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Secretary of Energy Spencer Abraham's keynote address to the NHA's 15th Annual U.S. Hydrogen Conference, April 28, 2004

First, let me congratulate you on choosing California as the site of this year’s meeting. It is a fitting locale. This state is among the true leaders in pushing forward into the hydrogen future.

Our Department has been proud to partner on several major hydrogen initiatives in the Golden State – one with the Sunline Transportation System in Thousand Palms; another with AC Transit in Oakland; and, of course, the California Fuel Cell Partnership. And we are very proud that so many of the hydrogen demonstration projects the Department of Energy has recently announced will be located in California. I particularly want to commend Governor Schwarzenegger for his announcement last week of the California Hydrogen Highway Network. That is precisely the sort of action and leadership that is required to take this wonderful idea we all share from the blueprints and drawing boards to the roads and highways and showrooms.

The California Hydrogen Highways proposal is an exciting and inspired initiative. And the U.S. Department of Energy and the Bush Administration look forward to working with Governor Schwarzenegger and this state to help develop the technology to enable building a network of fueling stations that will support tomorrow’s cars and trucks.

The people in this room know the case for hydrogen, and know how it will help us meet our growing energy challenges. The demand for oil is skyrocketing, not just in the United States but around the world, particularly in developing nations like China and India.

Tied to the growing demand for oil is a host of environmental challenges, from air pollution and its effects on human health to questions about global climate change.

As much as anyone, you know that developing an alternative way to fuel motor vehicles, or to power our homes and businesses, would be a key to meeting these looming energy and environmental challenges.

The last time we met, a year ago, I spelled out the details of President Bush’s historic hydrogen fuel proposal, which he had just announced in his State of the Union address.

Though it seems like just yesterday, in reality a lot has happened in the past year to move us down the road to the hydrogen economy. If there is anything I would like you to take from this year’s meeting, it is an understanding of the depths of our commitment to hydrogen, and of the concrete steps we have taken and are continuing to take.

So my mission this morning is to provide you with an update on the progress we have made in the past year, along with an indication of where we go from here.

When we met last year, President Bush’s hydrogen fuel cell proposals were fresh in the public’s mind. On the biggest stage available to a sitting President – his State of the Union message to Congress and to the nation – he pledged the resources and commitment of the federal government to pursuing the hydrogen future.

As he said that night, we want to move hydrogen fuel cell-powered cars from the laboratory to the showroom within the next two decades, so that “the first car driven by a child born today could be powered by hydrogen, and pollution-free.”

Those weren’t just words. We backed that pledge with ambitious funding requests. And we set to work to implement the President’s vision.

For example:

• In the spring of last year, I went to Europe to brief foreign leaders about our hydrogen plan. I met with heads of state, fellow ministers, and representatives from industry and academia to come up with ways we could work together on hydrogen. At the International Energy Agency in Paris, the United States proposed forming an International Partnership for the Hydrogen Economy. It was our belief that such a consortium could accelerate the international push to the hydrogen economy by institutionalizing joint research and pooling resources.

• In July, we announced that our Department was awarding grants totaling $75 million for advanced hydrogen fuel cell research and development projects. We selected 13 firms and educational institutions in 12 states for new research to reduce fuel cell cost and improve durability of advanced fuel cell technology for vehicles, buildings and other applications.

•  In November, we hosted the inaugural meeting of the International Partnership for the Hydrogen Economy. We brought together 15 countries and the European Commission to work on fuel cells and other energy technologies of the future.That meeting was a success, and has helped launch widespread international cooperation on research for fuel cell high temperature membranes, hydrogen storage materials, and renewable energy production. The IPHE allows all the nations interested in hydrogen to pool scarce resources, to have our scientists and engineers share knowledge, and to lay important pre-competitive groundwork, like developing interoperable codes and standards. I believe the creation of the IPHE will speed the coming of the hydrogen revolution, and I become more and more convinced of that every day.

