming Potential
N equiv.
GWP
Etc.
Methodology | 37
Cradle-to-Grave: A full scope LCA from the extraction of raw material,
cradle, used in the manufacturing of the product to disposal, grave, of the
product.
Cradle-to-Gate: An assessment that covers only part of the life cycle, that
is from raw material extraction until the product exits the factory gate.
Figure 20 - LCA variants [89]
Eco-indicator 99 impact assessment method
Figure 21 illustrates the steps of the impact assessment method used in this
work: the Eco-Indicator 99 methodology with sub-procedures and
intermediate results from inventory analysis data to single score indicator.
Eco-Indicator 99 describes natural resource use and pollutant emissions
quantitatively and then analyses and classifies them into 11 impacts. In the
next step these impacts are grouped into three damage categories: Human
Health (Disability-adjusted life years), Ecosystem Quality (in Potentially
disappeared fraction per square meter per year) and Resources (in MJ
surplus energy) [90]. These impacts on the three damage categories are
then normalised using a reference system and further aggregated to a
single score by weighting.
38 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 21 - General representation of the Eco-Indicator 99 methodology
(adapted from [90])
Ext
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case
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Methodology | 39
Energy related calculations
Cooling and heating load calculations
The amount of energy that needs to be removed or added from a space by
the air-conditioning system to maintain the level of comfort, are called
cooling and heating loads, respectively [91]. Accurate calculation of the
cooling and heating loads is important for the selection and sizing of
cooling and heating system components. In the cases of CHP or CCHP it
also affects the selection and sizing of prime mover and heat recovery
systems.
There are several components that should be taken into account when
calculating cooling and heating loads.
The heat coming from outside:
o through walls, floor, ceiling, windows and doors by
conduction, convection and radiation.
o infiltration
o ventilation
the heat generated inside:
o lighting
o electrical devices/appliances
o occupants
Since the studies focussed on economical evaluation, for these calculations
relatively simple methods were selected.
Heat gain/loss through surfaces was calculated using following formula
[92]:
𝑄 = 𝑈 ∗ 𝐴 ∗ ∆𝑇 (1)
where Q is heat (W), U is the overall heat transfer coefficient (𝑊𝑚2𝐾⁄ ), A
is the surface area in contact with outside air (𝑚2), ∆𝑇 is the temperature
difference between the two sides of the surface (𝐾).
The overall heat transfer coefficient is calculated via the formula [92];
40 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
1
𝑈=
1
ℎ𝑖+ ∑
𝑑𝑥𝑖
𝑘𝑖+
1
ℎ𝑜 (2)
where hi and ho are inner and outer convection heat transfer coefficients
(𝑊𝑚2𝐾⁄ ), dxi is the thickness of the individual material layer (m), ki is
thermal conductivity of the material.
The heat gain/loss via ventilation was calculated via the following formula
[92];
𝑄 = �̇� ∗ 𝑐𝑎𝑖𝑟 ∗ ∆𝑇 (3)
where �̇� is mass air flow (kg/h), cair specific heat of air (0.28 𝑊ℎ𝑘𝑔𝐾⁄ ), ∆𝑇
is the temperature difference between outside and inside air (K).
Heat gain from lighting and electrical devices is assumed to be equal to the
power of the lighting and devices. Heat gain from occupants in an office
environment is assumed to be 115 W/person [93].
The sum of these components gives the heating/cooling load that will be
met by the air-conditioning system. This sum will be positive for cooling
load and negative for heating load.
Adsorption cooling components sizing
Properly sizing a cooling system is important environmentally as well as
economically. To choose the correct components for an adsorption cooling
system, it is imperative to know the air flow the system will need to meet.
Figure 22 - Steps of open cycle adsorption cooling (adapted from [85])
Heat
Source
Sorption
Wheel
Heat
Exchanger
Humidifiers
Inlet
Air
Exhaust
Air
Outside Air
Waste air
1 2 3 4
569 78
Methodology | 41
Figure 22 shows the numbered steps that correspond to points on the
Mollier Diagram in Figure 23. By dividing cooling load by the difference
between the enthalpies of the 4th and 5th steps, which is the amount of heat
taken from the air-conditioned space in Wh/kg, the mass flow of the air in
the system is calculated. These enthalpy values may either be calculated
using the formulae given in [85] or using a Mollier diagram. The air flow is
also important to ensure that the system will ventilate the space sufficiently
to keep the CO2 levels below health limit, 2.7g CO2/m3.
