ABSTRACT

As is frequently the case for new technology being developed for commercial applications, product cost is initially a significant barrier. Reformed-methanol fuel cell systems are no different. The assumption is made that no sustainable business model can tolerate a product selling price that is equal to or less than the cost of manufacturing the product. Subsidies, tax incentives, and the like are considered short-term measures implemented to seed the market and are not intended for long-term use. The difference between cost and selling price (margin) is a variable that needs to be addressed in the context of the specific business.Although it is easy to say that fuel cells and reformers must cost less if they are to experience widespread commercial adoption, it is far more difficult to describe a plan for significant cost reduction. This chapter will discuss some approaches that are likely to result in cost reduction without adversely affecting technical performance.