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Execute Contract to Complete Development of Direct Methanol Fuel Cell

SYNOPSIS:

On October 10, 1997, the Board awarded California Institute of Technology, with Jet Propulsion Laboratory as subcontractor, a contract to develop a first-generation 1kW direct methanol fuel cell. Total project cost was $638,500, of which AQMD provided $338,500 and ARB provided $300,000. Due to lengthy contract negotiations, and contractor staffing problems, the project was not completed by its due date of March 30, 2000 and most of the committed funds were unspent. Important progress has been made in this project and additional time is needed to complete it. Staff recommends that the Board execute a contract to complete this project in an amount not to exceed $300,000, the unspent balance of Contract #98139.

COMMITTEE:

Technology, March 24, 2000. Less than a quorum was present during the discussion of this item; the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with the California Institute of Technology, with the Jet Propulsion Laboratory as its main subcontractor, in an amount not to exceed $300,000, the unspent balance of Contract #98139, from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On October 10, 1997, the Board awarded a contract to the California Institute of Technology (Caltech), with Jet Propulsion Laboratory (JPL) as its main subcontractor, to develop a first-generation 1kW direct methanol fuel cell. JPL had invented this technology in 1991. Total cost of the AQMD Contract #98139 was $638,500, of which AQMD provided $338,500 and ARB provided $300,000.

However, due to lengthy contract negotiations among the cosponsors and contractors, and contractor staffing problems, the project could not be completed by its due date of March 30, 2000. JPL has made important progress in this project, and additional time is needed to complete the project. Under Contract #98139, Caltech/JPL has already initiated the following:

• Engineering design of the 1 kW stack;
• Engineering calculations to size the thermal, water and air balances in the system;
• Identification and procurement of various hardware components for the stack (including the radiator to control heat gain in the system, an optimized 3-stage blower to supply the required air, a data acquisition system, the methanol sensor, the power supply to the methanol sensor, the control software);
• Identification and execution of a contract with a qualified subcontractor (Giner, Inc.) to develop the membrane electrode assemblies (MEAs), the key building block for the stack;
• Assembly of test stand; and
• Initial testing of the first sample MEAs from Giner, Inc.

Other accomplishments include the steady reduction of methanol crossover within the cell, perhaps the most important hurdle in developing this technology.

Staff recommends the Board execute a new contract to allow enough time for JPL to complete this development in an amount not to exceed $300,000, the approximate unspent balance of the contract.

Proposal

Caltech, with its main subcontractor (JPL), has proposed to continue the Phase 1 effort, i.e. to develop and scale-up JPL’s DMFC technology to a 1 kW engineering model. Specific tasks for the project primarily involve completion of the tasks already begun under Contract #98139, including

• Design of a scaled-up DMFC stack capable of providing 1 kW on a systems basis;
• Assembly of short stacks to evaluate preliminary performance;
• Assembly of a test stand to accommodate the 1 kW stack testing and fabrication of components for the 1 kW stack;
• Assembly and testing of the 1 kW stack;
• Selection, procurement and evaluation of ancillary components for the 1 kW system;
• Assembly of a system test stand to accommodate the 1 kW system; and,
• Integration of the system components and stack for a demonstration at bench level.

Benefits to AQMD

The proposed project is identified in the Fiscal Year 1999-2000 Update of the TAO Plan under Project 2000M4-4, "Development and Demonstration of Direct Liquid Methanol Fuel Cells."

The AQMP identifies the need to implement zero-emission vehicles. Fuel cells are a promising technology for ZEV power plants of the future. DMFC is one of the zero emission fuel cell technologies that may be applicable to vehicle applications in the future. Expected immediate benefits include the establishment of zero- and near-zero-emission proof-of-concept vehicles in numerous applications. Over the longer term, the proposed project has the potential to foster wide-scale implementation of zero-emission fuel cell vehicles in the Basin which, in turn, could lead to significant fuel economy improvements in a wide variety of applications.

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision B.2.c(1): The unique experience and capabilities of the proposed contractor; B.2.c(2): The project involves proprietary technology; B.2. c(3): The contractor has ownership of key assets required for project performance; and B.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD, specifically, B.2.d(1): Projects involving cost sharing by multiple sponsors.

Identifying Caltech/JPL as the sole source for the proposed project is in the best interests of the AQMD. It would maintain continuity in the project since, as discussed above, Caltech/JPL has already initiated work on this project, and has achieved important milestones. In addition, the project as proposed by Caltech addresses an important need of the AQMP, namely developing a technology to ultimately eliminate tail-pipe emissions from motor vehicles. JPL invented this technology in conjunction with USC. Caltech and USC hold a joint patent for this technology developed at JPL, and have licensed the rights to DTI Energy, Inc. ARB supports DMFC technology for its potential to expedite the commercial viability of fuel cell-powered ZEVs and has identified the Caltech/JPL project as a promising prospect, through cost-sharing noted below.

Resource Impacts

The total cost of Phase 1 is estimated to be $638,000, of which AQMD had committed $338,500 and ARB will provide $300,000. Staff recommends that the Board execute a contract to complete this project in an amount not to exceed $300,000, the unspent balance of Contract #98139.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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