Bloom Energy revs up for mystery fuel cell launch

Secretive US fuel cell developer Bloom Energy will tomorrow finally unveil the Bloom Box, a high-capacity fuel cell designed to be installed in residences and small businesses.

The company, which was the subject of a CBS 60 Minutes special this weekend, appears to be producing the fuel cell version of the Apple iPad – the industry buzz in the run-up to the launch is reminiscent of Apple's product, which was the subject of rumours for months leading up to its launch.

Bloom Energy's founder, KR Sridhar, has been working on the fuel cells for 10 years. Originally developed as a project that could produce oxygen on Mars, the processes were reportedly reversed to produce electricity from oxygen when NASA shelved plans for a Mars mission. Each cell, which could power 100 homes, uses stacks of solid oxide fuel cells that draw oxygen from one side, and fuel – which could be biomass, gas, or solar – from the other.

Details surrounding the company remain sketchy, but Bloom is said to be promoting a power purchase agreement business model, in which it might own the fuel cell, and simply sell the electricity to customers. The cell would potentially replace the power grid for participating customers, and could also be purchased by utilities as a means of serving customers from a local substation.

"These things fuel almost 15 per cent of the power on this campus," said John Donahoe, chief executive of eBay, which has been trialling the technology. The online auction firm installed five of the boxes – which retail for $700,000 (£454,000)-$800,000 each – nine months ago. The company said it has already saved the firm $100,000 in electrical costs through the project.

Bloom Energy said other current customers include San Francisco Airport, Google, Wal-Mart, Staples and the CIA.