Abstract
At the time the war in Iraq ended, the army and military had only a three-day
supply of batteries left. The military had raided battery stores from bases
all over the world; the battery factories were working 24 hours per day. There
is significant incentive to develop fuel cells as a replacement for batteries.
This fuel cell market will develop first.
The handheld digital device power markets will develop much faster because the
units are disposable, the technology is easier, and the markets are likely to
develop faster. Handsets for wireless communications are replaced on average
every 19 months. Thus, the fuel cell power device does not have to have the
reliability capabilities that the automotive fuel cells need to have to be
competitive.
Micro fuel cells are used to replace batteries. Smart Fuel Cell AG SFC fuel
cell cost reduction (SFC) has reached an important breakthrough in reducing
the costs of micro fuel cells. A new membrane allows substitution of at least
50 percent of the expensive catalytic platinum.
The market driving force for fuel cells is the reality that fossil fuels are
running out, and ultimately too expensive as an energy source. Wind and solar
energy can be used to generate electricity, but the electricity is fleeting,
it needs to be stored. Hydrogen is an effective storage means for electrical
power. But hydrogen needs to be manufactured so that there is an energy source.
Manufacturing costs for fuel cell components make systems too expensive to be
competitive at the current time. Investment is needed to decrease the
component costs. Economies of scale are needed to make fuel cells competitive.
Fuel cell components are enabling fuel cell commercialization. Strategic
suppliers to Ballard Power Systems are the most important component market
participants as Ballard is a world leader in the development and
commercialization of PEM fuel cells.
The fuel cell component markets are expected to be $171 million in 2004 as
products being to teach the market commercially in all three categories of
offerings: micro fuel cells to replace batteries, residential and backup power
units, in busses, and in the personal transport markets. If the advances
promised by current trends are accomplished, the fuel cell component markets
reach $100 billion in 2013 for the combined segments.
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