Hydrogen economy strives to emerge in fossil fuel infrastructure

by Gary Schroeder, Fort Collins, Colo., Energy Services engineer

Gary Schroeder

Just how far off is the hydrogen economy—the Holy Grail of energy? What will it take to make it happen?

In November 2002, more than 130 professionals explored answers to those and many other questions at the first Hydrogen Infrastructure Investment Roundtable near Washington, D.C.

Denver-based Montreux Energy has held energy-related roundtables for 13 years and created the event. It was sponsored by Honda and ChevronTexaco.

Attendees represented a wide range of industries and organizations, including automobile manufacturers, oil and gas companies, industrial gas suppliers, fuel cell companies, hydrogen production equipment manufacturers, venture-capital organizations, government, academia, renewable energy development companies and many others. At least 15 countries were represented.

This diverse group of forward thinkers discussed—often passionately—what it will take to implement the infrastructure necessary for the world to realize a hydrogen economy. The collective presence of these individuals underscores the accelerated development of hydrogen-related technologies.

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I was fortunate to attend this event as a representative of both Fort Collins Utilities and the City of Fort Collins Hydrogen Task Force. To encourage open discussion, the event was closed to media. In that spirit, my impressions are generalized, and quotes are not attributed to specific individuals or organizations.

There are no show-stoppers

The roundtable promoted one clear message—there are no technological showstoppers to a hydrogen economy. We can take steps today to begin implementing the vision. For example, currently available hydrogen fueling appliances, such as electrolyzers and natural gas reformers, can be used to operate vehicles or stationary fuel cells. Prototype fuel-cell fleet vehicles and buses are beginning to appear in the United States, Japan and Europe.

Moving toward a hydrogen economy

There are many factors moving us in the direction of a hydrogen economy, including:

• Greenhouse gas reduction. Many roundtable attendees agreed this is the No. 1 driver. One speaker pointed out recent studies showing the cost of doing nothing to combat greenhouse gas production is higher than investing in alternatives. He quoted a study that calculated a worldwide loss of $150 billion by 2010 due to climate change. Another speaker showed that as the developing world progresses, it will be even more critical for the United States to reduce greenhouse gas emissions to offset the increase those countries create.
  
  
• Air quality. Areas such as California are very concerned about the health issues associated with burning fossil fuels in large population centers. Addressing air quality issues with business-as-usual approaches is much more expensive, in terms of health costs, than investing in clean fuel conversion.
  
  
• Energy, national and economic security. If 100 percent of our primary fuel was produced domestically, the United States wouldn't be vulnerable to oil supply disruptions, and we wouldn't send billions of dollars out of the country to purchase oil. Self-sufficiency would bolster our economy. A distributed energy production system—one fuel, many sources—would enhance national security.
  
  
• Global competition. On a business level, the transition pace may be accelerated because one major market decides to move ahead. Japan's introduction of compact cars in the early 1970s was one example. Auto companies that didn't respond to that market change took years to catch up. Will this happen again, or will we rise to the challenge? Japan invests far more than the United States in stationary/mobile hydrogen fuel cells and hydrogen infrastructure. By 2010, Japan expects to have 50,000 fuel cell vehicles on the road and be generating 2.1 GW of electricity from fuel cells. Other countries, such as Canada, the Netherlands, Norway, Spain, Switzerland and Germany, are also investing millions in hydrogen technologies.
  
  
• Energy sustainability. Some attendees spoke of world oil production peaking. Some authors of recent publications predict it could happen within this decade. A 15-percent increase in the number of vehicles in developing countries will double the number of cars in the world. Can the world produce enough oil to fuel them? Regardless of the time frame, our economy is supported with finite fuel sources. Hydrogen can be produced from wind, solar and biomass indefinitely. Although hydrogen produced in these ways is more expensive than the current price of gasoline and other fossil fuels, it may not be when environmental impact costs are considered.
  

