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Hydrogen Funding Reversal Provides a Cautionary Tale

By Chris Morrison | Jul 30, 2009

Those wishing for immediate government support of all forms of green energy technology are forewarned: Once a technology is government-supported, it may be nearly impossible to get rid of, even if it proves not to be a great option. That’s the case with hydrogen, for which Department of Energy secretary Steven Chu has just tried, and failed to cut back funding.

Chu, a Nobel-winning physicist who previously led one of the nation’s largest labs, might strike you as the sort of guy who knows what he’s talking about when he says, as he first did back in May, that we won’t have a hydrogen transportation infrastructure 10 or even 20 years out.

Nevermind all that, say senators from states that now have hydrogen interests. The Wall Street Journal points out Byron Dorgan, a Democrat from North Dakota, who said the DOE made a “significant mistake” in trying to cut funding. Dorgan’s scientific basis for supporting hydrogen is in the the balance sheets of the University of North Dakota, which receives large amounts of funding for research on the subject.

Hydrogen is hardly the first example of such entrenched interest in cleantech, of course. The best to date is corn ethanol, which got its first big push from the Bush Administration around the same time as hydrogen. Despite corn’s many shortfallings, its subsidies have proven impossible to trim against the resistance of Midwestern senators.

In the meantime tariffs, fuel standards and other political barbed wire have sprung up to protect existing corn ethanol production, and provide room for future growth.

What’s done is done, one might say — ethanol and hydrogen won’t be gone anytime soon. But this is a good time to take a look at other technologies that might not prove to be great ideas. Take wind for example; support for wind power has grown steadily, and turbines are popping up in many of the same states that are carpeted with ethanol-producing corn fields.

It remains far too early to tell whether wind, an intermittent, often unreliable power source, should truly be one of the cornerstones of our electrical supply. Investments into wind power might be better spent elsewhere, like geothermal or solar power. But switching might prove too difficult a battle, if the energy is being produced in different states, from different sources.

Of course, it would be impossible to develop clean technology at all without government support. Subsidies make the market. But if the Bush administration taught us anything, it was that major decisions — whether wars or new energy sources — should be thought out thoroughly, by someone other than a politician.

So far, it doesn’t seem to be happening.

Chris Morrison, a reporter on energy, renewables and climate change, is the former lead cleantech writer for VentureBeat. Follow him on Twitter.

BNET User Analysis

Web Buzz:
  • Fight for Hydrogen Funding

    New York Times - 195 days 16 hours 25 minutes ago

    When the former executive director of General Motors fuel-cell program, J. Byron McCormick, resigned from the Department of Energys hydrogen advisory committee, he didnt go quietly. On Monday, he sent the energy secretary, Steven Chu, a letter critical of the agencys decision to kill funding for fuel-cell cars in the...

  • Wheels: Fight for Hydrogen Funding

    New York Times - 195 days 11 hours 1 minute ago

    Hydrogen fuel-cell development was delivered a blow when Energy Secretary Steven Chu recently cut government funds to support it.
    Senate Approves Bill Restoring Funding for Hydrogen Car Research

    Washington Post - 38 days 20 hours 34 minutes ago

    The hydrogen car may have legions of fervent fans, but Energy Secretary Steven Chu apparently is not among them. Earlier this year, the Nobel Prize-winning scientist essentially zeroed government funding for the clean vehicles and came close to mocking their potential, saying the technology needs four "miracles" before it can become widely...

  • Obama's energy pick endorses nuclear power, clean coal

    CNET News - 314 days 15 hours 14 minutes ago

    WASHINGTON--Energy Secretary nominee Steven Chu was greeted with warm approval from a congressional committee during his confirmation hearing Tuesday, at which he acknowledged the need to pursue nuclear and clean coal energy but promoted energy efficiency as the best means of addressing the nation's energy challenges in the face of a dour...

  • Congress May Restore Hydrogen Funding

    New York Times - 125 days 17 hours 9 minutes ago

    Congress appears close to restoring the $100 million in funding for hydrogen research that Steven Chu, the energy secretary, had cut from his budget in May. The House of Representatives voted 320-97 last Friday to approve $26.9 billion for the Department of Energy, including $153 million for hydrogen and fuel cells in the Energy Efficiency and...

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  •  
    1

    LizbethC

    07/30/09 | Report as spam

    RE: Hydrogen Funding Reversal Provides a Cautionary Tale

    Ethanol came into favor during WW2. The first big subsidy was in 1978, then was raised in 1983 and again in 1984. The EPA required reformulated gasoline in 1995. W. Bush actually decreased the ethanol subsidy (but not by much!) The hydrogen program started under Clinton, although it gained steam under Bush. Unlike ethanol, studies indicate that hydrogen will not need never-ending subsidies. It has a clear path to being self-sustaining. http://www-cta.ornl.gov/cta/Publications/Reports/ORNL_TM_2008_30.pdf

  •  
    2

    forward thinking

    07/30/09 | Report as spam

    RE: Hydrogen Funding Reversal Provides a Cautionary Tale

    LizbethC obvious disagrees with Steven Chu but the truth is
    that hydrogen fuel cell technology has hit a wall. Assuming
    hydrogen is reformed from natrual gas, vehicle thermal
    efficiencies are only about 42% which is about the same
    ethanol is capable of but with a delivery system that is a lot
    less expensive and more compatable with our existing
    system. If government regulations and restrictions would
    get out of the way, ethanol will need no subsidies on an
    even playing field. Hydrogen suporters need to look at CHP
    technologies and forget vehicles.

  •  
    3

    pserfass

    07/30/09 | Report as spam

    A Measured Voice of Reason:

    It's easy to say that Secretary Chu is always right because he won a Nobel prize and is a scientist. He is a very bright individual and he has done many positive things for the alternative energy industry. But the reasons given for eliminating the hydrogen vehicle program are wrong.

    Did you know that most of the reasons showing that this decision was wrong come from Sec. Chu's own programs at DOE? Plus, there are HUNDREDS of award-winning scientists, engineers and other leaders not just in the U.S. but around the world who are developing these technologies personally. They know that hydrogen vehicles have a very positive and important role to play in our transportation future and have the hardware to show it. Here are a few links that show more:
    http://cafcp.org/2010-federal-budget
    http://www.h2andyou.org/myths.asp

    But at the end of the day, it's important to remember that this is NOT about ONE technology. Many have unique benefits to offer and are even COMPLEMENTARY to each other. Different technologies like fuel cells and batteries even work well on the same vehicle.

    Since none of these vehicles have reached the market yet, it's IMPERATIVE that we develop as many as we can today, get them to the showrooms and then let the market decide which ones buyers want. If we don't allow that process to happen, we're missing a pile of great opportunities and will only slow down real progress.

  •  
    4

    B-R

    08/03/09 | Report as spam

    RE: Hydrogen Funding Reversal Provides a Cautionary Tale

    To Forward Thinking:

    I am not sure what studies you are quoting, but the DOE program is helping develop fuel cell vehicles, and is not aimed at hydrogen combustion. The new Honda fuel cell vehicle, the Clarity, for example, achieves an EPA rating of about 70 mpg equivalent. At the wheels a vehicle relying on liquid fuel combustion, whether ethanol or gasoline, gets somewhere around 15-20% efficiency, often less. (Diesels are a little better). A fuel cell vehicle achieves two to three times the energy efficiency of a combustion vehicle. That is why it produces such positive results even when extracting hydrogen from hydrocarbon fuels.

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