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Building a Hydrogen Economy in Virginia by sdfgsg234


									Building a Hydrogen Economy in Virginia
Suggested Strategies

               Virginia Hydrogen Economy Roundtable
Produced by:
               This Virginia hydrogen plan and hydrogen vision were developed by the Virginia Hydrogen Economy
               Roundtable, a forum created in 2002 comprised of representatives from more than thirty energy- and
               transportation-related industries, federal and Virginia government agencies, Virginia academic
               institutions, and non-governmental organizations. The creation of Virginia’s hydrogen vision and the
               recommendations made in the hydrogen plan are the result of input gathered from in-depth Roundtable
               discussions held from late 2005 through the first half of 2006.
            Executive Summary ....................... 1       PART 4.0
 Table of                                                     Demonstration Projects .... . . . . . . . . . . . . . 15
Contents    PART 1.0                                            4.1 OPTION 1: Develop a Hydrogen
            Introduction ................................ 3         Highway Corridor ...... . . . . . . . . . . . . . 15
              1.1 Virginia’s Transition to a Hydrogen           4.2 OPTION 2: Consider Discrete
                  Economy in the 21st Century......... 4            Demonstration Project Grants . . . . . . 16
              1.2 Benefits of a Hydrogen Economy .... 4         4.3 OPTION 3: Pursue External
              1.3 Virginia’s Status in                              Funding Opportunities with
                  the Hydrogen Economy .............. 5             Existing Resources ..... . . . . . . . . . . . . . 17

            PART 2.0                                          PART 5.0
            Educating Virginia’s K-12 Students .... 7         Partnership Opportunities . . . . . . . . . . . . 19
              2.1 OPTION 1: Commit Resources                    5.1 OPTION 1: Create a Formalized
                  for Education of K-12 Students ...... 7           Virginia Hydrogen Network . . . . . . . . . 20
              2.2 OPTION 2: Implement a Hydrogen                5.2 OPTION 2: Join Forces with
                  Curriculum Teacher Training Pilot                 Existing Regional Partnerships . . . . . 21
                  Project for Virginia Middle Schools .. 8      5.3 OPTION 3: Support Partnerships
              2.3 OPTION 3: Implement the Green                     Upon Request........... . . . . . . . . . . . . . 21
                  Box Program in 6th Grade ............ 8
                                                              PART 6.0
            PART 3.0                                          Policy Setting ................. . . . . . . . . . . . . 23
            University Research & Development.. 11              6.1 Designate a Statewide Hydrogen
              3.1 OPTION 1: Create a Statewide                      Commission or Task Force . . . . . . . . . . 23
                  Hydrogen R&D Consortium ........ 11
              3.2 OPTION 2: Universities Form                 APPENDIX:
                  Voluntary Partnerships .............. 12    A Vision of Virginia’s Transition
                                                              to a Hydrogen Economy in the
              3.3 OPTION 3: Universities Continue             21st Century ................... . . . . . . . . . . . . 25
                  Independent R&D Efforts ........... 12
            As concern for energy security grows, so does the          A range of options is offered for each of the
Executive   level of interest at the national and state levels. Fuel   first four action items and several possible
Summary     cells and hydrogen-sourced energy are regarded             approaches to coordinate policy setting and
            as viable long-range technologies that one day             an incentives strategy are discussed:
            could alleviate the United States’ dependence on
            foreign oil, reduce harmful emissions, and create          Educating Virginia’s K-12 Students
            thousands of new jobs. Forty-seven states and the          • Option 1: Commit Resources for the
            District of Columbia have fuel cell or hydrogen              Education of K-12 Students
            legislation, technology demonstrations or other            • Option 2: Implement Pilot Hydrogen Curriculum
                                                                         and Teacher Training Program for Middle Schools
            hydrogen initiatives in place or under consider-
                                                                       • Option 3: Implement the Green Box
            ation today. Many are laying the groundwork for              Program in 6th Grade Classrooms
            adoption of these technologies in regulations and
            energy standards. With a commitment of resources,          University Research &Development
            Virginia has the potential to play a significant           • Option 1: Create a Statewide Hydrogen
            role in the building of a hydrogen economy in                R&D Consortium
            the United States.                                         • Option 2: Universities Form Voluntary Partnerships
                                                                       • Option 3: Universities Continue Independent
            This plan recommends actions to foster the                   R&D Efforts
            development of a hydrogen economy in Virginia.
            A range of three levels of effort and commit-              Demonstration Projects
            ment is offered: 1. Commit significant resources           • Option 1: Develop a Hydrogen Highway Corridor
            2. Leverage existing efforts and 3. Stay informed          • Option 2: Consider Discrete Demonstration
            and maintain current level of effort. The recom-             Project Grants
            mendations have been developed by the Virginia             • Option 3: Pursue external funding
            Hydrogen Economy Roundtable (the Roundtable), a              opportunities with existing resources
            forum created in 2002 comprised of representatives
            from more than thirty energy and transportation            Partnership Opportunities
            related industries, federal and Virginia government        • Option 1: Create a Formalized Virginia
                                                                         Hydrogen Network
            agencies, Virginia academic institutions, and non-
            governmental organizations.                                • Option 2: Join Forces with Existing Regional
            The following five actions are recommended                 • Option 3: Support Partnerships upon Request
            as priorities to help focus Virginia’s continuing
            efforts to build a hydrogen economy:                       Policy Setting and Funding
            • Educate our future workforce, focusing on                • Create a Hydrogen Policy Commission to coordinate
                K-12 education                                           policy setting, review hydrogen-related initiatives and
                                                                         establish a Hydrogen Demonstration Incentive Fund.
            • Leverage the research and development (R&D)
                potential of Virginia’s academic institutions          Creating an environment in Virginia in which
            • Invest in hydrogen demonstration projects                hydrogen-focused economic development can
                with high visibility                                   thrive will require a commitment to pursuing
            • Foster partnership building                              these measures.
            • Coordinate policies and incentives to drive the
                building of a hydrogen economy in Virginia

            Building a Hydrogen Economy in Virginia: Suggested Strategies                                                  p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
                                                 As concern for energy security grows, so does        • Michigan has committed $56 million for
                       PART 1.0                  the level of interest at the national and state        its NextEnergy program, which focuses on
                Introduction                     levels. Fuel cells and hydrogen-sourced energy         alternative energy technologies – espe-
                                                 are regarded as viable long-range technologies         cially for the automotive sector.
                                                 that one day could alleviate the United States’      • Florida is among the states that have
                                                 dependence on foreign oil, reduce harmful              introduced legislation to provide extensive
                                                 emissions, and create thousands of new jobs.           incentives for research, economic develop-
                                                 Forty-seven states and the District of Columbia        ment, and market stimulation.
                                                 have fuel cell or hydrogen legislation, technology   • Numerous other states, including New
         Virginia Hydrogen Economy               demonstrations or other hydrogen initiatives           York and Massachusetts, are spending
   Roundtable Member Organizations:                                                                     tens of millions of dollars per year on
                                                 in place or under consideration today. Many
      Air Products | Avalence | Ballard Power
                                                 are laying the groundwork for adoption of              incentives to stimulate the adoption of
          Systems | BP | City of Chesapeake |
 City of Richmond - Public Utilities | Ecron     these technologies in regulations and energy           hydrogen-related technologies.2
    | Gas Technology Institute | GM | H2Gen      standards. With a commitment of resources,           This plan recommends actions to foster the
    Innovations | Hampton Roads Economic
     Development Alliance | Hampton Roads        Virginia has the potential to play a significant     development of a hydrogen economy in Vir-
      Hydrogen | Honorable William Haskins       role in the building of a hydrogen economy in        ginia. A range of three levels of effort and
    | James Madison University | MidAtlantic     the United States.
     Hydrogen Consortium | NASA | National                                                            commitment is offered: 1. Commit significant
       Hydrogen Association | North Carolina                                                          resources 2. Leverage existing efforts and 3.
          Advanced Vehicle Research Center |     Here are some examples of policies and funding
      North Carolina Solar Center | Northrop     levels in a selected group of states with aggres-    Stay informed and maintain current level
Grumman Newport News | Ohio Department           sive hydrogen initiatives:                           of effort. The recommendations have been
 of Development | Old Dominion University
                                                                                                      developed by the Virginia Hydrogen Economy
       | Plug Power | Princeron Group, Inc. |    • South Carolina has committed $3.6
   Propane Vehicle Council | Proton Energy           million annually to pursue hydrogen              Roundtable (the Roundtable), a forum created
      Systems | Science Museum of Virginia |
                                                     development. The governor’s budget               in 2002 comprised of representatives from more
            SENTECH, Inc. | Shell Hydrogen |
       U.S. Army | U.S. Department of Energy         earmarks $2 million per year for the Inter-      than thirty energy- and transportation-related
        | U.S. Navy | University of Maryland |       national Center for Automotive Research          industries, federal and Virginia government
   University of Virginia | Virginia Advanced                                                         agencies, Virginia academic institutions, and
  Shipbuilding and Advanced Carrier Center
                                                     (ICAR) in Greenville. Another $1 million
 | Virginia Clean Cities | Virginia Common-          would be funneled to the University              non-governmental organizations.
     wealth University | Virginia Department         of South Carolina’s hydrogen fuel cell
          of Education | Virginia Department         research program based in Columbia.              The following five actions are recommended
          of Environmental Quality | Virginia                                                         as priorities to help focus Virginia’s continuing
   Department of General Services | Virginia         And the state’s newly formed Hydrogen
Department of Mines, Minerals, and Energy            and Fuel Cell Alliance would get nearly          efforts to build a hydrogen economy:
   | Virginia Department of Transportation |         $368,000 annually.1                              • Educate our future workforce, focusing
   Virginia Economic Development Partner-
ship | Virginia Senate Staff | Virginia Tech |   • Ohio has committed $103 million over                   on K-12 education
Virginia’s Center for Innovative Technology          three years, including $75 million in            • Leverage the research and development
                                                     financing to make strategic capital                  (R&D) potential of Virginia’s academic
                              FOOTNOTES              investments, $25 million for R&D and                 institutions
            1              demonstration, and $3 million for worker         • Invest in hydrogen demonstration
          economy-south-carolina-receive-            training.                                            projects with high visibility
                                                 • California plans to invest at least $40            • Foster partnership building
            The South Carolina Hydrogen              million in state and private funds to build
      Economy: Capitalizing on the State’s           hydrogen refueling stations during the           • Coordinate policies and incentives to
       R&D Assets, Prepared for the South
                                                     next five years.                                     drive the building of a hydrogen
   Carolina Hydrogen Coalition and South                                                                  economy in Virginia
     Carolina Energy Office by Concurrent
      Technologies Corporation, July 2005.

                                                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                    p. 
                 1.1 Virginia’s Transition to a                      cal, economic, and institutional challenges
PART 1.0 cont.   Hydrogen Economy in the 21st Century                must be overcome. This plan recommends
 Introduction                                                        actions that the Commonwealth can take to
                 In 2005, both Houses of the Virginia General        expand the hydrogen economy in Virginia.
                 Assembly passed House Joint Resolution 711 and      The recommendations focus on opportuni-
                 Senate Joint Resolution 406, expressing support     ties that can be undertaken in the near-term
                 for a Hydrogen Energy Plan. The resolutions         (5 years) that provide a foundation for longer-
                 called for a plan that would develop a strategy     term development.
                 to address the hydrogen economy in Virginia.
                 As a result, the Virginia Department of Mines,
                                                                     1.2 Benefits of a Hydrogen Economy
                 Minerals, and Energy (DMME) in Spring 2005
                 tasked Virginia Clean Cities to work on these       The development of new hydrogen technolo-
                 elements of the resolutions, building on the        gies will require the involvement of private
                 hydrogen educational forum that had been            industry working in partnership with academic
                 established in 2002, the Virginia Hydrogen          research institutions. The opportunity for busi-
                 Economy Roundtable.                                 ness development and job creation to support
                                                                     a hydrogen economy is tremendous. Many
                 In late 2005, the Roundtable met to discuss the
                                                                     successful models have shown the significant
                 potential role for hydrogen systems in America’s
                                                                     impact that technology-based economic devel-
                 energy future. The intent of the meeting was
                                                                     opment (TBED) can have on a state and local
                 to identify a common Virginia vision of the
                                                                     economy. Silicon Valley in California and the
                 “hydrogen economy,” and to lay out a process
                                                                     Research Triangle in North Carolina demon-
                 for determining how to get there. The result of
                                                                     strate the economic growth potential that is
                 those discussions was the creation of Virginia’s
                                                                     possible with a technology development cluster.
                 Hydrogen Vision:
                                                                     Similarly, Virginia has the opportunity to play
                    Hydrogen is one of America’s and                 a significant role or, with a large commitment
                    Virginia’s clean energy choices. It is           of resources, a leadership role in the nation’s
                    flexible, affordable, safe, domestically         quest to transition to a hydrogen economy
                    produced, used in many sectors of the
                                                                     Use of hydrogen as an energy carrier in Virginia
                    economy, and throughout the Common-
                                                                     and the nation could help address concerns
                    wealth. The Hydrogen Economy sup-
                                                                     about energy security and supply reliability,
                    ports economic growth, environmental
                                                                     global climate change, and air quality. Hydrogen
                    protection, and energy security.
                                                                     can be derived from a variety of domestically
                 This vision guided the Roundtable in its devel-     available primary energy sources. It can provide
                 opment of the recommendations made in this          distributed power, enhancing energy reliability.
                 Virginia hydrogen plan. In-depth discussions        It could provide air quality benefits in Virginia’s
                 were held, and detailed input was gathered          congested transportation corridors by eliminating
                 from Roundtable members over the course of          vehicle tailpipe emissions through the use of
                 the first half of 2006.                             fuel cells and could offer economic benefits to
                                                                     a Commonwealth rich in agricultural resources
                 Virginia can play a significant role in the         and coal.
                 transition to hydrogen. Before hydrogen can
                 achieve its promise, however, an array of techni-

