The Hydrogen Society A National Feasibility Study

The Hydrogen Society A National Feasibility Study [Hydrogensamfunnet en nasjonal mulighetsstudie] May 2000 A report prepared by SINTEF Energy Research, Trondheim Institute for Energy Technology, Kjeller University of Science and Technology, Trondheim University of Oslo for The Research Council of Norway

Executive summary A national feasibility study has been conducted into hydrogen as a future environmentally friendly energy carrier. The report has identified the expertise found at research institutes and universities, within Norwegian business and industry, along with possible technological and commercial priority areas on an international basis. The project has been conducted in co-operation with the Foundation for Scientific and Industrial research at the Norwegian Institute of Technology (SINTEF), the Norwegian University of Science and Technology (NTNU), the Institute for Energy Research (IFE) and the University of Oslo (UiO). The information has basically been collected through arrangements at a workshop with nearly 100 Norwegian participants as well as three invited foreign lecturers (Ulrich Bünger from Germany, David Hart from England and Bragi Arnason from Iceland). A local workshop has also been arranged to discuss the form and content of the report. The report was written by representatives from each of the four groups. This report shows that Norway is especially well disposed for industrial development related to hydrogen as an energy carrier, partly because it is a natural gas producer, but also due to its expertise in industry and at universities and research institutes in the production of hydrogen by electrolysis. Future industrial development in this area depends on the amount of public-sector research, but the potential is considerable. Norwegian R&D in this area should concentrate its research as recommended in this report suggests. A summary of these recommendations is given in the table below. Priority Activities with potential for a rapid development of business activities (10 years) Intensified R&D Production of hydrogen from natural gas with CO 2 capture and sequestering PEM fuel cells and PEM fuel cell systems Basic research with long-term goals (30 years) Production of hydrogen by water electrolysis Storage of hydrogen in solid materials Materials technology research relevant for hydrogen systems Moderate R&D Integrated process systems Storage of liquid hydrogen carriers Combustion technology for hydrogen and hydrogen-enriched mixtures Energy systems and demonstration models and plants Production of hydrogen by biophotolysis Solid oxide fuel cells (SOFC) Technology monitoring Storage of compressed gas Production of hydrogen by photoelectrolysis and by gasification of biomass

1 RECOMMENDATIONS 1.1 SUMMARY In every industrialized country there is a growing demand for a greater use of sustainable energy. What drives such demands is the wish for less dependency on limited energy resources, to reduce the increase in the greenhouse effect and local pollution. In a scenario where an increasing portion of energy is taken from renewable sources, hydrogen is the natural choice as a means of storage and distribution. In a short time, developments in the car industry and fuel cell technology will contribute to a greater demand for hydrogen and technology related to hydrogen. If the path to be taken brings us towards a society that is primarily based on renewable energy, there are several problems on the way that need solutions concerning production, storage/distribution and ultimately the use of hydrogen. Due to economic and technological reasons the production of hydrogen from fossil fuels will be more suitable during a transition period. Norway with its great resources of natural gas, is in this aspect in a unique situation, and could become the leading nation in hydrogen production in a short period of time. The production of hydrogen from natural gas on a large scale is a mature technology, and the main aim of research must be the removal and sequestration of CO 2. The development of new systems for petrochemical products that are less expensive, more compact and well integrated with other processes, has a great potential, as well, and should be given high priority. The production of hydrogen that is based on renewable sources of energy, like water electrolysis, photo electrolysis, biophotolysis and gasification of biomass will probably be important in the future. Research within these areas has long-term objectives. The storage and distribution of hydrogen is the greatest challenge in an energy system based on hydrogen. With natural gas as a basis, liquid hydrogen carriers like condensed hydrogen (LH 2 ) or natural gas (LNG), ammoniac (NH 3 ), methanol (CH 3 OH or MeOH) and light hydrocarbons that can be transformed into hydrogen locally or in a vehicle, would be practical solutions. However, all of these have characteristics that make the unsuitable in long term (CO 2 emissions, toxicity and high use of energy). Storage hydrogen in solid materials is a very interesting field of research, and should have a high priority, but the objectives cannot be reached within the immediate future. End user technologies are independent to a great extent on what source the hydrogen comes from: natural gas or renewable energy. The development of PEM - fuel cells - and combustion technology both have short-term aims, and PEM-technology especially should be preferred. Solid oxide fuel cells (SOFC) have a substantial long-term potential, and should be closely examined.

