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    Nj h2 dev_plan_041012 Nj h2 dev_plan_041012 Document Transcript

    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20121NEW JERSEYHydrogen and Fuel Cell Development Plan – “Roadmap” CollaborativeParticipantsClean Energy States AllianceAnne Margolis – Project DirectorValerie Stori – Assistant Project DirectorProject Management and Plan DevelopmentNortheast Electrochemical Energy Storage Cluster:Joel M. Rinebold – Program DirectorPaul Aresta – Project ManagerAlexander C. Barton – Energy SpecialistAdam J. Brzozowski – Energy SpecialistThomas Wolak – Energy InternNathan Bruce –GIS Mapping InternAgenciesUnited States Department of EnergyUnited States Small Business AdministrationNewark skyline – “New Jersey Skyline”, city-data.com, http://www.city-data.com/forum/city-vs-city/51783-mid-sized-city-skyline-thread-21.html, October, 2011Sheraton – “Exterior”, visitUSA.com, http://reservation.travelaffiliatepro.com/visitusa/hotel/details/SI1137%20/sheraton-edison-hotel-raritan-center.htm, October, 2011New Jersey/New York port – “New Jersey/New York Port”, Coalition for Clean & Safe Ports, http://cleanandsafeports.org/new-yorknew-jersey/, October 2011Pipes – “Plumber Vs Plumbing Engineer”, Chemical Engineering World, http://chem-eng.blogspot.com/2008/12/plumber-vs-plumbing-engineer-whats.html, October, 2011Rutgers University – “View of Old Queens Hall at Rutgers University in New Brunswick”, nj.com,http://www.nj.com/news/index.ssf/2011/04/rutgers_to_cancel_annual_rutge.html, October, 2011Graph going up – “What do they do?”, http://www.sciencebuddies.org/science-fair-projects/science-engineering-careers/Math_statistician_c001.shtml?From=testb, October 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20122NEW JERSEYEXECUTIVE SUMMARYThere is the potential to generate approximately 2.30 million megawatt hours (MWh) of electricity fromhydrogen fuel cell technologies at potential host sites in the State of New Jersey, annually through thedevelopment of 292 – 390 megawatts (MW) of fuel cell generation capacity. The state and federalgovernment have incentives to facilitate the development and use of renewable energy. The decision onwhether or not to deploy hydrogen or fuel cell technology at a given location depends largely on theeconomic value, compared to other conventional or alternative/renewable technologies. Consequently,while many sites may be technically viable for the application of fuel cell technology, this plan providesfocus for fuel cell applications that are both technically and economically viable.Favorable locations for the development of renewable energy generation through fuel cell technologyinclude energy intensive commercial buildings (education, food sales, food services, inpatient healthcare,lodging, and public order and safety), energy intensive industries, wastewater treatment plants, landfills,wireless telecommunications sites, federal/state-owned buildings, and airport facilities with a substantialamount of air traffic.Currently, New Jersey contains at least 8 companies that are part of the growing hydrogen and fuel cellindustry supply chain in the Northeast region. Based on a recent study, these companies making up NewJersey’s hydrogen and fuel cell industry are estimated to have realized approximately $26.5 million inrevenue and investment, contributed over $1 million in state and local tax revenue, and generatedover $18.6 million in gross state product from their participation in this regional energy cluster in 2010.Hydrogen and fuel cell projects are becoming increasingly popular throughout the Northeast region.These technologies are viable solutions that can meet the demand for renewable energy in New Jersey. Inaddition, the deployment of hydrogen and fuel cell technology would reduce the dependence on oil,improve environmental performance, and increase the number of jobs within the state. This plan provideslinks to relevant information to help assess, plan, and initiate hydrogen or fuel cell projects to help meetthe energy, economic, and environmental goals of the State.Developing policies and incentives that support hydrogen and fuel cell technology will increasedeployment at sites that would benefit from on-site generation. Increased demand for hydrogen and fuelcell technology will increase production and create jobs throughout the supply chain. As deploymentincreases, manufacturing costs will decline and hydrogen and fuel cell technology will be in a position tothen compete in a global market without incentives. These policies and incentives can be coordinatedregionally to maintain the regional economic cluster as a global exporter for long-term growth andeconomic development.
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20123NEW JERSEYTABLE OF CONTENTSEXECUTIVE SUMMARY ......................................................................................................................2INTRODUCTION..................................................................................................................................5DRIVERS............................................................................................................................................6ECONOMIC IMPACT ...........................................................................................................................8POTENTIAL STATIONARY TARGETS ...................................................................................................9Education ............................................................................................................................................11Food Sales...........................................................................................................................................12Food Service .......................................................................................................................................12Inpatient Healthcare............................................................................................................................13Lodging...............................................................................................................................................14Public Order and Safety......................................................................................................................14Energy Intensive Industries.....................................................................................................................15Government Owned Buildings................................................................................................................16Wireless Telecommunication Sites.........................................................................................................16Wastewater Treatment Plants (WWTPs) ................................................................................................16Landfill Methane Outreach Program (LMOP)........................................................................................17Airports...................................................................................................................................................17Military ...................................................................................................................................................19POTENTIAL TRANSPORTATION TARGETS .........................................................................................20Alternative Fueling Stations................................................................................................................21Fleets...................................................................................................................................................22Bus Transit..........................................................................................................................................22Material Handling...............................................................................................................................22Ground Support Equipment ................................................................................................................23Ports ....................................................................................................................................................23CONCLUSION...................................................................................................................................25APPENDICES ....................................................................................................................................27
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20124NEW JERSEYINDEX OF TABLESTable 1 - New Jersey Economic Data 2011..................................................................................................8Table 2 - Education Data Breakdown.........................................................................................................12Table 3 - Food Sales Data Breakdown........................................................................................................12Table 4 - Food Services Data Breakdown ..................................................................................................13Table 5 - Inpatient Healthcare Data Breakdown.........................................................................................13Table 6 - Lodging Data Breakdown............................................................................................................14Table 7 - Public Order and Safety Data Breakdown...................................................................................15Table 8 - 2002 Data for the Energy Intensive Industry by Sector ..............................................................15Table 9 - Energy Intensive Industry Data Breakdown................................................................................16Table 10 - Government Owned Building Data Breakdown........................................................................16Table 11 -Wireless Telecommunication Data Breakdown .........................................................................16Table 12 - Wastewater Treatment Plant Data Breakdown..........................................................................17Table 13 - Landfill Data Breakdown ..........................................................................................................17Table 14 – New Jersey Top Airports Enplanement Count.........................................................................18Table 15 - Airport Data Breakdown ...........................................................................................................18Table 16 - Military Data Breakdown ..........................................................................................................19Table 17 - Average Energy Efficiency of Conventional and Fuel Cell Vehicles (mpge)...........................20Table 18 - Ports Data Breakdown...............................................................................................................24Table 19 –Summary of Potential Fuel Cell Applications ...........................................................................25INDEX OF FIGURESFigure 1 - Energy Consumption by Sector....................................................................................................9Figure 2 - Electric Power Generation by Primary Energy Source................................................................9Figure 3 - New Jersey Electrical Consumption per Sector .........................................................................11Figure 4 - U.S. Lodging, Energy Consumption ........................................................................................144
