The Hydrogen Economy - GII · The Hydrogen Economy The Hydrogen Economy The Hydrogen Economy The...

The Hydrogen EconomyThe Hydrogen EconomyThe Hydrogen Economy

The Hydrogen Economy

Barrie CookDirector, Cheung Kong Infrastructure Holdings LtdMember, Council on Sustainable Development : HKSAR


The Hydrogen Economy

ο• Hydrogen - An Introduction

ο• The Hydrogen Economy - What is it?

ο• Drivers for the Hydrogen Economy

ο• China and the Hydrogen Economy

ο• CKI's move into the Hydrogen Economy


first element in periodic table

most abundant element in the universebut on earth found only as compounds

colourless, odourless gasunder normal conditions; liquid at –253 C

fuel with highest energy density,lowest volume density, highest buoyancy

What is….

highly effective reducing agent for industrial processes

Hydrogen (H2)11


Hydrogen is like electricity

Hydrogen is an energy carrier not an energy source

Energy to make > energy carried

(2nd Law of Thermodynamics)

Pure and high value form of energy

Can be generated in a number of ways

Depending on energy source can be zero emission

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But it’s different

While energy in the form of electricity is instantaneous over a wire…

… energy in the form of hydrogen can be stored as a fuel like hydrocarbons (coal, oil, natural gas, etc.) and used on-demand for industrial, domestic, power and transportation uses.

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Why Hydrogen Energy future?

Hydrogen along with Electricity provides the basis for a sustainable energy future:

“Clean energy”: a “zero emission” energy solution

“Unlimited supply”: produced from indigenous sources

“Innovative Technology”: fueling new energy technologies

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Hydrogen Energy Conversion: Making Hydrogen Fuel

Electrolysis:H2O + energy = ½ H2 + O2

(takes about 2 gallons of water and 50 kWh to produce 1 kg H2)

Reforming/Gasification of Hydrocarbons:C(x)H2(y) + ½ O2 (air) + H2O + energy = m H2 + n CO2

Such as Natural GasCH4 + 2H2O + energy = 4H2 + CO2

(takes about 3 kg CH4 to produce 1 kg H2)

GreenHouseGas

OxygenBy-product

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Sustainable Hydrogen Energy Conversion Cycle

Water Electrolysis

Hydrogen (H2)

Oxygen

HydrogenPower System

Water (H2O)

Renewable Electricity

Oxygen (O2)

Energy To Do WorkZero-emission energy system!

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Stuart

Power Grid

Community

Fuel Cell

StoragePond

Oxygen WaterHydrogen

Solar Power

Wind Power

Hydro Electric Power

StandStand--alone Energy System: alone Energy System: The Hydrogen VillageThe Hydrogen Village99

Electrolyser

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Dispelling Myths: Hydrogen Energy is Something New?Town gas (coal gas) was introduced in England in early 1800’s and used extensively in European and North American cities for heat, cooking and lighting. Over 700 miles of Town Gas piping was laid, infrastructure later converted to carry natural gas.

Town gas consists of:

Hydrogen, 48%Methane, 32%Carbon monoxide, 8%Ethylene (ethane), 2%

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Dispelling Myths: Hydrogen Energy Apocalypse?

The Hydrogen Bomb is not hydrogen energyFusion is a nuclear reaction, not a chemical reactionTritium, isotope of hydrogen, fuel for fusion is not naturally occurring & only exists in nuclear environment

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Dispelling Myths: HindenburgHydrogen Disaster?

Hint: Hydrogen flame is invisible unlike flames of hydrocarbon fuels or other materials which are visible when burning

What actually happened: The outer skin is made of highly flammable material (aluminium and iron oxide – later used for solid rocket fuel). Type of Al powder used was particularly sensitive to static electricity. Upon arrival to docking station, the skin has accumulated about 150,000 Volts of static charge that created a huge spark to ground through the moorings thus igniting the skin. This is what is visibly burning here. Most of the hydrogen leaked out without catching fire. The Hindenburg Disaster, 1937

What is wrong with this picture?

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1) IntroductionMarkets for Hydrogen

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1 10 100 1000 10000 100000

Hydrogen Use (ncm/hr)

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roge

n Va

lue

($/M

MB

tu)

IndustrialTranportationGrid PowerOff-Grid PowerElectrolysis Today

Electrolysis Potential

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2) Industrial Hydrogen MarketElectrolysis competes mostly with Natural Gas reforming

Globally, 96% of world’s hydrogen comes from natural gas or other fossil fuels, 4% from electrolysis

95% is consumed on site as a processing gas 60% used in ammonia production23% used in petrochemical refining 9 percent in methanol production.

US use:Petroleum refining, 66.8%Petrochemicals, 26.2%Metals, 2.7; electronics, 1.5; government (NASA), 1.2; edible fats & oils, 0.7; float glass, 0.3; utility power generation, 0.2; miscellaneous, 0.4.

