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Looking to the hydrogen horizon

September 21, 2004

Demand for oil is soaring, and with it the price - currently $46 a barrel. Discoveries of new reserves are getting thinner and the cost of production is rising, especially in the older fields

Some believe we are reaching the beginning of the end of the oil epoch. But, they say, hydrogen cars could offer a route out of the problem.

Hydrogen technology is not new but the millions of research dollars spent in recent years may finally realise the potential, some experts believe.

Price crunch

"It's not a question of oil running out," says environmental campaigner George Monbiot.

"There will always be dregs stuck in the ground. But if demand exceeds supply as costs of extraction rise, we will see a very serious price crunch."

In the year 2000, total demand for oil was 3,604 million tonnes, according to the International Energy Agency.

In the richest countries, transport accounts for the biggest share, with industry and power generation dominant among the other uses.

In the developing world, there are fewer cars, so oil for transport is less important. But by 2030, the picture will have changed.

World demand will be 5,769 million tonnes, and, while the rich countries will be using an even bigger proportion for transport, the poorer countries' oil profile will look like ours does now. And it is all because of humanity's love affair with the motor car.

Cars driven by hydrogen-powered fuel cells are the much trumpeted solution.

Fuel cells turn the chemical energy stored in the hydrogen into electrical energy which drives the car. There are now several test vehicles working the open roads.

The SiGen mini I looked at recently drove like a cross between a dodgem and a Robin Reliant - but then it was just a cheap model converted to prove the concept.

The company behind the car is run by former North Sea oilmen who have seen the writing on the wall.

"Looking at field data, it was clear we were facing very serious problems with hydrocarbon production," says David McGrath, SiGen's managing director.

"There might be oil in the ground but we're not going to be able to produce it fast enough to meet demand. Something has to give. We saw hydrogen fuel-cell technology as an opportunity to displace fossil hydrocarbons - albeit very slowly, but progressively."

Further information is available on the BBC News site.

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