i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5

Avai lab le at www.sc iencedi rect .com

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A rental car strategy for commercializationof hydrogen in Florida

Lee Linesa, Michael Kubyb,*, Ronald Schultzc, James Clancyb, Zhixiao Xiec

aDepartment of Environmental Studies, Rollins College, 1000 Holt Avenue, Box 2753, Winter Park, FL 32789-4499, USAbSchool of Geographical Sciences, Arizona State University, Tempe, AZ 85287-5302, USAcDepartment of Geosciences, Florida Atlantic University, 777 Glades Road, Boca Raton, FL 33431, USA

a r t i c l e i n f o

Article history:

Received 27 September 2007

Received in revised form

24 May 2008

Accepted 25 May 2008

Available online 19 September 2008

Keyword:

Hydrogen

Rental car

Commercialization

Consumer

Survey

Barrier

Transition

* Corresponding author. Tel.: þ1 480 965 753E-mail address: mikekuby@asu.edu (M. K

0360-3199/$ – see front matter ª 2008 Interndoi:10.1016/j.ijhydene.2008.05.102

a b s t r a c t

This article proposes a hydrogen rental-car strategy for transitioning from fleets to

consumers in Orlando, Florida. Orlando is the No. 1 tourist destination in the United States,

but most car renters visit only a few destinations. A hydrogen rental-car fleet serving this

cluster of destinations could provide visitors with a positive first exposure to hydrogen

vehicles with minimal commitment, creating hydrogen advocates and potential early

adopters in their home regions. The rental-car business combines the logistical advantages

of a fleet operation with outreach to many consumers. A hydrogen-powered rental-car fleet

at the Orlando International Airport could provide guaranteed demand, supporting an

initial rollout of refueling stations. We surveyed 435 rental-car customers in Orlando to

understand the idea from the consumer point of view. We analyzed the bundles of desti-

nations visited by the respondents and found that only three stationsdan existing station

at the Orlando International Airport plus new stations near the theme parks and in

downtown Orlandodcould serve 64% of renters. Half of all respondents indicated a will-

ingness to pay more to rent a hydrogen car, and this subset of customers ranked the ability

to use a pollution-free car as the most important factor in their decision. We then identify

the major barriers to a hydrogen rental-car business model from the corporate point of

view and propose a number of potential solutions. The most significant barrier appears to

be the fleet purchase costs, which we think can be offset by the benefits of free media

coverage and contained by beginning with converted internal-combustion vehicles and

converting eventually to fuel-cell vehicles. We also outline possible synergies with NASA,

Disney, refueling stations, manufacturers and state government.

ª 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights

reserved.

1. Introduction barriers to the hydrogen economy are high. These barriers

Widespread problems associated with the fossil fuel

economy, such as the availability of fossil fuels, reliance on oil

imports from Middle-Eastern countries and greenhouse gas

emissions, have motivated the vision and effort to transition

from a fossil fuel economy to a hydrogen economy. However,

3; fax: þ1 480 965 8313.uby).ational Association for H

include the cost of building the infrastructure, the maturity of

hydrogen production, delivery, and storage technologies,

vehicle performance and driving range, perceived safety risks,

and purchasing behavior by fleet owners and operators [1–3].

Regions considering a gradual transition to a hydrogen

economy would do well to learn from past experiences with

ydrogen Energy. Published by Elsevier Ltd. All rights reserved.

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5 5313

other alternative fuels. A 2006 study by the National Renew-

able Energy Laboratory (NREL) [4] examined the lessons that

can be learned from other alternative fuels and applied to

hydrogen. The study ranked the various barriers in three

ways: a comprehensive literature review, rankings by NREL

scientists and engineers, and rankings by Clean Cities coor-

dinators. All three rankings agreed that the No. 1 barrier is the

availability of alternative fuel infrastructuredor lack thereof.

The high cost of purchasing alternative-fuel vehicles (AFVs)

and the availability of AFVs were also identified as major

barriers by NREL and Clean Cities coordinators.

These two sets of barriersdrefueling infrastructure and

available/affordable vehiclesdare closely interrelated. It is

often said that the transition to hydrogen faces a chicken-and-

egg quandary [1–6]. Manufacturers will not be able to sell

mass-produced vehicles until consumers are able to refuel the

cars when traveling between their desired origins and desti-

nations. Likewise, hydrogen-fuel producers and distributors

will have no market for hydrogen until manufacturers begin

mass-producing vehicles.

The typical solution to this chicken-and-egg dilemma is

government-subsidized initial alternative-fuel infrastructure

[7–9] along with incentives or mandates for government and

industry fleets of AFVs [3,4]. This two-pronged approach is

meant to provide guaranteed initial demand for both vehicles

and stations. Yet, a major message from the NREL study

of barriers [4] was that the fleet market, while undoubtedly

important, ‘‘was not sufficient to generate significant sales

for vehicle manufacturers.’’ The study concluded ‘‘finding

a way to transition from fleets to consumers is equally critical.’’

In this study, we evaluate the feasibility of a hydrogen rental-

car business based at the Orlando International Airport to aid

this transition from fleets to consumers. The rental-car business

model has most of the logistical advantages of a fleet approach

to introducing AFVs, with the additional benefit of reaching the

consumer market. Orlando is the country’s No. 1 tourist desti-

nation, attracting millions of tourists from all over the United

States and the world. A hydrogen rental-car fleet based in

Orlando would attract worldwide attention and introduce

thousands of potential buyers to hydrogen vehicles in a fleet-

like situation. The hydrogen rental-cars would provide a base

level of guaranteed demand for the initial set of hydrogen

stations in and around Orlando. Orlando’s tourism industry is

uniquely well suited for a hydrogen rental-car business; in that

most of these tourists visit only a handful of local destinations.

Ogden et al. [10] eliminated rental-car fleets from their analysis

of fleet vehicle markets because rental-car fleets are not cen-

trally refueled, but in this article, we investigate the potential to

serve the majority of car renters in Orlando with just a small

number of well-placed hydrogen stations.

We initially proposed the idea of a hydrogen rental-car

business to the Florida Hydrogen Initiative (FHI) in Orlando in

July 2005. The FHI is a non-profit organization incorporated

under the laws of the State of Florida to move Florida to the

forefront of the nation’s hydrogen economy. The FHI uses its

resources to aid the development of a robust Florida-based

hydrogen industry, thereby establishing Florida as the

cornerstone of a southeastern hydrogen hub. The non-profit

corporation comprises public leaders, university researchers,

citizens and industry representatives.

At the time we proposed studying the hydrogen rental-car

business, it seemed that it would not become a realistic

possibility for many years to come. In the interim, worldwide

commercial and technological developments in the hydrogen

industry have hastened, perhaps spurred by rising oil prices

and growing concern about global warming. Then, in June

2007, Icelandic New Energy (INE), an organization promoting

hydrogen-powered transportation in Iceland, announced

plans to introduce a small fleet of hydrogen-powered rental-

cars [11]. The vehicles are H2-converted Toyota Prius models,

available through Hertz Car Rental in Iceland, and in November

2007, journalist Michael Fitzgerald ‘‘became the first person in

the world to rent a hydrogen car’’ [12]. Following this ground-

breaking effort by INE and Hertz, we feel that a similar but

larger operation in Orlando has the potential to introduce

hydrogen vehicles to visitors from all over the world.

