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Bonnett fuelcellpresentationfinal


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Bonnett fuelcellpresentationfinal

  1. 1. Hydrogen Fuel Cell Technology Will it contribute to energy independence? Stephen Cohen and Nathan Bonnett, May 18, 2007
  2. 2. FUEL CELL TECHNOLOGY <ul><li>Technology overview </li></ul><ul><li>Hydrogen fuel development </li></ul><ul><li>Law, legislation, and administrative agency treatment </li></ul>
  3. 3. What is a Fuel Cell? <ul><li>A Fuel Cell is an electrochemical device that combines hydrogen and oxygen to produce electricity, with water and heat as its by-product. </li></ul>
  4. 4. Why is Fuel Cell Technology Important? <ul><li>Since conversion of the fuel to energy takes place via an electrochemical process, not combustion </li></ul><ul><li>It is a clean, quiet and highly efficient process- two to three times more efficient than fuel burning. </li></ul>
  5. 5. How does a Fuel Cell work? <ul><li>It operates similarly to a battery, but it does not run down nor does it require recharging </li></ul><ul><li>As long as fuel is supplied, a Fuel Cell will produce both energy and heat </li></ul>
  6. 6. How does a Fuel Cell work? <ul><li>A Fuel Cell consists of two catalyst coated electrodes surrounding an electrolyte </li></ul><ul><li>One electrode is an anode and the other is a cathode </li></ul>
  7. 7. How does a Fuel Cell work? <ul><li>The process begins when Hydrogen molecules enter the anode </li></ul><ul><li>The catalyst coating separates hydrogen’s negatively charged electrons from the positively charged protons </li></ul>
  8. 8. How does a Fuel Cell work? <ul><li>The electrolyte allows the protons to pass through to the cathode, but not the electrons </li></ul><ul><li>Instead the electrons are directed through an external circuit which creates electrical current </li></ul>
  9. 9. How does a Fuel Cell work? <ul><li>While the electrons pass through the external circuit, oxygen molecules pass through the cathode </li></ul><ul><li>There the oxygen and the protons combine with the electrons after they have passed through the external circuit </li></ul><ul><li>When the oxygen and the protons combine with the electrons it produces water and heat </li></ul>
  10. 10. How does a Fuel Cell work?
  11. 11. How does a Fuel Cell work? <ul><li>Individual fuel cells can then be placed in a series to form a fuel cell stack </li></ul><ul><li>The stack can be used in a system to power a vehicle or to provide stationary power to a building </li></ul>
  12. 12. Major Types of Fuel Cells <ul><li>In general all fuel cells have the same basic configuration - an electrolyte and two electrodes </li></ul><ul><li>Different types of fuel cells are classified by the kind of electrolyte used </li></ul><ul><li>The type of electrolyte used determines the kind of chemical reactions that take place and the temperature range of operation </li></ul>
  13. 13. Major Types of Fuel Cells <ul><li>Proton Exchange Membrane (PEM) </li></ul><ul><ul><li>This is the leading cell type for passenger car application </li></ul></ul><ul><ul><li>Uses a polymer membrane as the electrolyte </li></ul></ul><ul><ul><li>Operates at a relatively low temperature, about 175 degrees </li></ul></ul><ul><ul><li>Has a high power density, can vary its output quickly and is suited for applications where quick startup is required making it popular for automobiles </li></ul></ul><ul><ul><li>Sensitive to fuel impurities </li></ul></ul>
  14. 14. Major Types of Fuel Cells <ul><li>Direct Methanol (a subset of PEM) </li></ul><ul><ul><li>Expected efficiencies of 40% plus low operating temperatures between 120-190 degrees </li></ul></ul><ul><ul><li>Also uses a polymer membrane as the electrolyte </li></ul></ul><ul><ul><li>Different from PEM because the anode catalyst is able to draw hydrogen from methanol without a reformer </li></ul></ul><ul><ul><li>Used more for small portable power applications, possibly cell phones and laptops </li></ul></ul>
  15. 15. Major Types of Fuel Cells <ul><li>Phosphoric Acid </li></ul><ul><ul><li>This is the most commercially developed fuel cell </li></ul></ul><ul><ul><li>It generates electricity at more than 40% efficiency </li></ul></ul><ul><ul><li>Nearly 85% of the steam produced can be used for cogeneration </li></ul></ul><ul><ul><li>Uses liquid phosphoric acid as the electrolyte and operates at about 450 degrees F </li></ul></ul><ul><ul><li>One main advantage is that it can use impure hydrogen as fuel </li></ul></ul>
  16. 16. Major Types of Fuel Cells <ul><li>Molten Carbonate </li></ul><ul><ul><li>Promises high fuel-to-electricity efficiency and the ability to utilize coal based fuels </li></ul></ul><ul><ul><li>Uses an electrolyte composed of a molten carbonate salt mixture </li></ul></ul><ul><ul><li>Require carbon dioxide and oxygen to be delivered to the cathode </li></ul></ul><ul><ul><li>Operates at extremely high temperatures 1200 degrees </li></ul></ul><ul><ul><li>Primarily targeted for use as electric utility applications </li></ul></ul><ul><ul><li>Have been operated on hydrogen, carbon monoxide, natural gas, propane, landfill gas, marine diesel and simulated coal gasification products </li></ul></ul>
  17. 17. Major Types of Fuel Cells <ul><li>Molten Carbonate Fuel Cell </li></ul><ul><ul><li>Because of the extreme high temperatures, non-precious metals can be used as catalysts at the anode and cathode which helps reduces cost </li></ul></ul><ul><ul><li>Disadvantage is durability </li></ul></ul><ul><ul><li>The high temperature required and the corrosive electrolyte accelerate breakdown and corrosion inside the fuel cell </li></ul></ul>
