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Hydr og en Fu el

Ce ll T echno lo g y
Will it contribute to energy independence?
Stephen Cohen and Nathan Bonnett,
May 18, 2007
 Technology overview
 Hydrogen fuel development
 Law, legislation, and administrative
agency treatment
What is a Fuel Ce ll?

 A Fuel Cell is an electrochemical device

that combines hydrogen and oxygen to
produce electricity, with water and heat
as its by-product.
Why is Fuel Cell
Te chnolo gy Im portant?
 Since conversion of the fuel to energy
takes place via an electrochemical
process, not combustion
 It is a clean, quiet and highly efficient
process- two to three times more efficient
than fuel burning.
Ho w d oes a Fuel Cell
wo rk?
 It operates similarly to a battery, but it
does not run down nor does it require
 As long as fuel is supplied, a Fuel Cell
will produce both energy and heat
Ho w d oes a Fuel Cell
wo rk?
 A Fuel Cell consists of two catalyst
coated electrodes surrounding an
 One electrode is an anode and the other
is a cathode
Ho w d oes a Fuel Cell
wo rk?
 The process begins when Hydrogen
molecules enter the anode
 The catalyst coating separates
hydrogen’s negatively charged electrons
from the positively charged protons
Ho w d oes a Fuel Cell
wo rk?
 The electrolyte allows the protons to
pass through to the cathode, but not the
 Instead the electrons are directed
through an external circuit which creates
electrical current
Ho w d oes a Fuel Cell
wo rk?
 While the electrons pass through the external
circuit, oxygen molecules pass through the
 There the oxygen and the protons combine
with the electrons after they have passed
through the external circuit
 When the oxygen and the protons combine
with the electrons it produces water and heat
Ho w d oes a Fuel Cell
wo rk?
Ho w d oes a Fuel Cell
wo rk?
 Individual fuel cells can then be placed in
a series to form a fuel cell stack
 The stack can be used in a system to
power a vehicle or to provide stationary
power to a building
Ma jo r Typ es o f F uel
Ce lls
 In general all fuel cells have the same
basic configuration - an electrolyte and
two electrodes
 Different types of fuel cells are classified
by the kind of electrolyte used
 The type of electrolyte used determines
the kind of chemical reactions that take
place and the temperature range of
Ma jo r Typ es o f F uel
Ce lls
 Proton Exchange Membrane
 This is the leading cell type for
passenger car application
 Uses a polymer membrane as
the electrolyte
 Operates at a relatively low
temperature, about 175 degrees
 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
 Sensitive to fuel impurities
Ma jo r Typ es o f F uel
Ce lls
 Direct Methanol (a subset of PEM)
 Expected efficiencies of 40% plus low operating
temperatures between 120-190 degrees
 Also uses a polymer membrane as the electrolyte
 Different from PEM because the anode catalyst is
able to draw hydrogen from methanol without a
 Used more for small portable power applications,
possibly cell phones and laptops
Ma jo r Typ es o f F uel
Ce lls
 Phosphoric Acid
 This is the most commercially
developed fuel cell
 It generates electricity at more
than 40% efficiency
 Nearly 85% of the steam
produced can be used for
 Uses liquid phosphoric acid
as the electrolyte and
operates at about 450
degrees F
 One main advantage is that it
can use impure hydrogen as
Ma jo r Typ es o f F uel
Ce lls
 Molten Carbonate
 Promises high fuel-to-electricity efficiency and the ability
to utilize coal based fuels
 Uses an electrolyte composed of a molten carbonate salt
 Require carbon dioxide and oxygen to be delivered to the
 Operates at extremely high temperatures 1200 degrees
 Primarily targeted for use as electric utility applications
 Have been operated on hydrogen, carbon monoxide,
natural gas, propane, landfill gas, marine diesel and
simulated coal gasification products
Ma jo r Typ es o f F uel
Ce lls
 Molten Carbonate Fuel
 Because of the extreme
high temperatures, non-
precious metals can be
used as catalysts at the
anode and cathode which
helps reduces cost
 Disadvantage is durability
 The high temperature
required and the corrosive
electrolyte accelerate
breakdown and corrosion
inside the fuel cell
Ma jo r Typ es o f F uel
Ce lls
 Solid Oxide
 Uses a hard, non-porous
ceramic compound as the
 Can reach 60% power-
generating efficiency
 Operates at extremely high
temperatures 1800 degrees
 Used mainly for large, high
powered applications such as
industrial generating stations,
mainly because it requires
such high temperatures
Ma jo r Typ es o f F uel
Ce lls
 Alkaline
 Used mainly by military and space programs
 Can reach 70% power generating efficiency, but
considered to costly for transportation applications
 Used on the Apollo spacecraft to provide electricity
and drinking water
 Uses a solution of potassium hydroxide in water as
the electrolyte and operates at 75 -160 degrees
 Can use a variety of non-precious metals as catalyst
at the anode and cathode
Ma jo r Typ es o f F uel
Ce lls
 Alkaline Fuel Cell
 Requires pure hydrogen
and oxygen because it is
very susceptible to carbon
 Purification process of the
hydrogen and oxygen is
 Susceptibility to poisoning
affects cell’s lifetime which
also affects the cost
Ma jo r Typ es o f F uel
Ce lls
 Regenerative Fuel Cells
 Currently researched by NASA
 This type of fuel cell involves a closed loop form of
power generation
 Uses solar energy to separate water into hydrogen
and oxygen
 Hydrogen and oxygen are fed into the fuel cell
generating electricity, heat and water
 The water byproduct is then recirculated back to the
solar-powered electrolyser beginning the process
Imp orta nce o f
Hyd ro gen
 Fuel Cells require highly purified
hydrogen as a fuel
 Researchers are developing a wide
range of technologies to produce
hydrogen economically from a variety of
resources in environmentally friendly
Imp orta nce o f
Hyd ro gen
 Hydrogen is a secondary energy
resource, meaning it must be made from
another fuel
 Hydrogen can be produced from a wide
variety of energy resources including:
 Fossil fuels, such as natural gas and coal
 Nuclear energy
 Renewable resources, such as solar,water,
wind and biomass
Hyd ro gen Pr oductio n

