The Santa Clara County Valley Transportation Authority (VTA) will receive $750,000 in federal funding for the agency’s first Bloom Energy fuel cell facility.
South Bay Congressional representatives, who are always eager to tout grants in their districts, released news of the grant this week. But the VTA has yet to enter into a contractual agreement with Bloom, currently slated to be brought before the VTA Board of Directors for approval in November.
Bloom is the Sunnyvale fuel-cell start-up that has a bold mission to make clean, reliable energy affordable to everyone in the world. The company has an aggressive business development strategy and several high-profile customers, including utilities like Delmarva Power and Apple, which is using Bloom’s fuel cells to partially power its new data center in Maiden, N.C.
Each Bloom Energy Server — commonly known as “Bloom Boxes” — typically provides 100 kilowatts of power. The VTA project would consist of 12 independent power modules operating across two 200kW systems.
But the total cost of the 400kW fuel cell facility is pegged at $4 million, raising a lot of questions: is the cost of a Bloom Box $10,000 a kilowatt? And isn’t that kind of high? Bloom Energy declined to comment.
VTA still has to finance the rest of the project, and plans to enter into a 20-year Purchase Power Agreement with Bloom. Bloom installs and maintains the system; VTA purchases electricity from Bloom at predetermined prices per kilowatt hour over 20 years.
“A clean, affordable transit system is vital to our local economy and environment,” said Rep. Anna G. Eshoo (D-Palo Alto). “This funding will help reduce VTA bus emissions in a cost effective way by using new, cutting-edge fuel cell technology, developed right here in California’s 14th Congressional District. A green economy is a healthy economy.”
VTA operates two rail lines in the South Bay and a fleet of 450 buses and has already taken several “green” steps, including adding SunPower solar panels to three of its bus yards.
10 comments
gary schwab
Please explain why a 400KW fuel cell plant would cost $4 million? That seems way too costly when Fuel Cell Energy sells their power plants for $3,000 / KW. Fuel Cell Energy has more units in the field and has been around longer with a world wide proven track record.
Do you have any idea why VTA would spend $10,000 / KW when they could buy a similar plant at 1/3 the cost? What is Bloom offering to adjust for the vast difference in price on top of selling a non-commercial power plant with a non-proven stack life?
Sep 18, 2012
Bloom will install 400kW of fuel cells at Santa Clara County Valley Transportation Authority (VTA) facility at its maintenance yard in San Jose | FuelCellsWorks
[...] http://www.siliconbeat.com/2012/09/18/vta-gets-750k-for-bloom-energy-fuel-cells/ Today, 6:32 AM Leave a reply [...]
Sep 19, 2012
misterclean
It is absolutely scandalous that public funds are being doled out to BLOOM without an open and competitive bidding process where companies and technologies can be compared fairly.
If there is no technology agnostic RFP forthcoming, somebody is playing favorites and abusing the public trust.
Sep 20, 2012
Fuel Cell Round Up: VC Funding, FCEL, UTC, and Bloom | GreenTech Media | Road To Abundance
[...] Hull at SiliconBeat reports that Santa Clara County Valley’s Transportation Authority will get $750,000 in federal monies [...]
Sep 20, 2012
Fuel Cell Round Up: VC Funding, FCEL, UTC, and Bloom - Cleantech Reporter | Cleantech Reporter
[...] Hull at SiliconBeat reports that Santa Clara County Valley's Transportation Authority will get $ 750,000 in federal monies [...]
Sep 20, 2012
Bob
You have to factor in all the numbers: $4M – $750k (fed grant)- $960k (utility incentive) = $2.3M ($5.75 watt). Bloom uses natural gas (NG) to produce electricity without combustion. NG is cheap $2.80 per mmBtu; and NG prices can be locked in for up to 10 years. Considering Bloom’s electrical efficiency is > 50% they produce power at ~$0.11 Vs utility E19 tariff (VTA) rate including loaded cost (taxes and demand charges) is ~$0.13, thus a 2 cents savings. Add that up for 20 years and it is a significant cost savings. This is not even accounting for utility rate increases which are in progress so savings will be greater over time. Additionally, other fuel cell manufactures do not have this electrical efficiency (not even close); nor a scalable platform in 100kW increments for future growth. Most others scale in 400kW or 1.2MW increments. Other important attributes is that Bloom has multiple individual power plants (fuel cells)–6 per 200kW system. Vs one power plant (fuel cell) from other manufactures. So no single point of failure. Not to mention Bloom is HQ’d and manufactures in CA. Good for local economy. I do not think other solutions were considered as they do have this type of solution. Why waste tax payer dollars on an RFP process. I am glad to see an agency be smart about this tax/rate payers time and money-especially during hard economic times when cities and munis are going bankrupt.
Sep 26, 2012
VTA’s Bloom Energy deal is not a done deal: agency to pursue competitive bid process | SiliconBeat
[...] had been awarded a $750,000 federal grant to build a fuel cell facility with Bloom Energy Servers. http://www.siliconbeat.com/2012/09/18/vta-gets-750k-for-bloom-energy-fuel-cells/ Bloom is a venture-backed Sunnyvale start-up with an aggressive business development team. The [...]
Oct 2, 2012
Capitalism Liberal Style | Red Statements
[...] built a 4 million dollar facility to make what is known as “Bloom Boxes”. Each box contains a kwh of power at a cost of $10,000 per kwh. (That is [...]
Feb 7, 2013
Bloom Energy Raises $130M More for Fuel Cell Future Existing investors include KPCB, NEA, Advanced Equities, Goldman Sachs, and DAG | alternative renewable energy Pakistan
[...] SiliconBeat reports that Santa Clara Valley’s Transportation Authority will get $750,000 in federal funds to help finance a 400-kilowatt Bloom Energy fuel cell facility at a total cost of $4 million. Using the numbers supplied, that works out to $10,000 per kilowatt, which sounds about right for a Bloom Box, although a bit high for a competitive power source. [...]
May 12, 2013
Bloom Energy Raises $130M More for Fuel Cell Future | Free The Technology
[...] reports that Santa Clara Valley's Transportation Authority will get $750,000 in federal funds to help [...]
May 13, 2013