H/Cell Energy Corp. (OTC:HCCC) has developed a first of its kind hydrogen energy system for residential and commercial properties, which is also applicable for transportation fueling stations.
The system (HC-1), combines solar technology with hydrogen energy to provide consistency in energy storage that eliminates the need for users to rely purely on solar, wind or batteries.
The company is operationally profitable and rapidly growing their foothold in the renewable energy space. With $40 million in contract bids outstanding, of which nearly $4 million is specific to renewable energy, H/Cell will not be flying under investors’ radar screens for much longer.
According to Bloomberg, the cost to produce the hydrogen fuel is seen falling up to 80% by 2030 as new technologies emerge. In a new market analysis, Bloomberg New Energy Finance forecasts that hydrogen prices could even drop to as low as 80 cents by 2050, which equates to about $6 per million BTUs of natural gas. Another new report, titled, “Economics of converting renewable power to hydrogen,” shows that renewable hydrogen is already a cost-efficient alternative for certain uses in Texas and Germany.
As a cheap commodity, hydrogen will turn the energy industry on its head. It could also accelerate growth in the hydrogen market that Persistence Market Research already forecasts to increase 6.1% annually to reach $200 billion by 2025.
The changes are playing right into the business model of H/Cell Energy Corporation (OTCQB:HCCC), which has developed a hydrogen energy system for residential and commercial properties, as well as being applicable for fueling stations for transportation. The system, called HC-1, combines solar technology with hydrogen energy to provide consistency in energy storage that eliminates the need for users to rely purely on solar, wind or batteries.
With HC-1, users are delivered clean energy allowing them to run independent of the utility grid and also provide energy to the utility grid for monetary credits.
Each HC-1 system is designed to accommodate the electrical loads for a customer. The system is scalable and can be configured to meet any kilowatt hour (kWh) demands. The installation includes solar panels, a hydrogen generator, a fuel cell and a tank located exterior to the property with the battery system located inside the property.
How the system works is complicated in detail, but quite easy to understand at the surface. When there is solar power, the solar modules produce electricity that charges a bank of batteries. Once those batteries are charged, the excess electricity powers a hydrogen generator that electrolyzes water, extracting the hydrogen in a gasified state, which is stored in a tank.
When the tank is full, the excess electricity can be sent from the batteries to the utility grid, earning the system owner energy credits.
The owner uses electricity held in the charged batteries. If there isn’t ample solar power to charge the batteries, the system processes the stored hydrogen through a fuel cell to charge the batteries to meet the electricity demand.
Through the usage of solar and hydrogen technologies, the system is able to provide a steady supply of clean electricity independent of the utility grid. The combination of the two has the added benefit of requiring a smaller battery storage footprint compared to solar on its own.
This isn’t hypothetical science, two projects have previously been installed in New Jersey. The one in Pennington generates 150 kWh of electricity per day on average, of which the owner only requires 50 kWh each day. The owner has zero electricity bill and receives an average of $9,000 annually in energy credits from the utility company. With investment credits, the system cost about $100,000 to the owner, meaning a rapid ROI when considering savings on monthly electric bill and energy credits.
The other install, in Hopewell, delivered similar results. The owner requires about 40 kWh from the 120 kWh produced each day by the system. Energy credits from the utility work out to $8,000 per year on average and the owner has a net zero electricity bill.
