| HyGen Industries |
| Renewable
Energy Developers |
|
P.O.
Box 6911
Eureka, Ca. 95502
|
Ph:
707-667-5329
e-mail: h24u@hygen.com |
Executive Summary Abstract
Overview
HyGen Industries is
proposing to raise $50
million+ for a fully environmentally sustainable Pilot
Multi-MegaWatt commercial renewable hydrogen generating facility and distribution network.
The proposed facility will be using photovoltaic generation of electricity, as well as
wind and potentially tidal-wave. This facility and the company's related products will
fulfill its mission to commercialize hydrogen as the ultimate "Zero Emission
Fuel" and to help build an infrastructure for the use of hydrogen as the primary fuel
to meet federal and state mandated clean air standards. HyGen
Industries expects to make a very lucrative return on the
investment in this facility and it's associated products by balancing revenues from
hydrogen sales for industrial and transportation uses, supplemented by profits
and/or licensing fees for their other related products.
The Products.
In addition to marketing hydrogen fuel,
HyGen Industries proposes to market or license its related products; including stand-alone
integrated hydrogen generation systems, hydrogen fueling facilities, and conversion
systems to allow gasoline and natural gas aided vehicles to use hydrogen fuel. Some of
these products will be deployed as a result of the Clean Air Now Solar Hydrogen Vehicle
Project, developed by HyGen's Management Team to implement the world's first commercially
permitted photovoltaic hydrogen generation and fueling system for hydrogen powered
vehicles.
The Challenge.
For decades smog has been a growing problem
for many parts of the developed world. Now the threat of global warming from the burning
of fossil fuels is gaining increasing acceptance, and hard experience has shown the risks
of having to import half of our energy requirements from sometimes unfriendly nations. Now
both the state and federal governments have mandated new higher standards, demanding that
some percentage of the automobiles being produced after certain dates must be Zero
Emission or Equivalent Zero Emission Vehicles (ZEV/EZEV).
Opportunity.
The strongest of these mandates requires
that 10% of all new vehicles sold in California must achieve these standards by 2010. This
means that when 50,000 state government fleet vehicles are replaced, they must be replaced
by electric, hydrogen, etc., as well as 150 thousand new vehicles sold annually in
California. The Federal mandates require that by 2003, 75% of all state and federal
government fleets are converted to alternative fuels, 90% of fuel providers and 40% of
private fleets (70% by 2006). This mandate creates and defines the primary HyGen
Industries introduction "market niche."
Hydrogen's Challenge.
Of all the available options, hydrogen is
the cleanest burning, even improving the emissions for natural gas and petroleum based
fuels when combined as 15% to 50% of the mixture. The traditional hydrogen generation
process has two problems: both the process (steam reforming of natural gas) and the energy
used in the production of the hydrogen can produce atmospheric pollutants. Secondly, the
hydrogen produced in bulk with this process is expensive - $.85/100 scf (standard cubic
feet) for it's largest customers (oil companies, NASA, etc.) or over $3.85 per "gallon of gasoline
equivalent (gge)." Much more for most - $6.00/gge -
$20.00/gge. With this current
process, the price will only get higher as natural gas (a petroleum
fossil fuel) supplies dwindle.
The Solution.
The process used in the Clean Air Now
Project at Xerox by HyGen's Management Team avoids both of these problems. It will use
renewable sources to generate electricity... the latest in photovoltaic technology,
surplus electricity from windfields, and possibly new tidal generators. Secondly, an
analysis by Clean Air Now and PVI (the solar energy systems manufacturer that worked on
the Clean Air Now Project), estimates that this type of renewable generation systems, when
built in hundred+ megawatt sizes, can potentially bring down the cost per "gallon of
gasoline equivalent" to about half the current retail price of gasoline and about 75%
or less of the current market price of natural gas.
Market Facts.
The HyGen Team knows that the current
market for hydrogen is dominated by the oil industry, NASA, other government/military
uses, aerospace, high tech industries, utilities as a coolant, petrochemical companies,
ammonia production, steel and glass making, and welding related industries. The average
price for this hydrogen is about $2-3.00/100 scf (standard cubic feet, $4-5.00/100scf for
most small to medium users) and is produced from natural gas through steam reforming. This
requires the use of natural gas as its energy source and its feedstock. That
cost will only get higher, as opposed to hydrogen from renewable electrolysis - the cost
will only get lower as the size of facilities get larger and more facilities are installed
(especially with the extremely low operational and maintenance costs). The current
Southern California industrial market involves about 1.8-5.5 billion scf/yr., which is
about 3-10 times our total proposed production capability, which means there is plenty of
industrial market for us to access. By providing just 1/2 of our production capability to
that market as our bread and butter to keep us viable, we can expand to capture the real
prize, the transportation market. That involves 600,000 fleet vehicles that (as they are
retired) will be required to meet ZEV/EZEV standards by 2003, plus federal standards as
well as nearly 340,000 or 75% of state government fleet vehicles by that year. At which
time Daimler Benz, BMW, Ford and other U.S. Auto Companies are projecting to be ready to
deploy Hydrogen powered Fuel Cell Electric (HFCEV) and Internal Combustion Engine Vehicles
(ICE).
Products Description
The HyGen Industries venture will focus on 3 main product lines:
Renewable hydrogen fuel for transportation and stationary users,
Integrated Generation Systems for independent generators and users
that have the facilities and/or the need for bulk hydrogen for energy and industrial uses,
and
Internal Combustion Engine (ICE) conversions, Fuel
Cell Electric Vehicles (FCEV), Hydrogen Hybrid Electric Vehicle Conversions, or OEM
vehicle purchases initially for fleet operators to convert at least 10% of their fleet to
ZEV/EZEV. And, of course within a few years, the general consumer.
Vision.
Two major problems facing the world
today
The threat of global warming from the burning of fossil fuels and
Our dependence on foreign sources for these very same fuels. The
world population is projected to grow from the current 6 billion to 14 billion by 2020 if this trend goes unchecked.
This will result in a critical shortage of
energy supply, and will exacerbate our dependence on countries who have fossil fuel
reserves, not to mention the increase in pollution, especially as the third world catches
up with the rest of the world. The health costs due to air pollution in Southern
California alone is estimated to be approximately $12-14 billion annually. 60% of the air
pollution is from transportation, the other 40% is from stationary sources, of which
nearly 1/2 is energy related. The solution - Hydrogen! Renewable hydrogen is the
ultimate fuel. It is clean from cradle to grave. Our goal is to economically manufacture
hydrogen fuel made from renewable sources and help establish the hydrogen energy
infrastructure in California and beyond.
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