SPEAKERS CONTENTS INSERTS
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80–338PS
2003
FUEL CELLS: THE KEY
TO ENERGY INDEPENDENCE?
FIELD HEARING
BEFORE THE
SUBCOMMITTEE ON ENERGY
COMMITTEE ON SCIENCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTH CONGRESS
SECOND SESSION
JUNE 24, 2002
Serial No. 107–83
Printed for the use of the Committee on Science
Available via the World Wide Web: http://www.house.gov/science
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COMMITTEE ON SCIENCE
HON. SHERWOOD L. BOEHLERT, New York, Chairman
LAMAR S. SMITH, Texas
CONSTANCE A. MORELLA, Maryland
CHRISTOPHER SHAYS, Connecticut
CURT WELDON, Pennsylvania
DANA ROHRABACHER, California
JOE BARTON, Texas
KEN CALVERT, California
NICK SMITH, Michigan
ROSCOE G. BARTLETT, Maryland
VERNON J. EHLERS, Michigan
DAVE WELDON, Florida
GIL GUTKNECHT, Minnesota
CHRIS CANNON, Utah
GEORGE R. NETHERCUTT, JR., Washington
FRANK D. LUCAS, Oklahoma
GARY G. MILLER, California
JUDY BIGGERT, Illinois
WAYNE T. GILCHREST, Maryland
W. TODD AKIN, Missouri
TIMOTHY V. JOHNSON, Illinois
MIKE PENCE, Indiana
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FELIX J. GRUCCI, JR., New York
MELISSA A. HART, Pennsylvania
J. RANDY FORBES, Virginia
RALPH M. HALL, Texas
BART GORDON, Tennessee
JERRY F. COSTELLO, Illinois
JAMES A. BARCIA, Michigan
EDDIE BERNICE JOHNSON, Texas
LYNN C. WOOLSEY, California
LYNN N. RIVERS, Michigan
ZOE LOFGREN, California
SHEILA JACKSON LEE, Texas
BOB ETHERIDGE, North Carolina
NICK LAMPSON, Texas
JOHN B. LARSON, Connecticut
MARK UDALL, Colorado
DAVID WU, Oregon
ANTHONY D. WEINER, New York
BRIAN BAIRD, Washington
JOSEPH M. HOEFFEL, Pennsylvania
JOE BACA, California
JIM MATHESON, Utah
STEVE ISRAEL, New York
DENNIS MOORE, Kansas
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MICHAEL M. HONDA, California
Subcommittee on Energy
ROSCOE G. BARTLETT, Maryland, Chairman
DANA ROHRABACHER, California
KEN CALVERT, California
VERNON J. EHLERS, Michigan
GEORGE R. NETHERCUTT, JR., Washington
JUDY BIGGERT, Illinois
W. TODD AKIN, Missouri
MELISSA A. HART, Pennsylvania
SHERWOOD L. BOEHLERT, New York
LYNN C. WOOLSEY, California
JERRY F. COSTELLO, Illinois
SHEILA JACKSON LEE, Texas
DAVID WU, Oregon
JIM MATHESON, Utah
NICK LAMPSON, Texas
RALPH M. HALL, Texas
GABOR J. ROZSA Subcommittee Staff Director
TOM VANEK, TINA M. KAARSBERG, JOHN DARNELL Republican Professional Staff Members
CHARLES COOKE Democratic Professional Staff Member
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TOM HAMMOND Staff Assistant
C O N T E N T S
June 24, 2002
Witness List
Hearing Charter
Opening Statements
Statement by Representative Judy Biggert (IL–13), Member, Subcommittee on Energy, Committee on Science, U.S. House of Representatives
Written Statement
Statement by Representative Lynn Woolsey (CA–6), Ranking Member, Subcommittee on Energy, Committee on Science, U.S. House of Representatives
Written Statement
Witnesses
Dr. Hermann A. Grunder, Director, Argonne National Laboratory
Oral Statement
Written Statement
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James P. Uihlein, Fuels Project Manager, BP
Oral Statement
Written Statement
Biography
Financial Disclosure
Robert N. Culver, Executive Director, United States Council for Automotive Research (USCAR)
Oral Statement
Written Statement
Biography
Financial Disclosure
Stanley Borys, Executive Vice President and Chief Operating Officer, Gas Technology Institute
Oral Statement
Written Statement
Financial Disclosure
Jeffrey A. Serfass, President, National Hydrogen Association
Oral Statement
Written Statement
Biography
Financial Disclosure
Elias (Lee) H. Camara, Vice President, H2Fuel, LLC
Oral Statement
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Written Statement
Discussion
Hydrogen Safety
Fuel for Hydrogen Vehicles
Use of Reformers
Identifying Benchmarks
Ensuring Safety and Environmental Possibilities
Sources of Hydrogen
Deriving Hydrogen From Renewable vs. Nonrenewable Sources
Downsides to Investing in Hydrogen
Preventing Carbon From Being Emitted as a Greenhouse Gas
Focusing on Stationary vs. Transportation Fuel Cells
Structural Changes for Hydrogen Use
Labor Issues With Hydrogen Vehicles
Workforce Preparedness for a Hydrogen Economy
Use of Fuel Cells in Cold Climates
Removal of Sulfur
Federal/Private Partnerships
Competition With Foreign Markets
Difference Between NASA's Use of Hydrogen Fuel and Commercial Use
Role of Nuclear Power Plants in Hydrogen Production
Difference Between Basic and Applied Research
FUEL CELLS: THE KEY TO ENERGY INDEPENDENCE?
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MONDAY, JUNE 24, 2002
House of Representatives,
Subcommittee on Energy,
Committee on Science,
Washington, DC.
The Subcommittee met, pursuant to call, at 10 a.m. at Northern Illinois University-Naperville Campus, Multipurpose Room, 1120 East Diehl Road, Naperville, Illinois, Hon. Judy Biggert presiding.
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HEARING CHARTER
SUBCOMMITTEE ON ENERGY
COMMITTEE ON SCIENCE
U.S. HOUSE OF REPRESENTATIVES
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Field Hearing on
Fuel Cells: The Key to
Energy Independence?
MONDAY, JUNE 24, 2002
10:00 A.M.–12:00 P.M.
NORTHERN ILLINOIS UNIVERSITY
1120 E. DIEHL ROAD, NAPERVILLE, IL 60563
1. Purpose of Hearing
On June 24, 2002, the Subcommittee on Energy of the House Committee on Science will hold a field hearing titled Fuel Cells: The Key to Energy Independence? This hearing will examine the potential of hydrogen as an energy source and what needs to be done to fulfill that potential.
The Committee expects to receive testimony on the following questions:
1. What research and development (R&D) efforts are underway to improve fuel cells and reduce their cost? What R&D role should the government play? The private sector? Universities and research facilities?
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2. Hydrogen can be derived from a number of sources, including fossil fuels (natural gas, petroleum and coal), nuclear energy, and renewable sources (biomass and solar-powered electrolysis) among others. How will these hydrogen feedstock choices affect energy efficiency, emissions, infrastructure needs, and our energy security?
3. What can be done to accelerate the adoption of hydrogen fuel cell technologies and improve consumer acceptance (including perceived safety, ease of use and availability of hydrogen fuel)?
2. Background
a. Hydrogen Fuel Cells
Hydrogen fuel cells use hydrogen to create electricity for transportation and stationary applications. Fuel cells are highly efficient and produce little or no emissions (depending on the source and purity of the hydrogen gas). Fuel cells are currently being used to provide power for buildings and communities, often where a high level of reliability is a requirement, and are being demonstrated in transportation applications around the world. Many of the fuel cell applications are in distributed generation (e.g., small generators that are geographically distributed as opposed to large, central station generating facilities), where size and weight matter less than in transportation. However, much more R&D needs to be done to bring down the cost and the size of fuel cells, as well as to develop safe and reliable infrastructure and create new sources of hydrogen.
b. Sources of Hydrogen
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Currently, most hydrogen is produced from natural gas. Research into hydrogen reformers (a technology that extracts hydrogen from hydrocarbon fuels, including gasoline, natural gas and biobased fuels) is reducing the cost, size and weight of reformer units. Hydrogen can also be produced from the electrolysis of water using electricity from traditional power generation; from electricity generated from renewable sources, including wind and solar; and from thermal processes using nuclear reactors.
c. National Energy Policy
Hydrogen plays a critical role in the Nation's future energy supply. The Administration's National Energy Policy Development (NEPD) group report recognized the importance of hydrogen fuel cells for our nation's energy security, a strong economy and a healthy environment.
The NEPD Group Report said:(see footnote 1)
In the future, hydrogen may be able to be used in furnaces and as a transportation fuel for automobiles, buses, trains, ships and airplanes. Hydrogen could also be converted directly into electricity by fuel cells. Combustion of hydrogen with oxygen results in pure steam, which has many applications in industrial processes and space heating.
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An energy infrastructure that relies on hydrogen could enable much greater use of distributed energy systems. These systems are small, modular electricity generators that can be placed right where they are needed for heating, cooling, and powering offices, factories, and residences. Hydrogen fuel cells are a promising type of distributed energy system that can provide the exacting reliability needed for the high-tech industry.
The report continued by exploring remaining R&D challenges:
The primary challenge to using more hydrogen in our energy systems is the cost of producing, storing, and transporting it. A serious challenge confronting a move toward distributed energy is the transition away from centralized energy systems of supply and production.
d. FreedomCAR
In January 2002, the Bush Administration launched the FreedomCAR initiative to accelerate the development of technologies needed to build hydrogen fuel cell vehicles and infrastructure for consumer use. The Administration proposed $150.3 million in the fiscal year (FY) 2003 budget for this effort, which will leverage a much larger private sector effort. Vehicle fuel cells will require significant research to overcome size, weight and cost constraints. Other FreedomCAR R&D efforts will focus on drive trains, materials and other systems designed to optimize the performance of the fuel cell power plant. Much of the federal R&D effort is being undertaken at Department of Energy (DOE) labs, including Argonne.
e. Congressional Action:
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The Committee on Science has a long tradition of sponsoring and supporting legislation to promote hydrogen fuel cell R&D. In 1990, Congress passed the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 (Public Law 101–566). The Act: (1) directed the DOE to prepare and submit to Congress a comprehensive five-year management plan for a hydrogen R&D program designed to identify and address areas of research critical to the realization of a domestic hydrogen fuel production capability within the shortest time practicable; (2) mandated the establishment of the Hydrogen Technical Advisory Panel (HTAP), a body of hydrogen experts in industry and academia, who advise the Secretary of Energy on the status of and recommended direction for the furthering of hydrogen energy development; and (3) authorized appropriations for FY 1992 ($3.0 million), FY 1993 ($7.0 million), and FY 1994 ($10.0 million).
The Hydrogen Future Act of 1996 (Public Law 104–271) amended the 1990 Act primarily by authorizing appropriations of $164.5 million for the 6-year period FY 1996–FY 2001 ($14.5 million for FY 1994, $20.0 million for FY 1997, $25.0 million for FY 1998, $30.0 million for FY 1999, $35.0 million for FY 2000, and $40.0 million for FY 2001). Title II of that Act also instructed DOE to solicit proposals for projects to prove the feasibility of integrating fuel cells with photovoltaic systems for hydrogen production or with systems for hydrogen production from solid waste via gasification or steam reforming. While a total of $50.0 million was authorized to carry out Title II for FY 1997 and FY 1998, those funds were never appropriated. In FY 2001, Congress appropriated $26.881 million for DOE's Hydrogen Research Program, and DOE has requested an identical amount for FY 2002.
In this Congress, Rep. Ken Calvert introduced H.R. 2174, the Robert S. Walker and George E. Brown, Jr. Hydrogen Energy Act of 2001, which was the basis of the hydrogen related language included by the Committee on Science in division B of the House-passed H.R. 4, the Securing America's Future Energy Act of 2001. The language amends the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 to include: (1) research and demonstration activities leading to the use of hydrogen for commercial applications; and (2) the development of a hydrogen production methodology that minimizes adverse environmental impacts, including efficient and cost-effective production from renewable and non-renewable resources. The language in the hydrogen portion of the House-passed energy bill instructs the Secretary of Energy to: (1) report annually to Congress on programs and activities authorized under the Act; (2) conduct a hydrogen technology transfer program designed to accelerate wider application in foreign countries, increase the global market for hydrogen technologies, and foster global economic development without harmful environmental effects; and (3) enter into arrangements with the National Academy of Sciences to establish an advisory board to replace the current Hydrogen Technical Advisory Panel.
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The bill authorizes R&D funding in the amount of $40,000,000 for fiscal year 2002; $45,000,000 for fiscal year 2003; $50,000,000 for fiscal year 2004; $55,000,000 for fiscal year 2005; and $60,000,000 for fiscal year 2006. It further authorizes demonstration funding of $20,000,000 for fiscal year 2002; $25,000,000 for fiscal year 2003; $30,000,000 for fiscal year 2004; $35,000,000 for fiscal year 2005; and $40,000,000 for fiscal year 2006.
Attachment A contains the hydrogen reauthorization provisions contained in H.R. 4, the S.A.F.E. Act as passed in the House of Representatives. Similar language is contained in the Senate energy bill (H.R. 4 as amended by the Senate).
3. Witnesses
Witnesses to appear before the Committee include:
Dr. Hermann Grunder, Director of Argonne National Laboratory
Mr. Robert Culver, Executive Director of the United States Council for Automotive Research (USCAR)
Mr. Stan Borys, Executive Vice President and Chief Operating Officer of the Gas Technology Institute (GTI)
Mr. Jeff Serfass, President, National Hydrogen Association
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Mr. James Uihlein, Fuels Project Manager for BP
Mr. Elias (Lee) Camara, Vice President of H2Fuels
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Mrs. BIGGERT. The hearing will come to order. I want to welcome everyone to this field hearing of the Energy Subcommittee of the House Science Committee, which asks the question, ''Fuel Cells: The Key to Energy Independence?''
I especially want to welcome to the 13th District, and thank my friend and colleague, Lynn Woolsey, from California, fellow member of the Science Committee; Congresswoman Lynn Woolsey joins us today before heading back to Washington for votes tonight.
I also want to thank the witnesses for being so generous with their time, and for agreeing to share with us their insight and expertise on the topic of fuel cells and hydrogen. As the home of Argonne National Laboratory, small businesses like H2Fuel, corporations like BP Amoco, and research organizations like the Gas Technology Institute, this region has a lot to contribute to the continuing development of fuel cells and the hydrogen needed to fuel them.
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As I said many times before, I do not believe that affordable energy and a clean and safe environment are mutually exclusive. America has the ingenuity and the expertise to promote our future energy demands and promote energy conservation, and we can do so in environmentally responsible ways that set a standard for the world.
Most importantly, America now has the motivation, perhaps like no other time since the oil crisis of the '70's to find newer and better ways to meet our energy needs.
Let's look at the facts. Our dependency on foreign oil sources is up to 55 to 60 percent. Renewed violence in the Middle East and the war against terrorism will continue to cause more volatility in gasoline prices than any of us will find acceptable. The bottom line is that the United States is home to only two percent of the world's supply of oil. It doesn't take a chemical engineer or a foreign policy expert to understand what that means, continued dependency on increasingly uncertain sources.
Gasoline is not the only energy source plagued by volatility and price spikes. Residents of this region learned that the hard way two winters ago when natural gas prices for home heating shot through the ceiling reaching an all-time high.
I mention this only because it highlights not just the importance of a diverse, domestic supply of energy, but even more pressing demands for a national energy policy.
What I like most about the National Energy Policy proposed by President Bush last year is that it emphasizes the use of advanced technology to expand and diversify our energy supply while reducing our energy demand.
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Think about it: Why has virtually every sector of our economy shown dramatic growth and improvement over the last decades? Why do we have laptop computers, DVDs, CDs, email and microwaves? It's because of new technologies. Yet, when it comes to energy, we're virtually in the dark ages.
The President's forward-thinking approach is reflected in comprehensive energy legislation approved by the House last August. The bill provides tax credits for investment in distributed energy technologies like stationary fuel cells and the purchase of fuel cell cars, even though such automobiles are not commercially available yet, although I did see a hybrid out in the parking lot. And other research initiatives, including the FreedomCAR program, aim to make this cutting edge technology so affordable that tax credits will be unnecessary.
As Members of the Science Committee, Ms. Woolsey and I are fortunate to have access to information about promising new technologies. What is our role and responsibility? It is to ensure that the government does not impede the development and deployment of these new technologies, but rather aid them.
I think my colleague would agree that the Federal Government plays a critical role in supporting basic research, the kind of research that addresses fundamental technical obstacles.
And that's why we're here today, to look at the promise and the potential of fuel cells and hydrogen to help us gain greater energy independence in a way that is safe, clean, and renewable.
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In an article entitled, ''Squeaky Clean,'' the magazine, The Economist referred to fuel cells as ''the next big thing.'' And the most promising fuel cells operate on hydrogen, which the magazine Physics Today referred to as ''the fuel of the future.'' I don't think I read that one, I'm just a science geek want-to-be, but maybe I have to read it.
So we know their potential. Zero emissions. Water and heat are the only by-products, and when both the heat and the electricity are used, fuel cells can obtain more than 80 percent efficiency. The witnesses from the U.S. Council for Automotive Research, the Gas Technological Institute and H2Fuels will tell us more about this. I don't think many people realize that fuel cells have numerous applications beyond automobiles, and that we're likely to see a fuel cell installed in a home or a subdivision long before we find one under the hood of a car.
And fuel cells run on hydrogen, a fuel that can be obtained from just about anything—oil, natural gas, and even nuclear power and other renewables like biomass, landfill, methane, and ethanol. BP and the National Hydrogen Association will testify to the benefits of hydrogen, but they will also testify to some of the obstacles we will face as a nation if indeed we are to transition to a hydrogen-based energy economy.
Now that we know the potential of fuel cells and hydrogen, how do we realize that potential? That's what we hope to uncover today.
I now turn to my distinguished colleague, Ms. Woolsey, for her opening remarks.
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[The prepared statement of Mrs. Biggert follows:]
PREPARED STATEMENT OF REPRESENTATIVE JUDY BIGGERT
The hearing will come to order.
