Hydrogen and Public Policy

New Jersey and Hydrogen

New Jersey has the opportunity to take a leadership role in the commercialization
of hydrogen fuel and the build out of its corresponding infrastructure. Whether
state policies and resources should be directed to such an effort is a question
ripe for consideration. The implications of action or inaction in terms of costs,
benefi ts and alignment with state policies and institutions should be evaluated.
The quality and breadth of stakeholder involvement will infl uence this analysis.

Accordingly, New Jersey policymakers and other stakeholders should decide whether to encourage hydrogen fuel and fuel cell commercialization. Based on population density, current industry demographics, and other advances in alternative energy technology, New Jersey may be in a good position to start capturing the benefits of hydrogen’s use as a fuel. New Jersey stakeholders can determine whether or not state policies should be focused more on hydrogen fuel, or develop new initiatives in energy, economic development and environmental policy to encourage the commercialization of a hydrogen fuel infrastructure.
Current energy resources, their consumption in New Jersey and the
environmental impact of their use in the state must be taken into consideration to
determine whether hydrogen can lead to improvements. Identifying companies
engaged in the nascent hydrogen economy and those companies likely to benefit from it will help determine whether this sector of the New Jersey
economy should be specifi cally nurtured.

Finally, New Jersey’s research institutions both in universities and in the private
sector can also play a role in growing a hydrogen economy. These strategic
initiatives may be appropriate for New Jersey and can form the building blocks
of a focused policy in the Garden State for hydrogen fuel commercialization
and infrastructure build out.

New Jersey Policy Landscape

Despite the adoption of a state policy framework that has made New Jersey a leader among states in energy and environmental policy, the state currently has no articulated policy toward hydrogen. However, there have been numerous initiatives and demonstrations that can provide the foundation for the development of a policy for the state. Below are brief descriptions of recent policy initiatives that have been adopted by the state legislature or state agencies that address hydrogen or related energy and environmental issues.

In 1998, New Jersey awarded a contract for the commercial use of fuel cell power in a highway Variable Message Sign (VMS). The New Jersey Department of Transportation (NJDOT) awarded the $748,800 contract to a New Jersey based
firm, H-Power of Belleville. Sixty-five existing solar-powered VMS units were outfitted with the fuel cells as a backup stationary power source. Plug Power subsequently acquired H-Power, which is located in Latham, New York.

In 1999, the New Jersey Project Venturer, in conjunction with several universities, technology companies and public agencies, came together to
demonstrate building and operating a hydrogen fuel cell and battery powered electric vehicle. The vehicle, named New Jersey Project Venturer, was entered in the Northeast Sustainable Energy Association’s (NESEA) 1999 Tour de Sol rally. The NJ DOT’s Technology Bureau, NJ Board of Public Utilities (NJ BPU), and NJ
Department of Environmental Protection (NJDEP), and NJ Commerce Commission represented the government partners in the project. New Jersey’s
participation in the Tour rally refl ected the interest by both the state and the involved organizations in showing the public and the business community that hydrogen could in fact be used for vehicular fueling purposes. The Tour de Sol was a seven-day educational road rally event for electric vehicles and featured 50 electric, hybrid-electric and solar-assisted electric vehicles built by major auto and bus manufacturers, students and individuals from North America and abroad.