Hydrogen and Fuel Cells
description
Transcript of Hydrogen and Fuel Cells
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Hydrogen and Fuel Cells
Shannon Baxter-Clemmons, PhDInstitute of Management AccountantsJanuary 19, 2011
Collaborating Coordinating CreatingCollaborating Coordinating Creating
SCHFCA Mission
The South Carolina Hydrogen and Fuel Cell Alliance is a public-private collaboration for cooperative and coordinated utilization of resources in the state used to advance the
commercialization of hydrogen and fuel cell technologies.
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Partners
I/U Cooperative Research Center for Fuel Cells
Collaborating Coordinating Creating
• U.S. is 5% of world population but consume 25% of energy produced in the world.
• Over $700 billion are leaving this country to foreign nations every year. That's four times the cost of the Iraqi war, and it's killing our economy. It'll be the largest transfer of wealth in the history of mankind. T. Boone Pickens, 2008
• Up to 30% of plant and animal species could face extinction by mid-century if global warming is left unchecked. The U.N. Intergovernmental Panel on Climate Change
Current U.S. Economy is Unsustainable
Collaborating Coordinating Creating
The Opportunity
• Current U.S. economy is unsustainable• Hydrogen and fuel cells allow people to increase their standard of living
in a sustainable manner• SC is well positioned to be home to the hydrogen and fuel cell industry• Fuel cell vehicle technology has advanced significantly in recent years• Key issues currently being addressed include hydrogen storage, FC
system costs & durability, and hydrogen infrastructure• Pilot testing of vehicles is occurring in Japan, Europe, and the U.S. (esp.
California, Michigan, and Washington, D.C.) under a U.S. DOE program
Collaborating Coordinating CreatingCollaborating Coordinating Creating
SC Research Institutions•Savannah River National Laboratory •Applied Research Center: Hydrogen•University of South Carolina
•NSF Industry/University Cooperative Research Center•Solid Oxide Fuel Cell Center of Excellence
•South Carolina State University•James E. Clyburn Transportation Center
•Clemson University•International Center for Automotive Research
Genesis for Economic Cluster
Collaborating Coordinating CreatingCollaborating Coordinating Creating
April 2010
South Carolina is one of the
Top 5 Fuel Cell States in the U.S.A.
State of the States:Fuel Cells in America
Top 5 (alphabetical) California, Connecticut, New York, Ohio, and South Carolina.
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Policy Development
Places the authority and responsibility of permitting hydrogen and fuel cells in SC in the jurisdiction of the Office of the State Fire Marshal. Benefits:1.Increases public safety by creating a state expert at the Office of the State Fire Marshal2.Creates a better business environment for the placement of hydrogen and fuel cell facilities3.Raises South Carolina’s profile as a progressive place for hydrogen and fuel cells.
SC Hydrogen and Fuel Cell Permitting Law
Collaborating Coordinating CreatingCollaborating Coordinating Creating
•Builds hybrid and all-electric city buses•Building a $68 million plant in Greenville
Industry
• Breaking ground in July 2010
• Expected to generate over 1,000 jobs
Collaborating Coordinating CreatingCollaborating Coordinating Creating
•Build Hydrogen Fuel Cell generators and hydrogen fuel canisters for commercial uses•Moved its manufacturing and administration to Columbia, creating over 1,000 jobs•Partner with Midlands Tech—hired first 5 fuel cell technology graduates in 2010•An SCLaunch! partner company
Industry
Collaborating Coordinating Creating
Hydrogen and Fuel Cells are part of a Portfolio of Transportation Energy Solutions
• Conservation• Gasoline-electric hybrids• Flex fuel• Plug-in hybrids• Neighborhood electric vehicles• Hydrogen internal combustion engine• Hydrogen fuel cell
Collaborating Coordinating Creating
What is hydrogen?• The most abundant
element in the universe• A universal fuel that can
be used to power anything from cars to cell phones
• Non-toxic, lighter than air, colorless, odorless, tasteless
What is a fuel cell?
