[Congressional Record (Bound Edition), Volume 147 (2001), Part 8]
[Extensions of Remarks]
[Pages 10894-10895]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    TESTIMONY OF ARTHUR T. KATSAROS

                                 ______
                                 

                          HON. MELISSA A. HART

                            of pennsylvania

                    in the house of representatives

                        Thursday, June 14, 2001

  Ms. HART. Mr. Speaker, today the House Science Committee, 
subcommittee on Energy, held a hearing on the ``President's National 
Energy Policy: Hydrogen and Nuclear Energy Research and Development 
Legislation.'' One gentleman that was asked to testify was Arthur T. 
Katsaros, who spoke on behalf of Air Products and Chemicals, Inc., a 
Pennsylvania based company that has been researching and developing the 
utilization of hydrogen as a fuel source. With the recent coverage of 
energy and our plans for future use in the United States, I would ask 
that his testimony be submitted for others to view and learn more about 
this abundant source:

                              Introduction

       Mr. Chairman, Ms. Woolsey, and members of the Subcommittee, 
     thank you for the opportunity to testify this morning on a 
     subject that may seem futuristic but is actually upon us--the 
     utilization of hydrogen as a fuel source. No matter what 
     one's perspective is on climate change and the role of fossil 
     fuels in the current economy, there is a broad consensus that 
     the United States and the world are moving toward a 
     ``hydrogen economy'' in which fuel is abundant, efficient, 
     renewable, and non-polluting. There is debate over how soon 
     hydrogen will be widely available as a fuel source, but 
     little debate over hydrogen's many virtues. I am pleased to 
     address the viability of hydrogen as a fuel source today and 
     in the years and decades ahead, and to address perfectly 
     legitimate concerns about assuring its safe use. I ask that 
     my full testimony be submitted for the record.
       I am Arthur Katsaros, Group Vice President for Engineered 
     Services and Development with Air Products and Chemicals, 
     Inc, a Fortune 500 company based in Allentown, Pennsylvania, 
     and with operations throughout the world. Air Products is 
     among, the world's largest companies in the industrial gas 
     business, and is the leading producer of third-party hydrogen 
     worldwide. Air Products is a recent past chair of the 
     National Hydrogen Association (NHA), whose members include 
     industrial gas producers, automobile manufacturers, energy 
     providers, chemical companies, universities, and research 
     institutions. I am pleased to be appearing on behalf of both 
     Air Products and the NHA.


                    Support for Hydrogen Future Act

       NHA members wholeheartedly support reauthorization of the 
     Hydrogen Future Act. Indeed, given the focus on hydrogen in 
     the National Energy Policy recently released by the White 
     House, we hope that funding for hydrogen will be increased 
     rather than held constant. The timing is right for the United 
     States to be putting scarce research and development 
     resources into hydrogen as a fuel source.
       The public is clearly committed to environmental 
     protection. Energy concerns have also come to the fore, both 
     as a result of electricity disruptions in California and the 
     higher fuel prices that we all are facing. Policy makers will 
     find it impossible to discuss energy policy without having to 
     also debate environmental impact. Embracing hydrogen 
     certainly appears to be one answer to the tension between a 
     clean environment and bountiful energy--it provides a method 
     for delivering energy to stationary as well as mobile sources 
     without pollution (its byproduct of combustion is water).
       For reasons of environmental protection and sustainability, 
     America needs to be on a path that relies increasingly less 
     on carbon as a source of energy--we have moved over the past 
     150 years from coal, to oil, to natural gas, and we believe 
     eventually our economy will be based primarily on hydrogen.


