BOARD MEETING DATE: September 11, 1998 AGENDA NO. 8
PROPOSAL:
Execute Contracts to Develop and Demonstrate Two Distinct Hydrogen Reforming and Fuel Processor Systems
SYNOPSIS:
Major automakers, including Ford and Daimler-Benz, have announced their intention to develop fuel cell vehicles in fairly large numbers before the end of the decade. Hydrogen, either stored directly or generated onboard, has been identified as among the leading fuels to power these vehicles. In response to a competitive solicitation, RFP 9798-35 issued in March 1998, Energy and Environmental Research Corporation (EERC) and Hydrogen Burner Technology (HBT) Inc., have been selected to develop and demonstrate two distinct hydrogen reforming technologies. The AQMD cost to fund these two projects, and to conduct independent testing, shall not exceed $500,000.
COMMITTEE:
Technology, August 28, 1998. Vice Chair Leonard Paulitz and Roy Wilson communicated their concurrence.
RECOMMENDED ACTION:
- Authorize the Chairman to execute a contract with Energy and Environmental Research Corporation (EERC) to develop a high-efficiency steam reformer, with an advanced CO removal system, for an amount not to exceed $200,000.
- Authorize the Chairman to execute a contract with Hydrogen Burner Technology (HBT) Inc. to develop a thermal partial oxidation unit to reform methanol fuel and simulated landfill gas for an amount not to exceed $200,000.
- Authorize the Chairman to set aside $100,000 to conduct independent testing of these reformers at an independent laboratory. The laboratory, subject to Board approval, will be selected at a later date.
Barry R. Wallerstein, D.Env.
Acting Executive Officer
Background
The deployment of zero-emission technologies, such as hydrogen-powered fuel cells for stationary and mobile source applications, is a key component of the AQMP strategy to meet the region's air quality goals by the year 2010. Ford, Daimler-Benz and Ballard recently announced their intent to introduce polymer membrane (PM) fuel cell vehicles by the next decade. Direct hydrogen is a leading candidate fuel for such PM fuel cell vehicles. The use of hydrogen eliminates a range of air pollution emissions including criteria pollutants, toxic pollutants and greenhouse gases. Hydrogen will also eliminate spills in groundwater, oceans and on land, spills frequently associated with conventional fuels such as gasoline and diesel.
Hydrogen production, distribution and storage technologies are well developed for industrial and space-shuttle applications. To support significant penetration by hydrogen-powered fuel cell technologies in the South Coast Air Basin, the production and supply of hydrogen needs to be further expanded.
Request for Proposals
On March 13, 1998, the AQMD released RFP #9798-35 to develop and demonstrate technologies to build a potential hydrogen production and refueling network. Specifically, the RFP solicited development and demonstration of technologies in the following categories:
Category A: Cleanup LFG. Innovative technologies were solicited to improve the destruction and removal of particulates, siloxanes, sulfur and organic compounds; minimize air entrapment in the gas collection systems; and improve moisture/condensate removal and treatment.
Category B: Hydrogen reformation. Innovative technologies were solicited to convert LFG, methanol or natural gas to synthesis gas (containing carbon monoxide, carbon dioxide and hydrogen); to convert synthesis gas to predominately hydrogen through water-shift reaction; and to purify hydrogen to over 99.99% purity for PM fuel cell applications.
Category C: Hydrogen refueling network. A network to assist refueling hydrogen-fueled vehicles was solicited. Currently, there are three sites along the I-10 freeway corridor of the Inland Empire/Coachella Valley. The RFP's intent was to encourage the installation of additional refueling sites in the Basin.
The proposed project is included in the September 1997 update of the Technology Advancement Plan for the Clean Fuels Program as proposed projects (a) 97S2-2 , "Production of Clean Fuels from Municipal Solid Waste, Biomass, and Other Waste Fuels," (b) 97M4-3, "Development of a Hydrogen Corridor in Southern California," (c) 97M4-2, "Infrastructure Development to Support Clean Fuel Vehicles," and (d) 97M3-3, "Development and Demonstration of Fuel Cell Technologies for On and Off Road Vehicle Applications."
