By David P. Willis

Policy makers should figure out whether it is in New Jersey's interest to promote hydrogen as part of its energy and economic development policies, according to a report released yesterday at Rutgers University.

New Jersey may be in a good position to start capturing hydrogen's benefit as a fuel, said Daniel R. Benson, project manager with Rutgers' Center for Energy, Economic & Environmental Policy.

Benson is a co-author of the report, titled "New Jersey: Opportunities and Options in the Hydrogen Economy." It was funded by The Fund for New Jersey and the state Board of Public Utilities.

More than a year ago, President Bush made hydrogen a central part of U.S. energy policy. As people seek to cut imports of foreign oil and worry about dwindling fossil fuel resources, hydrogen is viewed as an alternative, the report said.

"There are people who believe that hydrogen should be the singular fuel of the future," said co-author Nora Lovrien, a graduate assistant at the center.

But critics say that hydrogen as an energy source is unproven, requires a new infrastructure to use and diverts attention from fuel efficiency standards for vehicles and renewable energy, the report says.

About a third of U.S. states, including California, New York and Connecticut, are integrating hydrogen with their own policy goals and state interests.

The report made recommendations to help New Jersey consider its role as a leader in the commercialization of hydrogen fuel. It says:

--New Jersey should create a framework for public and private sectors to develop policy recommendations to the governor and Legislature.

--The BPU's Office of Clean Energy should establish a Hydrogen Learning Center, which could serve as a focal point for education regarding the state's consideration of policies related to hydrogen fuel.

BPU Commissioner Frederick F. Butler yesterday announced a $250,000 grant to create the learning center. "A hydrogen economy is not going to develop on its own," Butler said.

--The BPU also should support hydrogen and fuel cell demonstration projects. State government also should use fuel cells in state buildings and in a portion of the state's automotive fleet.

--The state should expand research programs at New Jersey's universities to overcome barriers to hydrogen fuel and infrastructure deployment.

--The governor should convene a hydrogen policy working group to review policy implications.

An executive at Millennium Cell, an Eatontown company that has developed technology to generate and deliver pure hydrogen for use in fuel cells, said the state should not focus on hydrogen use for vehicles.

Instead, the state could devote its attention to hydrogen's use as an energy source for standby or portable power, said Rex E. Luzader, vice president, government and military business development.

For instance, Millennium Cell's technology can help power small fuel cells that can be used for military radios, he said.

"The state can be taking a role in being a consumer of standby power products," he said. The state's use can help reduce the cost of those products, Luzader added.

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