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20125NEW JERSEYINTRODUCTIONA Hydrogen and Fuel Cell Industry Development Plan was created for each state in the Northeast region(New Jersey, Maine, New Hampshire, Massachusetts, Vermont, Connecticut, New York, and RhodeIsland), with support from the United States (U.S.) Department of Energy (DOE), to increase awarenessand facilitate the deployment of hydrogen and fuel cell technology. The intent of this guidance documentis to make available information regarding the economic value and deployment opportunities forhydrogen and fuel cell technology.1A fuel cell is a device that uses hydrogen (or a hydrogen-rich fuel such as natural gas) and oxygen tocreate an electric current. The amount of power produced by a fuel cell depends on several factors,including fuel cell type, stack size, operating temperature, and the pressure at which the gases aresupplied to the cell. Fuel cells are classified primarily by the type of electrolyte they employ, whichdetermines the type of chemical reactions that take place in the cell, the temperature range in which thecell operates, the fuel required, and other factors. These characteristics, in turn, affect the applications forwhich these cells are most suitable. There are several types of fuel cells currently in use or underdevelopment, each with its own advantages, limitations, and potential applications. These technologiesand application are identified in Appendix VI.Fuel cells have the potential to replace the internal combustion engine (ICE) in vehicles and providepower for stationary and portable power applications. Fuel cells are in commercial service as distributedpower plants in stationary applications throughout the world, providing thermal energy and electricity topower homes and businesses. Fuel cells are also used in transportation applications, such as automobiles,trucks, buses, and other equipment. Fuel cells for portable applications, which are currently indevelopment, and can provide power for laptop computers and cell phones.Fuel cells are cleaner and more efficient than traditional combustion-based engines and power plants;therefore, less energy is needed to provide the same amount of power. Typically, stationary fuel cellpower plants are fueled with natural gas or other hydrogen rich fuel. Natural gas is widely availablethroughout the northeast, is relatively inexpensive, and is primarily a domestic energy supply.Consequently, natural gas shows the greatest potential to serve as a transitional fuel for the near futurehydrogen economy. 2Stationary fuel cells use a fuel reformer to convert the natural gas to near purehydrogen for the fuel cell stack. Because hydrogen can be produced using a wide variety of resourcesfound here in the U.S., including natural gas, biomass material, and through electrolysis using electricityproduced from indigenous sources, energy produced from a fuel cell can be considered renewable andwill reduce dependence on imported fuel. 3,4When pure hydrogen is used to power a fuel cell, the onlyby-products are water and heat—no pollutants or greenhouse gases (GHG) are produced.1Key stakeholders are identified in Appendix III2EIA,”Commercial Sector Energy Price Estimates, 2009”,http://www.eia.gov/state/seds/hf.jsp?incfile=sep_sum/html/sum_pr_com.html, August 20113Electrolysis is the process of using an electric current to split water molecules into hydrogen and oxygen.4U.S. Department of Energy (DOE), http://www1.eere.energy.gov/hydrogenandfuelcells/education/, August 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20126NEW JERSEYDRIVERSThe Northeast hydrogen and fuel cell industry, while still emerging, currently has an economic impact ofnearly $1 Billion of total revenue and investment. New Jersey benefits from secondary impacts ofindirect and induced employment and revenue.5Furthermore, New Jersey has a definitive and attractiveeconomic development opportunity to greatly increase its economic participation in the hydrogen and fuelcell industry within the Northeast region and worldwide. An economic “SWOT” assessment for NewJersey is provided in Appendix VII.Industries in the Northeast, including those in New Jersey, are facing increased pressure to reduce costs,fuel consumption, and emissions that may be contributing to climate change. Currently, New Jersey’sbusinesses pay $0.131 per kWh for electricity on average; this is the tenth highest cost of electricity in theU.S.6New Jersey’s relative proximity to major load centers, the high cost of electricity, concerns overregional air quality, available federal tax incentives, and legislative mandates in New Jersey andneighboring states have resulted in renewed interest in the development of efficient renewable energy.Incentives designed to assist individuals and organizations in energy conservation and the development ofrenewable energy are currently offered within the state. Appendix IV contains an outline of New Jersey’sincentives and renewable energy programs. Some specific factors that are driving the market forhydrogen and fuel cell technology in New Jersey include the following:New Jerseys Renewable Portfolio Standard (RPS) -- one of the most aggressive in the UnitedStates -- requires each supplier/provider serving retail customers in the state to procure 22.5percent of the electricity it sells in New Jersey from qualifying renewables by 2021 (“energyyear” 2021 runs from June 2020 – May 2021). – promotes stationary power and transportationapplications.7New Jerseys 1999 electric-utility restructuring legislation created a "societal benefits charge"(SBC) to support investments in energy efficiency and "Class I" renewable energy. The SBCfunds New Jersey’s Clean Energy Program (NJCEP), a statewide initiative administered by theNew Jersey Board of Public Utilities (BPU). The NJCEP provides technical assistance, financialassistance, information and education for all classes of ratepayers. – promotes stationary powerapplications.8New Jersey is one of the states in the ten-state region that is part of the Regional Greenhouse GasInitiative (RGGI); the nation’s first mandatory market-based program to reduce emissions ofcarbon dioxide (CO2). RGGIs goals are to stabilize and cap emissions at 188 million tonsannually from 2009-2014 and to reduce CO2-emissions by 2.5 percent per year from 2015-2018.9– promotes stationary power and transportation applications.New Jerseys net-metering rules apply to all residential, commercial and industrial customers ofthe states investor-owned utilities and energy suppliers (and certain competitive municipalutilities and electric cooperatives). Systems that generate electricity using fuel cells are eligible.5There currently no OEMs in New Jersey’s hydrogen and fuel cell industry.6EIA, Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State,http://www.eia.gov/cneaf/electricity/epm/table5_6_a.html7DSIRE, “Renewable Portfolio Standards,”http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ05R&re=1&ee=1, October, 20118DSIRE, “Societal Benefits Charge”, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ04R&re=1&ee=1,October, 20119Seacoastonline.come, “RGGI: Quietly setting a standard”,http://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20090920/NEWS/909200341/-1/NEWSMAP, September 20, 2009
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20127NEW JERSEYThere is no firm aggregate limit on net metering, although the BPU is permitted to allow utilitiesto cease offering net metering if statewide enrolled capacity exceeds 2.5 percent of peak electricdemand. – promotes stationary power applications.10Zero Emissions Vehicle (ZEV) Tax Exemption – ZEVs sold, rented, or leased in New Jersey areexempt from state sales and use tax. This exemption does not apply to partial zero emissionvehicles, including hybrid electric vehicles. ZEVs are defined as vehicles that the California AirResources Board has certified as such. – promotes transportation applications.11Low Emission or Alternative Fuel Bus Acquisition Requirement – All buses the New JerseyTransit Corporation (NJTC) purchases must be: Equipped with improved pollution controls that reduce particulate emissions; or Powered by a fuel other than conventional diesel. Qualifying vehicles include compressednatural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating onbiodiesel or ultra-low sulfur fuel, or vehicles operating on any other bus fuel the U.S.Environmental Protection Agency approves. – promotes transportation applications.1210DSIRE, “New Jersey – Net Metering,”http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NY05R&re=1&ee=1, October, 201111EERE, “Zero Emissions Vehicle (ZEV) Tax Exemption”, http://www.afdc.energy.gov/afdc/laws/law/NJ/5778, October, 201112EERE, “Low Emission or Alternative Fuel Bus Acquisition Requirement”,http://www.afdc.energy.gov/afdc/laws/law/NJ/5493, October, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20128NEW JERSEYECONOMIC IMPACTThe hydrogen and fuel cell industry has direct, indirect, and induced impacts on local and regionaleconomies. 13A new hydrogen and/or fuel cell project directly affects the area’s economy through thepurchase of goods and services, generation of land use revenue, taxes or payments in lieu of taxes, andemployment. Secondary effects include both indirect and induced economic effects resulting from thecirculation of the initial spending through the local economy, economic diversification, changes inproperty values, and the use of indigenous resources.New Jersey is home to at least eight companies that are part of the growing hydrogen and fuel cellindustry supply chain in the Northeast region. Appendix V lists the hydrogen and fuel cell supply chaincompanies New Jersey. Realizing over $26.5 million in revenue and investment from their participationin this regional cluster in 2010, these companies include manufacturing, parts distributing, supplying ofindustrial gas, engineering based research and development (R&D), coating applications, managing ofventure capital funds, etc. 14Furthermore, the hydrogen and fuel cell industry is estimated to havecontributed over $1 million in state and local tax revenue, and approximately $18.6 million in gross stateproduct. Table 1 shows New Jersey’s impact in the Northeast region’s hydrogen and fuel cell industry asof April 2011.Table 1 - New Jersey Economic Data 2011New Jersey Economic DataSupply Chain Members 8Indirect Rev ($M) 18.23Indirect Jobs 66Indirect Labor Income ($M) 5.26Induced Revenue ($M) 8.3Induced Jobs 45Induced Labor Income ($M) 2.64Total Revenue ($M) 26.53Total Jobs 111Total Labor Income ($M) 7.9In addition, there are over 118,000 people employed across 3,500 companies within the Northeastregistered as part of the motor vehicle industry. Approximately 21,813 of these individuals and 794 ofthese companies are located in New Jersey. If newer/emerging hydrogen and fuel cell technology were togain momentum within the transportation sector the estimated employment rate for the hydrogen and fuelcell industry could grow significantly in the region.1513Indirect impacts are the estimated output (i.e., revenue), employment and labor income in other business (i.e., not-OEMs) thatare associated with the purchases made by hydrogen and fuel cell OEMs, as well as other companies in the sector’s supply chain.Induced impacts are the estimated output, employment and labor income in other businesses (i.e., non-OEMs) that are associatedwith the purchases by workers related to the hydrogen and fuel cell industry.14Northeast Electrochemical Energy Storage Cluster Supply Chain Database Search, http://neesc.org/resources/?type=1,September, 201115NAICS Codes: Motor Vehicle – 33611, Motor Vehicle Parts – 3363
