PROPOSAL:

Execute Contract to Cost-Share Development and Demonstration of Fuel-Flexible Proton Exchange Membrane Fuel Cell Power System for Vehicle Applications

SYNOPSIS:

Proton exchange membrane fuel cells (PEMFCs) are zero-emission electrochemical engines with potential to become commercialized powerplants for vehicles. In 1994, AQMD executed a $500,000 contract with Torrance-based AlliedSignal Aerospace to research and develop a direct-hydrogen PEMFC system for automobile applications, as part of a $10 million Department of Energy (DOE) project. This nearly completed project has resulted in important manufacturing and technological innovations for PEMFCs. DOE recently selected AlliedSignal to develop a larger and improved PEMFC system that can operate on reformed hydrocarbon fuels. The total cost of the project is approximately $9 million, of which DOE anticipates providing $6.75 million. AlliedSignal seeks matching funds of $2.25 million and has requested $500,000 from AQMD.

COMMITTEE:

Technology, August 15, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute an agreement with AlliedSignal Inc. in an amount not to exceed $500,000 to cost-share development and demonstration of a fuel-flexible proton exchange membrane fuel cell power system for vehicle applications.

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

Background

The AQMP identifies the need for rapid commercialization of ZEVs and "equivalent" ZEVs (EZEVs) over the next decade. Fuel cells produce electricity without combustion and are emerging as leading technologies to power ZEVs and EZEVs. These ultra-clean electrochemical engines can provide excellent performance and range along with fast refueling for vehicles, and have the potential to work in virtually every mobile and stationary application currently powered by internal combustion engines.

Of the five major fuel cell types, the proton exchange membrane fuel cell (PEMFC) holds the most promise for commercialization in vehicle applications over the next decade. Additional research, development and demonstration (RD&D) efforts for PEMFC systems are needed to achieve commercial viability. Many technical challenges and trade-offs in performance, complexity and cost are directly related to the choice of fuel. To date, most RD&D efforts for PEMFC vehicle applications have focused on either direct-hydrogen systems or those that steam-reform methanol into hydrogen. AQMD has cost-shared pioneering projects involving both technological approaches.

For example, in 1994 AQMD executed a $500,000 contract with AlliedSignal Aerospace to cost-share the research and development of a direct-hydrogen PEMFC system for automobile applications. This $10 million project, which will be completed in September 1997, was designed to focus on ways to lower the manufacturing costs of PEMFCs as well as achieve the highest-possible power density for the fuel cell stack. In constructing and demonstrating small 30-cell and 100-cell PEMFC stacks, AlliedSignal developed several important manufacturing and technological innovations towards this end. Although the project was not completely successful in achieving its original objectives, DOE and AQMD technical staff have been pleased with the progress made, especially in the last year when key new personnel were added to AlliedSignal’s fuel cell team.

In early 1997, DOE released a competitive Program Research and Development Announcement (PRDA) to further develop PEMFC technologies, with a focus on systems that can utilize conventional infrastructure fuels such as gasoline, diesel, or natural gas. In response to the DOE PRDA, AlliedSignal proposed a follow-on effort to develop a larger and improved PEMFC power system with the capability to be fuel flexible. AlliedSignal’s new proposal was one of about 20 fuel cell projects that DOE selected for an award. The total cost of the project is approximately $9 million, of which DOE will provide about $6.75 million. AlliedSignal must obtain matching funds of $2.25 million and has requested $500,000 from AQMD.

Proposal

The proposed follow-on project will focus on research, development, assembly, and testing of a high-efficiency 50-kW (target peak-power specification) PEMFC system that will be capable of operation on methanol, ethanol, gasoline, diesel, JP-8 and natural gas with tolerance to CO concentrations greater than 10 ppm. The system will be designed for compatibility with two different fuel processors that are being developed under other DOE projects. Another major target of the project will be low cost ($100 per kW) for the PEMFC system under high-volume production scenarios.

The proposed project will be performed over a 27-month period. The preliminary tasks to be performed by AlliedSignal include the following: development of a low-catalyst-loading, CO-tolerant membrane electrode assembly (MEA) for the fuel cell stack; development and demonstration of a proof-of-concept 10 kW PEMFC stack using the advanced MEAs; fabrication of a 50 kW PEMFC stack complete with a balance-of-plant system; testing of the 50 kW PEMFC system on simulated reformate; and delivery of the prototype 50 kW PEMFC system to Argonne National Laboratory for integration with state-of-the-art fuel processing systems.

The technology in this project is identified in the 1997-98 Technology Advancement Plan under 97M3-3, "Development and Demonstration of Fuel Cell Technologies for On- and Off-Road Vehicle Applications." Demonstration of a fuel-flexible PEMFC power system could contribute to accelerated wide-scale deployment of zero- and near-zero-emission fuel cell vehicles in the South Coast Air Basin. In addition to air pollution reduction benefits, the project could also help create new manufacturing innovations for fuel cells and jobs in various technology and fuel-related sectors.

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.

The proposed contractor and its technology were selected through a full competitive bid process administered by DOE, in cooperation with AQMD staff. The proposed project will be technically and fiscally unique. It includes strong cost sharing by DOE and AlliedSignal Inc., the latter which is pursuing additional cost sharing from other California agencies. AlliedSignal Inc. is one of the world’s largest and most capable manufacturers of aerospace equipment, automotive components, engine control systems, turbocompressors, and environmental control systems, and its Aerospace Equipment Systems group in Torrance has gained extensive experience in applying such capabilities to develop PEMFC systems. Continued involvement of this company in PEMFC RD&D greatly enhances the prospect for fuel cells to become technically and economically viable as alternatives to internal combustion engines within the time frame identified in the AQMP.

Resource Impacts

The total project cost is estimated to be $9 million. The AQMD’s proposed cost-share is $500,000. Sufficient funds are available in the FY 1997-98 Budget to cost-share this project. The DOE is expected to provide $6.75 million. The remaining $1.75 million is expected to be provided as a "local match" by AlliedSignal and other as-yet-unidentified organizations. Table 1 below lists the proposed funding from AQMD as well as the anticipated funding from other sources.

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