Economica Del Hidrogeno

8/12/2019 Economica Del Hidrogeno

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THE HYDROGEN ECONOMY

A non- techn ica l rev iew

UNITEDN

ATIONS

ENVIRONM

ENTP

ROGRAM

M

E


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Copyright United Nations Environment Programme, 2006

This publication may be reproduced in whole or in part and in any form for

educational or non-profit purposes without special permission from the copyright

holder, provided acknowledgement of the source is made. U NEP would

appreciate receiving a copy of any publication that uses this publication as a

source.


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THE HYDROG

A non- tech n ica l re


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Contents

Ac knowledgements

Introduction

The Hydrogen E conomy and Sustainable De ve lo

What is H ydrogen?

T he Environmental Implications of H ydrogen

A G lobal H ydrogen Energy System

Technical and C ost C hallenges

H ydrogen Production, D istribution and Storage

Fuel Cells for M obile and Stationary Uses

Carbon Capture and Storage

The Transition to the Hydrogen Economy

Investment in H ydrogen Infrastructure

G overnment Support

Long-Term Projections of H ydrogen Use

Hydrogen and the Developing World

Relevance of H ydrogen to D eveloping Economies

Implications for National Energy Policy-mak ing

Role of International and Non-Governmental O rganisati

Key Messages

Annex A: Ke y Players in Hydrogen Re se arc h

and Development

National and Regional Programmes

Private Industry

The Hydrogen Economy


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Acknowledgements

T his report was commissioned by the D ivision of Technology, I ndustry and

Economics of the Uni ted Nations Environment Programme. M ark Radka an

D aniel Puig managed the project, with scientifi c support from Jorge Rogat

Trevor M organ of M enecon Consulting was the principal author.

The report benefited from comments and suggestions from G ert Jan Kramer o

Shell H ydrogen, H ans Larsen of Ris National Laboratory ( D enmark) , Jianxin M a o

Tongji University ( China) , Stefan M etz of Linde AG , Wolfgang Scheunemann o

D okeo G mbH ( G ermany) , H anns-Joachim Neef of G ermany and T horsteinn

Sigfusson of I celand ( co-chairs of the Implementati on and Lia ison Committeeo

the International Partnership for the Hydrogen Economy) and Giorgio Simbolott

of the I nternational Energy Agency. Their help is gratefully acknowledged.


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Introduction

T here is a growing belief among poli cy-makers, environm

energy analysts and industry leaders that hydrogen is the f

will revolutioni se the way we produce and use energy. I n

reliance on finite fossil energy is clearly unsustainable, both

economi cally. Soaring prices of oi l in recent years have dr

energy-security risks of relying on oil and gas, and hav

perception that the world is starting to run out of cheap fue

to move to more secure and cleaner energy technologies

held to be the most promising of a number of such techno

deployed on a large scale in the foreseeable future. Repla

hydrogen in final energy uses could bring major environmen

as technical, environmental and cost challenges in th

produced, transported, stored and used are overcome.

UNEP is following developments in hydrogen-energy te

interest, as it holds out the prospect of providing the ba

energy future one in which the environmental effects of en

use are greatly reduced or eliminated. I ndeed, the hydroge

likely never become a reality unless it brings major environ

there are widespread misunderstandings about the role hy

the global energy system, how quick ly it could be introduce

large scale and its impact on the environment. U NEP believ

to keep countries, especially those in the developing world

true potential, costs and benefits of hydrogen, and

misconceptions.

In keeping with its mi ssion to encourage and facili ta

environmentally-friendly technologies, U NEP has decid



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government support, and describes long-term projections of hydrogen use. T h

report then considers the relevance of hydrogen for developing economies and

what it could mean for national policy-making, and the role of international an

non-governmental organisations. A concluding section summarises the ke

messages contained in this report.

Annex A describes the activities of k ey players in hydrogen energy research and

development. Annex B provides references to selected publications on hydrogen

and the addresses of relevant websites for readers looking to fi nd out more abou

hydrogen developments and programmes.


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The Hydrogen Economy and Susta

Development

In terest in hydr ogen as a way of deli veri ng energy se

growi ng in recent year s in response to heighten in g c

envi ronmenta l impact of energy use and wor r ies ab

fossi l-fuel suppli es. Hydr ogen, as an ener gy car r ier, c

replace all forms of final energy in use today an d pr

ser vices to al l sectors of the economy. The fundamenhydrogen is i ts poten tial envi ronmenta l advantages

At the poin t of use, hydr ogen can be bur ned i n such

produ ce no harmfu l emission s. If hydr ogen is produ

emi ttin g any car bon d ioxi de or other clim ate-destab

gases, i t cou ld form the basis of a tr u ly susta inabl e e

hydrogen economy.

What is Hydrogen?

H ydrogen is the simplest, lightest and most abundant elem

making up 90% of all matter. I t is made up of just one elec

and is, therefore, the first element in the periodic table. I

state, hydrogen is odourless, tasteless, colourless and non-to

readily with oxygen, releasing considerable amounts of e

producing only water as exhaust:

2 H2 + 02 2 H20

When hydrogen burns in air, which is made up mostly of n



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partial oxidation. A major shortcoming of the processing of hydrocarbons is th

resulting emissions of carbon dioxide and airborne pollutants. M ost othe

production processes in use or under development involve the electrolysis o

water by electricity. T his method produces no emissions, but is typically mor

costly compared to hydrocarbon reforming or oxidation because it require

more energy and because electricity is, in most cases, more expensive than foss

fuels. Today, the commercial production of hydrogen worldwide amounts to

about 40 mi llion tonnes, corresponding to about 1% of the worlds primar

energy needs. T his output is primari ly used as a chemi cal feedstock in th

petrochemical, food, electronics and metallurgical processing industries.

H ydrogen holds the potenti al to provide energy services to all sectors of th

economy: transportation, buildings and industry. I t can complement or replac

network -based electricity the other main energy carrier i n final energy uses

H ydrogen can provide storage opti ons for intermittent renewables-base

electricity technologies such as solar and wind. And, used as an input to a device

known as a fuel cell, it can be converted back to electrical energy in an efficien

way in stationary or mobile applications. For this reason, hydrogen-powered fue

cells could eventually replace conventi onal oi l-based fuels in cars and trucks

H ydrogen may also be an attractive technology for remote communities whic

cannot economically be supplied with electricity via a grid. Because hydrogen

can be produced from a variety of energy sources fossil, nuclear or renewable

i t can reduce dependence on imports and improve energy security.

Box 1: Energy Sources and Carriers

Primary sources of energy such as coal, oil and natural gas store various forms of k i

occur in a natural state. T hey can be burned directly in final uses to provide an enerbuildings, or they can be transformed into secondary energy sources for final consu

allows energy to be transported or delivered in more convenient or useable form. Ele

secondary source of energy. Hydrogen is also a secondary source, as it must be pro

source. It can be converted to energy (heat) either through combustion or through an

generate heat and electricity. Secondary sources are also known as energy carriers.

The Hydrogen Econo


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Road transportation is an important and growing source o

and climate-destabi lising greenhouse gases. T here is cl

harmful impact on human health of exposure to pollutants

trucks. As a result, local air quality has become a major pol

countries. Air pollution in many major cities and towns in t

has reached unprecedented proporti ons. M ost rich, ind

have made substantial progress in reducing pollution cause

through improvements in fuel economy, fuel quality an

emission-control equipment in vehicles. But rising road traf

part of the improvements in emissions performance.

