Toward a More Secure 

and Cleaner Energy 

Future for America 

A NATIONAL VISION OF 

AMERICA'S TRANSITION TO 

A HYDROGEN ECONOMY — 

TO 2030 AND BEYOND 

Based on the results of the 

National Hydrogen Vision Meeting 

Washington, DC 

November 15-16, 2001 

February 2002 

. . 

United States Department of Energy

A Call for Partnership

This document outlines a vision for America’s energy future—a more secure nation 

powered by clean, abundant hydrogen. This vision can be realized if the Nation works 

together to fully understand hydrogen’s potential, to develop and deploy hydrogen 

technologies, and to produce and deliver hydrogen energy in an affordable, safe, and 

convenient manner. 

President Bush’s National Energy Policy says, “In the long run, alternative energy 

technologies such as hydrogen show great promise.” In response, Energy Secretary 

Spencer Abraham recently stated, “The President’s Plan directs us to explore the 

possibility of a hydrogen economy.” This vision document is a first step. It will be used 

as a foundation for formulating the elements of a National Hydrogen Energy Roadmap. 

Hydrogen is a long-term solution to America’s energy needs, with near-term possibilities. 

Efforts to achieve our energy goals need to begin now and continue with a sustained 

commitment over the next several decades. It is important to strengthen our partnerships 

among government, industry, and others in order to improve hydrogen technologies and 

systems, and to build the infrastructure—both physical and institutional—that will be 

needed in the years ahead. The tragic events of September 11, 2001, highlight the 

urgency of making progress toward greater energy security. 

The efforts of the 53 business executives, Federal and State energy policy officials, and 

leaders of universities, environmental organizations, and National Laboratories who 

contributed to the development of this vision document by offering their views at the 

National Hydrogen Vision Meeting are deeply appreciated. A nationwide effort to 

achieve the hydrogen vision can only succeed through strong public-private partnerships, 

to address the issues involved in the introduction of a new vehicle infrastructure and 

distributed generation systems. It is a broad and encompassing task with major national 

benefits. All affected stakeholders need to join together in this most important endeavor. 

i 
ii 
Executive Summar Executive Summar Executive Summary

On November 15-16, 2001, 53 senior executives representing energy and transportation 

industries, universities, environmental organizations, Federal and State government 

agencies, and National Laboratories met to discuss the potential role for hydrogen 

systems in America’s energy future. (A list of the participants can be found in the 

appendix.) The intent of the meeting was to identify a common vision of the "hydrogen 

economy," the time frame in which such a vision could be expected to occur, and the key 

milestones that would need to be accomplished to get there. 

Based on the ideas and suggestions put forth by the participants during the meeting, this 

document presents a national vision for hydrogen to become a premier energy carrier, like 

electricity, for Americans. It will be used by various stakeholders 

including industry, policy makers, and researchers as the National Vision coordinating foundation for formulating future actions leading to a 

hydrogen economy. The meeting proceedings, which include the 

presentations and summaries of the notes from the facilitated 

breakout sessions, can be downloaded at www.eren.doe.gov/ 

hydrogen.

Major F Major Findings indings

 Hydrogen has the potential to solve two major energy challenges 

that confront America today: reducing dependence on petroleum 

imports and reducing pollution and greenhouse gas emissions. 

 There is general agreement that hydrogen could play an 

increasingly important role in America’s energy future. Hydrogen is 

an energy carrier that provides a future solution for America. The 

complete transition to a hydrogen economy could take several 

decades. 

 The transition toward a so-called “hydrogen economy” has already 

begun. We have a hydrocarbon economy, but we lack the know-how 

to produce hydrogen from hydrocarbons and water, and deliver it to 

consumers in a clean, affordable, safe, and convenient manner as an automotive fuel or 

for power generation. 

 The “technology readiness” of hydrogen energy systems needs to be accelerated, 

particularly in addressing the lack of efficient, affordable production processes; 

lightweight, small volume, and affordable storage devices; and cost-competitive fuel cells. 

 There is a "chicken-and-egg" issue regarding the development of a hydrogen energy 

infrastructure. Even when hydrogen utilization devices are ready for broad market 

applications, if consumers do not have convenient access to hydrogen as they have with 

gasoline, electricity, or natural gas today, then the public will not accept hydrogen as 

“America’s clean energy choice.” 

iii 
Conclusions Conclusions

 To achieve significant progress toward the development of hydrogen energy systems,

Federal and State governments need to implement and sustain consistent energy policy

actions that elevate hydrogen as a priority to meet energy security, energy independence,

and climate change challenges.

 A successful effort to achieve the hydrogen vision will require a strong public-private

partnership on hydrogen energy development, as called for in the President’s National

Energy Policy. Efforts must be focused on finding new ways to collaborate on the

development and use of hydrogen energy. For example, the Federal government could

play a valuable role as first-use "customer."

 A logical next step is the collaborative development of a National Hydrogen Energy

Roadmap. This process needs to address research, development, testing, public outreach

and education, and codes and standards for hydrogen production, delivery, and use. It

should cover both mobile and stationary applications of hydrogen energy systems, and it

should involve industry, government, universities, and the National Laboratories.

Overview of the Transition to the Hydrogen Economy

iv
Table of Contents

A Call for Partnership .................................................................................................... i

Executive Summary ..................................................................................................... iii

1. Introduction ............................................................................................................ 1

2. The Hydrogen Industry Today ................................................................................ 3

3. Key Drivers Affecting the Future of Hydrogen Energy Development ....................... 11

4. A National Vision of the U.S. Hydrogen Economy ............................................... 17

5. Transition to the Hydrogen Economy ..................................................................... 21

6. A Path Forward ................................................................................................... 25

Appendix - Participating Organizations ....................................................................... 27

v 
vi 
1. Introduction Introduction Introduction

More than fifty executives from energy-related and transportation industries, Federal and 

State government agencies, universities, environmental organizations, and National 

Laboratories participated in the “National Hydrogen Vision Meeting,” which was held 

in Washington, DC, on November 15 and 16, 2001. (A list of the participants can be 

found in the appendix.) This document reflects the ideas and priorities put forth by the 

meeting participants. 

The meeting was held in response to specific recommendations in the Bush 

Administration’s National Energy Policy, which was released on May 17, 2001. This 

comprehensive energy strategy contains 105 recommendations for securing America’s 

energy future, including the expansion of energy supplies, improvement of infrastructure, 

modernization of energy conservation, and protection of the environment. In considering 

long-term energy and climate change solutions, hydrogen is singled out as a “future 

energy source...that shows great promise...and is compatible with existing energy 

technologies, such as fuel cells, engines, and combustion turbines.” The report 

recommends that the U.S. Department of Energy “focus 

research and development efforts on integrating current 

programs regarding hydrogen, fuel cells, and distributed 

energy.” 

A National Hydrogen Vision and Roadmap process was 

initiated by the U.S. Department of Energy, in 

partnership with key hydrogen energy and transportation 

organizations, to address this recommendation. The 

goals of the vision and roadmap are to identify areas of 

agreement and disagreement about hydrogen’s role in 

America’s energy future, to establish a timeframe in 

which a hydrogen economy may be realized, and to 

discuss alternative pathways to achieve the vision. Special 

emphasis has been placed on public-private partnerships, 

and joint research, development, demonstration, 

education, and outreach programs. The proceedings of the vision meeting, which 

While there have been many successful technical includes copies of presentations and summaries of 

meetings on hydrogen research and development the notes from the discussions, is available at 

programs over the past decade, including semi-annual www.eren.doe.gov/hydrogen.

meetings of the Hydrogen Technical Advisory Panel, 

this meeting marked the first occasion that a broad cross-section of senior business 

leaders and energy and environmental officials from across the United States have met to 

discuss hydrogen energy development and its future as an energy source for America. 

