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Economic Analysis of Hydrogen Energy Station Concepts: Are 'H2E-Stations' a Key Link to a Hydrogen Fuel Cell Vehicle Infrastructure?

UCD-ITS-RR-02-32

Journal Article

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Suggested Citation:
Lipman, Timothy E., Jennifer L. Edwards, Daniel M. Kammen (2002) Economic Analysis of Hydrogen Energy Station Concepts: Are 'H2E-Stations' a Key Link to a Hydrogen Fuel Cell Vehicle Infrastructure?. University of California Energy Institute (Energy Development and Technology 003)

Fuel cell vehicles (FCVs) powered directly with hydrogen (H2) will need access to a H2 refueling infrastructure. For this reason, most direct-H2 FCVs introduced prior to 2008-2010 are likely to be placed in fleets where they can be centrally refueled. However, access to additional refueling sites would increase the usefulness of these early FCVs, and once FCV commercialization spreads to the general public, consumers will require at least a minimal H2 refueling infrastructure in order to make FCV use feasible. One option for expanding the infrastructure for FCVs is the concept of the "hydrogen energy station"(H2E-Station). These H2E-Stations seek to capture synergies between producing H2 for a stationary fuel cell electricity generator that provides electricity for local loads, and refueling FCVs with additional high-purity H2 that is produced through the same H2 generation system.

Based on our initial analysis, we conclude that the economics of supporting small numbers of FCVs at a refueling station, on the order of 5-15 per day, are difficult but that the losses associated with supporting early FCVs can potentially be reduced by employing H2E-Station designs. We further conclude that the economics of "office building" H2E-Stations appear favorable relative to "service station" H2E-Stations, but that both types can offer advantages relative to more conventional vehicle-refueling schemes.