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10 kW SOFC Power System Commercialization
Cummins Power Generation (CPG) as the prime contractor and SOFCo-EFS Holdings LLC (SOFCo), as their subcontractor, teamed under the Solid-state Energy Conversion Alliance (SECA) program to develop 3-10kW solid oxide fuel cell systems for use in recreational vehicles, commercial work trucks and stand-by telecommunications applications. The program goal is demonstration of power systems that meet commercial performance requirements and can be produced in volume at a cost of $400/kW. This report summarizes the team's activities during the seventh six-month period (July-December 2005) of the four-year Phase I effort. While there has been significant progress in the development of the SOFC subsystems that can support meeting the program Phase 1 goals, the SOFCo ceramic stack technology has progressed significantly slower than plan and CPG consider it unlikely that the systemic problems encountered will be overcome in the near term. SOFCo has struggled with a series of problems associated with inconsistent manufacturing, inadequate cell performance, and the achievement of consistent, durable, low resistance inter-cell connections with reduced or no precious materials. A myriad of factors have contributed to these problems, but the fact remains that progress has not kept pace with the SECA program. A contributing factor in SOFCo's technical difficulties is attributed to their significantly below plan industry cost share spending over the last four years. This has resulted in a much smaller SOFC stack development program, has contributed to SOFCo not being able to aggressively resolve core issues, and clouds their ability to continue into a commercialization phase. In view of this situation, CPG has conducted an independent assessment of the state-of-the-art in planar SOFC's stacks and have concluded that alternative technology exists offering the specific performance, durability, and low cost needed to meet the SECA objectives. We have further concluded that there is insufficient evidence to reliably predict that SOFCo will be able to achieve the SECA performance and cost goals on a schedule consistent with SECA or CPG commercialization goals. CPG believes SOFCo have made a good faith effort consistent with the available resources, but have repeatedly fallen short of achieving the programs scheduled targets. CPG has therefore initiated a process of application for extension of Phase 1 of our SECA program with the intent of transitioning to an alternative stack supplier with more mature SOFC technology, and demonstrating a system meeting the SECA Phase 1 goals by the end of calendar 2006. We have identified an alternative supplier and will be reporting the progress on transition and program planning in monthly technical reports, reviews, and in the next semiannual report
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10kW SOFC POWER SYSTEM COMMERCIALIZATION
Participants in the SECA 10 kW SOFC Power System Commercialization project include Cummins Power Generation (CPG), the power generation arm of Cummins, Inc., SOFCo-EFS Holdings, LLC (formerly McDermott Technology, Inc.), the fuel cell and fuel processing research and development arm of McDermott International Inc., M/A-COM, the Multi-Layer Ceramics (MLC) processing and manufacturing arm of Tyco Electronics, and Ceramatec, a materials technology development company. CPG functions in the role of prime contractor and system integrator. SOFCo-EFS is responsible for the design and development of the hot box assembly, including the SOFC stack(s), heat exchanger(s), manifolding, and fuel reformer. M/A-COM and SOFCo-EFS are jointly responsible for development of the MLC manufacturing processes, and Ceramatec provides technical support in materials development. In October 2002, McDermott announced its intention to cease operations at McDermott Technology, Inc. (MTI) as of December 31, 2002. This decision was precipitated by several factors, including the announced tentative settlement of the B&W Bankruptcy which would result in all of the equity of B&W being conveyed to a trust, thereby eliminating McDermott's interest in the company, and the desire to create a separate fuel cell entity to facilitate its commercial development. The new fuel cell entity is named SOFCo-EFS Holdings, LLC. All of McDermott's solid oxide fuel cell and fuel processing work will be conducted by SOFCo-EFS, using personnel previously engaged in that work. SOFCo-EFS will continue to be located in the Alliance, OH facility and use the existing infrastructure and test facilities for its activities. While the effort needed to accomplish this reorganization has detracted somewhat from SOFCo's efficiency during the fourth quarter, we believe the improved focus on the core fuel cell and fuel reformation resulting from the reorganization will have a positive impact on the SECA project in the long run. The program is organized into three developmental periods. In Phase 1 the team will develop and demonstrate a proof-of-concept prototype design and develop the manufacturing plan to substantiate potential producibility at a target cost level of 600 kW. Depending on an assessment of the maturity of the technology at the end of Phase 1, Phase 2 may be structured and supplemented to develop a limited production capability. Finally, in Phase 3, a full Value Package Introduction (VPI) Program will be integrated with the SECA program to develop a mass-producible design, with a factory manufacturing cost of $400/kW, and with full cross-functional support for unrestricted commercial sales
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10 kW SOFC POWER SYSTEM COMMERCIALIZATION
The program is organized into three developmental periods. In Phase 1 the team will develop and demonstrate a proof-of-concept prototype design and develop a manufacturing plan to substantiate potential producibility at a target cost level of 600 kW. Depending on an assessment of the maturity of the technology at the end of Phase 1, Phase 2 may be structured and supplemented to provide a limited production capability. Finally, in Phase 3, a full Value Package Introduction (VPI) Program will be integrated into the SECA program to develop a mass-producible design at a factory cost of $400/kW with full cross-functional support for unrestricted commercial sales. The path to market for new technology products in the Cummins system involves two processes. The first is called Product Preceding Technology, or PPT. The PPT process provides a methodology for exploring potentially attractive technologies and developing them to the point that they can be reliably scheduled into a new product development program with a manageable risk to the product introduction schedule or product quality. Once a technology has passed the PPT gate, it is available to be incorporated into a Value Package Introduction (VPI) Program. VPI is the process that coordinates the cross-functional development of a fully supported product. The VPI Program is designed to synchronize efforts in engineering, supply, manufacturing, marketing, finance, and product support areas in such a way that the product, when introduced to the market, represents the maximum value to the customer