HYDROGEN An Overview

1. HYDROGENAn Overview Tom Gross IF,LLC Foundation for Nuclear Studies Briefing February 4, 2005

2. 2 Iceland has some gas deposits associated with geysers that have lots of hydrogen gas. It is pretty unusual.Iceland has some gas deposits associated with geysers that have lots of hydrogen gas. It is pretty unusual.

3. 3 Fuel Properties Just pick a few interesting properties to point out the differences.Just pick a few interesting properties to point out the differences.

4. 4 Fuel Energy Content Type EC per unit mass EC per unit volume Gasoline 1.0 1.0 Methanol .44 .51 Ethanol .61 .69 Methane 1.1 .29 Lithium ion .019 .035 Hydrogen 2.6 .2 Note: approximate unitization to gasoline, H2 & CH4 under pressure

5. 5 Hydrogen Safety?

6. 6 Hydrogen SafetyAnother Side of the Story Not Explosive In Open Air Not Decomposing Not Self-Igniting Not Oxidizing Not Toxic Not Corrosive Not Polluting Not Cancer Causing

7. 7 Fuel leak simulation Hydrogen on left Gasoline on right Equivalent energy release Single-mode failure assessment Hydrogen Safety

8. 8 From the Congressional Record 1875

9. Hydrogen is interesting because it can be produced from a wide variety of domestic resources and can be used to provide all of our energy service needs.Hydrogen is interesting because it can be produced from a wide variety of domestic resources and can be used to provide all of our energy service needs.

10. 10 Why Hydrogen? Flexibility of source: can be produced from a wide variety of domestically-available resources at any scale Could eliminate price instabilities in the energy market All regions of the world are �in the game� Energy security is possible through increased domestic energy production Significant, positive environmental impacts are possible Could remove energy production and consumption from the environmental equation, both locally and globally Potential for very low impact throughout energy chain Urban air quality Global climate change Flexibility of use: only energy carrier that can (effectively) provide all energy services for all energy sectors

11. 11 Flexibility of H2 Sources Hydrogen can be produced from water; from carbon-containing materials (usually reacting with water); as a byproduct of chemical processes Regional variations in traditional energy resources are no longer an issue Every region has some indigenous fossil or renewable resource that can be used to make hydrogen

12. 12 Environmental Impacts of H2 At point of use (fuel cell), only emission is water. Overall environmental impact, however, is a function of the total hydrogen energy chain, e.g.: Best case: 100% decrease in greenhouse gas emissions (GHG) Worst case: 80% increase in GHG The bottom line is that emissions benefits, or detriments, cannot be known without a detailed understanding of the total system. We can only be assured of the benefit that hydrogen delivered to a site will have no emissions at that site when converted to energy in a fuel cell. Depending on the hydrogen production and distribution pathway, vehicle emissions could increase by as much as 80 percent compared to the level of emissions from conventional vehicles (using the U.S. average grid power mix to produce liquid hydrogen via electrolysis), and decrease by as much as 100 percent with biomass and some other renewable pathways. The bottom line is that emissions benefits, or detriments, cannot be known without a detailed understanding of the total system. We can only be assured of the benefit that hydrogen delivered to a site will have no emissions at that site when converted to energy in a fuel cell. Depending on the hydrogen production and distribution pathway, vehicle emissions could increase by as much as 80 percent compared to the level of emissions from conventional vehicles (using the U.S. average grid power mix to produce liquid hydrogen via electrolysis), and decrease by as much as 100 percent with biomass and some other renewable pathways.

13. 13 Since we are not likely to refuel our cars at the chemical plant, we need to transport the hydrogen to a refueling station. Here we show the total emissions for 3 different delivery methods, assuming 2 different delivery distances. If a pipeline is available for delivery, this is a good environmental solution. There are some hydrogen pipelines in the US, but not enough for most of us. Liquid hydrogen has a higher density than compressed hydrogen gas, so it takes fewer trucks to deliver the hydrogen, and therefore the emissions are lower.Since we are not likely to refuel our cars at the chemical plant, we need to transport the hydrogen to a refueling station. Here we show the total emissions for 3 different delivery methods, assuming 2 different delivery distances. If a pipeline is available for delivery, this is a good environmental solution. There are some hydrogen pipelines in the US, but not enough for most of us. Liquid hydrogen has a higher density than compressed hydrogen gas, so it takes fewer trucks to deliver the hydrogen, and therefore the emissions are lower.

