Workshop on Commercial - ready Hydrogen Refueling Stations - design and social acceptance - Draft. November 19, 2013

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1 Workshop on Commercial - ready Hydrogen Refueling Stations - design and social acceptance - Draft November 19, 2013 Hilton Sea Hark Hotel, Fukuoka, Japan

2 Workshop on Commercial - ready Hydrogen Refueling Stations - design and social acceptance - Background Ahead of the expected FCEV commercialization in 2015 and beyond, major contributing countries like the US, Germany, Japan and others have started the early deployment of commercial-ready hydrogen refueling stations (HRS) while continuing to conduct RD&D activities on hydrogen applications and utilization. From early demonstration projects on FCEV and HRS in leading countries and regions, the basic concept of commercial-ready HRS has been established. The next phase is the initial deployment of HRS to support a broader commercial-level deployment. Although technical barriers and issues associated with the development of HRS are well-addressed and being overcome, the lack of social acceptance on the use of hydrogen among civil society is becoming a common issue, with general concerns on the potential risks of hydrogen use and characteristics, such as high-pressure storage and flammability levels. Therefore, the social acceptance of HRS has become an immediate priority for the larger-deployment of hydrogen and FC technologies. Workshop Purpose The workshop aimed at providing information-sharing opportunities among HRS system suppliers and operators on the basic concept of commercial-ready HRS, in terms of function, safety, cost, and other related issues. It also aimed at promoting a common understanding and sharing best practices on social acceptance toward civil society. Expected outputs included: - Information exchange on expected functions and design criteria for HRS, and major suppliers model and technology incidents and general safety - Hydrogen-related incidents and safety-assurance technologies / practices - Best practices on the improvement of social acceptance 1

3 1 Welcome remarks (1) Remarks from organizer: Ikurou HIROZANE, Director-General, Kyushu Bureau of Economy, Trade and Industry, Ministry of Economy, Trade and Industry, Japan - It is my great pleasure to host IPHE workshop on commercial - ready hydrogen refueling Stations in Fukuoka, Japan. As you may know Fukuoka is the leading region in Japan promoting stationary FCs as well as FCVs. - With so many distinguished guests and speakers from the world and from Japan, this workshop will provide wonderful opportunity for discussion and I believe this workshop will be great success. (2) Remarks from IPHE Dr. Michio HASHIMOTO, IPHE SC chair - IPHE was established in 2003 as a unique international forum to promote FC / hydrogen technologies. Currently, Japan is the Chair and the US and Germany are the Vice-Chairs of IPHE Steering Committee. These countries are leading in FCV commercialization, and other IPHE member countries are also promoting FC / hydrogen technologies in their countries and regions. - For the promotion of FC / hydrogen technologies, social acceptance becomes common issues for IPHE members, and we hope this workshop will provide information sharing opportunities for stakeholders in HRS. 2 Keynote speech: Current policy on HRS / FCV Session Chair: Dr. Klaus Bonhoff, NOW (1) Hideya SAKYU, Deputy Director, Hydrogen and Fuel Cell Promotion office, Energy Conservation and Renewable Energy Department, Agency for Natural Resource and Energy, Ministry of Economy, Trade and Industry, Japan - Immediate barriers for building the stations are mostly in the regulatory requirements specific to Japan (Figure 1). For instance, while building a station could cost $2M-$3M in Europe and in the US, they can cost as much as $5M in Japan due to the stringent 2

4 regulatory requirements. - Japan s Prime Minister, Shinzo Abe, recently mentioned the necessity of reviewing such regulations. - In regards to the R&D and commercialization of fuel cells, Japan has demonstrated continuous progress in the number of residential fuel cells deployed such as the Ene-Farm activities which include nearly 57,000 units installed as of October In addition, there are ongoing demonstration activities involving FC forklifts and FC buses in Japan. - The hydrogen production technologies and cost-reduction of hydrogen are key to the success of hydrogen deployment in Japan. Furthermore, it is understood that hydrogen-based electricity generation may further contribute to the expansion of hydrogen applications as well as cost reduction of hydrogen. Figure 1 Barriers for building hydrogen stations in Japan (2) Dr. Sunita Satyapal Director, Fuel Cell Technology Office, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy - FC shipment has constantly increased by over 48% in the world (MW-base) and by 62% in the US (system-base). An improvement in the cost and durability of fuel cells for transportation to meet the 2020 DOE target of $40/KW and the ultimate target of $30/KW. - To compete with conventional fuel, hydrogen cost should be around $2-4/kg. However, hydrogen from on-site generation may be expensive and component durability, such as compressors, must be addressed. For the meantime, delivery of hydrogen to the station 3

