Kick Starting the Hydrogen Economy with Stationary Hydrogen

Kick Starting the Hydrogen Economy with Stationary Hydrogen Fuel Cells and Natural Gas Presented on May 2, 2003 By Arshia Javaherian

What If: Ø Ø Ø 25% of the World’s Energy Sources Disappear. The cost of fossil fuels rise dramatically. No alternative fuel is ready for immediate commercialization. 2

The Real Problem: Ø Ø Ø The Emergence of a middle class in China, Pakistan, India, and Mexico. Developing Nations/War-torn Nations slow rise of consumption. Fossil Fuels are finite. 3

The Solution: Ø Ø Today: Stationary Hydrogen Fuel Cells (HFCs), Reforming Natural Gas into Hydrogen Tomorrow: The Pure Hydrogen Economy 4

The Plan: Ø Stationary HFCs reforming natural gas. Ø Demonstrations. Ø Government support encouragement. Ø The Industry takes off Ø Simultaneous Deployment of H 2 fueled fleets. Ø Costs go down. Ø Technology advances. Ø Ø Ø Centralized H 2 production and improved transportation technology. . Mass introduction of HFC vehicles. Advanced production of hydrogen using wind, solar, and biomass. 5

Timetable Source: British Petroleum 6

Hydrogen is Not an Immediate Energy Solution Ø Ø Hydrogen used in Fuel Cells will not be a ready supply if 25% of the World’s Energy is unavailable tomorrow. Nevertheless, if we begin the shift to Hydrogen as our central fuel today, we will never run out of energy. 7

Why Hydrogen? Ø Ø Ø Environmentally clean. Completely renewable. Present everywhere. Present in our current energy resources. Storable. Nationally independent, individually independent 8

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The Basics: How A Fuel Cell Works 10

UTC Power PC 25 C Fuel Cell Power Plant 9 ft 16. 5 ft PC 25 C at Yankee Gas Services Office in Meriden, CT 11

PC 25 C: Overview Three main components: ØFuel processor, power section, power conditioner. ØMaximum output is 200 k. W. ØIn use since 1991. ØPC 25 provides both heat and power, and can replace grid power. Ø 40% efficient. 12

The Power of 200 k. W Application Category Typical Power Ratings Examples of Proposed Applications Portable 50 – 100 W Laptops, handheld electronics Lawn and garden equipment Residential/ Light Commercial 1 – 10 k. W Single or Multi-unit residential Premium, high reliability power for telecom, UPS, etc. 10 – 80 k. W Commercial / Small Scale Distributed Generation 80 – 500 k. W Hotel, School, commercial peakshaving Small to medium hospitals and office buildings 13

Units Currently Available Using Natural Gas On Site Plug. Power, Inc. 5 k. W Nuvera Fuel Cells 5 k. W DCH Technology, Inc. 1, 3, 5, 10, 20, 40 k. W UTC Fuel Cells 200 k. W Siemens Westinghouse 250 k. W Fuel. Cell Energy, Inc. 250 k. W 14

Onsite Reforming Ø Types of Reforming ØSteam Methane ØPartial Oxidation (POX) ØPlasma Torch 15

How Steam Methane Reforming Works Ø Ø NG Reacts with Steam at 1500° to 1600° Fahrenheit and a nickel catalyst to strip out the H 2. Result is unpure mixture of H 2, CO 2, steam and unreacted Methane. Ø Ø Ø Mixture is cooled to 750°. More steam is added, creating more H 2, and converting the CO to CO 2. Remaining impurities are then extracted. 16

Sequestering the Impurities: How to Keep it Clean Ø Ø Disposing of CO 2 by burying it deep in exhausted aquifers or in gas or oil reservoirs, or by piping it deep in the ocean. Sequestering adds $1. 80/GJ to the cost of Hydrogen Fuel from natural gas. Ø Ø Will this happen now? Is this the price we pay for a clean future? 17

Why Natural Gas?

. . . When Natural Gas n n Is so expensive; Is so unpredictable in price and availability; Is a cleaner fuel as it is used today, than when it is reformed into Hydrogen; and Is a Fossil Fuel, and not a renewable resource. 19

. . . Because Natural Gas Is Ø Ø Ø Ø Widely available; The cheapest readily available source of H 2; The most efficient; Easy to distribute; One of the cleanest fossil fuels around; and A great transition to a Pure Hydrogen Economy. And most importantly. . . 20

TO END THE CHICKEN AND EGG DILEMMA!

Barriers to the Hydrogen Economy Ø Ø Ø Costs Safety/ Consumer Skepticism Abundance of cheap fossil fuels 22

How Do We Get There? Ø Reduce Costs: ØBulk Purchases by State, Federal, Military, Universities, and Hospitals. ØGovernment Subsidies, Incentives, and Grants. Ø Ø Ø Improve Funding. Public Relations Campaign addressing Cost and Safety Issues. Keep using fossil fuels like we are. 23

Where Do We Stand Today?

Projected Cost of Stationary Fuel Cells 25

Hydrogen is not prohibitively expensive to get started today. Hydrogen Production Method Cost ($/GJ) Central Production Natural Gas 5 -8 Coal 9 -12 Electrolysis of Water 20 Gasified Biomass 8 -13 Distributed Production Onsite Natural Gas 8 -15 Electrolysis (hydroelectric) 10 -20 Electrolysis (wind) 20 -40 Electrolysis (solar/thermal) 40 -60 Electrolysis (photovoltaic) 50 -100 Delivery of hydrogen $/GJ 100 mi 500 mi C-H 2 15 -20 60 -70 L-H 2 1 -2 6 -7 26 With Gas priced at $3/MBTU

Government Funding 27

Government Subsidies, Incentives, and Grants Ø Database of State Incentives for Renewable Energy Ø 2003 Climate Change Fuel Cell Buy. Down Program. ØQualifying Facility ØIllinois will pay for up to $3, 000 or half of a HFC. 28

Getting the Word Out Ø Department of Energy Papers Ø “A National Vision of America’s Transition to a Hydrogen Economy – To 2030 and Beyond. ” Ø “National Hydrogen Energy Roadmap. ” Ø Ø Ø Bush’s State of the Union Address 1/28/03. Freedom. Car Future. Car. Congress Demonstrations sponsored by Do. D and Do. E. What do we need? Ø Hollywood, Press, Full Ad Campaign 29

Remember the Hindenburg 30

Public Must Trust Hydrogen Ø Ø Ad Campaign, Government Support, Codes and Standards, and Begin the Dialog. 31

Conclusion Ø Ø Ø Stationary Hydrogen Fuel Cells Using Natural Gas Today Supported by Government and Industry Pure Hydrogen Economy, Independent of Fossil Fuels Tomorrow. 32

To Sum Up: Have You Ever Wondered What it’s Like to Breath Fresh Air?