ARTICLE IN PRESS

Energy Policy 34 (2006) 2630–2639

[Link]/locate/enpol

Viewpoint

A green hydrogen economy

Woodrow W. Clark IIa,, Jeremy Rifkinb
a
Green Hydrogen Scientific Advisory Committee, Clark Communications, LLC, P.O. Box 17975, Beverly Hills, CA 90209, USA
b
The Foundation on Economic Trends, USA
Available online 30 August 2005

Abstract

This paper is the result of over a dozen scholars and practitioners who strongly felt that a hydrogen economy and hence the future
is closer than some American politicians and bureaucrats state. Moreover, when seen internationally, there is strong evidence, the
most recent and obvious ones are the proliferation of hybrid vehicles, that for any nation-state to be energy independent it must seek
a renewable or green hydrogen future in the near term.
The State of California has once again taken the lead in this effort for both an energy-independent future and one linked strongly
to the hydrogen economy.
Then why a hydrogen economy in the first instance? The fact is that hydrogen most likely will not be used for refueling of vehicles
in the near term. The number of vehicles to make hydrogen commercially viable will not be in the mass market by almost all
estimates until 2010. However, it is less than a decade away. The time frame is NOT 30–40 years as some argue. The hydrogen
economy needs trained people, new ventures and public–private partnerships now.
The paper points out how the concerns of today, including higher costs and technologies under development, can be turned into
opportunities for both the public and private sectors. It was not too long ago that the size of a mobile phone was that of a briefcase,
and then almost 10 years ago, the size of a shoe box. Today, they are not only the size of a man’s wallet but also often given away
free to consumers who subscribe or contract for wireless services. While hydrogen may not follow this technological
commercialization exactly, it certainly will be on a parallel path. International events and local or regional security dictate that
the time for a hydrogen must be close at hand.
r 2005 Elsevier Ltd. All rights reserved.

Keywords: Hydrogen economics; Renewable and green hydrogen; Stations and refueling

1. Background: toward a hydrogen future the hydrogen economy (Lovins, 2003; Lipman, 2003)
and considerable delay within the investment and finance
Some critics of the hydrogen economy have written communities to support the hydrogen economy until
books and editorials (Romm, 2004a, b) that have caused 20–30 years in the future (National Academy, 2004). The
both consternation and re-evaluation about the near- truth is that the real ‘‘hype’’ to a hydrogen economy
term prospects of a hydrogen economy (Hall et al., comes from the USA-centric research, development and
2003). This questioning has led to some hesitation within industrial communities.
the environmental community (Tromp et al., 2003) and The arguments made by critics (Romm, 1993) are
hence among decision-makers (Rifkin, 2003). Kammen primarily used by some politicians, special interest
and Lipman (2003) argue against this perspective with groups, lobbyists and others to support, bolster and
more accurate details and facts about the non-myths of advance a multi-decade research and development
agenda advancing ‘‘clean’’ fossil fuels and nuclear
Corresponding author. Tel.: +1 310 858 6886; power. Actually, the current fossil fuel paradigm for
fax: +1 310 858 6881. producing hydrogen maintains the status quo for a
E-mail address: wclark13@[Link] (W.W. Clark II). continued fossil fuel paradigm (Sperling and Cannon,

0301-4215/$ - see front matter r 2005 Elsevier Ltd. All rights reserved.
doi:10.1016/[Link].2005.06.024
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2004). Many of the claims made by Romm were later the EU responded to the International Ministers
refuted by Sperling and Ogden (2004), but significant Conference called by Abrahams in Washington DC in
points about near-term costs and financing were left November 2003 for a near-term hydrogen economy.
unchecked giving the strong impression that hydrogen President Prodi puts it more to the point. Either the
was decades away. Sperling et al. express the view that EU ‘‘sinks or swims’’ (2003) in competing for hydrogen
hydrogen was the best option for the long term. markets now. Hence, in each of these reasons he
The National Renewable Energy Laboratory (NREL, personally has taken interest in the hydrogen economy
2004) has been tasked with the effort but in terms of and the European Community has allocated billions of
‘‘renewable hydrogen’’ woefully under-funded. The EUROs to funding research, deployment and procure-
Bush administration’s allocation of over $255 million ment of hydrogen-based commercial products and
is primarily focused on fossil fuels and nuclear energy services. It is no accident either that Rifkin (2003) has
for producing hydrogen. The total amount announced been engaged in working with the European Union.
