Twenty Hydrogen Myths (Rocky Mountain Institute)
Twenty Hydrogen Myths (Rocky Mountain Institute)
Twenty Hydrogen Myths (Rocky Mountain Institute)
#E03-05
AMORY B. LOVINS, CEO, ROCKY MOUNTAIN INSTITUTE
20 June 2003, corrected and updated 02 September 2003
Abstract
Recent public interest in hydrogen has elicited a great deal of conflicting, confusing, and often
ill-informed commentary. This peer-reviewed white paper offers both lay and technical readers,
particularly in the United States, a documented primer on basic hydrogen facts, weighs compet-
ing opinions, and corrects twenty widespread misconceptions. It explains why the rapidly grow-
ing engagement of business, civil society, and government in devising and achieving a transition
to a hydrogen economy is warranted and, if properly done, could yield important national and
global benefits.
Physicist Amory Lovins is cofounder and CEO of Rocky Mountain Institute (www.rmi.org) and
Chairman of Hypercar, Inc. (www.hypercar.com), RMI’s fourth for-profit spinoff (in which, to
declare an interest, he holds minor equity options). Published in 28 books and hundreds of pa-
pers, his work has been recognized by the “Alternative Nobel,” Onassis, Nissan, Shingo, and
Mitchell Prizes, a MacArthur Fellowship, the Happold Medal, eight honorary doctorates, and the
Heinz, Lindbergh, World Technology, and “Hero for the Planet” Awards. He has advised indus-
try and government worldwide on energy, resources, environment, development, and security for
the past three decades.
Myth #8. Compressing hydrogen for automotive storage tanks takes too much energy. 19
Myth #9. Hydrogen is too expensive to compete with gasoline. 20
a. Hydrogen pure enough for fuel cells would cost ~$15–22/kg. 21
Myth #10. We’d need to lace the country with ubiquitous hydrogen production, distribution, and delivery
infrastructure before we could sell the first hydrogen car, but that’s impractical and far too costly — probably
hundreds of billions of dollars. 21
Myth #11. Manufacturing enough hydrogen to run a car fleet is a gargantuan and hugely expensive task. 22
Myth #12. Since renewables are currently too costly, hydrogen would have to be made from fossil fuels or
nuclear energy. 22
a. A hydrogen economy would require the construction of many new coal and nuclear power stations (or
perhaps nuclear fusion stations). 24
b. A hydrogen economy would retard the adoption of renewable energy by competing for R&D budget, being
misspent, and taking away future markets. 24
c. Switching from gasoline to hydrogen will worsen climate change unless we do a large amount of successful
carbon sequestration. 26
d. Making hydrogen from natural gas would quickly deplete our gas reserves. 26
Myth #13. Incumbent industries (e.g., oil and car companies) actually oppose hydrogen as a competitive
threat, so their hydrogen development efforts are mere window-dressing. 27
Myth #14. A large-scale hydrogen economy would harm the Earth’s climate, water balance, or atmospheric
chemistry. 28
a. Using hydrogen would release or consume too much water. 28
b. Using hydrogen would consume too much oxygen. 29
c. Using hydrogen would dry out the Earth by leaking hydrogen to outer space. 30
d. Using hydrogen would harm the ozone layer or the climate by leaking too much water-forming and
chemically reactive molecular hydrogen into the upper atmosphere. 30
Myth #15. There are more attractive ways to provide sustainable mobility than adopting hydrogen. 32
a. We should run cars on natural gas, not hydrogen. 32
b. We should convert existing cars to carry both gasoline and hydrogen, burning both in their existing internal-
combustion engines, to create an early hydrogen market and reduce oil dependence and urban air pollution. 32
Acknowledgments 38
Notes 38–49
Hydrogen technologies are maturing. The world’s existing hydrogen industry is starting to be
recognized as big — producing one-fourth as much volume of gas each year as the global natu-
ral-gas industry. Industry, government, and civil society are becoming seriously engaged in de-
signing a transition from refined petroleum products, natural gas, and electricity to hydrogen as
the dominant way to carry, store, and deliver useful energy. New transitional paths are emerging,
some with a vision across sectoral or disciplinary boundaries that makes them harder for spe-
cialists to grasp. Naturally, there’s rising speculation about winners, losers, and hidden agendas.
And as the novel hydrogen concept is overlain onto longstanding and rancorous debates about
traditional energy policy, constituencies are realigning in unexpected ways.
In short, the customary wave of confusion is spreading across the country. What’s this all about?
Is hydrogen energy really a good idea? Is it just a way for incumbent industries to reinforce their
dominance, or could it be a new, different, and hopeful melding of innovation with competition?
Is it a panacea for humanity’s energy predicament, or a misleading deus ex machina destined to
inflict public disappointment and cynicism, or neither, or both?
The conversation about hydrogen is confused but hardly fanciful. The chairs of eight major oil
and car companies have said the world is entering the oil endgame and the start of the Hydrogen
Era. Royal Dutch/Shell’s planning scenarios in 2001 envisaged a radical, China-led leapfrog to
hydrogen (already underway): hydrogen would fuel a fourth of the vehicle fleet in the industri-
alized countries by 2025, when world oil use, stagnant meanwhile, would start to fall. President
Bush’s 2003 State of the Union message emphasized the commitment he’d announced a year
earlier to develop hydrogen-fuel-cell cars (FreedomCAR).
Yet many diverse authors have lately criticized hydrogen energy, some severely.1–12 Some call it a
smokescreen to hide White House opposition to promptly raising car efficiency using conven-
tional technology, or fear that working on hydrogen would divert effort from renewable energy
sources. Some are skeptical of hydrogen because the President endorsed it, others because envi-
ronmentalists did. Many wonder where the hydrogen will come from, and note that it’s only as
clean and abundant as the energy sources from which it’s made. Most of the critiques reflect er-
rors meriting a tutorial on basic hydrogen facts; hence this paper.
Introductory facts
To establish a common factual basis for exploring prevalent myths about hydrogen, let’s start
with six points that are universally accepted by hydrogen experts but not always articulated:
• Hydrogen makes up about 75% of the known universe, but is not an energy source like
oil, coal, wind, or sun.13 Rather, it is an energy carrier like electricity or gasoline — a
way of transporting useful energy to users. Hydrogen is an especially versatile carrier be-
To reinforce this sixth point, the U.S. Department of Energy (DOE) says bulk hydrogen
made and consumed onsite costs about $0.71/kg. 23 That’s equivalent in energy content to
$0.72 per gallon of gasoline.24 But per mile driven — which is the objective — it’s
equivalent to about one-third to one-half that price, i.e., to about $0.24–0.36/gallon-
equivalent, because of the 2–3-fold greater efficiency of a hydrogen fuel cell than a gaso-
line engine in running a car. Of course, the price of hydrogen delivered into the car’s fuel
tank will be much higher. For example, DOE says the delivered price of industrial liquid
hydrogen is about $2.2–3.1/kg. If it could be delivered into the tank of a car for the same
price, it would be roughly equivalent per mile to $1-a-gallon gasoline. Thus it can cost
several times as much to deliver liquid hydrogen as to produce it. (Fortunately, as we’ll
see, gaseous hydrogen can be produced at a filling station and put into the car for well
under $2/kg.) Price also depends on hydrogen purity. So to assess hydrogen’s price or
cost or value or benefit meaningfully, we need to know how it’ll be used, whether it’s
pure enough for the task, whether it’s delivered to the task, and how much of the desired
work it actually does.
So much for the basics. What’s different about Rocky Mountain Institute’s perspective that un-
derlies this paper?
• RMI believes that radical but practical and advantageous efficiency improvements at
three levels — vehicles, energy distribution, and overall energy infrastructure — can
make the hydrogen transition rapid and profitable.
• At least for the next decade or two, RMI envisions a distributed model for hydrogen pro-
duction and delivery that integrates the gas, electricity, building, and mobility infrastruc-
tures. Instead of building a costly new distribution infrastructure for hydrogen, we’d use
excess capacity inherent in the existing gas and electricity distribution infrastructures,
then make the hydrogen locally so it requires little or no further distribution. Only after
this decentralized approach had built up a large hydrogen market in buildings and vehi-
cles could centralized hydrogen production merit much investment, except in special cir-
cumstances.
And what “headlines” will emerge from this perspective in the following discussion?
Twenty myths
Myth #1. A whole hydrogen industry would need to be developed from scratch.
Producing hydrogen is already a large and mature global industry, using at least 5% of U.S. natu-
ral gas output. Globally, about 50 million metric tons of hydrogen is made for industrial use each
year. That’s over half a trillion cubic meters measured at atmospheric pressure.25 The U.S. De-
partment of Energy (DOE) reports26 that about 48% of global hydrogen production is reformed
from natural gas, 30% from oil, and 18% from coal (chiefly in China and South Africa for pro-
ducing nitrogen fertilizer; half the world’s hydrogen goes into ammonia-based fertilizer). Only
4% of the world’s hydrogen comes from electrolysis, because that process can compete with re-
forming fossil fuels only under three main conditions: with very cheap electricity, generally well
under 2¢/kWh (see Myth #9 below); if the hydrogen is a byproduct (about 2%, for example, is
unintentionally made during “chloralkali” electrolytic chlorine production); or perhaps if the
producer is charged for carbon emissions and has a carbon-free source of electricity but no way
to sequester (keep out of the atmosphere) carbon released from reforming fossil fuels.
U.S. hydrogen production is at least one-fifth and probably nearer one-third of the world total,27
is equivalent to ~1.8% of total U.S. energy consumption, and comes ~95% from natural gas at
~99% purity from steam reforming and associated cleanup processing.28 Roughly 47% of U.S. or
37–45% of world hydrogen production is reportedly used in refineries;29 it is made onsite, mostly
by steam reforming of gas or oil, and is used mainly to make gasoline and diesel fuel. Most hy-
drogen production by refineries is deliberate, used to make hydrogen-rich refined products or to
remove sulfur from them; some is a byproduct of making aromatic compounds. The rest of the
world’s hydrogen output goes to ammonia fertilizer, methanol, petrochemicals, edible fats and
oils, metal production, microchips, and other products, and a little to special industrial furnaces.
World hydrogen production is reportedly doubling about every decade, driven by refineries’
need to make lower-sulfur fuels and by other growth industries. Usage for fertilizer has been
relatively flat for the past decade, and usage for methanol is growing more slowly (roughly with
GDP) as prospects fade for wide use of methanol-derived MTBE gasoline additive, so the big-
gest growth market for industrial hydrogen appears to be refineries.
The industrial infrastructure for centralized hydrogen production already exists. Throughout in-
dustry, most hydrogen is currently made at large plants and is used at the industrial site or
nearby. There are ~1,500 km (~930 miles) of special hydrogen pipelines (720 km or 446 miles in
North America) operating at up to 100 bar.30 Moving hydrogen gas through pipelines takes about
half as much of its energy as is currently lost when transporting electricity, and the pipeline is far
smaller — a 1.7-meter-diameter hydrogen pipeline at 70 bar delivers 16 GW, whereas a 60-
meter-tall pylon with three pairs of ±500-kVDC power lines delivers only 9 GW.31 Hydrogen is
less dense and takes more compressor energy than natural gas, but also flows better, so trans-
porting hydrogen through existing natural-gas pipelines would deliver only ~20–25% less en-
Hydrogen pipelines normally carry compressed hydrogen gas, not super-cold liquid hydrogen.