Within all kinds of advanced hydrogen technology there is a need for materials development, when it comes to production, storage and end use. Both the fundamental and hydrogen-related materials science and technology should therefore be strengthened. In order to get a smooth introduction for hydrogen technology, it will also be necessary to devise good system solutions as well as build demonstration plants. Based on the above, Table 1 lists the main recommendations that can be used as a starting point for setting the priorities in hydrogen-related R&D in Norway. In the rest of this section these recommendations are examined more thoroughly, while the other parts of this report describe general topics such as production, storage, transport and end use of hydrogen. The competence, activities and challenges within these areas are also listed. Table 1: Recommendations for research activities in Norway when hydrogen is used as an energy carrier Priority Activities with potential for a rapid development of business activities (10 years) Intensified R&D Production of hydrogen from natural gas with CO 2 capture and sequestering PEM fuel cells and PEM fuel cell systems Basic research with long-term goals (30 years) Production of hydrogen by water electrolysis Storage of hydrogen in solid materials Materials technology research relevant for hydrogen systems Moderate R&D Integrated process systems Storage of liquid hydrogen carriers Combustion technology for hydrogen and hydrogen-enriched mixtures Energy systems and demonstration models and plants Production of hydrogen by biophotolysis Solid oxide fuel cells (SOFC) Technology monitoring Storage of compressed gas Production of hydrogen by photoelectrolysis and by gasification of biomass 1.2 GENERAL RECOMMENDATIONS Technology related to the implementation of hydrogen as an environmentally friendly energy carrier may in the broadest sense of the term become a field in which Norwegian R&D combined with industrial development, provides favourable conditions for the growth of new industry with a considerable earnings potential through exports. Norway's special natural resources should be the stimulus for this investment that will make environmentally friendly large-scale production of hydrogen possible. If hydrogen-related R&D is stimulated and co-ordinated, Norwegian industry can use spinoffs and new company formation to take part in a technological market that will appear during the next 10 to 30 years. Both fundamental and applied research is needed, with activities in the university sector as well as in the research institutes. A research programme for this sort of activity would make co-operation easier and strengthen the results. Such a research programme should at least have a budget of NOK 30 to 40 million per annum over 5 years before it is evaluated. (This should be compared to the public funds pumped into

this area in the USA, Japan (programmes with a duration of 28 years) and Germany, where expenditure was respectively NOK 220, 160 and 100 million in 1999.) Also, Norsk Hydro's budget, is approximately NOK 10 million in the year 2000. Research on materials and catalysis is important for many aspects of hydrogen technology. At the same time systems analyses should be carried out, as well as technical-economic assessments and the building of demonstration plants. It is important that hydrogen technology becomes generally available and the possibilities are demonstrated to the authorities. R&D focused on hydrogen technology must be large enough to make it realistic that Norway can become a market leader in areas of this technology during the coming 30 year period. Because of the financial risks connected with developing hydrogen as a sustainable source of energy, it should be the government's responsibility to cover the expenses related to these developments as well as encouraging the growth of this industry. Even though hydrogen is unlikely to have its ultimate breakthrough as an energy-carrier within the time perspective used in this report (30 years), the maintenance and strengthening of relevant expertise can only be investments that will benefit Norway. Focus areas for such R&D include: research on the production of natural gas for use in Norway, general research on materials, the development of catalysts, the study of adsorption/desorption processes (both in connection with storage in solid materials and development of catalysts), the development of reactor concepts, studies and development of combustion studies and technology development, and finally, system analysis and system know-how. In addition, work in these areas will involve the development of methods (calculation tools, for example), which is relevant for use in similar systems. 1.3 SPECIFIC RECOMMENDATIONS As a basis for the recommendations the following criteria are used: Norwegian natural resources Consequences for the environment/climate Market (domestic/international) in 10 years and 30 years Possibilities for a new industrial sector in Norway Risks Synergy Norwegian expertise in industry and at research institutes, universities and colleges 1.3.1 Recommendations: Hydrogen production Conversion of natural gas (NG) to hydrogen Large-scale production facilities

