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October 2002 Number 186

PROSPECTS FOR A
HYDROGEN ECONOMY
There is increasing interest in the use of hydrogen as An energy carrier
the basis for an energy system with low carbon dioxide Unlike oil, gas and coal, hydrogen does not exist in large
emissions. Hydrogen could be used as a fuel for road quantities in nature in a useful form. Like electricity, it is
transport, distributed heat and power generation, and an ‘energy carrier’, which must be produced using energy
for energy storage. This has led to discussion of a from another source. Hydrogen has an advantage over
‘hydrogen economy’ – widespread and diverse electricity, however, in that it can be stored more easily.
production and use of hydrogen. This briefing outlines This allows its use as a vehicle fuel, for electricity and
the basis of interest in hydrogen and examines heat generation and as a storage medium for electricity
technologies for its production, handling and use. Policy generated from intermittent renewable sources.
issues surrounding technology and market development
of hydrogen are also considered. Production
Hydrogen can be produced from a wide range of sources
Background by a number of different routes (see box on page 2).
Hydrogen is a commonly used industrial gas, which is These include:
produced for use in the chemical and other industries, • from hydrocarbons such as coal, oil and natural gas
and in refineries for fuel processing. The idea of using • from biomass and wastes
hydrogen for energy is not new. It has been used both • by electrolysis of water, using electricity produced from
industrially, domestically (town gas, used in the UK until fossil fuels, nuclear, or renewable energy.
the 1950s, comprised 50% hydrogen) and as rocket fuel.
Interest in hydrogen as a vehicle fuel dates back to the While hydrogen has minimal environmental effects where
1800s, but heightened during the oil crises of the 1970s it is used, there may be impacts associated with its
and with technological advances in the 1980s. production. For instance, production of hydrogen from
fossil fuels leads to carbon dioxide (CO2) emissions, the
Current interest in hydrogen stems from environmental principal cause of global climate change, and also to
and energy policy concerns including global climate resource depletion. The overall CO2 emissions may be
change, local air quality, noise and security of energy lower than if conventional technologies (such as a petrol
supply, together with breakthroughs in fuel cell internal combustion engine) were used2, and there are
technology (see page 2). Hydrogen can provide power also lower emissions of local air pollutants.
with minimal air pollutant and zero carbon dioxide
emissions at the point of use. For instance the Energy It may be possible to capture and store the CO2 produced
Saving Trust (EST)1 has referred to the use of hydrogen in in biological or geological sinks, such as forests or
fuel cell vehicles as ‘the most promising option for zero underground reservoirs. However, CO2 emissions would
carbon road transport’. Also, because there are many be negligible if hydrogen were produced by electrolysis
possible production routes and uses for hydrogen, it using nuclear energy, or renewable energy sources.
could enhance security of energy supplies.
postnote October 2002 Number 186 Prospects for a hydrogen economy Page 2

Hydrogen production technologies Hydrogen storage technologies


• Steam reforming – this is the most common method Compressed gas
Here, a hydrocarbon gas, often methane, is mixed with Compressed hydrogen is generally stored in cylindrical tanks
steam at a high temperature and pressure, in the at pressures of around 200 bar (around 200 times
presence of a catalyst, to produce hydrogen and carbon atmospheric pressure). Low pressure storage, either in tanks
dioxide. The hydrocarbon gas can also be produced or underground, can be used for very large volumes. On-
from biomass products by heating to high temperatures board storage systems for vehicles have been demonstrated
with little oxygen present (gasification). at pressures of up to 700 bar, using tanks made from
• Partial oxidation – hydrogen can be produced by composite materials. Compressed storage is the cheapest
reacting heavier hydrocarbons such as oil, coal, and method, however storage density is low. Higher storage
some biomass products, with oxygen and steam. This is pressures increase the storage density, but also the costs of
a commercially available process and is of interest for the system and the safety requirements.
countries with large coal resources.
• Electrolysis – an electric current is used to split water Liquid hydrogen
into hydrogen and oxygen. Alkaline electrolysis, the Hydrogen can be stored as a liquid at -253 °C in insulated
most common form, has been used industrially for over pressure vessels. The liquefaction process itself is energy
80 years, but is now used on a large scale only where intensive, but liquid hydrogen has a very high energy
cheap electricity (e.g. from hydroelectric schemes) is density, over three times that of petrol. Highly insulated
available. There is significant interest in very small scale tanks are needed to minimise evaporation, and these can
(e.g. domestic) electrolysers. make on-board liquid storage relatively bulky and heavy.
• Biological methods – several types of algae and
bacteria can produce hydrogen by photosynthesis or by Chemical storage
fermentation. Some methods may have commercial Metal hydrides are metal alloys that can store hydrogen
potential, but most are at the R&D stage. within their chemical structure. Hydrogen is bonded to the
• More prospective technologies – these include surface of small particles of the material and is only released
photoelectrolysis, the use of a solar cell that splits water when heat is supplied. Hydrogen can also be stored within
directly, without use of electricity. carbon materials and in the form of liquid hydrides.

