BOARD MEETING DATE: January 9, 1998 AGENDA NO. 8




PROPOSAL:

Execute Contract to Cost-Share Development and Demonstration of Advanced Hydrogen Fuel Storage System Using Chemical Hydride Slurry System

SYNOPSIS:

Tecogen has proposed to develop an advanced hydrogen fuel storage system for a 50kW fuel cell vehicle (FCV) application using a chemical hydride slurry system. Current pure hydrogen storage tanks are either too voluminous or too heavy. Reforming liquid fuels to produce hydrogen, with high enough purity (99.99%) for proton exchange membrane (PEM) fuel cells, has proven to be a formidable challenge. This project has the potential to overcome these limitations. The total cost of this project is $1.22 million, cost-shared by the Department of Energy ($913,500), Tecogen ($57,000), with in-kind technical support from Ford Motor Co., Air Products, and Morton International. The proposed AQMD cost-share is $250,000.

COMMITTEE:

Technology, December 11, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Tecogen, a division of Thermo Power Corporation, in an amount not to exceed $250,000 to cosponsor the development and demonstration of the chemical hydride slurry system to store hydrogen fuel for fuel-cell applications.

Barry Wallerstein, D. Env.
Acting Executive Officer


Background

The AQMP relies on significant penetration of zero-emission vehicles (ZEVs) in the Basin to attain federal and state clean air standards by 2010. The AQMP projects that about 20% of the passenger cars and light-duty trucks in the Basin will be ZEVs by 2010. In 1990, the ARB adopted a regulation requiring the seven largest vehicle manufacturers to offer for sale a specified percentage of light-duty passenger cars and trucks as ZEVs beginning in 1998. In March 1996, the ARB modified this ZEV regulation to allow additional time for manufacturers to develop and improve the technologies for ZEVs. From 1996 to 2000, these manufacturers have agreed to make available between 1,250 and 3,750 ZEVs. In 2003, all large- and intermediate-volume manufacturers need to offer 10% of their light-duty fleets as ZEVs, or about 100,000 ZEVs per year.

Fuel cells produce electricity without combustion and, with advanced batteries, are emerging as the leading technologies to power ZEVs. These ultra-clean electrochemical engines can provide excellent performance and range along with fast refueling for vehicles, and have the potential to work in virtually every mobile and stationary application currently powered by internal combustion engines. Of the five major fuel cell types, the PEM fuel cell holds the most promise for commercialization in vehicle applications over the next decade. In fact, in a recent Ballard and Daimler-Benz joint announcement, Ballard's PEM fuel cell was selected for powering the Daimler-Benz proposed light-duty FCV, the New Electric Car, or NECAR.

Hydrogen fuel is the leading fuel for fuel cells, including PEMFC, since hydrogen generates the highest efficiency with zero air, water or solid waste pollution. Current development efforts mainly focus on providing hydrogen in two ways for FCV applications: (1) on-board storage of pure hydrogen, and (2) on-board reforming of liquid fuels.

Storage of pure hydrogen is hindered by voluminous tanks associated with conventional compressed storage (as preferred by Ballard and Ford), heavy weight associated with metal hydride storage, (as preferred by Mazda for its internal combustion cars), or high energy cost associated with pure liquid storage (as preferred by BMW for its internal combustion cars). The challenge for onboard reforming, on the other hand, is the achievement of 99.99% pure hydrogen, since contaminants such as CO and sulfur impurities above trace levels could degrade the PEM fuel cell.

Proposal

Tecogen, with substantial DOE cost-sharing, has proposed to develop and demonstrate a fuel system to overcome some of the above problems of storing hydrogen. The project objective is to develop a chemical hydride slurry--a suspension of hydride particles in a liquid, such as mineral spirits--for vehicle on-board storage. This slurry is then reacted with water at ambient temperatures to instantly generate ultra-pure hydrogen for a 50 kW PEM fuel cell.

The tasks in the proposed project would include the following:

In Phase I Tecogen would evaluate various chemical hydrides and slurry mechanisms; select the optimum hydride in slurry form; evaluate and optimize the reaction kinetics between the selected hydride slurry and water; optimize hydride slurry for weight, volume and hydrogen generation; optimize the thermal management of the reaction kinetics; optimize the viscosity for the selected hydride to facilitate storage, transportation, refueling and discharge of spent hydride; and evaluate storage tanks most compatible with the selected hydride slurry, that are also light-weight and low-cost.