Only about 1–3 thousandths of all hydrogen produced is liquefied and cryogenically piped,
mainly to NASA launch pads for rocket fuel — an ideal use for a fuel whose density is about as
low as the denser grades of Styrofoam.33
Centralized hydrogen production has coevolved with centralized consumption by major indus-
trial plants. Yet most future uses of hydrogen are not centralized; they’ll serve millions of dis-
persed customers. This dispersed pattern of usage calls for a different pattern of production, not
so much in centralized plants as in small ones near the customers. This can often deliver cheaper
hydrogen, because reformers and electrolyzers, which both work well at a small scale, can make
hydrogen delivery simpler or unnecessary: instead, they’ll leverage the existing gas and electric-
ity distribution grids, especially during off-peak periods when (by definition) they have excess
capacity. Driven by the economics of supply and demand, the hydrogen industry will evolve or-
ganically at many scales and for many uses — if it’s not unduly retarded by myths.
Myth #2. Hydrogen is too dangerous, explosive, or “volatile” for common use as a fuel.
The hydrogen industry has an enviable safety record spanning more than a half-century. Any fuel
is hazardous and needs due care, but hydrogen’s hazards are different and generally more tracta-
ble than those of hydrocarbon fuels.34 It’s extremely buoyant — 14.4 times lighter than air (natu-
ral gas is only 1.7 times lighter than air). Hydrogen is four times more diffusive than natural gas
or 12 times more than gasoline fumes, so leaking hydrogen rapidly disperses up and away from
its source.35 If ignited, hydrogen burns rapidly with a nonluminous flame that can’t readily scorch
you at a distance, emitting only one-tenth the radiant heat of a hydrocarbon fire and burning 7%
cooler than gasoline. Although firefighters dislike hydrogen’s clear flame because they need a
viewing device to see it in daylight, victims generally aren’t burned unless they’re actually in the
flame, nor are they choked by smoke.
Hydrogen mixtures in air are hard to explode, requiring a constrained volume of elongated shape.
In high-school chemistry experiments, hydrogen detonates with a “pop” when lit in a test tube,
but if it were in free air rather than a long cylindrical enclosure, it wouldn’t detonate at all. Ex-
plosion requires at least twice as rich a mixture of hydrogen as of natural gas, though hydrogen’s
explosive potential continues to a fourfold higher upper limit. Hydrogen does ignite easily,
needing 14 times less energy than natural gas, but that’s of dubious relevance because even natu-
ral gas can be ignited by a static-electricity spark.36 Unlike natural gas, however, leaking hydro-
gen encountering an ignition source is far likelier to burn than to explode, even inside a building,
because it burns at concentrations far below its lower explosive limit. Ignition also requires a
fourfold higher minimum concentration of hydrogen than of gasoline vapor. In short, in the vast
majority of cases, leaking hydrogen, if lit, will burn but not explode. And in the rare cases where
it might explode, its theoretical explosive power per unit volume of gas is 22 times weaker than
that of gasoline vapor. It is not, as has been claimed, “essentially a liquid or gaseous form of dy-
namite.”37
Lingering perceptions that hydrogen is unusually dangerous are likely to be dispelled by the
kinds of compelling videotaped demonstrations now becoming available, such as a comparison
of a hydrogen fire with a gasoline fire. First, a hydrogen leak was created, assuming a very un-
likely triple failure of redundant protective devices (industry norms for hydrogen leak detection
and safety interlocks are convincingly effective). The tested leak, deliberately caused at the high-
est-pressure location, discharged the entire 1.54-kg hydrogen inventory of the fuel-cell car in
~100 s, but the resulting vertical flame plume raised the car’s interior temperature by at most 1–2
C˚ (0.6–1.1 F°), and its outside temperature nearest the flame by no more than a car experiences
sitting in the sun. The passenger compartment was unharmed. But then in the second test, a 2.5-
fold-lower-energy leak from a 1.6-mm (1/16") hole in a gasoline fuel line gutted the car’s inte-
rior and would have killed anyone trapped inside.40 Because the hydrogen-leak test didn’t dam-
age the car, both tests were conducted successively using the same car.41
Finally, of course, there is no connection whatever between ordinary hydrogen gas, whose
chemical reactions make it useful as a fuel, and the special isotopes whose thermonuclear reac-
tions power hydrogen bombs. A hydrogen bomb can’t be made with ordinary hydrogen, nor can
the conditions that trigger nuclear fusion in a hydrogen bomb occur in a hydrogen accident;
they’re achieved, with difficulty, only by using an atomic bomb.
Myth #3. Making hydrogen uses more energy than it yields, so it’s prohibitively inefficient.
Any conversion from one form of energy to another consumes more useful energy than it yields.
If it could do the opposite, creating energy out of nothing, you could create a perpetual-motion
machine violating the laws of physics. Conversion losses are unavoidable; the issue is whether
they’re worth incurring. If they were intolerable as a matter of principle, as Myth #3 implies,
then we’d have to stop making gasoline from crude oil (~73–91% efficient from wellhead to re-
tail pump42) and electricity from fossil fuel (~29–35% efficient from coal at the power plant to
retail meter). Such conversion losses are thus not specific to producing hydrogen. Hydrogen pro-
duction is typically about 7243 to 8544 percent efficient in natural-gas reformers or ~70–75% effi-
cient in electrolyzers;45 the rest is heat that may also be reusable. (These efficiency figures are all
Crude oil can be more efficiently converted into delivered gasoline than can natural gas into de-
livered hydrogen.12 But that’s a red herring: the difference is far more than offset by the hydro-
gen’s 2–3-fold higher efficiency in running a fuel-cell car than gasoline’s in running an engine-
driven car. Using Japanese round numbers from Toyota, 88% of oil at the wellhead ends up as
gasoline in your tank, and then 16% of that gasoline energy reaches the wheels of your typical
modern car, so the well-to-wheels efficiency is 14%. A gasoline-fueled hybrid-electric car like
the 2002 Toyota Prius nearly doubles the gasoline-to-wheels efficiency from 16% to 30% and
the overall well-to-wheels efficiency from 14% to 26%. But locally reforming natural gas can
deliver 70% of the gas’s wellhead energy into the car’s compressed-hydrogen tank. That “mea-
ger” conversion efficiency is then more than offset by an advanced fuel-cell drivesystem’s supe-
rior 60% efficiency in converting that hydrogen energy into traction, for an overall well-to-
wheels efficiency of 42%. That’s three times higher than the normal gasoline-engine car’s, or 1.5
times higher than the gasoline-hybrid-electric car’s.47 This helps explain why most automakers
see today’s gasoline-hybrid cars as a stepping-stone to their ultimate goal — direct-hydrogen
fuel-cell cars.
In competitive electricity markets, it may even make good economic sense to use hydrogen as an
electricity storage medium. True, the overall round-trip efficiency of using electricity to split
water, making hydrogen, storing it, and then converting it back into electricity in a fuel cell is
relatively low at about 45% (after 25% electrolyzer losses and 40% fuel-cell losses) plus any by-
product heat recaptured from both units for space-conditioning or water heating. But this can still
be worthwhile because it uses power from an efficient baseload plant (perhaps even a combined-
cycle plant converting 50–60% of its fuel to electricity) to displace a very inefficient peaking
power plant (a simple-cycle gas turbine or engine-generator, often only 15–20% efficient).
This peak-shaving value is reflected in the marketplace. When the cost of peak power for the top
50–150 hours a year is $600–900/MWh, typically 30–40 times the cost of baseload power (~$20/
MWh), the economics of storage become quite interesting. Distributed generation provides not
only energy and peak capacity, but also ancillary services and deferral of grid upgrades. Hydro-
gen storage can also save power-plant fuel by permitting more flexible operation of the utility
system with fuller utilization of intermittent sources like wind. Once all the distributed benefits
are accounted for, using hydrogen for peak storage may be worthwhile, particularly in cities with
transmission constraints (such as Los Angeles, San Francisco, Chicago, New York City, and
Long Island). Such applications may be able to justify capital costs upwards of $4,000/kW. An-
other attractive use of large-scale hydrogen storage would be in places like New Zealand or Bra-
zil, whose hydroelectric systems have too little storage (12 weeks in NZ) to provide resilience
against drought — but whose snowmelt or rainy seasons provide cheap surplus hydropower that
could be stored as hydrogen, even in old gas-fields.
Myth #4. Delivering hydrogen to users would consume most of the energy it contains.
Two Swiss scientists recently analyzed the energy needed to compress or liquefy, store, pipeline,
and truck hydrogen.5 Although one can quibble with details, their net-energy figures are basically
correct — but not their widely quoted conclusion that because hydrogen is so light, “its physical
properties are incompatible with the requirements of the energy market. Production, packaging,
storage, transfer and delivery of the gas…are so energy consuming that alternatives should be
considered.” In fact, their paper simply catalogues certain hydrogen processes that most in the
industry have already rejected, except in special niche markets, because they’re too costly, in-
cluding: pipelines many thousands of kilometers long, liquid-hydrogen systems49 (except for
rockets and aircraft50), and delivery in steel trucks weighing more than 100 times as much as the
hydrogen carried. This argument serves the business interests of its publisher, the Methanol In-
stitute, which promotes methanol over hydrogen, but it does not present a balanced view of how
the hydrogen industry is actually evolving.
The Swiss authors focus almost exclusively on the costliest production method — electrolysis.
They admit that reforming fossil fuel is much cheaper, but they reject it because, they claim, it
releases more CO2 than simply burning the original hydrocarbon. This claim reflects the com-
mon error of overlooking the high efficiency of the last link in the chain — the fuel cell. For ex-
ample, even under conservative assumptions about car design, a good reformer making hydrogen
for a fuel-cell car releases about 40%12 to 67+% less CO2 per mile than burning hydrocarbon fuel
in an otherwise identical gasoline-engine car. That’s because the fuel cell is 2–3 times more effi-
cient than the internal-combustion engine, and methane has twice the hydrogen/carbon ratio of
gasoline.51 (It’s possible, with some difficulty, to reach contrary conclusions by making suffi-
ciently peculiar design assumptions, and some U.S. studies have done so, but we should be com-
paring good designs, not bad ones.) Or consider fuel cells in buildings: a fuel cell fueled by a
miniature natural-gas reformer will convert gas to delivered electricity more efficiently than a
microturbine or a classical gas-fired power plant, and comparably to an engine generator or a
combined-cycle power plant. It also offers highly efficient and convenient cogeneration opportu-
nities (i.e., reusing otherwise wasted heat) that the offsite power plants do not.
