march/april 2004 IEEE power & energy magazine 35

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By James H. Gurney

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An Electric Utility Perspective on Building a
Hydrogen Infrastructure for Sustainable Electric Power
BC HYDRO AND ITS RESEARCH AND DEVELOPMENT SUBSIDIARY, POWERTECH
Labs Inc., have embarked on a strategy to be leaders in the development of a hydrogen econo-
my in British Columbia, Canada, using sustainable electricity for hydrogen production. It is
too early to know with certainty when the hydrogen economy will develop in British Colum-
bia, but we know it represents an important opportunity or threat to BC Hydro. As a result,
BC Hydro is exploring this market by establishing relationships with key players, learning
by doing through demonstration projects, and facilitating hydrogen opportunities in the
province. Later, when the market is established, BC Hydro will be well positioned to take
advantage of the opportunities presented or exit the market and harvest the value created to
1540-7977/04/$20.002004 IEEE
date. The hydrogen program, known as BCHydroGEN,
contributes to BC Hydros vision to become North Americas
leading sustainable energy company.
Creation of a hydrogen fueling infrastructure is key to the
development of a hydrogen economy in British Columbia.
This requires successful demonstration projects as well as the
standardization of fuel storage and dispensing facilities. Early
demonstration projects have included the construction of a
350-bar/5,000-psi hydrogen fueling station at Powertech
Labs in Surrey, BC; the acquisition of hydrogen-fueled fleet
vehicles; and development of the worlds first 700-
bar/10,000-psi gaseous hydrogen-fueling station, also at Pow-
ertech Labs. These projects have attracted other participants
including BP, Shell, Chevron Texaco, BOC, Stuart Energy
Systems, Dynetek Industries, Fuel Cells Canada and the
Provincial and Federal Governments. The combination of
innovative technology and key participants is helping to make
hydrogen-fueled vehicles an economic reality.
The Emerging Hydrogen Economy
Since the discovery of the fuel cell by Sir William Groves in
1839, hydrogen and electricity have been intricately linked as
energy carriers, providing pathways from energy sources to
end users. Electricity can be simply converted to hydrogen by
the electrolysis of water, at an efficiency of approximately
80%. Hydrogen can be converted to electricity in fuel cell
cells, with only heat and water as byproducts, at an efficiency
approaching 60%. Significant fuel cell development efforts in
recent years have resulted in improved efficiency and cost
reductions, and the fuel cell is nearing commercial introduc-
tion on a mass scale. Therefore, hydrogen and electricity are
readily exchangeable and form an ideal energy currency
pair for linking energy sources and end users (see D.D.
Scotts works in the For Further Reading section). The abil-
ity to convert, store, and deliver energy created from sustain-
able electricity resources in the form of hydrogen holds
promise for resolving societys dependence on fossil fuels
and the dilemma of climate change. As well, research into
sequestration of carbon dioxide in the production of hydro-
gen from fossil energy sources may deliver multiple carbon-
free hydrogen feedstocks that will supplement hydrogen
produced directly from renewable electricity sources.
Three principal drivers are providing the impetus for
development of a new energy economy based on the supply
and use of hydrogenthe hydrogen economy (see Brockis
article in For Further Reading). They are local air pollution
and global warming caused by the proliferation of emissions
from the combustion of carbon fuels; depletion of fossil fuels
and the related issue of energy supply security; and the emer-
gence of technology that will make hydrogen fuel cells com-
petitive with fossil fuel-based technologies for transportation
and power generation. On the latter point, existing hydrogen
fuel cells are between two and three times as efficient as con-
ventional vehicle internal combustion engines, with further
efficiencies likely to be achieved in the next few years.
BC Hydros Hydrogen Strategy
In December 2000 BC Hydro formally embraced sustainabil-
ity as a key component of its strategic direction by setting a
vision to become North Americas leading sustainable energy
company. Sustainable business practices have been practiced
for many years, and the company has issued a triple bottom
line report since 1998. Over the past three years, formal
management systems have been adopted to ensure that busi-
ness decisions minimize environmental impacts, respect
social and community values, and provide the shareholder,
the citizens of BC, with an appropriate risk-adjusted return on
investment.
