Plans by fuel cell manufacturer Ceramic Fuel Cells Limited (CFCL) to commercialise its micro-CHP (mCHP) technology were dealt a blow when one of the firm’s European utility partners cancelled a volume order.
Australia-based CFCL says that in spite of the successful demonstration of one its NetGenPlus units, Dutch utility Nuon has decided not to proceed with a planned forward order for the commercial version of the product.
The two firms have been jointly conducting a project to develop and demonstrate CFCL’s NetGenPlus since mid-2008. A single unit installed in September 2008 has achieved 4624 hours of operation and met or exceeded all technical targets, according to CFCL.
CFCL and Nuon’s agreement is one of several utility partnerships established by CFCL in Europe with the aim of bringing its product to market. Part of the agreement was a conditional forward order of up to 50 000 NetGenPlus units by Nuon for installation in homes around the Netherlands.
The order would have generated substantial revenue for CFCL and its loss is a blow to CFCL’s commercialisation plans, which depend on mass production volumes to reduce manufacturing costs. Nuon’s decision is also somewhat surprising given its recent agreement to merge with Vattenfall, a strong proponent of low-carbon technology development.
CFCL says that it will continue to develop mCHP products with other partners in Germany, France, the UK and Japan. One of the cornerstones of its commercialization plan is an investment of EUR12.4 million in the construction of a manufacturing plant in Germany with an initial capacity of 10 000 units per year.
NetGenPlus is based on an advanced metal-ceramic fuel cell stack that can be integrated with high-efficiency boilers to produce electricity and hot water for residential and small commercial properties. CFCL shipped a number of units to partners across Europe in 2007 and 2008, and also recently announced significant advances in the efficiency of its product.
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