1. The age of the energy server? by Doug Mohney

    Views and Opinions on Green IT (Feb 25 2010)

    1. The age of the energy server? by Doug Mohney

      Bloom Energy has put its cards on the table - a cost-effective fuel cell and a new way to think about energy creation and distribution.  Neither concept is new, but the two put together may bring about the age of the energy server.

      As noted by everyone, fuel cells have been around for ages but being able to build one able to power a building for under a million dollars is no mean feat. Bloom's 100 kW energy server lists at $700,000 to $800,000 a unit and doesn't require rare metals in its construction.  It pumps out clean DC power, so using it as an alternative to a diesel backup generator seems to be  a natural. Furthermore, the device is designed to be serviced while in operation, with parts "hot swappable" just like a, yes, high-end server; you can replace parts on it without turning off the power.

      Similarly, a "distributed grid" of decentralized energy generation has been touted in numerous circles, but Bloom has spun some hype about moving from its current 100kW unit servicing business campuses and neighborhoods in multiple units to something small enough to drop next to a U.S. home in about 10 years for $2,000 to $3,000.  

      Repeat after me: It's all about the scaling, silly.

      Bloom's current sweet spot is at 100 kW per unit, adding multiple units to meet grid needs. Going downstream will mean reducing both packaging and unit price so today's $700,000/100 kW unit will get cheaper and show up in 50 kW, 20 kW, and 10 kW versions.   Utilities, businesses, and ultimately individuals will have the opportunity to buy power-generation capability as they need  it, just as they buy computing power today. 

      This radically distributed world is likely to be a siren call for utilities.  Instead of spending years planning to build multi-megawatt powerplant with the associated environmental studies, bond issues, and board approval, they can steadily buy 100 kW chunks of power-generation capacity out of operating cash and using short-term loans -- smaller rural co-ops should go ga-ga, while larger ones can find go to the most conveniently located industrial park, brownfield, or landfill space and fire up a couple of megawatts of energy services where needed, as needed.  Just roll up the truck, unload the fuel cells, and plug them in.

      Ironically, if Bloom's promises of generating electricity cheaper than buying it from the utility holds true, the company's problem will be in scaling quickly up to meet the demands of enterprise customers who want to both be green and save green.

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    On 3/1/10 OliV said:
    "One energy server is certainly out of the scope of most bank loans for that matter – each server costs up to $900,000 a piece, and produces up to 100 KWe, enough to power a small office building or about 100 homes, but that doesn't include fuel. Bloom Energy are proponents of fuel cell technology, and thus far they have established energy servers at eBay and Google campuses, and they are capable of producing energy at a cost of only 8 to 9 cents per kilowatt hour."

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