Using wind energy to create hydrogen could become a viable way of generating power at remote locations. The Wind2H2 project in Boulder, Colorado broke ground this month and will put the theory of combining intermittent renewable energy with flexible fuel storage to the test.

Aside from the economics of competing with fossil fuels, wind (and solar) energy are limited because their power generation capacity is intermittent and not entirely predictable. However, using wind to electrolyze hydrogen that can be used later as needed can provide a constant source of power.

The $2 million test project is backed by the National Renewable Energy Lab (NREL) and Xcel Energy, and uses technology from Hydrogen Engine Center. Converting wind energy to electricity to electrolyze hydrogen, which is later used to generate electricity, involves two steps of energy efficiency. But, if you need power in a remote area where bringing in a fuel by truck or installing long transmission lines are the only alternatives, some inefficiency can be tolerated.

While building a hydrogen economy as a partial replacement to the existing infrastructure is a tough financial argument to make, remote power generation is a different story. Outposts for the military, parks service or Fire stations could constantly accumulate hydrogen for fuel and sufficient electricity to power lights or a heating system.

The research at the facility, which is expected to be completed by 2008, could indicate if this is a viable scenario.