To support the transition to hydrogen fuel cell vehicles, the U.S. Department of Energy (DOE) is focused on the introduction of direct hydrogen polymer electrolyte membrane fuel cells (H-PEMFCs) in near-term markets (markets likely to emerge by 2008). Through Section 783 of the Energy Policy Act of 2005, the DOE may support the federal procurement of stationary, portable, and micro fuel cells. It is anticipated that the federal government, as an early adopter, will have a significant impact on establishing the emerging technology. Here we report on an analysis, performed under contract to the DOE, to identify near-term opportunities for H-PEMFCs in the federal market sector and to quantify the impact Section 783 may have on PEM fuel cell adoption. Near-term opportunities for H-PEMFCs in the following applications were explored, including backup power, portable power, and specialty vehicles. Twelve federal market segments were identified using the benefit segmentation method as having the potential for application of H-PEMFCs.

Secondary research and exploratory primary research, including surveys and interviews with federal users, fuel cell manufacturers and integrators (manufacturers integrating fuel cells into products), competing technology manufacturers, hydrogen suppliers, and industry experts were used to qualify the potential for PEM fuel cell adoption in these federal markets. Likely near-term markets for H-PEMFCs were identified through a down-selection process utilizing rating criteria developed with input from the DOE and industry. Markets identified as likely near-term opportunities for H-PEMFCs are backup power applications at the Federal Aviation Administration (FAA) and the National Oceanic and Atmospheric Administration (NOAA), National Weather Service (NWS), and forklift applications at the Department of Defense (DOD), including the Defense Logistics Agency (DLA). This paper presents an analysis of performance and lifecycle costs needed for H-PEMFCs to penetrate federal market segments in the near term.