Another important value that may be learned from the Mollier diagram is
the absolute humidity difference between steps 1 and 2. This gives the
amount of water the sorption wheel needs to take from outside air, which
determines the size and amount of desiccant in the sorption wheel.
42 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 23 - Mollier diagram of an adsorption cooling system (Paper III)
Methodology | 43
Electricity from photovoltaics and wind
Determining the amount of electricity generated from photovoltaics (PV)
panels and wind turbines is important to define the system components
and the size of them and to make sure that the system will be able to meet
the power load. The first step in this is making an availability analysis,
determining the available sun and wind power at the site. Solar irradiation,
sunshine duration and wind speed data are collected as hourly average,
daily average or monthly average according to the sensitivity needed for
the analysis. This data is then used in the formulae below to calculate the
electricity expected to be generated by PV panels and wind turbine.
Energy from PV panels:
𝐸𝑃𝑉 = (∫ 𝐼𝑟(𝑡)𝑑𝑡)𝑆ƞ𝑃𝑉ƞ𝑖 (4)
where S is the surface area of the PV cells, PV is the efficiency of the PV
panels, i is the efficiency of the inverter, and rI is the irradiance (W/m2)
[94, 95].
Electricity produced from wind:
𝐸𝑊 = (∫1
2𝜌𝐴𝐶𝑝(𝜆, 𝜃)𝑣(𝑡)3𝑑𝑡) ƞ𝑆 (5)
where S is the system efficiency with battery and inverter, is the air
density, A is the rotor sweep area, PC is the power coefficient - a function
of tip speed ratio( ) and pitch angle( ) - and v is the wind velocity (m/s)
[94, 95].
Economic calculations
Payback period
Payback period is the amount of time required to recover the funds that
were spent on an investment, or to reach the break-even point. In cases of
comparison of a new system with high investment costs to a conventional
system the formula below is used [96].
44 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
𝑃𝑎𝑦𝑏𝑎𝑐𝑘 𝑃𝑒𝑟𝑖𝑜𝑑(𝑦𝑒𝑎𝑟𝑠)
=𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 (𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦)
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 (𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦
𝑦𝑒𝑎𝑟) (6)
It is an approximate measure of the rate of cash flow. Although it does not
tell anything about the project’s earning rate after the payback, and does
not consider the size and profitability of the project, it is enough to have an
idea on what to expect from the project.
Cost of electricity comparison
Making sure that a project is profitable and its return is higher than that of
the opportunity cost of capital is essential when evaluating energy systems.
The aim is to find the alternative system that meets the energy
requirements of the project with the least cost. When comparing
alternatives with different energy output, the cost of electricity production
per kWh is used as reference [96]. The calculations made can be simplified
to the following formula:
𝐶𝑜𝐸:𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 (𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 + 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡𝑠 ∗ 𝑦𝑒𝑎𝑟𝑠)
𝑇𝑜𝑡𝑎𝑙 𝑒𝑙𝑒𝑐𝑡𝑟𝑖𝑐𝑖𝑡𝑦 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑒𝑙𝑒𝑐𝑡𝑟𝑖𝑐𝑖𝑡𝑦 𝑜𝑣𝑒𝑟 𝑙𝑖𝑓𝑒𝑡𝑖𝑚𝑒 (7)
Equivalent annual cash flow
Another method for evaluating an energy system is to calculate how much
benefit the system will bring yearly. As a derivation of equivalent annual
cost, Equivalent Annual Cash Flow (EACF) is a method that incorporates
one time and irregular costs such as initial investments or large part
changes, into the annual cash flow and calculated using the following
formulae [97]:
𝐸𝐴𝐶𝐹 =𝑁𝑃𝑉
𝐴𝑙,𝑖
(8)
𝑁𝑃𝑉(𝑖, 𝑙) = ∑𝑅𝑡
(1 + 𝑖)𝑡
𝑙
𝑡=0
(9)
𝐴𝑖,𝑙 =1 − 1 (1 + 𝑖)𝑙⁄
𝑖 (10)
Methodology | 45
where NPV is Net Present Value of cash flow throughout the lifetime of the
system including the capital investment, A is the present value of the
annuity factor, l is expected lifetime of the project, i is interest rate, t is
period, and Rt is cash flow (income-expenses) for a given period.
46 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Results and Discussion | 47
Results and Discussion
There are several applications of fuel cells that may be a market entry point.
This body of work focussed on stationary applications such as backup
power, CCHP, CHP and PTG systems.
Environmental impacts of fuel cells
To gain insight into the implications of environmental impacts fuel cells
cause a preliminary environmental comparison between PV panels, wind
turbine, diesel generator and a fuel cell was made using cradle-to-gate
approach with 1 kW power generation capacity as the functional unit.
