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Is Bloom Energy’s Fuel Cell Miracle For Real?

By | February 20th, 2010 157 Comments

UPDATE 3: click here to read our thoughts on the hype – even if Bloom isn’t all it’s cracked up to be, they’ve set something good in motion

UPDATE 2: click here to read our breaking report from Wednesday’s standing room only press briefing on the Bloom Box

UPDATE: We’re still short on the real details (stay tuned till Wednesday to find those out), but scroll down to the bottom to watch the 60 minutes clip which gives a decent introduction. Leave a comment if there’s something specific you want asked.

The interwebs are aflutter with excitement over Bloom Energy’s top secret “Bloom Box” fuel cell system finally revealing itself. For those who haven’t already checked it out (the website is still just a marquee), the company boasts that their systems could literally replace the electricity grid with dispersed, clean, and easy to maintain fuel cell boxes running on a variety of fuels, water, and oxygen, with no combustion at all. Sound like hype? Their PR team has certainly been working in overdrive…

The scoop has been leaking for a day now on the CBS website, and on others including Fortune and GreenTechMedia. However, Sunday night will be your first chance to hear real details about the Bloom Box when 60 Minutes airs a segment that with either knock your socks off, raise a lot of eyebrows, or both.

Bloom has already listed almost two dozen large companies who have been stealth testers of the mysterious device including eBay, who claim to have already saved $100,000 and such perennial sustainability favorites as Google and WalMart.

Exactly how it works is among the surprises we’re supposed to get on Sunday. (edit – looks like we’re waiting till Wednesday) Hank Green suggests that the device could be installed in homes, generating both electricity and heat, which would result in big efficiency gains. Commenters on Reddit point out that the real savings may lie in avoiding transmission and maintenance costs with a machine that’s much simpler to handle than a full fledged power plant. Although the boxes cost a lot (up to $800K), the amount of power they allegedly put out more than makes up for it.

Why is this a big deal? How do they differ from existing fuel cell backup systems already in place? Has the internet been duped by one of the more successful publicity campaigns in recent memory? It’s all TBA in the next few days…

Check out 60 Minutes on Sunday night for the sneak preview, then leave your questions here. On Wednesday morning, 3p’s Jim Witkin will attend the official unveiling in San Jose along with General Colin Powell, Arnold Schwarzenegger, big shots from Kleiner Perkins and more. We’ll be able to ask some key questions and will publish the juicy details as soon as we’ve got ‘em.



Watch CBS News Videos Online

▼▼▼      157 Comments     ▼▼▼

  • manoa2

    I just saw the 60 minutes piece.

    For the skeptics– there are now major beta testers/customers– google, Ebay, and Walmart.

    Ebay was big on rooftop photovoltaics, but they point out that a few of the boxes produce 5x as much electricity for Ebay as the acres of PV's they have. This has commercial application.

    • PrahaPartizan

      We'll see just how much Ebay likes 'em when they burn down one of their server farms. None of this stuff is terribly new, just newly hyped.

  • Laura

    One of the companies that has installed Bloom Technology reports saving $100K in 9 months. What fraction of their overall energy usage (or for the unit where Bloom is used) does this represent? Many large companies have PG&E bills that are more than $100-200K/month. In this scenario, $100K in 9 months really isn't much more than what you can save by trimming use by turning down the lights at night etc.

    Not all that remarkable….

    • Beaker

      Not sure what eBays enery costs are but lets say they are 150,000 dollars per month. Thats approx 7% electricity saving over the course of a year (I think!). Not great given that the unit costs 800,000 dollars. Multiply that by 5 and their installation is 4 million (not sure what tax breaks there are) but lets say 30% its still 2.8 million. you are looking at about a 22-23 year payback (taking into consideration maintenance.) Again I don't know the figures for Ebays energy costs but it would be interesting to see the breakdown of savings Vs. investment.