A broad range of stakeholders were invited to participate in the vision meeting. The 

participating non-Federal organizations included energy companies, automobile 

companies, fuel cell manufacturers, hydrogen equipment manufacturers, State agencies, 

and environmental organizations. Participating Federal organizations included the 

Department of Energy, the U.S. Navy, and the National Aeronautics and Space 

Administration. 

1 
The meeting included discussions about the following specific topics: 

 Status of today’s U.S. hydrogen energy industry 

 Factors—both supporting and inhibiting—that will shape future hydrogen energy 

development 

 A vision for the future of the hydrogen energy industry 

 What is meant by the term “hydrogen economy,” and the most likely time frame(s) 

in which it may take place 

 The key milestones and pitfalls that are likely to be encountered on the path to a 

“hydrogen economy” 

 Ways in which industry and government can form stronger partnerships to address 

hydrogen energy development 

The vision and roadmap process has been a useful technique for organizing research 

and development partnerships involving the U.S. Department of Energy, industry, 

the National Laboratories, and universities. The process typically involves a series of 

meetings attended by industry leaders and visionaries, technical experts, and 

practitioners to discuss future needs using professional facilitators to guide the 

discussions. Executive-level participation was emphasized in the development of the 

vision, and technical managers and practitioners will be encouraged to participate in 

the development of the roadmap. 

2 
2. The Hydrogen Industr The Hydrogen Industr The Hydrogen Industr The Hydrogen Industry Today

The current hydrogen industry is not focused on the production or use of hydrogen as an 

energy carrier or a fuel for energy generation. Rather, the nine million tons of hydrogen 

produced each year are used mainly for chemicals, petroleum refining, metals, and 

electronics. For example, the processes for making gasoline and diesel fuels, such as the 

breakdown of heavier crude oils and the removal of sulfur, are major users of hydrogen. 

The production of ammonia, used to make fertilizers, also consumes large amounts of 

hydrogen. 

The use of hydrogen as an energy carrier or major fuel requires development in several 

industry segments, including production, delivery, storage, conversion, and end-use. The 

table below provides a list of terms and explanations for hydrogen energy systems. Each 

industry segment is integral to building a hydrogen-based economy, and the development 

of one segment relies on corresponding development of all other segments. 

Elements of Today's Hydrogen Energy System 

Hydrogen Industry Explanation

Segment 

Production  The production of hydrogen from fossil fuels, biomass, or water 

 Involves thermal, electrolytic, and photolytic processes 

Delivery  The distribution of hydrogen from production and storage sites 

 Involves pipelines, trucks, barges, and fueling stations 

Storage  The confinement of hydrogen for delivery, conversion, and use 

 Involves tanks for both gases and liquids at ambient and high pressures 

 Involves reversible and irreversible metal hydride systems 

Conversion  The making of electricity and/or thermal energy 

 Involves combustion turbines, reciprocating engines, and fuel cells 

End-Use 

Energy Applications 

 The use of hydrogen for portable power in devices such as mobile phones 

and computers 





The use of hydrogen for transportation systems such as fuel additives, fuel-cell 

vehicles, internal combustion engines, and in propulsion systems for the space shuttle 

The use of hydrogen for stationary energy generation systems, including 

mission critical, emergency, and combined heat and power applications 

Overview

Hydrogen can be produced through thermal, electrolytic, or photolytic processes applied 

to fossil fuels, biomass, or water. Renewable and nuclear systems can produce hydrogen 

from water using thermal or electrolytic processes. The thermal production process, 

which uses steam to produce hydrogen from natural gas or other light hydrocarbons, is 

most common. This hydrogen is either consumed on site ("captive" hydrogen) or 

distributed via pipelines or trucks ("merchant" hydrogen). Hydrogen can be stored in its 

elemental form as a liquid, gas, or as a chemical compound, and is converted into energy 

3 
through fuel cells or by combustion in turbines and engines. Each of these components of 

the hydrogen industry is under development. The following sections explain the current 

status of these technological areas in greater detail. 

Production roductionroduction

Although hydrogen is the most abundant element in the universe, it does not naturally 

exist in its elemental form on Earth. It must be produced from other compounds such as 

water, biomass, or fossil fuels. Each method of production from these constituents 

requires energy in some form, such as heat, light, or electricity, to initiate the process. 

In the United States, approximately 95 percent of hydrogen is currently produced via 

steam reforming.1 Steam reforming is a thermal process, typically carried out over a 

nickel-based catalyst, that involves reacting natural gas or other light hydrocarbons with 

steam. This is a three-step process that results in a mixture of hydrogen and carbon 

dioxide, which is then separated by pressure swing adsorption, to produce pure 

hydrogen. Steam reforming is the most energy efficient commercialized technology 

currently available, and is most cost-effective 

when applied to large, constant loads. Research 

Hydrogen Production Alternatives is being conducted on improving catalyst life and 

as heavy oils and hydrocarbon solids. However, it 

has a higher capital cost because it requires pure 

oxygen to minimize the amount of gas that must 

later be treated. In order to make partial 

oxidation cost effective for the specialty chemicals 

market, lower cost fossil fuels must be used. Current research is aimed at improving 

membranes for better separation and conversion processes in order to increase efficiency, 

and thus decrease the consumption of fossil fuels. 

Hydrogen can also be produced by using renewable and nuclear resources to extract 

hydrogen from water, but these methods are currently not as efficient or cost effective as 

using fossil fuels. Biomass can be thermally processed through gasification or pyrolysis to 

produce hydrogen. Research on nuclear-based hydrogen production is mostly conducted 

on thermo-chemical processes, which makes use of high reactor exit temperatures. Both 

are continuing to be developed. Creation of more efficient, less expensive electrolyzers 

using renewables and nuclear power is also ongoing. 

heat integration, which would lower the 

temperatures needed for the reformer and make 

the process even more efficient and economical. 

Partial oxidation (autothermal production) of 

fossil fuels is another method of thermal 

production. It involves the reaction of fuel with a 

limited supply of oxygen to produce a hydrogen 

mixture, which is then purified. Partial oxidation 

can be applied to a wide range of hydrocarbon 

feedstocks, including light hydrocarbons as well 

1 Air Products and Chemicals, Inc. 

4 
Deliver Delivery

A hydrogen energy infrastructure would include production and storage facilities,

structures and methods for transporting hydrogen, fueling stations for hydrogen-powered

applications, and technologies that convert the fuel into energy through end-use systems

that power buildings, vehicles, and portable applications. This section focuses on existing

infrastructure that moves the hydrogen from its point of production to an end-use device.

Today hydrogen is produced primarily in decentralized locations and is used on-site for

making chemicals or upgrading fuels. Approximately 17 percent of hydrogen is centrally

produced for sale and distribution, and is transported through pipelines or via cylinders

and tube trailers.2

 Air Products and Chemicals Inc., Air Liquide Group, Praxair Inc.,

and the BOC Group are major producers of merchant hydrogen. Together these

companies operate about 80 plants in the United States that are dedicated to the

production of merchant hydrogen.

Similar to natural gas distribution, pipelines are used to supply hydrogen to customers.

