THE ICELANDIC EXAMPLE: PLANNING FOR HYDROGEN FUELED TRANSPORTATION IN OREGON by JEFFREY DEAN FISHER A THESIS Presented to the Department of Planning, Public Policy and Management and the Graduate School of the University of Oregon in partial fulfillment of the requirements for the degree of Master of Community and Regional Planning June 2009 "The Icelandic Example: Planning for Hydrogen Fueled Transportation in Oregon," a thesis prepared by Jeffrey Dean Fisher in partial fulfillment of the requirements for the Master of Community and Regional Planning degree in the Department of Planning, Public Policy and Management. This thesis has been approved and accepted by: 11 Committee in Charge: Accepted by: Dr. Robert Young, Chairrl Dr. Greg Bothun Mr. Roger Ebbage, Director Energy Programs, Lane Community College; Northwest Energy Education Institute Dean of the Graduate School © 2009 Jeffrey Dean Fisher iii IV An Abstract of the Thesis of Jeffrey Dean Fisher for the degree of Master of Community and Regional Planning in the Department of Planning, Public Policy and Management to be taken June 2009 Title: THE ICELANDIC EXAMPLE: PLANNING FOR HYDROGEN FUELED TRANSPORTATION IN OREGON Approved: The ability to provide an adequate supply ofrenewable energy necessary to offset the emissions of"zero emission" vehicles is of importance for Oregon's planners and policy makers. An increase in electricity generation caused by the electricity required for zero-emissions hydrogen fuel cell vehicles will result in an increase in greenhouse gas emissions if renewable energy is not installed to meet hydrogen fuel cell needs. What are the renewable energy implications for Oregon planners to consider for meeting future fuel cell zero emission vehicle (ZEV) needs? Work done in Iceland can serve as an example for Oregon's need for renewable energy to meet ZEV needs. Icelandic data about hydrogen generation and the renewable energy requirements necessary for ZEVs at the Gtj6thaIs hydrogen fueling station set a benchmark for Oregon planners to consider when figuring the impact of ZEVs. vCURRICULUM VITAE NAME OF AUTHOR: Jeffrey Dean Fisher PLACE OF BIRTH: Salem, Oregon DATE OF BIRTH: November 30, 1966 GRADUATE AND UNDERGRADUATE SCHOOLS ATTENDED: University ofOregon, Eugene Lane Community College, Eugene, Oregon DEGREES AWARDED: Master ofCommunity and Regional Planning, 2009, University ofOregon Bachelor of Science in Environmental Studies, 2007, University ofOregon Associate ofApplied Science, Energy Management Technician: Renewable Energy Option, 2005, Lane Community College AREAS OF SPECIAL INTEREST: Renewable Energy Climate Change Planning PROFESSIONAL EXPERIENCE: Board Member of the University ofOregon Energy Conservation and Alternative Futures Fund (ECAFF), 2005~07. Event Organizer and Planner, Renewable Energy Conference, Breitenbush Conference Center, 2005-06. Contributor to the University ofOregon Emergency Operations Plan, 2008. Vi ACKNOWLEDGMENTS I would like to extend my sincerest appreciation to my committee members: Dr. Robert Young, Dr. Greg Bothun, and Mr. Roger Ebbage. Their guidance and support have been instrumental in the successful completion ofthis thesis. In particular, I wish to thank Dr. Robert Young who devoted a tremendous amount oftime to this project. His expertise, encouragement, and honest feedback assisted me and helped with all facets ofthis thesis. Dr. Greg Bothun contributed immeasurably towards solidifying the methodology and findings sections ofthis study. Without his guidance and ability to help me sort out the details of this study, I would still be struggling with the methodology. It was Greg who initially challenged me to attend graduate school in order to help develop energy plans that ameliorate and mitigate the effects of a changing climate. I would like to thank Mr. Roger Ebbage for his educational vision and programs, constant encouragement, help, and wealth ofknowledge regarding energy generation and management. It was Roger and his programs that led me down the path of energy planning. Each of my committee members has challenged me to think about planning issues in different ways. I would also like to thank my wife, Kate, for her encouragement to further my education, for the opportunity she gave me to attend graduate school, and for the sacrifices she made while I was in school. It was her unwavering support and encouragement that made this thesis possible. Thanks also to my children and family, who have been supportive in my desire to help others with the skills I have acquired while in school. Vll TABLE OF CONTENTS Chapter Page I. INTRODUCTION 1 Background 2 Methodology 6 Purpose of This Study 8 Organization of This Thesis................................................................................... 9 II. LITERATURE REVIEW........................................................................................ 10 Emissions and Vehicles 10 Emissions and Health......................... 11 Hydrogen Fuel Cell ZEVs 16 Emissions Reductions in a Regional Context........................................................ 18 Regional Solutions to Emissions Reductions...... 19 Iceland's Implementation of Hydrogen and Renewable Energy........................... 20 Summary 23 III. REGIONAL PROFILES........................................................................................ 25 Settlement and Growth...................................................................... 26 Energy Use............................................................................................................. 28 Energy Portfolios 30 Summary 40 IV. METHODOLOGY 41 Conversion of Gtj6thaIs Data 42 Solar Assumptions................................................................................................. 44 Wind Assumptions................................................................................................. 46 Oregon Renewable Energy Analysis 47 Scaling Gtj6thaIs Data to Oregon.......................................................................... 51 Scaling Gtj6thaIs Data to Oregon's Electricity Distributers.................................. 52 Chapter Vlll Page V. FINDINGS.............................................................................................................. 54 Hydrogen Fueling Station Needs 55 Evaluation of Renewable Energy Needs................................................................ 62 Renewable Energy Requirements 65 Electricity Distribution Requirements 66 Individual Requirements 67 Scaling to One Million Vehicles 68 VI. SUMMARY AND IMPLICATIONS.................................................................... 70 Introduction............................................................................................................ 70 Summary of Findings.................................................... 73 Case Study Findings 73 Methodological Findings 75 Implications of This Study 77 Future Research 78 APPENDIX: CORRESPONDENCE WITH JON BJORN SKULASON 81 BIBLIOGRAPHY 85 IX LIST OF FIGURES Figure Page 3-1. Installed Capacity in Iceland, 2006 31 3-2. Installed Capacity in Iceland, 2006. 31 3-3. Installed Capacity in Iceland, 2005 32 3-4. Installed Capacity in Iceland, 2005 32 3-5. Electricity Generation in Iceland, 2006 33 3-6 Electricity Generation in Iceland, 2006................................................................. 33 3-7. Electricity Generation in Iceland, 2005 34 3-8. Electricity Generation in Iceland, 2005 34 3-9. New Electricity Generation in Iceland 35 3-10. Oregon Electricity Consumption, 2005 36 3-11. Oregon Electricity Consumption, 2005 36 3-12. Electricity Generation in Oregon, 2006.............................................................. 37 3-13. Electricity Generation in Oregon, 2005.............................................................. 37 3-14. Sixteen-Year Oregon Hydroelectric Generation 38 3-15. Sixteen-Year Oregon Trend in Coal, Natural Gas, and Non-Hydroelectric Renewable Energy Generation 38 3-16. Sixteen-Year Oregon Trend in Natural Gas and Hydroelectric Energy Generation.............................................................................................................. 39 xFigure Page 3-17.2008 Active Oregon Geothermal Projects....................................................... 39 4-1. Energy Conversion for Zero-Emissions Fueling Station.................................... 43 4-2. Oregon's daily VMT assumptions 43 4-3. Number of Vehicles Served Based on Oregon Average VMT........................... 44 4-4. Energy Conversion to PV Requirement 45 4-5. Sizing ofRequired PV Array............................................................................ 45 4-6. Sizing ofRequired 1.5 MW Wind Turbines...................................................... 46 4-7. Comparison of 2005 Oregon Electricity Consumption and Hydroelectric Generation. . . 50 Xl LIST OF TABLES Table Page 4-1. Solar and Wind Generation in Oregon.............................................................. 48 4-2. Oregon's Electric Utilities 53 5-1. Number ofModel Hydrogen Fueling Stations Required Following the Icelandic Example in Oregon by Electricity Provider......................................... 55 5-2. Locations ofHydrogen Fueling Stations 58 5-3. PV and Wind Requirements by Electric Utility................................................. 67 xu LIST OF MAPS Map Page 5-1. Locations ofHydrogen Fueling Station Cities................................................... 59 5-2. Pacific Power's Oregon Service Territory......................................................... 60 5-3. PGE Service Territory 61 5-4. Pacific Northwest PUDs, Municipally Owned Utilities and Electric Cooperatives...................................................................................................... 62 CHAPTER I INTRODUCTION The need to reduce emissions from vehicles has been recognized in Oregon for some time. At present, hydrogen fuel cell vehicles are proposed as one way to reduce vehicle emissions. If renewable energy is not available to generate the hydrogen necessary for these vehicles, the stations generating the hydrogen will use whatever electricity is available. In Oregon, a fraction ofgenerated electricity comes from sources that produce emissions. Thus, providing adequate emissions-free energy to operate hydrogen fuel cell vehicles is necessary for such vehicles to be zero-emissions vehicles (ZEV) and is important for Oregon's planners and policy-makers. On a regional scale, ZEVs throughout a metropolitan area could have a direct effect on the area's emissions. However, an area's electricity needs frequently extend beyond its metropolitan area, and much of this generation in non-renewably produced. While the potential exists for ZEVs to reduce one particular area's emissions, these emissions are only being externalized to somewhere else if non-renewable energy is 1 2being used. In other words, residents' energy generation needs and the resulting emissions produced are not confined to the city in which the residents live. As the process of introducing ZEVs into the market continues, it has become imperative that planners and policy-makers address ZEVs from a regional perspective. Expanded renewable energy installations throughout a region will result in more true ZEVs and not just externalize the emissions to someplace else. Because of the growing concern over greenhouse gas emissions, their global climatic effect, and proposed emissions standards it is in a region's best interest to meet the requirements necessary for future ZEVs in order to reduce