                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                     p. 
                 1.3 Virginia’s Status in the                              proton exchange membrane (PEM) fuel cell
PART 1.0 cont.   Hydrogen Economy                                          technology for use in generators, auxiliary power
 Introduction                                                              units, and ground support equipment. Military
                 The opportunity for hydrogen-based economic               contractors with significant R&D capacity, such
                 development is great in Virginia. Many of the tools       as Northrop Grumman, are actively involved
                 and other prerequisites are in place, including:          in technology research and development and
                 abundant natural resources, highly skilled technical      could be natural partners in Virginia’s hydrogen
                 workforce, world-class research universities already      development efforts.
                 engaged in hydrogen research and development,
                 public-private partnership potential, major interstate    Virginia is blessed with a strategic location
                 thoroughfares, military presence, large population        central to major U.S. population centers and
                 and tourist centers, proximity to the nation’s capital,   in close proximity to the nation’s capital. This
                 and hydrogen demonstration projects already on            could be a significant factor in the effort to
                 the ground. Virginia is in a position to be a hydrogen    attract hydrogen-related industry. Furthermore,
                 economy leader. Additionally, the high quality            the Interstate Highway infrastructure of Virginia
                 of life, along with its central location along the        is highly developed, including four north-south
                 eastern seaboard can help to attract new business         Interstate segments (I-95, I-85, I-81, I-77) and
                 and investment to the state.                              two east-west segments (I-66, I-64). Virginia’s
                                                                           location in the middle of the eastern seaboard
                 If the vision of a hydrogen economy is to come            greatly increases the number of travelers from
                 to fruition in Virginia, a concerted effort must          the north and south traversing its interstates.
                 be made to coordinate, focus, and guide hydro-            The road transportation sector could provide
                 gen-related activities to take best advantage             a large end-user market for hydrogen fuel.
                 of Virginia’s unique assets. This will help to            The poor air quality that comes with traffic
                 ensure a cohesive strategy in making future               congestion could be significantly improved
                 decisions about hydrogen development, and                 with the widespread introduction of hydrogen
                 will put Virginia in a position to realize the            or fuel-cell powered vehicles.
                 full potential that hydrogen-based economic
                 development could offer.                                  Significant challenges related to hydrogen
                                                                           production, delivery, and storage, and the need
                 Among Virginia’s strongest assets are premier             for education and outreach need to be addressed
                 research universities, which have existing pro-           if hydrogen is ever to play a role in the energy
                 grams involved in research and development                sector of Virginia and the nation. Recommended
                 (R&D) of hydrogen energy systems. Another                 actions for addressing some of these issues are
                 unique advantage is a strong military presence in         discussed throughout the remainder of this
                 the Commonwealth, which includes the world’s              hydrogen energy plan.
                 largest Navy base located in Norfolk, and a
                 number of other military installations, including         One of the greatest barriers to the development
                 Langley Air Force Base, located throughout the            of a hydrogen economy is the lack of public
                 state. The military often acts as a first adopter of      awareness about hydrogen – its potential ben-
                 new technologies. Military bases could serve as           efits and uses, its research and development
                 sites for early hydrogen fleet use and distributed        challenges, and safety and handling issues. If the
                 power through stationary fuel cells. Military             vision of a hydrogen economy is to be realized,
                 applications are very well suited to existing             kindergarten to grade 12 (K-12) students will

                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                          p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
                  need to be educated on hydrogen as they are          Conduct pilot teacher training workshops
      PART 2.0    our future workforce and potential end-users         based on hydrogen curriculum. The cur-
     Educating    of hydrogen. Virginia has a strong, highly           riculum would be introduced to students after
                  functional K-12 education system capable of          teacher training. NEED’s proven training model
Virginia’s K-12   incorporating a hydrogen education program.          and nationwide teacher network could be used
      Students    Educating the students of today builds the           to introduce the hydrogen curriculum to teach-
                  workforce of tomorrow.                               ers throughout the Commonwealth through
                                                                       regional workshops. The one-day teacher
                                                                       workshops are designed to meet state standards
                                                                       and provide educators with tools to return to
                  2.1 Option 1: Commit Resources                       their classrooms to integrate energy into their
                  for the Education of K-12 Students                   classroom plans and to make hydrogen a part
                                                                       of their curriculum. NEED recommends that the
                  Student education is a key component to broad-       workshops be hosted for middle and secondary
                  casting the hydrogen message and developing          level educators as well as technology teachers.
                  a knowledgeable, involved hydrogen support           For a program to cover the entire state, a series
                  network. Without a targeted technology- and          of seven one-day workshops is recommended
                  applications-level education program for stu-        in the following areas: Abingdon, Chesapeake/
                  dents and teachers, our past will continue to        Virginia Beach, Lynchburg, Manassas, Rich-
                  define our future. Long-term resources should be     mond, Roanoke, and Winchester.
                  committed to educate K-12 students. Hydrogen
                  curriculum has been developed at the federal         2.1.1 Funding Level
                  level through efforts of the US Department           H2 Curriculum Workshops:
                  of Energy (DOE). This curriculum could be            $6,000 each x 7 workshops = $42,000
                  adapted and integrated into Virginia’s K-12
                  curriculum.                                          Curriculum Materials:
                                                                       $36,800 each x 7 workshops = $257,600
                  Develop and introduce a hydrogen middle
                  school curriculum in Virginia schools in             Total for Seven regions: $300,000 for seven
                  the near-term (8th grade statewide is recom-         teacher training workshops, which includes
                  mended). The National Energy Education               H2 Education kits with classroom materials
                  Development (NEED) Project, under a grant from       for approximately 300 teachers. This budget
                  DOE has developed and pilot tested in the State of   includes substitute teacher reimbursement if
                  New York a middle school hydrogen curriculum,        needed at $100 per person plus meals.
                  H2 Educate. This hydrogen module correlates to
                  Virginia’s current standards of learning (SOL)       2.1.2 Funding Sources
                  for middle schools. Virginia could leverage the      Commonwealth of Virginia, such as through
                  resources already invested in the development        the Virginia Department of Education, private
                  of this curriculum to tailor it to the needs         industry sponsorship
                  of Virginia.

                  Building a Hydrogen Economy in Virginia: Suggested Strategies                                    p. 
                  2.1.3 Key Responsible Parties                         2.2.2 Funding Sources
 PART 2.0 cont.   National Energy Education Development                 DMME
     Educating    (NEED) Project, DMME, Virginia Department
                  of Education, Science Museum of Virginia.             2.2.3 Key Responsible Parties
Virginia’s K-12
                                                                        National Energy Education Development
      Students    2.1.4 Likely Results                                  (NEED) Project, DMME, Virginia Department
                  If funding is provided to conduct 7 teacher train-    of Education, Science Museum of Virginia.
                  ing workshops throughout the Commonwealth,
                  over 300 Virginia teachers could be trained to        2.2.4 Likely Results
                  implement a hydrogen curriculum unit in their         A single pilot teacher training workshop
                  classrooms. Middle school students educated in        could not implement hydrogen education on
                  the basic elements of a hydrogen economy will         a widespread basis. Only 40 Virginia teachers
                  have an increased level of understanding, which is    would be trained and provided with materials
                  critical to ensuring a capable future workforce and   to implement the hydrogen curriculum unit
                  informed end-users of hydrogen applications.          in their classrooms. A successful pilot may
                                                                        provide justification to expand the training
                  2.1.5 Timeline                                        workshops and offer them in regions throughout
                  Teachers trained within one year of funding.          the Commonwealth, as described in Option 
                  Students introduced to curriculum beginning           (section 2.1) above.
                  year 2.
                                                                        2.2.5 Timeline
                                                                        Year 1 (2007)
                  2.2 Option 2: Implement a
                  Hydrogen Curriculum Teacher
                  Training Pilot Project for Virginia                   2.3 Option 3: Implement the
                  Middle Schools                                        Green Box Program in 6th Grade
                  Conduct a pilot of the hydrogen curriculum and        Implement the Green Box program in
                  teacher training workshop for middle schools dis-     Virginia’s 6th grade classrooms. The Green
                  cussed under Option  (section 2.1) above. Rather     Box project is a partnership for production of
                  than seven regional teacher training workshops,       new educational materials to support Virginia
                  this option would require funds only for one          teachers in meeting the new 6th grade standards
                  reduced-scope teacher training workshop.              on environmental science and environmental
                                                                        policy decisions. It is administered by the Vir-
                  2.2.1 Funding Level                                   ginia Department of Environmental Quality
                                                                        (DEQ). A hydrogen component will examine
                  Total for Pilot: $30,000 for initial training
                                                                        and investigate the concept of environmental
                  session for 40 participants including 40 Hydro-
                                                                        resource management and facilitate under-
                  gen Education kits with classroom materi-
                                                                        standing the role of hydrogen resources in the
                  als. This budget includes substitute teacher
                                                                        world, how living systems operate and how
                  reimbursement if needed at $100 per person
                                                                        people can use resources in a sustainable way
                  plus meals.
                                                                        using various Virginia case studies.

                  Building a Hydrogen Economy in Virginia: Suggested Strategies                                    p. 
                  2.3.1 Funding Level                                2.3.4 Likely Results
 PART 2.0 cont.   $2,000 for the expense of development and          The Green Box program will enhance teachers’
     Educating    publication of educational materials introduc-     ability to deliver the requirements called for
Virginia’s K-12   ing the science and technology of the hydrogen     in the Standards of Learning. It will teach stu-
                  economy to be incorporated into the Green Box      dents about the public policy decision-making
      Students    project. The Green Box project is currently in     process, management of renewable resources
                  final development for 6th grade classrooms         and nonrenewable resources, and the cost-
                  in Virginia.                                       benefit tradeoffs in conservation policies. This
                                                                     project will reinforce student understanding of
                  2.3.2 Funding Sources                              the importance of the Earth’s natural resources
                  DMME                                               and the need to manage resources. Students
                                                                     will explore a variety of ways in which people
                  2.3.3 Key Responsible Parties                      use and interact with the environment and will
                  Virginia DEQ                                       apply their knowledge to interpret how human
                                                                     interactions can affect ecosystem dynamics.

                                                                     2.3.5 Timeline
                                                                     First round of the Green Box program is expected
                                                                     to be in schools by Spring 2007.

                  Building a Hydrogen Economy in Virginia: Suggested Strategies                                  p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 0
                      Energy research and development (R&D) and               versity of Maryland; courses on hydrogen;
          PART 3.0    the role that could be played by state universities     research on fuel cell design, fuel supply,
University Research   will be explored as part of the Virginia Energy         and system design and integration; and
                      Plan (VEP). Some of the recommendations of              developing a hydrogen power park on
    & Development     the Hydrogen Economy Roundtable will be                 campus.
                      considered within the broader context of the          • Virginia Commonwealth University
                      10-year Virginia Energy Plan. The VEP work,             (VCU) - Research on batteries and fuel cell
                      which began in August of 2006, will inventory           systems and a fuel cell demonstration.
                      existing energy R&D resources, investigate            • Hampton University - Work on
                      R&D policies of other states and explore a              synthetic fuels.
                      possible energy-focused R&D approach that
                      would include university-based initiatives.
                      Research universities are Virginia’s strongest        3.1 Option 1: Create a Statewide
                      existing resource for hydrogen energy develop-
                                                                            Hydrogen R&D Consortium
                      ment. A number of universities throughout
                      the Commonwealth are involved in hydrogen             Create a Statewide Hydrogen Research and
                      activities, ranging from research, development        Development Consortium, a formalized coali-
                      and demonstration, to hydrogen-specific cur-          tion of Virginia academic institutions conduct-
                      ricula that have been introduced into academic        ing hydrogen-related research, development,
                      programs. While a number of universities are          and demonstration activities. Private industry
                      involved in such activities, most of them are not     should also participate to create additional
                      working in a coordinated fashion. Partnership         partnership and leveraging opportunities.
                      and coordination among these universities could       This Consortium could coordinate high-level
                      be the single-most influential force in laying        hydrogen-related activities at higher education
                      the groundwork for hydrogen development               institutions throughout the Commonwealth.
                      in Virginia.                                          It could serve as an interdisciplinary study,
                                                                            research, and information resource for the
                      Examples of efforts at the university level
                                                                            Commonwealth on hydrogen energy issues.
                                                                            The Research Consortium could (i) consult
                      • The University of Virginia (UVA)                    with the General Assembly, Federal, state, and
                         - Offers energy and hydrogen related               local agencies, nonprofit organizations, private
                         courses, undergraduate engineering proj-           industry and other potential users of hydrogen
                         ects related to fuel cells and the hydrogen
                                                                            energy research; (ii) establish and adminis-
                         economy, and research programs.
                                                                            ter agreements with other universities of the
                      • James Madison University (JMU)                      Commonwealth to carry out research projects
                         - Development of K-12 curriculum and               relating to the feasibility of producing, storing,
                         standards of learning (SOL), developing
                                                                            transporting, handling, and using hydrogen in
                         a small-scale demonstration hydrogen
                                                                            Virginia; (iii) disseminate new information and
                         fueling station, hydrogen fuel cell demon-
                         stration, and research on fuel cell auxiliary      research results; (iv) apply for grants made avail-
                         power units for truck idle reduction.              able pursuant to Federal legislation and from
                                                                            other sources; (v) facilitate the application and
                      • Virginia Polytechnic Institute and
                         State University (Virginia Tech)                   transfer of new hydrogen energy technologies;
                         - Hydrogen learning center with the Uni-           and (vi) coordinate areas of expertise among

