Today is the official unveiling of the Bloom Box by Bloom Energy, so we’ll hopefully be getting more and more information on this innovative new fuel cell.

The Christian Science Monitor has an article that nicely summarizes how the technology works.

In case you’ve not read how the Bloom Box system works, each “power plant-in-a-box” come chock full of thin fuel cells, bundled and packaged into an outdoor-safe case. The individual cells soak up oxygen on one side, “and fuel on the other. The two combine within the cell to create a chemical reaction that produces electricity,” reported CBS last night. “There’s no need for burning or combustion” but it still requires some form of fuel to work. What kind is up to the owner.

“Our system can use fossil fuels like natural gas. Our system can use renewable fuels like landfill gas, bio-gas,” Sridhar says. “We can use solar.”

In some cases, CO2 is still being emitted by whatever power is feeding the Bloom Box. Rather than calling this new device “zero emission energy,” maybe it’s better to think of it as a booster pack for already-green sources and as an impressive new filter for dirty ones.

Also, The New York Times reports that the Bloom Box generates electricity at competitive rates.

Mr. Sridhar said the Bloom Energy Server has been generating electricity at a cost of 8 to 10 cents a kilowatt-hour.

In California, where Bloom has installed 30 fuel-cell systems, commercial electricity rates averaged about 14 cents a kilowatt-hour in October 2009, according to the latest figures from the United States Department of Energy. Elsewhere, commercial rates averaged 7 to 24 cents a kilowatt-hour.

Last July, eBay flipped the switch on five Bloom Energy Servers that now supply 15 percent of the electricity at its San Jose, Calif., campus, or about five times as much energy as generated by its 3,248 solar panels, according to Amy Skoczlas Cole, director of the company’s Green Team.

“We’re expecting a three-year payback period,” said Ms. Skoczlas Cole, adding that the calculation includes state and federal tax incentives that halved the price of the fuel cells.

Very impressive!

Get ready to hear about the Bloom Box. Beginning with this segment tonight on 60 Minutes, Bloom Energy, a fuel cell company backed with roughly $400 million in venture capital, is unveiling a product that it’s CEO claims can help make the energy grid obsolete. The entire segment is fascinating. On Wednesday the company will have a big press event in Silicon Valley to show off the technology.

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According to Bloom Energy, a Bloom Box is like a small power plant located in your back yard. One of the more fascinating parts of the segment had CEO K.R. Sridhar hold a small stack of plates that he claimed could power a typical American home. If you stack up more of them, you get the Bloom Boxes we saw in the segment that are now being tested by companies like eBay and Google. If everyone has a Bloom Box or something like it, the electrical grid is no longer necessary. That may seem to be far-fetched, but having this option would revolutionize the production of electricity here and around the world.

One innovation seems to be the use of oxygen as opposed to hydrogen, which differentiates this from fuel cells offered by other companies. We’ll probably learn much more in the weeks to come as the world begins to digest the claims being made by the company. How does it work?

Hydrocarbons such as natural gas or biofuel (stored in an adjacent tank) are pumped into the Bloom Box – ceramic plates stacked atop each other to form modules that can be assembled into a unit of any size – and out comes abundant, reliable, cleaner electricity. The company says the unit does not vibrate, emits no sound, and has no smell.

Sridhar, an India-born PhD who once led a team of NASA scientists trying to develop the technology to sustain life on Mars, holds one of the modules in his hand. Stacking them into a bread loaf-sized unit, he says, can produce one kilowatt of electricity, enough to power an American home. Sridhar explains that it has taken so long to produce this contraption because he is building not just a company but an entire industry. “You are used to market sizes that start with a ‘B’,” he told venture capitalists when the company launched in 2002. “This is a market size that starts with a ‘T’.”

This Forbes article goes on to explain that there’s still some healthy skepticism about Sridhar’s claims and they note that the company has lost millions, but that really isn’t relevant. The key here is cost, and if these boxes produce energy cheaply, the sky is the limit.

There are all sorts of rumors about a huge government contract and big orders from other companies, along with possible DOE stimulus funds.

This part of the 60 Minutes segment tells me that the Bloom Box can be a game-changer.

Another company that has bought and is testing the Bloom box so Sridhar can work out the kinks is eBay. Its boxes are on the lawn in the middle of its campus in San Jose.

