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TECHNICAL REPORT SERIES

Assessing the International Position of EU's Research and Technological Development and Demonstration (RTD&D) on Hydrogen and Fuel Cells

EUR 21685 EN

European Science and Technology Observatory

Institute for Prospective Technological Studies

European Commission Joint Research Centre (DG JRC) Institute for Prospective Technological Studies http://www.jrc.es

Legal notice Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information.

European Communities, 2005 Reproduction is authorised provided the source is acknowledged.

About the JRC-IPTS The Joint Research Centre (JRC) is a Directorate General of the European Commission, staffed with approximately 2,100 people, coming in the vast majority from the 15 Member States of the European Union. The Brussels Support Services (including the office of the Director General and the Science Strategy Directorate) and seven Institutes located in five different countries compose the main organisational structure of the JRC (http//:www.jrc.org). The Institute for Prospective Technological Studies (IPTS) is one of the seven Institutes making up the JRC. The mission of the JRC is to provide customer-driven scientific and technical support for the conception, implementation and monitoring of EU policies. The Institute for Prospective Technological Studies (IPTS) is one of the seven Institutes making up the JRC. It was established in Seville, Spain, in September 1994. The mission of the IPTS is to provide prospective techno-economic analyses in support of the European policy-making process. IPTS prime objectives are to monitor and analyse science and technology developments, their cross-sectoral impact, and their inter-relationship with the socioeconomic context and their implications for future policy development. IPTS operates international networks, pools the expertise of high level advisors, and presents information in a timely and synthetic fashion to policy makers (http//:www.jrc.es). The IPTS is a unique public advisory body, independent from special national or commercial interests, closely associated with the EU policymaking process. In fact, most of the work undertaken by the IPTS is in response to direct requests from (or takes the form of long-term policy support on behalf of) the European Commission Directorate Generals, or European Parliament Committees. The IPTS also does work for Member States governmental, academic or industrial organisations, though this represents a minor share of its total activities. Although particular emphasis is placed on key Science and Technology fields, especially those that have a driving role and even the potential to reshape our society, important efforts are devoted to improving the understanding of the complex interactions between technology, economy and society. Indeed, the impact of technology on society and, conversely, the way technological development is driven by societal changes, are highly relevant themes within the European decision-making context. The inter-disciplinary prospective approach adopted by the Institute is intended to provide European decision-makers with a deeper understanding of the emerging science and technology issues, and it complements the activities undertaken by other institutes of the Joint Research Centre. The IPTS approach is to collect information about technological developments and their application in Europe and the world, analyse this information and transmit it in an accessible form to European decision-makers. This is implemented in the following sectors of activity: Technologies for Sustainable Development Life Sciences / Information and Communication Technologies Technology, Employment, Competitiveness and Society Futures project In order to implement its mission, the Institute develops appropriate contacts, awareness and skills to anticipate and follow the agenda of the policy decision-makers. IPTS Staff is a mix of highly experienced engineers, scientists (life-, social- material- etc.) and economists. Cross-disciplinary experience is a necessary asset. The IPTS success is also based on its networking capabilities and the quality of its networks as enabling sources of relevant information. In fact, in addition to its own resources, the IPTS makes use of external Advisory Groups and operates a number of formal or informal networks. The most important is a Network of European Institutes (the European Science and Technology Observatory) working in similar areas. These networking activities enable the IPTS to draw on a large pool of available expertise, while allowing a continuous process of external peer-review of the in-house activities. About ESTO The European Science and Technology Observatory (ESTO) is a network of organisations operating as a virtual institute under the European Commission's Joint Research Centre's (JRC's) Institute for Prospective Technological Studies (IPTS) - leadership and funding. The European Commission JRC-IPTS formally constituted, following a brief pilot period, the European Science and Technology Observatory (ESTO) in 1997. After a call for tender, the second formal contract for ESTO started on May 1st 2001 for a period of 5 years. Today, ESTO is presently composed of a core of twenty European institutions, all with experience in the field of scientific and technological foresight, forecasting or assessment at the national level. These nineteen organisations have a formal obligation towards the IPTS and are the nucleus of a far larger network. Membership is being continuously reviewed and expanded with a view to match the evolving needs of the IPTS and to incorporate new competent organisations from both inside and outside of the EU. This includes the objective to broaden the operation of the ESTO network to include relevant partners from EU Candidate Countries. In line with the objective of supporting the JRC-IPTS work, ESTO aims at detecting, at an early stage, scientific or technological breakthroughs, trends and events of potential socio-economic importance, which may require action at a European decision-making level. The ESTO core-competence therefore resides in prospective analysis and advice on S&T changes relevant to EU society, economy and policy. The main customers for these activities is the JRC-IPTS, and through it, the European policy-makers, in particular within the European Commission and Parliament. ESTO also recognises and addresses the role of a much wider community, such as policy-making circles in the Member States and decision-makers in both non-governmental organisations and industry. ESTO members, therefore, share the responsibility of supplying the IPTS with up-to-date and high quality scientific and technological information drawn from all over the world, facilitated by the networks broad presence and linkages, including access to relevant knowledge within the JRC Institutes. Currently, ESTO is engaged in the following main activities: A series of Specific Studies, These studies, usually consist in comparing the situation, practices and/or experiences in various member states, and can be of a different nature a) Anticipation/Prospective analysis, intended to act as a trigger for in-depth studies of European foresight nature, aiming at the identification and description of trends rather than static situations; b) Direct support of policies in preparation (ex-ante analysis); and c) Direct support of policies in action (ex-post analysis, anticipating future developments). Implementation of Fast-Track actions to provide quick responses to specific S&T assessment queries. On the other hand, they can precede or complement the above mentioned Specific Studies. To produce input to Monitoring Prospective S&T Activities that serves as a basis of experience and information for all other tasks. ESTO develops a Alert/Early Warning function by means of Technology Watch/Thematic Platforms activities. These actions are putting ESTO and JRC-IPTS in the position to be able to provide rapid responses to specific requests from European decision-makers. 0Support the production of "The IPTS Report", a monthly journal targeted at European policy-makers and containing articles on science and technology developments, either not yet on the policy-makers agenda, but likely to emerge there sooner or later. For more information: http//:www.jrc.es Contacts: esto-secretary@jrc.es

