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Introduction to Investing in Fuel Cell Stocks

Fuel cells - which are similar to batteries, but require regular supplies of fuel - have for decades been touted as one of those "next best things". Particular attractions are that they do not require combustion, have no moving parts, are silent and with zero emissions. Signs are now emerging that the promise could soon become reality.

In a report "Clean Energy Trends 2008", the Clean Edge research group forecast that fuel cell business would surge from an estimated $1.5 billion in 2007 - which it described as "primarily for research contracts and demonstration and test units" - to $16 billion in 2017. This will be a considerably faster growth rate than for the three other main sources of clean energy - wind power, biofuels and solar power - although they will still have higher sales than will fuel cells.

Research efforts have yielded many kinds of fuel cell, and applications are varied. The "hydrogen car" is one application that has received considerable publicity, with prototypes from several auto manufacturers. But it is generally felt that we are many, many years from seeing hydrogen fuel fall to a price where it is competitive with regular gasoline.

Military applications look likely to provide some of the earliest demand for fuel cells. At present, soldiers on maneuver often have to bring heavy and bulky power generation systems with them, sometimes in trailers or special vehicles. New fuel cells under development could make it possible for individual soldiers to carry their own fuel supply systems. It may become possible for a single fuel cell to provide power to both vehicles and equipment.

Companies involved include Mechanical Technology, Medis Technologies, Millennium Cell and Neah Power Systems. For more details see Fuel Cells - Power for the Military.

The other principal application that looks likely to stimulate rapid growth is cogeneration - that is, fuel cells for dual home heating and power supply thanks especially to evolving technology and falling costs.

One of the big incentives comes from the Japanese government, which is keen to diversify away from expensive gas and electricity. It is promoting the development of fuel cell cogeneration systems with subsidies, and has set a target that 1.2 million residential cogeneration units should be installed by 2010. As gas prices soar, European countries too are actively promoting cogeneration.

Companies involved include Ballard Power Systems, Ceramic Fuel Cells and Ceres Power. For more details see Fuel Cell Cogeneration Systems - Coming Soon to a Home Near You?

March 7th, 2008

 

 

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