                      Building a Hydrogen Economy in Virginia: Suggested Strategies                                      p. 
                       members in order for activities to complement        3.2 Option 2: Universities Form
      PART 3.0 cont.   instead of compete with each other.                  Voluntary Partnerships
University Research
                       3.1.1 Funding Level                                  Two or more universities create a voluntary
    & Development      $250,000 in Year 1 growing to $1 million by          network formalized by a memorandum of under-
                       Year 5.                                              standing. One challenge with this approach is
                                                                            that universities may be unwilling to commit
                       3.1.2 Funding Sources                                resources without a reasonable expectation of
                       Commonwealth of Virginia, membership                 a return on investment (ROI).
                       contributions/dues, grants and endowments,
                                                                            3.2.1 Funding Level
                       U.S. Department of Energy, fee for service,
                       State match of private investment, federal           Dependent on the level of university participation.
                       matching funds, could use a funding model
                       of the National Science Foundation Engineering       3.2.2 Funding Sources
                       Research Center.                                     Universities, U.S. Department of Energy, National
                                                                            Science Foundation, and others
                       3.1.3 Key Responsible Parties
                       The Consortium could be governed                     3.3.3. Key Responsible Parties
                       by a board representing Virginia universities        Virginia academic institutions
                       and colleges involved in hydrogen-related
                       research; the General Assembly; Center for Innova-   3.3.4 Likely Results
                       tive Technology; members of the hydrogen and         While universities seeking partnership oppor-
                       related energy industries; and non-profits and       tunities with one another could indeed lever-
                       other organizations engaged in hydrogen-based        age resources, their full potential will not be
                       energy activities, such as the Hampton Roads         realized without a mandated and coordinated
                       Clean Cities Coalition.                              statewide effort. As a result, universities may
                                                                            end up utilizing their own R&D budgets for
                       3.1.4 Likely Results                                 more administrative functions, while a funded
                       A coordinated effort would leverage resources        consortium could minimize that financial
                       and maximize the impact of R&D efforts of            burden on the individual universities.
                       Virginia academic institutions and private
                       industry. Furthermore, a consortium of this sort     3.3.5 Timeline
                       would enhance the visibility of the prestigious      Ongoing (as opportunities arise).
                       R&D base in Virginia which could serve to
                       attract significant investment and interest. The
                       Consortium would be in a position to compete
                       for high level funding opportunities associated      3.3 Option 3: Universities
                       with hydrogen development.                           Continue Independent R&D Efforts
                       3.1.5 Timeline                                       Universities seek R&D funding opportunities
                       As guided by the Virginia Energy Plan.               independently. This could lead to Virginia
                                                                            universities competing with one another for
                                                                            limited funding.

                       Building a Hydrogen Economy in Virginia: Suggested Strategies                                     p. 
                       3.3.1 Funding Level                                 3.3.5 Timeline
      PART 3.0 cont.   Dependent on availability. Universities seek        Ongoing (as funding opportunities arise).
University Research    funding on an individual basis, which could lead
                                                                           Highly visible hydrogen demonstrations will
    & Development      to competition for limited funding or missing
                                                                           be critical in the near-term to foster broad-
                       out on some of the larger scale opportunities
                                                                           based awareness and acceptance of hydrogen
                       due to lack of competitiveness.
                                                                           technologies in Virginia. If coordinated and
                       3.3.2 Funding Sources                               managed well, demonstration projects could
                                                                           encourage regional cooperation and partner-
                                                                           ships, develop capacity to attract and leverage
                                                                           grant funds and lay the foundation for the
                       3.3.3 Key Responsible Parties
                                                                           potential future deployment of hydrogen tech-
                       Virginia academic institutions.                     nologies. A hydrogen demonstration fund could
                                                                           be created to help initiate the development of
                       3.3.4 Likely Results
                                                                           demonstration projects.
                       Virginia universities pursue funding opportu-
                       nities independently, without the additional
                       leverage potential that a consortium could offer.
                       Lack of coordination could result in redundant
                       efforts and lead to competition among Virginia
                       universities for limited funding.

                       Building a Hydrogen Economy in Virginia: Suggested Strategies                                p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
                4.1 Option 1: Develop a Hydrogen                     4.1.4 Likely Results
     PART 4.0   Highway Corridor                                     Establish Virginia as a leader in hydrogen
Demonstration                                                        development. Attention could be drawn to
                Seek legislation to encourage and fund the           the corridor for the extensive volume of out
     Projects   development of a hydrogen transporta-                of state traffic that travels the I-95 corridor.
                tion corridor along I-95 / I-64 in Virginia,         Development of a hydrogen transportation
                connecting Northern Virginia, Richmond,              corridor could result in a significant increase
                and Hampton Roads, the largest popula-               in partnership and funding activities within
                tion centers in the state. This would extend         the Commonwealth. Furthermore, a Virginia
                south the hydrogen transportation facilities         hydrogen transportation corridor could expand
                that currently terminate at Fort Belvoir. Such       the network of FuelCellSouth. FuelCellSouth is
                a project would involve the development of           a 501 (c) 6 organization whose core mission is
                hydrogen fueling stations spaced at intervals        to foster awareness and create the marketplace
                of 100 miles or less to allow a hydrogen or          for fuel cells in the southeastern United States.
                fuel cell-powered vehicle to travel the entire       FuelCellSouth is actively working with State
                distance of the corridor in Virginia. Three          Energy and Transportation Offices and the
                hydrogen fueling stations could accommodate          Clean Cities Program to identify opportunities
                a demonstration project of this magnitude and        for Public Transportation and Fleet Vehicle
                would complement an existing hydrogen fueling        Demonstrations. This could result in Virginia
                station in Washington, DC (Benning Road Shell        being the leader in a regionally developed Mid-
                station) and a proposed station off of I-95 at       Atlantic corridor that would serve as an East
                the North Carolina Advanced Vehicle Research         Coast equivalent to the California Hydrogen
                Center. Possible locations include Richmond,         Highway.
                Newport News, and Virginia Beach. Fueling
                stations could be developed in conjunction with      Furthermore, Virginia’s portion of a Mid-Atlantic
                hydrogen/fuel cell vehicle demonstrations and        Hydrogen Highway could link with the planned
                hydrogen power park projects.                        East Coast’s Hydrogen Highway, a network
                                                                     of hydrogen fueling stations modeled after
                4.1.1 Funding Level                                  California’s developing hydrogen highway.
                $5 million (for three hydrogen fueling stations,     The stations would be built along I-95 between
                demonstration vehicle leases, and incorporation      Boston, Massachusetts, and Washington, D.C.,
                with hydrogen power park projects).                  along I-95 in the north and linked through
                                                                     Richmond on the Mid-Atlantic Hydrogen
                4.1.2 Funding Sources                                Highway in Virginia, then south to the South-
                Commonwealth of Virginia such as DMME, private       eastern Hydrogen Highway Program and the
                industry, U.S. Department of Energy, military (US    Florida Hydrogen Highway.
                Navy, US Army, especially commands located in
                                                                     4.1.5 Timeline
                Hampton Roads).
                                                                     Year 1: Identify number, frequency, and loca-
                4.1.3 Key Responsible Parties                        tion of fueling stations and vehicle maintenance
                Universities; private industry; military; federal,   facilities; Identify potential hydrogen/fuel cell
                state, and local government agencies.                fleet purchasers/leasers.

                Building a Hydrogen Economy in Virginia: Suggested Strategies                                   p. 
                  Year 2: Issue Solicitation.                         as shuttle buses, with hydrogen or fuel cells.
 PART 4.0 cont.                                                       Dulles Airport, Norfolk International Airport,
                  Years 3-5: Design and build hydrogen fueling
Demonstration     stations and maintenance facilities; Acquire
                                                                      Newport News/Williamsburg International
                                                                      Airport, and Richmond International Airport
     Projects     hydrogen/fuel cell vehicles.                        see vast numbers of visitors and local residents
                                                                      annually and the opportunity to reach them
                                                                      is enormous. Vehicles could be outfitted with
                                                                      interpretive signage, brochures, and possibly a
                  4.2 Option 2: Consider Discrete                     video loop, while the vehicles’ exteriors could be
                  Demonstration Project Grants                        clearly labeled to make them easily identifiable
                                                                      as clean energy vehicles.
                  Under this option, grants could be made avail-
                  able to fund discrete hydrogen demonstration        Replicate Richmond’s RFP for hydrogen
                  projects in Virginia. Examples of demonstration     production from a wastewater treatment
                  project opportunities include the following:        plant in the Norfolk area. Richmond recently
                                                                      released (2006) an RFP to produce hydrogen
                  Create a hydrogen and/or fuel cell public
                                                                      from methane at its wastewater treatment
                  demonstration site at a Commonwealth
                                                                      plant (WWTP), which would provide enough
                  or public building. Perhaps the simplest
                                                                      hydrogen to produce 1MW electricity through
                  way to make hydrogen and fuel cells visible
                                                                      stationary fuel cells. This can be coupled with
                  to the public and to key decision-makers is
                                                                      efforts being considered by Hampton Roads
                  to demonstrate hydrogen technology on the
                                                                      Transit to convert its NET buses to hybrid-
                  grounds of a public building, such as a Capitol
                                                                      electric drivetrains. The converted buses could
                  Square building in Richmond or the Science
                                                                      be hydrogen internal combustion engine (ICE)-
                  Museum of Virginia. Opportunities include the
                                                                      electric hybrids, utilizing hydrogen produced
                  siting of a stationary fuel cell to provide power
                                                                      at a local WWTP.
                  for a building, and/or a hydrogen fuel cell-
                  powered vehicle, or fleet of vehicles, alongside    Develop a Hydrogen Power Park, a concept
                  a hydrogen demonstration filling station. This      that involves generating hydrogen for a station-
                  demonstration project could complement and          ary power generating fuel cell, and to support
                  benefit from experience gained over more than       fuel cell vehicles. This could be co-located with
                  a decade by a Fort Eustis fuel cell stationary      the hydrogen fueling stations for the hydro-
                  power generation demonstration.                     gen transportation corridor discussed under
                                                                      Option  (section 4.1) above.
                  Invest in hydrogen/fuel cell bus projects
                  that maximize public visibility of hydrogen         Develop a hydrogen vehicle and fueling
                  technologies. Potential educational demonstra-      station demonstration project in Poquoson.
                  tion projects that have been identified include     The City of Poquoson, a small city in the
                  Norfolk buses that could run on hydrogen/           Hampton Roads area of Virginia, has indicated
                  hydrogen fuel blend or fuel cells. Colonial         interest in installing a hydrogen demonstration
                  Williamsburg has a large fleet of compressed        project involving a hydrogen filling station
                  natural gas (CNG) buses, some of which could        to operate a small fleet of city vehicles. This
                  be converted to run on a hydrogen-CNG blend.        might include replacing the police cars and/or
                  Another great opportunity for public education      school buses to run on hydrogen or fuel cells,
                  is to power airport ground transportation, such

                  Building a Hydrogen Economy in Virginia: Suggested Strategies                                   p. 
                  and creating a hydrogen filling station. The        with them. High profile demonstrations would
 PART 4.0 cont.   city is already considering replacing its school    display the Commonwealth’s commitment
Demonstration     bus fleet, and a local gas station owner has        and draw interest from industry outside
                  agreed to allow a hydrogen reformation unit         the Commonwealth.
     Projects     at the station. Because of the relatively short
                  distances traveled in Poquoson and the small        4.2.5 Timeline
                  fleet size, the percentage of clean energy from     Projects would take approximately 2 years
                  hydrogen that this city’s fleet could operate on    from time of funding.
                  would be high.

