Professional Documents
Culture Documents
Fuel Cell
Industry
Review
2014
ACKNOWLEDGEMENTS
We gratefully acknowledge the contribution of many individuals and companies within the fuel cell industry in providing
information for and assistance with the compilation of the Fuel Cell Industry Review 2014. The Fuel Cell Industry Review 2014 is
based for the most part on information available up to October 2014
COPYRIGHT & DISCLAIMER
The Fuel Cell Industry Review 2014 is the copyright of E4tech. Material from this publication may be reproduced without prior
permission provided that E4tech is acknowledged as the source and a link given to www.FuelCellIndustryReview.com.
E4tech endeavours to ensure the accuracy of the information and materials contained within this report, but makes no warranty
as to accuracy, completeness or suitability for any particular purpose. E4tech accepts no liability whatsoever in respect of
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LIST OF ABBREVIATIONS
AFC Alkaline Fuel Cell
AFCC Automotive Fuel Cell Cooperation
APU Auxiliary Power Unit
ARB Air Resources Board (California)
BC British Columbia
CARB California Air Resources Board
CEC California Energy Commission
CFCL - Ceramic Fuel Cells Limited
CHIC Clean Hydrogen In European Cities
CHP Combined Heat and Power
DMFC Direct Methanol Fuel Cell.
EPS Electro Power Systems
EU European Union
FCCJ Fuel Cell Commercialization Conference of Japan
FCE FuelCell Energy (USA)
FCEV Fuel Cell Electric Vehicle
FCH JU/FCH 2 JU Fuel Cells and Hydrogen Joint Undertaking (EU)
FCT Fuel Cell Today
FY Fiscal year
HRS Hydrogen Refuelling Station
ICE Internal Combustion Engine
IPO Initial Public Offering
kW Kilowatt
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Table of contents
Executive Summary
The need for an objective Fuel Cell Industry Review
About the Review
Perspectives on the fuel cell industry in 2014
Is the fuel cell industry relevant?
Shipments by region
The Japanese Roadmap and hydrogens central role
Europes Fuel Cell and Hydrogen Joint Undertaking
Shipments by application
Stationary fuel cells
Shipments by fuel cell type
Transport holding its breath for 2015
Portable power
The outlook for 2015
Data tables
About E4tech and the authors
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Executive Summary
The fuel cell industry is still very much in
the process of formation. The year 2014
has brought the loss of several high profile
companies, such as Topsoe Fuel Cells, Lilliputian
and ClearEdge Power, losses balanced by
the entry of Korean conglomerate Doosan
and a newly public commercialisation effort
by General Electric. The year has also seen
significant successful capital-raising by
companies including Plug Power and FuelCell
Energy, and the successful IPO of Intelligent
Energy. Overall unit shipments are up compared
to 2013, though the megawatts shipped are
down. The industry remains predominantly
focused on PEM and SOFC technologies, but
other types remain strong, particularly MCFC in
larger stationary power plants.
Although the MW of units shipped has
decreased, we dont interpret this too negatively.
The number of units shipped is driven in
large part by the Japanese residential fuel
cell programme, Ene-Farm, and by very small
portable products. The industry is small enough
that a few big shipments one side or other of the
New Year can still make a noticeable difference.
In some cases, such as with cars, releases still
tend to be in blocks, with subsequent pauses for
learning and testing. Only when real commercial
shipments occur in more sectors will some
smoothing of the data occur.
The more successful sectors in terms of headline
numbers remain the same as in prior years:
in total, 100,000 Ene-Farm micro-CHP units in
Japan have now been installed, and fuel cells
outsell all other micro-CHP technologies. Korea,
and particularly POSCO Energy, is ramping up
installed MW of MCFC and increasing future
orders. Bloom Energy remains an important
contributor to installed SOFC capacity, though
numbers look to be down compared to 2013,
when last years very large Delmarva Power
installation was booked.
04
2014 has not been an easy year for the fuel cell
industry. While it is far from guaranteed, 2015
is shaping up to be a better one. Continued
policy support in major jurisdictions, coupled
with the coming of the fuel cell cars, big power
park deployments in Korea, and hints that Japan
may continue to underwrite its residential
programme all suggest that shipments could be
up significantly on 2014, and perhaps bring some
new funding and confidence to consolidate this
nascent industry.
