Bloom Energy ServerFrom Wikipedia, the free encyclopedia                                     This article may require copy...
to the San Jose Mercury News, "Blooms secret technology apparently lies in the proprietary green ink thatacts as the anode...
Owner(s)        Kleiner Perkins (among others)  Website Energy is the company tha...
[edit]UsageOn 24 February 2010, Sridhar told Todd Woody of The New York Times that his devices are makingelectricity for 8...
[35]       Jacob Grose, senior analyst at Lux Research, told Fortune Magazine that he doubts Dr. Sridhar hascome up with a...
company $100,000 in electricity bills since they were installed in mid-2009, [8] yet Paul Keeganof Fortune calls that figu...
Capital cost (estimated minimum cost after                                                      $800,000.00 for each 200 k...
Power, already rolling out products with more advanced non-electrolyte-supported cells. Ceres has a four-year program to i...
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Bloom energy server

  1. 1. Bloom Energy ServerFrom Wikipedia, the free encyclopedia This article may require copy editing for grammar, style, cohesion, tone, or spelling. You can assist by editing it. (August 2012)The Bloom Energy Server (commonly referred to as the Bloom Box) is a solid oxide fuel cell (SOFC)made by Bloom Energy, of Sunnyvale, California, that can use a wide variety of inputs (including liquid orgaseous hydrocarbons[1] produced from bio sources) to generate electricity on the site where it will be used.[2][3] It is highly efficient, low cost and has low polluting emissions. This type of fuel cell can withstandtemperatures of up to 1,800 °F (980 °C), which would cause many other types of fuel cells to break down orneed maintenance, and is highly advantageous for its smooth operation. [4] According to the company, asingle cell (one 100 mm × 100 mm metal alloy plate between two ceramic layers) generates 25 watts. [5]Bloom stated that two hundred servers have been deployed in California for a number of corporations likeeBay, Google, Wal-Mart and many more.[6] Contents [hide] 1 Technology 2 Bloom Energy o 2.1 History 3 Costs o 3.1 Installation o 3.2 Usage 4 Installations 5 Portable units 6 Feasibility o 6.1 Efficiency o 6.2 Long term business case 7 Competition 8 See also 9 References 10 External links[edit]TechnologyThe Bloom Energy Server uses thin white ceramic plates (100 × 100 mm)[7] which are claimed to be madefrom "beach sand" . Each ceramic plate is coated with a green nickel oxide-based ink on one side (anode)and another black (probably Lanthanum strontium manganite) ink on the other side (cathode).[8][9] According
  2. 2. to the San Jose Mercury News, "Blooms secret technology apparently lies in the proprietary green ink thatacts as the anode and the black ink that acts as the cathode--" but in fact these materials are widely knownin the field of solid oxide fuel cells (SOFCs). Wired reports that the secret ingredient may be yttria-stabilizedzirconia based upon a 2006 patent filing (7,572,530) that was granted to Bloom in 2009; but this material isalso one of the most common electrolyte materials in the field.[10] US US20080261099, which is assigned toBloom Energy Corporation, says that the "electrolyte includes yttria stabilized zirconia and a scandiastabilized zirconia, such as a scandia ceria stabilized zirconia". ScSZ has a higher conductivity than YSZ atlower temperatures which provides greater efficiency and higher reliability when used as an electrolyte inSOFC applications. Scandia is scandium oxide (Sc 3O2) which is a transition metal oxide that is soldbetween US$1400 to US$2000 per kilogram in 99.9% form. Current annual world wide productionof scandium is less than 2,000 kilograms. Most of the 5,000 kilograms used annually is sourced fromlimited former Soviet era stockpiles.To save money, the Bloom Energy Server uses inexpensive metal alloy plates for electricconductance between the two ceramic fast ion conductor plates. In competing lower temperature fuelcells, platinum is required at the cathode.[8][edit]Bloom Energy Bloom Energy Type Privately held Predecessor(s) Ion America Founded 2002 Founder(s) K. R. Sridhar C.E.O , John Finn, Matthias Gottmann, James McElroy, Dien Nguyen Headquarters Sunnyvale, California, USA Key people K. R. Sridhar (founder, CEO) Products regenerative solid oxide fuel cells Net income 85 Million loss (2008)[11]