    • salubrius

      That is useful only if you know that Bloom Technology made a profit or broke even on the sale to the company. Other fuel cell companies have been selling at a loss until the volume was great enough to reduce the cost to a point where they can be sold margin positive.

  • Noel

    Yet Obama is promoting Nuclear energy rather than something like this; something isn't fitting together here. What about waste product?

  • Tank

    I work in the Power Industry and I see Bloom coming out with a great product. Right now the people most likely to use this are those who already are such as google and ebay with baseload needs. In New England, retail rate is near $.15/kwh. If you mortgage the $700k box for 10 years plus fuel, you are looking at .10-.11 cents /kWh. Saving money from day one. Add in capacity credits and other incentives and its looking very juicy. And dont worry about skyrocketing nat gas prices. This would replace generation on the grid using half the nat gas.

  • branchwater

    Lots of publicity in the past few days surrounding the Bloom Box Energy Server, a modular electricity source that is (presumably) a natural gas powered Solid Oxide Fuel Cell system. Bloom Energy has lined up an impressive roster of demonstration projects and high visibility supporters, and their CEO paints an attractive vision of a small energy future.

    Perhaps Bloom Energy really has made life-changing breakthroughs in the efficiency, cost or longevity of SOFC technologies, but there doesn’t seem to be enough data or real world experience to sort the Bloom Box reality from the hype. In any case, there’s a lot of SOFC info and many more SOFC related companies out there.

    More details here …
    http://rcbrothers1.wordpress.com/2010/02/25/ele

    Lots of publicity in the past few days surrounding the Bloom Box Energy Server, a modular electricity source that is (presumably) a natural gas powered Solid Oxide Fuel Cell system. Bloom Energy has lined up an impressive roster of demonstration projects and high visibility supporters, and their CEO paints an attractive vision of a small energy future.

    Perhaps Bloom Energy really has made life-changing breakthroughs in the efficiency, cost or longevity of SOFC technologies, but there doesn’t seem to be enough data or real world experience to sort the Bloom Box reality from the hype. In any case, there’s a lot of SOFC info and many more SOFC related companies out there.

    More details here …
    http://rcbrothers1.wordpress.com/2010/02/25/ele

  • garrygolden

    Recent posts where I highlight disruptive market elements of chemical fuels and distributed power generation:

    Bloom Box and the Very Disruptive Future of Distributed Energy [Video]
    http://www.garrygolden.net/2010/02/23/bloom-ene

    Why Personal Power Systems Might be the Biggest Story in the Future of Energy
    http://www.garrygolden.net/2010/02/21/future-of

    Bloom Energy CEO Interview explains 101 of Fuel cells as Bridge and Destination
    http://www.garrygolden.net/2010/02/25/bloom-ene

    Garry G
    Brooklyn, NY

  • http://www.facebook.com/people/Paul-Richard-Thorsnes/523845469 Paul Richard Thorsnes

    How exactly does this work? Hydrogen fuel cells in cars fuel a combustion engine. Nuclear power plants runs steam engines to propel electric generators. Does this technology produce electricity without any secondary machinery?

    • salubrius

      Fuel cells need some auxiliary plant. For example, for stationary fuel cell that are to be connected to he grid, the fuel cell output is DC so it has to be inverted to AC. That reduces the efficiency by perhaps 13%.

  • branchwater

    The true fuel cell reaction is between hydrogen and oxygen, producing water and electrons (which are drawn off via conductors as electric current).

    The Bloom Box (and many other fuel cell technolgies) produce their own hydrogen by breaking down a hydrocarbon (such as natural gas, methanol, etc). Commercial hydrogen – the kind you would use to fuel your hydrogen car – is made in HUGE amounts today for refineries and chemical processing by breaking down a fossil fuel (natural gas, coal, oil or coke), or in the conceptual future, bio-mass. In all such cases, the carbon portion of the starting material ends up as CO2 – a problem.

    Hydrogen is also easily – but not cheaply – made in the lab with nothing more than electricity and water. If we're committed to a non-fossil fuel future, and we're willing to pay the extra price, we could – again in that hypothetical future, build a hydrogen economy based on electricity derived not from fossil fuels but from nuclear, solar and wind.