5 can be an early option. - FCEVs have demonstrated up to 59% efficiency with a demonstrated average driving range of 254 miles and 75,000 miles of durability. DOE has also demonstrated the world-first tri-generation FC system in California, with electricity output of 250kW and hydrogen production of 100 kg per day. - In average, hydrogen station installation can take three years from the award, and some even up to five years. - Other key areas of interest for the early deployment of a hydrogen infrastructure are safety as well as regulations and codes and standards. The US has developed an online database of hydrogen-related incidents and near-misses. Other online tools include a first responders and code officials training courses as well as in-classroom training with almost 2500 first responders trained to date (Figure 2). - With DOE s support funding from the American Recovery and Reinvestment Act of 2009, 1600 FC units, mainly for backup power and material handling applications, have been introduced with an additional 9000 units planned without any DOE funding. - Hurricane Sandy in 2012 caused one of the largest blackouts in the US affecting nearly 8.5 mil households. FC units were used to supply electricity during that period. - To promote FCEVs and hydrogen station deployment throughout the US, a public private partnership, H2USA, has been created. Currently in the US, there are 50 hydrogen stations with only around 10 stations being publically accessible. The California Government has committed $100 million through 2020 with $20 mil /year to expand the hydrogen infrastructure up to 100 stations. - The DOE has been funded at about $100M/year to work on the production, storage, manufacturing, and delivery of hydrogen among other key elements. Awards for FY14 will be made soon. Figure 2 Online training for first responders 4

6 (3) Marisa Atienza Morales, Acting Head Johan Blondelle, Unit Energy Conversion and Distribution Systems, European Commission - In the EU, supply security is important as well as the need to reduce CO2 emissions and dependency on oil. However, national and regional markets, fragmentation of the internal market for alternative fuels as well as borders lines, inhibit mobility of alternative fuels across Europe. - A Clean Power for Transport Package (CPT) was adopted in January The CPT includes a directive on deployment of alternative fuels infrastructure including targets to build the necessary refueling points as well as standards to ensure interoperability and common safety regulations across the EU. CPT contributes to the competitive, resource efficient and sustainable transport system in EU with long-term fuel strategy to also build an additional 77 stations with an investment of 123 million Euro (Figure 3). Figure 3 CPT Targets refuelling points - Under the FCH JU, European public-private partnership, 49 FC buses, 37 FCEVs and 95 FC small carts have been introduced as well as 13 new hydrogen stations were installed. Hydrogen supply cost has been reduced to 10 Euro / kg or less. Also, with this partnership, there is a variety of key activities such as HyQ to focus on fuel quality, HyTransfer to optimize refueling process, and HyAc to understand the need and accuracy of metering hydrogen. The CHIC project introduced 26 buses in 5 cities in Europe and has helped reduce the cost of delivered hydrogen. Another effort, Hylift, consists of 30 FC forklifts to demonstrate the use of hydrogen and its fueling infrastructure. - The deployment effort in the Germany known as H2Mobility, includes 6 major industrial companies and plans to build 400 stations by 2023 with 350M Euro investment. Similar partnerships have been planned in Scandinavian countries, the UK, France, and Switzerland (Figure 4). - Social acceptance is the key to allowing for a smooth hydrogen infrastructure deployment, and the EU funded HyTrust, a project to consolidate safety information 5

7 and expert knowledge. Other RCS activities include HyComp for on onboard hydrogen tank design, HyTransfer for optimizing refueling process, and HyIndoor to develop guidelines on indoor refueling. The EC has also developed the European Hydrogen Incidents and Accident Database, HIAD, with 300 incident reports. Figure 4 European Countries activities on hydrogen station deployment 6

8 3 Session 1: Learning experience and social acceptance issues from HRS demonstration project Session Chair: Dr. Monterey Gardiner, DOE (1) Will James Charles, DOE EERE Jennifer Hamilton, California Fuel Cell Partnership DOE - One important area for DOE is RCS for hydrogen fuel cell technologies. DOE has developed hydrogen material compatibility information and implemented a quantitative risk assessment approach for the development of hydrogen codes and standards. It has also implemented an RCS template to aid the timely deployment of hydrogen stations in California. - For hydrogen education, DOE has conducted online and face-to-face trainings for first responders and regulatory officers. Also, DOE developed an IPhone App, H2 Safety, which includes safety guidance, best practices and a checklist (Figure 5). - DOE has supported and worked closely within the IPHE RCS working group to harmonize global RCS issues and supported the International Conference on Hydrogen Safety (ICHS) in September Other activities include DOE s webinar series on the following topics: * Polymer & Composites (Oct, 2012) * Metallic Materials Compatibility (Apr, 2013) * Material Characterization of Storage Vessels for Fuel Cell Forklifts (Aug, 2012) * Hydrogen Refueling Protocols (Feb, 2013) Figure 5 Online tools and iphone/ipad tool for hydrogen safety information 7

