INDUSTRY OVERVIEW

Fuel cell principle:

Discovered in 1839 by an English physicist, Sir William Grove, the fuel cell principle relies on the simple fact that water could be split into hydrogen and oxygen by sending an electric current through it, a process which is called electrolysis. Therefore, by reversing the procedure you could produce electricity and water. He created a primitive fuel cell and called it a “gas voltaic battery”. After experimenting with his new invention, Grove proved his hypothesis. Fifty years later, scientists Ludwig Mond and Charles Langer invented the term “fuel cell” when they attempted to build a practical model to produce electricity.[i]
A fuel cell is an “electrochemical energy conversion device” that combines hydrogen and oxygen to produce electricity, water, and heat. As opposed to the battery which stores all its chemicals inside, the fuel cell continuously produces electricity, as long as a source of fuel, e.g. chemicals, flows into the cell. Most fuel cells in use today use hydrogen and oxygen as the chemicals. Since fuel cells do not burn fuel, they make the process quiet, pollution-free and two to three times more efficient than combustion. A fuel cell system can be a truly zero-emission source of electricity, if the hydrogen is produced from non-polluting sources.[ii] Historical outlook:
Space research first put the emphasis on the fuel cell technology. Indeed, in the 60s, the NASA chose that type of power generator to equip the Gemini and Apollo missions[iii];
From the 70s and the 80s onwards, the spatial usage has generated, especially in the US and Japan, increasing interest for the fuel cell technology, especially in the automotive industry and stationary applications. Research opened the way to diversification of the technological options. Besides the classic supply of the first fuel cells requiring pure hydrogen -obtained by electrolysis- fuel cells working with hydrogen produced by reforming of hydrocarbons (gasoline, natural gas, ethanol), but also from methanol resulting from the biomass and from the carbon dioxide developed. The widening of fuel sources decreases certainly the "cleanliness" of the process, by reintroducing carbon emissions, but with no common measure however with the nuisances of internal combustion engines. On the other hand, the reforming considerably increased the interest of fuel cells by enabling hydrogen production processes widely mastered on the industrial sector.
Different types of fuel cells

The family of fuel cells is quite large. Fuel cells are usually classified on the type of electrolyte they use and their operating temperatures. Some fuel cells are more suitable for a stationary use, while others may be used for small portable applications or for powering cars. There are 6 main types of fuel cells:

Polymer exchange membrane fuel cell (PEMFC)
It is the most likely candidate for transportation applications since it has a high power density and a relatively low operating temperature (ranging from 60°C to 80°C). The low operating temperature implies that the fuel cell warms up quickly and swiftly begins to generate electricity. The US department of energy focuses on this type of fuel cell for transportation applications.
Solid oxide fuel cell (SOFC)
It is best suited for large-scale stationary power generators that could provide electricity for factories or towns. It operates at very high temperatures (between 700 and 1,000°C). This high temperature creates a reliability problem, since parts of the fuel cell can break down after cycling on and off repeatedly. This type of fuel cell is however very stable when in continuous use and has demonstrated the longest operating life of any fuel cell under certain operating conditions. The high temperature also produces steam, which can be channeled into turbines to generate more electricity. This process is called co-generation of heat and power (CHP) and it improves the overall efficiency of the system.
Alkaline fuel cell (AFC)
It is one of the oldest designs, in the US, space programs have used them since the 1960s. This type of fuel cell is very susceptible to contamination and therefore requires pure hydrogen and oxygen. It is also very expensive, so this type of fuel cell is unlikely to be commercialized.
Molten-carbonate fuel cell (MCFC)
It is also best suited for large stationary power generators. Since it operates at at 600°C, it generates steam that can be used to generate more power. Since they have a lower operating temperature than the SOFCs, it makes the design a little less expensive.
Phosphoric-acid fuel cell (PAFC)
The phosphoric-acid fuel cell has potential for use in small stationary power-generation systems. It operates at a higher temperature than PEMFCs, therefore has a longer warm-up time. This makes it unsuitable for use in cars.
Direct-methanol fuel cell (DMFC)
Methanol fuel cells are comparable to a PEMFC in regards to operating temperature, but are not as efficient. Also, the DMFC requires a relatively large amount of platinum to act as a catalyst, which makes it expensive.

