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PROPOSAL:

Execute Contract to Assist Relocation of Solar-based Hydrogen Generating Facility

SYNOPSIS:

Clean Air Now, Inc. (CAN) designed and, in January 1997, implemented a solar-powered, hydrogen generating facility to refuel hydrogen vehicles at the Xerox facilities in El Segundo, CA. Now that the demonstration period has concluded successfully, it is proposed to relocate this facility for standard operation at the Sunline Transit Agency facility near Palm Desert, California. This relocation would assist in the refueling of hydrogen-fueled buses that Sunline Transit Agency plans to purchase in the future. Staff is recommending AQMD co-sponsorship of $50,000. Total project cost is $300,000.

COMMITTEE:

Technology, April 24, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with CAN to cosponsor the relocation of CAN's solar-based hydrogen generating facility from Xerox, El Segundo, CA to Sunline Transit, near Palm Desert, CA, for an amount not to exceed $50,000.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

Gasoline and diesel-fueled vehicles contribute significantly to the Basin's emissions inventory of volatile organic compounds (VOCs), oxides of nitrogen (NOx) and particulate matter (PM). Since 1988, the AQMD, along with other air districts and state and federal agencies, has actively pursued the development of low-emission and zero-emission alternative fuel technologies. In fact, the AQMP relies on significant penetration of zero-emission vehicles (ZEVs) in the Basin to attain federal and state clean air standards by 2010.

Fuel cells produce electricity without combustion and, in combination 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.

Hydrogen fuel, the target fuel of the proposed project, is the leading fuel for PMFCs, since hydrogen generates the highest efficiency in PMFCs with zero air, water or solid waste pollution. Hydrogen fuel can be stored directly as gaseous or liquid hydrogen, or can be generated onboard from fossil fuels such as methanol.

On January 1, 1997, Clean Air Now, Inc. (CAN) implemented a solar-powered, hydrogen-generating facility to refuel hydrogen vehicles. This demonstration facility is currently located at Xerox facilities in El Segundo, CA, just south of LAX. The hydrogen generation and compression systems are independent, stand-alone, "off-grid" systems, and consists of the following major sub-systems:

(a)	a 38 kW PV electrolysis system capable of peaking at 2,500 amps at 15 volts, and producing 320 standard cubic feet (scf) of hydrogen per hour;
(b)	a gas treatment system, consisting of an electrolytic hydrogen demister, a 50 scf gas holder and a high-pressure desiccant bed gas dryer;
(c)	a compressor, specifically designed to compress hydrogen to 5000 psi;
(d)	high-pressure gaseous storage tanks, with capacity of 15,000 scf at 5,000 psi;
(e)	a hydrogen dispensing system; and
(f)	three hydrogen-fueled light-duty trucks, with a range of 140 highway miles.

Proposal

The demonstration period has concluded successfully and, as planned, Xerox is now ready to resume use of the site temporarily used by CAN. CAN has proposed to relocate the hydrogen generation project, except for the hydrogen dispensing equipment, from demonstration mode at the Xerox facility at El Segundo to standard operation mode at Sunline Transit Agency facility at Thousand Palms, near Palm Desert, CA. (At Xerox's request, the existing dispensing system will remain at Xerox and new dispensing equipment will be purchased for Sunline.) This relocation would assist in the refueling of hydrogen-fueled buses, such as Hythane [ Hythane, a trademark of HCI, Littleton, CO, refers to a mixture of 80% natural gas and 20% hydrogen by volume. Hythane has been demonstrated in Montreal, Quebec in two buses powered by internal combustion engines. ] and fuel cell buses, that Sunline Transit Agency plans to purchase in the future. Specifically, the tasks for the relocation would include:

a. Disassembly of the enclosed structures’ concrete pads, and removal of the photovoltaic panels, the electrolyzer module, and hydrogen storage tanks;

b. Preparation and packaging of these subsystems for transport on trucks, loading of subsystems onto trucks, obtaining of permits to ship wide loads, and trucking of subsystem to the Sunline facility;

c. Surveying, designing and developing of engineering plans, and obtaining relevant permits (such as building permits) for the new facility;

d. Reassembling and reinstalling of the trucked-in subsystems, including installation of concrete pads, special explosion-proof underground conduits, electrical and water utility hookups, security fences, safety equipment, etc.;

e. Purchase and installation of new dispensing equipment at Sunline;

f. Comprehensive safety assessment and system start-up.

Benefits and Deliverables to AQMD

The proposed project addresses technologies included in the September 1997 update of the Technology Advancement Plan under Project 97M4-2, "Infrastructure Development to Support Clean Fuel Vehicles."

The use of alternative clean fuels in mobile sources is a key attainment strategy in the AQMP. The use of clean fuels would also assist automobile and truck manufacturers to comply with ARB's increasingly stringent regulations on exhaust tail-pipe emissions from such vehicles. In addition, from 1998 onwards, the Federal Clean Air Act Amendments of 1990 require centrally fueled fleets to purchase a specified percentage of clean fuel vehicles when buying new medium-duty vehicles. A serious challenge facing the commercialization of alternative clean fuels is the lack of refueling infrastructure. This project would address the feasibility of implementing a clean-fuel refueling facility in day-to-day operations.

Hydrogen is potentially the cleanest fuel available. Its use, especially in fuel cell vehicles, will virtually eliminate almost all types of air pollutants (including criteria, toxic and global warming emissions). In addition, in terms of cradle-to-grave life-cycle emissions, the production of hydrogen from water and solar energy is the cleanest method of producing a transportation-related fuel. This contract would facilitate redeploying a solar-hydrogen facility from an early demonstration site, i.e. Xerox, to a site with potential for higher value-added use, i.e. use in hydrogen-fueled buses to be purchased and operated under real-life conditions by a transit agency.

Sole Source Justification

Section VIII(B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for sole source award is made under provision B.2.c.(3): the contractor has ownership of key assets required for project performance.

CAN designed and implemented one of the country's leading and fully permitted solar-powered, hydrogen-generating facilities to refuel hydrogen vehicles. To complete this project, CAN put together a team of key manufacturers and technical experts in hydrogen technology, and then solicited and obtained federal and local funds of about $2.7 million. CAN obtained the cooperation of Xerox to locate this facility on two-thirds of an acre of a parking lot at the Xerox facilities in El Segundo, CA, just south of LAX. It also acquired funding to operate the facility for over a year, and to conduct a complete safety assessment of the facility using the services of ETEC, a subsidiary of Rocketdyne/Rockwell, recently purchased by Boeing. Rockwell employs some of the world's leading experts in hydrogen technology, and provides specialized services on the use of hydrogen in NASA space efforts. CAN's relationship with ETEC/Rockwell will continue in the new facility. Thus, besides the ownership and/or control of several fairly large pieces of hydrogen equipment, CAN's direct experience in managing, implementing and safely operating a hydrogen generation, storage and dispensing facility makes CAN uniquely positioned to execute this contract.

Resource Impacts

Total cost of this project is $300,000. The breakdown of the co-sponsors and estimated support is as follows (co-funding will be verified prior to contract execution):

Sufficient funds will be available in the FY 1998-99 Budget, subject to AQMD's Governing Board approval, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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