Several articles have examined the challenges in tran-

sitioning from alt-fuel fleets to consumers. Shaheen et al. [13]

have recognized the potential for car sharing in one form or

another for promoting use of zero-emission vehicles. Farrell

et al. [14] concluded that the difficulty of transitioning from

fleets to consumers is such that hydrogen is best introduced

first into other transport modes, such as trucking, air and

waterdin which a small number of sophisticated firms hire

professional crews to operate a small number of large vehicles

on geographically restricted routes.

In this study, we take several approaches in assessing the

feasibility of rental cars as a way to transition from fleets to

consumers for light-duty vehicles. First, we conducted

a survey of 435 car renters in Orlando to understand their trip-

making patterns and assess their attitudes towards issues

affecting hydrogen rental cars. Second, we use these survey

results and other sources of information to analyze the

barriers to a hydrogen rental-car operation and propose some

practical solutions. Finally, we identify synergies that can

benefit a hydrogen rental-car business.

2. Recent developments in Orlandoand Florida

There are currently two hydrogen refueling stations in the

Orlando metropolitan area: the Boggy Creek Hydrogen Refu-

eling Station near the Orlando International Airport (OIA) and

a mobile refueling station at Progress Energy’s Jamestown

Operations Center in the northeastern suburban fringe of the

Orlando metropolitan area.

The Boggy Creek/OIA station is the result of a collaborative

project involving the State of Florida, Chevron Technology

Ventures, Ford Motor Company, and Progress Energy. Built

and operated by Chevron Technology Ventures, the Boggy

Creek station opened in May, 2007 and produces 100 kg of

hydrogen per day by natural gas reformation. Hydrogen is

stored at 7000 psi and dispensed at 5000 psi. Initially it will

refuel four hydrogen-powered airport shuttle buses (Ford V–

10, E–450). Four additional H2 shuttle buses will be in service

by 2008. Under the current plan, the Boggy Creek station is

scheduled for decommissioning in May 2010.

A refueling station at Progress Energy’s Jamestown Opera-

tion Center opened in September 2005 using a mobile refueling

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55314

unit, which was replaced by a fixed electrolysis station in late

2007. The capacity is 24 kg per day at 6600 psi. This test site is

part of a US Department of Energy Demonstration Project: Ford

and BP-Controlled Hydrogen Fleet and Infrastructure Demon-

stration and Validation Project. The station currently provides

power for six Ford Focus hydrogen fuel cell vehicles operated

by Progress Energy and the Florida Department of Environ-

mental Protection. Under the current plan, this station is

scheduled for decommissioning in September 2009.

In 2004, 27 companies and government agencies formed

the Florida Hydrogen Business Partnership with a mission

to ‘establish Florida as a center of hydrogen technology

commercialization for the Americas’ [15]. The Partnership tar-

geted Orlando as the initial locus for hydrogen development,

though they backed off the initial goal of five stations by 2007.

The State of Florida aims to develop the nation’s first one-stop

permitting standard for hydrogen fueling infrastructure by

creating a single, uniform permitting standard and consistent

safety codes across all jurisdictions in Florida, and its Energy

Plan 2006 calls for sales and corporate income tax credits for

hydrogen vehicles and fueling infrastructure [16].

3. Survey of car renters

3.1. Survey methodology

Consumer attitudes will clearly play a pivotal role in any effort

to develop a hydrogen rental-car fleet at the Orlando Inter-

national Airport (OIA). To better understand what is needed to

develop a hydrogen rental-car option at OIA, we conducted

a personal intercept survey of 345 potential car renters at the

OIA terminal and 90 visitors to Orlando’s theme park attrac-

tions at International Drive. The airport surveys were con-

ducted in the OIA rental-car terminal between March and June

2006. The International Drive visitor surveys were conducted

in the shuttle bus waiting areas during August and September

2005. All survey work was conducted by a student research

assistant and supervised by faculty from Rollins College.

The survey instrument focused on each respondent’s

knowledge and awareness of hydrogen technology, reasons

for and against renting a hydrogen vehicle, willingness to pay

more to rent a hydrogen vehicle, willingness to drive out of

their way to refuel, intended destinations in the Central

Florida region and sociodemographic characteristics. All of

the survey questions were closed-ended and the majority of

questions were presented with a discrete set of response

categories organized around a numerical rating scale (see

Appendix 1). The time required for each respondent to

complete the survey ranged from 5 to 10 min and no incen-

tives were provided for participation.

The methodology of our survey was shaped by the

exploratory, inductive nature of our research questions,

focused primarily on consumer attitudes and awareness of

hydrogen technology. These questions include the following:

1) What are the primary destinations of car renters in Central

Florida?

2) What features are important to potential renters of

hydrogen vehicles?

3) Are people willing to pay more to rent a hydrogen car? If so,

how much?

4) How far out of the way are consumers willing to drive to

refuel a hydrogen vehicle?

Although the survey was not designed to test any specific

research hypotheses, it did provide valuable information on

consumer attitudes, demographic characteristics and knowl-

edge of hydrogen technology, which may provide a basis for

further analysis of differences between groups of potential

hydrogen car renters. Some limitations of our survey meth-

odology include the following:

1) Timing of survey: Our survey covered a 5-month period

during spring and late summer but did not cover the fall or

winter periods. While the spring surveys would likely have

captured some winter visitors, a survey conducted over

a 12-month period may have reflected a wider range of

consumer attitudes.

2) Response categories: The response categories for question 3

of the survey were organized around a numerical rating

scale rather than a Likert-scale (with discretely labeled

response categories). A Likert scale may have prompted

a wider range of responses.

3) Response rate: We did not keep track of how many people

declined to participate in the survey, although this number

is estimated to be very small.

3.2. Survey results

Our typical survey respondent was 43 years of age and female,

married, with two children and a college graduate (see

Table 1). The majority of respondents were employed in either

private industry/business or government/education, with an

annual household income considerably higher than the US

median household income of $46 K. The survey included

visitors from 14 different countries (most notably Canada and

Great Britain); however, the majority of survey respondents

(80%) were from the United States.

Within our group of survey respondents, there was

considerable variation in the general understanding of

hydrogen vehicle and fuel-cell technology. Despite the wide

variation in responses, a significant proportion of the

respondents possessed some knowledge of the technology

and a familiarity with how it works (Fig. 1). This moderate

level of knowledge of hydrogen technology may reflect recent

media coverage of alternative energy technologies. It may also

reflect the high level of educational attainment for our survey

respondents (73% are college graduates).

On the question of consumer willingness to pay more to

rent a hydrogen vehicle, the survey respondents were evenly

divided, with 49% responding positively that they would be

willing to pay more money to rent a hydrogen vehicle. Of the

total number of visitors surveyed, 21% indicated that they were

willing to pay an additional $5–$10 per day to rent a hydrogen

car (see Fig. 2). Roughly 6% of all respondents were willing to

pay an additional $15–$20 per day to rent a hydrogen vehicle.

The willingness of car renters to consider a hydrogen

vehicle is clearly influenced by a number of different factors.

