Navigant Research Blog

Japan Fuel Cell Project a Big Step for Bloom

Kerry-Ann Adamson — November 27, 2013

Since coming out of stealth mode in 2010, fuel cell manufacturer Bloom Energy has never been far from the headlines.  Generating more press inches than most other fuel cell companies put together, Bloom has played a careful, and strategic, game with the press and the industry.

With rumors building, again, that Bloom will go public, the timing of this week’s press release stating that Bloom Energy is entering the Japanese market is attention-grabbing.  The installation, a 200 kW solid-oxide fuel cell Bloom Box, is located at SoftBank’s M-Tower in Fukuoka, Japan.  There are no details of follow on orders or scale-up in the country, so this announcement has to be taken at face value: a single initial installation in Japan.

With an investment of over $100 million by European utility E.ON earlier this year, the European market was ticketed by some as the likely first baby step out of the United States for the company.  E.ON, however, made a strategic investment, while Softbank earlier this year formed a JV with Bloom Energy, creating a separate company Bloom Energy Japan Limited.

A Hard Nut

To date Japan has proven a notoriously hard market for non-Japanese fuel cell companies to break into, with companies such as Ballard and Ceramic Fuel Cell having tried in the past.  Alongside South Korea, Japan is still ranked as the most open to fuel cell power generation of any country in the world, and Navigant Research, in the forthcoming white paper entitled “The Fuel Cell and Hydrogen Industries: Ten Trends to Watch in 2014 and Beyond,” forecasts that as of 2014 there will be over 70,000 homes in Japan with a residential fuel cell system installed.  Although the country has been actively developing larger systems, only Fuji Electric with its 100 kW phosphoric acid fuel cell system is currently commercially available in the country.

Going forward in 2014, we can expect more small-scale installations in Japan and a number of high profile announcements from the company.  Outside of Japan and with the resignation in July of Girish Paranjpe, the company’s head of its international operations, it’s anyone’s guess where next for Bloom.  Potential markets include Germany, Russia, and South Korea, alongside India – if another JV is in the cards.

Interest in the stationary fuel cell sector is climbing high again, and companies such as Bloom Energy are at the vanguard of establishing this industry. A successful project in Japan will validate both the technology and the business model.

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