Global Wind Energy
Clean and Renewable Power Generation
Biofuels, Hydrogen and Fuel Cells
 

Research Directions: Biofuels, Hydrogen and Fuel Cells

Fuel cells (FCs) may become the internal combustion engines (ICEs) of the 21st century, but for now FCs still have much to prove in the transport sector. ICEs transformed the energy industry in the last century, enabling a transition from coal to oil. Fuel cells are ultimately expected to disrupt this century’s energy markets, shifting demand from oil to hydrogen, a cleaner, more efficient power source for everything from cars to utilities.

The ultimate goal is cleaner, more efficient power – ideally from hydrogen but from traditional gases and biofuels as well. In the short term, however, fuel cell markets must demonstrate improved reliability at significantly lower costs. Interestingly, it is large gas utilities (primarily in Europe and Japan) that are driving early commercialization of FCs, in CHP applications that compete with traditional power and heat offerings.

The Japanese government is intent on the success of fuel cell globalization. The Large-Scale Demonstration program has engaged Japan’s leading energy companies and has promoted fuel diversity. Tokyo Gas and Osaka Gas supply their own natural gas reformers, while Nippon Oil and other refiners have designed kerosene and LPG reformers.

UK, Germany, and Scandinavia are keen on micro CHP, while Italian manufacturers look to other markets. As the fuel cell market matures, stack developers are looking to conventional marketing channels—distributors, representatives, and service companies.

When can we expect the true global commercialization of stationary fuel cells? How are companies opening distribution channels and agreements between developers and major utilities, fuel suppliers, and manufacturers?

In the shorter term, ethanol and bio-diesel are getting a lot more attention as alternative, clean fuel sources for the transport sector. US policies have driven tens of billions of dollars into corn ethanol production, while Brazil has solved its energy independence with the help of a robust sugar-ethanol industry. But without significant developments in technologies that can tap agriculatural and other wastes, like cellulosic ethanol, it is difficult to see how the world could possibly grow enough feedstock crops (corn, sugar, soybeans, etc) to make more than a marginal contribution to fuel supply.

With rising feedstock prices and declining gasoline prices undercutting demand, the corn-based ethanol industry in the US appears to be nearing overcapacity, although government support could expand demand substantially in the next decade. However, US suppliers must identify alternative renewable fuel sources to corn for ethanol production. In Europe, the EU is expected to step up efforts to expand bio-diesel production, although feedstock issues are limiting scale in that region as well. However, new technologies such as cellulosic ethanol and new bio-engineering advances, along with new feedstock solutions such as algae and highly productive crops, continue to offer tremendous promise.

Is the answer shifting from a hydrocarbon economy to a hydrogen economy? Whether combusted or converted by fuel cells, hydrogen is a clean, efficient alternative, and most of the major oil companies are looking at longer term strategies for producing, transporting, and storing hydrogen. But the biggest unknown remains where to source hydrogen. The cheapest alternative is to reform hydrogen from natural gas, but natural gas supplies face the same pressures as oil, which is why NG prices have hit the roof. Electrolyzing hydrogen from water provides an abundance of supply, but where will the electricity come from and at what cost?

EER Resources – Biofuels, Hydrogen and Fuel Cells

EER offers research and analysis in on biofuels, hydrogen, and fuel cell markets. Click on the following links for more information:

Advisory Services

Key Deliverables