Jeremy Rifken is the author of The Hydrogen Economy: The Creation of the World Wide Energy Web and the Redistribution of Power on Earth. He sums up the hydrogen economy drivers as the three "Ds"—decarbonized, distributed and democratic. But we remain in a fossil fuel economy with its accompanying infrastructure.

Transitioning to a hydrogen economy

Some roundtable attendees advocated achieving small successes in the beginning—modest singles, rather than home runs. One example is running the internal combustion engine on hydrogen—possibly in hybrid vehicles—to start the transition now. Although stationary fuel cells are commercially available and fuel cell fleet vehicles are just hitting the road, they are still expensive and require more development.

Hydrogen-fueled auto engines would create an immediate use, allowing us to begin developing infrastructure now. In most scenarios, it's a robust infrastructure that lags fuel-cell vehicle availability. These cars might be fueled by local small-scale natural gas reformers or grid-supplied electrolysers in a few pilot cities. Not only would this jump-start infrastructure development, but it would allow the public to start getting comfortable with this new fuel. Hydrogen-fueled buses and fleet vehicles will likely take an early hold, since they typically return to a common fueling facility, and Federal funding is often available.

Niche markets build momentum

Some experts believe the momentum will start in niche markets, including:

• Small fuel cells, powering portable electronics such as laptops and personal digital assistants.
  
  
• Indoor applications where emissions are critical, such as forklifts, cleaning equipment and mining vehicles.
  
  
• Auxiliary power units in semi-trucks, RVs and higher-end cars. Imagine all those parked semi trucks, with accessories powered by on-board zero-emission fuel cells instead of idling diesel engines.
  
  
• Peaking power. Electrolyzers would produce hydrogen using off-peak electricity, which would then be used in a fuel cell, engine generator or combustion turbine to provide electricity during peak demand periods.
  

Many attendees guessed at how long it will take before hydrogen technologies hit the mass market, but agreed it's likely we'll see substantial activity within the decade. The hydrogen economy has been described as a chicken or egg problem. We need fueling infrastructure before we can produce hydrogen vehicles, but we need the vehicles—and other uses—to create infrastructure demand.

But, as one speaker pointed out, "This is not a chicken or egg story. It's chicken salad—everything is mixed together. These technologies must grow together. Henry Ford didn't wait until there were gas stations on every corner, and the Wright Brothers didn't wait for airports to be built."

In another Wright Brothers analogy, the legal war between them and Glen Curtis during aviation's early years was so ugly that it led to an informal 50-year agreement among aviation companies to share development information. The current hydrogen industry has scores of entities moving along in isolation. There's no unified trade organization or agreed-on master plan. Some developing technologies are at odds with each other. The industry could benefit from the type of cooperation fostered during aviation's growing years.

Displacing foreign oil

If we are to displace imported oil—currently 56 percent of our oil supply—with hydrogen, we'll need a tremendous amount of energy to generate it. What will the energy sources be?

The transition will clearly depend on fossil sources either directly with natural gas reformation, or indirectly using electrolysis with grid electricity. However, the ultimate goal is renewably generated hydrogen. Whatever the path, utilities are likely to play a big role in hydrogen production.

Education is another important factor. Roundtable participants pointed out that today's 10-year-olds and younger will be the fuel cell vehicle drivers of the future. Educating our youth (and adults, too) about hydrogen benefits will go a long way toward making it happen.

Regardless of the barriers, billions of dollars are being invested throughout the world to create a hydrogen economy. It's clear that all of the necessary elements are present. Many successful demonstration projects are under way in the United States, Canada, Europe, Japan and elsewhere. Although the hydrogen-economy push has been going on for 30 years, the level of current activity is unprecedented.

The stars are lined up. Hydrogen is socially good. It's attractive to equipment manufacturers and consumers. There are no technical showstoppers. It neither threatens nor opposes any strong interests.

It's now a matter of political will, business innovation and consumer demand. Let's hope that today's trend is truly the beginning of a hydrogen economy.

Note: Gary Schroeder is an Energy Services engineer with Fort Collins (Colorado) Utilities and is a member of the City of Fort Collins Hydrogen Task Force.