Commercialization model of hydrogen production technology in Taiwan: Dark fermentation technology applications

• Published in: International journal of hydrogen energy 2016-02, Vol.41 (7), p.4489-4497
• Main Authors: Hsu, Chiung-Wen, Lin, Chiu-Yue
• Format: Article
• Language: English
• Subjects: Biohydrogen; Biomass; Business; Business model; Commercialization; Costs; Dark fermentation; ESCO; Fermentation; Hydrogen production; Hydrogen storage; Hydrogen-based energy; Sales; Wastewater
• ISSN: 0360-3199; 1879-3487
• DOI: 10.1016/j.ijhydene.2015.07.080

Hydrogen energy is an important alternative sustainable energy that can be used to reduce the impact of climate change. Its higher costs, as compared to conventional fossil fuels, impede its commercial applications. Therefore, investigating other potential business models is important. Dark fermentative hydrogen production can utilize non-economic organic substrate, such as wastewater, as the input material. Thus, such waste material becomes a useful potential energy source. This study investigates the commercialization of dark fermentation technology applications, and proposes that an ESCO be introduced as a key link in the production and sales business model of biohydrogen. Essentially, the ESCO would assume the role of hydrogen producer and work together with soft drink manufacturers; provide sewage treatment services using the organic material in the wastewater as the input material for dark fermentative hydrogen production; and sign long-term energy provision and service contracts with client users, such as the hydrogen stations that use the H2 and CH4 produced to guarantee successful sales. In such business models, ESCOs can obtain higher returns on investment by reducing the costs of hydrogen fermentation, purification, and storage through additional equipment purchases. •This study examines the commercialization model of dark fermentation applications.•This study proposes that an ESCO be introduced as a key link in the model.•The result shows that cost reduction can lead to higher returns on investments.