Impact assessment was made according to the Eco-indicator 99
methodology. Results were assessed in three damage categories: Human
health, Ecosystem quality and Resources.
Figure 24 - Impacts of the systems on human health (Paper I)
Figure 24 demonstrates the impact of the systems investigated on human
health in Disability-Adjusted Life Years (DALY). The impact of PV panels
and PEMFC are much larger than for both diesel generator and wind
0,00E+00
1,00E-04
2,00E-04
3,00E-04
4,00E-04
5,00E-04
6,00E-04
7,00E-04
DieselGenerator
PEMFC PV WindTurbine
Human Health
DALY
48 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
turbine. PV panels have the highest impact on human health, this is mostly
due to the emissions of volatile organic compounds and sulphuric peroxide
mixture in the production line. Comparing the backup power options,
PEMFC and diesel generator, the PEMFC has almost three times more
impact on human health than the diesel generator.
Figure 25 - Impacts of the systems on ecosystem quality (Paper I)
Calculations of the impacts on ecosystem quality includes land use,
pesticides, heavy metals and concentration changes of these in water and
soil; it gives results in Potentially disappeared fraction per square meter
per year (PDF/m2year). This is the proportion of species that might be lost
because of the impact. Figure 25 shows that PV panels have the higher
impact in this category and the diesel generator the lowest.
0,00E+00
1,00E+01
2,00E+01
3,00E+01
4,00E+01
5,00E+01
6,00E+01
DieselGenerator
PEMFC PV WindTurbine
Ecosystem Quality
PDF*m2yr
Results and Discussion | 49
Figure 26 - Impact of the systems on resources (Paper I)
Although life cycle inventory studies indicate that the primary energy used
for Si feedstock and wafer production for PV panels is a large factor [98,
99], PV panels still have the least impact on resources. In Figure 26 wind
turbine and diesel generator impact on resources are shown as the highest.
0,00E+00
2,00E+01
4,00E+01
6,00E+01
8,00E+01
1,00E+02
1,20E+02
1,40E+02
1,60E+02
1,80E+02
DieselGenerator
PEMFC PV WindTurbine
Resources
MJ SE
50 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 27 - Combined impacts of the systems in single score (Paper I)
The results in Figure 27 show that the order of the burden from the system
production is wind turbine > diesel generator > PEMFC > PV panels. The
largest impact for all power generation systems are in the resources
damage category. Resources impact category measures the amount of extra
energy needed to extract the resources from nature by the next
generations. As the study’s scope is cradle-to-gate, not including recycling
possibilities at the decommissioning, and the materials used at both diesel
generator and wind turbine production are highly recyclable in comparison
to the ones used in PV and PEMFC production, these results are not
enough to give a fair comparison.
0
100
200
DieselGenerator
PEMFC PVWind
Turbine
Resources 200,73 148,61 140,60 211,86
Ecosystem Quality 0,92 1,98 3,10 1,10
Human Health 13,14 38,22 40,04 16,40
Pt
Single Score Results
Results and Discussion | 51
In light of this a more comprehensive study was needed to be made to
obtain a better insight into the full impact of these systems on the
environment. A full LCA study including combinations of these power
generation systems was performed. Table 2 shows the list of combinations
that were investigated. The results were evaluated to compare the
contribution of system components toward the total impact.
Table 2 – Combinations of power generation systems (Paper II)
Main Power Source Backup Power
System
Hydrogen
Storage
Photo Voltaic + Wind
Turbine Diesel Generator -----
Photo Voltaic + Wind
Turbine Fuel Cell 150 bar
Photo Voltaic + Wind
Turbine Fuel Cell Metal hydride tank
Photo Voltaic Diesel Generator -----
Photo Voltaic Fuel Cell 150 bar
Photo Voltaic Fuel Cell Metal hydride tank
Wind Turbine Diesel Generator -----
Wind Turbine Fuel Cell 150 Bar
Wind Turbine Fuel Cell Metal hydride tank
52 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 28 - Distribution of the system impact over damage categories –
Comparison of main power sources (Paper II)
To compare the main source alternatives the diesel generator was kept
constant as backup system. Since it uses the least amount of diesel, PV-W
was expected to have the least impact, as may be seen in the Figure 28.
However it has the highest impact on the environment. Results indicate
that a wind turbine is a more environmentally friendly option as the main
power source.
