The Hydrogen Economyww1.prweb.com/prfiles/2007/05/11/525759/Hydrogen... · 5/11/2007  · • Fuel...

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Transcript of The Hydrogen Economyww1.prweb.com/prfiles/2007/05/11/525759/Hydrogen... · 5/11/2007  · • Fuel...

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• What is the Hydrogen Economy? Is it going to happen? • The energy sector of the world is on the cusp of immense change • The world’s demand for energy is voracious and increasing • Our energy infrastructure is aging and large chunks are at the end of their design life • People are becoming aware that the primary energy resource, fossil fuels, is not limitless • We are constantly bombarded with catastrophic predictions of global warming • So what is the answer? • One solution being put forward is to convert from the Carbon Economy which fuelled the

Industrial Revolution to a Hydrogen Economy • But what is this and will it solve the problems?

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• This report explains what a Hydrogen Economy would be • It describes the many obstacles which would need to be overcome to bring it into

existence • The development of the Hydrogen Economy will advance on two parallel fronts • The development of another technology, the Fuel Cell, is essential to the exploitation of

Hydrogen; the two are interlinked • Fuel cells utilise the chemical energy of hydrogen to produce electricity and thermal

energy • We are further along the road than many people realise, the report outlines the

development of Fuel Cells as technologies and markets • The technology and infrastructure to produce and deliver large quantities of hydrogen to

consumption points must be created • The many and varied technologies of Fuel Cells, alternatives to batteries and the

combustion engine, must be developed and refined to exploit the properties of hydrogen • Hydrogen will be produced from a diverse base of primary energy feedstocks, or from

water using renewable electricity in the process • Fuel Cells are already being commercialised and are used in a wide variety of products

KKKeeeyyy RRReeessseeeaaarrrccchhh FFFiiinnndddiiinnngggsss • Hydrogen and Fuel Cells have competitors • New technologies include large scale electrification in conjunction with plug-in hybrid

vehicles and Li-ion batteries in transport • In the stationary applications market, distributed electricity generation or cogeneration

present an alternative to hydrogen • Other significant competitors are a new level of power generation technologies, such as

large, increased efficiency coal and gas-fired power plants, possibly using underground coal gasification (UCG) with CO2 capture and storage (CCS), renewable electricity supply technologies which are already widespread in the market (wind and solar PV) or now being commercialised (ocean and tidal energy), and new nuclear power technologies

• ABS believes that in 50 years the world may use a hybrid, a composite of Hydrogen and Fuel Cells, beside other energy carriers, distributed generation, gas and electricity, renewable energy and emission-free generation from hydrocarbons using underground coal gasification, carbon capture and storage

• The possibilities are endless

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Price of report - £950 *For US Dollar and Euro prices please refer to www.absenergyresearch.com

*To purchase this report please complete the order form or for more information please contact: [email protected] or call +44(0) 20 8432 6378

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Contents 1. Executive Summary .........................................................................................................................1

The Hydrogen Economy............................................................................................................................1 Hydrogen Production, Storage and Delivery- the Infrastructure ...............................................................2 Fuel Cells...................................................................................................................................................4 Fuel Cell Costs ..........................................................................................................................................4 Current Market Penetration and Companies Manufacturing Fuel Cells....................................................5

2. The Hydrogen Economy – What is it?............................................................................................8 The Carbon Economy................................................................................................................................8 The Hydrogen Economy............................................................................................................................9

Hydrogen, an Energy Carrier Not Primary Energy ..............................................................................10 Conversion...........................................................................................................................................11 Combustion..........................................................................................................................................11

Fuel Cells.................................................................................................................................................11 Applications of Hydrogen and Fuel Cells ................................................................................................11 Stationary Applications............................................................................................................................11

Industrial Applications..........................................................................................................................12 Residential Applications.......................................................................................................................12 Backup or Premium Power Requirements...........................................................................................13 Power Generation ................................................................................................................................13 Hydrogen Generation Power Parks .....................................................................................................14

Portable Applications and the ‘Power Gap’ .............................................................................................14 Transport Applications.............................................................................................................................14

Fuels for Fuel Cell Vehicles .................................................................................................................15 The Drivers Affecting the Development of Hydrogen Energy .................................................................15

3. The Arguments For and Against the Hydrogen Economy and Competitive Technologies ...17 Benefits of Hydrogen...............................................................................................................................17

Efficiency..............................................................................................................................................17 Decentralised Power............................................................................................................................17 Security of Supply ................................................................................................................................17 Emissions.............................................................................................................................................18 Reliable and Silent Operation ..............................................................................................................18 Energy Savings....................................................................................................................................18 Multiple Uses and Hybrids ...................................................................................................................18

Barriers and Disadvantages of Hydrogen ...............................................................................................18 Production and Delivery of Hydrogen..................................................................................................18

Costs of Delivery .....................................................................................................................................19 Production............................................................................................................................................19 Packaging of Hydrogen........................................................................................................................19 Delivery of Hydrogen ...........................................................................................................................20 Transfer of Hydrogen...........................................................................................................................20

