60 Minutes recently featured a story about a fuel cell generation system offered by Bloom Energy.  Called a "Bloom Box",  it produces electricity from natural gas.   It represents an exciting glimpse into future energy systems.  But is it ready for prime-time today?   Not really -- unless you've got a few hundred thousand dollars sitting around collecting dust. 

Currently, a 100-kilowatt Bloom Box array costs around $700,000 to $800,000, or $7,500 a kilowatt....and this is after incentives that cover around 50 percent of the costs. (This according to Michael Kanelos)  The company claims that within 10 years it can have residential boxes that would cost between $2-$3,000, but that is more wish than will.

Bloom Energy isn't the only fuel cell company.  Panasonic started selling home fuel cells in Japan last year that generate around 1 kilowatt, not enough to power a complete household, for $30,000 before incentives, or $15,000 if you factored in U.S./California incentives. ClearEdge Power has a 5 kilowatt fuel cell that costs $56,000 and drops to the $30,000 to $25,000 range after incentives. Ceres Power in England will come out with a fuel cell made in part with diesel components next year.  Meanwhile, a gaggle of automakers are working on developing fuel cell generators for their cars -- these scaled-down generators could be readily transformed into residential generators and could be available in less than 10 years. 

Another problem:  Bloom Boxes rely upon natural gas as a fuel source.   Bloom Box Buyers (BBBs) will have to contend with fluctuating gas prices.  Currently, natural gas prices are at historical lows.  But it is also a historically very volatile commodity and natural gas buyers all share ulcers and therapy costs from trading in this price-spastic fuel source.   In ten years, natural gas may be very costly....or could continue to be dirt cheap.   Anyone who tells you which way natural gas costs are headed is to be disbelieved.   And methane and biogas generally tend to track natural gas prices.  So those seeking renewable gas sources will be similarly challenged.

Yet another problem:   Bloom Boxes are complex devices.  They contain fans and other mechanical objects and they are an unproven device that will no doubt have some glitches.   In contrast, PV (photovoltaic) cells have no moving parts, have a proven operational record and are usually warranteed to last 25 years or more. One of the big hurdles that Bloom will have to cross is the reliability of the ceramic/zirconium plates inside the fuel cell. According to Kanelos, these plates, which convert gas to electricity, must operate in an 800-degree Celsius environment without becoming distorted or corrupted. User data will be heavily scrutinized. Sources say that the plates have a lifetime of five years: replacement at this pace is contemplated in the 9 to 10 cents a kilowatt hour price. If replacement occurs at a faster rate, it could throw off the costs. Add to that the fact that Underwriters' Laboratory and hundreds of utilities have tested and tinkered with photovoltaic panels and wind turbines for years. Bloom will have to go through the process of utility reliability testing, which will take a number of years, before it can start selling to residential customers.

Granted, offsetting these problems are Bloom's advantages.  It can produce power 24 hours a day whereas PV only produce during the day and wind turbines are only active when the wind is blowing.   Bloom also permits for electric storage;  fuel cells are by their very nature electricity storage devices. They could compete very favorably against expensive lithium and sodium battery technologies.   And Bloom offers some very enticing potential add-ons.  For example, if they add plumbing to the Boxes, they could potentially turn the fuel cells into hydrogen-from-water converters.   This is a Holy Grail capability that could totally transform our energy economy.  

Yes, there is a lot to be excited about.  Fuel cell generation holds great promise.  Bloom Energy certainly is tapping into that excitement.   Whether it delivers more than the General Electrics, Siemens, Ballards, Panasonics, Samsungs, Clear Edges, large multinational automakers, and assorted other large companies pursuing fuel cell technology isn't clear.   What is clear is Bloom Energy pulled off a marketing coup by getting featured on 60 Minutes.  For that accomplishment, alone, they deserve some props.