company response, page-10

r0

I agree entirely. To the novice like me these things look like a no brainer. A large part of our electricity bills relates to the cost of building the distribution infrastructure to get the electricity from the large power stations to where it is used. The distribution network is built to cover periods of peak demand so bucket loads are spent on transmission infrastructure. The infrastructure holders cream it because the price setting regulators allow them guaranteed returns on their capital spend.

For years there have been people that have advocated that we could reduce electricity costs by reducing demand at peak times. The theory goes that if can get some big users to stop drawing electricity in the peak you dont need to invest as much in infrastructure (reducing the capital involved and the cost of that capital).

The decentralised base load that fuel cells offer (as opposed to wind and solar) might also reduce the amount of investment required for transmission infrastructure because a large amount of fuel cell electricity will be produced where it is consumed. Of course we might need to beef up the gas distribution infrastucture. (and I might be ignoring the capital cost of the bluegens)

Even if you ignore the carbon tax debate, the relevant efficiencies of these fuel cell just seem to make sense to me. If centralised power has a relevant efficiency of 32% and these fuel cells have a relevant efficiency of 65%, far less gas is consumed in energy production - that has to be a good thing.

In terms of carbon dioxide, if I understand it correctly, the improved efficiency of bluegen means three things at least. First, it must half the CO2 emissions per MW of gas used to generate the electricity consumed. Second, it must also half the fugative emissions associated with extraction of the gas. Third, if you reduce transmission infrastructure, you save the CO2 associated with the production of the steel used in distribution.

Of course the improvements are even greater when the Bluegen is used in a combined water/electricity set up. The relevant efficiency of 85% is even more compelling!