Competitive Technologies .......................................................................................................................21 4. Time Frame for the Hydrogen Economy......................................................................................23

Current Stage of Development................................................................................................................23 Transition to the Hydrogen Economy......................................................................................................23 Implementing the Transition to Hydrogen and Fuel Cells .......................................................................23 US Hydrogen Roadmap ..........................................................................................................................24

Phase One – Progress in Technologies, Policies and Markets...........................................................25 Phase Two – Transitioning to the Marketplace ...................................................................................26 Phase Three – Expansion of Markets and Infrastructure ....................................................................26 Phase Four – Realisation of the Hydrogen Vision...............................................................................26

European Hydrogen Roadmap................................................................................................................27 Japanese Hydrogen Roadmap................................................................................................................28

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5. Manufacturing Technology and the Production Process of Hydrogen....................................30 Introduction..............................................................................................................................................30 Methods of Hydrogen Production............................................................................................................31 Hydrogen Reformation from Fossil Fuels................................................................................................31

Gas Steam Reformation ......................................................................................................................31 Underground Coal Gasification (UCG)....................................................................................................32 Integrated Gasification Combined Cycle (IGCC) ....................................................................................32 Other Fossil Fuels, Fuel Oil .....................................................................................................................32 Carbon Emission-free Hydrogen Production...........................................................................................33 Hydrogen Production from Water............................................................................................................33 Electrolysis ..............................................................................................................................................33 Reduction of Emissions in Upstream Production of Hydrocarbon Feedstock for Hydrogen Generation 34 CCS – Carbon Capture and Sequestration.............................................................................................34

Post-combustion Capture ....................................................................................................................34 Pre-combustion Capture......................................................................................................................34 Oxyfuel Combustion.............................................................................................................................35 Options for CO2 Storage .....................................................................................................................35

Enhanced Oil Recovery (EOR) ...............................................................................................................36 Production Technologies, Renewables ...................................................................................................37

Wind.....................................................................................................................................................37 Solar.....................................................................................................................................................38 Hydro....................................................................................................................................................38 High-temperature Solar Thermochemical Processes..........................................................................38 Biomass, Thermochemical Gasification...............................................................................................39 Cross-cutting........................................................................................................................................40 Photo Electrochemical .........................................................................................................................41

Nuclear ....................................................................................................................................................42 Biological and Photolytic..........................................................................................................................43 Boron .......................................................................................................................................................45

6. The Hydrogen Infrastructure, Production, Storage and Delivery .............................................46 Production Pathway.................................................................................................................................46

Centralised Production Pathway..........................................................................................................46 Distributed Production Pathway...........................................................................................................46

Storage of Hydrogen ...............................................................................................................................47 Compressed Gas .................................................................................................................................47 Cryogenic Storage ...............................................................................................................................47 Hydrides...............................................................................................................................................47 Nanotube (Carbon Material) Storage, Chemically Stored Hydrogen ..................................................47

Transport and Distribution .......................................................................................................................47 Options for CO2 Transport ......................................................................................................................47

Transport of Liquid Hydrogen ..............................................................................................................48 Roadway Transportation......................................................................................................................48 Hydrogen Pipelines..............................................................................................................................48 Ocean Transportation ..........................................................................................................................49 Air Transportation ................................................................................................................................49

7. Hydrogen Production, Volume and Producers ...........................................................................50 Global Production ....................................................................................................................................50 Merchant and Captive .............................................................................................................................50

8. Fuel Cells, Types, Current Status and Applications of Each Type ...........................................52 What is a Fuel Cell? ................................................................................................................................52 Fuel Cell Stack ........................................................................................................................................53 PEMFC Proton Exchange Membrane Fuel Cell (also called a PEFC) ...................................................53 DMFC – Direct Methanol Fuel Cell..........................................................................................................54 AFC – Alkaline Fuel Cell..........................................................................................................................55 PAFC – Phosphoric Acid Fuel Cell..........................................................................................................55 MCFC – Molten Carbonate Fuel Cell ......................................................................................................56

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SOFC – Solid Oxide Fuel Cell .................................................................................................................57 Regenerative Fuel Cells ..........................................................................................................................57 New Developments .................................................................................................................................57

9. Fuel Cell Cost and Deployment ....................................................................................................58 Stationary Applications ........................................................................................................................58 Distributed Power Generation (DG).....................................................................................................58 PAFC....................................................................................................................................................58 MCFC, SOFC, PEMFC........................................................................................................................59 Fuel Cell Vehicles ................................................................................................................................59 Portable Applications ...........................................................................................................................60

10. Manufacturers of Fuel Cells ..........................................................................................................62 11. R&D..................................................................................................................................................74

International.............................................................................................................................................74 United States ...........................................................................................................................................74

Government Partnerships with Industry...............................................................................................74 Solid State Energy Conversion Alliance (SECA).................................................................................74 SECA Fuel Cell Coal-Based Systems .................................................................................................75 Advanced Fuel Cell Research .............................................................................................................76 Tubular Solid Oxide Fuel Cell Technology ..........................................................................................76 Fuel Cell/Turbine Hybrids ....................................................................................................................76 Molten Carbonate Fuel Cell Technology .............................................................................................76 Financial Support for Fuel Cells...........................................................................................................77

