Hydrogen - Energy Policy Analysis: A Conceptual Framework - page 199

than, traditional power technologies over the life of the system. Ongoing research is focused on
identifying and developing new materials to reduce the cost and extend the life of fuel cell stack
components, including membranes, catalysts, bipolar plates, and membrane-electrode assemblies.
Low-cost, high-volume manufacturing processes will also help to make fuel cell systems cost-
competitive with traditional technologies (USDOE 2011a).
A multibillion-dollar hydrogen industry exists in the United States, serving diverse hydrogen
end-use applications. About 99 percent of hydrogen produced is used in chemical and petrochemical
applications. Of the end uses, the largest consumers are oil refineries, ammonia plants, chloralkali
plants, and methanol plants. Examples of current hydrogen end uses include:
s0ETROLEUMRElNINGTOREMOVESULFURFROMCRUDEOILASWELLASTOCONVERTHEAVYCRUDEOILTO
lighter products
s#HEMICALPROCESSINGTOMANUFACTUREAMMONIAMETHANOLCHLORINECAUSTICSODAANDHY-
drogenated nonedible oils for soaps, insulation, plastics, ointments, and other chemicals
s0HARMACEUTICALSTOPRODUCESORBITOLWHICHISUSEDINCOSMETICSADHESIVESSURFACTANTSAND
vitamins
s-ETALPRODUCTIONANDFABRICATIONTOCREATEAPROTECTIVEATMOSPHEREINHIGHTEMPERATURE
operations, such as stainless steel manufacturing
s&OODPROCESSINGTOHYDROGENATEOILSSUCHASSOYBEANlSHCOTTONSEEDANDCORNOIL
s,ABORATORYRESEARCHTOCONDUCTEXPERIMENTATIONCONCERNINGSUPERCRITICALITY
s%LECTRONICSTOCREATEASPECIALATMOSPHEREFORPRODUCTIONOFSEMICONDUCTORCIRCUITS
s'LASSMANUFACTURINGTOCREATEAPROTECTIVEATMOSPHEREFORmOATGLASSPRODUCTION
s0OWERGENERATIONTOCOOLTURBOGENERATORSANDTOPROTECTPIPINGINNUCLEARREACTORS53%)!
2008b)
Stationary power generation and the transportation sector are widely viewed as two sectors
where there may be opportunities to greatly expand future uses of hydrogen.
STATIONARY USES OF HYDROGEN
Comprehensive data on U.S. stationary fuel cell installations are not available, but large cogenera-
tion, uninterruptible power supply systems, and home energy stations are in production or under
development. Cogeneration (combined heat and power) systems are being manufactured for large
commercial buildings or industrial sites that require significant amounts of electricity, water heating,
space heating, or process heat. Fuel cells combined with a heat recovery system can meet some or
all of these needs, as well as providing a source of purified water. Small, stand-alone cogeneration
systems currently are viable in some areas where the high cost of transmitting power justifies the
added cost of a fuel cell. Currently, U.S. companies such as Plug Power manufacture fuel cell
systems able to produce up to five kilowatts of electricity and nine kilowatts of thermal energy.
Excess heat can be used for water or space heating to further reduce a site's electrical energy use
(USEIA 2008b). This would be adequate for modest residential use.
Uninterruptible power supply systems, in which fuel cells are used as backup power supplies if a
primary power system fails, are one of the fastest growth areas for stationary fuel cell technologies.
Uninterruptible power supply systems often are used in telecommunications, banking, hospitals, and
military applications. Battery systems have been used for many years to provide backup power to
essential services, but battery output time is relatively short. Fuel cells with refillable fuel storage
systems can provide power for as long as required during a blackout (USEIA 2008b).
Home energy stations are another variant of small, stand-alone cogeneration systems. They use either