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The Hydrogen Option for Energy: a Strategic Advantage for Quebec

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The Hydrogen Option for Energy: a Strategic Advantage for Quebec The hydrogen option for energy: a strategic advantage for Quebec Jacques Roy, Ph.D. Marie Demers, Ph.D. Full Professor Research Associate, CHUS Department of Logistics and Operations Management Université de Sherbrooke HEC Montréal December 2019 Table of Contents 1. Executive summary ....................................................................... 3 6. Flourishing external markets .................................................................29 2. Introduction ................................................................................. 5 7. Profile of the situation in Quebec .........................................................39 7.1 Energy sources used in Quebec ............................................................... 39 3. Hydrogen: an energy vector .......................................................... 7 7.2 Energy dedicated to the transportation sector ..............................................40 3.1 A renewable and efficient energy source ..............................................7 7.3 Greenhouse gas emissions ......................................................................40 3.2 Hydrogen and hydroelectricity: a winning combination ...........................9 7.4 Advent of electric vehicles ....................................................................... 41 3.3 Leverage for reducing GHG emissions and increasing energy efficiency ...10 7.5 Incentives for running on clean energy ....................................................... 41 4. Different uses of hydrogen as an energy source ..............................11 7.6 The current regulations to limit CO2 and dependence on hydrocarbons ........... 43 4.1 Electric vehicles .............................................................................. 11 8. Opportunity for the development of the hydrogen sector in Quebec .........44 4.2 Hydrogen fuel cell buses .................................................................12 8.1 Hydrogen production .............................................................................44 4.3 Freight transportation .......................................................................13 8.2 The different market segments for conversion to hydrogen ..............................46 4.4 Refuelling stations ...........................................................................15 8.3 New transportation infrastructure projects ................................................... 49 4.5 Other possible applications in the transportation sector .........................17 4.6 Applications in industry ...................................................................17 9. Conclusion, feasibility conditions and recommendations ......................... 51 4.7 Comparison of battery electric vehicles (BEV) 9.1 Conclusion ........................................................................................... 51 and fuel cell electric vehicles (FCEV) ..................................................18 9.2 Feasibility conditions and recommendations ................................................ 51 5. Current and developing technologies ........................................... 19 References .............................................................................................53 5.1 Hydrogen production ......................................................................19 • Current production modes ............................................................19 Appendix 1: List of Hydrogène Québec coalition members .......................... 59 • Developing production modes ......................................................21 5.2 Hydrogen storage ..........................................................................23 5.3 Hydrogen distribution ......................................................................25 5.4 Hydrogen for propulsion of vehicles ...................................................27 2 1. Executive summary The energy transition to renewable, non-greenhouse As an energy vector that can be produced from many sources, hydrogen is currently the object of many research studies and multiple demonstration gas-emitting sources, has begun in several countries. projects, stimulated by industry, by governments and by organizations The development of solar, wind and hydroelectric directly dedicated to this resource around the world. But what is the situation in Quebec? energies is on the agenda, but their intermittent This document presents a status report on the use of hydrogen as an character causes difficulties adjusting supply and energy vector in the world, with emphasis on its different applications in the transportation sector as well as in industry. demand. The possibilities of transformation and It shows the advantages related to hydrogen and its role in fighting climate storage of surpluses in the form of hydrogen offer a change, because its use does not release any greenhouse gas emissions or any other by-product harmful to the environment. new avenue for reliance on clean energy. The most recent advances in hydrogen-related technologies are presented, whether for its production, storage and distribution or its role in propulsion of vehicles. The complementarity of electric battery-powered vehicles and hydrogen fuel cell vehicles is the focus of special attention. Four cases of countries or states that are forerunners of this conversion are then examined in more detail: California, China, Japan and Germany are already flourishing markets, whether for the deployment of hydrogen refuelling stations or the conversion of vehicles. Finally, to contribute to Quebec’s position on the question, a profile of the energy and transportation situation is drawn and government involvement in clean energy is documented. Quebec occupies an eminently favourable position in the integration of hydrogen into its energy system, due to its substantial hydroelectric resources and their losses. Some multinational companies have followed suit for production of hydrogen in Quebec for export. 3 Several measures are proposed here in the context of an approach of integrating hydrogen into transportation in Quebec. They address both the public sector and the private sector. For the public sector: For the private sector: • Rely on the action plans in force to extend reliance on clean • Collaborate with other stakeholders and the public sector to energy to hydrogen; help develop successful policies; • Adopt a hydrogen roadmap with objectives and targets; • Invest in hydrogen production for the purposes of use in Quebec and for export; • Encourage the hydrogen production initiatives from renewable energy sources such as hydroelectricity, particularly in remote • Adopt a phased conversion strategy: regions, and for export; – First convert forklifts in industry as the benefits • Stimulate R&D on hydrogen-related technologies; have already been demonstrated by private companies like Walmart and Canadian Tire; • Deploy incentives for the purchase of hydrogen vehicles, particularly those of captive fleets including taxis, delivery – Participate in the conversion of captive fleets of vehicles (taxis, vehicles, government fleets, emergency vehicles, and buses as delivery vehicles, government fleets, emergency vehicles and well as for heavy trucks; buses) as they can be refuelled at their main station or terminal; – Put the emphasis on heavy trucks, which are • Contribute, with the private sector, to funding the gradual large GHG generators, by converting those deployment of hydrogen refuelling stations; that return to their terminal every night; • Provide a regulatory framework to ensure safe use of – Integrate hydrogen into new transportation infrastructure hydrogen; and projects like tramways and passenger trains; and • Raise public awareness about hydrogen-related issues (safety, – Participate in the construction of a network costs, benefits for the environment). of hydrogen refuelling stations. The costs related to the energy transition to hydrogen will be high. But it can be expected that substantial benefits will result from them, both for the companies involved and for the environment and Quebec society as a whole. With its renewable resources, Quebec is advantageously positioned to initiate and benefit from this transition. 4 2. Introduction Fossil fuels account for 82% of the world’s energy The urgency of acting to counter the impact of climate change has made it necessary to study methods in various greenhouse gas-generating consumption (Hydrogen Council, 2017a) and are fields, such as transportation. The decarbonization of the transportation sector is now on the agenda to meet the desired targets. CO is the main largely responsible for the rise in greenhouse gas 2 source of emissions responsible for global warming, and the transportation emissions, which have aggravated the environmental sector was responsible for 23% of global CO2 emissions in 2014 (Horsin Molinaro and Multon, 2018). In addition to the deleterious impact of fossil and health effects of climate change. fuels on climate, environmental degradation and air pollution, in turn, have negative impacts on the population’s health. FIGURE 1 CO2 emissions and contribution to global warming in 2014 In % Other sectors Fluorinated gases 4 4 5 7 including 100 6 4 7 N O PFC + HFC + SF6 2 9 11 tertiary 2 % 90 5 % 23 80 Residential 33 32 28 70 Transport 60 19 CH4 19 50 10 13 20 % 8 5 Industry and 40 6 construction CO2 30 73 % Energy sector 40 43 41 except electricity 20 36 10 Electricity production 0 World China USA
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