Currently hydrogen pipelines are used in only a few areas of the United States. Air

Liquide Group, Air Products and Chemicals Inc., and Praxair Inc. operate hydrogen

pipelines in Texas, Louisiana, California, and Indiana. Pipelines provide an efficient

means for transporting hydrogen. Concerns regarding the weakening of carbon steel

pipes in a process called hydrogen embrittlement are being addressed. Alternate delivery

forms such as the transport of hydrogen in safe compounds or chemical forms, are being

developed to get hydrogen to end-use sites on an as-needed and real time usage basis.

Hydrogen is also distributed via cylinders and tube trailers that are transported by trucks,

railcars, and barges. For long-distance distribution of up to 1000 miles, hydrogen is

usually transported as a liquid and then vaporized for use on-site. Eleven plants have the

capacity to produce 283 tons of liquid hydrogen per day in North America.

5

2

 Air Products and Chemicals, Inc.

Hydrogen Delivery Methods

Source: Air Products and Chemicals, Inc.
Storage

Hydrogen can be stored as a gas or liquid or in a chemical compound using a variety of 

technologies. 

Compact storage of hydrogen gas in tanks is the most mature storage technology, but is 

difficult because hydrogen is the lightest element and has very low density under normal 

conditions. This is addressed through compression to higher pressures or interaction with 

other compounds. In addition, storage tank materials are advancing—they are getting 

lighter and better able to provide containment. Some have a protective outside layer to 

improve impact resistance and safety. 

Liquid hydrogen is stored in cryogenic containers, which requires less volume than gas 

storage. However, the liquefaction of hydrogen consumes large quantities of electric 

power, equivalent to about one-third the energy value of the hydrogen. 

Hydrogen Storage Alternatives Hydrogen can be stored "reversibly" and "irreversibly" in metal 

Compressed Fuel Storage 

· Cylindrical tanks 

· Quasi-conformable tanks 

Liquid Hydrogen Storage 

· Cylindrical tanks 

· Elliptical tanks 

Solid State Conformable Storage 

· Hydride storage material 

· Carbon adsorption 

· Glass microspheres 

hydrides. In reversible storage, metals are generally alloyed to 

optimize both the system weight and the temperature at which the 

hydrogen can be recovered. When the hydrogen needs to be used, 

it is released from the hydride under certain temperature and 

pressure conditions, and the alloy is restored to its previous state. 

In irreversible storage, the material undergoes a chemical reaction 

with another substance, such as water, that releases the hydrogen 

from the hydride. The byproduct is not reconverted to a hydride. 

Laboratory research continues in the development of carbon-based 

storage systems. Hydrogen storage in carbon structures is achieved 

chemically in fullerenes or by physical sorption in carbon 

nanotubes. These processes are controlled through temperature 

Source: QUANTUM Technologies and pressure and are still a long way from development. 

Conversion Conversion

As mentioned, hydrogen is an energy carrier that requires production by an energy 

source (e.g., fossil, renewable, or nuclear) using a feedstock (e.g., fossil, biomass, or 

water) followed by consumption of the hydrogen by a particular end-use device to 

produce heat or electricity. Hydrogen can be converted to energy via traditional 

combustion methods and through electrochemical processes in fuel cells. 

Combustion 

Hydrogen can be combusted in the same manner as gasoline or natural gas. The benefit 

of using hydrogen combustion over fossil fuel combustion is that it releases fewer 

emissions—water is the only major byproduct. No carbon dioxide is emitted, and 

nitrogen oxides, produced by a reaction with the nitrogen in the air, can be significantly 

lower than with the combustion of fossil fuels. This technology is fairly well developed— 

both the National Aeronotics and Space Administration (NASA) and the Department 

of Defense use it for applications such as the space shuttle's main engines and unmanned 

rocket engines. Other combustion applications are being researched, such as new designs 

of combustion equipment specifically for hydrogen in turbines and engines. Hydrogen 

6 
internal combustion engine vehicles are being demonstrated—Ford and BMW made 

significant progress in advanced Hydrogen Internal Combustion Engine (H2-ICE) 

vehicles in 2001. Also, the combustion of hydrogen blends is being practiced, as blends 

have been shown to emit fewer pollutants than pure fossil fuels once the engine is leaned 

out, and would promote a transition to the combustion of 100 percent hydrogen fuel. 

Fuel Cells 

Fuel cells utilize the chemical energy of hydrogen to produce electricity and thermal 

energy. A fuel cell is a quiet, clean source of energy. Water is the only by-product it emits 

if it uses hydrogen directly. Since electrochemical reactions generate energy more 

efficiently than combustion, fuel cells can achieve higher efficiencies than internal 

combustion engines. Current fuel cell efficiencies are in the 40 to 50 percent range, with 

up to 80 percent efficiency reported when used in combined heat and power 

applications. 

Fuel cells are similar to batteries in that they are composed of positive and negative 

electrodes with an electrolyte or membrane. The difference between fuel cells and 

batteries is that energy is not recharged and stored in fuel cells as it is in batteries. Fuel 

cells receive their energy from the hydrogen or similar fuel that is supplied to them. No 

charge is thereby necessary. 

Fuel cells are characterized by their electrolyte, operating temperature, and level of 

hydrogen purity required. The following table summarizes the characteristics of various 

fuel cell types. Phosphoric acid fuel cells are the most developed fuel cells for commercial 

use. Many of the installed units are used in stationary applications to provide grid 

support and reliable back-up power, and in transportation applications to power large 

vehicles such as buses. Proton exchange membrane (PEM) fuel cells are being 

Summary of Fuel Cell Types 

Fuel Cell Electrolyte Operating Temperature Sensitivities to Hydrogen 

(oC) Purity 

Proton Exchange 

Membrane 

Solid organic polymer polyperfluorosulfonic acid 

60-100 High sensitivities to 

impurities, must have <10 

ppm CO 

Alkaline Aqueous solution of potassium 

hydroxide soaked in a matrix 

90-100 High sensitivity to carbon 

dioxide 

Phophoric Acid Liquid phosphoric acid soaked 

in a matrix 

175-200 Sensitive to CO 

Molten Carbonate Liquid solution of lithium, 

sodium and/or potassium 

carbonates, soaked in a matrix 

600-1000 Low sensitivity to CO, 

Hydrogen/carbon monoxide 

mixtures can be used. CO2

 is 

required 

Solid Oxide Solid zirconium oxide to which 

a small amount of ytrria is 

added 

600-1000 Low sensitivity to CO, 

Hydrogen/carbon dioxide/ 

methane mixtures can be used 

7 
developed and tested for use in transportation, stationary, and portable applications. 

There has been a tremendous upsurge in interest in PEM fuel cells over the past few 

years, and most major automotive manufacturers are developing fuel cell concept cars. 

Alkaline fuel cells have been used in military applications, for NASA space missions to 

provide electricity and drinking water for astronauts, and are being tested for 

transportation applications. Solid oxide and molten carbonate fuel cells are best for use 

in generating electricity in stationary combined cycle applications and cogeneration 

applications in which waste heat is used for cogeneration. They also fit well for portable 

power and transportation applications, especially large trucks. 