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 20129NEW JERSEYResidential24%Commercial26%Industrial12%Transportation38%POTENTIAL STATIONARY TARGETSIn 2009, New Jersey consumed the equivalent of 701.32 million megawatt-hours of energy amongst thetransportation, residential, industrial, and commercial sectors.16Electricity consumption in New Jerseywas approximately 76 million MWh, and is forecasted to grow at a rate of 1.1 percent annually over thenext decade.17;18Figure 1 illustrates the percent of total energy consumed by each sector in new Jersey.A more detailed breakout of energy use is provided in Appendix II.New Jersey relies on both in-state resources and imports of power over the region’s transmission systemto serve electricity to customers. Net electrical demand in New Jersey was 15,986 MW in 2009 and isprojected to increase by approximately 800 MW by 2015. The state’s overall electricity demand isforecasted to grow at a rate of 1.1 percent annually over the next decade. Demand for new electriccapacity as well as a replacement of older less efficient base-load generation facilities is expected. 19Asshown in Figure 2, natural gas was the second most used energy source for electricity consumed in NewJersey for 2009. 2016U.S. Energy Information Administration (EIA), “State Energy Data System”,“http://www.eia.gov/state/seds/hf.jsp?incfile=sep_sum/html/rank_use.html”, August 201117EIA, “Electric Power Annual 2009 – State Data Tables”, www.eia.gov/cneaf/electricity/epa/epa_sprdshts.html, January, 201118ISO New Jersey, “2011 ICAP – RLGF Summary”,http://www.nyiso.com/public/webdocs/committees/bic_icapwg_lftf/meeting_materials/2010-12-09/2011_ICAP_-_RLGF_Summary_V3.pdf, December 9, 201019ISO New Jersey, “Power Trends 2011”,http://www.nyiso.com/public/webdocs/newsroom/power_trends/Power_Trends_2011.pdf, January, 201120EIA, “1990 - 2010 Retail Sales of Electricity by State by Sector by Provider (EIA-861)”,http://www.eia.gov/cneaf/electricity/epa/epa_sprdshts.html, January 4, 2011Figure 1 - Energy Consumption by Sector Figure 2 - Electric Power Generation byPrimary Energy SourceCoal9.7%Petroleum0.4%Natural Gas37.6%Other Gases0.2%Nuclear49.6%OtherRenewables1.3%Other30.9%
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201210NEW JERSEYFuel cell systems have many advantages over other conventional technologies, including:High fuel-to-electricity efficiency (> 40 percent) utilizing hydrocarbon fuels;Overall system efficiency of 85 to 93 percent;Reduction of noise pollution;Reduction of air pollution;Often do not require new transmission;Siting is not controversial; andIf near point of use, waste heat can be captured and used. Combined heat and power (CHP)systems are more efficient and can reduce facility energy costs over applications that use separateheat and central station power systems.21Fuel cells can be deployed as a CHP technology that provides both power and thermal energy, and cannearly double energy efficiency at a customer site, typically from 35 to 50 percent. The value of CHPincludes reduced transmission and distribution costs, reduced fuel use and associated emissions.22Basedon the targets identified within this plan, there is the potential to develop at least approximately 305 MWsof stationary fuel cell generation capacity in New Jersey, which would provide the following benefits,annually:Production of approximately 2.30 million MWh of electricityProduction of approximately 6.20 million MMBTUs of thermal energyReduction of CO2 emissions of approximately 304,000 tons (electric generation only)23For the purpose of this plan, potential applications have been explored with a focus on fuel cells that havea capacity between 300 kW to 400 kW. However, smaller fuel cells are potentially viable for specificapplications. Facilities that have electrical and thermal requirements that closely match the output of thefuel cells potentially provide the best opportunity for the application of a fuel cell. Facilities that may begood candidates for the application of a fuel cell include commercial buildings with potentially highelectricity consumption, selected government buildings, public works facilities, and energy intensiveindustries.Commercial building types with high electricity consumption have been identified as potential locationsfor on-site generation and CHP application based on data from the Energy Information Administration’s(EIA) Commercial Building Energy Consumption Survey (CBECS). These selected building typesmaking up the CBECS subcategory within the commercial industry include:EducationFood SalesFood ServicesInpatient HealthcareLodgingPublic Order & Safety2421FuelCell2000, “Fuel Cell Basics”, www.fuelcells.org/basics/apps.html, July, 201122“Distributed Generation Market Potential: 2004 Update Connecticut and Southwest Connecticut”, ISE, Joel M. Rinebold,ECSU, March 15, 200423Replacement of conventional fossil fuel generating capacity with methane fuel cells could reduce carbon dioxide (CO2)emissions by between approximately 100 and 600 lb/MWh: U.S. Environmental Protection Agency (EPA), eGRID2010 Version1.1 Year 2007 GHG Annual Output Emission Rates, Annual non-baseload output emission rates (NPCC New England), FuelCellEnergy, DFC 300 Product sheet, http://www.fuelcellenergy.com/files/FCE%20300%20Product%20Sheet-lo-rez%20FINAL.pdf,UTC Power, PureCell Model 400 System Performance Characteristics, http://www.utcpower.com/products/purecell400
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201211NEW JERSEYThe commercial building types identified above represent top principal building activity classificationsthat reported the highest value for electricity consumption on a per building basis and have a potentiallyhigh load factor for the application of CHP. Appendix II further defines New Jersey’s estimated electricalconsumption for each sector. As illustrated in Figure 3, these selected building types within thecommercial sector is estimated to account for approximately 16 percent of New Jersey’s total electricalconsumption. Graphical representation of potential targets analyzed are depicted in Appendix I.Figure 3 – New Jersey Electrical Consumption per SectorEducationThere are approximately 1,297 non-public schools and 2,481 public schools (497 of which are consideredhigh schools) in New Jersey.25,26High schools operate for a longer period of time daily due toextracurricular after school activities, such as clubs and athletics. Furthermore, seven of these schoolshave swimming pools, which may make these sites especially attractive because it would increase theutilization of both the electrical and thermal output offered by a fuel cell. There are also 279 colleges anduniversities in New Jersey. Colleges and universities have facilities for students, faculty, administration,and maintenance crews that typically include dormitories, cafeterias, gyms, libraries, and athleticdepartments – some with swimming pools. All 563 of these locations (497 high schools and 66 colleges),are located in communities serviced by natural gas (Appendix I – Figure 1: Education).Educational establishments in other states such as Connecticut and New York have shown interest in fuelcell technology. Examples of existing or planned fuel cell applications include South Windsor HighSchool (CT), Liverpool High School (NY), Rochester Institute of Technology, Yale University,University of Connecticut, and the State University of New York College of Environmental Science andForestry.24As defined by CBECS, Public Order & Safety facilities are: buildings used for the preservation of law and order or publicsafety. Although these sites are usually described as government facilities they are referred to as commercial buildings becausetheir similarities in energy usage with the other building sites making up the CBECS data.25EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html26Public schools are classified as magnets, charters, alternative schools and special facilities
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201212NEW JERSEYTable 2 - Education Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)3,778(21)563(26)73(10)21.9(10)172,660(10)465,030(10)22,791(5)Food SalesThere are over 10,000 businesses in New Jersey known to be engaged in the retail sale of food. Foodsales establishments are potentially good candidates for fuel cells based on their electrical demand andthermal requirements for heating and refrigeration. Approximately 311 of these sites are consideredlarger food sales businesses with approximately 60 or more employees at their site. 27All 311 of theselarge food sales businesses are located in communities serviced by natural gas (Appendix I – Figure 2:Food Sales). 28The application of a large fuel cell (>300 kW) at a small convenience store may not beeconomically viable based on the electric demand and operational requirements; however, a smaller fuelcell may be appropriate.Popular grocery chains such as Price Chopper, Supervalu, Wholefoods, and Stop and Shop have showninterest in powering their stores with fuel cells in Massachusetts, Connecticut, and New Jersey.29Inaddition, grocery distribution centers, like the one operated by Restaurant Depot in Secaucus, New Jersey,and the CVS’s distribution center located in Lumberton, New Jersey, are prime targets for the applicationof hydrogen and fuel cell technology for both stationary power and material handling equipment.Table 3 - Food Sales Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)10,000(19)311(26)311(26)93.3(26)735,577(26)1,981,155(26)97,096(15)Food ServiceThere are over 13,000 businesses in New Jersey that can be classified as food service establishments usedfor the preparation and sale of food and beverages for consumption.30Approximately 79 of these sites areconsidered larger restaurant businesses with approximately 130 or more employees at their site and arelocated in communities serviced by natural gas (Appendix I – Figure 3: Food Services).31The applicationof a large fuel cell (>300 kW) at smaller restaurants with less than 130 workers may not be economicallyviable based on the electric demand and operational requirements; however, a smaller fuel cell ( 5 kW)may be appropriate to meet hot water and space heating requirements. A significant portion (18 percent)of the energy consumed in a commercial food service operation can be attributed to the domestic hotwater heating load.32In other parts of the U.S., popular chains, such as McDonalds, are beginning to show27On average, food sale facilities consume 43,000 kWh of electricity per worker on an annual basis. When compared to currentfuel cell technology (>300 kW), which satisfies annual electricity consumption loads between 2,628,000 – 3,504,000 kWh,calculations show food sales facilities employing more than 61 workers may represent favorable opportunities for the applicationof a larger fuel cell.28EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html29Clean Energy States Alliance (CESA), “Fuel Cells for Supermarkets – Cleaner Energy with Fuel Cell Combined Heat andPower Systems”, Benny Smith, www.cleanenergystates.org/assets/Uploads/BlakeFuelCellsSupermarketsFB.pdf30EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html31On average, food service facilities consume 20,300 kWh of electricity per worker on an annual basis. Current fuel celltechnology (>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculations showfood service facilities employing more than 130 workers may represent favorable opportunities for the application of a larger fuelcell.32“Case Studies in Restaurant Water Heating”, Fisher, Donald, http://eec.ucdavis.edu/ACEEE/2008/data/papers/9_243.pdf, 2008