Canada ....................................................................................................................................................78 Partnership for Advancing the Transition to Hydrogen (PATH)...........................................................78

Japan.......................................................................................................................................................78 National Hydrogen Programme (WE-NET)..........................................................................................78 New Hydrogen Project (NHP)..............................................................................................................78 Japan Hydrogen and Fuel Cell Project ................................................................................................78

EU............................................................................................................................................................79 5th Framework Programme (FP5), 1999-2002....................................................................................79 6th Framework Programme (FP 6) 2002 to 2006................................................................................79 7th Framework Programme (FP 7) 2007to 2013.................................................................................81 Hydrogen and Fuel Cell Programmes .................................................................................................81

National Programmes..............................................................................................................................82 Germany..................................................................................................................................................82

Clean Energy Partnership (CEP).........................................................................................................82 Iceland .....................................................................................................................................................82

INE-Icelandic New Energy...................................................................................................................82 Other National Programmes in the EU....................................................................................................82 Austria......................................................................................................................................................82 Belgium....................................................................................................................................................83 Denmark ..................................................................................................................................................83 Finland.....................................................................................................................................................83 France......................................................................................................................................................83 Greece.....................................................................................................................................................83 Italy ..........................................................................................................................................................84 Netherlands .............................................................................................................................................84 Norway.....................................................................................................................................................84 Portugal ...................................................................................................................................................85 Spain........................................................................................................................................................85 Sweden....................................................................................................................................................85 Switzerland ..............................................................................................................................................85 Turkey......................................................................................................................................................86 United Kingdom.......................................................................................................................................86 Australia...................................................................................................................................................86 Multilateral Initiatives ...............................................................................................................................86

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Partnership for Advancing the Transition to Hydrogen (PATH)...........................................................86 International Partnership for the Hydrogen Economy (IPHE)..............................................................86 US-EU Cooperation .............................................................................................................................86

12. Fuel Cell Installations, Country Analysis ....................................................................................88 13. Fuel Cell Vehicles...........................................................................................................................97

Development Status ................................................................................................................................97 FCV Commercialisation...........................................................................................................................97

Time Line for Launching FCVs ............................................................................................................97 Major Government-Supported Fuel Cell Vehicle Projects.......................................................................98 Australia...................................................................................................................................................98

Sustainable Transport Energy Programme (STEP) ............................................................................98 National Hydrogen Study.....................................................................................................................98

Canada ....................................................................................................................................................98 Canadian Transportation Fuel Cell Alliance (CTFCA).........................................................................98 Hydrogen Early Adopters (‘h2EA’) Programme...................................................................................99

China .......................................................................................................................................................99 Passenger Cars and Buses .................................................................................................................99 Two-Wheel Vehicles ............................................................................................................................99

Europe - EU.............................................................................................................................................99 CUTE .................................................................................................................................................100 ECTOS...............................................................................................................................................100 FEBUSS.............................................................................................................................................100 Fuel cell bus for Berlin, Copenhagen and Lisbon..............................................................................100 CITYCELL..........................................................................................................................................100 ENERGIE...........................................................................................................................................100

World Bank/GEF Fuel Cell Bus Development Programme...................................................................100 China/GEF .........................................................................................................................................100 Egypt/GEF .........................................................................................................................................100 Brazil/GEF..........................................................................................................................................100 Mexico/GEF .......................................................................................................................................100 India/GEF...........................................................................................................................................100

Iceland (ECTOS) ...................................................................................................................................101 Japan.....................................................................................................................................................101

Hydrogen & Fuel Cell Demonstration Project (JHFC) .......................................................................101 Singapore ..............................................................................................................................................101 US..........................................................................................................................................................101

FreedomCAR/Hydrogen Fuel Initiative ..............................................................................................101 California Fuel Cell Partnership .........................................................................................................102 Bus Demonstrations...........................................................................................................................102

Manufacturers of Light-duty Fuel Cell Vehicles.....................................................................................102 BMW ..................................................................................................................................................102 BMW Partnerships .............................................................................................................................103 Daihatsu.............................................................................................................................................103 Daihatsu Partnerships........................................................................................................................103 Daimler-Chrysler ................................................................................................................................103 Daimler-Chrysler Partnerships...........................................................................................................104 Delphi .................................................................................................................................................104 Delphi Partnerships............................................................................................................................105 Fiat .....................................................................................................................................................105 Fiat Partnerships................................................................................................................................105 Ford....................................................................................................................................................105 Ford Partnerships ..............................................................................................................................106 General Motors ..................................................................................................................................106 GM Partnerships ................................................................................................................................107 GM Distributed Generation ................................................................................................................108 GM-PATAC ........................................................................................................................................108

