THE HYDROGEN AND FUEL CELL
TECHNOLOGIES STRATEGY
Dr Boni Mehlomakulu
Deputy Director General: RDI
Department of Science & Technology
09/11/2007
Presentation Outline
Why is South Africa talking Hydrogen?
Strategy in brief
Implementation plan
Competence Centres
Planned outputs
Value chain management
1
million barrels per day
Global Drivers
d
man
e
D
l
l Oi
Tota
120
Natural Gas Liquids &
Non Conventional Oil
90
60
OPEC Middle East Crude oil supply
30 World Crude Oil Supply
excluding OPEC Middle East
0
1996
2006
2016
IEA
2026
Global Drivers
today
tomorrow
Fuel Cell Vehicles
Hybrid Vehicles
CO2-neutral Bio Fuels
Improvement of Conventional Fuels
Optimization of Combustion Engines
2
The Hydrogen Vision
USA
Security of supply a major driver
Focus is transportation: A Hydrogen fueling station
opened in Nov 2004
2 prong strategy
$1.7 billion over 5 year
Bridge Technologies ($0.5 billion)
Hybrid Cars
Hydrogen Energy and Fuel Cells ($1.2 billion)
H2 Freedom Car
3
US Timeline
Questions to answer
Pt role in the future H2 Economy
How much platinum is there?
What are the current markets?
How much platinum will fuel cells need?
Can the mines supply this platinum?
4
History of Pt production
Pt tonnes produced per decade since 1735
2,500
2,000
1,500
1,000
500
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
South Africa
Russia
Canada
Others
(1900 figure is cumulative from 1735)
Pt markets since 1970
Pt tonnes sold per year
200
100
0
1970
1980
Industrial
1990
Jewellery
2000
Autocatalyst
5
Additional Pt resources likely
Old data was based on 1.2km max depth
Northam Platinum already mine at 2+km
Bushveld drilled down to 3.3km
Gold Mines in SA operate at ~4km already
Seismic data suggests reefs at 6km
Some estimates* say 64000 tonnes Pt in SA
TIAX Study D0034 “Pt Availability & Economics
for PEMFC Commercialisation” December 2003
Why is South Africa talking H2
World platinum resources: Cawthorn, 1999
Zimbabwe
Finland
Russia
North America
South Africa
Fuel cells catalytic properties, substitutions investigated,
platinum still shows superior properties
Current investment in various applications R&D US$1b
annually (outside of SA)
6
Pt in a car today vs. fuel cell car
Car today : 2 – 5g Pt
Fuel cell car : 60g Pt
Pt demand for Fuel cell
applications
(Data from Johnson Matthey,
Matthey, 19951995-2005)
tonnes
20
15
10
5
0
Year 0
Year 2
portable
Year 4
stationary
Year 6
cars
Year 8
Year 10
other transport
7
What is a Fuel Cells?
A fuel cell is a device that uses hydrogen (or hydrogen-rich
fuel) and oxygen to generate electricity by an
electrochemical process
Fuel Cells resemble batteries - electrical output is due to an
electrochemical process
Unlike batteries, fuel cells
operate off a continuous
stream of O2 & H2 fuel
the active elements are not
consumed by the chemical
reaction
The Mining and Minerals Sector
Downstream Dimension
“We have always been a supplier of minerals to the world,
what we are now finding is that the world economy is
changing rapidly and is expecting an economy such as ours
to be able to produce higher-value manufactured products.
(Min. Alec Erwin)
• SA holds a significant share of the worlds minerals
resources and production
• However, we have not been able to use this endowment
to attain a satisfactory economic and social performance
8
The Natural Resource Curse
Economists believe there is a causal
relationship between natural resource
endowment and economic development
The Natural Resource endowment tends to
channel economic policies towards capturing
the primary products market and less
emphasis is put on manufacturing
Beneficiation for economic growth
IT and services are helping India log 6% yearon-year increases in GDP
China's vast manufacturing base is raising its
GDP by around 9% a year
What technology missions will put us on the
map?