0,00
500,00
1000,00
1500,00
2000,00
2500,00
PV-W+DG PV+DG W+DG
Resources 2337,09 2248,25 2185,50
Ecosystem Quality 19,18 17,11 11,65
Human Health 204,65 185,55 130,43
Sin
gle
Sco
re In
dic
ato
r
Results and Discussion | 53
Figure 29 - Distribution of the system impact over damage categories –
Comparison of backup power systems (Paper II)
Figure 29 illustrates the comparison between backup systems, which is
made with the combination of PV panels and wind turbine as the main
power source for its lower backup power requirement. Among the three
options, the diesel generator has the least impact on the environment.
Compared to a diesel generator, fuel cell systems have higher, by more than
three times, impact in the human health damage category. In both
combinations fuel cells constitute the largest part of the human health
impact.
0,00
500,00
1000,00
1500,00
2000,00
2500,00
3000,00
3500,00
PV-W+DGPV-
W+FC/MeHPV-
W+FC/PH2
Resources 2337,09 2247,09 2079,34
Ecosystem Quality 19,18 43,47 39,27
Human Health 204,65 711,42 640,99
Sin
gle
Sco
re In
dic
ato
r
54 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Figure 30 - Distribution of the system impact over damage categories –
Comparison of hydrogen storage methods (Paper II)
Figure 30 shows the results of the comparison between hydrogen storage
alternatives. Metal hydride storage tanks have more impact than
pressurised hydrogen tanks in every damage category due to the
components such as lanthanum compounds used in them.
When all systems were compared together, results show that PV panels
with wind turbine coupled with a fuel cell system as backup with metal
hydride hydrogen storage has the highest impact on environment. The
system with a wind turbine as the main power source and a diesel generator
as backup power has the least overall impact. This is probably due to the
highly recyclable materials used in these systems compared to the others.
Figure 31 shows the overall comparison results for all nine alternatives.
0,00
500,00
1000,00
1500,00
2000,00
2500,00
3000,00
3500,00
PV-W+FC/MeH PV-W+FC/PH2
Resources 2247,09 2079,34
Ecosystem Quality 43,47 39,27
Human Health 711,42 640,99
Sin
gle
Sco
re In
dic
ato
r
Results and Discussion | 55
Figure 31 - Overall LCA results for nine alternatives (Sorted by total
impacts points) (Paper II)
When looking at damage categories separately;
in resources damage category: PV panels with wind turbine as main
power coupled with a diesel generator has the most, wind turbine
coupled with fuel cell with pressurised hydrogen has the least impact.
in ecosystem quality damage category: PV panels with wind turbine
with fuel cell using metal hydride has the most, wind turbine with
diesel generator has the least impact.
and in human health damage category: again PV panels with wind
turbine with fuel cell using metal hydride has the most, wind turbine
with diesel generator has the least impact.
Between the individual components: the battery bank has the highest
impact in the resources damage category. Fuel cells have the highest
impact in both the ecosystem quality and the human health categories
and second highest in the resources category.
56 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Fuel cell-based combined cooling, heating and power
The first application economically evaluated was a hypothetical PEMFC
cogeneration system powering an office building in Turkey. Coupled with
an Open Cycle Adsorption Cooling system, the system meets the building’s
cooling demand as well as its power and heating demands. The preliminary
assessment was based on a traditional grid electricity – boiler heating –
electric air conditioner triad. The results showed that the difference in the
capital costs may be paid in full by the yearly savings in operational costs
in less than 13 years. Expected rises in electricity prices may cause a more
rapid payback in the future. Table 3 and Table 4 show capital and
operational costs for a conventional system and PEMFC-CHP.
Table 3 - Capital costs comparison (Paper III)
Capital Costs (EUR)
Fuel cell-based CHP 257.000 EUR
Desiccant cooling 85.500 EUR
CHCP Total 342.500 EUR
Boiler system for heating 7.000 EUR
AC 16.000 EUR
Conventional System Total 23.000 EUR
Table 4 - Operational costs comparison (Paper III)
Operational (EUR/year)
Fuel cell-based CHP maintenance 5.900 EUR
Desiccant cooling maintenance 1.250 EUR
Fuel Cost 31.100 EUR
Avoidance by selling electricity 17.900 EUR
CCHP Total 20.350 EUR
Fuel cost for heating 22.900 EUR
Electricity (Including A/C) 22.600 EUR
Conventional System Total 45.500 EUR
Results and Discussion | 57
Although it is technologically possible to use fuel cells as prime mover for
CCHP systems, high capital costs make them unfeasible for the current
state of technology and energy prices. Although Governmental incentives
for environmentally friendly technologies are not taken into account in the
analysis, they may decrease the payback time making the system more
economically feasible. The FC-CCHP has a substantially lower operating
cost.