ESTO Research
Assessing the International Position of EUs Research, Technological Development & Demonstration (RTD&D) on Hydrogen & Fuel Cells

June 2005

VTT TECHNOLOGY STUDIES Mika Naumanen mika.naumanen@vtt.fi

FRAUNHOFER ISI, ENERGIEPOLITIK U. ENERGIETECHNIK Martin Wietschel M.Wietschel@isi.fraunhofer.de

QINETIQ Tonino Amorelli, Jacquie Walton TSAMORELLI@qinetiq.com, jrwalton@qinetiq.com

JRC-IPTS, SETRAS Group Hector Hernndez, Laura Lonza Hector.Hernandez@cec.eu.int, laura.lonza@cec.eu.int

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table of Contents
EXECUTIVE SUMMARY .............................................................................................IX 1. 1.1 1.2 1.3 2. 2.1 2.2 2.3 3. 3.1 INTRODUCTION .......................................................................................................... 1 BACKGROUND ............................................................................................................ 1 OBJECTIVES ................................................................................................................ 2 APPROACH AND METHODOLOGY ................................................................................ 3 HYDROGEN ECONOMY FRAMEWORK....................................................................... 5 HYDROGEN ENERGY SYSTEM ...................................................................................... 5 MARKET DEMAND FOR HYDROGEN ECONOMY TECHNOLOGIES ................................. 10 H2/FC FUNDING ........................................................................................................ 11 EU POLICY CONTEXT ............................................................................................. 14 EUROPEAN UNION .................................................................................................... 14 3.1.1 General Energy Outlook ................................................................................ 14 3.1.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 14 3.1.3 Government Funding of H2/FC RTD ............................................................. 15 EU MEMBER STATES ................................................................................................ 19 3.2.1 Government Funding of H2/FC RTD ............................................................. 19 3.2.2 Industry Activities........................................................................................... 21 CHARACTERISATION OF H2/FC RTD&D OUTSIDE THE EU ................................. 24 USA ......................................................................................................................... 24 4.1.1 General Energy Outlook ................................................................................ 24 4.1.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 25 4.1.3 Government Funding of H2/FC RTD ............................................................. 27 4.1.4 Industry Activities........................................................................................... 32 CANADA ................................................................................................................... 34 4.2.1 General Energy Outlook ................................................................................ 34 4.2.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 34 4.2.3 Government Funding of H2/FC RTD ............................................................. 35 4.2.4 Industry Activities........................................................................................... 37 JAPAN ....................................................................................................................... 40 4.3.1 General Energy Outlook ................................................................................ 40 4.3.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 41 4.3.3 Government Funding of H2/FC RTD ............................................................. 42 4.3.4 Industry Activities........................................................................................... 46 AUSTRALIA ............................................................................................................... 47 4.4.1 General Energy Outlook ................................................................................ 47 4.4.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 48 4.4.3 Government Funding of H2/FC RTD ............................................................. 49 CHINA ....................................................................................................................... 52 4.5.1 General Energy Outlook ................................................................................ 52 4.5.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 53 4.5.3 Government Funding of H2/FC RTD ............................................................. 54 INDIA ........................................................................................................................ 56 4.6.1 General Energy Outlook ................................................................................ 56 4.6.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 57 ii