overall emissions and to promote greater regional equity by assuming responsibility for the emissions- free electricity required for ZEVs. Background There are many vehicles currently on the market or soon to be on the market (e.g. electric, plug-in hybrid, and fuel cell) that will require electricity to operate. Fuel cell cars are targeted to be available for mass-market sales within the next ten years. These cars are being promoted as being zero-emissions, and as emitting only water. For the purposes of the fuel cell ZEV, electricity is required to extract the hydrogen from the elements with which it is combined because Hydrogen as a gas (Hz) on earth essentially is always combined with other elements. Currently, most hydrogen in the United States, and about halfof the world's hydrogen supply, is produced through the steam reforming ofnatural gas. In total, about 95 % of U.S. hydrogen production is produced from natural gas using steam reforming technology (U.S. Department ofEnergy [USDOE], 2006). Steam 3reformation of natural gas represents only a modest reduction in vehicle emissions as compared to emissions from current hybrid vehicles, and ultimately only exchanges oil imports for natural gas imports (Turner, 2004). Oil production peaked in the United States in 1970 (Duncan & Youngquist, 1999). Natural gas production in the U.S. peaked in 1971 (Youngquist & Duncan, 2003). The fuel cell ZEV has the potential to not produce emissions and to not require fossil fuels if the process uses electrolysis to make hydrogen, the hydrogen is electrolyzed from water with renewable energy, and the supplemental energy inputs for reformulation, transportation or compressing the fuel for on-board storage are met with renewable energy. Fossil fuel use for transportation is not sustainable. Indeed, The Oregon Department of Transportation recognizes "Oil-based transportation is not sustainable environmentally or economically. Our dependency on increasingly scarce fossil fuels, the potential impacts ofglobal warming, and the introduction of new carbon emission standards have pushed both automakers and consumers to find alternative solutions" (Oregon Department of Transportation [ODOT], 2009). The U.S. Department ofEnergy and other market developers see a hydrogen infrastructure based on natural gas steam reformation at the service station. However, the Oregon Department ofEnergy recognizes "manufacturing hydrogen fuel from renewable feedstocks, with the supplemental energy from renewable resources, will prove to be the most sustainable approach" (Oregon Department ofEnergy [ODOE], 2009). The State ofOregon also recognizes the importance of planning for renewable energy and fuel cells in Oregon's Renewable Energy Action Plan (ODOE, 2005): 4Fuel cell technology can play an important role in Oregon's renewable energy future. Oregon commercial and industrial sectors use approximately 30 million cubic feet of hydrogen per year. All hydrogen is imported since there are no commercial hydrogen generation plants in Oregon. If hydrogen used in Oregon were generated in Oregon using renewable resources, new jobs could be created. In the short run, most fuel cells are expected to use non-renewable fuels. However, a goal of this Plan is to foster increasing use of renewable fuels as technologies become feasible. Furthermore, in recognition of the need for renewable energy, Oregon and 23 other states plus the District of Columbia have enacted policies that require electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date (DSDOE, 2008). Transportation (34 %) and electricity (32 %) dominate Oregon's greenhouse gas footprint (State of Oregon, 2008). Installing renewable energy to offset emissions from hydrogen generation would lower both footprints for a ZEY. In essence, if a fuel cell vehicle requires only renewable energy it is contributing to neither vehicle nor power plant emissions. The Oregon Office ofEnergy predicts that carbon dioxide emissions in the state will increase by 33 % from 2000 to 2025, mainly because of increased driving (ODOT, 2006). The Oregon Transportation Plan's 2006 executive summary recognizes the implications of population growth, oil supplies, and global warming as being a challenge when it states that, "Encouraging the use of hybrid, electric and other alternative-fuel engines, increasing public transit, and guiding land use and transportation choices could reduce greenhouse gas emissions" (ODOT, 2006). In 1973, Oregon established nineteen statewide planning goals as part of legislation that created a statewide land use planning system. Statewide Goals 6 (Air, Water and Land Resources Quality), 12 (Transportation), 5and 13 (Energy Conservation) identify the interconnected nature ofOregon's property and transportation, energy, and the environment. ZEVs in Oregon will, at the very least, have an impact on all three of these statewide goals. Planning needs to be done for the introduction of fuel cell ZEVs in Oregon, and planners benefit from having an example to set a baseline, or a line serving as a basis for measurement and calculation to be used for comparison. In this case, the baseline is the renewable energy requirements necessary for the beginnings of fuel cell ZEVs. This baseline is necessary for Oregon's planners to map the transition to factual ZEVs. For the purposes of this thesis, a factual ZEV is defined as a situation where there is no carbon produced during the generation, transmission, or distribution of the hydrogen necessary to power the fuel cell vehicle. There is an example for Oregon to look toward when planning to meet its future hydrogen-powered transportation needs. Iceland is an international leader in the use of hydrogen (Amason & Sigfusson, 2000) and is the first country in the world to commit to replacing fossil fuels with hydrogen. Furthermore, Iceland uses electrolysis to make hydrogen and the hydrogen is electrolyzed from water with renewable energy (hydroelectric power) (Maack & Skulason, 2006). More specifically, Icelandic New Energy (INE), a promoter for using hydrogen as a fuel in the transportation sector in Iceland that also is responsible for the practical research on hydrogen in Iceland, has determined the hydrogen output and the renewable energy requirements necessary to power three fuel cell buses at its GIj6tmJs hydrogen fueling station. 6The work ofIce1and and INE on the beginnings of hydrogen-powered transportation can serve as a model for Oregon by examining what it would take for Oregon to imitate Iceland's current example ofusing renewable energy for zero emissions hydrogen generation at its Grj6thaJs hydrogen fueling station. Through the evaluation of the Grj6thals hydrogen renewable energy requirements, a baseline can be set for Oregon's renewable energy needs. The primary question for this thesis is the following: Can Oregon generate the hydrogen necessary to follow the Icelandic example ofusing renewable energy to generate sufficient hydrogen for zero-emission vehicles using solar and wind energies? The following sub-questions will inform the analysis: • How much installed capacities will Oregon need to follow the Icelandic example? • How can Iceland's information on the renewable energy requirements necessary for hydrogen ZEVs be scaled to Oregon? • What are the suitable energy requirements of hydrogen ZEVs for solar and wind energies? • How many units would need to be installed, and what is the area required for the installation ofwind and solar energies? Methodology While past studies of transportation and energy issues in Oregon have evaluated various impacts, this study will evaluate the extent to which fuel cell ZEVs in the transportation sector will effectively impact the renewable energy requirements of Oregon's energy sector. The primary data sources for this study derive from Iceland and INE and by analysis of The US Department ofEnergy's Energy Information Administration (EIA) and The Northwest Power and Conservation Council (NPCC) data 7on Oregon's energy portfolio, its energy generation, and its energy use. Through this analysis, Oregon's renewable energy is separated from hydropower, and its energy use is compared with its energy generation. The EIA data for renewable energy (excluding hydropower) is not broken down by type. Therefore, this data is inclusive of all types of renewable energy generation in Oregon, which the NPCC lists as being biomass, solar, and wind. Use ofthe NPCC data allows for the filtering ofbiomass from solar and wind data. Iceland uses hydropower and geothermal energy to electrolyze and compress the hydrogen from water because Iceland has vast amounts of geothermal and hydropower available. Analysis of Oregon's hydropower and geothermal data shows its limitations for generating hydrogen. According to the Oregon Department ofEnergy, Oregon's energy portfolio is 44 % hydropower (ODOE, 2008). The actual amount of Oregon's hydropower available to generate hydrogen through electrolysis depends on myriad factors including precipitation, demand, and exports out of state, but mostly from policy that directs its electricity be delivered to Oregon customers at reasonable rates. Oregon's hydroelectric availability has been impacted by the long term drought ofthe Western United States. This study has sized the renewable energy systems necessary to make hydrogen ZEVs from solar and wind energies and not from surplus hydropower and geothermal to best reflect local availability ofgeneration potential and because these are two popular and familiar renewable energy sources with the potential for local involvement in the installations. Solar and wind installations also satisfy state mandated renewable resource portfolio requirements (ODOE 2005). Because the vehicles will be 8charged during different times during the calendar day, and the intermittent nature of solar and wind, hydropower involvement is inevitable. With this in mind, this study used historic data on hydropower generation to show how hydroelectric demand is greater than its generating capability in the context that allocating any surplus that could be used purely for hydrogen generation would result in a rate increase and not be allowed. For solar, this study used research data from a solar energy research institute at the University of Central Florida (Florida Solar Energy Center, 2007) and scaled the results up to meet the megawatt needs of the Grj6tha1s hydrogen fueling station. For wind, this study used the past performance data of Oregon's average output from a 1.5 megawatt wind farm turbine (ODOE, 2007). Purpose of This Study The purpose of this thesis is two-fold: (1) to evaluate the supply of renewable energy necessary for zero-emissions fuel cell vehicles; and (2) to provide a baseline for planners to consider when preparing for zero-emissions fuel cell vehicles. The rationale for this study is based on the normative planning theory and the American Institute of Certified Planners (AlCP) Code ofEthics and Professional Conduct. The Code ofEthics explicitly states that planners "[s]hall always be conscious of the rights ofothers, [s]hall have special concern for the long-range consequences of present actions, and [s]hall promote excellence of design and endeavor to conserve and preserve the integrity and heritage of the natural and built environment" (American Planning Association, 200S). Furthermore, normative planning theory argues that planners should be concerned with how society's limited resources are distributed. Organization of This Thesis The thesis is organized into six chapters. Following this introductory chapter, the second chapter will discuss a review of relevant literature including emissions and vehicles, emissions and health, hydrogen fuel cell zero-emissions vehicles, regional solutions to emission reductions, emissions reductions in a regional context, and Iceland's implementation of hydrogen and renewable energy. Chapter Three will profile the two study regions: Oregon and Iceland. Chapter Four will describe the methodology used in this study, and Chapter Five will discuss the data analysis and findings. Finally, Chapter Six will provide a summary of key fmdings, and discuss the implications of this study and ideas for further research. 