Clean and reliable energy. Job creation and economic development. Those are just a few of the benefits Connecticut would enjoy if the state continues to invest in fuel cell technology.
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Clean and reliable energy. Job creation and economic development.
Those are just a few of the benefits Connecticut would enjoy if the state continues to invest in fuel cell technology.
Public Act 17-144, now expanded by Senate Bill 9, authorizes our electric utilities to deploy up to 30 megawatts (MW) of grid-enhancing fuel cells, and the Department of Energy and Environmental Protection (DEEP) to procure energy from fuel cells, biomass anaerobic digestion and offshore wind to enhance reliability of the grid.
Recently submitted proposals include four anaerobic digester projects in Connecticut with a combined capacity of over 4 MW; three offshore wind proposals outside of Connecticut waters with a combined capacity of over 590 MW; and 18 fuel cell projects in Connecticut with a combined capacity of over 230 MW.
The General Assembly is to be commended for identifying the great value of distributed energy and fuel cells to provide clean, reliable power to end users and the state's grid. It is in Connecticut's best interest to support locally driven initiatives that directly benefit our residents and our economy.
With the selection of projects located within Connecticut, the state would gain an opportunity for increased local reliability, local construction jobs and reinforcement of the local grid.
Further, the selection of fuel cells within the DEEP procurement will bolster local fuel cell businesses and the state's economy. The fuel cell industry is the only Class I renewable energy resource that has a strong manufacturing presence and industrial supply chain in Connecticut.
The Connecticut hydrogen fuel cell industry provides approximately $601 million in revenue and investment annually. For every dollar of revenue generated by the hydrogen fuel cell industry through the manufacture and provision of fuel cell technology, an additional 84 cents of revenue is generated by other Connecticut businesses in the supply chain.
Using this conservative industry economic multiplier of 1.84, the economic activity potentially produced by 230 MW of fuel cell energy sources procured by DEEP and located within Connecticut would result in over $920 million of direct revenue and an additional $773 million in indirect and induced revenue that could be added to the state's economy.
In terms of cost to the consumer rate base, the price of energy from fuel cells is expected to compare very favorably with other Class I renewable energy resources. Cash flow and simple payback from fuel cell projects are typically achievable within four to seven years depending on financing.
Additionally, fuel cells have an exceptionally high availability and do not require additional backup generation, batteries or other energy-storage technologies to meet demand, unlike intermittent renewable sources.
Also, the development of distributed generation resources typically does not require new or significant reinforcement of transmission facilities.
With a long-term commitment of investment, incentives and supporting policy, the hydrogen and fuel cell businesses in Connecticut can provide a lead for regional and national economic growth, and Connecticut can be established as the global manufacturing hub for the industry.
Joel Rinebold is the chairman of the Connecticut Hydrogen-Fuel Cell Coalition and director of energy at the Connecticut Center for Advanced Technology.
