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Execute Contract to Cost-Share Demonstration of Hydrogen Refueling Station at Sunline Transit

SYNOPSIS: 

Hydrogen fuel cell bus technology has the potential to eliminate a range of criteria pollutant emissions. Sunline Transit, a progressive all-CNG bus property, will be the first transit agency in Southern California to operate hydrogen fuel cell buses. Hydrogen Burner Technology (HBT) has proposed to install a complete hydrogen generation and refueling station to provide the needed hydrogen at Sunline Transit facility. The total project cost is $915,000. The proposed AQMD cost-share is $300,000. Cost-sharing will be provided by ARB, HBT and Sunline.

COMMITTEE: 

Technology, April 28, 2000, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Hydrogen Burner Technology to install and demonstrate a hydrogen refueling station at Sunline Transit facility in an amount not to exceed $300,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

The AQMP has identified the use of alternative clean fuels in mobile sources as a key attainment strategy. To address the health-based concerns of diesel exhaust emissions, the ARB recently passed regulations that require transit buses to comply with increasingly stringent emission standards. Hydrogen fuel cell buses are true zero-emission buses, and have the potential to eliminate VOC, NOx, CO and toxic emissions. Recognizing this potential, ARB regulation requires large transit agencies to demonstrate zero-emission buses starting in July, 2003. In the 2010-2013 timeframe, ARB has also mandated that 15 percent of all new purchases be zero-emission buses.

Hydrogen refueling stations are necessary to facilitate the introduction of fuel cell buses. Hydrogen can be generated through a spectrum of technologies. Prominent among these are:

a) steam reforming of natural gas
b) catalytic partial oxidation
c) thermal partial oxidation
d) electrolysis of water using night-time grid electricity
e) electrolysis of water using renewable energy

Each technology has its relative merits and drawbacks. In the early years, hydrogen will be generated using steam reforming and/or partial oxidation of natural gas. The electrolysis of water using less expensive night-time electricity might be another option in the near term. In future years, electrolysis of water using renewable-energy is expected to become increasingly competitive. With regards to air and water pollution impacts, the latter would be a true renewable, cradle-to-grave, zero-emission system.

Proposal

The objective of the proposed project is to demonstrate a hydrogen generation and refueling station based on Hydrogen Burner Technology’s (HBT) stationary reformer. The reformer converts natural gas to hydrogen using an innovative, non-catalytic, partial oxidation technology. Partial oxidation technology, though generally less efficient than steam reforming, could potentially be more cost effective due to reduced capital costs in smaller system size range.

HBT, in partnership with Sunline Services Group and FIBA Technologies, has proposed to install California’s first hydrogen refueling station. HBT plans to scale up its smaller reformer technology from 600 scfh size to 4,200 scfh size for the proposed refueling project. The pure hydrogen generated by the reformer will be compressed using a hydrogen compressor, and stored in large pressurized tube tanks. Dispensers will be provided to refuel hydrogen vehicles including hydrogen-fueled fuel cell buses, which Sunline Transit plans to acquire over time.

Prior to the proposed program with AQMD, HBT will test and monitor the performance of its reformer on a stand-alone basis at Sunline. HBT will note the performance, reliability and emissions of the reformer and the areas for improvement. Following this brief testing period, HBT will transport the reformer back to its plant in Long Beach for further development and integration into a complete refueling station, including the improved reformer, hydrogen compressor, storage tanks, and dispenser. This approach, of prior testing of the reformer before normal operation, should substantially reduce the risk of failure of the reformer during the proposed refueling operation.

HBT will compile a final design package that incorporates the lessons learned from the test and monitoring of the reformer conducted prior to the start of this program. HBT will develop bid specifications, site preparation, construction and equipment installation drawings of the various key elements of the refueling station, i.e. the hydrogen compressor, storage and dispensing systems. The completed system will be installed at Sunline and go through startup tests, prior to beginning hydrogen refueling operations.

Benefits to AQMD

The proposed project is included in the March 2000 update of the Technology Advancement Plan under Project 2000M4-2, "Development and Demonstration of Distributed Hydrogen Production and Refueling Stations." The proposed project will be the first of its kind in California. It would refuel hydrogen vehicles, including hydrogen fuel cell vehicles, in transit operations. If this technology succeeds in the marketplace, the proposed reformer would accelerate the commercialization of fuel cell vehicles in general. Large-scale penetration of fuel cell vehicles will provide substantial emissions reductions of NOx, VOC, CO, PM, and toxics throughout the Basin.

Sunline Transit operations could potentially reduce annual emissions by 17 tons of NOx and about 0.14 tons of PM10 if they convert fully to direct hydrogen fuel cell buses assuming a baseline of 40 new natural gas buses with annual average mileage of roughly 42,000 miles each.

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 a sole source award is made under provisions B.2.c. (2): the projects involves the use of proprietary technology; B.2.c.(3) the contractor has ownership of key assets required for project performance; and B.2.d (1) other circumstances, including projects involving cost-sharing by multiple sponsors. It is in the best interest of the AQMD to cosponsor the proposed project, whose participants include Hydrogen Burner Technology and Sunline Services Group.

Hydrogen Burner Technology, based in Long Beach, CA has developed and owns several patents to its reformer technology, and is a leading manufacturer of stationary reformers. At present, HBT has developed and optimized smaller size (600 scfh) reformers that convert natural gas to hydrogen. HBT has sold these units to industrial customers throughout the world. Its primary aim is to produce hydrogen at the lowest cost. Using its expertise, HBT plans to scale up and demonstrate a larger reformer in normal refueling operation.

Sunline Services Group is among the most progressive transit agencies operating in the District. It has aggressively implemented alternative fueled vehicles in their commercial operations. Sunline Services Group has extensive experience in designing, implementing and successfully operating gaseous refueling stations and gaseous fueled vehicles. It has already initiated the construction of a water electrolysis system to generate hydrogen - using both grid electricity and renewable solar energy. Sunline is thus quite aware of the permitting and construction issues of locating a hydrogen dispensing station. It is in the process of acquiring several hydrogen powered buses for deployment in revenue services. These buses require hydrogen fuel, and this project is among the several projects being implemented to provide this fuel.

As listed below, cost-sharing is being provided by various participants. AQMD cost-share is roughly one-third of the project.

Resources Impacts

The total amount of AQMD funding for the proposed project will not exceed $300,000. The table below describes the proposed funding to complete the project:

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting 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 sources to support projects to increase the utilization of clean fuels, 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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