BOARD MEETING DATE: October 7, 2005
AGENDA NO. 4
Amend Contract with Air Products and Chemicals, Inc., to Purchase and Install Additional Equipment at Torrance Pipeline Hydrogen Fueling Station
SYNOPSIS:
At the June 6, 2003 Board meeting, the Board approved funding for a compressed hydrogen fueling station that would connect directly to the Air Products and Chemicals, Inc. industrial hydrogen pipeline. Over the past two years, automobile manufacturers have adopted more stringent purity limits for the hydrogen used as fuel in their vehicles. There is a need to enhance the fuel delivery system in order to provide the higher quality hydrogen fuel. This action is to amend the Torrance Pipeline Hydrogen Fueling Station contract with Air Products and Chemicals to install additional equipment that will improve the fuel quality of hydrogen dispensed by the pipeline station. Supplemental funding in an amount not to exceed $89,051 is needed to purchase and install the additional equipment and is available from the Clean Fuels Fund.
COMMITTEE:
Technology, September 23, 2005, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to amend the Torrance Pipeline Hydrogen Fueling Station contract with Air Products and Chemicals, Inc. (APCI), to include the purchase and installation of a pressure-swing absorption (PSA) unit to improve the fuel quality of hydrogen from the APCI industrial pipeline supplying the hydrogen refueling station in Torrance, and to add funding in an amount not to exceed $89,051 from the Clean Fuels Fund to cover the cost of the purchase and installation of the unit.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Hydrogen fuel cell vehicles are true zero-emission vehicles and have the potential to eliminate VOC, NOx, CO, and toxic emissions as well as greenhouse gas emissions. Hydrogen refueling stations are necessary to facilitate the introduction of fuel cell vehicles, and the development of an extensive hydrogen fueling network will allow the introduction of a variety of hydrogen fueled vehicles throughout the AQMD. Hydrogen can be generated through various technologies with each technology thus far having relative merits and drawbacks. At this early stage as hydrogen vehicles and the required infrastructure are being introduced, the demonstration of a variety of methodologies and systems will help determine the most effective and efficient methods for hydrogen generation and subsequent fueling. Automakers have expressed concerns regarding the quality of hydrogen provided for fueling fuel cell vehicles. Pipeline quality hydrogen must be further purified to address these concerns.
Proposals
Air Products and Chemicals, Inc. (APCI) owns and operates 17 miles of pipeline in the industrial/commercial districts of Torrance and Wilmington - the only one of its kind in an urban area in North America. Air Products proposes to build and operate a hydrogen fueling station supplied by their pipeline. The proposed hydrogen fueling station in Torrance will utilize the pipeline system to deliver hydrogen to the fueling site. This will allow hydrogen fueling in a very cost-effective manner without the need for on-site hydrogen generation or additional truck deliveries of hydrogen. The goal of the project is to provide hydrogen to the fuel cell cars that are expected to be demonstrated in the future.
The proposed fueling station will be capable of providing hydrogen based upon demand. As the demand increases, the pipeline is capable of supplying the fuel to meet those needs. Additional goals of this project are to develop a safety and operational training plan for the station that could be adapted to future sites and to provide increased public awareness of hydrogen as a vehicle fuel.
Several fuel cell automobile manufacturers have their headquarters within two miles of the proposed fueling station. Staff is proposing an amendment to the existing contract that will allow for the incorporation of equipment that will purify the pipeline grade hydrogen carried by the pipeline to the higher purity level required by fuel cell vehicle manufacturers. APCI proposes to enhance the hydrogen purity for this station through the use of a pressure swing absorption (PSA) system. PSA systems separate hydrogen from other materials due to the very high diffusion rate of hydrogen compared to other gases. The PSA uses absorption materials (such as a molecular sieve) to slow the movement of other gases allowing the hydrogen to move at a faster rate thereby resulting in its separation; the other gases are removed as waste products. This system is more advantageous than alternative purifying technologies such as membrane separation in that the PSA operates at high pressure thereby minimizing the need for an additional and expensive compression step in the process. The hydrogen recovery is better with the PSA than membrane separation systems and the PSA equipment cost is about half that of equivalent membrane separation systems.
Benefits to AQMD
The contracted station project was are included in the March 2002 update of the Technology Advancement Plan for the Clean Fuels Program under 2002 CFM4-3, "Development and Demonstration of Distributed Hydrogen Production and Refueling Stations" and 2002 CFM4-1, "Demonstration of Fuel Cell Vehicles" as a key element in the widespread use and resulting increased use of alternative fuel (hydrogen) vehicles. The station contract helps address the air quality objectives stated in the AQMP which rely heavily on the expedited implementation of zero-emission vehicles to achieve ambient air quality standards in the South Coast air district. These projects will also assist in ultimately expediting the implementation of fuel cell vehicles, which are advanced zero-emission vehicles. This, in turn, would lead to direct reductions in NOx, VOC, CO, PM, toxics and global warming emissions from light-duty and medium-duty vehicles
Resource Impacts
The total amount of AQMD funding for the proposed project will not exceed $489,051. The total project cost is expected to be $1,044,640, as shown below (cost share does not include in-kind service and equipment as well as existing infrastructure to be used for the project but does include new equipment added as part of the project).
| Existing Contract |
Proposed |
|
| • APCI (project management, equip. & support) | $455,170 | $100,419 |
| • AQMD funding | $400,000 | $ 89,051 |
|
Total funding |
$855,170 | $189,470 |
This project is anticipated to be located on property currently used by Shell Oil Company at a gasoline fueling station in Gardena. Earlier discussions regarding the station location had examined nearby sites in Torrance; however, the advantages to siting the hydrogen station at an existing gasoline station site may result in the selection of the Gardena site.
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. These requests for sole source awards are made under provisions B.2.d.(2): the project is a time extension of an existing contract; and B.2.d.(3): the contractor has a commitment to multiple project phases. For the following reasons, staff believes it is in the best interest of the AQMD to cosponsor the proposed partnership project.
Air Products operates a large (500 tons per day) hydrogen production facility in the industrial section of Los Angeles, serving that sector with over 17 miles of hydrogen pipeline. Air Products was awarded this contract as a result of a competitive RFP by achieving the highest score on their bid proposal.
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