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Even before Iceland’s SGS projects are realized, the country’s surplus electrical energy is attracting power hungry industry, specifically the aluminum business. Aluminum smelters use large amounts of electricity and so the world’s leading aluminum manufacturers are setting up plants in Iceland to make use of plentiful, clean energy and the island’s excellent harbors. This situation is effectively turning Iceland into an energy exporter, in the form of aluminum ingots. “We would like to have other industrial uses for our energy,” notes Bjarnason, “and hydrogen production would be an excellent way to diversify.” In terms of establishing a hydrogen distribution system, Iceland’s took the first step back in 2003 when in collaboration with Shell it opened the world’s first fueling station in Reykjavik. A DaimlerChrysler hydrogen fuel cell powered bus has been using the station to refuel while in regular commercial service in the capital.
Opened in 2003, the world’s first hydrogen fuelling station in Reykjavik uses electrolyser to produce H2. According to Jon Bjorn Skulason, general manager of New Icelandic Energy, the station is one of six planned H2 fuel outlets that could form an infrastructure sufficient for the vehicle population of Reykjavik, once hydrogen vehicles are on the market. “That is the problem now, we are missing the vehicles but we are hoping production will start in 2010.”
Signage explains filling station to local population, who are enthusiastic about potential for hydrogen economy. Meanwhile government planners are considering how to best configure an H2 infrastructure. There are two primary scenarios. First is decentralized, where hydrogen is produced by electrolysis at fuel stations or a short distance from the point of sale. The second option is centralized production; H2 is produced at power plants, far from the fueling stations. This would involve H2 transportation by trucks, ships or pipelines. Both scenarios have their pros and cons and depend on local circumstances. For Reykjavik, the concept of a mini-production hub, with six fueling stations on main roads is expected to cost in the region of $20 million. As for the cost to the consumers, the predicted price of hydrogen fuel sufficient to drive 100 kms is $11.55, versus gasoline at $9.90 per 100km. “The difference is not that much,” notes Skulason. “So as gasoline increases in price we can see the gap closing.” While there is a focus on converting Iceland’s cars and buses to hydrogen, the country also envisages shifting its large fishing fleet to H2 as a source of power. Ships pose an added challenge, says Skulason, because they are custom made and so builders face major cost issues in developing fuel cell powerplants. The first step will likely be to integrate hydrogen fueled auxiliary power plants on vessels such as whale watching ships, to demonstrate the technology.
As well as vehicles, Icelandic government wants to convert fishing fleet to hydrogen powerplants.
While Iceland is investing heavily in becoming a proving ground for the hydrogen economy, the country is looking for outside assistance. “Iceland alone is not able to take the big steps but in cooperation with others it is able to do so,” says Valgerour Sverrisdottir, Iceland’s Minister of Industry and Commerce. |
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