The Swiss authors’ third distortion is to analyze only centralized ways to make hydrogen, re-
quiring costly and energy-intensive delivery to customers — the source of most of their criti-
cisms. Partly for that very reason, industry strategists, and the profitable hydrogen transition
strategy published by RMI52 (see sidebar), instead suggest — at least for the next couple of dec-
ades — decentralized production at or near the customer, using natural gas and electricity that,
unlike hydrogen, are already being distributed to most customers. Decentralized natural-gas re-
formers would normally pay a higher price for natural than the big industrial reformers that now
produce almost all industrial hydrogen53, yet the small reformers can usually deliver hydrogen
In the long run, if central hydrogen production does make sense, mainly to simplify carbon se-
questration and thus protect the climate,57 this would generally be done not thousands of kilome-
ters away,58 but near cities — for example, at existing oil refineries, which could turn into mer-
chant hydrogen plants.59 If it proved necessary to pipe the separated CO2 to a remote site for dis-
posal, that’s OK: even over very long distances, it’s much cheaper to pipe the CO2 than the hy-
drogen. Moreover, where the output of a central-electric generator can produce competitive hy-
drogen, it’ll typically cost far less to ship the electricity through existing offpeak transmission
capacity than to make the hydrogen at the big power plant and then pipeline it to customers.
Myth #5. Hydrogen can’t be distributed in existing pipelines, requiring costly new ones.
As for natural-gas distribution pipes, many older systems are already largely or wholly hydro-
gen-compatible because they were originally built for the “town gas” (synthetic coal-gas that’s
~50–60% hydrogen by volume) that used to be piped into homes in many of the world’s major
cities, and still is in parts of China and South Africa. However, the burner-tips, meters, and other
minor components could require retrofit.64 Combustion appliances, unlike fuel cells, may not run
much more efficiently with hydrogen than with natural gas, so they may deliver less service per
unit of flow; this emphasizes the importance of using hydrogen where it offers a comparative
advantage — as economics would also dictate.
Myth #6. We don’t have practical ways to run cars on gaseous hydrogen, so cars must
continue to use liquid fuels.
Turning wheels with electric motors has well-known advantages of torque, ruggedness, reliabil-
ity, simplicity, controllability, quietness, and low cost. Heavy and costly batteries have limited
battery-powered electric cars to small niche markets, although the miniature lithium batteries
now used in cellphones are severalfold better than the batteries used in electric cars. But Califor-
nia regulators’ initial focus on battery cars had a huge societal value because it greatly advanced
electric drivesystems. The only question is where to get the electricity. Hybrid-electric cars now
on the market from Honda and Toyota, and soon from virtually all automakers, make the elec-
tricity with onboard engine-generators, or recover it from braking. These “hybrid-electric” de-
signs provide all the advantages of electric propulsion without the disadvantages of batteries.
Still better will be fuel cells — the most efficient (~50–70% from hydrogen to direct-current
electricity), clean, and reliable known way to make electricity from fuel. Nearly all significant
automakers now have major fuel-cell car development programs.
Remember the high-school chemistry experiment of electrolysis — splitting water with an elec-
tric current and making hydrogen and oxygen bubble out of the test-tube? Fuel cells reverse this
process by chemically recombining hydrogen and oxygen on a special membrane, at tempera-
tures as low as 160–190˚F (much higher in some types). This electrochemical reaction, with no
combustion, produces electricity, pure hot water suitable for a coffee machine in the dashboard,
byproduct heat suitable for heating or cooling the vehicle, and nothing else. Invented in 1839,
In the past decade, breakthroughs in materials and manufacturing engineering have reduced the
need for precious-metal catalysts (especially when using pure hydrogen) by more than 20-fold,
68
and have raised the power density and cut the cost of the most common type of fuel cell69 by
10-fold. 70 Continuing advances in both the fuel-cell “stack” and the other components in the fuel-
cell system now make it realistic to expect fuel cells to start competing with grid electricity in
general use (i.e., at about $500–800/kW if no distributed benefits are counted71) within this dec-
ade, and even with internal-combustion engines by around 2010 in carefully integrated vehicle
designs needing ~$100–300/kW.72
In the next few years, more durable membranes and manufacturable designs are widely expected
to permit rapidly expanding mass production of fuel cells for both vehicles and buildings. Once
those innovation triggers have occurred, then as for most other manufactured goods, real cost
should fall by ~20–30%73 for each doubling of cumulative production until limited by the cost of
the basic materials. In very high volumes, the projected production cost of a low-temperature
fuel-cell stack can ultimately reach on the order of $30–60/kW, not far from the ~$20/kW cost of
generator-equipped internal-combustion engines, which have been refined for more than a cen-
tury and are produced in enormous volumes.74 RMI’s integrated transition strategy (sidebar,
Myth #4) is indifferent to whether fuel cells first become durable, as buildings need, or cheap, as
vehicles need: if they become durable first, enough can be made for buildings — which use two-
thirds of U.S. electricity — to make them cheap enough for vehicles, while if they first become
cheap enough for vehicles, they can also be used in buildings and renovated or replaced as
needed. Either way, each market accelerates the other by building production volume, cutting
cost, and creating profitable linkages.
Fuel-cell testing for vehicles is well advanced. As of mid-2003, manufacturers have tens of fuel-
cell buses and upwards of 100 fuel-cell cars on the road: an authoritative German compilation75
lists 156 kinds of fuel-cell concept cars and 68 demonstration hydrogen filling stations. Honda
and Toyota are leasing small numbers of fuel-cell cars in California; six other automakers plan to
follow suit during 2003–05 and at least ten more by 2010. Many kinds of military vehicles for
land and sea are testing fuel cells, long used in submarines. So are some heavy trucks, which
spend up to half their engine runtime idling because they have no auxiliary power unit (the corre-
sponding figure for Abrams tanks exceeds 60–80%). Fedex and UPS reportedly plan to introduce
fuel-cell trucks by 2008. Many applications are being pursued for scooters, recreational vehicles,
boats, and even large ships. All these developments will learn from each other. Collectively they
will increase fuel-cell production volume and hence reduce cost. A Deutsche Shell director pre-
dicted in 2000 that half of all new cars and a fifth of the car fleet will run on hydrogen by 2010,
while the German Transport Minister forecast 10% of new German cars.
Some automakers formerly assumed that they must extract hydrogen from gasoline (or methanol)
aboard cars, using portable reformers, for either or both of two reasons:
As noted in Myths #5, 9, and 10, both of these problems have now been solved, so few automak-
ers still favor onboard gasoline reformers. That’s good, because those reformers are very difficult
and problematic (e.g., in their startup times), and would cut gasoline-tank-to-wheels efficiency to
or below that of a good gasoline-engine car. Since almost all automakers now agree that reform-
ers should be at or near the filling station, not aboard the car, there’s no longer any reason to re-
form gasoline: natural gas is much cheaper, and is easier to reform. Hydrogen will thus displace
gasoline altogether, saving the energy, money, and hydrogen now used to make it (Myth #11).
Similar arguments apply to methanol. This hydrogen-rich liquid, typically made from natural
gas, is easier to distribute, restore, and reform than gasoline, and can be used directly in some
kinds of fuel cells that could be attractive for household appliances and tools, or for such port-
able electronics as computers, cellphones, hearing aids, or individual military equipment. How-
ever, methanol is less attractive than direct hydrogen as a vehicular fuel, because it has a higher
lifecycle cost,76 higher carbon releases, and considerable toxicity (2–7% methanol in a liter of
water, with which it mixes readily, is too little to taste, but could be lethal if swallowed). The
transportation industry already faces heavy costs from having invested to switch to the methanol-
derived but far less toxic gasoline oxygenate additive MTBE (methyl tert-butyl ether), only to
find it banned after it leaked from underground storage tanks into groundwater.77 This unhappy
experience makes the industry understandably wary of methanol, and several major oil compa-
nies have made clear that they reject methanol deployment. Except for the kinds of special uses
mentioned above, or countries with poor or very costly natural-gas distribution, it’s also unclear
why one would wish to turn natural gas into methanol, move it to another site, and there reform it
into hydrogen, rather than just transporting the natural gas in the existing gas grid to the point of
hydrogen use and reforming it there. In gas-short countries, many other liquid feedstocks, such
as medium and heavy oils, dimethyl ether, LPG, and vegetable oils will also compete with
methanol as distributed reformer feedstocks.
Myth #7. We lack a safe and affordable way to store hydrogen in cars.
This problem was solved several years ago. Such firms as Quantum (partly owned by GM) and
Dynetek now sell filament-wound carbon-fiber tanks lined with an aluminized polyester bladder
instead of the traditional solid metal liner (cutting weight by half and materials cost by a third).
Such carbon tanks have ~9–13 times the performance of an aluminum or steel tank, but can’t
corrode and are extremely rugged and safe, unscathed by crashes that flatten steel cars and shred
gasoline tanks. The car isn’t driving around with highly pressurized hydrogen pipes, either, be-
cause the hydrogen is throttled to the fuel cell’s low pressure before it leaves the tank. Such aero-
space-style tanks holding up to 700 bar (~10,000 psi) and proven over 1,655 bar (~24,000 psi)
have been tested by GM and others in fuel-cell cars and are legally approved in Germany; U.S.
Such carbon-fiber tanks could be mass-produced for just a few hundred dollars, and at the cur-
rently U.S.-approved safety factor of 2.25, they can hold ~11–12% hydrogen by mass. A 350-bar
hydrogen tank (2.7 MJ/L at LHV and 300 K) is nearly ten times the size of a gasoline tank for
the same energy content. However, the 2–3-fold efficiency advantage of the fuel cell, i.e., less
energy expended per mile, compared to a gasoline engine reduces this enlargement to ~3.2–4.8-
fold — even less when you include the saved size and weight of other parts of the car that are no
longer needed, such as the catalytic converter.
That factor shrinks still further — making the hydrogen tank only modestly bigger than a same-
range gasoline tank in today’s cars, but far lighter — when cars are designed to use two-thirds
less power to move them, hence two-thirds less stored hydrogen for the same driving range. This
requires cars with much lower aerodynamic drag, rolling resistance (energy losses to heating
tires and road), and especially weight. Their weight can be halved, yet they can maintain superior
crash safety even when hitting a heavy metal car, by making them from carbon-fiber composites.
These space-age materials can absorb up to five times as much crash energy per pound as steel,
and can crush more smoothly, using the crush length up to twice as effectively.
Carbon-fiber racecars are expensively handmade, but a new patent-pending manufacturing proc-
ess79 is expected to be affordable at automotive volumes (~10,000–100,000 cars per year). In
2000, its developer, Hypercar, Inc. — a technology development firm spun off from Rocky
Mountain Institute in 1999 to commercialize lightweight and efficient vehicle technology — de-
signed an ultralight concept car called the Revolution (see sidebar) to illustrate the implications
of ultralight autobodies and highly integrated design. This conceptual midsize SUV would have
the size, safety, comfort, and performance of a Lexus RX300, yet with five times its efficiency —
a modeled average of 99 mpg equivalent.80 Detailed production cost analysis suggests that such a
concept car could be manufactured at mid-volume (~50,000/year) at a cost competitive with
comparable-class vehicles in today’s market.
