The viability of hydrogen transportation markets: Chicken or egg?

September 11, 2008

Hydrogen may well be the new gasoline. But where's the nearest "gas" station where you can pull up and refuel your energy-efficient vehicle? Will hydrogen stations be strategically convenient—located on street corners and travel-stop locations around the globe?

What marketing development obstacles need to be overcome if hydrogen vehicles are ever to penetrate the transportation system and gain widespread acceptance?

According to an article by James Winebrake and Patrick Meyer in "Technovation: The International Journal of Technological Innovation, Entrepreneurship and Technology Management," there are a number of barriers to overcome before the hydrogen-fuel infrastructure becomes efficient, affordable and publicly accepted. However, both agree the 100-year reign of petroleum as the dominant transportation fuel is coming to an end—due to mounting prices, scarcity, and a need to reduce environmentally degrading emissions.

Winebrake, professor and chair of the Department of Science, Technology and Society/Public Policy at Rochester Institute of Technology, and Meyer, an RIT alumnus and a doctoral candidate at the Center for Energy and Environmental Policy at the University of Delaware, believe the use of hydrogen technology in transportation systems bears a direct relationship to the "chicken and egg" phenomenon.

"Consumers will not purchase hydrogen vehicles if there is no refueling infrastructure to service the vehicles; and the infrastructure development will not occur if there are no vehicles in operation to support it," Winebrake says.

In the study, the authors created a computer-based model, called H2VISION that simulated the dynamic relationships between vehicle purchases and refueling infrastructure. Using this computer model, they were able to determine how the cycle of vehicle purchases and infrastructure development operates and to propose recommendations to policymakers who aim incentives towards hydrogen transportation. Some of their recommendations include:

-- Initial investment in hydrogen refueling stations should support station "clusters" within urban regions so consumers can easily refuel vehicles with little additional convenience cost compared to gasoline.

-- Government policies should support both vehicle markets and refueling infrastructure simultaneously in order to achieve the greatest market penetration at the least cost.

-- Home refueling of hydrogen vehicles would go a long way to encourage market development, and appropriate government support of home refueling to technologies is needed.

Winebrake, who is also co-director of the RIT Laboratory for Environmental Computing and Decision Making, was cautiously optimistic about the prospects of a hydrogen based transportation sector developing in the coming decades.

"A lot of pieces of the puzzle are still missing," Winebrake notes. "But with appropriate economic incentives and technological advancement, a hydrogen transportation future may soon be in reach."

Source: Rochester Institute of Technology


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  • SongDog - Sep 11, 2008
    • Rank: 3.4 / 5 (5)
    Simple law: if you want a building permit or license to operate a gas station at an interstate crossing, you must sell H2 as well, at the same markup. Once these 400-odd prime locations are serviced, the rest will follow.
  • Soylent - Sep 11, 2008
    • Rank: 3.4 / 5 (5)
    Simple law: if you want a building permit or license to operate a gas station at an interstate crossing, you must sell H2 as well, at the same markup. Once these 400-odd prime locations are serviced, the rest will follow.


    Who are you to leverage such costs on gas station operators who already have wafer thin margins?
  • earls - Sep 11, 2008
    • Rank: 2 / 5 (1)
    Besides perhaps the inefficiency of the process, I fail to see why hydrogen fuel cell systems can't be a closed system.

    Tank of water > Electrolysis (solar) > Fuel Cell > Tank of Water

    This completely bypasses all of this refueling station non-sense.

    Sure, your range might be more limited, but when you run out of fuel, instead of being completely stranded, you just have to leave the vehicle in the sun for a bit.

    They already have "toy models" of this sort of thing... http://images.sky...962x.jpg

    What am I missing?!
  • Lord_jag - Sep 11, 2008
    • Rank: 3 / 5 (4)
    You're missing the vast amount of energy it takes to make hydrogen and propel people around. You'd need a solar array the size of a house's roof to make enough electricity. The few square meters of roof and hood space simply isn't enough to propel a full sized car very far.

    It works on those solar cars becuase they have virtually no weight or frame and they accelerate rather slowly.

    Hydrogen makes a rather weak battery medium.
  • taibubba - Sep 11, 2008
    • Rank: 3.7 / 5 (3)
    I think the story explains the lag very well. I'm sure stations didn't just 'pop up' all over the country as soon as the first well was formed. Remember gasoline was actually a waste product in the early days of refining (had no use!).

    On the other hand, let's do some crude math.
    kwh = $0.05
    electrolyser needs 50kw to produce 1kg of H2
    1kg H2 = energy content of 1 gallon of gasoline.

    so essentially, beyond capital costs of the H2 fueling tanks and fillers (which is ~ 5x or more expensive then gasoline pumps): you are looking at $2.50 for the same content of energy that is in a gallon of gasoline.

    Now change that to .10 / kwh for the more expensive areas and you have jumped the price to $5.00 / kg.

    Next, add in the fact that if everyone uses electric or hydrogen cars (from elecrolysis) then you would practically double the electric grid requirements. Meaning you would atleast double the price of electricity again.

    Again, just some crude math. Doesn't account for capital, maintenance, or any discount for using base energy (night-time) instead of prime.
  • conservo - Sep 11, 2008
    • Rank: 4 / 5 (1)
    One option might be to use removable, refillable hydrogen tanks, similar to the propane tanks you see at the corner store. Instead of installing drive-up pumps to dispense hydrogen to the end user, have the swappable tanks ready for users to swap out an empty one for a full one. And let a consortium of stations build a solar-hydrogen refueling center that services them all with periodic deliveries of quantities of full hydrogen tanks.
  • Keys1337 - Sep 12, 2008
    • Rank: not rated yet
    Simple law: if you want a building permit or license to operate a gas station at an interstate crossing, you must sell H2 as well, at the same markup. Once these 400-odd prime locations are serviced, the rest will follow.
    Simple law... There's no such thing as a free lunch. There are areas that right now make it had to have gas stations. Result is fewer gas stations in the area, if you want to fill up in the area the price is a rip off compared to other areas. In the end the consumer pays for your "benevolent" market control. This type of thinking is what is wrong with society today. It's always "let's make the other guy pay" and as time goes on nobody realizes that they are "the other guy."
  • Lord_jag - Sep 12, 2008
    • Rank: 1 / 5 (1)
    One option might be to use removable, refillable hydrogen tanks, similar to the propane tanks you see at the corner store. Instead of installing drive-up pumps to dispense hydrogen to the end user, have the swappable tanks ready for users to swap out an empty one for a full one. And let a consortium of stations build a solar-hydrogen refueling center that services them all with periodic deliveries of quantities of full hydrogen tanks.


    Not withstanding the problems with producing hydrogen, why not use the same system as propane powered cars?

    Here in Canada it's a rather simple changeover to get a car to run clean burning propane, and about half the filling stations have one propane pump. An attendant has to be trained to dispense propane, and it must be full service(no self serve).

    All in all it works quite well IMHO.

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