John Donahoe, eBay’s CEO, says its five boxes were installed nine months ago and have already saved the company more than $100,000 in electricity costs.

“It’s been very successful thus far. They’ve done what they said they would do,” he told Stahl.

eBay’s boxes run on bio-gas made from landfill waste, so they’re carbon neutral. Donahoe took us up to the roof to show off the company’s more than 3,000 solar panels. But they generate a lot less electricity than the boxes on the lawn.

“So this, on five buildings, acres and acres and acres,” Stahl remarked.

“Yes. The footprint for Bloom is much more efficient,” Donahoe said. “When you average it over seven days a week, 24 hours a day, the Bloom box puts out five times as much power that we can actually use.”

If costs are that low, the impact might be close to the Company’s aggressive claims.

We waste a significant amount of electricity due to an outdated and inefficient electric grid in the United States. Thus, this investment is significant.

President Barack Obama on Tuesday will announce $3.4 billion in government grants to help build a “smart” electric grid that will save consumers money on their utility bills, reduce blackouts and carry power supplies generated by solar and wind energy, the White House said.

It marks the largest award made in a single day from the $787 billion stimulus package approved by Congress, and will create tens of thousands of jobs while upgrading the U.S. electric grid, according to administration officials.

The grants, which range from $400,000 to $200 million, will go to 100 companies, utilities, manufacturers, cities and other partners in 49 states.

This investment is only the first step, and part of the criteria here was the speed with which companies could implement the changes, as this money comes from the stimulus package. For example, the grants will not be used to build new power lines, but improve the capabilities of the electrical system. The funds will be used for a variety of projects, including approximately “18 million smart meters that will help consumers manage energy use in their homes, 700 automated substations to make it faster for utilities to restore power knocked out by storms and 200,000 smart transformers that allow power companies to replace units before they fail, thus avoiding outages.” Companies had to bid and compete for the funds, and the winning companies secured an additional $4.7 billion in private money to match their government grants, resulting in a total of $8.1 billion in total investment in the smart grid.

The smart meters are critical, as they encourage consumers to use electricity more efficiently. If you can see on your meter that running the dishwasher costs you more during the day, you will consider running it at night instead when rates are cheaper. If you’re costs are spiking during the day, you might realize that you can open the windows instead of running the air conditioner.

Democrat John Kerry and Republican Lindsey Graham don’t agree on much. The above photo from FOX News Sunday shows the two Senators sparring in the fall of 2008.

The two Senators, however, have teamed up to write a compelling Op-Ed in today’s New York Times in which they argue for a bi-partisan approach to addressing climate change legislation. This is a must-read for anyone who cares about this issue, and it could offer some real momentum for an issue that many believe will be stalled in the Senate.

If Lindsey Graham is on board, one would think that he could bring along more Republicans. One reason Graham is on board, and there’s hope to bring along more Republicans, is the emphasis on using nuclear power as one of the options. The left needs to become pragmatic over nuclear power, and realize that it offers the key to obtaining broad support.

Kerry and Graham also signal that a compromise is needed on domestic drilling. The clean energy revolution will not happen over-night, and if we need to rely in the short term on some fossil fuels, it’s better for the U.S. economy to use more domestic oil. We certainly shouldn’t subsidize it, but in the context of a carbon tax or cap-and-trade, permitting more domestic production makes tons of sense, particularly given the current economic crisis.

Hopefully, this can be the starting point for a grand bargain on energy.

The Plain Dealer has a misleading headline regarding plug-in hybrids: “Plug-in hybrids could prove costly for utility companies.” That’s true only if we approach the issue of charging plug-in hybrids without using our heads, but as the article points out there are very logical ways to address this potential problem.

Scott Moore, vice president of transmission for American Electric Power, said that issue could be solved either by smart chargers on the cars or by smart charging plugs in houses. If drivers plugged in their cars at 6 p.m., but the car didn’t start charging until 2 a.m., the system could probably handle the demand.

Even better would be if the driver plugged his car into an Internet-connected charger that could switch on and off as power was available. On a blustery day, when wind farms were producing extra power, cars could charge in the early evening. On a more typical day, charging could happen late at night.

“You’d get about 80 percent of the benefit from just changing the time of charging until early morning,” Moore said. “You’d get an extra 20 percent benefit from letting (utility companies) figure out when to charge you.”