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201213NEW JERSEYan interest in the smaller sized fuel cell units for the provision of electricity and thermal energy, includingdomestic water heating at food service establishments.33Table 4 - Food Services Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)13,000(20)79(20)79(20)23.7(20)186,851(20)503,251(20)24,664(8)Inpatient HealthcareThere are over 800 inpatient healthcare facilities in New Jersey; 104 of which are classified as hospitals.34Of these 104 locations, 81 are located in communities serviced by natural gas and contain 100 or morebeds onsite (Appendix I – Figure 4: Inpatient Healthcare). Hospitals represent an excellent opportunityfor the application of fuel cells because they require a high availability factor of electricity for lifesavingmedical devices and operate 24/7 with a relatively flat load curve. Furthermore, medical equipment,patient rooms, sterilized/operating rooms, data centers, and kitchen areas within these facilities are oftenrequired to be in operational conditions at all times which maximizes the use of electricity and thermalenergy from a fuel cell. Nationally, hospital energy costs have increased 56 percent from $3.89 persquare foot in 2003 to $6.07 per square foot for 2010, partially due to the increased cost of energy.35Examples of healthcare facilities with planned or operational fuel cells include St. Francis, Stamford, andWaterbury hospitals in Connecticut, and North Central Bronx Hospital in New York.Table 5 - Inpatient Healthcare Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)822(21)81(20)81(20)24.3(20)191,581(20)515,992(20)25,289(11)33Sustainable business Oregon, “ClearEdge sustains brisk growth”,http://www.sustainablebusinessoregon.com/articles/2010/01/clearedge_sustains_brisk_growth.html, May 8, 201134EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.html35BetterBricks, “http://www.betterbricks.com/graphics/assets/documents/BB_Article_EthicalandBusinessCase.pdf”, Page 1,August 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201214NEW JERSEYOfficeEquipment, 4%Ventilation, 4%Refrigeration, 3%Lighting, 11%Cooling, 13%Space Heating ,33%Water Heating ,18%Cooking, 5% Other, 9%LodgingThere are over 1,153 establishmentsspecializing in travel/lodging accommodationsthat include hotels, motels, or inns in New Jersey.Approximately 166 of these establishments have150 or more rooms onsite, and can be classified as“larger sized” lodging that may have additionalattributes, such as heated pools, exercise facilities,and/or restaurants. 36Of these 166 locations, 104employ more than 94 workers and are located incommunities serviced by natural gas. 37As shownin Figure 4, more than 60 percent of total energyuse at a typical lodging facility is due to lighting,space heating, and water heating. 38Theapplication of a large fuel cell (>300 kW) athotel/resort facilities with less than 94 employeesmay not be economically viable based on theelectrical demand and operational requirement;however, a smaller fuel cell ( 5 kW) may beappropriate.Atlantic City is considered the second largestcommercial gaming center in the U.S., where casinos and gaming overlap with the hotel and lodgingindustry. Hotel and entertainment companies are seeing the most revenue opportunities from theexpansion of retail facilities, resort residential development, theme parks, and spas. An example of thismodel for new resort facilities is the Atlantic City’s Marina District, Borgata Hotel Casino and Spa.39New Jersey also has 358 facilities identified as convalescent homes, 142 of which have bed capacitiesgreater than, or equal to 150 units and are located in communities serviced by natural gas (Appendix I –Figure 5: Lodging). 40Table 6 - Lodging Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)1,511(19)246(28)246(28)6.6(28)52,034(28)140,146(28)76,803(16)Public Order and SafetyThere are approximately 860 facilities in New Jersey that can be classified as public order and safety,which includes 347 fire stations, 486 police stations, 14 state police stations, and 13 prisons. 41,4236EPA, “CHP in the Hotel and Casino Market Sector”, www.epa.gov/chp/documents/hotel_casino_analysis.pdf, December, 200537On average lodging facilities consume 28,000 kWh of electricity per worker on an annual basis. Current fuel cell technology(>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculations show lodgingfacilities employing more than 94 workers may represent favorable opportunities for the application of a larger fuel cell.38National Grid, “Managing Energy Costs in Full-Service Hotels”,www.nationalgridus.com/non_html/shared_energyeff_hotels.pdf, 200439EPA, “CHP in the Hotel and Casino Market Sector”, http://www.epa.gov/chp/documents/hotel_casino_analysis.pdf,December, 200540Assisted-Living-List, “List of 360 Nursing Homes in New Jersey (NJ)”, http://assisted-living-list.com/nj--nursing-homes/,October, 201141EIA, Description of CBECS Building Types, www.eia.gov/emeu/cbecs/building_types.htmlFigure 4 - U.S. Lodging, Energy Consumption
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201215NEW JERSEYApproximately 35 of these locations employ more than 210 workers and are located in communitiesserviced by natural gas.43,44These applications may represent favorable opportunities for the applicationof a larger fuel cell (>300 kW), which could provide heat and uninterrupted power.,45The sites identified(Appendix I – Figure 6: Public Order and Safety) will have special value to provide increased reliability tomission critical facilities associated with public safety and emergency response during grid outages. Theapplication of a large fuel cell (>300 kW) at public order and safety facilities with less than 210employees may not be economically viable based on the electrical demand and operational requirement;however, a smaller fuel cell ( 5 kW) may be appropriate. Central Park Police Station in New York City,New York is presently powered by a 200 kW fuel cell system.Table 7 - Public Order and Safety Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)860(26)35(11)35(11)10.5(11)82,782(11)222,960(11)10,927(6)Energy Intensive IndustriesAs shown in Table 3, energy intensive industries with high electricity consumption (which on average is4.8 percent of annual operating costs) have been identified as potential locations for the application of afuel cell.46In New Jersey, there are approximately 1,207 of these industrial facilities that are involved inthe manufacture of aluminum, chemicals, forest products, glass, metal casting, petroleum, coal productsor steel and employ 25 or more employees.47All 1,207 locations are located in communities serviced bynatural gas. (Appendix I – Figure 7: Energy Intensive Industries)Table 8 - 2002 Data for the Energy Intensive Industry by Sector48NAICS Code Sector Energy Consumption per Dollar Value of Shipments (kWh)325 Chemical manufacturing 2.49322 Pulp and Paper 4.46324110 Petroleum Refining 4.72311 Food manufacturing 0.76331111 Iron and steel 8.15321 Wood Products 1.233313 Alumina and aluminum 3.58327310 Cement 16.4133611 Motor vehicle manufacturing 0.213315 Metal casting 1.64336811 Shipbuilding and ship repair 2.053363 Motor vehicle parts manufacturing 2.0542USACOPS – The Nations Law Enforcement Site, www.usacops.com/me/43CBECS,“Table C14”, http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set19/2003pdf/alltables.pdf,November, 201144On average public order and safety facilities consume 12,400 kWh of electricity per worker on an annual basis. Current fuelcell technology (>300 kW) can satisfy annual electricity consumption loads between 2,628,000 – 3,504,000 kWh. Calculationsshow public order and safety facilities employing more than 212 workers may represent favorable opportunities for theapplication of a larger fuel cell.45CBECS,“Table C14”, http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set19/2003pdf/alltables.pdf,November, 201146EIA, “Electricity Generation Capability”, 1999 CBECS, www.eia.doe.gov/emeu/cbecs/pba99/comparegener.html47Proprietary market data48EPA, “Energy Trends in Selected Manufacturing Sectors”, www.epa.gov/sectors/pdf/energy/ch2.pdf, March 2007
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201216NEW JERSEYCompanies such as Coca-Cola, Johnson & Johnson, and Pepperidge Farms in Connecticut, New Jersey,and New York have installed fuel cells to help supply energy to their facilities.Table 9 - Energy Intensive Industry Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)1,207(25)121(28)121(28)36.3(28)286,189(28)770,803(28)37,777(17)Government Owned BuildingsBuildings operated by the federal government can be found at 181 locations in New Jersey;approximately 11 of these properties are actively owned, rather than leased, by the federal governmentand are located in communities serviced by natural gas (Appendix I – Figure 8: Federal GovernmentOperated Buildings). There are also a number of buildings owned and operated by the State of NewJersey. The application of fuel cell technology at government owned buildings would assist in balancingload requirements at these sites and offer a unique value for active and passive public educationassociated with the high usage of these public buildings.Table 10 - Government Owned Building Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)181(14)11(12)11(12)3.3(12)26,017(12)70,073(12)3,434(7)Wireless Telecommunication SitesTelecommunications companies rely on electricity to run call centers, cell phone towers, and other vitalequipment. In New Jersey, there are more than 598 telecommunications and/or wireless company towersites (Appendix I – Figure 9: Telecommunication Sites). Any loss of power at these locations may resultin a loss of service to customers; thus, having reliable power is critical. Each individual site represents anopportunity to provide back-up power for continuous operation through the application of on-site back-upgeneration powered by hydrogen and fuel cell technology. It is an industry standard to install unitscapable of supplying 48-72 hours of back-up power, which is typically accomplished with batteries orconventional emergency generators.49The deployment of fuel cells at selected telecommunication siteswill have special value to provide increased reliability to critical sites associated with emergencycommunications and homeland security. An example of a telecommunication site that utilizes fuel celltechnology to provide back-up power is a T-Mobile facility located in Storrs, Connecticut.Table 11 -Wireless Telecommunication Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)598(15)60(15)N/A N/A N/A N/A N/AWastewater Treatment Plants (WWTPs)There are 51 WWTPs in New Jersey that have design flows ranging from 12,000 gallons per day (GPD)to 124 million gallons per day (MGD); 18 of these facilities average between 3 – 124 MGD. WWTPstypically operate 24/7 and may be able to utilize the thermal energy from the fuel cell to process fats, oils,49ReliOn, Hydrogen Fuel Cell: Wireless Applications”, www.relion-inc.com/pdf/ReliOn_AppsWireless_2010.pdf, May 4, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201217NEW JERSEYand grease.50WWTPs account for approximately three percent of the electric load in the United State.51Digester gas produced at WWTP’s, which is usually 60 percent methane, can serve as a fuel substitute fornatural gas to power fuel cells. Anaerobic digesters generally require a wastewater flow greater thanthree MGD for an economy of scale to collect and use the methane.52Most facilities currently represent alost opportunity to capture and use the digestion of methane emissions created from their operations. 53,54(Appendix I – Figure 10: Solid and Liquid Waste Sites)A 200 kW fuel cell power plant in Yonkers, New York, was the world’s first commercial fuel cell to runon a waste gas created at a wastewater treatment plant. The fuel cell generates about 1,600 MWh ofelectricity a year, and reduces methane emissions released to the environment.55A 200 kW fuel cellpower plant was also installed at the Water Pollution Control Authority’s WWTP in New Haven,Connecticut, and produces 10 – 15 percent of the facility’s electricity, reducing energy costs by almost$13,000 a year.56Table 12 - Wastewater Treatment Plant Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)51(9)2(13)2(13)0.6(13)4,730(13)12,741(13)624(7)Landfill Methane Outreach Program (LMOP)There are 21 landfills in New Jersey identified by the Environmental Protection Agency (EPA) throughtheir LMOP program: 15 of which are operational, three are candidates, and four are considered potentialsites for the production and recovery of methane gas. 57,58The amount of methane emissions released by agiven site is dependent upon the amount of material in the landfill and the amount of time the material hasbeen in place. Similar to WWTPs, methane emissions from landfills could be captured and used as a fuelto power a fuel cell system. In 2009, municipal solid waste (MSW) landfills were responsible forproducing approximately 17 percent of human-related methane emissions in the nation. These locationscould produce renewable energy and help manage the release of methane. (Appendix I – Figure 10: Solidand Liquid Waste Sites).Table 13 - Landfill Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)21(10)1(7)1(7)0.3(7)2,365(7)6,370(7)312(4)Airports50“Beyond Zero Net Energy: Case Studies of Wastewater Treatment for Energy and Resource Production”, Toffey, Bill,September 2010, http://www.awra-pmas.memberlodge.org/Resources/Documents/Beyond_NZE_WWT-Toffey-9-16-2010.pdf51EPA, Wastewater Management Fact Sheet, “Introduction”, July, 200652EPA, Wastewater Management Fact Sheet, www.p2pays.org/energy/WastePlant.pdf, July, 200653“GHG Emissions from Wastewater Treatment and Biosolids Management”, Beecher, Ned, November 20, 2009,www.des.state.nh.us/organization/divisions/water/wmb/rivers/watershed_conference/documents/2009_fri_climate_2.pdf54EPA, Wastewater Management Fact Sheet, www.p2pays.org/energy/WastePlant.pdf, May 