Table 1 – Socioeconomic characteristics of surveyrespondents (n [ 435)

Average age 43

Gender Female: 59% Male: 41%

Marital status Married: 80% Single: 20%

Number of

children

None: 14% One: 13% Two: 41%

Three: 20% Four: 7% Five or more: 5%

Education Less than high

school: 0%

High school

graduate: 27%

College graduate: 53%

Post-graduate

degree: 20%

Occupation Private industry/

business: 39%

Student: 3%

Government/

education: 2 1%

Military: 1%

Retired: 6% Other: 30%

Household income Under $30K: 6% $30K-49K: 15%

$50K–99K: 43% Over $100K: 36%

Country of origin United States: 80% United Kingdom: 10%

Canada: 6% Other 11 countries: 4%

0

10

20

30

40

50

60

Percen

tag

e o

f

resp

on

den

ts

No $0-$5 $5-$10 $10-$15 $15-$20

Dollars per day

Would you be willing to pay more to rent a hydrogen vehicle,

and if so, how much?

Fig. 2 – Consumer willingness to pay more to rent

a hydrogen vehicle.

Table 2 – Average rating of features influencing consumerdecision to rent a hydrogen vehicle

Feature All respondents Those willingto pay more1

Map of refueling

stations in Florida

and Orlando

4.3 4.4

Ability to exchange

for a gasoline

car at no extra cost

4.0 3.9

Priority parking

at theme parks

3.9 3.9

Using a pollution-free vehicle 4.4 4.7

Fuel cost

per mile comparable

to gasoline

4.4 4.4

Opportunity to test

drive first

3.8 3.9

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5 5315

To better understand these considerations in the consumer

decision-making process, we asked our survey respondents to

rate the importance of a number of features in convincing

them to rent a hydrogen vehicle (see Table 2). These features

reflect a wide range of potential renter concerns including

vehicle performance, cost, convenience, customer support

and vehicle safety. Survey respondents rated the importance

of each feature on a scale from 1 (not important) to 5 (very

important).

The most striking aspect of the results given in Table 2 is

that respondents rated all features as important. Features

considered most important included the driving range of the

vehicle, fuel cost per mile, availability of an on-call roadside

repair/refueling service and the opportunity to use a pollution-

free vehicle. Other important features were the availability of

vehicle insurance and a map of refueling stations in Florida and

Orlando. The responses to this question reflected an interest-

ing mix of practical concerns (e.g., vehicle performance) and

wider motivations (e.g., using a pollution-free technology)

surrounding the decision to rent a hydrogen vehicle.

0

10

20

30

40

Percen

tag

e o

f

resp

on

den

ts

Never heard ofit

Vagueawareness

Someknowledge

Clearunderstanding

Please rate your understanding of hydrogen vehicle

technology prior to completing this survey

Fig. 1 – Consumer understanding of hydrogen fuel-cell

technology.

A rental-car company would likely be most interested in

the responses of those customers who are willing to pay more

to rent a hydrogen vehicledtheir target market. Table 2 indi-

cates that the average rankings for this subset of target

customers are within 0.1 of the average for all customers, with

one major exception. Those willing to pay more ranked the

importance of using a pollution-free vehicle at 4.7 of 5,

Driving range

of vehicle

(miles between refuelings)

4.4 4.5

Vehicle performance

(acceleration, noise)

4.1 4.0

Opportunity to experience

a new technology

4.0 4.1

Availability of insurance 4.3 4.3

Full-service refueling

by a trained attendant

4.0 4.1

On-call, roadside

repair/refueling service

4.4 4.5

The survey question was ‘Rank the importance of the following

features in convincing you to rent a hydrogen car on a future trip to

Orlando, on a scale from 1 (not important) to 5 (very important)?’ The

features are listed here in the exact wording and order in which they

appeared on the survey.

1 Of the 435 respondents, 211 indicated they would be willing to pay

more to rent a hydrogen car.

Daytona

Beach

Miami-

Palm

Beach

Everglades

National

Park

AREAENLARGED

t

Port

Canaveral

Kennedy

Space

Center

AREAENLARGED

Tampa-

St. Petersburg

Sea

World

EPCOT

Magic

Kingdom

Universal

StudiosDowntown

Orlando

63

40

42

35

20

8

9

109

3 3

Freeway

35

Percent of respondentsidentifying thisdestination

Destination

OrlandoAirport

0 5 10 15 mi

0 5 10 15 km

0 25 50 75 100 mi

0 25 50 75 100 km

Fig. 3 – Destinations of 435 car renters surveyed in Orlando. ‘‘Other’’ theme parks (21%).

1 Note, we eliminated Miami and the Everglades from thisanalysis because they attracted less than 3% of renters and wouldrequire multiple hydrogen refueling stations to reach them.

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55316

compared with 4.4 for all customers and 4.2 for customers not

willing to pay more. This difference highlights the importance

of a green marketing campaign directed at these eco-conscious

consumers. (Note: the survey did not explain how hydrogen is

produced or whether any pollution is produced in the process.)

Perhaps most significant in our survey of car renters are

the questions centered on the intended destinations of

Orlando visitors and their willingness to drive out of their way

to refuel a hydrogen vehicle. The question on intended des-

tinationsd‘Which of the following destinations did you (or

will you) visit on your trip to Orlando’dprovided each

respondent with a list of 12 major destinations (Fig. 3). The

responses to this question provide a snapshot of where our

potential car renters are driving, and perhaps more impor-

tantly, where they are not driving (note: since most respon-

dents identified multiple destinations, summed percentage

values exceed 100%). As expected, the vast majority (82%) of

our respondents identified at least one of the major Orlando

theme park attractions as an intended destination. Somewhat

surprising were some of the low response rates for destina-

tions beyond the Orlando area such as Daytona Beach (7.8%)

and Tampa-St. Petersburg (9.0%).

The rapid drop off in popularity of destinations beyond the

Orlando theme parks immediately raised a number of follow-

up questions. What percentage of visitors to Orlando are

renting vehicles and driving beyond the Orlando area? What

specific set or ‘‘bundle’’ of destinations is typical for a car

renter at the Orlando International Airport? The answers to

these questions have important implications for the initial

planning and rollout of a hydrogen-refueling infrastructure in

Orlando. Given that the average length of stay for the 435

Orlando visitors surveyed in our study is 7.9 days, it is

important that the vehicle they are renting will get them to

their entire bundle of destinations for the week. If the rented

vehicle is hydrogen-powered, this bundle of destinations will

place a specific set of demands on the refueling infrastructure.

For example, a number of widely separated destinations will

require a very different refueling infrastructure than

a concentrated set of destinations in a confined geographic

area. In fact, even a single trip to a more distant destination

(e.g., Kennedy Space Center) during the course of an otherwise

geographically concentrated week of driving will require

a different set of stations to refuel that trip. The ability of the

refueling network to refuel trips to each and every intended

destination could be the pivotal factor in the consumer’s

decision of whether to rent a hydrogen-fueled vehicle.