I want to welcome everyone to this field hearing of the Energy Subcommittee of the House Science Committee, entitled ''Fuel Cells: The Key to Energy Independence?''
I especially want to welcome to the 13th District and thank my friend and colleague from California and fellow member of the Science Committee, Congresswoman Lynn Woolsey, for joining us today before heading back to Washington for votes tonight.
I also want to thank the witnesses for being so generous with their time, and for agreeing to share with us their insight and expertise on the topics of fuel cells and hydrogen. As the home of Argonne National Laboratory, small businesses like H2Fuel, corporations like BP, and research organizations like the Gas Technology Institute, this region has a lot to contribute to the continued development of fuel cells and the hydrogen needed to fuel them.
As I've said many times before, I do not believe that affordable energy and a clean and safe environment are mutually exclusive. America has the ingenuity and the expertise to meet our future energy demands and promote energy conservation, and we can do so in environmentally responsible ways that set a standard for the world.
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Most importantly, America now has the motivation—perhaps like no other time since the oil crisis of the 70's—to find newer and better ways to meet our energy needs.
Let's look at the facts. Our dependency on foreign oil sources is up to 55 to 60 percent. Renewed violence in the Middle East and the war against terrorism will continue to cause more volatility in gasoline prices than any of us will find acceptable. The bottom line is that the United States is home to only two percent of the world's supply of oil. It doesn't take a chemical engineer or a foreign policy expert to understand what that equals—continued dependency on increasingly uncertain sources.
Gasoline is not the only energy source plagued by volatility and price spikes. Residents of this region learned that the hard way two winters ago when natural gas prices for home heating shot through the ceiling, reaching an all-time high. I mention that only because it highlights not just the importance of a diverse, domestic supply of energy, but the even more pressing demand for a national energy policy.
What I like most about the National Energy Policy proposed by President Bush last year is that it emphasizes the use of advanced technology to expand and diversify our energy supply while reducing our energy demand.
Think about it: why has virtually every sector of our economy shown dramatic growth and improvement over the past decades? Why do we have laptop computers, DVDs, CDs, email and microwaves? It's because of new technologies. Yet when it comes to energy, we're virtually in the dark ages.
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The President's forward-thinking approach is reflected in comprehensive energy legislation approved by the House last August. The bill provides tax credits for investment in distributed energy technologies like stationary fuel cells and the purchase of fuel cell cars—even though such automobiles are not commercially available yet. And other research initiatives, including the FreedomCAR program, aim to make this cutting edge technology so affordable that tax credits will be unnecessary.
As Members of the Science Committee, Ms. Woolsey and I are fortunate to have access to information about promising new technologies. What is our role and responsibility? It is to ensure that the government doesn't impede the development and deployment of these new technologies, but rather aids them.
I think my colleague would agree that the Federal Government plays a critical role in supporting basic research, the kind of research that addresses fundamental technical obstacles.
And that's why we're here today—to look at the promise and the potential of fuel cells and hydrogen to help us gain greater energy independence in a way that is safe, clean, and renewable.
In an article entitled ''Squeaky Clean,'' the magazine The Economist referred to fuel cells as ''the next big thing.'' And the most promising fuel cells operate on hydrogen, which the magazine Physics Today referred to as ''the fuel of the future.''
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We know their potential. Zero emissions. Water and heat are the only byproducts, and when both the heat and the electricity are used, fuel cells can obtain more than 80 percent efficiency. The witnesses from the U.S. Council for Automotive Research, the Gas Technology Institute, and H2Fuel will tell us more about this. I don't think many people realize that fuel cells have numerous applications beyond automobiles, and that we're likely to see a fuel cell installed in a home or a subdivision long before we find one under the hood of a car.
And fuel cells run on hydrogen, a fuel that can be obtained from just about anything—oil, natural gas, and even nuclear power and other renewables like biomass, landfill gas, methane, and ethanol. BP and the National Hydrogen Association will testify to the benefits of hydrogen, but they will also testify to some of the obstacles we will face as a nation if indeed we are to transition to a hydrogen-based energy economy. That's why I'm an original cosponsor of the Robert S. Walker and George E. Brown Hydrogen Energy Act of 2001, which increases funding for critical hydrogen research at the Department of Energy.
Now that we know the potential of fuel cells and hydrogen, how do we realize that potential? That's what we hope to uncover today.
I now turn to my distinguished colleague, Ms. Woolsey, for her opening remarks.
Ms. WOOLSEY. Thank you very much, Madam Chair, and thank you, excellent panel, for being here today and for me to have this honor to participate in today's field hearing. It's timely because as we debate ''National Energy Policy'' and as we strive to have greater energy independence, it's absolutely smart public policy to examine the role of fuel cells and hydrogen technology and how much it plays into the energy plans for our future.
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Like all of us here today, the Bay Area district that I represent, I represent the two counties just north of the Golden Gate Bridge, when you're halfway across the Golden Gate Bridge, you're in Woolsey country and you have to know if you know anything about that part of the country that this area is keenly aware of fuel cell technology, how important it is to us environmentally and in becoming energy independent. So I'm here because I think it's interesting; I'm here because the people I work for know its importance.
Since its invention in 1839, and its first use in the Apollo Space Program in the 1960's, fuel cells have become an important source of alternative energy. Compared with conventional fossil-fuel power sources, fuel cells are exceptionally clean and efficient.
But until very recently fuel cells have been limited to laboratories and to ''out of the ordinary'' uses like space travel. I look forward to our witnesses', their insight on the promise of wider application for fuel cell technology, and I'm particularly interested, besides the application in automobiles, I want to hear about, because I'm a frequent flyer on airplanes back-and-forth, coast-to-coast, every week, except for this week; I want to know what this is going to mean to airflight, and airplanes and keeping our skies cleaner.
In fact, in an effort to invest Federal attention and resources to this issue, your Chairwoman here and I joined our Science Committee colleague Representative Ken Calvert in introducing H.R. 2174, the ''Hydrogen Energy Act.'' This bill, incorporated as part of the House Energy Bill, establishes robust research and development programs into production, storage, transportation, and use of hydrogen for commercial transportation and utility applications.
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While it's not unrealistic for us to ask if a fuel cell is in our future, it would be unrealistic to gloss over the fact that fuel cell technology and hydrogen-based energy still face many complex challenges.
There's no doubt that we have more questions about them than we have answers. And that's what we're looking forward today, both the questions and some of the answers, in an outlook about our challenges in order to really make this possible. I have more words that I would like to enter into the record, but I want to hear from our panel. Thank you very much.
So, without further delay, I would like to introduce Dr. Herman Grunder, the dynamic Director of Argonne National Laboratory and good friend; so Dr. Grunder, you may begin.
[The prepared statement of Ms. Woolsey follows:]
PREPARED STATEMENT OF REPRESENTATIVE LYNN WOOLSEY
Thank you Madam Chair for the opportunity to join you [here in Naperville] for today's field hearing. It's timely because as we debate a ''National Energy Policy'' and also strive toward greater energy independence, it's smart public policy to examine the role fuel cells and hydrogen [can] play in our energy future.
Like all of us here today, the Bay Area district I represent—Marin and Sonoma Counties, just across the Golden Gate Bridge from San Francisco, is keenly aware that fuel cell technology is well positioned to be a leading contributor in our energy future.
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Since its invention in 1839, and its first use in the Apollo Space Program in the 1960s, fuel cells are becoming an important source of alternative energy. Compared with conventional fossil-fuel power sources, they're exceptionally clean and efficient.
But until very recently fuel cells have been limited to laboratories and to 'out of the ordinary' uses like space travel. I look forward to our witnesses' insight on the promise of wider application for fuel cell technology, especially its most exciting application in automobiles.. . .And, as a frequent flyer. . .in airplanes.
Earlier this year, the Energy Subcommittee, where I sit as Ranking Member, held a hearing to review the future of the Department of Energy's Automotive R&D Program, in particular the recently announced ''FreedomCAR'' initiative. Its laudable goal is to replace the internal combustion engine with hydrogen fuel cells.
Unlike today's conventional cars, fuel cell-powered cars would mean no polluting emissions or greenhouse by-products resulting from combustion.
However, considering that fuel cell powered cars are at least a decade away from production, this initiative must include benchmarks as a way to measure progress.
If not, in 2010 we could take stock and realize that we're actually further away that we'd hoped from developing and refining the fuel cell technology for this type of application. Too much potential is riding on its progress—no pun intended!
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Another element that we must examine is the challenge of storing a fuel cell's basic fuel ingredient, hydrogen. Closely associated with this is the development of an infrastructure to deliver hydrogen in mass quantity. Most experts agree that hydrogen's volatility has been a critical hurdle to its commercialization.
It's probably also fair to say that there are public safety concerns about hydrogen, as public awareness of the Hindenberg disaster is still widespread. Yet, in this day of amazing scientific and technological progress it's not off base to think that these issues can also be addressed in due time.
In fact, in an effort to invest federal attention and resources to this issue, Ms. Biggert and I joined our Science Committee colleague Rep. Ken Calvert in introducing H.R. 2174, the ''Hydrogen Energy Act.'' This bill—incorporated as part of the House Energy Bill—establishes a robust R&D program into production, storage, transportation and use of hydrogen for commercial, transportation and utility applications.
While it's not unrealistic for us to ask if a fuel cell is in our future, it would be unrealistic to gloss over the fact that fuel cell technology and hydrogen-based energy still faces complex challenges.
There's no doubt that we have more questions about them than we have answers. However, I look forward to the testimony from our witnesses and hope that they'll share their insight on how to tackle these challenges.
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Thank you.
STATEMENT OF HERMANN A. GRUNDER, DIRECTOR, ARGONNE NATIONAL LABORATORY
Mr. GRUNDER. Thank you, Madam Chair, and thank you Congresswoman Woolsey, and indeed I know Congresswoman Woolsey very well, I lived out there.
First of all, I'd like to thank both of you and the committee for the untiming effort in addressing cutting edge issues which have made the fabulous science and technology establishment the United States has possible. It is indeed this kind of support which brings us all the knowledge we are discussing here.
Furthermore, my compliment in addressing hydrogen, because hydrogen and its offsprings like fuel cells, are indeed an essential part of our future. I'm unable to tell you exactly what time this is going to happen, but it will happen, we will have a hydrogen economy. And why in effect, Congresswoman Woolsey, you just said it, it is clean, efficient fuel for transportation.
In fact, you make a point, if we had all that, we would run cars with minor modifications. Today, hydrogen and the exhaust would be water vapor, you know. That's how clean it is.
Fuel cells are particularly attractive because they are highly efficient. In the round number, fuel cells are twice as efficient as internal combustion engine in converting hydrogen into electricity. And as you, Chairperson Biggert pointed out, it is indeed the efficiency which is very gratifying and can be depending on the particular application.
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I'm going to have this credit that we are in the fuel cell business for something like twenty years and it is also very gratifying to see many of the representatives in this industry who are working with us on the issue of fuel cells. If we look now at what is to be done in the future, as you have mentioned, it's a lot. We have production, the storage and the distribution of hydrogen. We still have a ways to go on making the full cells as efficient and applicable to a large variety of future applications and I think we are a little bit away from your fuel cell airplane, Representative Woolsey. But, don't give up.
Ms. WOOLSEY. I won't. First things first.
Mr. GRUNDER. Now, hydrogen is very abundant on the planet earth and unfortunately—these tied to—hydrogen abundant is a prototype to oxygen or carbon, and there is a lot, so hydrogen is very much a vehicle, a carrier, of energy not too different from electricity. It has to be produced at some end, it has to be stored, it has to be distributed. So, if we look to what is needed in the future, there is one in the immediate future, there is one more element. Because we don't have the distribution of hydrogen right now, we need to produce hydrogen locally. And what could be more efficient than to produce it exactly where you need it.
That's why Argonne engaged, in some kind, in developing gadgets. Let me call it the fuel processor, where you take the fuel of your choice, gasoline, methane, whatever you want, and convert it right then and there into hydrogen and run your fuel cell. This is not the end product, the end product is a hydrogen distribution, which my colleagues here on the board will talk to you. But, it is a transition because it is helping us to test those fuel cells and the realistic conditions and demonstrate suitability. We are happy to report that such fuel processors exist on prototype and we have industrial colleagues who are into marketing, and with that, Madam Chair, I would like to stop.
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Mrs. BIGGERT. Perfect, just on time.
Mr. GRUNDER. Oh, it's time.
Mrs. BIGGERT. Yes. And perfect what you had to say, of course, Dr. Grunder.
[The prepared statement of Mr. Grunder follows:]
PREPARED STATEMENT OF HERMANN A. GRUNDER
Fuel Cells and the Hydrogen Economy
Thank you, Madame Chair (and) Congresswoman Woolsey.
I appreciate the opportunity to come before you today to provide an overview of fuel cells and the role they play in energy independence.
Fuel cells provide clean electric power with high energy efficiency by consuming hydrogen. They are promising for transportation and for homes, commercial buildings, portable power applications, and space and military uses. As such, they are attracting significant research and development investment. Argonne National Laboratory has been engaged in fuel cell research and development for more than twenty years, drawing on a broad range of multi-disciplinary capabilities to create better materials and improved fuel cell designs.
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The widespread application of fuel cells presents some challenges. To see what these challenges might be, let's look at some of the underlying elements of an economy based on hydrogen instead of fossil fuels. First, hydrogen is very common, but it is mostly tied up in compounds such as water, natural gas, alcohol, and gasoline. To make hydrogen usable, we must separate it from one of these compounds and distribute it to fuel cells, where it combines with oxygen. This produces energy and water, and the water becomes the starting material for the next cycle. Separation and distribution consume energy, while the fuel cell, itself, needs to be sized and cost-effective for specific applications.
Because the national retail distribution infrastructure to supply hydrogen is limited, it is also desirable—in the near-term—to develop compact fuel processors that would fit in a vehicle adjacent to the fuel cell. These convert conventional fuels—such as gasoline or natural gas—into a hydrogen-rich gas stream. For the longer term, the goal would be to establish a hydrogen production and distribution system comparable to our current network of fossil fuel refineries, pipelines, trucks, and gas stations.
For transportation applications, a fuel processor must be small, lightweight, able to start up quickly, and responsive to rapidly changing power demands. Meeting all of these requirements for such a system is a substantial challenge, and one of our major accomplishments has been developing a novel catalyst material that efficiently produces hydrogen from a wide variety of hydrocarbon fuels, including ethanol, natural gas, propane, and gasoline. As you can see, we have with us today one of the reformers that uses this catalyst and a poster that describes how it works.
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Coupled in an automobile with a fuel cell and an electric motor, this reformer offers the immediate advantage of a 30 percent increase in miles per gallon of fossil fuel. Plus, the driver will continue to use the present gasoline retail infrastructure.
One of the catalysts developed under this program has been licensed to Süd-Chemie, Inc., of Louisville, Kentucky, and is now used by industry. We continue to lead the field in compact and efficient fuel processors, and we are developing a natural gas version under private sponsorship from H2Fuel, Inc., to provide fuel processors for residential fuel cell systems. You'll be hearing later from Mr. Elias Camara of H2Fuel, who I am pleased to see is also on this morning's panel. In fact, I am pleased to say that almost all of your witnesses this morning have collaborations with Argonne.
Another potential transportation-related application for fuel cells is as an auxiliary power unit. Such units would not provide propulsion power, but would generate electricity in a vehicle while the engine is turned off. A major application would be in heavy-duty tractor-trailers to provide refrigeration during overnight idling periods. A leading candidate for this application is a solid oxide fuel cell. The Department of Energy has established a major new initiative, the Solid State Energy Conversion Alliance, or SECA, to achieve this goal. Argonne is engaged in materials development for such a lower-temperature solid oxide fuel cell.
Argonne supports the U.S. Department of Energy's fuel cell program by providing a world-class test and evaluation facility, and by developing and disseminating simulation models which aid fuel cell developers in their designs. Our analysis and modeling have examined the effects of different fuel cell types, fuel compositions, fuel storage methods, fuel processing techniques, and vehicle fuel economy.
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Looking ahead, fuel cells continue to gain momentum as a clean and efficient energy conversion technology. All the world's major automobile companies are spending substantial amounts of resources to develop polymer electrolyte fuel cell systems as a prime power source for passenger cars.
Since internal combustion engines are being manufactured in high volume and at low cost, making fuel cell systems competitive remains a major challenge. To that end, the stationary distributed power application is viewed as a stepping-stone. General Motors and several other companies have announced plans to initially market polymer electrolyte fuel cell systems for houses and remote applications. These systems would operate on natural gas or propane.
So we can see that the fuel cell is, indeed, an important element in the search for energy independence. However, to realize this energy independence we have to find the best way to manufacture hydrogen, efficiently and cost effectively—and ultimately from water.
Plus, as I already said, there is the entire matter of infrastructure to transport hydrogen to distribution points which will have to be as convenient as gas stations are today. This is a regulatory as well as a technological challenge.
Argonne National Laboratory, along with other national laboratories, has a number of significant programs that will contribute to the hydrogen future. We are working with the offices of Energy Efficiency, Fossil Energy, and Nuclear Energy in DOE to create useful processes for building an economy based on hydrogen. Industry is also involved in fuel cell research through the FreedomCAR partnership with USCAR. Bob Culver, who is a witness at this morning's hearing will provide you with additional information on this initiative.
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We at Argonne are excited at the prospect of helping our nation in its transition to environmentally friendly, domestically produced sources of power.
Thank you, Madame Chair and Congresswoman Woolsey. I will be happy to answer your questions.
Mrs. BIGGERT. And I might add that will start the questioning after everyone has presented their remarks.
Next, we will hear from Mr. James Uihlein, Fuels Project Manager with BP, which now has a major research facility right here in Naperville. Mr. Uihlein, thank you for representing your colleagues here today. You may begin.
STATEMENT OF JAMES P. UIHLEIN, FUELS PROJECT MANAGER FOR BP
Mr. UIHLEIN. Good morning. On behalf of BP, I'd like to express our thanks for the opportunity to speak at this field hearing on hydrogen and fuel cells. Since other witnesses will be discussing vehicle and stationary fuel cells in some detail, I'd like to share with you BP's view on the future role and challenges for hydrogen as we see them, just from an energy company's viewpoint.