 The biggest challenge regarding

hydrogen production is the cost
 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
Hyd ro gen Pr oductio n

 There are three general categories of

Hydrogen production
 Thermal Processes
 Electrolyte Processes
 Photolytic Processes
Hyd ro gen Pr oductio n

 Thermal Processes
 Natural Gas Reforming
 Gasification
 Renewable Liquid Reforming
Hyd ro gen Pr oductio n
 Natural Gas Reforming
 Steam Methane Reforming
 Hydrogen is produced from methane in natural
gas using high-temperature steam
 Methane reacts with the steam in presence of a
catalyst to produce hydrogen
 This process accounts for about 95% of the
hydrogen used today in the U.S.
 Partial oxidation
 Produces hydrogen by burning methane in air
Hyd ro gen Pr oductio n

 Gasification
 Process in which coal or biomass is
converted into gaseous components by
applying heat under pressure and in the
presence of steam
 A subsequent series of chemical reactions
produces a synthesis gas which reacts with
steam to produce more hydrogen that can
be separated
Hyd ro gen Pr oductio n

 Renewable Liquid Reforming

 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
 This process is very similar to reforming
natural gas
Hyd ro gen Pr oductio n

 Electrolytic Processes
 Electrolytic processes use an electric current
to split water into hydrogen and oxygen
 The electricity required can be generated by
using renewable energy technologies such
as wind, solar, geothermal and hydroelectric
Hyd ro gen Pr oductio n

 Photolytic Processes
 Uses light energy to split water into
hydrogen and oxygen
 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
Hyd ro gen Pr oductio n

