Baxter Caarb Session3 Presentaion

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State Perspective on Implementing Fuel Cell Technology Shannon Baxter, Ph.D.California Air Resources BoardJune 27, 2001Air Resources BoardCalifornia Environmental Protection AgencyEPA Fuel Cell WorkshopOverviewThe California Air Resources BoardAir Quality in California Motivation to Implement Fuel CellsImprove the air quality in CA with near-zero and zero emission technologiesEncourage the fuel flexibility of new, clean technologiesImplementing Fuel CellsPartnershipsMandatesRemoving barriersCalifornia Air Resources BoardPart of the California Environmental Protection AgencyEstablished in 1967 toAttain and maintain healthy air qualityConduct researchControl pollution from motor vehicles2001 Clean Air Plan Air Resources Boards GoalEnsure all individuals in California, especially children and the elderly, can live, work and play in a healthful environment -- free from harmful exposure to air pollutionImproving Air QualityHighest Ozone: Greater Los AngelesDaily VMT* Increasing Faster Than Population* vehicle miles traveledWhy are fuel cells promising?Near-zero to zero emissions (including CO2)Higher fuel efficiency than I.C.E.Fuel flexibleQuietSimpleHigh Quality PowerApplications for Fuel CellsTransportationLight Duty VehiclesHeavy Duty VehiclesMarine VehiclesAuxiliary Power Units (APUs)Stationary/Distributed PowerHomes, OfficesBack-up generatorsPortableLawn Mowers, Power ToolsImplementing Fuel CellsCalifornia Fuel Cell PartnershipStationary Fuel Cell CollaborativeProject FundingCaltech/JPL, Direct methanol fuel cell demonstration unit developmentSunLines HbT unitFreightliner/Xcellsis Fuel Cell Auxillary Power UnitDCH Technologys Water TaxiPARTNERSHIPSCalifornia Fuel Cell PartnershipFull PartnersAutomakersFuel ProvidersFordTexacoDaimler ChryslerShellHondaBPVolkswagenExxonMobilHyundai General Motors Public AgenciesToyota Ca. Air Resources BoardNissan Ca. Energy CommissionFuel Cell Providers South Coast AQMDBallard U.S. DOEInternational Fuel Cells U. S. DOTXCELLSiSCalifornia Fuel Cell PartnershipAssociate PartnersHydrogen SuppliersTransit AgenciesAir Products and ChemicalsSunline TransitPraxairAC TransitProton EnergyStuart EnergyHydrogen Burner TechnologyPacific Gas & ElectricMethanol SupplierMethanex Environmental and Energy Statement of IntentAdopted by the CaFCP Steering Team, July 2000The California Fuel Cell Partnership is committed to promoting fuel cell vehicle commercialization as a means of moving toward a sustainable energy future, increasing energy efficiency and reducing or eliminating air pollutants and greenhouse gas emissions.Exploring the Path to CommercializationRoadmap StudyCooperative effort among CaFCP members Examine opportunities and barriers to commercializing FCEVsConsider several fuel options - will NOT pick winners/losers Expect draft completed Spring 2001W. Sacramento FacilityCaFCP Bus DemonstrationUp to 20 buses placed at transit agencies SunLine Transit in Palm DesertAC Transit in the Bay AreaRepresents small fleet introductionOperated in regular fare serviceFueled with hydrogenStationary Fuel Cell CollaborativePURPOSEProvide leadership role in facilitating the advancement, demonstration and use of fuel cells for power generation in stationary applications throughout CaliforniaKEY GOALSFund pilot projects in partnership with stakeholdersIdentify and facilitate policies that encourage the use of fuel cells in stationary applicationsEstablish a mechanism for giving weight to environmentally superior technologies in government building projects Participate in fuel cell education and outreach activitiesCORE GROUPProposed MembershipGovernors Office Governors Office of Planning & Research Ca Air Resources BoardCa Department of General ServicesCa Energy CommissionCa Public Utilities CommissionLos Angeles DWPSouth Coast AQMDNational Fuel Cell Research CenterCa Department of TransportationCal/EPACa Resources AgencyCa Business, Transportation and Housing Agency Ca Trade and CommerceU.S. Department Of EnergyU.S. Department Of DefenseU.S. General Service AdministrationU. S. Environmental Protection AgencyHouston Advanced Research CenterADVISORY COMMITTEEProposed MembershipFuel Cell ManufacturersGovernment AgenciesUtilitiesFuel SuppliersPotential DevelopersNon-Governmental Organizations POTENTIAL TASKSPurchase of fuel cell units by California agenciesExplore agreements to include fuel cells for new building projectsSupport pilot projects in industrial sectors with high sensitivity to power reliabilitySupport demonstration projects that have capability to facilitate market adoptionDevelop and maintain web siteShort-Term TasksPOTENTIAL TASKSSupport fuel cell technologies for stationary power generation applicationsWork with agencies developing regulations for distributed power generationPartner with key stakeholders to fund stationary fuel cell projectsEstablish and maintain effective communication with stakeholdersOngoing/Long-Term TasksRESOURCESSelf-generation buy down program (PUC)Public Interest Energy Research program (CEC)Renewables buy down program (CEC)Other State funds (e.g., ICAT)Advanced Technology Fund (SCAQMD)Penalty fundsSB 5X, Appropriations for State Energy ProjectsPotential Funding OpportunitiesHydrogen-Powered