The primary benefits of this project are expected to occur over the long term. If the proposed technology is successfully demonstrated, this project would improve hydrogen infrastructure by expanding the sources, availability and refueling of hydrogen fuel; demonstrate two distinct hydrogen refueling technologies; and these, in turn, would facilitate the market introduction of zero-emission hydrogen fuel cell technologies in both stationary and mobile applications. The resulting emission reductions will help the AQMD in meeting its air quality goals as set forth in the 1997 AQMP.
In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
| 1. | Antelope Valley Press | 10. | La Opinion | 19. | Precinct Reporter |
| 2. | Black Voice News | 11. | La Voz | 20. | Rafu Shimpo |
| 3. | Chinese Daily News | 12. | Los Angeles Daily News | 21. | Riverside Press Enterprise |
| 4. | Eastern Group Publications | 13. | Los Angeles Sentinel | 22. | San Bernardino Sun |
| 5. | El Chicano | 14. | Los Angeles Times | 23. | Santa Clarita Signal |
| 6. | Excelsior, The | 15. | M/W/DVBE Source | 24. | State of California Contracts |
| 7. | Inland Empire Hispanic News | 16. | Orange County Register | Register | |
| 8. | Inland Valley Daily Bulletin | 17. | Palm Springs Desert Sun | ||
| 9. | Korea Central Daily | 18. | Philippine News |
Additionally, potential bidders were notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidders’ 24-hour telephone message line (909) 396-2724.
Over 400 copies and over 1700 notices of the RFP were mailed out. In addition, announcements were made in newsletters and at the National Hydrogen conference. Nineteen vendors attended the bidders’ conferences held on April 8 and April 23, 1998.
Panel Composition
Seven panelists evaluated the responses to this RFP, six of whom are employed outside the AQMD. Six panelists were Caucasian, and one was Asian/Pacific Islander.
For Category A (Cleanup of Landfill Gas)
For Categories B and C (Hydrogen Reforming/Refueling):
Bid Evaluation
Four vendors submitted six bids in response to the RFP.
Of the six bids received, none were from minority- or women-owned enterprises. Two were from non-certified small business enterprises.
The bids in categories A and C were judged non-responsive because of lack of verifiable cost-sharing, a minimum requirement for the RFP.
With regards to Category B, the Evaluation Panel judged two of the bids as not meeting the minimum technical criteria specified in the RFP. In one case, the bid was judged as non-responsive to the requirements set forth in the RFP, and in the other case, the proposer did not provide adequate cost-sharing. The bids by EERC and HBT were unanimously judged by the panel as meeting the technical criteria of the RFP. Both proposals demonstrated a good understanding of the issues and proposed innovative technologies to further the goals and objectives of the RFP. As a result of the RFP panel evaluation process, the proposals for hydrogen reformers by EERC and HBT are being recommended for award.
EERC Proposal
Under a Department of Energy (DOE) program, EERC is developing a unique, innovative small-scale, steam reformer system that has the potential to retain the same high efficiencies as large-scale steam reformers currently used widely in refineries to reform natural gas to hydrogen. Small steam reformers have better potential for dispensing hydrogen in centralized fleets. Using AQMD funds, EERC has proposed to develop an innovative, selective oxidation system to remove CO from the hydrogen gas - to levels pure enough for PEM fuel cells. EERC’s proposed CO removal system consumes less hydrogen, uses less energy and is less costly than traditional pressure-swing adsorption (PSA) systems, and is also capable of load-following. Natural gas will be the initial feedstock gas, while low-cost LFG gas will be explored for later use.