Highlights
n A dramatic increase in hydrogen refuelling
in the US
n Increasingly large fuel cell power parks
n Japans explicit support of fuel cells and
EU FCH JU programme
n The spread of H2Mobility clones
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Stationary
0.5 kW to 400 kW
Typical technology
PEMFC
DMFC
PEMFC
MCFC
AFC
Examples
Large stationary
prime power
Large stationary combined
heat and power (CHP)
Small stationary micro-CHP
Uninterruptible power
supplies (UPS)
Transport
Units that provide
propulsive power
or range extension
to a vehicle
1 kW to 100 kW
SOFC
PAFC
Materials
handling vehicles
Fuel cell electric
vehicles (FCEV)
Trucks and buses
Portable fuel cells encompass those designed to be moved, including auxiliary power units (APU);
Stationary power fuel cells are units designed to provide power to a fixed location; Transport fuel cells
provide either primary propulsion or range-extending capability for vehicles. We have slightly extended
the FCT typical portable power range, starting at 1W rather than 5W. This is simply for clarification and
does not change the shipment data, as smaller units were in any case included in the past.
07
Geographic regions
We maintain FCTs four
main geographic
regions of fuel cell
adoption: Asia, Europe,
North America and the
Rest of the World (RoW).
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Please note that all numbers are subject to estimates, and final 2014 shipments may be higher or lower than announced. We will adjust 2014 figures as
appropriate in our 2015 review.
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Shipments by region
Shipments by region 2009 - 2014 (1,000 units)
Footnote to charts: Data from 2009-2013 are as published by FCT, including their forecasts for 2013; 2014 is our forecast for the full
year. We include an error bar for 2014, based on the quality of our data sources and our views on the uncertainty in the forecasts.
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Shipments by application
Shipments by application 2009 - 2014 (1,000 units)
Footnote to charts: Data from 2009-2013 are as published by FCT, including their forecasts for 2013; 2014 is our forecast for the full
year. We include an error bar for 2014, based on the quality of our data sources and our views on the uncertainty in the forecasts.
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Transport
2014 has seen growth in units as well as
in total MW shipped for material handling
applications, mainly driven by strong growth in
Plug Powers shipments. The economic case for
fuel cell forklifts fuelled by hydrogen in large
warehousing and distribution centres (generally
at least 100 vehicles) is growing stronger and
will drive further shipments in 2015. Reduced
costs and novel business models should increase
the market opportunity, as the economic case
becomes proven for smaller distribution centres.
Cars and buses have contributed to the growth in
MW shipments for transport: Hyundai delivered
a number of their ix35 fuel cell electric cars
worldwide in 2014, and several fuel cell buses,
more than 20 in Europe alone, were supplied to
various fuel cell demonstration bus projects.
If the worlds automotive OEMs maintain their
plans to make 2015 a key year in the roll-out of
FCEVs, then 2015 will see a significant increase in
shipments of both units and MW.
Stationary
Residential CHP shipments have continued to
grow in 2014 over 2013, mainly due to Japans
Ene-Farm programme, though final numbers
remain unclear. Deployment estimates for
Japanese FY 2014 vary between roughly 40
and 50 thousand units. Additional uncertainty
exists around global stationary backup power
installations due to the recent market entry
of several new players. As such the final 2014
numbers may be revised upwards in the next
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Portable
The strong growth in shipments in the portable fuel
cell sector from 2013 to 2014 is mainly because of
larger numbers in the consumer products segment
(e.g. mobile phone chargers). The main players in
this segment are Horizon Fuel Cell Technologies
and MyFC, with aggressive announcements also
by Intelligent Energy. As these companies have
published only limited shipment data for year 2014
at time of press, our forecast for the full year is likely
to need revision in the next edition. But the typical
size of these devices is between 1 and 10 W, and
hence tens of thousands of units do not contribute
much to the megawatts shipped.
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Resilience
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Developments elsewhere
Large fuel cell developments elsewhere in the
world are modest, though likely to ramp up
slowly over the next few years. Within Europe,
Service Revenue
The growth in service revenue is another sign
of the changing business model for fuel cell
power generation. The original model relied
on sales and shipments to customers willing
to assume the operating and maintenance
obligations of the units. But customers for
distributed power, accustomed to getting
their power from a wall plug, showed little
enthusiasm for owning or operating an
expensive, unfamiliar and untested product.
