Re: Without cumbustion?
But CHP (combined heat and power, not California Highway Patrol) is definitely a better choice than using grid power so on that front it is a more efficient use of energy.
Only if the heat is productively used. The surplus heat is fairly low grade, so unlikely to be much use for most industrial processes other than as warm wash water. And I'm not sure there's much heat demand in San Jose.
My guess is that by using fuel cells they either avoid distribution reinforcement charges (tend to be very high), avoid taxes or reap subsidies, and the waste heat is used to generate cooling through an absorption chiller, instead of conventional screw-compressor chill units, but it is really inefficient - COP of 1.2, for those that care about such things.