Fuel cells have operating advantages for both stationary and mobile applications in that 

they are quiet and typically have high efficiencies at partial loads. They also have 

environmental advantages. For example, when pure hydrogen is used as the fuel, there 

are no emissions of sulphur or nitrogen oxides, or particulates. And if the hydrogen 

comes from a net-carbon-free renewable or nuclear energy source, the system will also be 

free of carbon dioxide emissions. The direct conversion of the energy stored in the fuel 

to electricity in a fuel cell can be achieved at high efficiencies, avoiding limitations of 

standard heat-to-power cycles used in combustion engines and turbines. Fuel cells are 

also deployable in combined heat and power applications. 

End Use Energy Applic y Applicy Applications

Hydrogen energy end-use applications include stationary, transportation, and portable 

devices. As mentioned, the most common current use for hydrogen is in industrial 

processes such as refineries. It is also used as a fuel at NASA, where the combustion of 

hydrogen has fueled its space shuttle main engines and propulsion systems for years. 

Other energy uses are generally limited to 

Prototype Hydrogen Fuel Cell Vehicles research and demonstrations. 

Vehicle Type 

2000 GM-Opel Zafira Light Truck/Van/SUV 

1998 Ford P2000 FCV Mid-size/Full-size 

2001 Hyundai Santa Fe/IFC Light Truck/Van/SUV 

2000 Necar Sub-compact/Compact 

Toyota FCHC Light Truck/Van/SUV 

2001 Honda FCX Sub-compact/Compact 

Source: UTC Fuel Cells 

8 

One application of hydrogen fuel cells is for 

distributed generation. A number of UTC 

Fuel Cell’s phosphoric acid fuel cells are 

operating in locations around the world, 

providing heat and power for buildings and 

industrial applications. These units include 

a reformer component to generate a 

hydrogen-rich gas from natural gas. 

In the transportation sector, a number of 

fuel cell vehicles are being tested and 

developed. Vehicular use of hydrogen 

energy requires a compact power system 

and refueling stations. Given the current 

state of hydrogen technologies, city-owned 

buses are a promising application because 

they are capable of carrying large tanks of 

hydrogen and typically refuel at a single 

location. In March 1998, for example, 

Chicago became the first city in the United 

States to use hydrogen fuel cells to power 

buses in their public transit system. 
Several car manufacturers, including Hyundai, Ford, General Motors, Toyota, Honda, 

and DaimlerChrysler are developing fuel cell vehicles for personal use. In 2001, the 

BMW CleanEnergy World Tour demonstrated its fleet of 15 hydrogen-powered internal 

combustion engine vehicles. 

Portable fuel cells can also be used to power small devices such as mobile telephones or 

personal computers. Larger power generators for recreation and other off-grid 

applications are under development. For example, Ballard Power Systems has developed 

the NexaTM power module, a PEM fuel cell system that generates up to 1200 watts of 

unregulated direct current electrical power that can be used for industrial and consumer 

end-product applications. This portable power application is still under development. 

Today’s emerging hydrogen energy industry is eager to develop hydrogen fuel 

infrastructure technology that can be used to generate power for stationary, 

transportation, and portable power applications. Much work needs to be done to reach 

this goal, but a foundation for future efforts has been established by these various 

technology sectors. 

9 
10 
3. Key Drivers A ey Drivers Affecting the Future of ffecting the Future of ffecting the Future of

Hydrogen Energy Development Hydrogen Energy Development Hydrogen Energy Development

The United States' energy sector is experiencing a confluence of events. New 

technologies are being developed and opportunities for entrepreneurial ideas and 

innovative approaches are ripening at a time when our capital-intensive, aging energy 

infrastructure is in need of improvement. Despite this window of opportunity, the overall 

business environment for energy investments in America today is not conducive to the 

massive introduction of new technologies. 

The Nation faces uncertainties in our energy future and inertia in our infrastructure 

system. America's energy future will include unpredictable ups and downs, price 

volatility, regional gluts and shortages, and market instabilities. The natural pace of 

turnover of existing capital in our infrastructure is relatively slow, there is reluctance to 

alter traditional systems, and the framework of changing policies and regulations tends to 

favor incumbent suppliers and technologies. 

These factors introduce uncertainties and risk and interfere with making changes. For 

example, existing inertia in our energy system has made it difficult for policy makers and 

business executives to make strategic decisions about long-term energy requirements, 

which has led to delays in decision-making, and has made it hard for businesses to 

commit to large financial resources to energy investments. 

The factors affecting hydrogen’s potential are rooted in these issues. Our infrastructure 

has been designed to provide users with reliable supplies of fossil fuels at an affordable 

Summary of Key Drivers Affecting Hydrogen Energy Development 

The Nation faces 

uncertainties in 

our energy future 

and inertia in our 

infrastructure 

system. 

 National security and the 

need to reduce oil imports 

 Global climate change and 

the need to reduce greenhouse gas emissions and 

pollution 

 Global population and 

economic growth and the 

need for new clean energy 

supplies at affordable prices, 

as hydrogen is potentially 

available in virtually unlimited quantities 

 Air quality and the need to 

reduce emissions from 

vehicles and power plants 

 The inability to build and 

sustain national consensus on 

energy policy priorities 

 Lack of a hydrogen infrastructure and the substantial costs of 

building one 

 Lack of commercially available, 

low-cost hydrogen production, 

storage and conversion devices, 

such as fuel cells 

 Hydrogen safety issues 

 Rapid pace of technological 

change in hydrogen and 

competing energy sources and 

technologies 

 The current availability of 

relatively low-cost fossil fuels, 

along with the inevitable 

depletion of these resources 

 Simultaneous consumer 

preferences for both a clean 

environment and affordable 

energy supplies 

Support Inhibit Both Support and Inhibit 

11 
The tragic events of 

September 11, 2001, 

remind every 

American of the 

danger of reliance 

on oil imports from 

politically unstable 

countries. 

cost while protecting the environment. Other forms of energy, including nuclear and 

renewable sources, may play important roles but face their own hurdles in the global 

competition for market share. 

In developing a vision for the hydrogen economy, certain questions about market and 

policy forces arise. Are there technological, economic, or policy-related factors, issues, or 

trends that can encourage a dynamic of change in our current market? If so, how might 

they affect hydrogen energy development over the next several decades, in terms of 

supporting or hindering it. Many of these “drivers” will affect not only hydrogen, but 

also the future of the energy system as a whole. 

National Security tional Security

The need to enhance the supply of domestically produced transportation fuels is great. 

The tragic events of September 11, 2001, remind every American of the danger of 

reliance on oil imports from politically unstable countries, some of which have opposing 

interests to those of the United States. America’s transportation sector relies almost 

exclusively on refined petroleum products; more than one-half of the petroleum 

consumed in the United States is imported, and that percentage is expected to rise 

steadily for the foreseeable future, unless we change our energy use. Hydrogen (along 

with biofuels) is a versatile energy carrier that could be produced entirely from domestic 

sources of fossil fuel (e.g., natural gas and coal with capture and sequestration of carbon 

dioxide), renewable (e.g., solar, wind, and biomass), and nuclear energy, in large 

quantities. Its use as a major energy carrier would provide the United States with a more 

diversified energy infrastructure. 

Climate Change te Change te Changete Change

The combustion of fossil fuels accounts for the majority of anthropogenic greenhouse gas 

emissions released into the atmosphere. Although international efforts to address global 

climate change have not yet resulted in policies that all nations have accepted, there is 

growing recognition that steps to reduce greenhouse gases are needed, and many 

countries are adopting policies to accomplish that end. Energy and transportation 

companies, many of which have multi-national operations, are actively evaluating 

alternative sources of energy. 