______________________________________________________________________________
Box 2: An example of a hydrogen-ready concept car
In November 2000, Hypercar, Inc.
(www.hypercar.com) completed the virtual
design and physical full-scale show-car con-
struction (at left, with illustrative crossover
design and “active outdoor lifestyle” styling) of
its first concept car, the Revolution, representing
one of many possible variants of a flexible,
scalable platform. It is also production-costed
and manufacturable. Developed on schedule
and within budget, it met all its ambitious
performance targets (below), which no estab-
lished automaker has yet met in a single vehicle.
The development effort was far faster and
cheaper than industry norms. The design team
also made encouraging progress in developing
the vehicle’s systems and subsystems, advancing
solutions for composite-body manufacturing,
and incorporating cost-effective proprietary
manufacturing techniques to be validated in
work currently underway.
Such quintupled efficiency — in round numbers, threefold higher efficiency from the lighter and
lower-drag platform, twofold from the fuel cell — should be broadly applicable to any other size
and style of light vehicle. The two-thirds-smaller fuel cell would then become small enough to
afford even at early prices — years earlier than would be possible with heavy, high-drag cars.
Moreover, the two-thirds-smaller fuel tanks would become small enough to “package” (fit) con-
veniently, leaving plenty of room for people and cargo.
The Revolution would have a driving range of 330 miles with 137-L, 350-bar tanks holding 3.4
kg (7.5 lb) of hydrogen. That could be extended beyond 500 miles with the newer 700-bar tanks,
which weigh and cost more and are slightly larger (because of their thicker walls) but hold two-
thirds more hydrogen and are now assumed by many automakers. For comparison, 137 L (36
USgal) of gasoline would take an 18-mpg SUV like a 2000 Ford Explorer 650 miles, but not on
one filling. Thus, depending on pressure, the 99-mpg Revolution’s 5.5-fold efficiency advantage
over the Explorer makes its compressed hydrogen fuel only ~1.2–1.9 times bulkier than gasoline
for the same range, not 9.6 times (the energy-content ratio of gasoline to 350-bar hydrogen). The
smaller, easier-to-package fuel-cell powertrain further narrows that difference, so the Revolu-
tion’s interior spaciousness is comparable to the Explorer’s even though the Revolution is 10%
lower and 6% shorter. This illustrates how superefficient, clean-sheet, whole-vehicle design can
overcome the supposedly unsolved problem of onboard hydrogen storage. The claim here is only
of an illustration, an existence proof: there may be other equally elegant design solutions. But the
point is that though inefficient cars have hydrogen storage problems, efficient cars needn’t.
Research continues on other storage methods — liquid hydrogen at –253°C or –423°F (favored
by BMW81 but costly, complex, and rather energy-intensive), heavy- or light-metal hydrides
(low- or ambient-pressure but costly, heavy, requiring heat for release, and storing only a few
percent hydrogen by mass), metal-organic frameworks,82 even carbon nanotubes (which can hold
a lot of hydrogen but don’t readily let it go). So far, none comes close to beating the commercial-
ly available high-pressure tanks in weight or cost, and there is no volume or safety reason not to
use those tanks in efficient cars. Further R&D on hydrogen storage is thus desirable but not es-
sential.
Automotive high-pressure hydrogen tanks are filled in a few minutes via a small-diameter but
rugged hose with a securely locking metal fitting, similar to those used to refuel with compressed
natural gas. The hydrogen gas simply flows from a prefilled storage tank that’s typically at about
one-fifth higher pressure, like the self-contained Air Products Hydrogen Fueler with its 427-bar
storage. Hydrogen refueling may become automated: it’s no more suitable than is gasoline for
dispensing by careless people, although even in the event of a mishap, the consequences would
probably be less grave than with gasoline (Myth #2).
Myth #8. Compressing hydrogen for automotive storage tanks takes too much energy.
Compressing hydrogen to fill tanks to 350 bar using standard 93–94%-efficient intercooled tech-
nology takes electricity equivalent to about 9–12% of the hydrogen’s energy content. However,
most of that compression energy can be recovered aboard the car by reducing the pressure back
to what the fuel cell needs (~0.3–3 bar) not with a throttling valve but with a miniature turboex-
Onsite miniature84 reformers made in quantities of hundreds, each supporting a few hundred fuel-
cell vehicles85 and using natural gas priced at a robust $5.69/GJ or $6/MBTU,86 could deliver hy-
drogen into cars at ~$2.50/kg; with $3.79/GJ ($4/MBTU) natural gas, at ~$2.14/kg. (Of that, the
cost of compression to ~500 bar, 50 kg of onsite storage, and dispensing into the car totals about
$0.32/kg. All equipment is assumed to earn a 10%/y real aftertax return.)87 For comparison, in
cost per km for rather conventional fuel-cell cars nominally 2.2× as efficient as gasoline cars
(both at LHV), U.S. untaxed wholesale gasoline at $0.90/U.S. gallon or $0.24/L is equivalent to
$2/kgH2; U.S. taxed retail gasoline at $1.35/U.S. gallon ($0.36/L), to $3/kg H2.88 (U.S. retail
gasoline is cheaper than bottled water — which helps explain why many U.S. filling stations
make more money selling soft drinks than gasoline.) Making more reformers would cut costs
further. Relative prices differ in other countries — Europe and Japan, for example, typically pay
more for natural gas— but they also tend to pay even higher gasoline prices, often equivalent to
$8/kg H2 or more so miniature reformers should retain their advantage abroad.
That advantage comes largely from avoiding the cost of hydrogen delivery, because miniature
reformers use the natural-gas distribution system that’s already been built. BP, Ford, and Ac-
centure, 89 among others, have confirmed that hydrogen from natural gas can compete with gaso-
line in cost per km. This comparison is robust: hydrogen made in 20- or 180-nominal-car-per-day
natural-gas reformers would have remained competitive with retail and wholesale gasoline, re-
spectively, at the actual average prices of U.S. natural gas and gasoline for the past 22 years.90
Splitting water with electricity can seldom make cheaper hydrogen than reforming natural gas
unless the electricity is heavily subsidized, bought at very low offpeak prices (usually well under
2¢/kWh)91, or at very small scale (a neighborhood with a few dozen cars); that’s why only a few
percent of the world’s hydrogen is now made electrolytically, powered mainly by old hydroelec-
tric dams.92 However, small-scale electrolyzers — now entering the market for demonstration
and remote-location use — avoid the cost of hydrogen distribution from remote central plants,
and in some circumstances they may compete with the decentralized gas reformers that offer the
same advantage. Specifically, mass-produced (~1 million units) miniature electrolyzers, each
serving a few to a few dozen cars, could produce hydrogen competitive with taxed U.S. gasoline
even using 3¢/kWh offpeak electricity, so household-to-neighborhood scale could become a suc-
cessful electrolysis niche market if enough units are made.93 Yet such units, even initially using
fossil-fueled electricity that might increase net carbon output per car (depending on the power
Some analysts state, as does the Department of Energy’s hydrogen program plan,12 that “Fuel
cells require hydrogen that is 99.999% pure, which today costs about $15 to $22 per kilogram”
based on an assumed cost of about $450,000 per 60 kg/d reformer (enough for about 12 rather
inefficient cars) — a cost DOE wanted to halve by 2010. However, in mid-2003, DOE drafted a
new and realistic goal of delivering $1.50/kg hydrogen to cars by 2010.94 This dramatic decrease
is due partly to the realization that five-nines purity isn’t necessary — even though technological
innovators are increasingly reporting encouraging results with solid membranes (such as palla-
dium-copper alloys) that can yield five-nines hydrogen at acceptable cost. A 112 kg/d (2,000
scf/h) reformer from H2Gen, serving 20 garden-variety fuel-cell vehicles per day with perfectly
adequate 99.99%-pure hydrogen at 476 bar, is expected at modest production volumes to com-
pete with wholesale gasoline, i.e., at a hydrogen price roughly one-tenth of DOE’s original tar-
get. Such reformers are expected to enter the market from several manufacturers long before
2010. Some authoritative sources consider 99.9% purity adequate for typical automotive fuel
cells;95 Japanese automakers typically design to their national industrial standard of only ~98.5%
purity.
Myth #10. We’d need to lace the country with ubiquitous hydrogen production, distribution,
and delivery infrastructure before we could sell the first hydrogen car, but that’s imprac-
tical and far too costly — probably hundreds of billions of dollars.
RMI’s hydrogen strategy,52 summarized in an earlier sidebar (Myth #4), shows how to build up
hydrogen supply and demand profitably at each step, starting now, by interlinking deployment of
fuel cells in buildings and in hydrogen-ready vehicles, so each helps the other happen faster.
Such linkage, introduced by RMI in 1999, was adopted in November 2001 by the U.S. Depart-
ment of Energy12 and is part of the business strategy of GM,96 Shell,97 and other major auto and
energy companies.
Extensive studies by the main analyst for Ford Motor Company’s hydrogen program indicates
that a hydrogen fueling infrastructure based on miniature natural-gas reformers, including sus-
taining their natural-gas supply, will cost about $600 per car less than sustaining the existing
gasoline fueling infrastructure, thus saving about $1 trillion worldwide over the next 40 years.53
Thus, far from being too costly, a switch to hydrogen could well cost less than what we already
do — largely because the needed investments tend to be smaller for gas than for oil, by an
amount sufficient to pay for reforming natural gas into hydrogen and delivering the hydrogen
into cars. In absolute terms, a filling-station-sized natural-gas reformer, compressor, and delivery
equipment would cost about $2–4 billion to install in an adequate fraction (10–20%) of the na-
tion’s nearly 180,000 filling stations.98 Even a small (20 car/day) reformer would cost only about
a tenth as much as a modern gasoline filling station costs (about $1.5 million,3 not counting the
roughly threefold larger investment to produce and deliver the gasoline to its tanks — a far more
capital-intensive enterprise than producing and delivering natural gas to a reformer at the same
While further analysis of these comparative investments is needed, it’s encouraging that the head
of Accenture’s $2-billion-a-year global energy practice (since promoted) estimates a $280 billion
U.S. investment in hydrogen fueling infrastructure, a surprisingly large $130 billion of it to con-
vert filling stations — 26 times the estimate by Shell’s former head of Group Planning99 — plus
$70 billion for natural-gas and ethanol supplies, $40 billion to move fuel to filling stations, and
$40 billion for new pipelines. Her $280 billion estimate seems high. Yet she believes it would be
“in line with what major oil companies already spend on petroleum exploration and production”
— and could displace $200 billion in annual oil imports by 2020.100
Myth #11. Manufacturing enough hydrogen to run a car fleet is a gargantuan and hugely
expensive task.