                     Hydrogen is a Safe Fuel Source

       Every day, millions of pounds of hydrogen are used--and 
     used safety--in hundreds of industries across the country and 
     around the world (50 million pounds daily in the U.S. alone). 
     As the world's largest third-party hydrogen generator and 
     supplier, Air Products has been addressing hydrogen safety, 
     storage, transportation and other infrastructure concerns for 
     decades. We put an extremely high value on safety at Air 
     Products. The American Chemistry Council last year gave Air 
     Products its highest award for safety. Our experience shows 
     that hydrogen can be handled safely when guidelines for its 
     safe storage, handling and use are observed.
       Hydrogen is a fuel, and as a fuel it has combustible 
     properties. Hydrogen's combustion properties warrant the same 
     caution any fuel should be given, and like all fuels there 
     are safety measures unique to hydrogen (most people do not 
     refill their own propane tanks, for example, yet propane is 
     widely used at home). There is no scientific or practical 
     barrier to the safe use of hydrogen as a fuel.
       Safety technologies for hydrogen have progressed in several 
     areas. Gas detection and measurement capability has advanced 
     based in part on the extensive investment of the Department 
     of Energy in the last few years. Several of these 
     technologies are becoming available as commercial products. 
     Hydrogen flame detection has progressed mainly from the 
     commercialization of technology used by the National 
     Aeronautics and Space Administration (NASA). NASA today uses 
     infrared and ultraviolet detection systems that can detect 
     not only invisible flames produced by burning hydrogen, but 
     also those hidden behind a screen of smoke. In addition, a 
     series of hydrogen sensors has proven to be capable of 
     detecting hydrogen leaks prior to ignition.
       Air Products operates hundreds of miles of hydrogen 
     pipelines in the U.S. In California alone, we produce 
     approximately 300 million standard-cubic-feet-per-day of 
     hydrogen, which is transported to petroleum refiners in the 
     state to reduce the sulfur, olefins and aromatics content in 
     transportation fuels. Safety is the paramount concern in the 
     operation of our hydrogen pipelines. Our pipeline integrity 
     management program--which exceeds regulatory requirements--
     includes risk assessment studies that typically result in the 
     use of multiple safety technologies on our hydrogen 
     pipelines, including heavier pipeline wall thickness, excess 
     flow valves and isolation valves, along with intensive 
     testing, inspection and maintenance procedures. We have been 
     working closely with the U.S. DOT Office of Pipeline Safety 
     on the development of regulations increasing safety practices 
     on hydrogen and other flammable gas pipelines. The 
     promulgation of these regulations will be critical to the 
     development of a safe and reliable hydrogen pipeline 
     infrastructure in the U.S.
       In addition to delivering hydrogen to customers through 
     pipelines, Air Products also liquefies hydrogen at cryogenic 
     temperatures (-423  deg.F) and transports it by truck and 
     barge. We drive 15,000-gallon hydrogen tanker trucks millions 
     of miles per year on U.S. highways without incident. NASA, 
     the largest consumer of liquid hydrogen in the world. has 
     been buying hydrogen for the space program from Air Products 
     for over 35 years under consecutive competitive contracts, 
     totaling over 300 million pounds of liquid hydrogen. Every 
     Space Shuttle flight has been powered by our liquid hydrogen.


            Codes and Standards Translate into Public Trust

       Hydrogen energy safety is based on three primary elements: 
     regulatory requirements, capability of safety technology, and 
     the systematic application of equipment and procedures to 
     minimize risks. Industry currently implements many successful 
     proprietary methodologies for safely handling large amounts 
     of hydrogen. There are several codes and standards 
     specifically for hydrogen fuel applications that are under 
     development by international, U.S. and industry organizations 
     (including ISO, DOE and NHA). There are also many efforts 
     underway to standardize hydrogen system component manufacture 
     for hydrogen safety in a variety of potential commercial 
     hydrogen market applications.
       Widespread hydrogen use will require that safety be 
     intrinsic to all processes and systems. To develop a hydrogen 
     infrastructure

[[Page 10895]]

     that has the public's confidence in its safety and 
     convenience, an industry consensus on safety issues is 
     required. This includes the development of compatible 
     standards and formats (e.g., the same couplings for 
     dispensing the same form of fuel). Product certification 
     protocols are also required. The development of codes and 
     standards for the safe use of hydrogen is an essential aspect 
     of the U.S. Department of Energy Hydrogen Program.
       Utilizing industry expertise and coordinating with 
     government and other official entities, this barrier to 
     commercialization may be overcome, allowing siting of 
     hydrogen components and systems on a worldwide basis. Indeed, 
     the NHA works with leading code- and standard-setting 
     organizations around the world to develop and publish 
     industry consensus standards that account for the outstanding 
     safety record of hydrogen. The workshops, technical meetings, 
     manuals, reports, and sourcebooks of the NHA characterize an 
     industry that wants to leave no stone unturned in a 
     commitment to safety and public trust. We will continue to 
     work with policy makers on standards and codes that promote 
     safety and encourage public confidence in the use of hydrogen 
     in fuel cells and direct combustion.