14. 14 Here again is the figure for hydrogen produced from natural gas and delivered various ways and distances to the service station. Is the hydrogen fuel cell better? In all cases, but the long-distance compressed gas. But hold on�is a fuel cell really competing with a conventional gasoline engine, or is the competition a hybrid? Here again is the figure for hydrogen produced from natural gas and delivered various ways and distances to the service station. Is the hydrogen fuel cell better? In all cases, but the long-distance compressed gas. But hold on�is a fuel cell really competing with a conventional gasoline engine, or is the competition a hybrid?

15. 15 Oops. From an environmental standpoint, we need to consider making hydrogen with fewer GHG emissions. We could still use natural gas, but we would need to sequester the CO2. Or, we could look at renewable hydrogen production. Oops. From an environmental standpoint, we need to consider making hydrogen with fewer GHG emissions. We could still use natural gas, but we would need to sequester the CO2. Or, we could look at renewable hydrogen production.

16. 16 Energy Implications From an energy standpoint, if we start with the energy in the natural gas that we need to make 1 kg of hydrogen (the blue bars), we get 78% (remember the number from the diagram) of that energy in the hydrogen (red bars). Now we have to either liquefy the hydrogen and deliver it by truck (sets 1 and 2), compress the hydrogen and deliver it in tube trailers (sets 3 and 4) or compress the hydrogen and deliver it by pipeline (sets 5 and 6). Liquefying hydrogen uses up most of the energy that is �embedded� in the hydrogen, so we end up delivery very little energy value (on a system-wide perspective). The case of compressed gas delivery over large distance is much worse � we actually end up in the hole. What this tells us is that, if we are 1000 miles from the hydrogen production facility, we are not going to deliver the hydrogen in compressed hydrogen tube trailers! You might wonder why anyone would consider liquid hydrogen delivery � if we look at the economic implications, we get an idea of the complexity of energy decision making�From an energy standpoint, if we start with the energy in the natural gas that we need to make 1 kg of hydrogen (the blue bars), we get 78% (remember the number from the diagram) of that energy in the hydrogen (red bars). Now we have to either liquefy the hydrogen and deliver it by truck (sets 1 and 2), compress the hydrogen and deliver it in tube trailers (sets 3 and 4) or compress the hydrogen and deliver it by pipeline (sets 5 and 6). Liquefying hydrogen uses up most of the energy that is �embedded� in the hydrogen, so we end up delivery very little energy value (on a system-wide perspective). The case of compressed gas delivery over large distance is much worse � we actually end up in the hole. What this tells us is that, if we are 1000 miles from the hydrogen production facility, we are not going to deliver the hydrogen in compressed hydrogen tube trailers! You might wonder why anyone would consider liquid hydrogen delivery � if we look at the economic implications, we get an idea of the complexity of energy decision making�

17. 17 Flexibility of H2 Use In the Transportation Sector Desired range can be achieved with on-board hydrogen storage (unlike BEV) Can be used in ICE (with modification, very low emissions); preferred for fuel cell (no emissions); APUs Trains, automobiles, buses, and ships In the Buildings Sector Combined heat, power, and fuel Reliable energy services for critical applications Grid independence In the Industrial Sector Already has an important role as a chemical Opportunities for additional revenue streams

18. 18 Current H2 Production and Distribution (U.S.) 4 industrial gas companies dominate the U.S. marketplace 33 SIC categories served Natural gas used as feedstock for large scale reformer processes Available in many purities: FCs use 99.99% purity Delivered primarily by truck and some pipelines Captive hydrogen production by refineries is largest domestic capability Here are some additional details about current hydrogen production. Most hydrogen production in the U.S. is accounted for by four major industrial gas companies � Air Products and Chemicals, Praxair, Air Liquide America and the BOC Group. SIC means Standard Industrial Classification. Natural gas reforming accounts for 95% of hydrogen production. About 64% of the hydrogen produced is "captive", that is produced and used �inside the fence� of a major industrial complex, such as a refinery. Other production is transported outside the plant boundaries by pipeline or truck. Here are some additional details about current hydrogen production. Most hydrogen production in the U.S. is accounted for by four major industrial gas companies � Air Products and Chemicals, Praxair, Air Liquide America and the BOC Group. SIC means Standard Industrial Classification. Natural gas reforming accounts for 95% of hydrogen production. About 64% of the hydrogen produced is "captive", that is produced and used �inside the fence� of a major industrial complex, such as a refinery. Other production is transported outside the plant boundaries by pipeline or truck.