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2) Industrial Hydrogen MarketBest NG reformers produce hydrogen at 1.5X cost of natural gas ($/MMBTU) Electrolysis has an advantage for applications with:

Consumption up to 1000 nm/hrNo access to cheap natural gasAccess to low cost electricity

Economies of Scale in Hydrogen Production

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0.1 1.0 10.0 100.0 1,000.0 10,000.0 100,000.0 1,000,000.0Nm³h Hydrogen Output

Cos

t per

kg

H

Hydrogen From SMR - Based on Literatrue

Current SE FUTURE SE - In Limited Vol.

Central LiquidAVERAGE COST OF H, NG'LIGHT HC FEEDSTOCK, 1997

Best-Fit Trendline for SMR CostBest-Fit Trendline for Liquid H Cost

Calculation assumption : $.03/kWhr, US$3/MMBTU

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2) Industrial Hydrogen MarketMarket Forces:

NG prices in North America has risen, irreversibly.Consumption of NG in China increased at 8.0% pa in 2002.

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3) Transportation Market

All automotive/ transit majors developing fuel cell platformsFord, Mazda, BMW developing H2ICE vehiclesHydrogen vehicle programs in demonstration today:

California – CFCPEurope – CUTECanada – BC Hydrogen Highway

>70 filling stations in the world today in use or under construction.

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4) Power Market

Near Term Target Markets:1. Rural Electrification (Battery / remote diesel

replacement)2. Isolated grids dependant on renewable energy or

grids with high penetration of wind power.3. Emergency / Back-up power leveraging vehicle

fueling infrastructure (incremental addition)

Near Term Target Markets:1. Rural Electrification (Battery / remote diesel

replacement)2. Isolated grids dependant on renewable energy or

grids with high penetration of wind power.3. Emergency / Back-up power leveraging vehicle

fueling infrastructure (incremental addition)

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4.1) Rural Electrification

2 billion people without access to reliable powerCurrently 100-200 million small off-grid systems providing electricity to 1 billion peopleTransmission lines to remote areas can cost US$50,000 /mile China: migration from the rural areas to the cities in search of an improved lifestyle.

2 billion people without access to reliable powerCurrently 100-200 million small off-grid systems providing electricity to 1 billion peopleTransmission lines to remote areas can cost US$50,000 /mile China: migration from the rural areas to the cities in search of an improved lifestyle.

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4.1) Rural ElectrificationChina:

more than 20,000 villages without power (1999)Over 150,000 small wind turbines. SETC / World Bank Project plans 30,000 New Hybrid power systems. The State Development Planning Commission (SDPC) “Brightness Engineering” Village Power Program plans approximately ~ 35,000 Wind hybrid systems.

20 million people in 60,000 communities and 3 million isolated rural micro-estates in Brazil have no access to electricityCanada and Australia: more than 600 communities generate own electricity, mostly using diesel generators. Europe: over 200 islands dependant on renewable energy and imported diesel fuel.

China:more than 20,000 villages without power (1999)Over 150,000 small wind turbines. SETC / World Bank Project plans 30,000 New Hybrid power systems. The State Development Planning Commission (SDPC) “Brightness Engineering” Village Power Program plans approximately ~ 35,000 Wind hybrid systems.

20 million people in 60,000 communities and 3 million isolated rural micro-estates in Brazil have no access to electricityCanada and Australia: more than 600 communities generate own electricity, mostly using diesel generators. Europe: over 200 islands dependant on renewable energy and imported diesel fuel.

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4.1) Rural Electrification

Assumptions:Global: 10 hours storage, 50 kW output, backup utilization rate 13%Electrolysis: Power $.08/kWhr, cost decrease 50% in 5 years (to $1000/kW)Battery: 3 year life, $200/ kWhr installedDiesel: US$5.00 / gallon (premium application - remote site cost)

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4.1) Rural ElectrificationBattery market:

Batteries can cost > US$200/kWhr and last for < 3 years on averageHydrogen storage costs as little as US$10 / kWhr and lasts > 10 yearsLead-acid batteries are toxicThe market for these lead-acid batteries is valued at $2 US Billion per year.

Diesel market:Fuel adds to the cost of power. Remote Diesel power costs US$.20–.80 / kWhrCountries such as China / Brazil must import much of petroleum they consumeDiesel fuel creates ground and air pollutionCost of renewable energy technology is decreasing. The cost of fossil fuels are rising

Battery market:Batteries can cost > US$200/kWhr and last for < 3 years on averageHydrogen storage costs as little as US$10 / kWhr and lasts > 10 yearsLead-acid batteries are toxicThe market for these lead-acid batteries is valued at $2 US Billion per year.