Excess electricity that is assumed to be sold to the grid is a significant part
of the savings in operational costs of a FC-CCHP. Without electricity
sellback the payback takes 16 years. From this result it may be extrapolated
that, to encourage investors to put money into such DG systems, it is
imperative to realise the electricity sellback schemes.
With the results of this study the question of ‘What are the conditions that
make FC-CCHP economically feasible?’ has been partially answered. A
high and consistent thermal and electrical demand were the essential
requirements for making FC-CCHP feasible. The next step in the search
was to find an application with a steady thermal and electrical demand;
cooling and powering of a data centre could meet the requirement. So the
next application to be investigated was a system that powers and cools a
data centre. An MCFC-based CHP system coupled with an absorption
cooling system was assessed to see if it could meet the energy demand of a
data centre at KTH – Royal Institute of Technology, campus Stockholm,
Sweden.
EACF for the system was calculated using the savings over the existing
methods (district cooling and grid electricity) as income. Calculations
revealed that the system saves around 815 000 EUR on electricity, cooling
and heating expenses as well as maintenance of backup systems compared
to the existing methods. However, considering the capital and O&M costs,
the system has an equivalent annual loss of approximately 317 000 EUR.
This means that, with current energy prices and state of technology, such
investments are not feasible. Assuming no change in the natural gas (NG)
price and a yearly 3 % rise in electricity and 2 % rise in cooling and heating
prices as well as in O&M costs, the system becomes feasible giving an EACF
of approximately 428 000 EUR.
58 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
As a data centre has a high thermal energy demand, the high electrical
efficiency of a fuel cell causes an excess of generated electricity when the
system is set to meet the cooling demand. Since Sweden does not have an
electricity sell-back scheme, the excess electricity is assumed to be used in
the office part of the building where the data centre is located and also in
the surrounding buildings on campus. It is also possible to use extra
electricity in electric cooling to decrease the cooling demand or to meet the
power demand and supplement the extra cooling from district cooling.
Both cases are proven to be less economic by approximately 83 000
EUR/year and 430 000 EUR/year, respectively.
The lifetime for fuel cell stacks is increasing with continuous research and
the next generation is expected to have 7 years of lifetime. When this
change in lifetime is taken into account, i.e. considering stacks with 7 years
lifetime, the EACF is increased by approximately 131 000 EUR. There is
also a 10 year warranty from the manufacturer that includes the first fuel
cell stack change for free. If this deal is to be incorporated into the
calculations the loss becomes more tolerable at 94 000 EUR/year. Table 5
shows the EACF results for all six scenarios.
Table 5 - EACFs of different scenarios (Paper VI)
Scenario EACF
Original Scenario -317 000 EUR
Energy Price Projections +428 000 EUR
Extra El. used for cooling -400 000 EUR
Power Load Mode -745 000 EUR
7 Years Stack Lifetime -186 000 EUR
Fuel Cell Energy Deal -94 000 EUR
High capital costs and O&M costs together with low lifetime of fuel cell
stacks causes the FC-CCHP to be unfeasible. Nonetheless, in the near
future these systems may become feasible through technological
improvements and decrease in O&M and capital costs due to mass
production triggered by a broader market. A 1 % yearly change in natural
gas and electricity prices brings a change of 50 % and 56 % in EACF,
respectively, meaning a substantial change in natural gas and electricity
prices may cause the FC-CCHP to become feasible.
Results and Discussion | 59
Although the high thermal demand of data centres makes it possible to use
less electrically efficient prime movers, advantages such as low emission
and noise makes fuel cells a major competitor for data centre CCHP. Using
FC-CCHP as the main energy system with grid and district cooling as
backup will also increase energy reliability for the data centre.
The projected changes for natural gas and electricity prices, possible
savings due to heat recovery from the server racks and absorption cycle
exhaust and also possible governmental subsidies and sustainability tax
incentives could make FC-CCHP for data centres a feasible investment.
Fuel cell-based combined heating and power
The unit cost of electricity is used as a criterion for comparing Fuel Cell-
based Combined Heat and Power (FC-CHP) and other small-scale
electricity generation technologies. The data used was collected from
literature, personal interviews, technical reports and product brochures.