  3. 3. Owner(s) Kleiner Perkins (among others) Website Energy is the company that develops, builds, and installs Bloom Energy Servers. [11] The company,started in 2002 by CEOK.R. Sridhar,[11] is one of 26 named a 2010 Tech Pioneer by the World EconomicForum.[12][edit]HistoryIn October 2001, K.R Sridhar C.E.O had a meeting with John Doerr from the large venturecapital firm Kleiner Perkins.[13] Sridhar was asking for more than $100 million to start the company. BloomEnergy has received $400 million of start-up funding fromventure capitalists, including KleinerPerkins[8] and Vinod Khosla.[14]The company, originally called Ion America, was renamed to Bloom Energy in 2006. [15]Sridhar credited his nine-year-old son for the name, saying that his son believed jobs, lives, environmentand children would bloom.[16] One of the celebrities appearing at the product launch was Michael R.Bloomberg, who appeared by video link.[17]Bloombergs business news network covered the event, but wasattributing every statement to "Bloom Energy". [18]The CEO gave a media interview (to Fortune Magazine) for the first time in 2010, eight years after foundingthe company, because of pressure from his customers.[11] A few days later he allowed a journalist (LesleyStahl of the CBS News program 60 Minutes) to see the factory for the first time.[19] On February 24, 2010,the company held its first press conference. [15][edit]Costs[edit]InstallationThe current cost of each hand-made 100 kW Bloom Energy Server is $700,000–800,000. In the next stage,which will likely be mass production of home-sized units, Sridhar hopes to more than halve the cost of eachhome sized Bloom server to under $3000.[8] Bloom estimates the size of a home sized server as 1 kilowatt,although cNet News reports critical estimates recommend 5 kW capacity for a residence.[20]The capital costs according to NewsWeek magazine is $7–8 per watt. [21]According to the New York Times (Green Blog), in early 2011 "... Bloom Energy ... unveiled a service toallow customers to buy the electricity generated by its fuel cells without incurring the capital costs ofpurchasing the six-figure devices.... Under the Bloom Electrons service, customers sign 10-year contractsto purchase the electricity generated by Bloom Energy Servers while the company retains ownership of thefuel cells and responsibility for their maintenance.... We’re able to tell customers, ‘You don’t have to putany money up front, you pay only for the electrons you use and it’s good for your pocketbook and good forplanet,’ [CEO K.R. Sridhar] said."[22]
  4. 4. [edit]UsageOn 24 February 2010, Sridhar told Todd Woody of The New York Times that his devices are makingelectricity for 8–10 cents/kWh using natural gas, which is cheaper than todays electricity prices in someparts of the United States, such as California.[23][24] Twenty percent of the Bloom Energy Server cost savingsdepend upon avoiding transfer losses that result from energy grid use. [20]Bloom Energy is developing Power Purchase Agreements to sell the electricity produced by the boxes,rather than selling the boxes themselves, in order to address customers fears about box maintenance,reliability and servicing costs.[19]Fifteen percent of the power at eBay is created with Bloom technology; after tax incentives that paid halfthe cost eBay expects "a three-year payback period" for the remaining half, based on Californias$0.14/kWh cost of commercial electricity. [25][edit]InstallationsThe company says that its first 100 kW Bloom Energy Servers were shipped to Google in July 2008.[26] Foursuch servers were installed at Googles headquarters in Mountain View, California, which was BloomEnergys first customer.[19] Another installation is for five boxes[1] to make up to 500 kWat eBay headquarters in San Jose, California.[19] Bloom Energy states that their customersinclude Staples (300 kW - December 2008),[27] Walmart (800 kW - January 2010),[28] FedEx (500 kW),[29] The Coca-Cola Company(500 kW)[30] and Bank of America (500 kW).[31][32] Each of these installations(current or planned) are located in California.[edit]Portable unitsWriting for a Wall Street Journal blog, Rebecca Smith and Jim Carlton speculated that portable BloomEnergy Servers could be used instead of traditional generators by the armed forces.[33] Sridhar plans toinstall Bloom Energy Servers in third world nations.[17] Ex-Chairman of the Joint Chiefs of Staff, ColinPowell, now a Bloom Energy board member, said the Bloom Energy generators could be useful to themilitary because they are lighter, more efficient, and generate less heat than what the military uses now. [34][edit]FeasibilityThe chemical reaction used to create energy in Bloom Energy productsAccording to BBC tech blogger Maggie Shiels, Bloom Energy is "being very coy and playful about what itwill reveal to the press."[35] She quotes Michael Kanellos of Greentech Media regarding the general scopeand feasibility of Bloom Energys plans: fuel cells are not new technology and in order to succeed in themarketplace the Bloom Energy Server would need to be cheaper than solar and wind. [35]If Bloom Energycan develop such a technology, Kanellos predicts that established energy firms such as GeneralElectric would derive most of the profits due to greater ability to manufacture and market a product.