We at BP are committed to a portfolio of sustainable energy solutions that deliver the world's energy needs, while addressing the economic, social and environmental concerns that accompany this commitment. Hydrogen is an important part of that portfolio.
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In many cases, the most economic way to generate hydrogen today is from natural gas via well-understood technology. In fact, we believe that natural gas will likely form a bridge to the hydrogen economy. BP currently produces over 1300 metric tons per day of high purity hydrogen for use in our refineries and several times more volume than that in lower grade hydrogen.
What's more, hydrogen is not inherently an expensive fuel. At the refinery gate, hydrogen costs are comparable to conventional fuel costs. We know how to produce hydrogen safely and cost effectively. The difficulty is in delivering the hydrogen to our customers.
The same hydrogen that can be economically produced at the refinery can cost six or more times as much once it is transported and dispensed.
Even more daunting than the challenge of delivering hydrogen to the consumer is solving the transition to the hydrogen economy. Such a transition is a complex chicken and egg situation involving consumer demands and the supply of vehicles and fuel. The cost is also significant. Using an aggressive target of $400,000 per site, the cost of BP alone to add hydrogen at all of our stations in the U.S. would be $6.8 billion. And the challenges don't end there. Our ultimate goal is an infrastructure which would offer good value to the consumer, provide enough availability to avoid the concern of getting stranded, and conserve resources.
So hydrogen fueling is not yet a commercial proposition. But BP believes that hydrogen could become a significant opportunity in the long run. However, addressing the challenges to untie this Gordian knot will require a high level of partnerships between industry stakeholders and between industry and government.
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So what is BP doing to develop the business and technical skills to supply hydrogen to the transportation sector?
BP is working in collaboration with auto manufacturers, governments, universities and research groups to better understand the issues and solutions. We aim to develop refueling systems that will allow hydrogen to be dispensed from retail sites and meet the needs of our customers safely and reliably.
BP is participating in distinctive demonstration projects around the world, evaluating different technologies to manufacture and supply hydrogen to vehicles. We are working with Ford, General Motors, DaimlerChrysler and others to demonstrate pre-commercial hydrogen powered vehicles. We are supplying the hydrogen for the majority of cities in the Clean Urban Transport for Europe 10-city bus project that will be in operation early next year. As a result of these activities, we expect to have a number of hydrogen fuelling stations installed around the world in the next few years.
We are also working to address the real and perceived safety issues around hydrogen. Through such projects we are also helping to develop the consistent and sensible engineering and safety standards needed to allow the introduction of hydrogen systems into our existing refueling network.
All of these projects will give us the experience to make the right decisions for longer-term development. Such projects are critical to developing the skills needed to bring a sustainable energy future forward, and to build public acceptance for energy from hydrogen. These projects also demonstrate our support for the environment, a key component of the BP brand.
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Government is also making a significant contribution to the transition to hydrogen. DOE has been a welcome partner in many of our activities through participation in demonstration programs and research.
Government can also accelerate the movement of hydrogen fuelling from the current demonstration phase by ensuring that hydrogen remains cost competitive with conventional fuels and that early adopters or participants do not bear an undue share of initial vehicle, infrastructure and fuel costs.
We also need the support of regulatory approval bodies with regard to the development and adoption of codes and standards to allow and facilitate the safe introduction of hydrogen within the retail environment.
Let me close by saying that we face many challenges. However, through collaboration, innovation and a commitment to embrace these challenges, we at BP feel it is possible to supply the world's energy in a way that respects all of our needs. Hydrogen offers that possibility. Thank you very much.
Mrs. BIGGERT. Thank you, sir. And again, the timing was perfect, as was your statement. Thank you.
[The prepared statement of Mr. Uihlein follows:]
PREPARED STATEMENT OF JAMES P. UIHLEIN
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Good Morning.
On behalf of BP, I'd like to begin by expressing our thanks for the opportunity to address this hearing on hydrogen and fuel cells. Since other witnesses will discuss stationary and vehicle fuel cells in some detail, I would like to share with you BP's view of the future role and challenges for hydrogen as we see them from an energy company's viewpoint.
We at BP are committed to finding a way to offer a portfolio of sustainable energy solutions that deliver the world's energy needs, while addressing the economic, social and environmental concerns that accompany this commitment. Hydrogen is an important part of that portfolio.
The Challenges of Hydrogen
In many cases, the most economic way to generate hydrogen today is from natural gas via well-understood technology. In fact, we believe that natural gas will likely form a bridge to a hydrogen economy. Today, BP produces over 1300 metric tons per day of high purity hydrogen for use in our refineries and three times this volume of lower grade hydrogen.
What's more, hydrogen is not inherently an expensive fuel. At the refinery gate, hydrogen costs are comparable to conventional fuel costs. Using the refinery gate cost for hydrogen, the cost per mile driven is actually significantly less than conventional fuel due to the very high efficiency of the fuel cell engine.
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We know how to produce hydrogen safely and cost-effectively—the difficulty is in delivering the hydrogen to our customers. The same hydrogen that can be economically produced at the refinery can cost six or more times as much once it is transported and dispensed. The lack of technology to store reasonable quantities of hydrogen on the vehicle limits vehicle range. Without a solution, more refueling sites are needed to provide for reasonable travel distances.
Even more daunting than the challenge of delivering hydrogen to the consumer is solving the transition to a hydrogen economy. Such a transition is a complex chicken and egg situation involving consumer demands and the supply of vehicles and fuel.
During the transition, there will be many on-site production options with numerous technologies being explored. The cost in this phase (i.e., without pipeline connections) is significant. Using an aggressive target of $400k/site, the cost to BP alone to add hydrogen on all our retail sites in the U.S., would be $6.8bn, and the challenges don't end there. Our ultimate goal is an infrastructure which will offer a good value proposition to the consumer, provide desired availability to avoid the concern of getting stranded, and conserves resources.
So hydrogen fueling is not yet a commercial proposition. But BP believes that hydrogen could become a significant opportunity in the long run. However, addressing the challenges to untie this Gordian knot will require a high level of partnerships between industry stakeholders and between industry and government.
BP's Activities
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So what is BP doing to develop the business and technical skills to supply hydrogen to the transportation sector?
BP is working in collaboration with auto manufacturers, governments, universities and research groups to better understand the issues and solutions. We aim to develop refueling systems that will allow hydrogen to be dispensed from retail sites and meet the needs of our customers safely and reliably.
BP is participating in distinctive demonstration projects around the world evaluating different technologies to manufacture and supply hydrogen to vehicles. We are working with Ford, General Motors, DaimlerChrysler and others to promote the use of pre-commercial hydrogen powered vehicles. We are supplying the hydrogen for the majority of cities in the Clean Urban Transport for Europe 10-city bus project that will be in operation early next year. As a result of these demonstration activities, we expect to have a number of hydrogen fuelling stations installed around the world in the next few years.
We are also working to address the real and perceived safety issues around hydrogen. Through such projects we are also helping develop consistent and sensible engineering and safety standards needed to allow the introduction of hydrogen systems into our existing refueling network.
All of these projects will give us the experience to make the right decisions for longer-term development. Such projects are critical to developing the skills needed to bring a sustainable energy future forward, and to build public acceptance for energy from hydrogen. These projects also demonstrate our support for the environment, a key component of the BP brand.
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Role of Government
The government is also making a significant contribution in the transition to hydrogen. DOE has been a welcome partner in many of our activities through participation in demonstration programs and research.
Government can also accelerate the movement of hydrogen fuelling from this demonstration phase by ensuring that hydrogen remains cost competitive with conventional fuels and that early adopters or participants do not bear an undue share of initial vehicle, infrastructure and fuel costs.
We also need the support of regulatory approval bodies with regard to the development and adoption of codes and standards to allow and facilitate the safe introduction of hydrogen within the retail environment.
Let me close by saying that we face many challenges. However, through collaboration, innovation and a commitment to embrace these challenges, we at BP believe it is possible to supply the world's energy in a way that respects all of our needs. Hydrogen offers that possibility.
Thank you very much. I'd be happy to answer any questions.
BIOGRAPHY FOR JAMES P. UIHLEIN
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Project Manager, BP Global Fuels Technology
Responsibilities
Understanding of hydrogen infrastructure issues and economics. Technical assistance to hydrogen refueling station projects. Representation of BP in the California Fuel Cell Partnership, the International Hydrogen Infrastructure Group, and other activities. Understanding of fuel/vehicle interactions, particularly with regard to emissions modeling. Support of refinery operations and the development of clean fuel regulations.
Experience
Over 21 years in the energy industry, almost entirely with BP and its constituent companies. Over 15 years in the fuels technology area, investigating alternative fuels and the emissions and performance impacts of conventional fuels.
Education
Graduate Studies in Operations Research. Case Western Reserve University, Cleveland, Ohio
M.S. Chemical Engineering, Case Western Reserve University, Cleveland, Ohio
B.S. Chemical Engineering, University of Cincinnati, Cincinnati, Ohio
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Mrs. BIGGERT. Next you will hear from Mr. Robert Culver, Executive Director of the U.S. Council for Automotive Research. I want to start by thanking you for coming all the way from Detroit for this hearing and I want to publicly commend you and your organization, Mr. Culver, for being long-time supporters of the Department of Energy and Argonne in particular in its transportation research programs. The public/private research partnership that has developed between the DOE and your organization over the time is really a model for collaborative research programs. You may begin.
STATEMENT OF ROBERT N. CULVER, EXECUTIVE DIRECTOR, THE UNITED STATES COUNCIL FOR AUTOMOTIVE RESEARCH
Mr. CULVER. Thank you, Madam Chair, and Representative Woolsey. Thank you for inviting me here today to address the committee on fuel cells in the new industry/government cooperative program called FreedomCAR. My name is Bob Culver and I am the Executive Director of the United States Council for Automotive Research, or USCAR. USCAR is the umbrella organization founded in 1992 by DaimlerChrysler, Ford Motor Company, and General Motors Corporation to conduct collaborative, pre-competitive research.
The USCAR partners fully support Department of Energy Secretary Spencer Abraham's vision of a personal transportation system free from reliance on petroleum fuels. We were pleased to join Secretary Abraham at the North American International Auto Show on January 9th when he announced the FreedomCAR program to pursue this vision.
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Through decades of research, many industry, government and environmentalist experts have come to agree that hydrogen-powered fuel cells are our best investment into the future of transportation. Merely a decade ago, the possibility that a fuel cell could power a car or light truck appeared to be light years away. At that time, in order to achieve the power comparable to an internal combustion engine, the fuel cell required would have been larger than the vehicle itself. However, today experimental passenger vehicles, powered by fuel cells, have been demonstrated by all of our companies in a variety segments, from compact cars to SUVs and minivans.
The auto companies are making significant investments into fuel cell technologies. Yet, while progress on this very promising technology is being made, much research and development work is still needed. Affordability remains a major challenge. The costs associated with putting fuel cells in vehicles are literally in the hundreds of thousands of dollars. Significant future progress on the affordability challenge must be made in order to make the business case for producing them. Because this technology is high risk but offers significant societal benefits, it is appropriate and necessary for government involvement.
Within two years, the automakers will be producing demonstration fleets of fuel cell vehicles numbering in perhaps hundreds of vehicles. By the end of the decade, that number could be in the thousands. To realize the full benefits, in other words, commercialization of this technology, partnering to solve the technical issue is the best way of moving forward. One of those valued partnerships as you mentioned Madam Chair, is with the National Laboratories through the Department of Energy. Argonne National Labs, for example, is just a few miles from here, has played a key role in advancing fuel cell technology through their work on fuel processing, fuel cell modeling and testing of fuel cells.
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USCAR has worked with the DOE to streamline and refocus the partnership that we started in 1993 onto longer term, higher reward technologies such as the hydrogen-powered fuel cells. As Secretary Abraham has made clear, this is not a short-term vision, it will take many years of hard work by the auto industry, by the government researchers, Federal research organizations and energy providers to realize this bold vision.
Industry and the Department of Energy have agreed on detailed near-term technical goals for each research area, which are attached to my written testimony. Along with technical roadmaps, these goals will ensure that funds are being spent in the most promising areas and that progress is being made in all of the research. These goals contain both cost and performance metrics, ensuring that when the goals are realized, the new technologies will be attractive to our customers.
We believe that it is extremely important to begin addressing the issues involved with shifting the balance from petroleum to hydrogen. The most promising sources of hydrogen, both in the intermediate term, and in the long-term, must be identified and researched. It is also critical to develop user-friendly hydrogen refueling stations and to develop a roadmap for the new infrastructure development. FreedomCAR can serve to jointly develop demonstration plans and milestones to lead to that transition, to hydrogen-powered vehicles.
While the vision of FreedomCAR partnership is long range, many aspects of the research will likely have nearer term benefits. Lightweight material technologies are already in the marketplace and providing benefit for a variety of new vehicles regardless of propulsion system. And power electronic technologies, which are critical for fuel cell drivetrains, are equally beneficial for nearer-term hydrogen vehicles. The USCAR partners also support continuing FreedomCAR funding to address promising combustion and aftertreatment technologies for internal combustion engines.
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FreedomCAR research is being focused at the component at a sub-system level facility transfer into a variety of vehicle segments. This will facilitate the migration of technologies into the most appropriate vehicle platforms as technologies meet their goals. The auto industry pledges to bring advanced technologies to the market as soon as the business case can be made for them. While at the same time providing our customers with vehicles that are safe and give them the kind of performance, utility and function they need and expect for their money.
Past USCAR and government collaborative programs have provided, and will continue to provide benefits to the American public. Material technologies I mentioned already in the marketplace are reducing weight, combustion and after treatment technologies, are improving fuel economy and making our air cleaner to breath.
Clean fuels including low sulfur diesel are a must if these interim technologies are going to make it into the marketplace. All of the USCAR partners have announced hybrid electric vehicles in 2003/2004 time frame and all are in truck and SUV segments where this technology yields the maximum fuel savings.
In summary, the USCAR partners are in full support of FreedomCAR and are hard at work on advanced technologies, including technologies that will help make the hydrogen powered vehicles a reality.
Mrs. BIGGERT. Thank you. Everyone is well-trained.
[The prepared statement of Mr. Culver follows:]
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PREPARED STATEMENT OF ROBERT N. CULVER
Madam Chair and Members of the Committee:
Thank you for inviting me to address the Committee on the new industry/government cooperative research partnership called FreedomCAR. My name is Bob Culver and I am the Executive Director of the United States Council for Automotive Research, or USCAR. USCAR is the umbrella organization founded in 1992 by DaimlerChrysler, Ford Motor Company, and General Motors to conduct collaborative, pre-competitive research.
The USCAR partners fully support Department of Energy Secretary Spencer Abraham's vision of a personal transportation system free from reliance on petroleum fuels. We were pleased to join Secretary Abraham at the North American International Auto Show on January 9 when he announced the FreedomCAR program to pursue this vision.
Through decades of research, many industry, government and environmentalist experts have come to agree that hydrogen-powered fuel cells are our best investment into the future of transportation. Merely a decade ago, the possibility that a fuel cell could power a car or light truck appeared to be light years away. At that time, in order to achieve the power equivalent of an internal combustion engine, the fuel cell required would be larger than the vehicle it would power. However, today experimental passenger vehicles, powered by fuel cells, have been demonstrated by our companies in a variety segments, from compact cars to SUVs and minivans.
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The auto companies are making significant investments into fuel cell technologies. Yet, while progress on this very promising technology is being made, much research and development work is still needed. Affordability remains a major challenge. The costs associated with putting fuel cell powertrains into vehicles at the current technology level are literally in the hundreds of thousands of dollars. Significant future progress on this affordability challenge must be made in order to make a business case for producing them. Because this technology is high risk but offers significant societal benefits, it is appropriate and necessary for government involvement. Within the next two years, automakers will be producing demonstration fleets of fuel cell vehicles numbering in the hundreds of vehicles. By the end of the decade, that number could be in the thousands. To realize the full benefits of this technology, partnering to solve the technical issue is our best way of moving forward. One of those valued partnerships is with the National Laboratories through the DOE. Argonne National Laboratory, for example, located only few miles from here, has played a key role in advancing fuel cell technology through their work on fuel processing, fuel cell modeling and testing.
USCAR has worked with the current DOE to streamline and refocus the partnership that we started in 1993 onto longer term, higher reward technologies such as hydrogen-powered fuel cells. As Secretary Abraham has made clear, this is not a short-term vision—it will take many years of hard work by the auto industry, energy providers, and federal research organizations to realize this bold vision. Industry and the DOE have agreed on detailed near term technical goals for each research area, which are attached to this testimony. Along with technical roadmaps, the goals will ensure that funds are being spent in the most promising areas and that research is progressing. These goals contain both cost and performance metrics, ensuring that when the goals are realized, the new technologies will be attractive to our customers.
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We believe that it is extremely important to begin addressing the issues involved with shifting the balance from petroleum and toward hydrogen. The most promising sources of hydrogen, both in the intermediate term, and in the long-term, must be identified and researched. It is also critical to demonstrate user-friendly hydrogen fueling stations and develop a roadmap for the new infrastructure development. FreedomCAR can serve to jointly develop demonstration plans and milestones to lead the transition to hydrogen powered vehicles.
While the vision of the FreedomCAR partnership is long range, many aspects of the research will likely have nearer term benefits. Lightweight material technologies can and will provide benefits for a variety of vehicles regardless of propulsion system. And power electronic technologies, critical for fuel cell drivetrains, are equally beneficial for nearer-term vehicles. The USCAR partners also support continuing FreedomCAR funding to address promising combustion and after-treatment technologies for internal combustion engines.
FreedomCAR research is being focused at the component and sub-system level which will be applicable to a wide range of vehicle segments. This will facilitate the migration of technologies into the most appropriate vehicle platforms as the technologies meet their goals. The auto industry pledges to bring advanced technologies to market as soon as a business case can be made for them while at the same time providing our customers with vehicles that are safe and give them the kind of performance, function, utility, and value they need and expect for their money. Past USCAR and government collaborative programs have provided, and will continue to provide benefits to the American public. New materials technologies have helped reduce weight, and combustion and after-treatment technologies are migrating to today's vehicles. Clean fuels including low sulfur diesel is a must if these interim technologies are going to make it into the market place. All of the USCAR partners have announced hybrid electric vehicles in 2003/2004 and all are in truck and SUV segments where this technology yields the maximum fuel savings.
