UNIDO-ICHET

Hydrogen Energy
Report
2010

Enes UGUR
20.02.2010
Contents
Contents.................................................................................................................2

Combating Climate Change with Hydrogen Energy................................................3

Roadmaps of Countries..........................................................................................4

European Commission.........................................................................................4

United States.......................................................................................................6

Germany............................................................................................................. 8

Canada.............................................................................................................. 10

Japan.................................................................................................................11

Conclusion.........................................................................................................12

References........................................................................................................ 13
Combating Climate Change with Hydrogen Energy
Energy is the very lifeblood of today’s society and economy. Our work, leisure,
and our economic, social and physical welfare all depend on the sufficient,
uninterrupted supply of energy. Yet we take it for granted – and energy demand
continues to grow, year after year. Traditional fossil energy sources such as oil
are ultimately limited and the growing gap between increasing demand and
shrinking supply will, in the not too distant future, have to be met increasingly
from alternative primary energy sources. We must strive to make these more
sustainable to avoid the negative impacts of global climate change, the growing
risk of supply disruptions, price volatility and air pollution that are associated with
today’s energy systems. The energy policy of the European Commission(1)
advocates securing energy supply while at the same time reducing emissions
that are associated with climate change. This calls for immediate actions to
promote greenhouse gas emissions-free energy sources such as renewable
energy sources, alternative fuels for transport and to increase energy efficiency.

On the technology front, hydrogen, a clean energy carrier that can be produced
from any primary energy source, and fuel cells which are very efficient energy
conversion devices, are attracting the attention of public and private authorities.
Hydrogen and fuel cells, by enabling the so-called hydrogen economy, hold great
promise for meeting in a quite unique way, our concerns over security of supply
and climate change.

Hydrogen is not a primary energy source like coal and gas. It is an energy carrier.
Initially, it will be produced using existing energy systems based on different
conventional primary energy carriers and sources. In the longer term, renewable
energy sources will become the most important source for the production of
hydrogen. Regenerative hydrogen, and hydrogen produced from nuclear sources
and fossil-based energy conversion systems with capture, and safe storage
(sequestration) of CO2 emissions, are almost completely carbon-free energy
pathways.

Fuel cells will be used in a wide range of products, ranging from very small fuel
cells in portable devices such as mobile phones and laptops, through mobile
applications like cars, delivery vehicles, buses and ships, to heat and power
generators in stationary applications in the domestic and industrial sector. Future
energy systems will also include improved conventional energy converters
running on hydrogen (e.g. internal combustion engines and turbines) as well as
other energy carriers (e.g. direct heat and electricity from renewable energy, and
bio-fuels for transport).

The benefits of hydrogen and fuel cells are wide ranging, but will not be fully
apparent until they are in widespread use. With the use of hydrogen in fuel-cell
systems there are very low to zero carbon emissions and no emissions of harmful
ambient air substances like nitrogen dioxide, sulphur dioxide or carbon
monoxide. Because of their low noise and high power quality, fuel cell systems
are ideal for use in hospitals or IT centres, or for mobile applications. They offer
high efficiencies which are independent of size. Fuel-cell electric-drive trains can
provide a significant reduction in energy consumption and regulated emissions.
Fuel cells can also be used as Auxiliary Power Units (APU) in combination with
internal combustion engines, or in stationary back-up systems when operated
with reformers for on-board conversion of other fuels – saving energy and
reducing air pollution, especially in congested urban traffic.

Hydrogen can be produced from carbon-free or carbon-neutral energy sources or

from fossil fuels with CO2 capture and storage (sequestration). Thus, the use of
hydrogen could eventually eliminate greenhouse gas emissions from the energy
sector. Fuel cells provide efficient and clean electricity generation from a range of
fuels. They can also be sited close to the point of end-use, allowing exploitation
of the heat generated in the process.

In brief, hydrogen and electricity together represent one of the most promising
ways to realize sustainable energy, whilst fuel cells provide the most efficient
conversion device for converting hydrogen, and possibly other fuels, into
electricity. Hydrogen and fuel cells open the way to integrated “open energy
systems” that simultaneously address all of the major energy and environmental
challenges, and have the flexibility to adapt to the diverse and intermittent
renewable energy sources.

In this report, we will discuss roadmaps of some countries for hydrogen energy to
show transition of them to hydrogen economy.