 Auto manufacturers have worked on

developing technology that would allow
fuel cell cars to continue using gasoline
 A “reformer” on the fuel cell car would
convert the gasoline to hydrogen
onboard the automobile
 Funding for this technology has been
pulled due to unsatisfactory efficiency
Ho w wi ll the hyd ro gen
be st ored?
 Developing safe, reliable, compact and
cost-effective hydrogen storage is one of
the biggest challenges to widespread use
of fuel cell technology
 Hydrogen has physical characteristics
that make it difficult to store large
quantities without taking up a great deal
of space
Ho w wi ll the hyd ro gen
be st ored?
 Hydrogen will need to be stored onboard
vehicles, at hydrogen production sites,
refueling stations and stationary power
 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)
Ho w wi ll the hyd ro gen
be st ored?
 If the hydrogen is compressed and
stored at room temperature under
moderate pressure, too large a fuel tank
would be required
 Researchers are trying to find light-
weight, safe, composite materials that
can help reduce the weight and volume
of compressed gas storage systems
Ho w wi ll the hyd ro gen
be st ored?
 Liquid hydrogen could be kept in a smaller tank
than gaseous hydrogen, but liquefying
hydrogen is complicated and not energy
 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
Ho w wi ll the hyd ro gen
be st ored?
 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
Ho w wi ll the hyd ro gen
be st ored?
 Scientists are researching Materials-based
 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
 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
Ho w wi ll the hyd ro gen
be st ored?
 Because hydrogen is thought to be an
alternative fuel for automobiles, much of
the research for hydrogen storage is
focused on onboard vehicles
 Scientists are attempting to develop
technology that can rival the performance
and cost of gasoline fuel storage systems
Ho w wi ll the hyd ro gen
be st ored?
 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
 This large of a tank would add to the
overall weight of the car and reduce fuel
Ho w c an F uel Cell
technology be used?
 Transportation
 Stationary Power Stations
 Telecommunications
 Micro Power
How c an F uel Cell
te chnology be used?
 Transportation
 All major automakers are
working to commercialize a fuel
cell car
 Automakers and experts
speculate that a fuel cell vehicle
will be commercialized by 2010
 50 fuel cell buses are currently in
use in North and South America,
Europe, Asia and Australia
 Trains, planes, boats, scooters,
forklifts and even bicycles are
utilizing fuel cell technology as
How c an F uel Cell
te chnology be used?
 Stationary Power Stations
 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
 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
How c an F uel Cell
te chnology be used?
 Telecommunications
 Due to computers, the Internet and
sophisticated communication networks there
is a need for an incredibly reliable power
 Fuel Cells have been proven to be 99.999%
How c an F uel Cell
te chnology be used?
 Micro Power
 Consumer electronics
could gain drastically
longer battery power with
Fuel Cell technology
 Cell phones can be
powered for 30 days
without recharging
 Laptops can be powered
for 20 hours without
What a re the benefits of
Fuel C ell technology?
 Physical Security
 Reliability
 Efficiency
 Environmental Benefits
 Battery Replacement/Alternative
 Military Applications
What a re the benefits of
Fuel C ell technology?
 Physical Security
 Both central station power generation and
long distance, high voltage power grids can
be terrorist targets in an attempt to cripple
our energy infrastructure
 Fuel Cells allow the country to discontinue
reliance on these potential targets
What a re the benefits of
