Fuel cells are viewed as potential candidates for auxiliary power, mobile power, stationary distributed or central power, and portable product power.  Solid oxide fuel cells (SOFCs) are among the most efficient and cost-effective.  Although relatively high operating temperature limits the range of applications possible, stationary, mobile, and even portable product configurations are possible.

Advances in the technology have been made, but sometimes these advances reveal even more challenges to be met.  Slowly, there is the realization that total dependency on hydrocarbon fuels is not a viable economic option.  SOFCs have a part in securing energy security for the country, improving the environment, greatly reducing urban pollution, and creating jobs in manufacturing as the technology advances.  They can also provide a cost-effective and performance-driven rival for other fuel cells, batteries, internal combustion engines, and coal- or oil-fired heat engines.

This study analyzes components of the SOFC, a technology offering the promise of greatly reduced environmental impact and excellent performance, price, and efficiency advantages.  Recent historic developments and approaches are described along with recent commercial developments and the state of the art.

REASONS FOR DOING THE STUDY

This report can also provide valuable information in terms of assessing investment in particular technologies and, therefore, should benefit investors directly or indirectly.  Others may find the broad discussions of energy policy and environmental impact to be of considerable value in understanding the opportunities and problems in the near- to mid-term.

INTENDED AUDIENCE

This report is intended to provide a unique analysis of the SOFC market and will be of interest to a variety of current and potential fuel cell users and integrators as well as competing battery, fuel cell, and conventional power generation makers.

SCOPE OF REPORT

This report discusses the North American, European, Far Eastern, and Rest-of-World market value.  Target markets are based on optimistic, pessimistic, and consensus alternatives.  This is compared to the conventional power generation target and peak shifting opportunities.  The current market is small, mainly limited to pilot projects or emerging niches.  By 2016, these pilots will be expanding into commercial implementations.  This 2016 market is also characterized in terms of optimistic, pessimistic, and consensus scenarios.

SOFC applications are described and analyzed.  The following applications are considered:

    Combined heat and power (CHP)
    Exotic
    Military
    Portable product power
    Remote power and auxiliary power  units (APUs)

SOFC companies are listed and detailed profiles prepared.

REPORT HIGHLIGHTS

    The global solid oxide fuel cell market in 2011 will be worth more than $380 million, up from $360 million in 2010. This will result in a $530 million global market in 2016, a compound annual growth rate (CAGR) of 6.9% between 2011 and 2016 under a consensus scenario.
    The market for CPUs is valued at $140 million in 2011 and is forecast to rise to almost $215 million by 2016, reflecting a CAGR of 9%.
    The total market for generators, remote and APUs is likely to increase from $135 million in 2011 to approximately $159 million in 2016, a CAGR of 3.3%

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION  
    STUDY GOALS AND OBJECTIVES  1
    REASONS FOR DOING THE STUDY  1
    INTENDED AUDIENCE  1
    SCOPE OF REPORT  2
    METHODOLOGY  2
    INFORMATION SOURCES  3
    ANALYST CREDENTIALS  3
    DISCLAIMER  4

CHAPTER TWO: SUMMARY 
    SUMMARY  5
  SUMMARY TABLE GLOBAL SOFC MARKET SUMMARY BY
    TECHNOLOGY, BY APPLICATION, CONSENSUS SCENARIO ($
    MILLIONS)  6
  SUMMARY FIGURE GLOBAL SOFC MARKET SUMMARY BY
    TECHNOLOGY, BY APPLICATION, CONSENSUS SCENARIO ($
    MILLIONS)  6