Because of increasing pollution from road traffic, road veh

focus of efforts to develop fuel cells. Replacing internal

fuelled by gasoline or diesel with hydrogen-powered

principle, eliminate pollution from road vehicles. Fuel cells

provide electrical-energy services in industrial processes an

direct use of petroleum products, natural gas and coal.

H ydrogen could also contribute to reducing or elimi nating

dioxide and other greenhouse gases. For this to happ

manufacturing hydrogen would have to be carbon-free or

intensive than current energy systems based on fossil f

achieved in one of three ways: through electrolysis usin

solely from nuclear power or renewable energy sourc

reforming of fossil fuels combined with new carbon c

technologies; or through thermochemical or biological te

renewable biomass.

D espite the potential local and global environmental ben

hydrogen, there are a number of uncertainties about

consequences of a large-scale shift towards a hydrogen econ

mainly the potential effects of significant amounts of hydr

into the atmosphere. T he widespread use of hydrogen woul

inevitable, but the effects are very uncertain because scienti

understanding of the hydrogen cycle. Any build-up of hydr

in the atmosphere could have several effects, the most se

be increased water vapour concentrations in the uppe



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and implement internationally agreed rules, regulations, codes and standard

covering the construction, maintenance and operation of hydrogen facilities and

equipment safely, along the entire fuel-supply chain. U niformity of safet

requirements and their strict enforcement will be essential to establishin

consumer confidence.

A Global Hydrogen Energy System

T he transition to a hydrogen-energy system would represent the ultimate step o

the path away from carbon-based fossil energy. T he worlds energy system ha

been becoming gradually less carbon-intensive as it has moved from coal to o

and then natural gas. T he technology exists today to produce, store, transport and

convert hydrogen to useable energy in end-use applications, such as fuel cells

Technologies to capture carbon dioxide and other gases released during th

process of producing hydrogen from fossil fuels and store them have also been

demonstrated. Almost every big car manufacturer plans to begin commercia

production of fuel-cell cars within a few years, and small fuel cells to supply powe

to remote communities are already comi ng onto the market. M ost of the major ocompanies have active hydrogen and carbon capture and storage programmes

We can imagine today what the hydrogen economy might look like (Box 3) .

M ajor technological and cost breakthroughs are needed before the hydroge

economy can become a reali ty. T he cost of supplying hydrogen energy usin

The Hydrogen Econo

Box 2: Hydrogen E xonerated as the C ause of the Hindenburg D

Televised images of the spectacular destruction of the Hindenburg airship affect peo

and their acceptance of the gas as a safe energy carrier. The Hindenburg burst into

reporters and newsreel cameras while landing in N ew Jersey, in the United States, o

of the hydrogen that fuelled the airship was blamed for the disaster, which effectively

1997 study by a retired National Aeronautics and Space Administration (NASA) engi

that hydrogen played no part in starting the Hindenburg fire. According to the study,

the airship, which contained the same component found in rocket fuel, was the prim

Hindenburg dock ed, an electrical discharge ignited its skin, and a fire raced over the

37 people who died, 35 perished from jumping or falling to the ground. O nly two of

these were caused by the burning coating and on-board diesel. T he hydrogen burne

from the people on board.


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and at an acceptable cost. T he Earths resources of oil, nat

certainly large enough to meet our energy needs for man

Improved electric batteries in cars and trucks or improved em

of technologies in use today could prove to be the preferr

pollution problems. Renewable energy sources or nuclear p

be a more cost-effective solution to the threat of global war

I f hydrogen does emerge as a competitive energy carrier

existing systems overnight because of the slow pace at whic

stock that makes up the global energy system is replaced. deployment of carbon capture and storage technology

element of the hydrogen economy for as long as fossil fue

main primary source of energy will be a mammoth undert

to a hydrogen economy would, therefore, be gradual, po

decades. T he construction of enti rely new supply infrastr


Box 3: A Vision of the Hydrogen Economy

What might a hydrogen economy look like? Jump forward in time perhaps 100 years, but pos

The world has made the transition to a hydrogen economy. A n efficient and competitive hydrog

storage and transport system has been built. Hydrogen has become widely accepted as a clea

sustainable form of energy. Emissions are a fraction of what they once were, even though the w

and economy are now much larger. C ities and towns are filled with highly efficient hydrogen-po

conveying people and goods, emitting only water vapour and driving along with only a gentle h

vehicles refuel at public stations where hydrogen supplies are received by pipeline from centrali

facilities. O thers fill their hydrogen tanks from home or at their workplace from either small-scale

reformers or renewable energy powered electrolysis plants, some using photovoltaics.

In this future world, home owners have the choice of buying electricity from the grid or supplyin

needs with a dedicated fuel cell that provides electricity and thermal energy for heating and coo

uses hydrogen produced by a small reformer, using natural gas supplied through the local pipe

network. Electricity is produced in centralised power plants, using gasified coal or natural gas. T

is captured and piped to a storage site or converted to useful and safe solid products. Some ofproduced is burnt in highly efficient gas turbines to provide electricity, and some is piped to cus

vehicles and distributed generation plants. R enewable energy sources also contribute to both p

production. Hydrogen is used to store the intermittent energy generated from wind turbines and

Source: Adapted from Commonwealth Governm


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Technical and Cost Challenges

Formidable techni cal and cost chall enges wi ll need to be over come for

hydrogen to be able to compete wi th, and eventual ly replace, exi sting

energy technologies. The biggest advances ar e needed i n

tr an spor tati on and storage of the fuel, as well as in fu el cell s in

vehicles. And technologies that capture the car bon d ioxide emi tted

when hydrogen is produced from fossil fuels and store it un der groun dneed to be adequately demonstr ated on a lar ge scal e. Lar ge cost

reduction s ar e needed especia ll y in the man ufactu re of fuel cells

for hydrogen to become competiti ve wi th exi sting fossil fuel- and

renewabl es-based technologies. But recent advances in technology an d

a sur ge in publi c and pr iva te spend in g on resear ch, development and

demonstrati on suggest tha t the requi site techni cal and cost

breakthroughs mi ght be achievable wi thin a genera tion .

Hydrogen Production, Distribution and Storage

A critical hurdle on the road to the hydrogen economy is the efficient and clean

production of hydrogen. As an energy carrier, hydrogen has to be manufacture

from a primary energy source. T here are many industrial methods currentl

available for the production of hydrogen, but all of them are expensive comparedwith the cost of supplying the same amount of energy with conventional form

of energy ( several times more expensive compared with fossil fuels) . T h

distribution and storage systems that would be needed to supply hydrogen on

large scale are also much more expensive because of the low volumetric energ

density of the fuel. Bri nging production, distribution and storage costs dow


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Natural gas is usually the cheapest feedstock for producin

reforming. Even so, producing hydrogen from natural gas

three times more than producing gasoline from crude oi l n

of capturing and storing the carbon dioxide produced in the

of countries are conducting research into how to improve th

reforming of gas and other fossil fuels, and how to lower pr

Par t i a l oxid a t i onof methane is also used to produce hy

involves reacting the methane with oxygen to produce h

monoxide, which is then reacted with water to produce

carbon dioxide. O verall conversion efficiency is generally

reforming, which is why the latter technique dominates co

today and is expected to continue to do so.