Storage and distribution Fuel cells can be used to provide electricity on a small
Hydrogen contains more energy on a weight for weight scale for homes and businesses, and can be included in
basis than any other substance. However it is also the combined heat and power (CHP) schemes. Stationary
lightest chemical element, and so has very low energy systems have fewer constraints on storage space and
per unit volume. For example, at 200 times atmospheric system weight than vehicle systems and require less
pressure, one litre of natural gas contains 5 times more infrastructure development.
energy than a litre of gaseous hydrogen. The box opposite
outlines a number of methods for storing a useful amount For transport, hydrogen can be burned in an internal
of energy in a small volume, e.g. in a vehicle. The most combustion engine (ICE), in the same way as petrol or
suitable storage method depends on factors including the natural gas. BMW currently uses this technology to
volume to be stored, the storage time, space restrictions power a fleet of demonstration vehicles. This produces
and end-use requirements. For example, in buses, water as the main byproduct, but also small amounts of
compressed hydrogen can be stored in tanks on the roof. oxides of nitrogen, an air pollutant. Dual fuel ICE vehicles
have been produced to run on both hydrogen and petrol.
Hydrogen stored by any of the methods mentioned in the
box opposite can be transported by road, rail or sea. Hydrogen can also be used to power fuel cell vehicles.
Compressed hydrogen can be transported via dedicated Using hydrogen in fuel cells is more efficient than
pipelines. There has also been discussion of mixing combustion, with efficiencies of up to 45%, compared
hydrogen into natural gas in the pipeline network. with up to 25% for a dual fuel ICE. Therefore a fuel cell
car could travel over twice as far as a dual fuel ICE car
To refuel vehicles with hydrogen, new dispensing on the same amount of hydrogen. Hydrogen ICE and fuel
technology will be required, to which consumers will cell cars are currently at the demonstration stage (see
need to adapt. Both gaseous and liquid hydrogen box on page 3). Eight major car manufacturers are
refuelling are sufficiently developed that refuelling could planning to introduce fuel cell cars by 2004-5. However,
take place in a few minutes, with no leakage. The world’s there are still issues of cost, reliability and lifetime, such
first public liquid hydrogen filling station uses a robotic that fuel cell cars are not expected to reach mass
dispenser, without the driver having to leave the car. markets until after 2015. As there is considerable
experience with ICEs, some consider that they may be
Use important in the interim.
Hydrogen can be used to provide electricity and heat
either through use in a fuel cell (see box on page 3) or Safety
through combustion. A fuel cell is a device similar to a Like most other fuels, hydrogen is flammable, and
continuously recharged battery, which generates potentially hazardous if handled incorrectly. It is no more
electricity by combining hydrogen with oxygen from the hazardous than other fuels, but has different properties
air. The only byproduct is water. Hydrogen fuel cells are which must be understood in order to store, transport
silent, have no moving parts and produce no air and use it safely (see box on page 3).
pollutants.
postnote October 2002 Number 186 Prospects for a hydrogen economy Page 3

Fuel cells Hydrogen safety


A fuel cell combines hydrogen with oxygen from the air in a If a hydrogen vehicle were involved in a collision in an open
chemical reaction, producing electricity. One type of fuel space, there would be less risk than with a petrol vehicle.
cell for transport, (the proton exchange membrane fuel cell) This is because hydrogen is very light, and so any leak
consists of two electrodes, separated by a membrane. Many would dissipate rapidly into the air, reducing the risk of fire
fuel cells are connected to provide the power needed. or explosion. Hydrogen is not toxic, so a leak would not
Use cause environmental damage. In addition to this, hydrogen
storage tanks are significantly tougher than petrol tanks, and
so are less likely to cause a large leak.
Electric current In a confined space, hydrogen could lead to fire or explosion
if mixed with air. Any fire started would burn out quickly as
the hydrogen dissipated. Some studies have suggested that
hydrogen vehicles would have lower risks than petrol
Membrane vehicles in confined spaces as petrol leaks would create a
Heat
larger cloud of flammable gas. Hydrogen burns with little
Electrodes
radiation of heat, so nothing would burn unless it were
Catalyst immediately next to the flame. Sensors would be needed to
detect any slow leakage of hydrogen, e.g. in a garage, as
Water hydrogen is a colourless, odourless gas.

