Jeffrey,
BLDP. Yes, nice technology, still very expensive compared to combustion engine and not an economic alternative unless oil gets very, very expensive, or platinum becomes dirt cheap (not happening). The reason to choose E&P's over BLDP now is that E&P's are making money hand over fist, whereas...
The other point is that fuel cell success will create yet more demand for ng. The source of hydrogen for fuel cells is usually derived from a small, unbranched hydrocarbons for which ng is the best source. New demand will come from transportation needs but especially from the use of fuel cells in electricity production.
The infrastructure for hydrogen (ng) delivery already exists, the only part missing is the GTL technology (OILS, Syntroleum, RNTK, etc.). This technology will arrive before fuel cells do, enabling ng to be converted to methanol or other liquids locally. The heat generated from fuel cells can also be used, improving the economics. The environmental argument for locally generated power derived from ng/fuel cells is compelling. And powerlines are an eyesore besides.
So whereas you see BLDP as alternative to an investment in this sector, I see it as complimentary. The difference is that the competition for the development of a fuel cell is intense, and BLDP may or may not win. Regardless of the victor, however, e&p and those who service them will benefit when this reaches the market (2-4 yrs?).
In the meantime... hand over fist,
(taking a position in a pge explorer isn't a bad idea either) |
