Evaluation of the Market Potential for DG SOFC Systems at Military Installations
The Department of Defense (DoD) is a major consumer of energy in the United States (U.S.) and is responsible for nearly 80 percent of U.S. government energy consumption. The DoD facility energy consumption profile reflects the U.S. commercial sector with electricity and natural gas accounting for nearly 80 percent of the energy consumed. The high-efficiency Solid Oxide Fuel Cell (SOFC) systems, which can support distributed generation (DG) and combined heat and power (CHP) applications, are well suited to support the DoD energy strategy and respond to the federal sustainability executive order. As a direct consequence of these policies, the DoD facility power sector was found to not only significantly supplement the early market opportunities for DG SOFC systems in the commercial sector, but also provide a significant longer-term market opportunity for commercial DG SOFC system developers. The DoD facilities power sector is capable of supporting the SOFC commercialization roadmap by providing increased production capacity that results in SOFC technology cost reduction. Apart from the expectation of typical readiness of commercially mature systems, there does not appear to be any significant issues that could hinder the market entry of SOFCs into the DoD facilities power sector. The expeditionary military bases, which are not considered in this report, provide yet another DoD market arena for DG SOFC systems.