Fuel Cell Manufacturing, Deployment Gain Ground in U.S.

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Fuel cells, powered by either hydrogen or natural gas, are being increasingly deployed for power generation throughout the U.S., and fuel-cell manufacturers are underway with projects to help meet the increasing demand.

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A Growing Technology

The use of fuel cells to provide power generation is gaining ground at sites throughout the U.S., with data centers in particular targeting the technology to decrease reliance on external power. Smaller fuel cells can be used in automotive applications.

Industrial Info Resources data show more than $4.8 billion in active power generation projects using fuel cells, although most of these are planned for the future.

The "fuel cells" umbrella is a bit broad, as the label covers both fuel cells powered directly by hydrogen as well as those that run on a supply of natural gas. The technologies have similarities, as hydrogen is the ultimate source of power for both types of cells.

Both hydrogen and natural gas fuel cells generate electricity through an electrochemical process, rather than combustion. Hydrogen-based fuel cells directly use hydrogen, with water vapor the only byproduct (in addition to heat). Natural gas fuel cells actually convert the natural gas to hydrogen, which is then used to generate electricity and releases both water vapor and carbon dioxide, although significantly less CO2 than combustion processes, as well as virtually eliminating some types of emissions such as nitrogen oxides and sulfur oxides.

Industrial Info's fuel cell coverage of fuel cell manufacturing and their deployment for power generation includes both natural gas- and hydrogen-based fuel cell technologies.

Power Generation Deployment

Using fuel cells for behind-the-meter power generation is gaining ground in the U.S., and the prime recipients of this technology are data centers.

Many of the fuel cell systems that are intended for data centers are meant to run on natural gas, but one of the nation's leading fuel cell manufacturers, Bloom Energy, provides technologies that possess substantial fuel flexibility.

It's these flexible Bloom technologies that American Electric Power Company (AEP) plans to use at a generation facility in Hilliard, Ohio, to help power a nearby Amazon data center. Industrial Info Resources data show most of the buildings at Amazon's Hilliard data center have been completed, and work on the final 110,000-square-foot building is planned to begin this year. Shortly after that building is finished in mid-2027, AEP is expected to put the finishing touches on a 72.91-megawatt (MW)fuel cell facility that will power a portion of the data center.

At the generation site, AEP will employ various Bloom Energy systems that are primarily meant for natural gas but fully capable of using hydrogen or biogas for a lower emissions footprint. Construction of the power generation plant is expected to begin later this year and last about a year.

Amazon also is considering a 20-MW fuel cell system using Bloom technology at a data center in Santa Clara, California, while elsewhere in Ohio, AEP is in the early planning stages for the use of a 100-MW fuel cell system to help power Cologix's planned $8 billion hyperscale data center in Johnstown.

Fuel Cell Manufacturing

On the fuel-cell manufacturing side, covered by the Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database, many, but not all, of the current projects are based on hydrogen-focused technologies, largely the result of a number of them receiving funding from the Biden-era Inflation Reduction Act (IRA), which was primarily aimed to fund clean energy projects.

One of the leading projects to receive IRA funding broke ground earlier this year in Chesterfield County, Virginia, where Topsoe is working with joint venture partners Fluor Incorporated and ABB Incorporated to construct a 280,000-square-foot facility to produce up to 1 gigawatt (GW) per year of solid oxide electrolyzer cells, primarily fueled from green hydrogen. The plant is expected to be completed in 2028.

Most of the other fuel cell-manufacturing construction being tracked by Industrial Info Resources is for renovations and expansions of existing facilities. In the coming weeks, Bloom Energy is expected to break ground on an expansion of its manufacturing plant in Fremont, California, that will include installation of a new assembly line to boost production capacity to 2 GW per year.

Key Takeaways

• Industrial Info Resources is tracking more than $4.8 billion U.S. power generation projects that will use fuel cells.
• Industrial Info is tracking construction of a grassroot fuel-cell manufacturing plant in Virginia, while most of the other manufacturing construction is for expansions and renovations of existing fuel cell plants.
• Data center developers are targeting the technology to provide behind-the-meter power generation.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).