by the Bush administration of over $1.2 billion is Nor is it an accident that the group of over 50
already allocated to these fields. Yet even despite this representatives from academia, industry and govern-
unbalanced allocation of resources, ‘‘renewable’’ or ment at the California Hydrogen Forum, during the
‘‘green’’ hydrogen is well on its way to becoming summer of 2003, and many of the 200+ people
commercially viable in the near term (Rifkin, 2002, attending a US Department of Energy and University
2004; Clark, 2003a, b, 2004; Clark and Bradshaw, 2004; of California, Davis, Institute of Transportation Sum-
Clark et al., 2005; Kammen and Lipman, 2003. mit in Asolimar, California, clearly acknowledged that
Increasing numbers of studies are examining both the hydrogen businesses are prepared today to advance the
technical and economic relationships between renewable hydrogen economy into the marketplace in tandem with
energy and hydrogen. Berry (1996) was one of the continued research, development, and standards. Al-
earliest to make the connection which was followed by most the same conclusion came from a High Level
the studies that he helped to lead at Lawrence Livermore Group report at the EU in June 2003 (EU, 2003a–d).
National Laboratory in the mid-1990s (Berry, 1996; Thus, the future for hydrogen is now and not in 20–30
Berry et al., 1999) followed by others (Isherwood et al., years.
2000; Kammen and Lipman, 2003). Berry’s conclusions Hydrogen is plentiful and businesses exist today that
about renewables and hydrogen are significant and since commercialize it (Ogden, 1999; Swisher, 2002). As the
1999, the economics have improved by a factor of three: scientific community might phrase it, the research and
development community proceeds in its linear scientific
Hydrogen can be used to facilitate the introduction of
methods, but more non-linear and hence parallel safe
renewable energy resources since it can be used as
and clean hydrogen technologies exist today that avoid
both an energy carrier and a storage medium to
the ‘‘chicken and egg’’ syndrome. The best example is
compensate for the intermittency of many renewable
the recent misstatements and serious questions about
resources. Using renewable resources and hydrogen
assumptions from researchers at Cal Tech over the
we can serve both the electric sector and the
negative impact of hydrogen on the ozone (Tromp et al.,
transportation sector. It has been suggested (Berry,
2003). Despite some skepticism and debate from Tromp
1996) that there may be a synergy between the
et al. (2003), the counterarguments from others (Kam-
transportation and electric sectors when renewable
men and Lipman, 2003; Sperling and Ogden, 2004)
resources are used. This section investigates the
validate the hydrogen future as being ‘‘now’’ and not 50
possibility of such a synergy (Berry et al., 1999, p. 4).
years from the early part of the 21st century.
A Report on Hydrogen from a Forum held in Los Renewable sources of energy can produce hydrogen,
Angeles (August 2003) by the California Governor’s like water, solar photovoltaic (PV), waste, wind, small
Office substantiated that a ‘‘consensus developed’’ sustainable hydropower, geothermal, and even wave
among government officials and industry leaders where- power among others. These ‘‘green’’ resources, along
by California in particular, but any nation-state, in with environmentally sound technologies that are
order to achieve energy independence must commercia- available today, are increasingly being used to produce
lize innovations and technologies to serve its social, electricity. This electricity, in turn, can be used through
economic and environmental goals (Clark and Brad- the electrolysis process to split water into hydrogen and
shaw, 2004). ‘‘Hydrogen is one such ‘leveling’ or oxygen. According to several analysts (Hoffman, 2002;
bi-partisan innovative technical advancement.’’ (Berry Rifkin, 2002) the efficiency of electrolysis is around
et al., 1999, p. 1). While President Bush predicted in his 80%, which means that nearly all the energy values of
January 2003 State of the Union Address that hydrogen the electricity can be stored as hydrogen. Clearly this is a
and fuel cell vehicles would be available for his positive factor given the importance of finding a way to
grandchildren to drive (20 years away), the ‘‘competi- store electricity, since it must be used later or at peak
tion’’ globally is occurring today (Abrahams, 2003) as hours once it is created.
