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1 Answering the Call: Hydrogen Fueling in the LA Basin Presented to DOT July 22, 2008.

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Presentation on theme: "1 Answering the Call: Hydrogen Fueling in the LA Basin Presented to DOT July 22, 2008."— Presentation transcript:

1 1 Answering the Call: Hydrogen Fueling in the LA Basin Presented to DOT July 22, 2008

2 2 Why Were Here: Critical Issues Facing U.S. High Oil Price Environment 1 $ Drive Towards Alternative Fuel 2 (Billions of Gallons) Drive Towards Alternative Fuel 2 (Billions of Gallons) $66.09 $56.59 Note: 1 Average price for period Vehicle fuel consumption in Gasoline Gallon Equivalents (Sources: U.S. DOE, EIA, Gas Vehicle Report, American Coalition for Ethanol) Ethanol/ Biodiesel 17B Gap 18B Gasoline 175B Clean Air Regulation/GHG Energy Security

3 3 Why Were Here: GM – April 2008 Dr. Larry Burns, VP R&D & Strategic Planning, GM: After spending well over $1 billion on FC system R&D, GM remains convinced FCVs have potential to be real Not discovered anything to suggest mass volume cant ultimately be attained Toyota, Daimler, Honda have echoed our sentiments GM reached stage where cannot continue progress solely on our own To reach market tipping point, customers must have safe/convenient access to affordable hydrogen Means energy industry and governments must join auto industry to sell FCVs in mass volume

4 4 Why Were Here: Daimler/UNEP – July 2008 Dr. Dieter Zetsche, Chairman, Board of Management, Daimler AG, + head of Mercedes-Benz Have developed the technologies and are now in position to introduce them to the market By introducing electric and fuel cell vehicles on the market in 2010, demonstrating our intention to fulfill responsibility for sustainable mobility Greatest challenge at present is to establish necessary infrastructure Now time for energy providers and petroleum companies to show proof of their commitment as well We have been approaching possible partners and taking the initiative

5 5 Why Were Here: G8 – July 2008 Japanese automakers providing eco-ride for G8 leaders Toyota FCHV-adv Mazda gas/hydrogen hybrid RX8 Honda FCX Clarity Reuters: Fuel cell carmakers face reality of only about 60* hydrogen stations in entire U.S. compared to 180,000 gas stations Even at green conscious Tokyo summit, closest hydrogen is about 13 miles away because of safety concerns *Nearly all are private and/or restricted use

6 6 Why Were Here: ITS, UC Davis – May 2008 ITS Study, UC Davis, 4 scenarios , LD vehicles Ca: -80% GHGs from 1990 levels H2 Success (major role 2025 and beyond) Efficiency - ICEVs Biofuels – ethanol and biodiesel Portfolio Conclusions H2 FCVs break even w/in 10 years (2023) Infrastructure to break-even year costs $8 billion; cumulative vehicle first cost difference $40 billion H2 leads to deeper cuts long-term No single pathway meets goals; portfolio approach is attractive

7 7 Why Were Here: GM/Shell GM/Shell Hydrogen Study: 56+ billion kg/H2/yr produced globally 180+ million FCVs 11 billion kg/H2/yr produced N Am 21+ million FCVs Primarily from natural gas Costs well understood $2-3/gge producing/dispensing U.S. natural gas: +2% consumption supports 10 million FCVs 50% CO 2 reduction W2W Economic viability leveraging existing asset base H2 production plants near almost all major US metro markets

8 8 Why Were Here: GM/Shell GM/Shell Hydrogen Study / U.S. Infrastructure: 100 top urban areas (70% of US pop) 130,000 miles of highway $10-15 billion investment enables 11,700 stations Supports first million FCVs Urban station every 2 miles Highway station every 25 miles

9 9 40 Stations in LA Basin: GM/Shell * bar stations in LA metro area 10 in heavily traveled corridors (OC, SB, LV, SD) Supports 40,000+ FCEVS Puts H2 station w/in approx. 3.6 miles of 15M consumers 10 miles worst case *All OEMS developing 700 bar, per GM, also need 350 bar availability for Honda etc. CaFCP: kg/day stations meet needs through 2014

10 10 40 Stations in LA Basin: GM/Shell Needed to take learning to next level Early capitalization risk managed by concentrating initial sales in specific geographic regions LA, NY, Shanghai New ZEV mandate, 6 LVMs: : 250-2,500 FCVs : 2, ,000 FCVs Infrastructure will dictate vehicle placement 2010 around the corner! Must act now to meet Phase 1 timeline

11 11 40 Stations in LA Basin: GM/Shell Gap analysis 1 public access 700 bar station NFCRC/UC Irvine Infrastructure providers/suitable land Partnerships complex, time consuming CA renewable requirements complex, costly ARB RFPs require partnerships w/state, not grants 50% cost share a killer; load doesnt justify expense CaFCP: Limited number qualified design, engineering, construction firms capable of building out infrastructure

12 12 Compressed Natural Gas (CNG) Taxis Airport transit Government vehicles Leading Provider of Natural Gas As a Transportation Fuel 40 Stations in LA Basin: Why Clean Energy? Liquefied Natural Gas (LNG) Regional trucking Refuse hauling Public transit Largest Alternative Transportation Fuel Provider275+ Fleet customers 14,000+ Natural gas vehicles 170+ Natural gas fueling stations

