Transcript Strength in Collaboration - SC Hydrogen & Fuel Cell
Hydrogen and Fuel Cells
Shannon Baxter-Clemmons, PhD Institute of Management Accountants January 19, 2011
SCHFCA Mission
The South Carolina Hydrogen and Fuel Cell Alliance is a public-private collaboration for cooperative and coordinated utilization of resources in the state used to advance the commercialization of hydrogen and fuel cell technologies.
I/U Cooperative Research Center for Fuel Cells
Partners
Current U.S. Economy is Unsustainable • • • U.S. is 5% of world population but consume 25% of energy produced in the world.
Over $700 billion are leaving this country to foreign nations every year. That's four times the cost of the Iraqi war, and it's killing our economy. It'll be the largest transfer of wealth in the history of mankind. T. Boone Pickens, 2008 Up to 30% of plant and animal species could face extinction by mid-century if global warming is left unchecked. The U.N. Intergovernmental Panel on Climate Change
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The Opportunity • • • • • • Current U.S. economy is unsustainable Hydrogen and fuel cells allow people to increase their standard of living in a sustainable manner SC is well positioned to be home to the hydrogen and fuel cell industry Fuel cell vehicle technology has advanced significantly in recent years Key issues currently being addressed include hydrogen storage, FC system costs & durability, and hydrogen infrastructure Pilot testing of vehicles is occurring in Japan, Europe, and the U.S. (esp. California, Michigan, and Washington, D.C.) under a U.S. DOE program
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Genesis for Economic Cluster
SC Research Institutions
• Savannah River National Laboratory • Applied Research Center: Hydrogen • University of South Carolina • NSF Industry/University Cooperative Research Center • Solid Oxide Fuel Cell Center of Excellence • South Carolina State University • James E. Clyburn Transportation Center • Clemson University • International Center for Automotive Research
April 2010
State of the States: Fuel Cells in America
Top 5 (alphabetical) California, Connecticut, New York, Ohio, and South Carolina. South Carolina is one of the Top 5 Fuel Cell States in the U.S.A.
Policy Development SC Hydrogen and Fuel Cell Permitting Law
Places the authority and responsibility of permitting hydrogen and fuel cells in SC in the jurisdiction of the Office of the State Fire Marshal. Benefits: 1. Increases public safety by creating a state expert at the Office of the State Fire Marshal 2. Creates a better business environment for the placement of hydrogen and fuel cell facilities 3. Raises South Carolina’s profile as a progressive place for hydrogen and fuel cells.
Industry
• Builds hybrid and all-electric city buses • Building a $68 million plant in Greenville • • Breaking ground in July 2010 Expected to generate over 1,000 jobs
Industry
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Build Hydrogen Fuel Cell generators and hydrogen fuel canisters for commercial uses
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Moved its manufacturing and administration to Columbia, creating over 1,000 jobs
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Partner with Midlands Tech—hired first 5 fuel cell technology graduates in 2010
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An SCLaunch! partner company
Hydrogen and Fuel Cells are part of a Portfolio of Transportation Energy Solutions
• • • • • • • Conservation Gasoline-electric hybrids Flex fuel Plug-in hybrids Neighborhood electric vehicles Hydrogen internal combustion engine Hydrogen fuel cell
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What is hydrogen?
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The most abundant element in the universe A universal fuel that can be used to power anything from cars to cell phones Non-toxic, lighter than air, colorless, odorless, tasteless
What is a fuel cell?
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An electrochemical device that combines hydrogen and oxygen to produce electricity, with water and heat as its by-product
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It is clean, quiet and highly efficient – two to three times more efficient than fuel burning
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Benefits of a Hydrogen Economy
• • •
Environmental and human health protection – No harmful or climate change emissions from the use of hydrogen Energy security – Hydrogen can be produced from local resources – – – Ability to couple stationary and transportation power Distributed network possible versus a centralized network Complements the intermittent nature of renewables Economic prosperity – Technology innovations – Sustainable fuel supply—predictable price structure
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Greenhouse Gas Emissions Lifecycles & Lifestyle Sources (Jones, Horvath & Kammen) 4.0
3.0
2.0
1.0
cheese
clothing & shoes appl/equip tools & supplies furniture
breads
motor vehicles
tree nuts fish pet food chicken eggs butter beef, pork, lamb milk and related products sausage & other prepared meats oats rice corn sweeteners flour & mill products
key
meat dairy fruit & veggies snack & other cereals & bakery drinks
goods
area of ciricle = % of annual average U.S. household consumption 0 500 1000 1500
gCO2 equivalent / $
2000 2500
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Change is Good!