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Honda.................................................................................................................................................108 Hyundai ..............................................................................................................................................109 Mazda ................................................................................................................................................109 Mazda Partnerships ...........................................................................................................................110 Michelin..............................................................................................................................................110 Mitsubishi ...........................................................................................................................................111 Mitsubishi Partnerships......................................................................................................................111 Nissan ................................................................................................................................................111 Nissan Partnerships...........................................................................................................................111 PSA/Peugeot .....................................................................................................................................111 PSA/Peugeot Partnerships ................................................................................................................112 Renault...............................................................................................................................................112 Renault Partnerships .........................................................................................................................113 Suzuki ................................................................................................................................................113 Suzuki Partnerships ...........................................................................................................................113 Toyota ................................................................................................................................................113 Toyota Partnerships...........................................................................................................................114 Volvo ..................................................................................................................................................114 Partnerships.......................................................................................................................................115 Volkswagen AG .................................................................................................................................115 Partnerships.......................................................................................................................................116

Manufacturers of Fuel Cell Transit Buses .............................................................................................116 Georgetown University Fuel Cell Bus Programme ............................................................................117 DaimlerChrysler .................................................................................................................................117 Electric Fuel Corporation ...................................................................................................................118 Irisbus.................................................................................................................................................118 Gillig ...................................................................................................................................................118 Hino Motors........................................................................................................................................118 MAN ...................................................................................................................................................118 NABI (North American Bus Industries) ..............................................................................................119 Neoplan..............................................................................................................................................119 New Flyer Industries ..........................................................................................................................119 Nova Bus ...........................................................................................................................................119 Proton Motor Fuel Cell GmbH ...........................................................................................................120 Toyota ................................................................................................................................................120 Thor Industries, Inc ............................................................................................................................120 UTC....................................................................................................................................................120 Van Hool ............................................................................................................................................121 Volvo Bus...........................................................................................................................................121

Speciality Vehicles.................................................................................................................................122 Bicycles and Scooters ...........................................................................................................................122

Asia Pacific Fuel Cell Technologies...................................................................................................122 Ceramatec Inc (USA).........................................................................................................................122 DCH Technology (USA).....................................................................................................................122 Palcan Fuel Cells Ltd .........................................................................................................................123 PEM Technologies Inc .......................................................................................................................123 Manhattan Scientifics.........................................................................................................................123 Yamaha Motor Company...................................................................................................................123 PowerZinc Electric Inc. ......................................................................................................................124 Beijing Fuyuan Century Fuel Cell Power Ltd. ....................................................................................124

Golf Carts/Forklifts/Utility Vehicles ........................................................................................................124 Astris Energi Inc.................................................................................................................................124 H Power .............................................................................................................................................124 JLG Industries Inc ..............................................................................................................................124 Deere & Company .............................................................................................................................124 Sustainable Development Technology Canada (SDTC) ...................................................................125

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Siemens/KWU....................................................................................................................................125 Locomotives ..........................................................................................................................................125

Fuelcell Propulsion Institute...............................................................................................................125 Railway Technical Research Institute................................................................................................125

‘All Electric’ Systems for Military Applications .......................................................................................125 Marine, Boats, Yachts, Submarines ......................................................................................................126

FuelCellEnergy (USA)........................................................................................................................126 MTU Friedrichshafen .........................................................................................................................126 HaveBlue ...........................................................................................................................................126 Helion (France) ..................................................................................................................................127 Howaldtswerke-Deutsche Werft AG ..................................................................................................127 Siemens AG.......................................................................................................................................127 Siemens/KWU....................................................................................................................................127

Airplanes, NASA and Boeing ................................................................................................................127 NASA .................................................................................................................................................127 Boeing................................................................................................................................................128

14. Fuel Cell Vehicles, Project Analysis and Status .......................................................................129 15. Fuel Cell Bus, Project Analysis and Status...............................................................................134 16. Fuel Cell Special Vehicles, Project Analysis and Status .........................................................137 17. Fuelling Stations, Worldwide Locations....................................................................................141 18. Fuel Cells, Large Stationary Applications .................................................................................143

Molten Carbonate Fuel cells (MCFC)....................................................................................................144 Fuel Cell/Gas Turbine hybrids...............................................................................................................144 Fuel Used ..............................................................................................................................................145 Companies Involved in Large Stationary Fuel Cell Development.........................................................145

Ansaldo Fuel Cells (Genoa, Italy) ......................................................................................................146 FuelCell Energy (USA).......................................................................................................................146 GenCell (USA) ...................................................................................................................................147 Ishikawajima-Harima Heavy Industries (IHI) (Japan) ........................................................................147 Marubeni ............................................................................................................................................148 MTU CFC Solutions (Germany).........................................................................................................148 Bharat Heavy Electrical Limited (India)..............................................................................................149 Electric Power Development Co Ltd (Japan).....................................................................................149 Fuji Electric (Japan) ...........................................................................................................................149 Korea Gas (Korea).............................................................................................................................149 Nippon Petroleum Gas (Japan) and Toshiba IFC (Toshiba International Fuel cells Corporation) ....149 Tokyo Gas (Japan) ............................................................................................................................149 UTC Fuel cells (USA).........................................................................................................................149

