Fuel Cell Systems: Total Cost of Ownership

Fuel cells are an electrochemical technology that are reaching the market in transportation and are a growing market in stationary power systems for backup power, primary power, combined heat and power, and materials handling equipment. The first part of this entry describes the manufacturing cost reductions from PEM and SOFC technologies that are estimated from higher-volume fuel cell manufacturing from economies of scale and improvements in overall yield. Fuel cells combined heat and power systems have the capability to displace grid electricity and on-site fuel combustion. In general CHP systems can be used in industrial and commercial building applications. This work focuses on FC CHP in commercial building applications. Depending on the building application and location, the FCS can result in lower CO2 and criteria emissions, and this can lead to better societal outcomes in human health and the environment. This second part of this entry describes the treatment of total cost of ownership for fuel cell systems illustrating the valuation of these externality benefits in different cities in the USA and how they can reduce the TCO of these systems. This entry highlights the importance of including externalities in overall societal cost calculations in cleaner forms of energy supply systems and should be included in policy discussions for fuel cell systems that comprehend overall both public and private costs and benefits.