In 2001, the company launched its hydrogen program,
BCHydroGEN, as a key sustainability initiative. The pro-
grams vision is to position BC Hydro for the emerging hydro-
gen economy by forming relationships and prudently
participating in demonstration projects with other players in
the hydrogen and fuel cell industry. As well, early revenues
will accrue to BC Hydro from technology development and
commercialization carried out by the companys research and
development subsidiary, Powertech Labs Inc. Powertech Labs
has strong technical capability in the development, certifica-
tion, testing, evaluation, and standardization of high-pressure
hydrogen storage, fueling, and vehicle components.
The hydrogen program supports the three criteria of BC
Hydros sustainability framework in the following ways.
EnvironmentHydrogen produced by electrolysis,
using renewable electricity, can fuel vehicles equipped
with fuel cell engines or modified internal combustion
engines, resulting in significant improvements in local
air emissions and greenhouse gases.
Social/CommunityThe company will help to support
the development of infrastructure to supply safe, reli-
able, economic hydrogen to a cluster of companies
involved in the emerging fuel cell industry in British
Columbia, thus supporting economic growth. As well,
development of hydrogen fueling infrastructure in the
province will provide spinoff benefits in technology
commercialization and sales. Customers and the public
see hydrogen-fueled vehicles as a clean transportation
alternative and have provided strong support for BC
Hydros participation in this market as an extension of
its renewable electricity resource base.
EconomicHydrogen and fuel cells are an important
part of the provinces strategy for economic growth
and diversification. BC Hydro can play a key role in
facilitating the development of this sector and is posi-
tioning itself to benefit from the new energy market as
it develops.
The foundation of the strategy execution is to watch, ana-
lyze, and influence the market; undertake projects that
demonstrate the feasibility, safety, and economics of hydro-
gen infrastructure; and generate revenues from hydrogen and
fuel-cell-related technology commercialization through Pow-
ertech Labs.
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IEEE power & energy magazine march/april 2004
march/april 2004 IEEE power & energy magazine
BC Hydro and Powertech Labs are working with partners
to advance technical and business issues related to the pro-
duction, handling, and storage of hydrogen. This includes a
comprehensive program of initiatives to demonstrate to auto
makers, transit authorities, consumers, the public, govern-
ments, regulators, and other stakeholders that cost-effective,
safe, sustainable hydrogen will be available when hydrogen-
fueled vehicles enter the market.
By working with existing fuel retailers and other parties, the
company expects that a sufficient number of hydrogen fuelers
will be available at existing fueling stations and fleet operations
to support fuel cell vehicles when they enter the BC market.
One of the advantages of onsite electrolysis of water is that
hydrogen can be made available in the small quantities
required in the early phases of vehicle introduction, with the
energy delivered through the utility wires network from renew-
able generation sources. As vehicle numbers climb, production
and delivery methods capable of supplying higher quantities of
hydrogen will be required. One of the inherent advantages of
hydrogen as a fuel is that there are multiple production and
supply pathways, including onsite electrolysis, onsite reform-
ing of natural gas, and trailer and pipeline delivery from central
sites, all of which contribute to supply security. It is, therefore,
difficult for a single nation or group to threaten the energy
security of an energy economy based on hydrogen. The choice
of hydrogen supply will depend on availability, economics, and
environmental issues in a given region.
BC Hydro strongly believes that on-board storage of high-
pressure gaseous hydrogen is the best method of vehicle fuel-
ing, compared with on-board reforming of liquid fuels such
as methanol and gasoline. A focus of the hydrogen program
is to remove technical barriers and influence adoption of this
fueling method. Advantages of on-board storage of gaseous
hydrogen include the following:
reduced vehicle cost and maintenance because an
on-board reformer is not required
better vehicle performance (startup and response time)
reduced air emissions from NO
x
, CO
2
and volatile
organic compounds, particularly if the hydrogen is pro-
duced from renewable electricity sources
reduced environmental impacts from spills of liquid fuels.
