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Analyst Buzz<br />

However, <strong>the</strong> potential of solar energy<br />

is enormous and, on a practical basis<br />

is >600 TW. Photosyn<strong>the</strong>sis alone can<br />

provide 90 TW of energy resources.<br />

The sun delivers more energy to <strong>the</strong><br />

earth in one hour than civilization currently<br />

uses from fossil fuels, nuclear power and<br />

all renewable energy sources combined in<br />

a year. This solar energy can be captured<br />

and stored directly in <strong>the</strong> chemical bonds<br />

of a material, or fuel, and <strong>the</strong>n used when<br />

needed. These chemical fuels, in which<br />

energy from <strong>the</strong> sun has deliberately been<br />

stored, are called solar fuels.<br />

For more than 50 years, scientists have<br />

pursued <strong>the</strong> possibility of producing solar<br />

fuels in <strong>the</strong> laboratory. There are three<br />

approaches:<br />

• Artificial photosyn<strong>the</strong>sis in which<br />

systems made by human beings<br />

mimic <strong>the</strong> natural process;<br />

• Natural photosyn<strong>the</strong>sis; and<br />

• Thermochemical approaches.<br />

Significant progress has been made<br />

in producing two very important types of<br />

fuels:<br />

• Hydrogen, which can be used as a<br />

transport fuel, and is an important<br />

feedstock for industry. Hydrogen<br />

can be produced by splitting water<br />

using sunlight.<br />

• Carbon-based fuels such as<br />

methane or carbon monoxide<br />

(used with hydrogen as syn<strong>the</strong>sis<br />

gas). These are key feedstocks for<br />

making a wide range of industrial<br />

products including fertilizers.<br />

The goal is to a transition to a hydrogenbased<br />

economy based on renewable energy<br />

sources, mainly solar. The main barriers<br />

to a transition to hydrogen are <strong>the</strong> lack of<br />

development of technologies for hydrogen<br />

production, storage, transport, and distribution,<br />

and high costs compared with <strong>the</strong><br />

current system.<br />

Ra<strong>the</strong>r than seeing hydrogen as <strong>the</strong><br />

exclusive fuel for <strong>the</strong> future, <strong>the</strong> specific<br />

roles to which it is uniquely suited in each<br />

major sector within an overall sustainable<br />

energy strategy need to be identified.<br />

With this approach, it is expected that<br />

hydrogen would still play a substantive and<br />

crucial role, but a role in concert ra<strong>the</strong>r<br />

than competition with that of electricity<br />

and technologies such as battery electric<br />

vehicles and a variety of shorter-term<br />

energy storage options for grid power.<br />

The potential resource constraints in<br />

a hydrogen economy based on renewable<br />

energy sources have been investigated. It is<br />

estimated that <strong>the</strong> primary energy requirements<br />

of a global economy in 2050 that<br />

were 2.5 times those in 2005 could be met<br />

entirely from potentially collectable solar<br />

radiation (80% of <strong>the</strong> total supply), wind<br />

power (15%) and o<strong>the</strong>r renewables (5%).<br />

The result would be no need for nuclear<br />

power or coal-fired power.<br />

Hundreds of organizations are<br />

currently doing scientific research on<br />

solar fuels and artificial photosyn<strong>the</strong>sis.<br />

A dozen European research partners,<br />

for example, form <strong>the</strong> <strong>Solar</strong>-H network,<br />

supported by <strong>the</strong> European Union. The<br />

US Dept. of Energy (DOE) Joint Center<br />

for Artificial Photosyn<strong>the</strong>sis (JCAP), led<br />

by <strong>the</strong> California Institute of <strong>Technology</strong><br />

(Caltech) and Lawrence Berkeley National<br />

Laboratory, has $122 million over 5 years<br />

to build a solar fuel system. Caltech and<br />

<strong>the</strong> Massachusetts Institute of <strong>Technology</strong><br />

