AFC, Waste2Tricity to build fuel-cell waste-to-energy plant

Two UK companies announced plans to use fuel cells to increase the efficiency of energy conversion at waste-to-energy plants by as much as 60 percent.

Surrey, England-based fuel cell provider AFC Energy (LON: AFC) said it plans to supply alkaline fuel cells and a £150,000 ($223,665) loan to London-based waste-to-energy company Waste2Tricity for the pilot plant, which could power 22,500 homes using waste diverted from landfills.

Shares of AFC Energy were down more than 13 percent at the close of trading on the London Stock Exchange's Alternative Investment Market for small-cap companies.

In a typical waste-to-energy plant, waste is converted to hydrogen syngas using plasma gasification, a process using extremely high temperatures and controlled oxygen. Syngas is then converted to electricity using internal combustion engine incinerator.

Waste2Tricity plans to improve the efficiency of energy conversion by using an alkaline fuel cell to convert syngas into electricity. Although the proposed plant initially is expected to use an internal combustion engine incinerator, Waste2Tricity plans to incorporate fuel cell technology within four to five years.

A fuel cell-powered operation would have fewer emissions and could raise waste-to-energy efficiency by 60 percent, generating 79,000 megawatt hours per year, Waste2Tricity says. Waste-to-energy plants could produce electricity for as little as £250,000 per megawatt.

In the long term, Waste2Tricity plans to build several energy plants, each converting up to 50,000 metric tons (55,115 tons) of waste per year into electricity.

Sending refuse to power plants instead of landfills is growing in popularity, especially in the United Kingdom, which has limited landfill space. Researchers Frost & Sullivan estimate that European waste-to-energy plant markets will reach $2.7 billion in 2010 (see Waste-to-energy attracting more attention).

Landfills across the world using waste-to- energy systems to capture the potential of refuse. The University of New Hampshire in Durham runs primarily on gas piped in from a landfill where decomposing refuse releases combustible gas (see University of New Hampshire gets gas). Last year, Calif.-based Clean Energy Fuels acquired a landfill gas plant in Texas for $19.1 million in cash (see Clean Energy Fuels buys Texas landfill gas plant).

But with improved energy conversion efficiency, fuel-cell power plants can sell more electricity converted from each ton of waste, Waste2Tricity says. As municipal refuse becomes valuable for waste-to-energy processes, less waste will be sent to landfills.  AFC and Waste2Tricity also say the fuel-cell powered plants would receive Renewable Obligation Certificates, the UK's renewable energy trading credit.

“It has the potential to play a major role in the reduction of waste going to landfill, reduction in CO₂ emissions, provide local authorities with a revenue stream, as well as being a commercially viable proposition,” said Peter Jones of the Waste2Tricity board in a news release.

Waste2Tricity said it is in talks with potential partners for the plant and plans to begin construction within six months.

Waste2Tricity has agreed to give AFC Energy royalty payments and a £1 million ($1.49 million) licensing fee for the fuel cell technology.

Last November, AFC Energy worked out details to deliver its fuel cell system to the Bitterfeld, Germany, hydrogen plant of industrial chemical company AkzoNobel.

In May, AFC Energy raised £4.4 million for its alkaline fuel cell technology by placing 40 million new shares with investors. The company said the money was to be used for the AkzoNobel deal, as well as R&D and scaling manufacturing.