  18. 18. Major Types of Fuel Cells <ul><li>Solid Oxide </li></ul><ul><ul><li>Uses a hard, non-porous ceramic compound as the electrolyte </li></ul></ul><ul><ul><li>Can reach 60% power-generating efficiency </li></ul></ul><ul><ul><li>Operates at extremely high temperatures 1800 degrees </li></ul></ul><ul><ul><li>Used mainly for large, high powered applications such as industrial generating stations, mainly because it requires such high temperatures </li></ul></ul>
  19. 19. Major Types of Fuel Cells <ul><li>Alkaline </li></ul><ul><ul><li>Used mainly by military and space programs </li></ul></ul><ul><ul><li>Can reach 70% power generating efficiency, but considered to costly for transportation applications </li></ul></ul><ul><ul><li>Used on the Apollo spacecraft to provide electricity and drinking water </li></ul></ul><ul><ul><li>Uses a solution of potassium hydroxide in water as the electrolyte and operates at 75 -160 degrees </li></ul></ul><ul><ul><li>Can use a variety of non-precious metals as catalyst at the anode and cathode </li></ul></ul>
  20. 20. Major Types of Fuel Cells <ul><li>Alkaline Fuel Cell </li></ul><ul><ul><li>Requires pure hydrogen and oxygen because it is very susceptible to carbon contamination </li></ul></ul><ul><ul><li>Purification process of the hydrogen and oxygen is costly </li></ul></ul><ul><ul><li>Susceptibility to poisoning affects cell’s lifetime which also affects the cost </li></ul></ul>
  21. 21. Major Types of Fuel Cells <ul><li>Regenerative Fuel Cells </li></ul><ul><ul><li>Currently researched by NASA </li></ul></ul><ul><ul><li>This type of fuel cell involves a closed loop form of power generation </li></ul></ul><ul><ul><li>Uses solar energy to separate water into hydrogen and oxygen </li></ul></ul><ul><ul><li>Hydrogen and oxygen are fed into the fuel cell generating electricity, heat and water </li></ul></ul><ul><ul><li>The water byproduct is then recirculated back to the solar-powered electrolyser beginning the process again </li></ul></ul>
  22. 22. Importance of Hydrogen <ul><li>Fuel Cells require highly purified hydrogen as a fuel </li></ul><ul><li>Researchers are developing a wide range of technologies to produce hydrogen economically from a variety of resources in environmentally friendly ways </li></ul>
  23. 23. Importance of Hydrogen <ul><li>Hydrogen is a secondary energy resource, meaning it must be made from another fuel </li></ul><ul><li>Hydrogen can be produced from a wide variety of energy resources including: </li></ul><ul><ul><li>Fossil fuels, such as natural gas and coal </li></ul></ul><ul><ul><li>Nuclear energy </li></ul></ul><ul><ul><li>Renewable resources, such as solar,water, wind and biomass </li></ul></ul>
  24. 24. Hydrogen Production <ul><li>The biggest challenge regarding hydrogen production is the cost </li></ul><ul><li>Reducing the cost of hydrogen production so as to compete in the transportation sector with conventional fuels on a per-mile basis is a significant hurdle to Fuel Cell’s success in the commercial marketplace </li></ul>
  25. 25. Hydrogen Production <ul><li>There are three general categories of Hydrogen production </li></ul><ul><ul><li>Thermal Processes </li></ul></ul><ul><ul><li>Electrolyte Processes </li></ul></ul><ul><ul><li>Photolytic Processes </li></ul></ul>
  26. 26. Hydrogen Production <ul><li>Thermal Processes </li></ul><ul><ul><li>Natural Gas Reforming </li></ul></ul><ul><ul><li>Gasification </li></ul></ul><ul><ul><li>Renewable Liquid Reforming </li></ul></ul>
  27. 27. Hydrogen Production <ul><li>Natural Gas Reforming </li></ul><ul><ul><li>Steam Methane Reforming </li></ul></ul><ul><ul><ul><li>Hydrogen is produced from methane in natural gas using high-temperature steam </li></ul></ul></ul><ul><ul><ul><li>Methane reacts with the steam in presence of a catalyst to produce hydrogen </li></ul></ul></ul><ul><ul><ul><li>This process accounts for about 95% of the hydrogen used today in the U.S. </li></ul></ul></ul><ul><ul><li>Partial oxidation </li></ul></ul><ul><ul><ul><li>Produces hydrogen by burning methane in air </li></ul></ul></ul>
  28. 28. Hydrogen Production <ul><li>Gasification </li></ul><ul><ul><li>Process in which coal or biomass is converted into gaseous components by applying heat under pressure and in the presence of steam </li></ul></ul><ul><ul><li>A subsequent series of chemical reactions produces a synthesis gas which reacts with steam to produce more hydrogen that can be separated </li></ul></ul>
  29. 29. Hydrogen Production <ul><li>Renewable Liquid Reforming </li></ul><ul><ul><li>Biomass is processed to make renewable liquid fuels, such as ethanol or bio-oil, that are then reacted with high-temperature steam to produce hydrogen </li></ul></ul><ul><ul><li>This process is very similar to reforming natural gas </li></ul></ul>
  30. 30. Hydrogen Production <ul><li>Electrolytic Processes </li></ul><ul><ul><li>Electrolytic processes use an electric current to split water into hydrogen and oxygen </li></ul></ul><ul><ul><li>The electricity required can be generated by using renewable energy technologies such as wind, solar, geothermal and hydroelectric power </li></ul></ul>
  31. 31. Hydrogen Production <ul><li>Photolytic Processes </li></ul><ul><ul><li>Uses light energy to split water into hydrogen and oxygen </li></ul></ul><ul><ul><li>These processes are in the very early stages of research but offer the possibility of hydrogen production which is cost effective and has a low environmental impact </li></ul></ul>