To examine this issue, we analyzed bundles of visitor

destinations both within and outside of the Orlando metro-

politan area using an Excel spreadsheet containing a matrix of

0s and 1s for 435 car renters by 10 possible destinations.1 Since

most of the theme parks are clustered in southwest Orlando,

we first grouped these tourist attractions as one and found

that 51.3% of renters were only going to the airport and one or

more theme parks. We then looked for the next single desti-

nation at which to place a station that would add the most

renters able to reach all of their destinations above and

beyond the renters served by the existing airport station and

the proposed theme-parks station. Adding a hydrogen station

in downtown Orlando would increase the potential pool of car

renters to almost 64%. Only 36% of respondents identified

destinations beyond the Orlando area. We continued this

analysis, computing at each step which additional destination

would add the most additional renters able to reach all of their

destinations. We display the results in a tradeoff curve

Tradeoff Between Number of Stations

and Percentage of Renters Who Could Reach All of their Intended Destinations

51.3%1. Airport

2. theme park

63.7%1. Airport

2. theme park3. downtown Orlando

69.4%1. Airport

2. theme park3. down town Orlando

4. Tampa

75.4%1. Airport

2. theme park3. down town Orlando

4. Tampa5. Kennedy Space Ctr. 81.6%

1. Airport2. theme park

3. downtown Orlando4. Tampa

5. Kennedy Space Ctr.6. Daytona

0

10

20

30

40

50

60

70

80

90

100

1 7Number of Stations

Percen

tag

e o

f R

en

ter D

estin

atio

n B

un

dles A

ble to

be R

efu

eled

65432

Fig. 4 – Tradeoff between number of hydrogen stations and percent of car renters.

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5 5317

showing how many stations are needed on the x-axis and the

percentage of renters whose trip bundles could be served by

that group of stations on the y-axis (Fig. 4).

These findings have important implications for the

potential feasibility of a hydrogen-powered fleet of rental

vehicles based at OIA. Given that the majority of airport car

renters are concentrating their trips in the area of the theme

parks and downtown Orlando, the initial refueling network

required to support this fleet of cars would be modest. In fact,

our survey data suggest that just three refueling stations (an

existing station at OIA and two new stations in downtown

Orlando and near Disney World) could cover the refueling

needs of roughly 64% of the car renters originating from OIA.

This set of three stations represents the bending point on

the tradeoff curve in Fig. 4. Beyond three stations, there is

a somewhat reduced though still steady growth in the number

of additional renters whose destinations could be reached.

Thus, we recommend two stations in addition to the existing

airport station as the most cost-effective way to get the

hydrogen rental-car business started.

Stations at Tampa, Cape Kennedy and Daytona could be

added later to serve 82% of renters’ bundles of destinations.2

2 Although they are on the same island, we did not counttourists going to Port Canaveral (mainly for cruise ships) as beingserved by a station at Kennedy Space Center (KSC), because wepropose the KSC station to be within the NASA facility. Only 3 ofthe 46 renters going to Port Canaveral were also going to KSC. Ifwe were to assume that Port Canaveral tourists would be willingto go to Kennedy Space Center to refuel, four stations at theairport, theme parks, downtown, and Kennedy would be able toserve 79% of car renters, and all six stations would be able toserve 92%.

These out-of-town destinations are all less than 100 miles

away from Orlando and, with the additional stations, the one-

way trips could easily be made with any conceivable hydrogen

vehicle. It is important to point out that these results are

place-specific for Orlando and therefore not generalizable:

destinations of car renters are not likely to be as concentrated

in other US rental markets, requiring more than three stations

to enable the majority of car renters to reach all their intended

destinations.

We also asked potential car renters how far out of their way

they would be willing to drive for a hydrogen refueling station

without considering it a hassle. The survey results for this

question also support the idea that three initial stations in the

Orlando area will likely cover the majority of airport car

rentals. More than 80% of our survey respondents expressed

a willingness to drive more than one mile (1.7 km) out of their

way for a hydrogen refueling station, and 46% were willing to

drive more than three miles (5 km) (Fig. 5). We believe that the

Orlando car renters we surveyed are willing to divert from

their optimal driving paths to this extent because they would

only have to bear the inconvenience at most once or twice

because of their limited length of stay and extent of travel.

Most hydrogen cars are projected to have driving ranges of at

least 200 miles, and 1–2 refuelings would allow customers to

travel at least 400–600 miles, which seems more than enough

for an average of 7.9 days of driving to and from the airport,

downtown destinations, theme parks, and nearby hotels,

restaurants and attractions (see map in Fig. 3).

For all survey questions, we analyzed the results statisti-

cally to determine if the demographic characteristics of the

renter significantly influenced their responses. We used

analysis of variance (ANOVA) to search for relationships

0

10

20

30

40

Percen

tag

e o

f

Resp

on

den

ts

Up to 1 mile Up to 3 miles Up to 5 miles More than 5miles

Distance

How far out of your way would you be willing to drive

for a hydrogen refueling station, without considering it

a hassle?

Fig. 5 – Willingness of car renters to go out of their way for

a hydrogen refueling station.

Table 4 – Statistically significant response differences bygender

Malemean

Femalemean

F-testvalue

Significance

Ability to exchange 3.68 4.10 12.98 0.000

Cost per mile 4.21 4.52 11.73 0.001

Vehicle performance 3.85 4.22 14.69 0.000

Road service 4.18 4.53 14.50 0.000

How often

do you rent cars

1.57 1.37 6.96 0.009

How far to station 2.52 2.33 4.28 0.039

Understanding

of technology

2.72 2.13 37.92 0.000

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55318

between the opinion variables and gender, marital status,

education and income. We found that people with higher

education levels are significantly less concerned about refu-

eling hydrogen vehicles themselves and less concerned about

the rental price (Table 3). Women were significantly more

concerned with roadside on-call service, the ability to

exchange a hydrogen vehicle for a conventional one, the cost

per mile and the vehicle performance (Table 4). Males, on the

other hand, claimed a better understanding of hydrogen

technology and were more concerned with having to detour to

a station. Renters with higher incomes claimed a better

understanding of hydrogen technology, and not surprisingly,

rented cars more frequently (Table 5). Finally, respondents

who have some knowledge of how hydrogen technology

works placed significantly less importance on three issues:

insurance availability, refueling by a trained attendant and

roadside service (Table 6). Also, those with more knowledge

were significantly more willing to pay more to rent a hydrogen

car. These findings could be useful for targeting and designing

advertising and education for hydrogen rental cars towards

specific demographic groups.

The survey results outlined in this section have important

implications for the initial hydrogen vehicle-refueling infra-

structure in Florida. Most analysts agree that a major imped-

iment to the introduction of hydrogen fuel-cell technology is

the initial cost and individual consumer risk associated with

early adoption. Car renters may provide an ideal market for

Table 3 – Statistically significant response differences byeducational attainment category

Highschoolmean

Collegemean

Gradschoolmean

F-testvalue

Significance

Pollution free 4.52 4.41 4.19 3.20 0.042

Refueling by

trained agent

4.28 3.88 3.99 4.69 0.010

How often

do you rent cars

1.28 1.45 1.60 4.18 0.016

Lower price 1.10 1.02 1.00 5.13 0.007

the first wave of hydrogen vehicles in Central Florida. A fleet of

hydrogen-fueled rental cars based at OIA could introduce

consumers to hydrogen technology in a setting where their

individual costs would be short-term and shared by the

rental-car agencies. Since most car-rental trips are concen-

trated in the area of the theme parks and metro Orlando, the

logistical costs associated with consumer support for this

rental-car fleet would be quite reasonable.

