Hydrogen Economy - Rationale

Rationale

A hydrogen economy is proposed to solve some of the negative effects of using hydrocarbon fuels where the carbon is released to the atmosphere. Modern interest in the hydrogen economy can generally be traced to a 1970 technical report by Lawrence W. Jones of the University of Michigan.

In the current hydrocarbon economy, transportation is fueled primarily by petroleum. Burning of hydrocarbon fuels emits carbon dioxide and other pollutants. The supply of economically usable hydrocarbon resources in the world is limited, and the demand for hydrocarbon fuels is increasing, particularly in China, India, and other developing countries.

Proponents of a world-scale hydrogen economy argue that hydrogen can be an environmentally cleaner source of energy to end-users, particularly in transportation applications, without release of pollutants (such as particulate matter) or carbon dioxide at the point of end use. A 2004 analysis asserted that "most of the hydrogen supply chain pathways would release significantly less carbon dioxide into the atmosphere than would gasoline used in hybrid electric vehicles" and that significant reductions in carbon dioxide emissions would be possible if carbon capture or carbon sequestration methods were utilized at the site of energy or hydrogen production.

Hydrogen has a high energy density by weight. An Otto cycle internal-combustion engine running on hydrogen is said to have a maximum efficiency of about 38%, 8% higher than a gasoline internal-combustion engine.

The combination of the fuel cell and electric motor is 2-3 times more efficient than an internal-combustion engine. However, the high capital costs of fuel cells, about $5,500/kW in 2002, are one of the major obstacles of its development, meaning that the fuel cell is only technically, but not economically, more efficient than an internal-combustion engine.

Other technical obstacles include hydrogen storage issues and the purity requirement of hydrogen used in fuel cells – with current technology, an operating fuel cell requires the purity of hydrogen to be as high as 99.999%. On the other hand, hydrogen engine conversion technology is more economical than fuel cells.