  32. 32. Hydrogen Production <ul><li>Auto manufacturers have worked on developing technology that would allow fuel cell cars to continue using gasoline </li></ul><ul><li>A “reformer” on the fuel cell car would convert the gasoline to hydrogen onboard the automobile </li></ul><ul><li>Funding for this technology has been pulled due to unsatisfactory efficiency </li></ul>
  33. 33. How will the hydrogen be stored? <ul><li>Developing safe, reliable, compact and cost-effective hydrogen storage is one of the biggest challenges to widespread use of fuel cell technology </li></ul><ul><li>Hydrogen has physical characteristics that make it difficult to store large quantities without taking up a great deal of space </li></ul>
  34. 34. How will the hydrogen be stored? <ul><li>Hydrogen will need to be stored onboard vehicles, at hydrogen production sites, refueling stations and stationary power sites </li></ul><ul><li>Hydrogen has a very high energy content by weight (3x more than gasoline) and a very low energy content by volume (4x less than gasoline) </li></ul>
  35. 35. How will the hydrogen be stored? <ul><li>If the hydrogen is compressed and stored at room temperature under moderate pressure, too large a fuel tank would be required </li></ul><ul><li>Researchers are trying to find light-weight, safe, composite materials that can help reduce the weight and volume of compressed gas storage systems </li></ul>
  36. 36. How will the hydrogen be stored? <ul><li>Liquid hydrogen could be kept in a smaller tank than gaseous hydrogen, but liquefying hydrogen is complicated and not energy efficient </li></ul><ul><li>Liquid hydrogen is also extremely sensitive to heat and expands significantly when warmed by even a few degrees, thus the tank insulation required affects the weight and volume that can be stored </li></ul>
  37. 37. How will the hydrogen be stored? <ul><li>If the hydrogen is compressed and cryogenically frozen it will take up a very small amount of space requiring a smaller tank, but it must be kept supercold- around -120 to -196 degrees Celsius </li></ul>
  38. 38. How will the hydrogen be stored? <ul><li>Scientists are researching Materials-based storage </li></ul><ul><ul><li>This involves tightly binding hydrogen atoms or molecules with other elements in a compound to store larger quantities of hydrogen in smaller volumes at low pressure near room temperature </li></ul></ul><ul><ul><li>This technology is considered very promising but additional research is needed to overcome problems dealing with capacity, cost, life cycle impacts and the uptake and release of hydrogen </li></ul></ul>
  39. 39. How will the hydrogen be stored? <ul><li>Because hydrogen is thought to be an alternative fuel for automobiles, much of the research for hydrogen storage is focused on onboard vehicles </li></ul><ul><li>Scientists are attempting to develop technology that can rival the performance and cost of gasoline fuel storage systems </li></ul>
  40. 40. How will the hydrogen be stored? <ul><li>Using current storage technology, in order to place a sufficient amount of hydrogen onboard a vehicle to provide 300-mile driving range the tank would be larger that the trunk of a typical automobile </li></ul><ul><li>This large of a tank would add to the overall weight of the car and reduce fuel economy </li></ul>
  41. 41. How can Fuel Cell technology be used? <ul><li>Transportation </li></ul><ul><li>Stationary Power Stations </li></ul><ul><li>Telecommunications </li></ul><ul><li>Micro Power </li></ul>
  42. 42. How can Fuel Cell technology be used? <ul><li>Transportation </li></ul><ul><ul><li>All major automakers are working to commercialize a fuel cell car </li></ul></ul><ul><ul><li>Automakers and experts speculate that a fuel cell vehicle will be commercialized by 2010 </li></ul></ul><ul><ul><li>50 fuel cell buses are currently in use in North and South America, Europe, Asia and Australia </li></ul></ul><ul><ul><li>Trains, planes, boats, scooters, forklifts and even bicycles are utilizing fuel cell technology as well </li></ul></ul>
  43. 43. How can Fuel Cell technology be used? <ul><li>Stationary Power Stations </li></ul><ul><ul><li>Over 2,500 fuel cell systems have been installed all over the world in hospitals, nursing homes, hotels, office buildings, schools and utility power plants </li></ul></ul><ul><ul><li>Most of these systems are either connected to the electric grid to provide supplemental power and backup assurance or as a grid-independent generator for locations that are inaccessible by power lines </li></ul></ul>
  44. 44. How can Fuel Cell technology be used? <ul><li>Telecommunications </li></ul><ul><ul><li>Due to computers, the Internet and sophisticated communication networks there is a need for an incredibly reliable power source </li></ul></ul><ul><ul><li>Fuel Cells have been proven to be 99.999% reliable </li></ul></ul>
  45. 45. How can Fuel Cell technology be used? <ul><li>Micro Power </li></ul><ul><ul><li>Consumer electronics could gain drastically longer battery power with Fuel Cell technology </li></ul></ul><ul><ul><li>Cell phones can be powered for 30 days without recharging </li></ul></ul><ul><ul><li>Laptops can be powered for 20 hours without recharging </li></ul></ul>
  46. 46. What are the benefits of Fuel Cell technology? <ul><li>Physical Security </li></ul><ul><li>Reliability </li></ul><ul><li>Efficiency </li></ul><ul><li>Environmental Benefits </li></ul><ul><li>Battery Replacement/Alternative </li></ul><ul><li>Military Applications </li></ul>
