The move eliminates 80 local jobs and marks an end for fuel cell studies at the college.
JACKSON TWP. LG Fuel Cell Systems at Stark State College is closing down, eliminating about 80 local jobs and leaving a $5 million building empty.
The research operation, which opened in 2006, was a joint venture between Korean electronics and industrial conglomerate LG Corp and Rolls-Royce, an United Kingdom-based engineering company focused on power and propulsion systems. The venture worked on projects to commercialize the use of solid oxide fuel cell technology and benefited from an estimated $18 million of grants from government agencies.
In a statement, LG said the partners — “in the course of their annual business portfolio review” — determined they wanted to focus resources on core business areas. No other explanation for the shut down was offered.
As a result, the joint venture no longer exists, said John I. Taylor, senior vice president of public affairs for LG North America. While LG was proud of the work and results of the facility’s research, much more work was needed to commercialize the business, so LG decided to invest elsewhere, Taylor said.
The fuel cell prototype center operation fulfilled requirements of the grants it received through the years, Taylor said.
In September 2017, the center received a $5.69 million Department of Energy grant, along with $1.42 million in other funds, to deploy a 250-kilowatt integrated fuel cell system at Stark State.
Fuel cells are standalone generators that create electricity by combining fuel and air in an electrochemical reaction. The prototype created at Stark State used natural gas as a fuel and was finished earlier this year. It operated for roughly 1,800 hours and supplied power to AEP before being shut down.
Stark State officials said they learned during the past week that the fuel cell prototype center would be closing. Marisa Rohn, executive director of advancement, marketing and the Stark State College Foundation, said the the college must seek another tenant for the facility, which opened in 2006.
“We had a great partnership with LG,” Rohn said.
Meanwhile, Stark State has offered career services for the center’s employees who are losing jobs because of the closing. Taylor said only a few of the workers likely will be moved to another LG operation.
Pat Valente, executive director of the Ohio Fuel Cell Coalition, said the decision by LG and Rolls-Royce came as a surprise.
“We thought everything was going well,” Valente said, noting the success of the 250-kilowatt system that had been installed.
Members of the coalition believed the companies were close to having a product that would be marketable, Valente said, adding that he was disappointed by the decision. “We nurtured them to a degree.”
Funds from the Ohio Third Frontier program paid for construction of the Fuel Cell Prototyping Center opened. Rolls-Royce used it as headquarters for its fuel cell subsidiary, where it worked with SOFOCo-EFS Holdings, which had been part of Babcock & Wilcox Co. research operations in Alliance. Rolls-Royce had started fuel cell research in 1992 and formed Rolls Royce Fuel Cell Systems in 2006. A year later it acquired SOFOCo’s assets.
In 2012, LG Electronics bought a 51-percent share of Rolls-Royce Fuel Cell Systems. At that point LG invested $45 million to acquire its stake in the business.
