DTE Hydrogen Technology Park Project

The Project Team:

Ed Chao Marshall Chase Kris Jadd Doug Glancy

Advisors: Dr. Thomas P. Lyon

Dow Professor of Sustainable Science, Technology, and Commerce

Dr. Gregory A. Keoleian Co-Director, Center for Sustainable Systems

Secondary Advisor: Dr. Gautam Kaul, Finance Professor

The Client:

DTE Energy’s Technology Investments unit A diversified energy company involved in the

development and management of energy-related businesses and services nationwide.

Other participants: US Department of Energy DaimlerChrysler BP

What are they doing?

“Distributed Hydrogen Generation” On-site generation of hydrogen, using

electricity from the grid and solar cells to split water into hydrogen and oxygen

Use hydrogen to fuel vehicles or generate electricity using fuel cells.

Hydrogen Fuel Cells

Liquid hydrogen storage tank

One option: Fuel cell vehicles

Why are they looking at hydrogen?

DTE wants to evaluate the feasibility of using hydrogen as an energy carrier. Potential to reduce greenhouse gas emissions and

reduce dependence on foreign oil. Can store electricity from renewable and other

sources Can be used in automobiles to replace gasoline

Determine economic viability of the distributed hydrogen generation model.

Gain experience in using hydrogen – potential competitive advantage

So where’s the problem?

Hydrogen currently isn’t a financially viable alternative to the existing energy and vehicle fueling infrastructure.

But this might change: Many regulatory and market factors affect the

viability of a hydrogen infrastructure Price of oil Electricity cost differentials Regulations (RPSes, carbon regulations, etc)

Where do we fit in?

Help DTE evaluate two things: What might future regulatory & market

landscapes look like? What are the implications of these future

scenarios for the viability of DTE’s distributed hydrogen generation model?

Ultimate goals: Decide whether this distribution system has a

chance of succeeding in the energy market. Provide DTE with the tools to conduct ongoing

evaluations as circumstances change.

How?

Literature review Interview energy & policy researchers and

professionals Define market, policy and other variables likely

to affect distributed hydrogen generation Develop set of likely scenarios based on above

variables Design software input-output model using the

above variables and scenarios to evaluate the financial and competitive viability and environmental impacts of DTE’s proposed stations.

Methodology

Phase I: Project inception – May 30 Initial review of existing models in the field Literature review Initial client interviews Site Visit

Phase II: June 1-September 1 Continue interviews and lit. review begin drafting model units and scenarios Deliverable: Initial model units and scenarios for presentation to advisors

and client Phase III: September 1-December 20

Continue drafting model units and fleshing out scenarios Plug scenario variables into models, gather output Draft recommendations based on scenarios and model output Deliverables: Scenarios, models, and draft recommendations to advisors

and client Phase IV: January 2-April 15

Draft reports submitted to advisors and client Revisions as needed Final reports and presentations to client and school Training of DTE representatives to use models

Project Roles:

Primary client contact: Ed Chao Primary advisor contact: Marshall Team Finances: Kris Information controller: Marshall Team coordinator & meeting planner:

Ed Team social chair: Kris

Budget Travel to project site, other DTE facilities,

and interview and research sites

Travel to one conference for presentation of results

Telephone calls for interviews & discussions

Data and reference material

Relevant modeling software purchase and training

Opus binding, 7 copies @ $150/copy

Administrative overhead (photocopying, etc)

Total

$500

$1200

$150

$1500

$3000

$1050

$500

$7900

Results/Deliverables

Distributed hydrogen energy station evaluation software-based model.

Explanation of scenario forecasts, and discussion of conclusions and recommendations based on those scenarios.

Presentation of the model, scenarios used, and recommendations to DTE representatives.

Presentation and bound paper to fulfill the SNRE Master’s Project academic requirement.