4. Barriers and solutions from the corporatepoint of view

This section examines potential barriers to a successful

hydrogen rental car business from the supplier’s point of view

and assesses some solutions to overcoming those barriers. To

identify the barriers and solutions, we studied various reports

on the hydrogen economy [1,2,3,7,4,5,13,14] and conducted

open-ended interviews of several key informants. We had

a prepared list of questions but allowed the interviewees

substantial latitude. In particular, we interviewed a franchise

manager of a rental-car company, EV Rentals, which currently

rents hybrid vehicles in partnership with Fox Rent A Car, and

previously had experience renting electric and compressed

natural gas (CNG) vehicles. We also interviewed individuals

associated with the Hertz hydrogen rental-car initiative in

Iceland, which has been in operation for 6 months, In addi-

tion, we considered the survey results analyzed in the

previous section in developing this list of corporate barriers

and solutions.

Since there are no academic studies of hydrogen rental-car

barriers, it is useful to start with barriers to hydrogen cars

generally. Melendez [4] reviewed almost 40 papers on alter-

native fuels to identify the major barriers that are critical to

successful deployment of AFVs. Many of thesedsuch as the

availability of stations, fuel, and vehicles, as well as cost,

maintenance, perceived vehicle performance, consumer

awareness and competitiondare obvious concerns for rental-

cars as well. Economic and institutional barriers mentioned in

the literaturedsuch as low oil prices, lack of incentives, and

inconsistent codes, standards, public policies and leadership

messagesdare beyond the scope of this study. There are,

however, additional barriers peculiar to the rental-car market,

such as the resale of used vehicles. Some of these barriers may

Table 5 – Statistically significant response differences by household income category

Less than $30K $30K�$49K $50K�$99K $100Kþ F-test value Significance

Understanding of technology 2.00 2.22 2.30 2.61 4.89 0.002

How often

do you rent cars

1.00 1.41 1.32 1.65 7.31 0.000

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5 5319

be partially offset by the distinct advantages enjoyed by the

rental-car business model.

4.1. Target market

Knowing the target market is an important starting point for

any new business idea. In the case of renting hydrogen cars,

a number of market segments stand out as potential renters of

hydrogen vehicles:

1. Green Consumers and Companies: Ecologically minded

consumers have shown a willingness to pay extra for

sustainable goods and services such as alternative-fuel

vehicles, organic foods, non-toxic pest control and renew-

able electricity. In addition, EV Rentals has found that green

companies, and companies that are marketing to other

green companies, are eager to rent alt-fuel and hybrid cars.

EV Rentals has found the status value of renting alt-fuel

cars to be important to green consumers and companies.

Therefore, the car must be easily identifiable by others as

a sustainable form of transportationdand not just by

a small decal. According to the Roper Green Gauge, an

annual market-segmentation study based on face-to-face

interviews of a representative sample of 2000 adults, the

size of the green consumer market turned a corner between

2005 and 2007 [17,18]. ‘True-Blue Greens,’ the most envi-

ronmentally active segment of the population, held steady

at 11% from 1995–2005 but increased to 30% in 2007.

‘Greenback Greens,’ who are willing to pay premiums for

green products, increased from 7% in 1995 to 8% in 2005 to

10% in 2007.

During the first 6 months of Hertz’s hydrogen car-rentals in

Iceland, the customers have largely been journalists and

corporate clients. Corporate clients have included companies

with Hertz contracts and companies trying to be environ-

mentally conscious. One notable example is aluminum

companies that have attracted some public opposition to their

Table 6 – Statistically significant response differences by self-r

[1] Neverheardof it

[2] Vagueawareness

[kn

of ho

Insurance 4.45 4.42

Refueling by trained

agent

4.12 4.15

Roadside service 4.52 4.51

Willingness to pay more 1.55 1.61

Include only significant variables.

smelters developed to utilize Iceland’s renewable energy

resources to produce aluminum for export. Tourists and

consumers have yet to become a substantial market for the

Icelandic operation, mainly because the rental rate is more

expensive than for cars of similar size and there is only one

hydrogen station in the country. Most tourists visiting Rey-

kjavik want to travel the famous Golden Circle scenic route to

see geysers, glaciers and waterfalls; however, this 300 km

route is well beyond the 160 km driving range of the converted

hydrogen Priuses. Most H2 rentals have been reserved in

advance. The lack of tourist and walk-up rentals may also be

influenced by the fact that the Priuses are not four-wheel

driveda high consumer demand feature during the

November–May period that the cars have been available to

date.

2. Technophiles: Hydrogen cars capture the imagination of

technophiles and car buffs, who may be very interested in

trying out a hydrogen vehicle, regardless of whether it is

powered by a fuel cell or an internal combustion engine

(ICE).

3. Alt-fuel Privileges: Some demand for AFVs derives from the

privileges associated with them. Use of HOV lanes by

single-occupant vehicles and free parking in downtown

areas such as Los Angeles are major incentives in cities

offering those incentives. Hydrogen rental cars in Reykjavik

get 90 min of free parking downtown. Priority parking for

hydrogen cars at Disney theme parks or Kennedy Space

Center may also provide an important incentive to rent

a hydrogen car, especially if the priority parking includes

refueling by a trained technician while they visit the

attraction.

In addition, EV Rentals has found it important to also rent

conventional vehicles. Conventional vehicles provide a base

revenue stream in case demand for alt-fuel cars fluctuates.

Offering conventional vehicles would provide the agents with

the opportunity to offer upgrades to hydrogen vehicles by

ated understanding of hydrogen technology category

3] Someowledgew it works

[4] Clearunderstandingof how it works

F-testvalue

Significance

4.01 4.32 3.92 0.004

3.80 4.11 3.83 0.005

4.22 4.38 2.91 0.022

1.43 1.46 2.74 0.029

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55320

asking leading questions such as: ‘‘Are you planning to stay

within the Orlando area?’’ or ‘‘Are you planning to visit Ken-

nedy Space Center?’’

4.2. Customer concerns

While the idea of trying a hydrogen vehicle on a short-term

rental basis may be attractive to some of the market segments

discussed above, various concerns may deter potential

customers from doing so. Some primary concerns, and solu-

tions to overcome these, are listed below:

1. Safety: Given that most renters in our survey were middle-

aged families with two children and not very knowledge-

able about hydrogen, a key concern is likely to be safety.

Hydrogen is safer in many ways than gasoline, in that it

disperses readily and is non-toxic, but it leaks more easily,

burns almost invisibly, and can cause explosions if it leaks

into an enclosed area such as a garage [19]. Other studies

have shown that hydrogen vehicles can be as safe or

potentially safer than gasoline vehicles if engineered with

the properties of hydrogen in mind [20,21], but the more

important point may be that the risks are different and

unfamiliar and perceptions of the general public may be

inaccurate [22]. It is essential that the vehicles have passed

international safety certifications involving crash testing,

and that this information be publicized.