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Hydrogen generation with electrolysis allows storage Today wind is competitive with natural gas. Not long
of intermittent production of renewable energy, which ago, wind was 3–4 times more expensive than natural
solves one of the key problems of renewables discussed gas. Soon solar/PV systems will also be. Furthermore,
throughout the book. Since some of the electricity being the advantage of these renewable resources of energy is
generated can be used to extract hydrogen from water, that they are not dependent upon fossil fuels. In short,
which can then be stored, for later use, society will have energy independence can be achieved, not in 30–40 years
a more continuous supply of power. As Berry et al. but more likely the next decade. And this is the goal of
(1999) put it in economic terms, the combination of California Governor Schwarzenegger in his Executive
solar/PV and hydrogen production leads to ‘‘savings in Order issued in May 2004: 200 hydrogen fueling stations
several areas and the results suggest that the SPV by the year 2010. His 250+ member Hydrogen Highway
capacity would be cost justified in its own right. Network issued its RoadMap in January 2005 providing
However, we also note that adding the SPV capacity an outline and implementation plan on just how to
changes the LDC for the fuel cell. Further savings could achieve this goal and others (Hydrogen Highway
be obtained by adding a fuel cell that has low capital Network, 2005).
costs, even if its efficiency is quite low’’ (Berry et al.,
1999, p. 20). With the costs of fuel cell construction and
operations rapidly declining annually by a factor of two 2. Critical concerns as opportunities
(SFCC, 2003), the total costs for hydrogen and its low
costs for the market will make it extremely competitive There are eight critical opportunities that need to be
in a short time. optimized in making the transition from a fossil-fuel-
Clean biomass, which includes non-genetically mod- powered economy to a green-hydrogen-powered econ-
ified sustainably grown energy crops and sustainable omy. First, innovations and advanced technologies
retrievable agriculture wastes, could also be an impor- emerge historically when government helps clear the
tant near-term source of hydrogen for fuel cell way for the introduction of mass markets. Edison, for
vehicles and electricity generation. Clean biomass is a example, was only able to establish a commercial
proven source of renewable energy that is utilized electricity company when the costs could first be
today for generating heat, electricity, and liquid ‘‘supported’’ by local governments and then be made
transportation fuels. Furthermore, clean biomass can available at reasonable prices to the mass market. Since
be used to produce hydrogen through a process the end of the WWII, the industrialized nations have all
called gasification in which the biomass is converted to used government research and development monies to
a gas and hydrogen is extracted. Virtually no net support the commercialization of everything from diesel
greenhouse gas emissions result from these bio- fuels to the Internet. In fact, American government
mass processes because a natural cycle is maintained officials traditionally justify the funding of national labs,
in which carbon is extracted from the atmosphere NASA and even the US Department of Defense, based
during plant growth and is released during hydrogen on the ‘‘dual use’’ or ‘‘transfer of technologies.’’
production. Replanting and reforesting are prerequisites Government incentives, tax breaks, and even procure-
for maintaining a renewable hydrogen supply from ment are critical to the commercialization of new
biomass. technologies. Government assists in the introduction
The potential of new technologies for storage also is of new technologies in still another way: regulations and
promising. For example, the promise of the production standards. Today, the advancements of technology to
of hydrogen from renewable energy comes from wind speed communications and to slow global warming are
developers themselves. In personal discussions, Roman- all linked to government regulations and oversight
witz (2002) the CFO at Oak Creek Wind Development (Cros, 2001; Del Chiaro and Heavner, 2003). California
in California stated: has often helped to lead the way in this regard with its
emissions controls, environmental laws, and atmo-
Conventional Pumped Storage has a capital cost of spheric regulations. ‘‘Renewable energy is not only
around $1,500 per KW and a turn around efficiency good for our economic security and the environment, it
of around 72%. The concepts that Iam working on creates new jobs,’’ Kammen (2004) noted and then
are anticipated to provide a very substantial im- states ‘‘At a time when rising gas prices have raised our
provement to those numbers both in terms of Capital annual gas bill to US$240 billion, investing in new clean
Cost and in terms of better effi[Link] energy technologies would both reduce our trade deficit
Storage technologies have costs and performance in and re-establish the US as a leader in energy technology,
that same range, such as Compressed Air and the the largest global industry today.’’ The hydrogen
Chemical Storage of Ionologyy Ion exchange economy is no different (Clark and Bradshaw, 2004).