9 10 CHAPTER II LITERATURE REVIEW Across the United States, jurisdictions of all levels, from city to county to state, are experiencing the need to provide community and regional planning in the context of a changing climate, emissions reductions, population growth, and energy and transportation needs. The following review of literature addresses the role of zero-emissions vehicles (ZEV) in planning for emissions reductions, and presents information on how fuel cells can be ZEVs. This chapter also reviews Oregon's plans for climate change, energy and emissions, and ZEVs. This is followed by an extended discussion on how energy and transportation emissions reductions improve the public good. This chapter concludes with an exploration of utilizing Iceland as an example for Oregon's ZEV aspirations. Emissions and Vehicles In Oregon, fossil fuel use for energy needs affects our percentage of greenhouse gas emissions. Transportation (34 %) and electricity (32 %) dominate Oregon's greenhouse gas (GHG) footprint (State of Oregon, 2008). Nationally, by sector and fuel 11 type, electricity generation (41 %) and transportation (29 %) are the largest sources carbon dioxide emissions (United States Environmental Protection Agency [EPA], 2009). For many currently proposed ZEVs, transportation and electricity become interconnected because ofa dependency on electricity generation. When a vehicle requires electricity generation as part of its design, the tailpipe emissions costs have been shifted upstream to whatever emissions come from non-renewable energy generation. These externalized costs are still borne by the environment and thus, society. The combustion of fossil fuels in both the transportation and electricity sectors also creates many unhealthy emissions in addition to carbon dioxide (Chu & Porcella 1995; Westerholm & Egeback 1994). Emissions and Health We live on a human-dominated planet that is in the midst of an ecological crisis (Vitousek, 1997). Climate change is affecting the earth and its living systems (Parmesan & Yohe, 2003). The burning of fossil fuels contributes to climate change by increasing the amount of atmospheric carbon dioxide, a greenhouse gas (Karl & Trenberth, 2003). Increasing power generation by conventional fossil-fuel combustion further threatens human health and welfare by increasing air pollution (Cifuentes, Borja-Aburto, Gouveia, Thurston, & Davis, 2001). The U.S. Supreme Court's decision in Massachusetts v. EPA found that the Clean Air Act authorizes the Environmental Protection Agency (EPA) to regulate tailpipe GHG emissions if the EPA determines they cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare (EPA, 2008). Global 12 changes in atmospheric composition occur from anthropogenic emissions ofgreenhouse gases such as carbon dioxide that result from burning fossil fuels (Karl & Trenberth, 2003). Greenhouse gases trap outgoing radiation from the Earth to space, creating a warming of the planet. These gases remain in the atmosphere for a long time. Carbon dioxide's residence time in the atmosphere is 200 years. This results in an accumulation in the atmosphere, and a buildup in concentrations ofgreenhouse gases. Evidence for this increase in greenhouse gases can be found in instrumental observations ofair samples and in bubbles of air trapped in ice cores that show carbon dioxide increasing 31 % since preindustrial times, from 280 parts per million by volume (ppmv) to more than 370 ppmv by 2003 (Karl & Trenberth, 2003). Today it continues its increase, and is now at 388 ppmv and rising. Articles, reports and recommendations on the subject of climate change have drawn a "2 degree line" (no more than a 2°C (3.6°P) increase in global mean surface temperature above preindustrial levels). Many scientists believe that anything beyond 2°C could result in a dangerous climate change with the potential to become a full-blown ecological crisis (Baer & Athanasiou, 2004), which has been defined as "a situation in which human-induced ecological disorder leads to the destruction of ecological conditions on this planet to such an extent that human life, at least, will be seriously impaired for generations, if not destroyed" (Ecological Crisis, 2008). James Hansen, climate expert and Director ofNASA's Goddard Space Science Center, sets a goal ofno more than 1°C above present temperatures to avoid the melting of the Greenland ice sheet and he sets no more than 350 parts per million (ppm) of carbon dioxide in the atmosphere as the level necessary to avoid an ice-free planet. In 2007 we 13 were at 383 ppmv (McKibben, 2007). As you can see, carbon dioxide in the atmosphere continues to increase from 280 ppmv in preindustrial times to 370 ppmv by 2003,383 ppmv in 2007, and 388 ppmv today. While Hanson's work and his specifying an exact number of "allowable" carbon dioxide is contentious to many, it is a fact that the world's glaciers continue to melt while polar and sea temperatures have been increasing. Perhaps the specific number is not as consequential as the general concept discovered by Svante Arrhenius in 1896 that if you halve the amount ofcarbon dioxide in the atmosphere an ice age would occur and conversely, if you increase the level of carbon dioxide in the atmosphere it will raise the Earth's temperature. Prior to the emphasis on GHG reductions to address planning for climate change, vehicle emissions reductions were desired for health benefits. Vehicle emissions are usually divided into categories of regulated and unregulated pollutants. Regulated pollutants consist of carbon monoxide, nitrogen oxides (mainly nitrogen monoxide and nitrogen dioxide), unburned fuel, or partly oxidized hydrocarbons, and particulates. These pollutants are specified by law. Unregulated pollutants are defined as compounds that are not specified by law. However, these unregulated pollutants may well belong to the group ofunburned hydrocarbons, but not as individual compounds. Several of the compounds present in diesel and gasoline engine exhaust are known to be carcinogenic and/or mutagenic (Westerholm & Egeback, 1994). Exposure to carcinogenic and/or mutagenic vehicle emissions is not limited to those produced during the combustion of fossil fuels, but also to environmental contamination of land and water due to accidental spills and releases. 14 Utility emissions vary by source. Of special concern for fossil fuel electricity generation is mercury (hg) emissions. The Clean Air Act regulates 188 air toxics, also known as "hazardous air pollutants." Mercury is one of these air toxics. The Clean Air Act directs the EPA to establish standards for certain sources that emit these air toxics. Those sources also are required to obtain Clean Air Act operating permits and to comply with all applicable emission standards. The law includes special provisions for dealing with air toxics emitted from utilities, giving EPA the authority to regulate power plant mercury emissions. On March 15,2005, EPA issued the Clean Air Mercury Rule, which creates performance standards and establishes permanent, declining caps on mercury emissions. The Clean Air Mercury Rule marks the first time EPA has ever regulated mercury emissions from coal-fired power plants (EPA, 2009). Many smokestack emissions eventually end up in the water. Under the Clean Water Act, states adopt water quality standards for their rivers, streams, lakes, and wetlands. These standards identify levels for pollutants, including mercury, which must be met in order to protect human health, fish, and wildlife. The EPA and various states issue information to the public on waters contaminated with mercury and on the harmful effects of mercury, identify the mercury sources and reductions needed to achieve water quality standards, and warn people about eating fish containing high levels of methylmercury (EPA, 2009). According to the EPA, the primary health effect of methylmercury on fetuses, infants, and children is impaired neurological development. Methylmercury exposure in the womb can adversely affect a baby's growing brain and nervous system. Impacts on cognitive thinking, memory, attention, language, and fine motor and visual spatial skills 15 have been seen in children exposed to methylmercury in the womb. In addition, symptoms of methylmercury poisoning may include impairment ofthe peripheral vision, disturbances in sensations, lack of coordination of movements, impairment of speech, hearing, walking, and muscle weakness (EPA, 2009). While some studies conclude that mercury emissions are lower than previously thought (Chu & Porcella, 1995), it is a fact that mercury emissions are produced in coal-burning power plants, and burning more coal in these same plants will produce more mercury emissions. Numerous studies have been done that document the relationship between clean air and health. A recent study says cleaner air lengthens lives. The federally funded study concluded that cleaner air over the past two decades has added nearly five months to average life expectancy in the United States. Communities that had larger reductions in air pollution on average had larger increases in life expectancies (Pope, Ezzati, & Dockery, 2009). Scientists have long known that particulates in the air can lodge in the lungs and raise the risk oflung disease, heart attacks and strokes. The composition of these particulates is generally dust, soot, and various chemicals that come from factories, power plants and vehicles. Deaths from air pollution, including indoor and outdoor sources, have been ranked as one of the top 10 causes of disability by the World Health Organization (WHO) (Murray & Lopez, 1998). In 1995, WHO estimated that 460,000 avoidable deaths globally occur each year as a result of suspended particulate matter, largely from outdoor urban exposures (World Health Organization [WHO], 1997). Urban exposure to particulates is amplified by motor vehicles that emit particulate matter along 16 with a variety ofother pollutants. Studies in urban areas suggest that motor vehicles contribute from 25 % to 35 % of direct particulate matter emissions, and concentrations near busy roads can be 30 % higher than background levels (Buckeridge, Glazier, Harvey, Escobar, & Frank, 2002). Living in residences near busy streets results in an increased exposure to particulates and other pollutants which contribute to poorer respiratory health. Hydrogen Fuel Cell ZEVs One strategy for reducing greenhouse gas and air pollution emissions is to use renewable energy to meet energy needs and to support the use of hydrogen to meet future zero-emissions transportation needs (Clark et at, 2005). Currently, the United States Department ofEnergy Hydrogen Program is focused on advancing cost-effective, efficient production of hydrogen from renewable, fossil and nuclear energy resources (USDOE, 2009). Hydrogen as a gas (H2) does not exist on earth. It always is