Subsidies hydrogen

The price of oil itself is not clearly accounted for until the subsidies for exploration and the actual cost of Middle East defense is added. Only recently have the true costs of fossil fuel energy been studied, from defense commitments to long term health care for nationwide respiratory illnesses. Hydrogen must face economic comparisons to gasoline, but we notice that the oil and gas industries are already investing in the hydrogen economy. 

Purchase and subsidies of new hydrogen cars in EU25 (1000 cars)... 

Figure 18.12. Subsidies and diffusion of hydrogen cars into car fleet of EU25 (source ASTRA results based on ElyWays high penetration scenario).

The higher prices of cars, which is balanced by subsidies, has two impacts in ASTRA first, car manufacturers increase their revenues and output, compared with BAU, and second, a few other sectors that manufacture significant shares of the fuel cell also benefit. HyWays estimates that about one third of a car s price is related to the drive train. For hydrogen-fuel-cell cars, out of this one third about 30% is assumed to be provided by the chemical sector and 40% by the electronics sector in ASTRA. The remaining 30% is still manufactured by the vehicle sector. Hence, the according shares of demand for H2 fuel-cell vehicles are shifted from the vehicles sector, which before produced 100% of the drive train, to the chemicals and electronics sectors, respectively. This affects the sectoral final demand and the input-output table calculations in ASTRA. 

The total amount of funding provided by public entities in 2002 was estimated at 40 million. This figure includes all subsidies provided in France by the European Union for "hydrogen and fuel cells" work as part of the FP5 program. French public authorities have expressed the desire to develop HFC technologies more extensively, and the French Prime Minister confirmed the "Clean vehicles" plan, which should lead to additional support of 40 million over a period of 5 years. 

Modifications on legislative framework related to hydrogen technologies (subsidies, permits etc.)... 

Hydrogen Costs at 90% ann load factor°f 1 station Btu LHV scf H2 /gal gaso eqgjM be subsidy like EtOH ... 

Hydrogen production from wind power and electrolysis is a particularly interesting proposition since, as just discussed, among renewable sources, wind power is economically the most competitive, with electricity prices at 4 to 5 cents/kWh at the best wind sites (without subsidies). This means that wind power can generate hydrogen at lower costs than those for any of the other renewable options available today. 

In West Berlin, thanks to government subsidies for fuels that do not cause acid rain, Daimler Benz has built a filling station where converted vehicles can be filled with hydrogen, produced from town gas. 

Crude oil and gasoline price increases FCV cost reduction Value of emissions reduction Subsidies and R D funding and timing FCV fuel economy improvements Energy and capital cost improvements for hydrogen generation... 

A high hydrogen penetration rate can be critical in order to justify the huge infrastructure investment required, as well as the huge involved R D cost. Therefore, subsidies intended to boost early hydrogen demand could also be established. 

Another likely scenario, without subsidies, is that after a decade of slow progress on hydrogen, battery technology will surpass hydrogen... 

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