Proton Exchange Membrane Fuel Cell (PEMFC) .................................................................................150 Solid Oxide Fuel Cell (SOFC) ...............................................................................................................150

Ballard Power Systems (Canada)......................................................................................................150 BUDERUS AG ...................................................................................................................................150 Chubu Electric Power (Japan) ...........................................................................................................151 Daido Metal Co Ltd (Japan)...............................................................................................................151 EFC European Fuel Cell ....................................................................................................................151 Electrocell (Brazil) ..............................................................................................................................151 General Motors (USA) .......................................................................................................................151 Helion (France) ..................................................................................................................................151 Hydrogenics (Canada) .......................................................................................................................151 JPower (Japan)..................................................................................................................................152 McDermott Technology Inc (USA) .....................................................................................................152 Mitsubishi Materials (Japan) ..............................................................................................................152 Mitsubishi Heavy Industries (Japan)..................................................................................................152 NedStack (Netherlands).....................................................................................................................152 Nippon Steel (Japan) .........................................................................................................................152 Nippon Telegraph and Telephone’s (NTT) (Japan)...........................................................................152

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Nuvera Fuel cells (Italy/USA).............................................................................................................153 Rinnai Corporation (Nagoya City)......................................................................................................153 Rolls-Royce (UK) ...............................................................................................................................153 Sanyo Electric Co Ltd (Japan) ...........................................................................................................153 Siemens Westinghouse Power Generation (USA) ............................................................................153 Staxera (Germany) ............................................................................................................................153 Sulzer Hexis AG (Switzerland) ..........................................................................................................153 Voller Energy .....................................................................................................................................153 Wärtsilä (Finland)...............................................................................................................................153 Ztek Corporation (California, USA) ....................................................................................................154

19. Fuel Cells, Small Stationary Applications .................................................................................155 Technology and Size .............................................................................................................................155

Acumentrics Corporation (Massachusetts, USA) ..............................................................................156 Air Water Inc (Japan) .........................................................................................................................156 Alp²s (Austria) ....................................................................................................................................156 Asia Pacific Fuel Cell Technologies (APFCT) (Taiwan) ....................................................................156 Ballard Power Systems (Canada)......................................................................................................156 Beijing Fuyuan Fuel Cell Group (China) ............................................................................................156 CEA (French Atomic Energy Commission) (France).........................................................................156 Ceramic Fuel Cells Limited or CFCL (Australia)................................................................................157 CESI (Italy).........................................................................................................................................157 Cosmo Oil Co (Japan) .......................................................................................................................157 Cummins Power Generation (Minnesota, USA) ................................................................................157 Delphi Corporation (Michigan, USA)..................................................................................................157 Ebara Ballard Corporation (Japan) ....................................................................................................157 ENEA (Italy) .......................................................................................................................................157 EnGen Group Inc (USA) ....................................................................................................................157 Franklin Fuel Cells Inc (USA) ............................................................................................................158 Fuel Cell Energy, Inc. (FCE) (Cincinnati, USA) .................................................................................158 Fuel Cell Technologies (Canada) ......................................................................................................158 Fuji Electric Co Ltd (Japan) ...............................................................................................................158 Gastar (Japan) ...................................................................................................................................158 General Electric Hybrid Power Systems (California, USA)................................................................158 Hiroshima Gas Co.,Ltd., Hiroshima University, MHI,and others (Japan) ..........................................158 Hitachi Zosen Corp (Japan)...............................................................................................................159 Hokkaido Gas Co., Ltd. and Hokkaido University (Japan) ................................................................159 Hydrogenics Corp (Canada) ..............................................................................................................159 Idemitsu Kosan Co Ltd (Japan) .........................................................................................................159 Intelligent Energy Limited (UK) ..........................................................................................................159 IRD Fuel Cells A/S (Denmark)...........................................................................................................159 Ishikawajima-Shibaura Machinery Co Ltd (Japan) ............................................................................159 ITN Energy Systems, Inc. (Colorado, USA).......................................................................................159 Iwatani International Corporation, Mitsubishi Heavy Industries, Ltd. (MHI) (Japan) .........................159 Japan Energy Corp (Japan)...............................................................................................................160 Kansai Electric Power Co Inc (Japan) ...............................................................................................160 Kyocera Corporation (Japan).............................................................................................................160 Matsumara Bussan Co Ltd (Japan) ...................................................................................................160 Matsushita Electric Industrial Co., Ltd and Ebara Corp (Japan)........................................................160 Mitsubishi Material Corporation .........................................................................................................160 Mitsubishi Heavy Industries, Ltd. (MHI) (Japan)................................................................................160 Misawa Homes Co., Ltd.....................................................................................................................160 Nihonkai Gas Co Ltd (Japan) ............................................................................................................160 Nippon Oil Corporation (Japan) .........................................................................................................161 NEF (Japan).......................................................................................................................................161 Osaka Gas Co Ltd (Japan) ................................................................................................................161 Plug Power (USA)..............................................................................................................................161