combined with other elements. Because hydrogen does not exist on earth as a gas, energy must be used to extract the hydrogen from the elements with which it is combined. Currently, most hydrogen in the United States, and about half of the world's hydrogen supply, is produced through the steam reforming of natural gas. In total, about 95 % ofUS. hydrogen production is produced from natural gas using steam reforming technology (USDQE, 2008). All ofOregon's approximately 30 million cubic feet of hydrogen used each year is imported because there are no commercial hydrogen generation plants in Oregon (ODOE, 17 2005) and Oregon imports 100 % of its natural gas, mainly from Canada and the Rocky Mountain states (ODOE, 2008). Steam reformation of natural gas represents only a modest reduction in overall greenhouse gas emissions as compared to emissions from current hybrid vehicles, and ultimately only exchanges oil imports for natural gas imports (Turner 2004). A dependence on imported natural gas for hydrogen generation would leave hydrogen-powered transportation vulnerable to the same price and supply issues as imported oil (Karimi, 2008). Furthermore, it does not decrease our reliance on fossil fuels to meet our energy needs, nor does a dependence on fossil fuels make hydrogen sustainable. Finally, such dependence does not produce a ZEV. Hydrogen derived from the electrolysis ofwater is extremely pure hydrogen, and the production of hydrogen from renewable energy sources will free the energy system from carbon (Dunn 2002). With this form ofpure hydrogen derived from electrolysis via renewable energy, a fuel cell vehicle is a true zero-emission vehicle, producing only water as byproduct. This means that no greenhouse gases are emitted in the hydrogen generation and use. Studies have shown that hydrogen fuel cell vehicles may improve air quality, health, and climate significantly, whether the hydrogen is produced by steam reforming of natural gas, wind electrolysis, or coal gasification (Jacobson, 2005). However, generating hydrogen by any method aside from renewable energy creates emission changes upstream ofvehicles. The use of coal gasification in particular would damage the climate more than current fossil/electric hybrids (Jacobson, 2005). The overall emissions costs of these upstream non-renewable sources do not outweigh their localized benefits 18 because the emissions are only externalized to some other place and will ultimately further contribute to GHG increases and downstream water and environmental issues. Moreover, there are equity issues involved when one region lowers its emissions by increasing the emissions of another area. Emissions Reductions in a Regional Context Emissions do not stay within a region's boundaries and they can adversely impact some people more so than others (Maantay 2002). Since a spatial relationship exists between pollution and health, what are some benefits of regional involvement in emissions reductions? According to a recent report by Portland based Clean-edge Inc. and Climate Solutions, the Northwest can generate more than 63,000 new family supporting jobs by focusing on five clean technology areas: solar PV manufacturing, green building design, sustainable bioenergy, wind power, and "smart grid" technologies. Furthermore, the Pacific Northwest can seize a leadership role in the clean-tech economy by taking advantage of our already high percentage of renewable energy and make Oregon and Washington world-class leaders in carbon-free electricity (Wilder & Gauntlett, 2008). In a future where a competitive advantage may exist to those with the most carbon-free electricity generation, a proverbial "win-win" situation where the economy, the environment, and equity prosper because of a regional involvement in emissions reductions appears to be not only possible in the Pacific Northwest but more feasible than in most other regions in the U.S. 19 Regional Solutions to Emissions Reductions The State of Oregon's"A Framework for Addressing Rapid Climate Change" (State of Oregon, 2008) embraces regional involvement in emissions reductions: The earth's climate is undergoing unprecedented change as a result of human activity, and this change will have significant effects on all Oregonians, their families, their communities, and their workplaces. A broad scientific consensus tells us that climate change is accelerating, and that it is happening at a speed that was unanticipated even recently. It is urgent that we act now, both to reduce the cause of this earth-transforming crisis by rapidly driving towards a low-carbon economy, and to begin to prepare for and adapt to the changes that mitigation cannot prevent. Ifwe as Oregonians rise to this challenge and make intelligent and well- informed choices, we can minimize the most adverse impacts ofchanging weather patterns on our lives while producing many benefits - including economic opportunities - by leading the world to an environmentally sustainable and globally competitive state economy. The multidisciplinary group that drafted Oregon's Renewable Action Plan (ODOE 2005), the precursor to Oregon's Renewable Energy Portfolio, concluded: Oregon is already making use of renewable technologies including hydro, wind, direct use ofgeothermal, biomass, and solar. But it can and must do better. By building on these achievements with the actions as outlined in this Renewable Energy Action Plan (the Plan), Oregon will continue to be a leader on renewable energy policy and will meet a large fraction of its energy needs with new renewables by the year 2025. The Plan also will playa central role in furthering the Governor's initiatives on sustainability and global warming. The Plan complements the state's energy efficiency programs. Oregon has recognized a relationship between emissions reduction, technology, and gains in the economy, the environment, and equity (the triple bottom line). Oregon's greenhouse gas emissions have grown by 22 % from 1990 levels, and Oregon emissions 20 growth has been greater than the U. S. as a whole (State of Oregon, 2008). Oregon's leaders and planners are actively seeking ways to reduce regional emissions for the public good. Iceland's Implementation ofHydrogen and Renewable Energy Iceland is an international leader in the use ofhydrogen (Amason & Sigfusson, 2000). Iceland is the first country in the world to commit to replacing fossil fuels with hydrogen. Since World War II, Iceland has made a rapid change from relying on imported fossil fuels to its present situation of meeting more than 70 % of its energy needs with renewable energy (Sverrisd6ttir, 2006). Among the countries of the world, Iceland has the highest proportion ofrenewable energy in any energy portfolio (University of Iceland, 2007). Iceland lies on top of the Mid-Atlantic ridge and therefore has natural access to the magma heated steam necessary for the wide-scale development ofgeothermal electricity. Iceland's unique geographic location also allows for abundant hydropower. This, along with their low population makes it possible for them to have the highest proportion of renewable energy. The Icelandic research community is working hard to improve this ratio of renewable energy generation, as well as considering ways to sequester the greenhouse gases emitted from fossil fuel sources. Iceland uses electrolysis to make hydrogen and the hydrogen is electrolyzed from water with renewable energy (Maack & Skulason 2006). Iceland recognized the need for the development of a common vision toward a transformation of the Icelandic economy into one based on hydrogen when the 21 government of Iceland officially declared this as its goal in a statement by the Minister of Environmental Affairs, founding The Hydrogen and Fuel Cell Company on February 17, 1999 (Amason & Sigfusson, 2000). The purpose of this company was to set up a joint venture to investigate the potential for eventually replacing the use of fossil fuels in Iceland with hydrogen. This would allow Iceland could become a pilot country for demonstration of the hydrogen economy (Amason & Sigfusson, 2000) The Hydrogen and Fuel Cell Company soon changed its name to Icelandic New Energy (INE). INE is the promoter for using hydrogen as a fuel in the transportation sector in Iceland and is responsible for all major practical research on hydrogen in Iceland. INE was in charge ofECTOS, the Ecological City Transport System. This 4lh-year project started on March 1,2001 and ended August 30,2005. The overall objective of the ECTOS project was to tackle the problem oflocal urban pollution by using hydrogen for powering part of the transport sector with hydrogen fuel cell buses. The purpose of the ECTOS project was to demonstrate and evaluate a hydrogen-based infrastructure for public transport vehicles and the operation of pollution-free hydrogen buses in a carbon dioxide free environment in Reykjavik, Iceland (Skulason, 2005). INE and Iceland demonstrated that three fuel cell buses could transport in a carbon dioxide free nature, i.e. the production of hydrogen and the running ofthe fuel cell buses add no greenhouse gases to the environment. Furthermore, through their work, INE has demonstrated the integration of the infrastructure at a conventional gasoline station. The infrastructure preparation involved building a hydrogen refueling station integrated into a Shell facility on the outskirts ofReykjavik (Sigfusson, 2007). According 22 to INE, this station, the Gtj6thals station, has a total production capacity of 125 kg a day. "The station produces 60Nm3 every hour during operation. It was scaled to be able to fill 3 hydrogen buses daily, so that they could keep up their 150 - 200km schedule on the filling. Another way to describe the scale ofthe station is that it could produce enough H2 to satisfy up to 600 personal cars in general operation. During the bus testing about 25 kg of hydrogen were filled onto the bus cylinders before they went into service. The cars that now drive in Reykjavik take about 2-4 kg of hydrogen each time" (Icelandic New Energy, 2008). "During the operation of the station in the ECTOS project the station provided the buses with 17.342 kg of hydrogen and in that sense saved the use of almost 50 tons of diesel fuel. In general the project partners are satisfied with this outcome and the valuable learning from operating the world's first commercial hydrogen station" (Skulason, 2005). Since 125 kg of hydrogen a day being dispersed in 3 kg allotments to cars would only meet the needs of40 or so cars a day, this study assume INE is figuring on each car only needing to fill up every two weeks or so. Jon Bjorn Skulason, Icelandic New Energy, concludes in his, "ECTOS, Ecological City Transport System," final public report (Skulason, 2005): Setting out goals and objectives of a project of this size and nature was a difficult thing 4l!z years ago. However the project partners agree that a successful demonstration has taken place, proving that the current stage of technology can be integrated into the modern society of today. In Iceland it has also been demonstrated that this has been done in a CO2free nature, Le. the production ofhydrogen and the running of the fuel cell buses add no greenhouse gases to the environment. Integrating the infrastructure has also been successfully proven at a conventional gasoline station, in a pre- commercial way. The strategic goal was also to show in what way the future society might benefit in social, economic and environmental terms by using hydrogen as a fuel instead of conventional fossil fuels. 