Gasi f ica t ion of coa lis the oldest technique for mak ing

used in some parts of the world. I t was used to produce the

to cities in Europe, Australia and elsewhere before natural g

T he coal is heated until it turns into a gaseous state, and

steam in the presence of a catalyst to produce a mixture

60% ) , carbon monoxide, carbon dioxide and oxides of sulph

synthesis gas may then be steam-reformed to extract the

burned to generate electricity. Coal gasification for electrici

more thermally efficient than conventional coal-fired pow

polluting. Research into coal gasification is focused on handsulphur and nitrogen oxides major pollutants and carb

without combustion of the synthesis gas in the plant.

H ydrogen can also be produced from b iomass, such as cro

dung, using pyrolysis and gasification ( thermochemical)

processes produce a carbon-rich synthesis gas that ca

hydrogen in the same way as natural gas or coal-based

advantage of biomass over fossil fuels is that it producescarbon dioxide, since the carbon released into the atmosp

absorbed by the plants through photosynthesis. But w

remote locations where biomass supplies are ample and c

hydrogen production costs are generally much higher than

biological routes to producing hydrogen from biomass inv



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solar and biomass, electrolysis would produce carbon-free hydrogen. But larg

reductions in the cost of renewables-based electricity and nuclear power are

needed to enable hydrogen produced by electrolysis to compete with

conventional sources of energy on a large scale.

T here is some scope for reducing the cost of producing hydrogen. In 2005, th

US Department of Energy set a new production-cost target of $23 per gallon o

gasoline equivalent ( in 2005 prices) by 2015, regardless of the way the hydroge

is produced. Achieving the target would require a halving of the current cost

Steam reformi ng of natural gas or some other fossil-fuel feedstock is likely to

remain the cheapest way of producing hydrogen for the foreseeable future

except where electricity is available at very low cost.

H owever hydrogen is produced, i ts widespread use will require large-scal

infrastructure to transport, distribute, store and dispense it as a fuel for vehicles o

for stationary uses. Because of its low volumetric energy density, hydrogen must bcompressed and stored as a gas in a pressurised container or chilled and stored i

a cryogenic liquid hydrogen tank for convenience. Both techniques have bee

demonstrated and are in commercial use today, but they use significant amount

of energy and the tanks are expensive to build and operate. T he potential fo

storing hydrogen safely and efficiently in a solid state is being investigated.

Transportation and distribution are faced with similar problems. Compressed

hydrogen can be transported by pipeline, but the energy-intensive nature of thitechnique means that i t is only economi c over short di stances. T here are som

small hydrogen-pipeline systems in operation today, mostly in the United State

Box 4: Ce ntralised versus Loca lised Hydrogen Production

Hydrogen can be produced in two ways: in large-scale centralised plants for bulk su

facilities using local energy inputs. T he choice of production has important implicatio

needs. C entralised production would benefit from economies of scale. T his would fa

technologies, including steam reforming and coal gasification. The main drawback is

infrastructure to transport and distribute hydrogen, possibly over large distances. It

existing gas pipelines to hydrogen, though compressors and valves might have to b

Alternatively, mixing in small volumes of hydrogen typically up to 15% by volume

the need for modifications to the gas distribution network, but separating the two ga


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and Europe, but none exceed 200 kilometres in length. O ve

is cheaper to transport hydrogen by road, rail or barge in

then vaporised at the point of use. H ow successful research

in bringing down the cost of transportation and storage me

the viabili ty of hydrogen as an energy carrier and whether ce

production prevails ( Box 4) .

Fuel Cells for Mobile and Stationary Uses

The fuel cell has a long history. I t was invented by an Englis

in 1839. T he term fuel cell was coined later in 1889 by Ludw

Langer, who attempted to build the first practical device us

coal gas. Fuel cells were used in the US and Soviet space prog

and 1970s. Although hydrogen can be burned in conventio

boilers, turbines and internal combustion engines, fuel cells

technology to exploi t hydrogen because of their high efficie

A fuel cell is a device that uses a hydrogen-rich fuel and

electrical energy by means of an electrochemical reaction

two electrodes an anode ( negative) and a cathode ( po

around an electrolyte. H ydrogen is fed to the anode and ox

T he electrolyte causes the proton and electron in each

separate and take different paths to the cathode. T he elect

external circuit, creating an electrical charge. The protothrough the electrolyte to the cathode, where it reunites w

reacts with the oxygen to produce water and heat ( Figure

Figure 1: Fuel Cell C onfiguration


hydrogen fuel excess


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Because there is no combustion, fuel cells give off no emissions other than wate

vapour for as long as the hydrogen is pure. Fuel cells are quiet and reliable as

there are no moving parts, and can be small. T hese attributes make fuel cells

highly promising technology, especially for automoti ve vehicles. T hey can also b

used in stationary applications, to provide electricity or heat for bui ldings.

A number of prototype fuel-cell cars, buses and trucks have been or are bein

demonstrated in various places around the world: the most recent models worwell and prove popular with end users. M ost use the proton exchange o

polymer electrolyte membrane (PEM ) technology. PEM fuel cells operate a

relatively low temperatures of around 80 C, which allows a rapid start-up tim

and causes less wear on system components. T hey have a higher power-to

weight ratio than other types of fuel cell. H owever, they require a noble meta

catalyst, which adds to the cost. O ther technologies under development includ

the solid oxide fuel cell ( SO FC) , which uses a solid, non-porous cerami

compound as the electrolyte, and operates at high temperatures; and thealkaline fuel cell, which uses a potassium hydroxide solution as the electrolyt

together wi th non-precious metals as the catalysts at the anode and cathode

operating at low to medium temperatures.

Several leading car manufacturers are working on demonstration fuel-cell cars

some of which can travel up to about 500 k ilometres before they need refuelling

In June 2005, the American H onda M otor Company became the first automotiv

manufacturer to lease a fuel-cell vehicle to an individual customerD aimlerChrysler has a fleet of around 100 small fuel-cell vehicles in operation i

several countries, and aims to begin commercial production in 2012. BM W plan

a production run of its new hydrogen-powered car in the hundreds by 2010, with

sales aimed at fleet operators and individuals in Europe and the United States

T he hydrogen fuels both an internal combustion engine for motive power and

separate fuel cell to supply electrical power. Ford, G eneral M otors and Toyot

also have major fuel cell development programmes. M ost of the models currentl

being developed are fuelled directly with hydrogen, without on-board reformi nof gasoline or methanol. T he latter approach was originally the focus of fuel-ce

vehicle development as car manufacturers believed that it would be easier to

make use of the existing fuel-distribution infrastructure. Technical and

environmental problems have led most of them to abandon on-board reforming


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production cost of a saloon car ( sedan) fitted wi th a fuel-c

to be as much as $1 mi llion, though car makers and fuel-c

reluctant to reveal the true cost for commercial reasons.

closer to $2 million. At present, the most competitive fuel

times more per kW of engine power than a standard gas

combustion engine, though fuel efficiency is twice as high.