( as long as it doesn’t affect my lifestyle ) 2000 U.S. Refrigerator Use vs. Time 1800 1600 1400 1200 1000 800 600 400 200 0 Refrigerator Size (cubic feet) Energy Use per Unit 1978 Cal Standard 1980 Cal Standard 1987 Cal Standard 15 1990 Federal Standard 1993 Federal Standard 2001 Federal Standard
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25 20 10 5 0
Economic Growth Takes Energy
Energy demand and GDP per capita (1980-2002) 400 US 350 300 Australia 250 200 Russia S. Korea UK France Japan 150 Greece 100 50 0 0 China Malaysia Mexico Brazil India Source: UN and DOE EIA, Slide courtesy of Steven E. Koonin, Chief Scientist, BP, plc 5,000 10,000 15,000 20,000 25,000
GDP per capita (PPP, $1995)
Ireland 30,000 35,000 PPP = Purchasing Power Parity - A rate of exchange that accounts for price differences across countries allowing international comparisons of real output and incomes.
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Peak Oil is Within Sight
Long-Term World Oil Supply Scenarios:
The Future Is Neither as Bleak or Rosy as Some Assert
, John H. Wood, Gary R. Long, David F. Morehouse http://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2004/worldoilsupply/oilsupply04.html
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Hydrogen makes Energy Security a Local Issue
• • • • Couples transportation and stationary energy “Firms up” renewable resources Allows for the use of indigenous fuel sources – Renewables, nuclear, fossil fuels Breaks traditional energy paradigms – – – Monopolies Fueling infrastructure Vehicle capabilities
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Economic Impacts
Effects of a Transition to a Hydrogen Economy on Employment in the US, National Academy of Science, July 2008 • • Assuming the Hydrogen Fuel Initiative is successful – 1 st HFCV sales in 2018 – 100% of new car sales in 2050 Net increase in employment of 361,000 jobs – Scientific and Technical Service sectors will increase – South, new automotive manufacturing center, will do well
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South Carolina & Hydrogen: A Natural Fit
• • • SC has a 50+ year history of hydrogen research A Harvard study identified hydrogen and fuel cells as a major economic focus for SC In 2006, the South Carolina Hydrogen and Fuel Cell Alliance was formed to coordinate and collaborate SC’s hydrogen initiatives with economic development goals in mind
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SC has many existing hydrogen strengths
• • • • • Multi-level governmental support of hydrogen Long-existing strength in research Emerging strengths in a variety of hydrogen markets Long-existing manufacturing expertise encourages economic development and private investment Coordination and collaboration through SCHFCA activities
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SC’s Unique Hydrogen Markets
• Focused on feasible near-term applications – Portable applications – Such as ETV fuel cell cameras and emergency responder packs – Off-road applications – Such as USC/Hydrogen Hybrid Mobility fuel cell Segway and Bridgestone hydrogen forklift projects – Automotive – Federal Transit Administration’s National Fuel Cell Bus Program, Fall 2008
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Columbia, SC
• • • • • • In 2007, the City of Columbia unanimously passed a resolution to become a leader in fuel cell innovation The Greater Columbia Fuel Challenge funds projects of various scales, including: – Portable fuel cell battery packs for ETV cameras – First responder extended fuel cell power packs University of South Carolina professors unveiled two hydrogen fuel cell Segways in 2007 NSF Research Center for Fuel Cells 2 Endowed Chairs in fuel cell research Site of the 2009 National Hydrogen Association Conference
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Aiken, SC
• • • • • $10 million Center for Hydrogen Research opened 2005 – Currently under expansion, 2009 SC’s first hydrogen vehicle, 2007 Chevrolet Silverado truck, delivered February 2008 Bridgestone plant deployed 23 hydrogen forklifts in 2008 with plans to create an all hydrogen forklift fleet by 2009 GENCO facility in process of adding hydrogen forklifts Hydrogen station part of SC Hydrogen Freeway
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Upstate of SC
• • • • • • Home to CU-ICAR and a growing Southeast Automotive Cluster Tetramer Kusters-Zima working with Nuvera Hyperion BMW—gasoline/liquid hydrogen KEMET
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Transportation Industry Challenges
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Hydrogen storage Fuel cell cost and durability Infrastructure
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Challenge: H
2
Storage • • •
Should achieve high energy density (by wt. and vol.), low cost, quick refueling and good safety Candidates: compressed gas (5k – 10k psi), liquid, metal hydride, carbon nanotubes, chemical storage No perfect solution yet but there are workable options Consumers demand 300+ mile range per fill.
