Developing a Hydrogen Economy: Challenges and Potential

Developing a Hydrogen Economy: Challenges and Potential

Hydrogen is the simplest, lightest and most abundant element in the universe, making up 90% of all matter. It is made up of just one electron and one proton and is, therefore, the first element in the periodic table.

A hydrogen economy is a hypothetical economy in which energy is stored and transported as hydrogen (H2). Various hydrogen economy scenarios can be envisaged using hydrogen in a number of ways. A common feature of these scenarios is using hydrogen as an energy carrier for mobile applications (vehicles, aircraft).

In the context of a hydrogen economy, hydrogen is not a primary energy source. Rather, hydrogen acts as a medium for energy. Nevertheless, controversy over the usefulness of a hydrogen economy is confused by issues of energy sourcing, including fossil fuel use, global warming, and sustainable energy generation. While these are all separate issues, the hydrogen economy impacts them all.

Proponents of a hydrogen economy suggest that hydrogen is a cleaner source of energy to end-users, particularly in transportation applications, where hydrogen eliminates the release of pollutants (such as greenhouse gasses) at the point of end use. These advantages may hold similarly with the use of hydrogen produced with energy from fossil fuels, provided carbon capture or carbon sequestration methods are utilized at the site of energy or hydrogen production.

Meanwhile, critics of a hydrogen economy argue that for many planned applications of hydrogen, direct use of energy in the form of electricity, chemical batteries and fuel cells, and production of liquid synthetic fuels from CO2, might accomplish many of the same net goals of a hydrogen economy, while requiring only a small fraction of the investment in new infrastructure.

This report addresses the concept of the Hydrogen Economy and sets forth the basic fundamentals behind this economy. The many uses of hydrogen, existing problems in harnessing hydrogen as an energy source, the infrastructure requirements of a hydrogen economy, requirements for government support, and the initiatives undertaken by major industry players, organizations, etc., are all discussed in detail.

Executive Summary 4

Introduction 5
What is Hydrogen? 5
What is a Hydrogen Economy? 6
Global Hydrogen Economy System 7
Present Day Hydrogen Industry 8

Challenges with the Hydrogen Economy 11
Natural Gas at Small Scale 11
Nuclear 11
Solar 11
Wind 11
Biomass 11
Coal 11
Environmental Concerns 12
Direct Dangers in Use 12

Environmental Impact of the Hydrogen Economy and Hydrogen Production Methods 13
Greenhouse Gas Emissions Estimates from Hydrogen Fuel Pathways 15
Air Pollutant Emissions and Soil and Water Impacts from Hydrogen Fuel Pathways 16

Developing the Hydrogen Economy 18
Infrastructure and Costs 18
Role of Government Backing 21
Outlook for Hydrogen Usage 23

Regulatory Issues & Drivers 24

Role of Ammonia & Fuel Cells in Hydrogen Economy 27
Ammonia 27
Fuel Cells 30

Synthetic Methanol - An Alternative to Hydrogen Fuel 33

Industry Outlook 34

Case Studies 36
United States 36
European Union 37
Australia 37
India 37
Brazil 38
United Kingdom 38

Appendix 39
Hydrogen - the Cause of the Hindenburg Disaster 39
A Futuristic Vision of the Hydrogen Economy 39
Centralized & Localized Hydrogen Production 40
Figures & Tables 41
Glossary 45

List of Figures & Tables

Figures

Figure 1: Greenhouse Gas Emissions from Hydrogen Fuel Cell Vehicle Refueling Pathways 15
Figure 2: Air Pollutant Emissions from Hydrogen Fuel Cell Vehicle Refueling Pathways 16
Figure 3: Linkages between Hydrogen and the Rest of the Energy System 20
Figure 4: A Fuel Cell Configuration 30
Figure 5: Transition to the Hydrogen Economy Envisaged by the US Hydrogen Program 36
Figure 6: Drivers for the Hydrogen Economy 41
Figure 7: The Hydrogen Economy 42
Figure 8: Technological Pathway for Hydrogen Economy Development 42
Figure 9: Different H2 Production Techniques 43
Figure 10: Schematic Representation of an Elemental ``Hydrogen Economy`` 43
Figure 11: Higher Heating Value per Volume for Different Fuel Options 44

Tables

Table 1: Elements of Today's Hydrogen Energy System 9
Table 2: Land and Water Requirements for Renewable Hydrogen Production Methods 17
Table 3: Selected Properties of Ammonia 28
Table 4: Hydrogen Production Cost from Fossil Fuel 43