3.2

4. 4.1

4.2

4.3

4.4

4.5

4.6

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

4.7

4.6.3 Government Funding of H2/FC RTD ............................................................. 57 SOUTH KOREA .......................................................................................................... 60 4.7.1 General Energy Outlook ................................................................................ 60 4.7.2 H2/FC Drivers, Barriers and Roadmaps........................................................ 61 4.7.3 Government Funding of H2/FC RTD ............................................................. 61

5. H2/FC TECHNOLOGIES IN EUROPE: STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS .................................................................................................................. 66 5.1 SUMMARY................................................................................................................. 66 5.2 PUBLIC AWARENESS/DEMAND MANAGEMENT ......................................................... 69 5.3 BASIC RESEARCH ...................................................................................................... 75 5.4 SYSTEM INTEGRATION/DEMONSTRATION ACTIVITIES .............................................. 83 5.5 MANUFACTURERS, MARKETS AND APPLICATIONS ................................................... 87 ANNEXES ........................................................................................................................... 96 ANNEX I. OVERVIEW OF PUBLICLY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ............................................ 96 ANNEX II. OVERVIEW OF PRIVATELY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA .......................................... 127 ANNEX III. ANALYSIS OF H2/FC RTD&D PUBLISHING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA .......................................... 157 ANNEX IV. ANALYSIS OF H2/FC PATENTING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA...................................................... 177

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

List of Figures
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 23 Figure 24 Hydrogen Energy System........................................................................................ 5 World Power Generation Capacity Additions 2000-2030 (Gigawatts)................. 11 Total Energy R&D for OECD Countries (1974-1998) (public)............................ 11 Comparison of Studies on Fuel Cell and Hydrogen R&D funding....................... 12 Skeleton proposal for European hydrogen and fuel cell roadmap ....................... 16 Demonstration Projects across the EU .................................................................. 21 Distribution of EU Fuel Cell Industry................................................................... 21 US Total Energy RD&D (1974-2002) .................................................................. 25 Overview of the transition to a hydrogen economy .............................................. 27 US Fuel Cell Demonstrators.................................................................................. 31 Canada Total Energy RD&D (1974-2002) ........................................................... 34 Annual NRCan Budget for Hydrogen Fuel Cell and Infrastructure (CA$m) ....... 37 Distribution of Canadian Fuel Cell Companies .................................................... 38 Japan Total Energy RD&D (1974-2001) .............................................................. 41 METIs Scenario for Market Introduction of FCs and FC-Vehicles..................... 42 Hydrogen R&D Budget Split (FY2002) - 9.1bn (69m) .................................... 43 Japans Fuel Cells RTD&D Budget 1981-2002.................................................... 44 R&D History on Stationary Fuel Cell Technologies............................................. 63 Funding for the South Koran Fuel Cell program .................................................. 63 Fuel Cell R&D Budget .......................................................................................... 64 All Systems Built Region of Development ........................................................ 85 Comparison of Number of Stationary Fuel Cell Demonstrators........................... 86 Geographic distribution of hydrogen patents worldwide ................................... 90 Technology trends in hydrogen patents for H2 production development over time........................................................................................................................ 91 Figure 25 Technology trends in hydrogen patents for fuel cells and ICE development over time........................................................................................................................ 92

