Increasing R&D on fuel cells coupled with government support augment the market growth of solid oxide fuel cell
Various governmental and commercial collaborative activities to produce new products with superior characteristics have been noted in the solid oxide fuel cell (SOFC) market. Moreover, some top research groups from various educational institutions have launched new enterprises to execute R&D projects focused on technology.
North America government has put favorable regulatory frameworks to encourage the adoption of hydrogen-based technologies, which is expected to drive the solid oxide fuel cell market. Furthermore, governments have presented their medium- and long-term goals for decarbonizing the economy and accelerating the implementation of breakthrough zero-emission technologies such as fuel cells.
For instance, U.S. Department of Energy (DOE) announced in September 2020 to fund US$ 34 million under the Funding Opportunity Announcement (FOA) program. High funding aims to design and build small-scale SOFC systems.
Furthermore, Fuel cell programs in California, Delaware and Connecticut are leading the way, with incentives and subsidies for fuel cell installations, resulting in SOFC and other fuel installations throughout U.S. Before December 31, 2016, fuel cells deployed in U.S. were eligible for a tax rebate of US$ 3,000/kW or 30% of the project cost
In addition, on May 04, 2021, FuelCell Energy, Inc., a leader in fuel cell technology with the mission of empowering a world powered by sustainable energy through the use of its unique, cutting-edge fuel cell platforms, announced advancements in the commercialization of its solid oxide fuel cell (SOFC) technology. The U.S. Department of Energy has granted extra cash to advance the technological advances in ongoing programs (DOE). The Company announced that it had received Phase 2 funding for US$8 million for the previously announced ARPA-E project to develop ultra-high efficiency SOFC systems for power generation. The funding was given based on the Company's progress and differentiated platform.
Growing environmental concern and eco-friendliness of solid oxide fuel cells in North America have escalated the market growth of the product
Due to the high environmental impact of power generation, such as carbon emission, landfill waste and chemical residue polluting air, water and land and growing environmental concerns, governments and regulatory bodies are investing in and developing new green energy generation technologies.
As a result, researchers are becoming increasingly interested in solid oxide fuel cells (SOFCs), a promising power generating technology with great energy efficiency, increased fuel flexibility and reduced environmental impact compared to conventional power production systems. SOFCs are devices that directly transform chemical energy into electrical energy with little emissions. SOFCs emit little pollution, have a high efficiency (60 percent) and have a wide range of fuel options with minimal environmental impact.
The excellent ability of solid oxide fuel cells (SOFC) to produce electricity using a variety of fuels has led to their rapid growth as one of the alternative backup power choices. Additionally, they are environmentally favorable because their byproduct is safe, unlike other traditional methods. For transportation and power generation industries, U.S. pioneered implementing sustainable energy solutions. The growth is due to the greater significance of renewable energy options under U.S. government's energy act. Such actions have given the nation's energy sector a place to start when implementing renewable energy alternatives.
For instance, on September 15, 2020, U.S. Department of Energy (DOE) announced the selection of 12 small-scale solid oxide fuel cell systems and hybrid electrolyzer technology development projects to be funded US$ 34 million as federal funding under the funding opportunity announcement (FOA).
The tremendous increase in adoption by end-users in data centers and the military sector.
In U.S., data centers are the end-users of the power generation application that are expanding at the highest rate. A data center requires a significant amount of power to operate. Additionally, data centers need a constant power supply around the clock to prevent losing important data. An estimated 70 billion kWh or 1.8 percent of all U.S. electricity use in 2014, was used by data centers in the country. According to a recent Lawrence Berkeley National Laboratory study, data center power consumption climbed by about 4% between 2010 and 2014, which is a significant change from the estimates of a 24% increase between 2005 and 2010 and a roughly 90% increase between 2000 and 2005. Energy consumption has shown growth of around 4% from 2014 to 2020, which is the same rate as the previous five years, in the near future. According to current trends projections, U.S. data centers are expected to increase even in the forecast period.
Due to the high power usage, data centers choose to save costs by implementing distributed power generation, notably fuel cells. In the past, SOFC and other fuel cells have experienced rapid growth in U.S.
The U.S. SOFC industry has experienced the strongest growth due to Google, IBM and Equinix adopting SOFC for their data centers. One of the most lucrative end-use markets for SOFC is the data center industry, where SOFC adoption is minimal relative to the total number of data centers in U.S.
COVID-19 Pandemic had a moderate impact on the market
The COVID-19 pandemic significantly impacted the North America solid oxide fuel cell sector because of three key factors: The supply chain was the first and most severe impact on the market, affecting raw material availability and end product sales.
Second, solid oxide fuel cell manufacture involves various manufacturing and purification procedures, which have been severely hampered by the COVID-19 pandemic's lockdowns and government controls.
The interruption of essential end-user industries' export and import activities includes food and beverage production and oil production. Due to the general drop in end-user activity, market demand for solid oxide fuel cells was lowered, influencing demand-supply dynamics.
Furthermore, Bloom Energy, a SOFC/fuel cell company, has created a microgrid using the fuel cell system capable of powering the entire hospital with its makeshifts to accommodate the patient overflow, in accordance with the California government's order to provide a constant power supply to the additional hospitals built to deal with this disaster. Bloom Energy also deployed a 400 kW fuel cell-based microgrid to power a temporary hospital with nearly 100 beds in California.
Nonetheless, the market for solid oxide fuel cells is likely to recover due to the growing region’s growth in the automotive market.
