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HYDROGEN UNTAPPED ENERGY?

Report author Olu Ajayi-Oyakhire BSc Copyright © 2012, IGEM. All rights reserved Registered charity number 214001 All content in this publication is, unless stated otherwise, the property of IGEM. Copyright laws protect this publication. Reproduction or retransmission in whole or in part, in any manner, without the prior written consent of the copyright holder, is a violation of copyright law. Published by the Institution of Gas Engineers and Managers

Hydrogen – Untapped Energy?

Table of contents Foreword

4

Executive summary

5

1

Introduction

7

2

Why do we need hydrogen in the energy system?

8

2.1.

Harnessing energy from unrestrained wind farms

8

2.2.

Harnessing energy from other renewable sources

11

2.3.

Energy security

12

2.4.

De-carbonising the power generation and transport sectors

13

3

What is the hydrogen economy?

14

3.1.

Production – sources of hydrogen

15

3.2.

Storing and distributing hydrogen

18

3.3.

Hydrogen utilisation

22

Current hydrogen activities

22

4

4.1.

What is going on in the UK

23

4.2.

EU activities on hydrogen to date

29

4.3.

Global outlook

32

5

Hydrogen – where is the market for it?

33

5.1.

Potential market for automotive hydrogen applications

33

5.2.

Other niche markets for hydrogen

36

5.3.

Hydrogen in the gas industry

36

6

Hydrogen – how safe is it?

38

6.1.

Hydrogen properties and characteristics

38

6.2.

Regulations, codes and standards (RCS)

40

7

Summary of findings

42

8

Glossary of terms

44

9

Acknowledgements

46 3

Hydrogen – Untapped Energy?

Foreword from IGEM The Institution of Gas Engineers and Managers (IGEM) supports the government objective of developing a low carbon economy. In order to achieve a reduction of 80% of CO2 emissions by 2050 the development of the use of hydrogen and fuel cell technology is seen as vital to a low energy economy. The gas industry has a long history of responding to changes in the operating environment from the early days of gas lighting in 1792 when coal gas was first used through to the highly developed gas distribution network we have today. The energy constituent of coal gas was hydrogen and the UK therefore operated the first hydrogen network for 170 years before converting to natural gas in the late 1960’s. The development of hydrogen as a clean, sustainable low carbon fuel has a key part to play in developing a healthier environment and in securing future energy supplies. IGEM believes that the development of technologies utilising hydrogen is relevant to all energy sectors including transport, buildings, industry and utilities but this can only be achieved with the commitment of public and private sectors with government support on both a national and European level. IGEM is aware that this will require major investment in terms of infrastructure for transportation, hydrogen production technologies to integrate intermittent power sources to the electrical grid, the use of fuel cell applications in buildings and the development of the gas distribution network to transport hydrogen. However as the technology improves and the use of these technologies increases, the economic viability of utilising hydrogen will be more sustainable. We could see the use of lighting in the home going full circle with hydrogen providing the fuel but instead of the light source being a naked flame as it was in 1792, it will be provided by a fuel cell delivering electricity to illuminate a low energy light source.

Claire Curtis-Thomas Chief Executive Officer Institution of Gas Engineers and Managers

4

Hydrogen – Untapped Energy?

Executive summary 1. Hydrogen has potential applications across our future energy systems due particularly to its relatively high energy weight ratio and because it is emissionfree at the point of use. Hydrogen is also abundant and versatile in the sense that it could be produced from a variety of primary energy sources and chemical substances including water, and used to deliver power in a variety of applications including fuel cell combined heat and power technologies. As a chemical feedstock, hydrogen has been used for several decades and such expertise could be fed back into the relatively new areas of utilising hydrogen to meet growing energy demands.

2. The UK interest in hydrogen is also growing with various industrial, academic and governmental organisations investigating how hydrogen could be part of a diverse portfolio of options for a low carbon future. While hydrogen as an alternative fuel is yet to command mass-appeal in the UK energy market, IGEM believes hydrogen is capable of allowing us to use the wide range of primary energy sources at our disposal in a much greener and sustainable way.

3. IGEM also sees hydrogen playing a small but key role in the gas industry whereby excess renewable energy is used to generate hydrogen, which is then injected into the gas grid for widespread distribution and consumption. Various studies suggest admixtures containing up to 10 – 50%v/v hydrogen could be safely administered into the existing natural gas infrastructure. However, IGEM understands that this would

currently

Regulations

not

(GS(M)R)

be

permissible

for

gas

under

conveyance

the

Gas

here

in

Safety the

(Management)

UK.

Also,

proper

assessments of the risks associated with adding hydrogen to natural gas streams will need to be performed so that such systems can be managed effectively.

4. IGEM has also identified a need for standards that cover the safety requirements of

hydrogen

technologies,

particularly

those

pertaining

to

installations

in

commercial or domestic environments. IGEM also recommend that the technical measures used to determine separation distances for hydrogen installations, particularly refuelling stations, are re-assessed through a systematic identification and control of potential sources of ignition.

5

Hydrogen – Untapped Energy?

5. Hydrogen has the potential to be a significant fuel of the future and part of a diverse portfolio of energy options capable of meeting growing energy needs. This report, therefore, seeks to demonstrate how hydrogen could be a potential option for energy storage and power generation in a diverse energy system. It also aims to inform the readers on the current state of hydrogen here in the UK and abroad. This report has been assembled for IGEM members, interested bodies and the general public.