23 Throughout the project it has been shown that social and environmental benefits are very visible. However, the current stage of technology does not yet make it commercially economical. Indications are though that the cost of the new technology will come down in the near future and therefore not far into the future the city of tomorrow will benefit in social, economical and environmental way by using hydrogen instead of fossil fuels. At the moment, Iceland is reeling from its economic collapse which began in 2008. It is quite possible this collapse will delay Iceland from meeting its immediate energy goals of replacing fossil fuels with hydrogen. It is unclear at this time how Iceland's ultimate goal of replacing fossil fuels with hydrogen around the year 2050 (Sigfusson, 2007) will be affected by their recent economic problems. Summary Seventeen years ago the Union ofConcerned Scientists issued a statement that put us all on notice (Union ofConcerned Scientists, 1992): We the undersigned, senior members of the world's scientific community, hereby warn all humanity ofwhat lies ahead. A great change in our stewardship of the earth and the life on it is required if vast human misery is to be avoided and our global home on this planet is not to be irretrievably mutilated. Today, environmental issues as they relate to GHG emissions and climate change are even more pressing. For planners, ZEVs pose a wicked problem with no definitive formulation. Every problem can be considered a symptom of another problem and can be explained in numerous ways. The choice of explanation determines the nature of the problem's resolution and this study has attempted to explain this problem in terms of using technology for overall emissions reductions because of the potential of future 24 transportation to impact future electricity generation and its accompanying emissions. The consensus of scientists about the ramifications ofa continued increase in GHG emissions and the accompanying changes in the global climate creates a situation where the planner has no right to be wrong (Rittel & Webber, 1984). This literature review has listed many ofthe dangers involved with increased vehicle emissions while showing an alternative for planners to consider when implementing future transportation plans. If zero emissions are the desired end goal of the planner, then the Icelandic example of the Grj6thals station and its renewable electricity needs for the generation of 125 kg of hydrogen a day is a good model for Oregon's transportation and energy planners. 25 CHAPTER III REGIONAL PROFILES Comparison of Oregon and Iceland In evaluating the renewable energy needs of the Gtj6thals hydrogen fueling station in Reykjavik, Iceland, this thesis refers to the "Icelandic Example." Briefly stated, this example is to use renewable energy to generate and compress the hydrogen necessary for the Gtj6thals hydrogen fueling station in Reykj avik, and to do so onsite to avoid transmitting the hydrogen from its generating facility to its distribution facility. If the hydrogen is made on site, then transmission (pipeline, trucking) is not necessary. What is necessary is renewable electricity for electrolysis being fed into the grid upstream ofthe fueling station. As long as the necessary amount ofrenewable energy generation is ending up at the proper distributor, then onsite hydrogen through electrolysis (in that distributor's region) is zero-emissions hydrogen. Under this scenario, the cost of hydrogen is determined by the cost ofelectricity and not the cost ofgeneration plus the pipelines and/or trucking. Since this study used Iceland's Grj6thals hydrogen fueling station as a model for Oregon, it was important to first understand some ofthe similarities 26 and differences between the two regions. The comparison between Iceland's and Oregon's renewable energy potential is not novel. Ormat Technologies, Inc, a company active in the design, engineering, supply, installation, support and operation of renewable and sustainable energy products, in a July 23,2007 presentation in Portland, Oregon on Getting Geothermal Electricity PrC?jects On Line, which is posted on the State of Oregon's website, 1 assessed Oregon's geothermal potential. During their presentation, the spokesman for Ormat wondered, "Could Oregon become another Iceland? Could Oregon's existing resources, wind, tidal, biomass, solar, and geothermal resources make Oregon perhaps the most sustainable/carbon neutral state in the US." (Fleishman, 2007)? External factors related to historical, demographic, and energy portfolio characteristics presented in this chapter assist in revealing the potential for Oregon to follow the Icelandic example of hydrogen generation at its Grj6thilJs hydrogen fueling station. This chapter summarizes both key similarities and differences relevant to this study. Settlement and Growth A geographical context of Iceland and Oregon shows Iceland as having an area of 39,756 square miles and an estimated population of 276,365 in 2000. The Icelandic government reports that 99 % of the population lives in urban areas and 60 % ofthe people reside in the republic's capital, Reykjavik, or in suburban areas directly outside of the city (Icelandic Foreign Service, 2008). While Oregon has an area of 97,074 square 1 http://www.oregon.govIENERGYIRENEW/Geothennalldocs/OGWG8_0RMAT 27 miles and a 2000 census estimated population of3,421,399, 70 % of Oregon's population lives in the Willamette Valley (Kline, Azuma, & Alig, 2004) and 54 % ofthe population resides in the greater Portland area.2 Iceland's 2008 estimated population growth rate is 0.783 % and its net migration rate is 1.13 migrants per 1000 population (Central Intelligence Agency [CIA], 2008). Oregon's population growth rate is currently declining, possibly due to economic conditions. Its 2006-07 population growth rate was 1.5 % (down from 1.6 % the previous fiscal year) (Oregon Labor Market Information System, 2008) and its 2007-08 population growth rate is 1.2 % (portland State University Population Research Center [PSU], 2008). According to Portland State University, "Between April 1, 2000 and July 1,2007, net migration (people moving into Oregon minus people leaving) is estimated to be 212,062 and accounts for 65 % ofthe total population growth. Between 1990 and 2000 that percentage was 73 %, but in the early 2000s, it dropped to 56 %. Migration primarily is driven by the state of the economy. When Oregon's economy is strong, net migration increases as people move here to take advantage of employment opportunities. When the economy goes into recession, in- migration flows slow down (pSU, 2009). Oregon's 2007 net migration rate is 3 migrants per 1000 population? While Iceland and Oregon are both experiencing a slowdown in their economies, Iceland is an island nation and Oregon is not. This has a profound effect on the ability of 2 Assumption: Metropolitan Area Residents (PMSA) 2000: 1,874,449 divided by Oregon's 2000 census population 3Assumptions based on PSU 2007 Oregon population report statistics and a 2007 Oregon population of 3,745,455 with a net migration of 37,752 28 people to move into and out of Iceland in comparison to the ability of people to move into and out of Oregon from other states in the U.S. Energy Use Iceland has the highest electricity consumption, per capita, of any country in the world with 31,147.292 kWh (NationMaster, 2009).4 The United States has the ninth highest electricity consumption, per capita, of any country in the world with 12,924.224 kWh per capita (NationMaster, 2009). Aluminum smelters require vast amounts of electricity. There are currently three aluminum smelters in Iceland, with a fourth under construction and others planned. Because of this, electricity consumption has more than doubled in recent years creating the situation where Iceland now uses more power per person than any other country in the world (Economist, 2008). Residential Electricity Consumption Per Capita in Oregon's homes has stayed relatively flat since 1981. Its 2005 per capita consumption of electricity in Oregon homes was 5,052 kWh, ranking it 25 out of the 50 U.S. states (USDOE, 2008). During the 1990s, industrial per capita use declined 24 %. This was largely due to plant closures or reduced output from mills and aluminum smelters. By the end of2002, both of Oregon's aluminum smelters were closed, one permanently (ODOE, 2007). Affordable and available electricity is a need for aluminum smelters. Hydropower is, and has been, a source of such electricity. Oregon purchases the electricity from the aluminum companies who have long-term contracts from the Bonneville Power Administration because this is 4 NationMaster is a vast compilation of data from such sources as the CIA World Factbook, UN, and DECO. 29 cheaper than building new generation facilities. The smelters sell their electricity rights because they make a profit in doing so without the need for production of aluminum and they can foresee future need and rate increases. Smelters have relocated to Iceland to capitalize off of Iceland's low-priced and abundant hydropower. This process has lowered Oregon's per capita energy consumption while raising Iceland's per capita energy consumption. Iceland has seven energy companies, Akureyri Municipal Water and Power Company (Nor5urorka), Hitaveita Su5umesja, Husavik Energy (Orkuveita Husavikur), Iceland State Electricity (RARIK), Landsvirkjun, Westfjord Power Company (Orkubu Vestfjar5a), and Reykjavik Energy (Orkuveita Reykjavikur) (Orkustofnun - National Energy Authority ofIceland [NEAl], 2007). Reykjavik Energy is Iceland's largest utility, providing almost 70 % ofthe country's population with electric power (ABB Group, 2008). The three main providers ofelectricity in Oregon are the investor-owned utilities Portland General Electric (PGE) and Pacific Power (a PacifiCorp company), and the Bonneville Power Administration (BPA), a federal power marketing agency. Pacific Power serves 31 % of Oregon's electric utility load, providing power to more than 486,000 customers. PGE serves 40 % ofOregon's electric utility load, providing power to about 733,000 customers. Idaho Power, another investor-owned utility, serves about 1 % of Oregon's electric load (OnOE, 2007). Together, these three investor-owned utilities account for almost three-quarters of Oregon's electricity supply. The Bonneville Power Administration provides power to Oregon's 36 consumer-owned utilities as well as to 30 direct-service industrial customers, such as aluminum smelters. Consumer-owned utilities include people's utility districts, municipally owned utilities and electric cooperatives (ODOE, 2007). Energy Portfolios According to Orkustofnun, the National Energy Authority ofIceland, "only 20 to 25 % of the technically and environmentally feasible hydropower, and only 20 % ofthe conventional geothermal potential available for electricity production in Iceland, have been harnessed" (NEAl, 2007). This leaves Iceland with considerable room to develop renewable energy sources for end use. Iceland's aluminum industry uses more Gigawatt Hours5 each year then all of Iceland's other electricity consumers combined (NEAl, 2007). In sum, Iceland's installed capacity and generation ofgeothermal and hydropower electricity continues to rise to meet an increasing demand, while fossil fuel for electricity generation continues to diminish. Data from Orkustofnun, the National Energy Authority ofIceland on Iceland's Energy Portfolios for the years 2005 and 2006 is used in Figures 3-1 through 3-9 to illustrate this trend. 