Low­Cost Hydrogen­from­Ethanol: A DistributedProduction System

Presented at the

Bio­Derived Liquids to Hydrogen Distributed ReformingWorking Group Kick­Off Meeting

Hilton Garden Inn – BWI

Baltimore, Maryland

Tuesday, October 24, 2006

By C. E. (Sandy) Thomas, Ph.D., PresidentH2Gen Innovations, Inc.Alexandria, Virginia

www.h2gen.com

Topics

• H2Gen DOE Program

• Why convert ethanol to hydrogen?

• Hydrogen ICE Hybrid Electric Vehicles

• Renewable Hydrogen Comparisons

• 100­Year Vehicle Simulation: Hydrogen vs. Gasoline

2

DOE Program

Task 1 : Demonstrate $3/kg DOE cost target with HGM­10,000

Task 2: Develop hydrogen­from­ethanol reforming capability

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4

2

3

The H Gen HGM­2000

Natural Gas

Water Hydrogen

Low Cost

Small Footprint

Highly pure product 2.1m

53 Nm /h

2000 scf/h

113 kg/day

5

Plant Floor

6

Field Units

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0

1

2

3

4

5

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Natural Gas = $4.5/MBTU; Electricity =5 cents/kWh H2Gen: HGM Cost Scaling size and quantity.XLS; Tab 'HGM$';Y87 - 1 / 12 / 2006

HGM-2000 HGM-10,000 HGM-26,450

H2 Capacity (tonnes/day)

H2 Cost ($/kg)

H2 Cost ($/kg)

& Capacity (tonnes/day)

Compressed Hydrogen Cost Projections

DOE Cost Target

8

US Natural Gas Prices

H2Gen: NG-Price.XLS; Tab 'ng-price' AB99- 10 / 22 / 2006

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6

8

10

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14

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Jan

-95

Jan

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-99

Jan

-00

Jan

-01

Jan

-02

Jan

-03

Jan

-04

Jan

-05

Jan

-06

Residential

Commercial

Industrial

CityGate

Utility

Wellhead

Natural Gas Prices

($/MBTU-HHV)

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0

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Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

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H2Gen: NG-Price.XLS; Tab 'Henry Hub' K46- 10 / 22 / 2006

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Natural Gas Prices

($/MBTU-HHV)

Natural Gas Price: Henry Hub

Hurricane

Katrina

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2

4

6

8

j

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AEO Energy Price Projections

H2Gen: NG-Price.XLS; Tab 'ng-price' CC35- 1 / 9 / 2006

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12

14

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1970 1980 1990 2000 2010 2020 2030

Year

Energy Costs ($/MBTU-HHV)

Industrial

Electricity

Industrial

Natural Gas

AEO 2006 Pro ections

Natural Gas Price Impact onH2 Cost

0

1

2

3

4

5

6

7

8

4 6 8 10 12

Natural Gas Price ($/MBTU-HHV)

HGM-2000

HGM-10,000

HGM-26,450

Compressed Hydrogen Cost

($/kg)

11

H2Gen: HGM Cost Scaling size and quantity.XLS; Tab 'Input Data';M36 - 1 / 9 / 2006

Ethanol Plan

• Obtained samples from various points in ethanol still

• Begin lab scale long­term reformer tests

• Iterate

• Scale up to HGM­2000 if justified

12

Renewable Ethanol to Hydrogen

Natural Gas Fuel H2 H2

H2 H2

H2 H2

H2 H2

Processor Compressor Storage Dispenser Vehicle Pipeline

Ethanol Fuel H2

H2 H2

H2 H2

H2 H2

H2 Processor Compressor Storage Dispenser Vehicle

Truck

H2Gen:Ethanol vehicles.XLS; Tab 'Flow Diagrams';P 20 11/14 /2004

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0

5

0

14

Renewable Prices vs. Natural Gas Prices

H2Gen: PV.XLS; Tab ' PV vs NG; N47- 10 / 17 / 2006

10

15

20

25

30

35

40

45

10 20 30 40 50 60 70 80 90 100 110 120

Natural Gas Price ($/MBTU) Industrial NG

Price = $9/MBTU

(Electricity = 3 cents/kWh)

Wind

Solar Thermal

Current Photovoltaics

Phoenix

Electricity Price

(cents/kWh)

Washington, D.C.