19. 19 Commercial Production Today Steam Methane Reforming (SMR) 48% of world production Strong economy-of-scale Heat integration within and outside of SMR Overall energy efficiency is affected by the ability to make use of the steam by-product Worldwide hydrogen production, for use as a chemical, is achieved using a variety of resources and processes. Steam methane reforming provides a significant percentage of the hydrogen used for petroleum refining, for fertilizer and methanol production, and as a chemical for use in a wide range of other industries. The commercial production today is at very large scale, which allows the effective use and integration of heat. This has a significant impact on the overall efficiency, and therefore cost-effectiveness, of this production process.Worldwide hydrogen production, for use as a chemical, is achieved using a variety of resources and processes. Steam methane reforming provides a significant percentage of the hydrogen used for petroleum refining, for fertilizer and methanol production, and as a chemical for use in a wide range of other industries. The commercial production today is at very large scale, which allows the effective use and integration of heat. This has a significant impact on the overall efficiency, and therefore cost-effectiveness, of this production process.

20. 20 Commercial Production Today Petroleum refining produces some of the hydrogen it uses within the refinery. As more and more heavy crude oil is processed, the hydrogen balance within the refinery is becoming more negative, meaning additional hydrogen must be purchased or made to meet the refinery hydrogen needs. The production of hydrogen via coal gasification is primarily as a byproduct of coke production, as is not optimized for hydrogen production. Newer gasification processes could significantly increase the amount of hydrogen that can be efficiently produced from coal. Electrolysis of water is an important source of hydrogen. In addition, there is significant byproduct hydrogen from the chloralkali process.Petroleum refining produces some of the hydrogen it uses within the refinery. As more and more heavy crude oil is processed, the hydrogen balance within the refinery is becoming more negative, meaning additional hydrogen must be purchased or made to meet the refinery hydrogen needs. The production of hydrogen via coal gasification is primarily as a byproduct of coke production, as is not optimized for hydrogen production. Newer gasification processes could significantly increase the amount of hydrogen that can be efficiently produced from coal. Electrolysis of water is an important source of hydrogen. In addition, there is significant byproduct hydrogen from the chloralkali process.

21. 21 Hydrogen Uses In The U.S. Ammonia 50% Oil Refining 37% (Captive) Methanol 8% Other 5% Food Oils Metals Semiconductors Float Glass

22. 22 Hydrogen Distribution Methods Pipelines (primarily southeast U.S: ~750 miles) Tanker trucks/tube trailers Rail and Barge Infrastructure: commercially controlled Distance from production to point of use generally within 500 miles Here�s a little bit more on distribution of hydrogen currently. Keep in mind that this "merchant hydrogen", delivered by truck, pipeline and barge, is virtually all for industrial and NASA applications. A major locus of hydrogen production and use is in the industrial centers along the Gulf Coast � Louisiana and Texas. That�s where most of this 750 miles of pipeline is located. Tanker trucks are also used to deliver relatively small amounts to industrial facilities, ordinarily within 500 miles of the hydrogen production site. And hydrogen is barged around Florida, to Cape Canaveral, for example. Here�s a little bit more on distribution of hydrogen currently. Keep in mind that this "merchant hydrogen", delivered by truck, pipeline and barge, is virtually all for industrial and NASA applications. A major locus of hydrogen production and use is in the industrial centers along the Gulf Coast � Louisiana and Texas. That�s where most of this 750 miles of pipeline is located. Tanker trucks are also used to deliver relatively small amounts to industrial facilities, ordinarily within 500 miles of the hydrogen production site. And hydrogen is barged around Florida, to Cape Canaveral, for example.

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24. 24 H2 Financial Highlights Industrial supplier base $6B Wall Street market cap (4 Industrial gas firms) Hydrogen business grows 8% annually Pure hydrogen has wide range of retail prices Hydrogen largely dependent on natural gas as feedstock (costs rising) DoE target price of hydrogen is $2/kg Hydrogen already accounts for a substantial part of the portfolios for the industrial gas producers. The four large industrial gas suppliers in the U.S. have a combined market cap of about $6 billion. Their hydrogen business is growing nicely. If you want some of their hydrogen product at this stage of the game, you will have to pay dearly. Current prices, delivered �outside the fence�, are from $47 to $70 per kilogram � well above the production cost. Since most hydrogen uses natural gas as a feedstock, it is also subject to the vagaries of fluctuating natural gas prices and availability. The Department of Energy�s goal for delivered hydrogen is on the order of $2 per kilogram. Hydrogen already accounts for a substantial part of the portfolios for the industrial gas producers. The four large industrial gas suppliers in the U.S. have a combined market cap of about $6 billion. Their hydrogen business is growing nicely. If you want some of their hydrogen product at this stage of the game, you will have to pay dearly. Current prices, delivered �outside the fence�, are from $47 to $70 per kilogram � well above the production cost. Since most hydrogen uses natural gas as a feedstock, it is also subject to the vagaries of fluctuating natural gas prices and availability. The Department of Energy�s goal for delivered hydrogen is on the order of $2 per kilogram.

