Fernald Power Corporation
A California Corporation

The energy crisis is real.

The energy crisis exists in many forms. For example, there is an inadequate supply of electricity at peak demand times, and there is an inadequate supply of oil and natural gas relative to worldwide demand.

The question is “What solutions are currently available”?

In addition to increased conservation and research into affordable renewable energy sources, Fernald Power Corporation takes a position that more large scale, relatively conventional electrical generating plants should be constructed, and that the fuels for these large plants should be diversified. Because there are many existing plants that use natural gas, more new coal-fired and new nuclear plants should be built to diversify the fuel sources.

Since 2001, the increasing price of oil and natural gas and the continued uncertainty of energy supply and transmission have led to a much greater appreciation for the use of coal for fueling electrical generating plants. It is also interesting to note that since 2001, coal-based power consumed in California has increased from 16% to 20%, all from out of state sources.

With Governor Schwarzenegger’s announcement of a proposed 12,000 MW transmission line between California and Wyoming, it is clear that Coal-fired power will be coming to California. It is no longer “if” but “where and when” it will be built.

The document titled “Continuation…” addresses many features and benefits to building a large power plant and Hydrogen Production Facility in California, as compared to building it in another western state. From the point of view of Californians, why should so many permanent, well-paying jobs be exported out of California?
Why should these plants for supplying power to California residents be located out of California so that they would be less efficient (producing more CO2) than they were located in California?

Scientists have proposed the use of Hydrogen as fuel for cars in order to reduce pollution and to reduce dependence on foreign oil and natural gas. Hydrogen must be manufactured in huge quantities to be useful for millions of vehicles. However, for these purposes, Hydrogen is a “transport energy”, not a basic fuel. There is no place on our planet where hydrogen naturally exists in significant quantities for these purposes. Hydrogen must be separated from other sources.

Any source should be used to produce Hydrogen except natural gas. Natural gas is a very clean burning fuel by itself. It is more efficient and less greenhouse gases are emitted when natural gas is used as fuel for a combustion engine. Separating the hydrogen out of the natural gas requires a good deal of energy and has other by-products such as CO2.

Market forces are also a disincentive to using natural gas. Natural gas is in limited supply, and the supply is becoming more limited over time. Natural gas is also used in many industrial applications which compete for the supply, and for which there is no substitute. Basic economics say that a product in high demand with limited supply is bound to increase in price. If the price is controlled by government, then there is sure to be shortages.

The two primary sources of energy for making Hydrogen in large quantities are Coal and Nuclear. Because the Nuclear source is not likely to be accepted in the near future, coal remains the primary candidate.

Fernald Power Corporation takes the position that the Hydrogen economy, especially in the form of the Hydrogen Highway should, and can, be pursued with vigor.

In response to the desire to accelerate the introduction of Hydrogen to power cars, Fernald Power Corporation has developed the concept of adding a large Hydrogen Production facility directly to and integrated with the electrical generation plant. The Hydrogen Production facility (called a Hydrofizer™ Plant) would make Hydrogen from water using the electrolysis method. In the case of an Electrical generation plant sized at 5000 MW, the Hydrofizer™ Plant could be sized to use approximately 3600 MW which would produce about 1800 tons per day of Hydrogen. This is sufficient to supply 1.8 million autos along the “Hydrogen Highway” and should improve air quality, particularly in locations such as the LA basin.

Each Hydrogen production facility (Hydrofizer™) of this size can reduce our dependence on foreign oil by 0.18 %. Three plants producing over 5000 tons of Hydrogen per day could displace over 0.5 % of the foreign oil imported into the US annually.

The Fernald Power Corporation concept includes a model for how to get Hydrogen from the Hydrofizer™ Plant to customers using returnable and reusable tanks that minimize handling of Hydrogen by customers, thereby emphasizing safety.

Regarding emissions, a coal-fired power plant would be built with the latest in Clean Coal Technology to minimize the impact on the environment. The plant provides many “offsets” that help the environment, including (1) eliminating essentially all of the exhaust fumes from automobiles that are converted to Hydrogen, and (2) being a plant that makes Hydrogen using power from the nonrenewable energy sources that are connected to the grid nearby, regardless of the time of day that these nonrenewable sources operate.

"The goal of the California Hydrogen Highway Network initiative is to support and catalyze a rapid transition to a clean, hydrogen transportation economy in California, thereby reducing our dependence on foreign oil, and protecting our citizens from health harms related to vehicle emissions. We have an opportunity to deal with these problems by investing in California's ability to innovate our way to a clean hydrogen future, thus bringing jobs, investment, and continued economic prosperity to California. We have an opportunity to prove to the world that a thriving environment and economy can co-exist." (Governor Arnold Schwarzenegger's California Hydrogen Highway Network Action Plan)

Tonight I'm proposing $1.2 billion in research funding so that America can lead the world in developing clean, hydrogen-powered automobiles.
A simple chemical reaction between hydrogen and oxygen generates energy, which can be used to power a car, producing only water, not exhaust fumes.
With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free.
Join me in this important innovation to make our air significantly cleaner, and our country much less dependent on foreign sources of energy.

George W. Bush
State of the Union
January 2003