Ikeda Etal

This knowledge has strengthened our confidence that long term cell stability will be achieved.

(2) Cost Reduction

While the production cost of PC25 C has been reduced by about 50% in comparison with the preceding model, further cost reduction of FCPP is required for market expansion in the future. Since the reliability of PC25 FCPP is being proven, we believe that cost reduction is the most important factor to be pursued. Cost reduction of FCPP will be accomplished in two ways ; technical innovation and increase of production rate (mass-production effect).

With regard to technical innovation for cost reduction, Toshiba and IFC/ONSI will continue to perform joint activities focusing on cell stack, reformer and inverter, as well as ancillary system improvements.

In order to strongly pursue the mass-production effect, Toshiba and IFC/ONSI have strategically agreed that manufacturing of all PC25 FCPPs contracted by-Toshiba or IFC/ONSI with customers should be concentrated into IFC/ONSI. This enables IFC/ONSI to make mass-procurement of materials/components from outside venders and also improve productivity at IFC/ONSI's factory, contributing to cost reduction.

The above strategy is based on the strong cooperation between. Toshiba and IFC/ONSI. That is, with respect to sales by Toshiba, these parties will act as_one body and IFC/ONSI's factory functions as if a part of Toshiba's, while Toshiba will take the full responsibility to its customers for all aspects of transportation, supervision of installation / trial operation, service and warrantee for any FCPPs to be contracted by Toshiba. In order to smoothly perform the above formation, Toshiba has assigned engineers to work at IFC/ONSI, and a Toshiba manager is acting as a vice president of IFC.

(3) Maintenance and Servicing

Toshiba is making efforts to provide the maintenance support system required to achieve customer satisfaciton. In the spring of 1996, Toshiba established a local service center in the Osaka area to promptly make a diagnosis of problems using a Remote Diagnostic Terminal (RDT). Also, Toshiba will open a training school so that customers can gain practical experience in the operation and maintenance of FCPP and learn troubleshooting.

4. ■ DEVELOPMENT OF VARIOUS APPLICATIONS

To expand the market with making full use of advantages and flexibility of FCPP, Toshiba is developing various kind of applications for on-site power plant. Some examples are presented as follows:

(l)Direct Current Supply System :

A part of DC power from the cell stack can be supplied to DC loads directly or through DC/DC converter.

This system will be attractive for the site where both of AC and DC power sources are required such as chemical process facility, water purifying plant, and DC power source for electronics applications.

(2)Application to Various Fuel Sources:

While natural gas is a prime fuel for FCPP, it can be operated using various fuel sources, such as LPG, kerosene and naphtha. Digester gas which is generated at sewage disposal plants is another alternative fuel source. (See Figure 3)

Figure 3. Schematic of Digester Gas Utilization

(3)Application as UPS Function:

FCPP can be a premium power source in place of conventional UPS (Uninterruptible Power Supply) to supply lower cost power with high quality and reliability to any important loads such as computer facilities.

(4)Steam Supply System :

FCPP can supply heat in the form of steam in 170'C, which is generally utilized as an energy source of absorption chiller to produce cold water for air conditioning or as heat source to boiler feed water.

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