The fuel cell industry responded first by adopting
the solar industrys ownership approach, power
purchase agreements, where a third entity
established for the purpose would generally
own the unit. The fuel cell companies began
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Market drivers
Despite its major contribution, the subsidy
scheme is responsible for this large
deployment. Even with subsidies these microCHP units rarely provide a positive return to
customers, even over ten years. But microCHP received an important boost following the
power shortages experienced in Japan since
the Fukushima nuclear disaster; autonomy is
increasingly seen as important. Novel marketing
and sales approaches have also helped, with
units sold as an integral part of a house or
apartment, not standalone.
The manufacturers have benefited from the
economies of scale provided by the ramp-up
of production, but these are not sufficient to
deliver fully competitive systems. They continue
to reduce cost through better design and
engineering, cheaper and better components
and materials and to seek additional markets
through partnerships, such as in Europe.
EuropeanAsian collaboration
The success of the Japanese micro-CHP
experience and technology, and the Japanese
manufacturers desire for bigger markets,
has been translated into joint ventures with
European partners. Toshiba is working with
Baxi, Panasonic with Viessmann, and Aisin
with Bosch. Furthermore Ceres Power reports
partnering with Korean business Navien and
two unnamed Japanese OEMs with its SOFC
technology; these are in addition to the long
running relationship with British Gas.
European projects
The deployment of fuel cell micro-CHP in
Europe has been muted in comparison to
Japan. Several national and European projects
have begun demonstration and commercial
pre-deployment, but with considerably smaller
subsidies available. The largest deployment to
date is through Germanys Callux programme,
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Government support
As in Japan, deployment is dependent upon
public sector support. The FCH JU is playing
a leading role in pan-European projects,
but elsewhere it is national and regional
governments providing support. In Germany,
both national and state level support is
available for CHP in general, and fuel cell microCHP in particular. Four states have announced
or implemented schemes subsidising the capital
cost of units: North Rhine-Westphalia and
Saxony have been joined by the states of Hesse
and Baden-Wrttemberg in 2014.
In the US, Californias Self-Generation Incentive
Program (SGIP) is arguably the most valuable
fuel cell incentive programme. Enacted in 2001
as a peak-load reduction programme, SGIP has
changed considerably over the years and now
supports various combined heat and power
generation options as well as energy storage
projects. The current incentive for fuel cells is
more than US$ 1,800 per kW. SGIP has been a
major source of financing for Blooms installations
in California and a significant contributor to FCE.
California approved an extension of SGIP in 2014,
with funding of US$ 83 million annually through
2019. Several other states, notably Connecticut,
New York and New Jersey, offer incentives for fuel
cell generation.
Arguably as influential to the progress of fuel
cells for power generation is a regulatory
proceeding initiated in New York State in
2014 called Reforming the Energy Vision. The
New York State Public Service Commission
(PSC) argues that The energy industry is in
transition due to technological innovation and
an increase in renewable energy generation on
the one hand and an aging and fragile power
grid on the other hand. The regulation of
Telecommunications
Powering telecom towers either with fuel
cell units for backup or simply primary off-grid
power has been the focus of a number of
fuel cell developers. Market deployment of fuel
cell units of 1 kW to 20 kW has occurred in both
developed and developing economies worldwide.
Ballard has been one of the more successful
players in these markets with its ElectraGen
methanol reformer-based fuel cell products. It
has continued to deliver units for the telecoms
market through 2014, announcing new orders
such as 13 units for Digicel in the Caribbean.
It also announced in mid-2014 an agreement
with Azure of China for licencing its telecom
products for the Chinese market, also a target
for FutureE, now part of Heliocentris. Another
large potential market is India, a particular
focus of Intelligent Energy. In 2013 Intelligent
Energy established Essential Energy as a
route to market for its products in the Indian
distributed power and generation space,
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Other places also claim hydrogen towns, for example Fukuoka in Japan.
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Off-grid power
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Insurance
Another sign of the mainstreaming of fuel
cell technologies, and the creativity of some
insurers in pursuit of advanced energy markets,
is the issuance of performance insurance.
A policy was developed for Bloom Energy by
a team of underwriters including XL Groups
Complex Accounts unit, Munich Res Green
Tech Solutions team and consulting firm New
Energy Risk. The policy will support several
Bloom installations over 15 years, insuring
customers against losses should Bloom be
unable to meet its warranty obligations.