In Phase II Tecogen will design and fabricate prototype storage tank(s) with the optimized hydride slurry system; design and fabricate the balance of the system, such as metering pump(s), safety mechanisms, pressure and temperature sensors, gas/liquid separator; evaluate performance of the complete fuel system; integrate the prototype fuel system with a simulated fuel cell power source; and evaluate the whole system under varying operating conditions of a simulated FCV of size 50 kW. [ On completion of Phase II, Contractor may propose a subsequent Phase (Phase III) to conduct a field demonstration of this fuel-storage system using an actual FCV.]

Contingent on the satisfactory progress in Phase I, AQMD funds will be mainly used for Phase II work.

The proposed project is included in the September 1997 update of the Technology Advancement Plan within the proposed program, 97M1-7, "Development of Advanced Technologies for On-Board Gaseous Fuel Storage." There are several expected benefits of the proposed project. If the project is successful, an optimum chemical slurry storage system can be built to improve the fuel storage capabilities, available trunk space, and the range of PEM fuel cell vehicles. This, in turn, would improve customer acceptability of FCVs and accelerate FCV penetration in the South Coast Air Basin, leading to substantial reduction of criteria and toxic air pollutants including, but not limited to, reductions of VOCs, NOx, CO, PM10, benzene, poly-aromatic hydrocarbons (PAHs), etc. Such reductions would assist the Basin in meeting federal and state air quality standards by year 2010.

Sole Source Justification

Section II, Step 3 (C) of the Consultant Selection Policy and Procedure identifies four provisions under which a sole-source award may be justified: (1) cost to prepare documents exceeds cost for consultant, (2) delay would result in the endangerment of public health, (3) services are only available from sole source, and (4) other circumstances exist identifying sole source as in the best interests of the AQMD. This request for sole-source award is made under provision (3). The proposed project is only available from a sole source.

Tecogen, the proponent of the proposed project, has unique experience and capability, unique proprietary knowledge of the technology and has acquired significant cofunding. In particular, Tecogen has direct experience in this area, has organized an excellent team consisting of original equipment manufacturers (OEM) to provide technical assistance, has well-equipped facilities, has worked with several automobile and truck manufacturers, and has acquired substantial DOE funding. Tecogen, through its past experience with clean-coal related slurry fuels for small-scale commercial and residential applications, has direct expertise in slurry technologies, including slurry preparation and slurry handling. Tecogen's slurry preparation expertise includes optimizing slurry composition, stability, reproducibility, rheology, and viscosity. Tecogen's slurry handling expertise includes slurry storage, transportation, dispensing and recycling of the spent slurry. A key part of this hydride slurry technology, though not proposed as part of this project, is the regeneration of the spent hydride at a centralized processing plant. Separately, Tecogen has already acquired substantial additional funding from DOE to develop the engineering process for such a regeneration plant.

Tecogen has considerable experience in developing and advancing a spectrum of gaseous fuel technologies for both stationary and mobile applications. Its work has ranged from developing state-of-the-art computer-controlled fuel-injection systems for gaseous fueled NGV engines, to building prototype medium-duty NGVs for several companies including GM Truck and Bus, Blue Bird Bus, UPS and the US Postal Service. It has performed pioneering engine-related research and development for a number of major engine manufacturers including Mack Trucks, Cummins Engine Company, Caterpillar, Ford and Navistar. Tecogen is thus well acquainted with a range of vehicular applications using alternative clean fuels.

Tecogen is a nationally well-respected research division of Thermo Power Corporation, which is a subsidiary of Thermo Electro Company, a major Fortune 300 company. Other divisions of Thermo Power manufacture and distribute the products developed by Tecogen, including cogeneration systems, industrial heat-pumps, and gas-fired chillers. The proposed contractor is thus associated with all three desirable elements needed to commercialize a technology: research, manufacturing, and distribution.

Other team members include:

Morton International A major worldwide manufacturer of hydride chemicals, which will provide in-kind technical assistance to the project. Morton will supply key hydride chemicals, review relevant technical literature, provide expert advise in optimizing the reaction chemistry among the chemicals, review technical progress, and assist in selecting compatible storage tank materials.

Air Products A major worldwide manufacturer and supplier of industrial gases, including hydrogen. Air Products will provide technical assistance on handling hydrogen gases generated in the project. If the project is successful, it is possible Air Products may license the technology for world-wide use.

Ford Motor Company This major automobile manufacturer will assist in the integration of the proposed fuel system with a simulated FCV. They will also provide technical assistance in system design, system integration, system performance and economics.

Resource Impacts

The total cost of this proposed project is estimated to be $1.22 million. The breakdown of the cosponsors and estimated support is as follows:

  Cash
DOE $ 913,500
Tecogen 57,000
AQMD 250,000
Total $ 1,220,500

Sufficient funds are available in the Fiscal Year 1997-1998 Budget.

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