Navigant Research: Stationary fuel cells becoming viable in various markets globally

by Brianna Crandall — November 30, 2016 — A new report from Navigant Research examines stationary fuel cells for micro-combined heat and power (MCHP), prime power, large combined heat and power (CHP), and uninterruptible power supply (UPS) applications, with global market forecasts for capacity and revenue segmented by technology, application, and region through 2025. The global market is expected to reach $16.2 billion by 2025.

According to the report, the market for stationary fuel cells is transitioning toward maturity and wider adoption, buoyed by improving economics, government support, and growing demand for resilient, dispatchable power. In addition, technology breakthroughs are giving way to persistent cost declines, product improvements, and business model innovations, making fuel cells viable in a growing range of markets and opening new opportunities for stakeholders that are prepared for the transition.

Adam Forni, senior research analyst with Navigant Research, stated:

Stationary fuel cells have needed significant lifecycle cost declines to compete in the broader electricity generation market. Those cost declines — and therefore the industry — are approaching a tipping point, thanks to maturing supply chains, innovative business models, and steady policy support.

To date, more than 150,000 MCHP units have been installed in Japan, where prices have fallen under the successful ENE-FARM subsidy, according to the report. In the United States and South Korea, major energy players like Apple, Constellation Energy, and POSCO Energy have invested millions in fuel cell projects, while strong policy support in Japan and South Korea are expected to drive broad adoption, with similar effects expected in other advanced economies in North America and Europe.

The report, Stationary Fuel Cells, analyzes the global market for stationary fuel cells for MCHP, prime power, large CHP, and uninterruptible power supply (UPS) applications. The study provides an analysis of key market and technology developments related to stationary fuel cells and covers proton exchange membrane, solid oxide, molten carbonate, phosphoric acid, alkaline, and direct methane fuel cells.

Global forecasts for capacity and revenue, segmented by technology, application, and region, extend through 2025. The report also profiles the key players that are active in the global stationary fuel cell industry. An Executive Summary of the report is available for free download on the Navigant Research Web site.