15

H2 ICE HEV-(Series Hybrid Shown)

Hydrogen is suppliedto the internalcombustion engine +generator

BatteryBank

ICE

GensetRegenerative

braking

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Ford Model U A direct hydrogen ICE hybrid electric vehicle (HEV)

2.3-liter supercharged 4-cylinder ICE

Range: 300 miles

H2: 7 kg @ 10,000 psi

Fuel Economy: 45 mpgge

H2RV – hydrogen hybrid research vehicle

Bill Ford, Jr.: “I believe that hydrogen-powered internal combustion engines are the bridge between today’s gasoline hybrids and tomorrow’s fuel cell vehicles.”

Hydrogen ICE Hybridvs. Fuel Cell Vehicle

• Hydrogen Hybrid is much lower cost today– ($50,000 vs. $500,000 to $1,000,000 or more)

• Hydrogen Hybrid depends on 100+ year old ICE technology – (Fuel cell vehicle durability still lacking)

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0

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H2Gen:Ethanol vehicles.XLS; Tab 'Charts';H 75 10/22 /2006

Assumptions: gasoline = $2.5/gal; Ethanol = $1.5/gal; PV =20c/kWh for 7 hrs/day; Wind = 5 c/kWh for 8.4 hrs/day

Gasoline HEV fuel economy = 1.45 X ICEV; H2 HEV = 1.71 X ICEV; FCV = 2.4 X ICEV

Annual capital recovery (NRC) = 0.16; Capacity factor = 0.9; Natural gas =$ 8.98/MBTU; Electricity = 7 cents/kWh

10 20 30 40 50 60

Gasoline ICEV

Gasoline ICE HEV

H2 (NG) ICE HEV

H2 (NG) FCV

H2 Ethanol ICE HEV

H2 Wind ICE HEV

H2 PV ICE HEV

H2 Ethanol FCV

H2 Wind FCV

H2 PV FCV

Fuel Cost (cents/mile)

Fuel Costs per Mile

Renewable Hydrogen Options

Greenhouse Gas EmissionsGreenhouse Gases 100-yr At mospheric Residence Time; GHG M ult iplier Fact ors:

(grams/mile of CO2-equivalent) CH4 = 22; N2O = 355; CO = 2; NM HC = 5; NOx = 3.7

ICEV = Int ernal Combust ion Engine V ehicle ; FCV = Fuel Cell Vehicle

Marginal US SM R = St eam M et hane Ref ormer; AIV (Aluminum Int ensive Vehicle)-Sable Glider 1.25 X

EPA Combined Driving Cycle800

Grid Mix SMR Natural SR Ethanol

700 Gas

California Marginal Grid Mix

Biomass (45% TO 50%

(60% TO 85% Reduction)

Reduction) 600

500

400

300

200

100

0 Gasoline ICEV Electrolytic H2 SMR-Liquid H2 SMR-Compressed Ethanol H2 FCV PV-Wind H2 FCV

FCV FCV H2 FCV H2Gen: PE.XLS; Tab 'Gr aphs'; AQ406 9/ 14 / 2004

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0

0

20 H2Gen:Ethanol vehicles.XLS; Tab 'GHG vs Fuel Cost';K 51 4/4 /2006

200

400

600

800

1000

1200

1400

10 20 30 40 50 60

Fuel Cost (cents/mile)