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Saibu Gas Co Ltd (Japan) .................................................................................................................161 Shizuoka Gas Co Ltd and Others (Japan).........................................................................................161 Siemens Westinghouse Power Corporation (Pennsylvania, USA) ...................................................161 TIFC (Japan)......................................................................................................................................161 Toho Gas Co Ltd (Japan) ..................................................................................................................162 Tokyo Gas Co Ltd (Japan).................................................................................................................162 Vaillant (Germany) .............................................................................................................................162 Viessmann (Germany) .......................................................................................................................162

20. Fuel Cells, Portable Applications ...............................................................................................163 Product Applications..............................................................................................................................163

Market Positioning and Potential .......................................................................................................163 Battery Replacement Ratios..................................................................................................................164 Demand Forecast ..................................................................................................................................164

Mobile Phones ...................................................................................................................................164 Notebook Computers.........................................................................................................................164 Camcorders, Digital Cameras and PDAs ..........................................................................................164

Direct Methanol Fuel Cell DMFC Companies .......................................................................................165 Antig Corp (Taiwan) ...........................................................................................................................165 Ball Aerospace & Technologies Corp. (BATC) (USA) .......................................................................165 Bantec Co (Japan) .............................................................................................................................165 CASIO Computer Co Ltd (Japan) ......................................................................................................165 Changchun Institute of Applied Chemistry (China)............................................................................165 Cosel Co, Saito Mfg Co (Japan) ........................................................................................................165 Direct Methanol Fuel Cell Corporation (USA)....................................................................................165 Electric Fuel (USA) ............................................................................................................................166 Fujian Nanping Nanfu Battery Co (China) .........................................................................................166 Giner Electrochemical Systems (USA) ..............................................................................................166 H Power (USA) ..................................................................................................................................166 Hitachi Ltd (Japan).............................................................................................................................166 Hydrogenics Corporation (USA) ........................................................................................................166 Kanagawa Industrial Technology Research Institute (Japan) ...........................................................166 KDDI Corporation (Japan) .................................................................................................................167 Lynntech Industries Ltd (USA)...........................................................................................................167 Masterflex (USA)................................................................................................................................167 Material & Energy Research Institute Tokyo Ltd (Japan) ..................................................................167 Matsushita Electric Industrial Co Ltd (Japan) ....................................................................................167 Mechanical Technology/MTI Micro fuel Cells (USA) .........................................................................167 Medis (USA).......................................................................................................................................167 Millennium Cell (USA)........................................................................................................................167 Motorola (USA) ..................................................................................................................................167 MTI MicroFuel Cells Inc (USA) ..........................................................................................................168 MTU CFC Solutions (USA) ................................................................................................................168 NEC Corp (Japan) .............................................................................................................................168 NTT Corporation and KDDI Corporation (Japan) ..............................................................................168 NTT DoCoMo Inc (Japan)..................................................................................................................168 PolyFuel Inc (USA) ............................................................................................................................168 Samsung Advanced Institute of Technology (Korea) ........................................................................168 Sanyo Electric Co and Japan IBM Co (Japan) ..................................................................................168 Samsung Electro Mechanics (Korea) ................................................................................................168 Seiko Instruments Inc (Japan) ...........................................................................................................168 Smart Fuel Cells (Germany) ..............................................................................................................169 Symyx Technologies Inc (USA) .........................................................................................................169 Toshiba Corporation (Japan) .............................................................................................................169 Trimol Group Inc (USA) .....................................................................................................................169 UltraCell (USA) ..................................................................................................................................169 Unversity of California (USA).............................................................................................................169

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Vantec Corp (Japan)..........................................................................................................................170 Yuasa Corp (Japan)...........................................................................................................................170

21. Sources .........................................................................................................................................171 Figures Figure 2-1: Fuel Shares, Total Final Primary Energy Supply TPES.............................................................8 Figure 2-2: The Predominance of Carbon, World Power Generation by Fuel..............................................9 Figure 2-3: The Path Forward for Hydrogen...............................................................................................10 Figure 4-1: Mosaic Approach to the Hydrogen Economy ...........................................................................23 Figure 4-2: DOE Hydrogen and Fuel Cell Roadmap for the United States ................................................25 Figure 4-3: Skeleton European Hydrogen and Fuel Cell Roadmap ...........................................................27 Figure 4-4: Japanese Hydrogen Roadmap.................................................................................................28 Figure 4-5: METI Scenario for the Introduction of FCs and FCVs in Japan ...............................................29 Figure 5-1: Hydrogen Production Alternatives............................................................................................30 Figure 5-2: Hydrogen Production and Carbon Capture from Natural Gas .................................................31 Figure 5-3: Geological Storage Options for Captured Carbon....................................................................35 Figure 5-4: Ocean Storage Concepts for Captured Carbon .......................................................................36 Figure 5-5: Carbon Dioxide-Enhanced Oil Recovery with Water/Alternating Gas (WAG) Injection Sweeps