Source: POST
Hydrogen
Conditions for transition
Air
A transition to a hydrogen economy is uncertain, and not
inevitable. Transitions have been investigated using
Current projects scenarios for future energy systems. Some scenario
Projects demonstrating the use of hydrogen as a vehicle fuel exercises, such as those prepared for the PIU Energy
are in operation worldwide. For example, the Munich Airport Review, assumed that use of hydrogen would require
Hydrogen Project, opened in 1999, supplies hydrogen to large scale infrastructure development. It was not clear
cars and airport buses. The California Fuel Cell Partnership, how this would be developed, given that many national
also established in 1999, comprises 28 government and
infrastructures were developed by monopolies or public
industry groups, testing and promoting fuel cell vehicles. The
EU Clean Urban Transport for Europe project will provide bodies. This uncertainty resulted in infrastructure
fuel cell buses in 10 European cities in 2003, including 3 in development being considered to be the primary barrier
London. In the UK, projects include a stationary hydrogen to use of hydrogen, and so widespread use projected only
fuel cell used in Woking to provide heat, power, cooling and for the long term, after 2050.
clean water for a leisure complex, with hydrogen generated
by reforming of natural gas. The Urban Solar Hydrogen
Economy Realisation Project in Cambridge will use However, several other studies (e.g. the Foresight
electricity from a photovoltaic system to produce hydrogen Fuelling the Future exercise) consider that such a
for buses. Iceland intends to become the world’s first wholesale infrastructure change is not necessary. It is
hydrogen economy, with hydrogen produced from renewable argued that development could start from niche markets
electricity sources (geothermal and hydroelectricity).
and ‘islands’ of hydrogen availability and so would not,
for example, involve switching all filling stations to
hydrogen at the same time. Providing hydrogen at a local
Issues fleet vehicle depot or as part of CHP schemes could
Visions and scenarios
expand to supplying vehicles in a local area. Once several
There is an emerging consensus that hydrogen could
schemes had built up, networks could be formed.
have a key role in energy systems. The Government’s
Powering Future Vehicles strategy states that “the
A UK development path
ultimate low-carbon destination looks likely to be fuel
Despite these differences of view, it is widely thought
cells using renewably produced hydrogen”. A hydrogen
that hydrogen use in the UK may begin with transport, in
economy would include generation of hydrogen from
particular for fuelling fleet vehicles and buses. Buses
diverse and distributed sources, used to power transport,
have fixed routes and can be refuelled and maintained at
homes and industry. Generation would be possible at a
depots. Using hydrogen in stationary applications such as
range of scales, from large centralised plants using
small CHP schemes is thought likely to develop at the
technologies such as steam reforming, to forecourt or
same time, although there is some uncertainty as to the
even domestic electrolysis and reforming units. Hydrogen
level of contribution in the next decade.
could be distributed from the larger sites by road,
pipeline, or sold in solid storage units.
The next step would then expand transport use of
hydrogen to cars and other light vehicles. The use of
The large number of possible production routes gives
hybrid vehicles, which have a battery as well as a fuel
several benefits. Numerous organisations and even
cell or conventional engine may act as a stepping-stone
individuals could become producers of hydrogen, forming
to fuel cell commercialisation, as expertise and
a new and diverse economy. The security of supply of
standardisation of components develops. Hybrid vehicles
transport fuel would be enhanced, especially if hydrogen
give a significant efficiency improvement over current
were produced from UK renewable electricity, biomass,
technologies.
waste or gas supplies.
postnote October 2002 Number 186 Prospects for a hydrogen economy Page 4

Strategic approach Other fiscal incentives could include:


Benefits of a hydrogen economy, and barriers to its • variable vehicle excise duty (VED) for cars with very
development, cut across policy on energy, transport, air low emissions, or zero VED for zero emission vehicles
pollution, planning, agriculture and waste. Proponents of • variable company car tax for low emission vehicles.
hydrogen (e.g. IPPR and the Carbon Trust3) have argued
for a high-level long term strategic approach to Use of hydrogen in fleet vehicles could be promoted by
developing a hydrogen economy, identifying key use in public authority vehicles and schemes to support
challenges, setting target dates for development and companies converting a proportion of their fleet,
deployment, and coordinating UK and EU projects and potentially with removal of night time delivery bans in
targets. This has begun with the Greater London urban areas for quiet vehicles. It has also been suggested
Authority’s launch of the London Hydrogen Partnership in that direct grants should be made available to support
2002, which will develop a plan for use of hydrogen in infrastructure changes. In the private vehicle market,
the city and may provide experience for a national plan. uptake of new vehicles could be supported by direct
grants, such as those administered under the Powershift
Incentives programme for gas, hybrid and electric vehicles.
Transition to a hydrogen economy could be promoted
using targets, regulations, standards, planning guidance, Technological development
fiscal measures, grants and public procurement. The Engineering and Physical Sciences Research Council
has funded the UK hydrogen energy network, to promote
Targets for emissions reduction promote environmental hydrogen research. Beyond a network, some have called
improvement without being technology specific. Powering for a dedicated programme to coordinate and fund UK
Future Vehicles calls for 600 new ‘low-carbon’ buses per research efforts and support demonstration projects as in
year by 2012. The EST considers, however, that long the US, Germany and Japan. The programme could also
term emissions targets will not be met unless hydrogen in include feasibility studies to identify the potential role for
particular is actively supported now; it recommends that hydrogen in different sectors and areas and manage UK
Government should work with bus and fuel companies, participation in EU and international projects.
so that by 2010, 5-10% of new buses use hydrogen fuel
cells (about 150-300 buses). Powering Future Vehicles Public acceptance
also sets out intentions for longer term targets for new Public awareness of the benefits of using hydrogen and
vehicles to meet ‘ultra-low’ carbon standards. However, provision of information on hydrogen safety are likely to
the term ‘ultra-low’ has not yet been defined and so it is be key to acceptance of the technology. Demonstration
unclear whether this will promote hydrogen technologies. projects involving hydrogen use in buses and public
buildings have been well accepted elsewhere in the world
Other approaches include: and are considered to be one of the best ways to
• enabling local authorities to adopt mandates requiring introduce the technology to a wide range of people.
zero emissions from a proportion of their bus fleet,
enabling them to meet local air quality objectives Overview
• harmonisation of UK standards for storage and use of Hydrogen is widely considered to have a strong potential
hydrogen with international standards being developed for use in future energy systems, meeting climate change,
• support for hydrogen infrastructure development air quality, noise and resource use goals. Hydrogen
through planning guidance (e.g. the ODPM’s current technology is well established in industry and further
revision of renewable energy planning) commercialisation for vehicles and stationary uses is
• electricity market systems to allow generators to expected in the next few years. However, the need for
produce electricity for hydrogen production, grid export cost reduction, demonstration, and infrastructure
and local distributed generation development mean that mass markets are unlikely before
• widening of agricultural support schemes to include 2015. Nevertheless, many have called for coordinated
hydrogen production from biomass energy crops. research and demonstration now and a clear strategy to
enable future infrastructure and market development.
Fiscal incentives can also be used. It has been proposed
Endnotes
that zero fuel excise duty on hydrogen would promote the
1 The Energy Saving Trust is a non-profit organisation aiming to
early stages of market development and would reflect the
reduce CO2 emissions, funded by Government and the private sector
lower environmental impacts of hydrogen use. Under the
2 Hybrid vehicles (e.g. diesel/battery) can also reduce CO2 emissions
Government’s Green Fuel Challenge, no fuel duty will be 3 The Institute for Public Policy Research (IPPR) is a UK think tank.
levied on a pilot project using hydrogen in fuel cell buses. The Carbon Trust is an independent non-profit company set up by
Subject to the outcome of this project, the Government the Government to take the lead on low carbon innovation in the UK
intends to exempt hydrogen from duty for a limited period
to encourage development and early take-up. As POST is an office of both Houses of Parliament, charged with providing
hydrogen use expands, variable fuel excise duty could be independent and balanced analysis of public policy issues that have a basis in
science and technology. POST is grateful to Jo Howes and Imperial College for
used to differentiate between hydrogen derived from Energy Policy and Technology for the research undertaken in the preparation of
different sources depending on its environmental impact. this briefing note. A longer report is available on the POST website.
Inclusion of hydrogen production in the Climate Change Parliamentary Copyright 2002
Levy could also achieve this aim. The Parliamentary Office of Science and Technology, 7 Millbank,
London SW1P 3JA Tel 020 7219 2840

www.parliament.uk/post/home.htm

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