Fuel C ell technology?
 Reliability
 U.S. businesses lose $29 Billion a year from
computer failures due to power outages
 More reliable power from fuel cells would
prevent loss of dollars for U.S. Businesses
 Properly configured fuel cells would result in
less than one minute of down time in a six
year period
What a re the benefits of
Fuel C ell technology?
 Efficiency
 Because no fuel is burned to make energy,
fuel cells are fundamentally more efficient
than combustion systems
 Additionally when the heat comes off of the
fuel cell system it can be captured for
beneficial purposes
 This is called Cogeneration
What a re the benefits of
Fuel C ell technology?
 Efficiency
 The gasoline engine in a conventional car is less
than 20% efficient in converting the chemical energy
in gasoline into power
 Fuel Cell motors are much more efficient and use
40-60% of the hydrogen’s energy
 Fuel Cell cars would lead to a 50% reduction in fuel
 Fuel Cell vehicles can be up to 3 times more
efficient than internal combustion engines
What a re the benefits of
Fuel C ell technology?
 Efficiency
 Fuel Cell power generation systems in
operation today achieve 40% to 50% fuel-to-
electricity efficiency
 In combination with a turbine, electrical
efficiencies can exceed 60%
 When Cogeneration is used, fuel utilization
can exceed 85%
What a re the benefits of
Fuel C ell technology?
 Environmental Benefits
 Fuels cells can reduce air pollution today
and offer the possibility of eliminating
pollution in the future
What a re the benefits of
Fuel C ell technology?
 Environmental Benefits of Fuel Cell
Power Generation
 A fuel cell power plant may create less than
one ounce of pollution per 1,000 kilowatt-
hours of electricity produced
 Conventional combustion generating
systems produce 25 pounds of pollutants for
the same electricity
What a re the benefits of
Fuel C ell technology?
 Environmental Benefits of Fuel Cell
 Fuel Cell Vehicles with hydrogen stored on-
board produce ZERO POLLUTION in the
conventional sense
 The only byproducts of these Fuel Cell
vehicles are water and heat
What a re the benefits of
Fuel C ell technology?
 Environmental Benefits of Fuel Cell
 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
What a re the benefits of
Fuel C ell technology?
 Battery replacement/alternative
 Fuel Cell replacements for batteries would
offer much longer operating life in a
packaged of lighter or equal weight
 Additionally, Fuel Cell replacements would
have an environmental advantage over
batteries, since certain kinds of batteries
require special disposal treatment
What a re the benefits of
Fuel C ell technology?
 Military Applications
 Fuel Cell technology in the military can help
save lives because it reduces telltale heat
and noise in combat
 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
Ch alle nges t o F uel Ce ll
Te chnolo gy
 Cost
 The cost of fuel cells must be reduced to
compete with conventional technologies
 Conventional internal combustion engines
cost $25-$35/kW; a fuel cell system would
need to cost $30/kW to be competitive
Ch alle nges t o F uel Ce ll
Te chnolo gy
 Durability and Reliability
 Durability of fuel cell systems have not yet been
adequately established
 The durability standard for automobiles is
approximately 150,000 miles and the ability to
function under normal vehicle operating conditions
 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
Ch alle nges t o F uel Ce ll
Te chnolo gy
 System Size
 The size and weight of current fuel cell
systems must be reduced to attain market
acceptance, especially with automobiles
Legal Environment
Legal Environment
 Current Law
 Federal and State
 Incentives
 Federal and State
 Proposed Legislation
 Federal
 Codes and Standards
 Administrative Agency Treatment
Legal Environment