    Commercialization is Coming, but it Requires Government Support

       Our international competitors--often with major help from 
     their governments--are pouring substantial resources into 
     hydrogen research. We believe that hydrogen will be widely 
     used commercially within a generation--if not in the United 
     States, then surely in Western Europe, where a consensus 
     exists that climate change must be addressed. The Japanese 
     have a $2.8 billion long-term hydrogen program called World 
     Energy Network. Major automakers around the world are 
     planning to sell fuel cell cars within the next five years. 
     Clearly, the race for global dominance in hydrogen fuel 
     technology has begun.
       Through our involvement in multiple demonstration projects 
     in North America and Europe, Air Products is very much 
     engaged in the race to commercialize hydrogen technologies. 
     Some examples of our involvement include the design and 
     installation of fueling systems for a hydrogen fuel cell bus 
     demonstration program for the Chicago Transit Authority; Ford 
     Motor Company's fuel cell automobile development facility in 
     Dearborn, Michigan; and a fleet of fuel cell service vehicles 
     for the Palm Springs, California's Airport. Air Products is 
     leading the hydrogen fuel provider team for the California 
     Fuel Cell Partnership. In the next three years, more than 70 
     fuel cell-powered cars and buses will be placed on the road 
     from the Partnership's West Sacramento facility. We recently 
     installed a gaseous hydrogen fueling station in Atlanta, 
     Georgia for a hydrogen fuel bus project conducted by a 
     consortium of companies led by the Southeastern Technology 
     Center. Air Products has successfully tested the use of 
     Hythane--a blend of hydrogen and natural gas used as an 
     ultra-clean fuel--in projects in Denver, Colorado, and Erie, 
     Pennsylvania. This year we participated in the demonstration 
     of a stationary fuel cell generator that was used to power 
     air quality monitoring equipment used by the Texas Natural 
     Resource Conservation Commission. And Air Products is 
     currently leading a team that will build and operate an on-
     site hydrogen production facility, fuel cell power plant, and 
     a fueling station capable of dispensing hydrogen and 
     hydrogen-blended fuels to fleets of buses and light duty 
     vehicles in Las Vegas, Nevada. Almost all of these projects 
     have one thing in common: the active support and partnership 
     of government entities.
       The hydrogen industry recognizes that the markets will 
     ultimately dictate the commercial success of hydrogen. 
     However, we note that a White House that prides itself on its 
     faith in the markets has, in its recent National Energy 
     Policy, supported tax credits for fuel cell vehicles. We 
     suggest that such credits, which would stimulate demand for 
     hydrogen, need to be matched by credits to stimulate hydrogen 
     supply if government is serious about supporting hydrogen 
     utilization. For example, a tax credit for plant and 
     equipment that generates and distributes hydrogen would help 
     develop the infrastructure needed to supply fuel cell 
     vehicles and stationary power generators. Without such an 
     infrastructure, it is less likely that fuel cell 
     manufacturers will have success in selling mass quantities of 
     fuel cells that cannot easily be refilled.
       Beyond tax credits, vibrant funding of the hydrogen program 
     at DOE--especially research into improved hydrogen storage--
     will help lead the country toward widespread 
     commercialization of hydrogen fuel. Utilization of hydrogen 
     fuel on urban bus fleets and other government vehicles, 
     perhaps combined with applications of fuel cell power plants 
     at federal facilities, will demonstrate the role of hydrogen 
     and, by increasing demand, help drive down costs.


                               Conclusion

       The United States is poised to take a leadership role in 
     the development and commercialization of the global hydrogen 
     economy. Hydrogen's utilization promotes clean air and water, 
     makes the United States more competitive internationally, and 
     ultimately holds
       Through R&D programs and demonstration projects supported 
     by the DOE and other government agencies, new hydrogen 
     technologies will be tested and prepared for commercial use;
       By its own use of hydrogen technologies, government will 
     play a key role in stimulating the development of a hydrogen 
     infrastructure;
       And by driving the development of standards and 
     regulations, government will help with the issues of storage 
     and safe handling of hydrogen required for public confidence.
       We are pleased this Committee shares the view that hydrogen 
     plays an integral role in energy planning for the future. It 
     is our hope that Congress will take a vital step toward this 
     future by its prompt consideration and passage of the 
     Hydrogen Future Act. We look forward to working with this 
     Committee, with Congress generally, and with an 
     Administration that has identified the need for an increased 
     role for hydrogen to satisfy our energy needs in the near 
     future and beyond.

     

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