For car rentals, educational videos comparing the risks of

hydrogen to gasoline may help overcome these fears. Videos

could be shown on the Internet and at the rental counter. A

brief instructional session may be necessary before customers

depart with their rented vehicles, and safety brochures should

also be placed in each car (as in Iceland) and on the rental

counter and Internet.

2. Breakdowns: Advertising can emphasize the lower main-

tenance requirements of clean-burning hydrogen fuel, but

renters are still likely to be concerned about breakdowns

and the lack of knowledge and parts at auto-repair shops. In

our survey, on-call roadside repair service was rated as

highest in importance to customers with a 4.4 average

(of 5), and free replacement by a gasoline vehicle was

slightly less important at 4.0. It is common practice in the

industry to quickly deliver a replacement rental car to

a customer experiencing problems. In Iceland, Hertz offers

customers the choice of replacing the car with another

hydrogen car, if available, or a conventional vehicle. In the

Orlando area, substitution of another hydrogen vehicle

might be possible, but outside of Orlando, quick replace-

ment by a conventional vehicle from another closer rental-

car location is probably the most viable solution. To make

this goal achievable, it is important that the managers of

the rental business have experience working with other

companies at the Orlando Airport, because rental compa-

nies often help each other deliver replacement cars quickly.

In Iceland, Hertz’s converted ICE-hybrid vehicles have had

some difficulty in cold weather. They have managed the

problem by driving the vehicles daily to keep the engines

warm and by installing engine heaters.

3. Refueling and driving range: In the survey, the driving

range of vehicles tied for the highest average importance

with 4.4, while a map of refueling stations averaged 4.3, and

refueling by a trained mechanic averaged 4.0. Driving range

and refueling station availability are inextricably linked

because a low driving range necessitates more frequent

refueling. A somewhat separate concern is the lack of

experience in how to refuel a hydrogen car. Offering

customers the ability to return their car empty, without the

usual penalty of high refueling fees, as Hertz does in Ice-

land, helps to remove this concern. In that case, renters

who visit only the theme parks and/or the convention

center may not require even a single refueling. Also, if

refueling by trained personnel could be completed while

parking at Kennedy Space Center, Disney theme parks, or

downtown Orlando, this would provide a major incentive.

Ability to ‘‘practice’’ refueling when renting the car might

also allay such concerns. Hertz provides an information

pamphlet in their hydrogen rental cars in Iceland, and

reports no problems with customers refueling their own

vehicles.

4. Insurance: Insurance companies are unfamiliar with

hydrogen vehicles, and the replacement cost of early

vehicles will be high. Customers will undoubtedly be

uncertain of whether their regular policy will cover damage

to a hydrogen vehicle. The rental-car business must work

out the insurance issues for the customer, and government

subsidy of supplemental insurance may be necessary in the

early going. In Iceland, Hertz renters have not been

required to take special insurance because the vehicles

have passed international certification.

It is important to point out that in each of these four areas

of concern, the fleet-like characteristics of consumer rental

cars offers a solution that makes rental cars an easier sell to

consumers than purchasing hydrogen vehicles.

4.3. Refueling availability

A customer’s ability to rent a hydrogen vehicle hinges on the

availability of refueling stations to serve not just one or

several of the destinations they are planning to visit, but all of

their intended destinations. Based on our survey results,

a rental-car business at OIA could be launched with as few as

three hydrogen stations in the following locations:

1. Orlando international airport (already exists);

2. Near the cluster of theme parks southwest of Orlando;

3. Downtown Orlando.

As mentioned earlier, this group of stations could serve

roughly 64% of car renters (Fig. 4). Additional stations in

Tampa, Kennedy Space Center and Daytona Beach would

raise this to around 82% and could be reached in less than

100 miles from a station near the Orlando theme parks.

Because of the built-in demand that rental cars would

generate, our FHI Final Report proposed that the State of

Florida prioritize stations at the airport, the theme parks, and

downtown Orlando as the first tier of hydrogen stations for an

eventual statewide network [23]. We proposed a Tampa

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station to be included in the second tier, along with stations in

a Miami-Palm Beach cluster and in Gainesville and Talla-

hassee. We proposed the Kennedy Space Center station for

the third tier because it would most likely be located too far

from I–95 to be used by consumers who purchase hydrogen

vehicles. Daytona Beach was proposed for the fourth tier

along with other stations completing the Miami-to-Jackson-

ville I–95 corridors.

4.4. Purchase of hydrogen cars

The supply of hydrogen cars is the biggest barrier to overcome.

A number of manufacturers, however, have plans to begin

production in the 2010–2015 time period [24–26], and US

DOE scenarios project hundreds to thousands of production

FCVs by 2012 [27]. The cost of vehicles will dictate when the

rental-car business becomes feasible. Options are discussed

below:

1. FCVs: Because of the high cost of manufacturing fuel-

cell prototypes, automakers have carefully controlled

these valuable investments to protect them for continued

use and to gain as much information as possible from

each user. Until very recently, automakers have been

highly circumspect about placing FCVs in the hands of

untrained users in uncontrolled situations. One manu-

facturer suggested us that even the first generation of

production-scale vehicles would be too valuable to use as

rental cars.

2. ICEs: ICE prototypes are less expensive but still costly,

whether hydrogen-only or dual-fuel. It is conceivable,

however, that production runs of ICEs will reach the needed

scale and cost to supply a subsidized rental business before

FCVs.

3. Converted cars: Hertz of Iceland rents three Toyota Prius

hybrids converted to burn hydrogen by Quantum Tech-

nologies of Irvine, California. The cost of each vehicle,

including the original hybrid car, was in the $120 000–$150

000 range (personal communication). The cost was subsi-

dized under Icelandic New Energy’s SMART-H2 program.

Funding was provided by the project partners and VistOrka,

a holding company created to bring together the major

private and public stakeholders interested in developing

a hydrogen economy in Iceland. While a number of small

businesses will convert conventional ICEs to burn hydrogen

for under $10 000, such cars cannot be used as commercial

rental cars, which require international certification of

crash testing.

While purchase costs are the most daunting hurdle facing

hydrogen rental-cars, the barrier is not insurmountable. The

free mass media publicity to the manufacturer that supplies

the vehicles could easily be worth millions of dollars in

advertising and cross-marketing with theme-park operators.

Word of mouth from satisfied rental customers could promote

sales throughout the world. In addition, it may be possible to

begin with converted ICEs, then transition to production ICEs

and FCVs. It may also be advisable to start with just a few

hydrogen vehicles added to a company’s fleet of other alt-fuel

or hybrid vehicles.

4.5. Resale of used vehicles

The car rental industry is a low-margin business. A key

element of financial success is the ability to resell used vehi-

cles, which are typically retired from rental service at around

30 000 miles. Cars that are in high demand may be kept in

service longer, whereas cars in low demand may need to be

sold sooner. Conventional vehicles are typically sold back

to manufacturers for sale through their dealers or sold to

wholesalers. No such used car market, however, is likely to

exist for retired hydrogen rental cars. EV Rentals had to make

their own markets for used electric and CNG cars. Drawing on

their experience, here are some solutions to the resale

problem:

1. Environmental groups: Used hydrogen vehicles could be

marketed to members of large national environmental

groups such as the Sierra Club, National Wildlife Society,

Audubon Society, Resources for the Future, Nature

Conservancy, etc.