Hydrogen can play an important role in a low-carbon global economy, as its only 

byproduct is water. With the capture and sequestration of carbon from fossil fuels, 

hydrogen is one path for coal, oil, and natural gas to remain viable energy resources, 

should strong constraints on carbon emissions be required. Hydrogen produced from 

renewable resources or nuclear energy results in no net carbon emissions. 

Population and Economic Growth tion and Economic Growth

Many experts have pointed out that if highly populated countries like China, India, or 

Indonesia were to adopt energy consumption patterns similar to those of the United 

States or Europe, world energy supplies would have to increase enormously to meet 

demand. For example, imagine the energy and environmental consequences of one-half of 

Chinese households owning automobiles that run on gasoline. That would be about four 

times the number of car-owning households in the United States today. If these 

12 
automobiles were to run on hydrogen fuel cells, the environmental consequences and 

national security issues would be much less. 

Many international energy experts are hoping that developing countries will be able to 

“leap frog” today’s energy devices and infrastructure by adopting advanced technologies. 

The idea is that as economic growth spreads around the world, developing countries 

would be able to follow a pattern similar to the one being followed in telecommunications 

systems: wireless technologies are being installed in certain locations, “leap frogging” the 

need for telephone lines. Unfortunately, the advanced energy devices that would be 

needed to “leap frog” current infrastructure, such as hydrogen energy systems and fuel 

cells, are not yet cost competitive or commercially available on the required economies of 

scale. 

Air Quality

Air quality is a major public health concern. Most of the major metropolitan areas in the 

United States are in "non-attainment" with the requirements of the Clean Air Act. 

States are required to develop strategies detailing the steps they plan to take for reaching 

national ambient air quality goals. California, for example, has been one of the most 

aggressive states in taking action to reach clean air goals. Personal vehicles and electric 

power plants are significant contributors to the nation's air quality problems. The 

introduction of hydrogen-using commercial bus fleets is one of the approaches being 

taken to achieve compliance with the Clean Air Act. 

Without such 

policies, progress 

toward a hydrogen 

economy will be 

severely limited and 

much slower. 

Consistenc ConsistencConsistency in Na y in National Energy Policy Priorities rioritiesriorities

One of the hallmarks of public energy policies in America is their inconsistency from 

state to state, and the shifts that occur in Federal priorities with each election. The last 

major piece of Federal energy legislation was the Energy Policy Act, which was enacted 

in 1992. Since then, there has not been a national consensus on Federal energy policy 

priorities. For example, prior to the electricity problems experienced in California in 

2000 and 2001, electricity restructuring was one of the top national energy priorities. 

The last three Congresses have held hearings on this subject and there have been 

Administration electricity legislation proposals, but there has not been a long-term, 

consistent energy policy. 

The United States is missing a sustained national commitment to environmental and 

energy security goals, and the policies to support them. Hydrogen could provide the 

basis for such a policy. Since 1990 Congress has authorized funds in support of 

hydrogen energy research, development, and demonstration. Market-based 

environmental policies that provide industries with financial reasons to invest in lowemission or carbon-free energy systems could accelerate hydrogen energy development 

substantially. 

The public needs to understand the value of a hydrogen economy in order for businesses 

to invest in new energy technologies. Public policies need to be developed by government 

and private entities and put into place to facilitate public acceptance. This in turn would 

lead to greater market incentives for significant private investment in hydrogen. 

13 
Hydrogen Infr Hydrogen Infrastructure Costs astructure Costs

For the hydrogen 

economy to evolve, 

consumers will 

need to have 

convenient access 

to hydrogen 

sources. 

As documented in the President’s National Energy Policy, America’s energy 

infrastructure is aging and in need of significant upgrades, overhauls, and replacements 

over the next several decades. This infrastructure includes oil refineries, gas and oil 

pipelines, power plants, and electricity transmission and distribution facilities such as 

power lines, transformers, and substations. The capital investment requirements to 

maintain and improve the infrastructure over the next several decades will total hundreds 

of billions of dollars. 

While hydrogen may be able to use some of the existing infrastructure, specific upgrades 

and enhancements will be needed to accommodate the unique features of hydrogen, 

particularly in storage and distribution. The technologies needed to convert the natural 

gas infrastructure for the use of hydrogen are available today, but are not yet costeffective. At present there is no motivation to convert to hydrogen, as there are essentially 

no markets for distributed use of hydrogen energy. Additional infrastructure costs will 

have to be incurred in the future, when cost-competitive products are available, to enable 

the transition to the hydrogen economy. 

The technical and economic barriers to upgrading the Nation’s fueling stations to 

provide hydrogen represents one of the major stumbling blocks to the expanded use of 

hydrogen-fueled vehicles. Some automakers estimate that hydrogen would have to be 

available in at least thirty percent of the nation’s fueling stations for a viable hydrogenbased transportation sector to emerge. Private investment in such an infrastructure will 

not be forthcoming in the absence of supporting and sustained, supportive public 

policies. 

Hydrogen Stor Hydrogen Storage and Conversion Devices age and Conversion Devices

The lack of low-cost and light-weight storage and commercially-available and costcompetitive fuel cells interferes with the development of a hydrogen economy. For the 

hydrogen economy to evolve, consumers will need to have convenient access to hydrogen, 

and storage will be one of the keys. Better hydrogen storage systems will enable users to 

have easy access to hydrogen for vehicles and distributed energy facilities. Hydrogen 

storage will also enhance the value and potential market share of renewable electricity 

generation. 

Fuel cells are clean, compact, and modular energy generation devices that have the 

potential to revolutionize the production of electricity and thermal energy, for both 

stationary and mobile applications. There are several different types of fuel cells; each 

has advantages and disadvantages. Design and manufacturing breakthroughs are needed 

to lower costs and enhance reliability and performance. The marketplace will determine 

which of the several fuel cell options will offer users the most favorable advantages. 

Hydrogen internal combustion engine vehicles are being demonstrated and are nearer 

term than fuel cell vehicles. They offer nearly as many benefits, although they are not 

strictly zero emissions vehicles. 

14 
Concerns About Hydrogen Safety Concerns About Hydrogen Safety

Perceptions about the safety of hydrogen remain a deterrent to many consumers. The 

public needs to be aware that safety issues related to hydrogen are being addressed, and 

perceptions based on misinformation need to be corrected. A public information 

campaign can help eliminate many of the concerns about hydrogen safety. Effective codes 

and standards are needed to ensure that these concerns are addressed in equipment 

designs, manufacturing practices, and operation and maintenance procedures. 

Appropriate field tests and demonstrations will be needed to increase public confidence 

and acceptance of hydrogen technologies. 

Technological Change al Changeal Change

The accomplishments of science over the past century have been astounding. America’s 

energy sector has been a major beneficiary of developments in science and engineering. 

The electrification of the economy and the ease of personal travel through the use of the 

automobile are part of the reason why the American economy has become one of the 

most productive in history. 

Examples of the accelerating pace of technological change in recent years are 

everywhere. There have been many innovations and new product and service offerings in 

telecommunications, information systems, and biology-based industries. As a result, these 

have become leading sectors in the United States economy. Development of advanced 

energy systems, products, and services are also on the horizon. New materials for energy 

devices such as turbines, engines, and fuel cells are improving rapidly. Advanced 

Americans 

demonstrate 

preferences that 

both support and 

concepts in the biological sciences, and in the miniaturization of engineered systems 

using nanotechnologies, could lead to breakthroughs that revolutionize how energy 

(including that from hydrogen sources) is produced and used. 