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In summary, the USCAR partners are in full support of FreedomCAR and are hard at work on advanced technologies, including technologies that will help make hydrogen powered vehicles a reality.
Thank you.
Attachment
FreedomCAR:
Energy Security for America's Transportation
[AGREEMENT BETWEEN DEPARTMENT OF ENERGY AND
UNITED STATES COUNCIL FOR AUTOMOTIVE RESEARCH]
Vision:
Affordable full function cars and trucks are free of foreign oil and harmful emissions, without sacrificing safety, freedom of mobility and freedom of vehicle choice.
Message:
America's transportation freedoms:
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Freedom from petroleum dependence
Freedom from pollutant emissions
Freedom to choose the vehicle you want
Freedom to drive where you want, when you want
Freedom to obtain fuel affordably and conveniently
National Benefits:
Ensure the Nation's transportation energy and environmental future, by preserving and sustaining America's transportation freedoms. In other words, Freedom and Security made available through Technology.
The government and industry research partners recognize that the steady growth of imported oil to meet our demand for petroleum products is problematic and not sustainable for the Nation in the long-term. No single effort limited to one economic sector can successfully change this trend. Altering our petroleum consumption patterns will require a multi-tiered approach, including policy and research programs, across every end use sector of our economy. The transportation sector has a significant role to play in addressing this challenge, and success resulting from the FreedomCAR research initiatives will help accomplish the broader National Goals and Objectives that are being pursued.
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Strategic Approach:
Develop technologies to enable mass production of affordable hydrogen-powered fuel cell vehicles and assure the hydrogen infrastructure to support them.
Continue support for other technologies to dramatically reduce oil consumption and environmental impacts.
Instead of single vehicle goals, develop technologies applicable across a wide range of passenger vehicles.
Technology Specific 2010 Goals(see footnote 2)
To ensure reliable systems for future fuel cell powertrains with costs comparable to conventional internal combustion engine/automatic transmission systems, the goals are:
Electric Propulsion System with a 15-year life capable of delivering at least 55kW for 18 seconds, and 30kW continuous at a system cost of $12/kW peak.
60 percent peak energy-efficient, durable fuel cell power system (including hydrogen storage) that achieves a 325 W/kg power density and 220 W/L operating on hydrogen. Cost targets are at $45/kW by 2010 ($30/kW by 2015).(see footnote 3)
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To enable clean, energy-efficient vehicles operating on clean, hydrocarbon-based fuels powered by either internal-combustion powertrains or fuel cells, the goals are:
Internal combustion engine powertrain systems costing $30/kW, having a peak brake engine efficiency of 45 percent, and that meet or exceed emissions standards.
Fuel cell systems, including a fuel reformer, having a peak brake engine efficiency of 45 percent, and that meet or exceed emissions standards with a cost target of $45/kW by 2010 and $30/kW in 2015.,(see footnote 4)
To enable reliable hybrid electric vehicles that are durable and affordable, the goal is:
Electric drivetrain energy storage with 15-year life at 300 Wh with discharge power of 25 kW for 18 seconds and $20/kW.
To enable the transition to a hydrogen economy, ensure widespread availability of hydrogen fuels, and retain the functional characteristics of current vehicles, the goals are:
Demonstrated hydrogen refueling with developed commercial codes and standards and diverse renewable and non-renewable energy sources. Targets: 70 percent energy efficiency well-to-pump; cost of energy from hydrogen equivalent to gasoline at market price, assumed to be $1.25 per gallon (2001 dollars).(see footnote 5)
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Hydrogen storage systems demonstrating an available capacity of 6 weight percent hydrogen, specific energy of 2000 Wh/kg, energy density of 1100 Wh/liter at a cost of $5/kWh.(see footnote 6)
Internal combustion engine powertrain systems operating on hydrogen with a cost target of $45/kW by 2010 and $30/kW in 2015, having a peak brake engine efficiency of 45 percent, and that meet or exceed emissions standards.
To improve the manufacturing base, the goal is:
Material and manufacturing technologies for high volume production vehicles which enable/support the simultaneous attainment of:
50 percent reduction in the weight of vehicle structure & subsystems,
affordability, and
increased use of recyclable/renewable materials.
BIOGRAPHY FOR ROBERT N. CULVER
Mr. Culver is the Executive Director for the United States Council for Automotive Research (USCAR). USCAR is the umbrella organization for the partnership between DaimlerChrysler, Ford Motor Company and General Motors to further the technology base of the domestic auto industry through cooperative, pre-competitive research.
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Mr. Culver was born March 6, 1945 in Saginaw, Michigan. He received a Bachelor's degree in chemical engineering and a Master's degree in business administration from the University of Michigan in 1968 and 1975 respectively. Mr. Culver joined Ford in 1968 as a quality control engineer in the Climate Control Division and held several positions in that Division leading to Principal Engineer in 1977. In 1978, Mr. Culver joined Engineering and Research Staff as a Staff Planning Associate. In 1983, he led the formation of the Company's Corporate Technical Information System. Mr. Culver moved to Manufacturing Strategy and Planning as a Project Manager in 1989. In 1992, he was appointed Planning Manager in the Ford Research Laboratory. Mr. Culver was appointed Policy & Business Strategy Manager, Partnership for a New Generation of Vehicles (PNGV) in March, 1998. In this position, he led the policy for Ford's efforts in the PNGV program and manages the business relationships of the program. Mr. Culver also serves as Ford's corporate College Relations contact for the University of Michigan.
Mr. Culver is married, has two children, and lives in Farmington Hills, Michigan. He enjoys spending time with his family, playing racquetball, and collecting antiques.
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Mrs. BIGGERT. Next we will hear from Mr. Stan Borys, Executive Vice President and Chief Operating Officer with the Gas Technology Institute, which is located not far from here in Des Plaines. So welcome, Mr. Borys.
STATEMENT OF MR. STANLEY BORYS, EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER, GAS TECHNOLOGY INSTITUTE
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Mr. BORYS. Thank you. With your permission, I would like to use the podium. I would hate to have our host go through all of the efforts of setting up.
Mrs. BIGGERT. Right. And we have a microphone there too.
Mr. BORYS. Madam Chairman and Members of the Subcommittee, thank you for the opportunity to testify this morning. GTI is the Nation's premier industry-led natural gas research and development organization, dedicated to meeting the Nation's energy and environmental needs.
Over the last four decades, GTI and its predecessor organizations, the Gas Technology Institute, I'm sorry, the Gas Research Institute and the Institute of Gas Technology have been leaders in R&D for production, delivery and utilization of hydrogen. GTI's 1972 publication, ''A Hydrogen Energy System'' is recognized as the key historical resource in the hydrogen energy industry and is credited with coining the phrase ''hydrogen economy.'' Excuse me. GTI envisions a growing role for hydrogen in the worldwide energy economy during the 21st Century, and is currently conducting research in fuel cell components and power systems, hydrogen production, fueling stations and vehicles hydrogen combustion for industrial systems and codes and standards.
While I agree that fuel cell airplane is well-off into the future, we are currently doing hydrogen oxygen combustion studies for advanced pertinent that hold the promise of zero emissions—zero emissions power systems for power production and also for jet propulsion and jet transportation use.
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We believe that the development of the fuel cell industry will revolutionize some of the largest energy markets in the world; both in the supply and demand sides. The evolution to hydrogen has aligned long-term trend to solid fuel, prolific fuels and ultimately the gaseous fuels. Driven by carbon emission concerns and energy supply and diversity concerns, natural gas and hydrogen will only be used in the coming century. Indeed, natural gas consumption alone is predicted to grow to approximately 22 trillion cubic feet per year to over 30 trillion cubic feet during the next decade.
Although, most media attention is being paid for transportation, stationary markets for fuel cells will likely develop before vehicle applications.
Electricity sales in the U.S. Are approximately $220 billion per year and represent one-quarter of the total global energy market. Deregulation of the industry will result in increased opportunity for alternative source energy producers in these markets.
Fuel cell systems are unobtrusive, with very low noise levels and negligible air emissions. They offer higher efficiencies than conventional plants and improve power quality. While there are many fuel cell studies, with this recent one by Bank of America Securities from June 2000 outlines four segments of the stationary markets and projects total sales by 2010 over $35 billion for distributed generation savings. We expect that the share of distributed generation for fuel cells will be low for a few years, but increasing to approximately 50 percent of the commercial distributed generation market in 2010.
The most attractive market in the U.S. For residential usage of fuel cells are areas where the average cost of electricity is high and the average cost of natural gas is low. Those factors occur most strongly in New England, New York, California and Illinois. Additionally, approximately 60 percent of new homes being built in the U.S. are connected to natural gas which can be used as fuel cell systems that serve as an alternative source to power generation.
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The progress on fuel cells could not have been achieved without the active sponsorship of the Federal Government and fuel cell R&D continues to support is essential through the division of a strong role of the fuel cells in the future. Over the last several years with announcements of involvement by automotive companies, the public has begun to perceive fuel cells as a commercial technology. The industry and government eagerness with acquired success should not override awareness that technical or economic privilege remain. As we sit here today, in my opinion, there are no commercial fuel cell systems available. That is, there are no fuel cell products that can be economically produced to meet the reliability and performance requirements of any significant market.
Further, there are several different fuel cell technologies each with their own unique characteristics applicable to different market segments. It is important for DOE to continue the diversity of its funding efforts as it would be premature to single out any particular fuel cell technology or priority.
I would like to point out two Federal programs that are crucial to achieving the goals of the National Energy Policy, ideally it has formed a Solid State Energy Conversion Alliance, SECA, with emphasis on public/private partnership for technology development. In order to be successful, the SECA program is designed as a long-term 10-year program. The President's budget requests for SECA in 2003 falls far short of the need to both continue the momentum on the four current contractors, much less initiate any new contractors for the program.
We urge the Subcommittee to support the 2003 DOE request of $22.5 million, add an additional $30 million dollars to the overall SECA initiative to more fully meet the program goals.
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The DOE Office of Energy Efficiency is responsible for fuel cells compound of the FreedomCAR as well as fuel cells for stationary building applications. We urge the committee to fully fund the energy and efficiency FY 2003 budget request and continue that support in subsequent annual budgets.
Madam Chairman, thank you for the opportunity to address these issues.
Mrs. BIGGERT. Thank you, once again.
[The prepared statement of Mr. Borys follows:]
PREPARED STATEMENT OF STANLEY BORYS
Madame Chairman, Members of the Subcommittee, thank you for the opportunity to testify here today. My name is Stan Borys. I am the Executive Vice President and Chief Operating Officer of the Gas Technology Institute, headquartered in Des Plaines, Illinois. The Gas Technology Institute is the Nation's premier industry-led natural gas research and development organization, dedicated to meeting the Nation's current and future energy and environmental challenges by developing solutions for consumers and industry. We strongly believe that a portfolio of advanced technology is critical to meeting the Nation's growing demand for clean, secure and affordable energy. I would like to take this opportunity to brief you on our activities associated with a very important component of that portfolio—fuel cells and hydrogen-based energy—and to offer our views on the role of the Federal Government in facilitating the development of these important new technologies.
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GTI and the ''Hydrogen Economy''
Over the last four decades, the Gas Technology Institute (GTI), and its predecessor organizations—the Institute of Gas Technology (IGT) and Gas Research Institute (GRI)—have been leaders in R&D for the production, delivery, and utilization of hydrogen. GTI's 1972 publication, ''A Hydrogen Energy System,'' is recognized as a key historical resource in the hydrogen energy industry and is credited with coining the term ''hydrogen economy.'' GTI envisions a growing role for hydrogen in the worldwide energy economy during the 21st Century, and is currently conducting research in:
Hydrogen combustion: Novel industrial burners (mixed fuel combustion), engines (hydrogen and methane mixtures)
Hydrogen production: including biomass, reformation of hydrocarbons, biological, and electrolysis-based processes
Vehicles: Hydrogen fueling stations and vehicles
Codes & Standards: Participation in SAE, UL, and other pertinent code, standards, and recommended practice development organizations
Fuel cell components and power systems
GTI intends to build on its leadership position in the development of technologies related to hydrogen-based sources of energy, particularly fuel cells. We recently created the Innovative Energy Conversion Technologies Center within our organization, forming a business unit that concentrates all of our fuel cell, fuel processing, hydrogen and alternative fueled vehicle capabilities and expertise.
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Fuel Cells and Stationary Power Markets
We believe that the development of the fuel cell industry and other forms of electrical power generation will revolutionize some of the largest energy markets in the world; both the supply and demand sides. Obvious effected parties include power producers and distributors of energy and the automotive/transportation industry. Other testimony will be given today relating to the automotive and transportation applications—my remarks will focus on stationary applications.
The fuel cell industry is on the edge of a significant spurt in growth. However the industry is still in its infancy and is ripe for technology advances. Many technical, engineering and manufacturing challenges still remain. The biggest obstacle to the development of viable commercial products is that incorporating fuel cells into these products is still relatively expensive as compared to traditional power generation methods. Despite dramatic increases in power density and reductions in the material costs per cell over the past five years, particularly with respect to PEM fuel cells, fuel cells still remain relatively expensive. Aside from very low production levels that inhibit the ability to achieve economies of scale, several important fuel cell components are still far too expensive to allow fuel cells to achieve more than very limited commercial viability. GTI is working to develop technologies that reduce those costs, which I will discuss later in this testimony.
The market and growth potential for fuel cells is enormous.
Electrical Power Generation Market
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Electricity sales in the U.S. are between $220 and $230 billion per year and represent between 20 percent and 25 percent of the total global electricity market. Increased deregulation in the industry will continue to result in increased opportunities for alternative source energy producers and distributors in these markets.
We expect that the percentage of power generation supplied by central utilities will continue to decline sharply over the next ten years, due in large part to state deregulation legislation. One impact will be increased competitive pricing and shrinking of utility profit margins. A growing share of total generation will be provided by non-utility generators, of which merchant generators will provide the biggest share. Generation by large non-central generators and distributed generators will also grow. In particular, we believe that demand for fuel cell products and systems will increase as the worldwide need for distributed, off-grid electric power grows.
Fuel cell systems offer many potential benefits as a distributed generation system. The systems are unobtrusive, with very low noise levels and have negligible air emissions. These qualities enable them to be placed close to the source of power demand. Phosphoric acid fuel cells, for instance, have already been installed in places like Central Park and office buildings in New York City and other locations where other sources of on-site electric power generation would simply not be acceptable. Fuel cells also offer higher efficiencies than conventional plants. Utilizing the quality waste heat derived from the fuel cell reactions for combined heat and power and combined-cycle applications can enhance their efficiency, maximizing their energy value while helping to conserve our nation's—and our world's energy supplies. Those higher efficiencies also help lower overall emissions.
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Moreover, a number of market trends favor significant penetration of fuel cells into the distributed power generation market.
While there are a variety of market projections available for fuel cell and distributed generation sales available, one of the more recent and targeted projections appeared in a Bank of America Securities report from June 2000. This report outlines four sub segments of the stationary markets and projects total sales by 2010 of over $35 billion for distributed generation sales in the United States. Because fuel cell products are not as mature as some competing technologies, we expect that the share of distributed generation sales attributable to fuel cell units will be quite low for a few years, eventually increasing to approximately 50 percent of commercial distributed generation sales in 2010.
We believe that producers of fuel cells and other distributed forms of power generation, as compared to producers of traditional methods of power generation, will be able to capture a significant portion of the growth in the overall market for electricity.
Residential Markets
Residential fuel cells are essentially miniature home power plants that use a combustion-free process to safely and efficiently convert readily available fuels into electricity.
Although more public and media attention is being paid to transportation fuel cells than small stationary applications because of the revolutionary impact automotive fuel cells may have, small stationary markets may open before vehicle applications. The power and performance requirements, as well as issues of weight, size and conversion of available fuel supplies to the hydrogen necessary for fuel cell operation may make residential applications an attractive target for early fuel cell use.
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Fuel cells will provide homes and small businesses a compact, efficient, reliable, clean, and economical means of meeting their complete power requirements. According to the Energy Information Administration, over the past two decades, the percentage of energy provided by electricity to U.S. housing units increased from 23 percent of all energy consumed in 1978 to 35 percent in 1997. This trend is expected to continue.
Early market opportunities (Phase I) for fuel cells in residential applications are expected to be niche-oriented and to include remote locations, luxury homes and enthusiastic environmentalists who desire to leave the current electrical grid system or install back up power. Currently there are five or six homes for every mile of transmission wire across many of the rural electric lines in the U.S. Depending upon the region, the cost to install or replace these line ranges from $15,000 to $40,000 per mile. Remote homes classified as ''end of the line'' or ''tag end'' customers are estimated at 37 million U.S. households.
The modularity and fuel flexibility of fuel cells makes them uniquely suited to provide power to areas that currently have little or no power grid infrastructure. The number of people in the world today who have no access to reliable electricity is around three billion. To date, providing these countries/regions with electricity depends on establishing enormous power generating stations that are usually well in excess of local needs, which is a huge economic barrier to fuel cells, however, offer a much more economic alternative to provide remote and scarcely populated areas with access to electricity because their modular design means they can be used to establish a power infrastructure commensurate with current needs which can be adapted over time as demand increases.
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Phase II of the residential market will witness the beginnings of mass-market opportunities and will most likely begin in 2005–06. With economies of scale, fuel cell economics are expected to reach $1,000 to $1,500 per kW by 2003.
The most attractive initial markets in the U.S. for residential usage of PEM fuel cells include New England, New York, New Jersey, California, Michigan and Illinois, where average electricity costs are high and average natural gas costs are low. Additionally, approximately 60 percent of the new homes being built in the U.S. are connected to natural gas, which can be used as fuel in a fuel cell system that serves as an alternative source of power generation.
Moreover, momentum is already building in support of reasonable interconnection standards. Pennsylvania, New Jersey, and Ohio have recently passed legislation, which qualifies fuel cell systems of 10 kW or less for net metering and provides comprehensive interconnection standards. Many other states, such as Illinois, California, and Texas are in the process of establishing reasonable interconnection standards for small-scale distributed generation. It is by no coincidence that the states promoting grid interconnection are also among the most attractive states for fuel cell system deployment from an economic standpoint.