Technical challenges also need to be addressed. T here is a durabili ty and dependability of fuel cells. C urrently, fuel cel

that operate at high temperatures are prone to break

relatively short operating lives. M ore important, there is

practical system for on board storage of hydrogen. T his is

challenge facing developers of fuel-cell vehicles the conse

very low energy density at atmospheric temperature and

enough fuel to travel 400 ki lometres, hydrogen would need

extremely high pressures to fi t into a standard-size car fuel possible to compress the gas to 700 bar. But even at that p

to be 4.6 times larger than a normal gasoline tank to contain

as far as with gasoli ne. M ore research is needed to find affo

are strong enough to wi thstand the pressure and resist the i

yet light enough to carry in a normal car. Li quid storage fo

practical problems, because large amounts of energy are n

hydrogen gas and maintain i t at a temperature of mi nus 2

storage method currently being investigated is to store themetal hydrides alloys created through chemical process

hydrogen could be released as needed. But such a syste

vehicle fuel efficiency.

T here have been major advances in fuel-cell technology ov

so, and this gives hope that fuel cells may one day be a

conventional vehicle technology on performance and co

require yet more research and development. Bring


Box 5: C ompeting Options in the Transport Sec tor

Hydrogen as a transport fuel is just one of several options for enhancing energy security and re

C O 2 and noxious gases In practice hydrogen might exist alongside other fuels creating a syst


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commercial production will undoubtedly lower unit costs. I n fact, car maker

are confi dent of achieving large cost reductions in just a few years. Toyota aim

to cut the cost of fuel-cell cars to $50,000 by 2015. G eneral M otors aims to hav

a car in full commercial production by 2010 with a fuel cell costing no mor

than $5000. T he US Department of Energys Fuel Cell Program has a goal o

lowering the cost of stationary fuel cells by a factor of ten to around $400 pe

kW or less. T his would be close to the current cost of a combined-cycle gas

turbine power plant.

Carbon Capture and Storage

T he prospects for the hydrogen economy becoming a reali ty in the foreseeabl

future hi nge on advances in carbon capture and storage (CCS) technology, an

its integration into hydrogen production based on fossil fuels. T his is a necessar

but not a sufficient, condition. Success in deploying CC S would also pave the wa

for environmentally acceptable production of electricity using fossil fuelshydrogen would still have to compete against electricity in final energy uses

including transport.

T here are three distinct steps involved in CCS associated with hydroge

production:

Capturing CO 2 from the flue-gas streams emitted during the productio

process ( pre-combustion capture) .

Transporting the captured CO 2 by pipeline or in tankers.

Storing CO 2 underground in deep saline aquifers, depleted oil and ga

reservoirs or unmineable coal seams.

CO 2 capture and transportation has been carried out for decades, albeit generall

on a small scale and not with the purpose of ultimately stori ng it. T here is a neeto improve these technologies for them to be widely deployed on a large scale in

association with hydrogen production, and to lower the cost. At present, mos

capture research and development is focused on post-combustion capture from

burning fossil fuels in power plants. M uch more work also needs to be done o

carbon storage to demonstrate its viabili ty and reduce the cost ( Box 6) .


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D eep saline aquifers, depleted oil and gas reservoirs and un

are the most promising options for underground CO 2 stor

saline aquifers the single largest potential storage opti

enough to store decades-worth of global CO 2 emission

storing the gas at the bottom of oceans, but the prospects a

of the unk nown environmental effects. Transforming CO 2 in

it underground is still at a conceptual stage. All three storagdemonstrated on a large scale. A particular concern is whet

back into the atmosphere.

T he future cost of CCS will depend on which technologie

are applied, how far costs fall as a result of research and deve

uptake, and fuel prices. Capturing CO 2 from plants which c

and hydrogen might be more economical than stand-alone

production with CO 2 capture. Total CCS costs can be brok etransportation and storage:

Current estimates for large-scale capture systems are o

per tonne of CO 2 ( IEA, 2004b) . Costs are expected to f

technology is developed and deployed on a large scale

Box 6: Current Carbon Capture and Storage Demonstration Projects

A number of C C S demonstration projects have been launched in recent years. In most capture

technologies are applied at power plants. Various small-scale pilot plants based on new capture

operation around the world. O nly one power plant demonstration project on a megatonne-scal

announced: the FutureGen project in the US . This is a coal-fired advanced power plant for cog

electricity and hydrogen. Its construction is planned to start in 2007. O ther demonstration proje

C anada, Europe, and Australia.

There are about a hundred ongoing and planned geologic storage projects. T he two largest are

C anada. The first is at the offshore Sleipner oil and gas field, where C O 2 is stored in deep saline

1 million tonnes of the gas has been stored each year since 1996. N o leakage has so far been

second involves the use of C O 2 to enhance oil recovery and its subsequent storage undergroun

oilfield in C anada. A bout 2 million tonnes per year have been stored since 2001. The results of

suggest that the gas can be stored permanently without leakage or other major problems. P ilot

that CO 2-enhanced coalbed methane and enhanced gas recovery may also be viable storage m


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At present, the total cost of CCS typically ranges from $50 to $100 per tonne o

CO 2. T his is equivalent to about 1530 US cents per gallon of gasoli ne, $204

per barrel of crude oil or 24 US cents per kWh roughly equal to the curren

cost of gas-fired power generation. By comparison, the average price of a perm

to emit one tonne of CO 2 under the European Emission Trading Scheme wa

around $28 in September 2005. CCS costs could drop significantly in future

perhaps by half within the next 25 years depending on funding for research an

development and the success of demonstration projects. I n thi s case, C CS woulbecome competitive in Europe, even without any increase in carbon values.

CCS will not ensure a sustainable energy future, as fossil fuel resources are finite

But, if integrated into the production of hydrogen and/or electricity, it coul

provide the basis for a more sustainable energy system over a transitional period

lasting at least several decades. T he planets fossil-fuel resources are far from

being depleted. Proven reserves of oil are equal to 40 years of curren

production; natural gas reserves are equal to 67 years, and coal reserves, 16years ( BP, 2005) . Exploration and improved production technologies tha

enhance recovery rates will undoubtedly increase these reserves. I n the very lon

term, as fossil resources are eventually depleted, mank ind wi ll have no choic

but to turn to renewable energy technologies if they have not becom

competitive with fossil fuels associated with CCS before then.



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The Transition to the Hydrogen Ec

The tra nsiti on to a hydrogen economy would requi r

dolla rs of investment in new in fra str uctu re to produ

store an d deli ver hydrogen to end u ser s, as well as to

fuel cells. The need to in stal l car bon captu re and sto

add to the cost. Conti nu ing gover nment suppor t for r

development, an d strong incenti ves to ki ck-star t in veessenti al . The tr an si ti on to the hydr ogen-ener gy syste

several decades, becau se of the slow tu rnover of the

capi tal that either makes or uses ener gy and the shee

capacity that would need to be bui lt.

Investment in Hydrogen Infrastructure

T he introduction of hydrogen on a large scale woul

transformation of the global energy-supply system. A v

produce, transport, store and deliver hydrogen, as well as

cells, would need to be built. And consumers would need t

fuel-cell vehicles and related equipment. T he installation o

the carbon emitted in the production process and store it

add to the cost, though this would be needed regardless ofcarri er for as long as fossil fuels remain the primary sou

hydrogen and related infrastructure would be needed not ju

energy facili ties, but also to meet rising global energy needs

challenge and an opportuni ty to introduce new hydrogen-e


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enough centralised hydrogen plants to supply the fuel needed to run all the cars

trucks and buses in use in the world today would require a staggering $8 tri llion

in investment not including the cost of carbon capture. T his sum is equal to

almost half the total cumulative investment in the entire energy sector that th

International Energy Agency estimates will be needed worldwide over the nex

quarter of a century ( IEA, 2005a).

