The Hydrogen Energy Option

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1 The Hydrogen Energy Option Alister Gardiner Industrial Research Limited Presentation to Maori and the Sustainable Energy Business Conference, Taupo, 4 August 05

2 2 Presentation Overview Energy situation analysis Why hydrogen? Hydrogen and fuel cell basics Global scene What s happening here? Summary

3 Energy Drivers for Change #1 Global Warming & Pollution Increasing Energy Production Increasing Demand 2-4%/yr #3 #2 Affordable Energy R&D Constrained Resources Global Energy Supply Issues Issue #1 Climate Change Continued fossil fuel use will accelerate climate change Issue #2 Constrained Resources Energy supply security, delivery infrastructure, competition for resources Issue #3 Affordable Energy Cost impacts on wellbeing and economic competitiveness 3

4 Situation Analysis - Summary Some Market Predictions The International Energy Agency predicts that electricity s share of the market in OECD countries will grow from 24% in 1970 to 40% in 2020 Dupont small stationary fuel cell market will be valued at $8 billion USD by 2010 Fuel revenues from fuel cell use in Europe may reach 17 billion Euro by 2040 Price Waterhouse Coopers - by 2020 hydrogen technologies and related goods and services will exceed 1.7 trillion USD in worldwide sales ABIresearch distributed generation investment $NZ26 billion/yr worldwide by % of Germany s generation will be distributed 4

5 5 Situation Analysis - New Zealand Fossil Resources, at current extraction rate: Gas: declining, <10yrs Oil: very limited, < 2 yrs Coal: large, >1000yrs Fuel Recoverable Reserves (PJ) Gas 2,273 Oil 591 Coal 103,324 Renewable Resource opportunities Solar: very good, hrs/yr Biomass: excellent growth rates, pinus radiata 20yr cycle Wind: excellent, many sites > 45% capacity factor Wave: excellent, (near shore 20kW/m, deep water 100kW/m) Some additional geothermal possible

6 Situation Analysis - New Zealand Future Energy Supplies Direct use of renewable resources where possible Clean up fossil resources before use Process and manufacture more convenient energy carriers where appropriate Future Energy Carriers Electricity Fuels Natural gas and LPG Methanol? Ethanol? Biodiesel? Hydrogen? 6

7 7 Why Hydrogen? Fact #1: Fuel Cells need hydrogen Efficient - up to 83% electrical energy + heat + water NO exhaust pollution NO noise or vibration Fact # 2: Hydrogen must be manufactured it is only an energy carrier Fact #3: Ultimately hydrogen must come from sustainable resources From solar or biomass sources From nuclear energy? A fuel Cell Stack

8 Why Hydrogen? Potential role in the future energy infrastructure As a transport fuel for fuel cell vehicles (FCVs) For stationary generation using fuel cells A fuel cell vehicle A residential fuel cell 8

9 9 Why Hydrogen? Transport Creating a new sustainable Transport Infrastructure through Fuel Cells and Hydrogen Passenger vehicle well to wheels performance comparison for 10 different ICE and FC drive systems (Source: Scientific American, May 2004) Hydrogen FCV has best efficiency (22%), and lowest emissions of the fossil options (140gm/km) Ethanol FCV has lowest GHG footprint (10gm/km) due to renewable fuel source, but modest efficiency (10%) Next best are: Efficiency - petrol electric and diesel electric hybrid (18%) Emissions methanol and petrol FCV (210/220gm/km) According to this study FCVs provide real benefits through improved fuel efficiency and reduced GHG emissions In a FCV, the electrical output drives an electric motor directly or feeds an energy storage buffer consisting of batteries or supercapacitors (hybrid FCV)

10 Why Hydrogen? Power Supply Creating a new sustainable Distributed Energy Power Supply Infrastructure through Fuel Cells and Hydrogen Distributed Generation (DG) can: Reduce losses Reduce environmental impact But solar and wind resources are unpredictable Fuel Cells have a role through: Providing firm capacity High electrical efficiency Zero/Low emissions Quiet operation CHP 10

11 11 Why Hydrogen?- Sources Potential Role of Hydrogen in the Future Energy Infrastructure Resources Carriers Distribution Utilisation Market Entry Nuclear Coal Oil NG/LPG Biomass Solar Wind Geothermal Marine Electricity Hydrogen o o o o o o o o o o o o o o o losses power heat power CHP power Fuel cell markets Portable Power Stationary Power (Distributed Energy) Transport Power (Road Vehicles)