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

List of Tables
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Table 27 Table 28 Table 29 Table 30 Table 31 Table 32 Table 33 Table 34 Table 35 Table 36 Table 37 Table 38 Table 39 Table 40 Table 41 EU Funding of H2/FC RTD&D Since 1985 ......................................................... 17 Contracts related to hydrogen technologies awarded, or under negotiation, in the first call for proposals of the 6th Framework Programme (FP6) ........................... 18 Contracts related to fuel cell technologies awarded, or under negotiation, in the first call for proposals of the 6th Framework Programme (FP6) .......................... 18 Examples of funding for H2/FC RTD&D across EU Member States .................. 20 H2/FC industry in Europe ..................................................................................... 22 H2/FC RD&D Activities for a Selection of European Companies ....................... 23 Review of US DoE EERE Hydrogen, Fuel Cells & Infrastructure Technologies Program Budget 2003-2005 .................................................................................. 28 US Stationary Fuel Cells Programme Budget....................................................... 29 Federal Government Funded Activity Budget (US$ million) ............................... 30 Recent Industry FC Industry Trends (US$ million ............................................... 32 H2/FC RD&D Activities for a Selection of US Companies ................................. 33 US Strengths and Weaknesses .............................................................................. 33 Government funding of Fuel Cells and Hydrogen RTD&D in Canada 2000 2006 (CA$ million) ........................................................................................................ 36 Economic Impact of H2/FC Industry in Canada ................................................... 38 Revenue figures for Canadian Fuel Cell Industry 2003 (CA$ million) ................ 38 H2/FC RD&D Activities for a Selection of Canadian Companies ....................... 39 Canadian Strengths and Weaknesses .................................................................... 39 Japans targets for fuel cell sales........................................................................... 41 Origins of Japans Current Fuel Cell Programmes ( billion) .............................. 43 METI/NEDOs PEM MCFC & SOFC related budgets for FY2002 and 2003 ( billions).................................................................................................................. 45 Hydrogen Stations; Japan Hydrogen & Fuel Cell Demonstration Project............ 45 H2/FC RTD&D Activities of a Selection of Japanese Companies ....................... 46 Japanese Strengths and Weaknesses ..................................................................... 47 Australian Fuel Cells and Hydrogen RD&D Projects........................................... 50 Australian Strengths and Weaknesses................................................................... 51 Chinas Hydrogen and Fuel Cell RD&D Activities.............................................. 55 Chinese Strengths and Weaknesses....................................................................... 56 Indias Government Funded Hydrogen and Fuel Cell RD&D Activities ............. 58 Indian Strengths and Weaknesses ......................................................................... 59 KEMCO Investment in Energy Technology Development Projects, 2001 (million Won)...................................................................................................................... 62 South Korean Strengths and Weaknesses ............................................................. 64 H2/FC RD&D Activities for a Selection of East Asian Companies ..................... 65 EUs strengths and weaknesses on H2/FC RTD&D.............................................. 67 EUs opportunities and threats on H2/FC RTD&D ............................................... 68 Comparison of High Level Government and Industry Co-ordination .................. 69 Cross Comparison of H2/FC Visions - EU, US, Japan and IEA. .......................... 71 Political Strengths and Weaknesses. ..................................................................... 73 Other Areas Strengths and Weaknesses. ............................................................... 74 Average impact factors in various H2/FC technologies and of the most significant nations ................................................................................................................... 78 Topic Area Publications since 1994 (figures for the most important nations and geographic areas total publications weighted by their impact factors) ............... 80 Comparing publications (in the top ten) ............................................................ 82 v

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 42 Table 43 Table 44

Overview of installed Fuel Cell Capacity (%) ...................................................... 85 Summary of Company RTD&D Activity for Selected Companies ...................... 88 Technological Strengths and Weaknesses............................................................. 95

Exchange Rates
For the purposes of this study we have used the following exchange rates: Currency/ 0.67 1.20 132.37 1.56 1388.24 57.00 10.05

UK Pound () US Dollar (US$) Japanese Yen () Canadian Dollar (CA$) South Korea (Won) Indian Rupee (Rs) Chinese Yuan (CNY)