4, 201155NYPA, “WHAT WE DO – Fuel Cells”, www.nypa.gov/services/fuelcells.htm, August 8, 201156Conntact.com, “City to Install Fuel Cell”,http://www.conntact.com/archive_index/archive_pages/4472_Business_New_Haven.html, August 15, 200357Due to size, individual sites may have more than one potential, candidate, or operational project.58LMOP defines a candidate landfill as “one that is accepting waste or has been closed for five years or less, has at least onemillion tons of waste, and does not have an operational or, under-construction project.”EPA, “Landfill Methane OutreachProgram”, www.epa.gov/lmop/basic-info/index.html, April 7, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201218NEW JERSEYDuring peak air travel times in the U.S., there are approximately 50,000 airplanes in the sky each day.Ensuring safe operations of commercial and private aircrafts are the responsibility of air trafficcontrollers. Modern software, host computers, voice communication systems, and instituted full scaleglide path angle capabilities assist air traffic controllers in tracking and communicating with aircrafts;59consequently, reliable electricity is extremely important.There are approximately 118 airports in New Jersey, including 49 that are open to the public and havescheduled services. Of those 49 airports, three (Table 3) have 2,500 or more passengers enplaned eachyear and are located in communities serviced by natural gas. (See Appendix I – Figure 11: CommercialAirports). An example, of an airport currently hosting a fuel cell power plant to provide backup power isAlbany International Airport located in Albany, New York.Table 14 – New Jersey Top Airports Enplanement CountAirport60Total Enplanement in 2000Newark International 17,212,226Atlantic City International 429,788Trenton Mercer 77,466Atlantic City International (ACY), Trenton Mercer (TTN), and Woodbine Municipal (OBI) Airports arefacilities where the military department authorizes use of the military runway for public airport services.Army Aviation Support Facilities (AASF), located at these sites are used by the Army to provide aircraftand equipment readiness, train and utilize military personnel, conduct flight training and operations, andperform field level maintenance. Atlantic City International (ACY), Trenton Mercer (TTN), andWoodbine Municipal (OBI) may represent favorable opportunities for the application of uninterruptiblepower for necessary services associated with national defense and emergency response. Furthermore, allof these sites are located in communities serviced by natural gas (Appendix I – Figure 11: CommercialAirports).Table 15 - Airport Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)101(12)4(3)(1)4(1)1.2(1)9,461(1)25,481(1)1,249(8)59Howstuffworks.com, “How Air Traffic Control Works”, Craig, Freudenrich,http://science.howstuffworks.com/transport/flight/modern/air-traffic-control5.htm, May 4, 201160Bureau of Transportation Statistics, “New Jersey Transportation Profile”,www.bts.gov/publications/state_transportation_statistics/new_Jersey/pdf/entire.pdf, October, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201219NEW JERSEYMilitaryThe U.S. Department of Defense (DOD) is the largest funding organization in terms of supporting fuelcell activities for military applications in the world. DOD is using fuel cells for:Stationary units for power supply in bases.Fuel cell units in transport applications.Portable units for equipping individual soldiers or group of soldiers.In a collaborative partnership with the DOE, the DOD plans to install and operate 18 fuel cell backuppower systems at eight of its military installations, two of which are located within the Northeast region(New Jersey and New Jersey). In addition, Fort Dix, McGuire Air Force Base (AFB), Naval AirEngineering Station (NAES), Naval Weapons Station (NWS) Earle and Picatinny Arsenal, all in NewJersey, are potential sites for the application of hydrogen and fuel cell technology.61Table 16 - Military Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)5(36)5(36)5(36)1.5(36)11,826(36)31,851(36)1,561(22)61Naval Submarine Base New London, “New London Acreage and Buildings”,http://www.cnic.navy.mil/NewLondon/About/AcreageandBuildings/index.htm, September 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201220NEW JERSEYPOTENTIAL TRANSPORTATION TARGETSTransportation is responsible for one-fourth of the total global GHG emissions and consumes 75 percentof the world’s oil production. In 2010, the U.S. used 21 million barrels of non-renewable petroleum eachday. Roughly 29 percent of New Jersey’s energy consumption is due to demands of the transportationsector, including gasoline and on-highway diesel petroleum for automobiles, cars, trucks, and buses. Asmall percent of non-renewable petroleum is used for jet and ship fuel.62The current economy in the U.S. is dependent on hydrocarbon energy sources and any disruption orshortage of this energy supply will severely affect many energy related activities, includingtransportation. As oil and other non-sustainable hydrocarbon energy resources become scarce, energyprices will increase and the reliability of supply will be reduced. Government and industry are nowinvestigating the use of hydrogen and renewable energy as a replacement of hydrocarbon fuels.Hydrogen-fueled fuel cell electric vehicles (FCEVs) have many advantages over conventionaltechnology, including:Quiet operation;Near zero emissions of controlled pollutants such as nitrous oxide, carbon monoxide,hydrocarbon gases or particulates;Substantial (30 to 50 percent) reduction in GHG emissions on a well-to-wheel basis compared toconventional gasoline or gasoline-hybrid vehicles when the hydrogen is produced byconventional methods such as natural gas; and 100 percent when hydrogen is produced from aclean energy source;Ability to fuel vehicles with indigenous energy sources which reduces dependence on importedenergy and adds to energy security; andHigher efficiency than conventional vehicles (See Table 4).63,64Table 17 - Average Energy Efficiency of Conventional and Fuel Cell Vehicles (mpge65)Passenger Car Light Truck Transit BusHydrogen Gasoline Hybrid Gasoline Hydrogen Gasoline Hydrogen Fuel Cell Diesel52 50 29.3 49.2 21.5 5.4 3.9FCEVs can reduce price volatility, dependence on oil, improve environmental performance, and providegreater efficiencies than conventional transportation technologies, as follows:Replacement of gasoline-fueled passenger vehicles and light duty trucks, and diesel-fueled transitbuses with FCEVs could result in annual CO2 emission reductions (per vehicle) of approximately10,170, 15,770, and 182,984 pounds per year, respectively.6662“US Oil Consumption to BP Spill”, http://applesfromoranges.com/2010/05/us-oil-consumption-to-bp-spill/, May31, 201063“Challenges for Sustainable Mobility and Development of Fuel Cell Vehicles”, Masatami Takimoto, Executive Vice President,Toyota Motor Corporation, January 26, 2006. Presentation at the 2ndInternational Hydrogen & Fuel Cell Expo TechnicalConference Tokyo, Japan64“Twenty Hydrogen Myths”, Amory B. Lovins, Rocky Mountain Institute, June 20, 200365Miles per Gallon Equivalent66Fuel Cell Economic Development Plan, Connecticut Department of Economic and Community Development and theConnecticut Center for Advanced Technology, Inc, January 1, 2008, Calculations based upon average annual mileage of 12,500miles for passenger car and 14,000 miles for light trucks (U.S. EPA) and 37,000 average miles/year per bus (U.S. DOT FTA,2007)
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201221NEW JERSEYReplacement of gasoline-fueled passenger vehicles and light duty trucks, and diesel-fueled transitbuses with FCEVs could result in annual energy savings (per vehicle) of approximately 230gallons of gasoline (passenger vehicle), 485 gallons of gasoline (light duty truck) and 4,390gallons of diesel (bus).Replacement of gasoline-fueled passenger vehicles, light duty trucks, and diesel-fueled transitbuses with FCEVs could result in annual fuel cost savings of approximately $885 per passengervehicle, $1,866 per light duty truck, and $17,560 per bus.67Automobile manufacturers such as Toyota, General Motors, Honda, Daimler AG, and Hyundai haveprojected that models of their FCEVs will begin to roll out in larger numbers by 2015. Longer term, theU.S. DOE has projected that between 15.1 million and 23.9 million light duty FCEVs may be sold eachyear by 2050 and between 144 million and 347 million light duty FCEVs may be in use by 2050 with atransition to a hydrogen economy. These estimates could be accelerated if political, economic, energysecurity or environmental polices prompt a rapid advancement in alternative fuels.68Strategic targets for the application of hydrogen for transportation include alternative fueling stations;New Jersey Department of Transportation (NJDOT) refueling stations; bus transits operations;government, public, and privately owned fleets; and material handling and airport ground supportequipment (GSE). Graphical representation of potential targets analyzed are depicted in Appendix I.Alternative Fueling StationsThere are approximately 3,300 retail fuel stations in New Jersey;69however, only 44 public and/or privatestations within the state provide alternative fuels, such as biodiesel, compressed natural gas, propane,ethanol, and/or electricity for alternative-fueled vehicles.70There are also at least 60 fuel dispensingstations owned and operated by NJDOT that can be used by authorities operating federal and state safetyvehicles, state transit vehicles, and employees of universities that operate fleet vehicles on a regular basis.71Implementation of hydrogen fueling at alternative fuel stations and at selected locations owned andoperated by NJDOT would help facilitate the deployment of FCEVs within the state (See Appendix I –Figure 12: Alternative Fueling Stations).Currently, there are no publicly or privately accessible transportation fueling stations where hydrogen isprovided as an alternative fuel in New Jersey. However, there are approximately 16 existing or plannedtransportation fueling stations in the Northeast region where hydrogen is provided as an alternativefuel.72,73,7467U.S. EIA, Weekly Retail Gasoline and Diesel Prices: gasoline - $3.847 and diesel – 4.00,www.eia.gov/dnav/pet/pet_pri_gnd_a_epm0r_pte_dpgal_w.htm68Effects of a Transition to a Hydrogen Economy on Employment in the United States: Report to Congress,http://www.hydrogen.energy.gov/congress_reports.html, August 201169“Public retail gasoline stations state year” www.afdc.energy.gov/afdc/data/docs/gasoline_stations_state.xls, May 5, 201170Alternative Fuels Data Center, www.afdc.energy.gov/afdc/locator/stations/71EPA, “Government UST Noncompliance Report-2007”, www.epa.gov/oust/docs/ME%20Compliance%20Report.pdf, August8,200772Alternative Fuels Data Center, http://www.afdc.energy.gov/afdc/locator/stations/73Hyride, “About the fueling station”, http://www.hyride.org/html-about_hyride/About_Fueling.html74CTTransit, “Hartford Bus Facility Site Work (Phase 1)”,www.cttransit.com/Procurements/Display.asp?ProcurementID={8752CA67-AB1F-4D88-BCEC-4B82AC8A2542}, March, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201222NEW JERSEYFleetsThere are over 13,000 fleet vehicles (excluding state and federal vehicles) classified as non-leasing orcompany owned vehicles in New Jersey. 75Fleet vehicles typically account for more than twice theamount of mileage, and therefore twice the fuel consumption and emissions, compared to personalvehicles on a per vehicle basis. There is an additional 12,409 passenger automobiles and/or light dutytrucks in New Jersey, owned by state and federal agencies (excluding state police) that traveled acombined 95,820,256 miles in 2010, while releasing 7,764 metrics tons of CO2. 