The Office of Housing will install the Ceramic Fuel Cells systems in public housing properties in metropolitan Melbourne and regional Victoria. The project will demonstrate the operation of the systems and the benefits to tenants, via the generation of low-emissions electric power and hot water for the home.

The Victorian government announced the A$1.35 million (US$1.26 million) project this morning as part of its Jobs for the Future Economy: Green Jobs action plan. The funding for the Green Jobs package, including the purchase of the BlueGen systems, is conditional on the Victorian parliament approving changes to the landfill levies proposed by the government.

The project is also conditional on the Office of Housing and Ceramic Fuel Cells agreeing a model for the delivery of future BlueGen maintenance services. Provided these conditions are met, the 30 BlueGen units will be installed in late 2010 and early 2011, for an initial two-year project period.

BlueGen systems generate electricity in the home from natural gas, at almost three times the efficiency of current Victorian coal-fired electricity generators – cutting energy bills and reducing carbon emissions by up to two-thirds. Excess power can be exported to the power grid. BlueGen also produces enough heat to meet the average home’s daily needs for hot water.

Ceramic Fuel Cells has achieved electrical efficiencies of 60 percent. When heat is recovered from the electricity production process, the total efficiency is up to 85 percent – more than twice as efficient as the average among current Australian power stations.