A Hydrogen Economy an Fuel Cells: An Overview

Publication Date: January 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

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Abstract:

There is growing interest in the use of hydrogen as the main fuel for stationary, mobile, and transportation applications, especially using fuel cells. This is particularly true in light of the Bush Administration's efforts to increase research and development for these technologies. In his January 2003 State of the Union Address, President Bush announced a new, five-year research initiative on hydrogen fuel and fuel cells. This effort is a key component of the Administration's proposed energy policy.

Policymakers are interested in hydrogen and fuel cells because they could potentially lead to significant societal benefits. Depending on how the fuel is produced and distributed, hydrogen fuel and fuel cells could help significantly reduce pollution and greenhouse gas emissions. Further, if hydrogen were produced using domestic energy supplies, it could help reduce dependence on imported petroleum. Also, fuel cells could be used to improve the efficiency and reliability of electricity generation.

However, there are some key barriers to the development of a "hydrogen economy." Most importantly, the current cost of both fuel cells and hydrogen fuel makes them uncompetitive for most applications. Reducing these barriers is one of the driving factors in the government's involvement in hydrogen and fuel cell research and development. But this involvement raises concerns, including the cost of such research and the possibility of the government "picking winners" among competing technologies.

This report discusses six key questions related to the hydrogen economy and fuel cells: 1) what is hydrogen fuel; 2) what is a fuel cell; 3) how will hydrogen fuel be used; 4) where will hydrogen fuel come from; 5) what would it mean to move to a hydrogen economy; and 6) what role can Congress play. This report will be updated annually, or as events warrant.