First Fuel Cell to Power Residential Building in New York

The Octagon, a LEED Silver 500-unit apartment community on Roosevelt Island, New York, has become the first residential building in the state of New York to be powered and heated by a 400 kW fuel cell. The project was supported by $1.2 million in financial incentives from the New York State Energy Research and Development Authority (NYSERDA). The fuel cell from UTC Power arrived on Roosevelt Island this winter and is now operating at full capacity.  

The fuel cell, a PureCell System Model 400, is a combined heat and power (CHP) system. It converts natural gas to electricity and heat through a combustion-free, electrochemical process to provide power and heat to meet the majority of the apartment building's energy demand.  The energy efficiency achieved by the fuel cell is significantly higher than the energy received from the grid and emissions are negligible, according to the provider.  Additionally, the fuel cell's process heat is captured to satisfy the building's space heating and domestic water requirements.  

"On-site fuel cell technology represents the future of electricity generation in this country," said Bruce Becker, president, Becker + Becker, the building's developer and architect. "Traditionally, large capacity fuel cells are utilized at schools, hospitals, and other energy-intensive facilities, but multifamily residential buildings represent a perfect - heretofore uncultivated - opportunity for fuel cell technology because of their ability to continually utilize the fuel cell's process heat in the form of hot water and space heating demand."  The application of the fuel cell at The Octagon is estimated to reduce the carbon emissions of the site by 790 metric tons annually.  

NYSERDA's CHP Demonstration Program helps showcase pioneering fuel cell projects, such as The Octagon. To encourage others to adopt fuel cell technology, NYSERDA's $21.6 million Customer-Sited Tier Fuel Cell Program provides an incentive toward the cost of fuel cell installations, plus payments over the first three years of operation based on power produced. Funding is awarded to applications received on a first-come, first-serve basis.

In addition to The Octagon, a variety of facilities around the state are installing or operating fuel cells funded partially by NYSERDA, including a Price Chopper store (Colonie), a Coca-Cola Refreshments bottling facility (Elmsford), and the East Rochester Central School District.

With its use of fuel cell power and range of other efficiency measures, such as a 50 kW solar photovoltaic array, The Octagon has become a nationally recognized model for green building. It is a certified LEED Silver community, using approximately 35% less energy than required by code.  Having received financial support from NYSERDA, for energy efficiency measures and now the fuel cells, The Octagon is an example of the successful public-private partnerships forged by NYSERDA to advance New York's ambitious energy and environmental goals.  

The Octagon fuel cell required a significant upfront investment by the primary investor in the building, MEPT, a Union Pension fund committed to responsible property investing.  The project received a grant from NYSERDA to cover approximately half the cost of the fuel cell unit.  Additionally, through the American Recovery and Reinvestment Act of 2009, the project will qualify for a federal refundable tax credit to cover approximately 30% of the installation cost.  This assistance, in addition to the annual energy savings the fuel cell will produce, allow for a payback of approximately five years.