Kick Starting the Kick Starting the Hydrogen Economy with Hydrogen Economy with

Stationary Hydrogen Stationary Hydrogen Fuel Cells and Natural Fuel Cells and Natural

GasGasPresented on May 2, 2003 Presented on May 2, 2003 By Arshia JavaherianBy Arshia Javaherian

22

What If:What If: 25% of the World’s Energy Sources Disappear.25% of the World’s Energy Sources Disappear. The cost of fossil fuels rise dramatically. The cost of fossil fuels rise dramatically. No alternative fuel is ready for immediate No alternative fuel is ready for immediate

commercialization.commercialization.

33

The Emergence of a middle class in China, The Emergence of a middle class in China, Pakistan, India, and Mexico.Pakistan, India, and Mexico.

Developing Nations/War-torn Nations slow Developing Nations/War-torn Nations slow rise of consumption.rise of consumption.

Fossil Fuels are finite.Fossil Fuels are finite.

The Real Problem:The Real Problem:

44

The Solution:The Solution:

Today: Stationary Today: Stationary Hydrogen Fuel Hydrogen Fuel Cells (HFCs), Cells (HFCs), Reforming Natural Reforming Natural Gas into HydrogenGas into Hydrogen

Tomorrow: The Tomorrow: The Pure Hydrogen Pure Hydrogen EconomyEconomy

55

The Plan:The Plan: Stationary HFCs Stationary HFCs

reforming natural gas.reforming natural gas. Demonstrations.Demonstrations. Government support Government support

encouragement.encouragement. The Industry takes offThe Industry takes off

Simultaneous Simultaneous Deployment of HDeployment of H22 fueled fleets.fueled fleets. Costs go down.Costs go down. Technology advances.Technology advances.

Centralized HCentralized H22 production and production and improved improved transportation transportation technology.technology...

Mass introduction of Mass introduction of HFC vehicles.HFC vehicles.

Advanced production Advanced production of hydrogen using of hydrogen using wind, solar, and wind, solar, and biomass.biomass.

66

TimetableTimetable

Source: British PetroleumSource: British Petroleum

77

Hydrogen is Not an Immediate Hydrogen is Not an Immediate Energy SolutionEnergy Solution

Hydrogen used in Fuel Cells will not Hydrogen used in Fuel Cells will not be a ready supply if 25% of the be a ready supply if 25% of the World’s Energy is unavailable World’s Energy is unavailable tomorrow.tomorrow.

Nevertheless, if we begin the shift to Nevertheless, if we begin the shift to Hydrogen as our central fuel today, Hydrogen as our central fuel today, we will never run out of energy.we will never run out of energy.

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Why Hydrogen?Why Hydrogen?

Environmentally clean.Environmentally clean. Completely renewable.Completely renewable. Present everywhere.Present everywhere. Present in our current energy Present in our current energy

resources.resources. Storable.Storable. Nationally independent, individually Nationally independent, individually

independentindependent

99

1010

The Basics:The Basics: How A Fuel Cell Works How A Fuel Cell Works

1111

UTC Power PC25C Fuel Cell Power UTC Power PC25C Fuel Cell Power PlantPlant

16.5 ft

PC25C at Yankee Gas Services Office in Meriden, CT

9 ft

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PC25C: OverviewPC25C: Overview

Maximum output is 200kW.

In use since 1991.

PC25 provides both heat and power,and can replace grid power.

40% efficient.

Three main components: Fuel processor, power section, power conditioner.

1313

The Power of 200 kWThe Power of 200 kWApplication Application CategoryCategory

Typical Power Typical Power RatingsRatings

Examples of Proposed Examples of Proposed ApplicationsApplications

PortablePortable 50 – 100 W50 – 100 W Laptops, handheld Laptops, handheld electronicselectronics

Lawn and garden Lawn and garden equipmentequipment

Residential/ Light Residential/ Light CommercialCommercial

1 – 10 kW1 – 10 kW

10 – 80 kW10 – 80 kW

Single or Multi-unit Single or Multi-unit residentialresidential

Premium, high reliability Premium, high reliability power for telecom, UPS, power for telecom, UPS, etc.etc.

