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HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLAN

FINAL – APRIL 10, 2012

1

NEW JERSEY

Hydrogen and Fuel Cell Development Plan – “Roadmap” Collaborative

Participants

Clean Energy States Alliance

Anne Margolis – Project Director

Valerie Stori – Assistant Project Director

Project Management and Plan Development

Northeast Electrochemical Energy Storage Cluster:

Joel M. Rinebold – Program Director

Paul Aresta – Project Manager

Alexander C. Barton – Energy Specialist

Adam J. Brzozowski – Energy Specialist

Thomas Wolak – Energy Intern

Nathan Bruce –GIS Mapping Intern

Agencies

United States Department of Energy

United States Small Business Administration

Newark skyline – “New Jersey Skyline”, city-data.com, http://www.city-data.com/forum/city-vs-city/51783-mid-sized-city-

skyline-thread-21.html, October, 2011

Sheraton – “Exterior”, visitUSA.com, http://reservation.travelaffiliatepro.com/visitusa/hotel/details/SI1137%20/sheraton-edison-

hotel-raritan-center.htm, October, 2011

New Jersey/New York port – “New Jersey/New York Port”, Coalition for Clean & Safe Ports, http://cleanandsafeports.org/new-

yorknew-jersey/, October 2011

Pipes – “Plumber Vs Plumbing Engineer”, Chemical Engineering World, http://chem-eng.blogspot.com/2008/12/plumber-vs-

plumbing-engineer-whats.html, October, 2011

Rutgers University – “View of Old Queens Hall at Rutgers University in New Brunswick”, nj.com,

http://www.nj.com/news/index.ssf/2011/04/rutgers_to_cancel_annual_rutge.html, October, 2011

Graph going up – “What do they do?”, http://www.sciencebuddies.org/science-fair-projects/science-engineering-

careers/Math_statistician_c001.shtml?From=testb, October 2011

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EXECUTIVE SUMMARY

There is the potential to generate approximately 2.30 million megawatt hours (MWh) of electricity from

hydrogen fuel cell technologies at potential host sites in the State of New Jersey, annually through the

development of 292 – 390 megawatts (MW) of fuel cell generation capacity. The state and federal

government have incentives to facilitate the development and use of renewable energy. The decision on

whether or not to deploy hydrogen or fuel cell technology at a given location depends largely on the

economic value, compared to other conventional or alternative/renewable technologies. Consequently,

while many sites may be technically viable for the application of fuel cell technology, this plan provides

focus for fuel cell applications that are both technically and economically viable.

Favorable locations for the development of renewable energy generation through fuel cell technology

include energy intensive commercial buildings (education, food sales, food services, inpatient healthcare,

lodging, and public order and safety), energy intensive industries, wastewater treatment plants, landfills,

wireless telecommunications sites, federal/state-owned buildings, and airport facilities with a substantial

amount of air traffic.

Currently, New Jersey contains at least 8 companies that are part of the growing hydrogen and fuel cell

industry supply chain in the Northeast region. Based on a recent study, these companies making up New

Jersey’s hydrogen and fuel cell industry are estimated to have realized approximately $26.5 million in

revenue and investment, contributed over $1 million in state and local tax revenue, and generated

over $18.6 million in gross state product from their participation in this regional energy cluster in 2010.

Hydrogen and fuel cell projects are becoming increasingly popular throughout the Northeast region.

These technologies are viable solutions that can meet the demand for renewable energy in New Jersey. In

addition, the deployment of hydrogen and fuel cell technology would reduce the dependence on oil,

improve environmental performance, and increase the number of jobs within the state. This plan provides

links to relevant information to help assess, plan, and initiate hydrogen or fuel cell projects to help meet

the energy, economic, and environmental goals of the State.

Developing policies and incentives that support hydrogen and fuel cell technology will increase

deployment at sites that would benefit from on-site generation. Increased demand for hydrogen and fuel

cell technology will increase production and create jobs throughout the supply chain. As deployment

increases, manufacturing costs will decline and hydrogen and fuel cell technology will be in a position to

then compete in a global market without incentives. These policies and incentives can be coordinated

regionally to maintain the regional economic cluster as a global exporter for long-term growth and

economic development.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ......................................................................................................................2

INTRODUCTION ..................................................................................................................................5

DRIVERS............................................................................................................................................6

ECONOMIC IMPACT ...........................................................................................................................8

POTENTIAL STATIONARY TARGETS ...................................................................................................9

Education ............................................................................................................................................ 11

Food Sales ........................................................................................................................................... 12

Food Service ....................................................................................................................................... 12

Inpatient Healthcare ............................................................................................................................ 13

Lodging ............................................................................................................................................... 14

Public Order and Safety ...................................................................................................................... 14

Energy Intensive Industries ..................................................................................................................... 15

Government Owned Buildings................................................................................................................ 16

Wireless Telecommunication Sites ......................................................................................................... 16

Wastewater Treatment Plants (WWTPs) ................................................................................................ 16

Landfill Methane Outreach Program (LMOP) ........................................................................................ 17

Airports ................................................................................................................................................... 17

Military ................................................................................................................................................... 19

POTENTIAL TRANSPORTATION TARGETS ......................................................................................... 20

Alternative Fueling Stations................................................................................................................ 21

Fleets ................................................................................................................................................... 22

Bus Transit .......................................................................................................................................... 22

Material Handling ............................................................................................................................... 22

Ground Support Equipment ................................................................................................................ 23

Ports .................................................................................................................................................... 23

CONCLUSION ................................................................................................................................... 25

APPENDICES .................................................................................................................................... 27

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INDEX OF TABLES

Table 1 - New Jersey Economic Data 2011 .................................................................................................. 8

Table 2 - Education Data Breakdown ......................................................................................................... 12

Table 3 - Food Sales Data Breakdown........................................................................................................ 12

Table 4 - Food Services Data Breakdown .................................................................................................. 13

Table 5 - Inpatient Healthcare Data Breakdown ......................................................................................... 13

Table 6 - Lodging Data Breakdown ............................................................................................................ 14

Table 7 - Public Order and Safety Data Breakdown ................................................................................... 15

Table 8 - 2002 Data for the Energy Intensive Industry by Sector .............................................................. 15

Table 9 - Energy Intensive Industry Data Breakdown ................................................................................ 16

Table 10 - Government Owned Building Data Breakdown ........................................................................ 16

Table 11 -Wireless Telecommunication Data Breakdown ......................................................................... 16

Table 12 - Wastewater Treatment Plant Data Breakdown .......................................................................... 17

Table 13 - Landfill Data Breakdown .......................................................................................................... 17

Table 14 – New Jersey Top Airports' Enplanement Count ......................................................................... 18

Table 15 - Airport Data Breakdown ........................................................................................................... 18

Table 16 - Military Data Breakdown .......................................................................................................... 19

Table 17 - Average Energy Efficiency of Conventional and Fuel Cell Vehicles (mpge) ........................... 20

Table 18 - Ports Data Breakdown ............................................................................................................... 24

Table 19 –Summary of Potential Fuel Cell Applications ........................................................................... 25

INDEX OF FIGURES

Figure 1 - Energy Consumption by Sector .................................................................................................... 9

Figure 2 - Electric Power Generation by Primary Energy Source ................................................................ 9

Figure 3 - New Jersey Electrical Consumption per Sector ......................................................................... 11

Figure 4 - U.S. Lodging, Energy Consumption ........................................................................................ 144

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INTRODUCTION

A Hydrogen and Fuel Cell Industry Development Plan was created for each state in the Northeast region

(New Jersey, Maine, New Hampshire, Massachusetts, Vermont, Connecticut, New York, and Rhode

Island), with support from the United States (U.S.) Department of Energy (DOE), to increase awareness

and facilitate the deployment of hydrogen and fuel cell technology. The intent of this guidance document

is to make available information regarding the economic value and deployment opportunities for

hydrogen and fuel cell technology.1

A fuel cell is a device that uses hydrogen (or a hydrogen-rich fuel such as natural gas) and oxygen to

create an electric current. The amount of power produced by a fuel cell depends on several factors,

including fuel cell type, stack size, operating temperature, and the pressure at which the gases are

supplied to the cell. Fuel cells are classified primarily by the type of electrolyte they employ, which

determines the type of chemical reactions that take place in the cell, the temperature range in which the

cell operates, the fuel required, and other factors. These characteristics, in turn, affect the applications for

which these cells are most suitable. There are several types of fuel cells currently in use or under

development, each with its own advantages, limitations, and potential applications. These technologies

and application are identified in Appendix VI.

Fuel cells have the potential to replace the internal combustion engine (ICE) in vehicles and provide

power for stationary and portable power applications. Fuel cells are in commercial service as distributed

power plants in stationary applications throughout the world, providing thermal energy and electricity to

power homes and businesses. Fuel cells are also used in transportation applications, such as automobiles,

trucks, buses, and other equipment. Fuel cells for portable applications, which are currently in

development, and can provide power for laptop computers and cell phones.

Fuel cells are cleaner and more efficient than traditional combustion-based engines and power plants;

therefore, less energy is needed to provide the same amount of power. Typically, stationary fuel cell

power plants are fueled with natural gas or other hydrogen rich fuel. Natural gas is widely available

throughout the northeast, is relatively inexpensive, and is primarily a domestic energy supply.

Consequently, natural gas shows the greatest potential to serve as a transitional fuel for the near future

hydrogen economy. 2

Stationary fuel cells use a fuel reformer to convert the natural gas to near pure

hydrogen for the fuel cell stack. Because hydrogen can be produced using a wide variety of resources

found here in the U.S., including natural gas, biomass material, and through electrolysis using electricity

produced from indigenous sources, energy produced from a fuel cell can be considered renewable and

will reduce dependence on imported fuel. 3,4

When pure hydrogen is used to power a fuel cell, the only

by-products are water and heat—no pollutants or greenhouse gases (GHG) are produced.

