Due to the attention that automakers have given to fuel cells, their potential utility in other sectors has not been highlighted. There are many other applications for fuel cells, including generation of electricity and heat, and supply of hot water. Numerous companies are using this technology and reaping significant profits.

The Ontario Power Generation Inc and a group of partners have started the world's largest precommercial project on solid oxide fuel cells (SOFCs). Costing US $18 million, it will provide heat and electricity to buildings. The plant is being developed at a research facility in Toronto and is expected to be completed in May 2001. The project will receive financial support from Ontario Power, the federal government and the US department of energy, among others.

The SOFC is a fully ceramic, has no moving parts and runs on natural gas. It can also run on diesel or propane. After it is completed, there will be no need for electrical grids to provide power. The SOFC will be small enough to be fitted into an industrial building or large institution. Unlike generators, it will operate quietly. The pilot project will power about 250 homes with an output of 250 kilowatts. Once developed, the fuel cell is also expected to use 85 per cent of energy available in natural gas if both electricity and hot water are used. It will also have double the energy efficiency of a large coal-fired power plant that has 35 per cent efficiency with no heat recovery.