Wednesday, October 15, 2008

Money & Business

USN Current Issue

Living Without Oil

As war looms, the search for new energy alternatives is all the more urgent

By Marianne Lavelle
Posted 2/9/03
Page 2 of 7

But much more money and an even broader government commitment will be needed to reverse the current U.S. trajectory toward greater oil addiction. After all, largely because of the popularity of gas-guzzling sport utility vehicles, the average fuel economy of the 2003 fleet of cars sank 6 percent below the peak set 15 years ago. Critics say that until the new technology is ready to help the nation kick the oil habit, the Bush administration should focus on breaking the addiction step by step. Fuel-economy regulations, they argue, could force greater use of the breakthrough hybrid gas-electric engine and other lesser-known innovations that can squeeze more miles out of every gallon of gasoline.

Japan's government, for example, vows to put 10 million "ecofriendly" cars on its roads by 2010, a number it hopes will include not only 50,000 hydrogen fuel cell cars but also natural gas vehicles, electric autos, and hybrids. Japan's auto industry views that as an attainable goal, given the tax incentives and subsidies that support it. Stephen Tang, president of Millennium Cell, an Eatontown, N.J., firm that has developed a hydrogen fueling system, is hopeful that a similar commitment will catch fire here. "If we can get the oil man to say the word `hydrogen,' that's significant progress," says Tang.

In his so-called FreedomFUEL initiative, the president zeroed in on what is unquestionably the most promising alternative fuel. Hydrogen is everywhere, and when used to power a special battery called a fuel cell, its only waste product is water. It's an alluring option, but slippery. Hydrogen is extremely difficult to harness, store, and distribute. And many people are most familiar with hydrogen for its darkest moment: the 1937 Hindenburg dirigible disaster. However, scientists reported in 1998 that the zeppelin's flammable coating, not its fuel, ignited this deadly blaze.

Lip service? All of the major oil firms have investments in hydrogen; in fact, BP's new motto is "Beyond Petroleum." But energy analyst Fadel Gheit of Fahnestock & Co. says the corporate commitment is "minuscule." The Royal Dutch/Shell Group's promised $1 billion for renewable energy over the next four years fades beside its $24.6 billion capital investment, mostly in oil and natural gas, in 2002 alone. "These companies don't want to be left out in the event that some of these ventures come to fruition," Gheit says, but "they're not holding their breath."

How soon will cars that run on hydrogen be on the market? "My answer has always been `four years after we figure out how to have hydrogen at the corner gas station,' " says Thomas Moore, vice president of DaimlerChrysler's advanced car division. Perhaps scores of firms are working on solutions. DaimlerChrysler, which has earmarked $1.4 billion for fuel cell research from 2001 to 2004, has worked with Millennium Cell on a concept car, the Natrium, named after the Latin word for sodium. It is fueled with a water solution of the compound sodium borohydride, and a chemical reaction releases hydrogen as needed. Energy Conversion Devices, a Rochester Hills, Mich., company chaired by former General Motors CEO Robert Stempel and developer of the nickel metal hydride battery that now powers hybrid cars, has worked with ChevronTexaco to convert that same technology into a hydrogen storage and delivery system. A metal hydride element aboard the car would absorb hydrogen, like a sponge, then release it as needed into the fuel cell to power the vehicle.

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