Abstract
The market driving force for micro fuel cells is the demand for better energy sources than
batteries. Renewable energy is needed to be the base source. Batteries are a chemical process, but
they do not last long enough. Fuel cells promise to provide more reliable, longer portable power
than batteries.
Investment is needed to decrease the micro fuel cell component costs. Economies of scale are
needed to make micro fuel cells competitive. Micro fuel cell systems are far less expensive than the
alternative battery technologies in the long run.
Micro fuel cell products compete with power systems that utilize both direct and indirect energy
conversion methods. Direct conversion may involve fuels such as methanol, ethanol and sodium
borohydride that are converted into electrons through a direct fuel cell system.
During the war in Iraq, the military ran out of batteries. Supply managers took batteries out of
every other location worldwide. Battery companies worked 24 x 7 and could not product the needed
batteries. Three days of batteries were on hand when the war ended. The military has to build a
micro fuel cell substitute for batteries.
The market demand for these fuel cells is evolving. Mass-market acceptance is anticipated by
2008, with 145 million units in sales by 2010. The strong growth is anticipated to be starting in
2007 and 2008.
Markets are strongly impacted by the timing of the approval of letting unit be carried in the
cabin of an airplane. Units are now approved for the baggage hold of an aircraft, leading one to
believe that approval in 2007 is a reasonable expectation. The concern has been handling of
explosive materials.
The market demand for micro fuel cells is building towards mass-market acceptance by 2008.
Markets are anticipated to be $510-million worldwide by 2008, with the strong growth occurring in
2007 and 2008 as technology becomes mature and products start to work.
By 2013, micro fuel cell markets reach $11 billion. This represents a range of PC, handset, PDA,
and digital device segments in a variety of industry, military, and health care segments.