At large-scale facilities for the production of hydrogen, all the CO 2 will be produced in one place, and can be directly used in local industrial processes, or led to sequestration or reinjection. Norway has special conditions for the development of offshore production of hydrogen and hydrogen-carriers, while onshore facilities are also considered a viable solution. R&D should be concentrated on new concepts for the entire process. Separation and compression of CO 2 is a bottleneck in modern technology. Possible solutions could be a combination of reaction and H 2 -separation by the use of membrane or reactor systems, or separate hydrogen- and CO 2 -production. Total concepts that have been designed at universities and colleges, research institutes and in industry should be evaluated from both financial and technical points of view, where groups can co-operate in making optimal solutions. The universities, colleges and the research institutes should receive financial support from the Research Council of Norway for this work. Small-scale production facilities The chances are rather slim that gas pipelines will be built across much of Norway in the immediate future. Small-scale facilities for hydrogen production from NG must therefore be based on liquid gas carriers. In addition to LNG, hydrogen carriers like MeOH, NH3 and propane are already produced in Norway today. On the long term, NH3 will have a greater potential than MeOH and propane because NH3 does not contain carbon. Development of the solutions for splitting and H2-separation from NH3 is given high priority. On the short term, MeOH and hydrocarbons are the preferred solutions internationally. It is recommended that good solutions for the splitting of methanol and reformation of hydrocarbons are developed on a small scale. As for large-scale plants, total concepts should be considered that are evaluated in cooperation with Norwegian industry. Hydrogen production through water electrolysis Water electrolysis is commonly used in markets that are either based on renewable energy (wind domestically and solar cells internationally) or the use of surplus power from hydropower reservoirs. Norwegian industry has a leading position in the field of alkaline water electrolysis. The potential for this new industry depends on the development of technology that deals with SPE/PEM electrolysis. R&D should be given high priority within this area. Research is basically linked to catalysis and materials technology, including solid-polymer systems, corrosion durability, hydrogen- and oxygen-enhancing reactions, catalytic coating and membranes. Hydrogen production from bio-mass

Hydrogen production from bio-mass is more common in countries with better access to biomass resources than Norway. Gas conversion facilities can however be used together with fuel cells and for gas engine applications. Norwegian expertise in this field can prove to be valuable. Resources should be allocated in order to keep track of international developments in this field of research. Photo-electrochemical hydrogen production Photo-electrochemical hydrogen production technology is usually found in areas with high solar radiation. In Norwegian industry there is neither the expertise nor interest in this field of technology. However, research can be co-ordinated with the activities that deal with silicon solar cells. Participation in Annex 14 (photo-electrolytic H2 production) in IEA's hydrogen programme is recommended as this offers a good possibility for technology monitoring and reviewing leading-edge research developments. Photo-biological hydrogen production Photo-biological hydrogen production will require considerable R&D. There is interest in algae-cultivation technology in Norwegian industry since it facilitates the possibility of several interesting products in addition to H2. An experimental plant for the production of micro-algae in Vestfold county in Norway would make it easier apply the research being done within this area. As a result of participation in IEA's hydrogen programme (Annex 15, photo-biological H2- production), the Norwegian Institute for Water Research (NIVA) has followed international bio-photolysis research. It is recommended that the participation continues together with fundamental education and research in this field at universities and colleges. 1.3.2 Recommendations: Hydrogen storage and transport It is reasonable to assume that we face a situation of segmentation where the various hydrogen-carriers will dominate different parts of the market. Both liquid and solid hydrogen-carriers/storage-materials may become important in systems for the storage and transport of hydrogen. The dominating criteria will be efficient density of energy and costs as well as technical and environmental conditions. The development of good solutions for the storage and transport of hydrogen is crucial when it comes to developing hydrogen-based energy. As an exporter of energy, Norway should concentrate on both fundamental and applied research that leads to innovative, total solutions that satisfy the demands from both producers and end users. Hydrogen storage in solid materials