  47. 47. What are the benefits of Fuel Cell technology? <ul><li>Physical Security </li></ul><ul><ul><li>Both central station power generation and long distance, high voltage power grids can be terrorist targets in an attempt to cripple our energy infrastructure </li></ul></ul><ul><ul><li>Fuel Cells allow the country to discontinue reliance on these potential targets </li></ul></ul>
  48. 48. What are the benefits of Fuel Cell technology? <ul><li>Reliability </li></ul><ul><ul><li>U.S. businesses lose $29 Billion a year from computer failures due to power outages </li></ul></ul><ul><ul><li>More reliable power from fuel cells would prevent loss of dollars for U.S. Businesses </li></ul></ul><ul><ul><li>Properly configured fuel cells would result in less than one minute of down time in a six year period </li></ul></ul>
  49. 49. What are the benefits of Fuel Cell technology? <ul><li>Efficiency </li></ul><ul><ul><li>Because no fuel is burned to make energy, fuel cells are fundamentally more efficient than combustion systems </li></ul></ul><ul><ul><li>Additionally when the heat comes off of the fuel cell system it can be captured for beneficial purposes </li></ul></ul><ul><ul><li>This is called Cogeneration </li></ul></ul>
  50. 50. What are the benefits of Fuel Cell technology? <ul><li>Efficiency </li></ul><ul><ul><li>The gasoline engine in a conventional car is less than 20% efficient in converting the chemical energy in gasoline into power </li></ul></ul><ul><ul><li>Fuel Cell motors are much more efficient and use 40-60% of the hydrogen’s energy </li></ul></ul><ul><ul><li>Fuel Cell cars would lead to a 50% reduction in fuel consumption </li></ul></ul><ul><ul><li>Fuel Cell vehicles can be up to 3 times more efficient than internal combustion engines </li></ul></ul>
  51. 51. What are the benefits of Fuel Cell technology? <ul><li>Efficiency </li></ul><ul><ul><li>Fuel Cell power generation systems in operation today achieve 40% to 50% fuel-to-electricity efficiency </li></ul></ul><ul><ul><li>In combination with a turbine, electrical efficiencies can exceed 60% </li></ul></ul><ul><ul><li>When Cogeneration is used, fuel utilization can exceed 85% </li></ul></ul>
  52. 52. What are the benefits of Fuel Cell technology? <ul><li>Environmental Benefits </li></ul><ul><ul><li>Fuels cells can reduce air pollution today and offer the possibility of eliminating pollution in the future </li></ul></ul>
  53. 53. What are the benefits of Fuel Cell technology? <ul><li>Environmental Benefits of Fuel Cell Power Generation </li></ul><ul><ul><li>A fuel cell power plant may create less than one ounce of pollution per 1,000 kilowatt-hours of electricity produced </li></ul></ul><ul><ul><li>Conventional combustion generating systems produce 25 pounds of pollutants for the same electricity </li></ul></ul>
  54. 54. What are the benefits of Fuel Cell technology? <ul><li>Environmental Benefits of Fuel Cell Vehicles </li></ul><ul><ul><li>Fuel Cell Vehicles with hydrogen stored on-board produce ZERO POLLUTION in the conventional sense </li></ul></ul><ul><ul><li>The only byproducts of these Fuel Cell vehicles are water and heat </li></ul></ul>
  55. 55. What are the benefits of Fuel Cell technology? <ul><li>Environmental Benefits of Fuel Cell Vehicles </li></ul><ul><ul><li>Fuel Cell Vehicles with a reformer on board to convert a liquid fuel to hydrogen would produce a small amount of pollutants, but it would be 90% less than the pollutants produced from combustion engines </li></ul></ul>
  56. 56. What are the benefits of Fuel Cell technology? <ul><li>Battery replacement/alternative </li></ul><ul><ul><li>Fuel Cell replacements for batteries would offer much longer operating life in a packaged of lighter or equal weight </li></ul></ul><ul><ul><li>Additionally, Fuel Cell replacements would have an environmental advantage over batteries, since certain kinds of batteries require special disposal treatment </li></ul></ul>
  57. 57. What are the benefits of Fuel Cell technology? <ul><li>Military Applications </li></ul><ul><ul><li>Fuel Cell technology in the military can help save lives because it reduces telltale heat and noise in combat </li></ul></ul><ul><ul><li>Handheld battlefield computers can be powered for 10 times longer with Fuel Cell power meaning soldiers could rely on their computers in the field for longer periods of time </li></ul></ul>
  58. 58. Challenges to Fuel Cell Technology <ul><li>Cost </li></ul><ul><ul><li>The cost of fuel cells must be reduced to compete with conventional technologies </li></ul></ul><ul><ul><li>Conventional internal combustion engines cost $25-$35/kW; a fuel cell system would need to cost $30/kW to be competitive </li></ul></ul>
  59. 59. Challenges to Fuel Cell Technology <ul><li>Durability and Reliability </li></ul><ul><ul><li>Durability of fuel cell systems have not yet been adequately established </li></ul></ul><ul><ul><li>The durability standard for automobiles is approximately 150,000 miles and the ability to function under normal vehicle operating conditions </li></ul></ul><ul><ul><li>For stationary systems 40,000 hours of reliable operation in a temperature range of -35 degree Celsius to 40 degrees Celsius will be required for market acceptance </li></ul></ul>
  60. 60. Challenges to Fuel Cell Technology <ul><li>System Size </li></ul><ul><ul><li>The size and weight of current fuel cell systems must be reduced to attain market acceptance, especially with automobiles </li></ul></ul>
  61. 61. Legal Environment
  62. 62. Legal Environment <ul><li>Current Law </li></ul><ul><ul><li>Federal and State </li></ul></ul><ul><li>Incentives </li></ul><ul><ul><li>Federal and State </li></ul></ul><ul><li>Proposed Legislation </li></ul><ul><ul><li>Federal </li></ul></ul><ul><li>Codes and Standards </li></ul><ul><li>Administrative Agency Treatment </li></ul>
