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<h1 style="text-align: center;">The Hydrogen Hero</h1>
 
<h4 style="text-align: center;">Executive Summary</h4>
<p align="justify">The consumer interest and overall investment in green energy is continuing to drive development and market growth in renewable energy systems. Hydrogen gas would be a strong contender in the market but currently lacks production methods that are independent of fossil fuel input. The market is prime for innovation that could gain capital and revolutionize current energy production systems in ways that have not been achievable previously due to industry reluctance to phase out fossil fuels. While there are current renewable energy sources in the market, the technology is predominantly restricted to real time electricity production with no means of storage. The future of renewable energy is looking strong, especially in the face of notoriously emission heavy energy industries that are detrimental to the environment.</p><br>
 
<h4 style="text-align: center;">Our pitch</h4>
<p align="justify">Our project is uniquely positioned to add superior production capability to the market. Successful engineering of hydrogen gas-producing bacteria within a contained system would have the dual benefits of modular energy production and storage.</p><br>
 
<h4 style="text-align: center;">Business Summary</h4>
<p align="justify">The Macquarie University iGEM team is working to engineer <i>E. coli</i> through synthetic biology techniques to impart it with the genes required to synthesize chlorophyll-a and photosystem II. The combined effect of these two biosynthesis pathways is to impart <i>E. coli</i> with the ability to harness light energy for the transfer of electrons to the photosystem II complex and synthesise hydrogen gas as a renewable energy source.</p><br>
 
<h4 style="text-align: center;">Market growth</h4>
<p align="justify">The renewable energy market in general is undergoing exponential growth in the 21st century due to a variety of market factors that are driving a clean energy revolution. The high greenhouse gas emission for fossil fuels, and its finite supply, has renewed vigour to innovate the renewable energy market. Environmentally conscious consumers are compounding this change by taking a more active part in encouraging responsible environmental practises (Sadorsky, 2012). Increased consumer pressure through buying power has driven serious change in areas such as responsible packaging and more environmentally friendly chemical formulas (Straughan & Roberts, 1999). Studies into consumer psychology have demonstrated that socially and environmentally conscious consumers are willing to pay a premium for ecologically responsible products (Laroche <i>et al</i>., 2001). As such, consumers' investment in renewable energy is on the rise.</p><br>
<p>Hydrogen gas is an extremely attractive alternative fuel source. When made from renewable and clean energy sources the burning of hydrogen produces no net greenhouse gas emission. Hydrogen gas functions as an excellent carrier of energy, with a high energy per unit of mass ratio and the ability to be transported from its place of production (Mazloomi & Gomes, 2012). It’s also widely available, being the most abundant element in the universe but is usually found in the form of a compound.  Hydrogen hence needs to be separated and purified from other elements for storage and utilisation (Gutiérrez-Martín <i>et al</i>., 2010).  Herein lies the most critical drawback of hydrogen fuel production - it is difficult and expensive to successfully achieve. Its status as a renewable energy source is also not entirely reflective of the fact that currently about 90% of hydrogen fuel production is dependent on means that require fossil fuels, such as partial oxidation of methane and coal gasification (Alazemi & Andrews, 2015). As such, the current market for hydrogen as a fuel source is only limited by scientific and technological innovation. </p><br>
 
 
 
<h4 style="text-align: center;">Industry rivalry</h4>
 
<p align="justify">Rival renewable energy technologies from such as wind farms, photovoltaic cells and solar panels have the advantage of being established in the market with attached consumer awareness and sentiment. Being conventional and implemented technology, they are proven viable energy production methods however are not without limitations (Gutiérrez-Martín <i>et al</i>., 2010). High maintenance costs and inability to store excess energy production for later use have both been flagged as the major drawbacks of current productions means in this sector.  For example, peak wind activity and peak electricity consumption usually operate in opposite cycles meaning excess energy is produced when least required (Mazloomi & Gomes, 2012). Additional sources of power are required to meet energy demand during peak times, and during times of high wind activity there have been instances where wind farms have needed to be disconnected from the electrical grid in order to prevent it from being overloaded (Gutiérrez-Martín <i>et al</i>., 2010). The industry is developing storage techniques in order to store excess produced energy, particularly as hydrogen gas, and return the energy to the grid when required (Mazloomi & Gomes, 2012). As such our modular system, which automatically stores energy as hydrogen gas, has some competitive advantage over rivals which need to adapt the current flow of electricity into a means of storage.</p><br>
 
<h4 style="text-align: center;">Strengths and Risks</h4>
 
            	<p align="justify">Existing technology and sourcing methods are weighted toward fossil fuel consumption and means hydrogen based fuels are not as cost effective in the short term. As renewable technology becomes more established and efficient, however, the price generally decreases, as demonstrated by the graph below showing the decrease in price of photovoltaic cells covering the period 1998-2011.</p><br>

<center><img src="https://static.igem.org/mediawiki/2015/1/10/Image_1_business_plan_gm_mq.jpg"><br></center>
<figcaption><i><b>(Feldman, 2014)</b></i></figcaption>
 
