POWER May 2017 - 22

DISTRIBUTED GENERATION
Whatever Happened to
Fuel Cells?
Courtesy: FuelCell Energy
Hydrogen-powered fuel cells were supposed to be the " Next Big Thing " a decade
ago, but the hype ran well ahead of the market and technology. Yet some quiet advances
and steady work have the sector on the brink of significant impact-if some
promising tech bears fruit.
Thomas W. Overton, JD and Kennedy Maize
N
ot so long along, the world appeared
to be on the cusp of a fuel-cell revolution.
Gas prices were high and battery
technology had not yet matured enough for
realistic electric vehicles. Fueled by hydrogen,
fuel cell-powered cars were poised to
seize a market niche, and cheap, clean power
would be available for numerous other applications.
That
was the idea, anyway. In 2017, three
fuel-cell vehicle models-the Honda Clarity
Fuel Cell, the Hyundai Tucson Fuel Cell, and
the Toyota Mirai-are now commercially
available, but fueling infrastructure remains
in its infancy. Only a few dozen hydrogen
fueling stations exist, mostly in California,
which is projected to have about 100 of them
by 2020. Most projections for market share
suggest fuel-cell vehicles will remain a novelty
for now.
Over in the power sector, things are a bit
different. Fuel cells remain a tiny share of total
generation, but that share is growing. The
largest fuel-cell power plants now reach into
the tens of megawatts.
What sets them apart from the vehicle
sector and what has pushed the power sector
22
further along is the fuel-these projects are
powered not by hydrogen but by abundant
supplies of cheap natural gas. Carried along
with gas turbine-based plants in the recent
glut of shale gas, fuel cells are drawing attention
as a cleaner, more efficient alternative.
Yet even there, the road has not been without
its bumps.
The Limping Fuel Cell Business
As a business proposition, fuel cells have
so far failed to live up to their technological
promise. Developers and entrepreneurs have
been able to dazzle venture capitalists and attract
conventional investors, but thus far none
have been able to realize sustainable profits.
In its 2016 review of the industry, E4tech
said, " The fuel cell industry remains a challenging
place. While some companies and
technologies inch further up the mountain
face towards the summit of commercial
achievement, others hang in crevasses or
have been engulfed by avalanches. "
A good case study, outlined by GreenTech
Media, is ClearEdge, an Oregon company
founded in 2006. ClearEdge was able to raise
some $136 million from Kohlberg Ventures,
www.powermag.com
Applied Ventures, Big Basin Partners, and
Southern California Gas Co. ClearEdge's
strategy was to develop proton exchange
membrane (PEM) fuel cells for combinedheat-and-power
applications at hotels, apartment
buildings, and schools. They were
developing modular systems ranging from 5
kW to 200 kW.
In late 2012, ClearEdge acquired United
Technologies Corp.'s fuel cell business.
UTC Power was the most experienced fuel
cell company in the U.S., having developed
the fuel cells for NASA's Apollo program
and the space shuttle. With the acquisition,
ClearEdge abandoned PEM cells and
switched to UTC's phosphoric acid systems
in the 5-kW to 400-kW range.
It didn't go so well. In April 2014,
ClearEdge filed for bankruptcy. It was bought
by South Korea's Doosan conglomerate and
renamed Doosan Fuel Cell, headquartered
in South Windsor, Conn., in UTC's former
offices. Its financial results are not publicly
available, although it is selling products, particularly
in Asia.
Four other companies are major players in
the U.S. fuel cell business. Three are pubPOWER
| May 2017
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POWER May 2017

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