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The Los Angeles Department of Water and Power's (LADWP's)
new, molten carbonate fuel cell plant is manufactured by FuelCell
Energy and gives LADWP a total of four operational fuel cells.
"This is a fairly significant step forward in the advancement
of fuel cell technology," says William Glauz, manager
of distributed generation for LADWP. "Most of the 100-kilowatt-and-larger
fuel cells in operation today use the previous technology,
phosphoric acid." The fuel cells are being installed
near the Port of Los Angeles at the Terminal Island Wastewater
Treatment Plant, which is the third LADWP site to use FuelCell's
high-temperature, molten carbonate technology.
LADWP has been participating in fuel cell development and
research since it field-tested a 40-kW phosphoric acid plant
in the 1980s. Its first molten carbonate technology, a pretrial
prototype supplied by FuelCell Energy, was installed in August
2001 at LADWP headquarters. After 18 months of successful
operations, FuelCell updated the unit with a 250-kW DFC300A.
"We did field trials that were for precommercial development
of the product," Glauz recalls. "Based on the trials,
[the company] made improvements and developed a commercial
fuel cell which we installed at our downtown headquarters
in March 2003. It was the first one commercially designed
for a North American, high-temperature, high-efficiency fuel
cell."
Running for 18 months at a utility of LADWP stature was an
important milestone, according to Scott Samuelson, director
of the University of Irvine's National Fuel Cell Research
Center."The critical need for the industry right now
is a track record," he explains. "The LADWP facility
is the first sustained operation of the high-temperature molten
carbonate, and as we pass December [2003, the updated unit]
will be approaching one year. You can see intuitively that
this would be the minimum that the market would require for
getting confident in the technology's performance for two,
five, and 10 years."
As for the Terminal Island installation, the plant's
conversion to using biogas is a joint venture, scheduled for
completion by June 2004, between LADWP and the Los Angeles
Department of Public Works Bureau of Sanitation. A success
similar to the 18-month field trial could have a significant
impact on the distributed energy marketplace, both economically
and environmentally.
Compared to previous technologies, molten carbonate plants
offer high efficiencies. The first generation of phosphoric
acid fuel cells converts energy to electricity at ratings
of 30–35%. Molten carbonate plants typically score energy
conversion rates of 47% due to a high-temperature internal
reformation process.
The electrochemical process of combining hydrogen and oxygen
to make water generates temperatures of 600–700°C.
The heat and water create steam for "cracking" the
hydrogen off of the carbon inside the fuel cell and ultimately
generating the hydrogen as part of the electrochemical process.
Internal reformation saves a step in the process traditionally
used by phosphoric acid plants and—because energy isn't
needed to crack the hydrogen in a separate reformer—reduces
pollution.
The process adds to molten carbonate's efficiency rating,
but the truly impressive gains are realized by using the heat
byproduct for cogeneration. Residual heat used to power microturbines,
facility climate systems, or wastewater treatment processes
can push efficiency ratings as high as 70–80%.
The Los Angeles Department of Public Works Bureau of Sanitation
has been using landfill biogas to run microturbines at its
solid resource landfills, and Bureau of Sanitation Chief Omar
Moghaddam predicted that the success of the new fuel would
accelerate a long-term plan to capitalize on the city's use
of fuel cells and biogas.
"I am in negotiations with [LADWP] for two additional
units of 500-kilowatts each for Terminal Island," Moghaddam
says. "We need about 4,000 pounds of steam per hour to
maintain about 200,000 gallons of digested sludge at 132°
Fahrenheit." The electrical load at the facility is about
950 kW and it treats up to 20 million gal./day. Moghaddam
says it's an ideal site for a field test because his
ultimate goal is to scale a similar fuel cell system at the
bureau's Hyperion Treatment Plant.
The Hyperion plant doesn't have any onsite power generation,
but it has been taking advantage of biogas by a more traditional
method. It treats 350 million–400 million gal. of wastewater
per day and exports more than 2.5 billion ft.3 of gas per
year to LADWP's Scattergood Generating Station. In return,
the plant buys electricity at an average rate of $0.45/kWh.
"That includes a 12.5% utility tax," Moghaddam
notes. "No other facility—either regional or in
the state—can match our cost. When we switch over to
fuel cells, we'll do even better because of the increased
efficiency." The fuel cells will need to supply 20 MW
for the plant's electrical load.
According to Samuelson, such plans bode well for the future
of biogas and fuel cells. "Only the high-temperature
fuel cells can play successfully in that market in general.
Wastewater plants are taking off like gangbusters because
they produce a perfect fuel for the fuel cell. Natural gas
is about 90% methane, and digester gas from wastewater treatment
plants is primarily methane." The combination of renewable
and clean-burning fuel creates a win/win situation, he adds.
In fact, Steven Eschbach, investor relations director for
FuelCell Energy, says the DFC300A is classified as an "ultraclean
distributed-energy technology" and produces very little
nitrogen dioxide and sulfur dioxide and particulates. Based
on annual usage estimates, a 250-kW fuel cell power plant
displaces 1.9 million lb. of carbon dioxide, 6,200 lb. of
nitrogen oxide, and 16,000 lb. of sulfur dioxide.