CHAPTER THREE: OVERVIEW
     FUEL CELL BACKGROUND  8
  TABLE 1 SOFC COMPARED TO OTHER FUEL CELLS  9
     SOLID OXIDE FUEL CELL BACKGROUND  9
           SOFC MATERIALS 10
                SOFC Electrodes, Electrolytes, and Interconnects  
                SOFC Glass Seals  12
                SOFC Gaskets 13
  TABLE 2 SOFC GASKET MATERIALS 13
  TABLE 2 (CONTINUED) 14
                Recent SOFC Material Developments  14
                      Georgia Tech SOFC Ceramic Material  14
                            Georgia Tech Continued)  15
                      National Institute of Advanced Industrial Science
                         and Technology and the Fine Ceramics
                         Research Association Electrode Compositions  16
                      University of Illinois at Urbana-Champaign
                         Ceramic Microreactors  17
                      Cornell One-Pot Process  17
                      West Virginia University Interconnect Coatings  18
                      Nippon Shokubai Zirconia Sheets  19
  TABLE 3 NIPPON SHOKUBAI ZIRCONIA SHEET SPECIFICATIONS  20
                      University of Birmingham Electrode Doping  20
                      Virginia Tech Self-healing Glass Seals  21
          SOFC TECHNOLOGY: CURRENT AND DEVELOPMENTAL
             CONFIGURATIONS 22
                Generic Planar SOFC Configuration  23
FIGURE 1 PLANAR SOFC CONFIGURATION  24
                Generic Thin-film Configuration  24
FIGURE 2 THIN-FILM SOFC CONFIGURATION  25
                Generic Tubular Configuration  25
FIGURE 3 TUBULAR SOFC CONFIGURATION  26
                Westinghouse Design  26
                Siemens Power Generation Design  27
                National Institute of Advanced Industrial Science and
                   Technology (AIST) Design  28
                      National Institute of (Continued)  29
                NanoDynamics Energy Microtubular Configuration  30
                MIT Design  31
                Ceres Design  33
                Bloom Energy SOFC Hydrogen Generation Design  34
                FuelCon SOFC Test Station  34
                SOFC Gas Turbine Hybrids  35
FIGURE 4 FUELCELL ENERGY SOFC/T HYBRID SYSTEM AND
   TORPEDO CONFIGURATION 36
    GOVERNMENT REGULATIONS AND SUBSIDIES 37
          US FEDERAL FUEL CELL SUBSIDIES AND INCENTIVES  38
                US Department of Energy  38
                History of US DOE SOFC Subsidies  39
                US Fuel Cell Budget Situation in 2009  45
                US Fuel Cell Budget Situation in 2010  48
TABLE 4 2010 BUDGET HYDROGEN AND FUEL CELL
   TECHNOLOGIES FUNDING PROFILE BY SUBPROGRAM, 2009-
   2011 ($ THOUSANDS)  48
TABLE 4 (CONTINUED) 49
                      US Fuel Cell Budget  (Continued)  50
                US Fuel Cell Budget Situation in 2011  51
TABLE 5 2011 PROPOSED FISCAL FUEL CELL BUDGET  52
                     US DOE Draft "Hydrogen and Fuel Cells Program Plan"  52

           OTHER US FUEL CELL SUBSIDIES AND INCENTIVES  56
                     US Fuel Cell Council Analysis of Funding Priorities  57
                     Office of Science  59
                     National Hydrogen Association  60
                     National Science Foundation  61
                     Department of Defense  62
                     State Incentives  63
                     Federal Excise Tax Exemption for Anti-idling  
           GLOBAL SUBSIDIES AND INCENTIVES  65
                     Canadian Subsidies and Incentives  65
                     European Subsidies and Incentives  65
                     Japanese Subsidies and Incentives  66
                     South Korean Subsidies and Incentives  67
                               South Korean Subsidies and  (Continued)  68
      SOFC RESEARCH  69
           ACADEMIC INSTITUTIONS  69
   TABLE 6 MAJOR INSTITUTIONAL RESEARCH INTO PEM FUEL
     CELLS  70

CHAPTER FOUR: MARKETS BY APPLICATION 
     COMBINED HEAT AND POWER  71
          CHP DEVELOPMENTS  72
               US DOE EERN CHP Developments  72
  TABLE 7 PRELIMINARY TECHNICAL TARGETS: 1-10 KWE
    RESIDENTIAL COMBINED HEAT AND POWER FUEL CELLS
    OPERATING ON NATURAL GAS, 2008-2020  73
  TABLE 8 PRELIMINARY TECHNICAL TARGETS: 1-10 KWE FUEL
    CELL AUXILIARY POWER UNITS OPERATING ON STANDARD
    ULTRA-LOW SULFUR DIESEL FUEL, 2008-2020  73
               European Union SOFC Research Partnership CHP
                  Developments  74
                     European Union SOFC  (Continued)  75
               Hydrogen and Fuel Cell Technical Advisory Committee
                  (HTAC) CHP Developments  76
               Ceres Power CHP Developments  76
                     Ceres Power CHP Developments (Continued) 77
     GENERATORS, REMOTE POWER, AND AUXILIARY POWER  78
          GENERATORS AND PORTABLE POWER PLANTS  79
          RECREATIONAL VEHICLE POWER  80
          ANTI-IDLING APUS  80
                       Anti-idling APUs (Continued)  81
              AIRCRAFT APUS  82
                       Aircraft APUs (Continued)  83
              MARINE VESSEL APUS  84
         PORTABLE PRODUCTS  85
         MILITARY  85
         EXOTIC  85