Additional Oil to the Recovery Well. ....................................................................................................37 Figure 6-1: Fuelling Options for Central Hydrogen Production...................................................................48 Figure 8-1: Fuel Cell Concept .....................................................................................................................52 Figure 8-2: Fuel Cell Stack..........................................................................................................................53 Figure 8-3: PEMFC Proton Exchange Membrane Fuel Cell.......................................................................54 Figure 8-4: Alkaline Fuel Cell ......................................................................................................................55 Figure 8-5: Molten Carbonate Fuel Cell......................................................................................................56 Figure 8-6: Solid Oxide Fuel Cell ................................................................................................................57 Figure 11-1: Hydrogen and Fuel Cells – National R&D Efforts and International Co-operation.................77 Figure 13-1: All Electric Systems ..............................................................................................................126 Figure 13-2: 214 Class Submarine with Fuel Cell Installation ..................................................................127 Figure 18-1: Installations of Large Stationary Fuel Cells ..........................................................................143 Figure 18-2: Average Large Stationary Fuel Cell Unit Capacity kW.........................................................144 Figure 19-1: Growth in Small Stationary Fuel Cell Installations Worldwide..............................................155 Figure 20-1: Worldwide Premium Battery Market, Available Market for Small DMFCs, Mns of Units .....164 Tables Table 2-1: The Composition of the Hydrogen Industry ...............................................................................10 Table 2-2: Supporting and Inhibiting Factors for Hydrogen Energy Development .....................................16 Table 3-1: Possible Hybrid of Energy Technologies, Combining Carbon and Hydrogen...........................22 Table 7-1: Production of Hydrogen by Source............................................................................................50 Table 7-2: Half of the Hydrogen is Produced in the US, China and the EU. ..............................................50 Table 9-1: Cost of Energy Obtained by Primary Batteries..........................................................................60 Table 9-2: Energy and Cost Comparison Using Rechargeable Cells.........................................................61 Table 9-3: Cost Comparison to Generate 1 kW of Energy, Taking Into Account the Initial Investment, Fuel

Consumption, Maintenance and Eventual Replacement of the Equipment ........................................61 Table 10-1: Manufacturers of Fuel Cells.....................................................................................................62 Table 11-1: EU Support (in million €) to Hydrogen and FUEL Cell TRD in FP5 for the Period 1999-200279 Table 11-2: Hydrogen Contracts Awarded, or Under Negotiation, After the First calls for Proposals in the

Sixth Framework programme (FP6) ....................................................................................................80 Table 11-3: Fuel Cell Contracts Awarded, or Under Negotiation, After the First Calls for Proposals in the

Sixth Framework Programme (FP6) ....................................................................................................81 Table 12-1: Countries by Number of Installation, Fuel Used for Manufacture of Hydrogen, Fuell Cell Type,

Year of Installation ...............................................................................................................................88 Table 13-1: Timetable of FCV Commercialisation ......................................................................................97

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Table 14-1: Auto Manufacturer, by Vehicle Type, Year of Demonstration, Year of Commercial Introduction, Engine Type, Fuel Cell type and size, Fuel Cell Manufacturer, Fuel Cell Parameters, Range, Maximum Speed. ..................................................................................................................129

Table 15-1: Model Type. By Bus Manufacturer, Location of Operation, Year of Demonstration, Engine Type, Fuel Cell Type and Size, Fuel Cell Manufacturer, Fuel Type, Fuel Cell Parameters, Range, Maximum Speed. ...............................................................................................................................134

Table 16-1: Vehicle Type, by Manufacturer, Year of Demonstration and Commercial Introduction, Fuel Cell Type and Size, Fuel Cell Manufacturer, Fuel Cell Parameters, Range, Maximum Speed. .......137

Table 17-1: Present and Planned Hydrogen Fuelling Stations.................................................................141 Table 17-2: Source of Hydrogen Supply...................................................................................................142

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2. The Hydrogen Economy – What is it? Worldwide demand for energy is growing at a high rate, with average growth of 1.8% per annum predicted for the period 2000-2030 for primary energy worldwide.

The Carbon Economy The bulk of the energy which drives the world is derived from carbon products, principally fossil fuels. Hydrocarbons account for 80% of the world’s primary energy supply; oil for 35%, coal for 24% and gas for 21%. More than half of the balance, 11% is contributed by renewables, almost all in the form of renewable biomass. Biomass emits carbon and other greenhouse gases when it is burned, but these are counter-balanced by the carbon which new plants consume when they grow to replace those that have been combusted. Nuclear power and hydro power, which do not produce carbon, contribute 9%. It is common to associate the use of carbon as a fuel with the Industrial Revolution which gave birth to the enormous economic development of the past two centuries. In fact carbon products, both renewable and fossilised, have always been used, but the volume of their consumption has increased exponentially with industrialisation.