At the same time, these developments are also affecting conventional fossil, nuclear, and 

renewable energy systems, which are becoming cleaner, cheaper, and more energyefficient. For example, recent advances in combined heat and power systems have led to 

systems that produce electricity and thermal energy at more than double the energy 

efficiency of the typical power plant, thus reducing emissions, energy costs, and peak 

electricity demands. 

Availability of F ailability of Fossil Energ sil Energsil Energy Resources y Resources

hinder the 

development of 

clean energy 

sources. 

Affordable coal, oil, and natural gas supplies are available around the world. Analysts 

warn, however, that world oil production cannot be sustained at current levels indefinitely 

and that the development of America’s natural gas resources, while extensive, are not 

inexhaustible. Coal is the major fuel for electricity production in America. Clean coal 

technologies improve efficiency and reduce emissions. Fossil fuels are expected to be 

America’s fuels of choice for the foreseeable future. 

If demand for fossil fuels continues to increase, resource constraints will push fossil fuel 

prices up over the next several decades (energy analysts differ as to how much and 

when). This will spur the development of non-fossil alternatives such as solar, wind, 

geothermal, biomass, and nuclear, and fossil alternatives that sequester the carbon 

dioxide, and encourage the transition to hydrogen. In the meantime, the current 

availability and relatively low cost of fossil fuels moderate the pace of development of 

alternative sources of energy. 

15 
Consumer Preferences references

Americans demonstrate preferences that both support and hinder the development of 

clean energy sources. The typical consumer has grown increasingly aware of the 

environmental, health, and safety consequences of energy. This, in combination with 

legislation, has contributed to the growth in demand for environmentally friendly 

products and services such as energy efficient appliances and equipment, renewable 

energy, and “green power” offerings from local utilities. In many non-attainment areas, 

for example, environmental requirements to reduce emissions receive public support, even 

when they result in higher fuel taxes or inconvenience in commuting. 

There are also other energy consumer trends that require high-value services that 

command premium prices. For example, extra high reliable electric service is required by 

a growing number of businesses relying on digital equipment, such as computers, or 

operating 24 hours a day, seven days a week. Protection against energy price volatility is 

another possible high-value service. These premium markets, like distributed energy and 

power parks, provide growing opportunities for hydrogen energy, especially early in the 

transition. 

In contrast, public support for low energy prices is strong. Americans enjoy gasoline 

prices that are among the lowest in the world. Consumers rank fuel economy relatively 

low on the list of desired attributes for automobiles. The ten-year period from 1992 to 

2001, the longest era of sustained economic growth in American history, coincided with 

a period of historically low energy prices. Many Americans are quick to contrast that era 

with the ten-year period from 1972 to 1981—an era marked by relatively low economic 

growth, high inflation and unemployment, and high energy prices. 

Summary

There are several key drivers that will likely affect hydrogen energy development. 

Concerns regarding national security, global climate change, and worldwide population 

and economic growth will increasingly promote systems that support hydrogen 

development. The lack of a national consensus on energy policy priorities, a hydrogen 

infrastructure, commercially viable hydrogen technologies, and the public perception of 

hydrogen safety issues have the potential to inhibit hydrogen energy development. 

Drivers that could both support and inhibit the development of hydrogen are the rapid 

pace of technological change in energy technologies, the current availability of low cost 

fossil fuels and their eventual depletion, and mixed consumer preferences for clean and 

cheap energy. 

16 
4. A National Vision of the U.S. A National Vision of the U.S. A National Vision of the U.S. A National Vision of the U.S.

Hydrogen Economy Hydrogen Economy

Vision: Hydrogen is America’s clean energy choice. It is 

flexible, affordable, safe, domestically produced, used in all 

sectors of the economy, and in all regions of the country. 

At the time this vision is realized, hydrogen produced from fossil fuels (with carbon 

capture and sequestration), renewable energy, and nuclear energy will be used 

throughout the transportatiion and electric power sectors. Hydrogen will be produced in 

centralized facilities in remote locations, in power parks and fueling stations in our 

communities, in distributed facilities in rural areas, and onsite at customers’ premises. 

Today we have a hydrocarbon economy. Tomorrow we will have weaned ourselves from 

carbon and will live in a “hydrogen economy.” In the hydrogen economy... 

America will enjoy a secure, clean, and prosperous energy sector that will 

continue for generations to come. American consumers will have access to 

hydrogen energy to the same extent that they have access to gasoline, natural gas, 

and electricity today. It will be produced cleanly, with near-zero net carbon 

emissions, and it will be transported and used safely. It will be the “fuel of choice” 

for American businesses and consumers. America’s hydrogen energy industries 

will be the world’s leaders in hydrogen-related equipment, products, and services. 

One major foundation for this vision is the development of an energy infrastructure that 

can support the expanded production, delivery, storage, and use of hydrogen energy. A 

hydrogen infrastructure is likely to develop on a regional level, since it can be made from 

a variety of feedstocks, and will resemble the electricity grid more than the current oil 

delivery system. Construction of this infrastructure will take time and will require 

significant resources. As a result, the hydrogen economy will evolve over the next several 

decades. Hydrogen storage weight and volume reductions, mass production of fuel cells, 

construction of the necessary infrastructure, and expanded use of portable and 

distributed power generation devices will sustain the momentum towards a hydrogen 

economy. Infrastructure will begin with pilot projects and expand to local, regional, and 

ultimately national and international applications. 

A strong public-private partnership will be a key feature of this evolutionary process. 

Together, government and private organizations will facilitate appropriate research, 

development, and demonstration programs; educate the public; and develop codes and 

standards. Mounting public pressures for a cleaner environment, and for more secure 

sources of energy supplies, will lead to more stringent policies for reducing air emissions 

and limiting oil imports. 

With steady progress and a few significant technology breakthroughs, the Nation will 

make a committed switch to a hydrogen economy—over the next several decades a 

confluence of events will mark a steep increase in hydrogen energy development. By that 

time, hydrogen production costs will be lower, the basic components of a national 

hydrogen storage and distribution network will be in place, and hydrogen-powered fuel 

17 
Icelandic New Energy Ltd., a joint 

venture company endorsed by Iceland’s 

government, was formed in 2000 to work 

towards a hydrogen economy. It leads new 

projects that facilitate the use of hydrogen as 

an alternative fuel to reduce greenhouse gas 

emissions, increase energy efficiency, and 

protect depleting natural resources. Icelandic 

New Energy plans to gradually switch the 

nation’s vehicles—first buses, then cars, then 

fishing vessels—to hydrogen power. The 

company expects to have three hydrogenpowered buses running in Reykjavik by the 

end of 2002, fuel cell-powered passenger cars 

available in 2003 to 2004, and a demonstration of a fuel cell boat in 2006. 

cells, engines, and turbines will be mature technologies 

that are mass produced for use in cars, homes, offices, and 

factories. 

Early glimpses of this vision can already be seen in pilot 

programs that are underway in a few U.S. locations and 

several other countries; Iceland is a notable example. 

There are many advantages in partnering with other 

countries in the development of new technologies for the 

"hydrogen economy." 

Future Hydrogen Production roductionroduction

Processes

At the time the vision for a hydrogen economy becomes a 

reality, several decades from now, hydrogen will still be 

produced from fossil fuels, but also from biomass and 

water using thermal, electric, and photolytic processes. 

