Case study Switched on: why nations are exploring hydrogen s potential as an alternative fuel Growing global demand for fossil fuels is unsustainable, given oil, gas and coal supplies will eventually run out. Faced with a need to find alternative energy, governments and big businesses are investing huge amounts to harness the power of long-lasting, eco-friendly fuels. Many consider hydrogen to be a viable option for helping power tomorrow s world. 48 Volume 5 Issue 1
Author Rob Morris Business journalist Wardour, UK 49
Case study The consensus is that, if they become widely available, hydrogen cars should help reduce the carbon footprint in major cities. A world that no longer runs on fossil fuels may sound fanciful to many in an age when power and technology drives almost everything. But with oil, gas and coal reserves diminishing as global energy consumption continues to rise, something has to give. Non-renewable fuels power appliances and machinery from gas cookers, home heating systems and cars to manufacturing plants, aeroplanes and tankers. In short, the global population relies heavily on energy sources that will not last forever. But what will happen when coalfields are exhausted and the oil and gas wells run dry? By that time, it is widely believed that governments and businesses will have found a way to harness water, wind and solar energy. They should also be using alternative fuels such as hydrogen a flammable gas that can be produced from natural sources, including water to help power the world. Alternative energy: the rise of hydrogen Hydrogen is proving particularly popular with corporations that are looking to exploit and commercialize an untapped resource. Many industries have invested huge amounts in researching this alternative energy, which has already been successfully demonstrated in forklift trucks, buses and cars. The latter holds the greatest potential in terms of market size and environmental impact. Automotive companies are developing fuel cell cars that combine hydrogen stored in an onboard tank with oxygen from the air to generate electricity. The electricity then powers the electric motor, which turns the car s wheels. Industry experts say the new vehicles will not produce any emissions locally and none at all when produced from renewable sources, making them more environmentally friendly than standard petrol or diesel cars. Instead of emitting fumes, the exhaust pipes on hydrogen cars 50 Volume 5 Issue 1
Switched on: why nations are exploring hydrogen s potential as an alternative fuel Hyundai aims to build 1,000 fuel cell vehicles by 2015, eventually increasing production to 10,000 vehicles per year. will release only small amounts of water vapor into the atmosphere. There might be some 500 fuel cell cars worldwide on the road today the totality of individual and small-scale manufacturing of recent years. The first serial-produced fuel cell cars are expected to hit the road in the near future, with Hyundai revealing that it will start building hydrogen-powered models and offering them on lease in early 2013. The Financial Times reported that the South Korean carmaker has signed contracts to offer a fuel cell version of its ix35 sport utility vehicle on lease in cities in Denmark and Sweden. It also aims to build 1,000 fuel cell vehicles by 2015, eventually increasing production to 10,000 vehicles per year. Hyundai s fuel cell vehicle will be able to accelerate from 0 to 62mph in 12.5 seconds and reach a top speed of 100mph. The company s executives also say it will take just minutes to refuel the vehicle, which will have a range of 365 miles. Honda, Daimler and Toyota are also planning to start making hydrogen cars in the next few years. In the meantime, engineering and industrial gases company, The Linde Group, is helping build more refueling stations across Germany and other European countries for fuel cell cars. In June, The Linde Group was one of five companies that signed a joint letter of intent with the German Ministry of Transport to expand the number of hydrogen refueling stations in Germany from 15 to 50. The aim is to create enough stations to accommodate the 5,000 fuel cell cars that are expected on German roads by 2015. The Linde Group s role in the 40m project is to work alongside Daimler to build 20 refueling stations, which will cost about 1m each to construct. Aside from this, The Linde Group will be working on other hydrogen projects in the coming years. At the UK s first public hydrogen fueling station, in Swindon, work will take place in the next two-and-a-half years to develop the existing facility into an environmentally friendly station that fuels vehicles, using green hydrogen made from renewable solar energy. When the expansion is completed, technicians will be able to generate the electricity needed to break water into hydrogen and oxygen by using solar-powered electrolysis. The stored hydrogen will then be used to refuel cars, forklift trucks and vans. Other projects that The Linde Group is involved in include a public transport initiative in the US and a new refueling station at Berlin Brandenburg Airport. Markus Bachmeier, Head of Hydrogen Solutions and Advanced Customer Applications at The Linde Group, explains that the company has installed a hydrogen fueling station at AC Transit s municipal bus operating division in Emeryville, California, which powers 12 fuel cell buses and up to 20 passenger cars a day. The facility is one of two hydrogen stations that The Linde Group will have built for AC Transit, which operates buses in 13 cities, such as Oakland and Berkley, and provides trans-bay services in San Francisco. A second facility being built in Oakland is expected to start operating in 2013. Bachmeier says replacing buses that run on diesel with hydrogen-powered vehicles eliminates vehicle tailpipe emissions. His assertion is backed by the California Air Resources Board, which estimates that fuel cell buses that use hydrogen reformed from methane will reduce carbon dioxide emissions by 2.7 pounds per mile. The reduction amounts to 6.3 pounds per mile when hydrogen produced from solar, wind or renewable energy is used to run the buses. All buses within AC Transit s network are expected to travel 36,000 miles per year, 51
