Implications

Industrial forklifts and tugs have unique operational requirements that make Fuel Cell applications a really good environmental and practical solution. Originally these vehicles were powered by LP or CNG Gas so they could work for an entire shift without stopping, but as plant air quality became an increasing concern, battery power was substituted but they cannot meet high usage cycles for an 8 our period without "opportunity" charging or battery change. Fuel Cells, especially if they can operate on methanol reformers, have the potential to eliminate this cost without impacting production or air quality.

Analysis

Although Fuel Cell costs are still high, the application of fuel cells on Industrial Trucks such as forklifts and tugs is compelling. Plant Air Quality and other concerns caused companies to shift from gas to battery power for indoor plant operations. Even with the improvements in batteries and charging rates, it is still difficult for high use cycle equipment to last a full shift of production without having to stop for charging or battery charging. Work arounds such as opportunity charging where equipment is parked for 15-30 minute several times during the shift to get an electric boost has been a practical solution for many application, but does not attack the root cause. It also does not attack the inherent inefficiency of battery charge stations, heat losses and safety concerns from hydrogen production. Industrial Fuel Cells are approaching the state of development to take on this task. Since Fuel Cells work on on-board fuel supplies, obtaining a full shift production without significant downtime is fully capable. Fuel Cells are more efficient in producing electricity than grid inverted power including distribution, overcharging and heat losses. Fuel Cells also open the ability to handle any size loads with a single piece of equipment that has been matched to the load.  Often two pieces of equipment are required, one on gas and one on batteries because of part or pallet weight, even though they are both underutilized. Fuel Cells provide great opportunity and are reaching the technology and price point to move into these markets, especially with leased equipment that protects the first adopters from infant mortality, contamination and other issues.