Monday, March 15, 2010

Bloom Box is still no magic box

The hype these days over the Bloom Energy "Bloom Box Energy Server" may sound like a magic box indeed. A promise of unlimited energy produced close to the end user at a rate close to that of a local utility, but a closer look shows this is no magic box.

The Bloom energy server is a new flavor of fuel cell, that being said, the bottom line is this technology still requires fuel to convert to energy.

According to an article in the New York Times, Bloom devices can produce power at 8 to 10 cents per kWh using natural gas--lower than some commercial electricity prices, but remember: natural gas isn't a renewable resource. Also, Carbon dioxide and water are byproducts of the gas-to-electricity reaction.

The cost of this new whiz bang technology isn't cheap either, a single server is about the size of an industrial shipping crate, consists of four 25 kilowatt modules, and costs $700,000 to $800,000. In all, that means power for 9 to 10 cents, but only after current incentives in California.

Right now Bloom has beta units at Google, eBay and FedEx to name a few. Will these magic boxes be the magic bullet that everyone has been looking for? Will they be a better alternative to wind and solar? We will have to wait and see...