Keith Weisinger

November 20, 2007

Recently, German carmaker BMW announced the Hydrogen 7, a hybrid vehicle powered in part by liquid hydrogen fuel. Although BMW is not the first auto-manufacturer to introduce the concept of hydrogen-powered vehicles, intense marketing and a rigorous engineering program has allowed the Hydrogen 7 to become the first full production ready hydrogen-fueled vehicle. However, creating a demand for alternative fuel based vehicles is only the first step. Lawmakers and investors must address the supply side of the equation by providing a low-carbon source for the fuel and the means for its delivery.

What the Hydrogen 7 lacks in performance, it compensates for in fuel system technology. BMW's 12-cylinder bivalent engine runs on both hydrogen and traditional gasoline while utilizing a supplemental fuel cell that is capable of converting the hydrogen fuel into energy. The engine produces a modest 260 base-horsepower and a top speed of 143 miles per hour. The cruising range of the Hydrogen 7 is equivalent to most BMWs on the market today – 450 miles. Also comparable to most hybrid vehicles, the Hydrogen 7 can travel roughly forty miles on one gallon of gas.

Despite these alternative fuel advances, the true energy cost of powering the Hydrogen 7 engine remains to be seen. Thus far, liquid hydrogen production has been powered primarily by fossil fuel sources. In fact, the overall carbon emissions from the hydrogen production required to create the fuel may be more than traditional gasoline. Production of liquid hydrogen must come from low-emission sources in order to significantly reduce transportation environmental impacts. Alternative energy advocates suggest promotion of low-carbon hydrogen fuel production through financial incentives and tax breaks.

The source of the hydrogen to fuel these vehicles is not the only obstacle that must be overcome in order to promote hydrogen vehicles as an environmental alternative. The current regulatory framework and fuel distribution infrastructure cannot support an entirely new fuel. The Department of Energy, in coordination with federal lawmakers, recently explored the idea of modifying the nation's existing natural gas pipeline infrastructure to support large amounts of hydrogen fuel.

BMW itself admits to the true purpose of releasing the Hydrogen 7 years before its competitors. "We don't have a problem about saying it is a marketing exercise" says Timm Kehler of BMW Marketing for Innovation Products. BMW recognizes the regulatory and financial barriers that exist in promoting the vehicle. The company estimates that it would cost nearly $30 billion to modify filling stations in Germany alone. MIT engineers estimate that outfitting 15% of filling stations in the top 100 United States metropolitan areas would cost roughly $11.7 billion.

BMW is not the only car manufacturer with hydrogen fuel dreams. Both Honda and Ford are testing prototypes in the United States. Competition among car manufacturers may create necessary demand for hydrogen fuel at the filling station. This chicken/egg problem will only be solved if one side of the industry is willing to modify existing technology to support a cleaner means of travel. The Department of Energy has expressed the need for a marketable fuel cell vehicle in order to compel infrastructure development. So far, BMW and other car companies are doing their part – how long until investors and lawmakers follow suit at the pump?

SOURCES:

BMW Hydrogen 7 Production, Alternative Energy, Nov. 1, 2007, http://www.alternative-energy-news.info/bmw-hydrogen-7-production/.

U.S. Department of Energy, Hydrogen, Fuel Cells & Infrastructure Technologies Program, Hydrogen Production, available at http://www1.eere.energy.gov/hydrogenandfuelcells/production/ (last visited Nov. 2, 2007).

U.S. Department of Energy, Hydrogen, Fuel Cells & Infrastructure Technologies Program, Hydrogen Delivery, available at http://www1.eere.energy.gov/hydrogenandfuelcells/delivery/current_technology.html#pipes.

BMW's Hydrogen Car: Beauty or Beast?, Nov. 17, 2006, http://news.bbc.co.uk/2/hi/business/6154212.stm.

Bob Rose, Are Hydrogen and Fuel Cells a Practical Solution to Our Energy Needs?, Jan. 17, 2006, http://www.fuelcells.org/info/MIT.pdf.