Economic Case for Replacing High-Emitting Peaker Plants with Fuel Cells for Automotive Applications

The identification of clean and cost-effective solutions to replace high-emitting peaker plants and support a just transition is a challenge faced by utilities across the US today. However, falling costs of hydrogen production as well as the widespread availability of fuel cells for automotive applications have made them an attractive option for a zero-emission peak power supply. This study evaluates the techno-economics, operation, and environmental justice impacts of siting a peaker plant based on fuel cells for automotive applications through the lens of the existing Intermountain Power Plant, in order to supply peak power to the Los Angeles basin. Compared to the fossil fuel-fired peakers in operation today, the fuel cell peaker would be lower-cost up to a 17% capacity factor with Inflation Reduction Act incentives while also reducing air pollution in environmental justice communities. With corresponding transmission upgrades, the Intermountain site could host up to a 5 GW fuel cell peaker in the future.