                  In the near-term, pursue “low-hanging
                  fruit” options for hydrogen production              4.3 Option 3: Pursue External
                  demonstrations. Demonstration projects to
                                                                      Funding Opportunities with
                  be considered include utilizing waste gas from
                  landfills or wastewater treatment plants, obtain-   Existing Resources
                  ing hydrogen from chemical production plants,       Funding for demonstration projects would be
                  and utilizing biomass from food processing          sought on an ad hoc basis.
                  and agricultural operations, such as organic
                  waste and animal waste (digester methane            4.3.1 Funding Level
                  which could be reformed). Focus should be
                  on applications that demonstrate least cost
                  production ($/kg of hydrogen).                      4.3.2 Funding Sources
                  4.2.1 Funding Level                                 U.S. Department of Energy, military, private
                                                                      industry, others.
                  Dependent on the size and nature of the
                  demonstration project. $5-10 million to fund        4.3.3 Key Responsible Parties
                  multiple projects.
                                                                      Universities; private industry; federal, state and
                  4.2.2 Funding Sources                               local government agencies.
                  Commonwealth of Virginiasuch as DMME, U.S.          4.3.4 Likely Results
                  Department of Energy, local governments.
                                                                      Committed stakeholders would continue to
                  4.2.3 Key Responsible Parties                       pursue existing external funding opportunities
                                                                      to demonstrate hydrogen technologies, but
                  Universities; DMME; private industry; federal,
                                                                      without the additional leverage that would be
                  state and local government agencies.
                                                                      possible with state funding, high-level direction,
                                                                      improved coordination and partnering.
                  4.2.4 Likely Results
                  Installing hydrogen demonstration projects in       4.3.5 Timeline
                  areas with high visibility will help to increase
                                                                      Dependent on project interest and funding
                  public awareness about hydrogen and fuel
                  cell technologies and the issues associated

                  Building a Hydrogen Economy in Virginia: Suggested Strategies                                   p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
                If a significant hydrogen infrastructure is to          including NASA Langley Applied Research
     PART 5.0   be developed in Virginia, partnerships among            Center and the U.S. Department of
 Partnership    universities, state and local governments, mili-        Energy’s Jefferson Laboratories
                tary, industry, and non-governmental organiza-      •   Private industry, including fuel cell vehicle
Opportunities   tions will be key. These partnerships, represent-       manufacturers (General Motors) and
                ing public and private sector interests, could          other advanced vehicle design companies
                be the driving force behind hydrogen-based              (Siemens VDO); distributed, on-site hydro-
                economic development by leveraging resources            gen production technology manufacturers
                and building the base of business opportunities         (H2Gen Innovations, Inc.); and technology
                throughout the Commonwealth.                            and infrastructure development contrac-
                                                                        tors (Northrop Grumman)
                The economic development benefits from pursu-       •   Military installations (Norfolk Navy Base,
                ing a hydrogen economy in Virginia could be             Langley Air Force Base, Fort Belvoir,
                significant, even in the near-term. Opportunities       among many others)
                for workforce development, job creation, and        •   State and regional consortiums including
                attracting and building new businesses are              the Mid-Atlantic Hydrogen Coalition, the
                significant. A trained and coordinated workforce        Virginia Hydrogen Economy Roundtable,
                will need to be ready to handle each stage in the       Hampton Roads Clean Cities, Virginia
                energy delivery process, from hydrogen produc-          Clean Cities, Hampton Roads Hydrogen
                tion, delivery, and storage, to operating and       •   State and local agencies, including the Vir-
                managing on-the-ground projects. Virginia’s             ginia Economic Development Partnership;
                K-12 and higher education institutions can play         Virginia Department of Mines, Minerals,
                a key role in educating the future workforce.           and Energy; Virginia Department of Envi-
                This workforce will include a collection of             ronmental Quality; Virginia Department
                high paid jobs including engineers, technol-            of Transportation; Virginia Department of
                ogy manufacturers, code officials, technicians,         Education; Science Museum of Virginia;
                policy makers, business managers, teachers, and         and numerous municipalities
                marketing and outreach professionals.               •   Virginia utilities, including Dominion, and
                                                                        primary energy source providers, such as
                A number of entities are already working on             the coal, biomass, and nuclear industries
                hydrogen activities in Virginia. These, in addi-    •   National Energy Education Development
                tion to others involved in similar or related           (NEED) Project, a non-profit organization
                technology and economic development efforts,            that develops energy curriculum and mate-
                have the potential to leverage each other’s             rials for K-12 schools around the country
                strengths and assets through partnerships.
                Potential partnering entities representing          Several Virginia universities are working on
                academic institutions, private industry, and        hydrogen research, development, demonstra-
                public agencies in Virginia include, but are        tion, and curriculum. The University of Virginia
                not limited to the following:                       (UVA) offered a new elective course on “Energy
                                                                    Outlook and Technology Options” to gradu-
                • Universities and research institutes
                                                                    ate and senior-level undergraduate students
                    working on hydrogen research, develop-
                                                                    in the Department of Chemical Engineering
                    ment, demonstration, and curriculum
                    (detail provided below)                         in Jan-May, 2006. Energy topics have been
                                                                    offered in the undergraduate “Introduction to
                • National research centers and laboratories,

                Building a Hydrogen Economy in Virginia: Suggested Strategies                                  p. 
                 Engineering” course for incoming engineering              Tech offers numerous courses on hydrogen to its
PART 5.0 cont.   students. Some undergraduate engineering                  students, and has a research group involved with
 Partnership     senior theses have involved projects related              fuel cell design, fuel supply, and system design
                 to fuel cells and the hydrogen economy. The               and integration. Virginia Tech is also working
Opportunities    senior-level undergraduate design course in               to develop a hydrogen power park on campus
                 chemical engineering has dealt with reforming             using stationary fuel cell power systems.
                 of fuels to produce hydrogen for automobiles. A
                                                                           Virginia Commonwealth University believes
                 new experiment is planned for the senior-level
                                                                           that education is essential to promoting the
                 undergraduate chemical engineering laboratory
                                                                           hydrogen economy and has been conducting
                 course that includes reforming of a hydrocarbon
                                                                           research on batteries and fuel cell systems with
                 fuel to produce hydrogen, which is then fed to a
                                                                           NASA funding. New platinum catalysts are
                 fuel cell to generate electricity. Finally, some of the
                                                                           being developed that promise better fuel cell
                 research programs at UVA relevant to the hydrogen
                                                                           durability. A fuel cell demonstration experiment
                 economy involve fuel cells (chemical engineering),
                                                                           has been acquired and will be incorporated
                 thermochemical hydrogen production (chemical
                                                                           into a revised curriculum in Chemical and Life
                 engineering), activation of hydrocarbons and
                                                                           Science Engineering.
                 hydrogen (chemistry) and hydrogen embrittlement
                 of metals (materials science).                            Hampton University has been doing work on
                                                                           synthetic fuels.
                 One of the top priorities within James Madison
                 University’s (JMU) hydrogen efforts is the develop-
                 ment of K-12 curriculum, and the inclusion of
                 hydrogen into the state’s standards of learning
                 (SOL). Additionally, it is developing a small-scale       5.1 Option 1: Create a Formalized
                 demonstration hydrogen fueling station on its             Virginia Hydrogen Network
                 campus, and is deploying a hydrogen fuel cell             Create a formalized Virginia hydrogen
                 back-up unit for Shenandoah National Park.                network or alliance that encourages hydro-
                 Another related area of research at JMU focuses           gen technology partnerships. Membership
                 on fuel cell auxiliary power units for truck idle         could include academic institutions, private
                 reduction. This research team recently won the            businesses, government agencies, and military
                 Society of Automotive Engineers Bendix Automo-            representation. This could be a more structured
                 tive Electronics Paper of the Year for its hydrogen       and formal version of the voluntary Hydrogen
                 fuel cell auxiliary power reduction work.                 Roundtable. Membership should strive for a
                 Virginia Polytechnic Institute and State University       balance of elements required to demonstrate
                 (Virginia Tech), through a grant from the State           hydrogen technologies, including hydrogen
                 Technologies Advancement Collaborative, led               producers and entities that can transport and
                 a hydrogen learning center with the University            distribute the hydrogen, manufacturers of hydro-
                 of Maryland called the Hydrogen Technology                gen technology, and end-users. This network
                 Education Center (H2TEC). H2TEC helped to                 could also serve as a clearinghouse of hydrogen
                 educate K-12 students as well as undergraduate            information, and could provide education, out-
                 and graduate students about hydrogen produc-              reach, and networking opportunities through
                 tion, storage, and delivery. Additionally, Virginia       sponsorship of conferences and other events.

                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                       p. 0
                 5.1.1 Funding Level                                5.2.3 Key Responsible Parties
PART 5.0 cont.   Membership dues, $250K seed money, $100K/          In the absence of a formal network, this level
 Partnership     year thereafter.                                   of participation could be handled by DMME,
Opportunities                                                       the Virginia Hydrogen Roundtable and Virginia
                 5.1.2 Funding Sources                              Clean Cities.
                 Membership dues, Commonwealth of Virginia.
                                                                    5.2.4 Likely Results
                 5.1.3 Key Responsible Parties                      By tapping into activities and partnerships
                 Universities, state and local government           already underway in the region, Virginia could
                 agencies, private business.                        build momentum in its hydrogen development
                 5.1.4 Likely Results
                                                                    5.2.5 Timeline
                 A formalized statewide hydrogen network could
                 bring together private businesses, academic
                 institutions, and government agencies to foster
                 public-private partnerships.
                                                                    5.3 Option 3: Support
                 5.1.5 Timeline
                                                                    Partnerships upon Request
                 Immediately / upon funding.
                                                                    This option would not be a coordinated
                                                                    effort to build partnerships, but rather
                                                                    would support partnerships brought together
                 5.2 Option 2: Join Forces with                     to respond to current opportunities.
                 Existing Regional Partnerships
                                                                    5.3.1 Funding Level
                 Leverage hydrogen economy opportunities            Dependent on project and availability of funding.
                 by joining existing regional partnerships.
                 Leverage partnership opportunities by joining      5.3.2 Funding Sources
                 forces with existing regional partnerships, such   Commonwealth of Virginia, U.S. Department
                 as the Mid Atlantic Hydrogen Coalition, Fuel       of Energy, private industry match.
                 Cell South (, the
                 Southern Governors Association (http://www.        5.3.3 Key Responsible Parties
       , the Southeastern          Commonwealth of Virginia, academic institu-
                 Hydrogen Highway Initiative, and the Southern      tions, private industry.
                 Fuel Cell Coalition (
                                                                    5.3.4 Likely Results
                 5.2.1 Funding Level                                While this option would provide support to
                 Partnership driven.                                some partnerships, it would lack a coordinated
                                                                    effort to build partnerships throughout the
                 5.2.2 Funding Sources                              Commonwealth.
                 Dependent on partnership participation.
                                                                    5.3.5 Timeline

                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                 p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
                 6.1 Designate a Statewide                          6.1.1 Funding Level
     PART 6.0    Hydrogen Commission or Task Force                  N/A.
Policy Setting
                 Designate a commission to serve as the             6.1.2 Funding Sources
                 Virginia hydrogen policy-setting entity. Many
                 of the recommendations made in this hydrogen
                 plan clearly need state government support.        6.1.3 Key Responsible Parties
                 A commission or task force with a focus on
                 hydrogen could serve as a driver for hydrogen      Various state government representatives or
                 policy for the Commonwealth. This commis-          others as appointed.
                 sion could proactively set a hydrogen policy
                                                                    6.1.4 Likely Results
                 agenda for Virginia. This could be accomplished
                 through existing commissions such as the Joint     A hydrogen policy-setting task force could
                 Commission on Technology and Science. One          ensure that state government has an agenda
                 of the issues that could be addressed by this      to support the advancement of hydrogen and
                 commission could be the creation of a hydrogen     that it is effectively coordinated with the agenda
                 demonstration fund.                                of the Virginia Energy Plan.

                                                                    6.1.5 Timeline
                                                                    Based on assignment or selection of members.

                 Building a Hydrogen Economy in Virginia: Suggested Strategies                                  p. 
Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
APPENDIX   Appendix:
           A Vision Of Virginia’s Transition to a
           Hydrogen Economy in the 21st Century

           Building a Hydrogen Economy in Virginia: Suggested Strategies   p. 
A Vision of Virginia’s Transition to a
Hydrogen Economy in the 21st Century

               Virginia Hydrogen Economy Roundtable
Produced by:
               This Virginia hydrogen plan and hydrogen vision were developed by the Virginia Hydrogen Economy
               Roundtable, a forum created in 2002 comprised of representatives from more than thirty energy- and
               transportation-related industries, federal and Virginia government agencies, Virginia academic
               institutions, and non-governmental organizations. The creation of Virginia’s hydrogen vision and the
               recommendations made in the hydrogen plan are the result of input gathered from in-depth Roundtable
               discussions held from late 2005 through the first half of 2006.
            Executive Summary ....................... 1          PART IV.
 Table of                                                        A Vision of the Virginia
Contents    PART I.                                              Hydrogen Economy.......... . . . . . . . . . . . . . 15
            Introduction ................................ 3            Future Hydrogen Production . . . . . . . . . . 16
                                                                       Future Infrastructure ..... . . . . . . . . . . . . . 16
            PART II.
                                                                       Future Storage Devices ... . . . . . . . . . . . . . 17
            The Hydrogen Industry Today .......... 5
                                                                       Future Conversion Technologies . . . . . . 17
                 Overview .... ............................ 6
                                                                       Future End-Use Energy Markets . . . . . . 17
                 Production .............................. 6
                 Delivery ................................. 7    PART V.
                 Storage ...... ............................ 7   Aspects of the Virginia Transition
                 Conversion .............................. 8     to the Hydrogen Economy Vision . . . . . . 19
                      Combustion ........................ 8            Phase I: Progress in Technologies,
                                                                       Policies, and Markets ..... . . . . . . . . . . . . . 19
                      Fuel Cells ........................... 8
                                                                       Phase II: Early Market Preparations . . 19
                 End Use Energy Applications ........... 9
                                                                       Phase III: Early Market Formation . . . . 20
            PART III.                                                  Phase IV: Realization of the Mass-
            Key Drivers Affecting the Future                           Market Hydrogen Economy Vision . . . . 20
            of Hydrogen Energy Development .... 11
                 National Security ...................... 11     PART VI.
                                                                 A Path Forward .............. . . . . . . . . . . . . . 21
                 Climate Change ........................ 11
                 Population And Economic Growth ... 12           APPENDIX:
                 Air Quality.............................. 12    Roundtable Participants ... . . . . . . . . . . . . . 23
                 Hydrogen Infrastructure Costs ........ 12
                 Hydrogen Storage and
                 Conversion Devices .................... 13
                 Concerns About Hydrogen Safety ..... 13
                 Availability of Fossil
                 Energy Resources ...................... 13
                 Consumer Preferences ................. 14
                 Summary ... ........................... 14
            In late 2005, participants from over thirty organizations represent-
Executive   ing energy and transportation industries, universities, environmental
Summary     organizations, and Federal and Virginia government agencies, met
            to discuss the potential role for hydrogen systems in America’s energy
            future. (A list of the participants can be found in the appendix.) The
            intent of the meeting was to identify a common Virginia vision of the
            “hydrogen economy,” and to lay out a process for determining on how to
            get there.

