Update on Fuel Cells and Hydrogen in the Economy: International Drivers, Trends, and Developments for Meetings with the Government of Canada Tim Karlsson Executive Director International Partnership for Hydrogen and Fuel Cells in the Economy June 2017
IPHE Purpose and Mission An inter-governmental partnership providing a policy oriented forum to share information and ideas to accelerate the cost-effective transition to clean energy, transportation, and industrial sectors through using fuel cell and hydrogen (FCHs). Member partners are doing R&D, demos, deployments, and/or are implementing policies to increase the use of FCHs in the economy. Australia Austria Brazil Canada China France Germany Iceland India Italy Japan Korea Netherlands Norway Russian Federation South Africa United Kingdom United States European Commission 2
Drivers: Based on National Circumstances 1. Energy Security Security of supply and ability to switch 2. Energy Efficiency Effective use of variable generation at grid and community scale Moving from centralized to distributed generation 3. Economic Growth New products and supply chains Taxpayers return on R&D and D investments 4. Environmental Performance Clean Air, Climate Change, Noise 3
Drivers: Necessary Conditions to Act 1. Clear Deployment Plan: Government & Industry Vision on the roll-out of products. 2. Perceived Competitive Advantage Over Incumbent Technology More comfortable, easier to use, quieter, smoother, simpler, cheaper. 3. Defined Financial Framework Trajectory to robust market conditions. 4. Economic Impact Jobs, Taxes, Trade, Supply Chain Development. 5. Environment and Energy Efficiency & Security Impact Improve Local Air Quality, GHG Reductions, Noise Abatement. Complements new clean energy generation, enables ease of energy management, facilitate clean systems integration. 4
Trends: Technology and Systems 1. Role of Demonstrations Market demos are crucial in developing systems & supply chains 2. Early Commercial Deployments Sustained global R&D and Demos have led to technology maturity and early market deployment 3. Cost Reductions Need more work across the innovation spectrum 4. Market Focus Need internationally consistent market framework structures 5. Energy & Transport System Integration and Beyond Recognition of longer-term use of hydrogen as an integrator an energy vector 5
System Integration, the IEA Roadmap Both electricity and hydrogen recognized as clean energy vectors Jurisdictions view hydrogen as a systems integrator Significant technical research and economic analysis is necessary to understand the efficient and effective integration of the systems and the business cases to make it happen. Vast promise, huge challenges IEA outlines critical steps to advance hydrogen and fuel cells. 30 June 2015... In a future energy system largely based on renewable energies, hydrogen could play a pivotal role by connecting different layers of infrastructure to link energy supply and demand. Hydrogen can enable new energy vectors used to supply transport, buildings and industry by bridging surplus renewable power into the energy demand sectors Source: Key Point: Energy system today and in the future IEA 6
Japan Hydrogen Society Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by Japan 7
Japan: Strategic Approach Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by Japan 8
Japan: Fuel Cell Electric Vehicles FCEV entered the Japanese Market in 2014 OEMs plan on a steep ramp-up on production significant Supply Chain development Government support available to purchase FCEVs 90 Hydrogen Refueling Stations (HRS) in place Government support for Capital and Operating Expenditures Initial focus is on Tokyo, Nagoya, Osaka, and Fukuoka regions Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by Japan 9
Germany Sector Coupling Work is underway analyzing the interdependency's of an integrated energy system and its key technologies Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by Germany 10
Germany Sector Coupling Analysis also underway on the current and needed regulations for an integrated energy system Project objectives: Develop an Integrated Energy Concept 2050 (IEC 2050) based on Renewable Electricity Develop essential features of an appropriate regulatory framework supporting the IEC 2050. 27th IPHE Steering Committee Meeting Hamburg, Germany, April 27-28, 2017 Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by Germany 11
Germany: Critical Role for Hydrogen Given climate change goals and fundamental shifts in energy systems, energy storage systems will be crucial with Hydrogen a fundamental component (along with Batteries and Heat) Source: 27 th IPHE Education and Outreach Event Meeting Hamburg, Germany - Germany Country Presentation Government committed to install 100 HRS by 2020 regardless of # of FCEVs H2 Mobility formed by industry to work on cost sharing deploying further HRS (Air Liquide, Daimler, Linde, OMV, Shell, Total) 12
