Shannon Baxter-Clemmons, Executive Director of the South Carolina Hydrogen and Fuel Cell Alliance

October 12, 2009

MidlandsBiz:
What is your education?

Shannon Baxter-Clemmons:
I received my Bachelors, Masters, and PhD at the University of South Carolina.  I completed my dissertation research Argonne National Laboratory just outside of Chicago where I focused on direct, methanol fuel cells. 

MidlandsBiz:
How is hydrogen produced?

Shannon Baxter-Clemmons:
Hydrogen can be produced from a number of local resources.  Electrolysis of water is the simplest process that splits water into its two main elements – hydrogen and oxygen.  The electrolysis process can be used by any number of energy sources from fossil fuels to renewables.  When renewables and hydrogen fuel cells are used together, the process is called firming the renewable.  With renewables, sometimes you have more than you need and at other times the wind doesn’t blow or the sun doesn’t shine.  We can use the excess renewable resources to make and store hydrogen, through electrolysis.  And when we don’t have enough sun or wind, we can get our electricity from a fuel cell running on the stored hydrogen.  Solar provides your energy needs during the day; hydrogen kicks in at night when the sun goes down.  Natural gas, a fossil fuel, currently accounts for 48% of hydrogen production, but if we are going to move to a zero carbon future, it is preferable to produce hydrogen from renewable, local sources: solar, nuclear, and even biomass.  

MidlandsBiz:
What is a hydrogen fuel cell?  What are its advantages?

Shannon Baxter-Clemmons:
If you put flow hydrogen on one side of a fuel cell, and oxygen on the other, then a flow of electrons and protons is created and you have electricity.  The byproduct of this process is water and a little bit of heat – a clean energy with no moving parts.   As such, hydrogen has the potential to help us reduce greenhouse gas and carbon emissions. 

MidlandsBiz:
How does South Carolina measure up compared to other states in terms of expertise in this area?

Shannon Baxter-Clemmons:
With over 80 PhDs at Savannah River National Laboratory (SRNL) in Aiken working in hydrogen storage and production, South Carolina already has an international reputation in hydrogen and fuel cells.  SRNL has been using hydrogen in defense applications for over 50 years and is now focusing its efforts in the production and storage of hydrogen.  There is no other facility like this in the country. 

Our technical colleges and research universities are also gaining national attention for their collaborative efforts to align the educational system around this industry.

We are also growing the industry in the state.  Currently we have companies working on fuel cells, membrane technologies, capacitors, catalysts, back-up power systems and hydrogen production appliances.  The numbers of jobs and interest in the state is growing as is our reputation.

South Carolina is well positioned to capitalize on the assets we have here at home and be a major contributor in the global economy. 

MidlandsBiz:
Is this a statewide or a Midlands opportunity?

Shannon Baxter-Clemmons:
Columbia and Aiken are currently the areas in the state with the most activity but there is enormous potential for businesses and communities across the entire state.  In the Upstate, BMW has developed internal combustion cars that run on both liquid hydrogen and gasoline.  In the Lowcountry, clean fuel technologies offer a great opportunity for both the Port of Charleston and also for the inland port that is planned in Orangeburg. 

MidlandsBiz:
Are there any downsides to hydrogen as a fuel?

Shannon Baxter-Clemmons:
The biggest challenge to using hydrogen is the infrastructure.  Currently we have an infrastructure that serves us fairly well—gasoline.  It’s hard to compete with it.  However, we are not in control of the majority of resources that our present infrastructure is reliant on.  The hydrogen infrastructure is challenging but not insurmountable.

MidlandsBiz:
What is the difference between hydrogen and a traditional battery as we know it?  Is a battery a fuel cell?

Shannon Baxter-Clemmons:
A battery is not a fuel cell but they both produce electricity form electrochemical reactions (neither uses the exploding or combusting of materials to create energy).  But with a self-contained battery, you eventually reach a point when it is completely consumed and you either have to recharge it or throw it away.  With a fuel cell, as long as you continue to supply hydrogen and oxygen, you can have electricity.  Fuel cells also offer better power quality; you do not experience the drag that is commonly associated with the end of a battery’s life. 

MidlandsBiz:
What practical commercial applications currently use hydrogen?

Shannon Baxter-Clemmons:
Hydrogen is essential in our day-to-day lives and is already an enormous industry in this country.  We currently produce over 13M tons of hydrogen each year for a wide variety of applications from the de-sulfurization of oil as it is refined into gasoline to the production of fertilizer.  Hydrogen played a role in helping to reduce our sulfur emissions and solve the acid rain problem. 

Current applications of fuel cells range from use in light-duty, off–road applications such as forklifts to urban busses and fleet vehicles.  Fuel cells are used as a more reliable source of portable, mobile power for the military.   In the Upstate, we are working with Dantherm Power, a Danish company with US headquarters in Spartanburg that is an international first mover in the use of hydrogen fuel cells instead of diesel power in providing backup power for cell phone towers.