CHAPTER FIVE: SOFC MARKET SUMMARY
      SOFC SEGMENTS ANALYZED  87
      SOFC MARKET DRIVERS AND BASIS FOR SCENARIOS  88
            SOFC APPLICATION MARKET DRIVER SCENARIOS  89
  TABLE 9 SOFC OPTIMISTIC, PESSIMISTIC, AND CONSENSUS
     SCENARIOS, BY APPLICATION  89
            SOFC REGIONAL MARKET DRIVER SCENARIOS  95
  TABLE 10 SOFC OPTIMISTIC, PESSIMISTIC, AND CONSENSUS
     SCENARIOS, BY REGION  95
            SOFC PRODUCT MARKET DRIVER SCENARIOS 99
  TABLE 11 SOFC OPTIMISTIC, PESSIMISTIC, AND CONSENSUS
     SCENARIOS  99
      SOFC MARKETS BY APPLICATION  103
  TABLE 12 GLOBAL SOFC MARKET PROJECTIONS BY
     TECHNOLOGY, BY APPLICATION, CONSENSUS SCENARIO,
     THROUGH 2016 ($ MILLIONS) 103
  FIGURE 5 GLOBAL SOFC MARKET PROJECTIONS BY
     TECHNOLOGY, BY APPLICATION, CONSENSUS SCENARIO, 2006-
     2016 ($ MILLIONS)  104
  FIGURE 6 GLOBAL SOFC MARKET PROJECTIONS BY
     TECHNOLOGY BY APPLICATION IN 2011, CONSENSUS
     SCENARIO (%)  104
  FIGURE 6 (CONTINUED)  105
   TABLE 13 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY APPLICATION, OPTIMISTIC SCENARIO,
      THROUGH 2016 ($ MILLIONS) 105
   TABLE 14 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY APPLICATION, PESSIMISTIC SCENARIO,
      THROUGH 2016 ($ MILLIONS) 106
       SOFC MARKETS BY REGION  106
   TABLE 15 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY REGION, CONSENSUS SCENARIO, THROUGH
      2016 ($ MILLIONS)  106
   FIGURE 7 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY REGION, CONSENSUS SCENARIO, 2006-2016
      ($ MILLIONS)  107
   FIGURE 8 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY BY REGION IN 2011, CONSENSUS SCENARIO (%)  107
   FIGURE 8 (CONTINUED)  108
   TABLE 16 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY REGION, OPTIMISTIC SCENARIO ($
      MILLIONS)  108
   TABLE 17 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY REGION, PESSIMISTIC SCENARIO, 2006-2016
      ($ MILLIONS)  108
       SOFC MARKETS BY PRODUCT  109
   TABLE 18 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY PRODUCT, CONSENSUS SCENARIO,
      THROUGH 2016 ($ MILLIONS) 109
   FIGURE 9 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY PRODUCT, CONSENSUS SCENARIO, 2006-2016
      ($ MILLIONS)  110
   FIGURE 10 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY BY PRODUCT IN 2011, CONSENSUS SCENARIO
      (%)  110
   FIGURE 10 (CONTINUED)  111
   TABLE 19 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY PRODUCT, OPTIMISTIC SCENARIO,
      THROUGH 2016 ($ MILLIONS) 111
   TABLE 20 GLOBAL SOFC MARKET PROJECTIONS BY
      TECHNOLOGY, BY PRODUCT, PESSIMISTIC SCENARIO,
      THROUGH 2016 ($ MILLIONS) 111