6

Hydrogen – Untapped Energy?

1. Introduction It will require a radical change in the way we utilise our depleting resources for heating, electricity generation and transport in order to meet challenging 2050 carbon reduction targets of 80% in 1990 levels.1 There have been a number of strategies set out to meet our 80% reduction targets which include using fossil fuel sources more sustainably and efficiently, encouraging commercialisation of innovative technologies, and deploying alternative energy sources with the potential to generate clean power.2 Using fossil fuels efficiently will involve deploying carbon capture and storage (CCS) technologies but with the high number of economic and legal hurdles that still need to be crossed, it will be a while before CCS becomes the main carbon abatement technology. Alternative energy sources can be derived from renewables - wind, solar, tidal, geothermal, and bio-fuels (such as biomass, biodiesel, bio-ethanol and biogas). Renewable energy has tremendous potential but is limited mainly to electricity generation due to the constraints associated with using renewable sources in other areas of energy consumption such as transportation and heating. Energy arising from wind, waves and solar sources can vary on a daily basis depending on weather conditions. There will be occasions when the amount of energy being generated by these climate based sources far exceeds the energy demand required on the day. Therefore the level of energy produced may exceed the ability of the grid to absorb the level of energy generated without causing grid stability issues. Technology for storing electricity is well established in the form of batteries and pumped storage however coupling renewable energy sources with electricity storage requires long term storage capability (weeks or even months). To give an idea of the scale, the energy density of batteries suitable for transport applications is typically between 100 – 180 Wh/kg (Watt hour per kilogram) and such devices can cost up to £25/kg.3 One alternative to battery storage is effectively storing and distributing energy in the form of hydrogen. Hydrogen can be produced from a variety of processes using different sources4 at an average cost of £1.90/kg.5 Provided there is access to clean water, wind energy that would have otherwise been wasted can be used to generate 1 2

DECC accessed 03.11.11. Available at .

HSE - Science & research, accessed 03.11.11. Now we’re cooking with gas (well hydrogen, actually!). Available at .

3 4 5

Calculated at an exchange rate of $1.57 ( 13.08.12). Interview with Mark Crowther – Managing Director at Gastech at CRE, 06.02.12. Calculated at an exchange rate of $1.57 ( 13.08.12).

7

Hydrogen – Untapped Energy? hydrogen via electrolysis. This hydrogen generated can then be converted back to electricity by reacting it with air or oxygen in combustion engines or fuel cells (hydrogen energy density is around 33.6 kWh/kg). Hydrogen can also be stored in a number of ways. Underground storage has been practised since the 1970’s and new capacity (equivalent of 2.5% of annual UK energy use) has just been built in Texas, USA.

2. Why do we need hydrogen in the energy system? 2.1 Harnessing energy from unrestrained wind farms

“We

have almost a quarter of Europe’s offshore wind and tidal resource, a tenth of its wave

energy potential and so we are determined to harness the opportunities that come from our inclement weather”

Fergus Ewing MSP, Scottish Minister for Energy, Enterprise and Tourism6

The UK is one of windiest countries in Europe and consequently wind energy is considered in some quarters to be critical to enable us to reach our renewable energy targets. Although the wind energy sector is yet to fully mature, project roll-outs have gathered pace since the first (onshore) wind farm built at Delabole in 1991.7 The report on Building a low carbon economy in the UK8 points out that onshore and offshore wind resource together could deliver 30% of our electricity supply by 2020 and be part of a radical decarbonisation of the economy by 2030. However, certain commentators consistently argue that the scale and pace of wind power development, incentivised by the Renewables Obligation (RO),9 exceeds the ability of the grid system to integrate this sporadic energy source. These wind power integration arguments have been backed up by recent events in 2011 when National Grid revealed that significant “constraint” payments (see Box 1 on page 9)10 were made to a number of Scottish wind farms in April 2011. The Renewable Energy Foundation (REF)11 report that constraint payments were made because in that instant, the Scottish electricity grid network could not cope with all the wind energy being generated and chose to hold back the wind power input to the

6 7

4th World Hydrogen Technologies Convention (WHTC ’11), Glasgow, Scotland. 14.09.11. Opening plenary session.

Environmental Change Institute, University of Oxford 2005, accessed 03.11.11. Wind power and the UK wind resource. Available at http://www.eci.ox.ac.uk/publications/downloads/sinden05-dtiwindreport.pdf.

8

CCC - Committee on Climate Change 2008, accessed 03.11.11. Building a low-carbon economy - the UK’s contribution to tackling climate change. Available at .

9

Ofgem accessed 21.12.11. What is the Renewables Obligation (RO)? Available on .

10

Transmission Constraint Agreement, accessed 12.12.11. Available on < http://www.nationalgrid.com/uk/Electricity/Balancing/services/balanceserv/systemsecurity/trans_constraintagreement/>.

11

REF - Renewable Energy Foundation 2011, accessed 03.11.11. High rewards for wind farms discarding electricity 5th – 6th April 2011. Available at .