Industrial-Commercial Markets
Early market opportunities for industrial and commercial applications in the distributed generation market is aimed at customers dependent on reliable energy, such as hospitals, manufacturing plants, grocery stores, restaurants, semiconductor plants and banking facilities where reliable supply of high-quality power is crucial to ensure continuous operations.
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There is currently over 15 GW of distributed power generation operating in the U.S. Over the next decade, the domestic market for distributed generation, in terms of installed new capacity to meet the demand, is estimated to be 5–6 GW per year. The projected global market capacity increases are estimated to be 20 GW per year.
Several factors have played a role in the rise in demand for distributed generation.
Utility restructuring is one of the factors. Deregulated energy suppliers must now take on the financial risk of capacity additions. This encourages less capital-intensive projects and shorter construction periods, both of which can be accomplished with the use of fuel cells. Energy suppliers are also increasing capacity factors on existing plants rather than installing new capacity, which places pressure on reserve margins. This increases the possibility of forced outages, thereby increasing the concern for reliable service. There is also a demand for capacity additions that offer high efficiency and use of renewables as the pressure for enhanced environmental performance increases.
In recent years, power outages have been a growing problem due to declining electrical reserve margins across much of the U.S. During periods of high demand, some utilities have used a procedure known as ''rolling brownouts'' to systematically lower voltage levels in certain predetermined areas for several hours at a time. There have also been more and more major power outages such as the ones that occurred in San Francisco, Detroit, Philadelphia and Tulsa in the summer of 2000. In certain areas of the country, electricity consumption exceeds available supply. This electricity shortfall has been particularly severe in San Diego where available supply and increased demand resulted in exorbitantly high and volatile electricity prices.
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For consumers who need reliable and quality power, the increased risk of power disturbances or outages represents additional market opportunities commonly referred to as the Uninterruptible Power Supply (UPS) market. The UPS market in 2000 was estimated to be in excess of $12 billion globally and growing by 30 percent annually. This rapid rate of growth in the need for UPS is expected to continue for the next 15 years, due in part to the explosive growth in the computer and Internet related industries. Industry sources have estimated that the share of all U.S. electricity consumed by computer-based microprocessors is 13 percent and that within the next two decades up to 50 percent of the Nation's electricity supply may support the direct and indirect needs of a computer based economy.
In addition to power reliability, there is a growing need for higher quality power to serve the increasingly sensitive and precise digital circuitry at the heart of the new Internet and computer based economy. The annual cost of poor power quality represents inefficiencies and costly opportunity costs. The Electric Power Research Institute (EPRI) in a 1999 study estimated that electric power problems annually cost U.S. industry more than $30 billion in lost data, material and productivity.
GTI and Fuel Cells
GTI is proud of its strong and continuing influence on the development of fuel cells since the late 1950's, spanning all of the major fuel cell technologies. Indeed, the seminal patents and intellectual property of several major U.S. fuel cell developers originated at GTI.
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A fuel cell power system is not one technology, but rather represents a collection of various technologies, many of which have ramifications for other sources of hydrogen-based energy. For example, most fuel cells require a source of hydrogen, which must be produced economically and from available fuels. GTI is working on several varieties of fuel processors that extract hydrogen from natural gas. These processors can be used as the source of energy for individual fuel cells, or can be used to produce hydrogen in vehicle fueling stations, as we expect to demonstrate in a Department of Energy (DOE) sponsored project that will begin operation in 2004.
Earlier in this testimony, I noted that there were several components of PEM fuel cells that still represent barriers to economically priced systems. Chief among them are membranes and bipolar plates. GTI is working on several promising projects that might achieve cost breakthroughs for these components, which not only have application to fuel cells, but also to advanced batteries and electrolyzers. At present, these component development programs are internally funded. As a non-profit, however, our resources are quite limited—we are currently seeking both private and public funding to augment these vital programs.
The Role of the Federal Government
Fuel cells will play a significant role in this nation's energy future and offer the promise of enhanced energy efficiency, low to no emissions, higher power reliability and better power quality. Enormous progress has been made in bringing these technologies closer to commercialization, but none of that progress could have been achieved without the active sponsorship of the Federal Government in fuel cell R&D. We believe that continuation of that support is not only essential to achieving the vision of a strong role for fuel cells in the future, but that the support should increase.
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Over the last several years or so, with several fuel cell development companies entering the stock market and with the announcement of the involvement of major automotive companies, the public has begun to perceive fuel cells as ''commercial'' or imminently ''commercial.'' While rapid and significant progress is clearly being made in fuel cell technology, the industry and governmental eagerness to declare success should not override awareness that technical and economic hurdles still remain.
It is our view that, in the broad sense of the word, there are no truly commercial fuel cell systems available—that is to say products that are economically priced with established track records for reliability and performance. Further, it must be remembered that there are several different fuel cell technologies, each with different characteristics and each with a role for key market segments. For example, among the primary technologies, proton exchange membrane (PEM) fuel cells appear to be closest to wide scale production and may be best suited for small building, remote and automotive applications. Basic component development work is still necessary, however, as well as substantial demonstration of operating systems. Solid oxide fuel cells, particularly those oriented to smaller applications, offer very high overall efficiencies by providing both electricity and heat, but still require substantial development work before numerous power plant system demonstrations can deployed.
While it is clear that many of the fuel cell technologies have been shown to work, it is important not to confuse ''work'' with ''commercially viable.'' Considerable development and federal support is still necessary for all fuel cell technologies. As a consequence, it is important for DOE to continue its diversity of funding efforts, as it would be very premature to single out any particular fuel cell technology for priority.
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Key Federal Initiatives
I would like to point out two federal programs that are crucial to achieving the goals of the National Energy Policy, and that deserve not just continuing support from the Committee but increased funding.
DOE's SECA Program
Ultra-high efficiency solid oxide fuel cells promise to foster a secure and reliable energy system that is environmentally and economically sustainable. DOE has formed the Solid State Energy Conversion Alliance (SECA) made up of commercial developers, universities, national laboratories, and government agencies to develop the all-solid state concept. The emphasis is on public-private partnership for technology development complemented by a core technology program for resolution of key barriers. DOE's National Energy Technology Laboratory's approach for the cost reduction is to develop a common core module for multiple applications. Mass commoditization of fuel cell components for stationary, mobile, and military applications can lead to mass manufacturing and in turn, lower unit costs.
The SECA program is a 3-phase 10-year effort. Initial emphasis will be to reduce the operating temperature, thereby improving efficiency, and manufacturing cost. Phase 1 is aimed at technology development of planar solid oxide fuel cell capable of meeting requirements of the targeted market segment(s). Innovative system design for the power module and alternate manufacturing processes to reduce cost of the fuel cell components will be developed.
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In order to be successful, the SECA program was designed as a long-term, 10-year program. The President's budget request for the SECA program for FY 2003 falls far short of the need to both continue momentum on the four current contractors, much less initiate any new contractors for the program.
We urge the Subcommittee to support the FY 2003 DOE request of $22.5 million and an additional $30 million dollars for the overall SECA initiative to fully meet the program needs.
DOE Office of Energy Efficiency and Renewable Energy (EERE) Programs
Assistant Secretary Garman's reorganization efforts have concentrated all EERE fuel cell R&D programs within his Hydrogen & Infrastructure Program Office. This office is responsible for the fuel cell component of the FreedomCAR program, as well as fuel cells for stationary building applications, including combined heat and power. Both programs intend to fund, through partnerships and co-funding with industry, important ongoing fuel cell component and system R&D. We urge the committee to fully support the EERE FY03 budget request and, given the fact that many of these programs are multi-year, continue that support into subsequent annual budget requests.
Summary
Madame Chairman, we at GTI believe that stationary fuel cells will play an increasingly important role in the evolution of the Nation's energy portfolio, offering a number of advantages over large scale centrally generated electricity. Even if only a portion of the ''Hydrogen Economy'' is realized in this country, the portion closest to implementation is stationary fuel cells. But the advantages to our economy and our ecology that fuel cells offer can only occur with a strong and continued partnership of government and industry. Initiatives taken in the National Energy Plan, and specific programs now under way in the Department of Energy deserve continued support and increased funding. Thank you for this opportunity to address the Committee.
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Mrs. BIGGERT. He gave himself 46 seconds to walk back.
Mr. BORYS. I'm trying not to interfere with the line of fire.
Mrs. BIGGERT. Next, we will hear from Mr. Jeffery Serfass, President of the National Hydrogen Association which is made up of industry, providers, universities and national labs and is here from Washington, D.C., you may begin.
STATEMENT OF MR. JEFFREY A. SERFASS, PRESIDENT OF THE NATIONAL HYDROGEN ASSOCIATION
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Mr. SERFASS. Thank you very much, Congresswoman Biggert, and Representative Woolsey—.
Mrs. BIGGERT. You might want to pull that a little bit closer. Now you have two.
Mr. SERFASS. I hope I don't break the unwanted record. The National Hydrogen Association is pleased to be here to offer comments this morning. We are an industry trade association that is dedicated to removing the barriers of building markets for the infiltration of hydrogen and systems. The National Hydrogen Association is comprised of nearly 70 members, including all the major automobile manufacturers, energy companies, utility fuel cell developers, the industrial gas producers, the chemical companies, national labs and universities.
We were formed in 1989, to foster development of hydrogen technologies and the utilization and industrial and commercial applications, to promote the transition of hydrogen in the energy field. You asked me to comment this morning a little bit on the general nature of hydrogen and some of it has been covered, so I will summarize it briefly. It is clear that we have stated the basic following elements.
It is the ultimate end point of the decarbonization of our energy system as societies from wood to coal, and is now moving to petroleum and natural gas. Each of those have fewer and fewer carbon atoms and molecules, and hydrogen, of course, has none. It is produced today, let's be clear about that. It is used today in the petroleum industry, it has been used widely in the space industry.
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It has been used in many industrial processing foods and semiconductors. And what we're talking about here today is hydrogen transformation as a fuel, it is used as a fuel by a chemical commodity. I know the fuels, it is combustible, it is explosive and if handled properly, it is safe.
Why hydrogen then? I can give you four reasons. Environment, good department, no emissions at all when used as fuel a cell. Secondly, energy diversity; it can be produced from almost any energy resource in our vision and many peoples' vision is highly introduced as a renewable energy. It is a transforming energy barrier, wind utilizes hydrogen and can become a transportation fuel, for instance. And fourthly, and very importantly today, energy security. Local resources in this country, and frankly, in countries where local resources can be substituted for imported fuels, and converted into hydrogen.
Let's see here, if I follow what I have written down and skip over applications, I think that has been covered a little bit. I want to talk a little bit, however, about the growth concern markets. The global of fuel hydrogen, is and it has been potential for free countries and the requirement to import large quanties of oil. Two facts, the global market for vehicles, air craft and electricity represent growth industries through the 21st Century.
Estimates are the number of vehicles worldwide to go by a factor of 10 over the next century and approximately 40 percent of the human race has no access to electricity. And many of those who have access to electricity it is either unreliable or unavailable 24 hours a day. So, unfilled demand globally makes it imperative to develop cleaner methods for transportation and powered functions that will boldly be applicable to help reduce environmental emissions.
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There is significant trends throughout this country and elsewhere there have been shaped as a pattern of hydrogen for a transition for fuel. Clearly, the increasing efforts is on national security will be a first. Secondly, the increased interest in climate change and the specific role in carbon, what carbon monoxide has in global warming. Third, in nature trends your acceptance to renewable energy and portable tanks, and the successful use of wind as the rapidly growing way of producing electric energy. Fourth, is the utility and strength, and there is a lot allowing serious consideration of smaller forms of generation and quicker generation. And fifth, is the emphasis on zero wind vehicles as California has proven to be the leader and ultimate motor vehicles and growing interest in other parts of the world.
So, with those trends, we need to recognize hydrogen's desirability of the challenges remain. There are challenges in production. The uses today we are looking for hydrogen produced possibly in gasoline station environments, a service station environment, smaller scale reformers, efficiency gains and electrolysis ways to convert renewable energy to hydrogen storage technologies and the application of hydrogen requires fuel cells and also, however, the internal combustion engine provides excellent transition strategy. And fourth, is the infrastructure, the fourth challenge remains. And to get an acceptable infrastructure, you not only need the kinds of investments that my friends at BP said, but you need codes and standards, as have been mentioned already.
So, what do we need from government? We need increased cost share in production and those areas where technology challenge remains. We need demonstrations that tend to rely ultimately on public exposure to hydrogen, but also the early development of sudden infrastructure. We need to experience this for demonstration as you would, would that be continuing R&D. We need the codes and standards from safety and acceptance by local and State and Federal code officials. We need good education on that to inform the public and policy majors about this, the expected schedule, the time frame, the challenges, and the desirability for hydrogen fuel cells and we need government leadership, not only in buyer, but in tax as well, and other vices to pay for that.
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I think the backbone of our organization is the corporate interest of hydrogen. The corporate interest, the backbone of hydrogen, is the richness of the benefits of the diversity as it has in the past. This presents many opportunities for research organizations large and small and identify the potential use of energy for themselves competitively.
There is no simple answer to the winner in terms of storage, fuel cells and fuel strategy, and others, and the winners will be those who compete. Polyination of these competitive technologies and competitive business strategies are very robust and powerful. Most powerful in our government and vision that hydrogen can be renewable energy and the mainstream of transportation which is a large term, reusable power of intermittent renewable energy resources and it can be used like electricity, with little or no environmental impact.
Mrs. BIGGERT. Thank you very much.
[The prepared statement of Mr. Serfass follows:]
PREPARED STATEMENT OF JEFFREY A. SERFASS
Benefits and Challenges of a Sustainable Hydrogen Energy Future: Reassessing the Transition
The National Hydrogen Association (NHA) is an industry led trade association dedicated to removing barriers to the implementation of hydrogen energy systems. The NHA is comprised of 69 members, including automobile manufacturers, fuel cell developers, industrial gas producers, chemical companies, national laboratories, and universities. The NHA was formed in 1989 to foster the development of hydrogen technologies and their utilization in industrial and commercial applications and to promote the transition role of hydrogen in the energy field. The NHA serves as a catalyst for information exchange and cooperative projects and provides the setting for mutual support among industry, government, and research organizations.
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Benefits of Hydrogen Energy
The global appeal of hydrogen is that it has the potential to free most countries from the requirement to import large quantities of oil. The global markets for vehicles, aircraft, and electricity represent growth industries through the 21st Century. Estimates are that the number of vehicles worldwide could grow by a factor of 10 over the next century. Approximately 40 percent of the human race has no access to electricity and many of those who have access are served by electricity that is either unreliable or not available 24 hours per day. Such unfulfilled demand makes it an imperative to develop cleaner methods of transportation and power production that will be globally applicable and that can reduce environmental degradation.
Given the structural changes in electric utility markets, with their eventual globalization, and the existence of global vehicle and aircraft markets, the focus of a global hydrogen vision coincides with a shift to marketing products that could operate globally on hydrogen. Satisfying the demand for clean electricity, cars and aircraft with hydrogen-fueled products will, in turn, drive the development of adequate hydrogen production and storage to support it. It has been recognized for more than a decade that automakers must make world cars and aerospace companies must design and sell aircraft globally. With the restructuring of the electric utility industry, utilities are forming subsidiaries that are looking beyond their home territories and countries, as well as signing worldwide agreements to provide energy to industrial and commercial clients.
Five major trends have emerged that are shaping today's discussion of a hydrogen bridge.
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1. There is an increasing emphasis on National Energy Security.
2. There is increased interest in climate change and the specific role of CO in global warming.
3. The acceptance of renewable energy, particularly photovoltaics for niche markets, has increased dramatically.
4. Restructuring of the utility industry has allowed serious consideration of distributed generation and alternate energy delivery systems.
5. The emphasis on zero-emission vehicles (ZEVs) and ultra-low-emission vehicles (ULEVs) in Southern California and a growing interest in other parts of the world has created a potential clean vehicle market for auto manufacturers.
Since the 1970s, environmental concerns have continued to become more acute, especially with exploding population growth and rapid industrial development throughout the world. Issues of the environment also have become globally connected issues. Issues and concerns that were once only considered in a local or national context are now perceived as international issues. Internationally common concerns about nuclear power plant accidents, atmospheric nuclear testing, acid rain, ozone depletion, and climate change all attest to the globalization of environmental issues. The use of hydrogen energy in a fuel cell results in no harmful emissions at the point of use. Hydrogen produced from renewable resources also reduces harmful emissions during production. Hydrogen can be produced renewably through electrolysis of water, or through reformation of fossil fuels. This enables hydrogen to be the key to energy diversity, and therefore sustainability.
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In many countries, increasing concerns about carbon dioxide, ozone, nitrogen oxides, volatile organic compounds, sulfur oxides, and many other emissions have led to more stringent regulations. Under the increased severity of environmental regulations and the greater scope of environmental problems, the concept of a hydrogen energy system is very attractive. As an energy carrier, hydrogen is clean. In its purest form, hydrogen can be produced from water or biomass and is completely recyclable back to water.
The tragic events of September 11, 2001 sounded a clarion call for the need for energy security. Each country has the potential to provide for its own energy needs, including economic growth, through the use of hydrogen energy.
At this time of increasing industrialization and population growth, the vision of sustainably produced hydrogen, driven by an inexhaustible clean energy source for the mid-21st Century, is more attractive than ever. But is there a way to bridge from our fossil fuel, nuclear, and electric present to a hydrogen electric future? Is there an affordable, acceptable, and sensible role for hydrogen that we should be developing over the next 10 to 50 years to prepare for a future hydrogen economy and, if so, what actions need to be undertaken?
Challenges for Hydrogen
Over time, expanding demand and constrained supply will make traditional fossil sources less abundant and more expensive than at present. Over the past 25 years, many environmental factors have moved much of the industrial world from a nuclear and fusion future for electricity, to one based on an increasing displacement of fossil fuels by renewables into the 21st Century. While electricity produced from renewables is very clean, electricity is not a universal energy carrier. Electricity cannot, for example, be used as aircraft fuel, for long-range road vehicles, or for manufacturing processes that require a hydrogen source. Long-term electric storage is prohibitively expensive. Hydrogen could provide storage capability for electricity, fuel aircraft and ground transportation, and still be used in the production of ammonia, hydrocarbons, plastics, and other products. The challenge will be developing commercially acceptable ways of storing, transporting, and utilizing renewably produced hydrogen.
