Fuel cell “mini-power stations” could reduce energy bills by 21 per cent
Green energy news – by Louise Bateman
29th August 2014
Low emission fuel cell systems could be deployed in more than five million premises by 2030, enabling homes and businesses to slash their energy bills, while delivering clean and secure energy to the UK, according to a new industry report released this week.
The research, carried out by Ecuity Consulting and commissioned by fuel cell developers including Baxi, Ceramic Fuel Cells, Ceres Power, IE-CHP, Johnson Matthey Fuel Cells and Viessmann, claims fuel cells are suitable to act like “mini-power stations” for 90 per cent of UK households and small businesses – the equivalent of 22 million UK premises.
Lack of Government support
It suggests an initial roll-out of fuel cell “smart power units” by 2030 would reduce energy bills by 21 per cent for 5.3 million consumers and introduce five gigawatts of new flexible capacity into the energy system. However, the report warns the technology currently lacks the necessary support from Government in order to achieve these targets.
Currently some small-scale fuel cells, such as Ceramic Fuel Cells’ BlueGen, are eligible for the Government’s Feed-in Tariff (FiT) subsidy as micro-combined heat and power (mCHP) units. But according to Ilias Vazaios, partner, Ecuity, current tariffs do not reflect the high capital costs of fuel cell technology and are denying much needed investment into the sector.
“There is very little understanding of fuel cells at the moment [in the UK]. The Committee on Climate Change released a 500 page report two months ago and fuel cells did not even get a mention,” he told GreenWise.
How fuel cells work
Fuel cells use an efficient electrochemical process to convert chemical energy from hydrogen-rich fuels into electricity and heat. The procedure is low on emissions and can run on low carbon alternative fuels such as biomethane and hydrogen.
Japan has already installed more than 80,000 smart power fuel cell units as part of an objective to deploy 5.3 million units by 2030.
“Stronger support from the UK Government – to the level shown by the Japanese Government – would allow us to positively impact many more people’s lives whilst at the same time reducing grid reinforcement costs,” said Bob Kennett, executive director and chief executive officer of fuel cell developer, Ceramic Fuel Cells.
Grant scheme
The report makes a number of recommendations, including introducing a grant scheme within the next 12 months, using existing funding pots, to support a fixed number of smart power unit installations, and developing a “smart power strategy” for the UK by 2015.
It also recommends fuel cell smart power units up to 50 kilowatt should be eligible for a degressing FiT of between 18-22 pence per kilowatt hour as part of the FiT Review in 2015.
“By de-centralising power generation and producing it in your home instead of centralised power stations, our technology empowers the consumer to produce clean, affordable, efficient and controllable energy where it is needed in the home, at twice the efficiency of centralised power stations,” said Mark Bugler, technical director at IECHP.
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Ceramic Fuel Cells’ BlueGen is already eligible for the Feed-in Tariff
