Incumbent technologies

The incumbent technologies do not stand still, but continue to improve in performance, albeit within the envelope of the other components of the energy system—for example, more fuel-efficient internal combustion engine (ICE) vehicles and hybrid propulsion systems that make better use of the existing fueling infrastructure. 

Bosch, R. (2005) Perspective on Fuel Cells vs incumbent technologies. Presentation at the Fuel Cell Seminar, (November 15-17), Palm Springs, California, US. 

The break-even point for introduction of SOFC systems is normally defined as the selling price for the system which makes it competitive with respect to incumbent technology. A more precise definition would be that the equivalent annual cost for the owner should provide an acceptable payback time for the investment, which will typically be higher than the incumbent technology, but the SOFC will benefit from higher efficiency. Unfortunately, it will normally not be possible to take credit for the lowered environmental impact in the form of lower emissions of CO2 and the virtual complete avoidance of sulfur, particulates, and NOx emissions. 

Replacement technology Fuel cells basically provide power and heat, two commodities which are already supplied reliably with incumbent technologies. Fuel cell companies thus have to compete/collaborate with entrenched large OEM s with well-established products, where a lot of investments has been made in R D, manufacturing equipment, and infrastmcture. 

What this all adds up to is no simple, single answer. As the markets grow and the degree of product standardisation in the fuel cell industry increases, adoption will become more routine, but it is always important to look at all the options, including the current incumbent technologies, available, and this means not just fuel cells. 

As with nearly all other applications for fuel cells, the UPS sector already has incumbent technologies with which it is competing for market space. For the sake of clarity, a brief run-through of the two main incumbents, batteries and gensets, is provided. 

As can be seen from these tables, not only are the performance metrics for the technology challenging but also, critically for market success, the cost targets are set a level to ensure competitiveness with incumbent technologies in an open market place (Tables 7.3, 7.4). 

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