5 A unit of electrical energy equal to one billion watt hours. 31 Figure 3-1. Installed Co pacity in Iceland, 2006 Total installed capacity of Iceland's power plants 2006, by percentage 7% 2. % 68% HydropolNer G othermal Fuel Figure 3-__ Installed ap city in iceland, 006 Total installed capacity of Iceland's power plants 2006, in MW Fuel Geotherrna I Hydropower a 200 400 600 300 1,000 1,200 1,400 T tal installed capacity of power plan s 2006 MW Hydropower 1,162 Geothermal 422 Fuel 113 32 Figure 3-3. Installed Capacity i Icela <.1,200 Total installed capacity of Iceland's power plants 2005, by percentage 8% Hydropower Geothermal Fuel 77% Figure 3-4. Install d Ca acity in I eland, 2005 Total installed capacity of Iceland's power plants 2005, in MW Fuel Geothermal Hydropower o 200 400 600 800 1000 1200 1400 Total installed capacity of power plants 005 MW Hydropower 1159 Geothermal 232 Fuel 115 33 Figure 3-5. Electricity Generation in Iceland, 2006 Icelandic electricity generation 2006, by percentage 0% 7% Hydropower Geoth rrnal Fuel 73% Fig Ire -6 ~l tricity Gene ation in Iceland, 2006 Elect icity generation 2006, in GWh Fuel Geothermal Hydropower a 1000 20 0 . 000 4000 5000 6000 7000 8000 Electricity generation 2006 GWh Hydropower 7289 Geothermal 2631 Fuel 5 34 Pi ure 3-7. Electricity Genera i n in Iceland, 200 Icelandic elect icity generation 2005, by percentage 0% L % Hydropower Geothermal Fuel 83.% fig re 3-8. Electricity Generatio in Iceland, 2005 Electricity generation 2005, in GWh Fuel Geothermal Hydropower a 1000 2000 3000 4000 5000 6000 7000 8000 Electricity generation 2005 GWh Hydropower 7014 Geothermal 1658 Fuel 8 35 Figure 3-9. New Electricity Generation in Iceland Icelandic Energy Sources that have come online since 2006 800 700 III 600 :t 500III ~ 400III till 300(II~ 200 100 a eothermal- Hellisheidi II MW 34 Geothermal- Hellisheidi Iii 90 Hydropower- Karahnjukar 690 Hydropower- Lagarfoss II 19 Energy conservati n is th fOLmdation of Oregon's energy policy (ODOE, 2008). Because of energy conservation and th electricity made available due to pIa t closures o reduced output from ills and alu inurn smelters, Or Jon's energy P0l1folios have not experienced the rapid change that Iceland's hav the last 2 years. The average annual increas in Oregon electricity consumptior 1980-2005 was only 0.8 % (USDOE, 2008). Oregon's hydroelectric system is considered to be built, meaning the addition of more dams in Oregon is 110t consid"red to be feasible. There is variability in any dam's electricity generation depending un the hyd 'ology, and other factors, during the year. The mean average for the 16 year period 1990-2006 is 39,709,412 MWh.6 This creates the need fo Oregon to install other means of generation to meet the energy requirements ab v and b yond con ervation and redistTibution, and to compensate for the fluctuations inherent in Ore on's hydrolo ',Or g n currently CJenerates 110 geothermal electricity. It ha' about a dozen areas that are known to be able t produce eothermal electricity. Oregon's high-temperature geothermal areas hav the potential for about 2,200 MW of electric power (USDOE, 2005). Ore on's only nuclear power plant w nt offline in 1993 6 A unit of electrical energy eqlla to one million "vall hours. 36 an natural gas, coal, and renewable energies have increased to compensate LOr this an to meet an incr se i demand due to p puI- tion growth. Data fron the US Depart lent of Energy's EneI' y Information Admi istration on Oregon'.' energy ort lios is used in Figures 3-] 0 throuh 3-15 to illustrate Oregon' , ene gy consumption and en ration. figure 3-10. Oregon Llectricity onslUnption, 200 Oregon Electricity Consumption by Sector 200 0% 33% 4 % 27 Figure 3-11. Oregon Electricity Consumption, 2005 Commercial Industrial Residentia I Transportation Oregon Electricity Consumption by Sector 2005, in MWh 18338000 15379000 12683000 54000 Commercial Industrial Residential Transportation Oregon Electricity Consumption by Sector 2005 MWh 37 Figure 3-12. Electricity Generation in Oregon, 2006 Electricity Generation 2006, in GWh (rounded) Other Other Renewables Hydroelectric Nuclear Natural Gas Petroleum Coal o 5000 10000 15000 20000 25000 30000 35000 40000 Coal Petroleum Natural Gas Nuclear OtherHydroelectric Renewables Other GWh 2371 12 11193 o 37850 1870 40 Figure 3-1 . EI ctricity Gen ration in Oregon, 2005 Electricity Generation 2005, in GWh (rounded) Other Other Renewables Hyd roelectric Nuclear Natural Gas Petroleum al o 5000 10000 15000 20000 25000 30000 35000 Coal Petroleum Natural Gas Nuclear Other Hydroelectric Renewables Other GWh 3467 78 13150 o 30948 1642 40 38 foigure -14. Sixteen-Year Oregon H droelectric Generation Hydroelectric generation 1990-2006 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 MWh 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 ° Year Hydroelectric Fig re 3-15. Si teel-Y ar Oregon Trend in Coal, Natural Gas, and Not -Hydroelectric Renewable Energy Oeneratio Oregon Coal, Natural Gas, and Renewable Energy Generation, 1990-2006 16,000,000 14,000,000 12,000,000 10,000,000 MWh 8,000,000 6,000,000 4,000,000 2,000,000 ° 1 3 5 7 9 11 13 15 17 Year Coal Natural s Non-Hydro Renewables 39 Figur 3-16. Sixt en-Year Oregon Trend i N' tural Gas and IJydroclec ric Energy Generation Natural Gas and Hydroelectric Generation in Oregon J 1990-2006 50000000 40000000 MW 30000000 20000000 10000000 o 1 3 5 7 9 11 13 IS 17 Year Natural Gas Hydroelectric Figu e 3-17. 2008 A ,tive Oregon Geolhelmal Projects Phase I: Identifying site, secured rights to resource, initial exploration drilling • City of Klamath Falls - 1 W (Distributed Generation Project) - City of Klamath Falls • Ge heat Center at the Oreg n Institute of Technology (01 ) - 1.2 MW - OfT o Liskey Greenhouse .. 10 MW .. Raser Technologies o Hood River County .. 20 MW (Pending Action of Volume /I of the PElS) - PGE • Willamette .. 20 MW (P nding Action of Volume II of the PElS) .. Estate of Max Millis • Hood River County .. 30 MW (Pending Action of Volume II of he PElS) - PGE • Willamette .. 30 MW (Pending Action of Volume II of the PElS) - Estate of Max Millis Phase II: Exploratory drilling and confirmation underway; PPA not secured • Neal Hot Springs - 25-30 MW .. U.s. Geothermal Phase III: Securing PPA and final permits • Ge heat Center at the Oregon Institut of TechnoJogy (01 ) .. 0.2 MW ( istributed Gene ation Project) - orr • Crump Geyser .. 40-60 MW .. Nevada Geothe mal Power • Newberry Geothermal-120 MW·· Davenport Power, U.S. Renewables Group, Riverstone Phase IV: Production drilling underway; facility under construction • None as of August 2008 Source: Geothennal Energy Associatio (Geothermal Energy Association. 2008). 40 Summary Oregon's population, population growth rate, and net migration rate are substantially higher than Iceland's. Both Oregon and Iceland generate the majority of their electricity using hydropower. Oregon's hydroelectric system is essentially developed, while Iceland's hydroelectric system has ample room to grow. Oregon's geothermal potential could feasibly grow to 2,200 MW which is less than Iceland had in 2006, and Iceland's geothermal generation has the potential to grow by another 80 %. Oregon is able to export hydroelectricity to neighboring states. Iceland, as an island nation, is unable to export its excess generated electricity. Because of this, Iceland uses its abundance of electricity as a natural resource to lure industries that require large amounts of energy, like aluminum smelters. Historically, Oregon used its abundance of affordable hydroelectric power as a natural resource to lure industries that required large amounts of energy, like aluminum smelters. Recently, Oregon has increasingly used conservation and imported natural gas to meet its generation needs. Iceland imports all of its fossil fuels and has placed an emphasis on using renewable energy to meet its energy needs instead of importing fossil fuels to meet its energy needs. 41 CHAPTER IV METHODOLOGY Given the significance of the zero-emissions renewable energy generation necessary for ZEVs in both Iceland and Oregon, information from the Grj6thaIs fueling station provides an opportunity to examine the effects on Oregon's renewable energy installation needs. The main purpose of this study is to evaluate the supply of renewable energy necessary for zero-emissions fuel cell vehicles in Oregon. Specifically, Oregon, in contrast to Iceland, has a developed hydroelectric system and increasingly has been using imported natural gas to meet its energy requirements. This situation, along with a desire for lower emissions, encourages the development of renewable energy in Oregon. The following questions guided this research: (1) What are the energy requirements for Iceland's zero-emissions hydrogen fueling station; (2) How many vehicles can such a station serve; and (3) How much installed solar and wind capacities will Oregon need to follow Iceland's Grj6thals example? In order to answer these questions, energy data was used to systematically evaluate the research questions. The following key steps represent the basic methodological approach: 42 1. Convert the Grj6thals data into kWh7 required. 2. Size the appropriate photovoltaic array based on the Grj6thals data. 3. Size the appropriate amount ofwind turbines based on the GIj6thals data. 4. Analyze Oregon's energy generation, energy use, and renewable energy portfolio. 5. Scale the Grj6thals data from Iceland to Oregon. 6. Scale the Grj6thals data to Oregon's electricity providers. Conversion ofGrj6thals Data The initial step in this study was to define a unit of measurement that would be consistent throughout the study and all of its necessary conversions. Kilowatt hours (kWh) are the standard unit of energy for both gas and electricity consumption and generation. Since this study needed to convert the Grj6thals data and make it applicable to Oregon's renewable energy needs, it was imperative to choose the proper unit of measurement so the data could easily be tied to vehicle and energy needs. Ofthe available Grj6thals data given by Jon Bjorn Skulason ofIcelandic New Energy, this study focuses on the amount ofhydrogen the station could produce each day. According to Jon Bjorn, "We spend 5.2 kWh to produce 1 Nm3 8 and we need roughly 11 Nm3 for 1 kg9 hydrogen." This amount of electricity used includes compression of the hydrogen. Jon Bjorn also stated the Grj6thals hydrogen fueling station uses an electrolyzer with an efficiency of75 % (Electrolyzers make hydrogen by passing an 7 A standard unit of electricity or consumption equal to 1000 watts over one hour. g A normal cubic meter is a unit of mass for gases equal to the mass of 1 cubic meter at a pressure of 1 atmosphere and at a standard temperature. 9 A kilogram is the base unit of mass in the International System, equal to 1,000 grams (2.2046 pounds). 