🔒CT upping stake in fuel cell industry with new energy-purchase mandate

As Connecticut looks to strengthen its power grid and wean itself off fossil fuels, lawmakers and industry leaders have tended to focus on large-scale solar and wind-power projects, including the potentially revolutionary off-shore wind farms now set to be built in the Northeast by Eversource Energy and Danish power giant Orsted.

Somewhat less publicized has been the steady march of fuel cell technology, an electrochemical energy source that promises the reliability of conventional fuels alongside the minimal environmental impact of renewables. Once beset by prohibitively high costs, improving technology and rising production levels are making fuel cells more competitive than ever before.

And the industry has found a strong foothold in Connecticut, which is home to two major manufacturers, FuelCell Energy of Danbury and Doosan Fuel Cell America Inc. of South Windsor.

Together, those companies directly employ hundreds of people.

Now, the state is upping its investment in the sector with hopes of improving energy reliability and supporting the industry’s growth. Last month, Gov. Ned Lamont signed into law a bill requiring electric distribution companies — including Eversource and Avangrid — to purchase up to 30 megawatts of fuel cell generation projects by Jan. 1, 2022.

Experts predict the move will open new doors for fuel cell technology, increasing hydrogen power’s share of Connecticut’s energy mix while making standalone fuel cell projects more feasible.

In-state manufacturers will likely reap the most immediate benefits, opening up avenues for new growth as Connecticut works to rebound from the economic impact of the COVID-19 pandemic.

Jason Few, president and CEO of FuelCell Energy, said every project his firm wins under the new law will be developed at the company’s manufacturing facility in Torrington, supporting local manufacturing, construction, engineering, scientific and administrative jobs. Few also pointed to the roughly 600 supply chain companies in Connecticut tied to the emerging hydrogen energy market.

“This will drive jobs and an economic resurgence while meaningfully addressing the very real challenge of climate change,” he said. “There is no reason the state of Connecticut can’t become the global headquarters for the hydrogen economy.”

Better reliability

Fuel cells convert the chemical energy of a fuel source into electricity through a series of reactions. Hydrogen, or fuels that can be converted into hydrogen, are most often used.

In contrast to traditional power plants, fuel cell reactions emit water, heat and, depending on the fuel source, very small amounts of other compounds.

The adaptability of the technology has proven to be its greatest selling point; today, fuel cells are used to power or partially power commercial buildings, homes, automobiles, buses, forklifts, boats and portable power systems, among numerous other applications.

A growing number of states are plugging fuel cells directly into their power grids, aiming to create reserves that can continue to produce and distribute electricity even when severe storms bring down electrical wires.

Fuel cells are also more environmentally friendly than traditional fossil fuels, making them understandably appealing to states like Connecticut, which, under a plan laid out by Lamont, will attempt to build a zero-carbon electric supply by 2040.

“Within the context of our energy landscape, we’ve typically been forced to choose between clean energy and baseload — historically things like coal,” Few said. “Fuel cells are something of a paradigm shift. Fuel cells mean we can deliver reliable baseload power without burning any fuel. Fuel cells can reliably power a city or factory, while outputting virtually zero [nitrogen oxides] or [sulfur oxides].”

Beyond the most recent energy procurement bill, industry experts see opportunities for even broader deployment of fuel cell technology.

Joel Rinebold, director of energy at the Connecticut Center for Advanced Technology, said fuel cells will likely one day be used to overcome the challenges inherent in intermittent solar and wind power assets, which can only produce electricity when the sun is shining or wind is blowing.

“They could be synced up,” Rinebold said. “Those facilities can be used to make hydrogen, and then the hydrogen would power the fuel cells. It’s a very nice complement to provide clean, reliable energy.”

There’s also the opportunity for larger buildings such as schools or hospitals to acquire their own fuel cells to keep the lights on in the event of a powerful storm or other emergency.

“The advantage is that they can be sited within the community without the emissions or pollution associated with other fuel sources,” Rinebold said.

Challenges, opportunities

Still, fuel cells remain somewhat constrained by cost, and the fact that hydrogen itself is often produced using fossil fuels, which weighs against its green credentials. Connecticut has also set far more ambitious goals for other kinds of energy technology.

“We have a law that calls for 1,000 megawatts of battery power,” said Lee Hoffman, an attorney at Pullman & Comley who specializes in energy law. “Compare that to 30 megawatts for fuel cells. It’s a relatively low figure.”

According to Hoffman, fuel cells often lose out to solar and wind on a price-per-kilowatt basis, and they only tend to get built when there are specific government-mandated procurements. On the other hand, fuel cells, unlike solar panels and wind turbines, can provide continuous power, 24 hours a day, seven days a week. They also don’t take up as much space as traditional renewable projects and can be built where solar and wind farms can’t be.

“There are advantages, but you end up paying for those advantages,” he said.

The best application for fuel cells at this point, Hoffman said, might be in the construction of microgrids, small pockets of generation sources capable of breaking off from the main electric grid. In the event the main grid goes down, microgrids can continue to provide power for essential services, such as an emergency shelter or fire station, he said.