• In February, just two months ago, we saw several milestones achieved. First, we announced the launching of hydrogen education workshops to inform journalists, legislators, regulators, and other policy makers on issues dealing with hydrogen. These classes – “Hydrogen 101,” I like to call them – will go a long way toward breaking down one of the biggest barriers to progress on hydrogen, which is unfamiliarity with the issues among a populace that has only known the petroleum-based internal combustion engine. Since this announcement, we have held workshops in Lansing, Michigan, and Austin, Texas, with more to come.

• We also got together with General Motors, Dow Chemical, and the state of Texas to announce a plan to generate electricity from hydrogen created as a coproduct at Dow’s manufacturing site in Freeport, Texas. Not only is this test a first for evaluating the broad industrial use of automotive fuel cell technology, it is the first time a carmaker has used its fuel cell technology to provide electricity and heat for buildings and factories.

• Finally, February also saw the release of a National Academies report confirming what those of us in this room have been saying – the transition to hydrogen will transform society for the better. Fundamental and dramatic benefits for our energy security and the environment will result … and, significantly, this bright future is technologically attainable.

• One month later, just this past March, the Department of Energy released our Hydrogen Posture Plan, outlining the activities, milestones and deliverables that we intend to pursue to support America’s shift to a hydrogen-based transportation energy system. We identified milestones for technology development over the next decade, leading up to a commercialization decision by industry in 2015, and we further committed to taking the steps required to achieve those milestones.

• Finally, just last week, I was in Brasilia to sign an agreement with our Brazilian counterparts for our governments to work together on joint hydrogen research and development. These efforts are paying dividends. In the 15 months since the President’s bold announcement, significant progress has been made through DOE-supported research at national laboratories and fuel cell companies. Consider:

• The high-volume cost of automotive fuel cells has been reduced from $275 per kilowatt-hour to $225 per kilowatt-hour using innovative processes for depositing platinum catalyst. That’s a nearly 20 percent improvement in a short time period, and puts us on the path to a cost competitive target of less than $50 a kilowatt-hour.

• The cost of natural gas-based hydrogen production has been reduced from $5.00 per gallon gasoline equivalent to $3.60, using innovative reforming and purification technologies. We’re aiming to get to $1.50 per gallon gasoline equivalent to be cost-competitive with gasoline.

• And in Las Vegas, the world's first energy station that co-produces electricity and hydrogen from natural gas was built. This achievement demonstrates the synergy between the transportation and electric generation sectors for the hydrogen economy.

That’s why I was very happy yesterday to travel to Wayne State University in Detroit – the Motor City – to announce that the Department of Energy is awarding more than $350 million in hydrogen research grants to projects that will support the President’s Hydrogen Fuel Initiative. An additional $225 million will be provided by private sector partners. That makes a total of $575 million for 30 awards including over 100 partners.

The cutting-edge projects we announced yesterday will build on the successes I just mentioned and take us farther.

These projects are the culmination of a lengthy merit-reviewed, competitive solicitation process. They will address four key areas, and consist of:

• First, $150 million for on-board hydrogen storage, to ultimately allow hydrogen vehicles a greater than 300-mile driving range without impacting cargo or passenger space. We believe that hydrogen storage is the critical technology to enable the hydrogen economy, because there is no storage method available today that meets consumer requirements. These projects will involve experts at more than 30 universities and DOE national laboratories, who will focus on advanced materials to revolutionize the way hydrogen is stored;
• Second, $190 million for vehicle and infrastructure projects to demonstrate integrated and complete system solutions while operating in real-world environments. In these projects, major auto and energy companies, who are matching the taxpayers’ dollars one for one, will operate fuel cell vehicles and establish hydrogen refueling sites in places such as Orlando, Florida, and Detroit, Michigan. These tests will help guide future research priorities in areas such as thermal and water management – an issue in warmer climates, as well as freeze/thaw conditions – an issue in cold climates. These projects, many of which will be sited in California, will also identify critical system-integration issues between the vehicles and the refueling stations, so that national solutions can be developed.
• Third, $13 million to research fuel cell durability in real-world environments.  Tremendous progress has been made in fuel cell performance. However, durability remains a key technology barrier. Projects will also be funded for consumer electronic applications. This near-term market application will enable development of, and experience in, manufacturing methods for fuel cells.
• Finally, $4.5 million for a hydrogen education effort that will engage students in science and technology and help build the next generation workforce. These efforts will extend beyond the “Hydrogen 101” workshops I mentioned earlier. We are particularly excited about prospects for creating hydrogen technology curricula for middle and high schools.

