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Summary:

ClearEdge Power might not have amassed the funding of Bloom Energy, but it’s getting up there. On Tuesday fuel cell maker ClearEdge Power announced that it has raised a series E round of funding of $73.5 million.

ClearEdge2

ClearEdge Power might not have amassed the funding of Bloom Energy, but it’s getting up there. On Tuesday fuel cell maker ClearEdge Power announced that it has raised a series E round of funding of $73.5 million, from a combo of new share sales and the conversion of previously issued notes. This round brings the company’s funding to about $100 million.

Investors in ClearEdge’s latest round include Artis Capital Management, Güssing Renewable Energy, Sempra Energy’s Southern California Gas Company and Kohlberg Ventures. Producing fuel cells is notoriously capital intensive and difficult to make profitable — Bloom Energy has raised at least $500 million over the years.

Fuel cells look a little bit like industrial refrigerators, and they use a chemical reaction to produce electricity and heat. They are filled with stacks that are lined with catalysts (a metal, sometimes platinum), and a fuel (commonly natural gas) is inserted in one side and runs over the stack. Electricity and heat flow out the other side.

As I pointed out in this article there’s a lot of fuel cell companies that have tried to make manufacturing fuel cells profitable for decades. One of the Achilles heels of fuel cell production is making a stack that lasts and can meet a warranty as high as 10 years.

ClearEdge Power says in its release that it has had year-over-year revenue growth of over 480 percent in the second quarter of 2011 and says it has grown the amount of jobs by 300 percent over a three-year period.

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  1. MySchizo Buddy Tuesday, August 23, 2011

    i would love a good article regarding flywheels

  2. Katie Fehrenbacher Tuesday, August 23, 2011

    @MySchizo Buddy. We can arrange that!

  3. So….what IS their stack life TODAY?

    You should be able to derive it from their warranty and O & M contracts…

    And what is the unsubsidized cost per watt installed?

    GTM did a nice breakdown of this on BLOOM…seems appropriate here.

    What are they doing to extend stack life that others have not?

    Details on reformer and how they clean the gas before it gets to the stack?

    Stack rebuild costs?

    These details are key to ANYONE wanting to purchase this product, and they should not until there are clear answers on each.

    Any hesitation to provide clear answers on all the above mean they have a long way to go and that the tech is not yet ready for deployment.

    If they hit the PPA panic button and hide the O&M, that is not a good sign either.

    Looking forward to straight simple answers, since if they are ‘clear’ on the above, they might actually have an ‘edge’ on other Fuel Cells…*cough*

    Really, I do want to see a fuel cell tech that is not just in it for the public money and can stand on its own as a product that is grid cost competitive without incentives, and makes sense to either be owned or leased…we’ll see…

    1. UTC Power Purecell 400 has 10 year stack warranty

  4. Katie Fehrenbacher Tuesday, August 23, 2011

    @tesla_x, They told me that for the first iteration of the product the stack needs to be swapped out in 3 to 5 years. They have a three year warranty on it.

  5. How much natural gas does clearEdge consume per KWh? How much heat does it produce in KWe?

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