Roadmaps of Countries

European Commission
Moving Europe away from its 20th century dependency on fossil fuels to an era
powered by the complementary energy carriers, electricity and hydrogen, will
require careful strategic planning. Hydrogen is not likely to be the only fuel for
transport in future. Moreover, maintaining economic prosperity during the
transition period will involve maximizing the efficient use of various forms of
fossil-based energy carriers and fuels such as natural gas, methanol, coal, and
synthetic liquid fuels derived from natural gas. During that time it will also be
important to introduce renewable energy sources such as biomass, organic
material – mainly produced by the agriculture and forestry sectors – that can be
used to generate heat, electricity, and a range of fuels such as synthetic liquid
fuels and hydrogen. Where appropriate, traditional forms of electricity generation
can be harnessed to produce hydrogen through the electrolysis of water, while
employing new, safe technologies and renewable sources to minimize harmful
emissions of greenhouse gasses and pollutants. Throughout the period,
electricity from renewable energy sources can be increasingly used to generate
hydrogen. The ability to store hydrogen more easily than electricity opens up
interesting possibilities for storing energy, helping to level the peaks and troughs
experienced in the electricity generating industry. Hydrogen fuelling stations can
be erected, using locally or industrially produced hydrogen. Given the complex
range of options, a framework for the introduction of hydrogen and fuel cells
needs to be established. This transition should be executed progressively along
the following broad lines:

In the short and medium term (to 2010):

• Intensify the use of renewable energy sources for electricity which can be used
to produce hydrogen by electrolysis or fed directly into electricity supply grids;

• Improve the efficiency of fossil-based technologies and the quality of fossil-

based liquid fuels;

• Increase the use of synthetic liquid fuels produced from natural gas and
biomass, which can be used in both conventional combustion systems and fuel-
cell systems;

• Introduce early applications for hydrogen and fuel cells in premium niche
markets, stimulating the market, public acceptance and experience through
demonstration, and taking advantage of existing hydrogen pipeline systems; and

• Develop hydrogen-fuelled IC engines for stationary and transport applications,

supporting the early deployment of a hydrogen infrastructure, providing they do
not increase the overall CO2 burden.

Considerable fundamental research is needed throughout this period, on key

technology bottlenecks, e.g. hydrogen production, storage and safety, and fuel
cell performance costs and durability.

In the medium term (to 2020):

• Continue increasing the use of liquid fuels from biomass;

• Continue using fossil-based liquid and gaseous fuels in fuel cells directly, and
reforming fossil fuels (including coal) to extract hydrogen. This enables transition
to a hydrogen economy, capturing and sequestering the CO 2. The hydrogen thus
produced can then be used in suitably modified conventional combustion
systems, hydrogen turbines and fuel-cell systems, reducing greenhouse gas and
pollutant emissions; and

• Develop and implement systems for hydrogen production from renewable

electricity, and biomass; continue research and development of other carbon-free
sources, such as solar thermal and advanced nuclear.

In the medium to long term (beyond 2020):

• Demand for electricity will continue to grow, and hydrogen will complement it.
Use both electricity and hydrogen together as energy carriers to replace the
carbon-based energy carriers progressively by the introduction of renewable
energy sources and improved nuclear energy. Expand hydrogen distribution
networks. Maintain other environmentally benign options for fuels.
United States
Funding for the EERE hydrogen technology program in the 09 Budget is $146
million. The hydrogen technology program is tasked with developing hydrogen
production, storage, and delivery and fuel cell technologies. Current research
aims to enable industry to commercialize a hydrogen infrastructure and fuel cell
vehicles by 2020.

In 2001, the U.S. Department of Energy held a meeting of 53 senior executives

representing energy and transportation industries, universities, environmental
organizations, federal and state agencies and national laboratories to discuss the
potential role of hydrogen systems in America’s energy future. Billed as a forum
to create a national vision for hydrogen, the meeting’s participants discussed the
timeframe and key milestones that would have to be met for hydrogen to
become a premier energy carrier. The five major findings of the report are quoted
verbatim below:Hydrogen has the potential to solve two major energy challenges
that confront America today: reducing dependence on petroleum imports and
reducing pollution and greenhouse gas emissions.

There is general agreement that hydrogen could play an increasingly important

role in America’s energy future. Hydrogen is an energy carrier that provides a
future solution for America. The complete transition to a hydrogen economy
could take several decades.

The transition toward a so-called “hydrogen economy” has already begun. We

have a hydrocarbon economy, but we lack the know-how to produce hydrogen
from hydrocarbons and water, and deliver it to consumers in a clean, affordable,
safe, and convenient manner as an automotive fuel or for power generation.

The “technology readiness” of hydrogen energy systems needs to be

accelerated, particularly in addressing the lack of efficient, affordable production
processes; lightweight, small volume, and affordable storage devices; and cost-
competitive fuel cells.

There is a “chicken-and-egg” issue regarding the development of a hydrogen

energy infrastructure. Even when hydrogen utilization devices are ready for
broad market applications, if consumers do not have convenient access to
hydrogen as they have with gasoline, electricity, or natural gas today, then the
public will not accept hydrogen as “America’s clean energy choice.”

Figure summarizes DOE’s vision of the transition to a hydrogen economy.

Germany
The German government invests additional 500 million € in demonstration
activities and the market preparation for hydrogen and fuel cell technology
(responsibility: Federal Ministry for Transport, Building and Urban Development)
on top of already ongoing R&D programmes (responsibility: Federal Ministry of
Economics). Together with the industry investments will add up to more than 1,4
billion € over ten years 2007-2016).

