The European Fuel Cell Forum, Lucerne, 2-6 July 2001.

The European Fuel Cell Forum’s annual conference in Lucerne is one of the most important in the industry’s calendar. Located in the town’s superb new Culture and Congress Centre on the shores of its famous lake, this year the event attracted almost 400 participants from 26 countries, and the level of interest only continues to grow.

The 2001 programme was split into two series of seminars. The first, ‘The Fuel Cell Home’, concentrated on stationary and residential fuel cells, with input from developers, distributors and end-users. The second, the ‘First European PEFC Forum’ discussed issues relating to polymer electrolyte fuel cells. In addition, the programme included demonstrations, posters and exhibitions.

The general mood of the conference was one of optimism, particularly with regard to the commercialisation of stationary and residential fuel cells. In this sector the industry is beginning to move out of the lab, with a number of companies developing mass-market prototypes and establishing routes to market.

This impression was reinforced by several developments highlighted at the conference. Not least, many companies indicated that they were no longer looking for technical improvements to better performance so much as improvements to drive down costs.

Furthermore, target dates for the commercialisation of stationary fuel cell system seemed achievable. By 2005 many makers were hopeful that sales would stand in the four figure region, forecasts which were backed up by current or imminent field trials.

Details were also given about the numerous partnerships which are now in place to facilitate commercialisation, mainly between fuel cell developers and energy generators and distributors. Several representatives from this sector were present at the conference, and seemed keen to gain a foothold in fuel cell markets as they develop in the coming years.

During the conference a number of leading industry players agreed to establish a fuel cell industry initiative to explore what framework and conditions need to be in place to ensure successful fuel cell commercialisation in Europe in the 2003-4 timeframe. Aims of the initiative include introducing measures to ensure market acceptance and the existence of a suitable regulatory framework for commercialisation.

A number of manufacturers are now gearing up for mass production of fuel cell systems and components.

• Asahi Glass started to develop mass production technology for MEAs in 2000. Work to date on this has included establishing the best type of catalyst ink for use in mass production.
• SGL Carbon was keen to emphasise that it is engineering products for mass production as well as for performance. The company has developed an injection moulding process for the manufacture of bi-polar plates (BPPs), and have built a pilot plant that attaches the gasket to the BPP at the same time, doing away with an additional assembly step. In addition, it now makes Gas Diffusion Layers in one reel to reel process.

A number of companies were focusing on technical improvements to drive down costs.

• Siemens AG is trying to shave costs off several components of the fuel cell. It developed metallic bi-polar plates made out of a corrosion resistant iron based alloy, which is far cheaper than carbon or nickel based alloys, the current alternatives. (A figure of $8/kg compared to $50/kg for nickel was quoted.)
• SGL Carbon is developing Gas Diffusion Layers made form carbon fibres and carbon black/PTFE which take stacks to the required performance with less platinum.

The commercialisation of fuel cells for stationary and residential applications is gaining momentum.

• Plug Power is working with Vaillant (who control about 30% of the European domestic boiler market) to develop residential cogeneration units for the European market. A major field test of thousands of commercial units is expected in 2003 and sales are projected to reach 100,000 in Europe by 2010.
• H Power has an $81m contract with ECO, a US consortium of rural electric co-operatives, to market residential cogeneration fuel cells. ECO has placed a contingent order for 12,300 4.5kW units. Installation is to start later this year.
• Osaka Gas has two PEFC cogeneration systems in the pipeline, one at 500W and one at 1kW. It is scheduling field tests for 2003-5 and commercialisation by 2005.
• Sulzer Hexis has developed a 5kW SOFC micro-cogenerator. At present this is a pre-series product. Over two hundred have been signed up for so far, 155 of which are being delivered to EWE (Germany’s largest regional power supplier). Installations start this autumn. The company is aiming for mass market production by 2004.
• California Air Resources Board (CARB) suggested that government organisations investing in stationary fuel cells as back-up power units might help to encourage commercialisation.
• Consolidated Edison, a utility operating in New York City and Long Island, was upbeat about the potential of stationary fuel cells. A representative was confident that the company would, in the future, use fuel cells in regulated and deregulated energy markets. He said that 2005 was being looked at as a start date and that SOFC seemed to be the most promising technology so far.

The deployment of fuel cells in the automotive sector (which was not the primary focus of the conference) seemed further off. Several challenges to commercialisation were mentioned.

• Xcellsis, who plan to build 76 cars and 25 buses in 2000-3, said that cold start up was still a problem, although the company had reduced the start up time from 40 to 2 minutes. In addition, it said that the performance of its reformer was still potentially troubled by vibration.
• The experience of a small Swiss company, ESORO, in the construction of a prototype fuel cell vehicle highlighted several problems surrounding the commercialisation of fuel cells in cars, including stack life, cold temperatures, robustness, weight, and cost.
• The usual deterrents to the commercialisation of fuel cell vehicles were cited, namely the choice of fuel and fuel infrastructure. Marcus Nurdin of the World Fuel Cell Council did, however, point to a growing consensus amongst Original Equipment Manufacturers and others that off-board reforming at the point of sale was the most promising route to follow.
• California Air Resources Board (CARB) aims to demonstrate 20 buses in the next four years, a programme which will then lead to three fuel cell buses in every diesel path district in California. It then hopes to enforce a 15% purchase requirement on Californian transit agencies for Zero Emission buses from 2008 (which will include fuel cell, electric trolley and batter-electric buses).
• CARB’s forecasts for fuel cell vehicles were less clear. It reckons that California Zero Emission Vehicle (ZEV) volumes would hit around 10,000 in 2003, and then double (and more) by 2010. These figures only included pure hydrogen fuelled cars. Sales of methanol fuel cell vehicles, for example, (which they placed in an “Advanced Technology Partial ZEV” category) could be much higher.

Phil Doran of UBS Warburg spoke about fuel cells from an investor’s point of view. He noted that the industry was having an impact on the thinking of big companies, and that funding opportunities were increasing year on year. He suggested, however, that the fuel cell industry could do better, and help itself move forward in a number of ways. These included:

• Releasing consistent cost and operating data, and taking more care in putting such data into context.
• Introducing products rather than concentrating on technology.
• Bringing to an end the practice of criticising other electrolytes.

• Marcus Nurdin suggested that fuel cell cars might be used to generate electricity for the home, office or grid when they are parked up.
• Nick Abson talked about Zetek Power’s plans to connect a series of fuel cells together into a ‘fuel cell wire’. He suggested that this could generate as much power as 100MW.