Because fuel cells are a solu,on the world believes in Making Way for Scotland’s Hydrogen Economy Fuel Cells – a Reality in Europe FuelCellEurope •  FuelCellEurope is the associa1on represen1ng the interests of fuel cells in Europe. •  An independent, privately funded European associa1on based in Brussels. •  FuelCellEurope counts 40+ member organiza1ons from 10 European countries, USA, Japan, Canada and China. •  Membership includes fuel cell equipment manufacturers, energy companies, automo1ve OEMs, service companies, academia, research ins1tu1ons and poten1al users. •  Our Mission: "Accelerate the development and market uptake of fuel cell technologies in Europe for applica8ons in transport, sta8onary and portable power.” •  www.fuelcelleurope.org Members Logo’s 2010 Because fuel cells are a solu,on the world believes in FuelCellEurope stands for:   Promo1ng fuel cells as a key solu1on for EU energy policies.   Promo1ng of fuel cells as a very significant poten1al for EU economic acEvity.   Pursuing the crea1on of beGer condiEons to successfully integrate fuel cells technology in the European market and society, now and in the long term.   Accelera1ng the development and market uptake of fuel cells and its industry in Europe today. Because fuel cells are a solu,on the world believes in 1.  Transport applica1ons: –  Special purpose vehicles / scooters –  Inner-­‐city buses –  Vehicle fleets –  Passenger cars –  Handling materials / forkliTs 3. Portable and micro power –
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Electric tools Laptops Ba\ery chargers Marine Defence 2. Sta1onary applica1ons: –  CHP (combined heat and power large and small) –  UPS -­‐ Backup power (telecom, data centers, cri1cal applica1ons) –  Auxiliary Power Units –  Onsite power genera1on Because fuel cells are a solu,on the world believes in CommunicaEon tools: •  News alerts for members
•  E-zine
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Because fuel cells are a solu,on the world believes in Members have joined us because of... 1.  Advocacy and Monitoring Benefits –  Support and contribu1on to shaping the future of fuel cells in Europe –  Access to oTen urgent updates on EU policy, regulatory and financial developments –  Par1cipate in lobbying ac1vi1es –  Preview and shape posi1on papers on EU policies –  Contribute and influence the strategic direc1on of FuelCellEurope –  Par1cipate in all key decisions of the Associa1on Because fuel cells are a solu,on the world believes in Members have joined us because of... 2.  Market and Industry Development Benefits –  S1mulate the demand side, by par1cipa1ng in Customer and User Applica1on groups, set up for early market areas –  Access to oTen urgent updates on business news and leads –  Access to important informa1on on EU funding and subsidies opportuni1es –  Visibility as member company on FuelCellEurope’s website, in the e-­‐
zine and the newsle\er –  Exchange about opportuni1es, demands, offers, partnerships, employment... Because fuel cells are a solu,on the world believes in Members have joined us because of... 3.  Networking Benefits –  Create business opportuni1es at low cost –  Knowledge sharing and best prac1ce with like-­‐minded people –  Access to the Members-­‐only area of FuelCellEurope website, providing all the informa1on of the associa1on, news, reports, presenta1ons and working documents. –  Ac1ve par1cipa1on in applica1on focused events and members’ only events. –  Free access to, or discounts for selected major events and conferences. What can we expect?
“Energy = Thermodynamics + Economics + Politics”
In the past 15 years: In the next 5 years:
70-­‐80% Thermodynamics: –  R&D –  Technology development –  Overall design –  IPR 20-­‐30% Thermodynamics: –  Design op1misa1on –  Performance op1misa1on 15-­‐20% Economics: –  Market understanding & prepara1on –  Educa1ng supply chain partners –  Pilot projects –  Heavily subsidized projects 0-­‐5% PoliEcs: –  Generate the necessary government subsidies to co-­‐
finance the R&D effort 40-­‐50% Economics: –  Cost reduc1on and industrialisa1on –  Market deployment –  Supply chain agreements –  Go to market strategies 20-­‐40% PoliEcs: –  Large scale demonstra1on projects –  Impact on energy and environment debate –  Government purchase –  Energy Efficiency –  Subsidies for end users –  Regulatory frameworks Fuel cells are needed Challenges for Europe: FC&H have very good answers: 1.  Climate change 1.  Combined with renewable hydrogen fuel cells can have zero emissions A.  Reducing GHG emissions B.
Energy efficiency C.
Renewable energy storage 2.  Local air polluEon A.  Road transport has a deep impact B.
Health care costs 3.  Economic sustainability A.  Employement B.