25. 25 Delivered H2 Cost Estimates

26. 26 Domestic Resources for Hydrogen Production America is a resource-rich nation Nearly every region of the country has one or more resources that could be used to produce hydrogen Renewables (biomass, wind and solar) Natural gas Coal

27. 27 Natural Gas Reserves The central and intermountain west of the US have excellent natural gas resources.The central and intermountain west of the US have excellent natural gas resources.

28. 28 Coal Reserves These areas also have huge coal reserves. Coal also is plentiful in the Appalachian region. So if we can imagine overlaying these 3 graphs, the whole of the US would have at least one, and often two or three, excellent resource potential for hydrogen.These areas also have huge coal reserves. Coal also is plentiful in the Appalachian region. So if we can imagine overlaying these 3 graphs, the whole of the US would have at least one, and often two or three, excellent resource potential for hydrogen.

29. 29 This figure shows the �excellent� and �good� renewable resources in the US. Keep in mind the white areas as we look at some other domestic resource maps� The Floridians might object to the lack of orange (solar) � this can be explained two ways (not sure which is actually right): (1) factoring in cloud cover, Florida�s solar insulation is not nearly as good as the solar insulation in the desert southwest. Or (2) the map only shows the best of the best resource (biomass outshines solar). I think the first one is better.This figure shows the �excellent� and �good� renewable resources in the US. Keep in mind the white areas as we look at some other domestic resource maps� The Floridians might object to the lack of orange (solar) � this can be explained two ways (not sure which is actually right): (1) factoring in cloud cover, Florida�s solar insulation is not nearly as good as the solar insulation in the desert southwest. Or (2) the map only shows the best of the best resource (biomass outshines solar). I think the first one is better.

30. 30 Production Potential from Domestic Resources As an example, how could we fuel half of the current vehicle fleet with hydrogen? Current consumption in the light-duty vehicle market is 16 quads of gasoline Assume a 2x increase in efficiency with hydrogen fuel cell vehicles For half of the fleet, we would need 4 quads This is about 40 million tons of hydrogen per year (4 times the current domestic hydrogen production) Using only ONE domestic resource, can we make this much hydrogen? We will use a combination of resources, but this is an interesting exercise

31. 31 To produce 40 million tons/year of hydrogen, we would need: 95 million tons of natural gas (current consumption is around 475 million tons/year in all energy sectors) Production Potential from Domestic Resources

32. 32 Potential Nexus with Nuclear Power Nuclear Power Efficient & Distributed Electrolysis Generates Hydrogen and Oxygen From Water Business Opportunity Exists For Nuclear Industry To Produce Hydrogen By Hosting Electrolysis Cheap Hydrogen Necessary For Fuel Cell Success Using Nuclear Power To Fuel Hydrogen Economy Gaining Support In Hydrogen Community

33. 33 Nuclear Industry Capabilities Electricity Land Technical Knowledge Hydrogen Experience Financial Strength Leverage To Obtain H2 Coverage With Insurance Companies

34. 34 So We Can Produce Hydrogen - Now What? Storage of hydrogen is a really tough technical challenge Building a hydrogen delivery and dispensing infrastructure will be expensive It�s not just the transportation sector that can benefit from hydrogen and fuel cells � need to focus on stationary and portable applications also To realize the benefits of a hydrogen economy, we should put a value (cost) on energy security and environmental impacts

