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Osaka Gas and Kyocera Launch Major Joint Development to
Introduce Japan's First Solid Oxide Fuel Cell (SOFC)
Cogeneration Systems for Household Use

(This document was translated from the Japanese press release.)
November 24, 2004
Osaka Gas Co., Ltd.
Kyocera Corporation

Osaka Gas Co., Ltd. (President: Hirofumi Shibano) and Kyocera Corporation (President: Yasuo Nishiguchi) have announced the achievement of power generation efficiency of 44% (AC generator output efficiency*1, LHV basis*2) as a result of operational assessments conducted by Osaka Gas for Solid Oxide Fuel Cell (SOFC*3) power generation systems developed by Kyocera. Based on this result, the two companies will launch a major joint development project, which will encompass operational tests to be carried out at actual households starting fiscal 2005. The companies aim to be the first to introduce to the Japanese market the 1kW class SOFC cogeneration systems for household applications.

SOFC cogeneration systems feature impressive power generation efficiency as a component of overall energy efficiency. They are therefore expected to have economic advantages for households that have lower heat demand compared to power demand. The systems are also likely to expand the household cogeneration market, since high-temperature exhaust heat can also be used*4. This result, 44% power generation efficiency (AC generator output efficiency, LHV basis), is four points higher than the 40% primary energy efficiency*5 of power systems consisting of a large-scale thermal power station and power transmission lines. The systems can also deliver high energy-saving performance, irrespective of whether or not there is heat demand.

Using its proprietary flat tube cells, Kyocera has developed the 1kW class SOFC power generation systems. The Company achieved the world's most efficient power generation of 54% (DC generator output efficiency, LHV*6 basis) in December 2003, and demonstrated that it could deliver the basic performance such as startup that supports household operations, and adjustment of power generation volume according to load changes. Kyocera has also developed a method to simultaneously reduce power consumption by improving AC conversion efficiency and by operating supplementary systems, achieving power generation efficiency of 44% (AC generator output efficiency, LHV basis.) The Company is seeking to develop systems that achieve the cost and reliability performance in commercial applications, taking advantage of its ability to independently develop all aspects from cells to systems.

Meanwhile, in March 2003 Osaka Gas released ECOWILL, a gas engine cogeneration system for household application. Osaka Gas is endeavoring to promote cogeneration systems for household use. It has also developed the Polymer Electrolyte Fuel Cell (PEFC) cogeneration systems for household application, which it aims to introduce to the market by fiscal 2005. Osaka Gas has developed technologies in exhaust heat use, learning control systems to optimize the operations according to life patterns, and techniques to desulfurize and transform the natural gas supplied by commercial utility companies for fuel cells in these processes. These are element technologies that are essential for the commercialization of household SOFC cogeneration systems.

Osaka Gas and Kyocera will join together to begin operational testing at actual households in fiscal 2005, aiming to improve efficiency further by the time commercial operations commence. The two companies will also be conducting durability and reliability testing, to enable rapid introduction of the systems to the market.



*1: Power generation efficiency at AC 100V available to customers. Power generation efficiency that subtracts the loss of the inverter to convert a direct current generated at fuel cells into an alternating current, and other supplementary mobile power.

*2: An abbreviation of Lower Heating Value. This is the heat generation volume that subtracts the condensation latent heat of evaporation generated by the burning of fuel from the volume of fuel for heat generation.

*3: An abbreviation of Solid Oxide Fuel Cell.

*4: Cogeneration systems are systems to recover and use the heat generated by power generation. If exhaust heat recovery efficiency is a high component of total efficiency, cogeneration systems offer energy saving benefits for households with high heat demand. For households with low heat demand, they are not economically advantageous. If power generation efficiency is high, cogeneration systems are more economically advantageous for households with lower demand for heat. Therefore, systems with highly efficient exhaust heat recovery are effective for households with high heat demand. Systems with highly efficient power generation are effective for households with low heat demand.

  Power generation efficiency Exhaust heat recovery efficiency
Engine-type cogeneration system: ECOWILL 20% 65%
Osaka Gas target specifications for the PEFC system 35% 45%
Target specifications for the SOFC systems 45% 30%
* LHV basis

* 5: Efficiency at the consumer end, which subtracts the power transmission loss caused by power transmission lines leading to households with low-voltage demand from the average power generation efficiency of the thermal power station. Calculated using the LHV/HHV conversion coefficient based on the value (HHV) of the Energy-Saving Law, amended in fiscal 2002, according to the summary of power supply and demand for fiscal 2001.

* 6: Power generation efficiency based on a direct current generated from fuel cells only.

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From the Press
Osaka Gas Co., Ltd.
Corporate Communications Dept.
06-6205-4515
   
KYOCERA Corporation
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Tel: 075-604-3416 (Direct)
Tokyo
Tel: 03-3274-1577(Direct)
   
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075-604-3579
   
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