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Steve ChalkSteve ChalkProgram ManagerProgram Manager

Hydrogen, Fuel Cells and Hydrogen, Fuel Cells and Infrastructure Infrastructure

TechnologiesTechnologies

Electrolysis Production of

Hydrogen from Wind and

Hydropower

September 9, September 9, 20032003

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Hydrogen Infrastructure and Fuel Cell Technologies put on an Accelerated

Schedule

President Bush commits a total $1.7 billion over first 5 years: $1.2 billion for hydrogen and fuel

cells RD&D ($720 million in new money)

$0.5 billion for hybrid and vehicle technologies RD&D

Accelerated, parallel track enables industry commercialization decision by 2015.Fuel Cell Vehicles in the Showroom

and Hydrogen at Fueling Stations by 2020

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0

2

4

6

8

10

12

14

16

18

20

22

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Source: Transportation Energy Data Book: Edition 22, September 2002,and EIA Annual Energy Outlook 2003, January 2003

Mill

ion

s o

f B

a rre

ls p

er D

ay

Domestic ProductionDomestic

Production

Actual Projected

Light Trucks

Year

MarineMarine

RailOff-roadOff-road

Cars

Transportation Drives U.S. Energy Dependence

US Oil Use for Transportation

Pa

ss

en

ge

r V

eh

icle

s

• Transportation accounts for 2/3 of the 20 million barrels of oil our nation uses each day.

• The U.S. imports 55% of its oil, expected to grow to 68% by 2025 under the status quo.

• Nearly all of our cars and trucks currently run on either gasoline or diesel fuel.

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Why Hydrogen? It’s abundant, clean, efficient, and can be derived from diverse

domestic resources.

.

Distributed Generation

TransportationBiomass

HydroWindSolar

Geothermal

Coal

Nuclear

Natural Gas

Oil

Wit

h C

arb

on

Seq

ues

trat

ion

HIGH EFFICIENCY & RELIABILITY

ZERO/NEAR ZEROEMISSIONS

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Timeline for Hydrogen Economy

Transitional Phases

I. Technology Developm ent Phase

II. Initial Market Penetration Phase

III. Infrastructure Investm ent Phase

IV. Fully Developed Market and Infrastructure Phase

Strong Governm ent R&D Role

Strong Industry Com m ercialization Role

200

0

2020

201

0

2030

204

0

PhaseI

PhaseII

PhaseIII

PhaseIV

RD&D I

Transition to th e M arketplace

Com m ercialization Decision

II

E xpansio n of M arkets and In frastructure III

Realizatio n of the Hydrog en Eco nom y IV

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(Millions $) FY 03 Approp. FY04 Request House Mark Senate Mark

Hydrogen (EERE)39.5 88.0 68.0 88.0

Hydrogen (NE) 2.0 4.0 2.5 8.0

Total 41.5 92.0 70.5 96.0

Energy and Water Development Appropriations

(Millions $) FY 03 Approp. FY04 Request House Mark Senate Mark

Fuel Cells (EERE) 57.5 77.5 56.6 68.5

FreedomCAR (EERE)

85.6 91.1 93.3 89.9

Hydrogen (FE) 0.0 11.5 5.0 5.0

Total 143.1 180.1 154.9 163.4

Status of President’s FY04 Budget Request

Interior Appropriations

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Hydrogen Production from Wind and Hydropower

Wind/Hydropower Role:• Large domestic resources• Low carbon electricity sources• Low cost of electricity for electrolysis• Electricity grid infrastructure

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Wind/Hydropower Electrolysis Activities

• Wind/hydropower electrolysis analysis

• 2004 advanced electrolysis new starts- Giner Electrochemical

System- Proton Energy Systems- Teledyne Energy Systems

• Production and delivery solicitation– Large scale electrolysis– Renewable integration

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Meeting Goal

Begin developing specific vision and priorities for renewable hydrogen production and help DOE further define its role in this area.