Water Transportation SystemCo-funding DCH Technologies project to develop hydrogen-powered water transportation systemSystem:hydrogen turbine technology transitioning to PEM fuel cellsmobile dockside fueling station employing fuel-flexible reformerLooking to expand: boat builders, fishing fleets and ferries Hydrogen Fuels Issues that will require Government AssistanceStorage issuesDistribution issuesSafetyStandardizationConvenience / AvailabilityCostsExperienceImplementing Fuel CellsMandate is Good Public PolicySets challenging but achievable environmental standardAccelerates adoption of clean vehicle technologiesWide ranging environmental and energy benefitsEconomic growth opportunities for California Zero Emission Bus MandateLarge Transit Agencies (200+ buses) can use diesel or natural gas as their primary fuelLarge fleets primarily using diesel fuel must demonstrate ZEBs in 2003ARB ZEB feasibility review in 200615% purchase requirements 2008+ (for buses on diesel path), 2010+ (for buses on alt. fuel path)Economic BenefitsZEV Program New technologies - a California strengthNew businessesNew jobsNew partnerships Advanced Vehicle Technology and Design CentersSouthern California: Santa Barbara CountyAshman Technology, Pavlics Engineering, KilovacLos Angeles CountyGeneral Motors ATV, Honda, Toyota, Honeywell, Enova Systems, Replica Roadsters, International Rectifier, Jinriksha, Litton Industries, Modular Electric, REBAC, Econotech, Hydrogen Burner Technology, Enginuity, Phoenix Fuel Cell Systems, HyGen Industries, Rockwell, Nissan, Mitsubushi, EBUS, Trojan Battery, Yussa/Exide, Keystone Battery, DCH Technology, Harvest Energy, FAS Engineering, JPL, Clean Fuel Connection, Stuart Energy USA, TechTran, Aerovironment, Delphi Automotive,AC Propulsion, Amerigon, Allison Products San Diego CountyNissan, Th!nk Group, XCELLSIS, Alturdyne, ISE Research, Signal Processing, Schock Power ConversionsOrange CountyFords Premier Auto Group (Lincoln Mercury, Volvo, Jaguar, Aston-Martin), Hyundai, Kia, Mazda, Doran Motor, Gorilla Vehicles, Taylor Dunn, Power Systems Group, Gaffoglio Metalcrafters, Equus Marketing, AutoPacific, Prisma Design, Eco Soul, Badsey IndustrialVentura CountyBMW, Volvo, Volkswagen, ODU USA, APS, Dreyco, Energy Systems, Motorola, Pentadyne, Planet Electric, US Flywheel Systems, Capstone TurbineFountain ValleySan BernardinoCountySanta Barbara CountyRiversideCountyCoronaSan Bernardino CountyEldorado National, KTA Riverside CountyUS Battery San DimasChinoCalifornia-Based Hydrogen Technology ProvidersPartial list includes Harvest Energy TechnologyHydro Environment ResourcesHydrogen Burner TechnologyHygen IndustriesIMPCO Technologies Procyon Power SystemsStuart EnergyTechnip USAVision for the FutureNearly all zero and near-zero emission vehiclesImproved fuel efficiency for lower emissionsSustainable fuel supply: H2 for fuel cellsClean, healthful air for everyoneHealthdesired impact: attain and maintain air quality stds with continued economic growthI want to quickly show this and the next slide to emphasize that the air in California is becoming increasingly cleaner although not due to a change of behavior in the lives of the citizens of Californiaimproving but not there, this is just ozoneThe average Californian is driving more. Our air quality improvements are a result of the implementation of new technologies such as direct injection engines, three-way catalytic converters, and on-board diagnostics. We are continually looking for new, environmentally sound power technologies. One of the most promising is fuel cells.Clean technologies and fuelsWe are looking at fuel cell technologynot only for vehicles but for a variety of applications to reduce overall emissions. With fuel cells there is no degradation over time that will allow higher emissions--the emissions are near-zero to zero over the life of the application.The higher fuel efficiency of fuel cell engines over internal combustion engines is potentially key to the energy future of California. Energy efficiency is a number one priority in the minds of many Legislators in California.LEGISLATION THAT SUPPORTS THIS STATEMENTFuel flexibility is another key component to the energy future of California. We need options to being held hostage to the unpredictable price of gasoline and natural gas supplies.Other feature of fuel cells will make them attractive to consumers such as their quiet, simple operation.And finally fuel cells can be utilized as a high quality, uniterrupted distributed generation source of power. This application would ease the burden on our overburdened centralized power distribution system.At the Air Resources Board, we are involved in a number of projects that include fuel cells because there is an impressive intersection of fuel-efficiency and zero emissions within the capability of this technology.The CaFCP goals are in alignment with our Boards desired to see more zero emission vehicles on the roadlook at the vehicle and its fuel as a system--as our most recent regulations have been focusedand to accomplish these goals in an industry-led environment.We are looking at fuel cell technologynot only for vehicles but for a variety of applications to reduce overall emissions. With fuel cells there is no degradation over time that will