1 Key stakeholders are identified in Appendix III

2 EIA,”Commercial Sector Energy Price Estimates, 2009”,

http://www.eia.gov/state/seds/hf.jsp?incfile=sep_sum/html/sum_pr_com.html, August 2011 3 Electrolysis is the process of using an electric current to split water molecules into hydrogen and oxygen. 4 U.S. Department of Energy (DOE), http://www1.eere.energy.gov/hydrogenandfuelcells/education/, August 2011

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DRIVERS

The Northeast hydrogen and fuel cell industry, while still emerging, currently has an economic impact of

nearly $1 Billion of total revenue and investment. New Jersey benefits from secondary impacts of

indirect and induced employment and revenue.5 Furthermore, New Jersey has a definitive and attractive

economic development opportunity to greatly increase its economic participation in the hydrogen and fuel

cell industry within the Northeast region and worldwide. An economic “SWOT” assessment for New

Jersey is provided in Appendix VII.

Industries in the Northeast, including those in New Jersey, are facing increased pressure to reduce costs,

fuel consumption, and emissions that may be contributing to climate change. Currently, New Jersey’s

businesses pay $0.131 per kWh for electricity on average; this is the tenth highest cost of electricity in the

U.S.6 New Jersey’s relative proximity to major load centers, the high cost of electricity, concerns over

regional air quality, available federal tax incentives, and legislative mandates in New Jersey and

neighboring states have resulted in renewed interest in the development of efficient renewable energy.

Incentives designed to assist individuals and organizations in energy conservation and the development of

renewable energy are currently offered within the state. Appendix IV contains an outline of New Jersey’s

incentives and renewable energy programs. Some specific factors that are driving the market for

hydrogen and fuel cell technology in New Jersey include the following:

New Jersey's Renewable Portfolio Standard (RPS) -- one of the most aggressive in the United

States -- requires each supplier/provider serving retail customers in the state to procure 22.5

percent of the electricity it sells in New Jersey from qualifying renewables by 2021 (“energy

year” 2021 runs from June 2020 – May 2021). – promotes stationary power and transportation

applications.7

New Jersey's 1999 electric-utility restructuring legislation created a "societal benefits charge"

(SBC) to support investments in energy efficiency and "Class I" renewable energy. The SBC

funds New Jersey’s Clean Energy Program (NJCEP), a statewide initiative administered by the

New Jersey Board of Public Utilities (BPU). The NJCEP provides technical assistance, financial

assistance, information and education for all classes of ratepayers. – promotes stationary power

applications.8

New Jersey is one of the states in the ten-state region that is part of the Regional Greenhouse Gas

Initiative (RGGI); the nation’s first mandatory market-based program to reduce emissions of

carbon dioxide (CO2). RGGI's goals are to stabilize and cap emissions at 188 million tons

annually from 2009-2014 and to reduce CO2-emissions by 2.5 percent per year from 2015-2018.9

– promotes stationary power and transportation applications.

New Jersey's net-metering rules apply to all residential, commercial and industrial customers of

the state's investor-owned utilities and energy suppliers (and certain competitive municipal

utilities and electric cooperatives). Systems that generate electricity using fuel cells are eligible.

5 There currently no OEMs in New Jersey’s hydrogen and fuel cell industry.

6 EIA, Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State,

http://www.eia.gov/cneaf/electricity/epm/table5_6_a.html 7 DSIRE, “Renewable Portfolio Standards,”

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ05R&re=1&ee=1, October, 2011 8 DSIRE, “Societal Benefits Charge”, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ04R&re=1&ee=1,

October, 2011 9 Seacoastonline.come, “RGGI: Quietly setting a standard”,

http://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20090920/NEWS/909200341/-1/NEWSMAP, September 20, 2009

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There is no firm aggregate limit on net metering, although the BPU is permitted to allow utilities

to cease offering net metering if statewide enrolled capacity exceeds 2.5 percent of peak electric

demand. – promotes stationary power applications.10

Zero Emissions Vehicle (ZEV) Tax Exemption – ZEVs sold, rented, or leased in New Jersey are

exempt from state sales and use tax. This exemption does not apply to partial zero emission

vehicles, including hybrid electric vehicles. ZEVs are defined as vehicles that the California Air

Resources Board has certified as such. – promotes transportation applications.11

Low Emission or Alternative Fuel Bus Acquisition Requirement – All buses the New Jersey

Transit Corporation (NJTC) purchases must be:

Equipped with improved pollution controls that reduce particulate emissions; or

Powered by a fuel other than conventional diesel. Qualifying vehicles include compressed

natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on

biodiesel or ultra-low sulfur fuel, or vehicles operating on any other bus fuel the U.S.

Environmental Protection Agency approves. – promotes transportation applications.12

10

DSIRE, “New Jersey – Net Metering,”

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NY05R&re=1&ee=1, October, 2011 11

EERE, “Zero Emissions Vehicle (ZEV) Tax Exemption”, http://www.afdc.energy.gov/afdc/laws/law/NJ/5778, October, 2011 12

EERE, “Low Emission or Alternative Fuel Bus Acquisition Requirement”,

http://www.afdc.energy.gov/afdc/laws/law/NJ/5493, October, 2011

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ECONOMIC IMPACT

The hydrogen and fuel cell industry has direct, indirect, and induced impacts on local and regional

economies. 13

A new hydrogen and/or fuel cell project directly affects the area’s economy through the

purchase of goods and services, generation of land use revenue, taxes or payments in lieu of taxes, and

employment. Secondary effects include both indirect and induced economic effects resulting from the

circulation of the initial spending through the local economy, economic diversification, changes in

property values, and the use of indigenous resources.

New Jersey is home to at least eight companies that are part of the growing hydrogen and fuel cell

industry supply chain in the Northeast region. Appendix V lists the hydrogen and fuel cell supply chain

companies New Jersey. Realizing over $26.5 million in revenue and investment from their participation

in this regional cluster in 2010, these companies include manufacturing, parts distributing, supplying of

industrial gas, engineering based research and development (R&D), coating applications, managing of

venture capital funds, etc. 14

Furthermore, the hydrogen and fuel cell industry is estimated to have

contributed over $1 million in state and local tax revenue, and approximately $18.6 million in gross state

product. Table 1 shows New Jersey’s impact in the Northeast region’s hydrogen and fuel cell industry as

of April 2011.

Table 1 - New Jersey Economic Data 2011

New Jersey Economic Data

Supply Chain Members 8

Indirect Rev ($M) 18.23

Indirect Jobs 66

Indirect Labor Income ($M) 5.26

Induced Revenue ($M) 8.3

Induced Jobs 45

Induced Labor Income ($M) 2.64

Total Revenue ($M) 26.53

Total Jobs 111

Total Labor Income ($M) 7.9

In addition, there are over 118,000 people employed across 3,500 companies within the Northeast

registered as part of the motor vehicle industry. Approximately 21,813 of these individuals and 794 of

these companies are located in New Jersey. If newer/emerging hydrogen and fuel cell technology were to

gain momentum within the transportation sector the estimated employment rate for the hydrogen and fuel

cell industry could grow significantly in the region.15

13

Indirect impacts are the estimated output (i.e., revenue), employment and labor income in other business (i.e., not-OEMs) that

are associated with the purchases made by hydrogen and fuel cell OEMs, as well as other companies in the sector’s supply chain.

Induced impacts are the estimated output, employment and labor income in other businesses (i.e., non-OEMs) that are associated

with the purchases by workers related to the hydrogen and fuel cell industry. 14

Northeast Electrochemical Energy Storage Cluster Supply Chain Database Search, http://neesc.org/resources/?type=1,

September, 2011 15 NAICS Codes: Motor Vehicle – 33611, Motor Vehicle Parts – 3363

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Residential

24%

Commercial

26%

Industrial

12%

Transportation

38%

POTENTIAL STATIONARY TARGETS

In 2009, New Jersey consumed the equivalent of 701.32 million megawatt-hours of energy amongst the

transportation, residential, industrial, and commercial sectors.16

Electricity consumption in New Jersey

was approximately 76 million MWh, and is forecasted to grow at a rate of 1.1 percent annually over the

next decade.17;18

Figure 1 illustrates the percent of total energy consumed by each sector in new Jersey.

A more detailed breakout of energy use is provided in Appendix II.

New Jersey relies on both in-state resources and imports of power over the region’s transmission system

to serve electricity to customers. Net electrical demand in New Jersey was 15,986 MW in 2009 and is

projected to increase by approximately 800 MW by 2015. The state’s overall electricity demand is

forecasted to grow at a rate of 1.1 percent annually over the next decade. Demand for new electric

capacity as well as a replacement of older less efficient base-load generation facilities is expected. 19

As

shown in Figure 2, natural gas was the second most used energy source for electricity consumed in New

Jersey for 2009. 20

16

U.S. Energy Information Administration (EIA), “State Energy Data System”,

“http://www.eia.gov/state/seds/hf.jsp?incfile=sep_sum/html/rank_use.html”, August 2011 17

EIA, “Electric Power Annual 2009 – State Data Tables”, www.eia.gov/cneaf/electricity/epa/epa_sprdshts.html, January, 2011 18

ISO New Jersey, “2011 ICAP – RLGF Summary”,

http://www.nyiso.com/public/webdocs/committees/bic_icapwg_lftf/meeting_materials/2010-12-09/2011_ICAP_-

_RLGF_Summary_V3.pdf, December 9, 2010 19 ISO New Jersey, “Power Trends 2011”,

http://www.nyiso.com/public/webdocs/newsroom/power_trends/Power_Trends_2011.pdf, January, 2011 20

EIA, “1990 - 2010 Retail Sales of Electricity by State by Sector by Provider (EIA-861)”,

http://www.eia.gov/cneaf/electricity/epa/epa_sprdshts.html, January 4, 2011

Figure 1 - Energy Consumption by Sector Figure 2 - Electric Power Generation by

Primary Energy Source

Coal

9.7%

Petroleum

0.4%

Natural Gas

37.6%

Other Gases

0.2%

Nuclear

49.6% Other

Renewables

1.3% Other3

0.9%

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Fuel cell systems have many advantages over other conventional technologies, including:

High fuel-to-electricity efficiency (> 40 percent) utilizing hydrocarbon fuels;

Overall system efficiency of 85 to 93 percent;

Reduction of noise pollution;

Reduction of air pollution;

Often do not require new transmission;

Siting is not controversial; and

If near point of use, waste heat can be captured and used. Combined heat and power (CHP)

systems are more efficient and can reduce facility energy costs over applications that use separate

heat and central station power systems.21

Fuel cells can be deployed as a CHP technology that provides both power and thermal energy, and can

nearly double energy efficiency at a customer site, typically from 35 to 50 percent. The value of CHP

includes reduced transmission and distribution costs, reduced fuel use and associated emissions.22

Based

on the targets identified within this plan, there is the potential to develop at least approximately 305 MWs

of stationary fuel cell generation capacity in New Jersey, which would provide the following benefits,

annually:

Production of approximately 2.30 million MWh of electricity

Production of approximately 6.20 million MMBTUs of thermal energy

Reduction of CO2 emissions of approximately 304,000 tons (electric generation only)23

For the purpose of this plan, potential applications have been explored with a focus on fuel cells that have

a capacity between 300 kW to 400 kW. However, smaller fuel cells are potentially viable for specific

applications. Facilities that have electrical and thermal requirements that closely match the output of the

fuel cells potentially provide the best opportunity for the application of a fuel cell. Facilities that may be

good candidates for the application of a fuel cell include commercial buildings with potentially high

electricity consumption, selected government buildings, public works facilities, and energy intensive

industries.