8

Hydrogen – Untapped Energy? electricity system. Constraint payments get added to household bills and are ultimately paid for by consumers, raising fears about the long-term suitability of wind power to meet energy needs as Britain pushes for more wind farms.12 Box 1: What are Constraint Payments? Constraints arise when the electricity system is unable to transmit generated power to the location of demand. This could be due to congestion at one or more locations within the Transmission Network. National Grid is responsible for ensuring the electricity system remains within safe operating limits and that the pattern of generation and demand responds to any Transmission related constraints. In the event that the system is unable to accept the electricity being generated, National Grid will take action in the utility market to either increase or decrease the amount of electricity at different locations on the network. There is a variety of tools available to assist National Grid to do this, which includes entering into a Transmission Constraint Agreement and buying or selling electricity in the Balancing Mechanism (see below) with power providers, suppliers and large customers to resolve the constraints on the Transmission System. The Balancing Mechanism requires the electricity generators to switch off or reduce the power supplied; a system already used to reduce supply from coal and gas-fired stations when there is low demand. On top of the standard charge for power generation, wind turbine owners lose very lucrative subsidies which are paid to companies generating electricity from green sources. In the event of the wind turbines having to be the turned off, the loss of this double source income leads to higher compensation costs. Below is a table that shows the wind farms compensated for not generating energy in April 2011. Wind farm

Rate paid per MWh

Total paid in April

Wind farm owner

2011 Whitelee

£180

£308,000

Scottish Power

Farr

£800

£265,000

RWE nPower

Hayward Hill

£140

£140,000

SSE Renewables

Black Law

£180

£130,000

Scottish Power

Millennium

£300

£33,000

Falck Renewables

Beinn Tharsuin

£180

£11,500

Scottish Power

Resolving the grid-balancing issue, according to the House of Lords’ Economic Affairs Committee,13 will require more backup generation capacity to respond very quickly to short term changes in electricity outputs from wind farms. However, the technical

12

According to the REF, wind farms forego subsidies worth approximately £50 - £55 per MWh from the Renewables Obligation Certificate (ROC) and Levy Exemption Certificates (LEC). Therefore, the constraint payments are required by the wind generators so as not to be out of pocket.

13

The economics of renewable energy, chapter 4: renewable in the electricity system, accessed 13.12.11. Available on .

9

Hydrogen – Untapped Energy? challenges and costs associated with such backup generation, large enough to balance an electricity system, with a high percentage of intermittent renewable generation are still uncertain. The Department for Energy and Climate Change (DECC) has also called for better energy storage facilities to be connected to renewable power sources.14

Figure 1: Location of Scottish wind farms that received payments to reduce output to 30 April 2011.

15

One possible option to storing this wind energy that would otherwise be wasted could be hydrogen generation via electrolysis. Electrolysis is just one of the many hydrogen production methods available today. It uses direct current (DC) electricity to drive a non-spontaneous chemical reaction such as the dissociation of water into hydrogen (H2) and oxygen (O2). Electrolysers have traditionally been used for hydrogen production in places with low electricity prices or where very high purity gas was required, however, not until very recently have they started to become a viable option for production as fossil fuel prices continue to rise.

14 15

DECC accessed 03.11.11. Available at .

REF - Renewable Energy Foundation 2011, accessed 03.11.11. High rewards for wind farms discarding electricity 5th – 6th April 2011. Available at .

10

Hydrogen – Untapped Energy? Ideas of using wind turbine technology to produce electricity for hydrogen production were first proposed in the early 1970s. Several papers have been written on using small to mega-watt scale offshore wind turbines to electrolyse seawater, with the hydrogen produced piped back to land.16

2.2 Harnessing energy from other renewable sources The issue associated with matching the supply and demand of solar power due to its seasonal variability could be resolved by generating hydrogen. For example, solar photovoltaic cells could be used to produce hydrogen via electrolysis and later used to provide heat or electricity when it is most needed – which is on a cold winter’s night not at noon in the summer.17 Geothermal and tidal energy could also be used to generate power and this power stored as hydrogen. Although it is very difficult to determine the full worth of electricity from intermittent sources, this renewably derived hydrogen has the potential to allow consumers to purchase this power as and when they need it.18 From an efficiency viewpoint, there are energy losses involved with converting renewable energy to hydrogen and converting that hydrogen back to power via a fuel cell. In comparison, the round-trip efficiency of an energy system is reduced by a factor of 3 if fossil fuel is used to make electricity, then the electricity used to make hydrogen. However, there are still some advantages of deploying such a concept. Advances in technology mean hydrogen is no longer difficult to store and transport, which effectively means using hydrogen is never constrained by demand. Also, using intermittent sources to produce hydrogen has the potential to maximise the operating hours per year which could significantly reduce the cost per kWh of the energy generated from these sources.

16

National Renewable Energy Laboratory, accessed 13.12.11. Electrolysis: Information and Opportunities for Electric Power utilities. Available on .

17

Mark Crowther, 2010, Hydrogen: Green currency of the future. Gas International Engineering and Management (Jan/Feb 2010) pp 23 – 26.

18

Interview with Mark Crowther – Managing Director at Gastech at CRE, 06.02.12.

11

Hydrogen – Untapped Energy?

Figure 2: Hydrogen storage concept for renewable energy.