    • salubrius

      CO2 is not a problem unless you have been conned into believing global warming. What is a problem is toxic pollution. Fuel cells will practically eliminate that because they operate at lower temperature than the temperature of combustion. Even if you believe in global warming, fuel cells will reduce the CO2 by 50% per kWh because they are twice as efficient as conventional generation when measured at the customers meter after the I squared R losses are factored in.

  • http://www.bloomdaily.com/ Bud Smith

    Lots going on here, but the real story, I think, is the potential for the Bloom Box to serve as fairly efficient storage for excess power from renewables such as wind and solar. This could make renewables, currently plagued by intermittency, “baseload”, and eliminate much of the rationale for continuing to burn coal in particular.

  • http://www.bloomdaily.com/ Bud Smith

    I meant to say intermittent renewables can become baseload sources if the Bloom Box works as promised. They have to plumb the boxes this way, and tests need to be done on efficiency, to assess the possibilities. http://www.bloomdaily.com

    > Lots going on here, but the real story, I think, is the potential for the Bloom Box to serve as fairly efficient storage for excess power from renewables such as wind and solar. This could make renewables, currently plagued by intermittency, “baseload”, and eliminate much of the rationale for continuing to burn coal in particular.

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  • Poco

    Anyone wonder what the cost of natural gas will go to if these type devices become readily available? And that $3k price for a 1kW home set sounds good, but you aren't running an A/C, washer-dryer, dishwasher, and all the electronics the typical home has off of that small a unit.

    • branchwater

      I've read the typical US household uses something like 2-3kW avg rate, maybe 10kW peak rate – my wife's hair dryer is something over a half kW – so a self-sufficient house will require maybe 10 of the modules. Then (even if the bare module price really is only $3000/kW) expect another $3000-4000 per kW for installation, inverters and wiring.
      At this point, your installed cost is way higher than for a similar size rooftop solar PV – and you will still have a sizable natural gas bill, on top of the costs of replacing the BloomBox modules @ ca 5 year intervals.
      http://www.market-intel.com

      • salubrius

        The average home peak load is 10 kW. I think Bloom meant $3,000 for 10 kW as others are in that ball park.

  • ric

    i think this is an alien technology,thats been revealed,roswell..

  • Patrick Lee

    Anytime there is a so-called technological miracle, just follow the money. Average people will still get the shaft. It would be a miracle if you could provide nearly free energy…but by the time this product gets to market end users(individuals, famililes) probably not save much. Anyway all this “miracle” remains to be seen.

  • HMITO

    I`ll be waiting for first real efficient bloombox making 1kw per $ 0.12

  • Paul

    No one has answered the MOST IMPORTANT QUESTION:
    THE BLOOM BOX RECEIVES INPUTS OF OXYGEN (FROM AIR) AND HYDROGEN (FROM BIO-FUEL OR NATURAL GAS, BOTH OF WHICH CONTAIN CARBON (NATURAL GAS IS CH4))
    THE OXYGEN AND HYDROGEN COMBINE, WHICH PRODUCES HEAT, WATER AND ELECTRICITY – GREAT! NOW WILL SOMEONE PLEASE TELL ME WHAT HAPPENS TO THE CARBON!!??