Architecture Technology Law

 Energy Policy Act of 2005
 Things to keep in mind:

 In many cases, the provisions require further rulemaking by the

appropriate agencies (IRS, DOE, EPA, DOT, etc.)

 In some instances, the funds must still be appropriated through a

separate federal budgeting process

 The authorized funding listed indicates ceiling amounts that

federal agencies may request for the defined activity

 $1.3 billion tax reductions for alternative motor vehicles and fuels
(hydrogen, ethanol, methane, liquified natural gas, propane)
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 703: Alternative Compliance for State

and Alternative Fuel Provider Fleets
 Requires certain fleets to acquire a percentage of AFVs
each year
 New section provides for waiver of AFV acquisition if a
petroleum reduction plan is implemented; fuel cell vehicles
could help
 “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”
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct §§ 721-723: Advanced Vehicles

Demonstration and Pilot Program
 Establishes a competitive grant program,
administered by Clean Cities, to fund up to 30
geographically dispersed advanced vehicle
demonstration projects.

 EPAct 2005 authorizes $200 million (until

expended) for this program.
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 743: Fuel Cell School Buses

 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.

 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.
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 773: Study of Reducing Use of Fuel

for Automobiles
 Directs NHTSA to study feasibility and effects of
significantly reducing petroleum consumed by
automobiles by model year 2014

 Potential impacts fuel cell vehicles can make towards

petroleum reduction
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 773: Study of Reducing Use of Fuel for

 “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”

 Viewed as “long-range breakthrough technology”

Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 782: Federal and State Procurement of

Fuel Cell Vehicles and Hydrogen Energy Systems
 Requires federal fleets to begin leasing or purchasing fuel
cell vehicles and hydrogen energy systems no later than
January 1, 2010

 DOE shall provide incremental cost funding and

exemptions if the vehicles are not available or appropriate
for fleet needs

 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
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 1341: Alternative Motor Vehicle Credit

and Fuel Cell Motor Vehicle Credit
 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

 Purchasers can receive up to a $40,000 credit

depending on GVWR

 Typical passenger vehicles can receive up to $5000

Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 1341: Alternative Motor Vehicle Credit

and Fuel Cell Motor Vehicle Credit
 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

 Also available for medium and heavy-duty fuel cell


 For tax-exempt purchasers, credit can be passed back to

Energy Policy Act of 2005
Programs Connected with Fuel Cells
 EPAct § 1342: Alternative Fuel Infrastructure
Tax Credit
 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

 Buyers of residential refueling equipment can receive

$1,000 credit

 Expires in 2009, except for hydrogen (2014)

Energy Policy Act of 2005
Programs Connected with Fuel Cells

 EPAct § 1825: Fuel Cell and Hydrogen

Technology Study
 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

 and the transition from petroleum to hydrogen in a

significant percentage of vehicles sold by 2020
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 § 783 Federal Procurement of Stationary,

Portable, and Micro Fuel Cells
 to stimulate acceptance by the market of stationary,
portable, and micro fuel cells; and

 to support development of technologies relating to

stationary, portable, and micro fuel cells.
Energy Policy Act of 2005
Programs Connected with Fuel Cells

 There are also more programs in EPAct 2005

that directly or indirectly implicate fuel cell
 Title VIII is all about hydrogen, including
 appropriations
 codes and standards
 task force

 Title XVI is about climate change

Clean Air Act
Programs Connected with Fuel Cells
 Clean Air Act (42 U.S.C §§ 7401 to 7671q)
 1990 Amendments include provisions to encourage or
mandate the use of alternative fuels and clean fuel
 CAA § 211 (42 U.S.C. § 7545) Emission Standards for
moving Sources
 CAA §§ 241-250 (42 U.S.C §§ 7581-7590) Clean Fuel
 clean alternative fuels include hydrogen
 clean-fuel vehicles in light-duty, heavy duty, fleet, federal agency
Select State Law

 State law covers fuel cells indirectly

 Acquisition requirements
 Fuel taxes
 Fuel production standards
 Energy-based economic development plans
II. Incentives

 Federal Incentives
 Renewable Energy Systems and Energy
Efficiency Improvement Grants
 USDA made $22.8 million available for the purchase
of renewable energy systems and energy
improvements for agricultural producers and small
rural businesses
 Eligible projects include biofuels, hydrogen, and
energy efficiency improvements, as well as solar,
geothermal, and wind
II. Incentives
 Alternative Fuel Infrastructure Tax Credit
 05/06: IRS established a form which provides the
mechanism to claim the credit on as many properties
as developed

 Alternative Motor Vehicle Credit

 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
Federal Incentives

 Qualified Alternative Fuel Motor Vehicle Credit

 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.