If all current global production of industrial hydrogen, about 50 million T/y, were fed into light
vehicles about as efficient as the Revolution fuel-cell concept car described above (i.e., quintu-
pled-efficiency or “5η” for short), it would displace two-thirds of today’s entire worldwide con-
sumption of gasoline.101 An estimated one-third of that hydrogen production is currently being
used to make gasoline and diesel fuel;102 the rest makes non-petroleum products. In the U.S.,
about half of all hydrogen is used by refineries, but highway-fuel consumption is also higher, so
diverting all refinery consumption of hydrogen (~7 MT/y) into direct fuel for 5η light and 2η
heavy vehicles would displace one-fourth of the gasoline (twice as much as comes from Persian
Gulf oil), or one-seventh of the gasoline plus diesel fuel, used by all U.S. highway vehicles.103
While making enough hydrogen to displace all U.S. highway vehicles’ fuel is a significant un-
dertaking, it looks reasonable in size and cost: it’s comparable to the world’s current total hydro-
gen production of ~50 MT/y, and just North and South Dakota have enough cost-effective wind-
power potential to make that much hydrogen.104 (Byproduct oxygen could valuably gasify dry
biomass or coal to make even more hydrogen.) Nor is the conventional hydrogen industry
standing still: world hydrogen production is growing about 6% per year (particularly to help
desulfurize diesel fuel), corresponding to a doubling every 11 years. Having fuel-cell car usage
grow fast enough to outrun a hydrogen industry that’s capable of such massive, but routine and
invisible, expansion is a problem we’d love to have.
Myth #12. Since renewables are currently too costly, hydrogen would have to be made from
fossil fuels or nuclear energy.
Hydrogen would indeed be made in the short run, as it is now, mainly from natural gas (particu-
larly in North America), but when the hydrogen is used in fuel cells, total carbon emissions per
mile would be cut by about half using ordinary cars, or by ~80+% using 5η vehicles.105 That’s a
lot better than likely carbon reductions without hydrogen, and is a sound interim step while zero-
carbon ways to produce hydrogen are being deployed.
Natural-gas prices would have to rise astronomically before electricity priced at just the running
costs of existing nuclear power plants, plus electricity or hydrogen delivery costs, could compete
with gas reformers sited at or near filling stations.106 If this did occur, it might be a constructive
Long-term, large-scale choices for making hydrogen are not limited to costly renewables-or-
nuclear electrolysis vs. carbon-releasing natural-gas reforming:
• Reformers108 can use a wide range of biomass feedstocks which, if sustainably grown,
don’t harm the climate. Some can actually help the climate, such as reforming methane
from anerobic digestion of manure that would otherwise release methane (a greenhouse
gas 23 times more potent per molecule than CO2 over a 100-year horizon) into the air. In
some cases, it may also make sense to gasify municipal wastes to make hydrogen.
• With biomass, waste, and fossil-fuel feedstocks, reformers can also be coupled with car-
bon sequestration. Since 1996, Statoil ASA, Norway’s state oil company, has been re-
forming natural gas from a North Sea field and reinjecting 1 MT/y of separated CO2 into
the reservoir (also a common method of enhanced oil recovery). This promising method
can yield three profit streams — from hydrogen, enhanced hydrocarbon recovery, and
carbon sequestration. However, it is centralized and hence incurs hydrogen delivery
costs.
• Another Norwegian firm, Aker Kværner Group ASA, is scaling up a plasma-arc process
that separates hydrocarbons (typically natural gas or oil) into 48 mass percent hydrogen,
10% steam, and 40% carbon black, which can be used (for tiremaking, metallurgy, etc.)
or simply stored in an inert or reducing atmosphere. No CO2 is released, so this process,
operating since 1992, can also be a backstop in case basic problems emerge with carbon
sequestration.109
• Some experimental methods of sequestration, notably those that capture the carbon in
blocks of artificial rock without requiring extra energy (the reaction releases rather than
requires heat), may be capable of scaling down to serve decentralized reformers.
Nor is it generally true that electricity from renewable sources is uncompetitively costly, leaving
no climate-safe source to run electrolysis except nuclear power. Florida Power & Light now sells
the output of its 100-MW windfarms for 2.5¢/kWh (net of the 1.7¢/kWh production tax credit
meant to offset the larger subsidies to fossil and nuclear power). That unsubsidized ~4.2¢/kWh
busbar price is the cheapest new bulk power source known, emits no carbon, and is driving the
30–40%/y expansion of global windpower, which exceeded 31 billion watts by the end of 2002.
Windpower has lately added more than twice the global capacity each year that nuclear power
did in the 1990s.110 Europe plans to get 22% of its electricity from renewable sources by 2010
— 2.4 times the 2002 U.S. fraction or the official 2010 U.S. forecast — and is investing 2.12
a. A hydrogen economy would require the construction of many new coal and nuclear power
stations (or perhaps nuclear fusion stations).
This fear felt by many environmentalists is unfounded. New nuclear plants would deliver elec-
tricity at about 2–3 times the cost of new windpower,111 5–10 times that of new gas-fired cogen-
eration in industry and buildings, and 10–30+ times that of efficient use, so they won’t be built,
with or without a hydrogen transition. Any hydrogen produced from their electricity would be
4–7 times costlier in energy content, or about 2–3 times costlier per mile, than oil at the highest
prices ever observed.112 Further increasing nuclear power’s cost disadvantage, often by as much
as tenfold, are 207 “distributed benefits” of decentralized resources recently described by RMI.113
Under no conceivable circumstances would a market economy choose nuclear power. That’s
why it’s dying of an incurable attack of market forces throughout the world, and why, reportedly,
not a single investor showed up for its advocates’ “nuclear revival” conference in Washington,
DC on 11 September 2002. Proposed new types of nuclear fission (or fusion) plants would not
change this conclusion, and would have other drawbacks, notably speeding the spread of nu-
clear-bomb-making materials. It is possible in principle to use nuclear heat rather than nuclear
electricity to crack water to make hydrogen,114 but this too can’t compete with several other
sources of high-temperature heat, including industrial byproduct heat and solar concentrators.
And nuclear power is so slow to build that by the time new plants were licensed and built, re-
newable sources and other distributed resources would have completed their already rapid sweep
of the market.
In short, electricity from today’s cheapest sources is rarely competitive with natural gas for pro-
ducing hydrogen. Nuclear electricity from existing plants, counting just their bare operating cost,
is barely competitive with today’s new gas-fired cogenerated electricity or windpower — even
less so when hydrogen or electricity delivery costs are included — and doesn’t even compete
consistently with the operating cost of existing traditional fossil-fueled steam plants.115 New nu-
clear plants are forever uneconomic; that’s why the 2003 Senate energy bill includes $15 billion
in new Federal loan guarantees (at an implied cost so high that private investment in the other
half is highly implausible). Nor is the needed amount of hydrogen production particularly large
(Myth #11). Finally, fuel cells make electricity that would become yet another devastating com-
petitor to new and even existing nuclear plants. The hydrogen future, long advocated by nuclear
enthusiasts as the savior of their failed technology, is just another nail in its coffin.116
b. A hydrogen economy would retard the adoption of renewable energy by competing for R&D
budget, being misspent, and taking away future markets.
This concern is partly prompted by allegations — probably unprovable either way — that the
Department of Energy may have diverted funds that Congress voted for renewable energy R&D
into fossil-fuel hydrogen programs. Such diversion would be illegal and unwise. A similar real-
Hydrogen funds can be misspent. DOE has long been setting hydrogen goals that were already
met; some encouraging signs are emerging that it may be starting to break this habit. Freedom-
CAR could be a triumph or a bust for U.S. automaking, depending on how well it’s executed;
one can’t yet tell which it’ll be.118 But again, the remedy for poor program design is to improve
it, not to reject the whole concept. Happily, most of the investment in hydrogen, done right, will
come from profit-seeking private-sector investments, not from tax dollars.
Hydrogen particularly favors clean, safe power sources over dirty, dangerous, and proliferative
ones by creating two major new advantages for renewable sources of electricity:
• The 2–3-fold more efficient use of hydrogen than gasoline in the car means that at the
wheels, the equivalent of $1.25/gallon ($0.33/liter) U.S. retail gasoline is electricity at
about 9–14¢/kWh with a proton attached to each electron. Since electricity sells for only
about 2¢/kWh in competitive U.S. wholesale markets, the proprietor of, say, a hydroe-
lectric dam or windfarm can get a 4–8-fold better price (even more in higher-priced
countries) by turning a raw commodity (electrons) into a value-added product (hydrogen)
through electrolysis. Splitting the water and delivering the hydrogen will typically add far
less cost than that higher price earns.
• A modest and cheap amount of local hydrogen storage can turn an intermittent source of
electricity, such as wind or solar, into a firm dispatchable source that’s far more valuable.
(ICI in Britain has long stored very large amounts of hydrogen in underground caverns at
up to 50-bar pressure without difficulty; Gaz de France has stored 50%-hydrogen town
gas in large aquifers, as has the city of Kiel, Germany; and solution-mined salt caverns
are known to be hydrogen-tight.119 Helium storage in Texas rock strata beneath an aquifer
offers another encouraging precedent.120) One of the world’s leading experts on renewable
energy, Professor Bent Sørensen of Roskilde University, notes that all of Denmark’s en-
ergy — not just all of its electricity, a fifth of which now comes from wind — could be
provided by windpower when lightly buffered with just two weeks of hydrogen storage,
less than is now available in existing salt caverns. In larger countries, a considerable
amount of hydrogen can be stored in the pipelines themselves (“linepack”).
Both these features are especially valuable for renewables because of their flexible siting. Re-
newables also offer many other “distributed benefits” that can often increase their economic
value by about tenfold.121 But wouldn’t nuclear power enjoy at least the first of the bulleted ad-
vantages? Yes. However, distributed alternatives and windpower cost even less than new nuclear
plants, so they’d still win by a large margin — unless reforming natural gas beats them all.
Thus Assistant Secretary of Energy David Garman got it right when he wrote: “Over the long
term, we want to make our hydrogen from sustainable, renewable energy, and that is where the
majority of our hydrogen production R&D is focused.122 But if environmental advocates persist
c. Switching from gasoline to hydrogen will worsen climate change unless we do a large amount
of successful carbon sequestration.
This might occur if we were naïve enough to burn coal in central power plants to make electric-
ity to split water.124 However, as explained above, that way of making hydrogen is clearly uneco-
nomic even in existing coal-fired plants, which generally cost about 2–4¢/kWh to operate, plus
an average of nearly 3¢/kWh to deliver the electricity to customers, or more to deliver centrally
electrolyzed hydrogen. Reforming natural gas is far cheaper at any plausible price.
As mentioned in Myth #4, decentralized reformers do release CO2, but no more than half as
much as now comes out your tailpipe, and plausibly 3–6 times less depending on how efficient
the fuel-cell car is (assuming the same hydrogen content in the feed material). Until we internal-
ize carbon costs, or natural gas becomes far costlier, or (most likely) renewable electricity gets
cheaper, that’s a good first step. Once any of those things happens, renewable electricity, or
wellhead-reformed natural gas or oil with carbon sequestration, will gradually take over, and the
hydrogen system’s carbon emissions will head towards zero. This conclusion is clearest with, but
does not depend on, a transition to renewable sources. As Princeton University’s Carbon Mitiga-
tion Initiative has found, “if H2 vehicles can be made competitive when the H2 is produced from
fossil fuels with CO2 vented [as this paper argues], those vehicles would probably also be com-
petitive with the CO2 captured and stored.”125
d. Making hydrogen from natural gas would quickly deplete our gas reserves.
