Hydrogen Applications
The average global oil demand in 2005 was 85 Mb/d, and is forecasted to be
growing1:
With the cost of oil around $50/bbl, the global oil trade market approximated $1.5 trillion pa.
Hydrogen has a number of commercial and technical applications. For the purpose of this review, only those related to hydrocarbons replacement by Hydrogen are taken into consideration.
These applications are:
1 Motor Fuel. In 2005, the demand for hydrocarbon products averaged 50 million b/d in OECD countries, only, including 15 million b/day of motor
gasoline1. Under the most favorable scenario, Hydrogen fuel cell vehicles will enter the market around 2025, and by 2050 will represent 30%, or 700 million, of the vehicles worldwide. The oil consumption of the same number of gasoline engine vehicles would be 15 million b/d, equivalent to around 13% of global oil
demand1,2.
In 2004, the global vehicle manufacturing production exceeded 64
million3. Apparently the vast majority of this fleet is powered by conventional fuels, i.e. motor gasoline and diesel fuel.
In terms of technology, Hydrogen may be used as a motor fuel in two different ways:
1.1 Fuel Cell Technology: The most promising technology, yet underdeveloped and cost inefficient. According to the industrial sources, in order to become commercially viable, the cost of the fuel cell stack will have to drop to $30 (U.S.) per kW of net power, compared with a cost of $103 last <2004> year and a target for this <2005> year in the $80
range4.
The majority of world-class vehicle manufacturers such as Honda, Mitsubishi, Daimler-Chrysler, Toyota, GM, and BMW, as well as oil super-majors (ChevronTexaco, BP, Shell) have their R&D departments actively working on developing fuel cell technology. The leading company in fuel cell technology is Ballard Power Systems based in Canada.
In his 2003 State of the Union Address, President Bush announced the Hydrogen Fuel Initiative, a $1.2 billion commitment over 5 years to accelerate Hydrogen related research to overcome obstacles in taking Hydrogen fuel cell vehicles from the laboratory to the
showroom5.
1.2 Conventional ICE: With little conversion, the conventional Internal Combustion Engines (ICE) may utilize Hydrogen as a fuel, similarly to vehicles running on natural gas. However, this approach may be considered as interim solution, while the emphasis is being made on fuel cell technology (see 1.1).
2 Power Generation, Heating: Similarly to 1.2, Hydrogen may be used in conventional power generation and heating applications instead of hydrocarbons (heating oil, natural gas and coal.
3 Chemical Industry: Today, about 40 million tons of Hydrogen consumed annually by chemical, refining, and processing
industries2.
1 International Energy Agency,
www.iea.org, 2005
2 Oil and Gas Journal, 19 December 2005
3 Organisation Internationale des Constructeurs d'Automobiles,
http://www.oica.net 2005
4 http://www.autoindustry.co.uk
5 US Department of Energy,
http://www.energy.gov/energysources/hydrogen.htm