Commercial / Small Commercial / Small Scale Distributed Scale Distributed GenerationGeneration

80 –500 kW80 –500 kW Hotel, School, commercial Hotel, School, commercial peakshavingpeakshaving

Small to medium hospitals Small to medium hospitals and office buildingsand office buildings

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Units Currently Available Units Currently Available Using Natural Gas On SiteUsing Natural Gas On Site

PlugPower, Inc.PlugPower, Inc. 5kW5kW

Nuvera Fuel CellsNuvera Fuel Cells 5kW5kW

DCH Technology, Inc.DCH Technology, Inc. 1, 3, 5, 10, 20, 40 kW1, 3, 5, 10, 20, 40 kW

UTC Fuel CellsUTC Fuel Cells 200 kW200 kW

Siemens WestinghouseSiemens Westinghouse 250 kW250 kW

FuelCell Energy, Inc.FuelCell Energy, Inc. 250 kW250 kW

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Onsite ReformingOnsite Reforming

Types of ReformingTypes of ReformingSteam MethaneSteam MethanePartial Oxidation (POX)Partial Oxidation (POX)Plasma TorchPlasma Torch

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How Steam Methane How Steam Methane Reforming WorksReforming Works

NG Reacts with NG Reacts with Steam at 1500° to Steam at 1500° to 1600° Fahrenheit 1600° Fahrenheit and a nickel and a nickel catalyst to strip out catalyst to strip out the Hthe H22..

Result is unpure Result is unpure mixture of Hmixture of H22,, CO, CO, COCO22, steam and , steam and unreacted unreacted Methane.Methane.

Mixture is cooled to Mixture is cooled to 750°.750°.

More steam is added, More steam is added, creating more Hcreating more H22, and , and converting the CO to converting the CO to COCO22..

Remaining impurities Remaining impurities are then extracted.are then extracted.

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Sequestering the Impurities: Sequestering the Impurities: How to Keep it CleanHow to Keep it Clean

Disposing of CODisposing of CO22 by by burying it deep in burying it deep in exhausted aquifers or exhausted aquifers or in gas or oil reservoirs, in gas or oil reservoirs, or by piping it deep in or by piping it deep in the ocean.the ocean.

Sequestering adds Sequestering adds $1.80/GJ to the cost of $1.80/GJ to the cost of Hydrogen Fuel from Hydrogen Fuel from natural gas.natural gas.

Will this happen Will this happen now?now?

Is this the price we Is this the price we pay for a clean pay for a clean future?future?

Why Natural Gas?Why Natural Gas?

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. . . When Natural Gas. . . When Natural Gas

Is so expensive;Is so expensive; Is so unpredictable in price and Is so unpredictable in price and

availability;availability; Is a cleaner fuel as it is used today, Is a cleaner fuel as it is used today,

than when it is reformed into than when it is reformed into Hydrogen; andHydrogen; and

Is a Fossil Fuel, and not a renewable Is a Fossil Fuel, and not a renewable resource.resource.

2020

. . . Because Natural Gas Is. . . Because Natural Gas Is Widely available;Widely available; The cheapest readily available source of The cheapest readily available source of

HH22;; The most efficient;The most efficient; Easy to distribute; Easy to distribute; One of the cleanest fossil fuels around; One of the cleanest fossil fuels around;

andand A great transition to a Pure Hydrogen A great transition to a Pure Hydrogen

Economy.Economy. And most importantly . . .And most importantly . . .

TO END THE CHICKEN TO END THE CHICKEN AND EGG DILEMMA!AND EGG DILEMMA!

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Barriers to the Hydrogen Barriers to the Hydrogen EconomyEconomy

CostsCosts Safety/ Consumer SkepticismSafety/ Consumer Skepticism Abundance of cheap fossil fuelsAbundance of cheap fossil fuels

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How Do We Get There?How Do We Get There?

