Shell executive says market will determine hydrogen fuel use

Allen Baker

Petroleum News Contributing Writer

Hydrogen will become a major fuel only when consumers decide they want hydrogen-powered fuel cells in their lives, according to Jeremy Bentham, chief executive officer of Shell Hydrogen.

Breakthroughs will be needed to make the technology workable, and government action can stimulate development, Bentham told a Washington, D.C., conference, but eventually it will be up to individual consumers to choose the fuel.

“I’ve been to conferences where I have been the only person to use the word customer,” Bentham told the gathering of energy executives and government officials. “There is a danger that we’re looking at this from just one angle — trying to command and control rather than stimulating demand through commercial growth.”

Hydrogen used in fuel cells produces only water as a byproduct, which can have major benefits if it can be produced and distributed cheaply. But consumers will also need to be convinced of the individual benefits of fuel cell vehicles, he said.

The cost of infrastructure will be substantial, even if the technological issues can be resolved. The initial investment needed to supply just 2 percent of cars in Europe with hydrogen by 2020 would be $20 billion, according to Shell Hydrogen.

Bentham made his remarks the inaugural meeting of the International Partnership for the Hydrogen Economy Nov. 19. The meeting was called by Energy Secretary Spencer Abraham.