2.3 Energy security One of the UK’s long term energy challenges is the ability to deliver secure supplies of clean energy at affordable prices, as North Sea oil and gas reserves dwindle and we become increasingly dependent on stocks imported from overseas. After years of being a net exporter of both fuels, the UK became a net importer of natural gas and crude oil in 2004 and 2005 respectively. Production peaked in the late 1990s and has declined steadily ever since as the discovery of new reserves has not kept pace with the maturity of existing fields. Becoming a net importer of both fuels has also made a significant contribution to the UK’s balance of payments. In 2010 the UK produced 1.4 million barrels per day (mbl/d) of oil and consumed 1.6 million barrels per day (mbl/d); however, this consumption has gradually been on the decline since 2005 mainly because of a progressive ebbing of gasoline demand.19 For natural gas, UK Continental Shelf (UKCS) production has been decreasing since 2000 and in 2010 was down 4% on 2009 levels. According to DECC, this was one of the smaller year-on-year decreases as production has been falling by an average rate of 6% per year since 2000. In 2010 gas demand also increased by 8.4%, following a decrease of 7.6% in the previous year because of the cold climate and higher demand from electricity generators. As a result imports of natural gas have increased and in 2010 were almost a third higher than in 2009.20

19

2010 Oil & Gas Security, accessed 20.12.11. Emergency Response of IEA Countries. Available on .

20

.

12

Hydrogen – Untapped Energy?

Figure 3: United Kingdom dry natural gas production (excluding imports), monthly range and average 21 monthly production for the year, January 2000 to December.

Therefore in the longer term, oil and gas will still remain an important but declining part of the UK’s energy mix. Their use, particularly for electricity, heat generation and transport, will decline in favour of renewable energies. In addition, consumption is more than likely to fall as a result of improvements in energy efficiency and the development of better performing hybrid vehicles. The White Paper on Energy22 suggests that the potential long-term possibilities for large scale alternatives to gas for the production of heat may be through the production and use of hydrogen and low carbon electricity. However, with the various storage and end-use options available, including micro-generation and combined heat and power (CHP) and the possibility of blending small quantities with natural gas in the gas grid, hydrogen could be a part of a diverse portfolio of short to medium term options in place to address the dependence on natural gas for heating and oil for transport.

2.4 De-carbonising the power generation and transportation sectors In an effort to meet our statutory 80% reduction in emissions by 2050, it is easy to target the 2 major emitters of CO2 according to Figure 4, which are the power and transportation sectors. However, the fact remains that low carbon alternatives in these 2 sectors are vital to achieving any emission targets.

21

U.S. Energy Information Administration (EIA). The United Kingdom’s natural gas supply mix is changing, June 2012, accessed 22.06.12. Available on .

22

Department of Trade and Industry. Meeting the energy challenge: a white paper on energy, May 2007, accessed 24.11.11. Available on .

13

Hydrogen – Untapped Energy?

Figure 4: UK 2006 green-house gases (GHG) emissions presented by DECC source sector category.

23

Hydrogen manufactured from indigenous fossil fuels such as coal (with postcombustion CCS) could provide a flexible, interchangeable option to electricity. Also, hydrogen fuel cell vehicles are being developed, some of which are at very advanced stages and could be a better option to electric vehicles (EVs) both from a cost and consumer standpoint.24 IGEM believes hydrogen as an alternative energy carrier to electricity is capable of allowing us to use the wide range of primary energy sources in a much greener way, as well as giving the options of both easing the transition to an all electric transport sector and increasing the opportunities for hydrogen in this market.

3. What is the hydrogen economy? The hydrogen economy is a system with three associated elements: •

Production of molecular hydrogen from fossil fuel (with carbon sequestration),

nuclear energy or renewable energy. •

Storage and transportation of hydrogen.

23

CCC - Committee on Climate Change 2008, accessed 03.11.11. Building a low-carbon economy - the UK’s contribution to tackling climate change. Available at .

24

Ofgem Project TransmiT Consultation 2010, accessed 03.11.11. UK Hydrogen and Fuel Cell Association (UK HFCA) Response. Available on .

14

Hydrogen – Untapped Energy? •

The final end-use of hydrogen to produce heat (domestically and commercially)

and power. Whereas hydrogen is the most abundant element on the planet, it does not occur naturally in its useful form; it has to be generated using fossil fuel, nuclear or renewable energy. Furthermore, contrary to much popular belief, the whole concept of the hydrogen economy and using it as a fuel is not new. Up until 1977 manufactured gas, comprising of methane, carbon dioxide, carbon monoxide and approximately 50% hydrogen was piped into UK homes and used to cook meals and provide heat and lighting, before attention shifted to the much cheaper and cleaner natural gas.

3.1 Production – sources of hydrogen Similar to electricity, hydrogen can be produced from a wide variety of primary sources.25 •

Coal – hydrogen can be produced from the gasification of coal.

•

Oil – hydrogen can be produced from steam reforming or partial oxidation of

fossil oils. •

Gas – hydrogen can be produced as a by-product from reforming natural gas or

biogas with steam. •

Power – hydrogen can be produced from water electrolysis using any power

source including nuclear, wind and solar power. •

Wood/Biomass – hydrogen can be produced by decomposing biomass under

controlled conditions. •

Algae - hydrogen can be produced via methods that utilise photosynthesis.

•

Alcohols – hydrogen can be produced from gas or biomass-derived alcohols such

as ethanol and methanol. The natural gas or steam reforming process involves pre-heating, purifying and reacting the gas with steam in the presence of an active nickel catalyst to produce hydrogen and carbon monoxide. The carbon monoxide is then reacted further with water in the ‘shift’ reaction to produce additional hydrogen. Process efficiencies are typically between 65 – 75%.

25

IEA HIA, accessed 10.11.11. Hydrogen Production and Storage – R & D Priorities and Gaps 2006. Available on .

15

Hydrogen – Untapped Energy?