Energy security 2.  Fuel cells are the most efficient energy conversion technology 3.  Help op1mize integra1on and storage of renewable energies 4.  Fuel cells allow considerable reducEon in noise and air polluEon 5.  Fuel cells have a great long-­‐term economic potenEal in terms of green jobs poten1al along the value chain 6.  Hydrogen can be produced from a very wide variety of resources thus reducing security risk to a minimum Fuel cells for energy storage •  Hydrogen is ideal for storing large quan11es of energy over longer periods of 1me •  Producing H2 with electrolysers using surplus intermi\ent renewable energy and base load •  Allows to stabilize electricity demand (peak shaving) •  Reduce overall electricity produc1on capacity needed and prices •  Gas to grid is much less efficient than gas to CHP or transport applica1ons •  Decentralised H2 produc1on avoids high transport costs Fuel Cell reality check European Level Funding: Joint Technology IniEaEve (1) “Developing New Energy for the future: Europe launches a 1 billion Euro project to get into pole posiEon for the Fuel cells and Hydrogen race” •  Budget being made available by the European Commission to be matched by industry European Level Funding: Joint Technology IniEaEve (2) Four major ApplicaEons Areas (AA): •  AA 1: Hydrogen vehicles and infrastructure technologies –  Main goal: improve & validate hydrogen vehicle and infrastructure technologies to the level required for commercialisa1on decisions by 2015 and a mass market rollout by 2020 •  AA 2: Sustainable hydrogen supply: –  Main goal: 10-­‐20% of the hydrogen supplied for energy applica1ons should be CO2 lean by 2015 •  AA 3: Fuel cells for CHP and power generaEon –  Main goal: Commercially compe11ve fuel cells for CHP and Power genera1on. >1GW capacity in opera1on by 2015 •  AA 4: Fuel cells for early markets –  Main goal: Thousands of early market fuel cell products sold by 2010 NaEonal fuel cell programs in Europe (1) •  Germany: –  Na1onal Organisa1on for Hydrogen and Fuel Cell Technology established in 2008 –  NaEonal InnovaEon Program (NIP): 10 years program adding 700M€ to current R&D programs for H&FCs. –  Program aligned with JTI. •  France: –  New HyPAC plalorm since 2009 –  Budget: +/-­‐ 100M€ over the next 5 years. –  Objec1ve: 2010 = 55MW installed in France. Beyond 2010 install minimum 20MW/year. –  Early market priori1es: micro cogenera1on, emergency power, portable, decentralized power –  involvement of automo8ve OEMs and energy players very weak NaEonal fuel cell programs in Europe (2) •  United Kingdom: –  The UK government commi\ed 200M£ in 2008 for low carbon technologies including renewable energies, CCS and hydrogen & FCs. –  The UK Carbon Trust commi\ed 90M£ for low carbon technologies. –  SUPERGEN (Sustainable Power Genera1on and Supply) program coordina1ng research in new energy technologies financed by several government councils (EPSRC, BBSRC, ESRC). –  UK Sustainable Hydrogen Energy ConsorEum launched in July 2007. Partnership between Universi1es and industry partners (BOC Group, BP, Johnson Ma\hey, Qine1q,Shell Global solu1on UK, Tectronics…). Receives financing of 8M€ per year. –  EsEmated annual public funds for hydrogen & fuel cells programs in UK: 20M€ NaEonal fuel cell programs in Europe (3) •  Spain: –  Na1onal Hydrogen and Fuel Cell Technology Plalorm (PTE-­‐HPC) created in 2005 –  Spain currently building a major NaEonal Center on Hydrogen and Fuel Cell Technology Experimenta1on in Cas1lla la Mancha (opera1onal towards 2010) –  Substan1al alloca1on of resources and program essen1ally at regional level. Focus at synergizing developments with RE •  Norway: –  May ban (non hybrid) petrol cars to be sold ajer 2015 –  Opened on 11 May 2009 its hydrogen highway between Stavanger and Oslo (580km). –  7 hydrogen refueling sta1ons to be built –  HyNor project counts 50 players from the industry, transport, regional governments and organiza1ons Regional and local iniEaEves: many “hidden” opportuniEes •  Examples of important regional and local ini1a1ves: –  NRW (D): +/-­‐ 20M€ budget in 2008 –  Hamburg (D): +/-­‐ 2M€ budget in 2008 –  Aragon (E): +/-­‐ 3M€ budget in 2008 –  Bri1sh-­‐Midlands (UK): +/-­‐ 4M€ budget in 2008 –  Piemonte (IT): +/-­‐ 3M€ budget in 2008 –  Rhône-­‐Alpes (FR): +/-­‐ 500K€ budget in 2008 (new strategy in development for the future) –  DutchHy (NL) +/-­‐ 10M € in 2009/2010 SET plan… Fuel Cells and Hydrogen are in the SET plan –  No European Industry Ini1a1ve because exis1ng JTI –  “addi1onal public and private funding needed for fuel cells and hydrogen technologies is currently esEmated as € 5 bn (5.000.000.000) for the period 2013-­‐2020.” –  +/-­‐ 10% of the total SET ⇒ 12% UK = £ 73.432.714 p/a* ⇒ 12% Scotland = £ 8.811.926 p/a* *Based on the % of popula1on EU -­‐ SWOT STRENGTHS WEAKNESSES Excellent material science/research Lack of European fuel cell stack champion A few na1onal and regional champions Rela1ve lack of system integrators and early market "gurus" Wide diversity of players (SMEs, large FragmentaEon / duplicaEon of players and research centers) efforts Strong government support at Na1onal Level (Germany) and Lack of private equity investment Regional/Local Level (NRW, Hamburg, Aragon, Piemonte,..) Mul1annual financial frameworks Hydrogen and fuel cells not regarded as short term soluEons to energy and climate change policies EU -­‐ SWOT OPPORTUNITIES THREATS European JTI may help gain the required level of coordinaEon and criEcal mass Fuel cell developments (too) much driven by transport in Europe Basic EU regulatory framework in place for hydrogen vehicle type approval No European common taxaEon and subsidy scheme Synergies between renewable Where is the business case to build electricity produc1on and hydrogen /
up a hydrogen infrastructure? fuel cells as a storage mean European/ na1onal/regional and local funding available Economic recession impact corporate R&D budget expenditures and investors' risk profiles Electric baGery vehicles are ge{ng a lot of a\en1on currently Conclusion •  Fuel cell are a reality in Europe •  Europe has a structural challenge •  Much more will need to be done to ensure a future for the fuel cell industry in Europe Contacts Patrick Maio, CEO Email: p.maio@fulecelleurope.org Anthony Brenninkmeijer, DIRECTOR Email: a.brenninkmeijer@fuelcelleurope.org Perrine Tisserand, EU Advocacy & Communica1on Officer Email: p.1sserand@fuelcelleurope.org EU office: 44, rue des Palais Brussels Tel: +32 2 211 34 11