  5. 5. [35] Jacob Grose, senior analyst at Lux Research, told Fortune Magazine that he doubts Dr. Sridhar hascome up with a way of making these ceramic fuel cells cheaply enough to be truly revolutionary. [11]Bloom Energy Server technology is based upon stacking small fuel cells which operate in concert. [7][15] USAToday claims that Bloom Energy has made a technological advance by developing stacked fuel cells whereindividual plates expand and contract at the same rate at high temperatures; [7] however, many other solidoxide fuel cell producers have solved the problem of different expansion rates of cells in the past. [9] ScottSamuelsen of the University of California, Irvine National Fuel Cell Research Center questions how longthe reliable operational life of Bloom Servers will be. "At this point, Bloom has excellent potential, but theyhave yet to demonstrate that theyve met the bars of reliability." [15]Lawrence Berkeley NationalLaboratory expert Michael Tucker told the San Jose Mercury News, "Because they operate at hightemperatures, they can accept other fuels like natural gas and methane, and thats an enormousadvantage... The disadvantage is that they can shatter as they are heating or cooling." [15]John Doerr, a venture capitalist, who has a large investment in the company, asserts that the BloomEnergy Server is cheaper and cleaner than the grid.[1][36] An expert at Gerson Lehrman Group wrote that,given todays electricity transmission losses of about 7% and utility-size gas-fired power stations efficiencyof 33-48%, the Bloom Energy Server is up to twice as efficient as a gas-fired power station. [2] In a followupstory entitled "Bloom Box: Segway or savior?" Fortune noted on 24 February 2010 that "Bloom has still notreleased numbers about how much the Bloom Box costs to operate per kilowatt hour" and estimates thatnatural gas rather than bio-gas will be the primary source of fuel for Bloom Energy Servers. [37] JonathanFahey of Forbes wrote:Are we really falling for this again? Every clean tech company on the planet says it can produce cleanenergy cheaply, yet not a single one can. Government subsidies or mandates keep the entire worldwideindustry afloat... Hand it to Bloom, the company has managed to tap into the hype machine like no otherclean tech company in memory."[38][edit]EfficiencyBloom claims a conversion efficiency from incoming fuel to usable electricity of around 50%. [39] Current gasfired power stations convert chemical energy to thermal energy to mechanical energy to electrical energy.A modern combined cycle gas turbine power plant (CCGT) can reach 60% overall efficiency. Sridhar saysBloom Boxes convert chemical energy to electrical energy in one step, and are more fuel efficient thancurrent gas-fired power stations and also reduce transmission/distribution losses by producing powerwhere it is used.[40]Each Bloom Energy Server provides 100 kW of power, enough to meet the baseload needs of 100 averagehomes or a small office building.[41]Sridhar also said the boxes will have a 10 year life span, [24] although that could include replacing the cellswithin the boxes during that time period. The CEO of eBay says Bloom Energy Servers have saved the
  6. 6. company $100,000 in electricity bills since they were installed in mid-2009, [8] yet Paul Keeganof Fortune calls that figure "meaningless without the details to see how he got there." [37][edit]Long term business caseAssuming a 50% cost reduction in the future, one could argue that the best case scenario for the 200 kWunit would be a capital (installed) cost comparable to todays 100 kW units, i.e., around $800,000. Usingaverage electricity ($0.10/kWh) and natural gas ($3/MMBtu) prices and assuming a 6% per yearmaintenance / operating cost apart from the fuel, the break even period for the device comes to over 8 [42]years, based on published performance numbers. Parameter Name Value Unit / descriptionFuel (natural gas) flow rate for 200 kW Bloom 1.32 MMBtu/hrEnergy ServerFuel energy in rate in kW (1 MMBTU/hr CH4 = 386.76 kW293 kW)Fuel cost $3.96 per hourElectric output rate 200 kW percent conversion of natural gas energy toSystem efficiency natural gas -> electricity 52% electrical energyElectricity cost $0.10 per kWhElectricity produced revenue $20.00 per hourCO2 produced 773 lb/MWhRun cost savings per bloom box (electricity $16.04 per hourrevenue less fuel cost)Cost savings per year assuming 24X7 full load $140,510.40 per yearoperation