 Also establishes that manufacturers (conversion system

installers) must provide certification to the IRS that a
vehicle is eligible for a tax credit.
Select State Incentives

 Last year: 25 incentives from 15

states and D.C.
 Many relate to low or zero emission
vehicle tax credits and alternative fuel
tax exemptions
 Today: 222 incentives from 47 states
and D.C.
 Same focus
Select State Incentives
 AFV Parking Incentives in L.A. (pilot program)
 Free meter parking for select AFVs
 Display sticker
 Must obey all other parking laws
Select State Incentives

 Alternative Fuel Incentive

 Allocating $25 million in incentives for:
 Projects that promote high-
efficiency alternative fuel fleet
 the construction of both publicly
accessible alternative fuel retail
refueling stations and fleet
refueling facilities
 production incentives for
alternative fuel production in
Select State Incentives
 Hydrogen Energy Plan
 “California Hydrogen Highway Network”
 Commitment by 2010 to
 Build a network of hydrogen refueling stations
 Ensure that hydrogen vehicles are
commercially available for purchase
 Incorporate hydrogen vehicles into the state
 Develop safety standards for hydrogen
refueling stations and vehicles, and
 Establish incentives to encourage the use of
hydrogen vehicles and development of
renewable sources of energy for hydrogen
Select State Incentives
 Hydrogen Specifications

 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

 Until ANSI formally adopts standards for hydrogen fuels

Select State Incentives

 Carl Moyer Memorial Air

Quality Standards Attainment

 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
Select State Incentives

 Illinois
 Alternate Fuels Rebate Program
 Provides a rebate for 80% of the incremental cost
of purchasing an AFV (up to $4,000),
 80% of the cost of federally certified alternative
fuel vehicle conversions (up to $4,000), and
 the incremental cost of purchasing alternative
 Includes hydrogen, but the focus is clearly on
E85 and biodiesel
Select State Incentives
 North Dakota
 Hydrogen to power a fuel cell is exempt from sales tax
through 06/10

 Oklahoma
 Alternative Fuel Vehicle Technician Training
 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

 Arkansas
 Fuel Cell Income Tax Credit
 Credit for 50% of the amount spent on a facility that produces
fuel cells
III. Proposed Legislation

 Federal House and Senate proposals

 Currently 26 bills containing reference to fuel
 Many tax incentives and incentive extenders
 Focus largely on petroleum dependence
 National security
Federal House & Senate Proposals

 American Automobile Industry Promotion Act (S. 1055,

H.R. 1915) 3/29/07, 4/18/07
 comprehensive development and commercialization of diverse electric
drive transportation technologies;

 public investments to help expand innovation, industrial growth, and

jobs in the United States;

 expand existing electric infrastructure to accelerate the widespread

commercialization of plug-in hybrid fuel cell vehicles;

 to improve the energy efficiency of and reduce the petroleum use in

Federal House & Senate Proposals
 Securing America's Energy Independence Act of 2007
(H.R. 550, S. 590) 1/18/07, 2/14/07
 Amends tax code to extend the investment tax credit with respect to
qualified fuel cell property. Same as Senate bill
 Extends from 2008 to 2016 for qualified fuel cell properties:
 Investment tax credit, residential credit up to $500, 3-year
accelerated depreciation period

 Clean and Green Renewable Energy Tax Credit (H.R.

1596) 3/20/07
 Would extend the investment tax credit to 2030
Federal House & Senate Proposals
 DRIVE ACT (Dependence Reduction through
Innovation in Vehicles and Energy Act) (S. 339, H.R.
670) 1/18/07, 1/24/07
 Accelerated market penetration of advanced technology vehicles
and other oil saving technologies, efficient transportation and clean
alternative fuels
 maintains a policy of fuel neutrality
 Financial incentives to encourage production and consumer
purchase of oil saving technologies and fuels
 Promote a nationwide diversity of clean alternative motor vehicle
fuels and advanced motor vehicle technology
Federal House & Senate Proposals

