Feasibility of Fuel Cells and Cogeneration Potential in Hotel Industry in Puerto Rico

Abstract

This study evaluates the feasibility of using a solid oxide fuel cell (SOFC) as the primary mover in a cogeneration system for hotel applications. A 280kW SOFC system was proposed to meet both the electrical and thermal demands of a hotel, with the thermal energy utilized for hot water production and steam generation for laundry operations. The analysis revealed that, despite an installation cost of $840,000, the system offers significant cost advantages, producing energy at $0.12/kWh compared to the grid operator’s $0.27/kWh, resulting in annual savings exceeding $300,000 and a simple payback period of 2.79 years. Power Purchase Agreements (PPA) further enhance the feasibility, where third-party investment in infrastructure reduces the financial burden of the high initial costs. Future work will explore integrating an absorption chiller for cooling, simulating SOFC performance with advanced tools, and assessing the viability of alternative fuels such as propane to improve flexibility and reduce costs.