In the far future, the storage of hydrogen in solid matter will become a feasible way of storage for smaller quantities and mobile systems, but developments will require long-term research. Good solutions will be a result of basic research in materials science and technology. Using its existing expertise, Norway should have the ambition to be in a leading position in international research in this area. Research aimed at the production and understanding of metal hybrids with a very high density of hydrogen should be intensified and based on requirements for operational conditions, knowledge of local high hydrogen density in certain alloys and the importance of the characteristics of nano-crystals. Carbon materials might be a possible alternative to metal-hybrids. Internationally the research on carbon materials is just starting, and promising results demand verification and further development. R&D on hydrogen storage in carbon materials is recommended, and the activity should be concentrated in highly qualified groups with specialized knowledge as well as international cooperation. High-pressure storage of hydrogen Compressed gas as a storage material has been used in demonstration buses, but is unlikely to be used in cars. Today it is common to keep it in stationary storage in pressure tanks and transport the gas in large mobile units. High-pressure storage of hydrogen offers new possibilities for Norwegian industry, and it is recommended that industry takes the responsibility to bring the technological development some steps further ahead. It is reasonable that R&D within materials technology, technical design and security is involved in the work. Hydrogen storage by means of liquid carriers Hydrogen carriers such as NH3, MeOH and light hydrocarbons are now produced on a large scale in Norway. When this is utilized for energy applications, this will create new quality specifications. R&D should focus on systems analysis, technical and economic analysis, and clarifying the technological and safety issues concerned with the use of NH3, MeOH and LNG/wet-gas as energy carriers. The market for hydrogen carriers can be expected to grow within a quite short time, but it can only be expected to reach substantial dimensions on the long term. An analysis should be made to determine whether it is beneficial in financial and social terms to follow this with an equivalent increase in the production of hydrogen carriers in Norway. Hydrogen-storage and -transport in liquid form The storage of liquid hydrogen is very costly in terms of investment costs and energy, because of the process of liquefaction and boil-off from the storage tanks. However, the methods used are interesting when considering the financial as well as energy issues in operating with large volumes, especially exports where transport through pipelines is impossible.

Norwegian industry lacks expertise and has moderate ambitions within this area. At the same time there is a considerable involvement of industry in Norway in tank facilities for liquified gases. It is recommended that industry aims at the development of concepts for tanks that are designed to hold large quantities and also takes the responsibility for developing this technology. The possibility of developing a standard storage tank (container-solutions) should be considered. Relevant expertise must be maintained in universities and industry, particularly through the participation in such development projects. Transport of compressed hydrogen gas in pipelines The transport of compressed gas or hythane assumes that there is large-scale production of hydrogen in Norway that is already sold for export to the continent, and that the CO2 can be stored or sequestered near the place where it was produced due to relatively high duties in the EU. As an alternative, the method could be used in an infrastructure in Norway based on H2 brought through a network of gas pipelines. This type of development would be a considerable incitement to develop technology in Norway for the distribution and use of H2. Norwegian industry should take the responsibility for initiating R&D on pipeline transport of H2 and hythane. 1.3.3 Recommendations: End use of hydrogen There are only two kinds of fuel-cell technology that Norwegian industry is recommended to consider: SOFC and PEM. High-temperature, solid-oxide fuel cells (SOFC) Norway should concentrate moderate effort on SOFC to maintain a broad degree of knowledge and experience. It is recommended that the research is focused on protonconductive electrolytes, electrodes (anode-kinetics and anode materials), metallic coupling materials and modelling. There are synergies with membrane technology. PEM fuel-cell technology The substantial international concentration and very rapid development within PEM fuelcells indicate general recognition that the technology is expected to have a broad field of applications during the next few years. It is recommended that research in functional and structural materials for PEM fuel-cells applications is strengthened. Research should be concentrated on the interface between chemistry, materials science and work on energy issues. The CO-tolerance and dynamic behaviour of catalysts in total system-solutions is an important issue. Activities should be related to future deliveries of fuel (for example LH2, MeOH or NH3), and the problems that will occur when using natural gas as a H2-resource. Further focus should be placed on finding systems for renewable sources of energy. Marine applications and decentralized energy production are interesting market niches.