Commercial building types with high electricity consumption have been identified as potential locations

for on-site generation and CHP application based on data from the Energy Information Administration’s

(EIA) Commercial Building Energy Consumption Survey (CBECS). These selected building types

making up the CBECS subcategory within the commercial industry include:

Education

Food Sales

Food Services

Inpatient Healthcare

Lodging

Public Order & Safety24

21 FuelCell2000, “Fuel Cell Basics”, www.fuelcells.org/basics/apps.html, July, 2011 22 “Distributed Generation Market Potential: 2004 Update Connecticut and Southwest Connecticut”, ISE, Joel M. Rinebold,

ECSU, March 15, 2004 23 Replacement of conventional fossil fuel generating capacity with methane fuel cells could reduce carbon dioxide (CO2)

emissions by between approximately 100 and 600 lb/MWh: U.S. Environmental Protection Agency (EPA), eGRID2010 Version

1.1 Year 2007 GHG Annual Output Emission Rates, Annual non-baseload output emission rates (NPCC New England), FuelCell

Energy, DFC 300 Product sheet, http://www.fuelcellenergy.com/files/FCE%20300%20Product%20Sheet-lo-rez%20FINAL.pdf,

UTC Power, PureCell Model 400 System Performance Characteristics, http://www.utcpower.com/products/purecell400

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The commercial building types identified above represent top principal building activity classifications

that reported the highest value for electricity consumption on a per building basis and have a potentially

high load factor for the application of CHP. Appendix II further defines New Jersey’s estimated electrical

consumption for each sector. As illustrated in Figure 3, these selected building types within the

commercial sector is estimated to account for approximately 16 percent of New Jersey’s total electrical

consumption. Graphical representation of potential targets analyzed are depicted in Appendix I.

Figure 3 – New Jersey Electrical Consumption per Sector

Education

There are approximately 1,297 non-public schools and 2,481 public schools (497 of which are considered

high schools) in New Jersey.25,26

High schools operate for a longer period of time daily due to

extracurricular after school activities, such as clubs and athletics. Furthermore, seven of these schools

have swimming pools, which may make these sites especially attractive because it would increase the

utilization of both the electrical and thermal output offered by a fuel cell. There are also 279 colleges and

universities in New Jersey. Colleges and universities have facilities for students, faculty, administration,

and maintenance crews that typically include dormitories, cafeterias, gyms, libraries, and athletic

departments – some with swimming pools. All 563 of these locations (497 high schools and 66 colleges),

are located in communities serviced by natural gas (Appendix I – Figure 1: Education).

Educational establishments in other states such as Connecticut and New York have shown interest in fuel

cell technology. Examples of existing or planned fuel cell applications include South Windsor High

School (CT), Liverpool High School (NY), Rochester Institute of Technology, Yale University,

University of Connecticut, and the State University of New York College of Environmental Science and

Forestry.

24

As defined by CBECS, Public Order & Safety facilities are: buildings used for the preservation of law and order or public

safety. Although these sites are usually described as government facilities they are referred to as commercial buildings because

their similarities in energy usage with the other building sites making up the CBECS data. 25 EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html 26 Public schools are classified as magnets, charters, alternative schools and special facilities

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Table 2 - Education Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

3,778

(21)

563

(26)

73

(10)

21.9

(10)

172,660

(10)

465,030

(10)

22,791

(5)

Food Sales

There are over 10,000 businesses in New Jersey known to be engaged in the retail sale of food. Food

sales establishments are potentially good candidates for fuel cells based on their electrical demand and

thermal requirements for heating and refrigeration. Approximately 311 of these sites are considered

larger food sales businesses with approximately 60 or more employees at their site. 27

All 311 of these

large food sales businesses are located in communities serviced by natural gas (Appendix I – Figure 2:

Food Sales). 28

The application of a large fuel cell (>300 kW) at a small convenience store may not be

economically viable based on the electric demand and operational requirements; however, a smaller fuel

cell may be appropriate.

Popular grocery chains such as Price Chopper, Supervalu, Wholefoods, and Stop and Shop have shown

interest in powering their stores with fuel cells in Massachusetts, Connecticut, and New Jersey.29

In

addition, grocery distribution centers, like the one operated by Restaurant Depot in Secaucus, New Jersey,

and the CVS’s distribution center located in Lumberton, New Jersey, are prime targets for the application

of hydrogen and fuel cell technology for both stationary power and material handling equipment.

Table 3 - Food Sales Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

10,000

(19)

311

(26)

311

(26)

93.3

(26)

735,577

(26)

1,981,155

(26)

97,096

(15)

Food Service

There are over 13,000 businesses in New Jersey that can be classified as food service establishments used

for the preparation and sale of food and beverages for consumption.30

Approximately 79 of these sites are

considered larger restaurant businesses with approximately 130 or more employees at their site and are

located in communities serviced by natural gas (Appendix I – Figure 3: Food Services).31

The application

of a large fuel cell (>300 kW) at smaller restaurants with less than 130 workers may not be economically

viable based on the electric demand and operational requirements; however, a smaller fuel cell ( 5 kW)

may be appropriate to meet hot water and space heating requirements. A significant portion (18 percent)

of the energy consumed in a commercial food service operation can be attributed to the domestic hot

water heating load.32

In other parts of the U.S., popular chains, such as McDonalds, are beginning to show

27

On average, food sale facilities consume 43,000 kWh of electricity per worker on an annual basis. When compared to current

fuel cell technology (>300 kW), which satisfies annual electricity consumption loads between 2,628,000 – 3,504,000 kWh,

calculations show food sales facilities employing more than 61 workers may represent favorable opportunities for the application

of a larger fuel cell. 28 EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html 29 Clean Energy States Alliance (CESA), “Fuel Cells for Supermarkets – Cleaner Energy with Fuel Cell Combined Heat and

Power Systems”, Benny Smith, www.cleanenergystates.org/assets/Uploads/BlakeFuelCellsSupermarketsFB.pdf 30 EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html 31

On average, food service facilities consume 20,300 kWh of electricity per worker on an annual basis. Current fuel cell

technology (>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculations show

food service facilities employing more than 130 workers may represent favorable opportunities for the application of a larger fuel

cell. 32

“Case Studies in Restaurant Water Heating”, Fisher, Donald, http://eec.ucdavis.edu/ACEEE/2008/data/papers/9_243.pdf, 2008

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an interest in the smaller sized fuel cell units for the provision of electricity and thermal energy, including

domestic water heating at food service establishments.33

Table 4 - Food Services Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

13,000

(20)

79

(20)

79

(20)

23.7

(20)

186,851

(20)

503,251

(20)

24,664

(8)

Inpatient Healthcare

There are over 800 inpatient healthcare facilities in New Jersey; 104 of which are classified as hospitals.34

Of these 104 locations, 81 are located in communities serviced by natural gas and contain 100 or more

beds onsite (Appendix I – Figure 4: Inpatient Healthcare). Hospitals represent an excellent opportunity

for the application of fuel cells because they require a high availability factor of electricity for lifesaving

medical devices and operate 24/7 with a relatively flat load curve. Furthermore, medical equipment,

patient rooms, sterilized/operating rooms, data centers, and kitchen areas within these facilities are often

required to be in operational conditions at all times which maximizes the use of electricity and thermal

energy from a fuel cell. Nationally, hospital energy costs have increased 56 percent from $3.89 per

square foot in 2003 to $6.07 per square foot for 2010, partially due to the increased cost of energy.35

Examples of healthcare facilities with planned or operational fuel cells include St. Francis, Stamford, and

Waterbury hospitals in Connecticut, and North Central Bronx Hospital in New York.

Table 5 - Inpatient Healthcare Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

822

(21)

81

(20)

81

(20)

24.3

(20)

191,581

(20)

515,992

(20)

25,289

(11)

33

Sustainable business Oregon, “ClearEdge sustains brisk growth”,

http://www.sustainablebusinessoregon.com/articles/2010/01/clearedge_sustains_brisk_growth.html, May 8, 2011 34 EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html 35

BetterBricks, “http://www.betterbricks.com/graphics/assets/documents/BB_Article_EthicalandBusinessCase.pdf”, Page 1,

August 2011

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Office

Equipment, 4% Ventilation, 4%

Refrigeration, 3%

Lighting, 11%

Cooling, 13%

Space Heating ,

33%

Water Heating ,

18%

Cooking, 5% Other, 9%

Lodging

There are over 1,153 establishments

specializing in travel/lodging accommodations

that include hotels, motels, or inns in New Jersey.

Approximately 166 of these establishments have

150 or more rooms onsite, and can be classified as

“larger sized” lodging that may have additional

attributes, such as heated pools, exercise facilities,

and/or restaurants. 36

Of these 166 locations, 104

employ more than 94 workers and are located in

communities serviced by natural gas. 37

As shown

in Figure 4, more than 60 percent of total energy

use at a typical lodging facility is due to lighting,

space heating, and water heating. 38

The

application of a large fuel cell (>300 kW) at

hotel/resort facilities with less than 94 employees

may not be economically viable based on the

electrical demand and operational requirement;

however, a smaller fuel cell ( 5 kW) may be

appropriate.