•An electrochemical device that combines hydrogen and oxygen to produce electricity, with water and heat as its by-product •It is clean, quiet and highly efficient – two to three times more efficient than fuel burning
Collaborating Coordinating Creating
Benefits of a Hydrogen Economy
• Environmental and human health protection– No harmful or climate change emissions from the use of hydrogen
• Energy security– Hydrogen can be produced from local resources– Ability to couple stationary and transportation power– Distributed network possible versus a centralized network– Complements the intermittent nature of renewables
• Economic prosperity– Technology innovations– Sustainable fuel supply—predictable price structure
Collaborating Coordinating Creating
Lifecycles & Lifestyle Sources(Jones, Horvath & Kammen)
furniture
clothing & shoes
appl/equip milk and related products
tools & supplies
butter
cheese
fish
sausage & otherprepared meats
beef, pork, lamb
chicken
eggs
breadsrice
flour & mill products
tree nuts
oatspet food
corn sweeteners
motor vehicles
-
1.0
2.0
3.0
4.0
0 500 1000 1500 2000 2500
gCO2 equivalent / $
gC
eq
uiv
ale
nt
/ g
Pro
du
ct
keymeatdairyfruit & veggiessnack & othercereals & bakerydrinksgoods
area of ciricle= % of annual average U.S. household consumption
Greenhouse Gas Emissions
Collaborating Coordinating Creating
U.S. Refrigerator Use vs. Time
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1947
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Ave
rag
e E
ne
rgy
Use
pe
r U
nit
So
ld (
kWh
pe
r ye
ar)
0
5
10
15
20
25
Ref
riger
ator
vol
ume
(cub
ic fe
et)
Energy Use per Unit
Refrigerator Size (cubic feet)
1978 Cal Standard
1990 Federal Standard
1987 Cal Standard
1980 Cal Standard
1993 Federal Standard
2001 FederalStandard
Change is Good! (as long as it doesn’t affect my lifestyle)
Collaborating Coordinating Creating
0
50
100
150
200
250
300
350
400
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
GDP per capita (PPP, $1995)
Prim
ary
Energ
y p
er capita (G
J)
US
Australia
Russia
BrazilChinaIndia
S. Korea
Mexico
Ireland
Greece
FranceUK Japan
Malaysia
Energy demand and GDP per capita (1980-2002)
Source: UN and DOE EIA, Slide courtesy of Steven E. Koonin, Chief Scientist, BP, plc
PPP = Purchasing Power Parity - A rate of exchange that accounts for price differences across countries allowing international comparisons of real output and incomes.
Economic Growth Takes Energy
Collaborating Coordinating Creatinghttp://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2004/worldoilsupply/oilsupply04.html
Long-Term World Oil Supply Scenarios: The Future Is Neither as Bleak or Rosy as Some Assert, John H. Wood, Gary R. Long, David F. Morehouse
Peak Oil is Within Sight
Collaborating Coordinating Creating
Hydrogen makes Energy Security a Local Issue
• Couples transportation and stationary energy• “Firms up” renewable resources• Allows for the use of indigenous fuel sources
– Renewables, nuclear, fossil fuels
• Breaks traditional energy paradigms– Monopolies– Fueling infrastructure– Vehicle capabilities
Collaborating Coordinating Creating
Effects of a Transition to a Hydrogen Economy on Employment in the US, National Academy of Science, July 2008
• Assuming the Hydrogen Fuel Initiative is successful– 1st HFCV sales in 2018– 100% of new car sales in 2050
• Net increase in employment of 361,000 jobs– Scientific and Technical Service sectors will increase– South, new automotive manufacturing center, will do
well
Economic Impacts
Collaborating Coordinating Creating
South Carolina & Hydrogen: A Natural Fit• SC has a 50+ year history of hydrogen research• A Harvard study identified hydrogen and fuel cells as a
major economic focus for SC• In 2006, the South Carolina Hydrogen and Fuel Cell
Alliance was formed to coordinate and collaborate SC’s hydrogen initiatives with economic development goals in mind
Collaborating Coordinating Creating
SC has many existing hydrogen strengths• Multi-level governmental support of hydrogen• Long-existing strength in research• Emerging strengths in a variety of hydrogen markets• Long-existing manufacturing expertise encourages
economic development and private investment• Coordination and collaboration through SCHFCA
activities
Collaborating Coordinating Creating
SC’s Unique Hydrogen Markets• Focused on feasible near-term applications
– Portable applications – Such as ETV fuel cell cameras and emergency responder packs
– Off-road applications – Such as USC/Hydrogen Hybrid Mobility fuel cell Segway and Bridgestone hydrogen forklift projects
