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 it’s energy source and it’s 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:

  1. Renewable hydrogen fuel for transportation and stationary users,

  2. 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

  3. 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

  1. The threat of global warming from the burning of fossil fuels and

  2. 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.

    3.

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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