Figure 2-1: Fuel Shares, Total Final Primary Energy Supply TPES

10,579 Mtoe

Coal24%

Oil35%

Gas21%

Nuclear7%

Hydro2%

Renewable11%

Source: EIA, IEA

The increased demand for energy is being met largely by reserves of fossil fuel that emit both greenhouse gasses and other pollutants. Those reserves are diminishing and they will become increasingly expensive. Hydrocarbon reserves are being depleted. According to traditionally used definitions of reserves, the world has only 40 years of oil left at current rates of consumption, 67 years of natural gas and 164 years of coal. The global energy community is currently engaged in debate about the extent of the world’s remaining petroleum reserves and the rate of their depletion. Traditional orthodoxy is being challenged and the actual definitions of the resource itself and of the term ‘reserves’ are under scrutiny.

There are two strands to the reassessment of the world’s fossil fuel energy reserves. The definitions are themselves being reassessed. The rigour of most of the valuations is largely dependent on probabilities which are assigned to various factors, such as the likelihood of pipelines being available to a specific field. Discovered or known resources can be divided into proved reserves and prospective or unproved

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Various options are being reviewed for ocean storage of captured CO2. In ‘dissolution type’ ocean storage, the CO2 rapidly dissolves in the ocean water, whereas in ‘lake type’ ocean storage, the CO2 is initially a liquid on the sea.

Figure 5-4: Ocean Storage Concepts for Captured Carbon

Source: UNEP, Intergovernmental Panel on Climate Change

Enhanced Oil Recovery (EOR) Enhanced Oil Recovery merits particular attention in the UK context because it represents an appreciable storage option for CO2 while offering a financial return from the additional oil extracted from UK Continental Shelf reserves.

EOR may use CO2 to mobilise some of the oil remaining in a reservoir after primary and secondary production is complete. It does this by dissolving in the oil thereby reducing the oil’s effective viscosity and making it more mobile. The movement of the CO2 from within the reservoir can then sweep the oil to the production wells. CO2 based EOR is an established onshore procedure in North America but has not yet been undertaken offshore.

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7. Hydrogen Production, Volume and Producers Global Production There is an established infrastructure for hydrogen production and delivery today to meet the needs of industrial applications including chemical production, metals processing, refining, fats and oils production and electronics processing. Global production is commonly estimated at approximately 50 Million tonnes (Mt) or 500 billion Nm3. This is enough hydrogen to fuel 250 million fuel cell cars. Global statistics of hydrogen production are erratic and the estimates vary because 95% of the hydrogen produced in the world is manufactured for captive use in industrial processes. Only 5% is manufactured for sale by merchant producers. Almost half the total, 48%, is produced by steam reforming of natural gas, 30% from oil and 18% from coal. Only 4% is produced by electrolysis.

Table 7-1: Production of Hydrogen by Source

Nm3 billon

Million tonnes (Mt) %

Natural gas 240 24 48%

Oil 150 15 30%

Coal 90 9 18%

Electrolysis 20 2 4%

500 50 100%

Source: DOE

The largest producers are the US and China, which together account for approximately one third of global production, 18% and 16% respectively. The next highest recorded is Germany with 6%, followed by the UK and France with 3% and 2%.

Table 7-2: Half of the Hydrogen is Produced in the US, China and the EU.

Mt %

US 9.00 18%

China 8.00 16%

Europe 7.10 14%

Germany 2.98 6%

UK 1.35 3%

France 0.78 2%

Italy 0.64 1%

Spain 0.28 1%

Austria 0.21 0%

Other Europe 0.92 2%

Japan 1.55 3%

ROW 17 34%

50 100%

Source: DOE, ISO/TC

Merchant hydrogen production in the US grew by 9.5% a year from 1997 to 2002 and then by 10% a year to 2006. This was considerably higher than for captive hydrogen and the total growth of hydrogen, including merchant and captive, was 4% a year up to 2006.

Merchant and Captive Captive hydrogen production is spread among a large number of companies.

The merchant hydrogen industry is dominated by the four gas majors:

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8. Fuel Cells, Types, Current Status and Applications of Each Type

What is a Fuel Cell? Fuel cells produce energy without combustion by an electrochemical process using hydrogen fuel. A fuel cell consists of two electrodes, a negative anode and a positive cathode, sandwiched around an electrolyte. Hydrogen is fed to the anode and oxygen (from the air) to the cathode. Encouraged by a catalyst, the hydrogen atom splits into a proton and an electron. The proton passes through the electrolyte. The electrons create a separate current that can be utilised before they are reunited with the hydrogen and oxygen to form water molecules.

Figure 8-1: Fuel Cell Concept

Source: FuelEconomy.Gov

When a fuel cell system is equipped with a ‘fuel reformer,’ the fuel cell can utilise hydrogen from a number of hydrocarbon fuels including natural gas, methanol, propane, biomass, and gasoline. In principle, any hydrogen compound will do. The emissions from reforming these various hydrocarbon fuels would still be cleaner than those from a combustion process. It is also possible to obtain hydrogen by separating water in an electrolyser, or by extracting it from a compound that contains no carbon, such as ammonia or boron compounds.

Fuel cells are a family of technologies, characterised by their electrolytes and temperature of operation. Different technologies will be suitable in different applications. At present, PEMFCs and SOFCs are

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