    • http://www.bloomdaily.com/ Bud Smith

      Hi Paul,
      I've seen this discussed. There definitely IS CO2 output.
      So why is this a big deal? Several reasons:
      – It's easy. You already have natural gas coming in. Creating electricity with it onsite is convenient.
      – It's quite efficient. It generates about one-third less CO2 than burning natural gas in a natural gas power plant. It generates less than half the CO2 of burning coal in a coal power plant. Also, with any outside power plant, you have transmission losses. So, this is a big win.
      – If there's a source of biogas nearby, you can bring that in, and it's carbon neutral (carbon was absorbed to make the biostuff, it's released when you burn it, net 0 emissions). This is directly burning green fuel.
      – If there's a source of biogas far away, put it in with the natural gas already in the system, and the Bloom customer contracts to pay specifically for the biogas. Then you're indirectly burning green fuel (economically, though actually you're burning the same mixed fuel as all others).
      – It burns hydrogen. If you get a source of hydrogen nearby, such as solar power being used to “crack” water, then this is a very efficient and relatively cheap hydrogen-to-electricity plant.
      – And, eventually – the “killer app”, as the CEO put it – this can be plumbed differently, then TAKE IN solar-generated electricity that isn't needed at the moment, CREATE hydrogen from water, STORE it, and BURN it after the sun goes down. Even if this is only 50% efficient each way – 25% efficient net – it's still much better than getting nothing from your extra solar-generated electricity.
      See http://www.bloomdaily.com for more.
      Cheers, Bud

  • http://youtube.com/ MrPanetela

    Innovation: Bloom didn't start a fuel-cell revolution
    15:55 26 February 2010 by Colin Barras
    http://www.newscientist.com/article/dn18584-inn

    is that all there is to fuel cells? a piece of silicon possessing a positive and negative sides? What is the definitive book about fuel cells at the present time. I really like to understand this subject more in depth.

  • LOU SISBARRO

    FOLKS,I SEE AND READ YOUR THOUGHTS ON THIS SITE; AND HEAR
    1. OH IT'S TO GOOD TO BE TRUE WELL MY GRANDMOTHER USE TO SAY THEY WILL NEVER GO TO THE MOOD WELL IT BECAME A PRIORITY AND WE DID
    ….Are you listening?
    HOW IN GOOD CONSCIENCE CAN YOU STICK YOUR HEAD IN THE SAND AND NOT SEE AND FEEL
    THE CONTROL OF ADVANCEMENTS IN ENERGY BY THE ENERGY POWER CORPORATIONS
    IN THE EVERY DAY THEFT OF MONIES …HOME HEATING, FUEL FOR YOUR CAR, COAST OF
    TRANSPORTATION FOR THE COMMODITIES YOU USE EVERY DAY.ECT, ECT,ECT,ECT!
    DON'T FALL INTO THE TRAP THAT THE ENERGY COPRS. DON'T HAVE GOOD REASONABLE SOURCES .
    IF WE COULD GO TO THE MOON WE CAN FINE AND USE ALTERNATIVE ENERGY SOURCES
    WAKE UP THE FUEL INDUSTRY LOVES TO HEAR YOU COMPLAIN AND HAVE A DO NOTHING
    ATTITUDE! KEEP THE FUEL CORPS. RICH ,HAPPY, AND IN CONTROL.
    OF COURSE CONGRESS MUST HAVE THE WARMEST HAND IN THE NATION, SEEMS AS THOUGH
    KEEPING THEM UNDER THERE BOTTOMS HAS PRODUCED THE BIGGEST DISGRACE! THE U.S.GOVT. HAS HAD.
    WAKE UP FOLKS THE ENERGY IS A CONTRIVED PROBLEM TO KEEP PRICES HIGH.

  • RADCleanEnergy

    There are many benefits to Bloom's solid oxide fuel cell technology if it succeeds. The distributed nature of the device could help foster adoption of electric vehicles since it could help offload some of the stress on the national grid.

    http://www.notpetroleum.com/2010/02/27/bloom-energy-an...

    Bloom's energy server can also help reduce the amount of fresh water used to generate electricity at centralized coal-fired plants especially for arid climates such as in the southwestern US.

    http://www.drywelljournal.com/2010/03/06/bloom-energy-...

    I think it is important that we look at the big picture of the value of technologies such as this instead of just focusing on whether its claims of GHG reduction are accurate.

  • http://www.runawayclimatechange.com/ Bud Smith

    RADCleanEnergy,

    Bloom is absolutely dependent on subsidies related to GHG reductions, goodwill related to GHG reductions, and changes in the electric grid related to GHG reductions, so its claims of GHG reduction are crucial. Reduction in water use is an important element, as you say, and will only become more so.