Cost is the principal barrier to investment in hydrogen. No private firm will invesin a commercial hydrogen venture unless it believes that it will be able to

compete against existing fuels and turn a profit. H ydrogen is sti ll far from bein

competitive in most applications, but that could change with technologica

breakthroughs and government incentives or mandates. I f that is the case, th

opportunities for profitable development of hydrogen facilities would expan

over time. Initially, i nvestment may be limited to a few remote locations, wher

the costs of fuel distribution and electricity infrastructure are relatively high

where public concern about environmental sustainability is especially strong andwhere governments provide large incentives. As the market develops mas

production of supply equipment and fuel cells will bring economies of scale

advance the learning process and further lower costs.

But cost is not the only barrier to investment. As with any radically new

technology, hydrogen could face the classic chicken-and-egg conundrum: th

lack of a market in the first place deters investment, preventing the market from

developing. Put another way, why develop hydrogen cars when there is ndistribution network, and why develop a distribution network if there are no

hydrogen cars? H ydrogen use will not take off unti l critical market mass i

achieved. T he market needs to be large enough to demonstrate to potentia

users and fuel providers that hydrogen is a safe, reliable and cost-effectiv

alternative to conventional fuels. T he more fuel-cell vehicles there are on th

road, the more confidence other vehicle owners will have to switch fuels. And

the hydrogen refuelling network would have to be developed quickly: a lack o

refuelling stations would be a major impediment to persuading vehicle ownerto switch to hydrogen, even if there were a financial incentive to do so.

The sheer scale of investment in a hydrogen project, together with inheren

technical and financial risks, could also discourage private companies. G overnmen

intervention in the form of financial incentives and regulatory measures that ti lt th

The Tra



24/44

also conti nue to play a role in meeting energy needs in statio

and in buildings, and possibly in the transport sector as

compressed natural gas) . I t might also prove economic to

natural gas for distribution through the existing gas-pipeline

Figure 2: Linka ges betw een Hydroge n a nd the Res t of th


Wind, nuclear andsolar power

Biomass

Gasification

Steam reforming

Hydrogen production

Hydrogen storage

Buildings/industryVehicles Thermal powergeneration

Pri

Ele

Hy

Electrolysis

Coal

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Government Support

For the transition to the hydrogen economy to begin, there will most likely be a

need for decisive government action in two areas:

Research, development and demonstration of hydrogen technologies. T hi

effort could be vital to achieving the necessary technological breakthroughs

Incentives to encourage investment in hydrogen infrastructure and switchinto the fuel once technologies are deemed to be economic.

Because hydrogen is a long way from becoming competitive, the focus o

government action today in the field of hydrogen is in research and developmen

( R& D ) . Research i nto the use of hydrogen for energy purposes goes back man

decades, but the scale of publi c ( and private) funding for hydrogen and fuel ce

R& D and demonstration activi ties has increased enormously in the last few years

T his reflects significant technological advances that make it more li kely that thfuel will become a viable energy solution in the not too distant future, as well a

a growing urgency on the part of policy-makers to seek out sustainable energ

solutions that address environmental and energy-securi ty concerns. M an

governments now expect the transition to the hydrogen economy to begin

within the next two decades and are look ing to speed up the process, ofte

through collaborative international and joint private-public sector programmes

T he International Energy Agency ( I EA) estimates that current public hydrogeR& D spending worldwide amounts to about $1 billion per year ( IEA, 2004a)

T his spending might seem impressive, but is actually modest compared to th

sums governments are spending on other forms of energy R& D . I n membe

countries of the O rganization for Economic Cooperation and D evelopmen

( O ECD ) , hydrogen accounts for only about 15% of total energy R& D budgets

R& D spending on hydrogen is thought to exceed that on fossil fuels an

renewables, but is sti ll much lower than that on nuclear energy. I n 2001 th

latest year for which comprehensive data is available O ECD countri es spen$3.8 billion on nuclear energy, $700 mi llion on fossil fuels and $760 mi llion o

renewables ( I EA, 2004d) . Total O ECD R& D spending in that year was $8.

billi on. O fficial data may underestimate the importance of hydrogen R& D , a

some activities related to hydrogen are covered by fossil-fuel, nuclear energ

and end-use technology programmes.



26/44

production-related projects will account for 1.3 billion and

1.5 billion. O ther industrialised countries account for almo

some developing economies notably China, Brazil and I n

their own programmes. D etails of national and collab

programmes, as well as private-sector activities, can be foun

Source: Internation

D espite recent increases in public spending on hydrogen R

by that of private companies and organisations, including en

makers, chemical producers, power uti li ties and fuel-cell

total amount of private hydrogen-related R& D spending is

but it i s thought to total about $3-4 billi on per year. T his g

how optimi stic the private sector i s about the prospects for

much of this spending would probably not occurcommi tments from the public sector. M any private rese

partnership with publicly-funded programmes. A continued

commi tment to R& D will remain a key determinant of the

efforts to bring hydrogen energy into commercial use.

Hydrog en Foss il fuels Renew a bles Nuclea r O

C anada* 24 47 30 47

Japan 270 n.a. n.a. n.a.

G ermany* 34 14 74 154

France** 45 33 27 359

Italy 34 15 61 107

United K ingdom 3 5 20 n.a.

United States* 97 416 243 371 1

* Federal spend ing only. ** 2002 data.

Table 1: Public Research and Development Spending on Hydrogen an

Tec hnologies in the Largest OEC D C ountries, 2003 ($ m illion)

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27/44

taxes to encourage the development of the natural gas transmission and

distribution network.

G overnments will also need to work with fuel provi ders, equipmen

manufacturers, car makers and standard-setti ng bodi es to establi sh appropri at

standards and codes for designing, building, testing and ultimately marketing

hydrogen-related equipment. T hey will be crucial to ensuring safety and

lowering costs. I nternational harmonisation of standards would encouragtrade and avoid parallel development of incompatible equipment an

technology lock-in with di fferent standards, further dri ving down costs

G overnments will also be called upon to assist in promoti ng public awarenes

about the benefits of hydrogen, as well as the training and education o

industry personnel.

Long-Term Projections of Hydrogen UseI t is extremely hard to predict how soon the transition to hydrogen as an energ

carrier might begin and how long it might take, as it depends critically on

technology breakthroughs in a number of different areas. I t is impossible t

know when these might occur and the extent to whi ch they will lower costs an

enhance the competi tiveness of hydrogen vis--vis conventional forms of energy

As a result, all long-term projections of hydrogen use are based on assumption

about supply costs.

H owever successful current hydrogen R& D efforts are in bringing down cost

and improving performance, the transition process to a hydrogen econom

would undoubtedly be gradual, probably lasting several decades. T he planning

construction, operation and decommissioning of energy infrastructure stretch

over very long timeframes. C ars and trucks typically last a decade or two, bu

power stations, oil refineries and pipelines are built to last for decades. Retiring

them early would be very expensive. And the widespread deployment of carbon

capture and storage technology will be a mammoth undertaking. M obilising athe investment needed to completely overhaul the entire existing energy system

within a decade or two would simply not be practical, even if we were prepared

to pay the enormous cost of phasing out existing energy facili ties early. So, eve

if competitive hydrogen technologies were to emerge within the next 20 years,

would probably take most of the rest of this century to complete the transitio


28/44

Hy


29/44

Hydrogen and the Developing World

Developi ng econom ies have at least as mu ch to gai n from a move

towa rds the hydr ogen economy as industr ial i sed ones, since they

genera lly suffer more from ur ban poll uti on and their econom ies tend

to be mor e ener gy in tensive. Yet the tran si tion wi ll probably star t la ter

in most developi ng nati ons, as they ar e less able to afford to

par tici pate in R&D and the finan cial in centi ves needed to ki ck-star t

the process. The r ich wor ld mu st be ready to suppor t developi ng

econom ies in mak ing this happen, as an d when i t becomes a vi able

ener gy solu tion , to the benefit of the overal l pu sh for hydrogen.

