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WE-NET Substask 3. Conceptual Design of the Total System

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WE-NET Substask 3. Conceptual Design of the Total System (IB z fiEDQ a# • m#g H > K > * V 'ty'—'f* • 9'— 6 II II I ^>/<VT;l/‘*WyO>+hM>b WE-NET Subtask 3 - Conceptual Design of the Total System (City-Level Energy Estimation and Assessment) PREFACE............................................................................................................................. i ............................................................................................................................... ii EXECUTIVE SUMMARY.............................................................................................iii ..........................................................................................................................ix 1 INTRODUCTION..................................................................................................................................... 1 1.1 Background ....................................................................................................................................... 1 1.2 The Goal of the IC/LRC Project in this Phase .................................................................................2 1.3 Specific Objectives in This Phase .................................................................................................... 2 1.4 Structure of the Report ......................................................................................................................3 2 SUMMARY OF PHASE 1........................................................................................................................4 2.1 FY1994 ............................................................................................................................................... 4 2.2 FY1995 ............................................................................................................................................... 5 2.2.1 The Reference Scenario...................................................................................................................6 2.2.2 The Hythane Scenario.....................................................................................................................7 2.2.3 The "Niche markets " Scenario.......................................................................................................7 2.2.4 Conclusions.................................................................................................................................... 7 2.3 FY1996 ............................................................................................................................................... 7 2.3.1 Conclusions..................................................................................................................................... 8 2.3.2 Tentative Observations on Infrastructure Development............................................................ 9 2.4 FY1997 ............................................................................................................................................... 9 2.4.1 Conclusions................................................................................................................................... 10 2.4.2 Observations on Infrastructure Development............................................................................11 3 RE EVALUATING LONDON AND RESULTS FOR TOKYO..................................................... 13 3.1 Similarities between results and the importance of the reference scenario ..................................13 3.2 Final results for London and Tokyo ................................................................................................13 3.3 The meaning of the results..............................................................................................................16 4 OTHER CONTRIBUTORY MATERIAL......................................................................................... 18 4.1 Summary.......................................................................................................................................... 19 5 TRANSFERABILITY OF METHODOLOGY.................................................................................. 20 5.1 Factors affecting real project viability ............................................................................................ 20 5.1.1 Costs................................................................................................................................................20 5.1.2 Benefits........................ 20 5.1.3 Legislation and policy 21 5.1.4 Public acceptance ...... 22 5.1.5 Champions ............... 22 5.1.6 Future opportunities... 22 6 TRANSITIONAL STRATEGY OPTIONS AND DEVELOPMENT 24 6.1 Factors affecting strategy development ......................................................................................... 24 6.1.1 Economics..................................................................................................................................... 25 6.1.2 Disruption to existing infrastructure.......................................................................................... 25 6.1.3 Existence of suitable sites........................................................................................................... 25 6.1.4 Demand potential........................................................................................................................26 6.1.5 Development of demonstration projects....................................................................................26 6.1.6 Existing andfuture legislation...................................................................................................27 6.1.7 Comparisons between fuels........................................................................................................27 6.1.8 Potential for increased coverage of area andfor network development..............................28 6.1.9 Potential for alteration pending future analysis ......................................................................28 6.1.10 Ability to meet the intended goal of 10% energy use as hydrogen in 2015..........................28 6.1.11 Linking to other urban/rural areas ...........................................................................................29 6.2 Summary.......................................................................................................................................... 29 7 FINAL TRANSITIONAL STRATEGY..............................................................................................30 7.1 Key points in transitional strategy...................................................................................................30 7.2 Developing the transitional strategy............................................................................................... 30 7.3 Target markets.................................................................................................................................. 31 7.4 Transitional strategy.........................................................................................................................34 8 CONCLUSIONS.....................................................................................................................................38 8.1 Methodological conclusions ............................................................................................................38 8.2 Other conclusions ............................................................................................................................. 38 9 BIBLIOGRAPHY AND REFERENCES 41 Preface The Japanese Government is concerned about the long-term availability and cost of fossil fuels, as well as the environmental consequences of their use. As a result, over the past 20 years, it has played an active part in the development of new energy sources. Hydrogen could be a significant energy source for Japan in the future. In 1992 the Agency of Industrial Science and Technology in the Ministry of International Trade and Industry (MITI) drew up proposals for the International Clean Energy Network Using Hydrogen Conversion (WE-NET: World Energy Network) project as part of the New Sunshine Project. The WE-NET project aims at the efficient utilisation of energy from renewable resources. These resources are not evenly distributed around the world. The project seeks to establish the technologies necessary for the construction of a world-wide hydrogen energy network. The system will include the use of renewable energy resources to produce hydrogen from water, the conversion of the hydrogen into a form suitable for transportation, and the distribution of hydrogen for use as a fuel in cities, to industry and for power generation. The world-wide diffusion of hydrogen-related technologies would contribute to reductions in carbon dioxide emissions, help to meet international energy demand, create opportunities for additional energy production, and provide those countries which have ample renewable energy resources with a means of exporting them. During 1994 the New Energy and Industrial Technology Development Organisation (NEDO) invited the Imperial College of Science, Technology and Medicine and the London Research Centre in the United Kingdom to participate in the programme of research. The focus of this research is on Subtask 3: Conceptual Design of the Total System. This is the fifth annual report of results. Imperial College and the London Research Centre have been assisted in their studies by the
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