Solvay-BASF Joint Venture to Build 1-Megawatt Fuel Cell

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a joint venture with BASF SE (OTC:BASFY) (Ludwigshafen, Germany), Belgian chemicals and plastics company Solvay SA (OTC:SVYSY) (Brussels) plans to build a test fuel cell with a constant output of about 1 megawatt (MW) and a peak output of 1.7 MW of power. The fuel cell will be able to power large vehicles such as trucks, buses, cars, fork-lifts, and ships. The venture will be carried out at the SolVin (Brussels) plant in Antwerp at an estimated initial investment of 5 million euros ($6.8 million).

The fuel cell, which will have a proton exchange membrane, will be built using special polymers from Solway and membrane-electrode assemblies from SolviCore (Hanau-Wolfgang, Germany), with electrodes made of platinum. The venture is a part of the larger Project Hydrogen Region Flanders-South Netherlands (effective 2009-2012), and is aimed at utilizing hydrogen from Solvin's electroylsis plant to cogenerate power, while improving the efficiency of the plant. The assemblies will be manufactured at the Solvicore plant at Hanau, Germany, while NedStack BV will construct the cell. The fuel cell will be subject to further testing and research by WaterstofNet vzw prior to promoting its usage. Solvin, a leading player in the vinyls market is a joint venture of BASF (25%) and Solvay (75%), while SolviCore is a 50:50 joint venture between Umicore, a metals technology firm, and Solvay.

In a catalytic reaction that occurs within the fuel cell, hydrogen and oxygen bind to form water molecules, generating heat and electrical energy in the process. The cell itself comprises two electrodes, the special polymer-based electrolyte and the catalyst. The fuel, in this case hydrogen, combines with oxygen from the atmosphere to produce clean energy.

Several types of fuel cells are currently being tested throughout the world. Japanese companies Osaka Gas Company Limited (TYO:9532) (Osaka), Kyocera Corporation (NYSE:KYO) (Kyoto), Toyota Motor Corporation (NYSE:TM) (Aichi), and Aisin Seiki Company Limited (TYO:7259) (Aichi) have developed a solid-oxide fuel cell cogeneration system that is being put to test as a part of a new energy project in the country. AFC Energy plc (LSE:AFC) (Cranleigh, Surrey, England) has produced potassium hydroxide (alkaline)-based hydrogen fuel cell technology, a comparitively low-cost alternative to platinum-electrode-based systems with similar performance, although the system currently faces some issues regarding CO2-accumulation.

The fuel cell has major potential for use in hybrid vehicles. Automakers such Toyota and Honda Motor Company Limited (NYSE:HMC) (Tokyo) have begun manufacturing hybrids in a bid to increase fuel efficiency and reduce pollution. The vehicles are also outfitted with alternate powering mechanisms such as an electric motor or gasoline engine, enabling consumers to switch between the fuel cell and either of these alternatives.

With full-scale commercialization expected within the next three years, the fuel-cell market is poised for tremendous growth. According to recent forecasts, the overall global fuel cell shipments are set to record a compound annual growth rate (CAGR) of more than 75% in the next two years. Being a clean source of energy with low-emission rates and varied applications, the portable fuel cell segment has been predicted to grow at a CAGR of 70% during the same period.

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