The Icelandi c hydrogen society

1. The Icelandic hydrogen society Hjalmar Arnason Member of the Icelandic Parliament Icelandic New Energy

2. The background of the project • Iceland possesses no fossil fuels • except some peat reservoirs • However compared to population Iceland possesses abundant energy resources: • The economically harnessable hydroenergy has been estimated at 30 TWh/yr of which only 15% has been harnessed. • The harnessable geothermal energy has been estimated at 200 TWh/yr (thermal) (equivalant of 20 TWh/yr electricity), of which 1% has been harnessed. Icelandic New Energy

3. Type of energy used in Iceland Icelandic New Energy

4. Energy consumed in Iceland by different activities Icelandic New Energy

5. Greenhouse gas emission in Iceland • Transport 33% • Fishing Industry 33% • Industry and other 33% • In total antropogenic CO2 emission (1995 values) = 2.640.000 tonn Icelandic New Energy

6. Iceland´s dilemma • According to the Kyoto agreement Iceland can increase its emissions by 10% from ´90 levels • Iceland has negotiated to erect new power intensive industries (metals) that increase the emissions more than 10% • Iceland has not signed the agreement Icelandic New Energy

7. Iceland´s dilemma (cont.) • All space heating is now geothermal (renewable energy) • All electricity production is hydro/geothermal (renewable energy) • Only way to reduce emission is by reducing the usage of fossil fuels Icelandic New Energy

8. Fuel cells help change the energy basis The Past The Present The Future The transition is messy The internal combus - tion engine led to the oil industry Product Performance The fuel cell may lead to the methanol / hydrogen economy Time 2020 Icelandic New Energy

9. Using hydrogen/methanol vs fossil fuels, overall emissions • By using hydrogen on all vehicles it is possible to reduce Iceland´s overall greenhouse gas emissions 33% (methanol 18%) • By including also the fishing fleet reduction of overall emissions can be reduced to, by using: • hydrogen 66% • methanol 40% Icelandic New Energy

10. Hydrogen production in Iceland • Currently the production of hydrogen is 2000 tons annually in Iceland • the hydrogen is used to produce ammonia for fertilizer production • To power the whole transport and the fishing fleet it would require 33000 tons of hydrogen Icelandic New Energy

11. Methanol production in Iceland • Metals industries in Iceland (aluminum, ferrosilicon, etc) emitt 618.000 tons of CO and CO2 annually • This amount mixed with hydrogen can make 450.000 tons of methanol • If these 450.000 tons methanol could replace some 400.000-450.000 tons of fossil fuel which is more than 60% of the total imports, total greenhouse gas emissions from Iceland could be cut 55% Icelandic New Energy

12. Methanol production in Iceland (cont.) • Methanol production in Iceland is still far from reality, it is an option to be evaluated • Some of the participants in the Icelandic venture have concerns regarding using methanol • The critical issue is the evaluation of the toxity of methanol Icelandic New Energy

13. Hydrogen/methanol production in Iceland • If hydrogen would be used directly on fuel cells powering all the vehicle and fishing fleet it would require: 2,6 TWh/yr* *Around 5% of economically harnessable renewable energy in Iceland • If methanol would be used instead of hydrogen: 3,6 TWh/yr Icelandic New Energy

14. Icelandic New Energy Ltd. • Is a joint-venture company owned by: • VistOrku hf (EcoEnergy)* • DaimlerChrysler AG • Norsk Hydro ASA • Shell Hydrogen BV *Vistorka (EcoEnergy) is owned by Icelandic New Venture Fund, University of Iceland, IceTech, Fertilizer Plant, Suðurnes Regional Heating Corporation and Reykjavík Energy Icelandic New Energy

15. The purpose of the company “Is to set up a joint venture company to investigate the potential for eventually replacing the use of fossil fuels in Iceland with “hydrogen based fuels” and create the world´s first hydrogen economy” Icelandic New Energy

16. But why was Iceland chosen? • Iceland has the unique circumstance that you can operate a “hydrogen based fuel project” in a CO2 neutral environment • Iceland has similar standards and transportation system as most other developed countries and therefore the results can easily be adapted elsewhere • Iceland has experience in converting from one energy source to another Icelandic New Energy

17. But why was Iceland chosen? (cont.) • It is very important that the project makes a big impact (real-scale project) • The new technology needs to be evaluated under severe weather conditions • The government of Iceland has announced that it is aiming to transform Iceland into a hydrogen society in the near future Icelandic New Energy

18. Transformation of Iceland into a hydrogen society Phase 1. Demonstration and evalu- ation project running 3 hydrogen buses in Reykjavík Phase 2. Gradual replacement of the Reykjavik city bus fleet and possibly other bus fleets with fuel cell buses Icelandic New Energy

19. Transformation of Iceland into a hydrogen society (cont.) Phase 3. Introduction of “hydrogen based” fuel cell cars for private transportation Phase 4. Fuel cell vessel demonstration and evalutation project Phase 5. Gradual replacement of the present fishing fleet by fuel cell powered vessels Icelandic New Energy

20. Historical milestones in the Icelandic energy economy AD 2040 Transformation into hydrogen society completed Advent of a hydroelectric hydrogen economy AD 2000 AD 1940 Geothermal space heating AD 1900 Hydroelectric energy AD 1800 Imported liquid fossil fuel AD 1700 Imported coal and coke Wood and peat AD 874 Settlement of Iceland Icelandic New Energy

21. Icelandic hydrogen society In this way transformation of Iceland into a hydrogen economy/society could possibly be completed in the years 2030-2040 Icelandic New Energy