Energy Alternatives Looking for Juice
A cadre of companies is pushing innovative small-scale, low-emission power systems. However, this nascent market hasn't really turned on yet
JUNE 13, 2001
businessweek.com
Several stories above the pell-mell of Times Square, two fuel-cell batteries pump 400 kilowatts of power for the Conde Nast building -- enough electricity to supply nearly 300 homes annually. At a Walgreens drugstore in Chesterton, Ind., a 200-kilowatt microturbine keeps the aisles lit even when the electricity goes out, allowing customers to go on shopping. Back in New York City, a fuel cell at a police station kept the New York Power Authority from having to rip up Central Park in order to upgrade the power supply
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Despite the quest for more dependable power, many busineses are reluctant to invest heavily in these relatively untested products. The return on the investment can be low, and far into the future. A small commercial customer would require a two- to four-year payback period. Regular electric utilities charge about $0.07 per kilowatt-hour -- around $100 a month for a small company, while a 30-kilowatt fuel cell costs about $150,000 in startup costs alone. Throw in operation and maintenance expenses, fuel costs, and fees levied by utilities to connect to the central grid, and a company's budget can be pretty much wiped out. |