Inter na tiona l and non -gover nmental organi sations have an

impor tan t role to play in assistin g coun tri es in creatin g a mar ket-

based policy envi ronment w ithi n which hydrogen and other emerging

ener gy technologies ar e able to compete agai nst existing, conventi ona

energy systems.

Relevance of Hydrogen to Developing Economies

Although most current hydrogen R& D is taking place in the industrialise

countries, developing economies have as much if not more to gain frommoving to the hydrogen economy. Their towns and cities generally suffer far mor

from the pollution caused by road traffic, coal-fired power stations and industria

boi lers. M any developing economies are more economi cally vulnerable t

fluctuations in international energy prices, as their economies are more energy

intensive. T he poorest countries lacking appreciable resources of fossil fuels ma



30/44

in the coming decades. M ost of that increase will take the fo

and coal unless there are breakthroughs in technolog

energy policy that allow renewables and/or nuclear energy t

role than currently appears likely. T he earlier these countrie

to hydrogen, the less their energy use would be tied to foss

the quicker they could achieve energy sustainability.

T he initial focus of efforts to establish hydrogen syseconomies will most likely be on transport and possibly o

remote, rural settings where the cost of connecting

electricity grid is highest. T he local environmental gains

conventional automotive fuels to hydrogen would generally

developing than in industrialised countries, where automo

vehicle-emission control technology is already much mo

polluti on is consequently less of a problem. In most citie

world, road traffic is the primary source of air pollution reached catastrophic proportions in many cases. D emonstra

cell vehicles and refuelling systems are already underw

developing world. T he joint G lobal Environment Facili

D evelopment Programme Fuel Cell Bus Programme, fo

commercial demonstrations in Beij ing, C airo, M exico City, N

and Shanghai. China has also set up its own fuel-cell bus de

with the aim of putti ng 200 buses into commercial operation

O lympic G ames in Beijing.

T he local availabil ity of biomass, solar energy and wi

provide the basis for the production of hydrogen in tho

fossil fuel resources are scarce. T his would preclude the

store carbon dioxide. Biomass, in particular, could be a

some countries. T he modular nature of fuel cells make

option for supplying power to remote, off-grid communit

provide a means of storing electrical energy generated fror wi nd energy.

Implications for National Energy Policy-making

What should the governments of developing economies

The earl ier developin g

economies begin the

tra nsition to hydrogen,

the less their ener gy use

woul d be ti ed to fossil -

energy systems.

Hy


31/44

As hydrogen technologies approach the stage at which they are ready to b

commercialised, policy-makers will need to pay more attention to the

implications for the transition to hydrogen of immediate decisions abou

investment in large-scale conventional energy infrastructure. As developin

economies grow richer, they will build thousands of power plants, as well as new

refineries and pipeline systems. T hese facili ties will be intended to last man

decades. Replacing them before the end of their economic lifetimes would be

very expensive. T here is a risk that a decision taken today to pursue conventional energy project will hinder the introduction of hydroge

technologies at some point in the future, by anchoring the energy system to

fossil fuels. T here is inevitably a trade-off between the benefits of providin

modern energy services today and developing a sustainable energy system in the

longer term. T here is an urgent need to make available those services to the tw

billion people in the developing world that do not yet have them. Waiting fo

affordable clean energy solutions to emerge is neither a practical nor a morally

acceptable option.

T he best way to ensure that energy investment is undertaken in the mos

economically efficient manner i s to establish a market-based policy framework

T he aim should be to establish competi tive markets and effective mechanisms fo

regulating natural monopolies, and to make sure that energy is priced correctly

In properly regulated, well-functioning markets, competition ensures that the fu

costs of supplying energy are reflected in the price the consumer pays. I n practice

this is often far from the case. I n many developing economies, energy is heavilsubsidised, leading to excessive consumption and waste, and exacerbating th

harmful effects of energy use on the environment. Subsidies can also place

heavy burden on government finances and undermine private and publi

investment in the energy sector, impeding the expansion of distribution network

and the development of more environmentally benign energy technologies.

G etting energy prices right does not stop there. T he environmental and healt

costs of harmful emissions from burning fossil fuels are rarely reflected in thprices of those fuels, especially coal, in most countries developing and

industrialised alik e. T here is no perfect way to do this, but one sensible approac

is for governments to tax the consumption of each form of energy according to

how much carbon dioxide and/or noxious gases it emits. At a minimum, the

dirti est fuels should be taxed more. I n that way, the external environmental cost



32/44

in rural communi ties that lack access to modern en

development plans could be modified to support the

link ages between hydrogen, renewable technologies and

supply electricity and other forms of commercial energy t

served by existing distribution network s. T his could be ju

barriers to the deployment of hydrogen and i ts long-term s

and economic benefits.

Role of International and Non-Governmental Organis

T he rich world will need to help poorer countries to switc

T he G 8 leaders attending the G leneagles summi t in July 200

it is in their interests to work together with developing eco

to achieve substantial reductions in greenhouse gas emiss

private investment in more sustainable energy techn

hydrogen and their transfer to those countries. T he rich to help pay for the poor to switch to low-carbon energy. T h

as charity, but rather as part of a cost-effective strategy to

global warming.

International and non-governmental organisations includ

important role to play in thi s process. I t i s not for any organ

winners among the various energy technologies that could

years. T he aim should rather be to assist developi ng econenergy-policy landscape that promotes efficient, compet

facilitating the rapid introduction of hydrogen energy as a

competitiveness. T his will requi re energy to be priced and

the full account of the environmental costs and b

technologies. T he scale of the challenge should not be

energy-market and pricing reforms that are necessary to m

thorny issues in many developing economies. D evelopm

lending institutions and export-credit agencies will need to providing technical assistance to help developing economie

well as to supply the capital needed to bring hydrogen pro

UNEP will play its part in encouraging and facilitating the a

and other emerging technologies where they are economic


33/44

Key Messages

H ydrogen holds out the promise of a truly sustainable global energy future. As

clean energy carrier that can be produced from any pri mary energy source

hydrogen used in highly efficient fuel cells could prove to be the answer to ou

growing concerns about energy securi ty, urban pollution and climate change

T his prize surely warrants the attention and resources currently being di rected a

hydrogen even if the prospects for widespread commercialisation of hydrogen

in the foreseeable future are uncertain.

Considerably more research and development will be needed to overcome th

formidable technical and cost hurdles that currently stand in the way o

hydrogen. Large reductions in unit costs, notably in bulk transportation an

storage, and in fuel cells, are needed for hydrogen to become competitive with

existing energy systems. Finding a practical solution to the problem of storing

hydrogen on board vehicles is a critical challenge. G overnments, energ

companies, car makers and equipment manufacturers, who between them arinvesting bill ions of dollars in hydrogen-supply and fuel cell R& D an

demonstration, are confident that these challenges can be overcome

Unexpected technological breakthroughs stemmi ng from advances in basi

sciences, which could have a revolutionary impact on hydrogen supply and fue

cells, cannot be ruled out.

