BOARD MEETING DATE: August 8, 1997 AGENDA NO. 3


Proposal:

Execute Contract to Cost-Share Development and Demonstration of a Fuel Cell Turbocharger to Enhance Performance

Synopsis:

Fuel cells are extremely low-emitting electrochemical engines that are an important technological element of the AQMP. Fuel cells for vehicle applications operate more efficiently at higher inlet air pressures, but the current lack of low-cost, high-efficiency air compression is an impediment to wide-scale commercialization. In response to competitive solicitations from ARB and AQMD, Meruit, Inc. has proposed development, testing, and demonstration of a prototype gas bearing turbocompressor that will be designed specifically for fuel cell air compression. The total cost of the project is approximately $300,000, of which $68,000 has been requested from AQMD. ARB will provide equivalent funding, receive AQMD funds as the pass-through agency, and contract with Meruit, Inc. for the project.

Committee:

Technology, July 25, 1997. Chair Leonard Paulitz communicated his concurrence with the staff recommendation.

Recommended Action:

Authorize the Chairman to execute an agreement with the ARB in an amount not to exceed $68,000 to cost-share development and demonstration of a Radial and Thrust Gas Bearing for Fuel Cell Turbocharger.

Barry R. Wallerstein, D.Env.
Interim Executive Officer


Background

The AQMP anticipates the commercialization and rapid deployment of ZEVs and "equivalent" ZEVs (EZEVs) over the next decade. Battery-electric ZEVs such as the General Motors EV1 are now becoming commercially available. Fuel cells are emerging as a leading alternative technology to power ZEVs and EZEVs. These ultra-clean electrochemical engines can provide excellent performance and range along with fast refueling for vehicles, and have potential to work in virtually every mobile and stationary application currently powered by internal combustion engines. Consequently, AQMD’s technology advancement program has been a world leader in supporting development and demonstration of fuel cell technologies.

Additional development is needed to improve and demonstrate the ultimate commercial viability of fuel cells, including improvements in power density, systems efficiency and integration, fuel storage, fuel processing, and cost reduction. Fuel cells for vehicle applications operate at their highest power density and efficiency when the cathode air stream is pressurized to approximately 30 psig, but current air-compression systems are energy intensive and add undesirable system complexities. Typically, today’s fuel cell systems use either a parasitic, electrically driven air compressor or must be designed for reduced power densities (i.e., larger, heavier fuel cell stacks). Thus, a significant impediment to wide-scale commercialization of fuel cell vehicles is the lack of suitable low-cost, high-efficiency air compression systems.

Proposal

In response to an RFP issued by ARB and a Program Opportunity Notice issued by AQMD, Meruit, Inc. submitted a proposal to develop and demonstrate a prototype gas bearing turbocompressor designed specifically for fuel cell air compression. This innovative technology is based on an efficient leafless gas bearing for high speed turbo-machinery using Meruit’s Radial and Thrust Gas Bearing (RTGB) design. It is expected that this technology could provide efficient air compression for both the fuel cell stack and its fuel reformer, if one is present. Meruit commercially designs and produces turbomachinery, and has built and tested at its own expense a very successful radial gas bearing. Meruit now seeks to manufacture and test a gas thrust bearing integrated with its radial bearing technology, resulting in a fuel cell turbocharger that would recover fuel cell exhaust flows, providing efficient air compression without oil contamination of the fuel cell air supply.

Meruit has proposed that AQMD and ARB cost-share this project, each in the amount of $68,000. It is anticipated that ARB will contract with Meruit for the amount of $136,000 and pass through AQMD’s cost share in a joint agency agreement.

The proposed project would be performed in three tasks over a 15-month period. In the first task, the radial bearing and the thrust bearing will be integrated and tested on a single shaft. If testing proves successful in the first task, a RTGB turbocompressor will be designed, built and tested, preferably on an existing proton exchange membrane fuel cell in conjunction with an Original Equipment Manufacturer (OEM) or a systems integrator.

The technology in this project is identified in the October 1996 Update of the Technology Advancement Plan for the Clean Fuels Program under Proposed Project M3-1, Development and Demonstration of Fuel Cell Technologies for On- and Off-Road Vehicle Applications. Demonstration of a new type of turbocompressor for fuel cells could contribute to accelerated wide-scale deployment of zero-emission fuel cell vehicles in the South Coast Air Basin. The proposed project could also lead to significant fuel economy improvements in fuel cell vehicle applications. In addition to air pollution reduction benefits, the project could also help create a new manufacturing opportunity and therefore create high-technology jobs.

Sole Source Justification

Section II, Step 3(C) of the Consultant Selection Policy and Procedure identifies four provisions under which a sole-source award may be justified: 1) cost to prepare documents exceeds cost for consultant; 2) delay would result in the endangerment of public health; 3) services are only available from sole source; and 4) other circumstances exist identifying sole source as in the best interests of the AQMD. This request for sole-source award is made under provision #4 as in the best interest of the AQMD, as described below, since the proposed contract is to develop an enabling technology for fuel cells; joins with the ARB in a competitively selected project; and leverages AQMD funds with significant cost-sharing.

Improved air compression for fuel cell vehicles has been identified by AQMD, ARB, and the U.S. DOE as a critical technological need to help expedite commercialization. The proposed contractor and its technology were selected through a full competitive bid process administered by the ARB, in cooperation with AQMD staff, who received a similar proposal under the most recent Program Opportunity Notice solicitation. The proposed project will be technically and fiscally unique, and represents a fairly low-risk opportunity for AQMD to help advance fuel cell commercialization. Meruit, Inc. is a small business located in Santa Monica.

Resource Impacts

The total project cost is estimated to be $304,660. The AQMD’s cost-share of $68,000 will be passed through the ARB to Meruit, Inc. Sufficient funds are available in the FY 1997-98 Budget to cost-share this project. The ARB is providing equivalent cost-share funds and will contract with Meruit, Inc. to complete the project. In addition, Meruit, Inc. and Test Devices, Inc. will be providing cost-sharing for the project. Table 1 below lists the proposed funding from AQMD as well as the anticipated direct and in-kind funding from other sources.

Table 1: Anticipated Direct and In-Kind Cost Sharing

FUNDING ENTITY

DIRECT COST-SHARE

IN-KIND COST-SHARE

ARB

$68,000


AQMD

$68,000


Meruit, Inc.


$138,660

Test Devices, Inc.

$30,000


SUB TOTALS

$166,000

$138,660

GRAND TOTAL

$304,660

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