<p align="justify">Aside from water and <i>E. coli</i> input, the Hydrogen Hero prototype is designed to be self-sufficient, rendering its highest associated cost the outlay of purchasing the system. The running of the system should be relatively economical due to the ease low expense with which <i>E. coli</i> can be produced. One of the differentiating features of our project and the Hydrogen Hero is its ability to immediately store the hydrogen gas it produces, giving it a major advantage in the current market over other systems which cannot store excess energy produced.</p><br>
<p align="justify">One of the major barriers to success of hydrogen gas in the market is the perceived safety of its production, storage, and usage.  High profile incidents such as the Hindenburg disaster of 1937, and hydrogen’s renowned status as a highly flammable substance due to low electro-conductivity, are not ideal for building consumer confidence (Mazloomi & Gomes, 2012). The relative safety risk of hydrogen fuel is, however, no more than that of other petroleum or other liquid or gas fuel sources when standard safe working practice is adopted (Alazemi & Andrews, 2015; Mazloomi & Gomes, 2012). While hydrogen gas only requires a low amount of ignition energy to combust, it has one of the highest auto-ignition temperatures amongst fuel sources making it relatively safe from spontaneous combustion (Alazemi & Andrews, 2015; Mazloomi & Gomes, 2012). Hydrogen gas also has added benefits in regards to health considerations of being harmless when burnt, being non-toxic when inhaled (Mazloomi & Gomes, 2012).</p><br>
            	 
 
<h4 style="text-align: center;">Finances</h4>
            	<p align="justify">The world’s energy demand is predicted to rise 1.8% on average annually until 2030, with renewable energy projected to be the fastest growing sector at 6.7% annually using conservative assumptions (Sadorsky, 2012). While the world is still heavily dependent on fossil fuels the diminishing sources, increasing cost and decreasing desirability of emission heavy fuels is spurring increased investment and financing in the green market (Sadorsky, 2012). This increased capital is coming from both the private and public sector with industry trying to capitalise on green technology and government trying to alleviate the pitfalls of greenhouse gas production and the energy crisis. China in particular is a driving force, as the increased energy demand in China is projected to be almost double that of the rest of the world at 3.2% annually (Sadorsky, 2012).</p><br>
            	<p align="justify">Hydrogen gas is of increasing popularity as a fuel source due to the benefits described above. Automotive groups are undertaking projects to research and commercialize hydrogen fuel cells to integrate into already successful vehicles with other fuel cell types (Alazemi & Andrews, 2015). The drawbacks of energy wastage from wind farms are being mitigated by the Spanish government through implementing large scale hydrogen gas energy storage (Gutiérrez-Martín <i>et al</i>., 2010). Even without taking into account a variety of favourable factors such as increased yield from upgrading grid wires, the entire cost of the project is modelled to yield a 3% net profit in the 20 years post implementation (Gutiérrez-Martín <i>et al</i>., 2010).</p><br>
<p align="justify">Government investment is growing in initiatives such as rebates that encourage the adoption of modular devices that make infrastructure self-sustaining, such as solar panels and water tanks. These initiatives are gaining popularity as they are more cost effective than large scale construction of systems to supply utilities to the greater population. Depending on the degree of  government intervention to reach renewable energy targets the renewable energy sector may surpass the suspected growth of 6.7% annually to 8.5% (Sadorsky, 2012). “Renewable energy companies can expect to increase sales as more high income, green minded, individuals and governments become early adopters of renewable energy" (Sadorsky, 2012).</p><br>
<p align="justify">Unfortunately for this project and many like it, the Australian government does not directly fund initiatives or research projects with regard to hydrogen fuel development or production. In fact the Australian energy market is one of the top 3 fossil fuel dependent energy markets amongst developed nations (WNA, Updated March 2015). In 2012-13 the Australian national electricity market was derived from the following sources: 82% coal, 7% gas produced by combined cycle power plants, 10% hydroelectricity and 4% from wind generated electricity (WNA, Updated March 2015). The Australian Renewable Energy Agency (ARENA) established in 2012 was designed to allocate funding to promising projects in the renewable energy sector to drive its development. The current government, however, voted into power in 2013, has actively opposed clean energy initiatives in favour of investment into coal and natural gas production. By repealing the national carbon tax in 2013, the Australian government reduced the Australian Renewable Energy Agency budget from $580 million dollars to $194 million, $89 million, and $57 million for the 2014, 2015, and 2016 financial years respectively (ARENA, 2015).  Furthermore in 2014 the UNESCO committee deferred a debate regarding a decision to assign the Great Barrier Reef the status of “in danger” (Sturmer, 2014). UNESCO perceived the Australian Government was not only failing to protect the reef but actively contributing to its degradation with plans to open more adjacent coal ports and build natural gas pipelines through the area, which disrupts the local environment and also lead to dumping of sledge (Sturmer, 2014). The decision was ultimately made to leave the Great Barrier Reef’s status unchanged, although UNESCO continue to closely monitor the overall health of the reef.  With the recent change in Prime Minister, however, and increased public sentiment to change Australian energy production to renewables, the future Australian government is poised to rectify the progress lost in the local renewable energy sector.</p><br>
<p align="justify">Overall current trends are demonstrating that investor interest in renewable energy is inversely related to oil prices (Sadorsky, 2012). With rising oil prices, the added investment in renewables globally means publically traded renewable energy portfolios are beginning to outcompete the S&P 500 AND NASDAQ. As such, hydrogen renewables are considered not far from being economically competitive (Alazemi & Andrews, 2015; Sadorsky, 2012).</p><br>
 