Hydrogen has the potential to deliver many of our energy needs: industrial, commercial, residential, electric power and transportation. 

MidlandsBiz:
What is the mission of the SC Hydrogen and Fuel Cell alliance?

Shannon Baxter-Clemmons:
A key role we play is in educating local and state business leaders about the incredible potential hydrogen and fuel cells hold for South Carolina.  We look to build a strong economic cluster based around strategic energy solutions that use hydrogen and hydrogen fuel cells. Our goal is to make this state a compelling location to grow a business organically or to locate a business.  We want people to come here because we have assets that can’t be duplicated anywhere in the world.

A key recent development has been the tabling of the 2009 Hydrogen Permitting Act which passed the SC House with over 100 sponsors. If this Bill passes the Senate when the SC Legislature convenes in 2010, we will be the first state in the country to permit hydrogen and fuel cell facilities at the state level using current, internationally recognized standards.  This will be a great signal to industry looking to locate here in the state.

MidlandsBiz:
What are the main obstacles that you will have to overcome for hydrogen to come more to the forefront of the future fuels solution?

Shannon Baxter-Clemmons:
The first obstacle is overcoming our complacency.  We need to stand up and decide once and for all that we have had enough of outside geopolitical forces determining the economic fate of our country.  We need to decide that we’ve sent enough money to OPEC and Hugo Chavez.  We need to make energy independence a priority.

The second challenge is the limitations of the existing
infrastructure and distribution channels.  People fill their cars up with gasoline because there is a gas station on every corner.  Hydrogen is just not there yet in terms of ease of use.

The challenges currently facing fuel cells are durability and cost.  As the number of orders has been increasing around the globe, cost per unit has started to decline significantly because of volume pricing and technological advances.  Toyota recently made an interesting statement that they believe the fuel cell vehicles introduced in 2015 will be priced shockingly low.  I am continually encouraged by what industry is telling us.

MidlandsBiz:
Hydrogen seems to have fallen out of favor at the national level. Will hydrogen be the winner when it comes to future fuels? 

Shannon Baxter-Clemmons:
I wouldn’t say that it has fallen out of favor as much as the federal government is looking for solutions that will most quickly reduce our country’s dependence on foreign oil  Our future energy needs will most likely involve a range of renewable and non-renewable resources; it’s hard to predict winners.  An evolution will most likely occur from our current generation of hybrids, to plug in hybrids with bigger batteries, to natural gas vehicles, and eventually to hydrogen.   I believe that all pathways will lead to hydrogen fuel cells as a major source for all of our energy needs, including transportation. 

We should accelerate that process and invest right now in a transitional infrastructure that will enable this long-term shift to hydrogen as our main energy source.  In the short-term, we will shift to compressed natural gas (CNG).  Why not factor in the long-term capacity issue of a shift to hydrogen compressed natural gas (HCNG)?

We are entering into a period between 2010 and 2040 where geologists have predicted that we will reach peak oil. We can’t put all of our eggs in one basket when it comes to energy strategy, but being 100% invested in oil just does not make sense for this country.  We need to diversify now. 

The history of energy sources has been a steady movement away from carbon-based fuels: wood, coal, oil, natural gas.  The ultimate goal is a zero carbon future and the way to achieve that is through zero-emission electricity delivered by nuclear power and renewables, including hydrogen.  An intermediate role might be for reduced carbon emission by 2030; our goal for 2050 should be zero emissions. 

MidlandsBiz:
What is the biggest challenge that your organization faces in this down economy?

Shannon Baxter-Clemmons:
In a down economy our biggest challenge is financial and we have had our government funding cut to zero.  We received seed funding from SCRA and our members pay dues, but we have had to look for other revenue streams.  Growing our membership, or competing for more projects where we can provide service are other ways we can increase our funding. 

MidlandsBiz:
In 5 and 10 years, what do you hope to achieve?  What accomplishment would make you most proud?

Shannon Baxter-Clemmons:
If in 5 years hydrogen is still growing as a cluster and supporting graduates from USC, Claflin, Clemson, SC Sate, Midlands Tech, and Aiken Tech, I will be happy.  If in 10 years, hydrogen has become an established industry with widespread applications in our homes and cars, I will feel like my time was well spent. 

The United States has 5% of the world’s population, but consumes 25% of the world’s energy.  That model is just not sustainable.  Energy will be THE defining issue for our country in the 21st century.  With our current energy model, economists believe that will are set up for the biggest transfer of wealth in the history of mankind.  

It is not necessarily important for South Carolinians to understand the chemistry behind hydrogen.  The important question is:  What does this technology mean for our society, and more specifically, for South Carolina?  Economic prosperity, energy security and protection of our health and environment.