            Virginia Clean Cities staff has reviewed the National Hydrogen Economy
            Vision that was published by the U.S. Department of Energy in 2002
            (reference below), and has made modifications to that document based on
            the ideas and suggestions put forth by this group, known as the Virginia
            Hydrogen Economy Roundtable. This document presents the results
            of this editing, and is presented as a Virginia vision for hydrogen to become
            a premier energy carrier for Virginians. This vision serves as a guide to
            the Roundtable in developing a hydrogen plan for Virginia.

            The proceedings of these meetings, which include the presentations
            and summaries of the meeting notes, are available at:

            This vision was guided by the U.S. Department of Energy’s
            “A National Vision of America’s Transition to a Hydrogen
            Economy – To 2030 and Beyond” (February. 2002), available

            A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century     p. 1
A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century   p. 2
               In 2005, both Houses of the Virginia General         • Promotion of the Virginia Hydrogen Network;
     PART I    Assembly passed House Joint Resolution 711,          • Evaluation, recommendation, and imple-
Introduction   and Senate Joint Resolution 406, expressing            mentation of all necessary legislation and
               support for a Hydrogen Energy Plan. This               incentives;
               Plan included development of a strategy to           • Strengthening the cooperative efforts
               address the Hydrogen Economy in Virginia.              between the private sector and government;
               As a result, the Virginia Department of Mines,       • Educating Virginians about the advantages
               Minerals, and Energy (VA DMME) in Spring               and importance of a hydrogen economy;
               2005 tasked Virginia Clean Cities to work on
                                                                    • Promoting relationships with hydrogen
               these elements of the resolutions, building on         industry;
               the hydrogen educational forum that had been
                                                                    • Development of additional courses at
               established in 2002, the Virginia Hydrogen
                                                                      Virginia academic institutions;
               Economy Roundtable.
                                                                    • Further education of Virginians.
               The Virginia Hydrogen Economy Roundtable now
               consists of over thirty representatives of energy-   Each action that is identified by the Roundtable
               related and transportation industries, federal       plan will require the following discussion:
               and Virginia government agencies, Virginia           • How the proposed action will contribute to
               academic institutions, and non-governmental             the General Assembly’s vision for Virginia;
               organizations. (A list of the participants can be    • How the proposed action will be imple-
               found in the appendix).                                 mented:
                                                                       - Executor
               The 2005 resolutions expressed the following            - Timeline
               objective for the future of Virginia’s energy           - Cost
               sector:                                                 - Proposed Funding Source
                   Virginia will take a leading position as a       The Task Force will report its findings to the
                   producer and user of hydrogen within a           Virginia Department of Mines, Minerals, and
                   larger Hydrogen Economy, and Virginia            Energy by October 15, 2006.
                   will proactively support the growth of the
                   Hydrogen Economy.                                The Roundtable met twice in 2005 to define a
                                                                    Hydrogen Economy Roadmapping process for
               The Virginia Hydrogen Economy Roundtable was         Virginia, with one step in this process consist-
               established with the following charter:              ing of developing a Vision for the Hydrogen
                   Develop a plan that identifies actions, by       Economy in Virginia. These meetings marked
                   state and local governmental agencies,           the first occasion that a broad cross-section of
                   individuals, and business entities, that         business leaders and energy and environmental
                   are necessary or appropriate to achieve this     officials from across Virginia have met to discuss
                   vision of Virginia as a leading producer         hydrogen energy development and its future as
                   and user of hydrogen.                            an energy source for America. This document
                                                                    reflects the ideas and priorities put forth by the
               Evaluation of specific elements for this plan        Roundtable participants. Subsequent meetings
               include:                                             were held in the first half of 2006 in order to
               • Development of a comprehensive                     collect input to the plan.
                  hydrogen economy blueprint for Virginia;

               A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                       p. 
A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century   p. 
                 The current hydrogen industry is not focused on the production or use of hydrogen as an energy
       PART II   carrier or a fuel for energy generation. Rather, the nine million tons of hydrogen produced each
 The Hydrogen    year are used mainly for chemicals, petroleum refining, metals, and electronics. For example, the
                 processes for making gasoline and diesel fuels, such as the breakdown of heavier crude oils and
Industry Today   the removal of sulfur, are major users of hydrogen. The production of ammonia, used to make
                 fertilizers, also consumes large amounts of hydrogen. The use of hydrogen as an energy carrier or
                 major fuel requires development in several industry segments, including production, delivery, storage,
                 conversion, and end-use. The table below provides a list of terms and explanations for hydrogen
                 energy systems. Each industry segment is integral to building a hydrogen-based economy, and the
                 development of one segment relies on corresponding development of all other segments.

                 Elements of Today’s Hydrogen Energy System

                   Industry Segment          Explanation

                           Production        • The production of hydrogen from fossil fuels, biomass, or water
                                             • Involves thermal, electrolytic, and photolytic processes

                              Delivery       • The distribution of hydrogen from production and storage sites
                                             • Involves pipelines, trucks, barges, and fueling stations

                               Storage       • The confinement of hydrogen for delivery, conversion, and use
                                             • Involves tanks for both gases and liquids at ambient and
                                               high pressures
                                             • Includes reversible and irreversible solid-state systems

                           Conversion        • The making of electricity and/or thermal energy
                                             • Involves combustion turbines, reciprocating engines, and fuel cells

                     End-Use Energy          • The use of hydrogen for portable power in devices such as
                        Applications           mobile phones and computers, military field applications
                                             • The use of hydrogen for transportation systems such as fuel
                                               additives, fuel-cell vehicles, internal combustion engines, and
                                               in propulsion systems for the space shuttle, ships, and military
                                               vehicles with low noise and thermal signatures
                                             • The use of hydrogen for stationary energy generation systems,
                                               including mission critical, emergency, and combined heat and
                                               power applications

                 A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                      p. 
                                       Overview                                              technology currently available, and is most
        PART II cont.                                                                        cost-effective when applied to large, constant
                                       Hydrogen can be produced through many differ-
 The Hydrogen                          ent thermal, electrolytic, or photolytic processes
                                                                                             loads. Research is being conducted on improving
                                                                                             catalyst life and heat integration, which would
Industry Today                         applied to coal or other fossil fuels, biomass,       lower the temperature needed for the reformer
                                       or water. Renewable and nuclear systems can           and make the process even more efficient and
                                       produce hydrogen from water using thermal             economical. In Virginia, H2Gen Innovations of
                                       or electrolytic processes. The thermalchemi-          Alexandria is a world leader in researching and
                                       cal production process, which uses steam to           developing medium-scale steam reformation
                                       produce hydrogen from natural gas or other            technologies.
                                       light hydrocarbons, is most common. This
                                       hydrogen is either consumed on site (“captive”        Coal gasification shows promise as a low cost
                                       hydrogen) or distributed via pipelines or trucks      production method for hydrogen. Projects like
                                       (“merchant” hydrogen). Hydrogen can be stored         “Future Gen” are under development now where
                                       in its elemental form as a liquid, gas, or as a       hydrogen is co-produced with electricity in a
                                       chemical compound, and is converted into energy       50/50 split. Estimates indicate that a mature
                                       through fuel cells or by combustion in turbines       technology could produce hydrogen for under a
                                       and engines. Each of these components of the          dollar per kilogram (a kilogram of hydrogen has
                                       hydrogen industry is under development. The           the same energy density as a gallon of gasoline,
                                       following sections explain the current status of      about 120,000 BTU). Virginia has more than a
                                       these technological areas in greater detail.          200-year supply of known reserves of coal.

                                                                                             Partial oxidation and autothermal reforming of
                                       Production                                            fossil fuels is another method of thermalchemical
                                                                                             production. It involves the reaction of fuel with a
                                       Although hydrogen is the most abundant element
                                                                                             limited supply of oxygen to produce a hydrogen
                                       in the universe, it does not naturally exist in its
                                                                                             mixture, which is then purified. Partial oxidation
                                       elemental form on Earth. It must be produced
                                                                                             can be applied to a wide range of hydrocarbon
                                       from other compounds such as water, biomass,
                                                                                             feedstocks, including light hydrocarbons as well
                                       or fossil fuels. Each method of production from
                                                                                             as heavy oils and coal. However, it has a higher
                                       these constituents requires energy in some form,
                                                                                             capital cost because it requires pure oxygen to
                                       such as heat, light, or electricity, to initiate
                                                                                             minimize the amount of gas that must later be
                                       the process.
                                                                                             treated. In order to make partial oxidation cost
                                       In the United States, approximately 95 percent        effective for the specialty chemicals market,
                                       of hydrogen is currently produced via steam           lower cost fossil fuels must be used. Current
                                       reforming 1. Steam reforming is a thermal-            research is aimed at improving membranes for
                                       chemical process, typically carried out over          better separation and conversion processes in
                                       a nickel-based catalyst that involves reacting        order to increase efficiency, and thus decrease
1 Air   Products and Chemicals, Inc.   natural gas or other light hydrocarbons with          the consumption of fossil fuels.
                                       steam. This is a three-step process that results in
                                                                                             Hydrogen can also be produced by using renew-
                                       a mixture of hydrogen and carbon dioxide, which
                                                                                             able and nuclear resources to extract hydrogen
                                       is then separated by pressure swing adsorption, to
                                                                                             from water, but these methods are currently not
                                       produce high-purity hydrogen. Steam reforming
                                                                                             as efficient or cost effective as using fossil fuels.
                                       is the most energy efficient commercialized

                                       A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                           p. 
                                            Biomass can be thermally processed through            regarding the weakening of carbon steel pipes
          PART II cont.                     gasification, pyrolysis or partial oxidation to       in a process called hydrogen embrittlement are
   The Hydrogen                             produce hydrogen. Research on nuclear-based           being addressed. Alternate delivery forms such
                                            hydrogen production is mostly conducted on            as the transport of hydrogen in safe compounds
  Industry Today                            thermochemical processes or high-temperature          or chemical forms, are being developed to get
                                            electrolysis. Both are continuing to be developed.    hydrogen to end-use sites on an as-needed and
                                            Creation of more efficient, less expensive elec-      real time usage basis.
                                            trolyzers using renewables and nuclear power
                                                                                                  Hydrogen is also distributed via cylinders and tube
                                            is also ongoing.
                                                                                                  trailers that are transported by trucks, railcars,
                                                                                                  and barges. For long-distance distribution of up
                                            Delivery                                              to 1000 miles, hydrogen is usually transported
                                                                                                  as a liquid and then vaporized for use on-site. In
                                            A hydrogen energy infrastructure would include
                                                                                                  2001, eleven plants had the capacity to produce
                                            production and storage facilities, structures and
                                                                                                  283 tons of liquid hydrogen per day in North
                                            methods for transporting hydrogen, fueling
                                            stations for hydrogen-powered applications, and
                                            technologies that convert the fuel into energy
                                            through end-use systems that power buildings,         Storage
                                            vehicles, and portable applications. This section
                                                                                                  Hydrogen can be stored as a gas or liquid
                                            focuses on existing infrastructure that moves
                                                                                                  or in a chemical compound using a variety
                                            the hydrogen from its point of production to
                                                                                                  of technologies.
                                            an end-use device.
                                                                                                  Compact storage of hydrogen gas in tanks is the
                                            Today hydrogen is produced primarily in decen-
                                                                                                  most mature storage technology, but is difficult
                                            tralized locations and is used on-site for making
                                                                                                  because hydrogen is the lightest element and
                                            chemicals or upgrading fuels. Approximately
                                                                                                  has very low density under normal conditions.
                                            17 percent of hydrogen is centrally produced for
                                                                                                  This is addressed through compression to higher
                                            sale and distribution, and is transported through
                                                                                                  pressures or interaction with other compounds.
                                            pipelines or via cylinders and tube trailers 2. Air
                                                                                                  In addition, storage tank materials are advanc-
                        FOOTNOTES           Products and Chemicals Inc., Air Liquide Group,
                                                                                                  ing—they are getting lighter and better able to
  2 Air
                                            Praxair Inc., and the BOC Group are major
          Products and Chemicals, Inc.                                                            provide containment. Some have a protective
                                            producers of merchant hydrogen. Together these
            3 “TheHydrogen Economy,                                                               outside layer to improve impact resistance and
                                            companies operate about 80 plants in the United
  Opportunities, Costs, and Barriers”,                                                            safety. Currently, however, indications are that
 National Academies Press, February         States that are dedicated to the production of
                                                                                                  operating pressures would have to approach
2004: in particular, recommendation         merchant hydrogen.
  4-2 expresses the committee’s view                                                              10,000 psi (700 bar) in order to approach on-
    that cryogenic and high pressure        Similar to natural gas distribution, pipelines are    board storage design targets for the transportation
  compressed hydrogen technologies
    “have little promise of long-term       used to supply hydrogen to customers. Currently       sector. In 2003, the National Academies came
 practicality for light-duty vehicles.”     hydrogen pipelines are used in only a few areas of    to a determination that compressed hydrogen
                                4   Ibid.   the United States. Air Liquide Group, Air Products    would most likely not be a viable option for a
                                            and Chemicals Inc., and Praxair Inc. operate          widespread mass-market hydrogen economy. 3
                                            hydrogen pipelines in Texas, Louisiana, Califor-
                                                                                                  Liquid hydrogen is stored in cryogenic containers,
                                            nia, and Indiana. Pipelines provide an efficient
                                                                                                  which requires less volume than gas storage.
                                            means for transporting hydrogen. Concerns

                                            A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                         p. 
                                          However, the liquefaction of hydrogen consumes        hydrogen combustion over fossil fuel combustion
        PART II cont.                     large quantities of electric power, equivalent        is that it releases fewer emissions. Also, no carbon
   The Hydrogen                           to about one-third the energy value of the            dioxide is emitted, and nitrogen oxides, produced
                                          hydrogen. 4                                           by a reaction with the nitrogen in the air, can be
  Industry Today                                                                                significantly lower than with the combustion
                                          Hydrogen can be stored “reversibly” and “irre-
                                          versibly” in hydrides. In reversible storage,         of fossil fuels. Hydrogen internal combustion
                                          metals are generally alloyed to optimize both         engine vehicles are being demonstrated—Ford
                                          the system weight and the temperature at which        and BMW have made significant progress in
                                          the hydrogen can be recovered. When the hydro-        advanced Hydrogen Internal Combustion
                                          gen needs to be used, it is released from the         Engine (H2-ICE) vehicles. Also, the combustion
                                          metal hydride under certain temperature and           of hydrogen blended with methane (natural
                                          pressure conditions, and the alloy is restored        gas) is being practiced, particularly in heavy-
                                          to its previous state. In irreversible storage, the   duty vehicle demonstrations (e.g. at Penn State
                                          material undergoes a chemical reaction with           University, City of Las Vegas, Sunline Transit).
                                          another substance, such as water, that releases       Some analysts see the H2-ICE as an important
                                          the hydrogen from the chemical hydride. The           transition technology that could help develop the
                                          byproduct is not reconverted to a hydride, and        transportation refueling infrastructure as more
                                          so must be reprocessed into a hydride using           advanced end-use conversion technologies such
                                          external energy input.                                as fuel cells develop.