Atlantic City is considered the second largest

commercial gaming center in the U.S., where casinos and gaming overlap with the hotel and lodging

industry. Hotel and entertainment companies are seeing the most revenue opportunities from the

expansion of retail facilities, resort residential development, theme parks, and spas. An example of this

model for new resort facilities is the Atlantic City’s Marina District, Borgata Hotel Casino and Spa.39

New Jersey also has 358 facilities identified as convalescent homes, 142 of which have bed capacities

greater than, or equal to 150 units and are located in communities serviced by natural gas (Appendix I –

Figure 5: Lodging). 40

Table 6 - Lodging Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

1,511

(19)

246

(28)

246

(28)

6.6

(28)

52,034

(28)

140,146

(28)

76,803

(16)

Public Order and Safety

There are approximately 860 facilities in New Jersey that can be classified as public order and safety,

which includes 347 fire stations, 486 police stations, 14 state police stations, and 13 prisons. 41,42

36 EPA, “CHP in the Hotel and Casino Market Sector”, www.epa.gov/chp/documents/hotel_casino_analysis.pdf, December, 2005 37

On average lodging facilities consume 28,000 kWh of electricity per worker on an annual basis. Current fuel cell technology

(>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculations show lodging

facilities employing more than 94 workers may represent favorable opportunities for the application of a larger fuel cell. 38 National Grid, “Managing Energy Costs in Full-Service Hotels”,

www.nationalgridus.com/non_html/shared_energyeff_hotels.pdf, 2004 39

EPA, “CHP in the Hotel and Casino Market Sector”, http://www.epa.gov/chp/documents/hotel_casino_analysis.pdf,

December, 2005 40 Assisted-Living-List, “List of 360 Nursing Homes in New Jersey (NJ)”, http://assisted-living-list.com/nj--nursing-homes/,

October, 2011 41 EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html

Figure 4 - U.S. Lodging, Energy Consumption

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Approximately 35 of these locations employ more than 210 workers and are located in communities

serviced by natural gas.43,44

These applications may represent favorable opportunities for the application

of a larger fuel cell (>300 kW), which could provide heat and uninterrupted power.,45

The sites identified

(Appendix I – Figure 6: Public Order and Safety) will have special value to provide increased reliability to

mission critical facilities associated with public safety and emergency response during grid outages. The

application of a large fuel cell (>300 kW) at public order and safety facilities with less than 210

employees may not be economically viable based on the electrical demand and operational requirement;

however, a smaller fuel cell ( 5 kW) may be appropriate. Central Park Police Station in New York City,

New York is presently powered by a 200 kW fuel cell system.

Table 7 - Public Order and Safety Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

860

(26)

35

(11)

35

(11)

10.5

(11)

82,782

(11)

222,960

(11)

10,927

(6)

Energy Intensive Industries

As shown in Table 3, energy intensive industries with high electricity consumption (which on average is

4.8 percent of annual operating costs) have been identified as potential locations for the application of a

fuel cell.46

In New Jersey, there are approximately 1,207 of these industrial facilities that are involved in

the manufacture of aluminum, chemicals, forest products, glass, metal casting, petroleum, coal products

or steel and employ 25 or more employees.47

All 1,207 locations are located in communities serviced by

natural gas. (Appendix I – Figure 7: Energy Intensive Industries)

Table 8 - 2002 Data for the Energy Intensive Industry by Sector48

NAICS Code Sector Energy Consumption per Dollar Value of Shipments (kWh)

325 Chemical manufacturing 2.49

322 Pulp and Paper 4.46

324110 Petroleum Refining 4.72

311 Food manufacturing 0.76

331111 Iron and steel 8.15

321 Wood Products 1.23

3313 Alumina and aluminum 3.58

327310 Cement 16.41

33611 Motor vehicle manufacturing 0.21

3315 Metal casting 1.64

336811 Shipbuilding and ship repair 2.05

3363 Motor vehicle parts manufacturing 2.05

42 USACOPS – The Nations Law Enforcement Site, www.usacops.com/me/ 43

CBECS,“Table C14”, http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set19/2003pdf/alltables.pdf,

November, 2011 44

On average public order and safety facilities consume 12,400 kWh of electricity per worker on an annual basis. Current fuel

cell technology (>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculations

show public order and safety facilities employing more than 212 workers may represent favorable opportunities for the

application of a larger fuel cell. 45

CBECS,“Table C14”, http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set19/2003pdf/alltables.pdf,

November, 2011 46 EIA, “Electricity Generation Capability”, 1999 CBECS, www.eia.doe.gov/emeu/cbecs/pba99/comparegener.html 47 Proprietary market data 48 EPA, “Energy Trends in Selected Manufacturing Sectors”, www.epa.gov/sectors/pdf/energy/ch2.pdf, March 2007

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Companies such as Coca-Cola, Johnson & Johnson, and Pepperidge Farms in Connecticut, New Jersey,

and New York have installed fuel cells to help supply energy to their facilities.

Table 9 - Energy Intensive Industry Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

1,207

(25)

121

(28)

121

(28)

36.3

(28)

286,189

(28)

770,803

(28)

37,777

(17)

Government Owned Buildings

Buildings operated by the federal government can be found at 181 locations in New Jersey;

approximately 11 of these properties are actively owned, rather than leased, by the federal government

and are located in communities serviced by natural gas (Appendix I – Figure 8: Federal Government

Operated Buildings). There are also a number of buildings owned and operated by the State of New

Jersey. The application of fuel cell technology at government owned buildings would assist in balancing

load requirements at these sites and offer a unique value for active and passive public education

associated with the high usage of these public buildings.

Table 10 - Government Owned Building Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

181

(14)

11

(12)

11

(12)

3.3

(12)

26,017

(12)

70,073

(12)

3,434

(7)

Wireless Telecommunication Sites

Telecommunications companies rely on electricity to run call centers, cell phone towers, and other vital

equipment. In New Jersey, there are more than 598 telecommunications and/or wireless company tower

sites (Appendix I – Figure 9: Telecommunication Sites). Any loss of power at these locations may result

in a loss of service to customers; thus, having reliable power is critical. Each individual site represents an

opportunity to provide back-up power for continuous operation through the application of on-site back-up

generation powered by hydrogen and fuel cell technology. It is an industry standard to install units

capable of supplying 48-72 hours of back-up power, which is typically accomplished with batteries or

conventional emergency generators.49

The deployment of fuel cells at selected telecommunication sites

will have special value to provide increased reliability to critical sites associated with emergency

communications and homeland security. An example of a telecommunication site that utilizes fuel cell

technology to provide back-up power is a T-Mobile facility located in Storrs, Connecticut.

Table 11 -Wireless Telecommunication Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

598

(15)

60

(15) N/A N/A N/A N/A N/A

Wastewater Treatment Plants (WWTPs) There are 51 WWTPs in New Jersey that have design flows ranging from 12,000 gallons per day (GPD)

to 124 million gallons per day (MGD); 18 of these facilities average between 3 – 124 MGD. WWTPs

typically operate 24/7 and may be able to utilize the thermal energy from the fuel cell to process fats, oils,

49 ReliOn, Hydrogen Fuel Cell: Wireless Applications”, www.relion-inc.com/pdf/ReliOn_AppsWireless_2010.pdf, May 4, 2011

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and grease.50

WWTPs account for approximately three percent of the electric load in the United State.51

Digester gas produced at WWTP’s, which is usually 60 percent methane, can serve as a fuel substitute for

natural gas to power fuel cells. Anaerobic digesters generally require a wastewater flow greater than

three MGD for an economy of scale to collect and use the methane.52

Most facilities currently represent a

lost opportunity to capture and use the digestion of methane emissions created from their operations. 53,54

(Appendix I – Figure 10: Solid and Liquid Waste Sites)

A 200 kW fuel cell power plant in Yonkers, New York, was the world’s first commercial fuel cell to run

on a waste gas created at a wastewater treatment plant. The fuel cell generates about 1,600 MWh of

electricity a year, and reduces methane emissions released to the environment.55

A 200 kW fuel cell

power plant was also installed at the Water Pollution Control Authority’s WWTP in New Haven,

Connecticut, and produces 10 – 15 percent of the facility’s electricity, reducing energy costs by almost

$13,000 a year.56

Table 12 - Wastewater Treatment Plant Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

51

(9)

2

(13)

2

(13)

0.6

(13)

4,730

(13)

12,741

(13)

624

(7)

Landfill Methane Outreach Program (LMOP) There are 21 landfills in New Jersey identified by the Environmental Protection Agency (EPA) through

their LMOP program: 15 of which are operational, three are candidates, and four are considered potential

sites for the production and recovery of methane gas. 57,58

The amount of methane emissions released by a

given site is dependent upon the amount of material in the landfill and the amount of time the material has

been in place. Similar to WWTPs, methane emissions from landfills could be captured and used as a fuel

to power a fuel cell system. In 2009, municipal solid waste (MSW) landfills were responsible for

producing approximately 17 percent of human-related methane emissions in the nation. These locations

could produce renewable energy and help manage the release of methane. (Appendix I – Figure 10: Solid

and Liquid Waste Sites).

Table 13 - Landfill Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

21

(10)

1

(7)

1

(7)

0.3

(7)

2,365

(7)

6,370

(7)

312

(4)

Airports

50

“Beyond Zero Net Energy: Case Studies of Wastewater Treatment for Energy and Resource Production”, Toffey, Bill,

September 2010, http://www.awra-pmas.memberlodge.org/Resources/Documents/Beyond_NZE_WWT-Toffey-9-16-2010.pdf 51

EPA, Wastewater Management Fact Sheet, “Introduction”, July, 2006 52 EPA, Wastewater Management Fact Sheet, www.p2pays.org/energy/WastePlant.pdf, July, 2006 53 “GHG Emissions from Wastewater Treatment and Biosolids Management”, Beecher, Ned, November 20, 2009,

www.des.state.nh.us/organization/divisions/water/wmb/rivers/watershed_conference/documents/2009_fri_climate_2.pdf 54 EPA, Wastewater Management Fact Sheet, www.p2pays.org/energy/WastePlant.pdf, May 4, 2011 55 NYPA, “WHAT WE DO – Fuel Cells”, www.nypa.gov/services/fuelcells.htm, August 8, 2011 56

Conntact.com, “City to Install Fuel Cell”, http://www.conntact.com/archive_index/archive_pages/4472_Business_New_Haven.html, August 15, 2003 57

Due to size, individual sites may have more than one potential, candidate, or operational project. 58 LMOP defines a candidate landfill as “one that is accepting waste or has been closed for five years or less, has at least one

million tons of waste, and does not have an operational or, under-construction project.”EPA, “Landfill Methane Outreach

Program”, www.epa.gov/lmop/basic-info/index.html, April 7, 2011

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During peak air travel times in the U.S., there are approximately 50,000 airplanes in the sky each day.

