Public Release: 

Cost reductions will hasten fuel cell commercialization

Technical Insights' Advances in Fuel Cell Technology Analysis

Technical Insights

Palo Alto, Calif. -- September 2, 2003--The commercial viability of the fuel cell, the clean and quiet technology, is heavily dependant on cost reductions that assume greater significance as worldwide concern for rapidly depleting non-renewable fossil fuels increases.

Fuel cell costs are augmented by a few factors. These systems use expensive heat resistant materials that enable smooth functioning in very high temperatures, and they rely on precious metals, such as platinum, as catalysts. Moreover, conversion of available fuels to hydrogen requires expensive reformers.

"At present, it is far less expensive to use power from the grid and other traditional sources," says Technical Insights Analyst Jayanthi Kamalaratnam. "Non-traditional fueling infrastructures are needed, which translate into high costs."

All fuel cells are either powered by fuels that are converted to hydrogen, or they are powered by hydrogen itself. This appears to be an advantage, because hydrogen is an abundant element with the potential to replace fossil fuels as an energy source. Still, this element has its drawbacks. It is expensive and currently requires high costs for storage and delivery. The infrastructure required to launch a full-scale hydrogen economy does not currently exist, and setting up a hydrogen fueling network further increases the expense of fuel cell systems.

Hydrogen is usually stored under high pressure, is relatively heavy, and does not lend itself to convenient refueling. Storage in liquid form requires high energy to ensure safety. As the storage tanks are relatively large, liquid hydrogen is not suitable for use in automobiles. In transportation systems, converting non-hydrogen fuels, such as natural gas and ethanol, to hydrogen adds bulk and expense.

"Hydrogen storage still remains a significant challenge as the fuel has a very low energy density at normal ambient conditions, making its storage difficult in any mobile storage vessel," says Kamalaratnam. "Researchers are investigating metal hydrides and carbon nanotubes as possible solutions."

The success of fuel cells will depend on proactive consumer education and creation of awareness, as these power-producing systems are mostly used in consumer-oriented applications such as transportation systems and stationary residential and portable devices.

Consumers need to be convinced that fuel cells are capable of providing environment-friendly electricity and are highly efficient and reliable in the long term. Assurances on proper infrastructure, and having qualified, skilled personnel to provide maintenance services are likely to boost market acceptance. Reducing cost remains the key commercial and technological challenge.

New analysis by Technical Insights, a business unit of Frost & Sullivan (, Advances in Fuel Cell Technologies, details the technological breakthroughs, which are likely to make an indelible mark on the future energy sector. The analysis also provides invaluable information on major market participants, technology developers, key patents, and various restraints in the commercialization of fuel cells.

Technical Insights will hold a conference call at 3:00 p.m. (EDT)/ 12:00 p.m. (PDT) on September 9, 2003 to provide a summary and analysis of the latest developments in fuel cells. Those interested in participating in the call are requested to send e-mail to Julia Paulson at with the following information for registration:

Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, a confirmation/pass code for the live briefing will be e-mailed to you.


Frost & Sullivan is a global leader in strategic market consulting and training. Acquired by Frost & Sullivan, Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and reports. Ongoing analysis on fuel cell technologies is available in Inside R&D Alert, a Technical Insights subscription service. Technical Insights and Frost & Sullivan also offer custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

Advances in Fuel Cell Technology

Julia Paulson
P: 210-247-3870
F: 210-348-1003

Pramila Gurtoo
DID: 603-6204-5811
Gen: 603-6204-5800
Fax: 603-6201-7402

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