H2 (Grid Electrolyzer) HEV H2 (Grid Electrolyzer) FCV Gasoline ICEV Gasoline-ICE HEV Gasoline Plug-In ICE HEV H2 (NG-HGM) ICE HEV H2 (NG-HGM) FCV H2 (Corn Ethanol-HGM) ICE HEV H2 (Corn Ethanol-HGM) FCV H2 (Bio-Ethanol-HGM) ICE HEV H2 (Bio-Ethanol-HGM) FCV H2 (Wind-Electrolyzer) ICE HEV H2 (Wind-Electrolyzer) FCV H2 (PV-Electrolyzer) ICE HEV H2 (PV-Electrolyzer) FCV

Greenhouse Gas Emissions

(g/mile)

GHGs vs. Fuel Cost

H2­PV­Electrolysis (20 c/kWh for 7 hr/day)

Gasoline:$2.50/gal.

HEV

H2­Grid­Electrolysis (6 c/kWh for 24 hr/day)

H2 ICE HEV

H2 FCV

H2 HEV

ICEV

H2­Wind­Electrolysis (5 c/kWh for 8.4 hr/day [35%])

H2 FCV

PHEV = Plug­in hybrid; 40% on electricity at 8 cents/kWh.

H2 = hydrogen; HEV = hybrid electric vehicle; FCV = fuel cell vehicle; ICEV = internal combustion engine vehicle; PV = photovoltaic (solar cells)

PHEV

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0

0 5

100

200

300

400

500

600

10 15 20 25

Fuel Cost (cents/mile)

Gasoline ICEV

Gasoline-ICE HEV

H2 (NG-HGM) ICE HEV

H2 (NG-HGM) FCV

Gasoline Plug-In ICE HEV

H2 (Corn Ethanol-HGM) ICE HEV

H2 (Corn Ethanol-HGM) FCV

H2 (Bio-Ethanol-HGM) ICE HEV

H2 (Bio-Ethanol-HGM) FCV

H2 (Wind-Electrolyzer) ICE HEV

H2 (Wind-Electrolyzer) FCV

Greenhouse Gas Emissions

(g/mile)

GHG vs. Fuel Cost (Scale change)

Gasoline

ICEV

HEV

H2­Natural Gas ICE HEV

H2­FCV

H2­Corn Ethanol ICE HEV

H2­Cellulosic Ethanol ICE HEV

H2­Wind­Electrolysis (5 c/kWh for 8.4 hr/day [35%])

Electricity = 8 cents/kWh; PHEV electricity 40% H2Gen:Ethanol vehicles.XLS; Tab 'GHG vs Fuel Cost';AC 51 4/5 /2006

Corn Ethanol = $1.5/gallon Cellulosic Ethanol = $0.75/gallon Natural Gas =$8.98/MBTU Gasoline =$2.5/gallon

Note: these charts are based on the NRC/NAS capital recovery assumptions (16% annual capital recovery & 90% capacity factor)

PHEV

Vehicle Options Considered for 100­year Computer Simulation

• Conventional Gasoline ICEVs

• Gasoline ICE HEVs (Prius, Insight, etc.)

• Gasoline Plug­In HEVs

• Hydrogen ICE HEVs

• Hydrogen FCVs

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Renewable Hydrogen Fraction

H2Gen: H2ICE HEV.XLS; Tab 'Annual Sales';DU 27 4/13 /2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Gasoline SI HEV

H2 HEV

H2 FCV

Renewable H2

Market Share of New Car Sales

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Greenhouse Gases (US)

0.0E+00

5.0E+08

1.0E+09

1.5E+09

2.0E+09

2.5E+09

3.0E+09

3.5E+09

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

US Greenhouse Gas Emissions(metric tonnes CO2-equivalent/year)

Baseline ICEV

Gasoline ICE HEV

(& Plug-In Hybrid)

H2 ICE HEV

H2 FCV

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Oil Consumption (US)

H2Gen:H2 ICE HEV Global.XLS; Tab 'Charts';V 32 10/13 /2005

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

US Gasoline Consumption(Billion Barrels/year)

H2 FCV

H2 ICE HEV

Gasoline ICE HEV

Baseline ICEV

Gasoline/Plug-In ICE HEVwith 40% Grid Energy

Hydrogen Infrastructure Costs (US)(Distributed Hydrogen Generators at Fueling Stations)