technologies may be more cost effective and efficient Appropriate government regulations can ease the
by a significant margin. (Romanwitz, 2002, p. 1) way for public/private partnerships. Together, the
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government and commercial sector can work collabora- able energy and environmental industries.’’ For exam-
tively to create new industries and jobs, as evidenced by ple, CalPERS, the world’s largest public investment
the zero emission vehicle (ZEV) regulations in Califor- fund (over $35 billion invested annually) has committed
nia begun in the early 1990s with a focus on electric $200 million in March 2003 for Environmental Tech-
battery-powered vehicles. California’s progressive reg- nologies financing. The staff and board note that
ulatory regime has stimulated the market for clean hydrogen and fuel cells, along with renewable energy,
running automobiles as well as new advanced technol- are all part of its portfolio for economic growth.
ogies for the vehicles themselves and the infrastructure The US hydrogen industry currently produces more
that serves them (Kawahara, 2002). than 9 million tons of hydrogen per year (enough to
With regard to regulation or privatization, the power 20–40 million cars or 6–12 million homes) for use
international carmakers have been the driving force in fertilizer and chemicals production, petroleum refin-
for change while the Detroit carmakers have either ing, metals treating, and electrical applications. Accord-
stalled or sued the state of California to stop the ing to the US Department of Energy, steam reforming
regulations from being implemented. Only in the late of methane (natural gas) and oil accounts for 95% of the
summer of 2003 did GM drop its lawsuit against the hydrogen produced in the US. Other methods of
ZEV regulations and finally join the California Fuel Cell hydrogen production are gasification of fossil fuels
Partnership (CFCP) and the worldwide effort to develop (e.g. coal), splitting water using electricity (electrolysis),
and market clean running cars. Nevertheless, the US heat or light, and thermal or biological conversion of
carmakers now have significant programs to develop biomass.
fuel-cell-powered hydrogen automobiles and are looking Hydrogen can be produced from renewable resources,
to market penetration as early as the beginning of the such as biomass; however, the process emits some
next decade. Yet, for a variety of reasons, American carbon dioxide. Using wind, hydroelectric, or solar
automakers remain behind their international competi- power, to electrolyze water can also derive hydrogen.
tors in the mass market, as exemplified by the hybrids. Today electrolysis is still expensive, but companies like
Over the years, in California, both the California Stuart Energy in Toronto and Norsk Hydro in Norway
Public Utility Commission (CPUC) and the Integrated see the costs rapidly declining. Others like Proton (now
Renewables California Energy Commission (CEC) listed as Distributed Energy Systems Corporation,
(2003) have funded the development and deployment DESC on Nasdaq) integrate hydrogen systems for
of renewable and distributed technologies. The con- stationary power supply to reduce costs even more.
sumers of power literally funded natural gas and electric Third, fuel cell R&D needs to be more highly
vehicle infrastructure through rate paying, which leveraged at the state and federal levels. Stationary fuel
exemplifies the need for state regulators to become cells have moved from research uncertainty into the
more involved in the initial investment in hydrogen marketplace. In the spring of 2001, partly in reaction to
fueling infrastructure. By utilizing a dedicated account the California energy crisis, a government–industry
similar to the approach adopted by the CPUC to fund partnership known as the California Stationary Fuel
the low emission vehicle refueling infrastructure, parti- Cell Collaborative was formed with leadership from the
cipating states and nations also will be able to jumpstart Chairman of the California Air Resources Board, The
the necessary public investment without constraining National Fuel Cell Center at the University of Califor-
their general revenue budgets, while simultaneously nia, Irvine, and the governor’s office. The Collaborative
attracting private investment. was able to mobilize and leverage resources from the
Second, small and medium size enterprises (SMEs) public sector and gather support from the growing fuel
need to be brought into the hydrogen research, cell industry. Part of its mission is to also seek
development, and deployment playing field. In Califor- opportunities for fuel cell deployment in public build-
nia, the combination of research, development, and ings while encouraging businesses to locate in the state.
implementation for new advanced technologies by Based on the success of that initiative, several states
SMEs has been one of the key ‘‘economic engines’’ for (New York, Connecticut, Pennsylvania and Florida
stimulating growth over the last few decades. With a among others), European Union, Japan and other
number of world-class universities and national research nations now have similar programs. The micro-fuel-cell
labs in the state, the transfer of innovation to the industry stands ready to be the leading edge of large-
marketplace has been astonishing and fueled the growth scale profitability for the rest of the industry. It is
of the ‘‘Golden State.’’ For example, SMEs in the leveraging public funds in small and large companies.