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A bridge strategy for hydrogen will only be effective if it relies on hydrogen's unique capabilities rather than forcing hydrogen to compete with lower-cost, more convenient energy carriers that meet the same needs. In considering this statement, it should be pointed out that methane (natural gas) is also a form of renewable energy; it can be produced from waste products or gasified biomass, which will not disappear as an energy carrier when the last natural gas well is depleted. Natural gas may well have a lower price than hydrogen when produced renewably. To compete with natural gas, hydrogen may have to rely on its unique chemical and physical properties.
A hydrogen bridge strategy also must consider the status of hydrogen production, storage, and end use. A current review reveals that hydrogen is obtained primarily by processing fossil fuels (natural gas and oil) or recovered as a by-product from chemical and petroleum processing. Production from natural gas requires reformers. Production from coal requires carbon sequestration. Future production can be achieved through biomass gasification, by electrolysis with the electricity supplied by renewable sources, and eventually through various photobiological, photochemical, and thermochemical processes. Efficiency gains in electrolysers are desirable for this option to be economically competitive with natural gas reforming.
Pipelines are not a problem for transportation and storage of hydrogen, but storage technology must be improved. For long-range transport, storage densities must approach 10 percent by weight for hydrogen. This is achievable today with liquid hydrogen storage.
Storage onboard vehicles must allow for driving ranges competitive with today's gasoline engine technologies. Compressed hydrogen gas is a viable option, and several companies are working on tanks to allow higher pressure storage than exists today.
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Hydride storage is also a promising option, with a number of companies exploring various designs for portable power applications, as well as automotive applications.
New developments in gaseous and metal hydride storage technologies have not allowed storage densities to approach 10 percent by weight. This has led to increasing consideration, particularly in Europe, of liquid hydrogen as the principal form of hydrogen storage for vehicles. Lack of progress in magnetic refrigeration has deferred consideration of distributed hydrogen liquefaction. The net effect of these factors indicates a need to conceive a complementary bridge that utilizes PEM fuel cells and that can be used to achieve the same hydrogen energy vision as the original bridge.
Nanotube technology also shows promise, but is a longer-term option in need of additional RD&D, as well as technology validation.
Utilization of hydrogen is a complicated issue. Three applications of interest are aircraft, ground transportation, and power generation. The major enabling technology for two of these options (ground transportation and power generation) is fuel cells. Current estimates are that early fuel cell production units will cost $2,500/kW. This is too expensive for widespread vehicle use by at least a factor of 10. The advantages of a fuel cell over a combustion turbine or other engine systems are the increased efficiency and reduced NOX emissions. The development of a fuel cell vehicle operating on hydrogen might evolve from an engine hydrogen system in which at some future point the engine would be replaced with a fuel cell.
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In order to realize a hydrogen energy economy, a hydrogen infrastructure must be developed. This may include traditional approaches such as trucking in hydrogen and pipelines, as well as on-site hydrogen generation from fossil fuels or electrolysis.
One challenge to creating the necessary infrastructure is the lack of hydrogen safety codes and standards. Fortunately, the U.S. Department of Energy continues to support industry's efforts to develop the necessary codes and standards to permit hydrogen production, storage, and use, including siting hydrogen refueling stations.
Market distribution channels need to be adapted to hydrogen. In addition, the public must be convinced hydrogen is safe and that conveniences (such as driving range, ease of refueling, etc.) need not be compromised by using hydrogen energy.
Partnerships between energy companies and automotive companies, such as FreedomCAR, and demonstration activities such as the California Fuel Cell Partnership, are beginning to explore how to meet these challenges.
Liquid Hydrogen Option—Today, merchant hydrogen is delivered as a liquid. The exceptions are delivery by hydrogen pipelines and over-the-fence delivery of hydrogen. No hydrogen gas transfers are inter-regional today. The ease with which hydrogen liquid can be turned into a gas allows for a scenario where all hydrogen applications that can be met by hydrogen gas also can be met by liquid hydrogen. The cost of liquid hydrogen is significantly greater than hydrogen gas. However, lower storage and distribution costs and higher storage densities for many applications of liquid hydrogen could give it a more competitive cost, in units such as cost per mile, as compared to gaseous hydrogen; the converse is not true. For instance, new high-tech liquid hydrogen containers are anticipated to lower transportation costs by as much as 50 percent.
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If hydrogen is used in aircraft, storage volume requires that hydrogen must be liquid. The International Standards Organization (ISO) is developing standards for storing and dispensing liquid hydrogen. ISO's expectation is that liquid hydrogen will be the principal means of intercountry transfer of hydrogen. Two advantages of the liquid option are that it eliminates a basic storage issue (10% hydrogen storage by weight), and it is the prime method for the delivery of merchant hydrogen today. For industrialized countries, liquid hydrogen is the default fuel for on-board storage since more than 10 percent of the storage system weight would be hydrogen.
A liquid hydrogen option almost certainly requires, at least through the mid-term, a centralized option for hydrogen production since economic liquefaction plants must be large. This probably means either a national electric grid with inexpensive power or steam reforming of large quantities of natural gas. Except in countries with extensive natural gas pipelines, liquid hydrogen may be the favored method of hydrogen distribution since it offers more flexibility. Until magnetic refrigeration becomes a reality, liquid hydrogen production is not an option for village power or isolated local energy systems.
The economics for renewable technologies must be comparable in cost for performing the same function as the energy source that is being replaced. If photovoltaics are replacing storage batteries costing $35/kWh in the Andes so that villagers can watch a World Cup Soccer match on television, then photovoltaics or wind systems are economical. If a remote village has no power, then the price paid for renewables can be economical, even if it is a significant portion of a family's available income, as is the case in remote Alaska. In the long-term, advances in PV, wind, solar thermal, and biomass technologies and manufacturing techniques will allow the penetration of these technologies into virtually all energy markets. The largest factor in decreasing prices are increases in production capacities. The deployment of these technologies in remote locations supports the development of a bridge for a hydrogen vision.
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This ''village path'' strategy must be examined to assess whether it is practical and the details must be developed; however, any alternative to a renewable path is likely to add to environmental problems around the world as fossil fuel use increases with growing populations and intensified industrialization. As nations are forced to greatly increase purchases and use of fossil fuel, especially petroleum, energy will continue to drain their economies.
Outlook
The role of hydrogen in a future sustainable energy economy is becoming clear. There is unprecedented interest from industry, as demonstrated by the active roles traditional energy companies, such as BP, ChevronTexaco, and Shell are taking in hydrogen. In addition, most of the world's leading automotive manufacturers, including BWM, General Motors, Ford, DaimlerChrysler, Toyota, and Honda, all have hydrogen R&D activities, and many have developed prototypes utilizing hydrogen internal combustion engines or fuel cells. The variety of approaches taken by this growing hydrogen industry is indicative of hydrogen's ability to meet a diverse, sustainable energy market. Industry leaders recognize that a hydrogen energy future is inevitable, and they have chosen to be a part of it.
The government has also demonstrated increased interest in hydrogen energy. In addition to growing technology development funding, the U.S. Department of Energy announced a Hydrogen and Fuel Cell initiative, FreedomCAR, and is restructuring to focus efforts on resolving the challenges of hydrogen production, storage, and use, including cost-competitiveness. Legislators are considering tax incentives for clean energy technologies, including fuel cells and hybrids. The Department of Defense has extended its fuel cell buy-down program yet again, and is investing billions of dollars into portable fuel cell applications.
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In fact, the growing interest in hydrogen by various governmental agencies underscores the need for core competency in hydrogen technologies to reside in one place, as was the case in the former DOE Hydrogen Program. Basic R&D efforts often yield results that may be applicable, even revolutionary, for an application outside the intended scope of study. Only through evaluation from a knowledgeable core competency base can this information be properly transferred between agencies and programs in a way to benefit all stakeholders.
The National Hydrogen Association is well positioned to meet the challenges facing the widespread adoption of hydrogen technologies. With strong membership from the energy sector, automotive manufacturers, fuel cell companies, industrial gas suppliers, and a growing number of hydrogen producers and component developers, the NHA represents the common interests of the hydrogen community. Through partnerships with the government, the NHA will continue to support the development of hydrogen safety, codes and standards to permit the siting of hydrogen energy systems. Ongoing efforts include international standards and national codes for hydrogen refueling stations, and international standards for components, including liquid and gaseous hydrogen tanks, and metal hydride canisters, as well as hydrogen production equipment.
The hydrogen industry has a growing interest in educating regulatory agencies, decision-makers, taxpayers, and the public on the benefits of hydrogen technologies, as well as safety aspects of hydrogen energy systems. Too often hydrogen project developers have been stalled in attempts to implement projects because regulatory agencies (including DOT as well as building, fire, and fuel gas code officials) have indicated they are not familiar with the technologies or the expertise available on hydrogen energy systems. The National Energy Policy called for hydrogen education and outreach, and the NHA is working closely with DOE and other agencies to create a cost-effective, but robust program to provide the information needed to facilitate the acceptance of hydrogen energy systems in transportation, stationary power, and portable power applications.
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With all this interest focused on the creation of a diverse hydrogen energy economy, hydrogen is truly ''The Freedom Fuel.''
For more information, contact: Jeffrey A. Serfass, President, The National Hydrogen Association, 1800 M Street, NW, Suite 300, Washington, DC 20036–5802; phone: 202–223–5547; fax: 202–223–5537; e-mail: jserfass@ttcorp.com
BIOGRAPHY FOR JEFFREY A. SERFASS
Mr. Serfass is President of Technology Transition Corporation (TTC), a company that has been creating and managing collaborative efforts to accelerate the commercial use of new technologies since 1986. He is also the founding President of the commercialization organization managed by TTC—the National Hydrogen Association—and he is the founding General Manager of the Solar Electric Power Association.
Besides his development of new projects and business ventures, he remains central to the strategic planning and management of these organizations. His other experience includes work as Director of Utility Rates and Energy Management at the U.S. Department of Energy's Energy Regulatory Administration; Program Manager for Electric Energy System Division, U.S. Energy Research and Development Administration; and Corporate Marketing and Power Systems Planning at Westinghouse Electric Corporation. Mr. Serfass holds B.S. and M.E. degrees in Electrical Engineering from Cornell University, New York.
In addition to establishing and managing jointly funded corporations to develop markets for new energy technologies and products, Mr. Serfass has experience in utility management and consulting, the new technologies of electric energy service companies, public policy, and utility regulation.
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80338o.eps
Mrs. BIGGERT. And, finally, we will hear from a constituent of mine, Mr. Lee Camara, who lives in Clarendon Hills, and who is Vice President of H2Fuels, corporated in Mt. Prospect. Mr. Camara has been in the fuel cell business for the better part of 30 years, and so we thank you for sharing your perspective with us today. You may begin.
STATEMENT OF ELIAS (LEE) H. CAMARA, VICE PRESIDENT H2FUEL, LLC
Mr. CAMARA. Thank you very much, Madam Chair and Representative Woolsey. I would like to start by saying thank you and to say a few things about our company H2Fuels. H2Fuels is a very young company; it was established about a year and a half ago, with the simple mandate to develop and commercialize a new breakthrough technology for the cost-effective production of clean hydrogen for fuel cell applications. H2Fuel is jointly owned by Avista Lab and Unitel Fuel Technologies. We are incorporated in the State of Washington. However, our principle office is located in Mt. Prospect, Illinois, a location that puts us within easy proximity of our primary R&D partner and resource associate, Argonne National Laboratory.
Most of us in the energy industry have accepted the fact that the fuel cells will be an integral part of our energy equation. It is the most sensible, efficient and environmentally acceptable solution that we have on our plate. However, every fuel cell system needs a source of hydrogen. Even though hydrogen is the most plentiful element on our planet, right now our best option of making this gas is to reform a readily available hydrocarbon, such as natural gas, diesel, propane, ethanol, or gasoline, to name a few.
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The next point is the real clincher, for us it is what sets H2Fuel apart from the rest of the field. Almost every infrastructure fuel contains some sulfur, either naturally occurring, or added by man. However, fuel cells do not like sulfur, so what's the answer? The current practice, which will never fly in the long run, is to take the sulfur out of the feedstock before you make the hydrogen-rich mixture. Our H2Fuel approach is radically different, we welcome and invite a sulfur containing feedstock, we convert all the sulfur into HS, and then we use a special membrane to get rid of all the HS before we deliver the gas stream to the process system.
I am pleased to report that H2Fuel has already delivered its first hydrogen generation research system to a major original equipment manufacturer fuel cell. A second system is being readied and we hope to conclude two or more similar contracts by the end of this year. Our ongoing H2Fuel tactical program is highlighted by these three agenda items. We have an excellent Cooperative Research and Development Agreement with Argonne National Laboratory, wherein we can take advantage of their advanced fuel processing technology and know-how that was originally developed under the auspices of the U.S.
As I mentioned earlier, H2Fuel has elected to live with sulfur. The big fork in the road offers two choices: to purify the feedstock, however, this approach is cumbersome, expensive, and easier said than done; or b) accept the sulfur, live with it, use a sulfur tolerant process/reactor, and, finally, some other magic to get rid of the HS before delivery to the fuel system.
In the context of point two above, H2Fuel has entered into a 3-year program with the University of Kentucky to develop new polymeric membranes that can chemically strip out hydrogen sulfide and carbon dioxide components from a given gas mixture. One year into the program, this effort has been extremely successful. A proof-of-concept unit is expected to be operational by the end of July 2002.
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I would like to take this opportunity to quickly review our relationship with Argonne. Over and above all of the experimental work that has been pursued by our friends at Argonne to enable us to proceed with our commercial plans. Please note that Argonne scientists are in collaboration with H2Fuel engineers, have already authored and filed three patents, with several more forthcoming.
As a sideline, H2Fuel and ANL recently joined hands with ArvinMeritor, a major player in the automotive components industry, to submit a three-party proposal in response to a major U.S. DOE solicitation.
We at H2Fuel, supported by what is being done for us at ANL and the University of Kentucky, we firmly believe that we are on the right track to create a product that will, one, serve all fuel cell market segments, going all the way from stationary to transportation applications; cover a variety of sizes from 0.5 kilowatts to 250 kilowatts; and, accept and handle sulfur-containing infrastructure hydrocarbon feedstocks.
On the technical front, we are primarily going to concentrate on feedback, focus and fine tuning through the end of this year. Our activities on the commercial side of the equation are also quite engaging. We are seeking to conclude an agreement with ArvinMeritor, whereby this company will become the manufacturer of record of our H2Fuel hydrogen generators. Likewise, we are dealing with a major membrane company near San Diego, California, that is likely to take over the engineering, manufacturing and supply of our HS and CO removal modules. Finally, H2Fuel is soon likely to announce the kick-off of a R&D program in collaboration with a major name in the automotive industry.
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To date, H2Fuel has not received any federal or state support. Everything that we have done, including all the work at ANL and the University of Kentucky, has been supported by our own private dollars.
Preaching to the choir is not an easy task. However, if I must be forced to give you and your colleagues some meaningful suggestions about the subject area, let me summarize as follows; one, please continue to support tax benefits and subsidies that help the development and commercialization of fuel cell systems. This decision may not make obvious sense today, however, future generations will thank you.
Two, please try to give us a more consistent energy policy, both in terms of what you see as the future of our country and the world, plus some guidance as to which directions you want us to follow.
Three, please give us the proper signals that will enable our financial investment community to either, a) once again jump back on our fuel cell band-wagon, or b) explore other energy opportunities.
And four, please do not give us whiplash every couple of years.
Finally, and this is my most significant observation and request, please develop legislation that will force government to deploy fuel cells for energy applications in its buildings, centers, military bases, and naval ships, just to name a few. Thank you very much.
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Mrs. BIGGERT. Thank you.
[The prepared statement of Mr. Camara follows:]
PREPARED STATEMENT OF ELIAS H. CAMARA
Honorable Judy Biggert, Honorable Lynn Woolsey and Esteemed Members of the Committee on Science:
My name is Elias H. Camara. Many of you in the fuel cell industry know me as Lee, and I am currently the Vice President of H2Fuel, LLC. I would like to start by thanking all of you for giving me the opportunity to address this meeting, so that I can tell you a little bit about H2Fuel, who we are, what we are doing, and what we are trying to achieve.
H2fueI is a very young company, established about 1b years ago, with a simple mandate—to develop and commercialize a new breakthrough technology for the cost-effective production of clean hydrogen for fuel cell applications. H2Fuel is jointly owned by Avista Labs and Unitel Fuel Technologies. While we are incorporated in the state of Washington, our principal offices are maintained in Mt. Prospect, Illinois, a location that puts us within easy proximity of our primary R&D partner and resource associate, Argonne National Laboratory (ANL).
Most of us in the energy industry have accepted the fact that the fuel cell will be an integral part of our 21st century equation. It is the most sensible, efficient and environmentally acceptable solution that we have on our plate. However, every fuel cell system needs a source of hydrogen. Even though hydrogen is the most plentiful element on our planet, right now our ''best'' option of making this gas is to reform a readily available hydrocarbon—natural gas, diesel, propane, ethanol, or gasoline, to name a few.
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The next point is the real clincher, and it's what sets H2Fuel apart from the rest of the field. Almost every infrastructure fuel contains some sulfur, either naturally occurring, or added by man. However, fuels cells do not like sulfur, so what's the answer? The current practice, which will never fly in the long run, is to take the sulfur out of the feedstock before you make the hydrogen-rich reformate mixture. Our H2Fuel approach is radically different—we welcome and invite a sulfur containing feedstock, we convert all the sulfur into HS, but we use a special membrane to get rid of all the HS before we deliver the gas stream to the receiving end of your fuel cell system.
I am pleased to report that H2Fuel has already delivered its first hydrogen generation research system, including a full range of analytical and support equipment, to a major original equipment manufacturer. A second system is being readied for shipment in August 2002. We hope to conclude two more similar contracts by the end of this year.