9 CaFCP - The California Fuel Cell Partnership, CaFCP, developed a California roadmap in 2012 on hydrogen station deployment in the state. The roadmap indicates that the state aims to deploy 68 stations by 2015 and a cumulative of 100 stations by 2020 (Figure 6). The California Governor, Mr. Jerry Brown, promoted FCEVs with the ZEV Action Plan in 2013 and signing of Assembly Bill 8, Alternative fuel and vehicle technologies: funding programs, which ensures installation of 100 stations in the state. - CaFCP has emphasized the improvement of public acceptance and providing training for first responders as well as regulators. Figure 6 California s hydrogen station deployment plan (2) Dr. Klaus Bonhoff, Managing Director, Nationale Organisation Wasserstoff- und Brennstoffzellentechnologie (NOW) - The HyTrust project aims to highlight learning experience and social acceptance issues from HRS demonstration projects in Germany. The focus of the project was to look at global market and local acceptance. It includes media analysis, interviews, focus group as well as weekend citizens conference. - The project analyzed 107 position statements from policy makers and other influential people between 1998 and Media coverage includes both positive and negative coverage (Figure 7). And as conclusion, although hydrogen is handled in the industrial sector, there s skepticism of public deployment. Figure 7 Media coverage analysis 8

10 - The general findings include that hydrogen vehicles can be well-accepted in the country and media opinion on hydrogen is rather positive. Many people think that hydrogen should be generated from renewables. One issue is that people s willingness-to-pay for FCEVs is smaller than the expected FCEV introductory price at the early deployment stage (Figure 8). Figure 8 Key results from HyTrust project 9

11 (3) Tetsufumi Ikeda, General Manager, FCV / Infrastructure Demonstration Project Department The Research Association of Hydrogen Supply/Utilization Technology (HySUT) - HySUT is an R&D organization with 119 Japanese companies and associations, including automakers and hydrogen suppliers. Currently HySUT is demonstrating 70MPa refueling technologies, cost-reduction of stations, operational safety measures as well as total system validation. - About 50 FCEVs are part of the effort and 17 public fueling stations in Japan--3 constructed last year and 2 more by next year for a total of 19 stations. The overall aim in Japan is to build a total of 1000 stations by 2025, starting with 100 by The initial deployment of stations in Japan is targeted at 4 key metropolitan areas. - In 2010 the Japanese government established a Basic Energy Plan which is currently being reviewed. The Plan clearly indicates that hydrogen is an important part of the national energy portfolio. - Initially, hydrogen is made from fossil fuels, but renewable energy can be the source for hydrogen in the future. - Hydrogen stations can be installed in city areas. The required safety measures include sensors, interlock, fire extinguisher, and water sprinklers (Figure 9). - Other challenges include licensing of hydrogen stations which could take up to 2 years for approval. It is also important to downsize the station foot print requirements as well as the cost which, due to Japanese regulations, can be significantly higher than in other countries. Figure 9 Safety measures at hydrogen stations in Japan 10

12 4 Session 2-1: Commercial - ready Hydrogen Refueling Stations Systems Session Chair: Tetsufumi Ikeda, HySUT (1) Seiji Maeda, Group manager, Research & Development Planning Department, Research & Development Division, JX Nippon Oil & Energy Corporation - In Jan 2011, 13 Japanese companies, including hydrogen infrastructure providers, hydrogen suppliers and automakers, made joint announcement on the efforts to commercialize FCEVs in 2015 and to build 100 hydrogen stations. - JX Energy s core-competence on hydrogen supply chain is gasoline supply business model from refinery to gasoline stations. - JX opened two new hydrogen stations in Ebina (Tokyo area) and Kaminokura (Nagoya area) in FY Both stations comply with SAE J2601. For the cost reduction of hydrogen, JX has demonstrated 45 MPa composite hydrogen trailers. To promote public acceptance, JX has organized seminars on hydrogen / FCEV for families (Figure 10). - Issues for hydrogen station include the reduction of footprint and the promotion of regulation review for cost-reduction. Figure 10 Public Acceptance: Seminars on hydrogen / FCEV for families (2) Pierre-Etienne Franc, Vice President Advanced Business &Technologies, Air Liquide Chair of the Governing Board of the FCH JU - Hydrogen is a 2 billion Euro business for Air Liquid but some challenges remain. For instance, the cost of hydrogen must be at 10 Euro per kg or better to be competitive. 11