12 12 Fuel Cell Basics What is a Hydrogen Fuel Cell? An electrochemical generator that combines hydrogen and oxygen to produce dc electricity, heat, and water. Hydrogen + oxygen = water + electricity + heat 2H 2 + O 2 = H 2 O + free energy (electrical power + heat) There are about half a dozen promising hydrogen fuel cell technologies Proton Exchange Membrane (PEMFC) is the dominant technology being developed for vehicles Gas diffusion electrodes Electrical Load

13 13 Fuel Cell Basics Fuel Cell Components Membrane electrode assemblies (MEAs or gas diffusion electrodes)

14 Integration of community distributed energy solutions (IDES) Fuel Cell Basics Fuel Cell generator system consists of Stack Fuel processing Monitoring and control Power electronics interface IRL Fuel Cell system development 1.2kW DCI 1200 field ready generator for pilot demonstration systems Hydrogen gas fuel or methanol/ethanol with fuel processor Combined power and hot water Comply with safety regulations Fuel Cell generator being developed for residential power supply by Industrial Research Limited 14

15 Hydrogen Basics INCREASING ENERGY CONTENT CO 2 ENERGY IN solar radiation O 2 3 LIVING PLANTS O 2 FOOD CO 2 LIVING ANIMALS WATER CH 4 DEATH ENERGY OUT DEATH THE (EARTH-BOUND) HYDROGEN ENERGY CYCLE O 2 DECAY & UTILISATION 2 1 CO 2 CH 4 ENERGY OUT wasted as heat or captured in various ways At present, natural gas, a fossil fuel, is the cheapest way to produce hydrogen 0n Earth, hydrogen is bound up in a biological energy cycle, and we can extract it from various points after other organisms have increased the energy value: 1. Hydrocarbons processed from animals (fats, oils, methane, etc.) 2. Hydrocarbons processed from biomass (cellulose, sugars, starches, methane, coal, etc.) 3. Water is an inexhaustible source of hydrogen, but extracting it always requires more energy than we get back 15

16 Hydrogen Basics Sources of Hydrogen Fossil Resources Natural gas Petroleum oil Coal Renewable Resources Biomass Wind electricity Direct solar electricity Marine electricity Other Geothermal electricity Nuclear electricity Hydrogen Production Processes Chemical Processes Pyrolysis Gasification Reformation Water gas shift Electrolysis Direct thermal dissociation Photochemical Biological Processes Direct biological Fermentation 16

17 Hydrogen Basics Many technology gaps to be addressed: Production - high purity hydrogen from renewable energy sources Storage - safe, high density hydrogen storage for distributed energy and transportation Utilisation - hydrogen appliances, eg FC electrode life and cost, low cost catalytic combustion, sensors Many research challenges: High temperature processes, gas separation membranes, catalysis, electrochemistry, thermodynamics, metal-organic synthesis, surface science, materials technology, electrical engineering, energy control systems, hydrogen diffusion and embrittlement, CO 2 sequestration 17

18 18 Global Scene How Serious is the International Community? Iceland Govt commitment to a hydrogen economy Energy companies Several hundred fuel cells piloted in residential and commercial applications Vehicle manufacturers All major manufacturers are demonstrating close to market-ready vehicles USA, Europe government research programs $US350m to 130 institutions and companies for hydrogen fuelled cars EU 350m Euros in 6 th framework to hydrogen and fuel cell research Cities public transport demonstrations 13 Daimler Chrysler FC bus sites around the world New Zealand? a modest government funded research program but as yet no attempt to develop a hydrogen pathway

19 Global Scene Transport Fuel Cells Hydrogen Vehicle Trials Hundreds of fuel cell vehicles are now in daily operation around the world 50+ hydrogen gas filling stations in place in USA, Japan and Europe Manufacturers and gas suppliers are carefully monitoring all aspects of vehicle and fueling station performance Daimler Chrysler fuel cell bus Ballard fuel cell bus engine Fuel cell passenger vehicle 19

20 Global Scene Residential Fuel Cells Japan Tokyo Gas/Ebara Ballard Europe USA 1kWe 31% efficient PEM with 200l hot water storage, NG fuel with WGS reformer 10 year leasing contract, 200units planned for 2005 Sales starting 2008, 10,000 units in 2009 Sulzer Hexis 1kWe 30%efficiency SOFC, 2.5 kwth+25kw backup, overall efficiency ~85% NG fuel with CPOX reformer, 100 installed systems, >1million hrs Valliant 4.6kWe 31% efficient PEM, 7kWth 88% total fuel efficiency 43 fuel cell appliances on test, 170,000hrs operation Plugpower Supply Valliant plus have their own fleet in USA, Asia trial sites Idatech 1 and 5kW methanol fueled PEM systems, also propane and diesel 20

