Stationary fuel cells poised to transform global energy landscape

The adoption of stationary fuel cells is accelerating, driven by rising energy demands, concerns over grid reliability, and a global push for cleaner alternatives to fossil fuels.

IDTechEx's latest report, Stationary Fuel Cell Markets 2025-2035: Technologies, Players & Forecasts, delves into the potential of this evolving market, analysing different fuel cell technologies, their applications, and challenges.

Meeting growing energy needs

Global energy consumption continues to climb, fuelled by economic growth and power-intensive technologies. In 2023 alone, energy use increased by 2%, raising concerns over energy security and the need for sustainable power solutions. Stationary fuel cells, which generate electricity by combining hydrogen and oxygen, are gaining traction as a reliable energy source. They can operate independently or as part of larger fuel cell stacks, offering scalable solutions for backup power and continuous operations in areas prone to grid instability or limited power access.

Fuel cell technologies and applications

Fuel cell systems vary by operating temperature, efficiency, and use cases. High-temperature systems, such as solid oxide (SOFC) and molten carbonate fuel cells, excel in industrial applications due to their ability to reform hydrogen carrier fuels and operate in combined heat and power (CHP) modes. These systems provide flexibility in fuel sourcing, including natural gas and biogas, though they still face sustainability challenges.

Medium-temperature systems, like phosphoric acid and alkaline fuel cells, operate up to 200°C and are often used in specific industrial and commercial settings. However, these require greater maintenance due to liquid electrolytes and higher operating costs.

Proton exchange membrane fuel cells (PEMFCs), which operate at lower temperatures below 100°C, are noted for their efficiency, compact size, and responsiveness to power demand changes. These qualities make PEMFCs particularly suitable for backup power systems and transportable applications.

Challenges in hydrogen sourcing

Hydrogen availability and purity remain key hurdles for stationary fuel cell adoption. While PEMFCs require high-purity hydrogen and are sensitive to impurities, high-temperature systems like SOFCs offer greater fuel flexibility, supporting alternative fuels like natural gas. However, the lack of a robust hydrogen infrastructure and the cost of green hydrogen remain barriers to widespread adoption.

Market outlook

With global energy consumption projected to grow by 3.4% annually through 2026, the demand for stationary fuel cells is set to expand. IDTechEx forecasts that annual commercial demand for stationary fuel cells will exceed 1.9 GW by 2035, driven by applications in residential, industrial, and utility sectors. Although over 80% of global energy is still derived from fossil fuels, the increasing emphasis on sustainability and renewable energy offers significant growth opportunities for fuel cell technologies.

Stationary fuel cells, particularly PEMFCs and SOFCs, are positioned to lead this market transformation, provided advances in hydrogen production and infrastructure can meet the growing demand for cleaner energy solutions.