1 Intelligent Well Technology: Status and Opportunities for Developing Marginal Reserves SPE

Fuel Cell Heating Plants –Contributing to Future Viability of Energy Systems

Bert Droste-Franke, Europäische Akademie Bad Neuenahr-Ahrweiler GmbH, +49(0)2641973324,

Overview

Fuel cells are very promising technologies for electricity generation because of their high efficiency in energy conversionwhich can also be realised in small power units. These characteristics recommend to apply the technologies for house energy supply which could open a significant potential for efficient electricity production. However, the devices are not yet available on the market and they will have to compete with fully developed technologies for electricity and heat production.

The paper presented analyses the technology option of fuel cell heating devicesfuelled with natural gas in comparison to concurring energy technologies with respect to selected indicators in the areas of resource use, environmental effects, system characteristicsand profitability which allow to appraise their viability for future energy systems. For this purpose, first, indicators are derived from the basic aims of sustainable and efficient economic practice and then evaluated on the basis of available data and existing studies in the area.

The results show that fuel cells as heating devices can significantly contribute to making the current and future energy systems efficient and sustainable. Prerequisitesare the right technology products, operation strategiesand regulative framework conditions which allow the devices to be used within large networks of small devices which can be operated comparably to single large central power plants, so-called virtual power plants, even at decreasing heat demand of houses.

Methods

In order to assess fuel cell heating plants with respect to sustainability and socio-economic efficiency, firstly, starting with a set of basic aims a list of appropriate indicators is deduced. Secondly, the indicators are assessed as far as possible on the basis of available study results and data. Besides others, published results from life-cycle assessments (Krewitt et al. 2004, Krewitt and Schlomann 2006, Maibach et al. 2007, etc.)have been used to assess and compare environmental damage costs of energy technologies following the recommendations in the methodology convention for the assessment of external costs worked out by the German Federal Environment Agency (Umweltbundesamt 2007). In another step, published data of resource occurences and production (BGR 2007, USGS 2007) have been applied to assess indicators revealing the significance of further using the currently applied rare materials for sustainable production.

The results presented have been generated by the author within the interdisciplinary project group “Fuel Cells and Virtual Power Plants as Elements for a Sustainable Development. Innovation Barriers and Implementation Strategies” launched by the Europäische Akademie Bad Neuenahr-Ahrweiler GmbH and funded by the German Federal Ministry of Education and Research (s. Droste-Franke et al. 2009).

Results

For the assessment of the technologies, it was assumed that natural gas will be used as energy resource for fuel cells. This focus gives the opportunity to investigate the perfomance of the technology with an already existent infrastructure as well as it represents a fallback position in case that infrastructure for gas from biomass or hydrogen from renewableswill not develop.The assessment results are subdivided into the evaluation of the technologies concerning environmental performance, resource use, energy system characteristics and economic profitability.

With respect to environmental performance, it can be shown that especially fuel cell devices with high electrical efficiency show better performance concerning CO2-emissions than central power facilities. However, comparisons on the basis of a kilowatt hour electricity produced reveal better perfomance of renewable energy systems. Concerning air pollution effects from mainly SO2- and NOX-emissions leading, beside others, to human health effects, ecosystem impacts and increased maintenance frequency for buildings,the performance of fuel cell heating devices is much closer to that of renewable energy systems and in case of photovoltaic systems, considering the whole life cycle, even better. Thus, in order to improve the environmental performance of the energy system, fuel cell heating devices should be implemented so that they can partly replace centrally installed power plants.

With respect to the resource availability, energy and material resources have to be distinguished. As essentially concurring technologies are also fuelled with natural gas and further options could be applied for which the availability is dependent on many other components of the energy system, the energy resources aspect is left out of the evaluation. The results for the employment of rare materials for fuel cell devices show that these have to be monitored critically over time. The quantity of material used for fuel cell production itself is in most cases not critical. However, the usage of most of the materials required for current fuel cell technologies is not sustainable, because their reserve-to-production ratios are decreasing or lower than the time required to switch to an alternative energy system. Furthermore, some have been showing high price changes in recent years or reserve occurrences or delivery and revenues show high regional concentration.

With respect to energy system characteristics, a system of centrally controllable fuel cell heating devices has many advantages concerning supply security, and risk avoidance. This includes a participation and possibility of fair and affordable access to energy, possibilities for good support concerning breakdown situations and quality of supply, and an increase in diversity, as well as technical and local, regional and global environmental risks. Furthermore, such a system of many small local facilities is open for a lot of alternative options.

With respect to economic profitability, in order to be marketable, studies show that fuel cell heating devices, dependent upon the business model and supply object, should be available for costs of about 1,000 to 2,000 EUR per installed kilowatt of electric power. Furthermore, in order to be applicable in houses with low heat demand and maybe in individual flats, also options of smaller stationary devices of some hundred watt should be developed.

Conclusions

The usage of fuel cell heating devices can very well contribute to the aims of sustainable and efficient energy supplyand, thus, be viable for future energy systems if implemented in the right way. For this purpose, the facilities should be applicable to provide base and peak load for the energy market and further grid services. Besidethe installation of the facilities in a way that they are centrallycontrollable, a higher flexibility of energy markets on the level of the distributional grid could support their contribution to supply security, partly replacing centrally installed power and supporting the application of renewable energy. Furthermore, specific costs of the fuel cell systems have to be reduced in order to be marketable and in order to exploit the whole potential of the technology, smaller units with some hundred watt should be envisaged. Especially for a long term use andan extensive application of the technology, the occurrences and market characteristics of the resources required should be regularly monitored and potentials of switching to other materials and higher recycling quotes should be explored. In order to be competitive even at high reductions in CO2-emissions in the overall electricity mix, instead of natural gas, the application of regeneratively produced gases should be aimed for.

References

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Droste-Franke B, Berg H, Kötter A, Krüger J, Mause K, Pielow J-C, Romey I, Ziesemer T (2009) Brennstoffzellen und Virtuelle Kraftwerke. Energie-, umwelt- und technologiepolitische Aspekte einer effizienten Hausenergieversorgung. Ethics of Science and Technology Assessment, Band 36, Springer Verlag, Berlin (executive summary in English language available at:

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