Other aspects of the strategy execution include public edu-
cation, discussion with regulators and governments on regu-
lation and taxation issues, and participation in international
standardization activities.
Removing the BarriersEarly Initiatives
Since its inception, the BCHydroGEN program has initiated
a variety of projects involving technology development and
application, safety, market, and environmental analyses; stan-
dards development; and public education, all of which are
helping to remove barriers to the hydrogen economy.
BC Hydro provided cofunding and supplied electricity on
a time-of-use rate for hydrogen fueling of three fuel cell buses
supplied by Ballard Power Systems for a successful trial con-
ducted by the Coast Mountain Bus Company in Vancouver,
Canada. Following normal daytime revenue service, the buses
were fueled overnight with hydrogen produced by electrolyz-
ers supplied by Stuart Energy Systems, Toronto, Canada.
BC Hydro, Suncor Energy, and Ballard Power Systems
participated in a major study conducted by the Pembina Insti-
tute, Drayton Valley, Canada, on lifecycle value assessment
of fuel supply options for fuel cell vehicles operating in three
Canadian cities representative of very different upstream
energy resources (see Rows article and the Pembina Institute
Report listed in the For Further Reading section). The
study concluded that electrolytic hydrogen from renewable
energy resources shows the greatest opportunity for minimiz-
ing environmental and social impacts of fuel supply systems.
BC Hydro has participated actively in public education
related to the safety and benefits of hydrogen as a vehicle
fuel. These include public forums and student events as well
as community and national television programs. As well, the
company subsidized the purchase of electrolyzer/fuel cell
demonstration units and educational materials for secondary
schools throughout the province.
BCHydroGEN is purchasing a market-based green energy
product for its electrolytic production of hydrogen. This pro-
gram includes third-party auditing to verify that the incre-
mental green energy is generated by qualified facilities such
as small hydro, wind, biomass, and landfill gas.
BC Hydro is investigating the technical and commercial
aspects of portable and stationary fuel cells for the generation
of electricity. Issues include hydrogen supply, interconnection
with the power system, and cost and market projections. The
company is currently conducting a research project to apply
fuel cells for utility battery replacement, using proton
exchange membrane fuel cells manufactured by Ballard
Power Systems.
Powertech Labs Inc. is actively engaged in a number of
research projects that are furthering the development of vehi-
cle on-board high-pressure gaseous storage of hydrogen. For
example, Powertech is leading a consortium of six major auto-
mobile manufacturers and numerous equipment suppliers to
develop and test on-board 700-bar/10,000-psi hydrogen stor-
age systems, including participation in related standards
37
figure 1. A mobile hydrogen trailer fueling a fuel cell
vehicle.
development with the International Standards Organization
(ISO). This storage pressure, approximately double that in use
today, will enable fuel cell vehicles to have the same or greater
travel range as conventional vehicles. Another project involves
the development of intelligent sensors for the control and pro-
tection of high-pressure hydrogen components. Powertech is
also developing and certifying low-cost, high-pressure trans-
port trailers for fuel cell demonstration projects (Figure 1).
Building the Infrastructure
In keeping with the companys goal to facilitate the building
of hydrogen fueling infrastructure, a key initiative is under-
way with participants from the Government of Canada and
automotive, hydrogen generation, hydrogen storage, and
petroleum industries to construct and demonstrate high-pres-
sure gaseous hydrogen fueling stations at the Powertech Labs
facility in Surrey, BC. The CH
2
IP programCompressed
Hydrogen Infrastructure Programhas several components:
Project 1 (complete May 2002): construction and oper-
ation of a 350-bar (5,000-psi) gaseous hydrogen and
natural gas fueling station (Figure 2). The station con-
sists of an electrolyzer, storage tanks, fuel dispenser,
and related accessories.
Project 2 (complete June 2002): conversion of three
internal combustion engine vehicles to run on a 51%
hydrogen/49% natural gas fuel mixture (Figure 3).
Project 3 (complete December 2002): construction and
operation of the worlds first 700-bar (10,000-psi)
gaseous hydrogen fueling station.