Ensuring safe operations of commercial and private aircrafts are the responsibility of air traffic

controllers. Modern software, host computers, voice communication systems, and instituted full scale

glide path angle capabilities assist air traffic controllers in tracking and communicating with aircrafts;59

consequently, reliable electricity is extremely important.

There are approximately 118 airports in New Jersey, including 49 that are open to the public and have

scheduled services. Of those 49 airports, three (Table 3) have 2,500 or more passengers enplaned each

year and are located in communities serviced by natural gas. (See Appendix I – Figure 11: Commercial

Airports). An example, of an airport currently hosting a fuel cell power plant to provide backup power is

Albany International Airport located in Albany, New York.

Table 14 – New Jersey Top Airports' Enplanement Count

Airport60

Total Enplanement in 2000

Newark International 17,212,226

Atlantic City International 429,788

Trenton Mercer 77,466

Atlantic City International (ACY), Trenton Mercer (TTN), and Woodbine Municipal (OBI) Airports are

facilities where the military department authorizes use of the military runway for public airport services.

Army Aviation Support Facilities (AASF), located at these sites are used by the Army to provide aircraft

and equipment readiness, train and utilize military personnel, conduct flight training and operations, and

perform field level maintenance. Atlantic City International (ACY), Trenton Mercer (TTN), and

Woodbine Municipal (OBI) may represent favorable opportunities for the application of uninterruptible

power for necessary services associated with national defense and emergency response. Furthermore, all

of these sites are located in communities serviced by natural gas (Appendix I – Figure 11: Commercial

Airports).

Table 15 - Airport Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

101

(12)

4(3)

(1)

4

(1)

1.2

(1)

9,461

(1)

25,481

(1)

1,249

(8)

59 Howstuffworks.com, “How Air Traffic Control Works”, Craig, Freudenrich,

http://science.howstuffworks.com/transport/flight/modern/air-traffic-control5.htm, May 4, 2011 60 Bureau of Transportation Statistics, “New Jersey Transportation Profile”,

www.bts.gov/publications/state_transportation_statistics/new_Jersey/pdf/entire.pdf, October, 2011

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Military The U.S. Department of Defense (DOD) is the largest funding organization in terms of supporting fuel

cell activities for military applications in the world. DOD is using fuel cells for:

Stationary units for power supply in bases.

Fuel cell units in transport applications.

Portable units for equipping individual soldiers or group of soldiers.

In a collaborative partnership with the DOE, the DOD plans to install and operate 18 fuel cell backup

power systems at eight of its military installations, two of which are located within the Northeast region

(New Jersey and New Jersey). In addition, Fort Dix, McGuire Air Force Base (AFB), Naval Air

Engineering Station (NAES), Naval Weapons Station (NWS) Earle and Picatinny Arsenal, all in New

Jersey, are potential sites for the application of hydrogen and fuel cell technology.61

Table 16 - Military Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

5

(36)

5

(36)

5

(36)

1.5

(36)

11,826

(36)

31,851

(36)

1,561

(22)

61

Naval Submarine Base New London, “New London Acreage and Buildings”,

http://www.cnic.navy.mil/NewLondon/About/AcreageandBuildings/index.htm, September 2011

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POTENTIAL TRANSPORTATION TARGETS

Transportation is responsible for one-fourth of the total global GHG emissions and consumes 75 percent

of the world’s oil production. In 2010, the U.S. used 21 million barrels of non-renewable petroleum each

day. Roughly 29 percent of New Jersey’s energy consumption is due to demands of the transportation

sector, including gasoline and on-highway diesel petroleum for automobiles, cars, trucks, and buses. A

small percent of non-renewable petroleum is used for jet and ship fuel.62

The current economy in the U.S. is dependent on hydrocarbon energy sources and any disruption or

shortage of this energy supply will severely affect many energy related activities, including

transportation. As oil and other non-sustainable hydrocarbon energy resources become scarce, energy

prices will increase and the reliability of supply will be reduced. Government and industry are now

investigating the use of hydrogen and renewable energy as a replacement of hydrocarbon fuels.

Hydrogen-fueled fuel cell electric vehicles (FCEVs) have many advantages over conventional

technology, including:

Quiet operation;

Near zero emissions of controlled pollutants such as nitrous oxide, carbon monoxide,

hydrocarbon gases or particulates;

Substantial (30 to 50 percent) reduction in GHG emissions on a well-to-wheel basis compared to

conventional gasoline or gasoline-hybrid vehicles when the hydrogen is produced by

conventional methods such as natural gas; and 100 percent when hydrogen is produced from a

clean energy source;

Ability to fuel vehicles with indigenous energy sources which reduces dependence on imported

energy and adds to energy security; and

Higher efficiency than conventional vehicles (See Table 4).63,64

Table 17 - Average Energy Efficiency of Conventional and Fuel Cell Vehicles (mpge65

)

Passenger Car Light Truck Transit Bus

Hydrogen Gasoline Hybrid Gasoline Hydrogen Gasoline Hydrogen Fuel Cell Diesel

52 50 29.3 49.2 21.5 5.4 3.9

FCEVs can reduce price volatility, dependence on oil, improve environmental performance, and provide

greater efficiencies than conventional transportation technologies, as follows:

Replacement of gasoline-fueled passenger vehicles and light duty trucks, and diesel-fueled transit

buses with FCEVs could result in annual CO2 emission reductions (per vehicle) of approximately

10,170, 15,770, and 182,984 pounds per year, respectively.66

62 “US Oil Consumption to BP Spill”, http://applesfromoranges.com/2010/05/us-oil-consumption-to-bp-spill/, May31, 2010 63 “Challenges for Sustainable Mobility and Development of Fuel Cell Vehicles”, Masatami Takimoto, Executive Vice President,

Toyota Motor Corporation, January 26, 2006. Presentation at the 2nd International Hydrogen & Fuel Cell Expo Technical

Conference Tokyo, Japan 64 “Twenty Hydrogen Myths”, Amory B. Lovins, Rocky Mountain Institute, June 20, 2003 65 Miles per Gallon Equivalent 66 Fuel Cell Economic Development Plan, Connecticut Department of Economic and Community Development and the

Connecticut Center for Advanced Technology, Inc, January 1, 2008, Calculations based upon average annual mileage of 12,500

miles for passenger car and 14,000 miles for light trucks (U.S. EPA) and 37,000 average miles/year per bus (U.S. DOT FTA,

2007)

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Replacement of gasoline-fueled passenger vehicles and light duty trucks, and diesel-fueled transit

buses with FCEVs could result in annual energy savings (per vehicle) of approximately 230

gallons of gasoline (passenger vehicle), 485 gallons of gasoline (light duty truck) and 4,390

gallons of diesel (bus).

Replacement of gasoline-fueled passenger vehicles, light duty trucks, and diesel-fueled transit

buses with FCEVs could result in annual fuel cost savings of approximately $885 per passenger

vehicle, $1,866 per light duty truck, and $17,560 per bus.67

Automobile manufacturers such as Toyota, General Motors, Honda, Daimler AG, and Hyundai have

projected that models of their FCEVs will begin to roll out in larger numbers by 2015. Longer term, the

U.S. DOE has projected that between 15.1 million and 23.9 million light duty FCEVs may be sold each

year by 2050 and between 144 million and 347 million light duty FCEVs may be in use by 2050 with a

transition to a hydrogen economy. These estimates could be accelerated if political, economic, energy

security or environmental polices prompt a rapid advancement in alternative fuels.68

Strategic targets for the application of hydrogen for transportation include alternative fueling stations;

New Jersey Department of Transportation (NJDOT) refueling stations; bus transits operations;

government, public, and privately owned fleets; and material handling and airport ground support

equipment (GSE). Graphical representation of potential targets analyzed are depicted in Appendix I.

Alternative Fueling Stations

There are approximately 3,300 retail fuel stations in New Jersey;69

however, only 44 public and/or private

stations within the state provide alternative fuels, such as biodiesel, compressed natural gas, propane,

ethanol, and/or electricity for alternative-fueled vehicles.70

There are also at least 60 fuel dispensing

stations owned and operated by NJDOT that can be used by authorities operating federal and state safety

vehicles, state transit vehicles, and employees of universities that operate fleet vehicles on a regular basis.

71 Implementation of hydrogen fueling at alternative fuel stations and at selected locations owned and

operated by NJDOT would help facilitate the deployment of FCEVs within the state (See Appendix I –

Figure 12: Alternative Fueling Stations).