Our ongoing H2Fuel tactical program is highlighted by the following three (3) agenda items:
1. We have an excellent Cooperative Research & Development Agreement (CRADA) with Argonne National Laboratory (ANL), wherein we can take advantage of their advanced fuel processing technology and know-how that was originally developed under the auspices of the U.S. Department of Energy (USDOE). This arrangement literally creates a new R&D center for H2Fuel, including a full blown facility at ANL, including its equipment and infrastructure, but most importantly its highly energized scientists and technicians.
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2. As I mentioned earlier, H2Fuel has elected to live with sulfur. One way or another, sulfur is a bothersome component in our infrastructure fuel spectrum. The big fork in the road offers two choices: a) purify the feedstock, and/or pre-treat it, so that you get rid of all the sulfur before the reforming sequence; however, this approach is cumbersome, expensive, and easier said than done, or b) accept the sulfur, live with it, use a sulfur tolerant process/reactor, and finally some other magic to get rid of the HS before delivery of the mixture to the fuel cell system.
3. In the context of point 2 above, H2Fuel has entered into a 3-year program with the University of Kentucky to develop new polymeric membranes that can chemically strip out hydrogen sulfide and carbon dioxide components from a given gas mixture. One year into the program, this effort has been very successful. A proof-of-concept unit is expected to be operational by the end of July 2002.
I would like to take this opportunity to quickly review H2Fuel's relationship with ANL. Needless to say, we believe that our CRADA with ANL has been eminently beneficial to us. Over and above all of the experimental work that has been diligently pursued by our friends at ANL to enable us to proceed with our commercial plans, please note that ANL scientists, in collaboration with H2Fuel engineers, have already authored and filed three patents, with several more forthcoming.
As a sideline, kindly note that H2Fuel and ANL recently joined hands with ArvinMeritor, a major player in the automotive components industry, to submit a three-party proposal in response to a major USDOE solicitation. The situation is as follows: H2Fuel knows ANL, H2Fuel also separately knows ArvinMeritor, so the end result was a three-way team that includes H2Fuel, ANL and ArvinMeritor.
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We at H2Fuel, supported by what is being done for us at ANL and the University of Kentucky, firmly believe that we are on the right track to create a product that will:
Serve all fuel cell market segments, going all the way from stationary to transportation applications.
Cover a variety of size ranges, anywhere from 0.5 Kwe to 250 Kwe.
Accept and handle sulfur-containing infrastructure hydrocarbon feedstocks.
As a sidebar, I would like to mention that H2Fuel's proposed technology can also be readily applied to improve the capital and operational cost efficiency of phosphoric acid, alkaline, molten carbonate and solid oxide fuel cell power plants.
On the technical front, we are primarily going to concentrate on feedback, focus and fine tuning through the end of this year. In the meantime, we intend to carefully ramp up our membrane technology from 80C to 150–160C, with the full intention of taking this number up to 200–250C next year.
Our activities on the commercial side of the equation are also quite engaging. We are seeking to conclude an agreement with ArvinMeritor, whereby this company will become the manufacturer of record of our H2Fuel hydrogen generators. Likewise, we are dealing with a major membrane company near San Diego that is likely to take over the engineering, manufacturing and supply of our HS and CO removal modules. Finally, H2Fuel is soon likely to announce the kick-off of a R&D program in collaboration with a major name in the automobile industry, perhaps giving some closure to the consolidation of camps that is quietly taking place in the background.
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No question about it, H2Fuel is a late-comer into the fuel cell hydrogen business. Yes, we are all aware of the recent road-kill, but I'm afraid that there is more to come. We sincerely believe that at the end of the day, the gold medal will go to the player that elects to live with sulfur. This is why H2Fuel hopes to come out ahead.
To date, H2Fuel has not received any federal or state support. Everything that we have done, including all the work at ANL and the University of Kentucky, has been supported by our own private dollars.
By the way, just as a collateral insight comment, two of the biggest dot.com companies, now nearly defunct, have been capitalized at a total amount that exceeds all of the public and private support that has been given to the fuel cell industry over the last 30 years. Yet we all know that low cost, reliable high quality power will be the cornerstone of the international information technology industry.
Preaching to the choir is not any easy task. However, if I must be forced to give you and your colleagues some meaningful suggestions about the subject area, kindly let me summarize as follows:
1. Please continue to support tax benefits and subsidies that help the development and commercialization of fuel cell systems. This decision may not make obvious sense today, but future generations will thank you.
2. Please try to give us a more consistent energy policy, both in terms of what you see as the future of our country and the world, plus some guidance as to which directions you want us to follow.
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3. Please give us the appropriate signals that will enable our financial investment community to either a) once again jump back on our fuel cell band-wagon, or b) explore other energy opportunities.
4. Please do not give us whiplash every couple of years!!
Finally, and this is my most significant observation and request, please develop legislation that will force our Federal Government to deploy fuel cells for energy applications in its buildings, centers, military bases, and naval ships, to name a few opportunities.
Once again, thank you for giving me this opportunity to spend some time with you. If you need additional information about anything that I have said, please contact me privately at 847–297–2265.
Discussion
Mrs. BIGGERT. We will now proceed to the questions and I will for five minutes will ask and then my colleague Ms. Woolsey.
Hydrogen Safety
Just generally when people, the average person thinks of hydrogen, the first thing I think that comes to people's mind is the dirigible, the Hindenburg, so I guess my question is, and I think that raises serious questions about safety, safety with using hydrogen. Perhaps, Dr. Grunder you would like to comment on that first.
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Mr. GRUNDER. I would be delighted, Madam Chair, and for my colleagues. However, roughly 30 years ago we checked the safety of hydrogen verse gasoline. And hydrogen is by far safer. If handled, properly, we have gotten used to dealing with gasoline, stopped smoking gas stations and we are not spilling it all over the place. And so we have a culture in which gasoline has been accepted. But if you use the same culture with hydrogen, it is actually safer.
Mrs. BIGGERT. Mr. Uihlein, would you like to comment?
Mr. UIHLEIN. Yes, actually, I knew the Hindenburg has always been associated with hydrogen. The real fact per the Hindenburg incident was that that particular dirigible was covered in fabric that was painted with a very flammable paint, including some components that are used in rocket fuel. It was actually a combination of static electricity and a flammable surface that caused the rather spectacular result. That's not to say that the hydrogen didn't burn. But realistically, there is every reason to believe that the same thing would have happened if that blimp had been filled with helium in that particular incident.
Mrs. BIGGERT. I'm glad that that is all cleared up, that myth. Mr. Serfass, do you have any comments on that also?
Mr. SERFASS. No, I think the story had been told by the last two comments. There is information on our Web site formulated with NASA and the space center has proven factually the information was competitive, that hydrogen was not the cause. In fact, I personally have this image of petroleum and other similar products that can be in a liquid form, also very dangerous. I think the properties of hydrogen are clearly different. They require different sensing and safety procedures. But they may well be as safe or safer as any other fuel in the long-term.
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Fuel for Hydrogen Vehicles
Mrs. BIGGERT. Then, Mr. Culver, will we ever get to the point where we will have just pure hydrogen in our so-called gas tank in a car?
Mr. CULVER. I think that is the ultimate solution, and the ultimate promise of hydrogen is that you're running direct on hydrogen. The most common way we store hydrogen on the vehicles we have, on the experimental vehicles today, is a compressed gas. And we have lots of experience with that. We have literally tens of thousands of vehicles running around, running on natural gas that use a very similar kind of storage system and they have excellent safety records. So, I don't think the customers, from a storage point of view, have to be concerned too much about the safety.
I do agree with you that we need a lot of outreach in changing people's perception. I mean, we know, this panel will all agree that hydrogen is safer. But I totally agree with you that we need a tremendous outreach to convince the average customer that it's safe as gasoline or even safer.
Mrs. BIGGERT. I suppose once that we have hydrogen stations around the world, people will know that it is to be treated just like gas.
Mr. CULVER. The partnership that we are a part of in California, California fuel cell partnership out in Sacramento. One of their major goals is to demonstrate hydrogen fueling and refueling and showing the public that it is a safe fuel and you don't have to worry about having a hydrogen station in your backyard.
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Use of Reformers
Mrs. BIGGERT. Well, right now we have the reformers that Argonne uses which limit the—but you think we can get beyond the use of reformers, too?
Mr. UIHLEIN. I agree with Dr. Grunder. But reformers are an interim step to help us get fuel cell vehicles on the road. Ultimately, the scalability of a reformer probably makes sense if you can put it in a larger facility, either a central station or a refinery. In the long range, it doesn't make economic or efficiency sense to have one of those on every vehicle. But it's good technology to demonstrate fuel cells and also that technology can be scalable to gas station size or small city kind of refineries for conversion of other fuels.
Mrs. BIGGERT. Okay, with keeping with the five minute limit I will now turn over to Ms. Woolsey.
Ms. WOOLSEY. And I have to say, Madam Chairman, you were right on time. I think we are all running in 5-minute increments today. Earlier this year the Energy Subcommittee, where Ross Bartlett from Maryland is the Chair and I sit as the ranking Democrat, I had a hearing on the future of the Department of Energy's Automotive R&D program, in particular we were talking about the recently announced FreedomCAR initiative. And we all know and we heard the goal to replace the internal combustion engine with hydrogen fuel cells. But I didn't feel like we completed the discussion because I think we have to have experts like yourselves tell us what other benchmarks we should be measuring. Because it is not going to happen overnight, but we know this is government and it can go on and on.
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Identifying Benchmarks
So, let's start with you Mr. Culver, tell us what are the benchmarks we should be looking for to see that we are going in the right direction. We are using Federal funds in the right way and we are going to get where we need to be as soon as possible.
Mr. CULVER. I think Federal funds have contributed tremendously to the progress we made in the last decade. And there is a big element going forward in the future in addition to the vehicle we have been developing infrastructure, as my colleague mentioned, we have this chicken and egg problem with Federal companies or the energy providers not willing to put a hydrogen station out on the corner here until there is hydrogen vehicles and the vehicle manufactures not wanting to supply vehicles until the customers can get them refueled. I think the government through sponsorship of pleads and demonstrations, perhaps at airports, military bases or other local areas can help spur that development of the infrastructure, and I think that is going to be very important as we go forward.
I think both the supply and the vehicle side of the thing will come together in those demonstrations and I think the government really can play a big role in breaking that chicken and egg syndrome.
Ensuring Safety and Environmental Possibilities
Ms. WOOLSEY. And part of the measurement as anybody else will speak to this, maybe Dr. Grunder, that as we go forward we ensure the safety and the environmental possibilities.
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Mr. GRUNDER. Yes, as I said, with the hydrogen and the environmental situation as to how safe hydrogen is, it is very much gratifying. As safety is most at the least important and a definition of the safety codes. On the FreedomCAR it is indeed a very difficult interaction between laboratories and industry. And if you would ask me for a milestone and the metrics, we need in a sector of the industry to get something substantial going. Something which is not only for demonstration but something which is actually running as my colleagues provide us the fuel station and somebody is going to provide, you know a truck, something of this nature.
Military would be great to where we can test this. And that is really the basic stand for metric and now there is a lot of discussion needed, I'm afraid you won't get an answer to the discussion, because it falls right into their, ''what is the proper cycle of hole and what is the proper role?'' and I thank you for bringing it up, because I think if we were given an opportunity, we would actually—could very much come forward with a sensible, sensible proposal we have actually, it is in writing.
Ms. WOOLSEY. Anybody else? I have 55 seconds.
Mr. BORYS. I would just like to comment that the chicken and egg issue does exist and a good parallel for deployment is the approach taken with tax capacity and the money needed. Where dominantly deployment now is through fleet use with central stations. The chicken and egg issue is only a small part of the overall problem that needs to be addressed. The fact, is right now the single biggest problem is the cost of manufacturing fuel cell components and fuel cells. There is work right now trying to get the cost of fuel cell systems down to the thousand dollar kilowatt level and I think the internal combustion engine is running on $50 a kilowatt?
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Mr. CULVER. A little less.
Mr. BORYS. A little less than $50 a kilowatt. So when you look at those kinds of differences in cost, even if fueling station issue is solid and deployed, a significant amount of rural heat can reduce the cost fuel cell subsystems.
Mrs. BIGGERT. Thank you.
Ms. WOOLSEY. I went over my time.
Sources of Hydrogen
Mrs. BIGGERT. That's all right. You know when we talk about the hydrogen, most of what I read indicates that initially hydrogen will be produced from gasoline and particularly natural gas, and those are not renewable sources of energy and it can come from other sources, the biomass or the landfill and methane and, we love in Illinois, ethanol. So this is—What's the reason for that, is it because of technical or economic infrastructure related or all of the above, maybe. Mr. Uihlein.
Mr. UIHLEIN. One of the beauties of hydrogen is that you can make it from anything. So once you get to the hydrogen economy, it doesn't matter what you use and you can switch it over time. As of right now, the most economic way to manufacture hydrogen is from natural gas. Because of the difficulty in storing hydrogen and as well as storing natural gas for vehicles, things like gasoline become more attractive to get around some of the storage issues to provide the transition to hydrogen fuel cells and then eventually to hydrogen produced from renewables. And all this buys time for renewables to become more cost effective so then eventually you can produce hydrogen from renewable sources.
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Mrs. BIGGERT. But then, that doesn't really reduce our dependence on—.
Mr. UIHLEIN. In the short-term, it does to a certain extent because you are shifting part of the transportation sector away from crude oil and on to natural gas so at least you're diversifying your sources of transportation fuels, and in the longer term the ability to make hydrogen from pretty much anything gives you the ultimate in fuel diversity, to try to help energy security.
Mrs. BIGGERT. And even converting those unrenewables will, like say natural gas, that it will cut the amount that is needed to run a fuel cell?
Mr. UIHLEIN. Well, the other big thing about fuel cells in general is that they are very, very efficient. And, so the increase in efficiency will cut down our overall energy consumption and then you have the fuel diversity added onto that.
Deriving Hydrogen From Renewable vs. Nonrenewable Sources
Mrs. BIGGERT. Well, maybe, Mr. Serfass, is there enough of today's research used for deriving hydrogen from renewable sources versus nonrenewables; or does it make any difference?
Mr. SERFASS. Certainly, since our vision here, among many others, is for hydrogen produced renewably. I think there are a couple areas of research. One is the very long-term breakthrough technologies and well beyond the next decade or so and how to be in other laboratory technologies that are being investigated with government funding for hydrogen. But in the more near term, you have minimum available today, protocol tags available still, with a little bit higher cost than we like, and you have the electrolysis that converts that electricity to hydrogen for which additionally research can improve the efficiency of the electrolysis equipment would also be helpful. Other research, of course, and storage of fuel cells is going to come.
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Mrs. BIGGERT. Mr. Borys.
Mr. BORYS. I would just like to add two points. One is need for a bridge fuel. And most people think natural gas is the appropriate bridge fuel. There is legislation from the House and the Senate to fund unconventional, unshort exploration and production as well as offshore that will add roughly five GCF, about one-quarter total current natural gas usage for energy supply will be purity. That kind of addition is necessary to ensure stable low-cost hydrogen natural gas.
Longer term renewables is a valuable source that several GTI develop technologies new gas that is now being used in a demo project with Tennessee Valley Authority, TVA, in terms of synthetic gas production for us for electrical generation. It has well available technology that can produce clean hydrogen from all things, from coal, as again, another long-term process. So there are both bridge fuels and long-term fuel renewables are, of course, a very appropriate source of hydrogen in the long-term.
Mrs. BIGGERT. Thank you. Ms. Woolsey.
Downsides to Investing in Hydrogen
Ms. WOOLSEY. Well, you led me right into another question. In the matter besides the big bang that people are afraid of with hydrogen because of past myths. What are the other downsides that we are going to run into as we are going forward with investing in hydrogen? And I think you led me into one of the answers, and that's in order to have to bridge fuel, we have to start more gas exploration off the coast, you know, where I live, it ain't going to happen. So now, what are we going to do? What are the other downsides and how are we going to get beyond, you know what is going to be such a fight that we're not, it's just going to stop the whole thing, so what? I will start with you, Mr. Borys.
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Mr. BORYS. Nowhere in my previous remark today were mentioned opening up new lands for exploration production. You know, basically, as for gas production to date, propane can prove this, larger pockets, you know, and more gas has been found and the technology to accurately locate those markets we can be able to obtain, reach the needs for this market. So, without increasing the amount of land, under development, if technology is developed, natural gas can continue to be a very important part for our overall energy supply.
Ms. WOOLSEY. Well, can I just interrupt and ask you a question on that? Is there a nexus where it would be better use of our finances to be going forward without the bridge than to redigging and investing in something that—.
Mr. BORYS. In terms of percentages of production from various fuels, there is a promise for everyone to a point with solar and wind as possibility, work in those areas should continue. I think in terms of a more nearer term, alternative source biomass represents the good alternative, some of those technologies are near to commercialization, but there is no one that is going to solve our national energy supply issue. All that these technologies, all of these sources, will play an important role in the various segments and right now natural gas is plentiful and the cleanest of the fuels that we have available to us.
Ms. WOOLSEY. But given that fossil fuels are fine, and so is all our funding and that will put us where it is going to go the longest stretch, and Mr. Uihlein?
Mr. UIHLEIN. Well, I guess part of the question dealt with whether there were any show stoppers that could completely derail hydrogen as a fuel. And I think I'm fairly confident that I speak for everybody, but the consensus is that there are certainly technological challenges that need to be overcome in order to make this work. Right now it is not economic. But I don't think there is anybody who feels that there are show stoppers and that anybody that has identified at this point that can't be overcome as we work on this—It is just a question of timing and how long it is going to take to overcome some of the obstacles.
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Ms. WOOLSEY. Does anybody else want to respond to that?
Mr. GRUNDER. Yes, I would.
Ms. WOOLSEY. Yes, Dr. Grunder.
Mr. GRUNDER. We can't get around that hydrogen is a carrier of energy as is electricity. And as have been mentioned by a number, and therefore, it goes into the overall energy supply equation as has been again stated. The fuel cell membranes is remarkable efficiency. Otherwise, we can argue a few percent, otherwise of internal combustion and it can be transported, and it can be made safe, therefore, you run into a factor of pure. And also the vehicle traffic is going to go up a factor or two and there, bingo, goes the advantage. And you will find that more and more, that we are just trying to try new technology in order to stay even. And I don't need to tell you, Congresswoman Woolsey, that we are a minority on this planet.