Project 4 (estimated completion December 2004): con-
struction of 875-bar (12,691-psi) lightweight compos-
ite tube trailer and satellite fueling station that will
dispense fuel at 700-bar (10,000-psi) and demonstrate
the distribution of high-pressure hydrogen via light-
weight, high-pressure tube trailers.
The overall objective of the CH
2
IP program is to demon-
strate the safety of the technologies as well as the technical
and commercial feasibility of gaseous hydrogen fueling at
both 350-bar and 700-bar pressure. It also furthers the devel-
opment of open international standards for design, construc-
tion, and operation of hydrogen fueling facilities, along with
other participants in the vehicle fueling industry.
The hydrogen/natural gas-fueled vehicles provide a rela-
tively inexpensive near zero-emission vehicle load for the sta-
tion and serve to develop and support the hydrogen
infrastructure until fuel cell vehicles becoming available in the
marketplace. The hydrogen/natural gas vehicles are used in
the BC Hydro and Powertech fleets and are available for pub-
lic education on the use of hydrogen as a vehicle fuel. Discus-
sions are underway with several fleet owners in the Vancouver
area regarding acquisition of similar vehicles and associated
fueling infrastructure. It is interesting to note that it is the lack
of fuel cell vehicles that is the key factor in delaying the devel-
opment of hydrogen infrastructure. BC Hydro believes that
hydrogen-fueling stations can be quickly established at exist-
ing retail fueling stations and fleet operations, as soon as the
number of hydrogen-fueled vehicles warrants it.
As host of the 2010 Winter Olympic Games, British
Columbia has a unique opportunity to establish a firm foun-
dation for its hydrogen economy. Building on the knowledge
gained with the CH
2
IP station, the company worked with
several industry partners and agencies to develop Olympic
bid commitments for sustainable transportation in the Van-
couver to Whistler corridor, including up to ten hydrogen-
fueling stations; a fleet of buses operating on fuel cell
technology; a fleet of clean fuel, light-duty vehicles (includ-
ing fuel cells and hydrogen internal combustion engines);
snow cats powered by hydrogen; and portable power and
distributed generation using fuel cells. Dubbed the Hydro-
gen Highway, these projects will create a legacy of sustain-
able hydrogen-powered transportation and power generation
in British Columbia that will accelerate the transition to a
zero-emission future.
The Role of the Electric Utility:
Risks and Challenges
The emerging hydrogen economy is a good fit with the exist-
ing business of BC Hydro and Powertech Labs Inc. BC
Hydro has a clean, renewable electricity source, hydroelec-
tricity, and a vision to become North Americas leading sus-
tainable energy company. Moreover, the company is
38
IEEE power & energy magazine march/april 2004
figure 2. BC HydroGEN 350-bar (5,000-psi) hydrogen
fueling station at Powertech Labs.
figure 3. Hydrogen/compressed natural gas-fueled vehi-
cle and mobile fueling trailer.
march/april 2004 IEEE power & energy magazine
committed to adding new renewable resources that could be
used to produce electrolytic hydrogen (the provincial govern-
ments 2002 Energy Plan has committed to a target of meet-
ing at least 50% of new electrical load with generation from
clean sources). The companys large transmission and distri-
bution network allows the company to produce hydrogen
where it is needed, for example, at local retail fueling sta-
tions, and in so doing increase the utilization of its generation
and transmission assets. Early revenues will accrue from
development and testing of key technologies by Powertech
Labs Inc., leveraging its recognized expertise in high-pres-
sure gas storage and safety.
As a company committed to sustainability, BC Hydro has
the resources and expertise required to carry out its hydrogen
business plan. Moreover, the companys recognized experience
in operating a safe, reliable, and profitable energy company has
resulted in a high level of consent to operate from customers.
Certain risks and challenges exist in executing the compa-
nys hydrogen and fuel cell strategy, requiring careful moni-
toring and assessment, together with prudent risk
management, and exit strategies. For example, will fuel cell
vehicles and other products successfully overcome market
barriers of cost and performance? Will vehicle manufacturers
support on-board storage of high-pressure gaseous hydrogen?