Figure 5: Hydrogen sources & production processes.

A coal gasifier converts pulverised coal into hydrogen and carbon monoxide when steam and oxygen are added in a cycle known as the Integrated Gasification Combined Cycle (IGCC). Partial oxidisers produce hydrogen from heavy hydrocarbons (e.g. oil), typically at process efficiencies of about 50%.26 Electrolysis involves splitting water into hydrogen and oxygen using electricity. Ideally, 39 kWh of electricity and 8.9 litres of water are required to produce 1kg of hydrogen at 25°C and 1atm.27 Typical commercial electrolyser system efficiencies are between 56 – 73% which corresponds to 53.4 - 70.1 kWh/kg (some new technologies have shown to achieve up to 80% efficiency on a gross calorific value (GCV) basis).

26

Dutton G., Bristow A., Page M., Kelly C., Watson J., Tetteh A. The Hydrogen energy economy: its long term role in greenhouse gas reduction. Tyndall research project IT1.26, accessed 10.11.11. Available on .

27

National Renewable Energy Laboratory, accessed 13.12.11. Electrolysis: Information and Opportunities for Electric Power utilities. Available on .

16

Hydrogen – Untapped Energy? Pyrolysis, photo-biological and thermo-chemical processes are the less well-known hydrogen production routes. Biomass pyrolysis, similar to the gasification process, produces a variety of gases at temperatures in excess of 800°C including hydrogen, methane, carbon monoxide, and carbon dioxide. Photo-biological production of hydrogen is the process whereby photosynthetic microbes undergo metabolic activities using light energy to produce hydrogen from water. Examples of microbes with such metabolic capabilities include green algae and cyanobacteria.28 The global hydrogen production stands at around 448 billion m3 per year (40 billion kg per year). The reforming method is the most cost-effective way to produce large quantities of hydrogen (costing between £0.50 - £4.00/kg29 of hydrogen produced). It accounts for around 48% of the hydrogen currently produced worldwide (see figure 6), especially in places such as the US, where hydrogen is predominantly used for refining petroleum and producing fertilizer. The major drawbacks to this method, however, are (a) the process is based on the use of non-renewable fossil fuel sources and (b) the reactions involved also produce carbon dioxide which has to be dealt with.30 Here in the UK, most of the hydrogen produced is also from the steam reforming process. Much of this hydrogen production is done on commercial scales in industrial clusters located in the Northwest of England, Teesside and South Wales. This hydrogen, for the most part, is used within the production facilities where it is made, with some merchant gas – commercially traded hydrogen gas – available for distribution. The International Energy Agency (IEA), evaluating the UK hydrogen infrastructure, suggests that for the short to medium term, current hydrogen gas production and supply is incapable of supporting a major expansion of its use in fuel cell or gas turbine applications. The IEA also suggests that most UK refineries possess the infrastructure and feed stocks needed to manufacture hydrogen on a large enough scale, and ammonia plants could be expanded for further hydrogen production if a profitable market emerged.31

28

IEA HIA, accessed 10.11.11. Hydrogen Production and Storage – R & D Priorities and Gaps 2006. Available on .

29 30

Calculated at an exchange rate of $1.57 ( 13.08.12).

National Renewable Energy Laboratory, accessed 13.12.11. Electrolysis: Information and Opportunities for Electric Power utilities. Available on .

31

Hoffheinz G., Kelly N., Ete A. Evaluation of hydrogen demonstration systems & United Kingdom hydrogen infrastructure. Years 2-3 of task 18 of the IEA hydrogen implementing agreement 2007, accessed 14.11.11. Available on .

17

Hydrogen – Untapped Energy?

18%

4% 48%

Natural Gas Oil Coal Electrolysis

30% Figure 6: Global hydrogen production by source in 1999.

32

As mentioned previously, electrolysis is a production option mostly used in places with inexpensive sources of electricity. Early designs were tanks filled with an electrolyte that was manually made to contact electrodes, both the cathode and the anode, in alternate sequences. These provided the interface between the circuit delivering the external energy and the electrolyte where the initial dissociation of ions take place. Newer designs are more intricate and complicated systems, and their capital costs are largely driven by the costs of the electricity used and the materials used as the separation diaphragm. In the EU, cost targets for the production of hydrogen have been set at £13.05/kg in 2010, £7.78/kg in 2015 and £4.32/kg in 2025 and there are currently some electrolyser systems capable of producing hydrogen for as little as £3.77/kg (based on£0.03/kWh33 energy and 20 year Capex amortisation).34

3.2 Storing and distributing hydrogen Theoretically hydrogen can be stored as a liquid, gas or solid. Liquid hydrogen is typically kept at temperatures bordering on -253°C in highly insulated tanks. Hydrogen can also be stored as a compressed gas underground at up to 150bar, and as a solid within the chemical structure of hydrides or porous carbon-based materials. Gaseous hydrogen storage is by far the simplest and most employed option for both large and small scale storage. The two main methods of storing large quantities of gaseous hydrogen include: (a) in cavities created by dissociation in salt formations and (b) deep aquifer layers.35 Some examples are given below:

32

Ogden J. Hydrogen applications: Industrial uses and stationary power. Hydrogen pathways class, UC Davis 2004, accessed 14.11.11. Available on .

33 34

Calculated at an exchange rate of €0.79 ().

ITM Power HFuel Cost structure, accessed 25.11.11. Available on .