software and communications sector have developed The capital generated could exceed the expectations of
and grown at a dramatic rate in recent years. the most ambitious public programs, similar to the
The energy and environmental sectors are now on a leading growth edge of the micro-computer industry.
similar trajectory. ‘‘California’s Next Economy’’ (Clark Once profitable, the fuel cell and allied hydrogen and
and Feinberg, 2003) will most certainly include ‘‘sustain- renewable industries will evolve in a self-sustaining way,
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more effectively solving the technical challenges that Hydrogen distribution via high-pressure cylinders and
lead us to the large-scale sustainable energy economy. tube trailers has a range of 100–200 miles from the
Fourth, since hydrogen is a paradigm change of production facility. For longer distances of up to 1000
enormous magnitude, the need for a robust and well miles, hydrogen is usually transported as a liquid in
thought out transition is critical. In order to accelerate super-insulated, cryogenic, over-the-road tankers, rail-
both the timely development and installation of the cars, or barges, and then vaporized for use at the
hydrogen economy, the use of natural gas needs to be customer site. Hydrogen can be stored as a compressed
seen as merely a transition fuel for producing hydrogen. gas or liquid, or in a chemical compound. The key issue
The key is to ensure that the expenditures for reforming is not to have stranded or sunk costs made in the
natural gas are coupled with the electrolyzing of infrastructure for natural gas or other methods convert-
renewable electricity sources into hydrogen. It would ing fossil fuels into hydrogen. The same, and even
be a financial and environmental disaster to delay this cheaper costs, can be invested in renewable energy
paradigmatic revolution 30–50 years if large investments production that is converted into hydrogen.
were made solely in the central electric grid and natural Fifth, consideration must be given to the conventional
gas or liquefied natural gas infrastructure rather than notation that gasoline and now LNG will be part of the
devoting the necessary funds to lowering the costs spent transition to a hydrogen economy. One of the major
on renewable production of hydrogen. issues for developing a hydrogen economy concerns the
In the short term, most of the hydrogen will come world’s dependency on oil and coal. That is why there
from distributed production using natural gas (steam has been a growing market for natural gas. More and
reformation) and/or electricity (electrolysis). The ability more regions have installed natural gas facilities because
of the central utility grid to provide affordable, reliable, it is cleaner burning. However, as natural gas is
and stable power will be enhanced through a greater increasingly used for power in homes and fuel for cars
reliance on more distributed and regional power and buses, the basic energy security problems remain, as
generation, including ‘‘on-site’’ generation from renew- increased usage will create greater demand for more
able energy technologies and from the cogeneration of imported oil and gas at higher prices with reduced
combined heat and power. Those in public policy and stability.
industrial planning should take an advantage of this The result is we now face a potential global shortage
short- to mid-term transition phase, and plan capital of natural gas. Many government and industry leaders
investment strategies accordingly. support increased production in North America, which
The economic advantages of distributed energy is far more costly than the immediate use of clean
resources are diverse and compelling, although realizing hydrogen. Other government and industry proponents
these benefits requires further regulatory market reform. argue for LNG as the solution for increasing supplies to
Moreover, the application of distributed fuel cell meet the demands. LNG, at best, is a transitional
cogeneration can save enough natural gas in displaced solution. Apart from the volatility and dangers asso-
power plants, furnaces, and boilers to compensate for ciated with LNG, the costs to install environmentally
much of the gas needed to fuel hydrogen vehicles. In safe facilities are staggering. And the transport of
addition, because the generation of energy will be far LNG requires even more costly infrastructures. Thus,
more dispersed and clean, end users will be less given the ability for hydrogen to help mitigate supply
dependent on centralized fossil-fueled power plants. and price volatility associated with the use of natural
The analogy to the Internet is very significant and a gas as well as the LNG environmental impact, it
good working model should be considered. makes sense to dedicate a portion of the LNG costs
Since there has already been significant private toward the creation of renewable and hydrogen fuel
investment across the venture capital, automotive and production.
