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FuelCell’s cost efficiency augurs well for CHP

FuelCell Energy has recently announced strategic initiatives in South Korea and an MoU with Air Products. Innovation of design has allowed the company to lower costs and make fuel cell technology more attractive.

Speaking to Power Engineering International, Kurt Goddard, Vice President Investor Relations, says that the ability to reduce costs is a constant positive for the business.

“We’ve managed to reduce our costs by 60 per cent – we’ve done that by product design and product engineering. Enhancing the product to provide more output, figuring out ways to reduce cost in our design process. So at this point our pricing, if you look at it on a per kilowatt hours basis, on par with the electric grid in high cost regions in the US such as California and Connecticut. What we want to do is get it below the grid cost and we can do that through volume so a lot of our component costs are steel or powdered nickel so the more we buy the lower get our cost.

FuelCell’s products have been significant in complementing combined heat and power plants, and the possibility of further growth in that area is strong

“What make our story so positive is that we have this path to reduce our costs on sales volume alone. We don’t need someone in our R&D lab and as we keep getting our costs down it promotes adoption further and further.”

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