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ICHS Round Table“Industrial Perspective”

Les Shirvill

Shell Global Solutions

Shell is already experienced in producing and handling H2

• Experienced at H2 production: Shell has more experience in the safe and productive handling of H2 & traditional fuels than any other company

– Shell produces more than 7000 tons H2 per day and has been producing H2 for over 40 years

• Shell is leveraging the most cost-effective, safe and available infrastructure to address the security, supply and responsible acceleration of the H2 industry

• Shell is well connected to advance a greener hydrogen economy via Wind, Solar

• Shell is currently producing H2 using a range of production technologies, such as: SMR, Oil gasification, coal gasification, and platforming

Shell Hydrogen: Learning and investing in hydrogen as a fuel

Investment funds

storage solutions

Joint ventures

hydrogen purification

Low emission power Siemens

Refuelling

Demonstrations & partnerships

N. AmericaIcelandEuropeJapan

Home refuelling Vandenborre/Hydrogenics

And going from Research to Reality

• Iceland

• Europe

• Japan

• North America

For a long time chemical conversion of fossil fuel and biomass will be key for

future hydrogen production scenario’s….

Heat

Electricity

ElectrolysisThermolysis of water

Hydrogen

Biomass

Chemical Conversion

Biophotolysis

Nuclear Energy Fossil Energy

Mechanical Energy

CO2

Photo-electrolysis Fermentation

Renewable Energy

Adapted from John A. Turner, Science, 285, 687 (1999)

Steam-methane reforming (SMR, ) Gasification (coal, oil biomass…)Platforming, Steam cracking

.. with Central Production economically favoured relative to On-site Production

On-site electrolysis

On-site reforming

25020015010050Distribution (km) from production site

km

100 ton/day500 ton/dayCENTRAL SMR & LH2 TRUCK

CENTRAL

SMR & GH2 TRUCK

50 fills (0.25 ton/day)

25 fills (0.1 ton/day)

10 ton/day

500 ton/day

Total Delivered Cost [$/kg H2]

Central production

….. and CO2 Capture and Storage (CCS) being an important element in the H2 CVP in a

migration pathway to renewable H2

Time from now

CO2

EmissionsH2

Production(t/d)

H2 fromexisting

SMR

H2 fromfossil feedstock

w/ CO2

Captureand

Storage(CCS)

H2 fromRenewables

< 10 years 10-30 years >30-50 years

100’s

1000000’s

H2 + CO2

H2+CCS

H2 Ren.

Shell Hydrogen Vision for H2 Market Takeoff

• We expect market takeoff between 2015 and 2025

• Under supportive circumstances we see the potential for 5 to 10 million FCV’s in 2020, growing beyond 100 million between 2030 and 2040

• Growth of H2 Market will depend on funding the transition to mass production

‑ Dependent on public policy developments – incentives

• Future landscape is being shaped now

‑ Players developing H2 policies and positions

Shell Hydrogen Vision for Market Development

• Stand alone projects – hydrogen-fuelled buses out of depots (e.g. Amsterdam and Luxembourg)

• Second generation sites, with public access, but separate from existing fuel stations (e.g. Iceland station)

• Fully integrated hydrogen and gasoline fuel stations (e.g. Benning Road Shell Station in Washington DC)

• Within next 5 years – Lighthouse projects: integrated stations within mini-networks

• 2010 – 2020 connecting the mini-networks with corridors and filling the white spaces

The Next Stretch

Need for:

• Addressing technical/manufacturing challenges

• Codes & standards

• Political awareness and public education

• Lighthouse Projects and Mini-networks; Funding the transition to higher volumes

Hydrogen SafetyCodes & Standards

• For the public to use hydrogen as a vehicle fuel, customers must be able to handle hydrogen with the same degree of confidence, and with comparable risk, as conventional gaseous and liquid fuels.

• For the safe design of retail facilities, through the development of codes and standards, it is essential to understand all the hazards that could arise following the accidental release of hydrogen.

• Hydrogen is simply different from conventional hydrocarbon fuels in several respects and a good quantitative understanding is required to ensure that it is handled safely.

www.shell.com/hydrogen