Bloom Energy to unveil groundbreaking technology

A Californian company is claiming a breakthrough in the race to develop fuel cells that can produce affordable and relatively green electricity.  Silicon Valley start-up Bloom Energy will today unveil its solid oxide fuel cell, which is capable of powering a small office building.  The companyÔÇÖs technology gives users the ability to produce electricity as opposed to buying it from utilities. It also has the potential to extend electricity to parts of the world lacking traditional power systems and lines.  Bloom raised about $400 million from investors and spent nearly a decade developing the product.  The company is expected to announce today that 20 companies including Wal-Mart, Google, eBay, FedEx, Staples, Coca-Cola and Bank of America have bought its fuel cell boxes.  The commercial-scale boxes are about the size of a parking space and cost $700,000 to $800,000. However, the company expects to be able to also┬áoffer home models within 10 years that cost less than $3,000.  The fuel cells run off air and fuel such as natural gas, ethanol or biogas, which is fed into the cells. Oxygen ions then react with the fuel to produce electricityÔÇöand there's no burning, so the fuel cell is two-thirds cleaner than coal-fired plants, the company says.  Automakers have been working on developing fuel cells for vehicles for years, and a few companies also sell commercial systems; however, the main obstacle is still cost. Connecticut-based FuelCell Energy sold its first commercial system in 2003; however it still loses money on every unit it sells.  The need to use expensive precious metals like platinum and rare earth elements in some fuel cells, and corrosive materials in others, has kept costs high thus far.  However, Bloom's technology is cheaper and more efficient than those of its rivals thanks to technology that enables it to use low-cost materialsÔÇösand and ink.  EBay started using five Bloom boxes in July last year, which produce electricity to power space for 2,000 to 3,000 employees. The company made savings of $100,000 off its power bill as a result of using the boxes. EBay currently uses natural gas in the boxes but is due to switch to methane gas from an Oklahoma landfill this spring.  EBay expects the boxes to pay for themselves within three years, thanks to a 30 percent federal tax credit and a 20 percent subsidy from the state of California.  The company will unveil the technology today at a news conference attended by the governor of California, Arnold Schwarzenegger; and Colin Powell, the former secretary of state and a member of BloomÔÇÖs board.