Germany: NIP 10 Year Program Renewed Development & demonstration of windhydrogen systems Technical Performance of FCs: efficiency, cold start, range Fast Refueling: 700 bar technology Safety standards defined and tested Market Activation Measures for Sustainable Transport FCEV for Road, Rail, Water Electrolysers FC-based CHP for Ships, Planes, Vehicles FC-based Off-grid Critical Infrastructure Funding 40-45% of the additional costs for innovative tech Source: 27 th IPHE Education and Outreach Event Meeting Hamburg, Germany - Germany Country Presentation 13
United States Hydrogen-at-Scale H2@Scale concept connects multiple energy sources to generate hydrogen through the grid Uses for hydrogen range from energy storage to transportation (e.g., upgrading, synthetics, pure hydrogen) to industrial applications (e.g., chemical and metal refineries) to merchant sales (e.g., food processing, electronics) Source: 27 th IPHE Education and Outreach Event Hamburg, Germany, United States Country Presentation 14
United States: FC Electric Vehicles Toyota, Hyundai, and Honda all have models commercially available There are over 1,500 FCEVs sold or leased in the U.S. as of Feb 2017. Over 50 HRS of which about over 20 are public California has $100M to 2023 for H2 infrastructure, goal of 100 HRS Northeastern states (e.g., MA, NY, CT) have plans for HRS Source: 27 th IPHE Education and Outreach Event Hamburg, Germany, United States Country Presentation 15
United States: Sample Niche Markets Today Transit Authorities in San Francisco / Oakland region, and Los Angeles region have extensive experience in FC Bus Fleet management FC Forklifts and Materials Handling Units are a key niche market, especially in North America Business case works especially in 24/7 operations Source: 27 th IPHE Education and Outreach Event Hamburg, Germany, United States Country Presentation 16
European Union Directives Very aggressive GHG reductions, Renewable Energy System obligations and Energy Efficiency gains To get to these targets, dealing with the energy sector alone is not enough Over 75% of emissions come from Transportation and the Built Environment Need RE in all Sectors of the Economy Source: 27 th IPHE Education and Outreach Event Hamburg, Germany, European Commission Presentation 17
European Union FCH2 JU Source: 24 th IPHE Education and Outreach Event Grenoble, France, European Union Presentation 18
European Union: Regions/Cities Initiative FCH2 JU bringing together Cities and Regions with interest in FCH For Further Information see: http://fch.europa.eu/page/about-regions 19
European Union: Changing Perspectives H2FUTURE Green Hydrogen for the Industry Design and installation of a 6 MW Siemens PEM electrolyser system at the voestalpine steel plant in Linz, Austria Industrial integration of renewable hydrogen production in the steelmaking process 26-month demonstration of the electrolyser system Prequalification for power reserve markets (primary, secondary and tertiary control) Integration of the electrolyser system into the steelworks operation Accompanying analysis of roll-out impact in the steel and fertilizer industries Continued operation of the electrolyser after the end of the project Source: 27 th IPHE Steering Committee Meeting Hamburg Germany, Keynote Presentation by Dr. Rudolf Zauner, VERBUND Leeds City Gate: H21 Study Project Team: Northern Gas Network, Wales & West Utilities, Kiwa, and Amec Foster Wheeler all of the UK Objective: Determine the technical and economic feasibility of converting the existing natural gas system to pure hydrogen. Rationale: Pipeline upgrade underway with funding in place Addresses Climate Change Policy driver Have done conversion like this in past (manufactured town gas to natural gas in 1960/70s) Significant access to natural gas and natural storage allowing for steam methane reforming with Carbon Capture and Storage Findings: Gas network has correct capacity for conversion Can be converted incrementally with minimal disruption Minimal new energy infrastructure required See full report: www.northerngasnetworks.co.uk/wp-content/.../energising-the- North-report-final.pdf 20
China: Technology Roadmap including FCEVs "Technology Roadmap for Energy- Saving and New Energy Vehicles was officially released by SAE China Oct 2016, which includes the Fuel Cell Vehicle Technology Roadmap. Except FCEVs, central and local subsidies and limits for various models in 2017 and 2018 fall 20%. The revision also raises technological standards, including battery capacity and pure electric drive range. Source: 27 th IPHE Steering Committee Meeting Hamburg, Germany - Country Update Presentation by China 21
France Deployment: Fleet Vehicles (Predictable Driving) HYPE: FC Taxi Fleet (Hyundai FCEVs) in Paris, with 5 FCEV taxis (Proposed up to 70 FCEVs) HYWAY: Fleet deployment of 50 RE-FCEVs in Grenoble and Lyon area. H2ME (FCH JU): Funded by FCH JU, will deploy 3 new HRS in France French-Spanish Corridor of 10 HRS: network of 10 HRS will be deployed between Rodez (Aveyon) and Zaragoza (Aragon, Spain) by the end of 2017. Government Investment and Incentives: Call for proposal by Ministries of Environment and Economy on hydrogen in the territories launched May 2016 has identified 44 projects. See: http://www.developpement-durable.gouv.fr/img/pdf/aap-territoireshydrogene.pdf Initiatives: National Strategy of Research for Energy: recommends continuing development of hydrogen technologies and experimentations through deployments (December 2016). http://www.developpementdurable.gouv.fr/sites/default/files/snre%20vf%20d%c3%a9c%202016.pdf Source: Country Updates at http://www.iphe.net/partners.html Current Numbers: +180 FCEVs 6 HRS (Private) 8 HRS (Public) 4 HRS (Under Construction) 10 HRS (Planned) 22