Results were grouped by technology, MCFC-based systems and PEMFC-
based systems, and time, 2010 and 2020 projections. The average
electricity cost in 2010 from MCFC-CHP and PEMFC-CHP is 0.29
EUR/kWhel and 0.41 EUR/kWhel, respectively. Projections indicate that
this will be halved by 2020. It will be 0.14 EUR/kWhel for MCFC-CHP and
0.24 EUR/kWhel for PEMFC-CHPi. Table 6 shows a comparison of the
results of Paper IV to results for semi-commercial small-scale technologies
from a report [101] published in 2011 and using the same model. Although
with more scope for improvement a larger reduction in electricity cost for
PEMFC-CHP and MCFC-CHP is expected, in the case of PEMFC-CHP the
electricity cost will be higher than that of other technologies in 2020 as well
as 2010. The MCFC-CHP, on the other hand, might be comparable to some
of the currently semi-commercial technologies such as solar cells and
biogas internal combustion engine. These results also indicate that MCFC-
CHPs might reach below the upper limit of levelised cost of energy for fuel
i The calculations were made in Swedish Crowns (SEK) and then the results were converted to euro [100]
60 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
cells published in Lazard’s LCOE Analysis – V5 (0.17 EUR/kWh), meaning
that MCFC-CHP systems might make profit albeit small.
Table 6 - Electricity costs of different semi-commercial small scale
technologies from [101] compared with the results of (Paper IV)
(EUR/kWhel) Capacity
(MW)
2010 2020
Biogas – Internal combustion engine 1 0.20 0.16
Natural gas motor 1 0.08 0.08
Natural gas motor 0.1 0.11 0.11
Biogas organic rankine cycle 2 0.14 0.13
Waste heat organic rankine cycle 0.5 0.08 0.08
Solar cells 0.05 0.55 0.23
MCFC-based CHP ii 0.29 0.14
PEMFC-based CHP ii 0.41 0.24
Although in comparison to other small scale semi-commercial systems,
FC-CHPs have higher electricity costs, it is projected that the FC-CHPs will
have larger improvements and thus larger cost reduction in the future. It
is also imperative to consider all the advantages fuel cells if fuel cells are to
make it to the market on commercial grounds. Table 6 shows this
comparison.
It can be seen in Figure 32 that cost contribution of fuel increases as
expected between 2010 and 2020. Contrary to the expectation however,
the share of O&M cost also increases. This is because of the unreliable
nature of O&M costs of demonstration projects, which are simply higher
than for commercial applications. The limited number of trained personnel
for O&M and the low maturity of fuel cell systems are the two main causes
for high O&M costs for a young technology. This may be overcome by a
broader market, increasing the number of skilled personnel and product
maturity. It will of course also bring higher availability and reliability for
ii Capacity of the systems investigated in this study varies.
Results and Discussion | 61
these systems. Collection of more realistic O&M data and their evolution
over time may help a great deal in solving this uncertainty. This is an
important area for further studies.
Figure 32 - Comparison of average cost contribution
Figure 32 also shows that the share of capital cost declines with time, as
expected. This decline will surely be greater, due to the fact that current
projections for fuel cell stack lifetime are higher than they were when the
study was performed.
Power-to-gas
Power-to-gas is a promising stationary application for fuel cells. PTG with
fuel cells may be the solution to the sporadic nature of wind and solar
power. To determine the economic feasibility of FC-PTG an existing case
62 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
in Bozcaada, Turkey was investigated. Three hypothetical scenarios were
taken into consideration as well as the existing system.
Figure 33 shows the block diagrams of the scenarios investigated.
Figure 33 - Block diagrams of the scenarios studied. (A) Scenario 1:
Existing system of PTG in Bozcaada (B) Scenario 2: PEM fuel cell and
electrolyser replaced by a Reverse Molten Carbonate Fuel Cell (R-
MCFC) (C) Scenario 3: No electricity generation from H2, it is sold as
chemical or fuel (D) Scenario 4: Only PV panels and Wind (Paper V)
The system generates a 179 MWh/year electricity and has a 62.4
MWh/year demand. Table 7 shows the per year results of the power
generation calculations for each scenario. The energy calculation results
are same for scenarios 1 and 2 since the only difference between the
20 kW PV Panels
30 kW Wind Turbine
AC
=
~
~
~
Governor s Building
Net Metering
Grid
(D)
20 kW PV Panels
30 kW Wind Turbine
21 kW R-MCFC
H2 @30 Bar
AC
=
~
=
~
~
~
Governor s Building
Net Metering
Grid
(B)
Compressor
(A)
20 kW PV Panels
30 kW Wind Turbine
21 kW FC
H2 @30 Bar
11 Nm3/h Electrolyzer
AC
=
~
=
~
~
~
Governor s Building
Net Metering
Grid
Compressor
(C)
Grid
20 kW PV Panels
30 kW Wind Turbine
H2 @200 Bar
11 Nm3/h Electrolyzer
=
~
~
~
Governor s Building
Net Metering
AC
Compressor
Results and Discussion | 63
scenarios is the fuel cell and electrolyser technologies. Scenario 4, which
does not have power-to-gas capabilities, has the highest amount of
electricity sold and bought from the grid because there is no energy storage.