fuel industries, the market is now ready to invest in the Today, hydrogen is primarily used as a feedstock,
hydrogen economy. It would be counterintuitive to intermediate chemical, or specialty chemical. Many
existing financial and research tenets as well as need- industries and academics envision a hydrogen future,
lessly expensive to defer for decades further program which will use hydrogen as an energy carrier or fuel. (See
developments. USDOE and EU among many others below in End-
Hydrogen is currently transported by pipeline (more notes.) Now NASA is the primary user of hydrogen as
than 400 miles in the US today) or by road via cylinders, an energy carrier.
tube trailers, and cryogenic tankers, with a small Hydrogen energy density per volume is quite low at
amount shipped by rail or barge. Pipelines, which are standard temperature and pressure. Storing the hydro-
owned by merchant hydrogen producers, are limited to gen under increased pressure or storing it at extremely
a few areas in the US where large hydrogen refineries low temperatures as a liquid can increase volumetric
and chemical plants are concentrated, such as Indiana, energy density. High-pressure storage and improved
California, Texas, and Louisiana. vehicle efficiency enable hydrogen fuel cell vehicles to
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increase their payload and range. Commercial compa- Seventh, energy efficiency and conservation are
nies, such as Quantum, have both the advanced critical elements of an integrated transition to a
technology needed and mass market products available sustainable hydrogen future. Energy conservation and
for installation. efficiency are the most effective ways to both decrease
Central to the entire discussion, however, is the sixth demand and address the security issues. Improved
issue of concern: the infrastructures for energy, trans- efficiency can offset and possibly slow down net growth
portation, and IT. Installed costs for renewable energy in energy demand. California and other states are doing
fueling stations in 2003 ranged about $1 million per just that through a number of programs. State incentives
station. In 2004, the costs have been reduced to encourage electric and gas utilities to invest in customer
approximately $700,000 and are rapidly declining. energy efficiency and in distributed generation. Two
Furthermore, regions in California and elsewhere are such examples of the latter are the CPUC Self
installing stations today. South Coast Air Quality Generation subsidy program designed to deploy ‘‘clean’’
Management District (SCAQMD) in Southern Califor- and energy efficient on-site distributed energy and
nia is one of the world leaders. Other areas in the USA combined, heat and power technologies, and the Flex
and in the EU are doing much the same. Your Power Programs (2001) in California initiative, a
By the spring of 2003, over 100 hydrogen-refueling public service that alerts citizens to the dangers of over
stations were operating in the USA. In Southern consumption of power. Time and time again, saving
California alone, according to the SCAQMD, nine energy has proven to be better for the pocketbook and
hydrogen fueling stations now exist (January 2004) with the environment.
more than double that was planned (South Coast Air Public buildings in California are using the Leader-
Quality District (SCAQMD), 2003, 2004). Los Angeles ship in Energy and Environmental Design (LEED)
has two Honda hydrogen fuel cell cars now in service standards for construction whereby new and recycled
using Air Products portable hydrogen storage for materials are saving energy costs and providing a
refueling. San Francisco plans on doing the same in cleaner atmosphere. Soon, the LEED standard may
2004 starting with two hydrogen fuel cell cars as well include hydrogen-powered fuel cells. Cost analyses are
(San Francisco (SF) Announces Hydrogen Fuel Cell changing as well, providing a far more accurate
Pilot Program with Honda, 2003). accounting of the life cycle analysis of products and
Unfortunately, currently the number of hydrogen- externalities such as the negative impact of mobile and
fueled cars are so few in number, that they make stationary sources of pollution on the health and safety
refueling stations economically unfeasible. That is why a of citizens. These ‘‘environmental justice’’ issues are
number of companies and regions, including SCAQMD, critical to preventing global warming as well as local air
are advocating and installing ‘‘hydrogen energy sta- and environment pollution.
tions’’ which can supply stored hydrogen power to Hydrogen technology will complement, rather than
homes and business from renewable resources until the compete with, energy efficiency, especially in vehicles.
