Demand for hydrogen fuel slows progress

AIKEN --- A year after Aiken County officials announced plans to become a part of a nationwide hydrogen energy initiative, usage of this alternative fuel source has increased but its everyday potential still seems years in the future.

Last November, Aiken County received a loan of more than $500,000 to open a hydrogen fuel station at Sage Mill Industrial Park, said Fred Humes, executive director of Aiken-Edgefield Economic Development and the Center for Hydrogen.

The station opened in late March -- the second one in the state and the first outside Columbia. That station and a nearby Bridgestone/Firestone plant's use of hydrogen-fueled forklifts were cited as signs of the initiative's success. However, few strides have been made locally or nationally in creating hydrogen-fueled vehicles.

"Right now, the focus is on using the energy for forklifts and back-up units for cell phone towers," Mr. Humes said. "We'll probably see the first vehicles in 2014 or 2015 in greater populations, and some time after that in Aiken."

Earlier this year, the U.S. Department of Energy proposed a $68 million stimulus budget for hydrogen and fuel cell energy and research. Unfortunately that was a decrease of more than $144 million from the budget last year, said Patrick Serfass, National Hydrogen Association spokesman. Last month, Congress voted to restore most of the budget, with more than $180 million approved for the program and hydrogen cars research.

"Congress reviewed the budget and determined that it didn't make sense to cut the budget so low," Mr. Serfass said. "They put more money in so that there could be continued work on hydrogen vehicles and other projects."

Though the Obama administration has shown its support, there is still a lack of interest in the energy source by businesses and the community, primarily because it costs more, Mr. Humes said.

The station in Aiken fuels a truck that is used for educational purposes at schools, fairs and other events, Mr. Humes said. It also has the capability to fuel several vehicles and other power sources with about 400 kilograms of hydrogen fuel available weekly, but there is a lack of hydrogen-fueled vehicles in the area, Mr. Humes said. There is also no nearby hydrogen source for the station, which affects the cost of hydrogen energy.

"The thing that's holding a lot of the technology back is the demand for hydrogen," he said. "It needs to be higher so that we can cut down the prices."

Bridgestone/Firestone has benefited from the federal funding, with 19 of its forklifts using hydrogen, said Mitch Musetter, engineering team leader for the company. The tire plant has saved time and money by using hydrogen fuel cells to power its forklifts as opposed to electric batteries, which had to be replaced three times a day.

"We get a longer run time out of the hydrogen fuel cells, more consistent operation of the trucks and it's better for the environment," he said. "It gives us more flexibility in our fleet to have those forklifts."

One hydrogen energy program that did not see a return on funding is Savannah River National Laboratory, which researches the use of nuclear hydrogen energy.

"It impacts the work and programs they're doing out there, and it's a shame that the DOE was short-sighted in not supporting that project," Mr. Humes said.

Hydrogen supporters, however, aren't deterred.

The development of hydrogen technology continues to see progress in Aiken and across the state, said Shannon Baxter-Clemmons, the executive director of South Carolina Hydrogen Energy and Fuel Cell Alliance.

Genco Distribution Systems recently received $6.1 million in federal stimulus funds to use hydrogen to run its 25 forklifts at the Kimberly Clark plant, and at four other sites across the country, she said.

More than $15 million in stimulus money will also help add 113 jobs at Kemet, a Simpsonville, S.C., plant that manufactures capacitors for hydrogen fuel cells, Dr. Baxter-Clemmons said. There are also plans to build a hydrogen fuel station in Clemson and place hydrogen-powered cell phone towers throughout South Carolina.

"It's not just a positive for the environment, Bridgestone is an example of the increased productivity and the future of hydrogen energy," she said. "It will do away with some industries by using this energy, but it will be a net gain of job creation. That's our main goal for South Carolina -- creating jobs."

Reach Stephanie Toone at (803) 648-1395, ext. 110 or stephanie.toone@augustachronicle.com.