Title: Energy Independence: Preparing Minnesota for the Coming Hydrogen Economy
1Energy IndependencePreparing Minnesota for the
Coming Hydrogen Economy
- Rolf Nordstrom
- Critical Issues Research
- Minnesota Planning
- Minnesota H2 Initiative Forum, March 2003
2What is the Critical Issues Team_at_Minnesota
Planning?
-
- We identify emerging issues and provide
information and analysis to the Governor and
Legislature on topics that - Are fundamental to the states long-term health,
and therefore strategic in nature - Are in need of an impartial, outside
perspective - Have implications across sectors (economic,
environmental and social)
3Shift to hydrogen has become national policy
- The day of the hydrogen economy is within sight.
. . - U.S. Energy Secretary Spencer Abraham
4Presentation Overview
- ABCs of hydrogen and fuel cells
- A look at the market
- Implications for Minnesota
- Progress in other states and nations
- Next steps
5The Birth of Hydrogen
- H2 first discovered around the end of the 15th
century - Took another 200 yrs. to classify and describe it
6Characteristics of Hydrogen
- Lightest most abundant element
- Makes up 11.19 of water
- Present in most organic compounds.
7Characteristics of Hydrogen
- Energy carrier, NOT energy source
- Can do everything that fossil fuels do but
without pollution
8Sources of Hydrogen
- Natural gas
- Coal
- Gasoline
- Ethanol
- Methanol
- Biomass
- Water
9Hydrogen production options
- Steam reforming
- Partial oxidation
- Biomass gasification and pyrolysis
- Fermentation photosynthesis
- Electrolysis (cleanest wind, solar,
micro-hydropower)
10Inexhaustible Energy Cycle
11Current uses of Hydrogen
- Fertilizer, dyes, drugs and plastics
- Hydrogenate oils and fats
- Welding, coal gasification, methanol production
- Space Shuttle and other rockets
12How Safe is Hydrogen?
- What about the Hindenburg?
- Ford Co. study
- Conclusion
- About as safe as other fuels
13Potential uses of Hydrogen
14Potential uses of Hydrogen
- Burned directly in largest modified internal
combustion engines - Used in fuel cells to produce clean electricity
in a wide variety of applications
15Fuel cells. . .
-
- Are they the microchip of the hydrogen age?
16What are fuel cells?
- Like a battery, but doesnt run down
- Makes electricity chemically
- Emits only water vapor
17Where did fuel cells come from?
- First one in 1839 - Sir William Grove
- Serious interest in U.S. in 1960s
- Provide electricity, water for space shuttle.
18H Power Corp.s Wheelchair
19Fuel Cells for Your Cell Phone
20Fuel Cells for your house
21Fuel cells for your business
22GMs fuel cell engine model
232nd Generation Transit Buses in Chicago
24Ford P2000 Prodigy
25Emergency backup power
- The AirGen offers
- Uninterruptible power for mission critical
functions - Surge protection
- 5,995 retail
Coleman Powermate 1 kW
26Barriers to fuel cell commercialization
- High cost
- Lack of fueling infrastructure
- Efficient, affordable hydrogen production and
storage
27Benefits of Fuel Cells?
- Can be nearly any size
- Twice as efficient as gasoline-powered vehicles
- Low or zero harmful emissions
- No moving parts
- Could serve as mini power plants
28A look at the market
- private sector investment since 1995. . .
- estimated at
- 1-3 billion annually
29Fuel cell market potential
- 2000 218 million
- 2005 2.4 billion (The Freedonia Group, Inc.)
- 2009 7 billion (Business Com. Company, Inc.)
- 2020 1.7 trillion (Price Waterhouse-Coopers)
- 2030 750,000 jobs (U.S. Dept. of Energy)
30How much do fuel cells cost?
- Today 3,000 to 4,500 per kilowatt (stationary
use) - Must be half that amount to compete
31Demand for Vehicles
- 12 of world can afford a car
- China where US was in 1913
- Car ownership expected to rise from 700 m to 3
billion
32Hydrogen for vehicles
- 540 billion cubic meters 10 of transportation
demand - Compressing H2 gas 6-12 of the energy in it
- Gaseous H2 3.75 - 5.50 per 100 scf
- Making H2 liquid 25-30
- Liquid H2 1.50 - 200 per 100 scf
33Fuel cell vehicle characteristics
- 5000 psi tank 3kg H2
- 125 miles (85 of all trips)
- 10,000 psi tanks close
- GM assumes 300 miles needed
- DOE expects 60 mpg
- H2 4-6 times cost of gasoline
- GM says price within factor of 1.3
34How long before fuel cell vehicles are widespread?
- Automakers racing to be first
- Some leasing to businesses 2003
- First vehicles likely to be fleets
35How long before fuel cell vehicles widespread in
US?
