Tuesday, January 04, 2005

California's Hydrogen Highway



Vehicle of the Week

Dan Lienert

In what the company has called a "bold experiment," Hummer has prepared a hydrogen-powered version of its H2 SUT (sport utility truck), the H2H. The vehicle is not intended for production, and a Hummer spokesperson said yesterday in a phone interview that the company will not divulge the prototype's development cost.

Hummer's parent, General Motors (nyse: GM - news - people ), owns the H2H and shares it with the office of the governor of California, Arnold Schwarzenegger. In a recent statement, Schwarzenegger said that the purpose of the prototype is to "demonstrate the economic and technical viability of hydrogen." He had said during his gubernatorial campaign that he was interested in alternative fuels and one day would go so far as to own a hydrogen-powered Hummer.

California is making a pioneering effort with its Hydrogen Highway Network, an initiative that combines the efforts of industry and government to develop the state's infrastructure, research and market for hydrogen cars. Hummer, a maker of the some of the most fuel-inefficient and wasteful automobiles in the world, presumably wanted a part in this venture because Schwarzenegger already likes the brand's cars, and because the company is trying to change its image.

The H2H puts lipstick on the pig by turning a vehicle whose urban fuel economy is about 10 miles per gallon (filling the tank routinely costs over $50) into a futuristic, alternatively-fueled car whose main tailpipe emission is water vapor. Hummer has engineered the H2H to use a supercharged version of the regular truck's 6.0-liter V-8 engine.

According to Hummer, the H2H was created by a team of GM engineers from the U.S., Canada and Germany, in collaboration with Quantum Technologies (nasdaq: QTWW - news - people ), a California-based supplier of hydrogen fuel systems. The car is a one-of-a-kind deal, although the partners might build one or two more H2Hs.

The H2H uses a conventional internal combustion engine powered by compressed hydrogen, even though GM's plans for its future model range involve hydrogen cars powered by energy sources called "fuel-cell stacks." Supposing for the sake of argument that Schwarzenegger wanted to drive the H2H around California ("I don't think that's a common occurrence," said the Hummer spokesperson), he could refuel the car at several stations.

The majority of California's 12 to 15 hydrogen refueling stations are in the southern part of the state, although Schwarzenegger could--for example--refuel the H2H at the University of California, Davis' station if he didn't to stray too far from Sacramento. Hydrogen currently costs $4 to $10 per kilogram, the unit in which it is measured, and the H2H's fuel tank holds five to six kg of hydrogen. GM believes that if hydrogen is to be commercially viable it must cost $2 to $2.25 per kg--that is, it must be competitive with gasoline prices.

GM does not allow Schwarzenegger to use the "Self-Serve" lane at the hydrogen station. The company fills the tank itself, keeps the vehicle in Lake Forest, Calif. (near its engineering facilities and Quantum's offices) and requires that a GM engineer ride in the car at all times.

Forbes Fact

Is Hummer's tentative embrace of green technology sparked by conscience or sales? Noting that Hummer's North American sales in the first 11 months of 2004 declined 19% compared to the same period in 2003, the refashioning of Hummer starts to make sense--even if selling Hummers on their fuel economy still sounds like a desperate move. This spring, Hummer will introduce the H3 sport utility vehicle, the company's smallest and most fuel-efficient car yet.