  7. 7. Capital cost (estimated minimum cost after $800,000.00 for each 200 kW unitprojected reductions)Annual maintenance / operation cost 6% as a fraction of capital cost, per yearCost savings after maintenance costs $92,510.40 per yearBreak even period 8.6 yearsThese numbers mean that the total lifetime of these systems would need to exceed 15 - 20 years to makean argument for a viable long-term business case without federal / state / local incentives and subsidies.The analysis might be somewhat different if the systems are used mainly for peak (power) shaving whenelectricity costs can exceed $0.15/kWh, however the intermittent nature of such peak periods would likelyreduce the overall impact on the estimated break-even period using average cost figures for electricity andnatural gas. A reliable bio-derived source of fuel (bio-gas) would also tip the argument in a favorabledirection, however such sources are not typically located near customer sites. [citation needed][edit]CompetitionA Gerson Lehrman Group analyst wrote that GE dismantled its fuel cell group five years agoand Siemens have almost dismantled theirs.[2] United Technologies is the only largeconglomerate that hasfuel cell technology that could compete with Bloom Energy. [2] Toshiba only has technology to provideenergy for a small device, not a neighborhood.[2]Katie Fehrenbacher of Business Week reports that Sprint Nextel owns 15 patents on hydrogen fuel cellsand is using 250 fuel cells to provide backup power for its operations. [43]Sprint has been using fuel cellpower since 2005.[43] Last year Sprints fuel cell program received a grant of over $7 million from the UnitedStates Department of Energy.[43] The Sprint program has partnered with ReliOn and Altergy for fuel cellmanufacture, and with Air Products as a hydrogen supplier.[43] Business Week reported that a German fuelcell firm called P21, which is based in Munich, has been working on similar projects to supply backuppower for cellular operations.[43] United Technologies makes fuel cells costing $4,500 per kilowatt.In October 2009 the Department of Energy awarded nearly $25 million in grants for research anddevelopment of solar fuels, which Michael Kannelos notes in Wired may be similar technology to the solarcells in Sridhars description of the Bloom Energy Server. [10][44] Department of Energy grant recipientsincluded a variety of startup companies and universities. [44]According to an article in NewScientist, there is a claim stating the Bloom Box is "electrolyte-supported"and based on that, there are at least two well-established companies,Topsoe Fuel Cell[1] and Ceres
  8. 8. Power, already rolling out products with more advanced non-electrolyte-supported cells. Ceres has a four-year program to install 37,500 units in the homes of customers of the UKs British Gas. [45]Ballard Powers comparably scaled products are based on proton exchange membrane fuel cells. Ballards150 kW units are intended for mobile applications such as municipal buses, [46] while their larger 1 MWstationary systems are configured from banks of 11 kW building blocks.[47]Another competitor that already has product in-market in Europe and Australia is Ceramic Fuel Cells,[48] with an efficiency of 60% for the power-only units; these fuel cells are based on proven technology spunoff from Australias CSIRO.[edit]See also