    Cheers,

    Bud

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  • Jim GIglio

    The “Bloom Box” is a hoax. The thing that gives it away is the claim that it can use fuels like natural gas to produce electricity, as well as solar energy. The device cannot be a fuel cell AND a solar collector at the same time. Colin Powell and other high-profile supporters of the device (AND the investors) are going to have egg on their faces once they find out that this emperor is naked.

    jcgiglio@yahoo.com

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  • http://www.edhardyau.com/ Ed hardy

    I found your website about a month ago and check it several times a day. It is by far one of the funniest sites that I have come across.

  • http://www.abercrombiefitchonline.org Abercrombie And Fitch

    I found your website about a month ago and check it several times a day. It is by far one of the funniest sites that I have come across.

  • http://www.vogueshoponline.org Ed hardy

    I found your website about a month ago and check it several times a day. It is by far one of the funniest sites that I have come across.

  • art

    if it works prove it… Take a home put one of the units measure the amout of fuel going into the unit and see if it powers the home… Put up or shut up…

  • http://hubpages.com/hub/Expanding-Foam-Insulation-Guide KeithTax

    I pray this works the way the hype says it will and at a cost anyone can afford.

  • Ade845

    Can you imagine the export potential of bloom box if it works? It will transform lives in developing countries overnight; just as cell phone did. It will increase productivity in countries like Nigeria where power supply is very unstable or none existent. This could be one of the ways to reduce the nations trade deficit. That is if the company does not move to China or Taiwan!!!!

  • jsm

    There’s a lot of comments that wonder about it “working.” SOFC technology certainly does work. However, if you really dig deep into Bloom’s literature, you will see that they are predicting about a 60% or perhaps a bit more conversion rate of the energy in the source fuel to electric energy. This is actually pretty good. It has great benefits for quiet, safe, and distributed energy generation. This would free up the electic grid and provide a means to deploy electric vehicles without massive infrastructure change should we suddenly find ourselves without foreign oil products.

    What is plainly missing in all the marketing is that this is not a “green energy source.” Instead it is an efficient means of converting natural gas (a non-renewable, non-green, fossil fuel) into electricity. Perhaps even more absent is that combined cycle gas turbines that are utilized by utilities and others on an industrial scale can also convert energy at the same efficiency of 60%.

    It is great technology to “allow” utilities to get out of the electricity producing business (as well as alleviate them from Transmission and Distribution infrastructure improvements) but it is in no way going to “save the planet.” It is only very marginally more green than current utility grade turbine technology.

    So it’s real, but not a miracle.

  • http://www.solarenergysystems.com Joseph

    In reading Update 3, I can say it is definitely not all it was cracked up to be in the beginning, but for a surety Bloom is heading in the right direction and set to make some good progress.

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  • http://bloomboxfuelcell.ORG gilbert Ryan

    simply, a game changer as far as delivering energy is concerned. Will the company meet all the said promises? the jury is still on that.

    But I give A- for a good PR campaign!

  • http://www.facebook.com/people/Gary-R-Reed/1421366833 Gary R. Reed

    Cold fusion anyone? Fuel injection system that can achieve 200 mpg? How about hydrogen fuel cells that produce their own power from water? All supposed to be here by now and all frauds. Not saying this is, what I am saying is once burned, twice wary. I hope this is real but I’ll wait and see.

  • http://EnvironmentalHealthSpecialist Bernard Robinson

    This is remarkaable and all I want to know is how can I invest in this company Bloom Energy because I believe this is the answer to alot of the worlds dependence on fuels that has posionous emissions.

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  • http://simlehealthtoday.com/getmyhomeoffthegrid bemorphy

    Says CA will be running it soon, so it must be real, right?

  • DickTriller

    What happened to this company, product? Is it viable technology or did it go the way of the wheel. Everyone has one.

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