demand for hydrogen fuel for vehicles arrives (Hydro- Highly efficient vehicles (ultra-light, ultra-low-drag,
gen Highway Economic Team, 2004). The future, highly integrated design) will greatly accelerate market
however, may well see hydrogen-powered fuel cells capture by hydrogen fuel cells. Indeed, there are strong
located in homes for both domestic power and fuel for engineering synergies between highly efficient vehicle
the family cars. Furthermore, leveraging existing solar- designs and fuel cells in cars, and these advancements
powered electric vehicle recharging stations at various are under development throughout the industry and are
public parking lots could serve as a key inter-modal in the current and next generation gasoline hybrid
transportation component to station feasibility (Waller- electric vehicles. Markets are rapidly developing in the
stein, 2004). public sector and within 3–5 years will be available to
Regarding a hydrogen infrastructure, the familiar mass market consumers according to some industry
‘chicken-and-egg’ issue need not limit the evolution of analysts and companies. In the auto industry, hybrid
fuel cells and hydrogen technology. Rather, one can vehicles have already begun the transition.
envision a distributed model for hydrogen production Eighth, great priority needs to be placed on renewable
and delivery to integrate the gas, electricity, building, sources of energy in the creation of hydrogen. Clearly
and mobility infrastructures. Instead of building a costly one of the key factors in ‘‘driving’’ or creating a market
new distribution infrastructure for hydrogen, excess for new clean technologies is the ability to set bench-
existing gas and electricity distribution capacity can marks or standards, both voluntary and mandatory.
supply local hydrogen production needs (Ogden, 2003; Renewable portfolio standards should emphasize gov-
Ogden et al., 2004). Only after this decentralized ernment and the private sector working together. We
approach built up a large hydrogen market in buildings call this the ‘‘civic markets’’ approach rather than the
and vehicles would central production merit substantial government regulatory or the market privatization
investment. extremes.
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California and Texas, among a growing list of other Rifkin. Also heavily involved as editors and writers are
states, have done this successfully by developing Renew- Dr. Joel Swisher, Tod O’Connor and Glenn Rambach.
ables Portfolio Standard (RPS) (2003) and other states Other contributing members of the Scientific Advisory
are following their lead. California has enacted a 20% Committee include: Dan Adler, Dr. Ted Bradshaw,
RPS by 2017 but according to most estimates 2010 is Jerry Cole, Dr. Greg Greenwood, Randell Iwasaki, Ron
seen as being the actual date for achieving that bench- Kenedi, Dr. Tim Lipman, Dr. Alan Lloyd, Dr. Greg
mark. California Governor Schwarzenegger has set even Morris, and Craig Perkins. Short Bios on each
higher standards of 30% by 2017. The same benchmarks Committee member are in alphabetic order.
are being discussed for the transition to a sustainable Daniel M. Adler is currently the senior analyst in the
hydrogen economy. California and several other states design and implementation of California’s Renewable
also have enacted renewable investment programs Portfolio Standard program in the Division of Strategic
through system benefits or public goods charges, which Planning at the California Public Utilities Commission.
have played a significant role in improving energy He is also the strategic planning analyst for distributed
efficiency and reducing the cost of deploying commer- generation and distributed energy resources for the
cially viable renewable products and systems. Commission.
As fuel cell system costs decline, the economics of fuel Professor Ted K. Bradshaw, Ph.D. is an Assistant
cells—supported by the public sector through buy- Researcher in the Human and Community Develop-
downs and tax breaks—will gradually be able to be ment Department of the University of California Davis
transformed into more demand-driven business and where he teaches community development and econom-
consumer markets. This process should be aided by the ic development. He is the chair of the Graduate Group
multiple economic benefits of distributed stationary on- in Community Development. His current research is on
site generation and fuel cell vehicles. Importantly, there the impact of the California energy crisis on the state
presently are hindrances to these benefits being included economy, new local economic development strategies,
in project planning assessments that need to be and community development organizations. In addition,
addressed, such as valuing the full fuel cycle emissions he is the co-author of Planning Local Economic
of various vehicle types and the valuation of stationary Development, the leading text for college economic
fuel cell systems and other DG/CHP in distributed development courses in the US.
generation networks, particularly where they are supply- Dr. Woodrow Clark, Chair, was formally Senior
ing important services to the grid as well as power to the Policy Advisor for Renewable Energy. Emerging Tech-
local loads. nologies and Finance/ Deputy Director in the Gover-
nor’s Office of Planning and Research for the State of
California and a key architect of the hydrogen program
3. Summary and conclusion in Governor Gray Davis’ and now Schwarzensegger’s
administration. He finished a book about the lessons
Clean environment and renewable energy lead to a learned from the California Energy Crisis, ‘‘Agile
healthier atmosphere. Global climate is a concern of all Energy Systems’’ (Elsevier Press, 2004) with Prof. Ted
citizens. Our children are depending on us to do Bradshaw. Currently he is a Senior Fellow at the Milken
something today. Not do anything and leave the Institute in Santa Monica, CA.; Adjunct Professor of
problems to the research laboratory or future genera- Entrepreneurship at Pepperdine University in Malibu,
tions. Aggressive improvement in energy efficiency, CA; Energy Director for LA Community College
along with well thought out and executed transitional District; and finishing another book, ‘‘Qualitative
strategies, are essential to a clean environment. Economics: toward a science of economics’’.