We are enthusiastic about all of these projects. They represent action for the future, and leave me convinced that the hydrogen future we speak about in such glowing, rosy terms will indeed come to pass – and soon.

If I may, I would like to take the opportunity to make another announcement. In partnership with the National Hydrogen Association, the Department of Energy recently sponsored a new student competition for university teams to develop and design a hydrogen fueling station. More than 15 North American universities signed up to participate. We received many outstanding proposals. The top five contestants – as judged by representatives from DOE, NHA, as well as competition sponsors ChevronTexaco, Swagelok ,and Natural Resources Canada – were selected to present their designs at Hydrogen Expo USA. And we are delighted to have the teams from Humbolt State University, U-C Davis, the University of Missouri-Rolla, the University of Toronto, and the University of Victoria represented here this week.

Of course, only one school could win the grand prize. So on behalf of the Department of Energy and our generous co-sponsors, it gives me tremendous pleasure to announce that the winner of this first-ever Hydrogen Fueling Station Design Competition is the University of Victoria in British Columbia.

Their prize for capturing this competition is an all-expense paid trip here to California this week. Congratulations, you should be very proud of what you have achieved.

Ladies and gentlemen, that is a summary of our year, and what we have done since the President unveiled his forward-looking, revolutionary hydrogen proposal.

I want to thank all the people here. Without the work that this organization and the individuals who are a part of it have been doing, we wouldn’t have made so much progress.

We very much appreciate it. We appreciate the teamwork and the partnership that you’ve offered. And we appreciate the fact that you have worked with us, in such a constructive way, to bring about the sort of change that will have such a profound and positive effect on the lives of every American.

Of course, not everyone is sold on hydrogen or the approach we’ve taken. Some argue it can’t be done. Some are arguing that we’re trying to move too fast. Others argue that we’re not moving fast enough – that we should be able to do this overnight.

To all of them I say this: We have taken a carefully planned approach. We are moving forward on a pathway that we have spent a lot of time constructing. It was developed by top-notch experts – the best work of the best professional people at the Department of Energy, in industry, and in the universities. Its progress is overseen by a high-level, very independent-minded Executive Committee.

It is a measured course. We didn’t decide to go down this road until we were convinced that the probability of success was great enough to justify it.

And, importantly, we are moving at the pace that the experts identified as being the best pace, and we are capable of accelerating this effort when the research we are conducting dictates.

Ladies and gentlemen, we are absolutely committed to this program. And we are absolutely committed to its success. At a time when Congress can’t pass an energy bill … when gasoline prices are at record levels … I think the American people appreciate the fact that the people in this room, the President of the United States, and the Department of Energy, have committed to putting this nation on a long-term course toward greater energy independence and a healthier environment.

Yes, we have taken on a gigantic challenge. But we have the capability to bring about this new era. We have the financial resources to bring it about. We have the scientific expertise that is required for a project of this scope.

And we have a President with complete commitment to this mission … a Department of Energy willing to work as hard as necessary to succeed … and, in this organization, the innovators and entrepreneurs to see this dream through to reality.

Thank you for the work you continue to do on behalf of America’s energy, economic, and environmental security.

[5/19/2004 10:46:22 AM] > energy.gov : Speeches : National Hydrogen Association 15th Annual U.S. Hydrogen Conference and Hydrogen Expo USA ©2003. All Rights Reserved. A Publication of the National Hydrogen Association.
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