SOCALGAS INKS FIRST COMMERCIAL FUEL CELL DEAL

Southern California Gas Co. has signed a contract covering the world's first commercial sales of electrical power and heat generated directly from a natural gas fired fuel cell.

The advanced technology is expected to boost natural gas market share in areas such as the U.S. Northeast, where there is widespread use of oil to generate power and heat.

Fuel cells offer sharply increased energy efficiency and reduced air emissions-especially when fed by natural gas-compared with conventional power generation, and their commercial availability likely would spur switching to gas from oil, SoCalGas said.

AGREEMENT DETAILS

SoCalGas agreed to provide South Coast Air Quality Management District (Scaqmd), southern California's air quality regulatory agency, electrical power and heat under a 20 contract from a 200 kw fuel cell to be installed at Scaqmd's new headquarters in Diamond Bar, Calif., early in 1992.

Scaqmd noted the fuel cell will produce twenty-fold less air emissions than conventional power generation while saving the agency about $10,000/year, or 10-15% of its electricity costs. That works out to a cost reduction to 80/kw-hr from 100/kw-hr.

SoCalGas also plans to install and operate nine other fuel cells for large customers in the next 2 years. Counting smaller customers, the utility expects to install a total of 40 fuel cells the next 3 years.

The Scaqmd unit is expected to burn about 45 Mcfd of gas.

HOW IT WORKS

In fuel cells, natural gas reacts with steam to produce hydrogen and carbon dioxide. Then the hydrogen is stripped of its electrons as it combines with oxygen in an electrochemical reaction, producing direct current, steam, and heat.

The fuel cell is virtually noiseless and almost free of emissions.

Conventional power generation from burning oil and gas uses only about 30% of the fuel's energy content. The fuel cell increases that level to 45-60% and as much as 86% if waste heat recovery and steam are factored in.

Fuel cells cost $500,000 each, or $2,500/kw. SoCalGas expects that cost to drop to about $1,000/kw as production increases in the mid-1990s.

The first fuel cells SoCalGas is installing are being produced by United Technologies unit International Fuel Cells, Windsor, Conn. SoCalGas also is working with Westinghouse, M-C Power, and Energy Research Corp., among other companies developing fuel cells with similar or analogous technologies that feature greater efficiencies and waste heat recovery.

As smaller models are developed, fuel cells could be placed in individual homes to generate all electricity, hot water, and space heating, as well as 5 gal/day of pure drinking water.