Table 7 - Results of energy calculations (per year) (Paper V)
Scenarios 1 - 2 Scenario 3 Scenario 4
Sold to grid 104 MWh 2 MWh 128 MWh
Bought from grid 2 MWh 12 MWh 12 MWh
Used in electrolyser 24 MWh 126 MWh -
Sold as H2 - 75 MWh -
The results showed that all of the scenarios with PTG have negative EACF
and, therefore, will result in loss over their lifetime; hence they are
unfeasible. PTG with R-MCFC has the highest EACF, due to the lower
capital cost compared to PEMFC + electrolyser. Although the PV-Wind
system itself is a relatively good investment, almost feasible with a 1:1 feed-
in tariff, the lifetimes of electrolysers and fuel cells are not long enough and
capital costs are too high. Hence investing in PTG systems for a small-scale
system like this is not feasible. Table 8 lists the EACF values of the
scenarios for different feed-in tariff cases.
Table 8 – EACF values of the scenarios in different feed-in tariff cases
(Paper V)
EACF (USD/year) Scenario 1 Scenario 2 Scenario 3
Scenario 4 Diesel Chemical
No feed-in tariff -85 492 -63 487 -65 019 -69 489 -17 467
1:1 feed-in tariff -75 801 -53 797 -64 791 -69 201 -796
2:1 feed-in tariff -66 111 -44 106 -64 563 -69 033 15 874
Incorporating an increase of 4-6 % in electricity price and 2-3 % on O&M
costs shows that, although the results are sensitive to such changes, this is
not enough to turn the system feasible.
Figure 34 shows the effect of feed-in-tariff on EACF of the scenarios. This
impact is highest in Scenario 4, where the amount of electricity sold to the
64 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
grid is highest. For this scenario the no feed-in-tariff case causes a loss of
17 500 USD a year. A 1:1 feed-in tariff increases the savings by 3.5 times
and, if the feed-in tariff is raised to double the electricity price, as it was in
Germany between 2000 and 2009 [102], the savings in electricity bill goes
up 6 times and the system makes a profit of approximately 16 000 USD per
year.
Figure 34 - Effect of feed-in tariff on EACF (Paper V)
-90 000
-80 000
-70 000
-60 000
-50 000
-40 000
-30 000
-20 000
-10 000
0
10 000
20 000
0 : 1 1 : 1 2 : 1
EAC
F
FEED-IN TARIFF RATIO
Scenario 1
Scenario 2
Scenario 3(Diesel)
Scenario 3(Chemical)
Conclusions and recommendations | 65
Conclusions and recommendations
Promising applications were looked into during this work to find the niche
application that will give fuel cells the opportunity of market penetration.
The Results of these studies pointed to the following conclusions.
Results from the environmental studies imply that, although during the
use phase fuel cells have next to no emissions, when the manufacturing and
decommissioning phases are included in the calculations they are not so
environmentally friendly. The largest part of the fuel cells’ environmental
impact lies in the resources used, mainly platinum group metals (PGM).
Decreasing loading per geometric electrode area and waste minimisation
during the catalyst deposition and, more importantly, increasing recycling
of PGM are ways to improve this situation. Turning to non-PGM catalysts
might also be a solution. Research should take into account not just the
economics of using PGM as catalysts but also the environmental impact it
brings.
Market size is the key to the future of fuel cells. In all the studies that
constitute this work, capital cost comprised the largest share of the fuel cell
systems’ total cost. This is due to the nature of the ‘production to order’
style of the current fuel cell market. Without a considerable market size it
is not possible to obtain economies of scale. The advantage of an increase
in market size would not only be a decrease in capital costs but also in O&M
costs. Currently, the limited number of trained personnel that deal with
fuel cell system in operation are highly educated people, engineers with
master’s degrees and even PhDs. This brings the O&M costs to a higher
level due to the high salaries of these personnel. A bigger market size will
increase the number of skilled personnel and also decrease the cost of spare
parts, which in turn will bring down the O&M costs. Another reason for
high O&M costs is the low product maturity. However, as the market size
and throughput of fuel cells coming out of factories increase, the product
maturity will also increase, which of course will bring greater reliability and
lower maintenance needs. These are the reasons that finding a niche
market for fuel cells is of the utmost importance.