  63. 63. Legal Environment <ul><li> Norms </li></ul><ul><li>Architecture Technology Law </li></ul><ul><li> Market </li></ul>
  64. 64. <ul><li>CURRENT LAW Federal </li></ul><ul><li>Energy Policy Act of 2005 </li></ul><ul><ul><li>Things to keep in mind: </li></ul></ul><ul><ul><ul><li>In many cases, the provisions require further rulemaking by the appropriate agencies (IRS, DOE, EPA, DOT, etc.) </li></ul></ul></ul><ul><ul><ul><li>In some instances, the funds must still be appropriated through a separate federal budgeting process </li></ul></ul></ul><ul><ul><ul><li>The authorized funding listed indicates ceiling amounts that federal agencies may request for the defined activity </li></ul></ul></ul><ul><ul><ul><li>$1.3 billion tax reductions for alternative motor vehicles and fuels (hydrogen, ethanol, methane, liquified natural gas, propane) </li></ul></ul></ul>
  65. 65. <ul><li>EPAct § 703: Alternative Compliance for State and Alternative Fuel Provider Fleets </li></ul><ul><ul><li>Requires certain fleets to acquire a percentage of AFVs each year </li></ul></ul><ul><ul><li>New section provides for waiver of AFV acquisition if a petroleum reduction plan is implemented; fuel cell vehicles could help </li></ul></ul><ul><ul><ul><li>“ Fleet must demonstrate an annual petroleum reduction equal to the amount of petroleum it would have reduced if the fleet’s required AFVs acquired in earlier years and other AFVs for which a waiver is requested operated on alternative fuel 100% of the time” </li></ul></ul></ul>Energy Policy Act of 2005 Programs Connected with Fuel Cells
  66. 66. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct §§ 721-723: Advanced Vehicles Demonstration and Pilot Program </li></ul><ul><ul><li>Establishes a competitive grant program, administered by Clean Cities, to fund up to 30 geographically dispersed advanced vehicle demonstration projects. </li></ul></ul><ul><ul><li>EPAct 2005 authorizes $200 million (until expended) for this program. </li></ul></ul>
  67. 67. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct § 743: Fuel Cell School Buses </li></ul><ul><ul><li>Establishes a DOE demonstration program involving fuel cell school bus manufacturers and at least two units of local government currently using natural gas school buses. </li></ul></ul><ul><ul><li>The non-federal cost share will be at least 20% of infrastructure and 50% of vehicles. EPAct 2005 authorizes $25 million for fiscal years 2006-2009. </li></ul></ul>
  68. 68. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct § 773: Study of Reducing Use of Fuel for Automobiles </li></ul><ul><ul><li>Directs NHTSA to study feasibility and effects of significantly reducing petroleum consumed by automobiles by model year 2014 </li></ul></ul><ul><ul><li>Potential impacts fuel cell vehicles can make towards petroleum reduction </li></ul></ul>
  69. 69. <ul><li>EPAct § 773: Study of Reducing Use of Fuel for Automobiles </li></ul><ul><ul><li>“ Regarding hydrogen fuel cell technologies, NAS noted their steady stream of progress and their promise for providing improved fuel economy and reduced emissions. However, such vehicles continue to face significant technological, economic, and fueling infrastructure barriers” </li></ul></ul><ul><ul><li>Viewed as “long-range breakthrough technology” </li></ul></ul>Energy Policy Act of 2005 Programs Connected with Fuel Cells
  70. 70. <ul><li>EPAct § 782: Federal and State Procurement of Fuel Cell Vehicles and Hydrogen Energy Systems </li></ul><ul><ul><li>Requires federal fleets to begin leasing or purchasing fuel cell vehicles and hydrogen energy systems no later than January 1, 2010 </li></ul></ul><ul><ul><li>DOE shall provide incremental cost funding and exemptions if the vehicles are not available or appropriate for fleet needs </li></ul></ul><ul><ul><li>EPAct 2005 authorizes $15 million 2008, $25 million in 2009, $65 million in 2010, and such sums as are necessary each year in 2011-2015 </li></ul></ul>Energy Policy Act of 2005 Programs Connected with Fuel Cells
  71. 71. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct § 1341: Alternative Motor Vehicle Credit and Fuel Cell Motor Vehicle Credit </li></ul><ul><ul><li>AMV tax credit equals 50% of the incremental cost of AFV (fuel cell included), plus an additional 30% of the incremental cost for AFVs with near-zero emissions </li></ul></ul><ul><ul><li>Purchasers can receive up to a $40,000 credit depending on GVWR </li></ul></ul><ul><ul><li>Typical passenger vehicles can receive up to $5000 credit </li></ul></ul>
  72. 72. <ul><li>EPAct § 1341: Alternative Motor Vehicle Credit and Fuel Cell Motor Vehicle Credit </li></ul><ul><ul><li>FCMV credit provides a base tax credit of $8,000 for the purchase of light-duty fuel cell vehicles (< 8,501 lb GVWR). The $8,000 credit is valid until December 31, 2009. After that, the credit is $4,000 </li></ul></ul><ul><ul><li>Also available for medium and heavy-duty fuel cell vehicles </li></ul></ul><ul><ul><li>For tax-exempt purchasers, credit can be passed back to seller </li></ul></ul>Energy Policy Act of 2005 Programs Connected with Fuel Cells
  73. 73. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct § 1342: Alternative Fuel Infrastructure Tax Credit </li></ul><ul><ul><li>Provides a tax credit equal to 30% of the cost of alternative refueling property, up to $30,000 for business property; includes hydrogen and credit can be passed back to seller </li></ul></ul><ul><ul><li>Buyers of residential refueling equipment can receive $1,000 credit </li></ul></ul><ul><ul><li>Expires in 2009, except for hydrogen (2014) </li></ul></ul>
