At present, the world's largest application of hydrogen fuel cells is not for automobiles, but for fuel cell distributed combined heat and power (CHP) systems.
Fuel cell CHP systems is a production method that uses fuel cell power generation technology to supply both electrical and thermal energy to users. Using the waste heat generated during the operation of fuel cells to supply heat can improve the efficiency of energy utilization and also reduce the emission of carbon dioxide and other harmful gases. Fuel cell CHP systems mainly use proton exchange membrane fuel cells (PEMFC) and solid oxide fuel cells (SOFC) as power generation systems, with power generation efficiency up to 40%, waste heat utilization up to 40%, and comprehensive energy utilization rate over 80%.
China is in the initial stage of slow development in the segment of fuel cell CHP. At the policy level, distributed energy is being incorporated into hydrogen energy planning projects in more and more areas. At present, there are more than 100 policies supporting hydrogen energy industry in 24 provinces and cities, among which 37 policies mention hydrogen energy distributed energy. Although there are many policies related to combined heat and power supply, basically only "encourage the development" is mentioned, and there are few policies related to subsidies.
China fuel cell CHP subsidy policy table
Date | City | Policy | Related Information |
2021.12 | Weifang | Several Policies on Supporting the Development of Hydrogen Energy Industry | To participate in the construction of enterprises, residential communities each project in accordance with the installed capacity of CHP equipment based on 500 yuan / kW up to 2 million yuan of one-time incentive subsidies. |
2022.3 | Jiaxing | Several Policy Opinions on Accelerating the Promotion of Provincial Demonstration Sites for Hydrogen Fuel Cell Vehicles (Draft for Comments) | Support the construction of fuel cell distributed CHP demonstration projects, according to 20% of the equipment investment to give subsidies, up to 3 million yuan; from the completion of the project and put into operation, for three consecutive years according to the amount of electricity generated to give 0.1 yuan / kWh of financial subsidies, the maximum annual subsidy for a single project does not exceed 500,000 yuan. |
2021.6 | Jiaxing | Implementation Opinions of the Office of the Jiaxing Municipal People's Government on Accelerating the Development of Hydrogen Energy Industry | Support the construction of fuel cell distributed CHP demonstration projects. From the time the project is completed and put into operation, a financial subsidy of 0.1 yuan/kWh will be given for three consecutive years according to the amount of electricity generated, with the maximum annual subsidy for a single project not exceeding 500,000 yuan. |
2022.2 | Chengdu | Several Policy Measures to Support the High-Quality Development of Green and Low-Carbon Key Industries in Chengdu (Draft for Comments) | For the organization of distributed energy, CHP systems and other demonstration projects, according to the actual investment to give a maximum of 5 million yuan of one-time subsidies. |
China's Fuel Cell CHP projects
Compared with the progress of foreign countries that have implemented mass production, China's distributed fuel cell CHP system is still in the stage of R&D and engineering verification. According to the "China Hydrogen Energy Comprehensive Application Technology and Project Report" by ASIACHEM Consulting, the following table shows the fuel cell CHP projects in China.
