Nov 10 - Knight Ridder/Tribune Business News - Tux Turkel Portland Press Herald, Maine

Facilities that could produce hydrogen for industrial gases and for fueling buses and delivery vehicles are being considered for Auburn and South Portland.

These facilities could get all or part of the power they need to make hydrogen from renewable resources, such as solar electric panels.

These facilities would be Maine's only commercial hydrogen production plants, and represent the state's first commercial efforts to turn the plentiful gas into a transportation fuel.

News of the plan emerged Wednesday at a workshop organized to highlight the status of hydrogen development in New England. It was hosted by the Chewonki Foundation, which is building a $240,000 demonstration project that will use renewable energy to generate hydrogen and to power fuel cells for electricity production. The project is expected to be operational by spring.

Supporters see hydrogen as a way for the United States to make a transition away from oil, coal and natural gas, and to shake its dependence on imported energy.

As petroleum prices rise, governments and industry are spending millions of dollars to develop hydrogen technology, which can be used to run vehicles and produce heat and electricity. Hydrogen produced with help from wind, solar and hydro sources, for instance, creates energy that is pollution-free and doesn't contribute to global warming.

But hydrogen takes energy to produce, and methods of creating, storing and marketing it as a substitute for conventional power applications are still evolving. Several states, notably California, are investing heavily in the technology and creating "hydrogen corridors," where a string of filling stations can refuel hydrogen-powered vehicles.

The Auburn facility would cost up to $500,000 and could be ready as early as next year. It would be developed by Maine Oxy, a supplier of welding products and industrial gases. The Auburn-based company has eight locations in Maine, Massachusetts and New Hampshire.

Maine Oxy is preparing to buy an electrolyzer, a device that uses electricity to convert water into hydrogen and oxygen. Maine Oxy sells both these gases, which are used in various forms by industry. That will help the economics of the project, according to Bruce Albiston, the company's chief executive officer.

Most of the electricity to make hydrogen is likely to come from the utility grid. But Albiston may add solar panels to meet up to 20 percent of the load. He's also considering filling stations on company property in Rockland, Brewer, Waterville and South Portland.

Potential customers include delivery fleets, he said, such as United Parcel Service. Fleets are starting to experiment with hydrogen vehicles, Albiston said, but the practice isn't likely to grow until more fueling stations are developed.

"It's kind of a chicken and egg thing," he said.

The South Portland facility is still in the concept stage. It's being promoted by the Hydrogen Energy Center, a Portland-based advocacy group. The facility would be located in an industrial park on Wallace Avenue, on land owned by Maine Oxy. It would be called the Wallace Avenue Sustainable Hydrogen Project.

Gary Higginbottom, a spokesman for the center, said his group has had initial talks with Portland's Metro bus system about fueling at the site.

Metro's bus system is being converted to natural gas, and that fuel can be mixed with hydrogen. A bus system in Fort Collins, Colo., is doing this now, he said.

The long-term goal in South Portland is to produce hydrogen with electricity from on-site renewable energy sources, such as solar panels. To save money, Higginbottom said, power might initially come from renewable power purchased over the utility grid, such as hydroelectric generation.

The Hydrogen Energy Center is developing a business plan and funding proposal. It hopes to decide by summer whether the project is financially viable and what technology to use.

One example of hydrogen technology is close to completion at Chewonki's Center for Environmental Education.

In the woods behind the building, a specially constructed shed holds eight hydrogen gas cylinders and a seven-foot-high cabinet containing an electrolyzer. The $40,000 unit, built by Avalence LLC of Milford, Conn., will produce enough hydrogen to store four days worth of backup power for the building. Inside, a battery bank and three fuel cells, which generate electricity by combining hydrogen and oxygen from the air, are part of the circuit.

Workshop participants viewing the installation asked Marty Shimko, Avalence's executive vice president, why the technology has taken so long to develop.

"Too many dinosaurs died for too many years and provided us with cheap fuel," he replied.

Portland considered for Maine hydrogen development site