Will the industry be successful in developing a cost-effective
hydrogen-fueling infrastructure? Will sufficient renewable or
low-impact energy resources be available in the future to pro-
duce sufficient hydrogen to replace conventional combustion
of fossil fuels? On the last point, many experts suggest that
the ultimate solution for creating a sustainable hydrogen
economy will be the development and public acceptance of
cost-effective nuclear generation resources.
In moving into this new energy market, BC Hydro faces
the same challenges faced by any new venture, including:
developing strategies for managing market risks
identifying new skills
understanding and meeting regulatory requirements
working with stakeholders to ensure hydrogen facili-
ties meet safety and other concerns.
The key to managing these risks is a sound business
plan and strategy, together with the formation of effective
industry alliances.
Conclusions
Formation of a hydrogen business by an electric utility can be
an opportunity for increased profitability and a tangible con-
tribution to sustainability. In BC Hydros case, its hydrogen
venture is closely aligned with the companys environmental,
social, and financial performance objectives.
It is clear that hydrogen can move the world to a more
sustainable future. Consumer adoption of transportation and
other end-use products powered by hydrogen from low-
carbon energy sources is critical for solving the global cli-
mate change dilemma. The goal of BC Hydro and its partners
is to ensure that safe, economic, and publicly acceptable
hydrogen infrastructure is available to support the widespread
adoption of fuel cell vehicles and other products. In general,
electric utilities are well positioned to be key enablers of the
21st-century hydrogen economy.
For Further Reading
D.S. Scott, Energy currencies, Int. J. Hydrogen Energy, vol.
19, Mar. 1994.
D.S. Scott, Liberty, Int. J. Hydrogen Energy, vol. 19,
Apr. 1994.
J. Brockis, The origin of ideas on a hydrogen economy
and its solution to the decay of the environment, Int. J.
Hydrogen Energy, vol. 27, pp. 731740, 2002.
J. Row, G. Arnold, R. Legati, R. Monk, and
M. Raynolds, Life-cycle value assessment (LCVA) of
Canadian fuel supply options for hydrogen fuel-cell vehicles,
in Proc. 14th World Hydrogen Energy Conf., Montreal,
Quebec, Canada, June 2002.
Pembina Institute Report, Life-cycle value assessment
(LCVA) of fuel supply options for fuel cell vehicles in
Canada. June 2002. [Online] Available: http://www.
pembina.org/publications_item.
B. Sampson and R. Threlkeld, BC HydroGEN

Building a hydrogen infrastructure, in Proc. 14th World

Hydrogen Energy Conf., Montreal, Quebec, Canada, June
2002.
J.H. Gurney and R. Monk, Sustainable hydrogen by wire:
BC Hydros hydrogen strategy, in Pollution Prevention Rev..
New York: Wiley, Spring 2001, pp. 5358.
D. Edwards, A. Grant, J.H. Gurney, R. Monk, P. Toom, and
Y. Yogendran, The infrastructure existsThe role of electric
utilities in delivering sustainable hydrogen, in Proc. 12th Nat.
Hydrogen Association Mtg., Washington, D.C., Mar. 2001.
B. Sampson and R. Threlkeld, BC HydroGEN

: A new
venture for BC Hydro, Canadian Hydrogen Association,
Victoria, Canada, June 2001.
J.H. Gurney, Building the hydrogen economy for a
sustainable future - An electric utility perspective, in Proc. 3rd
Mediterranean Conf. and Exhibition on Power Generation,
Transmission, Distribution and Energy Conversion (MED
POWER 2002), Athens, Greece, Nov. 2002.
Biography
James H. Gurney received the B.A.Sc. degree in electrical
engineering from the University of British Columbia, Van-
couver, BC, Canada, in 1971. He worked with BC Hydro for
32 years in a number of engineering and management roles,
including manager, strategic research and development. In the
latter role, he led the development of BC Hydros Hydrogen
Strategy, including research and demonstration projects
involving hydrogen infrastructure and fuel cells. He recently
joined the British Columbia Transmission Corporation. He is
a registered professional engineer. He has participated in the
writing of a number of IEEE international standards and was
vice chairman of the IEEE Standards Board in 2002.
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