May 28th  2002

Cooperation on Norwegian fuel cell development 

Source:Rolleiv Solholm 

A project team from the three companies will perform a pilot study to explore the potential of fuel cell technology more closely. Some of the advantages of this technology will be reduced CO2 emissions and high-energy efficiency, combined with more environment-friendly production of electricity on the mainland, offshore, and in the transport sector. 

In order to develop large fuel cells (10-20 megawatts) before 2010, investments must be made in the region of one billion kroner. The pilot study will show whether there exists a technical and commercial basis to continue the venture. 

Shell: In profit before 2010.  “We are very pleased that other people are recognising the potential in the new fuel cell technology. Together with Aker Kvaerner and Statkraft we will explore how the technology can be commercially useful. We hope to help seed a growing market for fuel cells, so that the costs of building these types of plant are reduced. Still, this is not enough to bring the fuel cell technology into profit. In order to build a multi-megawatt fuel cell plant before 2010 we can say, even at this stage, that government support will be vital,” declares project leader Helge Skjæveland in Shell Technology Norway. 

Aker Kvaerner: Exciting development work.  Aker Kvaerner is one of the world’s leading suppliers of advanced products and services to the petroleum industry. Aker Kvaerner will be a key technology partner through the development, testing and fabrication of complete fuel cell plants. The two most crucial roles will be as system integrator and system supplier.

“Aker Kvaerner has a long tradition of development and application of new technology,” says Oscar Fr. Graff, head of Gas Technology in Aker Kvaerner. “It is vital that we take part in the commercialisation of new solutions to make sure of our supply role to a future market. Power plants based on fuel cells have a huge market potential and the return generated in Aker Kvaerner can be in the region of 50 to 75%, depending on choice of technology and size of plant. Co-operation with two central operators makes this development especially exciting,” says Graff.

New Norwegian jobs. The partners will develop Norwegian technology in connection with fuel cells and thereby create new Norwegian jobs. Around 50 per cent of costs of a fuel cell are expected to come in mechanical engineering.

Statkraft is Europe’s second-largest producer of pure energy and will bring to the project its experience in the power business. The company will also play a key role in assessing the applications of fuel cells for power production on the mainland and possibly on disused offshore platforms. 

Statkraft: Enormous environmental potential. “The days of the mighty hydro power developments are over in Norway. That is why we are looking for other environment-friendly energy solutions where our experience and competence can be tapped. The fuel cell technology we are now about to explore has an enormous potential both at home and internationally,” says Per Øyvind Hjerpaasen, who is head of Statkraft’s research and development office.

Bellona joins advisory board.  Environmentalists Bellona have been a very active partner in the early phase of the idea to form a venture constellation consisting of Norske Shell, Aker Kvaerner and Statkraft. Bellona will in future play a key-supporting role though an advisory board to be established in connection with the new partnership. 

Fuel cells convert chemical energy, as found, for example, in natural gas, into electricity and heat. 

Oxygen ions are transported through an electrolyte releasing electrons, which form an electric current. The oxygen reacts with the fuel forming water and carbon dioxide. In the process heat is generated as well as the electricity. The heat can be used for heating purposes.

This type of fuel cell has an efficiency of about 50 per cent. By exploiting the waste heat the coefficient can be increased to more than 80 per cent. Simultaneously, work is being done to examine turbine solutions which, in combination with fuel cells, can result in an efficiency approaching 70 per cent. Shell’s unique concept, developed in consultation with Siemens Westinghouse, consists of an arrestor system and an afterburner. The result is pure CO2 without significant loss of efficiency and more electricity produced – the electrical efficiency increases by as much as 5 per cent.

The largest plants in the world today are a few hundred kilowatts each. To develop the technology to a useful level of output (10-20MW), the costs have to be cut. Moreover, the units must be effectively integrated so as to reduce weight and volume. The reduction in costs will be achieved principally by mass production techniques.

Research and development in this field has come a long way and we now have a unique window for Norwegian green technology with a potential in the world market.