panasonic bluegen comparison

I emailed CFU Management requesting information relating to Tokyo gas testing of the Bluegen and comparisons with the Panasonic product which was provided on this forum by trevally90.

Andrew Neilsen replied with the following and has given permission to post his reply on the Hotcopper forum.

Thanks for your note. We're aware of the product announcement by Panasonic and Tokyo Gas. Panasonic make a PEM fuel cell system so their electrical efficiency will always be lower than our SOFC system (they cannot reform gas into hydrogen inside the fuel cell like we can - they need an external reformer). It's also a very low power output - 750W may be ok for the Japanese market (although we think 1.5kW creates more value) - but too small for pretty much any other developed market such as EU, Aust, US etc. So it's not a direct threat to us. If Panasonic can pave the way for a more efficient and complementary product, great!

We think the cost comparison is also interesting. Ignoring subsidies: a 750W Panasonic unit costs 2.76m Yen = AUD 33k. Assuming constant operation, the unit generates 6,500 kWh per year. Nominal cost = $5 per kWh. Output of a 1.5kW BlueGen is double, ie 13,000 kWh per year. At the same cost of $5 per kWh we could charge AUD 65k for a BlueGen in Japan. (Even with the subsidies, 17k for a 750W unit would mean AUD 34k for a 1.5kW BlueGen.) We get lots of shareholders and others asking us "why can't I buy a BlueGen for $10,000?". One reason is that in low volumes are costs are higher than this, and we don't have a large balance sheet to loss lead. But the other reason is that there are markets - outside Australia - and customers which will pay a lot more than 10k. We think shareholders would want us to charge 65k if we can rather than 10k. Now, this premium pricing won't last for ever, and absolutely we want to get into the volume residential market, but it's a good indication of what other markets will pay.

Tokyo Gas are continuing to test and operate our BlueGen unit, as is Osaka Gas. (Tokyo Gas is #1 in Japan, Osaka Gas is #2.)

Trust this helps.

Ps I think it was excellant for management to spend the time and provide comparitive costings on usage and unit pricings. Exactly what we are looking for.