Making North America Competitive 1

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Canada’s Hydrogen and Fuel Cell Industry:
Global Partnering for Success
Alison Grigg, on behalf of Chris Curtis
Fuel Cells Canada
August 27, 2005
Santa Fe, New Mexico
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Fuel Cells Canada
 National not-for-profit industry association
 Founded in October 2001
 Our Mission is to promote the development and commercialization of
Canadian hydrogen and fuel cell technologies, products and services
 Prime source of services and support to companies, educational
institutions and business alliances promoting, developing and
demonstrating fuel cell and related products and services in Canada
 67 member companies and organizations across Canada
Setting the Scene | The Canadian Industry
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The Future
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Drivers for Hydrogen and Fuel Cell Commercialization
An energy platform that enables other technologies to
achieve goals of reliability, security, efficiency and
sustainability.
Greenhouse Gas
Reduction
Improved efficiency in converting energy.
Zero GHG emissions when based on renewable sources.
Urban Pollution
Reduction
Zero emissions from tail pipe of fuel cell vehicles.
Energy
Reliability/Security
Key enabler to meet growing need for clean, distributed
power
Economic
Development
Significant export opportunities and global economic
value.
Setting the Scene | The Canadian Industry
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The Future
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Global Market Projections
Mobile Fuel Cells - $7.5 billion
Stationary Fuel Cells - $7.5 billion
Automotive Fuel Cells - $3.6 billion
Data from “Fuel Cell Industry
Competitive Analysis - Assessment of
Major Players, Global Markets, and
Technologies” 2003 Allied Business
Intelligence Inc., Courtesy Industry
Canada
Setting the Scene | The Canadian Industry
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The Future
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Markets for Fuel Cell Products
10,000
Remote sites (off-grid)
Capital cost $/kW
Micro-applications (laptop computers, digital cameras, cell phones)
1,000
700
100
Lift trucks, industrial equipment, residential applications,
off-grid and back-up power, military applications
Distributed power
Buses
Major
market increases
Autos
60
10
2004
Early niche
markets
2015
Increasing: manpower + capital + production + capacity
Source: adapted from Methanex, September 2002
Setting the Scene | The Canadian Industry
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The Future
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Supply Chain Opportunities
Setting the Scene | The Canadian Industry
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The Future
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The Canadian Hydrogen and Fuel Cell Sector:
Overview
 Activities began in 1982 with first contract for Ballard Power
Systems
 Total Canadian industry revenue has grown 40% from $134
million in 2002 to $188 million in 2003
 Industry R&D expenditures over $290 million – since 2000 an
average of $100,000 per employee per year
 Over 80 companies across Canada are focused on fuel cell and
hydrogen technology and associated services, employing over
2,600 people
 Patent holdings were up 34% to 581 in 2003.
Setting the Scene
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The Canadian Industry
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The Future
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Geographic Profile
Fuel Cell Producers &
Integrators
Suppliers
Fuelling
Infrastructure
Service Providers
Setting the Scene
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The Canadian Industry
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The Future
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International Involvement – Industry
 About 33% of Canadian industry activity is outside of North America
 Active in 262 demonstration projects (2003); 70% outside of Canada
 Industry Associations: California Fuel Cell Partnership, US Fuel Cell
Council
 Networking with industry groups and participation in trade missions
 Corporate partnerships and joint development examples:
– Ballard with Ford/Daimler Chrysler
– General Hydrogen with General Motors
– Hydrogenics with GM, John Deere, American Power Conversion, US Army
Setting the Scene
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The Canadian Industry
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The Future
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International Involvement – Canadian Government


International Partnership for the Hydrogen Economy (IPHE)
International Energy Agency (IEA) Implementing Agreements:
– Production and Utilization of Hydrogen
– Advanced Fuel Cells
– Advanced Motor Fuels





International Safety Organization TC197
Asia Pacific Economic Cooperation (APEC)
Natural Resources Canada/US Department of Energy (treaty negotiation)
Natural Resources Canada/California Air Resources Board MOU
Government led trade missions
Setting the Scene
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The Canadian Industry
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The Future
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Commercialization Challenges for Hydrogen and Fuel Cells
Micro-level:
 Improved fuel cell reliability and durability
 Reduced cost
Macro-level:
 Stimulating early market demand
 Improving product quality while reducing costs
 Financing for R&D, commercialization
 Creating supporting infrastructure
 Codes and standards
Setting the Scene
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The Canadian Industry
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The Future
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Technology Development: On Track for Commercialization
Companies are meeting technology development timelines:

Ballard Power Systems has reduced costs of fuel cells by 80%
since 1999, while achieving a ten-fold increase in lifetime

Fuel Cell Technologies has accumulated over 1500 hours of
operation on its second generation 5 kW system

Hydrogenics HyPM 10 kW power module has achieved over 5000
hours of operation & over 6500 “stop-start” cycles on a single
unit

Dynetek Industries has 10,000 psi (750 bar) hydrogen tanks on
the market

BC Hydro/Powertech is a 10,000 psi operational fueling station

US companies attaining commercial sales contracts
Setting the Scene
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The Canadian Industry
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The Future
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Hydrogen Highway

Province of British Columbia –
Lower Mainland and Vancouver
Island

Coordinated market demonstration
program designed to accelerate
commercialization

Framed around the 2010 Winter
Olympic and Paralympic Games

Showcase and demonstrate the
environmental, economic and social
benefits of this technology to the
world