Combustion systems The main challenges are connected to safety and the environment (emissions of NOx) for combustion systems where burners are used in gas turbines (high pressure) and boilers (atmospheric pressure) as well as combustion engines. It is recommended that there is a concentration of activities in basic studies of flame structures and NOx-production in pure hydrogen fuels, as well as diluted hydrogen fuels and hydrogen mixed with methane (hythane). These studies should be linked to the development of design tools for new combustion technologies for such fuels. On the slightly longer term, high temperature corrosion studies will be required. Here, it is recommended that there is close cooperation with industry that is interested in developing combustion systems. Combined plants It is expected that electricity retains its role as a central energy carrier. Consequently, hydrogen systems should be assessed in connection with the production and distribution of electricity. It is recommended that work is focused on integrated production plants, such as combined gas and steam turbine units capable of producing a range of products not just electricity. There are several tasks research needs to address and solve, such as process design and optimisation, the step-by-step building of plant facilities and how to ensure safe system behaviour when changing the demand for products. It is recommended to assess future possibilities for the efficient and distributed production of electricity, as well as process design and optimisation of stationary fuel-cell facilities. It is recommended that an initiative should be aimed at developing concepts for combined plant facilities, including the petrochemical industry, and that the authorities and relevant industries in Norway take on an active role in the planing and assessment work. System solutions Basic expertise within relevant system development must be retained and further developed in pace with the demands of industry. The development of expertise should involve international co-operation, both through participation in IEA's Hydrogen programme and in other international projects. Within stationary systems it is recommended in the short- and medium terms to concentrate on wind/hydrogen systems in Norway: - In the short term, a small, isolated demonstration unit is recommended for the testing of key components and technology. - In the medium term, it is recommended to set up a large system that can be connected to the grid. - In the long term, expertise should be built up in PV-based systems, in order to keep up with market developments and any areas of focus for Norwegian industry. For the transport sector it is recommended to go through the necessary system studies in connection with:

- In the short term, a demo project with hydrogen/fuel-cell buses in the Oslo region. - In the medium term, a demo project with hydrogen/fuel-cell powered ferries. - In the long term, more general studies of alternative fuels and system solutions in order to develop optimal future systems for Norway. 1.3.4 Recommendations: Auxiliary research Hydrogen-related materials research In every part of a future hydrogen economy there are unsolved basic materials technology issues. There is a need for optimisation, maintenance and development of new materials. Continuous activity in research and education is recommended within general and hydrogen-related materials technology and associated basic subjects. Systems analysis Hydrogen as an energy carrier will always be a part of integrated systems. A hydrogen programme or project consequently needs a focus that is not strictly on the different processes and components, but also considers them in relation to relevant systems. Analysis and optimisation of systems by means of modelling tools will provide a foundation for practical testing in demonstration projects. It is recommended to maintain and develop existing activities within this area in accordance with industrial demand.