Zoom on the PEMFC
[pic]
The Fuel Cell Today Industry Review 2011

• The anode: the negative post. It conducts the electrons that are freed from the hydrogen molecules so that they can be used in an external circuit. It has channels etched into it that disperse the hydrogen gas equally over the surface of the catalyst. • The cathode: the positive post has channels etched into it that distribute the oxygen to the surface of the catalyst. It also conducts the electrons back from the external circuit to the catalyst, where they can recombine with the hydrogen ions and oxygen to form water. • The electrolyte is the proton exchange membrane. This specially treated material, resembling kitchen plastic wrap, only conducts positively charged ions. The membrane blocks electrons. For a PEMFC, the membrane must be hydrated in order to function and remain stable. • The catalyst is a special material that facilitates the reaction of oxygen and hydrogen. It is usually made of platinum nanoparticles very thinly coated onto carbon paper or cloth. The catalyst is rough and porous so that the maximum surface area of the platinum can be exposed to the hydrogen or oxygen. The platinum-coated side of the catalyst faces the PEM
|Chemical reaction: |
|Anode side: |
|2H2 => 4H+ + 4e- |
|Cathode side: |
|O2 + 4H+ + 4e- => 2H2O |
|Net reaction: |
|2H2 + O2 => 2H2O |

In such a fuel cell, only 0.7 volts are produced. To increase the voltage, many separate fuel cells must be combined forming a fuel-cell stack.
Main markets for fuel cell technology
There are three main markets for fuel cell technology: - stationary power, - transportation power, - portable power.
Stationary power includes applications in which the fuel cells are operated at a fixed location, either for primary or for backup power, or for combined heat and power (CHP). Further to the earthquake in Japan, fuel cell micro-CHP may offer a solution when not connected to the national grid. Deployment of UPS systems is expected to grow, especially thanks to the interest of the telecommunication sector globally. More specifically in Africa and India, where energy security and grid independence are increasingly important, there is a significant potential for the future.
Transportation applications include motive power for cars, buses and other fuel cell passenger vehicles, specialty vehicles, materials handling vehicles (e.g. forklifts) and auxiliary power units (APUs) for highway and off-road vehicles. The material handling industry has been a key adopter of fuel cell power vehicles. The application for light duty vehicle has been an area of interest to the general public. (see car section below)

Portable power applications use fuel cells that are not permanently installed or fuel cells in a portable device. The market for portable fuel cells offers a large potential for growth. Some short term applications include toys, educational units and APU. Furthermore, the military shows growing interest in the sector and may prove a key driver for the future. Finally, the largest opportunity for fuel cells resides in consumer electronics (ex: external charging devices). They prove extremely successful in providing electricity in off-grid, remote locations but still lack the miniaturisation necessary to be directly integrated into consumer electronics. Future applications may include mobile phones and laptops. The Consumer Electronic Association estimates that, provided that the challenges of both costs and miniaturisation are overcome, it would open opportunities in a market amounting to $950M.

Current challenges that OEMS are facing[iv]: - Characteristics of the FC technology: immature, complex and large number of potential applications - The market for fuel cell: lack of performance indicators and lack of cost and performance competitiveness: Costs must be further reduced and performance and durability must continue to improve, enabling fuel cells to be fully competitive with incumbent technologies. Government support remains critical to achieving these goals. - Lack of regulatory support: Safety regulations and product standards need revision to reflect current experience and to ensure better harmonization among jurisdictions. - Characteristics of the industry: emerging industry, low return on high investments, B2B collaboration and heterogeneous strategies - Finally, public awareness of hydrogen and fuel cells remains low, therefore requiring further education
Despite these challenges, the outlook for fuel cells and hydrogen remains very positive. Market penetration is increasing, costs are coming down, and performance and durability are improving. With continued support, these trends should continue into 2011 and beyond.[v]

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[i] http://auto.howstuffworks.com/fuel-efficiency/alternative-fuels/fuel-cell1.htm

[ii] http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/2010_market_report.pdf

[iii] http://ec.europa.eu/research/rtdinfo/42/01/article_1317_fr.html
[iv] http://www.sciencedirect.com/science/article/pii/S0360319906003922

[v] http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/2010_market_report.pdf