Indeed. As noted above, reporter Brad Lemly simply brushes over some major issues, such as the fact that Hydrogen is simply a storage medium, and must be generated.
Even more damning is this little gem from Lovins: Imagine, he says, a high-tech, computer-dependent operation that typically might fork over $1 million annually to keep standby generators humming to ensure constant power. Far better, says Lovins, for that plant to install an on-site methane reformer and a fuel cell.
This has two big problems.
First, he's assuming that these standby diesels are kept running. They're not: an UPS generally consists of a big enough battery/capacitor to maintain power supplies until the diesels can be brought up.
But if we posit that he's correct, it's even worse for his case. Running diesel generators to create hydrogen results in less useable energy than the diesel fuel would have provided in the first place! Rather than leasing hydro-cars to the employees, it'd be more efficient to give them diesel powered cars.
If all of Lovins' reasoning is this sound....
Diesel power bump!
My VW TDI averages ~50mpg mixed cycle, including a lot of city driving, high speed (75+mph) highway driving, and copious air-conditioner use. It starts on the coldest New England winter morning even without the benefit of a garage to cover it. No smoke, no smell and it isn't a snail.
Today's breed of diesel engines are generations removed from the stinkpots of the early 80's, and what is just over the horizon is even more impressive. The Germans have full size (Big Audi, Big BMW) sedans running the next generation of diesel power that get 40+ miles to the gallon delivering plenty of horsepower.
Solar isn't the only power source to benefit from the rapid expansion of available computing power and reduced costs of semiconducters. As sensors and control systems are improved all sorts of systems will be improved in a way that will lead to a more efficient use of energy without a corressponding decrease in lifestyle.