Case study Fuel cell vehicles have the capacity to run longer and go further than other non-petrol or diesel motors, such as electric cars. respectively reducing carbon emissions by 44 or 103 metric tons annually, when using methane or renewable energy as the source for producing hydrogen. In Berlin, work is under way to develop an airport that can initially handle up to 20 million passengers per year. As part of the project, The Linde Group is building a hydrogen refueling station to power vehicles that operate in the airport and around the airfield. The station will eventually be opened up to drivers who want to refuel their hydrogen cars before driving in and around Berlin. Here, The Linde Group cooperates with TOTAL and wind energy company Enertrag to offer CO2-free hydrogen produced in a nearby wind park. The pros and cons of mass-producing hydrogen vehicles Sustainability and green issues are key concerns for many governments and corporations, so a car that produces zero emissions is bound to prove popular. The consensus is that, if they become widely available, hydrogen cars should help reduce the carbon footprint in major cities. In fact, international studies reveal that hydrogen cars will have to play a role in order to comply with long-term emission reduction targets, while allowing consumers to stick to existing driving patterns with regard to personal mobility (i.e., long range, short filling times). Bachmeier says that fuel cell vehicles have the capacity to go further and refuel faster than other alternative technologies, such as battery electric cars. He estimates that affordable battery electric cars will cover between 50km and 150km, before a recharge is needed. It can take up to eight hours to replenish the car s battery, substantially longer than the three minutes needed to refuel a hydrogen car. Bachmeier is convinced that both technologies have their own advantages and preferred usage areas, and both will clearly be needed to achieve emission reduction targets: battery electric cars for inner-city, short-distance journeys; fuel-cell-electric cars for long-distance, intra-city travel. Furthermore, battery electric and fuel-cell electric are complementary technologies as they share many similar electrical drivetrain components. Hence, advancements and investments in one technology benefit the other and vice versa. On the downside, a dearth of refueling stations is one of the major stumbling blocks to a wider market acceptance for fuel cell cars. Bachmeier says there are about 215 facilities around the world, with plans to reach several hundred in Europe within the next few years a tiny number, given that the UK alone had about 9,000 petrol stations in 2011. The reality is that ramping up production of fuel cell cars and increasing their supply infrastructure have to go hand in hand. Last year, automotive company Daimler completed the first circumnavigation of the world using hydrogen vehicles. Setting off from Germany in January 2011, three Mercedes-Benz B-Class F-Cell cars drove 30,000km through 14 countries across 4 continents. The journey, which included stages in China and Australia, was completed in June that year when the cars crossed the finish line outside the Mercedes-Benz Museum in Stuttgart. The Linde Group not only provided the hydrogen but also a mobile, air-transportable hydrogen-refueling vehicle that could be replenished at various stations throughout the journey. Bachmeier says completing the tour was a major achievement, given the logistical challenges in remote areas such as Kazakhstan or the Australian Outback. The limited number of refueling stations throughout the tour is indicative of a fledgling industry that will take years to develop. For fuel cell cars to take off, a substantial increase in the number of hydrogen facilities is required. Cost is also an issue. Speaking to The Financial Times in September 2012, a senior Toyota executive said it was unlikely that hydrogen cars would be commercially viable for the automotive companies building them, anytime soon. In 2011, 52 Volume 5 Issue 1
Switched on: why nations are exploring hydrogen s potential as an alternative fuel Toyota said that fuel cell cars would cost less than 10m (US$128,727) each to build within four years. But the company did not indicate how much cheaper producing them would be. And what about the hydrogen? At current hydrogen refueling stations, the gas is sold at around 9.50 per kilogram, tax free, resulting in approximately 9.50 per 100km depending on your driving style, of course. If refueling gets more expensive, e.g., due to taxation, the appeal of driving an expensive eco-friendly car could seriously wane. On the other hand, costs per kilogram will benefit from economies of scale, as soon as larger numbers of cars utilize the hydrogen refueling stations. Looking beyond the potential obstacles, it is clear that carmakers and hydrogen suppliers such as The Linde Group are determined to utilize the power of an alternative fuel and with good reason. Not only is hydrogen eco-friendly, but it is also a sustainable source of fuel that can be created using renewable energy. With supplies of fossil fuel diminishing, the need to find alternative energy has never been greater. Last year, automotive company Daimler completed the first circumnavigation of the world using hydrogen vehicles. 53