Diesel market:Fuel adds to the cost of power. Remote Diesel power costs US$.20–.80 / kWhrCountries such as China / Brazil must import much of petroleum they consumeDiesel fuel creates ground and air pollutionCost of renewable energy technology is decreasing. The cost of fossil fuels are rising

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4.2) Isolated / High Penetration Grids

Wind energy exceeds 31,000 MW of installed capacityInstallations grew by 33% in 2002 in EuropeEuropean Wind Energy Association estimates that the global wind power market could be worth $25 billion a year by 2010.Market for wind-hydrogen systems has been estimated to be US$23 billion

• But - Can’t provide guaranteed power and limited to15-20% grid

• US DOE funding research of wind-hydrogen systems

Wind energy exceeds 31,000 MW of installed capacityInstallations grew by 33% in 2002 in EuropeEuropean Wind Energy Association estimates that the global wind power market could be worth $25 billion a year by 2010.Market for wind-hydrogen systems has been estimated to be US$23 billion

• But - Can’t provide guaranteed power and limited to15-20% grid

• US DOE funding research of wind-hydrogen systems

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Wind Power as a Driver:• Environmentally Friendly – no external cost• Cost US$ .035-.05 /kWhr, • Projected US$.022-.036 /kWhr by 2020 –

Competitive with best fossil fuel• Global Growth of installed capacity 20-30% pa • Can be installed with < 1 year lead time• Near term markets

• high penetration areas with curtailment:• Europe, Texas, California

• Isolated Grids• Iceland, Hawaii, Islands of Northern Europe

4.2) Isolated / High Penetration Grids4.2) Isolated / High Penetration Grids

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Stuart Energy Vision

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The Stuart Energy Solution

Distributed network using water electrolysisUse Infrastructure already in place: water & electricity grids； or connect directly to local renewable energy sources

Efficient, cost-effective and available todayScalable: Grows with demand Cost effective at small scales; ideal solution for initial stages of vehicle rollout

Optimize capacity utilization

Mature technology & non-exotic materials

Leverage same assets for multiple applications

Enables renewable energy; Carbon-free pathway when connected to renewables

Intelligent network to manage supply and delivery

Indigenous energy generation

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Drivers for HydrogenSolves major world problems simultaneously:

Global WarmingAir QualityEnergy SecuritySustainability

Fossil fuels can’t achieve this

Industrialization, growth projectionsUltimate goal so only one infrastructure change req’dPublic concerns, government regulationsTechnology advances on both vehicle and infrastructure sideZeros the tank to wheel emissions

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Energy Security Drivers

Source: BP Statistical Review of World Energy 2002

Proved oil reserves at end 2001(Thousand million barrels)

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3) Energy Security – Oil Consumption

http://www.hubbertpeak.com/laherrere/Petrotech090103.pdf

China: •Proven reserves at current production rate: 14.8 years•Consumption growth 6% per year, current import 37%

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Air PollutionAir pollution and urban smog in major cities worldwideTransportation emissions single largest contributing factorMajor health and environmental costs

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Climate Change

Global issue – over 100 countries have ratified Kyoto AccordCarbon dioxide accounts for over 82% of global Green House Gas emissionsTransportation is major source of CO2 emissions

Source: U.S. EPA

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The Hydrogen EconomyThe Hydrogen EconomyThe Hydrogen Economy 30


Integrated Hydrogen Energy Solution

Hydrogen Storage Genset usingICE or Fuel Cell

TransportationApplication

Electricity+

Water

Stuart Hydrogen Fueler

Commercial PowerApplication

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Hydrogen Bus

41 Seats Hydrogen ICE Hybrid Bus

Ford 2.3 Liter Hydrogen ICE, with 160KW max power and1800nm of torque

Regenerative braking

8 Dynetek W205 Type 3 Composite Cylinders with capacity of 28.8 kg of H2 at pressure of 250 bar

Estimated range per fill : 350 km

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Hydrogen Hybrid Bus Drive System – Hydrogen PowerHydrogen ICE:

Base engine designed for 10 year / 150,000 mile durability in the Ford Ranger truck. Valvetrain designed for alternative fuels>35% LHV efficiency Almost no HC, CO, CO2No particulate emissionsExceed Euro V on NOx

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*mpgde – miles per gallon of diesel or equivalent

Hydrogen Hybrid Bus Efficiency comparison

0123456789Fu

el C

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mpt

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(mpg

de)

TypicalCleanDiesel

TypicalCNG

HybridElectric(MTG)

HydrogenHybridElectric(H2ICE)

HydrogenHybridElectric(FCV)

Relative Fuel Efficiency of Transit Vehicles

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Hydrogen Hybrid Bus Emissions comparison

Hydrogen ICE today in lean burn configurationDemonstrated technology for < 1ppm NOx (.01 g/kWhr)

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Emissions: Hydrogen Hybrid vs Euro V

Euro V2.3 L H2ICE6.8L H2ICE

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Hydrogen ICE - Conclusion

Hydrogen ICE available today at competitive cost for power and transportation marketsHydrogen ICE can be easily maintainedHydrogen ICE uses all of the advantage of hydrogen fuel:

Zero emissions capabilityHigh EfficiencyEnergy Security

Hydrogen ICE builds bridge to the fuel cell in the future by:Developing knowledge around hydrogen including public acceptance and government regulationsDeveloping infrastructure to support hydrogen vehicles.

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