have a large National Science Foundation<br />

(NSF) grant to improve photon capture<br />

and catalyst efficiency, while several<br />

Energy Frontier Research Centers funded<br />

by <strong>the</strong> US DOE are focused on <strong>Global</strong><br />

Artificial Photosyn<strong>the</strong>sis (GAP)-related<br />

endeavors. Japan has established an<br />

Artificial Photosyn<strong>the</strong>sis Group, based on<br />

<strong>the</strong> Catalysis Research Centre, Hokkaido<br />

University.<br />

Hydrogen currently is produced via<br />

steam methane reforming (SMR), which<br />

is <strong>the</strong> commercial process of choice, since<br />

it has <strong>the</strong> lowest production costs of<br />

around $1.00/kg H2. The ultimate goal is to<br />

produce hydrogen without SMR.<br />

The hydrogen market today is estimated<br />

at approximately USD35.9 billion.<br />

By 2023, it will be worth over USD55.2<br />

billion. Making cleaner petroleum fuels in<br />

refineries is currently <strong>the</strong> biggest application<br />

for hydrogen, followed by steel and<br />

chemicals.<br />

However, large-scale production of<br />

hydrogen via solar fuels would increase <strong>the</strong><br />

available market into <strong>the</strong> trillions of dollars<br />

and could result in a large-scale reduction<br />

in <strong>the</strong> use of petroleum fuels. <strong>Global</strong><br />

petroleum production in 2012 is estimated<br />

at approximately 4.5 billion tonnes, worth<br />

USD3.5 trillion.<br />

The world vehicle fleet in 2000 was<br />

700 million and may possibly reach 1500<br />

million by 2050. Replacement of fossil fuels<br />

by hydrogen would require production of<br />

about 260 billion kg/year.<br />

Four companies now control <strong>the</strong> global,<br />

outsourced hydrogen market. Air Liquide is<br />

estimated to be <strong>the</strong> leading supplier in 2012<br />

with a 37% market share. It was followed<br />

by Air Products (23%), Linde (19%) and<br />

Praxair (16%). Ano<strong>the</strong>r 190 companies<br />

have been identified as participants in <strong>the</strong><br />

hydrogen industry.<br />

220 GW of new distributed<br />

solar generation will be<br />

added by 2018, forecasts<br />

Navigant Research<br />

The global electric power industry is<br />

evolving from a financial and engineering<br />

model that relies on large centralized<br />

power plants owned by utilities to one<br />

that is more diverse, in terms of both <strong>the</strong><br />

sources of generation and <strong>the</strong> ownership<br />

of <strong>the</strong> generation assets. Distributed solar<br />

photovoltaic (PV) systems offer <strong>the</strong> benefit<br />

of producing electricity onsite, <strong>the</strong>reby<br />

reducing <strong>the</strong> need to build new transmission<br />

capacity and avoiding line losses.<br />

According to a new report from Navigant<br />

Research, 220 gigawatts of distributed solar<br />

PV capacity will be installed between 2013<br />

and 2018, representing $540 billion in<br />

revenue during this time.<br />

“Used in applications ranging from<br />

residential to small commercial to industrial<br />

settings, distributed solar generation<br />

offers significant benefits to consumers<br />

while adding resiliency to an electric grid<br />

evolving beyond <strong>the</strong> traditional centralized<br />

model,” said Dexter Gauntlett, research<br />

analyst with Navigant Research. “Though<br />

this market is still primarily driven by<br />

government incentives, distributed solar<br />

PV will continue its steady march toward<br />

grid parity in major markets over <strong>the</strong> next<br />

few years.”<br />

Even as distributed solar technologies<br />

have become more cost-effective, many<br />

governments are reining in popular feed-in<br />

tariffs in leading markets. The industry is<br />

fully aware that lucrative financial incentives<br />

will not be around forever. As a result,<br />

many companies are looking at 2017 (<strong>the</strong><br />

year after solar PV investment tax credits<br />

expire in <strong>the</strong> United States) as <strong>the</strong> year that<br />

solar PV will be able to stand on its own,<br />

without government support.<br />

The report, “Distributed <strong>Solar</strong> Energy<br />

Generation”, analyzes <strong>the</strong> global market<br />

for distributed solar PV systems less than<br />

1 megawatt in capacity and provides an<br />

assessment of <strong>the</strong> most important market<br />

drivers, technology trends, and challenges<br />

faced by <strong>the</strong> growing distributed solar PV<br />

industry. Forecasts for average installed<br />

prices and annual installations, segmented<br />

by region, extend through 2018. An<br />

Executive Summary of <strong>the</strong> report is available<br />

for free download on <strong>the</strong> Navigant<br />

Research website: navigantresearch.com.<br />

www.globalsolartechnology.com<br />

<strong>Global</strong> <strong>Solar</strong> & Alternative Energies – May/June 2013 – 33

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