– Automotive – Federal Transit Administration’s National Fuel Cell Bus Program, Fall 2008
Collaborating Coordinating Creating
Columbia, SC• In 2007, the City of Columbia unanimously passed a
resolution to become a leader in fuel cell innovation• The Greater Columbia Fuel Challenge funds projects of
various scales, including:– Portable fuel cell battery packs for ETV cameras– First responder extended fuel cell power packs
• University of South Carolina professors unveiled two hydrogen fuel cell Segways in 2007
• NSF Research Center for Fuel Cells• 2 Endowed Chairs in fuel cell research• Site of the 2009 National Hydrogen Association Conference
Collaborating Coordinating Creating
Aiken, SC
• $10 million Center for Hydrogen Research opened 2005– Currently under expansion, 2009
• SC’s first hydrogen vehicle, 2007 Chevrolet Silverado truck, delivered February 2008
• Bridgestone plant deployed 23 hydrogen forklifts in 2008 with plans to create an all
hydrogen forklift fleet by 2009• GENCO facility in process of adding hydrogen
forklifts • Hydrogen station part of SC Hydrogen Freeway
Collaborating Coordinating Creating
Upstate of SC
• Home to CU-ICAR and a growing Southeast Automotive Cluster
• Tetramer• Kusters-Zima working with Nuvera• Hyperion• BMW—gasoline/liquid hydrogen• KEMET
Collaborating Coordinating Creating
Transportation Industry Challenges• Hydrogen storage• Fuel cell cost and
durability• Infrastructure
Collaborating Coordinating Creating
Challenge:H2 Storage
• Should achieve high energy density (by wt. and vol.), low cost, quick refueling and good safety
• Candidates: compressed gas (5k – 10k psi), liquid, metal hydride, carbon nanotubes, chemical storage
• No perfect solution yet but there are workable options
Consumers demand 300+ mile range per fill.
Collaborating Coordinating Creating
Challenge: Fuel Cell Cost and Durability
– GM, Toyota, Honda Motor Co. and Daimler AG say durability improvements and cost reductions may enable them to sell the zero-emission vehicles by 2015. Costs to make the fuel-cell cars have fallen from $1 million each a few years ago, and automakers are working to meet a proposed goal of slashing the premium for the cars to $3,600 more than a midsized gasoline model. GM, Toyota Fuel-Cell Plans Clash With U.S. Battery Car Push, October 9, 2009.
– Fuel cell manufacturers have achieved DOE cost and durability targets
Collaborating Coordinating Creating
GM: Example of Progress
• The fuel cell stack itself has been shrunk in terms of both size and cost and now fits in roughly the same space as GM's EcoTec four-cylinder engine.
• The second generation hydrogen fuel cell system in development is half the size, 220 pounds lighter and uses less than half the precious metal of the current generation in the Chevrolet Fuel Cell electric
vehicle• GM’s fifth-generation fuel cell
stack, could be commercialized in the 2015 time frame
Collaborating Coordinating Creating
Investment Tax Credit (ITC)Example – If a US Telecom company purchases a 10kW fuel cell based
backup power system at a price of $35,000 the value of the ITC will be the smaller of:
• ITC Computation Based on Capital Cost:
30% of purchase price = 0.30 x $35,000 = $10,500
• ITC Cap Computation:
$3,000 per kW = $3,000/kW x 10kW = $30,000
Value of the ITC to the US Telecom company in this example = $10,500
Challenge: Fuel Cell Cost and Durability
Collaborating Coordinating Creating
Grant-In-Lieu of Tax CreditExample – If a US Telecom company purchases a 5kW fuel cell based backup
power system at a price of $15,000 the value of the grant will be the smaller of:
• Grant Computation Based on Capital Cost:
30% of purchase price = 0.30 x $15,000 = $4,500
• Grant Cap Computation:
$3,000 per kW = $3,000/kW x 5kW = $15,000
Value of the grant to the US Telecom company in this example = $4,500
Challenge: Fuel Cell Cost and Durability
Collaborating Coordinating Creating
South Carolina Hydrogen and Fuel Cell Tax Exemption
• Any device, equipment, or machinery operated by hydrogen or fuel cells; • Any device, equipment, or machinery used to generate, produce, or
distribute hydrogen and designated specifically for hydrogen or fuel cell applications; and
• Any device, equipment, or machinery used predominantly for manufacturing, or research and development involving hydrogen or fuel cell technologies.
(Reference South Carolina Code of Laws 12-36-2120)
Challenge: Fuel Cell Cost and Durability
Collaborating Coordinating Creating
Infrastructure
– Germany: Daimler (DAI), the German government, and several industrial companies announced a plan to build 1,000 hydrogen-fueling stations across Germany.