First phase by 2007 is focused on
seven highly visible locations

Mobile, stationary and micro fuel
cell applications and infrastructure

Multi-agency effort
Setting the Scene
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The Canadian Industry
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The Future
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Hydrogen Highway
Examples of Activities:
 Hydrogen Fueling Stations:
 Surrey (10,000 psi)
 Vancouver (5,000 psi)
 Victoria (5,000 psi)
 Hydrogen Technology Environmental
Chamber
 Photovoltaic panels, electrolyser and
hydrogen storage at the NRC
Institute for Fuel Cell Innovation
 Integration with Vancouver Fuel Cell
Vehicle Program
Setting the Scene
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The Canadian Industry
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The Future
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Vancouver Fuel Cell Vehicle Program





Partnership between Government and Industry
Demonstration of sustainable, zero-emission based transportation technologies
5 Ford Focus vehicles to be evaluated for three years in Vancouver’s Lower
Mainland
Technology: Ballard Fuel Cell Systems, Dynetek Hydrogen storage
Opportunity to test, demonstrate, deploy and evaluate proprietary systems for
H2 production
Setting the Scene
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The Canadian Industry
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The Future
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Hydrogen Village
The Hydrogen Village is located in the Greater Toronto Area in the Province of
Ontario.
The intent of the H2V is to:

Create a plan and platform for the deployment of hydrogen and fuel cell
technologies to the benefit of the local community.

Develop the necessary supply, service, and knowledge infrastructure
needed to create a sustainable market.

Ensure technology deployments (stationary, mobile and transportation) fit
within the context of existing community infrastructure and activity.

Aid in the complementary growth of other centers across Southern Ontario
– thereby developing a hydrogen Corridor.
Setting the Scene
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The Canadian Industry
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The Future
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Hydrogen Village
Examples of Activities:
 Hydrogen powered delivery trucks for Purolator courier fleet
 Fueling infrastructure and hydrogen powered forklifts for General Motors
plant in Oshawa
 Residential heating and power generation using four solid oxide fuel cells at
a townhouse-style student residence at the University of Toronto at
Mississauga
 Back-up power for computer network servers
 Fuel cell-based back-up power system at a telecommunications switching
station
 Hydrogen fuel cell powered utility vehicles in conjunction with hydrogen
production and refueling at the Canadian National Exhibition
Setting the Scene
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The Canadian Industry
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The Future
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The Path Forward – Partnership Opportunities

Demonstration Projects
– Hydrogen Highway – conceptually, a Hydrogen Highway from Baja,
California to British Columbia, Canada (“BC to BC”)
– Funding programs that encourage North America wide participation
– Sharing lessons from past Olympic Games and preparing to
showcase NA capabilities/expertise in the 2010 Olympic Games

Joint Development
– Providing enhanced access to R&D programs in all jurisdictions – at
the institutional/corporate level
– Joint education and outreach programs
– Identify and set objectives to support core competencies in each
country to ensure complimentarity rather than duplication

Government Support
– State/Provincial governments encouraging transborder activities
– Involvement of US, Canada and potentially Mexico in IPHE activity
Setting the Scene
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The Future
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Fuel Cells Canada Sponsoring Members
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Fuel Cells Canada Members
Advanced Measurements Inc.
FTI International Inc.
NORAM Engineering and Constructors Ltd.
Alberta Research Council
Fuel Cell Technologies Ltd.
Palcan Power Systems Inc.
Alternate Energy Corporation
FuelCon Systems Inc.
Pathway Design & Manufacturing Inc.
Angstrom Power Inc.
General Hydrogen Corporation
PEM Engineers Inc.
Astris Energi Inc.
Gowling Lafleur Henderson LLP
PricewaterhouseCoopers LLP
Azure Dynamics Corp.
Greater Vancouver Regional District
Propane Gas Association of Canada Inc.
Ballard Power Systems Inc.
GrowthWorks Ltd
Province of Ontario
BC Hydro
Heliocentris Energy Systems Inc.
Quebec’s Fuel Cells and Hydrogen Network
BC Transit
HERA, Hydrogen Storage Systems Inc.
Queen’s RMC Fuel Cell Research Centre
BOC Gases
HSBC Bank of Canada
QuestAir Technologies Inc.
Business Development Bank of Canada
H3 Energy
Sacré-Davey Engineering
Canadian Hydrogen Association
Hydrogenics Corporation
Sarnia-Lambton Economic Partnership
Canadian Hydrogen Energy Corporation
IESVic
TD Securities Inc.
Cellex Power Products Inc.
Inco Special Products
Tekion Solutions Inc.
ChevronTexaco Technology Ventures
Keen Engineering
Teleflex Canada Inc.
Chrysalix Energy Limited Partnership
Kinectrics Inc.
University College of the Fraser Valley
Clean Energy Canada
KPMG LLP
Westport Innovations Inc.
Conduit Ventures Ltd.
Marcon-DDM
Zongshen PEM Power Systems
Deloitte & Touch LLP
Marsh Canada Ltd.
Dynetek Industries Ltd.
McCarthy Tetrault LLP
Enbridge Gas Distribution
Membrane Reactor Technologies Ltd.
Energix Research
Methanex Corporation
Energy QBD Inc.
National Bank Financial
Ford Motor Company
National Research Council
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Thank you
Alison Grigg, on behalf of Chris Curtis
Fuel Cells Canada
August 27, 2005
Santa Fe, New Mexico
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