Value addition contains more learning effects
that impulses the rest of the economy into a
steeper productivity curve
9
Our Hydrogen Vision
“ to create knowledge and human
resource capacity that will develop high
value commercial activities in hydrogen
and fuel cell technologies utilising local
resources and existing know-how”
Strategic Goals
Develop PGM-based catalysts in South Africa:
supply 25% of catalysts demand for the global
fuel cell industry industry by 2020
Develop local cost competitive hydrogen
infrastructure solutions (based on natural
resources)
Promote beneficiation, develop downstream
industries & create sustainable jobs linked to
our minerals wealth
10
Basic
Applied
Tech Develop
Transfer and
Proliferation
COEs
Competency Centres
DOE/NRF
NRF/DST
DST/FTI/PBF
Publications/new knowledge
PBF/DTI
Patents/new knowledge products
FTI
Production &
Commercialisation
Knowledge
Production
Development
11
CoC’s Product Profile
ProServices
Products
Processes
New Applied
Knowledge
New fundamental
knowledge
Products
Proximity to Market
DST Objectives re CoC
Competence centres would be complementary to
Centres of Excellence
Deliberately target industry participation and
development
Competence Centres are far more than networks:
they involve contractual relationships between the
parties, clear short medium and long-term innovation
objectives, the establishment of specialized
infrastructure, shared staffing between partners,
proactive attention to intellectual property issues
12
DST Objectives re CoC
They may be on University Campuses, but do
not operate directly under academic
supervision
Competence Centre programmes will be
placed in the envisaged Technological
Innovation Agency
H&FC CoC will have the flexibility of an
emerging R&D area
Adopt best practices of other systems rather
than sticking to fixed guidelines
DST Objectives re CoC
Centres of Excellence for Innovation
Multidisciplinary Teams
Industry partnerships are key
Long term funding commitment (with
appropriate M&E)
Initially, we need to recruit aggressively from
abroad (NRF, DST Bilaterals etc.)
Focus on expertise development initially (for a
specified product pipeline)
13
Hub & Spokes Model : Catalysis
Theme 1
Theme 6
Theme 2
(Hub)
UCT &
Mintek
Theme 5
Theme 3
Theme 4
Future Platinum industry in SA
Common set of skills needed for future Pt industries
Fuel Cells
Biomedical
Chemical
s
Pt Future
Industry
Jet eng
High
Temp
Appli.
AutoCatalysts
Crude
refining
14
Planned outputs
2007
2012
2017
2022
TI5
TI4
TI3
Design Capability
TI2
TI1
TECH DESIGN INNOVATION INDEX
The Strategic Problem
MI1
MI2
MI3
MI4
MI5
Manufacturing
Capability
MANUFACTURING INNOVATION
INDEX
15
TI5
TI2
TI3
TI4
Design Capability
TECH DESIGN INNOVATION INDEX
Defining Strategy
TI1
Material Inputs
Components
MI1
MI2
MI3
MI4
MI5
Manufacturing
Capability
MANUFACTURING INNOVATION
INDEX
Assembly
Technology Design Scale
National Innovation
TI5
Global IP leader. Systems level:
Capability to develop comprehensive innovations
within a field at a systems level that provides a
sustained global competitive advantage in product
development at systems level
TI4
Global IP leader – component level: Capability to develop comprehensive innovations
within a field at a component level that provides
a sustained global competitive advantage in
product development at systems level
TI3
Customisation of Licensed IP:
Capability to customise existing design for national
conditions.
Technology Transfer
TI2
Component Integration - IP licensed: Ability to integrate licensed components into a
system.
TI1
Turnkey assembly:
Ability to assemble turnkey solution.
16
O
U
TR
IG
H
T
PROCESS
TECHNOLOGICAL
RIVALRY
SALES INNOVATION
LO
SS
THE CHASM
INCREMENTAL
& ARCHITECTURAL
INNOVATION
(SA PRIVATE SECTOR)
IMPORTS
The cause – the Dutch Disease
•Primary
Primary production focus
•Risk
Risk capital deficiencies
•Commercialization
Commercialization theory, thought & experience
•Entrepreneurial
Entrepreneurial deficiencies
•Lack
Lack of belief, vision & boldness
KEY
EXPORTS
STAGE
AL
GIC
SEED
O
Y Unknow
OL U IT
NMARKET
CH NTIN RCH
n
T E COSHARE
A
E
DIS RSALES
ES TES)
U
(SA GROWT
TIT
S
N/A
IN
H
PROFITS
-ve
START-UP
EARLY
EXPANSION
MATURITY
DECLINE
Small
Small to
Moderat
e
Moderat
e
Large
Moderat
e
Low to
High
High
High
Low
Negative
-ve
-ve to 0
+ve &
small
+ve @
peak
+ve &
falling
8
MANAGED VALUE CHAIN
NORMAL
PROFIT
RETURNS
KEY
STAGE
SEED
INVESTMENT
MARKET Unknow
IN IP
SHARE
n
SALES
GROWT
N/A
H
PROFITS
-ve
START-UP
EARLY
EXPANSION
MATURITY
DECLINE
Small
Small to
Moderat
e
Moderat
e
Large
Moderat
e
Low to
High
High
High
Low
Negative
-ve
-ve to 0
+ve &
small
+ve @
peak
+ve &
falling
11
17
Benchmarking
Selected Countries PhD production rates Profile
250.00
PhD's/year/million of pop ulatio n
221
188
200.00
157
1999
140
150.00
2000
114
2001
2002
100.00
2003
53
43
50.00
23
7
10
0.00
South
Africa
China
India
Japan
South
Korea
Taiwan
UK
USA
Australia
Brazil
Thank You
For more information on the South
African Hydrogen Activities
Boni.Mehlomakulu@dst.gov.za
Hydrogen@dst.gov.za
18