2. Respiratory health groups: Marketing to members of the

American Lung Association or the Asthma and Allergy

Foundation of America could reach large numbers of

potential buyers.

3. Car Clubs: Various hobbyist groups are interested in alter-

native-fuel cars.

4. State vehicle fleets. The State of Florida might be able to

indirectly subsidize the rental-car business by promising to

purchase used hydrogen vehicles for some of their fleets.

This would keep the cars in use in state and promote

continued use of Florida’s refueling infrastructure, and

perhaps provide a reasonably priced supply of zero emis-

sion vehicles (ZEVs) to the state government.

5. Past rental customers. A database of customers who rented

hydrogen cars could be maintained, and used cars could be

offered to them first. They will have already ‘‘test-driven’’

the cars.

A potential unrecognized benefit of developing this busi-

ness in Orlando is that, with most rental cars never leaving the

Orlando area, hydrogen rental cars might not reach the 30

000 mile threshold for resale for 3–5 years, thus spreading the

cost of cars over a longer time span.

4.6. Operator characteristics

Though financially challenged, a small rental-car company

such as EV Rentals might be best suited to run the first

hydrogen rental-car business, if purchasing the cars were

affordable or subsidized. A lean, flexible and motivated

company may be necessary to work around the barriers that

are likely to arise. Such companies need to offer unique

products or services that the large rental-car companies do

not in order to find a niche market for themselves.

Large companies, on the other hand, with their higher

revenues, national advertising and ties with automakers

would have more resources to throw behind such a venture

should they choose to do so. Hertz’s decision to launch

a hydrogen rental-car joint venture in Iceland certainly indi-

cates their willingness to innovate in this direction. Hertz will

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55322

add 3400 Prius hybrids by the end of 2008, while Avis added

1000 Toyota Prius hybrid cars to their fleets in California;

Portland, Oregon; Seattle, Washington; and Washington, D.C.

in June 2007 [28].

5. Synergies

A hydrogen rental-car business based in Orlando could benefit

from tremendous synergies with other regional hydrogen

initiatives, government agencies, and Central Florida’s

tourism economy. These synergies could play a key role in

stimulating demand for hydrogen vehicles and infrastructure

while significantly increasing the visibility of Florida’s

hydrogen economy. A number of these opportunities stand

out as particularly significant:

1. Added demand for stations: A fleet of hydrogen rental-cars

would provide an additional source of hydrogen demand

for the initial hydrogen refueling infrastructure in Central

Florida, especially for those stations located near the theme

parks, the airport, downtown Orlando, Tampa, Kennedy

Space Center and Daytona Beach.

2. Kennedy Space Center: Many people associate hydrogen

energy with the space program. Cross-marketing with

NASA could give a tremendous boost to a fledgling rental-

car business. Priority parking at Kennedy Space Center

(KSC) and a highly visible refueling station, perhaps

offering tours, would help promote the rental-car business.

Officials at Kennedy have informed us that they bleed off

approximately 1 000 gallons of hydrogen from their LH2

storage tanks each day. Although there are no immediate

plans to capture this hydrogen for transportation use, they

have indicated their intention to do a feasibility study of

a hydrogen station located outside the visitor complex. In

addition, there is already a CNG station at KSC.

3. Airport station: A station built and operated by Chevron

Technology Ventures opened near OIA in May 2007 for

refueling airport shuttle buses. Though located off-site on

nearby Boggy Creek Road, rental-car employees could drive

the cars there for refueling. Advertising on the high-visi-

bility hydrogen-powered shuttle buses could help promote

the new business.

4. Disney: Disney theme parks have always had a futuristic

appeal (e.g., EPCOT). Disney might be willing to locate

a refueling station at one of their parks. In doing so, they

could convert their parking lot tramsdsimilar to airport

baggage tramsdto run on hydrogen. A highly visible station

site that also offered priority parking to hydrogen vehicles

would aid in cross-promotion. Alternatively, a station could

be centrally located near the agglomeration of theme parks

and convenient to Interstate-4.

5. Climate: Current FCV prototypes face operational and

durability issues in cold weather. The warm Orlando

climate is well suited to the large-scale use of an early

generation of FCVs.

6. Used rental cars: As mentioned earlier, state vehicle fleets

could agree to purchase used rental cars at a discount to

the original cost to meet state ZEV goals. In turn, this

guaranteed resale market could remove a significant

uncertainty from the rental-car business.

7. Florida Hydrogen Business Partnership This alliance of 27

companies and government agencies might find the

hydrogen rental-car business in Orlando highly appealing

as a way to put Florida and Orlando at the forefront of the

commercialization of hydrogen.

8. The global hydrogen economy: The renters who completed

our survey came from all over the United States and several

foreign countries, renting their vehicles for an average of

7.9 days. Some 40–50 individuals a year could rent each

hydrogen car, exposing thousands of potential customers

to a positive, low-risk experience that could generate word-

of-mouth and broad political support for hydrogen power.

6. Conclusions

This article introduces and analyzes a new strategy for

creating a base level of demand for an initial hydrogen-refu-

eling infrastructure that may be uniquely well suited for the

Orlando regiondnamely a hydrogen rental-car fleet based at

the Orlando International Airport. To examine the potential

barriers to using hydrogen as a fuel source for the rental-car

market and propose some possible solutions, we analyze the

idea from the consumer point of view by conducting

a personal intercept survey of 435 potential car renters. We

also examine the idea from the corporate point of view by

investigating barriers to a rental-car business and some

possible solutions to those barriers. Finally, we outline

a number of synergistic opportunities between the hydrogen

car rental business and NASA, Disney, energy and automobile

companies, and other regional hydrogen initiatives. While

identifying the unique opportunity for a hydrogen rental-car

business at Orlando is one of our key conclusions, it is

important to highlight that many of the factors making this

feasible may not be generalizable to other rental car markets.

Generating a base level of demand for hydrogen is a key to

overcoming the chicken-and-egg quandary outlined in the

introduction. The risk in rolling out the refueling infrastruc-

ture first, to short-circuit the chicken-and-egg problem, is that

the stations may initially be underutilized. While government

vehicle fleets will undoubtedly provide some underlying

demand for the initial set of stations, the transition from

government and industry fleets to consumer vehicles may

stall without a strategy to get consumers into hydrogen

vehicles. A hydrogen rental-car fleet has the potential to

overcome this obstacle, especially one based in Orlando, the

No. 1 tourist destination in the United States. Although Ogden

et al. [10] did not consider rental-car fleets to be a viable initial

market because rental-car fleets are not centrally refueled, our

results here indicate that in the Orlando area, a rental-car fleet

could be largely refueled with a few well-placed stations. Our

survey results suggest that just three refueling stations (the

existing station at OIA plus new stations near Disney World

and downtown Orlando) could cover the refueling needs of

about 64% of car renters originating from OIA. Additional

stations at Tampa, Kennedy Space Center and Daytona Beach

could increase that to 82%. The clustering of tourist

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 5 5323

destinations and mild climate make Orlando the ideal location

for a hydrogen rental-car business. Note, however, that these

results are place-specific for Orlando and therefore not gener-

alizable: destinations of car renters are not likely to be as

concentrated in most other rental markets.

