Billion dollar telecom deal could be game-changer for fuel cell industry
October 2, 2015
By William Pentland After languishing on the margins of the world's mainstream energy economy for decades, a multibillion dollar deal announced Thursday suggests that hydrogen fuel cells may finally be ready for prime time.
Intelligent Energy, a fuel cell technology company based in Loughborough, United Kingdom, has agreed to supply hydrogen fuel cells for powering more than 27,000 telecom towers in India over the next decade. The contract was made with GTL Limited, one of India's largest telecom infrastructure services companies. "This transaction delivers contracted revenues of approximately £1.2 billion over ten years, which is a major development for Intelligent Energy and the industry," said Henri Winand, CEO of Intelligent Energy Holdings, in a press release. "Our technology will not only help to bring a stable, reliable power supply to these towers, it will also demonstrate the full power of hydrogen fuel cells today, and in the future." The world has been waiting quite a while for such a demonstration from the fuel cell industry. It remains to be seen whether Intelligent Energy will be able to bring that waiting to an end. India's power grid has become the poster child for grid blackouts. Chronic power outages are widely believed to be stifling India's economic growth. Nearly three of every four telecom towers in India is down for at least eight hours every day due to lack of electric power. The result is that almost half of India's 935 million mobile phone users are routinely disconnected for extended periods. Diesel generators are currently the default technology for providing a backup power supply at telecom towers. Fuel cells are vastly better for the environment than diesel generators, which emit greenhouse gases and (depending on the generator's emissions controls) dangerous carcinogens. But environmental benefits have not been enough to get fuel cells over the commercialization goal line. Intelligent Energy's hydrogen fuel cells will need to prove they can compete with diesel generators on price and performance. In India, diesel accounts for about half of the cost of operating the typical telecom tower. If anything, diesel costs are likely to grow in the near to midterm future as recent reforms in India reduce subsidies for diesel. For more: © 2015 FierceMarkets, a division of Questex, LLC. All rights reserved. |