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Challenge: Fuel Cell Cost and Durability
– – GM, Toyota, Honda Motor Co. and Daimler AG say durability improvements and cost reductions may enable them to sell the zero-emission vehicles by 2015. Costs to make the fuel-cell cars have fallen from $1 million each a few years ago, and automakers are working to meet a proposed goal of slashing the premium for the cars to $3,600 more than a midsized gasoline model.
GM, Toyota Fuel-Cell Plans Clash With U.S. Battery
Car Push, October 9, 2009.
Fuel cell manufacturers have achieved DOE cost and durability targets
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GM: Example of Progress • • • The fuel cell stack itself has been shrunk in terms of both size and cost and now fits in roughly the same space as GM's EcoTec four-cylinder engine. The second generation hydrogen fuel cell system in development is half the size, 220 pounds lighter and uses less than half the precious metal of the current generation in the Chevrolet Fuel Cell electric vehicle GM’s fifth-generation fuel cell stack, could be commercialized in the 2015 time frame
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Challenge: Fuel Cell Cost and Durability
Investment Tax Credit (ITC)
Example – If a US Telecom company purchases a 10kW fuel cell based backup power system at a price of $35,000 the value of the ITC will be the smaller of: • ITC Computation Based on Capital Cost: 30% of purchase price = 0.30 x $35,000 = $10,500 • ITC Cap Computation: $3,000 per kW = $3,000/kW x 10kW = $30,000 Value of the ITC to the US Telecom company in this example = $10,500
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Challenge: Fuel Cell Cost and Durability
Grant-In-Lieu of Tax Credit
Example – If a US Telecom company purchases a 5kW fuel cell based backup power system at a price of $15,000 the value of the grant will be the smaller of: • Grant Computation Based on Capital Cost: 30% of purchase price = 0.30 x $15,000 = $4,500 • Grant Cap Computation: $3,000 per kW = $3,000/kW x 5kW = $15,000 Value of the grant to the US Telecom company in this example = $4,500
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Challenge: Fuel Cell Cost and Durability
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South Carolina Hydrogen and Fuel Cell Tax Exemption
Any device, equipment, or machinery operated by hydrogen or fuel cells; Any device, equipment, or machinery used to generate, produce, or distribute hydrogen and designated specifically for hydrogen or fuel cell applications; and Any device, equipment, or machinery used predominantly for manufacturing, or research and development involving hydrogen or fuel cell technologies.
(Reference South Carolina Code of Laws 12-36-2120)
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Infrastructure – – – – – Germany: Daimler (DAI), the German government, and several industrial companies announced a plan to build 1,000 hydrogen fueling stations across Germany.
Japan: Announcement on 1/18/11 for 100 more fueling stations US: approximately 76 hydrogen fueling stations with more to coming online Stations in Australia, Belgium, Brazil, Canada, China, Denmark, France, Germany, Greece, Iceland, Italy, Netherlands, Singapore, South Korea, Spain, UK A study commissioned by the National Academy of Science concluded that the U.S. would need to spend $3 billion to $4 billion a year for 15 years to subsidize the cost of the cars and get a national infrastructure in place to make the transition to hydrogen. About the same amount in annual subsidies that corn-based ethanol receives.