 
 
<h4 style="text-align: center;">Future</h4>
<p align="justify">The abundance and greenhouse gas emission free burning of hydrogen gas means hydrogen based fuel has arguably the best long term viability of all fuel sources, both finite and renewable (Mazloomi & Gomes, 2012). The Hydrogen Hero prototype is our initial penetration into the market for onsite production of hydrogen gas in remote communities and industry. A renewable energy supply independent of grids is required with 2 billion people worldwide lacking access to grid electricity and the opportunity in remote industry abundant (Alazemi & Andrews, 2015; Karutz & Haque, 2013). However the potential for the engineered <i>E. coli</i> and expansion on Hydrogen Hero design is only limited by the technology with which hydrogen is manufactured and stored. Other renewable energy technology systems have reduced in price and maintenance cost as the technology becomes more established (Sadorsky, 2012). As technology in the hydrogen fuel field becomes more established, therefore, the cost of producing the Hydrogen Hero and subsequent prototype designs should become more cost efficient and increase the yield of hydrogen gas.</p>
<p align="justify">Still in its infancy, with the engineered <i>E. coli</i> yet to be fully operational and the prototype design yet to be formally finalised or constructed, it is difficult to adequately predict the future direction of this project. However the ability of the Hydrogen Hero to store hydrogen gas remains a major strength of the project and its likely future development will capitalise on this market differentiation.</p><br>
 
<center><img src="https://static.igem.org/mediawiki/2015/5/5b/Image_2_business_plan_gm_mq.jpg"><br></center>
<center><figcaption><i><b>Fig. 2.</b> Global new investment in sustainable energy, 2004-2014, $ billions. Total values include estimates for undisclosed deals. ("Global Trends in Renewable Energy Investment 2015," 2015)</i></figcaption></center>
 
 <h5>References</h5>
<ul>
<li>Alazemi, J., & Andrews, J. (2015). Automotive hydrogen fuelling stations: An international review. Renewable and Sustainable Energy Reviews, 48, 483-499.</li>
<li>ARENA. (2015). Governance and funding profile. from http://arena.gov.au/about-arena/governance-and-funding-profile/</li>
<li>Feldman, D. (2014). Photovoltaic (PV) pricing trends: historical, recent, and near-term projections.</li> 
<li>Global Trends in Renewable Energy Investment 2015. (2015). In A. McCrone, U. Moslener, E. Usher, C. Grüning & V. Sonntag-O'Brien (Eds.), (pp. 85): FS - UNEP Collaborating Centre for Climate & Sustainable Energy Finance.</li>
<li>Gutiérrez-Martín, F., Confente, D., & Guerra, I. (2010). Management of variable electricity loads in wind – Hydrogen systems: The case of a Spanish wind farm. International Journal of Hydrogen Energy, 35(14), 7329-7336. doi: http://dx.doi.org/10.1016/j.ijhydene.2010.04.181</li>
<li>Karutz, M., & Haque, M. H. (2013, 9-11 Sept. 2013). Hybrid power generating system for off-grid communities in South Australia. Paper presented at the Renewable Power Generation Conference (RPG 2013), 2nd IET.</li>
<li>Laroche, M., Bergeron, J., & Barbaro-Forleo, G. (2001). Targeting consumers who are willing to pay more for environmentally friendly products. Journal of Consumer Marketing, 18(6), 503-520.</li>
<li>Mazloomi, K., & Gomes, C. (2012). Hydrogen as an energy carrier: Prospects and challenges. Renewable and Sustainable Energy Reviews, 16(5), 3024-3033. doi: http://dx.doi.org/10.1016/j.rser.2012.02.028 </li>
<li>Sadorsky, P. (2012). Modeling renewable energy company risk. Energy Policy, 40, 39-48. doi: http://dx.doi.org/10.1016/j.enpol.2010.06.064</li>
<li>Straughan, R. D., & Roberts, J. A. (1999). Environmental segmentation alternatives: a look at green consumer behavior in the new millennium. Journal of Consumer Marketing, 16(6), 558-575. doi: doi:10.1108/07363769910297506</li>
<li>Sturmer, J. (2014). UNESCO ruling: Decision on whether Great Barrier Reef as 'in danger' deferred for a year.http://www.abc.net.au/news/2014-06-18/unesco-defers-decision-on-great-barrier-reef-danger-status/5530828</li>
<li>WNA. (Updated March 2015). Australia's Electricity from http://www.world-nuclear.org/info/Country-Profiles/Countries-A-F/Appendices/Australia-s-Electricity/</li>
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