                                          Laboratory research continues in the develop-         Fuel Cells
                                          ment of carbon-based storage systems. Hydro-
                                                                                                Fuel cells utilize the chemical energy of hydrogen
                                          gen storage in carbon structures is achieved
                                                                                                to produce electricity and thermal energy. A fuel
                                          chemically in fullerenes or by physical sorption in
                                                                                                cell is a quiet, clean source of energy. Water is
                                          carbon nanotubes. These processes are controlled
                                                                                                the only by-product it emits if it uses hydrogen
                                          through temperature and pressure and are still
                                                                                                directly. Since electrochemical reactions can gen-
                                          a long way from development.
                                                                                                erate energy more efficiently than combustion,
                                                                                                fuel cells can achieve higher efficiencies than
                                          Conversion                                            internal combustion engines. Current steady-state
                                                                                                fuel cell system efficiencies are in the 40 to 50
                       FOOTNOTES          Hydrogen is an energy carrier that requires
                                                                                                percent range, with up to 80 percent efficiency
                                          production by an energy source (e.g., fossil,
          4 “The Hydrogen Economy,
                                                                                                reported when used in combined heat and power
  Opportunities, Costs, and Barriers”,    renewable, or nuclear) using a feedstock (e.g.,
 National Academies Press, February       fossil, biomass, or water) followed by consump-
2004: in particular, recommendation
  4-2 expresses the committee’s view
                                          tion of the hydrogen by a particular end-use          Fuel cells are similar to batteries in that they are
    that cryogenic and high pressure      device to produce heat or electricity. Hydrogen can   composed of positive and negative electrodes
  compressed hydrogen technologies        be converted to energy via traditional combustion
    “have little promise of long-term
                                                                                                with an electrolyte or membrane. The difference
 practicality for light-duty vehicles.”   methods and through electrochemical processes         between fuel cells and batteries is that energy
                                          in fuel cells.                                        is not recharged and stored in fuel cells as it is
                                                                                                in batteries. Fuel cells receive their energy from
                                          Combustion                                            hydrogen or a similar fuel that is supplied to
                                          Hydrogen can be combusted in the same manner          them. No recharge is thereby necessary.
                                          as gasoline or natural gas. The benefit of using

                                          A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                          p. 
                  Fuel cells are characterized by their electrolyte,      avoiding limitations of standard heat-to-power
  PART II cont.   operating temperature, and level of hydrogen            cycles used in combustion engines and turbines.
 The Hydrogen     purity required. Phosphoric acid fuel cells are         Fuel cells are also deployable in combined heat
                  the most developed fuel cells for commercial use.       and power applications, further raising fuel
Industry Today    Many of the installed units are used in stationary      energy utilization.
                  applications to provide grid support and reliable
                  back-up power, and in transportation applications       End Use Energy Applications
                  to power large vehicles such as buses. Proton
                  exchange membrane (PEM) fuel cells are being            Hydrogen energy end-use applications include
                  developed and tested for use in transportation,         stationary, transportation, and portable devices.
                  stationary, and portable applications. There has        As mentioned, the most common current use
                  been a tremendous upsurge in interest in PEM            for hydrogen is in industrial processes such as
                  fuel cells over the past few years, and most major      refineries. It is also used as a fuel at NASA, where
                  automotive manufacturers are developing fuel            the combustion of hydrogen has fueled its space
                  cell concept cars with PEM technology for propul-       shuttle main engines and propulsion systems for
                  sion. Alkaline fuel cells have been used in military    years. Other energy uses are generally limited to
                  applications, for NASA space missions to provide        research and demonstrations.
                  electricity and drinking water for astronauts, and
                                                                          One application of hydrogen fuel cells is for
                  are being tested for transportation auxiliary power
                                                                          distributed generation. A number of UTC Fuel
                  applications. Solid oxide and molten carbonate
                                                                          Cell’s phosphoric acid fuel cells and Fuel Cell
                  fuel cells are best for use in generating electricity
                                                                          Energy’s molten carbonate fuel cells are operating
                  in stationary combined cycle applications and
                                                                          in locations around the world, providing heat and
                  cogeneration applications in which waste heat
                                                                          power for buildings and industrial applications.
                  is used for cogeneration. They also fit well for
                  portable power and transportation applications,         In the transportation sector, a number of fuel
                  especially large trucks with long duration steady       cell vehicles are being tested and developed.
                  state auxiliary power loads.                            Vehicular use of hydrogen energy requires a
                                                                          compact power system and refueling stations.
                  Fuel cells have operating advantages for both
                                                                          Given the current state of hydrogen technologies,
                  stationary and mobile applications in that they
                                                                          city-owned buses are a promising application
                  are quiet and typically have high efficiencies
                                                                          because they are capable of carrying large tanks
                  at partial loads. They also have environmental
                                                                          of hydrogen and typically refuel at a single
                  advantages. For example, when pure hydrogen is
                                                                          location. In March 1998, for example, Chicago
                  used as the fuel, there are no emissions of sulfur
                                                                          became the first city in the United States to
                  or nitrogen oxides, or particulates. And if the
                                                                          use hydrogen fuel cells to power buses in their
                  hydrogen comes from a net-carbon-free renew-
                                                                          public transit system. Subsequent demonstra-
                  able or nuclear energy source, the system will also
                                                                          tions have continued at transit systems in Palm
                  be free of carbon dioxide emissions. Hydrogen
                                                                          Springs, California (Sunline Transit), and also
                  derived from fossil fuel sources can mitigate
                                                                          at a number of European cities under the Clean
                  carbon dioxide emissions when combined with
                                                                          Urban Transport for Europe program (CUTE).
                  effective and environmentally sensitive carbon
                  sequestration. The direct conversion of the energy      Several car manufacturers, including Hyundai,
                  stored in the hydrogen fuel to electricity in a         Ford, General Motors, Toyota, Honda, and Daim-
                  fuel cell can be achieved at high efficiencies,

                  A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                            p. 
                  lerChrysler are developing fuel cell vehicles for      ment. For example, Ballard Power Systems has
  PART II cont.   personal use. Ford and BMW are demonstrating           developed the Nexa™ power module, a PEM
 The Hydrogen     hydrogen-powered internal combustion engine            fuel cell system that generates up to 1200 watts
                  vehicles. Ford and GM have both demonstrated           of unregulated direct current electrical power
Industry Today    their fuel cell vehicles in Virginia for the Round-    that can be used for industrial and consumer
                  table, and GM currently operates a fleet of several    end-product applications.
                  vehicles based in Northern Virginia at Fort Belvoir,
                                                                         Today’s emerging hydrogen energy industry is
                  including a US Postal Service vehicle.
                                                                         eager to develop hydrogen fuel infrastructure
                  Portable fuel cells can also be used to power          technology that can be used to generate power
                  small devices such as mobile telephones or             for stationary, transportation, and portable power
                  personal computers. These small fuel cell stacks       applications. Much work needs to be done to
                  could compete with batteries for market share          reach this goal, but a foundation for future
                  in the near-term and are more environmentally          efforts has been established by these various
                  benign. Larger power generators for recreation         technology sectors.
                  and other off-grid applications are under develop-

                  A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                        p. 10
                       The United States’ energy sector is experiencing a       encourage a dynamic of change in our current
           PART III    confluence of events. New technologies are being         market? If so, how might they affect hydrogen
         Key Drivers   developed and opportunities for entrepreneurial          energy development over the next several decades,
                       ideas and innovative approaches are ripening             in terms of supporting or hindering it? Many of
Affecting the Future   at a time when our capital-intensive, aging              these “drivers” will affect not only hydrogen,
of Hydrogen Energy     energy infrastructure is in need of improvement.         but also the future of the energy system as
       Development     Despite this window of opportunity, the overall          a whole.
                       business environment for energy investments in
                       America today is not conducive to the massive            National Security
                       introduction of new technologies.
                                                                                The need to supplement the supply of domesti-
                       The Nation faces uncertainties in our energy             cally produced transportation fuels is great. The
                       future and inertia in our infrastructure system.         United States depends on a global petroleum
                       America’s energy future will include unpredict-          market where many of the major suppliers are
                       able ups and downs, price volatility, regional           countries that are politically unstable or, in some
                       gluts and shortages, and market instabilities. The       cases, hostile to U.S. interests. Even domestic
                       natural pace of turnover of existing capital in our      production and distribution is vulnerable to
                       infrastructure is relatively slow, there is reluctance   disruption from natural disaster (for instance,
                       to alter traditional systems, and the framework of       Hurricane Katrina), accidents, and terrorism.
                       changing policies and regulations tends to favor         America’s transportation sector relies almost
                       incumbent suppliers and technologies.                    exclusively on refined petroleum products; more
                       These factors introduce uncertainties and risk           than one-half of the petroleum consumed in the
                       and interfere with making changes. For example,          United States is imported, and that percentage
                       existing inertia in our energy system has made it        is expected to rise steadily for the foreseeable
                       difficult for policy makers and business executives      future, unless we change our energy use. Hydro-
                       to make strategic decisions about long-term              gen (along with biofuels) is a versatile energy
                       energy requirements, which has led to delays             carrier that could be produced entirely from
                       in decision-making, and has made it hard for             domestic sources of fossil fuel (e.g., natural
                       businesses to commit to large financial resources        gas and coal with capture and sequestration of
                       to energy investments.                                   carbon dioxide), renewable (e.g., solar, wind, and
                                                                                biomass), and nuclear energy, in large quantities.
                       The factors affecting hydrogen’s potential are           Its use as a major energy carrier would provide
                       rooted in these issues. Our infrastructure has been      the United States with a more diversified energy
                       designed to provide users with reliable supplies of      infrastructure.
                       fossil fuels at an affordable cost while protecting
                       the environment. Other forms of energy, includ-
                       ing nuclear and renewable sources, may play              Climate Change
                       important roles but face their own hurdles in            The combustion of fossil fuels accounts for
                       the global competition for market share.                 the majority of anthropogenic greenhouse
                                                                                gas emissions released into the atmosphere.
                       In developing a vision for the hydrogen economy,
                                                                                Although international efforts to address global
                       certain questions about market and policy forces
                                                                                climate change have not yet resulted in policies
                       arise. Are there technological, economic, or
                                                                                that all nations have accepted, there is growing
                       policy-related factors, issues, or trends that can

                       A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                           p. 11
                       recognition that steps to reduce greenhouse gases      Air Quality
      PART III cont.   are needed, and many countries are adopting
                                                                              Air quality is a major public health concern.
         Key Drivers   policies to accomplish that end. Energy and
                                                                              Most of the major metropolitan areas in the
                       transportation companies, many of which have
Affecting the Future   multi-national operations, are actively evaluating     United States are in “non-attainment” with the
of Hydrogen Energy     alternative sources of energy.                         requirements of the Clean Air Act. States are
                                                                              required to develop strategies detailing the steps
       Development     Hydrogen can play an important role in a               they plan to take for reaching national ambient
                       low-carbon global economy. With the capture            air quality goals. Motor vehicles and electric
                       and sequestration of carbon from fossil fuels,         power plants are significant contributors to the
                       hydrogen is one path for coal, oil, and natural        nation’s air quality problems.
                       gas to remain viable energy resources, should
                       strong constraints on carbon emissions be
                       required. Hydrogen produced from renewable
                                                                              Hydrogen Infrastructure Costs
                       resources or nuclear energy results in no net          America’s energy infrastructure is aging and
                       carbon emissions.                                      in need of significant upgrades, overhauls, and
                                                                              replacements over the next several decades.
                       Population and Economic Growth                         This infrastructure includes oil refineries, gas
                                                                              and oil pipelines, port facilities, power plants,
                       Many experts have pointed out that highly popu-        and electricity transmission and distribution
                       lated countries like China, India, and Indonesia       facilities such as power lines, transformers, and
                       seek to adopt energy consumption patterns              substations. The capital investment requirements
                       similar to those of the United States or Europe,       to maintain and improve the infrastructure over
                       and consequently world energy supplies will have       the next several decades will total hundreds of
                       to increase enormously to meet demand. If this         billions of dollars.
                       energy consumption were based on hydrogen
                       fuel cells, the environmental consequences and         While hydrogen may be able to use some of the
                       national security issues would be much less.           existing infrastructure, specific upgrades and
                                                                              enhancements will be needed to accommodate
                       Many international energy experts anticipate           the unique features of hydrogen, particularly in
                       that developing countries may “leap frog” today’s      storage and distribution. The technologies needed
                       energy devices and infrastructure by adopt-            to convert the natural gas infrastructure for the
                       ing advanced technologies. The idea is that as         use of hydrogen are available today, but are not
                       economic growth spreads around the world,              yet cost-effective. At present there is no motivation
                       developing countries would be able to follow           to convert to hydrogen, as there are essentially no
                       a pattern similar to the one being followed in         markets for distributed use of hydrogen energy.
                       telecommunications systems: wireless technolo-         Additional infrastructure costs will have to be
                       gies are being installed in certain locations, “leap   incurred in the future, when cost-competitive
                       frogging” the need for telephone lines. Unfortu-       products are available, to enable the transition
                       nately, the advanced energy devices that would         to the hydrogen economy.
                       be needed to “leap frog” current infrastructure,
                       such as hydrogen energy systems and fuel cells,        The technical and economic barriers to upgrading
                       are not yet cost competitive or commercially           the Nation’s fueling stations to provide hydrogen
                       available on the required economies of scale.          represents one of the major stumbling blocks to