35. 35 Barriers to the Use of Hydrogen

36. 36 Hydrogen vs. JP8 Fuel Weight Hydrogen has 2.76x energy content of JP8 by weight. Volume JP8 has 10.3x energy content of gaseous hydrogen by volume Hydrogen Logistics It is important to understand the volumetric relationship of hydrogen and petroleum fuels, because it is an important consideration in determining how hydrogen may be viable for DoD. Weight: On a pound-for-pound basis, hydrogen has 2.76 times the energy content of JP8. Thus the weight of DoD fuel transports would be reduced by over 63% if hydrogen could be substituted on a pound-for-pound basis. Volume: Unfortunately, hydrogen�s volumetric relationship with petroleum fuels is just the opposite � an amount of hydrogen with equivalent energy has a significantly higher volume than petroleum. The volume of gaseous hydrogen needed, when pressurized to 5,000 pounds per square inch (psi), to provide the same energy as one gallon of JP8 would require the storage volume of 10.3 gallons of JP8. The diagram illustrates this relationship. For example, look at the �gaseous H2 5,000 psi� picture and compare it to the JP picture. Obviously, there is a significant difference between the two and this has implications for the potential for hydrogen. It is important to understand the volumetric relationship of hydrogen and petroleum fuels, because it is an important consideration in determining how hydrogen may be viable for DoD. Weight: On a pound-for-pound basis, hydrogen has 2.76 times the energy content of JP8. Thus the weight of DoD fuel transports would be reduced by over 63% if hydrogen could be substituted on a pound-for-pound basis. Volume: Unfortunately, hydrogen�s volumetric relationship with petroleum fuels is just the opposite � an amount of hydrogen with equivalent energy has a significantly higher volume than petroleum. The volume of gaseous hydrogen needed, when pressurized to 5,000 pounds per square inch (psi), to provide the same energy as one gallon of JP8 would require the storage volume of 10.3 gallons of JP8. The diagram illustrates this relationship. For example, look at the �gaseous H2 5,000 psi� picture and compare it to the JP picture. Obviously, there is a significant difference between the two and this has implications for the potential for hydrogen.

37. 37 Where do you think gasoline fits on this chart? Gasoline is WAY off the chart (about 30 on both the x and y axis)Gasoline is WAY off the chart (about 30 on both the x and y axis)

38. 38 Hydrogen Fuel Stations About 60 hydrogen fuel stations worldwide for experimental vehicles Companies and governments supporting hydrogen development are taking different approaches; there are few standard designs Codes and standards are in early formulation; lack of these increases administrative costs of stations

39. 39 These next 4 figures are not meant to be read, but are used to illustrate the complexity of the process to ensure that hydrogen energy systems will be as safe or safer than our current energy system. Many professional groups are involved in developing appropriate codes and standards for hydrogen.These next 4 figures are not meant to be read, but are used to illustrate the complexity of the process to ensure that hydrogen energy systems will be as safe or safer than our current energy system. Many professional groups are involved in developing appropriate codes and standards for hydrogen.

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41. 41 Organizations Supporting Hydrogen RD&D Industry Major Vehicle Manufacturers Energy Providers Fuel Cell Developers Government Department of Energy Department of Defense States

42. 42 Hydrogen R&D Initiatives U.S. Government Hydrogen Fuel Initiative � Announced Jan. 2003 FreedomCAR and Fuel Partnership States E.g., California�s Fuel Cell Partnership, Hydrogen Highway International International Partnership for the Hydrogen Economy

43. 43 A Commercialization Pathway Initially, distributed stationary electric power Remote, off-grid Uninterruptible power supply Then high volume energy carrier Generators Auxiliary power units Mobile power Here, in one slide, is our thinking about how hydrogen might gain a foothold, and then take off, as a serious energy carrier. Over the next decade, based on the advances being made, fuel cells will be ready to take on a role in distributed stationary generation. They will be considered, for example, by organizations and individuals who want a quiet, zero polluting machine to take over when power from the grid goes off � e.g., because of a hurricane. Since they will be in the market for a source of hydrogen, an opportunity could arise for enterprising organizations to get into the hydrogen game. After 2015 or 2020, and assuming successful achievement of technology development goals, the way could be paved for hydrogen as a fuel source for primary distributed power, and then mobile power, applications. Here, in one slide, is our thinking about how hydrogen might gain a foothold, and then take off, as a serious energy carrier. Over the next decade, based on the advances being made, fuel cells will be ready to take on a role in distributed stationary generation. They will be considered, for example, by organizations and individuals who want a quiet, zero polluting machine to take over when power from the grid goes off � e.g., because of a hurricane. Since they will be in the market for a source of hydrogen, an opportunity could arise for enterprising organizations to get into the hydrogen game. After 2015 or 2020, and assuming successful achievement of technology development goals, the way could be paved for hydrogen as a fuel source for primary distributed power, and then mobile power, applications.

44. 44 So � Why Hydrogen? It�s all about security Energy security Diverse domestic sources Flexibility of system Economic security International leadership in technology development and deployment Balance of payments Price stability Environmental security Potential to reduce GHG emissions with renewables or fossil with sequestration Air quality improvement potential

45. 45 References U.S. Department of Energy www.eere.energy.gov/hydrogenandfuelcells/ National Hydrogen Association www.hydrogenus.com State of California hydrogenhighway.ca.gov

46. 46 Contacts David Haberman Tom Gross President Associate IF, LLC IF,LLC Tel: 561-989-9494 703-273-0631 E-mail: ifdhllc@aol.com tgenergy@cox.net www.ifdhllc