EER operates a 25-acre test site near its headquarters in Irvine, CA. Thirteen engineers, technicians, chemists, welders, electricians, and machinists staff the test site. Facilities available at the test site including all necessary fabrication, assembly and operation infrastructure. This includes a machine shop, welding shop, electrical shop for fabrication, maintenance and repair of experimental equipment and instrumentation, and an analytical chemistry laboratory. The test site includes fifteen experimental test facilities ranging from laboratory-scale experimental burners to an 80 MMBtu/hr full scale industrial burner test combustor. Included in the experimental test facilities are a laboratory-scale reactor for test and evaluation of the Unmixed Combustion and Unmixed Reforming processes and a 20 kW pilot plant for study of Unmixed Reforming. EERC is also equipped with numerous state-of-art measuring and testing instrumentation to detect and analyze a range of pollutants.
The total amount of AQMD funding for this project will not exceed $200,000. Estimated cost-sharing from other cosponsors are as follows:
HBT Proposal
HBT has ongoing programs with DOE and DARPA funding agencies to develop and demonstrate its thermal-based, partial oxidation reformer. Using AQMD funds, HBT has proposed to convert methanol to pure hydrogen, and later convert simulated LFG gas (a mixture of methane and carbon dioxide, the principal constituents of LFG) to hydrogen. Partial oxidation, though less efficient than steam reformers, is less costly technology to convert fossil fuels (such as natural gas, methanol, propane) to hydrogen.
HBT, through its subsidiary company, Phoenix Gas Company, is marketing on-site hydrogen generation equipment to industrial facilities to process gas. This equipment provides 99.99% hydrogen with less than 0.1 ppm CO purity at capacities 600 scfh (30 kW) and 4,200 scfh (250 kW). Skidded, commercial packages that operate with natural gas or propane incorporate controls and heat transfer components for cooling hydrogen to delivery conditions. Over 20 units have been built and installed at customer sites. Many units have an integrated fuel processor, PSA, air and natural gas compressor. HBT has extensive experience with both hydrogen and gas compression systems. Its customer service department provides customers with equipment operation training, startup assistance, and ongoing field support. HBT, under a SMUD-supported program, is experimenting with a 10kW liquid fuel (diesel, gasoline, JP-4) processor. Successful operation was obtained for a 40-hour period. HBT is currently working on an award from the Department of Energy to develop a gasoline-fueled automotive fuel processor – a smaller integrated version of the current reformer.
The total amount of AQMD funding for this project will not exceed $200,000. Estimated cost-sharing from other cosponsors are as follows:
| Participant | ||
| DOE | $111,000 |
|
| HBT | $90,000 |
|
| AQMD – HBT | 200,000 |
|
Total Project |
$401,000 |
Testing at an Independent Laboratory
Staff recommends setting aside an additional $100,000 to select an independent laboratory. This selection, subject to Board approval, will be made at a later date. The selected facility would conduct performance, durability and emissions testing of the two reformers. Such testing, besides providing independent verification, will also assist in establishing repeatability and in developing standardized protocols to measure performance at different load conditions.
The total amount of AQMD funding for these contracts will not exceed $500,000. Sufficient funds are available in the FY 1998-99 Budget from revenues received from the state-mandated Clean Fuels Program.
The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 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.
Attachment: Panelists’ Evaluation
BD15:9-98A
ATTACHMENT A
EVALUATION OF RESPONDENTS TO RFP #9798-35
(For Category B: Hydrogen Reforming)
| Panelist Score --> | 1 | 2 | 3 | 4 | Average* |
| Energy and Environmental Research Corp | 78 | 85 | 71 | 70 | 76.00 |
| Hydrogen Burner Technology | 85 | 70 | 70 | 92 | 79.25 |
Two bids were judged by the Evaluation Panel as not meeting the minimum Technical Criteria specified in RFP #9798-35.
*A minimum of 70 points was required in Step 1 in order to continue in the evaluation process; thus, if the minimum 70 point score was not attained, the cumulative score became zero
One bid each for Category A (Landfill Gas Cleanup) and Category C (Hydrogen Refueling) failed to qualify because of lack of adequate cost-sharing, a fundamental requirement for the RFP.
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