 H-Prize Act of 2007 (S. 365, H.R. 632) 1/23/07

 Authorizes the Secretary of Energy to establish monetary prizes
for achievements in overcoming scientific and technical barriers
associated with hydrogen energy
 Hydrogen production, distribution, storage, and utilization:
 Prototypes of hydrogen-powered vehicles or other hydrogen-
based products: $4,000,000
 Transformational changes in technologies for the distribution or
production of hydrogen that meet or exceed far-reaching objective
criteria: $10,000,000
Federal House & Senate Proposals
 Global Warming Reduction Act of 2007 (S. 485) 2/1/07
 Takes a global warming focus, rather than petroleum reduction or
national security
 Comprehensive global warming pollution reductions
 Tax incentives for advanced technology vehicles
 International and corporate obligations
 National Climate Change Vulnerability and Resilience Program

 Energy efficiency performance standards for stationary fuel cells-

“electricity savings”
 Fuel cell vehicles included in tax incentives
 Vulnerability scorecard
IV. Codes & Standards
 Multitude of fuel cell infrastructure codes and
standards in United States and Internationally
 ISO, SAE, UL, CSA, and others
 System design and power systems
 Vehicles
 Fuels, fuel tanks, and dispensing
 Operating instructions and safety
 Testing and evaluation
 Will ANSI develop?
Administrative Agency Programs

 Department of Transportation
 Department of Energy
 Environmental Protection Agency
Department of
Transpor tation
Federal Transit Agency
 FTA Fuel Cell Transit Bus
 Georgetown Fuel Cell Transit Bus Program
 Began the logical transit connection in 1994
 Generation II buses in 1998 and 2001
 Generation III bus program development began in 2006
 Demonstrate 3 hydrogen fuel cell buses in Chicago
 Demonstrate 3 different types of fuel cell buses at SunLine Transit
Department of
Transpor tation
National Highway Traffic Safety Administration
 Conduct fuel cell vehicle testing to identify potential
failure modes of a high pressure compressed hydrogen
storage system
 Develop a fuel cell vehicle and electrical isolation test
 Conduct container integrity testing
 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
De partm ent o f En ergy
 Fuel Cells and Infrastructure Technologies
 Development of next generation technologies,
 Establishment of an education campaign that
communicates potential benefits, and
 Better integration of subprograms in hydrogen, fuel cells,
and distributed energy
 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
De partm ent o f En ergy
 FreedomCAR and Vehicle Technologies Program
 The long-term aim is to develop "leap frog" technologies
that will provide Americans with greater freedom of
mobility and energy security, while lowering costs and
reducing impacts on the environment
 Examines need and risk of research in Hydrogen Fuel
Development in the automotive industry
 Wants consumers to have variety/choice – what, where,
how they drive
George W. Bush
 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

 “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
De partm ent o f En ergy
 Clean Cities program
 Works with volunteer, public, and private organizations
to support localities that decrease petroleum use
 Collaborate on public policy issues
 Network of more than 80 volunteer coalitions
 Transportation corridors
 North Central E85 Transportation Corridor (NCETC) - (I-90, I-
94, I-90/94, I-39, I-55, I-80/94, and Michigan Highway 96)
Environmental Protection
 National Vehicle and Fuel Emissions Laboratory
 The only federal facility capable of running official
tests on fuel cell vehicles
 Contains hydrogen station for fuel cell vehicles
Environmental Protection
 EPA, Chrysler, and UPS collaborated to create
emission-free delivery trucks
 Joint paper in 2006 detailing the results of the program
 Despite frequent failures in the fueling station system
and cold weather, the program was a success
Limitati ons I mp osed by Law
and R egul ation?
 Few Limitations – Lawmakers and
agencies are more concerned with
growth of the technology
 Environmentally - cleaner
 Economically – potentially cheaper,
 National Security – curb America’s
dependence on petroleum
Co nclu sio n

 Promising technology
 Most viable for niche market use in the
near future
 Widespread marketplace acceptance
and use is still many years away