                       A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                           p. 12
                       the expanded use of hydrogen-fueled vehicles.            Concerns About Hydrogen Safety
      PART III cont.   Some automakers estimate that hydrogen would
                                                                                Perceptions about the safety of hydrogen remain
         Key Drivers   have to be available in at least thirty percent of the
                                                                                a deterrent to many consumers. The public
                       nation’s fueling stations for a viable hydrogen-
Affecting the Future   based transportation sector to emerge. Private           needs to be aware that safety issues related to
of Hydrogen Energy     investment in such an infrastructure will not            hydrogen are being addressed, and perceptions
                       be forthcoming in the absence of sustained,              based on misinformation need to be corrected. A
       Development                                                              public information campaign can help eliminate
                       supportive public policies.
                                                                                many of the concerns about hydrogen safety.
                                                                                Effective codes and standards are needed to
                       Hydrogen Storage                                         ensure that these concerns are addressed in
                       and Conversion Devices                                   equipment design, manufacturing practices, and
                                                                                operation and maintenance procedures.
                       The lack of low-cost and lightweight storage and
                       commercially available and cost-competitive fuel         Appropriate field tests and demonstrations will
                       cells interferes with the development of a hydrogen      be needed to increase public confidence and
                       economy. For the hydrogen economy to evolve,             acceptance of hydrogen technologies.
                       consumers will need to have convenient access
                       to hydrogen, and storage will be one of the keys.
                       Better hydrogen storage systems will enable users
                                                                                Availability of
                       to have easy access to hydrogen for vehicles and         Fossil Energy Resources
                       distributed energy facilities. Hydrogen storage          Affordable coal, oil, and natural gas supplies
                       could also enhance the value and potential market        are available around the world. Analysts warn,
                       share of renewable electricity generation.               however, that world oil production cannot be
                       Fuel cells are clean, compact, and modular               sustained at current levels indefinitely and
                       energy generation devices that have the potential        that the development of America’s natural gas
                       to revolutionize the production of electricity and       resources, while extensive, are not inexhaustible.
                       thermal energy, for both stationary and mobile           Coal is the major fuel for electricity production
                       applications. There are several different types of       in America. Clean coal technologies improve
                       fuel cells; each has advantages and disadvantages.       efficiency and reduce emissions. Fossil fuels are
                       Design and manufacturing breakthroughs are               expected to be America’s fuels of choice for the
                       needed to lower costs and enhance reliability and        foreseeable future.
                       performance. The marketplace will determine              As demand for fossil fuels continues to increase,
                       which of the several fuel cell options will offer        resource constraints will push fossil fuel prices
                       users the most favorable advantages.                     up over the next several years (energy analysts
                       Hydrogen internal combustion engine vehicles             differ as to how much and when). This will spur
                       are being demonstrated and are nearer term               the development of non-fossil alternatives such as
                       than fuel cell vehicles. They offer many benefits,       solar, wind, geothermal, biomass, and nuclear, and
                       although they are not zero emissions vehicles.           fossil alternatives that sequester carbon dioxide,
                                                                                and encourage the transition to hydrogen. In the
                                                                                meantime, the current availability and relatively
                                                                                low cost of fossil fuels moderate the pace of
                                                                                development of alternative sources of energy.

                       A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                          p. 1
                       Consumer Preferences                                    prices, and Americans are very reluctant to
      PART III cont.                                                           impose consumption disincentives on carbon
                       There are energy consumer trends that require
         Key Drivers   high-value services that command premium
                                                                               fuels which would help increase conservation
                                                                               practice, or make alternative carbon-free energy
Affecting the Future   prices. For example, extra high reliable electric       more attractive.
of Hydrogen Energy     service is required by a growing number of
                       businesses relying on digital equipment, such
       Development     as computers, or operating 24 hours a day, seven        Summary
                       days a week. Premium power markets include              There are several key drivers that will likely affect
                       high value manufacturing (e.g., semiconductors,         hydrogen energy development. Concerns regard-
                       pharmaceuticals), hospitals, communications             ing national security, global climate change, and
                       centers, emergency management facilities (police,       worldwide population and economic growth
                       fire, rescue, 911 call/dispatch), air traffic control   will increasingly promote systems that support
                       facilities, and defense installations. Protection       hydrogen development. The lack of a national
                       against energy price volatility is another possible     consensus on energy policy priorities, a hydrogen
                       high-value service. These premium markets,              infrastructure, commercially viable hydrogen
                       like distributed energy and power parks, provide        technologies, and the public perception of hydro-
                       growing opportunities for hydrogen energy,              gen safety issues have the potential to inhibit
                       especially early in the transition.                     hydrogen energy development. Drivers that could
                       In contrast, public support for low energy prices       both support and inhibit the development of
                       is strong. Americans enjoy gasoline prices that         hydrogen are the rapid pace of technological
                       are among the lowest in the world. Until recently,      change in energy technologies, the current avail-
                       consumers ranked fuel economy relatively low            ability of low cost fossil fuels and their eventual
                       on the list of desired attributes for automobiles.      depletion, and mixed consumer preferences for
                       Despite record highs, Americans still pay rela-         clean and cheap energy.
                       tively low inflation-adjusted petroleum energy

                       A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                            p. 1
                      VISION                                                be among the world’s leaders in hydrogen-related
          PART IV                                                           equipment, products, and services.
                      Hydrogen is one of America’s and Virginia’s
    A Vision of the   clean energy choices. It is flexible, affordable,     One major foundation for this vision is the
Virginia Hydrogen     safe, domestically produced, used in many             development of an energy infrastructure that
          Economy     sectors of the economy, and throughout the            can support the expanded production, delivery,
                      Commonwealth. The Hydrogen Economy                    storage, and use of hydrogen energy. Construc-
                      supports economic growth, environmental               tion of this infrastructure will take time and
                      protection, and energy security.                      will require significant resources. As a result,
                                                                            the hydrogen economy will take many years
                      In the early stages, hydrogen in Virginia will be     to build.
                      produced principally from coal and other fossil
                      fuel resources with carbon capture and sequestra-     The need for large quantities of hydrogen in
                      tion, with an increaseing focus on clean and          a future energy economy is almost entirely
                      renewable carbon-free energy sources. Hydrogen        dependent on how competitive hydrogen
                      will be used in limited energy storage and critical   end-use technologies are in the transportation
                      electric power systems and as a fuel option in        sector. There is only limited value in producing
                      transportation sector demonstrations.                 hydrogen for the power generation sector, if the
                                                                            transportation sector does not generate a demand
                      In a mature transportation-based hydrogen             for hydrogen as a fuel.
                      economy, hydrogen will be produced in accord-
                      nace with centralized facilities using coal and       In order for the transportation hydrogen economy
                      perhaps biomass feedstocks. Hydrogen will be          to come to fruition, hydrogen storage weight and
                      distributed by a network of pipelines to urban        volume reductions, mass production of fuel cells,
                      vehicle refueling sites and power parks. This         construction of the necessary vehicle refueling
                      mass-market state will be achieved after undergo-     infrastructure, and expanded use of distributed
                      ing a transitional phase where hydrogen will          power generation devices will be required. These
                      have been produced at the community level             actions will in turn require significant technology
                      from transportable fossil fuels such as natural       breakthroughs to occur, implying a long-term
                      gas in urban centers, and perhaps propane in          commitment to fundamental and applications
                      rural communities. The possibility also exists        research by Virginia government and industry.
                      for community-level biofuels-based hydrogen
                                                                            A strong public investment in cooperation with
                      production in both rural and urban settings
                                                                            private industry will be a key feature of this evo-
                      during the transition. Urban commuters may
                                                                            lutionary process. Together, the Commonwealth
                      also have the option of producing hydrogen at
                                                                            and private organizations will facilitate
                      home from natural gas or electrolysis.
                                                                            appropriate research, development, and
                      In the hydrogen economy, Virginia consumers           demonstration programs; educate the public;
                      will have access to hydrogen energy to the same       and implement codes and standards. In Virginia,
                      extent that they have access to gasoline, natural     mounting public pressures for cleaner, more
                      gas, propane, and electricity today. It will be       secure sources of electric power generation energy
                      produced cleanly, with near-zero net carbon           supplies, in conjunction with the potential of the
                      emissions, and it will be transported and used        hydrogen economy, could radically transform
                      safely. Virginia’s hydrogen energy industries will    how we exploit the Commonwealth’s most
                                                                            abundant energy resources.

                      A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                        p. 1
                                            Future Hydrogen Production                               at relatively low levels of penetration in the
         PART IV cont.                                                                               electric power generation market (e.g. less than
                                            At the time the vision for a mass-market hydrogen
    A Vision of the                         economy becomes a reality, several years from
                                                                                                     20%), renewable electricity sources such as wind
                                                                                                     and solar power, when viable, will probably
Virginia Hydrogen                           now, hydrogen in Virginia will be produced               not be devoted to the production of hydrogen.
          Economy                           predominantly from coal and other fossil fuels,          This is substantially due to the fact that these
                                            although some hydrogen will be produced                  energy sources have much higher economic and
                                            from biomass and water via thermal and                   environmental value displacing conventional
                                            electric processes.                                      electricity sources rather than using them to
                                            In order for hydrogen to be produced from water          produce hydrogen.
                                            via electrolysis, photochemical or photoelec-            During the transition phase to the mass-market
                                            trochemical devices, or by biological systems            hydrogen economy, distributed production of
                                            such as algae, these processes will need to be           hydrogen will occur on-site (at homes, offices,
                                            cost-competitive with hydrogen produced at               and factories) or at the community level at
                                            centralized facilities. Very low cost electricity will   places such as fueling stations or power parks.
                                            be needed for cost-competitiveness, such as off-         The continuing share of distributed production
                                            peak power at one to two cents per kilowatt-hour,        in the mass-market economy will depend on
                                            and the amount of hydrogen produced in this              the ability of this mode of hydrogen generation
                                            manner will be limited in comparison to future           to provide additional value to consumers with
                                            demands for fuel. Electrolysis could make locally        respect to the centralized production systems.
                                            important contributions where low cost power
                                            is available, although the overall contribution
                         FOOTNOTES          to a full-scale hydrogen economy will depend             Future Infrastructure
          5 This scenario implies higher
                                            on the relative costs.                                   In a mass-market Virginia hydrogen energy
    energy costs for rural communities,
                                            Virginia could have a combination of central             economy, a statewide network will be in place
     and may require considerations of
    public support to bring a hydrogen      station and distributed hydrogen production              to provide hydrogen to users in every region and
         choice to remote areas – one is    facilities, however, the current resource endow-         locality. Pipelines will be the preferred choice for
  reminded of the process that brought                                                               distributing hydrogen to high-demand areas.
electricity to these communities under      ments in Virginia tend to favor centralized
   the Rural Electrification Act of 1936.   production from coal (gasification with carbon           Trucks and rail will be used to distribute hydrogen
This scenario also has implications for
                                            sequestration) under a mass-market scenario.             to rural and other lower-demand areas, probably
  the “near net-zero” carbon emissions
       goal set forth as an indispensable   Central station facilities will consist of multi-        in the form of liquid hydrocarbon hydrogen
aspect that justifies and provides moti-    product refineries that use coal as the principal        carriers such as biofuels and/or propane which
  vation for the hydrogen vision. In the                                                             are then reformed at local production centers.5
 event that pure hydrogen transport by      feedstock, and that provide hydrogen, electricity,
  truck or rail is economically prohibi-    thermal energy, chemicals, and other industrial          On-site hydrogen production and distribution
tive, local carbon sequestration during
                                            products. One can also envision central station          facilities will be available where demand is
   the reformation process may also be                                                               high enough to sustain maintenance of the
              economically unattractive.    nuclear, solar, wind, or geothermal facilities for
                                            the production of hydrogen by splitting water,           technologies in the face of centralized production
                                            although the presence of such facilities in              and distribution.
                                            Virginia’s future mass-market hydrogen economy
                                            will be a function of those technologies’ share
                                            in the overall electricity production mix. It is
                                            also generally foreseen today that, especially

                                            A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                            p. 1
                      Future Storage Devices                               hydrogen-powered energy generation devices
     PART IV cont.                                                         such as combustion turbines and reciprocating
                      A selection of relatively lightweight, low cost,
    A Vision of the   and low volume hydrogen storage devices will
                                                                           engines will be in commercial use.