76Conversion of fleetvehicles from conventional fossil fuels to FCEVs could significantly reduce petroleum consumption andGHG emissions. Fleet vehicle hubs may be good candidates for hydrogen refueling and conversion toFCEVs because they mostly operate on fixed routes or within fixed districts and are fueled from acentralized station.Bus TransitThere are approximately 3,250 directly operated buses that provide public transportation services in NewJersey operated across 13 companies located within the State.77As discussed above, replacement of aconventional diesel transit bus with fuel cell transit bus would result in the reduction of CO2 emissions(estimated at approximately 183,000 pounds per year), and reduction of diesel fuel (estimated atapproximately 4,390 gallons per year).78Although the efficiency of conventional diesel buses hasincreased, conventional diesel buses, which typically achieve fuel economy performance levels of 3.9miles per gallon, have the greatest potential for energy savings by using high efficiency fuel cells. Otherstate have also begun the transition of fueling transit buses with alternative fuels such as hydrogen andnatural gas to improve efficiency and environmental performance.Material HandlingMaterial handling equipment such as forklifts are used by a variety of industries, includingmanufacturing, construction, mining, agriculture, food, retailers, and wholesale trade to move goodswithin a facility or to load goods for shipping to another site. Material handling equipment is usuallybattery, propane or diesel powered. Batteries that currently power material handling equipment are heavyand take up significant storage space while only providing up to 6 hours of run time. Fuel cells canensure constant power delivery and performance, eliminating the reduction in voltage output that occursas batteries discharge. Fuel cell powered material handling equipment last more than twice as long (12-14 hours) and also eliminate the need for battery storage and charging rooms, leaving more space forproducts. In addition, fueling time only takes two to three minutes by the operator compared to least 20minutes or more for each battery replacement (assuming one is available), which saves the operatorvaluable time and increases warehouse productivity.In addition, fuel cell powered material handling equipment has significant cost advantages, compared tobatteries, such as:1.5 times lower maintenance cost;8 times lower refueling/recharging labor cost;2 times lower net present value of total operations and management (O&M) system cost; and75Fleet.com, “2009-My Registration”, http://www.automotive-fleet.com/Statistics/StatsViewer.aspx?file=http%3a%2f%2fwww.automotive-fleet.com%2ffc_resources%2fstats%2fAFFB10-16-top10-state.pdf&channel76U.S. General Services Administration, “GSA 2010 2010 Fleet Reports”, Table 4-2,77NTD Date, “TS2.2 - Service Data and Operating Expenses Time-Series by System”,http://www.ntdprogram.gov/ntdprogram/data.htm, December 201178Fuel Cell Economic Development Plan, Connecticut Department of Economic and Community Development and theConnecticut Center for Advanced Technology, Inc, January 1, 2008.
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201223NEW JERSEY63 percent less emissions of GHG. Appendix IX provides a comparison of PEM fuel cell andbattery-powered material handling equipment.Fuel cell powered material handling equipment is already in use at dozens of warehouses, distributioncenters, and manufacturing plants in North America.79Large corporations that are currently using orplanning to use fuel cell powered material handling equipment include CVS, Coca-Cola, BMW, CentralGrocers, and Wal-Mart. (Refer to Appendix VIII for a partial list of companies in North America that usefuel cell powered forklifts).80There are approximately 82 distribution centers/warehouse sites that havebeen identified in New Jersey that may benefit from the use of fuel cell powered material handlingequipment (Appendix I – Figure 13: Distribution Centers/Warehouses).Ground Support EquipmentGround support equipment (GSE) such as catering trucks, deicers, and airport tugs can be batteryoperated or more commonly run on diesel or gasoline. As an alternative, hydrogen-powered tugs arebeing developed for both military and commercial applications. While their performance is similar to thatof other battery-powered equipment, a fuel cell-powered GSE remains fully charged (provided there ishydrogen fuel available) and do not experience performance lag at the end of a shift like battery-poweredGSEs.81Potential large end-users of GSE that serve New Jersey’s largest airports include Air Canada,Delta Airlines, Continental, JetBlue, United, and US Airways (Appendix I – Figure 11: CommercialAirports).82PortsPorts in New York/New Jersey, Elizabeth, and Perth Amboy, which service large vessels, such ascontainer ships, tankers, bulk carriers, and cruise ships, may be candidates for improved energymanagement. The Port of New York/New Jersey handles cargo such as, roll on-roll off automobiles,liquid and dry bulk, break-bulk and specialized project cargo.83With a daily average of 9,799 in twenty-foot equivalent units (TEU), the Port of New York/New Jersey ranked 22ndon the list of the world’s topcontainer ports and 3rdin the United States.84In one year, a single large container ship can emit pollutants equivalent to that of 50 million cars. Thelow grade bunker fuel used by the worlds 90,000 cargo ships contains up to 2,000 times the amount ofsulfur compared to diesel fuel used in automobiles.85While docked, vessels shut off their main enginesbut use auxiliary diesel and steam engines to power refrigeration, lights, pumps, and other functions, aprocess called “cold-ironing.” An estimated one-third of ship emissions occur while they are idling atberth. Replacing auxiliary engines with on-shore electric power could significantly reduce emissions.The applications of fuel cell technology at ports may also provide electrical and thermal energy forimproving energy management at warehouses, and equipment operated between terminals (Appendix I –Figure 13: Distribution Centers/Warehouses & Ports).8679DOE EERE, “Early Markets: Fuel Cells for Material Handling Equipment”,www1.eere.energy.gov/hydrogenandfuelcells/education/pdfs/early_markets_forklifts.pdf, February 201180Plug Power, “Plug Power Celebrates Successful year for Company’s Manufacturing and Sales Activity”,www.plugpower.com, January 4, 201181Battelle, “Identification and Characterization of Near-Term Direct Hydrogen Proton Exchange Membrane Fuel Cell Markets”,April 2007, www1.eere.energy.gov/hydrogenandfuelcells/pdfs/pemfc_econ_2006_report_final_0407.pdf82PWM, “Airlines”, http://www.portlandjetport.org/airlines, August 24, 201183Panynj.gov/port, http://www.panynj.gov/port/, September 201184Bts.gov, “America’s Container Ports, Page 17”,http://www.bts.gov/publications/americas_container_ports/2011/pdf/entire.pdf, January, 201185“Big polluters: one massive container ship equals 50 million cars”, Paul, Evans; http://www.gizmag.com/shipping-pollution/11526/, April 23,200986Savemayportvillage.net, “Cruise Ship Pollution”, http://www.savemayportvillage.net/id20.html, October, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201224NEW JERSEYTable 18 - Ports Data BreakdownStateTotalSitesPotentialSitesFC Units(300 Kw)MWsMWhrs(per year)Thermal Output(MMBTU)CO2 emissions(ton per year)NJ(% of Region)13(11)5(26)5(26)1.5(26)11,826(26)31,851(26)1,561(15)
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201225NEW JERSEYCONCLUSIONHydrogen and fuel cell technology offers significant opportunities for improved energy reliability, energyefficiency, and emission reductions. Large fuel cell units (>300 kW) may be appropriate for applicationsthat serve large electric and thermal loads. Smaller fuel cell units (< 300 kW) may provide back-up powerfor telecommunication sites, restaurants/fast food outlets, and smaller sized public facilities at this time.Table 19 –Summary of Potential Fuel Cell ApplicationsCategory Total SitesPotentialSites87Number of FuelCells< 300 kWNumber ofFuel Cells>300 kWCBECSDataEducation 3,778 56388490 73Food Sales 10,000+ 31189311Food Services 13,000+ 799079Inpatient Healthcare 822 819181Lodging 1,511 24692246Public Order & Safety 860 359335Energy Intensive Industries 1,207 12194121Government OperatedBuildings181 119511WirelessTelecommunicationTowers59896609760WWTPs 51 2982Landfills 21 1991Airports (w/ AASF) 101 4 (3) 1004Military 5 5 5Ports 13 5 5Total 32,148 1,524 550 974As shown in Table 5, the analysis provided here estimates that there are approximately 1,524 potentiallocations, which may be favorable candidates for the application of a fuel cell to provide heat and power.Assuming the demand for electricity was uniform throughout the year, approximately 726 to 974 fuel cell87Additional information regarding each identified location is available upon request88563 high schools and/or college and universities located in communities serviced by natural gas89311 food sale facilities located in communities serviced by natural gas90Ten percent of the 1,714 food service facilities located in communities serviced by natural gas9181 Hospitals located in communities serviced by natural gas and occupying 100 or more beds onsite92160 hotel facilities with 100+ rooms onsite and 142 convalescent homes with 150+ bed onsite located in communities servicedby natural gas93Correctional facilities and/or other public order and safety facilities with 212 workers or more.94Ten percent of the 1,207 energy intensive industry facilities located in communities with natural gas.9511 actively owned federal government operated building located in communities serviced by natural gas96The Federal Communications Commission regulates interstate and international communications by radio, television, wire,satellite and cable in all 50 states, the District of Columbia and U.S. territories.97Ten percent of the 598 wireless telecommunication sites in New Jersey targeted for back-up PEM fuel cell deployment98Ten percent of New Jersey WWTP with average flows of 3.0+ MGD99Ten percent of the landfills targeted based on LMOP data100Airports facilities with 2,500+ annual Enplanement Counts and/or with AASF
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201226NEW JERSEYunits, with a capacity of 300 – 400 kW, could be deployed for a total fuel cell capacity of 305 to 390MWs.If all suggested targets are satisfied by fuel cell(s) installations with 300 kW, a minimum of 2.30 millionMWh electric and 6.20 million MMBTUs (equivalent to 1.82 million MWh) of thermal energy would beproduced, which could reduce CO2 emissions by at least 303,881 tons per year.101New Jersey can also benefit from the use of hydrogen and fuel cell technology for transportation such aspassenger fleets, transit district fleets, municipal fleets and state department fleets. The application ofhydrogen and fuel cell technology for transportation would reduce the dependence on oil, improveenvironmental performance and provide greater efficiencies than conventional transportationtechnologies.• Replacement of a gasoline-fueled passenger vehicle with FCEVs could result in annual CO2emission reductions (per vehicle) of approximately 10,170 pounds, annual energy savings of 230gallons of gasoline, and annual fuel cost savings of $885.• Replacement of a gasoline-fueled light duty truck with FCEVs could result in annual CO2emission reductions (per light duty truck) of approximately 15,770 pounds, annual energy savingsof 485 gallons of gasoline, and annual fuel cost savings of $1866.• Replacement of a diesel-fueled transit bus with a fuel cell powered bus could result in annual CO2emission reductions (per bus) of approximately 182,984 pounds, annual energy savings of 4,390gallons of fuel, and annual fuel cost savings of $17,560.Hydrogen and fuel cell technology also provides significant opportunities for job creation and/oreconomic development. Realizing over $2 million in revenue and investment in 2010, the hydrogen andfuel cell industry in New Jersey is estimated to have contributed approximately $113,000 in state andlocal tax revenue, and over $2.9 million in gross state product. Currently, there are at least 8 New Jerseycompanies that are part of the growing hydrogen and fuel cell industry supply chain in the Northeastregion. If newer/emerging hydrogen and fuel cell technology were to gain momentum, the number ofcompanies and employment for the industry could grow substantially.101If all suggested targets are satisfied by fuel cell(s) installations with 400 kW, a minimum of 3.25 million MWh electric and15.22 million MMBTUs (equivalent to 4.46 million MWh) of thermal energy would be produced, which could reduce CO2emissions by at least 428,417 tons per year.
