FuelCell Energy reported Results and Accomplishments for their first quarter of 2006, the period ending January 31, 2006. Highlights were:
- Selected, with PPL, for 4 megawatt project in Connecticut
- Sited first 1 megawatt DFC installation in Japan for Sharp Corp.
- Targeted design cost for 2 MW plant approaches market clearing price
- Increased manufacturing production to 9 megawatts
- Selected by Department of Energy for $85 million coal-based multi-megawatt solid oxide fuel cell project
Commenting on the third item the report said:
Top priorities are continued reduction of the initial and life-cycle costs of the Company's products, and extending stack life from the current three years (24,000 hours) to five years (40,000 hours). To achieve profitability, product costs need to be in a range of $2,000 to $4,000 per kilowatt, depending on local electricity rates and fuel prices. Current design costs are now approximately $4,300 per kilowatt for the 1 megawatt product and $4,600 per kilowatt for the sub-megawatt product.
Extending FuelCell Energy's value engineering initiatives to the multi-megawatt DFC3000 power plant, the Company anticipates reducing the cost of this product to between $3,200 and $3,500 per kilowatt by the end of 2006, and below $3,000 per kilowatt with increased volume. This should be the Company's first product to show positive margins.
Further commentary can be found in the complete report which can be found here.
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The Energy Blog: FuelCell Energies First Quarter Report
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