Servco Pacific Inc.

Fueling the Future: The first H2 Station in Hawaii

Author

Justin Li

Justin Li

School

Loyola Marymount University

Loyola Marymount University

Professor

Jeff Thies

Jeff Thies

Global Goals

7. Affordable and Clean Energy 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities

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Summary

In July 2018, Servco Pacific Inc. launched Hawaii's first publicly accessible hydrogen fueling station near their headquarters in Mapunapuna, Oahu. The hydrogen station is an alternative to traditional fossil fuel infrastructure making hydrogen fuel cell vehicles now viable on the island. By creating sustainable fueling infrastructure for vehicles, Servco, is actively making advancing the creation of sustainable cities and communities. 

Innovation

Servco Pacific Inc. made an investment to promote the potential of hydrogen fuel cell technology. They developed an on-site hydrogen station featuring an electrolysis system for hydrogen generation and storage. The system was developed in partnership with Toyota, which also introduced the Mirai, a hydrogen fuel cell vehicle. 

Policymakers hope that Hawaii will achieve 100% renewable energy by 2045. Since General Motors developed the first hydrogen vehicle in 1966, companies like Toyota, Honda, and Hyundai have brought hydrogen-powered models to the commercial market.

Servco has a commitment to innovation and sustainable practices. These innovations move us closer to offering affordable and clean energy for vehicles in public settings, aligning with the United Nations' Sustainable Development Goals (SDGs).

Fueling the Future: The first H2 Station in Hawaii

Inspiration

"Hydrogen solves the pain points of EV's." According to Ken, Toyota argues that hydrogen-powered cars are better renewable substitutes compared to EVs. Consequently, there was a marketing effort to prove their safety and dispel the stigma of "driving a hydrogen bomb."

Typical EVs require significant resources. Ken stated that "one EV vehicle takes the resources equivalent to 16 plug-in vehicles and 85 hybrid vehicles." Additionally, the energy required to power EVs adds another layer to their ecological footprint. Ken also posed the question, "What is the most abundant resource on the planet? Hydrogen." Furthermore, consumers can expect EVs to take 8-10 hours to charge, whereas hydrogen fuel cell vehicles take less than 5 minutes for a 300-mile charge.

In terms of safety, hydrogen is incredibly reactive and depletes the tank within seconds in the event of an emergency. Ken explains, "unlike conventional gas, which burns over an extended period, hydrogen combusts quickly and dissipates almost immediately, reducing the risk of prolonged fires or explosions." To emphasize the durability of hydrogen fuel tanks, Toyota showcased a bulletproof hydrogen gas tank made with carbon-weave-insulated carbon, highlighting its indestructibility even under high pressure.

Overall impact

Ken remarked, "Nobody is willing to make the investment," highlighting the challenges hydrogen technology faces despite its potential. However, hydrogen is beginning to find a foothold in the commercial sector, with trucking solutions emerging as a promising application. To encourage adoption, Servco offers free hydrogen at the station for all Mirai consumers, demonstrating their commitment to advancing this technology. In Hawaii, one of only two states where the Mirai is sold (the other being California), Toyota has been at the forefront of promoting hydrogen-powered vehicles. Before Servco's investment, the state had fuel cell stations for the Navy at Pearl Harbor, though the 99% pure hydrogen. These stations are restricted to military use and unavailable to the public.

Servco, once operated a mobile hydrogen station, but has since advanced to more permanent solutions. The current hydrogen station produces everything locally on-site, exemplifying a sustainable model for hydrogen fuel production. Toyota’s dedication to supporting emerging technologies and fostering local hydrogen infrastructure underscores its vision for a cleaner, more efficient future in both commercial and consumer markets. Lastly, Servco successfully lobbied lawmakers in Hawaii to extend the same benefits granted to electric vehicles to the Toyota Mirai.

Business benefit

Ken said, "Guaranteed, there are no returns on investment." From a business and financial perspective, he added, "Financially it did not make sense to do it." The focus, however, was not on Servco or Toyota making a profit but rather on supporting Hawaii's goal of becoming energy independent. With its abundant solar power, Hawaii envisions converting that energy into hydrogen, aligning with long-term sustainability goals.

"Ultimately, what we have created is a proof of concept," Ken explained. This initiative serves as a pilot and a significant undertaking for Toyota. Despite the challenges, including the fact that selling each Mirai results in larger financial losses for the company, Ken likened the project to Amazon’s early years. He pointed out that Amazon was unprofitable for many years before evolving into the successful enterprise it is today, implying that Toyota’s investment in hydrogen is a long-term bet on transformative innovation.

Social and environmental benefit

Hydrogen at Servco's station is produced on-site through electrolysis. Electrolysis, is the process that splits water (H2O) into their base elements: hydrogen (H2) and oxygen (O2) using electricity. To not create a larger ecological footprint, the energy to fund this process comes from solar energy.

Unfortunately, there are not many vehicles on the market that support this type of energy. The Toyota Mirai is equipped with three tanks that store compressed hydrogen rather than liquid hydrogen. Liquid hydrogen requires extremely low temperatures to maintain its state, making storage more complex. In contrast, the Mirai uses compressed hydrogen at 700 bar of pressure, providing an efficient and practical solution for fueling. The H35 system demonstrates this capability effectively.

The Mirai’s fuel cell system is elegantly designed with no moving parts, relying on a simple chemical process. Hydrogen reacts with oxygen in the fuel cell, generating an electric current through this reaction. This process produces 5.4 kilowatts per liter, making it highly efficient. The fuel cell consists of multiple stacks, and as hydrogen passes through the membrane, an air pump and a hydrogen pump facilitate the reaction. The generated current is then sent to the power control unit. Additionally, the Mirai functions as a hybrid vehicle by incorporating a battery, providing enhanced performance and energy management.

Interview

Ken Hashimoto, Head of Sales & Product Training

Photo of interviewee

Business information

Servco Pacific Inc.

Servco Pacific Inc.

Honolulu, HI, US
Business Website: https://www.servco.com/
Year Founded: 1919
Number of Employees: 1001 to 5000
Servco Pacific Inc. is Hawaii's largest privately held companies headquartered in Honolulu, Hawaii. Servco started as an auto repair shop in a two-car garage in Waialua Town, North Shore of Oahu. Today, Servco has grown into a large business with different functions including: automotive distribution and retail, appliance distribution, and venture capital.