Innovation and Hydrogen in the Economy

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Innovation is generally regarded as positive and beneficial. Still, some who lean leftward politically may identify economic sectors or workers who are omitted by inventive and enterprising activity. They sometimes prefer public works projects that make persons or supplies available, can have the effect of stimulus, and require labor that is difficult to outsource. As the 2020’s unfold, environmental issues are a priority, and there is a slight juxtaposition of approaches to them. 

Green New Deal legislation emphasizes infrastructure spending. However, Democratic nominee Joe Biden, who is ahead in a lot of polls against President Trump and identifies with moderate politics, calls for development of hydrogen gas, which can be used as a clean fuel. Evidently the Green New Deal, which mentions investment in zero-emission vehicle capability, does not contemplate hydrogen specifically. It is notable that one of the bill’s authors, Senator Ed Markey, has positions on the Committee on Commerce, Science, and Transportation as well as the Committee on Environment and Public Works. 

An Hydrogen Economy

Biden’s environmental platform calls for some infrastructure spending, such as a rail system connecting Washington and Oregon; though “Unmatchable American innovation” may have priority. His infrastructure program emphasizes sustainability, with attention to electric vehicle charging. Moving further ahead with hydrogen might not involve all the same political supporters, or economic implications, of spending on, or investing in, asphalt, airport or rail systems. 

A new governmental report has granularity about potential uses of hydrogen gas. It is the work of Democrats in the US Senate who comprise a Special Committee on the Climate Crisis. Senator Brian Schatz of Hawaii is chairman. Markey is among the special committee’s members. Transportation and storage of the element sounds important. 

There should also be future roles for private businesses because of a need to construct or upgrade fuel stations, establish dealerships, or put facilities for parts and maintenance of hydrogen vehicles in place. Potential opportunities are various. Hydrogen perhaps is viable for steel-making. Capture or generation of the gas is of course necessary to most scenarios. 

Generators and Fuel Cells

Different technologies can separate hydrogen from oxygen by electrifying water through a process known as electrolysis. There are Proton Exchange Membrane (PEM), Solid Oxide (SO), and alkaline systems. PEM currently has positive press treatment, while alkaline is used in China and SO potentially has its own advantages. PEM products are relatively compact in size and are suitable for use with renewable energy. SO electrolysers can possibly use excess heat created in industrial settings. Alkaline products are substantially cheaper–and the Chinese can manufacture or produce them.

PEM Fuel Cell, Source: Real Engineering video

A fuel cell can be likened to a battery in that it generates power, but with hydrogen gas.

Europe

Europe, putting devastating conflict such as World War II behind it through continental integration, has a Green Deal program. Consistent with the Green Deal, the European Commission recently announced a need of “…at least 6 gigawatts of renewable hydrogen electrolysers,” by 2024. There should be ongoing research and development as well as demand for PEM producers to meet. 

There are several companies on the other side on the Atlantic Ocean working on hydrogen technologies. One is ITM Power in the United Kingdom. ITM has a partnership with Royal Dutch Shell. Another is Siemens AG of Germany. Siemens should soon be spinning off its renewable energy division, Siemens Energy, which aims to be involved in hydrogen transmission, generation, and storage. Norway’s Nel has recently received a significant purchase order for a PEM electrolyser in Europe, and is also a supplier of alkaline electrolysis equipment. 

Private Enterprise in United States

Though the special committee’s report mentions buses, hydrogen gas seems most applicable to trucking over distances because of reasons that include weight and space savings, and also ease of refueling versus recharging. According to a source quoted in a current headline, cities account for 72% of greenhouse gas emissions, so battery electric, as opposed to hydrogen fuel cell, vehicles may have urgent need. Though a truck, van or bus assigned to a daily route can recharge overnight, a rig involved in interstate commerce cannot do so as easily and benefits from a longer range.

Nikola Corporation, headquarted in Arizona, a location consistent with availability of solar energy, is embracing PEM electrolysis. It is an aspiring company that recently got an order for battery-powered garbage trucks. Some of its objectives are to produce hydrogen gas, compress it, make it available at its own future fueling stations, and manufacture vehicles that run on it. 

Plug Power, based in Lathan, New York, aims to offer PEM equipment in Europe. It is in the process of selecting a domestic gigafactory site to produce it. The firm intends to bring equipment costs down.

The following YouTube video is about Nikola, which is shown in a positive light. It also offers comprehensive treatment of hydrogen’s applicability to trucking. Actual production of vehicles that are powered with compressed gas is probably the most formidable of several obstacles that are ahead for Nikola.


Both the Democratic nominee for president and a Special Committee on the Climate Crisis in the US Senate are now considering future use of hydrogen gas as a zero emission fuel. Support of such innovation may differ in important ways from investments in infrastructure called for in the Green New Deal. Even if the vast majority of harmful emissions are attributable to cities, placement of fuel cell trucks on the interstate highway system can be helpful to the environment. Amid international competition, cleaner vehicles may have immediate priority over newer infrastructure for them to use. 

***The author owns stock in Nikola (NKLA).

***There is a news release today that General Motors has just entered a partnership with Nikola

9/18/20 With all the ruckus about due diligence in light of, in my opinion, an overly publicized short selling report, it could be better to list other domestic firms involved in a potential hydrogen economy.  There is Fuel Cell Energy and also a penny stock corporation, SunHydrogen.  Canada’s Ballard Power Systems could be worth investigation.

9/30/20 It appears that GM had several incentives in the tentative deal, including EV credits. If, with the stock price roughly half of what it was at the announcement, GM is willing to walk away, a delay, or maybe new partner(s), might not be such a loss to Nikola shareholders.


 

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