Orlando attracts millions of tourists each year from all over

the United States and the world. Furthermore, Orlando has

a reputation of being on the cutting edge, with its innovative

theme parks, the planned town of Celebration, and the nearby

Kennedy Space Center. Visitors and Florida residents alike

could be introduced to hydrogen-powered vehicles in Orlando

with no long-term commitment on their part. Their first

experience with hydrogen could be a positive one because of

the worry-free availability of centralized purchasing, main-

tenance, refueling, insurance and replacement in case of

breakdowns. In this sense, the rental car business combines

all of the centralized advantages of a fleet operation with

outreach to consumers, multiplied many times over because

each car can be rented 40–50 times a year. Benefits would be

felt locally, nationally and worldwide, as renters could

become hydrogen advocates in their home regions and would

be more likely to purchase hydrogen vehicles. Florida would

benefit by developing a base level of demand for its infra-

structure, as well as hydrogen expertise and a reputation for

being on the cutting edge of hydrogen deployment.

From the rental-car company’s point of view, the cost of

purchasing hydrogen vehicles for a rental fleet represents the

most challenging barrier to a feasible rental-car business, but

Hertz, Toyota and Icelandic New Energy have recently shown

a willingness to overcome this barrier. Starting off with

hybrids converted to burn hydrogen instead of gasoline may

enable the business to begin in the early 2010s or as soon as

refueling stations can be built. The publicity generated by the

rental business, as well as the opportunity for consumers to

experience hydrogen cars in a low-risk setting, may be an

adequate incentive for automakers to subsidize cars to the

Appendix 1

Initials _______ Date/Day/ Time _______/ _______/_______

Florida Hydrogen InitiativRollins College/Florida Atlantic Unive

US Dept. of E

This survey will help us understand what is needed to developInternational Airport. Hydrogen, the most common and lightenatural gas. Hydrogen cars either use an internal combustionelectricity for a quiet but powerful electric motor. The only emrental-cars would be refueled by trained professionals at a lim

Please circle the appropriate items or fill in the blanks. Pleaseby checking or filling in a blank.

1. Which of the following destinations did (will) you visit on

[1] Disney World [2] Universal Studios [3[5] Other theme park [6] Downtown Orlando [7[9] Tampa-St. Petersburg [10] Miami-Palm Beach [1

2. How long was your stay in the Orlando area? _____ days

rental business. Most other hurdlesdsuch as resale of used

vehicles, maintenance and targeting potential marketsd

should be easier to overcome.

Given the recent announcement of a small trial rental-car

operation in Iceland, and accelerated plans for producing

hydrogen vehicles by major automobile manufacturers,

planning for the hydrogen rental-car business and associated

refueling infrastructure could begin now. Assuming that

major automobile manufacturers move beyond producing

prototypes and begin small production runs of hydrogen

vehicles for consumers, a hydrogen rental-car pilot project in

the 2010–2020 timeframe would place Florida at the forefront

of the hydrogen industry.

Acknowledgements

We thank the Florida Hydrogen Initiative (FHI Agreement No.

2005-01) and the US Department of Energy (Grant Award No.

DE-FC36-04G014225) for financial support of this project. We

especially wish to thank Steve Adams, Ed Levine and Pam

Portwood for their enthusiastic support of our work and for

serving as Executive Directors of FHI, and Florida

Congressman Dave Weldon for spearheading creation of FHI.

Marissa Williams, who recently graduated from Rollins

College, did a great job interviewing car renters at the Orlando

airport and compiling the data. Finally, we would like to thank

the following individuals for the information and insights

they shared: Jon Bjorn Skulason of Icelandic New Energy;

Hreinn Sigmarsson and Margret Steinthorsdottir of Hertz in

Reykjavik, Iceland; John Masiello of Progress Energy in

Orlando; Herman Everett of NASA; Ray Hobbs of Arizona

Public Service; Gene Nemanich, former president of the

National Hydrogen Association; Jeff Pink, CEO of EV Rentals;

and especially Bob Kelley of EV Rentals’ Phoenix office.

Location ______________

e Car Rental Study rsity/Arizona State University/ nergy

a hydrogen rental-car option for the Orlando st element in the universe, is produced from water or

engine to burn hydrogen or a fuel cell to generate ission from either process is water vapor. Hydrogen

ited number of convenient locations.

write any answer that cannot be adequately expressed

your trip to Orlando?

] Sea World [4] EPCOT ] Kennedy Space Ctr. [8] Daytona Beach 1] Everglades [12] Port Canaveral (cruises)

6. Would you be willing to pay more money to rent a hydrogen vehicle? [1] Yes [2] No

If yes, how many more dollars per day? [1] $0-$5 [2] $5-$10 [3] $10-$15 [4] $15-$20 If no, would you be willing to rent a hydrogen car at a lower price? [1] Yes [2] No

7. Please rate your understanding of hydrogen vehicle and fuel-cell technology prior to completing this survey: [1] Never heard of it [2] Vague awareness [3] Some knowledge of how it works [4] Clear understanding of how it works

8. Please tell us a little about yourself:

Age: [1] 20-29 [2] 30-39 [3] 40-49 [5] 50-59 [6] 60-69 [7] 70 and above

Education: [1] less than high school [2] high school [3] college graduate [4] post-graduate degree

Marital Status: [1] Single [2] Married

Number of children: [0] [1] [2] [3] [4] [5] [6 and above]

Occupation: [1] student [2] private industry/business [3] military [4] government/education [5] retired [6] other

Origin: (What state or country do you consider home?) _________________________

Household income: [1] under $30K [2] $30K-49K [3] $50K-99K [4] over $100K

Thank you very much for your cooperation.

3. Rank the importance of the following features in convincing you to rent a hydrogen car on a future trip to Orlando, on a scale from 1 (not important) to 5 (very important)?

Scale is: 1 (not important) to 5 (very important) a. Map of refueling stations in Florida and Orlando [1] [2] [3] [4] [5] b. Able to exchange for a gasoline car at no extra cost [1] [2] [3] [4] [5] c. Priority parking at theme parks [1] [2] [3] [4] [5] d. Using a pollution-free vehicle [1] [2] [3] [4] [5] e. Fuel cost per mile comparable to gasoline [1] [2] [3] [4] [5] f. Opportunity to test-drive first [1] [2] [3] [4] [5] g. Driving range of vehicle (miles between refuelings) [1] [2] [3] [4] [5] h. Vehicle performance (acceleration, noise) [1] [2] [3] [4] [5] i. Opportunity to experience a new technology [1] [2] [3] [4] [5] j. Availability of insurance [1] [2] [3] [4] [5] k. Full-service refueling by a trained attendant [1] [2] [3] [4] [5] l. On-call, roadside repair/refueling service [1] [2] [3] [4] [5]

4. How often do you rent a car? [1] once a year [2] every few months [3] about once a month [4] more than once a month

5. How far out of your way would you be willing to drive for a hydrogen refueling station, without you considering it a hassle? [1] up to 1 mile [2] up to 3 miles [3] up to 5 miles [4] more than 5 miles

i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 3 3 ( 2 0 0 8 ) 5 3 1 2 – 5 3 2 55324

r e f e r e n c e s

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