Senate Returns Funding to Hydrogen -- What's Next?

In another reversal to the Obama administration, the U.S. Senate has decided to give back funding to hydrogen vehicle development that Department of Energy head Steven Chu tried to pull back in May

The administration has tried to back away from various projects it sees as unreasonable or unnecessary, only to be stymied by other political interests; in September, the Senate insisted on keeping $2.5 billion for cargo jets that Obama, his campaign opponent Sen. John McCain, and the Pentagon said weren’t needed.

Although the amount involved in hydrogen research is only $187 million, it will give renewed hope to hydrogen advocates.

There’s no doubt, hydrogen is a sexy technology. Fortune just published a story including details about the hydrogen fuel-cell Honda Clarity. One of these is being driven by actress Jamie Lee Curtis, who compares it to a “rocket ship” and and says her reaction to it being taken away would be to “sob uncontrollably.”

Hollywood personalities aside — a group that has shown a remarkable lack of acumen in clean technology — what do the automakers think of hydrogen research? As Jim Montavalli wrote over at BNET Auto before the Senate vote, quite a few auto companies have continued to to put money into research:

…General Motors paid out $1.5 billion it probably wishes it had today. But the money poured into this paid off: fuel-cell technology has progressed faster, in terms of energy output and ever-more-compact designs, than batteries have. Engineers are excited, but it’s still not translating into a viable plan for widespread use of hydrogen cars—that’s where battery cars hold all the trumps.

Government support for hydrogen isn’t an issue in the rest of the world. Europe and Japan are in the lead… [and] eight major companies in Germany (including Daimler, energy powerhouse Vattenfall, oil companies Total, Shell and Austria’s OMV, and the liquid hydrogen specialist Linde Group) have signed a memorandum of understanding to collaborate on a national hydrogen fueling network.

They’re up against electric car technology, which is favored by the Obama administration, as well as a number of small companies like Denmark and Israel, both of which are working with Better Place, an electric battery refueling company. China, with a strong bent toward battery technology and several companies creating electric vehicles, is likely to follow along, and the United Kingdom’s climate tsar says electrics are mandatory.

On the other hand, both hydrogen and electric vehicles have a long adoption cycle. While hydrogen technology isn’t ready at all, analysts are still saying that widespread use of electric vehicles is years away. As long as electrics haven’t dominated the market, hydrogen advocates will still have an argument, no matter how many obstacles remain for hydrogen.

And even if hydrogen vehicles never take off, there may be some fringe benefits to research. As I recently reported, hydrogen-powered houses are gaining popularity as an add-on to solar panels. The idea has significantly fewer problems than hydrogen vehicles. In fact, there may be just one: A huge price tag. But that hasn’t stopped hydrogen fans yet.