CHAPTER SIX: INDUSTRY STRUCTURE AND COMPETITIVE ANALYSIS
    COMPETITION  112
         CONVENTIONAL TURBINE-BASED POWER GENERATION  112
         INTERNAL COMBUSTION ENGINES  113
        ULTRACAPACITORS  113
        OTHER FUEL CELLS  114
             Alkaline Fuel Cells  114
             Phosphoric Acid Fuel Cells 115
             Solid Oxide Fuel Cells  115
             Molten Carbonate Fuel Cells  115
             Proton Exchange Membrane Fuel Cells  115
        BATTERIES  116
TABLE 21 BATTERIES THAT COULD COMPETE WITH SOFCS 118
             Lead-acid Batteries 118
             Nickel-metal Hydride Batteries  119
             Lithium-ion and Lithium-polymer Batteries  120
             Metal-air Batteries  121
             Nickel-hydrogen Secondary Batteries  122
             High-temperature Lithium Batteries  122
             Sodium-sulfur Batteries  123
             Redox and Flow Batteries  124
             Nickel-iron Batteries  124
             Nickel-Zinc Batteries  125
             Calcium-metal Sulfide Batteries 125
             Sodium-metal Chloride Batteries  126
   INDUSTRY LEADERS  126
TABLE 22 SOFC COMPANIES AND STATUS  127
TABLE 23 SOFC COMPANY SHIPMENT STATUS  132
        MARKET TIERS  133
             Leading CHP SOFC Companies  133
TABLE 24 LEADING SOFC CHP COMPANIES  133
             Leading Generators, Remote, and APU SOFC Companies  134
TABLE 25 LEADING SOFC GENERATORS, REMOTE, AND APU
  COMPANIES  134
             Leading Military SOFC Companies 134
TABLE 26 LEADING MILITARY SOFC COMPANIES  135
             Leading Portable SOFC Companies  135
TABLE 27 LEADING PORTABLE SOFC COMPANIES 135
             Leading Exotic SOFC Companies  136
TABLE 28 LEADING EXOTIC SOFC COMPANIES 136
   CHANNELS OF DISTRIBUTION  136
TABLE 29 SOFC DISTRIBUTION CHANNELS  136
TABLE 29 (CONTINUED) 137
      PURCHASING INFLUENCES  138
           PRICE INFLUENCE  138
   TABLE 30 SOFC PURCHASING INFLUENCES  138
           PRICE TRENDS 138
   FIGURE 11 DRIVING DOWN COSTS FOR FUEL CELLS (ORDER OF
      MAGNITUDE COST REDUCTION) ($/KW)  139
      TECHNOLOGY LIFE CYCLE  140
           TECHNOLOGY LIFE CYCLE (CONTINUED)  141
      MANUFACTURING PROCESS  142
   FIGURE 12 SOFC MANUFACTURING TREE  142
   FIGURE 13 SOFC MANUFACTURING FLOW  143
           MANUFACTURING PROCESS (CONTINUED)  144
      SOFC PATENTS  145
   TABLE 31 RECENT SOFC PATENT ASSIGNEES  146

