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Bloom Energy attracts data center operators in Cali

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Updated: Silicon Valley’s fuel cell maker Bloom Energy continues to add customers looking to power part of their data center operations with distributed, cleaner power in California. On Thursday, the U.S. division of Japanese telecom giant NTT (s ntt), NTT America, said it will install five Bloom fuel cells at one of its data center facilities in San Jose, Calif.

Nine-year-old Bloom Energy sells an industrial-sized fuel cell (which looks like a large refrigerator) that uses a chemical reaction to produce electricity. The Bloom Boxes suck up oxygen on one side and fuel (usually natural gas or biogas) on the other side, and produce power on-site for companies in a more efficient and less carbon-intensive manner than using the grid (depending on what fuel the company uses).

NTT America says it will use biogas (gas generated by decomposing organic material) produced at a California dairy farm as fuel for the Bloom fuel cells. That means NTT’s fuel cells won’t emit as much carbon as many of the Bloom fuel cells that are being powered by natural gas. Updated: NTT America has corrected the source of the biogas to two landfills in Pennsylvania.

Five Bloom fuel cells have a capacity of 500 kilowatts, which is the equivalent power for about 500 houses or five large office buildings. Each Bloom fuel cell costs around $700,000 to $800,000 before subsidies, so NTT is spending a couple million dollars on the installation.

Data center operators are looking for ways to make their facilities more energy-efficient and greener as a way to cut growing energy bills and also to highlight company sustainability. While fuel cells are still not commonly used to power data centers, Bloom has been slowly growing its customer list of telcos and Internet companies that want to use the Bloom boxes for part of their data center operations.

Earlier this month, AT&T (s T) said it plans to install a whopping 7.5 MW worth of Bloom fuel cells (that’s 75 fuel cells) at 11 AT&T offices in California. AT&T said it would use the fuel cell power for data centers as well as administration offices and facilities that house network equipment.

Fuel cells likely won’t be used as a main, or stand alone, power source for a data center. As we pointed out on GigaOM Pro (subscription required) last year, data centers need a power source that is so-called “five nines” (99.999 percent). Google (s goog) has said the Bloom Box it was using on its campus had an availability rating of 98 percent, which translates into around seven days of downtime a year: no good for a stand alone power source for a data center running web sites that can’t go down.

Bloom has also found success with data center operators in California because state subsidies make the Bloom boxes a lot more economical in California. Customers in the state include Google, eBay (s ebay) and Adobe (s adbe).

Top image is NTT’s installation, and the bottom is the installation at Adobe.

7 Responses to “Bloom Energy attracts data center operators in Cali”

      • I finally got this answer for you. And you were right! This is NTT’s official response: NTT America incorrectly noted the source of the biogas for its fuel cells as a California dairy farm collective. The correct source of the biogas for the fuel cells are two Pennsylvania landfills. With multiple sources and suppliers of biogas under consideration, NTT America would like to reference the correct source of its biogas for this deployment.

        I’ll update this post to reflect this.

      • tesla_x

        repost for reference….

        Great to hear you got the response from NTT.

        Good closure to that specific issue.

        This raises another issue though. I hope the NTT deal is not counting on SGIP $$$ for the biogas….it shouldn’t count since I think the latest on SGIP only counts IN STATE sources of directed biogas for that additional $2/watt credit.

        I hope there will be proper accounting for WHERE the biogas is coming from on a project by project basis since out of state sources could taint the SGIP program when those funds are used

  1. Help me understand this. The bloom box here are functioning as generators? I heard that it is less carbon-intensive. But how does compares to conventional generator and the gird its in terms of efficiency?

  2. tesla_x

    Name the CA dairy farm providing the pipeline injected and directed biogas to the NTT/Bloom Project.

    To my knowledge, there is no Dairy in the state today making directed biogas thru a pipeline.