Hydrogen produced from water will be a cost competitive alternative to hydrogen made 

from hydrocarbons. Some techniques will include inexpensive electrolyzers that use solar, 

geothermal, wind, or nuclear power; photochemical or photoelectrochemical devices; and 

biological systems such as algae. Very low cost electricity will be needed for costcompetitiveness, such as off-peak power at one to two cents per kilowatt hour, and the 

amount of hydrogen produced in this manner will be limited in comparison to future 

demands for fuel. Electrolysis could make locally important contributions where low cost 

power is available, although the overall contribution to a full scale hydrogen economy will 

depend on the relative costs. 

Sources of Hydrogen The Nation will have a combination of central station and 

distributed hydrogen production facilities; the mix will 

depend on local economics and regional resource 

endowments. Central station facilities will consist of multiproduct refineries that use fossil fuels or biomass as 

feedstocks, and that provide hydrogen, electricity, thermal 

energy, chemicals, and other industrial products. One can 

also envision central station nuclear, solar, wind, or 

geothermal facilities for the production of hydrogen by 

splitting water. Those facilities that use fossil fuels and 

biomass as feedstocks will have carbon capture and 

sequestration capabilities. Distributed production of 

hydrogen will occur on-site (at homes, offices, factories, and 

onboard vehicles) or at the community level at places such 

as fueling stations or power parks. 

Future Infr uture Infruture Infrastructure astructure

A national network will be in place to provide hydrogen to users in every region, state, 

and locality. The network will evolve from the existing fossil fuel-based infrastructure and 

will accommodate both centralized and decentralized production facilities. Pipelines will 

be the preferred choice for distributing hydrogen to high-demand areas. Trucks and rail 

18 
will be used to distribute hydrogen to rural and other lower-demand areas. On-site 

hydrogen production and distribution facilities will be available where demand is high 

enough to sustain maintenance of the technologies. 

Future Stor uture Storage Devices age Devices

A selection of relatively lightweight, low cost, and low volume hydrogen storage devices 

will be available to meet a variety of needs. Pocket-sized containers will provide hydrogen 

for portable telecommunications and computer equipment, small and medium hydrogen 

containers will be available for vehicles and on-site power systems, and industrial-sized 

storage devices will be available for power parks and utility-scale systems. Solid-state 

storage media that use metal hydrides will be mature technologies in mass production. 

Storage devices based on carbon structures will be under development. 

Future Conversion T uture Conversion Technologies

Fuel cells will be mass-produced and will be cost-competitive 

and mature technologies. Advanced hydrogen-powered 

energy generation devices such as combustion turbines and 

reciprocating engines will be in widespread commercial use. 

Future End-Use Energy Markets y Marketsy Markets

Hydrogen will be available for every end-use energy need in 

the economy, including transportation, power generation, 

and portable power systems. Hydrogen will be the dominant 

fuel for government and commercial vehicle fleets. It will be 

used in a large number of personal vehicles and light duty 

trucks. It will be combusted directly and mixed with natural 

gas in turbines and reciprocating engines for electricity and 

thermal energy in homes, offices, and factories. It will be 

used in fuel cells for both mobile and stationary 

applications. And it will be used in portable devices such as 

computers, mobile phones, Internet hook-ups, and other 

electronic equipment. 

SunLine Transit Agency opened a hydrogen generation, storage, and fueling facility in 

April 2000 in Thousand Palms, California, 

with the help of industry and government 

partners. SunLine uses electrolyzers to 

generate hydrogen from renewable energy 

(photovoltaics) and a reformer to generate it 

from natural gas. The agency stores hydrogen 

in a 16-tube storage trailer that is attached to a 

cascade control panel used to fill hydrogen 

buses and pickup trucks at a public fueling 

island. SunLine plans to add another 

electrolyzer, expanded storage, a wind-generated fuel cell demonstration project, and 

increased dispensing pressure to its “Clean 

Fuels Mall” in the near future. 

This chapter presented a vision of the hydrogen economy. The following chapter 

discusses in further detail how the United States can transition to a hydrogen economy 

through public-private partnerships. 

19 
20 
5. Transition to the Hydrogen ransition to the Hydrogen

Economy Economy

There are certain achievements to be made and pitfalls to avoid in the transition to a 

hydrogen economy. Rather than offering predictions or specific prescriptions, the 

following section discusses various goals and hazards and outlines plausible scenarios. 

Phase One Phase OnePhase One – Progress in Technologies,

Policies, and Markets olicies, and Markets

Significant laboratory progress is expected in the first transition phase in the form of 

research and demonstration that supports industry's pre-commercial efforts. Carmakers 

will test several types of hydrogen-using prototypes. Research will focus on bringing 

down the cost of fuel cells and developing solid-state storage 

devices, primarily using metal hydrides, but also exploring 

carbon structures (such as nanotubes and fullerenes) and glass 

microspheres. 

Natural gas steam reforming will continue to be the primary 

means for producing hydrogen. While progress will be made in 

developing advanced hydrogen production technologies, market 

readiness will not yet be achieved. 

Hydrogen use in internal combustion engines will build support 

for infrastructure development. Testing of fuel cell buses and 

cars and of hydrogen-fueled internal combustion engines will 

likely continue to expand, particularly in non-attainment areas. 

Industry markets for proton exchange membrane fuel cells for 

stationary applications will be further developed, and auto 

The transition to the hydrogen 

economy has already begun. 

We are a hydrocarbon 

economy today. We have yet to 

learn how to inexpensively 

extract and convert hydrogen 

from hydrocarbon (or other) 

sources without releasing 

harmful by-products into the 

environment. But we are 

quickly learning.... 

companies will begin to build hydrogen fuel cell cars in quantity.

Tests of fuel cells for combined heat and power applications in buildings will increase,

and development of hydrogen fuel cells for portable power devices will continue.

The first phase will also include the creation of hydrogen-related policies on energy and

the environment, including the reduction of energy imports, managing greenhouse gas

emissions, and strengthening the control of air pollution. International standards for the

safe use of hydrogen will be implemented around the world. The restructuring of

electricity and natural gas markets in the United States will be completed, thus

expanding the prospects for the installation of distributed energy systems. Government

will address liability, permitting, and codes and standards in order to provide a

framework for commercial development to proceed.

Phase T Phase Two – Transitioning to the Marketplace ansitioning to the Marketplace

Many significant technology developments will have to occur in the next phase in order 

for the hydrogen economy to develop. The most necessary breakthrough will have to be 

cost reductions of fuel cells through the development of large-scale manufacturing 

21 
capabilities for stationary and mobile units. The initial stages of a hydrogen delivery 

system will have to be in place. 

Specifically, significant advances will have to be made to lower the cost of hydrogen 

production and storage. Natural gas reforming will remain the primary source of 

hydrogen production. Coal gasification and the use of nuclear and renewable 

technologies will be used more heavily. Lighter-weight and lower-cost storage devices will 

become commercially available. 

Power parks and fueling stations will include distributed hydrogen production systems, 

some of which will be renewable (e.g., solar and wind). A few will use photobiological 

and photoelectrochemical techniques. Hybrid hydrogen internal combustion engines will 

be further developed and more widely used. 