43 electric current through water containing an electrolyte.), and this is included in the amount ofelectricity used. With this data, this study was able to ascertain the electricity requirements necessary to make 125 kg of hydrogen at the Grj6thals station. Figure 4-1. Energy Conversion for Zero-Emissions Fueling Station • 5.2 kWh to produce 1 Nm3 of hydrogen • 57.2 kWh to produce 1 kg of hydrogen • 57.2 kWh multiplied by 125 kg = 7150 kWh to make 125 kg hydrogen For the next step of the conversion process this study needed to convert the needs ofthree fuel cell buses at the Grj6tbals hydrogen fueling station into the number of fuel cell ZEVs in Oregon. By taking the ODOT year 2000 total vehicle miles travelled (VMT) and dividing them by Oregon's 2000 census population, this study defined the average VMT each year by an Oregonian. This number was divided by 365 to get the average VMT a day. This number was verified through research, and found to be consistent with multiple sources that listed Oregon's daily average VMT as being 16 miles. Figure 4-2. Oregon's daily VMT assumptions • Vehicle Miles Traveled year 2000 (ODOT, 2007) = 20,450,700,000 • Oregon's 2000 census population = 3,421,399 • 20,450,700,000/3,421,399 =5,977 • 5,977/365 =16 average Oregon VMT per day 44 To merge the VMT data into the number of cars the model Grj6tha1s hydrogen fueling station could meet the daily needs of, this study based its assumption ofthe average mileage per gallon on an evaluation done by Popular Mechanics. Popular Mechanics evaluated the Chevy fuel cell vehicle over 3 months and 35 fill-ups and determined that the Equinox averaged more than 41 miles per gallon. 10 Figure 4-3. Number ofVehicles Served Based on Oregon Average VMT • 125 kg a day = approximate energy equivalent of 100 gallons ofgasoline • Average VMT/day in Oregon = 16 miles • Average mpg for fuel cell = 41 • 100 Gals ofgas/day times 41 mpg/day = 4100 miles/day • 4100 miles/day / 16 miles/day = 256 average vehicles In conclusion, to drive 4100 miles a day (256 vehicles) requires 7150 kWh/day of electric generation. Solar Assumptions Research data from Florida Solar Energy Center (FSEC), a research institute of the University ofCentral Florida (FSEC, 2007), allows for 1 kg of hydrogen to require 51 kWh ofphotovoltaic (PV) electricity, assuming 10 % PV efficiency, 5 hours ofPV generation a day, and electrolyzer efficiency (Be) of65 %. 10 Chevy Equinox evaluation done by Popular Mechanics: over 41 average mpg over 3 months and 35 fill- ups. Retrieved on March 16,2009, from http://www·poPularmechanics.com/automotive/new_cars/4276771.html 45 Figure 4-4. Energy Conversion to PV Requirement • 1 kg of hydrogen = 51 kWh using an Ee of 65 % • 51 kWh * 125/day = 6375 kWh/day • 6375 kWh/day /5 hours/day = 1275 kWp Assuming 1 kWpll requires approximately 10 square meters in area for PV at 10 % efficiency, the resulting PV array would need to cover an area an area roughly 375 feet by 370 feet (an American football field, including end zones, is a 160 feet wide by 360 feet long). Table 4-5. Sizing ofRequired PV Array • 1 kWp requires approximately 10 square meters in area for PV at 10 % efficiency. • 12750 square meters necessary for installation • 12750 m2 = 137,241 square feet, or an area roughly 375 feet by 370 feet. In conclusion, to drive 4100 miles a day (256 vehicles) requires 1275 kWp or 1.275 MW ofPV generation and 137,241 square feet of space. 11 A kilowatt peak is the PV generator's peak power at maximum solar radiation under Standard Test Conditions. 46 Wind Assumptions Assuming 1 kg of hydrogen equals 60 kWh ofwind generation, 12 including electrolysis and compression efficiency (Bartholomy' 2004),13 the needs for 125 kg of hydrogen a day would be 7500 kWh/day or 7.5 MW. According to the Oregon Department ofEnergy, the average output from a 1.5 MW wind farm turbine in Oregon is 4 million kWh/year, and a 1.5 MW wind turbine in a wind farm requires half of an acre (ODOE, 2007). Figure 4-6. Sizing ofRequired 1.5 MW Wind Turbines • 1 kg ofhydrogen = 60 kWh (includes electrolysis and compression efficiency) • 60 kWh * 125/day = 7500 kWh/day or 7.5 MW • Average output from a 1.5 MW wind farm turbine in Oregon = 4 million kWh/year or 10,959 kWh/day • 11 MW/day = 7 (1.5 MW) turbines • A 1.5 MW wind turbine in a wind farm takes. 5 acres. • 7 wind turbines require 3.5 acres In conclusion, to drive 4100 miles a day (256 vehicles) requires seven 1.5 MW wind turbines and 3.5 acres in one ofOregon's existing wind farms. 12 Assumption based on infonnation from the Basin Electric Power Cooperative as provided to the Legislative Committee of North Dakota, the American Hydrogen Association, and the Electric Power Research Institute. Retrieved March 18, 2009, from http://www.legis.nd.gov/assembly/60-2007/docsipdf/edt030508appendixf.pdf http://www.hydrogenassociation.orglgenerallepriHugl16_Rebenitsch.pdf 13 Assumption based on hydrogen potential in kg/day assuming electrolysis and compression efficiency 60 kWhlkgH2 by wind generation in California, and in consideration of the above assumption. 47 Oregon Renewable Energy Analysis Analysis of The U.S. Department ofEnergy's Energy Information Administration (EIA) and The Northwest Power and Conservation Council (NPCC) data on Oregon's energy portfolio, its energy generation, and its energy use does allow for the separation of Oregon's renewable energy from hydropower, and its energy use from its energy generation. The EIA data for renewable energy (excluding hydropower) is not broken down by type. Therefore, this data is inclusive of all types of renewable energy generation in Oregon, which the NPCC lists as being biomass, solar, and wind. Use ofthe NPCC allowed for the filtering of biomass from solar and wind data. Biomass has the potential to reduce air pollution by being a part of the carbon cycle, potentially reducing carbon dioxide emissions by 90 % compared with fossil fuels. However, it still produces emissions, including sulfur dioxide (Union of Concerned Scientists, 2009). Because of this fact, this study has not used biomass energy generation in its ZEV methodology. NPCC data shows Oregon's installed MW capacity of biomass energy generation as being 225 MW (Northwest Power and Conservation Council [NPCC], 2009). Oregon's installed MW capacity of solar and wind energy generation is 1211.2 MW (NPCC, 2009).Table 4-7 lists Oregon's solar and wind generation. 48 Table 4-1. Solar and Wind Generation in Oregon Oregon Solar and Wind Generation, 500 kW capacity or greater (Megawatts) Installed Average Capacity Energy Status Resource MW MWal~ (Oct. 2008) Type Kettle Foods , 0.1 , 0.0 Operating , Solar, ,, , Pepsi Solar , 0.2 , Operating , Solar,, Portland Habilitation Center , 0.9 , : Construction : Solar,, Biglow Canyon Ph I , 125.4 , Operating , WindI ,, Combine Hills I , 41.0 14.0 , Operating , Wind · , , Condon 49.8 , 12.0 Operating , Wind, ,, , , Elkhorn 100.0 Operating , Wind,, , , , Klondike I , 24.0 7.4 , Operating , Wind · , I , , , I Klondike II · 75.0 , 23.1 , Operating Wind, ,, , Klondike III , 221.0 , 74.0 , Operating , Wind,, , Klondike IlIA · 76.5 , 25.0 Operating , Wind,, , Leaning Juniper 100.5 , 34.0 Operating , Wind,, , , , Pebble Springs , 99.0 , 31.5 : Construction: Wind, ,, Rattlesnake Road , 102.9 . : Construction : Wind,, Vansycle Wind Energy , 25.0 , 8.5 . Operating I Wind, ,, , , , Proiect , ,, , ,, , , Wheat Field 96.6 , 28.0 : Construction : Wind,, Whiskey Run , 1.3 , 0 , Retired Wind, ,I , , Willow Creek , 72.0 22.8 : Construction : Wind · , Source: Northwest Power and Conservation Council Oregon's renewable energy generation, transmission, and distribution extends beyond our state lines, and thus is difficult to isolate. This applies to hydroelectric as well as other renewable energy sources. For instance, a company like PacificCorp, the parent company ofPacific Power, moves electricity into, and out of, the state to meet its 14 An average megawatt is the average number of megawatt-hours, not megawatts, over a specified time period. In this example, it is the average number of megawatt-hours the PVarrays and wind turbines produced over the course of one year. The extreme difference between the installed capacity and the MWa is reflective of the intermittent nature of wind, and to a lesser degree, solar. 49 customers' needs, which span many states. The low-cost hydropower they generate or purchase from an Oregon hydroelectric source is used to serve retail loads first. To divert this low-cost hydropower to another area would result in raising the rates charged to Oregon's retail customers, and this is not allowed by the Oregon Public Utility Commission. 15 The Bonneville Power Administration does sell surplus electricity, when available, to other areas (frequently California), which it lists as secondary revenues. It uses assumptions based on these revenues, which are sold on the spot-marketI6 for a higher rate, when planning to keep its customers rates low. In essence, using occasionally available surplus electricity to generate hydrogen would result in an increase in rates, and would not be allowed by the Federal Energy Regulatory Commission. 17 Oregon's hydroelectric loads18 are greater than their generation capability. Figure 4-1 uses 2005 data from the EIA to illustrate an example of a yearly hydroelectric load exceeding its generation capability. 15 The Public Utility Commission of Oregon (PUC) regulates customer rates and services of the state's investor-owned electric, natural gas and telephone utilities; and certain water companies. The PUC is tasked with ensuring consumers receive utility service at fair and reasonable rates. 16 There is a North American market for buying and selling electricity and natural gas. It's essentially a commodity market that trades electricity and natural gas like other commodities. The price is set based on supply and demand for immediate requirements. The spot price is the price of electricity at one point in time on that market. The price varies extensively in times of extreme heat or cold. In effect, when there is a strong demand for electricity and/or gas, they are worth more and can be sold on the spot market for a higher spot price. 1 7 The Federal Power Act of 1935created the Federal Power Commission, now the Federal Energy Regulatory Commission (PERC). PERC carries out the principal ftmctions for the interstate economic regulation of investor-owned electric utilities under a mandate to ensure that wholesale rates are just and reasonable. 18 In this case, the electric load (or demand) is the power requirement ofOregon's electricity consumers. In electricity generation terminology, a Base load is the minimum amount of electric power delivered or 50 Fi ure 4-7. Comparison 0[200 Oregon Electricity Consumption and Hydroelec ic Gene 'ation Oregon Electricity Consumption and Hydroelectric Generation, 2005 Oregon hydroelectric g neration in 2005 ( IVIWh) Oregon electricity consumption in 2005 (MWh) 20,000,000 MW 40,000,000 In conclusion, analysis of Oregon's hydroelectric, solar, and wind data demonst ales insuft1cient generation to meet demand. Ore 'on does not have at y hydroelectric power available to allocate to hydrogen generation, and its installed win· and solar projects are just a small portio of what is needed to meet the base load demand above what Ore lon's lydroelectric generation is able to provide. Orcgo 's geothermal ene gy has no eneration facilities being built, and its planned .feneration of 297.4-322.4 MW (see Table 3-1.) will be needed [or base load demand (GeothermaJ Energy . Association, 2008). Any renewable energy devoted specifically to hydrogen production in Or go for ZEVs will need to be instalk:d. requir d over a given period of rime. A Peak load is the maximum load delivered or required during a specified peri d oftirne, Oregon's ele r ic load lluctuates between base loads and peak loads. 