Bloom project is good for state

For several years, Delmarva Power has taken steps to stabilize the price of energy for its Delaware customers while introducing more clean energy sources to the overall supply mix.

Much like an investor should diversify a portfolio of stocks and bonds to avoid the risk of putting too many eggs in one basket, Delmarva Power has been building a portfolio of clean energy supply, which currently includes wind and solar power from the region.

We're doing this in part to meet long-term clean energy goals set by the state of Delaware. We also see this as a reasonable approach to future energy challenges.

Delmarva Power and the state of Delaware now are poised to take yet another positive step in this direction, enabling fuel cells to generate up to 30 megawatts of electricity on the electric system.

The fuel cells, made by Bloom Energy, will use natural gas. By itself, natural gas is a cleaner source for generation than coal or oil. But in this case, fuel cell generation is even cleaner, using an electrochemical process rather than combustion. Absent combustion, there are considerably fewer emissions.

The 30 megawatts of Bloom fuel cell generation will be a significant step toward reaching Delaware's mandatory clean energy goals.

Under the proposed Bloom project, Delmarva Power residential customers will pay, on average, about $1 more a month.

We have taken steps to guard against price volatility.

Yes, energy prices fluctuate.

In this case, however, the per-kilowatt-hour price is fixed, providing a known cost for the clean energy benefits Delmarva Power's customers receive.

In addition, because electric and natural gas prices generally move together, this highly-correlated movement will provide a stable price for our customers.

An upward movement in the price of the natural gas used to fuel the units will, in general, be offset by an anticipated increase in the project's electric revenue, which flows back to customers.

The 30-megawatt Bloom fuel cell project also strengthens our clean energy portfolio from a reliability standpoint, since fuel cells run 365 days a year, 24 hours a day.

The fuel cells -- small, unobtrusive, quiet, clean and safe -- do not require large tracts of land; they will be located at existing Delmarva Power substations.

Of equal importance, this initiative is a major economic development project for the state of Delaware.

If the 30-megawatt project is approved, Bloom Energy will build a new high tech fuel cell manufacturing plant at the site of the former Chrysler plant in Newark, resulting in hundreds of new jobs and a center for research, development and education at the University of Delaware.

The state of Delaware and Delmarva Power's customers will all benefit from this unique agreement to bring-high tech manufacturing and research jobs to Delaware, while generating clean, reliable energy that protects and preserves Delaware's environment.

Source: Gary Stockbridge, DelawareOnLine