- Probably not more than 5 until after 2008
- May overtake conventional vehicles by 2015 to 2018
36Implications for Minnesota
- Retain more of the 9 billion we spend on energy
inside state - Take national leadership on renewables/hydrogen
link - Foster new industry cluster
- Foster rural economic development
37Minnesota Energy Demand Continues to Rise
- Per capita use rose 13 (1990-1999)
- Per capita VMT up 33 in past decade
- Population up 12
- Gas consumption rose gt twice pop. growth rate
(1990-1998)
38Tapping Minnesotas Wind
- Minnesotas wind potential 7 times current
electricity use. - Minnesota Department of Commerce
- Hydrogen may offer way to store / transport wind
to market
39Electricity to Hydrogen
- .14 kWh electricity 1 scf H2
- 1 kWh electricity 7 scf H2
40Hydrogen from Wind
- Co-production of electricity hydrogen
- Wind electricity sent on grid for on-site
electrolysis - Would need pipelines
- H2 from wind gt20/GJ will drop a lot by 2010
41Sample wind scenario
- 500 MW wind
- 900 / kW wind
- Electrolyzer 800/kW _at_ 90 efficient
- Fuel Cell 2,500/kW
- 250 m pipeline _at_ 2 m. per mile
- Fuel cell efficiency 50
- Service life 30 years
- 1st 10 years with PTC
- 0.042 / kWhr
42Hydrogen from biomass
- Typically 6 H2 by weight
- Steam reforming
- Gasification steam reformingwater/gas shift
- Anaerobic digestion above
- Glucose to H2
43Choosing the Biomass
- Options governed by
- Cost
- Distribution
- Mass
- Physical/chemical characteristics
- Moisture energy content
44Ethanol to hydrogen option
- Solves pure H2s storage infrastructure issues
- Easier to reform than gasoline
- Safer to handle than methanol
- Need lower production costs
- Could produce 3-4 b. gallons by 2010 10 million
FC vehicles
45How much H2 from biomass gasification reforming?
- 1 metric ton dry biomass 74 gal. gasoline
- 3 tons dry biomass to power FC vehicle _at_ 60 mpg,
driving 12,000/year
46Net energy equation
- Reforming NG 67 efficient on lifecycle basis
- Biomass gt 100 efficient because energy not
considered consumed - Net H2 energy ratio 17 to 1
47Economics of biomass to H2?
- Plant-gate cost 2.30/kg
- Twice cost of natural gas reforming
- Distributed production price competitive
- Making additional products improves economics
48Bio-refineries would improve the economics
- If also producing
- Electricity
- Thermal energy
- Chemicals
- Fuels
- Plastics
- Animal feed
- Other industrial products
49Next steps on biomass
- Continue research on feedstock options
- RD on conversion technologies
- Biomass could be among most cost-effective ways
to transition from fossil fuels
50Wind vs. Biomass?
- Can complement each other will need both
- H2 from biomass can be more closely matched to
demand - Biomass less flexible wind can be sent over grid
for remote electrolysis
51Other H2 Production Options for Minnesota to
Explore
- Methane from landfills, wastewater treatment and
animals feedlots - Photovoltaics
- Micro-hydroelectric
- Hydrogen from glucose-rich waste streams
52CT Dairy Farm Example
- 4,000 lbs. manure
- Anaerobic digester
- 25kW solid-oxide fuel cell
- Provides all energy needs
- CO2 to farms greenhouse
53Summary of Hydrogens Benefits for Minnesota
- Energy independence
- Economic development
- More flexible, decentralized energy system
- Cleaner environment
54Key Drivers Behind a Hydrogen Economy
- National security energy independence
- Concerns over future oil prices
- Trend toward decentralized energy production
- The need to store intermittent renewable energy
55Key Drivers Behind a Hydrogen Economy
- Rapid progress on fuel cells
- Growing concerns over climate change
- Federal policy shift toward fuel cells (DOD calls
them critical technology)
56What other states are doing
- At least 18 states promoting fuel cells
- Financial assistance for pilots
- Tax incentives
- Renewable Portfolio Standards
57Ohio
- Governor Bob Taft has launched 3-year 100
million fuel cell initiative - Will build 1st public fueling station in two years
58Michigan
- Governor John Engler launched 50 million effort
over next 5 years - 700-acre alternative energy research center
59International efforts on hydrogen fuel cells
- Europe 2 billion (5yrs)
- Japan 220 million
- China 120 million
- Canada 116 million
- Iceland Switch by 2030
60Possible Next Steps for Minnesota
- Make hydrogen shift state policy
- Develop hydrogen roadmap
- Establish pilots H2 production incentives
- Launch public education campaign
- Fund research on
- Wind and biomass-to-hydrogen
- Centralized vs. distributed production
61Thank you!
- Critical Issues Team _at_ Minnesota Planning
- 658 Cedar Street, Suite 300
- St. Paul, MN 55155
- 651-297-5228 PH / 296-3698 FAX
- Rolf.Nordstrom_at_state.mn.us
- www.mnplan.state.mn.us