Introduction

Conclusions

Distribution

Any attempt to introduce a hydrogen-based economy faces a fundamental "chicken and the egg" type problem. Consumers will be reluctant to purchase hydrogen-based vehicles and appliances without an existing distribution network of hydrogen fuel, while investors will hesitate to finance a network of fueling stations and pipelines without a market base to use them.[1]

Against this backdrop, there are several options for creating a hydrogen distribution infrastructure.

Government Investment

As explored in our government section, the state may invest in a network of stations and subsidies for hydrogen-powered vehicles. This has been the strategy of the state of California through its Fuel Cell Partnership and Zero Emission Vehicle program. Estimates as to the number of hydrogen fueling stations nation-wide that would be necessary range from 10,000 to 40,000, out of a current total of about 150,000 gas stations. [1]

Current fueling stations in California

Source: California Fuel Cell Partnership

"Piggy-backing" on existing infrastructure

Other proposals focus on making use of existing structures in order to more practically make the transition away from hydrocarbons. For example, one proposal aims to use natural gas-reformers installed locally in order to convert the current natural gas pipeline network into a potential vehicle for hydrogen transport. Approximately 10,000 of these reformer stations could be finanaces at a cost of about $3-15 billion. [1] This would be sufficient to service 7 million hydrogen vehicles, or approximately 5 percent of the current U.S. auto fleet.

Another proposal, tailored to Denmark, aims to use hydrogen initially as an "energy-reservoir" where excess power in off-peak hours is used to hydrolize hydrogen, which is then stored for fuel in local turbine generators. [4] The hydrogen burns under conditions similar enough to natural gas that the generators could use the fuel interchangeably; in addition, because of Denmark's extensive wind-power generation system, the hydrogen can be generated purely through "excess power" during windy conditions, and then used later to provide electricity with zero CO2 output.

Source: Energistyrelsen

Sources

[1]Jensen, Marc W. and Marc Ross (2000). “The Ultimate Challenge: Developing an Infrastructure for Fuel Cell Vehicles.” Environment 41: 10-22.

[2] "Electrolysis for Energy Storage and Grid Balancing in West Denmark." Energistyrelsen (Danish Power Authority), 2004. http://www.risoe.dk/rispubl/nei/33030-0034.pdf