Key takeawayChangjiang Securities believes SOFCs’ modular deployment and continuous power-supply capabilities suit AI data centers and can supplement grids that face difficulty expanding capacity in the short term, but their cost advantage depends on conditions such as tax credits.
Why do data centers need new power-supply solutions?
- In a community framework, OpenAI pledged to avoid using nondisclosure agreements when discussing data center projects, ensure local residents do not have to pay for the electricity required by projects, and reduce consumption and return electricity to the grid during peak demand periods.
- Changjiang Securities points out that growth in electricity use by AI data centers is occurring alongside difficulty expanding grid capacity in the short term. Gas turbine delivery times have lengthened, while small nuclear power plants have long construction timelines, so solutions located near loads, with modular designs and continuous power supply are attracting attention.
What are the advantages of SOFCs?
- SOFCs convert the chemical energy in fuel directly into electricity through an electrochemical reaction. The material states that their power-generation efficiency is 50%–60%, their overall combined heat and power efficiency can reach up to 90%, and they offer features such as modular deployment and fuel flexibility.
- Deployment speed is a key point of comparison: the material states that SOFC construction can take as little as 90 days, compared with 2–5 years or more for grid connection, while the average delivery lead time for gas turbines is as long as 5 years.
- According to the U.S. Department of Energy’s estimate for a hundred-megawatt-class hydrogen-fueled SOFC, the levelized cost of electricity is about 125 dollars per megawatt-hour without an investment tax credit; under a 40% credit scenario, it falls to about 100 dollars per megawatt-hour, below that of a simple-cycle gas turbine.
How far has the technology’s commercialization progressed?
- The material states that SOFC support structures are shifting from electrolyte-supported to metal-supported designs. The latter offer the potential for lower operating temperatures, lower costs and faster start-up, and are viewed as a long-term direction.
- Among the companies involved, Broad-Ocean Motor has mastered in-house production technology for the entire single-cell process and is advancing process scale-up and system integration. Saimo Technology plans to develop fuel-cell automation equipment, production lines and SOFC-based combined heat and power systems.