allow higher emissions--the emissions are near-zero to zero over the life of the application.The higher fuel efficiency of fuel cell engines over internal combustion engines is potentially key to the energy future of California. Energy efficiency is a number one priority in the minds of many Legislators in California.LEGISLATION THAT SUPPORTS THIS STATEMENTFuel flexibility is another key component to the energy future of California. We need options to being held hostage to the unpredictable price of gasoline and natural gas supplies.Other feature of fuel cells will make them attractive to consumers such as their quiet, simple operation.And finally fuel cells can be utilized as a high quality, uniterrupted distributed generation source of power. This application would ease the burden on our overburdened centralized power distribution system.The energy companies join other industry leaders and forward thinking public agencies to demonstrate fuel cell technology and to better understand the infrastructure needs and the road to commercialization. A question I am frequently asked is why are the energy companies and Texaco in particular so interested in seeing this new technology succeed. Wont it compete with our traditional business?We answer that by pointing out that for several hundred years there has been a clear path of de-carbonization of fuel choice, from wood to coal to oil to natural gas. Each succeeding fuel having a higher ratio of hydrogen to carbon. We believe this transformation will continue towards hydrogen eventually being used as a fuel. It is an evolutionary step for a company like Texaco that has been making and selling fuels for 99 years.Our participation in the CAFCP is a part of our larger new technology development programs. Where we have our own Fuel Cell, Fuel Processing amd Hydrogen Storage technical development programs, this is a real world demonstration at a size that is both relevant and comprehensible. Not only to us, but to other stakeholders and policy makers. The choice of fuels from which to make the hydrogen to power fuel cell cars and buses is fairly broad and the energy companies, Texaco, Shell and BP are committed to be fuel neutral for our work within the Partnership. We dont push the case for any particular fuel or for any particular technology. In addition to the fuel neutral energy companies there are other very well known hydrogen suppliers and a methanol supplier that bring particular abilities, know how and point of view to the group concerning their particular choice of fuel and technology. Together, this robust group of the fuel suppliers ensure that all points of view and know how are covered for the broad choice of fuel and technologies within the CAFCP. In conjunction with establishing the E-team to address environmental issues, the CaFCP steering team adopted an environmental statement of intent in July 2000. The California Fuel Cell Partnership is committed to promoting fuel cell vehicle commercialization as a means of moving toward a sustainable energy future, increasing energy efficiency and reducing or eliminating air pollutants and greenhouse gas emissions.The partners share a vision of fuel cell vehicles as a means of addressing environmental and energy concerns locally, nationally and worldwide. Finally, Id like to turn to the Partnerships Roadmap Study, our first joint study that will explore the path to commercializing fuel cell vehicles.It is a cooperative effort among all the partners. As you may recall, we have a sub-team, led by CARB staff and including auto, fuel, fuel cell and government partners, that is directing our contractor on this study.The purpose of the study is to consider what will it take to commercialize fuel cell vehicles that use the following fuels: hydrogen, MeOH, gasoline and EtOH. The study will not pick fuel winners and losers, but rather will identify the barriers and opportunities that are both common to all fuels and unique to each particular fuel. This will allow us to focus our efforts on addressing the barriers and taking advantage of the opportunities in a timely manner.While we have not yet determined how much of this report will be made available publicly, we expect a draft completed in the spring of next year.Now Id like to shift to the bus demonstration program.The partnership will demonstrate up to 20 buses in regular transit service. These buses will be located at our two member transit agencies, Sunline Transit in Palm Desert and AC Transit in the Bay AreaThe 40 foot buses will use XCELLSiS engines fueled with hydrogen and will be purchased by the transit agencies from bus manufacturers.As Ive mentioned, the first bus is already on site at SunLine transit agency.For our project, government will play a key role in funding and implementation. We think this approach makes sense because these vehicles will be in the public domain. The purpose is stated here. The primary point being that the focus is on advancing the commercialization of stationary applications of fuel cells. As such, the effort does not duplicate the work of the partnership. However, we are in coordination with the partnership.This slide lists the key goals we have identified to carry out the purpose and mission of the collaborative. We believe that the