23

Hydrogen – Untapped Energy? of research alliance involving the Universities of Birmingham and Warwick.50 Other sources of funding are the Carbon Trust and the Energy Savings Trust.51 Below are some of the ongoing demonstration projects in the UK. The Cleaner Urban Transport for Europe (CUTE) trial

“These

buses are a marvel of hydrogen technology, emitting only water rather than belching

out harmful pollutants”

Boris Johnson, Mayor of London

Between 2004 and 2007, the city of London participated in the Cleaner Urban Transport for Europe (CUTE) trials as part of a worldwide demonstration that tested a fleet of zero-emission fuel cell buses in 9 cities across the globe. Transport for London (TfL)52 operated 3 specially built Mercedes Citaro buses (see figure 10) for 8 to 10 hours a day.

53

Figure 10: Hydrogen-powered fuel cell (HFC) bus operating on a busy route in Central London.

The success of the trials has led to the introduction of 5 hydrogen-powered buses currently operating on one of London’s most polluted areas as of March 2011. Planning permission for a hydrogen refuelling facility to be built in the east of London has also been approved by the Olympic Delivery Authority and a further 3 buses will be delivered by the end of 2012.

50 51

Interview with University of Birmingham’s Fuel Cell group, 22.08.11.

Hyways - 2050 UK Hydrogen Vision 2006 draft, accessed 17.11.11. Available on < http://www.hyways.de/docs/deliverables/WP3/HyWays_UK_Vision_Hydrogen_Chains_JUN2006.pdf>.

52

Transport for London (TfL), Hydrogen Vehicles, accessed 17.11.11. Available on < http://www.tfl.gov.uk/corporate/projectsandschemes/environment/8444.aspx>.

53

London’s hydrogen buses, accessed on 17.11.11. Available on .

24

Hydrogen – Untapped Energy? IGEM

recommends

that

the

UK

government

continually

invest

in

infrastructure linked to hydrogen transport applications and the subsequent research that could permit significant technological advancements. This would ensure infrastructure reliability and integrity needed to achieve UK wide commercialisation of hydrogen powered buses and other related automotive technologies. ITM Power ITM Power is a company based in Sheffield that specialises in the design and manufacture of hydrogen energy systems for energy storage and clean fuel production. They run a number of project trials and demonstrations aimed at getting their products into the commercial market. One such project is the hydrogen-powered home in Sheffield which incorporates an internal combustion engine powered with hydrogen from an electrolyser unit splitting water into hydrogen and oxygen.54 In early 2011 ITM Power launched the field trials HOST – Hydrogen On Site Trials. This saw ITM Power’s self-contained Proton Exchange Membrane (PEM) based electrolyser system HFuel (see figure 11), and 2 hydrogen internal combustion engine vans operating at third party sites for a set period of time. The programme to date has seen 21 commercial partners join from 7 different industry sectors including Scottish & Southern Electric, Enterprise and DHL.55 ITM Power believes HFuel could be the solution to the energy storage conundrum associated with integrating intermittent renewable energy in the electricity system. Charles Purkess ITM Power marketing manager explains, “Denmark is a typical example where 20% of the generating capacity is from wind but only a small percentage of demand can be met with that wind power. The rest has to be either exported to Sweden or Norway or wasted”.56

54

Ellwood P., Bradbook S., Hoult E., Snodgrass R. Emerging energy technologies programme: Background report. Health & Safety Laboratory, May 2010.

55 56

Hydrogen On Site Trials (HOST), accessed 18.11.11. Available on . Visit to ITM Power HQ in Sheffield, UK. 26.09.11.

25

Hydrogen – Untapped Energy?

Figure 11: ITM Power’s HFuel unit generates hydrogen gas from water by electrolysis.

57

SUPERGEN XIV – Delivery of Sustainable Hydrogen (DOSH2) The ongoing SUPERGEN XIV research project brings together 12 of the leading universities in the UK – including the Universities of Cambridge, Oxford, Strathclyde, Birmingham and Newcastle - with the aim of improving the way hydrogen and hydrogen based fuels are produced and delivered. The research topic areas cover hydrogen production routes that make use of less energy than conventional processes. In addition, the socio-technical issues which deal with how hydrogen is delivered to the consumer and the impact of including hydrogen in the energy infrastructure are also being addressed by social scientists.58 The University of Birmingham Fuel Cell group The

University

of

Birmingham

Fuel

Cell

group

currently

runs

a

number

of

demonstration projects in different areas to evaluate the benefits of using hydrogen technologies in real-life applications. One such area is SCRATCH – Supply Chain Research Applied to Clean Hydrogen – which ran from May 2007 through till 2010. Successful demonstrations include a hydrogen filling station, a hydrogen-powered house, 5 Microcab hydrogen fuel cell vehicles (see figure 12) used to deliver university post and a hydrogen fuel cell CHP unit. The fuel cell CHP unit (see figure 13) used a Proton Exchange Membrane (PEM) based fuel cell to supply 1.5kW of electricity and 3kW of heat to a house. The 1.8m by 1m BAXI unit produced the hydrogen required to run the fuel cell in-situ by reforming

57

ITM Power products brochure, accessed 25.11.11. Available on www.itmpower.com/cmsFiles/products/HFuel_Brochure.pdf.

58

SUPERGEN XIV – Delivery of Sustainable Hydrogen, accessed 22.11.11. available on .