13 The cost of building a 150 kg per day capacity station is 1 to 1.5M Euro compared to Japan, which can be 3 mil Euro (Figure 11). Not only are the stations costly but, the expected return on investment can be as long as 10 years (Figure 12). - Another challenge is the position taken by suppliers of the follower advantage that by waiting for other companies to build the hydrogen station network before building their own, can help reduce the needed initial investment. - Air Liquid also recognizes that the regulatory and social acceptance is an issue for deployment. Existing norms are not adapted to non-industrial uses such as safety requirements and equipment definition. - Another challenge for suppliers is the standardization, or lack of it, across different countries. For instance, there are significant differences in the materials that can be used in Japan versus Europe and the cost is significantly higher. - Another issue is that you need to go to competitive markets with competitive costs. From a consumer perspective, you need to define the benefits clearly because there seems to be no immediate additional value and pay more. - It is also important to recognize that the issues are less about cash or technology and willingness but more about the fear of long-term failure, lack of converging interests between stakeholders Figure 11 Hydrogen Station Cost Difference and regulations. Stakeholders need deconsolidation (shared control with strong public support and presence) to pass the valley of death, a clear deployment plan with financing and operations as well as clear exit conditions for interested parties after failure risk is over to be divested when market has taken off. Figure 12 Example of Cash-Flow of hydrogen stations 12

14 5 Session 2-2: Commercial - ready Hydrogen Refueling Stations Systems Session Chair: Eiji Ohira, NEDO (1) Norikazu Yamaguchi, Manager, Hydrogen Project Department, Gases Engineering Division, Development & Engineering, Taiyo Nippon Sanso - Taiyo Nippon Sanso developed an all-in-one hydrogen station system, Hydro Shuttle, in Aug 2013 (Figure 13). For cost-reduction, the system is prefabricated at the factory, and delivery time is nine months. This system can provide back-to-back refueling for up to three FCEVs. - For safety, the system adapts new sleeve couplers and a reduced number of joints. The system cost is almost half of a current hydrogen station, and further cost-reductions can be possible. The company is also targeting the overseas market. Figure 13 Taiyo Nippon Sanso s Hydro Shuttle (2) Ravi Subramanian, Asia Technology and Business Development Manager Hydrogen Energy Systems, Air Products and Chemicals, inc. - APCI s SmartFuel concept units only cost $1.5M USD for a liquid hydrogen system and $1M USD for a compressed hydrogen system (Figure 14). For compressed hydrogen, APCI has adapted a unique pre-cooling system which provides high efficient cooling of hydrogen. - APCI emphasizes safety assurance of hydrogen stations by implementing preventive measures and lessons learned from previous incidents. Online monitoring and customer reports are also adapted. The company wishes to use the knowledge for public education. 13

15 - APCI s dispensers are certified in the US market. Figure 14 APCI s SmartFuel (3) Hirotani Ryuichi, Manager, Hydrogen Energy Department, Iwatani Corporation - Iwatani is shifting hydrogen supply from compressed gas to liquid hydrogen. - If European package hydrogen station system is modified for the Japanese market, the cost and footprint will be easily doubled (Figure 15). - For the cost-reduction of hydrogen station systems, it is necessary to review current regulations, including safety margin of system design and clearance distances, as well as to adapt composite vessel at stations and to allow underground setting of components. - The company plans to install around 20 stations by Figure 15 Differences between European standards and Japanese standards 14

16 6 Summary (1) Participants: 150 participants from 14 countries (2) Major findings: - Toward the cost reduction of HRS, it is important to expand the hydrogen market and hydrogen demand, in close cooperation with local governments and industries. New applications to expand the hydrogen demand include FC buses, FC forklifts and hydrogen-based power generations. - With the common concern and common interests for HRS, IPHE countries can work together to promote safer and more reliable HRS. Such collaborations will create Win-Win for IPHE countries. - Improvement of social acceptance is the common issue among leading countries, and education and outreach, such as training for first responders and permitting officials, are important. Community outreach and public events, hands-on experiences are also useful tools to promote social acceptance for hydrogen energy and HRS. Figure15 Workshop on Commercial - Ready Hydrogen Refueling Stations 15