These rates are European Commission stated rates from September 2004. It is important to note that their use in relation to R&D support levels do not take into account historic exchange fluctuations.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Acknowledgments
This report has greatly benefited from valuable comments of external experts participating in the validation workshop held in Valencia in June 2004 as well as from detailed contributions submitted by: Ulrich Bnger (LBST, co-ordinator of HyNet and HyWays project) Christopher Curtis (Fuel Cells Canada) Phil Doran (venture capitalist in the FC area, Fuel Cells Europe) David Hart (E4-Tech, Imperial College London)

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Glossary of Terms
AFC APU CaFCP CHP CNG CO CO2 CSIRO CUTE DMFC FC FCV GTL H2 ICE JHFC LCA LNG MCFC Mtoe NEDO NOx NG PAFC PEMFC REN SOFC WE-NET alkaline fuel cell auxiliary power unit California Fuel Cell Partnership (USA) Combined heat and power compressed natural gas carbon monoxide carbon monoxide Commonwealth Scientific and Industrial Technologies Organisation (Australia) Clean Urban Transport for Europe direct methanol fuel cell fuel cell fuel cell vehicle gas-to-liquids hydrogen internal combustion engine Japanese Hydrogen Fuel Cell Project Life-cycle assessment liquefied natural gas molten carbonate fuel cell million tons oil equivalent New Energy and Industrial Technology Development Organisation (Japan) nitrogen oxides natural gas phosphoric acid fuel cell proton exchange membrane fuel cell Renewable energy solid oxide fuel cell World Energy Network (Japan)

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EXECUTIVE SUMMARY
This SWOT analyses the EUs current competitive positioning in the evolving hydrogen economy and specifically assesses hydrogen and fuel cell technology development. The study has investigated how national capabilities have developed and are continuing to develop and the public and private sectors have adopted strategies to exploit the predicted commercial opportunities. It has drawn on results reported elsewhere in this report, which have provided an overview of past, current and planned future H2/FC RTD&D in the EU and other countries across the world. Overall, the review of activity has shown that the EU does hold a strong position in many technology areas. It has well developed H2/FC RTD&D activities and is supporting this with a substantial funding programme over coming years. Such activity is also being reflected at Member State level, though this is not uniform across the EU. Industrially, the EU has a significant number of companies that are contributing to all aspects of technology development and commercialisation. The knowledge and expertise base that is being developed has the potential of being exploited across the world. However, the EU does face strong and growing competition. The EUs main competitors are the USA, Japan and to a lesser extent Canada. Each of these countries has established H2/FC RTD&D support frameworks and developed long term technology roadmaps describing technical milestones over the coming decades. However, other countries assessed (Australia, China, India and South Korea) are significantly less well developed and are just beginning to develop H2/FC RTD&D activities and programmes. Our overview SWOT analysis is based on an assessment that has been carried out on a number of levels: Public awareness/demand management Policy makers response to drivers and barriers Basic research Publicly funded H2/FC RTD&D (including bibliographic assessment) System integration/demonstration activities Manufacturers, markets and applications Industry H2/FC RTD&D activity (including patent analysis).

The results of these assessments demonstrate that the results of the SWOT does not deliver black and white conclusions, rather it provides a flavour of the current situation and identifies issues that need to be expanded separately.

Public Awareness/Demand Management High level governmental backing of programmes and activities although crucial is not sufficient to ensure the effective take up of H2/FC technologies. Visions and roadmaps need to be supported by concrete actions. The findings of this study have highlighted gaps between strategic development of H2/FC RTD&D at national level and its translation into commercial opportunities. This is mainly true for the developing nations and those that have not traditionally had significant levels of R&D support for new and renewable energy technologies.