DataM Analysis Report
North America Solid Oxide Fuel Cell market is expected to expand at a CAGR of XX% during the forecast period. Government subsidies, increased fuel cell research and development, fuel flexibility, rising demand for energy-efficient power production and strict pollution regulations are the main factors driving the solid oxide fuel cell market.
Market Overview
- According to DataM Intelligence's latest research report on the Solid Oxide Fuel Cell market in North America for the historic period, 2019 and the forecast period 2020–2030, the rising demand for SOFCs during growing data centers is a factor expected to boost the market in North America during the forecast period.
- In terms of revenue, the Solid Oxide Fuel Cell market size in North America is estimated to surpass US$ XX Bn by 2030, expanding at a CAGR of XX% throughout the forecast period.
Key Driver
- Power and energy are vital to mission success in harsh conditions in the military and defense. A lightweight solid oxide fuel cell can deliver this power from many fuels, including complex hydrocarbons typically incompatible with other fuel cell technologies.
- A lightweight, i.e., 1 to 3kW solid oxide fuel cell device is sought for various missions ranging from a wide spectrum of dismounted solider power to silent watch operations.
- The technology is utilized for various purposes, such as providing direct power to army systems or charging lithium-ion rechargeable batteries. As a result, it would reduce the logistical burden in weight and volume for dismounted soldiers by reducing the battery numbers required for extended mission time and various civilian electronics applications.
- Robust solid oxide fuel cell power systems with high power densities substantially impact military applications, hastening product development, especially for lightweight, portable power devices.
- Because the civilian market and quantity of devices are far greater than the military market, broad use of this technology will drive down the cost of military equipment. Demonstrate SBIR accomplishments to demonstrate applicability to field circumstances and compatibility with JP-8.
- All units of U.S. armed forces have been developing solid oxide fuel cell technology to meet the military's demand for modular, secure and reliable power. Soldier palm power, portable power, unmanned ground, subsurface and aerial vehicles, prime and backup power for buildings and APUs and transportation range extenders are all areas of interest.
- The primary reasons for interest are the solid oxide fuel cells' high power density and ability to operate on logistic fuels. In general, the development of the SOFC for military applications has used technological advancements in the commercial sector.
- Numerous portable solid oxide fuel cell power systems have been built. They are now available, with backing from U.S. Department of Defense (DOD) and several hardware systems that have been demonstrated for operation using logistic fuels. For example, two 350-W systems, one for battery charging and one for unmanned aerial (UAV) and unmanned ground (UGV) vehicles, developed with DOD assistance
The rise of CHP systems in industrial, government, commercial and institutional
- Combined heat and power system is an energy-efficient technology that produces electricity and absorbs waste heat to generate useable thermal energy for space heating, cooling, home hot water and industrial activities. It can be installed at a single business, building or part of district energy or utility resources. In addition, it is generally found in buildings requiring electrical and thermal energy.
- Almost two-thirds of traditional electricity generation energy is squandered as heat vented into the atmosphere. During the delivery of electricity to end customers, additional energy is wasted. By capturing and utilizing heat that would otherwise be lost and eliminating distribution losses, the system achieves more than 80% efficiencies compared to 50% for traditional technologies.
- Moreover, the combined heat and power technology can be deployed fast, affordably and with few geographical constraints. It can operate on a range of fuels, both fossil and renewable. In addition, it is utilized primarily in industrial, large commercial and institutional applications. Outside of industrial, commercial, institutional and utility circles, the technology has quietly provided highly efficient energy and process heat to some essential companies, largest employers, urban areas and universities.
- In U.S., the CHP Deployment Program of the Advanced Manufacturing Office provides stakeholders with the resources they need to discover CHP market opportunities and promote the installation of CHP systems in industrial, government, commercial, institutional and other applications. Thus the growth in U.S. CHP systems is expected to create huge market growth potential for the North America Solid Oxide Fuel Cell.
Competition Landscape
- Detailed profiles of major market players providing Solid Oxide Fuel Cell solutions are provided in the report, including financials, company profile analysis, market revenue analysis, import and export, recent developments and market strategies analysis, key product/service offerings and an overview of the Company
- Key players operating in the region's Solid Oxide Fuel Cell market are Bloom Energy, Special Power Sources, Watt Fuel Cell Corporation and others.
Strategic Partnerships
- Major market players of Solid Oxide Fuel Cell solutions in North America, such as Bloom Energy, Special Power Sources, Watt Fuel Cell Corporation and others, are focusing on strategic partnerships and acquisitions to expand their footprint. Some other key market strategies in the Solid Oxide Fuel Cell market in North America are highlighted below:
- On December 20, 2020, Watt Fuel Cell Corporation and People Gas announced a new milestone in their continuing partnership for commercializing residential fuel cell systems. The jointly developed fuel cell stack obtained 40% efficiency under operational conditions, allowing for residential application rollout in 2021.
- The focus of key organizations is on expansion and cooperative efforts to strengthen commercial presence. For example, on August 23, 2021, Special Power Sources was selected for phase I funding by U.S. Department of Energy (DoE)’s Small Business Innovation Research (SBIR) program. The Company’s winning proposal was a proton conductive ceramic reversible fuel cell for energy storage.
- In North America Solid Oxide Fuel Cell market report, we have discussed individual strategies, followed by company profiles of providers of Solid Oxide Fuel Cell solutions. The 'Competitive Landscape' section is included in report to provide the readers with a dashboard view and competitive analysis of key players operating in North America Solid Oxide Fuel Cell market.