Currently, there are no publicly or privately accessible transportation fueling stations where hydrogen is

provided as an alternative fuel in New Jersey. However, there are approximately 16 existing or planned

transportation fueling stations in the Northeast region where hydrogen is provided as an alternative

fuel.72,73,74

67 U.S. EIA, Weekly Retail Gasoline and Diesel Prices: gasoline - $3.847 and diesel – 4.00,

www.eia.gov/dnav/pet/pet_pri_gnd_a_epm0r_pte_dpgal_w.htm 68

Effects of a Transition to a Hydrogen Economy on Employment in the United States: Report to Congress,

http://www.hydrogen.energy.gov/congress_reports.html, August 2011 69 “Public retail gasoline stations state year” www.afdc.energy.gov/afdc/data/docs/gasoline_stations_state.xls, May 5, 2011 70 Alternative Fuels Data Center, www.afdc.energy.gov/afdc/locator/stations/ 71 EPA, “Government UST Noncompliance Report-2007”, www.epa.gov/oust/docs/ME%20Compliance%20Report.pdf, August

8,2007 72 Alternative Fuels Data Center, http://www.afdc.energy.gov/afdc/locator/stations/ 73 Hyride, “About the fueling station”, http://www.hyride.org/html-about_hyride/About_Fueling.html 74 CTTransit, “Hartford Bus Facility Site Work (Phase 1)”,

www.cttransit.com/Procurements/Display.asp?ProcurementID={8752CA67-AB1F-4D88-BCEC-4B82AC8A2542}, March, 2011

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Fleets

There are over 13,000 fleet vehicles (excluding state and federal vehicles) classified as non-leasing or

company owned vehicles in New Jersey. 75

Fleet vehicles typically account for more than twice the

amount of mileage, and therefore twice the fuel consumption and emissions, compared to personal

vehicles on a per vehicle basis. There is an additional 12,409 passenger automobiles and/or light duty

trucks in New Jersey, owned by state and federal agencies (excluding state police) that traveled a

combined 95,820,256 miles in 2010, while releasing 7,764 metrics tons of CO2. 76

Conversion of fleet

vehicles from conventional fossil fuels to FCEVs could significantly reduce petroleum consumption and

GHG emissions. Fleet vehicle hubs may be good candidates for hydrogen refueling and conversion to

FCEVs because they mostly operate on fixed routes or within fixed districts and are fueled from a

centralized station.

Bus Transit

There are approximately 3,250 directly operated buses that provide public transportation services in New

Jersey operated across 13 companies located within the State.77

As discussed above, replacement of a

conventional diesel transit bus with fuel cell transit bus would result in the reduction of CO2 emissions

(estimated at approximately 183,000 pounds per year), and reduction of diesel fuel (estimated at

approximately 4,390 gallons per year).78

Although the efficiency of conventional diesel buses has

increased, conventional diesel buses, which typically achieve fuel economy performance levels of 3.9

miles per gallon, have the greatest potential for energy savings by using high efficiency fuel cells. Other

state have also begun the transition of fueling transit buses with alternative fuels such as hydrogen and

natural gas to improve efficiency and environmental performance.

Material Handling

Material handling equipment such as forklifts are used by a variety of industries, including

manufacturing, construction, mining, agriculture, food, retailers, and wholesale trade to move goods

within a facility or to load goods for shipping to another site. Material handling equipment is usually

battery, propane or diesel powered. Batteries that currently power material handling equipment are heavy

and take up significant storage space while only providing up to 6 hours of run time. Fuel cells can

ensure constant power delivery and performance, eliminating the reduction in voltage output that occurs

as batteries discharge. Fuel cell powered material handling equipment last more than twice as long (12-

14 hours) and also eliminate the need for battery storage and charging rooms, leaving more space for

products. In addition, fueling time only takes two to three minutes by the operator compared to least 20

minutes or more for each battery replacement (assuming one is available), which saves the operator

valuable time and increases warehouse productivity.

In addition, fuel cell powered material handling equipment has significant cost advantages, compared to

batteries, such as:

1.5 times lower maintenance cost;

8 times lower refueling/recharging labor cost;

2 times lower net present value of total operations and management (O&M) system cost; and

75

Fleet.com, “2009-My Registration”, http://www.automotive-

fleet.com/Statistics/StatsViewer.aspx?file=http%3a%2f%2fwww.automotive-fleet.com%2ffc_resources%2fstats%2fAFFB10-16-

top10-state.pdf&channel 76 U.S. General Services Administration, “GSA 2010 2010 Fleet Reports”, Table 4-2, 77

NTD Date, “TS2.2 - Service Data and Operating Expenses Time-Series by System”,

http://www.ntdprogram.gov/ntdprogram/data.htm, December 2011 78 Fuel Cell Economic Development Plan, Connecticut Department of Economic and Community Development and the

Connecticut Center for Advanced Technology, Inc, January 1, 2008.

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63 percent less emissions of GHG. Appendix IX provides a comparison of PEM fuel cell and

battery-powered material handling equipment.

Fuel cell powered material handling equipment is already in use at dozens of warehouses, distribution

centers, and manufacturing plants in North America.79

Large corporations that are currently using or

planning to use fuel cell powered material handling equipment include CVS, Coca-Cola, BMW, Central

Grocers, and Wal-Mart. (Refer to Appendix VIII for a partial list of companies in North America that use

fuel cell powered forklifts).80

There are approximately 82 distribution centers/warehouse sites that have

been identified in New Jersey that may benefit from the use of fuel cell powered material handling

equipment (Appendix I – Figure 13: Distribution Centers/Warehouses).

Ground Support Equipment

Ground support equipment (GSE) such as catering trucks, deicers, and airport tugs can be battery

operated or more commonly run on diesel or gasoline. As an alternative, hydrogen-powered tugs are

being developed for both military and commercial applications. While their performance is similar to that

of other battery-powered equipment, a fuel cell-powered GSE remains fully charged (provided there is

hydrogen fuel available) and do not experience performance lag at the end of a shift like battery-powered

GSEs.81

Potential large end-users of GSE that serve New Jersey’s largest airports include Air Canada,

Delta Airlines, Continental, JetBlue, United, and US Airways (Appendix I – Figure 11: Commercial

Airports). 82

Ports

Ports in New York/New Jersey, Elizabeth, and Perth Amboy, which service large vessels, such as

container ships, tankers, bulk carriers, and cruise ships, may be candidates for improved energy

management. The Port of New York/New Jersey handles cargo such as, roll on-roll off automobiles,

liquid and dry bulk, break-bulk and specialized project cargo.83

With a daily average of 9,799 in twenty-

foot equivalent units (TEU), the Port of New York/New Jersey ranked 22nd

on the list of the world’s top

container ports and 3rd

in the United States.84

In one year, a single large container ship can emit pollutants equivalent to that of 50 million cars. The

low grade bunker fuel used by the worlds 90,000 cargo ships contains up to 2,000 times the amount of

sulfur compared to diesel fuel used in automobiles.85

While docked, vessels shut off their main engines

but use auxiliary diesel and steam engines to power refrigeration, lights, pumps, and other functions, a

process called “cold-ironing.” An estimated one-third of ship emissions occur while they are idling at

berth. Replacing auxiliary engines with on-shore electric power could significantly reduce emissions.

The applications of fuel cell technology at ports may also provide electrical and thermal energy for

improving energy management at warehouses, and equipment operated between terminals (Appendix I –

Figure 13: Distribution Centers/Warehouses & Ports).86

79 DOE EERE, “Early Markets: Fuel Cells for Material Handling Equipment”,

www1.eere.energy.gov/hydrogenandfuelcells/education/pdfs/early_markets_forklifts.pdf, February 2011 80 Plug Power, “Plug Power Celebrates Successful year for Company’s Manufacturing and Sales Activity”,

www.plugpower.com, January 4, 2011 81 Battelle, “Identification and Characterization of Near-Term Direct Hydrogen Proton Exchange Membrane Fuel Cell Markets”,

April 2007, www1.eere.energy.gov/hydrogenandfuelcells/pdfs/pemfc_econ_2006_report_final_0407.pdf 82 PWM, “Airlines”, http://www.portlandjetport.org/airlines, August 24, 2011 83

Panynj.gov/port, http://www.panynj.gov/port/, September 2011 84

Bts.gov, “America’s Container Ports, Page 17”,

http://www.bts.gov/publications/americas_container_ports/2011/pdf/entire.pdf, January, 2011 85

“Big polluters: one massive container ship equals 50 million cars”, Paul, Evans; http://www.gizmag.com/shipping-

pollution/11526/, April 23,2009 86

Savemayportvillage.net, “Cruise Ship Pollution”, http://www.savemayportvillage.net/id20.html, October, 2011

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Table 18 - Ports Data Breakdown

State Total

Sites

Potential

Sites

FC Units

(300 Kw) MWs

MWhrs

(per year)

Thermal Output

(MMBTU)

CO2 emissions

(ton per year)

NJ

(% of Region)

13

(11)

5

(26)

5

(26)

1.5

(26)

11,826

(26)

31,851

(26)

1,561

(15)

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CONCLUSION

Hydrogen and fuel cell technology offers significant opportunities for improved energy reliability, energy

efficiency, and emission reductions. Large fuel cell units (>300 kW) may be appropriate for applications

that serve large electric and thermal loads. Smaller fuel cell units (< 300 kW) may provide back-up power

for telecommunication sites, restaurants/fast food outlets, and smaller sized public facilities at this time.

Table 19 –Summary of Potential Fuel Cell Applications

Category Total Sites Potential

Sites87

Number of Fuel

Cells

< 300 kW

Number of

Fuel Cells

>300 kW

CB

EC

S D

ata

Education 3,778 56388

490 73

Food Sales 10,000+ 31189

311

Food Services 13,000+ 7990

79

Inpatient Healthcare 822 8191

81

Lodging 1,511 24692

246

Public Order & Safety 860 3593

35

Energy Intensive Industries 1,207 12194

121

Government Operated

Buildings 181 11

95

11

Wireless

Telecommunication

Towers

59896

6097

60

WWTPs 51 298

2

Landfills 21 199

1

Airports (w/ AASF) 101 4 (3) 100

4

Military 5 5 5

Ports 13 5 5

Total 32,148 1,524 550 974

As shown in Table 5, the analysis provided here estimates that there are approximately 1,524 potential

locations, which may be favorable candidates for the application of a fuel cell to provide heat and power.

Assuming the demand for electricity was uniform throughout the year, approximately 726 to 974 fuel cell

87 Additional information regarding each identified location is available upon request 88 563 high schools and/or college and universities located in communities serviced by natural gas 89 311 food sale facilities located in communities serviced by natural gas 90 Ten percent of the 1,714 food service facilities located in communities serviced by natural gas 91 81 Hospitals located in communities serviced by natural gas and occupying 100 or more beds onsite 92 160 hotel facilities with 100+ rooms onsite and 142 convalescent homes with 150+ bed onsite located in communities serviced

by natural gas 93 Correctional facilities and/or other public order and safety facilities with 212 workers or more. 94 Ten percent of the 1,207 energy intensive industry facilities located in communities with natural gas. 95 11 actively owned federal government operated building located in communities serviced by natural gas 96

The Federal Communications Commission regulates interstate and international communications by radio, television, wire,

satellite and cable in all 50 states, the District of Columbia and U.S. territories. 97 Ten percent of the 598 wireless telecommunication sites in New Jersey targeted for back-up PEM fuel cell deployment 98 Ten percent of New Jersey WWTP with average flows of 3.0+ MGD 99 Ten percent of the landfills targeted based on LMOP data 100 Airports facilities with 2,500+ annual Enplanement Counts and/or with AASF

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units, with a capacity of 300 – 400 kW, could be deployed for a total fuel cell capacity of 305 to 390

MWs.

