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Lawmakers see hydrogen, alternative fuels in the future
By Dan McCue
Staff Writer
The words rolled off Sen. Lindsey Graham’s lips like a preacher’s sermon early Sunday morning.
“As a nation, we need to become less dependent on foreign oil,” he said at the start of a recent conversation with the Charleston Regional Business Journal. “It would simply be irresponsible if 20 years from now we’re just as reliant on Middle Eastern oil to drive our economy as we are today.
“We need to wean ourselves from that drug,” he continued, clearly growing more impassioned. “And I think South Carolina, with its deep research and automotive communities, is going to be key to making that a reality.”
It’s a vision that Graham, co-chairman of the Senate Hydrogen Caucus, shares with Rep. Bob Inglis, R-S.C.: Harnessing and furthering hydrogen research already taking place and spinning it not only into a significant source of the nation’s energy supply, but as an economic development driver for the state’s future.
The centerpiece of this effort is the
H-Prize Act of 2006, which provides incentives for hydrogen breakthroughs within the next 10 years. Inglis sponsored the bill in the House, which approved it 416-6 in May, while Graham is co-sponsoring it in the Senate with Sen. Byron Dorgan, D-N.D.
The act is intended to provide results-driven financial incentives and prestigious national prizes in order to attract the best and brightest teams of entrepreneurs, scientists and engineers to lead the way to a hydrogen economy.
The H-Prize is a monetary reward to innovators who overcome the technical scientific challenges of moving to a hydrogen economy. Scientific breakthroughs in storage, production, use and distribution will receive $1 million. Up to four awards would be made every other year.
A successful prototype use of hydrogen can expect a $4 million award every two years. One grand prize winner would be awarded $10 million in cash and up to $90 million in federal funds to match private capital to be sure that the advancement is headed toward commercialization.
Although recipients of the prize could theoretically be located anywhere, Graham believes as a national leader in hydrogen research, Palmetto State institutions will be particularly competitive.
“Look at all that’s going on here,” he said. “The University of South Carolina is developing hydrogen fuel cells, Clemson is working on hydrogen vehicles, Aiken County has established a hydrogen research center and the Savannah River Site is a leading research facility in hydrogen storage and technology. BMW is developing a hydrogen vehicle, and Toyota already has one that Gov. (Mark) Sanford and I have driven.”
These groups and others recently united behind the South Carolina Hydrogen and Fuel Cell Association, which coordinates the state’s efforts to be a leading player in the emerging hydrogen economy.
“My goal is for South Carolina to become the Detroit of hydrogen, without the crime,” Graham quipped. “Our research footprint in this area is as strong as any place in the nation. What this bill does is put incentives on the table.”
By Graham’s reckoning, the current development status of the hydrogen-powered vehicle is probably analogous to where the development of the gasoline-driven automobile was at the dawn of the last century.
But he’s quick to add: “That was an incredibly exciting era in the creation of the automobile we all drive today.”
To drive the point home, he pointed to the festivities last March to celebrate the opening of the Center of Hydrogen Research in Aiken. It was during that event that Graham climbed behind the wheel of Toyota’s prototype hydrogen vehicle and asked how to turn it on.
“They told me it was on, but there was absolutely no noise. It was the most quiet high-performance vehicle imaginable,” he said. “The problem is, right now, they cost $2 million a piece.”
“The hydrogen automobile works, but there’s still a long way to go,” Graham continued. “You have to get pumping stations up. You have to find ways to store hydrogen safely. … We are probably 10 to 15 years away from this being a reality, but I will be very disappointed if, in 15 years, American consumers don’t have a selection of hybrid cars to choose from. I think we’d be crazy as a nation to let that happen.”
Of course, Graham and Inglis aren’t the only ones in South Carolina who are talking about alternative fuels.
Earlier this month, in fact, it was a priority item for discussion when the National Governors Association convened its annual meeting, held this year at the Charleston Place Hotel.
The association’s natural resource committee engaged governors in conversations about the development, deployment and infrastructure needs to accelerate use of alternative fuels.
Representatives from the automotive and mining industries and the U.S. Department of Energy were also on hand to discuss issues related to existing fuels such as ethanol, the development of coal to liquid fuels and hydrogen and their deployment into the U.S. marketplace.
Graham said it is appropriate such discussions are taking place here.
“South Carolina really is at the cutting edge of a new day in national energy policy, and one of the main reasons is our strength in hydrogen research,” he said.
That research, he said, also forms the basis of his vision for the state’s economic development future.
“Where research is the most robust and most mature, that’s where you have the best hope of manufacturing taking shape,” he said. “We are at the cutting edge of hydrogen research, and if we can foster the development of this energy source, I see no reason why we wouldn’t also be at the forefront of manufacturing hydrogen vehicles.”
Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charlestonbusiness.com.
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