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Hydrogen Economy: A Sustainable Transportation Option and Its Role in Mitigating Climate Change

Daniel A. Krzyzanowski Energy Economics Group Paul Scherrer Institute, Villigen

http://www.psi.ch

NIDECO Colloquium

"Selected Aspects of Sustainable Development"

Zurich, 17 th June 2004

(2)

Hydrogen Economy: A Sustainable Transportation Option and Its Role in Mitigating Climate Change

Dissertation supervisors:

Prof. A. Wokaun and S. Kypreos

Research focus:

•Global Regionalized Transport Demand projections until the years 2050

•Market allocation of different technologies

•Evaluation of policies for reducing emissions resulting from transportation

(3)

Why to model transportation?

• Large emitter of CO 2 and other pollutants

• Increasing energy consumption

• Security of energy supply

291

66

841

46.8 450

211

1221

183

0 200 400 600 800 1000 1200 1400

Europe OECD Pacific OECD North America China CO2 emissions [million metric tonnes]

1970 1997

Source: IEA (2001)

“Sustainable mobility – the ability to meet the needs of society to move freely, gain access, communicate, trade and establish relationships without sacrificing other essential human or ecological values today or in the future”

World Business Council for Sustainable Development (2001)

(4)

Approach

• Assessment of alternative technology pathways to comply with sustainability goals in the transportation sector

• Global, multi-regional model

• Scenario-based approach, based on cost optimisation

• Examination of climate and other policies

(5)

Overview diagram of the model

Demand/supply Transportation

model Demand/supply

Transportation model Market demands

- Personal Vehicles - Light Duty Trucks - ...

Market demands

- Personal Vehicles - Light Duty Trucks - ...

Technology database

- Personal Vehicles - Light Duty Trucks - ...

Technology database

- Personal Vehicles - Light Duty Trucks - ...

Results

- Technology market share - Emissions balance - Fuel balance - Cost balance - ...

Results

- Technology market share - Emissions balance - Fuel balance - Cost balance - ...

Constraints

Constraints

(6)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Market demands

• 2 main types of transportation (freight and passenger)

• Different market sub-segments

Passenger transportation Passenger

transportation Freight

transportation Freight transportation

(7)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Market demands

Worldwide demand for freight transportation

0 1000 2000 3000 4000 5000 6000

1000 6000 11000 16000 21000 26000 31000 GDP/Capita

Deamnd for freight transportation [G T km]

Low growth (PAO,EEU,FSU)

Moderate growth (WUE,NAM)

High growth (LAM,MEA,PAS)

(8)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Market demands

Share of modes in Latin America

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

5000 6000 7000 8000 9000 10000 11000

Demand [1e6 p-km]

S h ar e o f mo d es [ % ]

Buses

Personal cars Railroad

High Speed Transport

(9)

Technology database

Specification of transport technologies:

Efficiencies

Costs

Emissions

Fuels

etc.

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

(10)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Transportation model

Stand-alone model

Optimisation for allocation of transport technologies

Combination of market demand and supply

11 world regions

(11)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Transportation model

Cost curve with learning

Cumulative installed capacity Price of

1km travelled

by car

Costs which do not undergo learning Costs that

undergo learning

Cost curve

Floor cost

Technologies competing on the market:

Non-learning

Learning (ETL)

Different sectors

(12)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Illustrative results – market shares

Personal cars in North America

0 1000 2000 3000 4000 5000 6000

1990 2000 2010 2020 2030 2040 2050

Demand for transportation [G pkm]

Hybrid: methanol/FC (ETL) Hybrid: gasoline/FC (ETL) Electric (ETL)

Other

Hybrid: gasoline/LPG Hybrid: gasoline/electric Advanced diesel Diesel

Advanced gasoline Gasoline

(13)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Illustrative results – market shares

Buses in North America

0 100 200 300 400

1990 2000 2010 2020 2030 2040 2050

Demand for transportation [G pkm]

ADV CNG CNG ADV diesel Diesel

(14)

Transportation model Transportation

model Market

demands Market demands

Technology database Technology database

Constrains

Results Results

Illustrative results – policy

measures (example of CO 2 tax)

Changes in transportation prices for personal cars

0 100 200 300 400 500 600 700 800 900

C o st s [ U S $ 95 / 1000 p -km ]

Gasoline Adv anc ed gasoline

Diesel passenger

Adv anc ed diesel

Hy br id:

gasoline-

Hy br id:

gasoline-

Elec t r ic ( ETL)

Hy br id:

gasoline-

Hy br id:

met hanol-

H2 FC ( non- ETL)

CO2 tax Fuel VAROM FIXOM

Inves tm ent cos ts

(15)

Next steps

• Expansion to full 11-world region mode

• Implications of atmospheric policies

• Conditions for introduction of new technologies / fuels

• World / regional fuel balances

• Potential for renewable fuels

• Costs of sustainable development in the transportation sector

• Inclusion of fuel chains

• Different market share allocation algorithms

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