China Typical Fuel Cell CHP Projects
City | Project Name | Fuel Cell Types | Project size(kW) | Comprehensive efficiency（%） | Device Source |
Jiangsu Zhangjiagang | Zhangjiagang Huaxia Technology Park Demonstration Project | PEMFC | 10 | Jiangsu Huade Hydrogen Technology Co., Ltd. | |
Beijing Daxing | Beijing Daxing Fuel Cell CHP Demonstration Project | PEMFC | 5 | 89 | Jiangsu Huade Hydrogen Technology Co., Ltd. |
Zhejiang Taizhou | Taizhou Dachen Island Hydrogen Utilization Demonstration Project | PEMFC | 150 | 95 | Henan Yuqing Power Co., Ltd. |
Sichuan Deyang | Dongfang Boiler Deyang Base Hydrogen Energy Demonstration Park | PEMFC | 100 | 90 | Dongfang Electric (Chengdu) Hydrogen Fuel Cell Technology Co., Ltd. |
Zhejiang Jiaxing | Jiaxing Red Boat Base "Zero Carbon" Smart Park | PEMFC | 20 | 90 | Nekson Power Technology Co.,Ltd. |
Shanghai | Shanghai Auto City Off-grid Hydrogen Energy Application Exhibition Hall | PEMFC | 5 | 80-90 | Shanghai Horizon Fuel Cell Technology Co., Ltd. |
Qinghai University | Kohodo PV to Hydrogen Production and Fuel Cell CHP System | Kohodo Hydrogen Energy Co., Ltd. | |||
Jiangsu Suzhou | Jiangsu University of Science and Technology | PEMFC | 5 | 89 | Jiangsu Huade Hydrogen Technology Co., Ltd. |
Guangdong Foshan | Zhongke Valley Hydrogen in Ten Thousand Homes Smart Energy Demonstration Community Project | PAFC&PEMFC | 2062 | 97 & 85 | Japan Aisin, Panasonic |
Shanghai | Hydrogen Cogeneration Demonstration System Integration and Building of Baowu Transportation Management Building | PEMFC | 1.4 | 97 | Panasonic |
Guizhou Guiyang | New Energy Industry Demonstration Base in Guiyang Economic Development Zone | PEMFC | 100 | 98 | Guizhou Hydrogen Efficiency Energy Technology Company |
Shandong | Shandong Province "Hydrogen in Ten Thousand Homes" Demonstration Project | SOFC | 30 | Weichai Power SOFC | |
Guangdong | R&D and application demonstration of high temperature fuel cell power generation system | SOFC | 100 | 91.2 | Guangdong Energy Group Science and Technology Research Institute Co., Ltd. |
In terms of scale, China's fuel cell CHP output ranges from 5-150kW, with 100kW specifications being the majority, corresponding to a hydrogen consumption rate in the range of 6.2-7.5 kg/h.
From the viewpoint of technology route, PEMFC is mainly used in China, and gradually approaching SOFC, which is in line with the current fuel cell technology level in China.
From the viewpoint of application scenarios, the domestic fuel cell combined heat and power supply scenarios mainly include the large-scale centralized domestic demonstration scenario represented by "hydrogen in ten thousand homes", the off-grid application scenario represented by "hydrogen utilization demonstration project in Dachen Island, Taizhou". There is also the application scenario of technology development in the industrial park represented by "Zhangjiagang Huaxia Science and Technology Park Demonstration Project".
In terms of the scale of the project, the "hydrogen in ten thousand homes" smart energy demonstration community project of Zhongke Valley in Guangdong Province is over 2MW, which is the largest in China.
Challenges for fuel cell CHP systems
1) Technical issues
Since the China fuel cell applications are mainly for automotive use, the design of CHP stacks cannot be copied from the automotive experience for the following reasons.
(1) Differences in working conditions. Operating conditions are complex in car using condition, so the response performance requirements are high, while the power change of CHP is relatively slow.
(2) Life expectancy differences. CHP equipment can be used up to 8000 hours a year, according to the 10-year depreciation cycle is 80,000 hours, the current life of the vehicle power stack is about 10,000 hours.
(3) Thermal management differences. The main requirement of the vehicle power stack is heat dissipation, while the combined heat and power supply requires the full use of thermal energy.
(4) Control logic differences. Cogeneration needs to consider the balance of thermoelectric output, while the vehicle considers electrical control.
Therefore, the design of CHP stack, including electrode runner, corrosion resistance, catalyst anti-poisoning, PEM selection, and even structural design are changed compared to automotive. The difference in design leads to the difference in process, which in turn leads to the lack of talents. Therefore, companies that cooperate with foreign countries or have a background in thermoelectric power plants will have certain advantages.
In addition, fuel cell cogeneration products for home use need to further improve the level of intelligence and be closer to the user's daily use habits.
2) Cost issues
Unlike Japan, where fuel cell CHP products are already affordable, the operating cost of domestic fuel cell CHP is much higher than traditional methods, and considering the high acquisition cost, the market competitiveness of fuel cell CHP products is insufficient. Under the further promotion and implementation of carbon tax, corporate customers, especially cement, chemical and other high energy consumption enterprises, will be much more willing to use fuel cell CHP equipment. If the domestic fuel cell CHP can reach more than 200MW in 2025, the cost is expected to drop by half, and with the carbon tax and other measures, the market prospect of cogeneration will gradually open up.