I f technological and cost breakthroughs were to be achieved in the near future, th

transition to a hydrogen energy system would sti ll take several decades. The slowturnover of the existing stock of capital that either makes or uses energy and th

sheer amount of capacity that would need to be built to replace existing system

and to meet rising demand will mean that fossil fuels will most likely remain th

backbone of the global energy system unti l at least the middle of the century.



34/44

that process may start later in most developing economies,

to afford to participate in hydrogen R& D . T hey could spee

introduction of hydrogen by establishing a market-based p

ensures that energy is priced and taxed efficiently. In any

must be ready to support developing economies in

sustainable energy paths. I nternational and non-governm

have an important role to play in assisting countries

environment within which hydrogen and other emerging can penetrate the market, as and when it becomes a viabl

Annex A: Key Players in Hyd


35/44

Annex A: Key Players in Hydrogen Researchand Development

National and Regional Programmes

M ost O ECD countries and a growing number of developing economies have activ

hydrogen and fuel-cell R& D programmes, wi th aggregate public fundin

worldwide now running at about $1 billion per year. Fuel cells account for abou

half of this spending. M ost of the rest is devoted to production, transportation an

storage, with small amounts going to end-use technologies not based on fuel cells

such as gas turbines and internal combustion engines. Total spending haincreased sharply in the last few years. The biggest increases in funding in dolla

terms have occurred in the United States and the European Union. Almost all othe

countries that undertake hydrogen R& D have also stepped up their activities.

Some countries have integrated R& D programmes that cover all elements o

hydrogen supply and end uses. O thers focus on specific aspects. In each case

the balance of funding between different research areas reflects a mixture o

national policy priorities, indigenous resource endowment, and researchtraditi ons and strengths. For example, the CO AL21 programme in Australia,

country with very large coal reserves, covers hydrogen production from coa

integrated with CCS. G ermany places heavy emphasis on fuel cells for vehicles

reflecting the countrys traditional strength in vehicle manufacturing.

United States

T he US government carries out most of its hydrogen and fuel-cell R& D under thH ydrogen, Fuel Cells and Infrastructure Technologies Program, run by th

D epartment of Energy. T he governments strategy is to concentrate funding on

high-risk applied research on technologies in the early stages of development

and leverage private-sector funding through partnerships. T he administration

sharply increased funding in 2003, with the launch of a five-year $1.2 billion



36/44

the federal government will continue with phase 2 and lau

will involve building large-scale infrastructure for manufac

distributing hydrogen. Subsidies are expected to remain in

momentum. T he final phase 4, the realisation of the hy

expected to begin in 2025.

Figure 3: Trans ition to the Hydroge n Eco nomy Envisa ge dHydroge n Programme

Source: www.hy

Japan

Japan was the fi rst country to undertake a large-scale hyd

programme a ten-year, 18 billion ( $165 mi llion) effort th

2002. T he New Hydrogen Project ( NEP) , which started up

commercialisation. Funding has been raised each year sinc

RD&D

Transition tothe marketplace

Expansion of marketsand infrastructure

Realisation of Hyd

Technology developmentR esearch to meet customer

requirements and establish

business case leads to a

commercialisation decision

Initial market penetrationPortable power and stationary

transport systems begin

commercialisation; infrastructure

investment begins with governmental

policies

Infrastructure investmentH 2 power and transport systems

commercially available; infrastructure

business case realised

Fully developed market andinfrastructure phaseH 2 power and transport systems

commercially available in all regions;

national infrastructurePHASEIV

PH

ASEIII

PHASEII

PHASEI

Strong government R&D role Strong industry comm

Commercialisation decision



37/44

Source: International Energy Agency (2004a

European Union

M ost EU funding for hydrogen-related activiti es is provided under the Renewabl

Energy Sixth Framework Programme, which runs from 2002 to 2006. Som

100 mi llion ( $120 milli on) of EU funds, matched by an equivalent amount o

private investment, has been awarded to R& D and demonstration proj ects fohydrogen and fuel cells after the first call for proposals in 2003. Further calls fo

R& D proposals, worth a public and private investment of 300 million ( of whic

EU funding will amount to 150 mi llion) , are planned. Total public and privat

funding is expected to reach 2.8 billion over the ten years to 2011. O f thi

amount, production-related projects will account for 1.3 billion and end-us

projects in communities, 1.5 billion. Some other EU programmes also includ

some activities related to hydrogen.

All the hydrogen projects that are being funded by the European U nion ar

intended to support the large-scale Qui ck Star tinitiative, which aims to attrac

private investment in infrastructure projects in partnership with national publi

institutions and the European Investment Bank. T he ultimate goal is t

accelerate the commercialisation of hydrogen-related technologies during th

coming decades. Production-related projects aim to advance cutting-edg

research to build a large-scale demonstration plant that is able to produce

hydrogen and electricity on an industrial scale and to separate and store safel

the CO 2 generated in the process. End-use projects are intended to explore th

economic and technical feasibility of managing hydrogen-energy communities

known as the hydrogen village. T his will involve establishing centralised an

decentralised hydrogen production and distribution infrastructure

autonomous and grid-connected hydrogen/power systems, a substantia

2010 2020

Fuel-cell vehicles on the road (number) 50, 000 5, 000, 000

Hydrogen refuelling stations (number) - 4000

Stationary fuel-cell co-generation systems (M W) 2200 10,000

Table 2: Hydrogen C omme rcialisation Targets in J apan



38/44

its large fossil-fuel reserves. O ne focus of R& D is the pro

through the gasification of coal under the C O AL21 progr

Canadas hydrogen R& D focuses on production from re

fuel cells. N otable successes include the development of

cell, which led to the worlds first demonstration of a fuel-

the H ydrogenics alkaline water electrolyser. Public fundi

at over C$30 million ( US$25 mi llion) per year and cumuthe early 1980s exceeds C$200 mi lli on.

I n France, hydrogen activities cover PEM and so

production technologies based on coal-gasification w

high-temperature solar and nuclear energy, and small bi

reformi ng; and storage devices. Total annual governmen

EU contributions, i s estimated at about 40 million ( $48

Germanyis a world leader in hydrogen and fuel cell de

have become the main focus of public and private R& D

reflecting in large part the countrys traditional strength

T here are a number of demonstration projects unde

hydrogen-refuelling stations at M unich Airport to suppo

fleet of hydrogen-powered BM Ws, and the Clean Energy

in Berlin, which involves the installation of a refuelling

fuel-cell cars. I n fact, nearly three-quarters of th

demonstrated in Europe are in G ermany. In total, th

industry employs an estimated 3000 people. Total

hydrogen-related activities is estimated at 34 million ( $

In Italy, public funding has averaged about 30 million p

of the decade, wi th about 60% going to hydrogen produ

fuel cells. Several demonstration projects are unde

achievement is the construction of a plant producing

electrolysis integrated with photovoltaics. Another

Project, aims to demonstrate urban hydrogen infrastruc

the Lombardy region.

