Wednesday, July 26th, 2006
Fuelling the future
Fuel cells have long been talked up as a solution to the world’s growing energy problems. But many investors have been burnt by the failure of fuel cell developers to deliver profitable business models.
The technology was actually invented way back in 1989 by Welshman William Grove and while most attempts to create sustainable businesses since then have flopped there are signs fuel cells could finally be ready for commercialization.
Several areas are in desperate need of efficient energy generation and could provide lucrative niches for fuel cell companies.
One of the most pressing issues is powering portable electronics such as laptops and mobile phones. The increasing number of applications and the mobility of modern workers are creating a surge in demand for power and longer battery life times. While conventional batteries last between two to eight hours, some fuel cells have lasted for 2000 to 3000 hours!
Global warming is also requiring an urgent review of energy sources. Fuel cells are a clean, efficient source of power for homes. Some companies are partnering with big utility companies to develop fuel-cell powered units which can provide all a home’s hot water and electricity needs.
But one area that has promised much but been slow to develop is the use of fuel cells for automobiles. Fuel cell developers are yet to overcome severe price and performance issues.
Below we’re provided a brief summary of the technology and its potential.
What are fuel cells?
Fuel Cells 2000, an industry education resource, defines a fuel cell as “an electrochemical device that combines hydrogen and oxygen to produce electricity, with water and heat as its by-product.”
Broker Collins Stewart says fuel cells “convert chemical energy from commonly available fuels directly into electricity without combustion.” It adds that fuel cells are “clean, quiet and efficient.”
Conversion efficiencies are 30 to 60 per cent, significantly better than the 15 to 35 per cent achieved by combustion engines, so fuel cells are environmentally friendly.
What are fuel cells used for?
1. They can power homes, providing hot water and electricity
2. Fuel cells can be used as an alternative to petrol to power cars
3. They can power portable generators
4. Fuel cells increase run time for mobile electronics, such as mobiles and laptops
What is the potential?
A report by PricewaterhouseCoopers forecasts the global market for fuel cells will be $46bn by 2011 and $2.6 trillion by 2021.
Fuel cell stocks have been hammered in the recent correction, which could provide make them attractive to value-conscious investors. Look for the ones who have held up relatively well, already have agreements with customers and have clearly defined strategies.
This is the best site for a list of quoted companies in the fuel cell space.
Word Count: 428. This entry was posted on Wednesday, July 26th, 2006 at 7:09 pm and is filed under GrowthTrends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