In addition to clean power, such performance generates a
less measurable—but equally attractive—public relations
byproduct for southern California politicos. Government agencies,
businesses, and environmental groups often clash in Los Angeles.
Yet Mayor James Hahn and various city leaders, energy policymakers,
and environmental group representatives were all smiles at
the ribbon-cutting ceremony in September 2003.
The timing and location were especially appropriate. During
the summer of 2003, southern California had its first smog
alert in five years. Shipping activities in the Port of Los
Angeles are a major source of air pollution yet are difficult
to address due to the financial impact on the local and national
economy. The summer bout of poor air quality didn't do much
for the area's image, but it might help to justify the high
cost of fuel cells in future municipal utility budgets.
Estimates for the new plant are running at $2.3 million (including
the cost of developing the gas-processing converter). Other
than $250,000 in grant funding from the United States Department
of Defense, LADWP is footing the bill. It's expensive,
but it's the right strategy, insists Glauz. "It's
possible to get a payback on this project, but it takes many
years, and we are not doing it at this point for business
purposes," he says. "It's more for the perfection
of the technology and to gain experience in installing and
operating this type of equipment."
At present, a combustion-engine generator can be installed
for $500–$700/kW; fuel cell plants can be ten times as
expensive. Glauz notes, however, that prices don't need
to be down in the $500–$700 range because of the new
technology's efficiency and cleanliness. He says the
industry is looking for a competitive range of $1,200–$1,500/kW.
Nonetheless, it's a substantial reduction of 75–80%
from current pricing.
Eschbach notes that FuelCell Energy has a very aggressive
cost-reduction effort in progress but that presently funding
grants are still an important part of the equation because
his company and others are in an early commercialization phase
and have yet to overcome high cost and low volume. Currently
FuelCell's facility can manufacture 50 MW/yr. "Our
backlog of orders has been as high as 12-plus megawatts, so
we're not quite at full capacity," Eschbach says.
After the investment comes the question of operating costs.
LADWP still is analyzing such factors as maintenance, labor,
and replacement parts. Glauz anticipates lower overall costs
because fuel cells have far fewer moving parts than combustion
engines. Typical maintenance schedules, however, include filter
replacements every three to six months, and eventually the
anode and cathode assembly within the fuel cell stack will
degrade. FuelCell currently estimates a lifespan of three
to five years for the fuel cell stack assembly (with the power
plant lasting 20-–30 years or more). Glauz is hoping
the assemblies will last longer, especially since they represent
about 30% of a plant's cost.
Meanwhile, the lack of information won't delay LADWP's
adaption of fuel cells into an existing program for customers
that generate their own electricity. "It's a good
program because it saves us the expense of having to build
new central power plants with the transmission-and-distribution
infrastructure that is required," Glauz explains. "Instead
we'll work with customers and offer them services, such
as installing and potentially operating a localized power
plant for them."
Glauz sees a variety of markets that could take advantage
of the cogeneration potential inherent in molten carbonate
systems. Hospitals and hotels, for example, have a need for
heat and uninterrupted electricity. Generally they would require
200 kW, with larger institutions needing 1 MW or more. Pennsylvania
Power and Light operates a 250-kW fuel cell for each of two
Sheraton Hotels in New Jersey. Each hotel has 300 rooms and
a 250-kW base load to maintain functions, such as lights,
climate control, and door locks. Peak loads can reach 750
kW.
Glauz listed other power-sensitive markets, including credit
card processing facilities and grocery stores with heavy-duty
freezers. Colleges and universities are also a possibility;
although not dependent upon uninterrupted power, they are
still large consumers and have value as working environments
for fuel cell engineering.
Whatever the market, the offering will include a financial
boost from the Southern California Gas Company, which operates
a self-generation incentive program sponsored by California's
Public Utilities Commission. Funding is generous, running
from $1,000 to $4,500/kW, depending on the class of power
generator. Renewable energy qualifies for the $4,500 maximum,
although there is a limit of 50% of the total cost.
LADWP also has plans for a rebate program that would likely
promote renewable-energy sources. "At this point, there
isn't a fuel cell available for residential use, so this
would focus on our larger commercial customers," Glauz
says. "Eventually we may get to the point where various
products are available for residential customers, and we would
have a marketing campaign to get the word out."
"Eventually" might arrive sooner than some would
expect. In 2004, the utility will begin testing small, residential-scale,
5-kW solid oxide fuel cells. Competition also could arrive
soon. FuelCell has developed commercial distribution alliances
for its carbonate Direct FuelCell technology with MTU CFC
Solutions GmbH, a company of DaimlerChrysler AG in Europe;
Marubeni Corporation in Asia; and Caterpillar, PPL Energy
Plus, Chevron Energy Solutions, Alliance Power, and Enbridge
in North America.
A vibrant and competitive marketplace will be a welcome addition
to the industry, states Samuelson. What is occurring now as
an alternative to buying a fuel cell is having a company like
Caterpillar install and operate the fuel cell while just charging
the customer an hourly rate for electricity used. He notes,
"Those types of entities are beginning to come to the
market because they see it's going to be successful based
on tests such as [those] the LADWP is now running."
Writer ED RITCHIE specializes in energy,
transportation, and communication technologies.
DE - Jan/Feb 2004
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