  74. 74. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>EPAct § 1825: Fuel Cell and Hydrogen Technology Study </li></ul><ul><ul><li>Directs DOE to enter into contract with the NAS and National Research Council to carry out a study that provides a budget roadmap for fuel cell technologies </li></ul></ul><ul><ul><li>and the transition from petroleum to hydrogen in a significant percentage of vehicles sold by 2020 </li></ul></ul>
  75. 75. <ul><li>§ 783 Federal Procurement of Stationary, Portable, and Micro Fuel Cells </li></ul><ul><ul><li>to stimulate acceptance by the market of stationary, portable, and micro fuel cells; and </li></ul></ul><ul><ul><li>to support development of technologies relating to stationary, portable, and micro fuel cells. </li></ul></ul>Energy Policy Act of 2005 Programs Connected with Fuel Cells
  76. 76. Energy Policy Act of 2005 Programs Connected with Fuel Cells <ul><li>There are also more programs in EPAct 2005 that directly or indirectly implicate fuel cell technology </li></ul><ul><ul><li>Title VIII is all about hydrogen, including </li></ul></ul><ul><ul><ul><ul><li>appropriations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>codes and standards </li></ul></ul></ul></ul><ul><ul><ul><ul><li>task force </li></ul></ul></ul></ul><ul><ul><li>Title XVI is about climate change </li></ul></ul>
  77. 77. Clean Air Act Programs Connected with Fuel Cells <ul><li>Clean Air Act (42 U.S.C §§ 7401 to 7671q) </li></ul><ul><ul><li>1990 Amendments include provisions to encourage or mandate the use of alternative fuels and clean fuel vehicles. </li></ul></ul><ul><ul><li>CAA § 211 (42 U.S.C. § 7545) Emission Standards for moving Sources </li></ul></ul><ul><ul><li>CAA §§ 241-250 (42 U.S.C §§ 7581-7590) Clean Fuel Vehicles </li></ul></ul><ul><ul><ul><li>clean alternative fuels include hydrogen </li></ul></ul></ul><ul><ul><ul><li>clean-fuel vehicles in light-duty, heavy duty, fleet, federal agency fleet </li></ul></ul></ul>
  78. 78. Select State Law <ul><ul><li>State law covers fuel cells indirectly through: </li></ul></ul><ul><ul><ul><li>Acquisition requirements </li></ul></ul></ul><ul><ul><ul><li>Fuel taxes </li></ul></ul></ul><ul><ul><ul><li>Fuel production standards </li></ul></ul></ul><ul><ul><ul><li>Energy-based economic development plans </li></ul></ul></ul>
  79. 79. II. Incentives <ul><li>Federal Incentives </li></ul><ul><ul><li>Renewable Energy Systems and Energy Efficiency Improvement Grants </li></ul></ul><ul><ul><ul><li>USDA made $22.8 million available for the purchase of renewable energy systems and energy improvements for agricultural producers and small rural businesses </li></ul></ul></ul><ul><ul><ul><li>Eligible projects include biofuels, hydrogen, and energy efficiency improvements, as well as solar, geothermal, and wind </li></ul></ul></ul>
  80. 80. <ul><li>Alternative Fuel Infrastructure Tax Credit </li></ul><ul><ul><li>05/06: IRS established a form which provides the mechanism to claim the credit on as many properties as developed </li></ul></ul><ul><li>Alternative Motor Vehicle Credit </li></ul><ul><ul><li>01/06: IRS established procedures for manufacturers to certify to the IRS that a vehicle meets requirements to claim the credit and the amount of the credit for which the vehicle is eligible </li></ul></ul>II. Incentives
  81. 81. Federal Incentives <ul><li>Qualified Alternative Fuel Motor Vehicle Credit </li></ul><ul><ul><li>06/06: IRS extends credit to converted vehicles when the conversion system manufacturer has received a certificate of conformity from the EPA or California Air Resources Board. </li></ul></ul><ul><ul><li>Also establishes that manufacturers (conversion system installers) must provide certification to the IRS that a vehicle is eligible for a tax credit. </li></ul></ul>
  82. 82. Select State Incentives <ul><li>Last year: 25 incentives from 15 states and D.C. </li></ul><ul><li>Many relate to low or zero emission vehicle tax credits and alternative fuel tax exemptions </li></ul><ul><li>Today: 222 incentives from 47 states and D.C. </li></ul><ul><li>Same focus </li></ul>
  83. 83. Select State Incentives California <ul><li>AFV Parking Incentives in L.A. (pilot program) </li></ul><ul><ul><li>Free meter parking for select AFVs </li></ul></ul><ul><ul><li>Display sticker </li></ul></ul><ul><ul><li>Must obey all other parking laws </li></ul></ul>
  84. 84. <ul><li>Alternative Fuel Incentive Development </li></ul><ul><ul><li>Allocating $25 million in incentives for: </li></ul></ul><ul><ul><ul><li>Projects that promote high-efficiency alternative fuel fleet vehicles </li></ul></ul></ul><ul><ul><ul><li>the construction of both publicly accessible alternative fuel retail refueling stations and fleet refueling facilities </li></ul></ul></ul><ul><ul><ul><li>production incentives for alternative fuel production in California </li></ul></ul></ul>Select State Incentives California
  85. 85. Select State Incentives California <ul><li>Hydrogen Energy Plan </li></ul><ul><ul><li>“ California Hydrogen Highway Network” </li></ul></ul><ul><ul><li>Commitment by 2010 to </li></ul></ul><ul><ul><li>Build a network of hydrogen refueling stations </li></ul></ul><ul><ul><li>Ensure that hydrogen vehicles are commercially available for purchase </li></ul></ul><ul><ul><li>Incorporate hydrogen vehicles into the state fleet </li></ul></ul><ul><ul><li>Develop safety standards for hydrogen refueling stations and vehicles, and </li></ul></ul><ul><ul><li>Establish incentives to encourage the use of hydrogen vehicles and development of renewable sources of energy for hydrogen production </li></ul></ul>
