End of the Hydrogen Dilemma?

The promise of hydrogen as a limitless source of clean energy is still largely unfulfilled because the cost to develop an infrastructure to support it has been prohibitive. But the cost won’t come down without sufficient demand, so Japanese automakers and oil refineries are teaming up to spark the needed development in a country that relies heavily on fossil fuel imports.

Last month, Toyota unveiled a prototype fuel-cell-powered sedan with a range three times that of currently available electric vehicles – about 650 kilometers (400 miles) – bringing the technology to a level where it’s almost ready for commercialization. At the same time, the country’s largest oil wholesaler announced the development of a proprietary membrane technology that can produce nearly pure hydrogen from the enormous amounts of impure gas that are generated as a by-product of the refining process. They plan to begin installation of the new equipment starting in 2016.

Together, these developments could finally break the stalemate that has been plaguing hydrogen development for years. It’s been estimated that, by 2030, the worldwide hydrogen infrastructure could be worth upwards of 37 trillion yen (US$370 billion) with fuel-cell cars making up more than 20 percent of that total.