Fuel cell deal agreed for hydrogen energy-from-waste project
Monday 09 February 2009
AFC Energy has struck a deal to supply its alkaline fuel cells to energy-from-waste firm Waste2Tricity, which wants to use the technology to develop highly efficient gasification plants.
AFC Energy has agreed to loan Waste2Tricity £150,000 while the company raises capital for its first pilot plant, which could see construction start in six months' time.
Once capital is raised for the plant, Waste2Tricity would then hand over a £1 million licence fee to its fuel cell partner for exclusive use of its fuel cell technology in the energy-from-waste arena.
Our system will have significant environmental and cost benefits over other methods of electricity generation.
Waste2Tricity is expecting to develop a series of plasma gasification plants that would use fuel cells to convert waste to energy at efficiency rates as high as 60% (see this New Energy Focus story). Conventional energy-from-waste plants are often only half as efficient as this.
The pilot plant will be built in two phases. The first phase will see the main gasification unit developed, to turn around 50,000 tonnes of municipal waste a year into hydrogen, which would then generate electricity through a standard internal combustion engine.
The second phase will see up to 12MW of fuel cells established to replace the combustion engine with a more efficient system offering more electricity per tonne of waste.
Once the fuel cell system is completed, Waste2Tricity would pay AFC royalty payments for its technology.
This week's deal also sees AFC given the option of buying a 25% in Waste2Tricity and continuing to have two of its directors - Tory MP Tim Yeo and Terry Walsh - on the energy-from-waste company's board.
Ian Balchin, managing director at AIM-listed AFC, said: "The local gasification of municipal solid waste into hydrogen and its conversion into electricity is another excellent application for AFC Energy's fuel cell technology.
"It has the prospect of being a highly efficient method of energy recovery."
Benefits
The two companies claimed the combination of their technologies should have "significant" environmental benefits, and would attract Renewable Obligation Certificate (ROC) subsidies.
The key selling point of the technology link-up would be producing more electricity from the same feedstock, resulting in "lower carbon dioxide emissions per kWh", the company added.
Waste2Tricity, which has its registered office in central London, said it is currently in talks with other "strategic partners" regarding its plans for the pilot gasification plant.
Peter Jones, the former Biffa director who is now a director of Waste2Tricity, said: "Our system will have significant environmental and cost benefits over other methods of electricity generation.
"It has the potential to play a major role in the reduction of waste going to landfill, reduction in CO2 emissions, provide local authorities with a revenue stream, as well as being a commercially viable proposition."
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