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201227NEW JERSEYAPPENDICES
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201228NEW JERSEYAppendix I – Figure 1: Education
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201229NEW JERSEYAppendix I – Figure 2: Food Sales
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201230NEW JERSEYAppendix I – Figure 3: Food Services
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201231NEW JERSEYAppendix I – Figure 4: Inpatient Healthcare
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201232NEW JERSEYAppendix I – Figure 5: Lodging
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201233NEW JERSEYAppendix I – Figure 6: Public Order and Safety
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201234NEW JERSEYAppendix I – Figure 7: Energy Intensive Industries
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201235NEW JERSEYAppendix I – Figure 8: Federal Government Operated Buildings
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201236NEW JERSEYAppendix I – Figure 9: Telecommunication Sites
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201237NEW JERSEYAppendix I – Figure 10: Municipal Waste Sites
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201238NEW JERSEYAppendix I – Figure 11: Commercial Airports
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201239NEW JERSEYAppendix I – Figure 12: Alternative Fueling Stations
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201240NEW JERSEYAppendix I – Figure 13: Distribution Centers/Warehouses & Ports
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201241NEW JERSEYAppendix II – New Jersey Estimated Electrical Consumption per SectorCategory Total SiteElectric Consumption per Building(1000 kWh)102kWh Consumed per SectorMid AtlanticEducation 3,844 548.529 2,108,545,476Food Sales 10,000+ 226.142 2,261,420,000Food Services 13,000+ 121.041 1,573,533,000Inpatient Healthcare 822 10,472.33 8,608,991,159Lodging 1,511 457.97 691,991,159Public Order & Safety 860 243.328 209,262,080Total 30,037 15,453,010,263Residential10329,973,000,000Industrial 11,862,000,000Commercial 39,762,000,000Other Commercial 15,453,010,263102EIA, Electricity consumption and expenditure intensities for Non-Mall Building 2003103DOE EERE, “Electric Power and Renewable Energy in New Jersey”,http://apps1.eere.energy.gov/states/electricity.cfm/state=NJ, August 25, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201242NEW JERSEYAppendix III – Key StakeholdersOrganization City/Town State WebsiteBoard of Public Utilities Office ofEnergyNewarkNJ http://www.nj.gov/bpu/divisions/energy/TrentonNew Jersey Clean Cities RockawayNJ http://www.njcleancities.org/BPU Clean Energy Program NewarkNJ http://www.njcleanenergy.com/Center for Energy, Economic, andEnvironmental Policy (CEEEF)NewBrunswickNJ http://policy.rutgers.edu/ceeep/Hydrogen Learning CenterNewBrunswickNJ http://policy.rutgers.edu/ceeep/hydrogen/New Jersey Department ofEnvironmental ProtectionTrentonNJ http://www.state.nj.us/dep/New Jersey Board of Public UtilitiesOffice of clean EnergyIselin NJ http://www.njcleanenergy.com/Utility CompaniesElizabethtown Gas http://www.elizabethtowngas.com/New Jersey Natural Gas http://www.njng.com/PSE&G http://www.pseg.com/South Jersey Gas Co. http://www.southjerseygas.com/
    • Appendix IV – New Jersey Hydrogen and Fuel Cell Based Incentives and ProgramsFunding Source: New Jersey Societal Benefits Charge (public benefits fund)Program Title: Edison Innovation Clean Energy Manufacturing Fund (CEMF)Applicable Energies/Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind,Biomass, Geothermal Electric, Balance of System Components, Anaerobic Digestion, TidalEnergy, Wave Energy, Fuel Cells using Renewable FuelsSummary: CEMF is intended to provide assistance for the manufacturing of energy efficient andrenewable energy products that will assist Class I renewable energy and energy efficiencytechnologies in becoming competitive with traditional sources of electric generation.Restrictions: 50% cost share required; Loans at 2% interest for up to 10 years with three yeardeferral of principal repayment.Timing:Start Date: May 23, 2011 (most recent solicitation),Program Budget: $11 million (2011)Maximum Size:Total (grants and loans): $3.3 millionGrants: $300,000Loans: $3 millionRequirements: Visithttp://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1085&menuid=1287&topid=718&levelid=6&midid=1175 for more informationRebate amount: VariesSource:NJ Economic development Authority; “Financing Programs – Edison Innovation CEMF”;http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1085&menuid=1287&topid=718&levelid=6&midid=1175; September, 2011DSIRE USA; “Edison Innovation Clean Energy Manufacturing Fund – Grants and Loans”;http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ26F&re=1&ee=1; September 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201244Funding Source: New Jersey Societal Benefits Charge (public benefits fund)Program Title: Edison Innovation Green Growth Fund Loans (EIGGF)Applicable Energies/Technologies: Photovoltaics, Landfill Gas, Wind, Biomass, All ProductsIntegral to the Development of Class I Renewable Energy Technologies, Tidal Energy, WaveEnergy, Fuel Cells using Renewable FuelsSummary: EIGGF administered by the New Jersey Economic Development Authority, offers loansto for-profit companies developing Class I renewable energy (as defined under state renewablesportfolio standard) and energy efficiency products. In order to qualify for a loan, the product inquestion must have already achieved "proof of concept" and have begun to generate commercialrevenues.Restrictions: Fixed five-year term; interest rates from 2% - 10%Timing:Start Date: May 23, 2011,Program Budget: $4 million (2011)Maximum Size:Maximum Loan: $1 million (1:1 cash match required from non-state grants, deeply subordinateddebt or equity)Performance Grant Conversion (end of loan term): up to 50% of loan amountRequirements: Visithttp://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1454&menuid=1509&topid=718&levelid=6&midid=1175 for more informationRebate amount: Varies; loans from $250,000 - $1 million availableSource:NJ Economic development Authority; “Financing Programs – Edison Innovation EIGGF”;http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1454&menuid=1509&topid=718&levelid=6&midid=1175; September, 2011DSIRE USA; “Edison Innovation Green Growth Fund and Loans”;http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ44F&re=1&ee=1;September 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201245Funding Source: New Jersey Division of TaxationProgram Title: Property Tax Exemption for Renewable Energy SystemsApplicable Energies/Technologies: Solar Water Heat, Solar Space Heat, Solar ThermalProcess Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric,Fuel Cells, Geothermal Heat Pumps, Resource Recovery, Tidal Energy, Wave Energy, FuelCells using Renewable Fuels, Geothermal Direct-UseSummary: In October 2008, New Jersey enacted legislation exempting renewable energy systemsused to meet on-site electricity, heating, cooling, or general energy needs from local property taxes.Restrictions: In order to claim the exemption, property owners must apply for a certificate fromtheir local assessor which will reduce the assessed value of their property to what it would bewithout the renewable energy system. Exemptions will take effect for the year after a certification isgranted.Timing: Start Date: 10/01/2008Maximum Size: 100% of value added by renewable systemRequirements: For more information seehttp://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdfRebate Amount: 100% of value added by renewable systemFor further information, please visit:http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdfSources:New Jersey Division of Taxation “Application for Certification”;http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdf; September, 2011DSIRE “Property Tax Exemption for renewable Energy Systems”;http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ25F&re=1&ee=1 September,2011
    • -Appendix V –Partial list of Supply Chain CompaniesOrganization Name Product or Service Category1 H2 Fueling Services Manufacturing Services2 Relay Specialties, Inc Manufacturing Services3 Sensor Product, Inc. Manufacturing Services4 Gibbs Energy LLC Engineering Design Services5 Treadstone Technologies Engineering Design Services6 BASF Manufacturing Services7 Linde North America Inc Fuel8 BlackLight Power Inc. Engineering Design Services