T he government of Koreaonly started funding hydro



39/44

commercial operation in time for the 2008 O lympi c G ames. T he first hydrogen

powered buses have already begun operation in the city under the UND P/G E

demonstration project. T he Shanghai government also plans to introduce 100

fuel-cell vehicles by 2010.

Indiahas budgeted 2.5 billion rupees ( $58 million) to fund hydrogen and fue

cell projects in universities and government-run research laboratories over th

three years to 2007. A planned pilot project involves blending small amounts ohydrogen into diesel fuel for use in about 50 buses in New Delhi. N ationally

there are plans to introduce by the end of the decade 1000 hydrogen-powere

vehicles, of whi ch 800 will be three-wheelers, and 200 buses. C ar makers ar

expected to contribute at least 5 billi on rupees ( $116 mi lli on) to th

development and demonstration of fuel-cell vehicles over the next five years.

Russiahas a long history of hydrogen production and R& D . A national hydroge

development programme, financed by the federal budget and private investorsis under discussion, aimed at developing a market for hydrogen-powered

vehicles. H ydrogen-related activities were stepped up i n 2003 with an agreemen

between the Russian Academy of Science and the Nori lsk Nikel Company on

fuel cell development programme. Total joint funding will be $120 million, o

which $30 million was budgeted in 2005.

Brazilhas devised a Hydrogen Roadmap, which aims to commercialise fuel cell

for transport and off-grid energy systems. T he focus of Brazilian hydrogen R& D

is on production from water electrolysis; reforming of natural gas and reforming

or gasification of ethanol and other biofuels; storage technologies, includin

metal hydrides; and fuel cells.

Private Industry

Pri vate-sector spending on R& D and demonstration of hydrogen, fuel cells an

related technologies is thought to be considerably larger than public budgets

Precise budgets are not available. T he International Energy Agency estimates tha

private-sector spending currently amounts to between $3 billion and $4 billion

per year up to four times the amount being spent by public bodies. T he mai

players are oi l and gas companies, car manufacturers, electricity and gas uti li tie

and power-plant construction companies. A growing number of firms tha



40/44

integrated with CCS. T he Department of Energy is nego

agreement with a consortium led by the coal-fired electric

the coal-mi ning industry. T he consortium wi ll be respon

construction and operation of the plant, and for the monit

and verification of carbon dioxide capture at the plant

expected to contribute approximately $250 million towards

project, which is estimated at $950 million ( in year-2004 do

T he Cali fornia Fuel Cell Partnership is another example of a

public initiative, involving car manufacturers, energy c

developers and government agencies. I t aims to develop a

cell vehicles under real day-to-day driving conditions

development of refuelling infrastructure.

International Cooperation

G overnment and private R& D efforts are complemen

multilateral international collaborative initiatives, all of w

in 2003:

T he International Partnership for the Hydrogen Econom

to serve as a mechanism for international collaboratio

hydrogen and fuel cell R& D and commercialisation. I t

advancing policies, and developing common technical co

accelerate the cost-effective transition to a hydroge

educates and informs stakeholders and the general pub

and challenges involved in, establishing the hydrog

members include 12 O ECD countries, the European C

non-O ECD countries: Brazil, China, I ndia and Russia.

T he H ydrogen and Fuel C ell Technology Platform, set

Commi ssion, brings together all EU-funded public/pr

being undertaken withi n the Commi ssions Framework

to develop awareness of market opportunities for fue

technologies, to elaborate energy scenarios, and to

between stakeholders withi n and outside the European

Annex B:


41/44

Annex B: References & Information Sources

Reports/Books

BP ( 2005) , Stat i sti cal Review of Wor ld Energy, BP, London.

Commonwealth G overnment of Australia ( 2003), Nation al Hydrogen Study,

Canberra.

Energy Information Administration ( 2005) , Intern ati onal Ener gy Outlook, US

D epartment of Energy, Washington, D .C .

European Commission ( 2003) , Hydrogen Energy and Fuel Cell s: A Vision of

our Futur e, D GT REN, Brussels.

H offman, P. ( 2001) , T omor row's Energy: Hydr ogen, Fuel Cell s, an d the

Prospects for a Cleaner Plan et, M IT Press, M assachusetts.

International Energy Agency ( IEA) ( 2004a) , Hydrogen a nd Fuel Cells: Reviews

of Nationa l R&D Programmes, I EA/O ECD , Paris.

( 2004b) , Prospects for Car bon Captu re and Storage, I EA/O ECD , Paris.

( 2005a) , Wor ld Energy Outl ook 2005, I EA/O ECD , Paris.

( 2005b) , Energy Poli cies of IEA Coun tr ies, I EA/O ECD , Paris.

( 2005c) , Prospects for Hydrogen and Fuel Cells, I EA/O ECD , Paris.

Intergovernmental Panel on Climate Change ( IPCC) ( 2005) , Specia l Repor t on

Car bon Di oxide Captur e and Storage: Summar y for Poli cymakers andTechni cal Summa r y, I PCC , G eneva.

Larsen H ., Feidenhansl R. and Petersen L. ( 2004) , Ris Ener gy Repor t 3:

Hydrogen and i ts Competitor s, Ris National Laboratory, Roskilde.

National Research Council and National Academy of Engineering (2004) , The

Hydr ogen Economy: Opportu ni ties, Costs, Bar r ier s and R&D Needs, National

Academies Press, Washington, D .C .

Rifkin, J. ( 2002) , The Hydrogen Economy: The Creati on of the Wor ld -WideEnergy Web an d the Redi str ibu tion of Power on Ear th, J.P. Tarcher Publishers,

Los Angeles.

Websites


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43/44

About the UNEP Division of TeIndustry an

The UN EP Division of Technology, Industry and Ecgovernments, local authorities and decision-maker

industry to develop and implement policies and pr

sustainable development.

The Division works to promote:

> sustainable consumption and production,

> the efficient use of renewable energy,

> adequate management of chemicals,> the integration of environmental costs in develop

The Office of the Director, located in Paris, coord

through:

> The International Environmental Technology Centre -

which implements integrated waste, water and disaster manag

focusing in particular on Asia.> Production and Consumption (P aris), which promotes sus

and production patterns as a contribution to human developm

markets.

> Chemicals (G eneva), which catalyzes global actions to bring

management of chemicals and the improvement of chemical s

> Energy (P aris), which fosters energy and transport policies for

development and encourages investment in renewable energy> OzonAction (P aris), which supports the phase-out of ozone d

in developing countries and countries with economies in transi

implementation of the M ontreal Protocol.

> Economics and Trade (G eneva), which helps countries to in

Hydroge n holds out the promise of a truly


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For more information, contact:

UNEP DTIE

Energy Branch

39-43 Q uai Andr C itron

75739 Paris Cedex 15, France

Tel. : +33 1 44 37 14 50

Fax.: +33 1 44 37 14 74

E-mail: unep.tie@ unep.fr

www.unep.fr/energy/

DTI-0762-PA

Hydroge n holds out the promise of a truly

susta inab le g lobal energy future. As a clean

energy carrier that ca n be produced from

any primary energy s ource, hydrogen used

in highly efficient fuel cells could prove to

be the answer to our growing concerns

about energy security, urban pollution and

climate c hang e. This prize surely wa rrant s

the a ttention a nd resources currently be ing

directed at hydrogen even if the

prospects for widespread

commercialisation of hydrogen in the

foreseeable future are uncertain.

Economica Del Hidrogeno

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