Virginia Hydrogen     be available to meet a variety of needs, and in
                                                                           Future End-Use Energy Markets
          Economy     particular the needs defined by the transportation
                      sector. Presumably, a solution to the transporta-    Hydrogen will be available for every end-use
                      tion requirements for on-board hydrogen storage      energy need in the economy, including trans-
                      may resolve issues with the bulk transport and       portation, power generation, and portable power
                      distribution of hydrogen to low demand areas         systems. Hydrogen will need to be the dominant
                      (see discussion under previous heading Future        fuel used for the transportation sector, gener-
                      Infrastructure).                                     ating high levels of demand, thus justifying
                                                                           future centralized co-production facilities and
                      Future Conversion Technologies                       positioning hydrogen as the cost-effective fuel of
                                                                           choice. It will be combusted directly in turbines
                      Fuel cells will be mass-produced and will be         and reciprocating engines for cogeneration of
                      cost-competitive with mature technologies,           electricity and thermal energy. And it will be
                      particularly in the transportation sector. With      used in fuel cells for both mobile and stationary
                      widespread availability of hydrogen, advanced        applications.

                      A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                      p. 1
A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century   p. 1
                                                    There are certain achievements to be made and        environment, including the reduction of energy
                            PART V                  pitfalls to avoid in the transition to a hydrogen    imports, managing greenhouse gas emissions,
       Aspects of the                               economy. Rather than offering predictions or         and strengthening the control of air pollution.
                                                    specific prescriptions, the following section dis-   Standards for the safe use of hydrogen will
 Virginia Transition                                cusses various goals and hazards and outlines        need to be implemented across the U.S., and
    to the Hydrogen                                 plausible scenarios.                                 around the world. State-level demonstration
    Economy Vision                                                                                       programs are required during this phase to test
                                                                                                         implementation of these standards in real-world
                                                    PHASE I:
                                                                                                         environments, and also to open communications
                                                    Progress in Technologies,                            and education channels to local officials. These
                                                    Policies, and Markets                                state-level demonstrations are also needed to
                                                                                                         begin addressing liability, insurance, and permit-
                                                    Significant laboratory progress is needed in the
                                                                                                         ting issues, which in addition to the appropriate
                                                    first transition phase in the form of research
                                                    and demonstration that supports industry’s pre-      codes and standards will provide a framework
                                                                                                         for commercial development to proceed.
                                                    commercial efforts. Carmakers will test several
                                                    types of hydrogen-using prototypes. Research
                                                    will focus on bringing down the cost of fuel cells   PHASE II:
                                                    and storage devices.                                 Early Market Preparations
                                                    Testing, validation, and demonstration of            Many significant technology developments will
                                                    transportation technologies will characterize        need to have occurred before the next phase
                                                    this pre-market phase. As progress is made and       can begin. These breakthroughs will include
                                                    demonstrated with transportation technologies,       at a minimum a demonstration of hydrogen
         A significant test of this added value
      is currently underway with the market         industry markets for proton exchange membrane        transportation technologies, including fuel cells
         introduction of relatively affordable      fuel cells for stationary power and cogenera-        and storage systems, that will be cost-effective at
       natural gas home refueling units. For
                                                    tion applications will be further developed. It      volume production. Cost-effective carbon seques-
 large fleets, however, it is difficult to see at
  this point what the added value would be          is expected, however, that investment in direct-     tration technology will need to be validated, and
  in the face of higher initial purchase and        hydrogen stationary technology will only prog-       shown to be supportive of cost models that show
     operating costs. This implies additional
   regulatory action or subsidies in order to       ress as vehicle demonstrations and validations       hydrogen as a potentially competitive fuel.
place vehicles in these fleets, which in turn       continue to be successful.
  would help make a positive business case                                                               Industry in the transportation sector will need to
    for the required refueling infrastructure.      Natural gas steam reforming will continue to         have vehicle designs that are ready to industrial-
                                                    be the primary means for producing hydrogen,         ize, and that are also shown to be affordable
                                                    although during this phase, demonstration of         (at volume), and marketable to the general
                                                    advanced hydrogen production technologies will       public. These vehicles will need to be equivalent
                                                    also take place. Hydrogen use in internal combus-    to standard vehicles in performance, range,
                                                    tion engines will help support infrastructure        cargo-carrying capacity, and operational cost.
                                                    technology development by providing relatively       In fact, the sizeable cost premiums expected in
                                                    cost-effective hydrogen end-use transportation       this phase will need to be justified by additional
                                                    technologies that can generate demand for            customer value. Today, one can envision this
                                                    hydrogen in field demonstrations.                    added value to be potentially provided by the
                                                                                                         ability to refuel at home. 6 Alternatively, these cost
                                                    The first phase will also require the creation of
                                                                                                         premiums will need to be offset by subsidies to
                                                    hydrogen-related policies on energy and the

                                                    A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                          p. 1
                                                 help bring volumes to levels where the economies        appropriate market incentives and rules that will
               PART V cont.                      of scale are such that the cost premiums are            facilitate and accelerate expansion of hydrogen
       Aspects of the                            made negligible.                                        technologies. This phase will then lead to instal-
                                                                                                         lation of distributed production
 Virginia Transition                             Once the economic viability of hydrogen
    to the Hydrogen                              production and end-use technologies is demon-           and refueling infrastructure that eliminates
                                                 strable7, industry and government will be able          concerns of refueling availability for the average
    Economy Vision                               to work cooperatively to begin actions that are         consumer, whether private individuals or fleet
                                                 consistent with a transition roadmap to the             administrators.
                                                 mass-market economy.

                                                 During this phase, one can expect federal and           PHASE IV:
                                                 Virginia government facilities to play a significant    Realization of the Mass-Market
                                                 role in moving hydrogen technologies into the           Hydrogen Economy Vision
                                                 marketplace. One example could be increased use
                                                 of hydrogen-fueled distributed energy devices to        Eventually, hydrogen will be used for most end-use
                                                 ensure reliable, continuous power for applications      energy market applications. The transportation
                                                 (e.g. hospitals) where elimination of emissions         sector consists mainly of hydrogen-fueled vehicles.
                                                 and reduced noise are valuable features justify-        Stationary power is generated by cost-effective
                              FOOTNOTES          ing the cost premiums during this technology            devices that benefit from the economies of scale
          7 “Demonstrable” means   shown in      transition phase.                                       afforded by the transportation sector. Demand
    theory that at volume production, costs                                                              for hydrogen grows, and centralized production
   are competitive. For example, this is not                                                             facilities are constructed and operated, deliver-
 the case with automotive fuel cell systems      PHASE III:                                              ing hydrogen through networks of pipelines.
   today, where at-volume costs are still an
   order of magnitude higher than the cost       Early Market Formation                                  Carbon capture will limit emissions, and new
         competitive industry targets set by
                                                                                                         industrial uses will put captured carbon to work
                        existing technology.     This phase begins when most of the required
                                                                                                         for industrial feed stocks, building materials, and
      8  It is conceivable that these business   production and end-use technologies have been
                                                                                                         other applications.
         cases will be made in the fleet envi-   validated, particularly in the transportation sector,
          ronment, however, this will require    and industrialization of consumer products can
           demonstrating additional value of                                                             A national infrastructure that supports the use
   hydrogen technology to the fleet admin-       begin. Market pilots have shown the appeal of           of hydrogen for fuel and electricity production
    istrators. In the absence of emissions or    hydrogen-fueled vehicles for the general con-           will be in place. Consumers will be enjoying
  alternative fuels requirements, or signifi-
     cant subsidies, it is not clear today how
                                                 sumer. The cost of natural gas-based distributed        the economic benefits of a financially sound
   this technology would become attractive       refueling infrastructure technologies are reduced       hydrogen energy sector and the environmental
to these end-users during this phase where       sufficiently to allow for a positive business case
the hydrogen options carry additional cost                                                               benefits of clean energy systems.
     burdens. On the other hand, the value       for their construction and operation.8
  proposition of home refueling may allow                                                                At this point, many years from now, the hydrogen
     for market expansion to begin through       With these elements in place, industry and              economy will be a reality.
                        the general consumer.    government will work together to develop the

                                                 A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                          p. 20
                 The ultimate vision for the hydrogen economy          • Codes and standards for safe production,
       PART VI   is many years in the future and the amount of           delivery, and use of hydrogen
A Path Forward   research, development, public education, institu-     • Education of the general public and
                 tion building, and infrastructure construction          government and private decision makers
                 needed to get there is very costly, but also a very     about the potential benefits from the
                 worthwhile goal.                                        expanded use of hydrogen
                                                                       • End-use energy markets for hydrogen
                 A useful next step will be the development of a
                                                                         including the potential for “first use” fleet
                 Virginia hydrogen energy plan. The development          applications in government facilities,
                 process can provide Virginia industry, government       vehicles, and equipment
                 officials, and technologists from our academic
                 institutions with the opportunity to collectively     Working together, industry, universities, and
                 identify near-, mid-, and long-term actions. The      government can help Virginia realize the
                 process can be used to set priorities for research,   hydrogen vision. This entails building on our
                 development, and demonstration programs,              existing energy infrastructure and current
                 and it can outline the relative roles of industry,    hydrogen energy technologies to meet mutu-
                 government, universities, and non-governmental        ally set milestones. Public and private entities
                 organizations.                                        can cooperate to overcome hurdles and develop
                                                                       technologies and policies that fit Virginia’s
                 As was the case at the national level during          drive for clean, affordable, secure, and efficient
                 the roadmapping exercise coordinated by the           energy systems.
                 U.S. Department of Energy, the Virginia-level
                 hydrogen plan process will need to address a          The U.S. Department of Energy’s “National
                 number of areas:                                      Hydrogen Energy Roadmap” (November
                 • Technologies for hydrogen production                2002), available from
                                                                       gov/pdfs/national_h2_roadmap.pdf, will be
                 • Technologies for hydrogen delivery
                    and transportation                                 consulted in developing the Virginia hydrogen
                                                                       energy plan.
                 • Technologies for hydrogen storage
                 • Technologies for hydrogen conversion
                 • Scope and directions for
                    public-private partnerships

                 A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century                       p. 21
A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century   p. 22
                Organization                                              Representative
                Air Products                                              Tom Elzey
                Avalence                                                  Thomas Jackson
Participants    Ballard Power Systems                                     Ethan Brown
                BP                                                        John Curry
                City of Chesapeake                                        George Hrichak
                City of Richmond - Public Utilities                       Chris Beschler
                Ecron                                                     Boris Maslov
                                                                          Andrey Shlyakhtenko
                Gas Technology Institute                                  William Liss
                GM                                                        Keith Cole
                                                                          Raj Choudhury
                H2Gen Innovations                                         C.E. “Sandy” Thomas
                Hampton Roads Economic Development Alliance               Steve Cook
                Hampton Roads Hydrogen                                    Bob Brown
                Honorable William Haskins                                 Bill Haskins
                James Madison University                                  Ron Kander
                                                                          CJ Broderick
                                                                          Jonathan Miles
                MidAtlantic Hydrogen Consortium                           Andre van Rest
                NASA                                                      Doug Dwoyer
                                                                          Jim Batterson
                                                                          Rise Williams
                National Hydrogen Association                             Patrick Serfass
                North Carolina Advanced Vehicle Research Center           Richard Dell
                North Carolina Solar Center                               Anne Tazewell
                Northrop Grumman Newport News                             Larry Blanchfield
                                                                          Bill Laz
                                                                          Charles Smith
                Ohio Department of Development                            Mike McKay
                Old Dominion University                                   Bob Ash
                Plug Power                                                Erin Lane
                Princeron Group, Inc                                      Roy Reynolds
                Propane Vehicle Council                                   Brian Feehan
                Proton Energy Systems                                     Mark Schiller
                Science Museum of Virginia                                David Hagan

               A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century      p. 2
                   Organization                                              Representative
                   Sentech, Inc.                                             Patty Kappaz
                   Shell Hydrogen                                            Peter Terminie
   Participants                                                              Henk Mooiweer
                   U.S. Army                                                 William “Bill” Haris
                   U.S. Department of Energy – Clean Cities                  Shelley Launey
                   U.S. Department of Energy – Hydrogen, Fuel Cells,         Steve Chalk
                   & Infrastructure Technologies Program                     Christy Cooper
                   U.S. Navy                                                 Leo Grassilli
                   University of Maryland                                    Greg Jackson
                   Department of Mechanical Engineering
                   University of Virginia                                    Prof. Bob Davis
                   School of Engineering and Applied Science                 Prof. Don Kirwan
                   Virginia Advanced Shipbuilding                            Irwin Edenzon
                   and Advanced Carrier Center                               Peter Diakun
                   Virginia Clean Cities                                     Al Christopher
                   Virginia Commonwealth University                          Kenneth Wynne
                                                                             Michael Peters
                                                                             Sean Brahim, Ph.D.
                   Virginia Department of Education                          Eric Rhoades
                   Virginia Department of Environmental Quality              Rodney Sobin
                                                                             Jim Ponticello
                                                                             Keith Boisvert
                   Virginia Department of General Services                   Donald Unmussig
                   Virginia Department of Mines, Minerals and Energy         John Warren
                   Virginia Department of Transportation                     Amy Costello
                                                                             Monica Franz
                   Virginia Economic Development Partnership                 Mike Lehmkuhler
                                                                             Mike Carruth
                   Virginia Senate Staff                                     Dan Haworth
                   Virginia Tech Department of Mechanical Engineering Mike Ellis
                                                                      Doug Nelson
                                                                      Michael von Spakovsky
                   Virginia Tech – Dept. of Mining and Minerals              Mike Karmis
                   Engineering, Center for Coal and Energy Research          Nino Ripepi
                   Virginia’s Center for Innovative Technology               Nancy Vorona

                  A Vision of Virginia’s Transition to a Hydrogen Economy in the 21st Century       p. 2

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