Latest Developments in the Emerging Hydrogen Economy
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Latest Developments in the Emerging Hydrogen Economy TIMOTHY C. LINDSEY, PH.D. SENIOR ADVISOR UNIVERSITY OF ILLINOIS SMART ENERGY DESIGN AND ASSISTANCE CENTER [email protected] SEPTEMBER 1 0 , 2020 Today’s Topics ➢Technical Breakthroughs and Opportunities ➢Global Developments ➢US and State Initiatives ➢Key Corporate Initiatives ➢Midwest Hydrogen Partnership University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. ''With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free.’’ …..George W. Bush January 28, 2003 University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Innovation Diffusion Curve University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 Source: Rogers (2003) © 2020 Timothy C. Lindsey. All Rights Reserved. Early Stage Innovation Adoption Innovation Critical Mass Adoption Initial Commercialization Widespread Enthusiasm University Challengesof Illinois at Urbana-Champaign Adoption Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) TimeAugust 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Interest in Hydrogen and Fuel Cells is Growing (Again) • Significant planning and investment took place in the early 2000s • Fuel cell technologies failed to deliver satisfactory performance and financial returns for investors • Technology developers have continued to work to address shortfalls • Considerable progress has been made toward improving the technology’s performance and reducing costs University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Technical Breakthroughs and Opportunities Breakthroughs in Fuel Cell Technology University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Recent Breakthroughs in Hydrogen Technology • Reduced overall costs • Cheaper and better catalysts • Higher durability • Higher gas purity • Better materials • Renewable (green) hydrogen • Expanding renewable energy sector University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Types of Hydrogen Production Grey – Produced from fossil fuels by steam reforming Blue-Produced with low CO2 emissions • Nuclear energy using electrolysis • Fossil fuels with carbon sequestration Green- produced from renewable energy • Electrolysis powered by wind, solar, or hydro • Steam reforming of renewable natural gas University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Expanding Renewable Energy Sector 1. Cost of renewables has declined 2. Availability of renewables has increased 3. Increased intermittency challenges 4. Increased need for grid storage and stability Net effect: cost of hydrogen production is declining while the demand is increasing University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen’s Role in Grid Storage • Early investments by NextEra Energy Inc. and Dominion Energy Inc. • Los Angeles Department of Water and Power ➢ $1.9 billion effort to convert a coal-fired power plant in Utah ➢ Will run on hydrogen produced with excess wind and solar power. University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen Power for Data Centers Microsoft is conducting a demonstration project, with a 250-kW fuel cell system to power a data center in Utah Source: GreenBiz (July, 2020) University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. 14 Hydrogen’s Role in Transportation This is an electric vehicle!! University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. 15 Advantages of Fuel Cell Electric Vehicles • Fewer emissions • Fast fueling • Range • Performance • Scalability • Future innovation University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Disadvantages of FCEVs • Lack of fueling infrastructure • 95% of commercial hydrogen is produced from natural gas and generates CO2 as a by-product – but that is changing • Fuel cell drive trains are expensive • H2 must be stored at high pressure • Codes and standards for storing and dispensing H2 are complicated University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen Economics Fuel Cost Hydrogen made from fossil fuels currently costs between $1-$1.8/kg. Green hydrogen can cost around $5-8/kg (heavily dependent on the cost of power) A kg of H2 contains about the same energy as a gallon of gasoline Fuel Consumption Recent analyses by: • IEA (June, 2019) A FCEV drive train is about twice as efficient • MIT (August, 2020) and as an internal combustion drive train • Wood Mackenzie (August, 2020) project that the cost of green hydrogen will fall 30% by 2030 “ University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. 18 Truck Comparison: Battery vs. Hydrogen University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen in Trucking ➢ Nikola ➢ Hyundai/Cummins ➢ Toyota/Kenworth ➢ Daimler/Volvo ➢ Honda/Isuzu ➢ Weichai University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen Powered Locomotives ➢ Alstom has successfully piloted 2 - H2 powered trains in Germany for the past 1.5 years ➢ Plans to begin replacing 14 diesel units in 2022 Source: (Alstom, May 2020) University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Other Hydrogen Applications Under Development ➢H2 in machinery applications ➢H2 in maritime applications ➢H2 for heating applications ➢H2 based steel production University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Global Developments European Hydrogen Initiatives ➢European Commission recently formed the European Clean H2 Alliance ➢Just launched a 430B euro hydrogen strategy • Key to the EU’s goal of cutting greenhouse gas emissions by at least 50% by 2030 • Hydrogen’s share of Europe’s energy mix is projected to grow from < 2% to 13-14% by 2050 Source: Reuters (July 2020) ➢Germany is planning a 2-year 130B euro CoVid recovery program that includes a focus on green hydrogen Source: Renew Economy (June, 2020) ➢France is planning to invest 7B euro in hydrogen by 2030 Source: Bloomberg (Sept 2020) ➢Other notable projects underway in the UK, Belgium, Portugal and The Netherlands University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Hydrogen Initiatives in Asia Pacific Region ➢Japan plans to deploy to 40,000 FCEVs by the end of 2020; 200,000 FCEVs by 2025; and 800,000 FCEVs by 2030 Source: GTM (April, 2018) ➢China set goals of 50,000 FCEVs on the road by 2025; 1 million FCEVs on the road by 2030 Source: South China Morning Post (Sept. 2019) ➢South Korea set goals for 80,000 FCEVs by 2022 Source: Korea Herald (Jan. 2019) ➢Australia set aside $300 million ($191 million USD) to jumpstart hydrogen projects Source: Reuters (May, 2020) University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. Oil and Gas Companies Playing a Role ➢Shell proposes 'Europe's largest' green hydrogen project in North Sea Source: Edie (July, 2020) ➢Shell announces plans to add hydrogen infrastructure at 48 California stations Source: Shell (Sept, 2020) ➢BP commits $5 billion a year in renewable energy like wind, solar and hydrogen Source: New York Times (August, 2020) ➢Saudi green hydrogen project announced to be largest in world University of Illinois at Urbana-Champaign Smart Energy DESIGN ASSISTANCE CENTER (SEDAC) Source: H2 Fuel News (July, 2020) August 2020 © 2020 Timothy C. Lindsey. All Rights Reserved. The Hydrogen Council • Global coalition of 90+ CEOs working to enable the energy transition through hydrogen • Uses its global reach to promote collaboration between governments, industry and investors • Provides guidance on accelerating the deployment of hydrogen solutions around the world Board Consists of CEOs from Major Corporations Hydrogen could deliver 18% of •Air Liquide •Johnson Matthey global energy demand, abate 6 •Anglo American •Royal Dutch Shell Gt of CO2 annually and create •China Energy •Sinopec 30 million jobs by mid-century •Cummins •Linde University