stakeholders will need to collaborate to accomplish these goals. The collaborative effort will require not only identification of key goals, but also the identification of funding mechanisms and specific tasks to meet these goals.As this point, we are recommending that the core group primarily consist of governmental organizations that have a key interest or role in the successful commercialization of fuel cells. However, we have also requested that the U.S. Fuel Cell Council be part of the Core.The manufacturers, project developers, utilities and others are clearly an important part of the equation and as such are recommended to be part of the Advisory Committee.This slide identifies several of the organizations that would likely be part of the Advisory Committee. We are currently compiling names/organizations as we focus on pulling the Advisory Committee together. Suggestions that you have would be helpful.We have identified several potential short-term tasks to implement the goals of the collaborative. Some examples are as follows:We are investigating the feasibility of siting a stationary fuel cells in agency buildings such as the this building. We have already begun the effort with respect to this building.We are also putting together the shell for an interagency agreement to include fuel cells for new building projects in California.We want to support other pilot projects and demonstration projects that have the capability to facilitate market adoption of fuel cells in California and elsewhere.We have developed a draft web site for your review. The draft of the web pages are included in your folders. We believe that the web site will also provide an excellent means of communicating with all the members of the Core Group and Advisory Committees.One example of information that will be provided on the web site is meeting minutes and agendas for future meetings.Over the longer term, we want to support a range of fuel cell technologies for stationary power generation applications.We also want to work with agencies developing regulations for distributed power generation. For example, the ARBs Stationary Source Division is currently working on DG regulations to address environmental issues associated with the increase in distributed power generation. Interaction with agencies developing such regulations will not only assure that the regulations are consistent with the goals of the collaborative but bring about potential incentives for fuel cell power generation applications.We envision partnerships with key stakeholders to establish and maintain effective communications and to fund key demonstration projects. There are several potential funding mechanisms. Some of the mechanisms available from state and local programs are identified in this slide.One of the more attractive mechanisms is the CPUC buy-down program. This program offers among other alternatives, $2.50 per watt for fuel cells using non renewable fuels and using cogeneration where the maximum percentage of the project cost is 40% and the maximum system size is 1MW. This program will be discussed by the CPUC later in the agendaFunding sources also include programs administered by the CEC, the SCAQMD and the ARB which provide matching funds for advanced technologies including energy projects as well as the US DOE which also administers research programs for energy projects.Other potential funding sources include new California legislation allocating several million dollars for energy conservation projects.As I have already mentioned, the agencies which administer these programs have all been invited to participate as part of the collaborative Core Group.Maritime HydrogenTechnology Development Group (MHTDG), formed in 1998, is working with several private and public organizations to integrate and operate a hydrogen-powered water transportation system. The cooperative members include several OEMs and ARB. The Group will be operating the first useful vessel of its type throughout the United States, with initial demonstrations scheduled for California in San Francisco, Long Beach, and Lake Tahoe and on the Potomac River in Washington, DC.The MHTDG recently completed a comprehensive study for the U.S. Department of Energy's Hydrogen Program on the technical and economic considerations necessary for implementation of hydrogen fuel and fuel cell power technology in a maritime environment. Hydrogen energy offers a clean and efficient alternative to the use of polluting fossil fuels, and unlike other modes of transportation, maritime economics can be successful with minimal investment in fueling infrastructure.The vessel will utilize both the proton exchange membrane (PEM) fuel cell and hydrogen turbine technology. The mobile dockside fueling station will be based on a fuel-flexible reformer built by Hydrogen Burner Technology (HBT). The Group will also demonstrate an electrolyzer, which separates water into hydrogen and oxygen. Pressurized hydrogen will be contained in new composite technology vessels designed to be both lightweight and economical. The Group will soon grow to include other industrial specialty companies that can contribute technology and expertise to operate a complete transportation system, including boat builders, fishing fleets and ferries.