If all suggested targets are satisfied by fuel cell(s) installations with 300 kW, a minimum of 2.30 million

MWh electric and 6.20 million MMBTUs (equivalent to 1.82 million MWh) of thermal energy would be

produced, which could reduce CO2 emissions by at least 303,881 tons per year.101

New Jersey can also benefit from the use of hydrogen and fuel cell technology for transportation such as

passenger fleets, transit district fleets, municipal fleets and state department fleets. The application of

hydrogen and fuel cell technology for transportation would reduce the dependence on oil, improve

environmental performance and provide greater efficiencies than conventional transportation

technologies.

• Replacement of a gasoline-fueled passenger vehicle with FCEVs could result in annual CO2

emission reductions (per vehicle) of approximately 10,170 pounds, annual energy savings of 230

gallons of gasoline, and annual fuel cost savings of $885.

• Replacement of a gasoline-fueled light duty truck with FCEVs could result in annual CO2

emission reductions (per light duty truck) of approximately 15,770 pounds, annual energy savings

of 485 gallons of gasoline, and annual fuel cost savings of $1866.

• Replacement of a diesel-fueled transit bus with a fuel cell powered bus could result in annual CO2

emission reductions (per bus) of approximately 182,984 pounds, annual energy savings of 4,390

gallons of fuel, and annual fuel cost savings of $17,560.

Hydrogen and fuel cell technology also provides significant opportunities for job creation and/or

economic development. Realizing over $2 million in revenue and investment in 2010, the hydrogen and

fuel cell industry in New Jersey is estimated to have contributed approximately $113,000 in state and

local tax revenue, and over $2.9 million in gross state product. Currently, there are at least 8 New Jersey

companies that are part of the growing hydrogen and fuel cell industry supply chain in the Northeast

region. If newer/emerging hydrogen and fuel cell technology were to gain momentum, the number of

companies and employment for the industry could grow substantially.

101

If all suggested targets are satisfied by fuel cell(s) installations with 400 kW, a minimum of 3.25 million MWh electric and

15.22 million MMBTUs (equivalent to 4.46 million MWh) of thermal energy would be produced, which could reduce CO2

emissions by at least 428,417 tons per year.

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APPENDICES

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Appendix I – Figure 1: Education

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Appendix I – Figure 2: Food Sales

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Appendix I – Figure 3: Food Services

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Appendix I – Figure 4: Inpatient Healthcare

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Appendix I – Figure 5: Lodging

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Appendix I – Figure 6: Public Order and Safety

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Appendix I – Figure 7: Energy Intensive Industries

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Appendix I – Figure 8: Federal Government Operated Buildings

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Appendix I – Figure 9: Telecommunication Sites

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Appendix I – Figure 10: Municipal Waste Sites

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Appendix I – Figure 11: Commercial Airports

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Appendix I – Figure 12: Alternative Fueling Stations

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Appendix I – Figure 13: Distribution Centers/Warehouses & Ports

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Appendix II – New Jersey Estimated Electrical Consumption per Sector

Category Total Site

Electric Consumption per Building

(1000 kWh)102

kWh Consumed per Sector

Mid Atlantic

Education 3,844 548.529 2,108,545,476

Food Sales 10,000+ 226.142 2,261,420,000

Food Services 13,000+ 121.041 1,573,533,000

Inpatient Healthcare 822 10,472.33 8,608,991,159

Lodging 1,511 457.97 691,991,159

Public Order & Safety 860 243.328 209,262,080

Total 30,037 15,453,010,263

Residential103

29,973,000,000

Industrial 11,862,000,000

Commercial 39,762,000,000

Other Commercial 15,453,010,263

102

EIA, Electricity consumption and expenditure intensities for Non-Mall Building 2003 103

DOE EERE, “Electric Power and Renewable Energy in New Jersey”,

http://apps1.eere.energy.gov/states/electricity.cfm/state=NJ, August 25, 2011

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Appendix III – Key Stakeholders

Organization City/Town State Website

Board of Public Utilities Office of

Energy

Newark NJ http://www.nj.gov/bpu/divisions/energy/

Trenton

New Jersey Clean Cities Rockaway NJ

http://www.njcleancities.org/

BPU Clean Energy Program Newark NJ

http://www.njcleanenergy.com/

Center for Energy, Economic, and

Environmental Policy (CEEEF)

New

Brunswick NJ

http://policy.rutgers.edu/ceeep/

Hydrogen Learning Center New

Brunswick NJ http://policy.rutgers.edu/ceeep/hydrogen/

New Jersey Department of

Environmental Protection Trenton

NJ http://www.state.nj.us/dep/

New Jersey Board of Public Utilities

Office of clean Energy Iselin NJ http://www.njcleanenergy.com/

Utility Companies

Elizabethtown Gas http://www.elizabethtowngas.com/

New Jersey Natural Gas http://www.njng.com/

PSE&G http://www.pseg.com/

South Jersey Gas Co. http://www.southjerseygas.com/

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Appendix IV – New Jersey Hydrogen and Fuel Cell Based Incentives and Programs

Funding Source: New Jersey Societal Benefits Charge (public benefits fund)

Program Title: Edison Innovation Clean Energy Manufacturing Fund (CEMF)

Applicable Energies/Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind,

Biomass, Geothermal Electric, Balance of System Components, Anaerobic Digestion, Tidal

Energy, Wave Energy, Fuel Cells using Renewable Fuels

Summary: CEMF is intended to provide assistance for the manufacturing of energy efficient and

renewable energy products that will assist Class I renewable energy and energy efficiency

technologies in becoming competitive with traditional sources of electric generation.

Restrictions: 50% cost share required; Loans at 2% interest for up to 10 years with three year

deferral of principal repayment.

Timing:

Start Date: May 23, 2011 (most recent solicitation),

Program Budget: $11 million (2011)

Maximum Size: Total (grants and loans): $3.3 million

Grants: $300,000

Loans: $3 million

Requirements: Visit

http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1085&menuid=1287&topid=718&l

evelid=6&midid=1175 for more information

Rebate amount: Varies

Source:

NJ Economic development Authority; “Financing Programs – Edison Innovation CEMF”;

http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1085&menuid=1287&topid=718&l

evelid=6&midid=1175; September, 2011

DSIRE USA; “Edison Innovation Clean Energy Manufacturing Fund – Grants and Loans”;

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ26F&re=1&ee=1; September 2011

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Funding Source: New Jersey Societal Benefits Charge (public benefits fund)

Program Title: Edison Innovation Green Growth Fund Loans (EIGGF)

Applicable Energies/Technologies: Photovoltaics, Landfill Gas, Wind, Biomass, All Products

Integral to the Development of Class I Renewable Energy Technologies, Tidal Energy, Wave

Energy, Fuel Cells using Renewable Fuels

Summary: EIGGF administered by the New Jersey Economic Development Authority, offers loans

to for-profit companies developing Class I renewable energy (as defined under state renewables

portfolio standard) and energy efficiency products. In order to qualify for a loan, the product in

question must have already achieved "proof of concept" and have begun to generate commercial

revenues.

Restrictions: Fixed five-year term; interest rates from 2% - 10%

Timing:

Start Date: May 23, 2011,

Program Budget: $4 million (2011)

Maximum Size: Maximum Loan: $1 million (1:1 cash match required from non-state grants, deeply subordinated

debt or equity)

Performance Grant Conversion (end of loan term): up to 50% of loan amount

Requirements: Visit

http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1454&menuid=1509&topid=718&l

evelid=6&midid=1175 for more information

Rebate amount: Varies; loans from $250,000 - $1 million available

Source:

NJ Economic development Authority; “Financing Programs – Edison Innovation EIGGF”;

http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1454&menuid=1509&topid=718&l

evelid=6&midid=1175; September, 2011

DSIRE USA; “Edison Innovation Green Growth Fund and Loans”;

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ44F&re=1&ee=1;September 2011

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Funding Source: New Jersey Division of Taxation

Program Title: Property Tax Exemption for Renewable Energy Systems

Applicable Energies/Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal

Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric,

Fuel Cells, Geothermal Heat Pumps, Resource Recovery, Tidal Energy, Wave Energy, Fuel

Cells using Renewable Fuels, Geothermal Direct-Use

Summary: In October 2008, New Jersey enacted legislation exempting renewable energy systems

used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes.

Restrictions: In order to claim the exemption, property owners must apply for a certificate from

their local assessor which will reduce the assessed value of their property to what it would be

without the renewable energy system. Exemptions will take effect for the year after a certification is

granted.

