U.S. Fuel Cell Market Size,
by Application (Units)
The biggest challenge for the adoption of fuel cells that run solely on hydrogen gas is the high cost of the energy necessary to create the hydrogen gas. It is an energy-intensive process to convert water to hydrogen and oxygen and then use the hydrogen to produce energy. Likewise, capturing the carbon from a natural gas process is not currently cost-effective, though innovation in this area continues.
The levelized cost of energy from fuel cells is becoming much more competitive with current retail rates charged by utilities, particularly in coastal states. In many business cases, it makes sense to consider fuel cells, particularly if facilities are using large amounts of energy at high rates.