Korea Deployments Status 2016: 11 HRS, 100 FCEV Total installed Stationary FC capacity: 177MW as of 2015 FCEV Taxi, Ulsan: Demonstration project of FCEV Taxis; target of 10 FCEVs in 2016 and an additional 5 in 2017 Government Investment & Incentives: 2016 Investment: US$5.4M investment in FCEVs and HRS US$5.3M on household and building apps 2016 R&D budget: US$34M. Incentives offered for FCEV purchase and installation of HRS Initiatives: Renewable Portfolio Standard: obligation on power suppliers with capacity > 500 MW to produce a percentage of power (3.5% in 2016) from new & renewable sources The 3rd Eco-friendly Vehicle Development & Deployment Scheme: Objective is to transform the automotive landscape to be more eco-friendly Research and Development Examples: Focused on cost reduction and improving durability of fuel cell systems for residential power generation, vehicles, and hydrogen refueling infrastructure Source: Country Updates at http://www.iphe.net/partners.html Source: 26 th IPHE Steering Committee Meeting Gwangju, Korea - Presentation by Korea 23
The Netherlands: 2 HRS in operation: one pipeline-fed station, one using on-site electrolysis Up to 15 additional stations in planning phase with target of 20 in total by 2020 National Hydrogen Platform, a public-private partnership formed April 2016: Agreement on Zero Emission Regional Public Transportation By Bus between Public Transportation Authorities and the Ministry of Infrastructure and the Environment with the goals: No later than 2025: all new buses zero emission By 2030: all buses should be zero emission; and only renewable energy for buses in public transportation Demonstration projects ongoing: City of Rotterdam, starting with 2 FC-buses Summer 2017; City of Eindhoven (South): 2 buses in service. Starting later on this year: Groningen (North), Arnhem (East) South Africa: HySA Programme received funding of R81.4 million (~USD5.4 million) from government through the Department of Science and Technology. An additional amount of R34 million (USD2.2 million) was leveraged from other Programmes within the Department; combined total of USD7.6 million. First fuel cell powered forklift deployed in 2016. A multi-stakeholder forum involving government, industry, and the mining sector has been set up to develop a fuel cell roadmap for South Africa. Sources: http://www.iphe.net/partners.html; http://www.nationaalwaterstofplatform.nl 24
Canada: New Investment in H2 Infrastructure 2 of 3 new retail HRSs announced Development of a national HFC Roadmap (2016/17) Pan-Canadian Framework on Clean Growth and Climate Change includes carbon pricing, emission standards, low carbon fuel standards, and a Zero Emission Vehicle strategy Development of a Modelling Tool: Retail Hydrogen Fueling Infrastructure In British Columbia: investing in 2 new H2 HRSs (Vancouver & Victoria); allocated $40Million to the Clean Energy Vehicle Program (February, 2017), and $40M in Partnership with federal government on clean energy projects and technologies In Quebec: Zero Emissions Vehicle (ZEV) mandate (September, 2017); 3.5% of sales in 2017, and 15.5% by 2020; target of 100,000 ZEV vehicles on the road by 2020 United Kingdom: Published the Hydrogen and Fuel Cells: Opportunities for Growth Roadmap for the UK. http://www.e4tech.com/reports/hydrogen-and-fuel-cells-opportunities-for-growth-a-roadmap-for-the-uk/ 10 vans are being deployed under the Levenmouth Community Energy project (funded by the Scottish Government). http://brightgreenhydrogen.org.uk/home/levenmouth-community-energyproject-2/levenmouth-community-energy-project/ The Office of Low Emission Vehicles (OLEV) is currently evaluating bids for funding to deploy further cars and vans and expect to support the deployment of at least a further 50 vehicles in 2017. https://www.gov.uk/government/publications/hydrogen-fuel-cell-vehicles-fundingfleets-to-be-early-adopters OLEV announced winners of the Low Emission Bus scheme which will deploy a further 42 FC buses in the UK. https://www.gov.uk/government/news/government-awards-30-million-funding-forcleaner-greener-bus-journeys Sources: http://www.iphe.net/partners.html 25
Select Summary Numbers Country # of Cars # of Buses # of Fork Lifts # of Stations # of <5 kw Stationary Units United States 1,500 33 >10,000 >70 - Germany >480 Included 16 33 ~1,200 Japan 1,800 Demo only 21 >70 ~195,000 France 185 - ~100 14 >50 United Kingdom 42 18-14 Demo only China 60 50-5 - Source: Country Updates http://www.iphe.net/partners.html 26
Tim Karlsson Executive Director, IPHE e-mail: tim.karlsson@iphe.net Phone: +32 (0)2 541 82 76 website: www.iphe.net For All IPHE Country Reports and Updates see http://www.iphe.net/partners.html 27