Preventing Carbon From Being Emitted as a Greenhouse Gas
Ms. WOOLSEY. You are right.
Mrs. BIGGERT. Okay. Thank you. Nobody has mentioned anything about carbon, is it like with coal and you wanted to get hydrogen, you would have carbon involved which you would have to get rid of as far as some of the other products or produce carbon dioxide even from natural gas or gasoline and have—What can be done to prevent that carbon from being emitted as a greenhouse gas? Who would like to answer, Mr. Uihlein.
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Mr. UIHLEIN. Sure. I guess first and foremost again because of efficiency improvement with the fuel cell vehicle, anything that reduces the overall energy consumption will reduce the amount of carbon that's available to be put into the atmosphere. And so even things like onboard reformers for gasoline in the initial phases will reduce CO2 emissions.
As we move into an actual hydrogen infrastructure, if you produce your hydrogen even from fossil fuels at centralized plants, there are technologies that we are working on to sequester what they do make, called carbon sequestration, that can isolate the CO, recover it, and isolate it in underground formations.
Mrs. BIGGERT. So you will be burying it?
Mr. UIHLEIN. And actually you can get to the point where it's the equivalent of a renewable at least in terms of not producing any additional CO emissions. Now, if you go to some renewable technologies you can actually consume CO in growing whatever you're using to produce the hydrogen and eventually which can even improve on that. But we can get down to approximately zero CO emissions, even using fossil fuels like natural gas or oil. You just have more CO to sequester.
Mrs. BIGGERT. Are you burying it or are you putting it down where natural gas might have been taken out of the ground?
Mr. UIHLEIN. Well, it is not exactly burying it. It is more injection into formations, a lot of which are going to be old reservoirs. There are other geologic formations that aren't necessarily, uhm, old reservoirs. The nice thing about reservoirs is, you've already got holes in the ground from where you were extracting the fossil fuels that you can use in reinjecting. There is also some potential for deep sea sequestration, there is an enormous capacity for CO at very great depths, but you have to get it there so it would be easier on land.
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Focusing on Stationary vs. Transportation Fuel Cells
Mrs. BIGGERT. Thank you. Mr. Camara, it seems like DOE has made the transportation application of fuel cell technology a priority through the FreedomCAR initiative. Do you think that the Federal Government is doing enough with the stationary fuel cells or is it focusing too much on the transportation applications?
Mr. CAMARA. Well, you know, I would not, you know, I said when you believe that, you know, the transportation is going to be the biggest market of them all for fuel cells. However, before we get there, fuel cells, there is a way to break that cycle barrier that you were talking about is actually the application for the stationary markets. And the thing about transportation is sexy, this is what has brought fuel cells into the night light. Which is great, I think years ago most of the work does however the stationary market is really the early entrance waiting for fuel cells; and you know the reason some pay attention to fuel cells for stationary application, but only the same type of fuel cells is going to be reusing multiple cells, but also their own gases, phosphoric acid, alkaline, molten carbonate and solid oxide, all those fuel cells are there today and they need support, they need demonstrations and they need the government support to enter the market.
Structural Changes for Hydrogen Use
Mrs. BIGGERT. I live in what's been called the tear-down capital of the world. If we are going to be using hydrogen in homes, will there have to be a complete remake of all of the what goes into to provide heat to the house, or will they be able to—do you foresee being able to just to use what now pipes our heat through the radiators and everything, or is it best if you're building a new house to start planning for that now as far as how you are going to be able to use it?
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Mr. CAMARA. I think that a fuel cell, you know, with using natural gas, which is already there, and for example, you know, fuel cell processors are already in the developing. And incorporated into fuel cell power planting and you won't be able to meet the needs, so they pumped their own and at the same time they are to provide home working and the heat requirements. And, yes, the system that is there in place can be utilized.
Mrs. BIGGERT. I happen to have steam heat, so maybe I'm all set and that's an old, old, system. Mr. Borys, do you have anything to say to that?
Mr. BORYS. I want to just say that the best application is an integrated building energy system which could be built from scratch. But early deployment may be made in some very unusual areas, namely where they are either overloaded or the cost of electricity is very high and areas, for example, the East Coast and New York tend to meet that type of criteria. But I think the initial deployment on a large scale will likely be new construction, integrated energy systems and many areas of new development such as that.
Mrs. BIGGERT. Ms. Woolsey.
Ms. WOOLSEY. I'm realizing that I'm just about over my head here with some of the answers, so I'm going to ask a question another way. I heat my home with natural gas and my water and my dryer and I cook with gas. Uhm, will there in the future be a way for me to be able to convert just that using the natural—or do I have to undue that whole system and do a new one?
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Mrs. BIGGERT. I like it even better again.
Mr. BORYS. The new fuel cell system is that the natural gas is consumed by the fuel cell, produces electricity for the home, but the remaining energy and the natural gas appears as heat and it could then be used for hot water or other applications in the home. And that's why when I refer to total energy, total building energy systems, fuel cells that are integrated in the design of the home, do for the safety a much more efficient system by allowing recovery of all of the energy, or nearly all of the energy for natural gas.
Mr. CAMARA. You want to talk about CO production and that is a way of doing it. The hydrogen efficiency we are talking about eight percent, meaning total energy recovery from a natural gas. That is—that reduces carbon dioxide. And to your home in the current space.
Labor Issues With Hydrogen Vehicles
Ms. WOOLSEY. Mr. Culver, I want to switch a little bit and talk about workers. First of all, does the USCAR have support of labor groups? And are we looking, at in developing this technology, looking at safety for the workers and putting together standards?
Mr. CULVER. To answer the first part of your question, absolutely. We work very closely with the United Auto Workers and keeping them abreast of the research programs that are going underway and they are concerned about what does it mean if we are going to start fueling our vehicles and our plants with hydrogen and the safety applications to the workers.
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We have demonstrated in small facilities, and I think we need to scale it up to larger facilities. I think everybody is in agreement that it can be just as safe as putting gasoline in vehicles in assembly plants and it is essentially a similar kind of process.
Storage on board the vehicle is an area that we are doing a lot of research. In both from safety point of view but also from a customer acceptability point of view because compressed gas storage is going to take roughly three to four times amount of volume to get the same kind of energy in the vehicle or give you the same kind of range that you are accustomed to. So, I think we are working on both of those with the union.
Mr. UIHLEIN. And, actually, one other thing, kind of downstream from the production, and the California Fuel Cell Partnership is currently doing a study on things like automotive repair shops. And what you need to do to those to make them safe to work on these vehicles and that includes architects and the like, to try to really settle that issue too.
Workforce Preparedness for a Hydrogen Economy
Ms. WOOLSEY. And training and teaching. And speaking of training, and education, let's talk about your workforce. Engineers and scientists are we educating enough scientists in this country and engineers to meet your needs, not just for fuel cells but for our environmental future? Let's start with you, Dr. Grunder.
Mr. GRUNDER. Oh, thank you. The answer is an obvious, no.
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Ms. WOOLSEY. Do we need more women in the workforce.
Mr. GRUNDER. The answer is an obvious, yes. And perhaps, it goes hand in hand. We went through a period where engineering was not a high prestige job, and we do need these people. From the technician to the scientists.
Mr. BORYS. I did what I could on my part. I have three daughters, one of which is an electrical engineer, one an architect and one biologist.
Ms. WOOLSEY. There you are. Thank you very much.
Mr. SERFASS. Yes, recently we had an exercise to produce a multi-faceted class of the future hydrogen and had a work group on education. One of the conclusions, that we need greater college level degree education for hydrogen-related technology and technical, but basically we need to cooperate with high school, and the series curricular too, because at that age we gain the interest of the younger generation and better ways to—it is going to be implementing this hydrogen transition and our curriculum and a lot more can be done to promote science education in the schools.
Ms. WOOLSEY. Well, thank you for leading me in, right in to talk about the fact that it is in the fourth grade that young girls stop being interested in science, math and technology for reasons that we haven't addressed and that's one percent of our workforce and we have to have a choice, at least like to be like your daughters, Mr. Borys. Thank you very much.
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Mrs. BIGGERT. I think that we too, as Members of Congress when we go into schools, particularly talk about the need for scientists and mathematicians and really urge the young women or the young girls at that time to pursue those kinds of careers, as we really need them.
Use of Fuel Cells in Cold Climates
I don't mean for this question to be technical, but maybe I can get not a too technical answer. But if fuel cells produce water and moisture and steam, how will they operate effectively in winter climates like Chicago? I bought a car one time that was English and they had put the spark plugs right in front of the radiator, so every time that it snowed, the water came into the spark plugs and my car wouldn't start; and I think we kept that for about three months and that was the end of it. So, will this have any effect? And whoever wants to answer that question. Mr. Culver.
Mr. CULVER. One of the components that keeps the fuel cell running is ultra pure water circulating in the system and ultra pure water freezes in 32 degrees. And like you, I come from a climate where we have plenty of days that that would be a problem. There is research going on to ways to keep the fuel cell at a temperature where the water would not freeze.
One of them is using the power from the hydrogen on board to create heat and that would constantly keep the water circulating in temperature. Certainly that would be a problem over a very long time and that may be other solutions as well. But it is an issue, but I don't think it's a show stopper. It is something that we are working on and spending resources, on but I don't believe it is a show stopper.
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Mrs. BIGGERT. Thank you.
Mr. BORYS. I would just like to add the need for cascading solution for problems. For example, this issue with water and fuel cells, one of the areas the Department of Energy is pursuing is high temperature membranes for the PM fuel cells and would operate above, basically these are waterless membranes that do not have liquid HO in the cell.
Similarly, when we talked before about sequestration, again there is work on dealing with carpenter issues, work on alternative cycles, hydrogen oxygen combustion for turbulence that would prevent, that would allow you to deal with carbon upstream, but not having separate CO in the exhaust systems and the separate issue here. I agree there are no show stoppers as long as you can address, but there is going to be a large portfolio technology development that the department participates in.
Mrs. BIGGERT. Thank you. Then, Mr. Camara, I should have asked you this before, but this kind of leads in from that question with the CO, you mentioned in your testimony that H2Fuel is working on a technology and you called them removal modules to remove the sulfur and carbon dioxide from whatever, and you used the word ''feedstock?''
Mr. CAMARA. That's correct.
Removal of Sulfur
Mrs. BIGGERT. That means any type of like, could be natural gas or whatever or ethanol. What happens to the sulfur after you remove that?
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Mr. CAMARA. Well, it is removed in the form of hydrogen sulfite. And after that then the fuel cell plant—the fuel cell plant, you know, it goes through a combustor that will convert the hydrogen sulfite to—.
Mrs. BIGGERT. HS?
Mr. CAMARA. SO, which is what is done. It is not going to be easy for any other producer.
Mrs. BIGGERT. What about the carbon dioxide then, would you use this carbon for sequestration?
Mr. CAMARA. Well, you know, the sequestration can be associated with the car. Although it is very, very difficult to use because the compartments are so small. But, you know, larger applications can produce hydrogen refueling station. For example, gas at some point down there, you would find ways to refocus the CO. And we are working on still a weak point and hopefully by the end of next month.
Mrs. BIGGERT. Okay. Thank you. Ms. Woolsey.
Ms. WOOLSEY. Well, we are about to use up all of my want-to-be geekiness on this. How can we, we need to tie it up before I start showing how little I really know.
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Mrs. BIGGERT. I doubt that.
Federal/Private Partnerships
Ms. WOOLSEY. But you know, my concern is about this partnership business that the Federal Government and private industry. We can't come to terms with the auto industry on safe standards, it is just, er, they just aren't going to do it. Which says to me they're not that interested in our environment possibly. How are we going to meet the needs that your industry has for what the Federal Government provides if we don't get that same level partnership from private industry? I mean, so how are we doing this? Let's start with you Mr. Culver. It looks like you want to talk about that.
Mr. CULVER. Let me first assure you that the auto companies are interested about the environment. We are also interested in about satisfying or customer's expectation for what they want in vehicles. And such, the goals that we have agreed to in FreedomCAR all have what we call customer acceptance conquer performance metrics in it. In other words, ultimately this technology has to be transparent to the customer. The customer should be equally comfortable with hydrogen fuel cells as they are with the internal combustion engine. And that means in terms of cost, in terms of cost of ownership, in terms of cost of fuel, all the performance and utility that they expect out of their vehicles today. And that is why I think this partnership really brings that technology forward.
Competition With Foreign Markets
Ms. WOOLSEY. It is for sure that Japanese companies are going to make these fuel efficient cars. So, we are going to have competition also.
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Mr. CULVER. And I think that's appropriate. I think there are equal partnerships in Japan. There is a similar partnership in Europe, BuCAR, and all focused on developing and there is a consensus among the various reaches that hydrogen is the ultimate long-term beneficial for fuel that we really need to be focused on.
Difference Between NASA's Use of Hydrogen Fuel and Commercial Use
Ms. WOOLSEY. Well, if nobody wants to say anything great on this. I have one more little piece that is going on another direction. With our space program when it first—under President Kennedy, integrated circuits became common in our manufacture. Now, what is happening with our space program with the hydrogen fuel, they're using this technology. Why aren't we transferring it immediately here on earth? What can we do?
Mr. GRUNDER. When you go to the moon, you go a few times. You don't go ten thousand times a day. So, therefore, the efficiency is the most attractive place as secondary home. You want to get there. And so, you know, the rocket fuels have different criteria as most important and efficiency, whereas, the car, as my colleague said, customer acceptability of what they cost.
Mr. BORYS. I guess I would say that the technology is available, and if transferred, NASA is one area that has for what I think most people would consider cost is the logic kind of environment. And when I talked about no commercially fuel cells today, remember my words, I said no fuel cells can be economically produced to meet the reliability and the performance characteristics required by a large segment.
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So we do have the technology. It does work, we do demonstrations, companies can work on balanced plan generation of the power plant for motor vehicle into a residential system, cost of producing fewer is tolerable to do the system's engineering and the whole tanking. But when it comes down to large volume manufacture, cost is prohibitive. That's why I said in my earlier statements, we need to focus on the cost reduction of the fuel cells before the system can be reliable.
Role of Nuclear Power Plants in Hydrogen Production
Mrs. BIGGERT. Thank you. Thank you all for being a great panel. I just have two questions. And you might want to say something about what I'm going to ask. But if you don't, that's fine too, because I can't pass up the opportunity to ask this question to Dr. Grunder. Illinois relies on nuclear power to provide approximately 50 percent of our state's electricity. Could you explain to us how these nuclear power plants could also become a major source of hydrogen.
Mr. GRUNDER. It is of course—.
Mrs. BIGGERT. And nontechnical.
Mr. GRUNDER. Of course. Water is hydrogen conducted and the most effective way to justify this you need processing and, in fact, it is more effective than go wire electrolysis and right now I should say Argonne is working on getting the temperature to go down. And we are trying production 57 to 58 degrees, and one can get it further down. And obviously any large power plant, nuclear in particular because it has to tacking it off, but any power plant can, in its off hours, or is where the power demand is lower, produce hydrogen. You know, and that's what I mentioned before ultimately the production department goes into the overall supply equation and there are efficient and less efficient ways of doing it but, tacking to water at the right temperature, you know at the lowest possible temperature is very proper.
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Difference Between Basic and Applied Research
Mrs. BIGGERT. Thank you. Okay, then, Mr. Culver, there are those that don't understand the difference between basic and applied research might characterize the FreedomCAR initiative, as corporate welfare and we do hear this in Washington sometimes, and how do you respond to that criticism?
Mr. CULVER. We define our area a scope of research as what we call precompetitive research and that really focuses on the fundamental science. For example, on fuel cells, we're focusing on membrane development, on catalyst loading on the membrane not on vehicular applications. That is a very competitive part of our union.
I took my job, I asked the person that preceded how would I know the boundaries between precompetitive and competitive. And he said, ''don't worry you will find out.'' Well, that didn't make a difference. But when we were in a team meeting and all of a sudden the team starts sitting there with their arms folded and start not discussing, I know what they are thinking and one company. We cooperate in the lab and we compete in the marketplace. It is very easy as soon as this technology gets anywhere close to commercialization, one of our companies will run with it. But the fundamentals, when you really focus on the fundamentals, the basic science, and I think that's where the deal we really focus is an appropriate role for collaboration and precompetitive issues.
Mrs. BIGGERT. All right. Thank you. Would you like to ask anymore?
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Ms. WOOLSEY. No, I thank you again.
Mrs. BIGGERT. Okay, great. Well, thank you all so much. I really appreciate all that you have brought to our attention and I think all of you are obviously very knowledgeable and we will take this back to Washington and use it in our deliberations at the Science Committee and at the Subcommittee. We really appreciate you taking the time to do this, and I thank you. And I would also be remissed not to thank the staffers who are here, Tom Bennick, who is the majority staff, and Tom Hammond and Chris King, with the minority staff, we really appreciate all that you have done, and also we couldn't do this without Paul Dusaut, who is on my staff in Washington, D.C. So without further ado, this field hearing is adjourned.
[Whereupon, the Subcommittee was adjourned.]
(Footnote 1 return)
NEPD Group Report, pp. 6–10 and 6–11.
(Footnote 2 return)
Cost references based on CY 2001 dollar values. Where power (kW) targets are specified, those targets are to ensure that technology challenges that would occur in a range of light-duty vehicle types would have to be addressed.
(Footnote 3 return)
Does not include vehicle traction electronics.
(Footnote 4 return)
Includes fuel cell stack subsystem, fuel processor subsystem and auxiliaries; does not include fuel tank.
(Footnote 5 return)
Targets are for hydrogen dispensed to a vehicle assuming a reforming, compressing and dispensing system capable of dispensing 150 kilograms per day (assuming 60,000 SCF per day of NG is fed for reforming at the retail dispensing station) and servicing a fleet of 300 vehicles per day (assuming 0.5 kgs used in each vehicle per day). Targets are also based on several thousand stations, and possibly demonstrated on several hundred stations. Technologies may also include chemical hydrides such as sodium boro-hydride.
(Footnote 6 return)
Based on lower heating value of hydrogen; allows over 300-mile range.