Politics, industry and science together have defined the necessary steps for the
implementation of the NIP in the National Development Plan.

•Development Plans for

– Transportation
– Stationary Home Energy Supply

– Stationary Industry Energy Supply

Canada

Fuel Cells for Portable Electronics Should be First (2009–2013)

Power hungry handheld devices incorporating G3 wireless protocols and

supporting broad multimedia capabilities, including streaming video, video-phone
and GPS, are creating an energy gap. Today, high-end users are compelled to
carry replacement batteries. With the power demand projected to quadruple over
the next four years, micro fuel cells that provide higher energy density and can
be refuelled in ten minutes or less will become a viable replacement for lithium
ion batteries.

To participate in this potential mass market application, Canadian companies

developing fuel cells for portable electronics will need to ally themselves with the
battery companies that presently provide the micro-power solutions for mobile
phones, laptop computers, and other portable electronic devices.

Residential Co-gen will Emerge in Certain Countries (2012–2017)

The residential co-gen market for fuel cell systems is being driven by government
support in Japan and, more recently, South Korea. Participation by Canadian
industry will be through partnerships with organizations based in those countries.
The technology, manufacturing and supply chain knowledge they develop
through those relationships should strengthen their competitiveness in other
near-term markets, such as backup power, materials handling, and buses, and
thus further position them to be suppliers when the mass market in cars begins
to happen.

Although the residential co-gen system is unlikely to become common in North

America because of the low cost of electricity, the very low cost reformer sub-
system could be deployed in homes as hydrogen refuelling systems for cars, and
fuel cell systems for portable electronics.

Fuel Cells in Cars as the ZEV End-game for Plug-in Hybrids (2015–2025)

Full-performance, zero-emission, sustainable mobility, is the end-game for

automotive OEMs. GM, Toyota, Ford, Daimler and Honda are developing a
portfolio of sustainable mobility solutions ranging from bio-fueled ICEs, through
hybrids and plug-in hybrids, to hydrogen fuel cell vehicles. This scenario presents
opportunities to leverage synergies between emerging plug-in hybrid vehicle
technology and the "heavy-hybrid" fuel cell solutions being deployed in the
materials handling and bus markets. Canadian companies participating in these
near-term markets will have to develop the technologies and talent pool to be
successful participants in automotive "end-game".
Japan
By far the most ambitious to accelerate the development of a full-scale hydrogen
economy is Japan. That is because, of all the developed countries, Japan is the
one most dependent on foreign oil imports. As the sixth largest oil consuming
country in the world with only a small trace of oil within its own boundaries, Japan
believes gaining independence from foreign oil as a matter of national priority. In
2002, the Japanese Ministry of Economy, Trade and Industry (METI) launched a
comprehensive program that envisions a full commercialization of fuel cells and
hydrogen-infrastructure by 2020. To obtain this, the Japanese government has
allocated $4 billion with $250 million set aside for research and development in
the next five years [1]. Japan’s advantage comes from its highly developed auto
industry. In addition to the two government programs involved, METI and NEDO
(New Energy and Industrial Technology Development Organization), Japan’s
major automakers such as Toyota, Nissan and Honda are all competing to
develop the first commercially viable fuel-cell vehicle.

The Road Map

Japan’s road map to a full-fledge hydrogen economy has three phases. The
demonstration phase, which has been ongoing since the 1980’s, was to develop
the necessary technology, demonstrate fuel cells, and to establish the codes and
standards needed for commercialization. The second phase, which the Japanese
government projects will last until 2010, is to introduce fuel cells into the energy
and transportation sector. By 2010, Japan expects to have 50,000 fuel cell
vehicles on the road and 2.1 GW of stationary fuel cells in operation. The final
phase of the road map, which is projected for the period between 2010-2020 is to
propagate hydrogen technology. By 2020, Japan hopes to have 5,000,000 fuel
cell vehicles, 4,000 hydrogen filling stations and 10 GW of stationary fuel cell
cogeneration plants.

Fuel Cell Commercialization and Diffusion Scenario

1: 2005 to 2010 (Introduction stage)

– Acceleration of the Introduction and Gradual Establishment of Fuel Supply
System
– Leadership of Public Sectors as well as FC Industries in Promotion of FCV and
Buses

2: 2010 to 2020 (Diffusion stage)

– Establishment of Fuel Supply System and Self-sustained Growth of the Market
– Private Sector’s Promotion of the Introduction

3: 2020 to 2030 (Penetration stage)

– Hydrogen Supply Infrastructure across the Country with 8500 Fuelling Stations
– Combined Cycle Fuels Cells in Practical Stage
Conclusion
References
[1] Hydrogen energy and fuel cells a vision of our future, European Commission,
Directorate-General for Research, 2003, Directorate-General for Energy and
Transport, http://europa.eu.int/comm/research/energy/pdf/h2fuell_cell_en.pdf

[2]