– Japan: Announcement on 1/18/11 for 100 more fueling stations– US: approximately 76 hydrogen fueling stations with more to coming online– Stations in Australia, Belgium, Brazil, Canada, China, Denmark, France, Germany,
Greece, Iceland, Italy, Netherlands, Singapore, South Korea, Spain, UK– A study commissioned by the National Academy of Science concluded that the
U.S. would need to spend $3 billion to $4 billion a year for 15 years to subsidize the cost of the cars and get a national infrastructure in place to make the transition to hydrogen. About the same amount in annual subsidies that corn-based ethanol receives.
Collaborating Coordinating CreatingCollaborating Coordinating Creating
S.C. Hydrogen Freeway• Sage Mill Hydrogen Station
• Capacity: 80 kg/day• Columbia Hydrogen Station
• Capacity: 120 kg/day
Deployment
First H2 vehicle
to drive SC H2 Freeway
Collaborating Coordinating Creating
Near Term Opportunities
• Energy Stations– Hydrogen fueling stations where the primary function is to supply power to a
nearby location
• Niche Markets– Telecommunications– Forklifts– APU and Scooters– Applications with a high need for reliability
• Opportunity Fuels– Waste hydrogen from chemical processes– Methane from landfills– Anaerobic digester gas from wastewater treatment facilities
Collaborating Coordinating Creating
Early Niche Markets
• Telecommunications– Cell tower back-up– Fuel cells can meet battery price point with incentives– Fuel cells offer longer, continuous runtime and are
more durable in harsh environments
• Forklifts– Fuel cells are superior performing in high-productivity
markets• Rapid refueling, eliminate down-time for battery recharging
Fuel cells provide a unique value to market segment not met by competing technologies
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Currently putting together Case Studies that examine the
Current Market Value Proposition for hydrogen and fuel cells in:
Cell Phone TowersCombined Heat and Power (CHP)
Forklifts
Growing Markets
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Bridgestone-Firestone Plant &GENCO warehouse in Aiken, SC
Creates jobs for operation, maintenance, and distribution of
technology
Hydrogen Fork-Lifts
Market Value Proposition
Key Strategy to increasing hydrogen through put of
local hydrogen station
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Example of fuel cell application for telecommunications
Market Value Proposition
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Fuel Cell/Battery Side by Side
Power Reqired Fuel Cell System Conventional Battery Battery and GeneratorBTS Amps @ Cost Footprint Cost FootprintQty 48 VDC kW ($ US) SF lbs ($ US) SF lbs1 35 1.68 31,806 13 854 12,000 9 9752 70 3.36 31,806 13 963 19,000 18 1,9503 105 5.04 45,564 27 1,515 26,000 27 2,9254 140 6.72 45,564 27 1,624 33,000 36 3,9005 175 8.40 45,564 27 1,733 40,000 45 4,875
Notes1. 4 Hours of support power is required2. Cost reflects turn-key estimate for typical installation3. Cabinet configurations with best life cycle cost used for fuel cells (others available)
INITIAL COSTS
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Fuel Cell/Battery Side by Side
Power Reqired Fuel Cell System Conventional Battery Battery and GeneratorBTS Amps @ Cost Footprint Cost FootprintQty 48 VDC kW ($ US) SF lbs ($ US) SF lbs1 35 1.68 47,237 13 854 66,100 9 9752 70 3.36 47,444 13 963 101,700 18 1,9503 105 5.04 76,183 27 1,515 137,300 27 2,9254 140 6.72 76,390 27 1,624 172,900 36 3,9005 175 8.40 76,596 27 1,733 208,500 45 4,875
Notes1. 4 Hours of support power is required2. Cost reflects turn-key estimate for typical installation3. Cabinet configurations with best life cycle cost used for fuel cells (others available)4. Costs include estimated annual lease, fuel, maintenance, and replacement expenses5. Costs do not include adjustments for interest expenses or inflation
TEN YEAR COSTS
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Fort Jackson Fuel Cell Applications
Ft. Jackson Emergency Services Center Ft. Jackson Telecommunications Center
Capacity Back Up Function
15 KW Emergency services center and 911 call center
30 KW Critical communications and IT services
5 KW Base-wide energy management control center
10-5 KW units in 3 locations10-5 KW units in 3 locations
Deployment
Collaborating Coordinating Creating
Hydrogen still needs your support• Let your state and local representatives know you
support hydrogen and the work of the SCHFCA• Educate yourself on hydrogen and fuel cells
– Visit schydrogen.org for information on SC’s activities– Plug into national activities at hydrogenassociation.org and
h2andyou.org• Learn more about favorable state incentives for
adopting alternative energy technologies at www.energy.sc.gov
Collaborating Coordinating CreatingCollaborating Coordinating Creating
Questions?
Shannon [email protected]