Fuel cell vehicles can be powered directly by hydrogen or, with an onboard chemical processor, other liquid fuels such as gasoline or methanol. Most analysts agree that hydrogen is the preferred fuel in terms of reducing vehicle complexity, but one common perception is that the cost of a hydrogen infrastructure would be excessive. According to this conventional wisdom, the automobile industry must therefore develop complex onboard fuel processors to convert methanol, ethanol or gasoline to hydrogen. We show here, however, that the total fuel infrastructure cost to society including onboard fuel processors may be less for hydrogen than for either gasoline or methanol, the primary initial candidates currently under consideration for fuel cell vehicles. We also present the local air pollution and greenhouse gas advantages of hydrogen fuel cell vehicles compared to those powered by gasoline or methanol.

Market penetration models are presented, illustrating that direct hydrogen fuel cell vehicles could eventually provide industry with substantial return on investment without government subsidy, while at the same time significantly reducing environmental degradation and oil imports. This market penetration model estimates the likely number of fuel cell vehicles that might be sold in the United States over the next three decades, based on the projected costs of these vehicles and the cost of hydrogen compared to other clean vehicles that might compete for the California zero emission vehicle market. Initial results are shown comparing the market penetration, societal benefit/cost ratios and return on investment estimates for direct hydrogen fuel cell vehicles compared to fuel cell vehicles with onboard fuel processors including methanol steam reformers and gasoline partial oxidation systems.

Fuel cell vehicles can be powered directly by hydrogen stored on the vehicle, or indirectly by extracting hydrogen from onboard liquid fuels such as methanol or gasoline. The direct hydrogen fuel cell vehicle is preferred, since it would be less complex, have better fuel economy, lower greenhouse gas emissions, greater oil import reductions and would lead to a sustainable transportation system once renewable energy was used to produce hydrogen. The two oft-cited concerns with direct hydrogen fuel cell vehicles are onboard hydrogen storage and the lack of hydrogen supply options. Directed Technologies, Inc., working with the Ford Motor Company under a Department of Energy cost shared contract to develop direct hydrogen fuel cell vehicles, has addressed both perceived roadblocks to direct hydrogen fuel cell vehicles. We describe realistic, cost effective options for both onboard hydrogen storage and for economically viable hydrogen infrastructure development.

Directed Technologies, Inc. has previously submitted a detailed technical assessment and concept design for a mid-size, five-passenger fuel cell electric vehicle (FCEV), under contract to Argonne National Laboratory. As a supplement to that contract, DTI has reviewed the literature and conducted a preliminary evaluation of two energy carriers for the FCEV: hydrogen and methanol. This report compares the estimated fuel efficiency, cost of producing and delivering the fuel, and the resultant life cycle costs of the FCEV when fueled directly by hydrogen and when fueled by methanol with on-board reforming to produce the required hydrogen-rich gas for the fuel cell. This work will be supplemented and expanded under the Ford contract with the Department of Energy to develop the FCEV and its fuel infrastructure.