51 Scaling Grj6thaJs Data to Oregon According to the 2008 World Factbook (CIA, 2008), Iceland has an estimated population of304,367. Oregon's estimated population for 2008 is 3,791,060 (pSU, 2008). This means that Oregon has about 12 citizens for every 1 Icelander. Another way of looking at population is in a geographical context. Iceland has an area 39,756 square miles and an estimated 2008 population of304,367. This gives Iceland an average of approximately 7 people per square mile. Oregon has an area of97,074 square miles and a 2008 estimated population of3,791,060 giving it an average of approximately 39 people per square mile. The concentration ofurban population constitutes the majority ofboth Iceland and Oregon populations. The Grj6thals Hydrogen fueling station "could produce enough H2 to satisfy up to 600 personal cars in general operation" (INE, 2008). Whereas this study has assigned a similar station in Oregon as being able to meet the needs of 256 fuel cell vehicles each day. In consideration of this varied information, this study has decided on an assumption that is a factor of 10 difference between Iceland and Oregon. This was done to reflect the overall population difference, the larger urban population of Oregon versus Iceland, and the difference in Iceland's daily personal vehicle hydrogen requirements versus Oregon's daily VMT. In conclusion, Oregon's needs to have ZEVs based on the Icelandic example of the GIj6thais Hydrogen fueling station, with the differences in Oregon's population, population concentration, and daily mileage are scaled to meet the needs of 2,560 fuel cell vehicles each day. 52 Scaling Grj6tMIs Data to Oregon's Electricity Distributers The three main providers of electricity in Oregon are the investor·owned utilities Portland General Electric (PGE) and Pacific Power (a PacifiCorp company), and the Bonneville Power Administration (BPA). Pacific Power serves 31 % of Oregon's electric utility load, providing power to more than 486,000 customers. PGE serves 40 % of Oregon's electric utility load, providing power to about 733,000 customers. The BPA provides power to Oregon's 36 consumer-owned utilities which include people's utility districts (PUDs), municipally owned utilities and electric cooperatives (ODOE, 2009). A majority ofthese PUDs, municipally owned utilities and electric cooperatives are BPA full requirements customers, meaning they purchase all their power from BPA. Some PUDs and electric cooperatives have small generation capabilities. Eugene's utility provider, Eugene Water and Electric Board (EWEB), is an exception to the full requirements customers because it has substantial generation assets (Public Power Council, 2002). Idaho Power, another investor-owned utility, serves about 1 % of Oregon's electric load (ODOE, 2007). With this in mind, this study is operating under the assumption that the BPA serves 25 % full requirement load. Thus, Oregon's 2,560 fuel cell vehicles are broken down as Pacific Power (2560 x .31) 794 ZEVs, PGE (2560 x .4) 1024 ZEVs, and BPA (2560 x .25) 640 ZEVs. The remaining 154 ZEVs are assigned to EWEB and not Idaho Power based solely on the urban status ofEugene as Oregon's third largest city. Table 4-2 lists Oregon's electricity providers. Table 4-2. Oregon's Electric Utilities Oregon Electricity Providers Investor-Owned Cooperative Electric Peoples Utility Municipal Electric Electric Utilities Utilities Districts (PUDs) Utilities Idaho Power Central Lincoln Company Blachly-Lane Electric Co-op. PUD Canby Utility Board Pacific Power City ofAshland Electric (PacifiCorp) Central Electric Co-op. Clatskanie PUD Dept Portland General Columbia River Electric (PGE) Consumers Power PUD City of Bandon Coos-Curry Electric Co-op. EmeraldPUD City of Cascade Locks Northern Wasco Douglas Electric Co-op. PUD City of Forest Grove Lane Electric Co-op. Tillamook PUD City of Drain Midstate Electric Co-op. Inc. City of Monmouth Eugene Water & Electric Salem Electric Board Forest Grove Light & Umatilla Electric Co-op. Power Hermiston Energy Columbia Basin Co-op. Services McMinnville Water & Columbia Power Co-op. Light Milton-Freewater Light Columbia Rural Electric & Power Harney Electric Co-op. Springfield Utility Board Hood River Electric Co-op. Oregon Trail Electric Co-op. Surprise Valley Electric Corp. Umpqua Indian Utility Co-op Wasco Electric Co-op. West Oregon Electric Co-op. Source: Oregon Department ofEnergy 53 54 CHAPTER V FINDINGS This study evaluated the renewable energy needs ofthe Grj6thaIs Hydrogen fueling station to determine the renewable energy installation requirements necessary within Oregon for fuel cell ZEVs at the electric utility provider level. Using the methodology outlined in the previous chapter, the information presented in this chapter reveals the number of model hydrogen fueling stations required, the renewable energy necessary for the model hydrogen fueling stations, as well as the location and integration of these model hydrogen fueling stations throughout Oregon's electricity distribution regions. Hydrogen Fueling Station Needs The model Grj6thaJs Hydrogen fueling station has the ability to produce and distribute 125 kg of zero emissions hydrogen a day. This amount will provide the hydrogen necessary for Oregonians to drive 4100 miles a day, which can be further defined as meeting the needs of256 vehicles, based on Oregon's daily average VMT. 55 Oregon's 2,560 fuel cell vehicles, which are broken down in the previous chapter as Pacific Power 794 ZEVs, PGE 1,024 ZEVs, BPA 640 ZEVs and EWEB 154 ZEVs, will thus require 10 model hydrogen fueling stations to follow the Icelandic example. Since the model Grj6thals Hydrogen fueling station was the designed to produce and distribute 125 kg ofzero emissions hydrogen a day, this study has assigned a value of I model hydrogen fueling station per 256 cars. This study chose to round the number ofrequired model fueling stations up rather than not run a model station at its designed capacity. Table 5-1 lists the scaled number ofmodel hydrogen fueling stations required to emulate the Icelandic example in Oregon. Table 5-1. Number ofModel Hydrogen Fueling Stations Required Following the Icelandic Example in Oregon by Electricity Provider Number of model Number of model Number hydrogen fueling hydrogen fueling ofZEVs stations stations (rounded) Pacific Power 794 3.1 4 PGE 1024 4 4 BPA 640 2.5 3 EWEB 154 .6 1 Total 2560 10.2 12 Iceland located its model zero emissions hydrogen fueling station (the Grj6thals station) in its most populated city. With this in mind, this study has placed its zero emissions hydrogen fueling stations accordingly. 56 EWEB's hydrogen fueling station was rather straightforward since EWEB is a municipal consumer~owned utility and serves only Eugene. This study proposes a model hydrogen fueling station be placed in Eugene to reflect the Icelandic example ofa zero emissions hydrogen fueling station in Oregon. Eugene, with a 2008 US Census Bureau estimated population of 149,004, is Oregon's third-largest city. Pacific Power requires four model hydrogen fueling stations. Pacific Power's service territory in Oregon spans portions of the entire state with the exception of Oregon's southeast corner, which also happens to be the state's least populated region. Pacific Power's Portland service territory includes portions ofdowntown Portland between 1-405 and 1-5, as well as the entire northeast area that lies within the area bordered by 1-5 on the south, 1-205 on the east, and 1-84 on the south. This study proposes a model hydrogen fueling station in each ofthese highly populated areas. Portland, with a 2007 US Census Bureau estimated population of 550,396, is Oregon's largest city. Pacific Power's service territory covers most of southwestern Oregon, including Medford. Medford, with a 2007 US Census Bureau estimated population of 72,186, is Oregon's eighth-largest city. This study has suggested this area for a model hydrogen fueling station. Pacific Power's service territory covers part of central Oregon, including Bend. Bend, with a 2007 US Census Bureau estimated population of74,563, is Oregon's seventh-largest city and this study suggests this area for a model hydrogen fueling station. This study views the placement ofmodel hydrogen fueling stations in these areas as meeting the requirements necessary to follow the Icelandic example as scaled to Oregon and its needs. 57 PGE also requires four model hydrogen fueling stations. PGE's service territory in Oregon covers more than 4,000 square miles including practically all of southeast Portland, all of southwest Portland with the exception of a few downtown areas, the majority of the Salem area, and Gresham. Salem, with a 2007 US Census Bureau estimated population of 151,913, is Oregon's second-largest city. Gresham with a 2007 US Census Bureau estimated population of99,721, is Oregon's fourth-largest city. This study proposes these areas for the necessary model hydrogen fueling stations to follow the Icelandic example as scaled to Oregon and its needs. The BPA 25 % full requirement load for the PUDs, municipally owned utilities and electric cooperatives is three model hydrogen fueling stations. The City ofForest Grove has a municipal electric utility. Forest Grove's 2007 US Census Bureau estimated population was 20,402. Forest Grove is adjacent to The City ofHillsboro, which is Oregon's fifth-largest city. The City ofLa Grande, in the northeastern comer of the state, is served by the Oregon Trail Electric Cooperative. La Grande's 2000 US Census Bureau estimated population was 12,327. This does not rank it among Oregon's more populated cities, but its location along 1-84 in northeastern Oregon approximately 60 miles from Pendleton (US Census Bureau 2007 estimated population 16,477) is an area ofOregon that would serve a fueling need for ZEVs travelling to and from Oregon. Newport, (US Census Bureau 2007 estimated population 9,852) is served by Central Lincoln PUD. Similar to La Grande, its strategic location at the junction ofUS-101 and US-20 would serve a fueling need for ZEVs travelling to and from the Oregon coast. This study proposes these areas for the necessary model hydrogen fueling stations to follow the 58 Icelandic example as scaled to Oregon and its needs. Table 5-2 lists the recommended locations of this study. Table 5-2. Locations ofHydrogen Fueling Stations Number of hydrogen fueling Location of Number stations hydrogen fueling ofZEVs (rounded) stations Downtown Pacific 794 4 Portland Power N.E. Portland Medford Bend PGE 1024 4 S.E. Portland S.W. Portland Salem Gresham BPA 640 3 Forest Grove La Grande Newport EWEB 154 1 Eugene In conclusion, this section of the study has located the model hydrogen fueling stations necessary to follow Iceland example throughout Oregon in a way that reflects population density, as well as geographic convenience for the population centers. The Willamette Valley, where 70 % of Oregon's population lives has almost 70 % (;:::,.67 %) of the model hydrogen fueling stations. The other four locations (Ashland, Bend, La Grande, and Newport) are popular destinations for Oregon's Willamette Valley denizens. 59 This was a major factor in their choice as hydrogen fueling station locations for this study. Map 5-1 shows Oregon and the location ofthe towns mentioned in this study. Map 5-1. Locations of Hydrogen Fueling Station Cities Smittt-Ttave er.lf1 o® Road Mil 0 Ore on 201 II II .Onh·rio • La Gl'bnda. .",. Baker Cit\, • lit.. I I l~' ,. II J.97. ·97· .97 . UJ· Redmond 0 IZl. ·Plifl~Vil!e. • BendEuy"ne ,2< > '0" .. Sprln,n.ltI Flo;.,;);:\? 2> J.CQ. J..o1 . • M(Qlla •S.wde. . ~, CO~l.mblll R. ;:1). 5t, Helens. PAUf1 , ".EAN 38 • Cottal~1(t Grove 'i'f:': 97· aJ· Noll!> Bllnd .1.0).. ,,, .. 5uthenin Co",lI.\y U".P'1''' f. Ro:s:e.burg • . 0 I tit ~ t I ,/.' M.. JA I, II to.V I .till. 62 IE.~ .97 . 1Ill, ·97. ,1.99· ., 'I Granb PolUlj lot,) Ja,honville>. Mdfor