The insurance provision had real financial
impact, allowing Bloom to raise US$99
million in project financing via an investmentgrade bond.
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Footnote to charts: Data from 2009-2013 are as published by FCT, including their forecasts for 2013; 2014 is our forecast for the full
year. We include an error bar for 2014, based on the quality of our data sources and our views on the uncertainty in the forecasts.
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the low point for this fuel cell type. Another player
in this technology is Fuji Electric, producing 100
kW units typically deployed in Japan.
Although several thousand DMFC will have been
shipped by end 2014, the cumulative capacity
is comparatively small, due to typical unit sizes
between 50 and 100 W.
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Portable Power
The application of fuel cells for portable
uses, generally for off-grid and on-the-move
requirements of one or two to hundreds of watts,
has been a successful sector for manufacturers,
with annual sales for some running in the 10,000s
range. Portable fuel cell applications tend to fall
into three areas: fuel cells for charging consumer
electronics, most notably mobile phones; for
auxiliary power units in leisure applications, such
as camper vans and now caravans; and for military
use for soldier power and other small power uses
such as certain unmanned aerial vehicles (UAV).
Fuel cells are also used at very small power levels
for educational uses and toys; we do not track
these applications.
Battery chargers for consumer electronics,
especially smartphones with their typical heavy
usage, have long been seen as a promising
market opportunity. However, the competition
from stand-alone battery-based chargers, wall
sockets and even supercapacitors is intense, the
technology is challenging to miniaturise cheaply,
and the industry hard to break into. Many
companies, including the worlds largest consumer
electronics corporations, have reduced or
abandoned previously major development efforts.
Nevertheless, a small number of companies is
either already selling units, or claims sales are
imminent. MyFC and Horizon have had sales of
very small units (around 5W) for several
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Data Tables
Shipments by application
1,000 Units
2009
2010
2011
2012
Forecast
2013* 2014
Portable
5.7
6.8
6.9
18.9
13.0
21.8
Stationary
6.7
8.3
16.1
24.1
51.8
45.6
Transport
2.0
2.6
1.6
2.7
2.0
2.9
Total
Shipments by region
1,000 Units
2009
2010
2011
2012
Forecast
2013* 2014
Europe
4.4
4.8
3.9
9.7
6.0
6.1
North America
3.2
3.3
3.3
6.8
8.7
17.1
Asia
6.7
9.5
17
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51.1
45.2
ROW
0.1
0.1
0.4
1.2
1.0
1.8
Total
1,000 Units
2009
2010
2011
2012
Forecast
2013* 2014
PEMFC
8.5
10.9
20.4
40.4
58.7
65.3
DMFC
5.8
6.7
3.6
3.0
2.6
3.1
PAFC
0.0
0.0
0.0
0.0
0.0
0.0
SOFC
0.1
0.1
0.6
2.3
5.5
1.8
MCFC
0.0
0.0
0.0
0.0
0.0
0.0
AFC
0.0
0.0
0.0
0.0
0.0
0.0
Total
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Megawatts by application
Megawatts
Portable
2009
2010
2011
2012
Forecast
2013 2014
*
1.5
0.4
0.4
0.5
0.3
0.5
Stationary
35.4
35.0
81.4
124.9
186.9
147.3
Transport
49.6
55.8
27.6
41.3
28.1
28.2
Total
Megawatts by region
Megawatts
Europe
2009
2010
2011
2012
Forecast
2013* 2014
2.9
5.8
9.4
17.3
17.3
10.4
North America
37.6
42.5
59.6
61.5
74.7
52.3
Asia
45.3
42.5
39.6
86.1
122.9
112.4
ROW
0.7
0.4
0.8
1.8
0.4
1.0
Total
Megawatts
2009
2010
2012
2013 2014
PEMFC
60.0
67.7
49.2
68.3
68.0
69.7
DMFC
1.1
1.1
0.4
0.3
0.2
0.2
PAFC
6.3
7.9
4.6
9.2
7.9
3.8
SOFC
1.1
6.7
10.6
26.9
47.0
32.3
MCFC
18.0
7.7
44.5
62.0
91.9
70.0
0.0
0.1
0.1
0.0
0.3
0.0
AFC
Total
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2011
Forecast
*
Notes
- 2009-2013 figures are as published in the Fuel Cell Today Industry Review 2013.