Reduce Costs:Reduce Costs:Bulk Purchases by State, Federal, Bulk Purchases by State, Federal,

Military, Universities, and Hospitals.Military, Universities, and Hospitals.Government Subsidies, Incentives, and Government Subsidies, Incentives, and

Grants.Grants. Improve Funding.Improve Funding. Public Relations Campaign Public Relations Campaign

addressing Cost and Safety Issues.addressing Cost and Safety Issues. Keep using fossil fuels like we are.Keep using fossil fuels like we are.

Where Do We Stand Where Do We Stand Today?Today?

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Projected Cost of Stationary Projected Cost of Stationary Fuel CellsFuel Cells

0500

100015002000250030003500400045005000

2002 2003 2004 2005

MW

Cost $/kW

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Cost ($/GJ)

Hydrogen Production Method

   

Central Production  

Natural Gas 5-8

Coal 9-12

Electrolysis of Water 20

Gasified Biomass 8-13

   

Distributed Production  

Onsite  

Natural Gas 8-15

Electrolysis (hydroelectric) 10-20

Electrolysis (wind) 20-40

Electrolysis (solar/thermal) 40-60

Electrolysis (photovoltaic) 50-100

Delivery of hydrogen $/GJ

100 mi500 mi

C-H2 15-20 60-70

L-H2 1-2 6-7

Relative Costs of Energy(Hydrogen from Natural Gas)

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Coal Oil Gas HydrogenU

S D

olla

r pe

r G

J

Hydrogen is not Hydrogen is not prohibitively prohibitively expensiveexpensiveto get started to get started today.today.

With Gas priced at $3/MBTUWith Gas priced at $3/MBTU

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Government FundingGovernment Funding

Hydrogen R&D Program -- Historical Funding

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

FY78

FY79

FY80

FY81

FY82

FY83

FY84

FY85

FY86

FY87

FY88

FY89

FY90

FY91

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

Fiscal Year

Fu

nd

ing

($

000) Program Transferred from NSF to DOE Energy Storage

Program in 1978

Hydrogen R&D Program becomes budget line starting in FY 1994

Matsunaga ActAuthorization Levels

Hydrogen Futures ActAuthorization Levels

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Government Subsidies, Government Subsidies, Incentives, and GrantsIncentives, and Grants

Database of State Incentives for Database of State Incentives for Renewable EnergyRenewable Energy2003 Climate Change Fuel Cell Buy-2003 Climate Change Fuel Cell Buy-

Down Program.Down Program.Qualifying FacilityQualifying FacilityIllinois will pay for up to $3,000 or half of Illinois will pay for up to $3,000 or half of

a HFC.a HFC.

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Getting the Word OutGetting the Word Out Department of Energy PapersDepartment of Energy Papers

““A National Vision of America’s Transition to a A National Vision of America’s Transition to a Hydrogen Economy – To 2030 and Beyond.”Hydrogen Economy – To 2030 and Beyond.”

““National Hydrogen Energy Roadmap.”National Hydrogen Energy Roadmap.” Bush’s State of the Union Address 1/28/03.Bush’s State of the Union Address 1/28/03. FreedomCarFreedomCar FutureCarCongressFutureCarCongress Demonstrations sponsored by DoD and Demonstrations sponsored by DoD and

DoE.DoE. What do we need?What do we need?

Hollywood, Press, Full Ad CampaignHollywood, Press, Full Ad Campaign

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Remember the HindenburgRemember the Hindenburg

3131

Public Must Trust HydrogenPublic Must Trust Hydrogen

Ad Campaign, Ad Campaign, Government Support,Government Support, Codes and Standards, andCodes and Standards, and Begin the Dialog.Begin the Dialog.

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ConclusionConclusion

Stationary Hydrogen Fuel Cells Using Stationary Hydrogen Fuel Cells Using Natural Gas TodayNatural Gas Today

Supported by Government and Supported by Government and IndustryIndustry

Pure Hydrogen Economy, Pure Hydrogen Economy, Independent of Fossil Fuels Independent of Fossil Fuels Tomorrow.Tomorrow.

To Sum UpTo Sum Up: : Have You Ever Have You Ever

WonderedWonderedWhat it’s Like to Breath What it’s Like to Breath

Fresh Air?Fresh Air?