Brendon Harre sees a future for hydrogen trains and the end of the carbon era as hydrogen powers heavy transport

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By Brendon Harre*

Steam trains signaled the start of the carbon era.

Will hydrogen trains signal its end?

The world’s first hydrogen train is now in service — Engadget

New Zealand’s goal of being zero carbon by 2050 is like ‘crossing a river by feeling the stones’. The goal is clear but each step is uncertain requiring exploration.

New Zealand can and will follow countries like Norway with its increased use of electric battery technology in the transport industry.

Hydrogen FCEV could specialise in the heavy and longer range end of the transport market

There is a very good case being made by Toyota that electric battery vehicles will specialise in the short range light vehicle end of the transport market while hydrogen fuel cell electric vehicles will specialise in the longer range heavier vehicle end.

Advances in hydrogen electric fuel cell technology and renewable hydrogen production gives New Zealand another opportunity to step towards its zero carbon goal.

This opportunity is particularly relevant to the South Island of New Zealand due to the longer distance journeys being made in that part of the country. The South Island has four rail options;

  1. Electrify the 1150 km South Island rail network and run electrical multi-unit (EMU) trains -this has the highest capital costs due to the multi $billion cost to electrify the railway lines. The advantage is it has the lowest ongoing operating costs wrt energy use. Auckland and Wellington commuter rail services have used this option. Large parts of the North Island main trunk line are electrified but it is a struggle to justify maintaining and expanding this electrified line. For the South Island, which has no electrification, the capital costs -likely to be more than $3 billion for full electrification, means this option is not viable. Potentially the 50 km of Greater Christchurch track between Rolleston and Rangiora could be electrified -this limited electrification option would cost about $150m based on the cost to extend electrification in Auckland.
  2. Experiment with electric battery trains – like Japan and the UK. This option has lower capital costs due to not needing to electrify the railway lines and the next lowest operating costs wrt energy use. Electric battery trains have a range of about 150 km so are potentially viable for suburban passenger services. Unfortunately, electric battery trains do not have the range to replace the longer distance South Island Coastal Pacific or TranzAlpine passenger train services. Electric battery trains also have long charging times, so expensive trains with high capital costs would have reduced operating times, which is not an efficient use of scarce capital. Electric battery trains can though be simply charged by hooking them up to the power grid -no new energy distribution infrastructure is required.
  3. Experiment with hydrogen trains -like Germany. Hydrogen trains have lower capital costs but at the expense of higher operating costs wrt energy use. Hydrogen trains have a range of about 1000 km so can provide both suburban and regional South Island services. Refueling times are short (15min), which is similar to diesel trains. Hydrogen trains will require its own hydrogen production, distribution and storage facilities. On fixed rail routes this is not a too onerous constraint -the South Island rail network would only need 4 or 5 onsite production and dispensing facilities at strategic locations to provide full network coverage.
  4. Continue with diesel trains. This option has the lowest capital and the highest operating costs. Diesel trains are slow, noisy and polluting. From a tourist perspective they do not contribute to the countries clean green image. Diesel has an established fuel supply infrastructure network. All the political parties in the coalition government campaigned on introducing suburban diesel commuter rail services to Christchurch. Following the Kaikoura earthquakes the diesel train Coastal Pacific service was reinstated with an upgraded service.

KiwiRail has received $40 million of Crown funding to increase patronage on the Coastal Pacific passenger service. The funds will be used to operate the Picton to Christchurch service year-round, add an additional 63-seat carriage for peak seasonal traffic, and add a new premium luxury carriage.

The business cases of the three renewable energy South Island train options can easily be compared. The assessment essentially hinging on whether the capital and ongoing maintenance costs of electrifying the rail network is greater than the capital and maintenance costs of building more electrical generation and storage capacity to make up for the difference in energy use between each renewable train option.

Hypothetically a hydrogen train company could replace the South Island diesel train fleet with hydrogen trains, hydrogen production facilities and wind turbines to generate the power to make the hydrogen. Given enough generating capacity, which New Zealand has in the form of many consented but not built wind farms, hydrogen trains could be completely energy self-sufficient. This system would need backup storage capacity for when the wind is not blowing. This could either be hydrogen storage itself or something like a local pumped hydro-electric scheme. It is likely this whole system could be achieved for the South Island at a lower cost than the $3bn-plus cost to electrify the tracks option.

Note: 5c/kWh is the equivalent to $50/MWh

Generating renewable hydrogen by electrolysis of water is becoming competitive with the natural gas steam methane reforming production method and is the direction where the industry is headed.

According to the Wide Spread Adaption of Competitive Hydrogen Solution -Nel Hydrogen document if electricity prices can be sourced for US$60 (NZ$90) per MWh for onsite production plus dispensing facilities then renewable hydrogen can achieve fossil fuel parity.

Electricity spot prices in New Zealand

For a hydrogen train company or another company wanting to generate renewable hydrogen using the electricity grid as the primary energy source, electricity price hedging or back-up storage capacity is likely to be the biggest cost issue. This is due to high and volatile electricity spot prices in New Zealand’s electricity market. Price volatility has corresponded to low South Island lake storage. Hydrogen can be stored but I doubt it is possible to store a whole season’s worth of hydrogen in New Zealand.

