Commercial, environmental and legislative factors that influence the implementation of fuel cells

Fuel cells and other advanced electric-generation technologies have not experienced a record of successful commercialization efforts. To lower costs for these technologies, it requires substantial production volumes with a significant investment in manufacturing facilities, all dependent on developer confidence in the ultimate market. Yet, market acceptance by buyers requires an adequate demonstration of technical performance and an assurance that these lower costs can be reached. In addition to this fundamental commercialization challenge, there are significant external factors that are greatly influencing the market's (utility's) future implementation of new alternative energy-generating technologies. The factor that has possibly the greatest impact today is the public demand for environmentally benign and renewable resource technologies. There is a growing trend of involvement by consumers, regulators and intervenors in the business and utility industry that is shifting the economic playing field by which industries make resource decisions. Concerns over air pollution, global warming, acid precipitation, depletion of the ozone layer and the hazards of electromagnetic fields (EMF) from power lines, have all led to more stringent regulations and environmental mandates. The utility business environment itself is rapidly changing. Higher public expectations from energy providers and increasing competition are leading to major changes in the American utility sector. Competitive requirements to reduce the cost of utility serivce is leading to business decisions that provide both opportunities and problems for increased use of alternative energy-generating technologies, like fuel cells, and/or renewables, such as wind and solar photovoltaics. Briging new energy technologies to market is very expensive and this financial burden cannot be shouldered by the market, manufacturers or federal government alone. Further, for the market to assume a key position in early commercialization, the technology must offer a strategic and competitive advantage to early buyers. In order to break this problematic cycle of investments depending on market assurance and of market reluctance until cost goals are met, fresh approaches must be sought to address the unique challenges of each commercialization effort. Market-driven collaborations in which potential buyers, such as electric utilities, work together to define and implement a commercialization program that meets the market'