Many factors are driving the development of hydrogen as a cleaner form of energy. Among them is the desire to reduce greenhouse-gas emissions, increase global energy security, improve the reliability of the power grid, and provide high-quality power for digital devices.

In addition, hydrogen fuel can be produced from a diverse array of sources, making it a very flexible energy carrier. In the future, it could well help satisfy the rapidly growing demand for energy in emerging economies across the globe.

Thanks to advances in fuel-cell technology, hydrogen is poised to play an increasingly important role in the world’s energy mix. A fuel cell can convert hydrogen directly into electricity for both transport and stationary-power applications. A fuel cell converts energy very efficiently, which helps conserve energy resources, and the only byproduct of this chemical process is pure water – a clear benefit for the environment.

However, there is a challenge that comes with this promise of clean, abundant, secure energy. Hydrogen – a tasteless, odorless, colorless gas – is not found freely in nature: It must be extracted from other substances. As a result, there are substantial technical hurdles to producing, storing, and distributing hydrogen.

Fueling the Hydrogen Economy
Chevron understands hydrogen. For decades, we’ve been producing huge quantities – more than one million kilograms a day – for industrial use in our refineries. We are also recognized for our expertise in catalysis and reforming, processes that allow hydrocarbons to be tailored for specific uses. So turning hydrogen into a high-value fuel is a natural extension of what we already do.

Still, before fuel cells can achieve widespread use in vehicle or stationary-power markets, hydrogen as a fuel will have to be readily available. This means, for instance, that fueling hydrogen-powered vehicles will have to be as straightforward and convenient as fueling today’s gasoline-powered vehicles.

Chevron is investing millions of dollars to help make that happen. At Technology Ventures, we supply venture capital to companies with promising hydrogen technologies, conduct our own research, and work with partners to develop, demonstrate, and commercialize the best hydrogen solutions.

Computer generated rendering of a small-scale, demonstration fueling station, producing hydrogen on site for fuel-cell vehicles.

Practical Hydrogen: A Bridge to the Future
None of this will happen overnight. We see hydrogen becoming part of the world’s energy supply step by step, as technical challenges are overcome and market forces create new opportunities. We believe it might take decades to transition to hydrogen-based energy and transport systems that are economically sound on a large scale.

In the meantime, there is plenty of work to do in getting from here to there. We call this transition phase the era of “practical hydrogen” – a time for the industry to develop, test, and commercialize the best products and processes. This is a time for intensive research and development work, along with partnerships that demonstrate prototype fuel-cell vehicles, infrastructure solutions, and specialized stationary-power applications. And it is the time for formulating critical national and international policies, codes, and standards for hydrogen. As a global energy company, Chevron is working intensely – often in partnership with others – on all of these fronts.

During this transition period, we see hydrogen fuel being produced from widely available hydrocarbons, such as natural gas and liquid fuels. Currently this is the most efficient, cost-effective way to make hydrogen in the quantity needed to supply a growing “hydrogen economy.” Because it is not cost-effective to transport large quantities of hydrogen by truck or trailer, we believe the first step will be small-scale, distributed production of hydrogen.

In the future, as costs for renewable energy decrease, it may also become economically feasible to produce hydrogen by the electrolysis of water using solar- or wind-generated electricity.

Integrating hydrogen into the world’s energy supply is an enormous undertaking. It calls for close collaboration and partnership among governments, universities and industries worldwide. At Chevron, we are actively involved in numerous hydrogen collaborations.

For example, we are teaming up with Hyundai Motor Co. and UTC Fuel Cells on a cost-sharing project that is part of a five-year U.S. Department of Energy (DOE) program. The goal is to develop and demonstrate a safe, convenient, reliable and cost-effective hydrogen fueling infrastructure, hydrogen fuel cell vehicles, and distributed power generation systems. View press release.

On February 18, 2005, a demonstration Chevron Hydrogen energy station, developed as part of the DOE program, began operation at the Hyundai-Kia America Technical Center in Chino, Calif. The station produces hydrogen on site from natural gas.

The vision of a future powered by hydrogen is rich with promise. To realize that promise, all involved will have to weigh the options as they emerge and make the right social, technical, and commercial choices.

Learn more about Hydrogen Infrastructure
Learn more about Hydrogen Production
Learn more about Hydrogen Energy Stations