Without governmental subsidies fuel cell market penetration would be
crippled. Governmental subsidies for fuel cells specifically, as well as
66 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
general schemes such as carbon trade, green certificates, tax rebates for
green technologies, may counteract economic handicaps of fuel cells such
as capital costs and stack lifetime. This will make fuel cells attractive for
investors and therefore speed up the market penetration process.
Feed-in tariff is essential for fuel cells to be feasible, especially for small-
scale co-generation applications. Having high electrical efficiency makes
fuel cells a great candidate for being a co-generation prime mover.
However CHP and CCHP systems with fuel cells end up with excess
electricity when the operation mode is selected to meet thermal load.
Without an electricity sellback scheme it is possible to set the system to
meet the electricity load and meet the excess thermal load with an auxiliary
system such as a boiler, but this method would be inefficient compared to
the thermal load operation mode. In cases where there is no electricity
sellback possibility selling/giving the excess electricity to surrounding
buildings/loads might be a solution. This would limit the sites for fuel cell-
based co-generation. Generating hydrogen with the excess electricity is
another solution to the no sellback issue. Depending on the pricing of
hydrogen and electricity this solution might be more profitable on a yearly
basis, but the capital cost needed for electrolyser and hydrogen
pressurising and storage equipment would render it unfeasible.
Fuel cell stack lifetime has to be improved. It is evident from the results of
the studies that lifetime of the fuel cell stack is an important factor for
feasibility. The stack of a fuel cell system corresponds approximately to 30
% of the total cost. Currently the lifetime of fuel cell stacks prevent fuel cell
systems from ever paying their initial capital cost, due to the cost of fuel
cell stack changes over the lifetime - approximately three stack changes
over the lifetime of the system. The next generation fuel cells are expected
to have almost 1.5 times longer lifetime but it is still not enough when
compared to competing technologies. Lifetime should be the prominent
focus of research going forward.
Decision makers should bear in mind the other benefits and impacts as well
as the economic ones. It might be possible to increase the attractiveness of
fuel cells to investors through environmental subsidies and incentives.
Emphasising the added value of fuel cells for the consumer may be a way
to offset the high costs of fuel cells. Steinberger-Wilckens [9] stated that
Conclusions and recommendations | 67
“Only if the added value and environmental performance are convincingly
displayed will fuel cells be able to claim a substantial part of their potential
market.” It is imperative to show the consumer / investor / decision maker
the added values they will find make it worth the price difference from the
incumbent technologies.
In conclusion, although the current state of technology and energy prices
renders it economically unfeasible, FC-CCHP for data centres, may be a
suitable niche market to allow fuel cells to blossom due to their steady
thermal and power load and constant increase in data centres number.
This niche market may provide the pathway for fuel cells market expansion
and bring mass production and subsequently lower capital and O&M costs.
With these in mind and considering the current projections for stack
lifetime and energy prices, it is expected that an FC-CCHP system meeting
the energy demands of a data centre will be soon economically feasible and
attractive to investors, thus giving fuel cells the opportunity of market
penetration.
68 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
Acknowledgements | 69
Acknowledgements
I would like to express my deep and sincere gratitude to my supervisors;
Göran Lindbergh, Carina Lagergren and Per Alvfors, whose guidance and
support from the initial to the final level enabled me to develop a better
understanding of the scientific process and the subject.
I would like to thank to Bengt Ridell for the insights he has given, Gökçen
Altun for the help she has given during my studies, Gert Svensson for his
support on data centre project, James Wetherhilt and Osman Atanur for
their help with Bozcaada project.
Thanks to Neşet Kadırgan for his support and encouragement of a young
student and inspiration in the field of energy, which set me on my course
toward PhD studies in this field
My deepest gratitude goes to my wife Linda for her unflagging love and
support on every aspect of my life; this dissertation was simply impossible
without her.
I am also grateful to my family for their support throughout my journey in
life; my father for being a role model and teaching me the values of integrity
and hard work, my mother for her constant love and care, my brother
Murat for “infecting” me with love of science, my sisters Reyhan and Fatma
for making me feel loved and never alone.
A special thanks to Rebecca Wilcox Gwynne, who suffered my rantings,
kept me calm, and helped me keep myself healthy.
I offer my regards and gratitude to all of those who believed in me and
supported me in any respect during this long journey with ups and downs.
Finally, my dog Merlin for reminding me of the need to go outside once in
a while and walk in the fresh air while writing a dissertation.
70 | Economic Aspects of Fuel Cell-Based Stationary Energy Systems
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