Timing: Start Date: 10/01/2008

Maximum Size: 100% of value added by renewable system

Requirements: For more information see

http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdf

Rebate Amount: 100% of value added by renewable system

For further information, please visit:

http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdf

Sources:

New Jersey Division of Taxation “Application for Certification”;

http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdf; September, 2011

DSIRE “Property Tax Exemption for renewable Energy Systems”;

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ25F&re=1&ee=1 September,

2011

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Appendix V –Partial list of Supply Chain Companies

Organization Name Product or Service Category

1 H2 Fueling Services Manufacturing Services

2 Relay Specialties, Inc Manufacturing Services

3 Sensor Product, Inc. Manufacturing Services

4 Gibbs Energy LLC Engineering Design Services

5 Treadstone Technologies Engineering Design Services

6 BASF Manufacturing Services

7 Linde North America Inc Fuel

8 BlackLight Power Inc. Engineering Design Services

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Appendix VI – Comparison of Fuel Cell Technologies104

Fuel Cell

Type

Common

Electrolyte

Operating

Temperature

Typical

Stack

Size

Efficiency Applications Advantages Disadvantages

Polymer

Electrolyte

Membrane

(PEM)

Perfluoro sulfonic

acid

50-100°C

122-212°

typically

80°C

< 1 kW –

1 MW105

>

kW 60%

transportation

35%

stationary

• Backup power

• Portable power

• Distributed generation

• Transportation

• Specialty vehicle

• Solid electrolyte reduces

corrosion & electrolyte

management problems

• Low temperature

• Quick start-up

• Expensive catalysts

• Sensitive to fuel

impurities

• Low temperature waste

heat

Alkaline

(AFC)

Aqueous solution

of potassium

hydroxide soaked

in a matrix

90-100°C

194-212°F

10 – 100

kW 60%

• Military

• Space

• Cathode reaction faster

in alkaline electrolyte,

leads to high performance

• Low cost components

• Sensitive to CO2

in fuel and air

• Electrolyte

management

Phosphoric

Acid

(PAFC)

Phosphoric acid

soaked in a matrix

150-200°C

302-392°F

400 kW

100 kW

module

40% • Distributed generation

• Higher temperature enables

CHP

• Increased tolerance to fuel

impurities

• Pt catalyst

• Long start up time

• Low current and power

Molten

Carbonate

(MCFC)

Solution of lithium,

sodium and/or

potassium

carbonates, soaked

in a matrix

600-700°C

1112-1292°F

300

k W- 3 M

W

300 kW

module

45 – 50% • Electric utility

• Distributed generation

• High efficiency

• Fuel flexibility

• Can use a variety of catalysts

• Suitable for CHP

• High temperature

corrosion and

breakdown

of cell components

• Long start up time

• Low power density

Solid Oxide

(SOFC)

Yttria stabilized

zirconia

700-1000°C

1202-1832°F

1 kW – 2

MW 60%

• Auxiliary power

• Electric utility

• Distributed generation

• High efficiency

• Fuel flexibility

• Can use a variety of catalysts

• Solid electrolyte

• Suitable f o r CHP & CHHP

• Hybrid/GT cycle

• High temperature

corrosion and

breakdown

of cell components

• High temperature

operation requires long

start up

time and limits

Polymer Electrolyte is no longer a single category row. Data shown does not take into account High Temperature PEM which operates in the range of 160oC to 180

oC. It solves

virtually all of the disadvantages listed under PEM. It is not sensitive to impurities. It has usable heat. Stack efficiencies of 52% on the high side are realized. HTPEM is not a

PAFC fuel cell and should not be confused with one.

104 U.S. department of Energy, Fuel Cells Technology Program, http://www1.eere.energy.gov/hydrogenandfuelcells/fuelcells/pdfs/fc_comparison_chart.pdf, August 5, 2011 105

Ballard, “CLEARgen Multi-MY Systems”, http://www.ballard.com/fuel-cell-products/cleargen-multi-mw-systems.aspx, November, 2011

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Appendix VII –Analysis of Strengths, Weaknesses, Opportunities, and Threats for New Jersey

Strengths

Stationary Power – Strong market drivers (elect cost,

environmental factors, critical power), an environmentally aware

and supportive population, strong industrial base available (but not

focused on fuel cell OEM’s as there are none in the state)

Transportation Power - Strong market drivers (appeal to market,

environmental factors, high gasoline prices, long commuting

distance)

Weaknesses

Stationary Power – No fuel cell technology/industrial base at the

OEM level, fuel cells only considered statutorily “renewable” if

powered by renewable fuel

Transportation Power – Limited technology/industrial base at the

OEM level

Economic Development Factors – state incentives (and attention)

have been more directed to solar PV via the SRECS program

Opportunities Stationary Power – opportunity as a “early adopter market”, as the

state’s commercial and industrial base makes it an “energy intense

state”, good CHP applications

Transportation Power – Similar opportunities as stationary power,

but requires an integrated hydrogen plan

Economic Development Factors – Assuming a reasonable case is

made, NJ state support can show produce significant results.

Implementation of RPS/modification of RPS to include fuel cells

in preferred resource tier (for stationary power); or modification of

RE definition to include FCs powered by natural gas and allowed

resource for net metering.

Strong NJ emphasis on solar PV via SRECS program, but that the

NJ SREC market has crashed, creating a need for a more balanced,

technology agnostic approach to renewable energy/energy

efficiency initiatives

Threats

Stationary Power – Solar PV, to a lesser extent, off shore wind.

Transportation Power – Battery powered vehicles are both a

competitive threat and complementary stepping stone

Economic Development Factors – competition from other

states/regions and focus on a selected technology (solar pv)

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Appendix VIII – Partial Fuel Cell Deployment in the Northeast region

Manufacturer Site Name Site Location Year

Installed

Plug Power T-Mobile cell tower Storrs CT 2008

Plug Power Albany International Airport Albany NY 2004

FuelCell Energy Pepperidge Farms Plant Bloomfield CT 2005

FuelCell Energy Peabody Museum New Haven CT 2003

FuelCell Energy Sheraton New Jersey Hotel & Towers Manhattan NY 2004

FuelCell Energy Sheraton Hotel Edison NJ 2003

FuelCell Energy Sheraton Hotel Parsippany NJ 2003

UTC Power Cabela's Sporting Goods East Hartford CT 2008

UTC Power Whole Foods Market Glastonbury CT 2008

UTC Power Connecticut Science Center Hartford CT 2009

UTC Power St. Francis Hospital Hartford CT 2003

UTC Power Middletown High School Middletown CT 2008

UTC Power Connecticut Juvenile Training School Middletown CT 2001

UTC Power 360 State Street Apartment Building New Haven CT 2010

UTC Power South Windsor High School South Windsor CT 2002

UTC Power Mohegan Sun Casino Hotel Uncasville CT 2002

UTC Power CTTransit: Fuel Cell Bus Hartford CT 2007

UTC Power Whole Foods Market Dedham MA 2009

UTC Power Bronx Zoo Bronx NY 2008

UTC Power North Central Bronx Hospital Bronx NY 2000

UTC Power Hunt's Point Water Pollution Control Plant Bronx NY 2005

UTC Power Price Chopper Supermarket Colonie NY 2010

UTC Power East Rochester High School East Rochester NY 2007

UTC Power Coca-Cola Refreshments Production Facility Elmsford NY 2010

UTC Power Verizon Call Center and Communications Building Garden City NY 2005

UTC Power State Office Building Hauppauge NY 2009

UTC Power Liverpool High School Liverpool NY 2000

UTC Power New Jersey Hilton Hotel New Jersey City NY 2007

UTC Power Central Park Police Station New Jersey City NY 1999

UTC Power Rochester Institute of Technology Rochester NY 1993

UTC Power NYPA office building White Plains NY 2010

UTC Power Wastewater treatment plant Yonkers NY 1997

UTC Power The Octagon Roosevelt Island NY 2011

UTC Power Johnson & Johnson World Headquarters New Brunswick NJ 2003

UTC Power CTTRANSIT (Fuel Cell Powered Buses) Hartford CT 2007 -

Present

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Appendix IX – Partial list of Fuel Cell-Powered Forklifts in North America106

Company City/Town State Site Year

Deployed

Fuel Cell

Manufacturer

# of

forklifts

Coca-Cola San Leandro CA

Bottling and

distribution center 2011 Plug Power 37

Charlotte NC Bottling facility 2011 Plug Power 40

EARP

Distribution Kansas City KS Distribution center 2011

Oorja

Protonics 24

Golden State

Foods Lemont IL Distribution facility 2011

Oorja

Protonics 20

Kroger Co. Compton CA Distribution center 2011 Plug Power 161

Sysco

Riverside CA Distribution center 2011 Plug Power 80

Boston MA Distribution center 2011 Plug Power 160

Long Island NY Distribution center 2011 Plug Power 42

San Antonio TX Distribution center 2011 Plug Power 113

Front Royal VA Redistribution

facility 2011 Plug Power 100

Baldor

Specialty Foods Bronx NY Facility

Planned

in 2012

Oorja

Protonics 50

BMW

Manufacturing

Co.

Spartanburg SC Manufacturing

plant 2010 Plug Power 86

Defense

Logistics

Agency, U.S.

Department of

Defense

San Joaquin CA Distribution facility 2011 Plug Power 20

Fort Lewis WA Distribution depot 2011 Plug Power 19

Warner

Robins GA Distribution depot 2010 Hydrogenics 20

Susquehanna PA Distribution depot 2010 Plug Power 15

2009 Nuvera 40

Martin-Brower Stockton CA Food distribution

center 2010

Oorja

Protonics 15

United Natural

Foods Inc.

(UNFI)

Sarasota FL Distribution center 2010 Plug Power 65

Wal-Mart

Balzac Al,

Canada

Refrigerated

distribution center 2010 Plug Power 80

Washington

Court House OH

Food distribution

center 2007 Plug Power 55

Wegmans Pottsville PA Warehouse 2010 Plug Power 136

Whole Foods

Market Landover MD Distribution center 2010 Plug Power 61

106

FuelCell2000, “Fuel Cell-Powered Forklifts in North America”, http://www.fuelcells.org/info/charts/forklifts.pdf, November, 2011

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Appendix X – Comparison of PEM Fuel Cell and Battery-Powered Material Handling Equipment

3 kW PEM Fuel Cell-Powered

Pallet Trucks

3 kW Battery-powered

(2 batteries per truck)

Total Fuel Cycle Energy Use

(total energy consumed/kWh

delivered to the wheels) -12,000 Btu/kWh 14,000 Btu/kWh

Fuel Cycle GHG Emissions

(in g CO2 equivalent 820 g/kWh 1200 g/kWh

Estimated Product Life 8-10 years 4-5 years No Emissions at Point of Use

Quiet Operation

Wide Ambient Operating

Temperature range

Constant Power Available

over Shift

Routine Maintenance Costs

($/YR) $1,250 - $1,500/year $2,000/year

Time for Refueling/Changing

Batteries 4 – 8 min./day 45-60 min/day (for battery change-outs)

8 hours (for battery recharging & cooling) Cost of Fuel/Electricity $6,000/year $1,300/year Labor Cost of

refueling/Recharging $1,100/year $8,750/year

Net Present Value of Capital

Cost $12,600

($18,000 w/o incentive) $14,000

Net Present Value of O&M

costs (including fuel) $52,000 $128,000