The solution is obvious, so at least they got that part right. It also highlights the need for a smart grid and smart meters connected to the Internet so we can see how we use electricity and how we can make minor modifications to our behavior, or set clear guidelines, so that we use energy when it’s least expensive.

The New York Times has a cool new story about the development of algae for use as a biofuel. The article explains how a new start-up company co-founded by a Colorado State University professor recently introduced a strain of algae that loves carbon dioxide into a water tank next to a natural gas processing plant.

The story is interesting as it also focuses on the involvement of the Southern Utes Indian community as an investor in the project. But the most interesting element involves the interrelated efforts to develop alternative energy.

One of the keys to new projects is eliminating waste and taking advantage of heat and other byproducts of one energy-generating process and using these byproducts in another process built next to the first process. Here’s a summary of how this will work regarding this algae process.

Solix’s facility project is next to the natural gas processing plant for access to the carbon dioxide waste stream, which will be used to nourish the algae — a kind of biological recycling of carbon dioxide before its discharge into the atmosphere as the vegetable fuel is burned.

The plant also produces waste heat, which could be used to warm the algae beds in winter. In addition, the high desert plateau of southwest Colorado is one of the sunniest spots in the nation, providing solar radiation that accelerates algae growth.

Central to Solix’s business model, Dr. Willson said, is the hope that power plants and other factories now venting carbon dioxide will allow the company to build an algae farm next to their carbon dioxide vent pipes. A plant could sell the oil or biodiesel, and Solix would earn its return by being a part owner-operator, or by licensing the technology.

Conservation and efficiency are the new buzzwords in the renewable energy field (among many). Energy should never go to waste, and many projects that were once too difficult to make commercially viable can have a new life when one examines how to exploit byproducts from well-established processes. The possibilities are endless.

Conservatives love arguing that it’s pointless to battle global warming when countries like China are growing and adding pumping more carbon into the atmosphere. In one sense they have a point, but what if China invests heavily in renewable energy? Also, while doing so, what if they take the lead in green manufacturing and technology?

As the United States takes its first steps toward mandating that power companies generate more electricity from renewable sources, China already has a similar requirement and is investing billions to remake itself into a green energy superpower.

Through a combination of carrots and sticks, Beijing is starting to change how this country generates energy. Although coal remains the biggest source of energy and is almost certain to stay that way, the rise of renewable energy, especially wind power, is helping to slow China’s steep growth in emissions of global warming gases.

While the House of Representatives approved a requirement last week that American utilities generate more of their power from renewable sources of energy, and the Senate will consider similar proposals over the summer, China imposed such a requirement almost two years ago.

This year China is on track to pass the United States as the world’s largest market for wind turbines — after doubling wind power capacity in each of the last four years. State-owned power companies are competing to see which can build solar plants fastest, though these projects are much smaller than the wind projects. And other green energy projects, like burning farm waste to generate electricity, are sprouting up all over the country.

This oasis town deep in the Gobi Desert along the famed Silk Road and the surrounding wilderness of beige sand dunes and vast gravel wastelands has become a center of China’s drive to lead the world in wind and solar energy.

A series of projects is under construction on the nearly lifeless plateau to the southeast of Dunhuang, including one of six immense wind power projects now being built around China, each with the capacity of more than 16 large coal-fired power plants.

Each of the six projects “totally dwarfs anything else, anywhere else in the world,” said Steve Sawyer, the secretary general of the Global Wind Energy Council, an industry group in Brussels.

In one sense, this is not a zero-sum game. We want China to make this progress, and it’s encouraging to see these investments in a country that until recently was becoming an environmental nightmare. Also, green technology will spread quickly around the world, and many green jobs involving installation and maintenance cannot be outsourced.

That said, it’s pathetic to see the Chinese move boldly in this area while we have one political party in the United States that resists investments in green energy for all sorts of reasons.

We’re launching this blog at a time that’s very exciting for those of us who want to see a greener future for America and the world. For years we have relied on abundant but dirty energy. Now we’re seeing the ill effects of these practices.

Due to a number of factors ranging from global warming to our dependence on foreign oil, a consensus is building around the notion that we need to change things here at home. There will be plenty of discussion and disagreement around the specifics, but most agree that we can make tremendous progress by encouraging conservation and renewable fuels.

The House just passed a cap-and-trade bill, so the debate will be heating up. We hope to contribute by highlighting information and arguments that will help advance the debate.

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