First Residential Fuel Cell System in Western New
York Powers Home
Technology Uses Natural Gas to Generate Electricity
(April 18, 2002) LEWISTON, N.Y.: A partnership of business and government
entities today unveiled the first fuel cell system to power a single-family
home in Western New York. Officials from New York State Energy Research
and Development Authority (NYSERDA), National Fuel Gas Company (NYSE:
NFG), Plug Power Inc. (NASDAQ: PLUG), ATSI Engineering Services (ATSI),
Integrated Building And Construction Solutions, Inc. (IBACOS), and
the United States Department of Energy (DOE) met in Lewiston, N.Y.,
to showcase the installation.
The home is one of two residential fuel cell projects in the service
area of National Fuel Gas Distribution Corporation, the gas utility
segment of National Fuel Gas Company. The projects are expected to
demonstrate the viability of fuel cells as a source of clean, efficient
electric power generation for residential applications connected to
the grid.
National Fuel Gas Distribution Company and NYSERDA are co-funding
these projects to help develop fuel cell technology for the residential
market. The projects involve operating one 5 kW, grid-parallel Plug
Power fuel cell system at a home in Lewiston (Niagara County) and
a second unit at a home in Colden (Erie County). The systems are expected
to operate for approximately one year before being returned to Plug
Power for analysis. IBACOS has equipped the Lewiston home with a monitoring
device, funded through the DOE, to measure and evaluate electric appliance
performance throughout the project.
"Commercialization of new energy technologies is perhaps one
of the most difficult tasks for entrepreneurs trying to bring their
product to market," said NYSERDA President William M. Flynn,
who spoke at this morning's event. "With funding available for
distributed generation projects, NYSERDA can help bridge the gap and
bring an innovative technology, such as fuel cells, to consumers.
New York can be a leader in this important effort. Under Governor
Pataki's direction New York is a leader in this important effort."
With 15 years of experience in distributed generation applications,
National Fuel was well suited to partner with NYSERDA on the fuel
cell project. Engineers from National Fuel will compile a "best
practices" guide that will detail the installation, operation
and maintenance of the fuel cells.
Distributed generation is a term that describes power generation
technology (such as fuel cells, micro turbines, engines, turbines,
etc.) that provides electric power at a site closer to customers than
a central generating station and can be connected directly to the
end user or to an electric utility's transmission or distribution
system. Distributed generation is an important growth opportunity
for National Fuel, especially because many of these new technologies
are fueled by natural gas. It is also an important opportunity for
economic development, as the technology helps reduce electricity costs.
In addition, distributed generation helps ensure security of electricity
production by decentralizing power generation.
"The power of partnerships is evident today as we see how this
collective effort and shared interest is providing safer, cleaner
and more efficient energy technology. We look forward to future partnerships
with these organizations," said National Fuel Gas Distribution
Corporation President David F. Smith. "National Fuel is proud
to see such progressive opportunities arising in our service area.
We are committed to developing distributed generation projects throughout
Western New York, and we applaud the technical and financial support
of NYSERDA, Plug Power, ATSI, IBACOS and the DOE. We have worked on
successful commercial applications of this technology in the past
and are eager to see its expansion into the residential market."
Plug Power has demonstrated more than 200 fuel cell power systems
in over forty field locations on three continents since 1999. "The
program will help fuel cells evolve as a technology that can contribute
to the overall reliability and performance of electricity delivered
to residential and commercial customers through the electric power
grid," said Roger Saillant, Plug Power CEO and President. "We
are pleased to partner with NYSERDA, National Fuel, ATSI, IBACOS and
the DOE on this cutting edge development."
ATSI has been involved in these fuel cell installation processes
since the project was first proposed to NYSERDA. ATSI also sent two
of its engineers, including the homeowner who is the chief engineer
with the firm, for installation training at Plug Power's facilities
as part of an initiative to outsource the installation process in
future demonstration projects.
A fuel cell is an electrochemical device that combines hydrogen and
oxygen from the air to produce electric power without combustion.
Hydrogen is derived from a fuel such as natural gas, propane, methanol
or gasoline and can also be obtained from the electrolysis of water,
stored hydrogen or a hydrogen pipeline. This technology offers several
environmental and economic benefits, such as insignificant emissions
that are substantially lower than those of conventional coal power
generation stations.
Other anticipated applications of fuel cells include transportation
and automotive applications, portable applications, and distributed
power for remote locations. Commercialization of the technology requires
characterizing various performance parameters such as operating experience
under varying climatic conditions and fuel efficiency.
Funding for this project is provided through NYSERDA's New York
Energy $martSM program, which is designed to lower
electricity costs by encouraging energy efficiency as the State's
electric utilities move to competition. The programs are available
to all electric distribution customers (residential, commercial, institutional
and industrial) of Central Hudson, Con Edison, New York State Electric
and Gas, Niagara Mohawk, Orange and Rockland, and Rochester Gas and
Electric. All New York Energy $martSM programs are
funded by a System Benefits Charge (SBC) paid by electric distribution
customers of participating utilities.
Established by law in 1975, the New York State Energy Research and
Development Authority (NYSERDA), administers SBC funds and programs
under an agreement with the Public Service Commission. More than 400
NYSERDA research projects help the State's businesses and municipalities
with their energy and environmental problems. Since 1990, NYSERDA
has successfully developed and brought into use more than 125 innovative,
energy-efficient and environmentally beneficial products, processes
and services. These contributions to the State's economic growth and
environmental protection are made at a cost of about $.70 per New
York resident per year. Federally funded, the Energy Efficiency Services
program is working with more than 540 businesses, schools, and municipalities
to identify existing technologies and equipment to reduce their energy
costs.
National Fuel is an integrated energy company with $3.5 billion in
assets comprised of the following six operating segments: Utility,
Pipeline and Storage, Exploration and Production, International, Energy
Marketing and Timber. The utility provides natural gas service to
approximately 700,000 customers in western New York and northwestern
Pennsylvania. Additional information about National Fuel is available
at www.nationalfuelgas.com
or through its investor information service at 1-800-334-2188.
Plug Power designs, develops and manufactures on-site electric power
generation systems utilizing Proton Exchange Membrane fuel cells for
stationary applications. Plug Power's fuel cell systems are expected
to be sold globally through a joint venture with General Electric
and through DTE Energy Technologies in a four-state territory, which
includes Michigan, Illinois, Ohio and Indiana. The Company's headquarters
are located in Latham, N.Y., with offices in Washington D.C. and The
Netherlands. Additional information about Plug Power is available
at www.plugpower.com. |