Annual Hydrogen Infrastructure Investments

($US Millions)

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2000 2020 2040 2060 2080 2100

Average = $5.8B/yr H2Gen: H2 ICE HEV.XLS; Tab 'Annual Sales';BF 26 4/11 /2004

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Infrastructure CostsAnnual US Fuel Infrastructure Capital Expenditures ($US Millions)

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

CurGrent Oil & asoline

Expenditures in US

Projected Hydrogen

InOn­Sit

frastructure e Costs

2000 2005 2010 2015 2020 2025 2030

H2Gen: H2 ICE HEV.XLS; Tab 'Annual Sales';GJ 123 5/21 /2006 27

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VOC CO NOx CO2

Damage Costs of Pollution: ($/metric tonne) 2,660 2,990 5,300 25

Crude Oil Price $40/bbl H2Gen: H2 ICE HEV.XLS; Tab 'Annual Sales';EE 26 9/14 /2004

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Annual Costs & Savings

($US Millions/year)

Hydrogen InfrastructureInvestments

Oil Import Savings Pollution Savings

Hydrogen HEV Scenario

Total Societal Savings

H2 Costs & Societal Savings

H2

0

29

Costs & Societal Savings (scale change)

Crude Oil Price $40/bbl H2Gen: H2 ICE HEV.XLS; Tab 'Annual Sales';EU 27 9/14 /2004

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2000 2005 2010 2015 2020 2025 2030 2035 2040

Annual Costs & Savings ($US Millions/year)

Hydrogen Infrastructure

Investments

Oil Import Savings

Pollution Savings

Hydrogen HEV Scenario

Total Societal Savings

0 5

é

30

H2Gen: H2 ICE HEV.XLS; Tab 'Annual Sales';EU 26 10/18 /2006

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

100

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Fuel Tax Required to Pay for H2 Infrastructure (cents/gallon)

How would we pay for it?

Existing US State & Federal Highway Taxes

Highway Taxes Required to Pay for H2 Infrastructure

Existing Qu bec & Federal Highway Taxes

0

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DOE Hydrogen Program Spending Compared to Prior Projects

H2Gen: H2 ICE HEV.XLS; Tab 'Cost';J 21 10/18 /2006

100

200

300

400

Iraq War to date

Federal Highway System

Appollo Moon

Program

100 X DOE Hydrogen Program

US$ Billions

DOE annual hydrogen program $ = 1.45 days of Iraq War $

Transition Strategy

Tomorrow:

Hydrogen ICE Hybrid Electric

Vehicles

Hydrogen Fuel Cell Vehicles

Hydrogen Made from Natural Gas

Renewable Hydrogen

Today:

Hydroelectric, Ethanol, Wind, Solar Thermal, PV,

Geothermal, Biomass, MSW, Landfill gas 32

Why not use ethanol directly in ICEVs?(Instead of converting to hydrogen for FCVs)

• Substantially reduced criteria pollutants

• 45% lower greenhouse gases HGM efficiency =75% X FCV 2.4X efficiency = 1.8 longer range/gallon of ethanol

• Direct ethanol in ICEVs & H2 from ethanol are not mutually exclusive

• When many vehicles run on hydrogen, ethanol is preferred feedstock over natural gas

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Conclusions

• Hydrogen will cost less than $1.50/gallon of gasoline (on a range­equivalent basis)

• Gasoline Hybrids are a dead­end street(with respect to GHG & Oil reductions)

• Hydrogen from ethanol is the leastcostly renewable hydrogen option

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Thank You• Contact Information:

Frank Lomax, PI 703­778­3121 lomax@h2gen.com

Maxim Lyubovsky703­778­3149mlyubovs@h2gen.com

C.E. (Sandy) Thomas, President703­778­3122thomas@h2gen.com

H2Gen Innovations, Inc.Alexandria, Virginia 22304www.h2gen.com

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