National Round Table on the Environment and the Economy
Canada
Contact Us
Help
Search
Canada Site

About Us

Media Room

Library

Home
Achieving a Balance
" " Energy &
Climate Change
" " Capital Markets
About
Documents
FAQs
Committee
Program Contact
   
" "Brownfields
Subscribe to NRTEE e-briefs
Email thisEmail this

 

© 2006

_
""
" "

Case Study on the Role of Fiscal Policy in Hydrogen Development

Economic Analysis

Pembina Institute and the Canadian Energy Research Institute

May 10, 2004

Endnotes

1Note that the use of these policies does not preclude the use of other fiscal policies as a means to increase penetration of hydrogen technologies.

2See the Baseline Report for descriptions of these and other fiscal policies.

3http://www.nrcan.gc.ca/es/ceo/
update.htm

4For a detailed description of the Energy 2020 model, refer to Appendix A of the Baseline Report of this case study.

5Capital and operating costs, utilization, and natural gas and electricity consumption for the technologies associated with these pathways can be found in Appendix B of the Baseline Report.

6Solid oxide fuel cell.

7Light duty vehicle.

8Internal combustion engine.

9The range of incentives simulated here (10% to 25%) was chosen as it was the range typically explored in the federal government’s analysis and modelling work related to climate change.

10This is the sum of energy demand associated with fuel cell buses, fuel cell light-duty vehicles and hydrogen internal combustion engine light-duty vehicles.

11The Energy 2020 model includes light-duty fleet vehicles within the personal vehicles category.

12Energy consumption associated with transportation in the context does not include transportation demand from industrial or commercial activities.

13Percentages do not add to 100% because we have only included those modes of direct relevance to this study; for example, we did not present results for changes in marine and train.

14Recall that results only vary between the SMR Reference Case and the Electrolysis Reference Case for the transportation sector. The trend in stationary fuel cells is identical between the SMR and Electrolysis Reference Cases.

15Greenhouse Gas emissions associated with transportation in this context does not include transportation emissions from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

16Greenhouse Gas emissions associated with transportation in this context does not include transportation emissions from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

17As penetration of fuel cells increases, a shift in emissions from the electric utilities sector to the residential and commercial sectors occurs.

18https://www.davidsuzuki.org/files/WOL/ElectricityMap.pdf

19Note that the drop in hydrogen price shown in the table above is slightly less than 25% because the reduction in cost took place before taxes.

20Energy consumption associated with transportation in this context does not include transportation demand from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

21This is the sum of energy demand associated with fuel cell buses, fuel cell light-duty vehicles and hydrogen internal combustion engine light-duty vehicles.

22Energy consumption associated with transportation in this context does not include transportation demand from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

23Percentages do not add to 100% because we have only included those modes of direct relevance to this study; for example, we did not present results for changes in marine and train.

24The increase in emissions in the case of hydrogen from electrolyzers is consistent with work completed in the United States. See for example, the May 2004 issue of Scientific American, which contains an article titled “Questions about a Hydrogen Economy.”

25Greenhouse Gas emissions associated with transportation in this context does not include transportation emissions from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

26Greenhouse Gas emissions associated with transportation in this context does not include transportation emissions from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

27Greenhouse Gas emissions associated with transportation in this context does not include transportation emissions from industrial or commercial activities with the exception of light-duty fleet vehicles and buses.

28Transportation emissions in this table include both emissions associated with hydrogen production and emissions associated with hydrogen consumption.

29Row, J., et. al. June 2002. Life-Cycle Value Assessment of Fuel Supply Options for Fuel Cell Vehicles in Canada. Pembina Institute.

30Availability was not a limiting factor in this analysis as market penetration did not reach the maximum amount assumed allowable in the model.

31For this table, the price of hydrogen represents either the SMR or electrolyzer hydrogen price, depending on which was cheaper in the year 2020. For most regions, SMR was the cheaper hydrogen production option. Regions that favoured hydrogen production from electrolyzers include Quebec, Manitoba, New Brunswick and Nova Scotia. The prices shown in the table above include taxes.

32The fuel cell is used to generate both heat and electricity, and thus the cost of the fuel cell, including natural gas as the source fuel, is competing with both electricity and heating fuel prices for market share.

33 See, for example, the United States Department of Energy, Hydrogen Posture Plan.

34General Motors Corporation, 2001. Well-to-Wheel Energy Use and Greenhouse Gas Emissions of Advanced Fuel / Vehicle Systems – North American Analysis.

35Ibid.