  86. 86. Select State Incentives California <ul><li>Hydrogen Specifications </li></ul><ul><ul><li>By January 1, 2008, the Department of Food and Agriculture and State Air Resources Board, are required to establish specifications for hydrogen fuels for use in internal combustion engines and fuel cells in motor vehicles </li></ul></ul><ul><ul><li>Until ANSI formally adopts standards for hydrogen fuels </li></ul></ul>
  87. 87. <ul><li>Carl Moyer Memorial Air Quality Standards Attainment </li></ul><ul><ul><li>funding for the incremental cost of purchasing cleaner than required on-road, off-road, marine, locomotive and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units </li></ul></ul>Select State Incentives California
  88. 88. Select State Incentives <ul><li>Illinois </li></ul><ul><ul><li>Alternate Fuels Rebate Program </li></ul></ul><ul><ul><ul><li>Provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), </li></ul></ul></ul><ul><ul><ul><li>80% of the cost of federally certified alternative fuel vehicle conversions (up to $4,000), and </li></ul></ul></ul><ul><ul><ul><li>the incremental cost of purchasing alternative fuels </li></ul></ul></ul><ul><ul><ul><li>Includes hydrogen, but the focus is clearly on E85 and biodiesel </li></ul></ul></ul>
  89. 89. Select State Incentives <ul><li>North Dakota </li></ul><ul><ul><li>Hydrogen to power a fuel cell is exempt from sales tax through 06/10 </li></ul></ul><ul><li>Oklahoma </li></ul><ul><ul><li>Alternative Fuel Vehicle Technician Training </li></ul></ul><ul><ul><ul><li>Regulates the training, testing, and certification of technicians who install, modify, repair, or renovate equipment used in the fueling of AFVs and the conversion of any engines to alternative fueled engines </li></ul></ul></ul><ul><li>Arkansas </li></ul><ul><ul><li>Fuel Cell Income Tax Credit </li></ul></ul><ul><ul><ul><li>Credit for 50% of the amount spent on a facility that produces fuel cells </li></ul></ul></ul>
  90. 90. <ul><li>Federal House and Senate proposals </li></ul><ul><ul><li>Currently 26 bills containing reference to fuel cells </li></ul></ul><ul><ul><li>Many tax incentives and incentive extenders </li></ul></ul><ul><ul><li>Focus largely on petroleum dependence </li></ul></ul><ul><ul><li>National security </li></ul></ul>III. Proposed Legislation
  91. 91. <ul><li>American Automobile Industry Promotion Act (S. 1055, H.R. 1915 ) 3/29/07, 4/18/07 </li></ul><ul><ul><li>comprehensive development and commercialization of diverse electric drive transportation technologies; </li></ul></ul><ul><ul><li>public investments to help expand innovation, industrial growth, and jobs in the United States; </li></ul></ul><ul><ul><li>expand existing electric infrastructure to accelerate the widespread commercialization of plug-in hybrid fuel cell vehicles; </li></ul></ul><ul><ul><li>to improve the energy efficiency of and reduce the petroleum use in transportation </li></ul></ul>Federal House & Senate Proposals
  92. 92. Federal House & Senate Proposals <ul><li>Securing America's Energy Independence Act of 2007 (H.R. 550, S. 590) 1/18/07, 2/14/07 </li></ul><ul><ul><li>Amends tax code to extend the investment tax credit with respect to qualified fuel cell property. Same as Senate bill </li></ul></ul><ul><ul><li>Extends from 2008 to 2016 for qualified fuel cell properties: </li></ul></ul><ul><ul><ul><li>Investment tax credit, residential credit up to $500, 3-year accelerated depreciation period </li></ul></ul></ul><ul><li>Clean and Green Renewable Energy Tax Credit (H.R. 1596) 3/20/07 </li></ul><ul><ul><li>Would extend the investment tax credit to 2030 </li></ul></ul>
  93. 93. Federal House & Senate Proposals <ul><li>DRIVE ACT (Dependence Reduction through Innovation in Vehicles and Energy Act) (S. 339, H.R. 670) 1/18/07, 1/24/07 </li></ul><ul><ul><li>Accelerated market penetration of advanced technology vehicles and other oil saving technologies, efficient transportation and clean alternative fuels </li></ul></ul><ul><ul><li>maintains a policy of fuel neutrality </li></ul></ul><ul><ul><li>Financial incentives to encourage production and consumer purchase of oil saving technologies and fuels </li></ul></ul><ul><ul><li>Promote a nationwide diversity of clean alternative motor vehicle fuels and advanced motor vehicle technology </li></ul></ul>
  94. 94. Federal House & Senate Proposals <ul><li>H-Prize Act of 2007 (S. 365, H.R. 632) 1/23/07 </li></ul><ul><ul><li>Authorizes the Secretary of Energy to establish monetary prizes for achievements in overcoming scientific and technical barriers associated with hydrogen energy </li></ul></ul><ul><ul><li>Hydrogen production, distribution, storage, and utilization: $1,000,000 </li></ul></ul><ul><ul><li>Prototypes of hydrogen-powered vehicles or other hydrogen-based products: $4,000,000 </li></ul></ul><ul><ul><li>Transformational changes in technologies for the distribution or production of hydrogen that meet or exceed far-reaching objective criteria: $10,000,000 </li></ul></ul>
  95. 95. Federal House & Senate Proposals <ul><li>Global Warming Reduction Act of 2007 (S. 485) 2/1/07 </li></ul><ul><ul><li>Takes a global warming focus, rather than petroleum reduction or national security </li></ul></ul><ul><ul><ul><li>Comprehensive global warming pollution reductions </li></ul></ul></ul><ul><ul><ul><li>Tax incentives for advanced technology vehicles </li></ul></ul></ul><ul><ul><ul><li>International and corporate obligations </li></ul></ul></ul><ul><ul><ul><li>National Climate Change Vulnerability and Resilience Program </li></ul></ul></ul><ul><ul><li>Energy efficiency performance standards for stationary fuel cells- “electricity savings” </li></ul></ul><ul><ul><li>Fuel cell vehicles included in tax incentives </li></ul></ul><ul><ul><li>Vulnerability scorecard </li></ul></ul>