13 13 Clean Energy/GM LAX Hydrogen Station

14 14 Clean Energy Management Andrew J. Littlefair, President/CEO/Board Member Formerly president, Pickens Fuel Corp, predecessor to Clean Energy Served in various management positions, Mesa, Inc. Staff Assistant to the President, Reagan White House T. Boone Pickens, Board Member Author, Pickens Plan Founder, BP Capital Active management, BP Capital Equity Fund and Commodity Fund Founder, Pickens Fuel Corp., predecessor to Clean Energy Founder, Mesa Petroleum, CEO and chairman for 40 years

15 15 CORPORATE HOLDING OPERATIONAL Eden Innovations Ltd Energy Assets HyRadix Inc Chicago, USA Hythane Company LLC Denver, USA Coal Bed/Seam Methane Wales, UK Natural Gas South Australia, AUS Terratherma ( Geothermal) South Australia, AUS Greg Solomon, Executive Chairman Robert Gray, CEOAndrew Leibovitch, NED Eden Cryogenics LLC Columbus, USA David Cepla, President Roger Marmaro, President Steve Hensley, President 40 Stations in LA Basin: Why Eden Energy, Ltd?

16 16 Eden Energy, Ltd. U.S. Subsidiaries HyRadix Inc (Chicago, IL), Hydrogen reformer manufacturer Selected supplier to Praxair, the worlds 3rd largest industrial gas company Hythane Co. LLC (Denver, CO). Innovator of Hythane® Patented blending technology to generate required ratio of hydrogen : methane Eden Cryogenics LLC (Columbus, OH) Specialized cryogenic storage vessels for thermo-pressure compaction of gases Strategic supplier to NASA and major national laboratories PRODUCTION DEPLOYMENT STORAGE

17 17 Eden Energy Management Greg Solomon, Executive Chairman Solicitor, 30+ years Australian and international experience Director, Eden Energy, since incorporation Executive chairman, Tasman Resources NL Robert Gray, PE, CEO Eden Innovations Ltd. 30 years experience commercializing technology, new businesses development Formerly president/CEO,HyRadix Inc. Formerly director of corporate strategy, UOP LLC Holds an MBA, 5 process patents, Six-Sigma Black Belt

18 18 GMs Hoped for LA Cluster, 30 Stations

19 19 GMs Hoped for LA Cluster, 30 Stations

20 20 GMs Hoped for Cluster & Existing H2 Stations

21 21 GMs Hoped for Cluster w/out Private H2 Stations

22 22 GMs Hoped for Cluster & Existing CNG Stations

23 23 GMs Hoped for Cluster – Phase One

24 24 GMs Hoped for Cluster – Phases One & Two

25 25 Co-location w/NG Stations: Benefits Central reformation lowest cost H2 production method On-site reforming proven technology, lowest cost 30+ kg/day 50% GHG reduction compared to gasoline vehicle W2W Half the hydrogen comes from water CAFCP: NG-based stations provide benefit until renewable costs decline Consumers will only switch if hydrogen costs less per mile than gasoline

26 26 Co-location w/NG Stations: Benefits India adopts policy Natural gas accepted by govt as pathway to H2 Hythane® marketed as premium blend of natural gas Renewable Energy Ministry & Society of Indian Automobile Manufacturers establish public-private partnership for Hythane® Modifying CNG cars, buses, three-wheelers 1 million H2 vehicles by 2020 World Bank helping finance; Delhi station to open 2009

27 27 NG 90-99% methane Renewable methane becoming available (Biomethane) Landfill gas, sewage treatment process dairy farms, biomass, etc. Iceland powers 100% NGV bus fleet with Biomethane CNG stations can be modified to co-locate hydrogen/Hythane® Natural Gas: Renewable and Sustainable

28 28 New Model Required! Old ones dont work! Infrastructure providers size station to load Not consumer-friendly Load doesnt justify investment Leverage natl gas infrastructure Use Hythane® as bridge OEM support required Agree to place cars where stations are located Open existing stations to other OEMs Take or pay contracts

29 29 Partners Required! In absence of sufficient demand to justify $ million infrastructure investment (40 stations), need: Funders as partners DOT, DOE, EERE, CARB, CEC, SCAQMD Shared risk, public rewards OEMs as partners GM -100 Honda -100 Nissan – 40 Etc.

30 30 Preliminary Budget – Phase One (10 Stations) Add 350 bar and 700 bar hydrogen fueling to 10 existing LA area CE stations Trucked in hydrogen when load under 30 kg/day Cost to install – approx $2 million On-site reformer when load 30+ kg/day Cost to install – approx $3 million Hydrogen generated on site less than half the cost of trucked in 100 kg/day reformer fuels approx. 20 cars per day Hythane® additional $250,000 Total estimated Phase One budget = $25 million Timeline: Open stations

31 31 DOT Leadership Key to Success DOT assigns team to work with Clean Energy/Eden Energy DOT forms Public Private Partnership ….takes lead in answering the call DOT calls meeting of OEMs Presents program, budget, timeline Obtains commitment to participate DOT calls meeting of potential funders – federal and state Presents program, budget, timeline Obtains commitment to participate DOT and Partnership set program launch date DOT holds regular accountability update meetings with Partnership

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