Power to Hydrogen and Hydrogen to X within the FCH JU programme. Dionisis Tsimis Project Officer

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1 Power to Hydrogen and Hydrogen to X within the FCH JU programme Dionisis Tsimis Project Officer EERA - ONSITE, Rome, 22 September 2017

2 Contents of presentation FCH JU Objectives and energy storage Energy storage projects overview Early Business Cases for Power-to- Hydrogen Guarantees of Origin for Green Hydrogen Conclusions

3 FCH 2 JU: Strong Public-Private Partnership with a focused objective Industry-led Public-Private Partnership (PPP) Fuel Cells & Hydrogen Joint Undertaking (FCH2 JU) Industry Grouping About 105 members ~ 50% SME Research Grouping About 65 members To implement an optimal research and innovation programme to bring FCH technologies to the point of market readiness by 2020 The Joint Undertaking is managed by a Governing Board composed of representatives of all three partners and lead by Industry. Legal basis: Council Regulation: 559/2014 of 6 May 2014 (H2020) 3

4 The Hydrogen economy

5 FCH 2 JU: Objectives for a green economy

6 204 projects supported for 737 M Similar leverage of private funding: 782 M ENERGY 117 projects Hydrogen production and distribution Hydrogen storage for renewable energy integration Fuel cells for power & combined heat & power generation 360 M, 49% 337 M, 46% 0 39 M TRANSPORT 53 projects Road vehicles Non-road vehicles and machinery Refuelling infrastructure Maritime, rail and aviation applications Cross-cutting, 34 projects (e.g. standards, safety, education, consumer awareness, )

7 Strong support for green H2 Financial Contribution Partners 60 M FCH JU 118 M ELECTROLYSERS AT THE CORE OF GREEN H 2 PROD.: SUPPORT COST REDUCTION FOR ALL TECHNOLOGIES RENEWABLE FUELS FOR DIVERSIFYING GREEN HYDROGEN PRODUCTION CONCENTRATED SOLAR AND PHOTOELECTROCHEMICAL ROUTES: FROM LAB TO FIELD

8 FCH 1&2 JU Support to electrolyser projects (M ) 69 M

9 Electrolysis in AWP & MAWP AWP out of 69 proposals on elys Game changer water elys: 10 Game changer HT elys: 3 Reversible SOE: 3 Flexible elys inside wind park: 2 Large elys for bulk renewable H2: 5 FC-based ES solutions: 4 Ever larger electrolyser demos (LT & HT) Affordable and reliable electrolysers for distributed & bulk green H2 production WHY?

10 H2: Connecting Power, Gas and Transport Source: Hydrogenics

11 Electrrolyser Size (MW) Faster innovation from the FCH JU: from 150kW to 10MW in Energy Storage Funding/kW Industry acknowledges the potential of Hydrogen to the greening of industrial products through increased penetration of renewables CALL , ,00 20MW in call , , , ,00 0, MW Funding/kW Expon. (Funding/kW) Transport, Steel industry, Refineries, Chemical industry 100MW PtH announced in Normandie to inject H2 in gasgrid

12 HRS in FCH JU projects HRS in FCH JU projects of Transport pillar CARS BUSES MHV kw elys ~8 MW total capacity ~5 MEuro FCH JU support 1 6 ONSITE DELIVERED 1 1 HRS use on-site SMR 2 6 HRS use by-product 12

13 Leading the world in Solid Oxide Electrolysis projects Project: GrInHy Green Industrial Hydrogen via Reversible High-Temp Electrolysis Salzigitter, Germany MEuro 150kW Solid Oxide Electrolyser- displace 10% of current consumption of 4MNm3 of H2 per year used in the annealing process presently H2 is provided by tube trailers Can operate in reverse mode as fuel cell running on NG

14 Early Business Cases Study By 2025, the European market for P2H is estimated at a cumulative 2.8 GW, representing a market value of 4.2 b Published on 23 rd June 2017 in Brussels, also available at FCH JU website. Visit

15 Study on Early Business Cases for Power to Hydrogen Key message: There are bankable business cases for PtoH in Europe already today By 2025, the European market for PtoH is estimated at a cumulative 2.8 GW, representing a market value of 4.2B and 400 ktons H2 per year. Bankability can be achieved by complementing hydrogen sales with electricity grid flexibility services Combining PtoH for mobility/industry applications and gas grid injection is more cost-effective than stand-alone injection Gas grid injection is a risk mitigation instrument until H2 demand picks up PtoH is a practical and system-beneficial way to value excess of RES but requires a long-term view on grid fees, taxes and levies to enable bankability

16 Project Certifhy: Guarantees of origin for green Hydrogen Developing consensus on a definition for Premium Hydrogen, including a definition for Green Hydrogen and (non-renewable) Low-carbon Hydrogen. Detailed proposal for the 1 st EU-wide Guarantee of Origin (GO) scheme Roadmap for implementation of the first GO scheme for Premium Hydrogen * Best Available Technology = Natural gas steam methane reforming >95% of H2 merchant market ** cfr RED reduction requirement for biofuels in

17 Conclusions and outlook FCH JU has already invested 69M in electrolyser projects and will continue its support for this pathway of green hydrogen production. First demonstration projects seeing a strong appetite from H2 users. The goal is to continue research to further reduce costs and increase reliability in order to further differentiate viable business cases. Guarantees of origin will prove invaluable for providing an added value to green hydrogen and for the formation of policies that support it. The revision of the Renewable Energy Directive is a great opportunity for the creation of favourable policies for green H2.

18 FCH-JU took an initiative to engage more stakeholders MOU: 74 PARTICIPANTS ACCOUNTING FOR: MEMORANDUM OF UNDERSTANDING FROM 20 COUNTRIES: 18 FROM EU 2 FROM EFTA Opportunity to participate in a large study: - Defines business cases for Hydrogen & Fuel Cell based products - Put Cities & Regions in direct contact with the Industry - Help to find best financing schemes At no cost to the Cities & Regions (other than their own time and travel costs) >110 MILLION CITIZENS (>21%) >3.7 TRILLION EUROS (>23% GDP) *POP and GDP of EU28 + Iceland and Norway Signing ceremony 23rd Nov

19 COMING UP. Join the FCH for the 10 th year edition of the STAKEHOLDER FORUM Stakeholder Forum: 22 November 2017 Steigenberger Wiltcher's, Brussels Program Review Days: 23 and 24 November 2017 Steigenberger Wiltcher's Hotel, Brussels

20 Thank you for your FCH JU Further info : FCH2 JU : HYDROGEN EUROPE : Hydrogen Europe Research : 20

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22 Hydrogen in the Direct Reduction process H2Future Austria MEuro 12 MEuro FCH JU funding 6MW PEM Electrolyser to produce H2 that will displace coke oven gas in steel production, providing grid services. Long term aim: H2-based steel making (direct iron ore reduction process in shaft furnace) Demo4grid Austria MEuro 3 MEuro FCH JU funding 4MW Alkaline Electrolyser to produce H2 that will be used to displace NG in food industry, providing grid services. Aim: Green food Demo projects: 2016 Call

23 Hydrogen in the annealing process Project: Hybalance MEuro, 8 MEuro FCH JU funding 1MW PEM electrolyser serving the merchant market of Denmark and providing grid services Demo projects: 2014 Call

24 2014 Energy Storage Study: Main findings

25 2014 Energy Storage Study: Main findings

26 What is Premium Hydrogen? Example 1: 100% CertifHy Green Hydrogen Example 2: 60% CertifHy Green Hydrogen Electricity from wind is both renewable and low on GHG intensity. 26