Natural gas is at least a 200-year global resource, has only about half the carbon content per unit
energy of oil, is far more widely distributed than oil (including major gas reserves in North
However, even without such gas savings, it is not obvious that switching light-vehicle fuel from
oil-derived gasoline to natural-gas-derived hydrogen would increase the net consumption of
natural gas significantly if at all. The sort of integrated hydrogen transition that RMI recom-
mends,52 and GM (among others) assumes, could even decrease net U.S. consumption of natural
gas — by saving more gas in displaced power plants,130 furnaces, and boilers, and in refineries to
make gasoline than is made into hydrogen to displace gasoline. In other words, a well-designed
hydrogen transition may reduce U.S. consumption of oil and natural gas simultaneously.
Conversely, anyone concerned about the views expressed at the June 2003 World Gas Confer-
ence about a U.S. trend toward greater domestic depletion and LNG import dependence should
favor both the hydrogen transition — which would not materially burden gas reserves but could
ultimately save natural gas by shifting hydrogen production to renewable sources or even car-
bon-sequestered coal — and efficient use of natural gas. Savings would emphasize coproduction
of electricity and heat at all scales (U.S. power plants discard byproduct heat equivalent to 1.2×
Japan’s total primary energy use); thermally efficient buildings, hot-water systems, and industrial
processes; and molecularly efficient materials cycles. For natural gas as for oil, the savings avail-
able from systematic thermal integration and end-use efficiency are huge and profitable, and can
be vigorously pursued with or without a hydrogen transition. Two especially effective ways of
saving North American natural gas in the short term would be to shave peak electric loads with
efficiency, load management, and distributed generation131 and to reward gas (and electric) distri-
bution utilities for cutting customers’ bills, not for selling more energy (as 48 states now do).
Myth #13. Incumbent industries (e.g., oil and car companies) actually oppose hydrogen as a
competitive threat, so their hydrogen development efforts are mere window-dressing.
Nearly all significant car and oil companies have vigorous R&D programs to explore hydrogen,
and many have made multi-billion-dollar investments in the hydrogen transition. They don’t do
this for amusement; they’re deadly serious, and expect to make money on it. In general, oil and
gas companies can make more profit in a hydrogen economy than they do now, mainly because:
• hydrogen is a premium energy carrier, fetching a far higher price because it can do more
work;
• it’s generally more profitable and less risky to invest in natural gas than in oil;
• increasingly, hydrogen made from renewable energy sources can reduce or eliminate
price volatility, which is more of a risk and cost than an opportunity to capital-intensive
suppliers, and raises their cost of capital accordingly;
• hydrogen can be made near the customer, avoiding the need for costly and complex dis-
tribution infrastructure without necessarily giving up opportunities to participate in large-
scale aggregated markets for technology, financing, and hydrogen services; and
The hydrogen in hydrocarbons is generally worth more without the carbon than with the carbon:
that is, hydrogen plus “negacarbon” — carbon that Kyoto traders will pay you not to emit — is
typically worth more than hydrocarbon. But surprisingly, this conclusion may not depend on
whether avoided carbon emissions are valued much or at all. For example, gasoline is sold to
U.S. filling stations as a highly competitive commodity at an untaxed wholesale price around
$0.90/USgal, equivalent to $0.24/L, $6.83/GJ (HHV), or $7.39/GJ (LHV). To compete with this
gasoline in cost per mile for a 2η, 3η, or 5η light vehicle, hydrogen (LHV) could bear a deliv-
ered untaxed price at the filling station of about $1.77, $2.66, or $4.43 per kg, respectively. Yet
the actual total cost of producing such hydrogen from $3.79/GJ (HHV) natural gas — com-
pressed, stored, and ready for dispensing into fuel-cell cars — is around $2.1/kg if miniature gas
reformers are produced in reasonable numbers (Myth #9).133 Thus with a fuel-cell car whose plat-
form physics are only somewhat more efficient than in today’s gasoline-engine cars (i.e., 3η
rather than a Hypercar®-level 5η), the potential retail markup of the hydrogen suggests that
making even oil-based hydrocarbons into hydrogen, using existing and very competitive logistics
for delivering liquid fuels to filling stations, might still undercut directly used gasoline because
of hydrogen’s more efficient end-use. In contrast, at a reasonable Kyoto trading price of, say,
$20/TC, carbon emissions avoided by displacing gasoline are worth only ~$0.04/USgal — a few
percent of the gasoline’s retail price. Thus the hydrogen’s efficient conversion to vehicular mo-
tion, not its climate-safety, is its main source of competitive advantage.
In practice, reforming delivered natural gas at the filling station is almost certainly cheaper than
reforming oil-based products there, but the point of this illustration is rather that efficiently used
hydrogen is far more valuable than cheap but inefficiently used gasoline. This suggests that if the
cost of delivering hydrogen from relatively large oil-reforming plants can compete with that of
distributed natural-as reforming, then we should be sending oil to reformers, not refineries.
Some analysts believe that in the next few decades, as methods of storing separated carbon
cheaply and securely are proven, it will be cheaper still to extract hydrogen from coal, which
contains less hydrogen than natural gas and is harder to handle, but is also far cheaper.134 Some
sequestration methods can also profitably reuse depleted oil and gas fields to store CO2, turning
these into an unexpectedly valuable asset for hydrocarbon companies providing sequestration
services to the emerging negacarbon market.
Myth #14. A large-scale hydrogen economy would harm the Earth’s climate, water balance,
or atmospheric chemistry.
Water vapor does strengthen the warming effect of CO2 by around 70%, and its climatic effects
remain uncertain,135 so this issue, like any other, must be carefully evaluated at the start of a pro-
posed major shift in the energy system. Neglect of such prior technology assessment has proven
very costly in the past. Fortunately, a sensibly designed hydrogen transition does not appear to
present serious environmental issues if due attention is given to carbon releases.
The source of the hydrogen matters too. If the hydrogen were made from natural gas, then the
oxygen would already have been in the air and the hydrogen would have come from under-
ground, just like the hydrogen in crude oil. Morever, if the hydrogen were conventionally made
in a steam reformer, then half the hydrogen would have come not from the methane but from the
water; in this case, a 5η vehicle would emit only one-fourth as much new water per mile as its
current gasoline-engine equivalent. And if the hydrogen were made by using electricity to split
water, then all the water would already have been in the hydrologic cycle and would simply be
returning to it. (The Department of Energy helpfully notes that “The hydrogen extracted from a
gallon of water…could drive a hydrogen fuel cell vehicle as far as gasoline vehicles travel today
on a gallon of gasoline.”137)
The Earth’s atmosphere averages about 2.6% water by volume. This 13 trillion metric tons of
water, cycling about every nine days, has very complex effects on climate, but as the following
discussion shows, any net water that a hydrogen economy would add does not appear to be of
concern. Most importantly, the climate benefit of removing light vehicles’ CO2 from the climate
threat vastly outweighs any possible climate effect of 5η vehicles’ or stationary fuel cells’ water
emissions.138 The same holds for water consumption to the extent that the hydrogen comes from
electrolysis; and of course that water is then re-created in the fuel cell.
For further perspective, the global energy system emits about 20 billion metric tons of water per
year, roughly half “new” water from burning the hydrogen in fossil fuels and half existing water
evaporated from power-plant cooling towers.139 This total is equivalent to about 0.0038% of the
Earth’s annual water evaporation, or to roughly 1.7% of the atmosphere’s annual increase in
water vapor as it is warmed, mainly by heat-trapping caused by the CO2 released by burning fos-
sil fuels. (Relative humidity remains constant, so when the atmosphere is heated, absolute hu-
midity rises.) Thus a fuel-cell car whose climate-safe hydrogen source emitted no CO2 would
reduce the water vapor added to the atmosphere by CO2-induced warming by enormously more
than it would directly add even in the worst case.
Regardless of the source of the hydrogen, its combination with oxygen in the fuel cell will not
significantly change the atmosphere’s content of oxygen, which is about 94 times as great as the
amount of oxygen in atmospheric water. Burning fossil fuel combines oxygen with previously
underground fossil carbon to form CO2, of which roughly half is absorbed by the oceans, ulti-
mately forming submarine rocks that remove the oxygen more or less permanently from the at-
mosphere. In contrast, hydrogen derived from fossil hydrocarbons releases less or no net CO2
c. Using hydrogen would dry out the Earth by leaking hydrogen to outer space.
Taking the opposite tack, one imaginative correspondent initially suggested a “fatal flaw in the
hydrogen economy”: a reduction in the planet’s water inventory, because molecular hydrogen
will inevitably be lost to outer space as hydrogen leaks (to an extent that he expects to exceed the
claimed 5–10% loss of natural gas) or is incompletely combusted.140 But this does not seem a re-
alistic concern, because, as that author now accepts:
• Molecular hydrogen is reactive enough that all but about 0.04% of its current additions to
the atmosphere (which total roughly 0.5% of the atmospheric inventory, or a million tons
a year, nearly all from human activities) recombines chemically within the atmosphere,
rather than escaping to outer space.141
• As is routinely done in today’s large hydrogen industry, hydrogen leaks will be kept very
small for both economic and safety reasons — smaller than current natural-gas leaks,
which worldwide are around 1% and falling, but in well-run systems in industrial coun-
tries are around 0.1–0.5%.142 For example, in Germany in the mid-1990s, the natural-gas
system leaked 0.7%, but the hydrogen system leaked only 0.1%:143 precisely because hy-
drogen escapes more easily, the hydrogen industry avoids leak-prone compression and
threaded fittings commonly used for natural gas.
• Switching from today’s fossil-fuel economy to an all-hydrogen economy with a 1% leak-
age rate would release about as much molecular hydrogen as is now released by fossil-
fuel combustion, so as a first approximation, nothing would change.144
• For economic reasons, most hydrogen will long be made from fossil fuel, so all of it (or
half of it if steam-reformed) will come out of the ground, not out of the contemporary
atmosphere.
• Our planet’s water supply is also being continually topped up. Every few seconds, small
comets drizzle a house-sized, ~20-40 ton lump of snow into the upper atmosphere.145 This
mechanism, adding about an inch of water to the Earth’s surface every 20,000 years, is
enough to account for the planetary ocean. It would exceed by at least hundreds of times
any plausible water loss from even a very large and leaky hydrogen economy.146
d. Using hydrogen would harm the ozone layer or the climate by leaking too much water-forming
and chemically reactive molecular hydrogen into the upper atmosphere.
