Caterpillar Inc. (NYSE: CAT) shares lose ground Friday, after it announced the success of its collaboration with Microsoft (NASDAQ:MSFT) and Ballard Power Systems (NASDAQ:BLDP) to demonstrate the viability of using large-format hydrogen fuel cells to supply reliable and sustainable backup power for data centers. The demonstration provided valuable insights into the capabilities of fuel cell systems to power multi-megawatt data centers, ensuring uninterrupted power supply to meet 99.999% uptime requirements.
The demonstration was conducted in a challenging environment and validated the hydrogen fuel cell power system's performance at 6,086 ft (1,855 m) above sea level and in below-freezing conditions. The project simulated a 48-hour backup power event at Microsoft's data center in Cheyenne, Wyoming, where a hydrogen fuel cell was integrated into a data center electrical plant to support its critical load. A Caterpillar Microgrid Controller was used to operate two Cat® Power Grid Stabilization (PGS) 1260 battery energy storage systems along with the 1.5 MW hydrogen fuel cell.
Caterpillar led the project, providing the overall system integration, power electronics, and microgrid controls that form the central structure of the hydrogen power solution. "This successful collaboration with Microsoft and Ballard demonstrates the potential of hydrogen fuel cells to help data centers address their critical power needs while reducing their emissions," said Jaime Mineart, senior vice president of Caterpillar Electric Power.
CAT ditched 54 cents to $281.45.