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Deployment
• • Sage Mill Hydrogen Station • Capacity: 80 kg/day Columbia Hydrogen Station • Capacity: 120 kg/day
S.C. Hydrogen Freeway
First H 2 vehicle to drive SC H 2 Freeway
Near Term Opportunities • • •
Energy Stations – Hydrogen fueling stations where the primary function is to supply power to a nearby location Niche Markets – – – – Telecommunications Forklifts APU and Scooters Applications with a high need for reliability Opportunity Fuels – Waste hydrogen from chemical processes – – Methane from landfills Anaerobic digester gas from wastewater treatment facilities
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Early Niche Markets •
Telecommunications – Cell tower back-up – Fuel cells can meet battery price point with incentives – Fuel cells offer longer, continuous runtime and are more durable in harsh environments
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Forklifts – Fuel cells are superior performing in high productivity markets • Rapid refueling, eliminate down-time for battery
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recharging
Fuel cells provide a unique value to market segment not met by competing technologies
Growing Markets
Currently putting together Case Studies that examine the
Current Market Value Proposition
for hydrogen and fuel cells in: Cell Phone Towers Combined Heat and Power (CHP) Forklifts
Bridgestone-Firestone Plant & GENCO warehouse in Aiken, SC Creates jobs for operation, maintenance, and distribution of technology
Key Strategy to increasing hydrogen through put of local hydrogen station
Market Value Proposition
Hydrogen Fork-Lifts
Example of fuel cell application for telecommunications
Market Value Proposition
BTS Qty 1 2 3 4 5
Fuel Cell/Battery Side by Side
INITIAL COSTS
Power Reqired
Amps @ 48 VDC kW 35 70 105 140 175 1.68
3.36
5.04
6.72
8.40
Fuel Cell System
Cost ($ US) Footprint SF lbs 31,806 31,806 45,564 45,564 45,564 13 13 27 27 27 854 963 1,515 1,624 1,733
Conventional Battery
Cost ($ US) Footprint SF lbs 12,000 19,000 26,000 33,000 40,000 9 18 27 36 45 975 1,950 2,925 3,900 4,875 Notes 1. 4 Hours of support power is required 2. Cost reflects turn-key estimate for typical installation
Battery and Generator
BTS Qty 1 2 3 4 5
Fuel Cell/Battery Side by Side
Power Reqired
Amps @ 48 VDC kW 35 70 105 140 175 1.68
3.36
5.04
6.72
8.40
TEN YEAR COSTS Cost
Fuel Cell System
Footprint ($ US) SF lbs 47,237 47,444 76,183 76,390 76,596 13 13 27 27 27 854 963 1,515 1,624 1,733
Conventional Battery
Cost Footprint ($ US) SF lbs 66,100 101,700 137,300 172,900 208,500 9 18 27 36 45 975 1,950 2,925 3,900 4,875 Notes 1. 4 Hours of support power is required 2. Cost reflects turn-key estimate for typical installation 3. Cabinet configurations with best life cycle cost used for fuel cells (others available) 4. Costs include estimated annual lease, fuel, maintenance, and replacement expenses 5. Costs do not include adjustments for interest expenses or inflation
Battery and Generator
Deployment Fort Jackson Fuel Cell Applications
Capacity
15 KW 30 KW 5 KW
Back Up Function
Emergency services center and 911 call center Critical communications and IT services Base-wide energy management control center
10-5 KW units in 3 locations Ft. Jackson Emergency Services Center Ft. Jackson Telecommunications Center
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Hydrogen still needs your support
Let your state and local representatives know you support hydrogen and the work of the SCHFCA Educate yourself on hydrogen and fuel cells – Visit schydrogen.org for information on SC’s activities – Plug into national activities at hydrogenassociation.org
h2andyou.org
Learn more about favorable state incentives for adopting alternative energy technologies at www.energy.sc.gov and
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