21 21 Global Scene Possible Timeframe Possible Timeframe for Hydrogen Fuel Cell Uptake Fuel cell bus and other vehicle demonstrations - now Utility and building distributed generation demonstrations - now First commercial laptop methanol FC batteries Introduction of commercial distributed generation ? Introduction of private fuel cell vehicles ? Accelerating adoption of stationary generation Mass vehicle adoption Estimates suggest a 50 year time frame to complete the transition

22 What s Happening Here? Sustainable Energy Actions Target of 30PJ new renewables between 2000 and 2012 Kyoto Protocol was ratified by NZ in 2002 Hydrogen Energy New Zealand has joined the IPHE at the TLC level This requires New Zealand to develop a national Hydrogen Roadmap As yet, there is no specific hydrogen energy policy A modest government funded research portfolio is under way Production Storage Utilisation Demonstrations pilots 22

23 Several Fuel Cell pilot / demonstration projects are being undertaken What s Happening Here? Experimental 6 kw alkaline fuel cell Remote Area Power System (RAPS) 2002 experimental 6 kw alkaline fuel cell RAPS shipped to Murdoch University, Perth First operational alkaline fuel cell system in Australasia Hydrogen fuelled IRL CEO, Nigel Kirkpatrick and Fuel Cell Technology Manager, Mike Callander discuss the RAPS technology 23

24 Several Fuel Cell pilot / demonstration projects are being undertaken What s Happening Here? Totara Valley farming community planned demonstration HyLink system configuration IRL and Massey University local farmers Wind-hydrogen energy link Wind energy Electrolyser H 2 Pipeline volume 1.3m 35psi Fuel cell Conditioned AC power Super capacitor buffer H 2 burner Heat loads Totara Valley, Kumeroa 2km distance 24

25 Several Fuel Cell pilot / demonstration projects are being undertaken What s Happening Here? USAP Facility, International Antarctic Centre, Christchurch US DoD Residential PEM Fuel Cell Demonstration project operating since April kWe ReliOn fuel cells providing battery charging and yard lighting 30% electrical efficiency, no heat capture Dual Fuel Genesis methanol reformers with hydrogen gas backup Demonstrate 90% cumulative availability for 1 year Contract management, systems engineering, installation and monitoring by Industrial Research Limited A view of the system sited at the Passenger Processing Centre 25

26 Several Fuel Cell pilot / demonstration projects are being undertaken What s Happening Here? New Zealand - IRL Gracefield Research Centre, Wellington CFCL-POWERCO residential SOFC demonstration currently being commissioned 1kWe grid connected integrated CHP energy system Electrical efficiency approx. 40%, overall efficiency 80% Water storage 90degC Natural gas fuel User host site, installation and monitoring contracted to Industrial Research Limited CFCL fuel cell CHP generator and UPS 26

27 27 What Might Happen Here? Future Urban Distributed Energy System Development: Fuel Cell Based MicroCHP Residential 1 kwe 1:1 heat:power Load following Alcohol or other infrastructure fuels Fuel Cell CHP Generator Electricity Heat Conceptual Integrated System Solar Energy Delivery (H/P) Power Conversion Fuel Cell Energy Delivery (CHP) Solar heat Power Fuel heat Free intermittent solar energy Combined heating and electrical demand Purchased stored fuel Purchased / sold electricity Meter GRID

28 Summary Conclusions The world will run out of cheap oil relatively soon ( ?) Reliance on BAU oil imports could have crippling economic consequences New Zealand needs to debate and plan for substitute fuels now Renewable fuels may provide a partial answer A locally sourced low-carbon energy carrier such as hydrogen, coupled with fuel cell generators is a viable alternative energy system Fuel cell cost targets can be achieved if demand is created Government and Industry partnership is needed Early action will deliver economic benefits Quotes from an Iranian oil industry expert (2004): I can see prices of $3 to $4/litre - very soon. Get prepared today not tomorrow Everything is going to change 28

29 Summary New Zealand could benefit from being proactive in introducing hydrogen energy Carbon avoidance and sequestration Energy security and sustainability in our own hands Future proofing of energy costs Ultimately a lower cost energy infrastructure New technology development New industrial applications Advanced technology exports growth Job growth Questions? 29

30 30 Hydrogen & Distributed Energy New and Emerging Energy Technologies New Hydrogen Technologies Going Forward.. Unique, Niche Clean Energy Technologies