2) "Transportation use" of the RH

The RH is then transferred to into transportation fuel so as to replace or reduce the quantity of fossil fuels present in transportation fuel, using the same accepted methodology as for pipeline transfers of biogas.  The RH produced is injected into a connected distribution system carrying hydrogen, then an equivalent amount of hydrogen gas is withdrawn at a hydrogen-using unit within a refinery.   The withdrawn hydrogen is incorporated into transportation fuel, displacing an equal amount of fossil fuel derived non-renewable hydrogen that would have been incorporated in the finished fuel. The resulting conventional gasoline or diesel thus contains a quantity of RH as renewable cellulosic biofuel content.

There are many advantages to renewable hydrogen as a cellulosic biofuel:

1) Drop-in cellulosic biofuel

Makes a “drop-in” fuel that can be used in today’s distribution systems and cars, reducing the barriers to implementation.  Drop-in fuels are widely recognized as being preferable over fuels that require special vehicles or special distribution networks.  The absence of drop-in biofuels is often cited as a primary barrier to adoption.

2) Proven technology

Does not involve substantial technology risk because all elements of the process are already proven and in operation at large scale.

3) Benefits without negative consequences

RH is one of the few biofuels that achieves the intended sustainability and GHG emissions benefits without making existing refineries and distribution assets obsolete.

4) Can unlock huge potential

There are large cellulosic biogas resources; a recent study estimated the potential as 3.5 billion gallons/year. However, to get fuels to customers, there needs to be sufficient infrastructure. EIA reports that the infrastructure currently available for CNG/LNG distribution handles about 0.4 billion gallons/year. Iogen commissioned studies indicate that the existing capacity for RH generation and incorporation is about 7 billion gallons/year.

5) Enables refiners’ assets to be part of the solution

To date, refiners have, for the most part, not participated in cellulosic biofuel production.   RH would make refiners assets part of the cellulosic biofuel supply chain, and thus increase the likelihood of refiner adoption of cellulosic biofuels.   Participation by refiners could open up capital for expansion of cellulosic biofuels, and accelerate their adoption.

The regulatory status of Renewable Hydrogen is as follows:

• California Air Resources Board (CARB) is expecting to approve RH for LCFS credit generation in 2015.   CARB has issued a proposed 15 day regulation order with rules governing LCFS credit generation by refiners.
  
  
• EPA has not yet approved RH for generation of D3 RINs.  Iogen is working with stakeholders to realize approval of a new pathway petition for RH under EPA’s RFS2 pathway petition process.