CHAPTER SEVEN: COMPANY PROFILES
    ACUMENTRICS HOLDING CORP  154
         ACUMENTRICS HOLDING CORP (CONTINUED)  155
    ADAPTIVE MATERIALS, INC (ULTRA ELECTRONICS)  156
         ADAPTIVE MATERIALS, INC (CONTINUED)  157
         ADAPTIVE MATERIALS, INC (CONTINUED)  158
    ADELAN UK, LTD  159
    ADVANCED MATERIALS TECHNOLOGIES (ACCURON
      TECHNOLOGIES)  160
    ADVANCED MEASUREMENTS, INC  160
    ALPPS FUEL CELL SYSTEMS  161
    ALSTOM TECHNOLOGY, INC  161
    ALTAIR NANOTECHNOLOGIES, INC  162
    BTU INTERNATIONAL, INC  163
    THE BABCOCK & WILCOX CO (MCDERMOTT INTERNATIONAL) 164
         BABCOCK-HITACHI KK  164
    BHP BILLITON, LTD 165
    BLOOM ENERGY 166
    CELLTECH POWER, LLC  170
    CERAMATEC, INC  170
CERAMIC FUEL CELLS, LTD  171
CERES POWER HOLDINGS  176
CHEVRON TECHNOLOGY VENTURES  180
CHUBU ELECTRIC POWER COMPANY, INC  181
CMR PROTOTECH  182
CUMMINS POWER GENERATION, INC  183
DANA CANADA CORP  183
DELPHI CORP 184
DIGITAL GAS, INC  186
EBZ ENTWICKLUNGS  187
EDISON ELECTRIC INSTITUTE  187
ELCOGEN AS  188
EMPRISE CORPORATION  188
ENERGIENED  188
ENRG, INC 189
ENTWICKLUNGS UND VERTRIEBSGESELLSCHAFT
   BRENNSTOFFZELLE  191
FEV MOTORENTECHNIK GMBH  192
FIDERIS  192
FORSCHUNGSZENTRUM JUELICH  193
FRANKLIN ADVANCED MATERIALS  193
FUEL CELL TECHNOLOGIES  194
FUELCELL ENERGY, INC  194
     FUELCELL ENERGY, INC (CONTINUED)  195
FUEL CELLS (SCOTLAND), LTD  196
GENERAL ELECTRIC COMPANY  196
GEORGE WESTINGHOUSE RESEARCH AND TECHNOLOGY
   PARK  197
GLOBAL THERMOELECTRIC, INC (FUELCELL ENERGY)  197
GOETA TECHNOLOGY DEVELOPER INTERNATIONAL 198
HABCO, INC  199
HALDOR TOPSOE A/S/TOPSOE FUEL CELL  199HC STARCK GMBH  203
HEXIS, LTD  204
HTCERAMIX SA 205
HOSOKAWA POWDER TECHNOLOGY RESEARCH INSTITUTE 205
INTERTEC SOUTHWEST, INC  206
K-STYLE ADVANCED CERAMICS CO, LTD  206
KAINOS ENERGY CORP (NANOGRAM) 206
KANSAI ELECTRIC POWER CO, INC  207
LOGANENERGY CORP  208
MATERIALS & SYSTEMS RESEARCH, INC  208
     MATERIALS & SYSTEMS  (CONTINUED)  209
MEIDENSHA CORP 210
MERIDIAN ENERGY, LTD  211
MERLONI TERMOSANITARI SPA (ARISTON THERMO GROUP)  211
MESOSCOPIC DEVICES LLC  212
MORPHIC TECHNOLOGIES  212
NANODYNAMICS, INC  213
NATIONAL FUEL CELL RESEARCH CENTER  214
NEXTECH MATERIALS, LTD  215
NGIMAT CO 217
NGK INSULATORS, LTD  218
NIPPON SHOKUBAI CO, LTD  219
NIPPON TELEGRAPH & TELEPHONE CORP 219
NOAH TECHNOLOGIES CORP  221
ONTARIO POWER GENERATION, INC  221
PLANSEE SE  221
PLUG POWER, INC  222
POHANG IRON AND STEEL COMPANY (POSCO) 223
PRECISION FLOW TECHNOLOGIES  224
PRESIDIO COMPONENTS, INC  224
PROTONEX  225
RAGAN TECHNOLOGIES, INC 226
RISØ NATIONAL LABORATORY  228
ROLLS-ROYCE FUEL CELL SYSTEMS, LTD 229
SAFCELL  230
SANDVIK  231
SHELL HYDROGEN BV  232
SIEMENS POWER GENERATION, INC  233
SIENERGY SYSTEMS (ALLIED MINDS)  235
SOFCPOWER SLC  236
      SOLID STATE ENERGY CONVERSION ALLIANCE  237
      STANFORD MATERIALS CORP  238
      STATOIL ASA  239
      STAXERA GMBH (SUNFIRE)  239
      SULZER HEXIS AG  242
      SUMITOMO CORP  242
      TOKYO GAS CO, LTD  243
      TOSOH CORP CERAMICS DIVISION  243
      TOTO, LTD 244
      TOYOTA  244
   TABLE 33 TOYOTA POWER GENERATING UNIT SPECIFICATIONS  246
      VAILLANT GMBH  246
      VERSA POWER SYSTEMS, INC  247
      VIOLET FUEL CELL STICKS  250
      WÄRTSILÄ CORP  251
           WÄRTSILÄ CORP (CONTINUED)  252
      WATT FUEL CELL CORP  253
      WEBASTO AG  254
      WORLDWIDE ENERGY, LLC  255
      ZTEK CORP  256

APPENDIX US PATENTS THAT MENTION SOFCS
  TABLE 34 SOFC PATENTS 258