How did the CalTech authors arrive at their assumption of 10–20% hydrogen leakage? They
simply misread both of their references. The first148, which clearly stated that the German hydro-
gen system loses 0.1% of its throughput, also offered as an example that a completely hydrogen-
based global economy leaking 2–3% (and using no direct renewable energy) would emit about as
much hydrogen as the fossil-fuel system emits now. A worst-case example was also presented
that assumed 10% leakage for the sake of argument, although it stated that 2–3% was more
reasonable. The CalTech authors read all this to mean that the paper had “reasonably pro-
jected” a 10% leakage rate. They then claimed that “Losses during current commercial transport
of H2 are substantially greater than this, suggesting to us that a range of 10 to 20% should be ex-
pected.” Where did they get the idea that “current commercial H2 transport” losses exceed 10%?
Remarkably, from a paper that said nothing whatever about such losses.149 Its only quantitative
estimates were for the daily boiloff rates of liquid hydrogen in small shipping containers (cryo-
genic truck and rail tankers). In fact, liquid hydrogen is only 10–3 of the world hydrogen market,
boiloff is usually burned or otherwise reused rather than released, and any serious volumes of
liquid hydrogen would be delivered via pipelines or large marine vessels150 rather than small
trucks; but apparently the CalTech authors overlooked all that. Due to the high cost of making
and delivering liquid hydrogen, now used largely for space rockets, it will probably never com-
pete economically in significant markets except aircraft, where hydrogen losses would be very
low and hydrogen usage would be less than a tenth of the total market.151
Prior technology assessment is useful, indeed essential; this is simply not a good example of it.
The CalTech authors concluded that, whatever its potential climate advantages from reduced
CO2 and other emissions, hydrogen leakage from a global hydrogen economy could considerably
increase the risk to stratospheric dryness and photochemistry. This is incorrect because:
• They grossly overstated the hydrogen leak rates: instead of their assumed 10–20%, a
more plausible estimate is at worst 1–2 percent, more likely a few tenths of a percent or
less.152 The authors do agree that hydrogen “emissions could be limited or made negligi-
ble, though at some cost,” and no doubt the furore over their paper will help to focus at-
tention on this issue, but they seem unaware that the hydrogen industry already achieves
extremely low leakage as part of its normal operating practice and at modest cost, simply
as a prudent strategy for public and asset protection.
• They didn’t credit hydrogen for its greater end-use efficiency, enabling less hydrogen to
deliver more service than can the fossil fuels it displaces.
• They didn’t credit a hydrogen economy for reducing or eliminating most of the present
causes of hydrogen emissions, which originate in fossil fuel and biomass usage. (Direct
Altogether, these factors would make a soundly designed hydrogen economy reduce current re-
leases of hydrogen by one or perhaps two orders of magnitude, to a level well below natural hy-
drogen releases.153 Thanks to the authors’ and journal’s carelessness, much research will now be
done to ensure this outcome, which was highly likely anyhow, and many hydrogen advocates
will spend as much time debunking this new myth as they already spend rebutting older ones like
the Hindenburg (Myth #2).
Myth #15. There are more attractive ways to provide sustainable mobility than adopting hy-
drogen.
In general, the best way to get access to where you want to be is to be there already, via sensible
land-use (spatial planning or its market equivalent — American communities would have a lot
less sprawl if their governments at all levels didn’t mandate and subsidize it). The next best way
is “virtual mobility” — move just the electrons and leave the heavy nuclei at home. The third
best way is to have real competition, at honest prices, between all modes of travel and of not
needing it. For physical mobility, hydrogen offers distinctive environmental, security, and (if
done right) economic advantages, but these advantages should supplement, not supplant, an inte-
grated policy framework for equitable access.
Some authors say it’s cheaper and better to fuel a car engine with compressed natural gas than to
carry the natural gas aboard the car, reform it into hydrogen onboard, and feed it into a fuel cell.
That may be true, at least until fuel cells become quite inexpensive. But it’s generally not true
when you take the reformer out of the car, where it has an asset utilization around 0.6%, and put
it in a filling station where it can be highly utilized and needn’t be carried around. In other
words, if you’re powering a car with fuel cells, you should carry only the hydrogen aboard, using
safe modern tanks (Myth #7), not a hydrocarbon fuel and a reformer to process it into hydrogen.
Cars fueled with compressed natural gas or LPG have become quite popular in fleet markets and
with some customers (especially government fleets, which must meet an alternative-fuels man-
date) and in some countries (such as India and China, where conversions are cutting urban air
pollution). They usually lower fuel and maintenance costs significantly and cut smog, but don’t
compromise safety. It’s reasonable to suppose that hydrogen fuel cells, which provide all these
advantages to an even greater degree, should win even more market support.
b. We should convert existing cars to carry both gasoline and hydrogen, burning both in their
existing internal-combustion engines, to create an early hydrogen market and reduce oil de-
pendence and urban air pollution.
However, it may be possible to provide tolerable interim results with a hydrogen-fueled internal-
combustion-engine hybrid car by combining the efficiency gains of the hydrogen fueling with
those of the hybrid-electric powertrain, as in Ford’s 2003 “Model U.”156 That concept car is
nearly 1.7× more efficient than its gasoline-fueled base model, with less than half the improve-
ment coming from greater engine efficiency. Its 700-bar H2 tanks are >4× bulkier than a same-
range gasoline tank.157 Such a vehicle therefore can’t be as spacious as an equivalent fuel-cell car,
but it could be significantly cheaper. One estimate at 20,000-unit production volume suggests
~$800–1,200 incremental cost for hydrogen-fueled internal-combustion-engine cars, or about
$1,000–1,200 less than for 300,000-unit fuel-cell car production158 — a difference that the fuel-
cell vehicle’s hydrogen savings would repay in 3–4 years from. For the same (300,000-unit) ini-
tial production volumes, the fuel cell car’s incremental cost would drop to ~$480,159 paying back
in less than a year and a half. Such a first-cost advantage for the H2-fueled engine hybrid is
hardly compelling, and its lower fuel economy would make its fuel cost per km comparable to
that of U.S. gasoline (~$0.36/L),160 rather than less in the more efficient fuel-cell car. However,
hydrogen-fueled engine-hybrid cars could temporarily help to hold a place for hydrogen in the
market, and could achieve many of its major benefits to a large degree but sooner, while fuel
cells are achieving mass production and low costs.161 If such a car were also ultralight, that could
help relieve its inherent design compromises, perhaps reducing the size penalty of the tanks from
~4× to ~2–3× (or taking part of the penalty in range), which may be acceptable for some mar-
kets. All these technologies should compete fairly, and big improvements may come in several
successive steps. Even so, the ultralight-plus-fuel-cell platform’s full benefits (Box 2, Myth #7),
including the potential for such important value propositions as using parked cars as distributed
electricity generators,162 would certainly justify its relatively modest incremental cost.
c. We should improve batteries and increase the required electricity storage capacity (battery-
electric driving range) of hybrid cars.
California has largely abandoned its mandate to introduce battery-electric cars because battery
technology, as RMI predicted, was overtaken by hybrid technology, which will in turn be
trumped by fuel cells. Battery-electric cars are a valid concept for niche markets, but (as Profes-
sor P.D. van der Koogh of the Delft University of Technology remarked) are “cars for carrying
mainly batteries — but not very far and not very fast, or else they would have to carry even more
Regulators that, like the California Air Resources Board, have rewarded automakers for increas-
ing the “zero-emission range” (battery capacity) of their hybrids are distorting car design in an
undesirable direction, increasing the car’s weight and cost in a way that doesn’t well serve their
strategic policy goals. However, such recent CARB concepts as requiring hybrids to have at least
8 kW of electric drive capacity and at least 60-volt traction motors are helpful, because they’ll
force real hybrid technology, rather than rewarding just a routine shift to 42-volt electrical sys-
tems that permit the starter/alternator to provide a minor torque supplement.
d. If we have superefficient vehicles, we should just run them on gasoline engines or engine-
hybrids and not worry about hydrogen or fuel cells.
To see how integrative, superefficient vehicle design can accelerate hydrogen deployment, just
reverse the logic. If we don’t have 3–5η vehicles, we’ll need fuel cells three times as big per car,
requiring many more years of selling large numbers of fuel cells at a loss (or into niche markets)
before production volumes bring down the cost enough to compete in cars. If we do have 3η
platforms (ultralight, ultra-low-drag, highly integrated design), they will greatly accelerate mar-
ket capture by hydrogen fuel cells and hence displacement of oil, which more and more people
think would be a good idea and may be very profitable.164 Even if hydrogen and fuel cells didn’t
prove attractive, therefore, 3η platforms could still yield enormous oil-saving benefits for na-
tional security, economic prosperity, and the environment. It appears, therefore, that the hydro-
Myth #16. Because the U.S. car fleet takes roughly 14 years to turn over, little can be done
to change car technology in the short term.
Gasoline-engine hybrid-electric cars, with about 150,000 on the road worldwide, currently com-
mand less than 1% of the U.S. car market, though far more in some localities. A fuel-frugal car
(the two-seat Honda Insight can drive from Washington DC to Chicago on one 11-gallon tank of
gasoline) looks even better in troubled times with spiking gasoline prices. But we needn’t wait
for normal fleet turnover to bring in such innovations, let alone fuel-cell cars. There is a large
portfolio of policy options to accelerate fleet turnover. Perhaps the most attractive approach
would be “feebates”: buying a new car incurs a fee or earns a rebate, depending on its efficiency.
The fees pay for the rebates. Ideally, the rebate for buying an efficient new car depends on the
difference in efficiency between the new car you buy and the old car you scrap. The bounty re-
ceived for scrapping a clunker could be unbundled from the new-car purchase, rewarding also
the car owners who scrap but don’t replace; either way, the government would offer you more
for your gas-guzzler than you’d get for a normal trade-in because the clunker is worth more to
society dead than alive. Detroit could also sell more cars, replacing the least efficient (and often
dirtiest) ones prematurely scrapped — and yielding disproportionately big and fast benefits for
air, oil, climate, jobs, and national security.
Feebates are not a new concept — the California legislature approved such a “Drive+” system by
7:1 in 1990, only to see it pocket-vetoed by Governor Deukmejian. Scrappage isn’t novel either:
both Unocal and the California Air Resources Board pay to get the most polluting cars off the
road. Combining these two options holds promise of a win-win political outcome while greatly
accelerating the turnover of the car stock; likewise for heavy vehicles and even more so for air-
craft. RMI is exploring ways to structure these transactions so that poor people, far from being
deprived of affordable used cars, could afford to buy efficient new cars that they could then af-
ford to run.
Oil productivity (dollars of real GDP per barrel of oil consumed) has doubled since 1975, yet
that remarkable achievement has barely scratched the surface of how much efficiency is avail-
able and worth buying. The last time the U.S. paid attention to oil productivity, during 1977–85,
Detroit improved new cars’ efficiency by 7.6 miles per gallon in seven years. GDP rose 27%, oil
use fell 17%, Persian Gulf oil imports fell 87–91%, and the halving of OPEC’s exports broke its
pricing power for a decade. Today we could do the same again, in spades.