However, to enable sustainable growth, the society Jerald Alan Cole is the co-founder of Hydrogen
needs renewable energy production and the constant Ventures, LLC. His management consulting company
development and commercialization of advanced tech- provides assistance to early stage alternative energy
nologies. New markets must be sought and created. companies with product development, market position-
Perhaps most significantly new infrastructures that ing, and raising debt and equity capital.
merge energy, environment, water, waste and transpor- Dr. Gregory B. Greenwood was the Climate and
tation must be built today in order to support a green Bioenergy Science Advisor for the California Depart-
hydrogen economy. The time is now. ment of Forestry and Fire Protection and was formerly
Deputy Assistant Secretary for Resources and Science
Advisor for the California Resources Agency. Dr.
Acknowledgments Greenwood was Chairperson of the Joint Agency
Climate Team for the state of California between
The Green Hydrogen Scientific Advisory Committee: 2000–2004 and led the development of the proposed
The primary authors: Dr. Woodrow Clark and Jeremy climate change policy for the state. Currently he is
 ARTICLE IN PRESS
W.W. Clark II, J. Rifkin / Energy Policy 34 (2006) 2630–2639 2637

working on climate change issues for the UN in construction and environmental protection and resource
Switzerland. efficiency. He is responsible for Santa Monica being
Randell H. Iwasaki is currently Deputy Director, selected as one of the Five Southern California
Maintenance and Operations for the California Depart- Hydrogen Cities by the South Coast Air Quality
ment of Transportation. He is a professional engineer Management District.
with a broad background in the transportation field and Glenn D. Rambach was a leading engineer in hydrogen
extensive expertise in the operation and maintenance of at Lawrence Livermore national Laboratory for almost
state highways and bridges. 20 years. He worked at the Desert Research Laboratory
Ron Kenedi is a pioneer in the creation of sales outside of Reno, Nevada. And is now currently Director
networks and marketing campaigns to bring solar of New Technology at Tenneco Automotive in Grass
electricity to the market and created the standard and Lake, Michigan. He is responsible for assessment of
model for selling solar products and systems. He is future risk in business opportunities regarding the
currently General Manager of the Solar Division at expected market growth of fuel cells and allied
Sharp Electronics for North America where the technologies.
company now has over 35% of the market. Jeremy Rifkin, Co-Chair, is the author of a dozen
Dr. Timothy Lipman is an Assistant Research Scientist books. His Hydrogen Economy was translated into
with the Energy and Resources Group and an Assistant numerous languages and became a best seller. Rifkin is
Research Engineer with the Institute of Transportation the founder and head of the Foundation for Economic
Studies at the University of California—Berkeley. Dr. Trends. His latest work involves being the hydrogen
Lipman’s research focuses on fuel cell systems, com- energy advisor to the EU and he has completed another
bined heat and power (CHP), renewable energy, and volume on European Globalization.
hydrogen infrastructure development. He is also a Dr. Joel Swisher is an internationally recognized
research track director for the Hydrogen Pathways expert in the analysis, design, and evaluation of
Project at the University of California, Davis. building-energy systems, utility energy efficiency, dis-
Dr. Alan Lloyd was Chairman of the California Air tributed generation, and emission reduction programs.
Resources Board and an internationally known expert He is a widely read expert on local and community
in public policy regarding clean powered vehicles. He is energy programs. Currently, he is the head of the Rocky
a founder and past President of the California Fuel Cell Mountain Institute’s (RMI) Energy and Resource
Partnership as well as the co-founder and co-Chair with Services Team.
Dr. WW Clark of the California Stationary Fuel Cell
Collaborative. Currently, he was appointed Secretary,
California Environmental Protection Agency. References
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