26

Hydrogen – Untapped Energy? Natural Gas. Its overall efficiency was also maximised by storing the heat produced from the chemical reaction in a 600-litre water tank built next to the unit by the researchers, which subsequently circulated hot water through conventional radiators and to a hot water cylinder in the house.59

Figure 12: University of Birmingham’s five Microcab Hydrogen Fuel Cell (HFC) Vehicles.

60

Figure 13: Hydrogen Fuel Cell Combined Heat and Power unit (Photo courtesy of University of Birmingham Fuel Cell Group).

According to Aman Dhir, Research Fellow with the University of Birmingham Fuel Cell group, the two key barriers that need to be surmounted before hydrogen can become a part of the UK energy mix are: 59

Olu Ajayi-Oyakhire, 2011. The up and coming hydrogen economy – Is the writing on the wall. Gas International (Oct 2011) pp 22 – 23.

60

Microcab Hydrogen Powered Cars, accessed 17.11.11. Available on .

27

Hydrogen – Untapped Energy? •

The general perception of hydrogen as a dangerous gas which could be solved by

educating the general public about the properties of hydrogen •

The lack of a coherent set of regulations to govern the use of hydrogen gas as a

fuel.61 IGEM echoes the need for hydrogen safety education and encourages the relevant organisations to develop schemes whereby the general public is informed on the properties and potential benefits of hydrogen gas. The Hydrogen Office The Hydrogen Office project (see figure 14), set up by Business Partnership Ltd and funded by the Scottish Communities Renewable Household Initiative, exists to support the rapid development of renewable energy, hydrogen and fuel cell and energy storage industries in Scotland. Based in Fife, on the east coast of Scotland, the offices within the building are powered by an energy system incorporating a 750 kW wind turbine used to generate electricity for powering lightings and computers. Any excess electricity generated is also used to produce and store hydrogen from water for later use. The offices’ wind turbine system generates on average 4000 kWh of electricity per day - equivalent to the annual consumption of a typical four bedroom home. During windy periods the turbine exports electricity to the electricity grid, however when there is not enough wind power a 10kW hydrogen fuel cell is used to generate the electric power needed. A Ground Source Heat Pump (GSHP) is used to provide heat to the offices.62

Figure 14: the Hydrogen Office in Fife, Scotland (L) and the Office system (R).

61 62

Interview with University of Birmingham’s Fuel Cell group, 22.08.11.

The Hydrogen Office, accessed 18.11.11. Available on .

28

24

Hydrogen – Untapped Energy? The Hydrogen Centre The Hydrogen Centre is a research and development centre developed by the University of Glamorgan with part funding from the European Regional Development Fund (ERDF). Its main function is to raise awareness of hydrogen as a clean and sustainable energy carrier with the potential to overcome the UK’s dependence on imported energy. The centre has a functioning range of renewable and hydrogen energy technologies. These include a 20kW photovoltaic (PV) array installed on the roof, an alkaline electrolyser used to harness power output from the PV by separating water into hydrogen and oxygen, a compressed hydrogen fuel dispenser and a 12kW Proton Exchange Membrane (PEM) fuel cell.63

4.2 EU activities on hydrogen to date In the last two decades interest in hydrogen and its use as a fuel has grown within the European Union (EU). This interest has led to the allocation of more funds for hydrogen research and demonstration projects in the region. Under the second European

Research

Framework

Programme

(FP2,

1988-1992),

the

financial

contribution towards research, development and demonstration on hydrogen and fuel cells was £6.3 million64. This increased to £216.3 million65 under the Sixth European Research Framework Programme (FP6, 2002-2006). Further research in the EU is being supported under the Seventh European Framework Programme (FP7, 20072013). A review of the major projects, partnerships and associations is shown below.66 Table 1: Review of EU research projects and demonstrations Project

Time

Summary

frame 1st phase –

Partnership between the European hydrogen industries set up

integrated

1998-2000

to provide inputs for harmonised procedures for approval of

Hydrogen Project

2nd phase –

hydrogen fuelled vehicles.

(EIHP)

2001-2004

Draft proposals were developed on:

The European

•

regulations for hydrogen fuelled road vehicles

•

design concepts for refuelling stations using course risk

assessments •

guidelines

for

design,

installation,

operation

and

maintenance of gaseous hydrogen stations 63

The University of Glamorgan, Renewable Hydrogen Research & Demonstration Centre, Baglan Energy Park, South Wales. The Hydrogen Centre, accessed 18.11.11. Available on

64 65 66

Calculated at an exchange rate of €0.79 ( 13.08.12). Calculated at an exchange rate of €0.79 ( 13.08.12).

Pritchard, D. K., Fletcher, J. E., Hobbs, J. W. A review of the regulatory framework around hydrogen refuelling. Health & Safety Laboratory, 2007; NATURALHY – Using the existing natural gas system for hydrogen, accessed 24.11.11. Available on

29

Hydrogen – Untapped Energy? The European

2004 till date

Set up to bring together all relevant stakeholders in an effort

Hydrogen and Fuel

to co-ordinate hydrogen and fuel cell research, development

Cell Technology

and deployment programmes on European, national, regional

Platform (HFP)

and local levels. Tasks carried out included: •

defined the technological and market developments to

create a hydrogen-oriented energy system by 2050 •

published an implementation plan for the programme for

2007 to 2015 •

created a European public-private partnership – Joint

Technology

Initiative

(JTI)

which

allows

more

efficient

organisation of research and development in Europe HyApproval

2005-2007

Project was set up to make a handbook for the approval of hydrogen refuelling stations that could be used to certify public hydrogen filling stations in Europe.

