Fuel cell fuel cells so efficiencies vary, but most are between 40% and 60% energy efficient. However, when the fuel cell's waste heat is used to heat a building in a cogeneration system this efficiency can increase to 85%. This is significantly more efficient than traditional coal power plants, which are only about one third energy efficient. Assuming production at scale, fuel cells could save 20–40% on energy costs when used in cogeneration systems. Fuel cells are also much cleaner than traditional power generation; a fuel cell power plant using natural gas as a hydrogen source would create less than one ounce
Fuel oil cannot be used in road vehicles, boats or small ships, as the heating equipment takes up valuable space and makes the vehicle heavier. Heating the oil is also a delicate procedure, which is impractical on small, fast moving vehicles. However, power plants and large ships are able to use residual fuel oil. Use of residual fuel oil was more common in the past. It powered boilers, railroad steam locomotives, and steamships. Locomotives, however, have become powered by diesel or electric power; steamships are not as common as they were previously due to their higher operating costs (most LNG carriers use