Logan Energy Corp.: Off the Grid
February 11 , 2009
The day when every building generates its own power probably isn’t coming too soon. But because of companies like Logan Energy Corp. (LEC), commercial technologies are being developed that can offer clean, quiet, and reliable energy solutions.
“I was formerly in oil and gas exploration and production but in 1985 moved into some alternative energy strategies involving biogas,” said Sam Logan, founder and CEO. “In the early 1990s, we started looking at using fuel cells as power generators using biogas instead of conventional reciprocating engines. The technology allows us to move in new directions, away from oil and gas to cleaner energy and more efficient use of resources.”
LEC has grown into an international leader in fuel cell solutions. It was founded in 1994 and is exclusively focused on fuel cell solutions, designing and installing more than 125 systems across the US as well as in Iceland, Puerto Rico, and the UK. The company also handles operations and maintenance for its systems, which range in capacity from 1kW to multi-MW stationary applications.
Four years ago, LEC opened a subsidiary in the UK, Logan Energy Ltd. (LEL), after a successful demonstration project with the US Embassy. Last spring, Scottish and Southern Energy became investment partners with the UK operation, and LEC retains a 58% stake in LEL.
Potential for progress
Although many Americans were introduced to fuel cells when President Bush announced the Hydrogen Fuel Initiative to develop fuel cell vehicles in his 2003 State of the Union, the development of the technology began in the 1960’s with the Gemini and Apollo space programs. Their applications go way beyond use in cars. In layman’s terms, fuel cells are electrochemical devices that work by converting chemical energy into electricity. They are more efficient power generators and provide clean energy, unlike incumbent oil and gas technologies.
LEC is able to develop, install, operate, and maintain fuel cell projects across 11 time zones because fuel cells don’t need the intensive labor and service support common to other energy industry sectors. They have few moving parts as the power block generates electricity through an electrochemical reaction rather than combustion. Because of the absence of combustion, there are no harmful emissions, meaning fuel cells offer sustainable energy solutions that produce clean power and heat.
When LEC first began, fuel cells were not a commercial technology. It was too new and products were unproven, so the company cut its teeth on demonstration projects. The federal government funded about 95% of its projects in the mid-1990s for field performance testing and evaluation of fuel cell systems. LEC worked closely with a number of OEM’s over the years to develop testing and evaluation protocols, working with a variety of fuel cell technologies. Major developers focus on four distinctive fuel cell technologies—phosphoric acid, proton exchange membrane, molten carbonate, and solid oxide.
“Because we were involved in R&D efforts to prove the technology, we grew up with the industry and learned the relative benefits of different fuel cell technologies early,” Logan said. “We understand which products and their underlying technologies are suitable for which applications. Some are suitable for widespread applications, others are for niche applications.”
Today, the products are available for any market segment with on-site power generation. This typically means backup power. Incumbent technologies use generators powered mostly by diesel engines but sometimes by natural gas engines. Fuel cell systems offer the benefit of operating round the clock. They can provide electricity and heat to the customer’s site if the utility fails but operate alongside the grid as well. For any entity with 24/7 demands for electricity and heat, such as hospitals, hotels, or military facilities, fuel cells offer advanced capabilities traditional on-site power generators can’t match.
“Our systems start at 200kW and go up to 3MW as an individual product offering, but we can gang multiple units together to provide the needed capacity to suit customer requirements,” said Logan.
Making improvements
The fuel cell industry is also involved in small systems for cell phones, laptops, and other portable devices in addition to the transportation sector. For now, LEC isn’t too involved in that part of the industry, focusing primarily on stationary applications, although it is beginning to get involved with mobile fuel cell technologies.
The real secret for long-term success for LEC revolves around mainstreaming the technology. Common complaints about fuel cells include reliability and cost. As we’ve already seen, fuel cell manufacturers put many reliability worries to rest during LEC’s lifetime, at least in the case of stationary prime movers and backup power applications. The real remaining concern is cost. Part of that involves improving current manufacturing and installation techniques, as well as generating more orders for manufacturers. But just as important is emphasizing the benefits of fuel cells.
“There is growing social awareness about cleaner air, water, and energy in the power industry, and fuel cells have a strategic role in helping that come about,” said Logan. “But in the US, companies still want low-cost solutions to suit their immediate goals, whereas in the UK they rate carbon reduction and clean energy as more important than cost.”
To overcome market resistance to fuel cells, industry building is one of LEC’s biggest priorities. Logan is currently president of the Fuel Cell Seminar & Exposition board of directors, which serves as a platform to help develop industry awareness in the marketplace.
LEC is also looking at ways to hybridize fuel cell products, coupling them with other renewable power technologies like wind and solar. Fuel cells are more effective and deliver power continuously, unlike solar and wind, which are dependent on the elements. Combining technologies could be one recipe for bringing these alternative technologies into the mainstream.
“No one knows how much rhetoric will turn into policy, and instituting cap and trade legislation or raising renewable portfolio standards on utilities may be painful for energy consumers. But reducing cost by improving manufacturing and increasing orders and market awareness will cause them to make buying decisions they otherwise wouldn’t and impact the future of fuel cells and other alternatives,” Logan said.
“We are trying to hasten that day, but until then, we’re grateful for federal and state incentive programs like those managed by the Self Generation Incentive Program (SGIP) in California and the Connecticut Clean Energy Fund that help transform the market by providing grants for fuel cells and other alternative energy projects.”
Source: American Executive
About Logan Energy
LOGANEnergy is a recognized world leader providing fuel cell solutions that target customer desires for clean energy services. Their professional staff has over 90 years experience with fuel cell product development and deployment specializing in planning, applications engineering and design, site construction, installation, commissioning, start-up and after market services. LOGAN’s team has installed more than 125 commercial and small-scale fuel cell projects totaling over 10 megawatts of power. LOGAN’s role in this project is to design, install, commission and provide technical support services for the ten fuel cell units to be deployed at Ft. Jackson, SC.
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