A fuel cell is simply a battery (or electrochemical conversion device) which produces electric energy and heat by continuously consuming a fuel or reactant from an external source. The fuel cell consists of two electrodes on either side of an electrolyte membrane. Hydrogen, the fuel, is supplied to an electrode ( the anode ) where a catalyst helps to strip the Hydrogen atom of it's electron which in turn travels through an external circuit that can be converted into electric power. The Hydrogen proton migrates through the electrolyte membrane to the cathode side, where it combines with Oxygen molecules and the electrons from the external circuit to produce water.
Durability improvement and cost reduction are the two most significant challenges to fuel cell commercialization. With a goal of $35 per killowat , on-going research is focussed towards reducing material and production costs and improving water, air and temperature management of fuel cell systems . The department of Energy reported in 2008 that fuel cell costs in volume production are at $ 73 per kilowatt, which is significantly down from 2002, where a typical fuel cell cost $1000 per kilowatt.