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201247Appendix VI – Comparison of Fuel Cell Technologies104Fuel CellTypeCommonElectrolyteOperatingTemperatureTypicalStackSizeEfficiency Applications Advantages DisadvantagesPolymerElectrolyteMembrane(PEM)Perfluoro sulfonicacid50-100°C122-212°typically80°C< 1 kW –1 MW105>kW 60%transportation35%stationary• Backup power• Portable power• Distributed generation• Transportation• Specialty vehicle• Solid electrolyte reducescorrosion & electrolytemanagement problems• Low temperature• Quick start-up• Expensive catalysts• Sensitive to fuelimpurities• Low temperature wasteheatAlkaline(AFC)Aqueous solutionof potassiumhydroxide soakedin a matrix90-100°C194-212°F10 – 100kW60%• Military• Space• Cathode reaction fasterin alkaline electrolyte,leads to high performance• Low cost components• Sensitive to CO2in fuel and air• ElectrolytemanagementPhosphoricAcid(PAFC)Phosphoric acidsoaked in a matrix150-200°C302-392°F400 kW100 kWmodule40% • Distributed generation• Higher temperature enablesCHP• Increased tolerance to fuelimpurities• Pt catalyst• Long start up time• Low current and powerMoltenCarbonate(MCFC)Solution of lithium,sodium and/orpotassiumcarbonates, soakedin a matrix600-700°C1112-1292°F300k W- 3 MW300 kWmodule45 – 50%• Electric utility• Distributed generation• High efficiency• Fuel flexibility• Can use a variety of catalysts• Suitable for CHP• High temperaturecorrosion andbreakdownof cell components• Long start up time• Low power densitySolid Oxide(SOFC)Yttria stabilizedzirconia700-1000°C1202-1832°F1 kW – 2MW60%• Auxiliary power• Electric utility• Distributed generation• High efficiency• Fuel flexibility• Can use a variety of catalysts• Solid electrolyte• Suitable f o r CHP & CHHP• Hybrid/GT cycle• High temperaturecorrosion andbreakdownof cell components• High temperatureoperation requires longstart uptime and limitsPolymer Electrolyte is no longer a single category row. Data shown does not take into account High Temperature PEM which operates in the range of 160oC to 180oC. It solvesvirtually all of the disadvantages listed under PEM. It is not sensitive to impurities. It has usable heat. Stack efficiencies of 52% on the high side are realized. HTPEM is not aPAFC fuel cell and should not be confused with one.104U.S. department of Energy, Fuel Cells Technology Program, http://www1.eere.energy.gov/hydrogenandfuelcells/fuelcells/pdfs/fc_comparison_chart.pdf, August 5, 2011105Ballard, “CLEARgen Multi-MY Systems”, http://www.ballard.com/fuel-cell-products/cleargen-multi-mw-systems.aspx, November, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201248Appendix VII –Analysis of Strengths, Weaknesses, Opportunities, and Threats for New JerseyStrengthsStationary Power – Strong market drivers (elect cost,environmental factors, critical power), an environmentally awareand supportive population, strong industrial base available (but notfocused on fuel cell OEM’s as there are none in the state)Transportation Power - Strong market drivers (appeal to market,environmental factors, high gasoline prices, long commutingdistance)WeaknessesStationary Power – No fuel cell technology/industrial base at theOEM level, fuel cells only considered statutorily “renewable” ifpowered by renewable fuelTransportation Power – Limited technology/industrial base at theOEM levelEconomic Development Factors – state incentives (and attention)have been more directed to solar PV via the SRECS programOpportunitiesStationary Power – opportunity as a “early adopter market”, as thestate’s commercial and industrial base makes it an “energy intensestate”, good CHP applicationsTransportation Power – Similar opportunities as stationary power,but requires an integrated hydrogen planEconomic Development Factors – Assuming a reasonable case ismade, NJ state support can show produce significant results.Implementation of RPS/modification of RPS to include fuel cellsin preferred resource tier (for stationary power); or modification ofRE definition to include FCs powered by natural gas and allowedresource for net metering.Strong NJ emphasis on solar PV via SRECS program, but that theNJ SREC market has crashed, creating a need for a more balanced,technology agnostic approach to renewable energy/energyefficiency initiativesThreatsStationary Power – Solar PV, to a lesser extent, off shore wind.Transportation Power – Battery powered vehicles are both acompetitive threat and complementary stepping stoneEconomic Development Factors – competition from otherstates/regions and focus on a selected technology (solar pv)
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201249Appendix VIII – Partial Fuel Cell Deployment in the Northeast regionManufacturer Site Name Site LocationYearInstalledPlug Power T-Mobile cell tower Storrs CT 2008Plug Power Albany International Airport Albany NY 2004FuelCell Energy Pepperidge Farms Plant Bloomfield CT 2005FuelCell Energy Peabody Museum New Haven CT 2003FuelCell Energy Sheraton New Jersey Hotel & Towers Manhattan NY 2004FuelCell Energy Sheraton Hotel Edison NJ 2003FuelCell Energy Sheraton Hotel Parsippany NJ 2003UTC Power Cabelas Sporting Goods East Hartford CT 2008UTC Power Whole Foods Market Glastonbury CT 2008UTC Power Connecticut Science Center Hartford CT 2009UTC Power St. Francis Hospital Hartford CT 2003UTC Power Middletown High School Middletown CT 2008UTC Power Connecticut Juvenile Training School Middletown CT 2001UTC Power 360 State Street Apartment Building New Haven CT 2010UTC Power South Windsor High School South Windsor CT 2002UTC Power Mohegan Sun Casino Hotel Uncasville CT 2002UTC Power CTTransit: Fuel Cell Bus Hartford CT 2007UTC Power Whole Foods Market Dedham MA 2009UTC Power Bronx Zoo Bronx NY 2008UTC Power North Central Bronx Hospital Bronx NY 2000UTC Power Hunts Point Water Pollution Control Plant Bronx NY 2005UTC Power Price Chopper Supermarket Colonie NY 2010UTC Power East Rochester High School East Rochester NY 2007UTC Power Coca-Cola Refreshments Production Facility Elmsford NY 2010UTC Power Verizon Call Center and Communications Building Garden City NY 2005UTC Power State Office Building Hauppauge NY 2009UTC Power Liverpool High School Liverpool NY 2000UTC Power New Jersey Hilton Hotel New Jersey City NY 2007UTC Power Central Park Police Station New Jersey City NY 1999UTC Power Rochester Institute of Technology Rochester NY 1993UTC Power NYPA office building White Plains NY 2010UTC Power Wastewater treatment plant Yonkers NY 1997UTC Power The Octagon Roosevelt Island NY 2011UTC Power Johnson & Johnson World Headquarters New Brunswick NJ 2003UTC Power CTTRANSIT (Fuel Cell Powered Buses) Hartford CT2007 -Present
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201250Appendix IX – Partial list of Fuel Cell-Powered Forklifts in North America106Company City/Town State SiteYearDeployedFuel CellManufacturer# offorkliftsCoca-ColaSan Leandro CABottling anddistribution center2011 Plug Power 37Charlotte NC Bottling facility 2011 Plug Power 40EARPDistributionKansas City KS Distribution center 2011OorjaProtonics24Golden StateFoodsLemont IL Distribution facility 2011OorjaProtonics20Kroger Co. Compton CA Distribution center 2011 Plug Power 161SyscoRiverside CA Distribution center 2011 Plug Power 80Boston MA Distribution center 2011 Plug Power 160Long Island NY Distribution center 2011 Plug Power 42San Antonio TX Distribution center 2011 Plug Power 113Front Royal VARedistributionfacility2011 Plug Power 100BaldorSpecialty FoodsBronx NY FacilityPlannedin 2012OorjaProtonics50BMWManufacturingCo.Spartanburg SCManufacturingplant2010 Plug Power 86DefenseLogisticsAgency, U.S.Department ofDefenseSan Joaquin CA Distribution facility 2011 Plug Power 20Fort Lewis WA Distribution depot 2011 Plug Power 19WarnerRobinsGA Distribution depot 2010 Hydrogenics 20Susquehanna PA Distribution depot2010 Plug Power 152009 Nuvera 40Martin-Brower Stockton CAFood distributioncenter2010OorjaProtonics15United NaturalFoods Inc.(UNFI)Sarasota FL Distribution center 2010 Plug Power 65Wal-MartBalzacAl,CanadaRefrigerateddistribution center2010 Plug Power 80WashingtonCourt HouseOHFood distributioncenter2007 Plug Power 55Wegmans Pottsville PA Warehouse 2010 Plug Power 136Whole FoodsMarketLandover MD Distribution center 2010 Plug Power 61106FuelCell2000, “Fuel Cell-Powered Forklifts in North America”, http://www.fuelcells.org/info/charts/forklifts.pdf, November, 2011
    • HYDROGEN AND FUEL CELL INDUSTRY DEVELOPMENT PLANFINAL – APRIL 10, 201251Appendix X – Comparison of PEM Fuel Cell and Battery-Powered Material Handling Equipment3 kW PEM Fuel Cell-PoweredPallet Trucks3 kW Battery-powered(2 batteries per truck)Total Fuel Cycle Energy Use(total energy consumed/kWhdelivered to the wheels)-12,000 Btu/kWh 14,000 Btu/kWhFuel Cycle GHG Emissions(in g CO2 equivalent 820 g/kWh 1200 g/kWhEstimated Product Life 8-10 years 4-5 yearsNo Emissions at Point of Use  Quiet Operation  Wide Ambient OperatingTemperature range Constant Power Availableover ShiftRoutine Maintenance Costs($/YR)$1,250 - $1,500/year $2,000/yearTime for Refueling/ChangingBatteries 4 – 8 min./day45-60 min/day (for battery change-outs)8 hours (for battery recharging & cooling)Cost of Fuel/Electricity $6,000/year $1,300/yearLabor Cost ofrefueling/Recharging$1,100/year $8,750/yearNet Present Value of CapitalCost$12,600($18,000 w/o incentive)$14,000Net Present Value of O&Mcosts (including fuel)$52,000 $128,000