Federal and state government facilities will play an increasingly expanded role in moving 

hydrogen technologies into the marketplace. Many will have served as “first use” sites 

for hydrogen energy systems, such as municipal bus services. Urban emergency services, 

fire, and police facilities will also use distributed energy devices to ensure continuous 

power, and some will certainly opt for hydrogen-based systems because of the 

environmental advantages. Military applications of hydrogen energy systems (e.g., in 

vehicles, ships, and aircraft) will be demonstrated, and there will be numerous instances 

of hydrogen fuel cells providing combined heat and power services for buildings. 

Phase Three Phase Three – Expansion of Markets and ansion of Markets and

Infrastructure astructure

This is the phase in which technology advancements in hydrogen extraction will reduce 

costs and expand market share. 

The market will be penetrated with the widespread use of fuel cell-powered buses and 

government vehicles. Emphasis will be placed on expanding from local pockets of 

hydrogen energy development to building a national hydrogen infrastructure. Although 

hydrogen production will often occur onsite or onboard, it will also be produced in largescale refineries that will use coal or biomass as a feedstock for the simultaneous 

production of hydrogen, electricity, thermal energy, chemicals, and other fuels. 

Large- and small-scale hydrogen storage using hydrides will become mature technologies 

and enter mass production. Other advanced storage techniques such as carbon structures 

will be in the development stage but close to commercialization. National policies will 

support hydrogen market expansion, and state and local standards will be in place. 

Siting and permitting of hydrogen technologies will be more streamlined. State and 

local governments will play a major role in this phase. 

Phase F Phase Four –Realiza Realization of the Hydrogen V tion of the Hydrogen Vision

Eventually hydrogen will overtake fossil fuels for most end-use energy market 

applications. Economical and environmentally friendly means will be found for extracting 

hydrogen from fossil fuels, biomass, and water. Hydrogen “farms” that use biological 

systems such as algae to extract hydrogen from water will be in use. Gasification plants 

will extract hydrogen from coal and biomass. Carbon capture will limit emissions, and 

22 
new industrial uses will put captured carbon to work for industrial feed stocks, building 

materials, and other applications. 

A national infrastructure that supports the use of hydrogen for fuel and electricity 

production will be in place. United States companies that spent decades developing 

hydrogen technologies will be exporting products and services around the world. 

American consumers will be enjoying the economic benefits of a financially sound 

hydrogen energy sector and the environmental benefits of clean energy systems. 

The market for hydrogen vehicles as personal transportation will expand as a natural 

outgrowth of technology, market, and policy development. There will be no need for 

government mandates. The practice of using hydrogen vehicles to provide heat and power 

for the workplace during the day, and homes during the night, will be commonplace. The 

line between the transportation sector and the power system will blur. The hydrogen 

economy will become reality. 

23 
24 
6. A Path Forward

If significant progress toward a hydrogen economy is to occur, a new public-private 

partnership needs to form and spring into action immediately. The ultimate vision for the 

hydrogen economy is decades in the future and the amount of research, development, 

public education, institution building, and infrastructure construction needed to get there 

is enormous. 

A useful venue for building this new public-private Planning Logic of the Typical Vision and partnership is the joint development of a National 

Hydrogen Energy Roadmap. The roadmapping process Roadmap Process 

can provide industry practitioners, government officials, 

and technologists from universities and the National 

Laboratories with the opportunity to collectively identify 

near-, mid-, and long-term actions. The process can be 

used to set priorities for research, development, and 

demonstration programs, and it can outline the relative 

roles of industry, government, universities, National 

Laboratories, and non-governmental organizations. 

This roadmap process will need to address a number of areas: 

 Technologies for hydrogen production 

 Technologies for hydrogen delivery and transportation 

 Technologies for hydrogen storage 

 Technologies for hydrogen conversion 

 Scope and directions for public-private partnerships, both nationally and internationally 

 Codes and standards for safe production, delivery, and use of hydrogen 

 Education of the general public and government and private decision makers about the 

potential benefits from the expanded use of hydrogen 

 End-use energy markets for hydrogen including the potential for “first use” fleet 

applications in Federal facilities, vehicles, and equipment 

Participants in the roadmap process should include technical experts and industry 

25 
practitioners from domestic and international organizations, as they have the requisite 

capabilities and experience to chart the critical hydrogen energy development pathways 

over the next several decades. 

Examples of possible roadmap participants are listed in the table below. 

Roadmap Areas Roadmap Participants 

Equipment manufacturers, industrial end users, 

energy managers 

districts; universities; media companies 

Codes and standards 

associations, standards organizations 

Technology development Industry, universities, National Laboratories 

Market applications 

building owners and operators, and Federal 

Public education Federal, State, and local governments; school 

State and local governments, professional 

The roadmap needs to be systematic from resource to end-use. Interfaces matter. For 

example, it may not be best to have refueling stations at one pressure and onboard 

storage tanks at another. 

Working together, industry, universities, and government can help America realize the 

hydrogen vision. This entails building on our existing energy infrastructure and current 

hydrogen energy technologies to meet mutually set milestones. Public and private 

entities can cooperate to overcome hurdles and develop technologies and policies that fit 

America's drive for clean, affordable, secure, and efficient energy systems. 

26 
Appendix: P Appendix: Participating ticipatingticipating

Organizations Organizations Organizations

Air Products and Chemicals, Inc., 

Arthur Katsaros 

Alameda Contra Costa Transit, Jaimie 

Levin 

Avista Labs, Inc., J. Michael Davis 

Ballard Power Systems, Stephen Kukucha 

Battelle-Pacific Northwest National 

Laboratory, Jae Edmonds 

BP, Lauren Segal 

California Energy Commission, Susan 

Brown and Louise Dunlap 

DaimlerChrysler, William Craven 

DCH Technology, Inc., John Donohue 

Energetics, Inc., Rich Scheer, Jack 

Eisenhauer, Ross Brindle (Facilitators) 

Entergy Nuclear, Inc., Dan Keuter 

ExxonMobil Refining & Supply 

Company, William Lewis 

Ford Motor Company, Frank Balog 

GE Corporate Research & 

Development, Sanjay Correa 

General Motors, Byron McCormick 

Hawaii Natural Energy Institute, 

Richard Rocheleau 

House Committee on Science, John 

Darnell 

Kennedy Space Center, David Bartine 

Millennium Cell, Stephen Tang 

National Academy of Sciences, James 

Zucchetto 

National Energy Technology 

Laboratory, Rita Bajura 

National Governors Association, Ethan 

Brown 

National Renewable Energy Laboratory, 

Richard Truly 

Natural Resources Defense Council, 

Daniel Lashof 

NiSource Inc., Arthur Smith 

Office of Assistant Secretary of the Navy 

(I&E), Leo Grassilli 

Office of Naval Research, Richard Carlin 

Office of Senator Akaka, Jaffer Mohiuddin 

Praxair, Inc., Donald Terry 

Princeton University, Joan Ogden 

Proton Energy Systems, Inc., William 

Smith 

Quantum Technologies, Alan Niedzwiecki 

Stuart Energy Systems, Andrew T.B. Stuart 

SunLine Transit Agency, Richard Cromwell 

Texaco Energy Systems, Graham Batcheler 

The Wexler Group, Robert Walker 

U.S. Department of Energy, Robert Card, 

Robert Dixon, David Garman, Tom Gross, R. 

Shane Johnson, Karen Kimball, Robert 

Kripowicz, Richard Moorer, William Parks, 

Frank Wilkins 

U.S. House of Representatives,

Congressman Roscoe Bartlett 

UTC Fuel Cells, William Miller 

Verizon, Thomas Bean 

World Resources Institute, James 

MacKenzie 

27 
28