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Is Fuel Cell Technology the Future of Power Generation?
Is Fuel Cell Technology the Future of Power Generation?

February 10, 2025

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A fuel cell is a device that converts chemical energy from Hydrogen into electricity through a chemical reaction with oxygen or another oxidizing agent.


A fuel cell is a device that converts chemical energy from Hydrogen into electricity through a chemical reaction with oxygen or another oxidizing agent. The most common fuel used in fuel cells is hydrogen. Unlike batteries, which store energy, fuel cells generate electricity as long as they are supplied with Hydrogen. They are considered a clean and efficient energy source and are used in a variety of applications, including powering vehicles, providing electricity in remote locations, and even as backup power sources for buildings.

How does it work?

Inside the fuel cell, hydrogen molecules are split into protons and electrons. The protons pass through a membrane, while the electrons are forced to travel through an external circuit, creating an electric current. The protons and electrons combine with oxygen on the other side of the membrane to form water and release heat.

Brief overview of various types of fuel cells


How expensive is fuel cell technology?

 

The cost of fuel cell technology can be substantial, particularly for large-scale applications. For instance, a 250 KW fuel cell unit costs approximately USD 3,800 per KW, totaling USD 950,000 (around INR 8 crore) for the entire unit. Additionally, hydrogen fuel, priced at INR 320 per kilogram, would cost approximately INR 64,000 daily, assuming a consumption rate of 200 kilograms per day, excluding transportation expenses.

Over time, operational costs can add up, as fuel cells need replacement after approximately 15,000 hours of use. Many vendors incorporate these replacement costs into their Annual Maintenance Contracts (AMC), helping to manage long-term expenses.

Benefits of Fuel Cell Technology


There are challenges too, but global efforts are underway to overcome them


Real-World Adoption of Fuel Cell Vehicles (FCVs)

 

Fuel cell technology is gaining traction globally, with several regions setting ambitious targets for adoption:


Future of Fuel Cell Technology in India

 

India is making significant strides in adopting hydrogen fuel cell technology. The introduction of hydrogen-fueled locomotives is a notable milestone, with services expected to begin between Jind and Sonipat in Haryana by December 2024. A hydrogen fuel station with a capacity of 3 tons, including compressors and dispensers, is being developed in Jind to facilitate easy refueling. 

Additionally, plans are underway to roll out 35 hydrogen-powered trains in the coming years, with each train costing approximately INR 80 crore and additional infrastructure costs of INR 70 crore per train. This will make India the fifth country in the world to have hydrogen trains.

Another promising application is in coal-fired engines for captive power generation at Raichur Thermal Plants, moving India towards a greener future. Licenses have been issued to major companies such as Adani, NTPC, Reliance, and L&T to establish hydrogen generation units in bulk for export to Europe and other countries, with a gradual shift towards domestic consumption.

To achieve 100% carbon-free conditions and green energy, hydrogen generation is being powered by solar energy for fuel cell operations. This holistic approach is aimed at creating a sustainable and eco-friendly energy landscape in India.

About the Authors: 

Umesh Babu, Senior Vice President | Project Management, Colliers


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