Hydrogen Conversion Strategies and Barriers-Products, Devices, Kits, Cost, Technology

All of today’s hydrogen conversion products, demonstration models, and prototypes possess some deficiencies; they cannot yet provide, at an affordable cost, the level and quality of energy services, and hydrogen delivery system demanded by a broad base of consumers. While fuel cell technologies have generated much excitement, they are still in various stages of maturity. Most have not been manufactured in large quantities and numerous performance issues—including durability, reliability, and cost—remain to be resolved. Combustion turbines and engines that use hydrogen or hydrogen/natural gas blends, already in use in both mobile and stationary applications, are much closer to satisfying these criteria than are fuel cells. Some of the barriers preventing the market development of hydrogen devices include:

• No single fuel cell technology has met all the basic criteria for performance, durability, and cost. Basic and applied research in materials science and electrochemistry is required to improve the design and operation of all fuel cell technologies and provide and ongoing basis for substantial cost reduction and performance improvements.
• Fuel cells require enhanced materials, membranes, and catalysts to meet both engineering and cost criteria. For all types of hydrogen fuel cells except phosphoric acid fuel cells, reliability of performance and durability over extended hours of operation remain to be proven. Questions remain about the performance of all types of hydrogen fuel cells vehicles under diverse climatic conditions and geographic locations. Manufacturing scale-up issues and the associated need to establish high-volume demand are major barriers in achieving cost reductions.
• Research is needed to fill in critical knowledge gaps. Researchers require better information about the flame characteristics of hydrogen combustion and the impacts of conversion technologies on reciprocating engine and turbine designs. Existing databases need to be populated with more performance data for hydrogen-burning engines and turbines operating over extended periods; performance data needs include efficiency, emissions, and safety, for both mobile and stationary applications.
• Market and institutional barriers hinder development of cost- competitive hydrogen conversion devices. Customers do not see a robust value proposition that convinces them to choose hydrogen conversion products. Substantial cost reduction will be essential particularly without a bridging incentive or government mandate fostering use of hydrogen conversion kit products rather than lower- cost conventional fuels and products. In the absence of such policies, conventional fuels and conversion devices will continue to be the only practical option for consumers.

Hydrogen Conversion Strategies Most of the paths forward involve research and development activities. In particular:

• Continue research and development on fuel cell materials and engines. Investing in efforts to increase fundamental understanding of current materials, interfaces, and processes will support important advances, such as improving and reducing the costs of the catalysts used in fuel cells, or developing materials that will improve thermal management and invite combined heat and power opportunities.
• Enhance manufacturing capabilities for fuel cells. Techniques are needed for handling high fuel cell production volumes and achieving better consistency and quality control. Advancements in this area are one of the surest means to achieving the large cost reductions needed to move fuel cells from niche to mass markets.
• Collect more and better information on operating performance at existing demonstration sites. Improved instrumentation and expanded data collection efforts are required to facilitate analysis of the full range of cost, efficiency, and emissions parameters for all mobile and stationary applications under a wider range of environmental conditions. At the same time, better market analysis is needed to provide the financial community with an improved understanding of the potential for fuel cells and hydrogen-using engines and gas turbines.