  96. 96. IV. Codes & Standards <ul><li>Multitude of fuel cell infrastructure codes and standards in United States and Internationally from: </li></ul><ul><ul><li>ISO, SAE, UL, CSA, and others </li></ul></ul><ul><ul><ul><li>System design and power systems </li></ul></ul></ul><ul><ul><ul><li>Vehicles </li></ul></ul></ul><ul><ul><ul><li>Fuels, fuel tanks, and dispensing </li></ul></ul></ul><ul><ul><ul><li>Operating instructions and safety </li></ul></ul></ul><ul><ul><ul><li>Testing and evaluation </li></ul></ul></ul><ul><ul><li>Will ANSI develop? </li></ul></ul>
  97. 97. Administrative Agency Programs <ul><li>Department of Transportation </li></ul><ul><li>Department of Energy </li></ul><ul><li>Environmental Protection Agency </li></ul>
  98. 98. Department of Transportation Federal Transit Agency <ul><li>FTA Fuel Cell Transit Bus </li></ul><ul><ul><li>Georgetown Fuel Cell Transit Bus Program </li></ul></ul><ul><ul><ul><li>Began the logical transit connection in 1994 </li></ul></ul></ul><ul><ul><ul><li>Generation II buses in 1998 and 2001 </li></ul></ul></ul><ul><ul><ul><li>Generation III bus program development began in 2006 </li></ul></ul></ul><ul><ul><li>Demonstrate 3 hydrogen fuel cell buses in Chicago </li></ul></ul><ul><ul><li>Demonstrate 3 different types of fuel cell buses at SunLine Transit </li></ul></ul>
  99. 99. Department of Transportation National Highway Traffic Safety Administration <ul><li>Conduct fuel cell vehicle testing to identify potential failure modes of a high pressure compressed hydrogen storage system </li></ul><ul><li>Develop a fuel cell vehicle and electrical isolation test procedure </li></ul><ul><li>Conduct container integrity testing </li></ul><ul><li>Conduct a comparative analysis/evaluation of existing and proposed regulations and standards on hydrogen container integrity, general fuel cell vehicle safety, and vehicle crash safety </li></ul>
  100. 100. Department of Energy <ul><li>Fuel Cells and Infrastructure Technologies Program </li></ul><ul><ul><li>Development of next generation technologies, </li></ul></ul><ul><ul><li>Establishment of an education campaign that communicates potential benefits, and </li></ul></ul><ul><ul><li>Better integration of subprograms in hydrogen, fuel cells, and distributed energy </li></ul></ul><ul><ul><li>Lead Federal agency for directing and integrating activities in hydrogen and fuel cell R&D, and is responsible for coordinating the R&D activities for DOE's Hydrogen Program </li></ul></ul>
  101. 101. Department of Energy <ul><li>FreedomCAR and Vehicle Technologies Program </li></ul><ul><ul><li>The long-term aim is to develop &quot;leap frog&quot; technologies that will provide Americans with greater freedom of mobility and energy security, while lowering costs and reducing impacts on the environment </li></ul></ul><ul><ul><li>Examines need and risk of research in Hydrogen Fuel Development in the automotive industry </li></ul></ul><ul><ul><li>Wants consumers to have variety/choice – what, where, how they drive </li></ul></ul>
  102. 102. George W. Bush <ul><li>President’s “Hydrogen Fuel Initiative” collaborates with DOE’s FreedomCAR, the Big Three, and the US Counsel for Automotive Research – boasts that it will speed up broad commercialization from 2030 to 2015. </li></ul><ul><li>“ Tonight I am proposing 1.2 Billion in research funding…so that the first car driven by a child born today could be powered by hydrogen…” -State of the Union Address, January 2003 </li></ul>
  103. 103. Department of Energy <ul><li>Clean Cities program </li></ul><ul><ul><li>Works with volunteer, public, and private organizations to support localities that decrease petroleum use </li></ul></ul><ul><ul><ul><li>Collaborate on public policy issues </li></ul></ul></ul><ul><ul><li>Network of more than 80 volunteer coalitions </li></ul></ul><ul><ul><li>Transportation corridors </li></ul></ul><ul><ul><ul><li>North Central E85 Transportation Corridor (NCETC) - (I-90, I-94, I-90/94, I-39, I-55, I-80/94, and Michigan Highway 96) </li></ul></ul></ul>
  104. 104. Environmental Protection Agency <ul><li>National Vehicle and Fuel Emissions Laboratory </li></ul><ul><ul><li>The only federal facility capable of running official tests on fuel cell vehicles </li></ul></ul><ul><ul><li>Contains hydrogen station for fuel cell vehicles </li></ul></ul>
  105. 105. Environmental Protection Agency <ul><li>EPA, Chrysler, and UPS collaborated to create emission-free delivery trucks </li></ul><ul><ul><li>Joint paper in 2006 detailing the results of the program </li></ul></ul><ul><ul><li>Despite frequent failures in the fueling station system and cold weather, the program was a success </li></ul></ul>
  106. 106. Limitations Imposed by Law and Regulation? <ul><li>Few Limitations – Lawmakers and agencies are more concerned with growth of the technology </li></ul><ul><ul><li>Environmentally - cleaner </li></ul></ul><ul><ul><li>Economically – potentially cheaper, renewable </li></ul></ul><ul><ul><li>National Security – curb America’s dependence on petroleum </li></ul></ul>
  107. 107. Conclusion <ul><li>Promising technology </li></ul><ul><li>Most viable for niche market use in the near future </li></ul><ul><li>Widespread marketplace acceptance and use is still many years away </li></ul>