Solid Oxide Fuel Cell Market Trends

Growth Drivers

• Increasing government initiatives and R&D on solid oxide fuel cell programs: The increasing government incentives support solid oxide fuel cell market growth. In the U.S., several programs provide various incentives to strengthen the domestic supply chain.   For instance, the Office of Fossil Energy (FE), U.S. Department of Energy, for USD 2.8 million in funding for cost-shared research and development projects. This will facilitate the development of cost-competitive fossil-based power generation with limited emissions. Besides, in September 2020, the U.S. Department of Energy (DOE) announced the selection of 12 projects to receive approximately the USD 34 million for small-scale solid oxide fuel cell systems.
  
  The California Energy Commission (CEC) in October 2020 approved USD 384 million in funds for clean transportation plan. It aims at closing gaps in infrastructure and zero-emissions fuels in order to phase out the sale of gasoline-powered passenger vehicles by the end of 2035. Additionally, the following investment has been dedicated toward medium- to heavy-duty EV workforce development and charging infrastructure:
  • USD 129.8 million for heavy- and medium-duty zero emissions EVs (ZEVs)
  • USD 70 million for hydrogen infrastructure
  • USD 25 million for near-zero-carbon fuel manufacturing and supply
  • USD 9 million for ZEV production

In July 2020, a MOU was signed by the governors of Colorado, California, Connecticut, Hawaii, Maine, the District of Columbia, Maryland, New Jersey, Massachusetts, New York, Oregon, North Carolina, Pennsylvania, Vermont, Rhode Island, and Washington. It devised a multi-state action plan to achieve 30% of all new medium- to heavy-duty vehicle purchases be ZEVs by 2030 and reach 100% in sales by 2050. Another regional effort was the ZEV Task Force to foster the deployment of 3.3 million zero emission vehicles by the end of 2025.

• Increasing mergers and acquisitions: The Fayetteville Public Works Commission (PWC) announced in May 2022 that it had reached an agreement with Bloom Energy to design the installation and operation of 1.5 megawatts of solid oxide fuel cells. The new project will cut emissions and enhance the municipality of Fayetteville's attempts to achieve North Carolina's clean energy criteria. The system generates power from numerous biogas streams, and the fuel cell installation will be situated next to PWC's P.O. Hoffer Water Treatment Center.

Challenge

• High capital cost associated with solid oxide fuel cell: A solid oxide fuel cell is an intricate synthesis of multiple chemical components that electrocatalytically oxidizes methane, LPG, and other natural gas-based fuels to generate electricity. Since, the fundamental chemical reaction is exothermic, SOFC runs at extremely high temperatures, typically between 700°C-1,200°C. Conventional ceramic electrolytes are ineffective at these temperatures. Yttria-stabilized zirconia (YSZ) is therefore required as an electrolyte. Zirconium possesses properties that resemble those of titanium and a melting point of 1,852 °C. Zirconium, however, costs about twice as much per unit as the ceramic-based electrolytes.