HyFLEET:CUTE

2007 till date

Successor to the CUTE project which closed in March 2006. CUTE was executed to demonstrate the feasibility of creating an innovative, high-energy efficient, clean urban public transport system. Objectives for the HyFLEET:CUTE project included: •

development, optimisation and testing of new and existing

hydrogen infrastructure •

operation of 33 fuel cell powered buses in nine cities on

three continents around the world including Amsterdam, Barcelona, Hamburg, London, Madrid and Berlin Hychain-Minitrans

2007-2012

Project was aimed at the deployment of 150 small urban vehicles,

including

small

utility

vehicles,

minibuses,

wheelchairs, scooters and cargo-bikes, in 4 regions of Europe. Objectives included: •

developing an innovative logistic procedure of refilling

vehicles with hydrogen HyLights

2006-2009

A co-ordinated programme set up to prepare European hydrogen

and

fuel

cell

demonstration

projects.

Tasks

included: •

developing an assessment framework for concluded and

ongoing projects •

establishing a projects database and identifying necessary

financial and legal steps for new projects HySafe

2004-2009

The Safety of Hydrogen as an Energy Carrier project was set up by the European Network of Excellence to focus on the safety issues relevant to the commercialisation of hydrogen. The objectives included: •

integrating and harmonising the fragmented research base

in the EU and contributing to the development of safety requirements, standards and codes of practice

30

Hydrogen – Untapped Energy? HyWays

2004-2007

This project created a roadmap, based on country specific analysis of the participating countries, for the introduction of hydrogen in the European energy system. Some of the conclusions from the project were: •

until 2030 hydrogen production from fossil fuel with CCS

is expected to be the most important production source in Europe •

for the foreseeable future hydrogen infrastructure build up

is likely to be comprised of both central and onsite hydrogen production HarmonHy

2004-2006

Projects were set up to make an assessment of hydrogen and fuel cell related regulations and standards activities, paying particular attention to Europe. The main aim of the projects was

to

encourage

agreement

on

issues

pertaining

to

standards and regulations. Some of the conclusions from the project were: • be

to achieve global harmonisation, work on standards should performed

at

international

level

by

recognisable

organisations i.e. ISO, IEC •

lack of standards on material compatibility for high

pressure systems and nothing on the operational aspects of refuelling NATURALHY

2004-2009

Project explored the potential of using the existing natural gas transmission

and

distribution

system,

and

end-user

appliances, to deliver hydrogen. Here are some of the major findings from the project: •

effects on Natural Gas pipeline materials caused by

hydrogen can be mitigated by appropriate measures •

material investigations revealed that additional measures

would be required to ensure the integrity of steel pipelines; when hydrogen is transported using the existing Natural Gas system •

escapes of natural gas/hydrogen mixtures within buildings

behave in a similar way to Natural Gas •

gas concentration and accumulation increases are slight

for hydrogen addition up to 50% by volume •

the severity of explosions within buildings are slight for

hydrogen addition up to 20% by volume •

for pipeline operators the main hazard posed by the failure

of transmission pipelines is that of a large fire

31

Hydrogen – Untapped Energy?

4.3 Global outlook USA The US Department of Energy (DOE)67 published a strategic plan for the research, development and demonstration of hydrogen and fuel cell technologies. The report reiterates the North Americans' commitment to hydrogen and fuel cells on the back of a series of stalled projects. One such project is the California Hydrogen Highway Network (CAH2Net), initially set up in 2004 to build 50-100 hydrogen refuelling stations by 2010. The initial goals have since been scaled back due to federal budget cuts and CaH2Net is to have only 8 stations completed by the end of 2012, a dramatic decrease in the initial capacity.68 The DOE report, however, suggests that hydrogen and fuel cells could provide up to 900,000 new jobs in the US by 2030-2035. It stresses that growing global interest in hydrogen and fuel cell technologies shows the need for continued investment in the area for the US industry to remain internationally competitive. Germany Described by the National Organisation for Hydrogen and Fuel Cell Technology (NOW GmbH)69 as the leading European country in the field of hydrogen and fuel cell technologies, Germany is investing heavily in technology that will see it become the first country in the world with a nationwide hydrogen refuelling infrastructure. The joint effort is by the federal government, industrial gas and auto manufacturers, and various universities and research bodies. Construction will begin in 2012 for stations in Stuttgart, Berlin, and Hamburg, as well as along 2 routes that cross the country north-south and east-west.70 Germany’s accelerated interest in hydrogen also comes on the back of plans by the government to phase out its 17 nuclear power plants by 2022. This has led to a stepchange in the demand for renewable energy sources with the renewable contribution towards electricity generation expected to double by the end of 2012, bringing it to 35%. According to German Chancellor Angela Merkel, hydrogen is an alternative for 67

U.S. Department of Energy, the Department of Energy Hydrogen and Fuel Cells Program Plan. An integrated strategic plan for the research, development, and demonstration of hydrogen and fuel cell technologies, September 2011, accessed 23.11.11. Available on .

68

Fuel Cell and Hydrogen Energy Association. Europe, Asia plan hydrogen highways – U.S. should take note, 8th September 2011, accessed 23.12.11. Available on .

69

National Hydrogen and Fuel Cell Technology Innovation Programme (NIP), accessed 25.11.11. Available on