Note that the figures for 2013 were a forecast to full year, which we have not
changed retrospectively, though our analysis suggests they are slightly high.
-
Our 2014 figures are a forecast for the full year. Data for 2014 have been collected directly
from fuel cell manufacturers where they were able to share it; through interviews with
industry experts; careful review of publicly available sources such as company statements,
press releases, reports of public companies and demonstration and roll-out programmes.
- Unit numbers are rounded to the nearest 100 units. An entry of zero indicates that fewer
than 50 systems were shipped in that year.
- Megawatt numbers are rounded to the nearest 0.1 MW. An entry of zero indicates that less
than 100 kW was shipped in that year.
- Portable fuel cells refer to fuel cells designed to be moved. They include fuel cell auxiliary
power units (APU), and consumer electronics (e.g. phone chargers). Toys and educational kits
are not reported.
- Stationary fuel cells refer to fuel cell units designed to provide power at a fixed location.
They include small and large stationary prime power, backup and uninterruptable power
supplies, combined heat and power (CHP) and combined cooling and power.
- Transport fuel cells refer to fuel cell units that provide propulsive power or range extender
function to vehicles, including UAV, cars, buses and material handling vehicles.
- Our geographical regions are broken down into Asia, Europe, North America and the Rest of
the World (RoW), including Russia.
-
Shipments by fuel cell type refer to the electrolyte. Six main electrolyte types are included
here. High temperature PEMFC and conventional PEMFC are shown together as PEMFC.
Other types of fuel cells currently in an early stage, such as microbial fuel cells and solid acid
fuel cells, are not included in the numbers shown.
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Prof David Hart is a Director of E4tech, responsible for the Fuel Cell and Hydrogen Practices. He
has been working in the fuel cell sector for 20 years, consulting and carrying out research on fuel cell
and hydrogen issues for a wide range of organisations worldwide, including national governments,
major industrial companies, financial organisations and NGOs. He is also a Visiting Professor at Imperial
College Londons Centre for Environmental Policy, chairs the Steering Committee of the Grove Fuel Cell
Symposium, and has been an invited speaker at conferences on six continents.
Franz Lehner is a Senior Consultant at E4tech, working on a wide range of projects for private and
public clients, including multinational energy companies, technology start-ups and governmental
organisations such as IEA-RETD and the FCH-JU Programme Office. Franzs technology focus is on water
electrolysis, fuel cells and solar cells.
Jonathan Lewis is an independent consultant with over twenty years experience in the business
development arena, ranging from strategy and policy development through business plans to
commercialisation activities in the technology space. He has worked in the fuel cell and hydrogen
area for more than 10 years, initially with Rolls-Royce Fuel Cell Systems Ltd, and more recently in an
independent capacity working for the private and public sectors. He has extensive experience in Europe,
serving on the Board of the FCH JU and the NEW-IG, and more recently working with the FCH JU in a
variety of roles.
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Picture Credits
E4tech is grateful to the following organisations for the illustrations in the Fuel Cell Industry Review 2014.
For copyright information or permission to use any of the pictures in this report, please contact the
relevant organisations.
PG IMAGE
IMAGE CREDIT
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Bloom Energy
Ballard Power Systems Inc
Steve Morgan for Ceres Power
FuelCell Energy, Inc.
Honda Motor Co., Ltd.
Van Hool NV
Ballard Power Systems Inc
Hydrogenics Corp.
myFC AB
Bloom Energy
Dr Mike Hugh
Ballard Power Systems Inc
FuelCell Energy, Inc.
Hexis AG
SFC Energy AG
Toyota Motor Corporation
Intelligent Energy Ltd.
Plug Power Inc.
H2Logic A/S
Hydrogenics Corp.
Intelligent Energy Ltd.
Horizon Fuel Cell Technologies
Panasonic Corporation
Hyundai Motor Company
Note on currencies:
The following exchange rates can be used as guidance to convert currencies mentioned in this report. These are
the average mid-point exchange rates from 31st October 2013 to 31st October 2014.
US$1 = 0.7417
US$1 = 0.6039
US$1 = 103.16
1 = US$1.3492
1 = 0.8146
1 = 139.12
1 = US$1.6565
1 = 1.2282
1 = 170.85
1 = US$0.0097
1 = 0.0072
1 = 0.0059
www.FuelCellIndustryReview.com
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www.e4tech.com
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