A dozen years ago, the U.S. spent $61 billion to eject Iraq from Kuwait. Allies repaid all but $7
billion, equivalent to what a $1-per-barrel price hike costs Americans in less than a year. But for
less than that $7 billion, Americans could have saved more oil than we import from the Persian
Gulf. Similarly today, for enormously less investment than those lately committed in that region,
the U.S. could switch to a combination of efficiency and non-oil fuels, chiefly hydrogen, that can
rely on inexhaustible domestic resources and can make oil forever irrelevant to American mobil-
ity. (See Myth #19 below.)
Under development since 1991, 3–5η vehicles could, in principle, enter production ramp-up as
soon as 2007 with aggressive investment and licensing to manufacturers. Although the press fre-
quently reports very long transition times as inevitable, and many in the auto industry under-
standably share that view, many experts feel the transition could be rather rapid. Accelerated-
scrappage feebates (Myth #16) could turn over most or all of the U.S. car fleet in less than a dec-
ade. The handful of hydrogen refueling stations in Japan, Germany, and the United States could
grow rapidly: Deutsche Shell has said hydrogen could be dispensed from all its German stations
within two years if desired. However long the transition takes —which is matter of choice, not
fate — it’s better to start than not to, and we need to start quickly. The stakes are too high to
dawdle.
Myth #18. The hydrogen transition requires a big (say, $100–300 billion) Federal crash
program, on the lines of the Apollo Program or the Manhattan Project.
Many environmental and some political leaders are now proposing large, round numbers to sym-
bolize the level of investment and commitment they consider appropriate. However, it’s not at all
clear that a Federal crash program is the right model when there’s plenty of skill and motivation
in the private sector to introduce hydrogen fuel-cell vehicles rapidly — if they can compete
fairly. This is difficult when, for example, the latest tax law makes up to $100,000 for buying a
Hummer (ostensibly for business purposes) deductible in new tax breaks, federal funds for auto-
motive innovation virtually exclude innovation-rich small businesses, global and state initiatives
to make carbon costs visible are opposed by the federal government, and feebates aren’t yet on
the agenda (disadvantaging American businesses). Incoherence in automakers’ strategy is also
undercutting their impressive innovations — trumpeted in full-page ads about their hydrogen
cars — with contradictory marketing or litigating messages that hydrogen is far off and impracti-
cal (as they must presumably claim in their suit to oppose California’s proposed CO2 regulations)
or that efficient cars must be small and unsafe (as they did claim when lobbying against tighter
car-efficiency standards).
Coherent private- and public-sector policy could go a long way toward a rapid and profitable hy-
drogen transition. There are signs of smarter policy emerging in the Department of Energy’s re-
cent restructuring to integrate hydrogen, vehicle, building, and utility programs. On the other
hand, a senior DOE official, when told in January 2002 that the just-announced FreedomCAR
program hoped to develop over the next 10–20 years a car that had already been designed in
2000, replied, “Well, then, we’d better not try to help you, because we’d just slow you down.”
That might be true, but it shouldn’t be true, and if we want a vibrantly competitive rather than a
failing automotive industry, we’d better make it as untrue as possible.
The total cost of a hydrogen transition is probably a lot more than the $1.7+ billion proposed by
President Bush over the next five years, but it is probably far less than $100–300 billion. It may
not be much bigger than the billions of dollars that the private sector has already committed to
pieces of the puzzle — if the money is intelligently spent on an integrated buildings-and-vehicles
Myth #19. A crash program to switch to hydrogen is the only realistic way to get off oil.
Hydrogen can be a very important ingredient in getting off oil, but is less important than end-use
efficiency and is best combined with it. Without efficient cars (ultralight, low-drag), fuel-cell
adoption will be unnecessarily slow and costly. An RMI analysis for Royal Dutch/Shell Group
Planning in 1987–88 found a technical potential to save four-fifths of U.S. oil through more effi-
cient use (and direct substitution of saved natural gas) at an average cost below $4/barrel in 2003
dollars. Today’s potential is even larger and cheaper, and RMI is updating that analysis. Inte-
grating potential substitutions by hydrogen and biofuels will probably yield a potential to save
far more oil than we use, at lower cost than we pay, and sooner than almost anyone now thinks
possible. Watch for RMI’s major analysis Out of the Oil Box: A Roadmap for U.S. Mobilization,
now underway for publication later in 2003. Its economic attractiveness is likely to be clear just
from private internal cost, without counting the many large externalities of oil dependence.
Myth #20. The Bush Administration’s hydrogen program is just a smokescreen to stall
adoption of the hybrid-electric and other efficient car designs available now, and wraps
fossil and nuclear energy in a green disguise.
Most environmentalists — perhaps resentful that President Bush has stolen some of their thunder
— think FreedomCAR and the Hydrogen Fuel Initiative are a stall, not a leapfrog, and consider
the President’s hydrogen announcement mere greenwash for stealthy, rhetorically attractive, but
generally anti-environmental substantive policies. (Conversely, The Wall Street Journal’s edito-
rial board — apparently as unwilling to credit any idea environmentalists agree with as environ-
mentalists are to credit any idea the President agrees with — attacks the President’s “reasons for
funding hydrogen cars [as] neither smart nor honest.”2) The White House’s opposition to signifi-
cant near-term gains in car efficiency unfortunately foments the doubtless unworthy suspicion
that hydrogen is being wielded as a political weapon of mass distraction. That lingering odor
would best be dispelled by developing and deploying hydrogen to displace most or all petroleum
motor fuel in the long run while also saving a lot of oil in the short run by aggressively encour-
aging hybrid-electric powertrains and other straightforward, available technological improve-
ments that cost less than today’s gasoline. Policy and credibility would also be improved by
adding hydrogen dollars to the energy R&D budget rather than appearing to take them out of ef-
ficiency and renewables accounts.
Both the long-term hydrogen goals and the short-term car-efficiency goals are worthy, in se-
quence and in coordination; they also support each other, so there’s no reason not to do both. Let
the short-term measures support the long- term ones (e.g., by making cars more efficient and
electric traction cheaper), and let them both compete fairly. If we don’t, the losers will be Detroit
(as foreign competitors take more market share), the Earth, American customers and taxpayers,
and their economy, public health, and global security. But if we do, then hydrogen advocates’
utopian visions of a cleaner, safer, and more prosperous world may be right on the money.
***
Valuable review was kindly provided by Ron Britton, Cameron Burns, Odd-Even Bustnes, Kyle
Datta, Dr. Jonathan Fox-Rubin, Bill Leighty, Ken K. Robinson, Dr. Joel Swisher PE, and Dr.
C.E. Thomas. Numerous industry colleagues generously reviewed specific sections and shared
data and insights. Will Leighty correctly noted that “Myth” originally meant a legend or fable
rather than a fiction or falsehood, but despite my background as a classicist (and a student of the
great Harvard mythology scholar A.B. Lord), I think the latter sense, like “Urban Legend,” is
well accepted, and I trust readers will understand it in this context as a shorthand for “Popular
Delusion” or “Widely Believed Fallacy.” Any remaining errors, unclarities, or infelicities are my
sole responsibility, and will be corrected in subsequent editions if readers would kindly notify
me via outreach@rmi.org. — ABL
Notes
1
J. Ball, “Skeptics: Fuel Cells a Long Shot,” Wall St. J., 30 Jan. 2003.
2
Wall St. J. editorial, “Hydrogen Car Hype,” 30 Jan. 2003.
3
J. Ball, “Hydrogen Fuel May Be Clean; Getting It Here Looks Messy,” Wall St. J., p. A1, 7 March 2003,
http://online.wsj.com/wsjgate?subURI=/article/0,,SB1046990147219522880-
email,00.html&nonsubURI=/article_email/0,,SB1046990147219522880,00.html.
4
G. Easterbrook, “Car Talk: Why Bush’s h-car is just hot air,” New Republic 4597:13–15, 24 February 2003.
5
B. Eliasson & U. Bossel, “The Future of the Hydrogen Economy: Bright or Bleak?,” Procs. Fuel Cell World (Lu-
zern), 1–5 July 2002, pp. 367–382, European Fuel Cell Forum (Morgenacherstr. 2F, CH-5452 Oberrohrdorf, Swit-
zerland), posted at www.methanol.org/pdfFrame.cfm?pdf=HydrogenEconomyFinalReport.pdf,
www.evworld.com/databases/storybuilder.cfm?storyid=471, and www.woodgas.com/hydrogen_economy.pdf.
6
G. Gallon, “Hydrogen Energy Economy Wrong Path,” The Gallon Environmental Letter 7(6), 14 February 2003,
Montréal, cibe@web.net.
7
L. King, “Stealing the environmental Holy Grail,” Tallahassee Democrat, 2 Feb. 2003, p. E1.
8
D.E. Knoll, “Hydrogen Pipedreams,” Wall St. J. letter, 13 March 2003.
9
T. & R. Magliozzi (The Car Guys), “Hydrogen cars still way off,” The Denver Post, p. 3F, 10 March 2003.
10
D. Morris, “Second Thoughts on a Hydrogen Economy,” AlterNet, 24 Feb. 2003,
www.ilsr.org/columns/2003/022403.html.
11
P. Schwartz & D. Randal, “How Hydrogen Can Save America,” Wired 11.04:5–13, April 2003,
www.wired.com/wired/archive/11.04/hydrogen.html.
12
United States Council for Automotive Research (U.S.CAR), “Hydrogen as a Fuel,”
www.uscar.org/Media/2002issue2/hydrogen.htm, downloaded 14 March 2003.
13
Many people who should know better get this wrong. Even ExxonMobil Chairman Lee Raymond, in a talk pre-
pared for the World Gas Conference in Tokyo on 3 June 2003, reportedly called hydrogen an energy “source.”
14
A good lay summary of the alternative methods is at pp. 19–22 of B. Kruse et al., Hydrogen — Status and Possi-
bilities, Bellona Foundation report 6–2002, Oslo, 2002, www.bellona.no/en/energy/hydrogen/report_6-
2002/index.html. The theoretical energy needed to split water at 25°C is 1.23 eV, today’s electrolyzers run at
~1.7–1.9 eV, and 1.9 eV corresponds to a visible red wavelength of 650 nm, so “the entire visible spectrum of light
has sufficient energy to split water into H2 and O2”; the key is finding an efficient and affordable catalyst. J.A.
Turner, Science 285: 687–689 (30 July 1999), at n. 12.
15
In Greek, “hydrogen” means “water creator.”
16
See ref. 3.
17
The Lower Heating Value of 1 kg of hydrogen (the value appropriate for use in a fuel cell) is 98.6% of the corre-
sponding LHV of gasoline (115,400 BTU/USgal), or 91% of the Higher Heating Value of gasoline (125,000
BTU/USgal). See note 18.
18
The author often erroneously did the same for hydrogen in the 1970s and early 1980s, and many analysts still do.
A smaller but also significant distinction must also be drawn in how energy content is measured for different fuels.