The history of human progress is the history of fuel, from wood to coal to oil and gas. Hydrogen, a light, abundant, and ubiquitous element that can be obtained through the electrolysis of water, is poised to become an important energy source. Or is it?
On Tuesday, BNSF railway, Caterpillar, and Chevron Motors announced plans to construct a locomotive powered by hydrogen (H2) fuel. The proposal aims to demonstrate the feasibility of using hydrogen as an alternative to traditional rail fuel sources such as electricity and diesel. Under the agreement, Caterpillar
CAT
plans to develop the hydrogen fuel cell, Chevron
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will develop the fueling concept, and BNSF will demonstrate the product on its lines.
Anticipating the clean-energy transition has been a prime objective for transportation and energy companies alike, with a number of them gambling on this frontier fuel. Whether or not hydrogen will pan out in a low-carbon future remains to be seen.
Hydrogen can serve as a cleaner alternative to conventional fuel sources if refined in a sustainable “green” way. So-called “green hydrogen” is created by splitting water (H2O) into hydrogen (H2) and oxygen (O2) through an energy-intensive process known as electrolysis. If the electrolyzer is powered via solar, wind, or another sustainable energy source, the H2 is produced without emissions. That H2 is then combined with a fuel cell to produce clean electricity with no byproducts other than water.
However, the hydrogen produced today – mainly for industrial feedstock – is derived from fossil fuels. So-called “gray hydrogen” is the most common and comes from steam methane reforming (SMR) which is carbon and methane heavy. If this method involves carbon capture and sequestration (CCS), it then becomes a slightly more environmentally friendly “blue hydrogen.” The most carbon-intensive way is “black hydrogen,” where the H2 is derived entirely from coal.
The BNSF deal comes as the construction and transportation industry is looking to shift to cleaner forms of energy. The announcement outlined three primary goals— (1) Progress Rail plans to design and build a prototype hydrogen fuel cell locomotive for line-haul and/or other types of rail service. (2) Chevron expects to develop the fueling concept and infrastructure to support this use of the locomotive. (3) Lastly, the prototype hydrogen fuel cell locomotive is expected to be demonstrated on BNSF’s lines for some time, with room for expansion upon success.
Though hydrogen has a promising future in reducing total carbon emissions, it is not without challenges. Hydrogen fuel must be stored at -235C and shipped on specialized cargo ships, leading to a very costly endeavor.
According to the Florida Solar Energy Center, hydrogen produced by steam reformation costs three times the amount natural gas does per unit of energy produced. This means that if natural gas costs $6 per million British thermal unit (MMbtu), then hydrogen will be $18 MMBtu or 3x the cost. Furthermore, stream reformation with fossil fuels is the most cost-effective method to produce hydrogen. Cleaner blue and green hydrogen processes are 2x to 5x more expensive than gray or black SMR.
According to S&P Global Platts, the cost of producing hydrogen from renewables will need to decrease by more than half to make it a feasible alternative to fossil fuels. However, despite this financial challenge, hydrogen still represents one of the cleanest energy options. BNSF is not the only company exploring hydrogen power.
U.S. transportation companies have also committed to hydrogen experimentation. United Airlines recently acquired an equity stake in ZeroAvia, a company that uses hydrogen fuel cells to power electric motors, with the intent to purchase up to 100 zero-emission ZA-2000-RJ engines.
Additionally, a California-based startup called H2 Clipper announced on December 15 that they can produce hydrogen airships at one-quarter of the price of a traditional cargo plane. Specifically, it claims that transport costs for H2 planes would range between $0.177 to $0.247 a ton per mile for distances between 1,000-6,000 miles (~1,610-9,650 km). According to the company, that’s a quarter of the price of aircraft cargo transportation. But that required H2 upstream, midstream, and downstream infrastructure to be in place.
Last year the Department of Energy announced the Million Mile Fuel Cell Truck Consortium (M2FCT) to demonstrate the potential of hydrogen fuel as an option for clean and affordable energy. This potential has expanded beyond the trucking industry, as demonstrated by the announcements by BNSF railway, Caterpillar, Chevron Motors, and United Airlines. According to the Environmental Protection Agency (EPA), the transportation sector represents the largest share of U.S. greenhouse gas emissions at 29%; the next highest polluter is electricity at 25%. Social and political pressure is mounting for major automotive manufacturers to consider carbon-free alternatives – like H2 seriously.
According to the International Energy Forum, decarbonization of long-haul shipping, aviation, and heavy-duty vehicles, including 18- wheeler trucks, could cut as much as 23% of carbon emissions from the total production. Vehicles in this sector only account for 10% of all vehicles used for transportation, yet they are responsible for 29% of total carbon emissions, making them a clear target for the transition.
In April of 2021, multinationals such as Netflix
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, Microsoft
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, and Boeing
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formed the Sustainable Aviation Buyers Alliance to accelerate the clean energy transition. Though hydrogen fuel has a promising future in reducing total carbon emissions, the cost, lack of infrastructure, and security will need to be addressed.
Hydrogen power is a nascent industry with great potential and much to learn. For now, hydrogen production is still a large carbon and methane emitter years away from conversion and cost-effectiveness. Finally, the mass transit, rail, and aviation industries are smaller than automotive transport, and there is not enough demand for H2 powered vehicles due to lack of converted infrastructure and distribution systems.
Hydrogen faces many of the same challenges as electric vehicles (EVs) in terms of required infrastructure, scale, and high initial costs. But the proliferation of EVs today – through a combination of private-sector efforts, social demand, and government policies – could portend the success of H2 fueled vehicles sooner than many think.
With assistance from Riley Moeder