New Zealand Inc could overcome the high ‘dry year’ electricity spot price issue by investing nationally in the most efficient pumped hydro scheme(s) that provides seasonal storage capacity for the entire electricity grid. Consideration should be given to the benefits of ‘dry year’ security of electricity supply from Associate Prof Earl Bardsley’s Onslow pumped hydro proposal. Which alongside other benefits would assist New Zealand to grow its renewable energy economy.

Earl Bardsley describes how legislation could ensure Contact and Meridian power companies build the proposed pumped hydro scheme (at a cost of about $1billion) by mandating lake level limits for their South Island hydro lakes. This legislation would in effect stop the power companies generating when lake level storage is low and prices are high. The power companies would respond by building extra storage capacity so they could sell during periods of high demand and low supply. This would be a ‘stick’ -if it wasn’t the power companies would already have built the pumped hydro scheme, as the Onslow pumped hydro proposal was first mooted in 2005. ‘Carrots’ could be assistance with debt funding costs (the government could pay some or all of the interest costs) and assistance getting resource consents. This approach would unlock a lot of investment from relatively little government expenditure. Not just directly in building the pumped hydro scheme but indirectly through security of electricity supply leading to more investment in renewable energy production and zero carbon transport modes.

New Zealand’s 2035 goal of 100% zero carbon electricity generation is possible by building more renewable electricity generation and using pumped hydro instead of coal or natural gas as the seasonal energy back-up.

The even bigger prize though is replacing CO2 emitting transport modes with CO2 neutral modes according to University of Canterbury researcher -Tom McKinlay.

If a hydrogen train company or other hydrogen or electric battery transport mode companies had certainty about electricity prices then they are more likely to invest in renewable energy and carbon neutral transport schemes.

Unfortunately this opportunity for New Zealand Inc is being messed up by party politics. National Party Taranaki MP -Jonathan Young, in particular, playing fast and loose with the facts in media statements about making hydrogen from Taranaki’s natural gas. Claiming a proposed scheme “is built around the world’s highest-efficiency hydrogen production process coupled with a cutting-edge natural gas power generation system that includes inherent 100 per cent carbon capture”, when in fact this technology has yet to be proven effective internationally. In the meantime any hydrogen produced from natural gas will be CO2 emitting like other fossil fuels. The standard steam methane reforming production method emits 9 to 12 tones of CO2 for every ton of hydrogen produced. Even if carbon capture and storage is successful, the infrastructure required to store and distribute large quantities of hydrogen coming from Taranaki’s distant and isolated natural gas fields is another untested technology factor.

Climate change is going to one of the biggest political issues of 2019 according to many political pundits. Experienced pundit -Linda Clark saying.

Climate change -the recent COP24 conference in Poland underscored that it’s no longer enough to keep talking about reducing emissions. We need to change how we act. That’s a challenge for any government. National will make it very hard for the government to move (note how quickly they spooked the PM over prospective fuel taxes). Finding the politically saleable way forward is going to be a real test of the coalition’s skill and persuasion. This issue needs a bipartisan approach -but there won’t be one.

I am an optimistic fan of social democracy. Climate change will be a test of whether democratic countries can, as former Chinese Premier Deng Xiaoping said, ‘cross the river by feeling the stones’. I will be profoundly disappointed if western democratic countries like New Zealand cannot negotiate the uncertainty and exploration challenges of climate change.

New Zealand businesses want to be part of the zero carbon technological era. The New Zealand Hydrogen Association was formed in September 2018 by private sector companies with seed funding from the Ministry of Business, Innovation and Employment. The founding members include Fulton Hogan, HW Richardson Group, Hyundai, Siemens (NZ), Green Cabs, Real Journeys, and Contact Energy. Toyota joined in November.

Richard Lauder, CE of Real Journeys, one of the founders of the Association, says his company is looking forward to exploring the possibility of reducing carbon emissions by using renewable hydrogen for some of New Zealand’s most iconic tourism offerings.

“Our specially designed fleet of bullet coaches travel 1.3 million kilometres each year between Queenstown and Milford Sound and the prospect of low emission hydrogen fuel cell coaches running this route would put Real Journeys at the forefront of tourism globally,” says Richard Lauder.

Recommendations

  1. For the government to negotiate with Meridian and Contact Energy for the building of the Onslow Pumped Hydro scheme.
  2. For the government to fund the trial of a hydrogen train on the Coastal Pacific route.
  3. For the Low-Emission Vehicles Contestable Fund, that has been supporting the increase in electric battery vehicles in New Zealand, to be expanded to include hydrogen vehicles and different transport modes -rail, maritime or aviation as well as roads. The fund provides up to $7 million per year to co-fund up to 50% of project costs with private and public sector partners in areas where commercial returns aren’t yet strong enough to justify full private investment.

This is a repost of an article here. It is used with permission.

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