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There are a number of ways in which hydrogen economy policies are supported at different levels but their importance is to generate coherence and increase confidence in the coordination of approaches. North America and the EU as a whole perform well across all aspects. Nationally within the EU the situation is slightly different. No Member State has established a detailed technology roadmap for either hydrogen, fuel cells or both, though many have set up R&D programmes for both areas. A number of roadmap activities are now under way in France, Italy, Norway, Germany and the Netherlands. There is little evidence of any assessment of skills gaps that may exist at the national level nor programmes that may be established to address them. For the other countries, the situation is less well defined since they are only now creating the visions to support longer term planning. The creation of bodies representing both industry and government are acting as important focal points for national and regional activity. Despite comparable approaches in other countries, Canada stands out with the clearest approach for the development of fuel cells. It has identified national strengths and limitations (capability gaps, skills needs, etc.) and created the strategies needed to manage both effectively. Canada has accepted that it is not capable of contributing to the development of technologies across the whole supply chain and is eager to support the development of international links for its industry. The creation of Fuel Cells Canada underlines this approach. Fuel Cells Canada was perhaps the first to act as both co-ordinator and international promoter of domestic industries. In addition, Canada also led the field in realising the strength of clustering companies and providing the finance to support this. There are a number of clusters spread across Canada, but predominantly in the west around Vancouver and Ballard. These have acted as catalysts for commercial collaboration both within Canada and internationally. On the other hand, other bodies such as the US Fuel Cell Council and World Fuel Cell Council have had stronger advocating roles. In Europe, apart from national hydrogen associations that have been established for a number of years, there are now an increasing number of organisations focussed solely on fuel cells. These include Fuel Cells UK, Appice (Spain) and PACo (France), who have varied roles including national co-ordination of industry efforts, public funding and international promotion. A summary comparison of political strengths and weaknesses across all countries examined is shown on the following page. This is complemented by a summary comparison of the strengths and weakness of other drivers and factors environment, energy sector, socioeconomic, etc. across all companies examined. An overall summary of findings is produced separately as a stand-alone document to provide quick insight in, and relying fully on, the wealth of information collected, analysed and presented thoroughly in the present report.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Political Strengths and Weaknesses.

Region Variable
Political Champion Policy Co-ordination Drivers Roadmap

EU
President Prodi Being developed. Limited at national level except regionally in Germany Well defined Being developed. Limited at national level. Substantial under FP6. National limited except regionally in Germany. Some incentives at national level 13MW Development of EUwide harmonised roadmap (supported by HyNet and HyWays) IPHE Member - Not all Member States Some national level both for hydrogen and fuel cells

USA
President Bush Cross Departmental Well defined Documented for hydrogen and fuel cells Rolling 5-year programme in place Active 40MW

Canada
None named Cross Departmental Well defined Documented for hydrogen and fuel cells Some established programmes. Stated commitment to increased spending. No specific activity Limited Canadian technology mainly exported

Japan
None named Cross Departmental Well defined Documented for hydrogen and fuel cells Series of programmes but no long term programmes identified No specific activity Not identified

Australia
None named Under examination Well defined Early stages of development Some established programmes. Stated commitment to increased spending. No specific activity Limited

China
None named Under examination Identified None to date Programmes date back to 1950s, though currently fragmented Identified (Transport) Limited

India
None named Under examination Identified None to date FC-Programmes date back to 1980s, though currently fragmented. Identified (Transport) Limited

South Korea
None named Under examination Identified None to date FC-Programmes date back to 1980s, though currently fragmented. No specific activity Limited

Government RTD&D Funding Public Procurement Installed Capacity

Strategic Actions

IPHE Member

Cluster development IPHE Member

IPHE Member

Detailed review of current position. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Industry Association Support

Both for hydrogen and fuel cells

Both for hydrogen and fuel cells

Both for hydrogen and fuel cells

Hydrogen

None identified

Hydrogen

None identified

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Other Areas Strengths and Weaknesses.

Region Variable
Environment

EU
Strong drive for clean technologies

USA
Strong drive for clean technologies. Commercial focus Well established energy infrastructure Non-grid connected areas offer demand Large skills base High quality science/ engineering base Strong industrial competitiveness Access to venture capital

Canada
Strong drive for clean technologies Well established energy infrastructure Non-grid connected areas offer demand Large renewable energy resources Small skills base High quality science/ engineering base Access to venture capital Increasing exports and employment

Japan
Strong drive for clean technologies

Australia
Identified need for clean technologies

China
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy Lack of trained staff Lack of promotional activity Large educated population. Low manpower costs

India
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy Lack of promotional activity Large educated population focus on training Low manpower costs

South Korea
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy

Energy

Well established energy infrastructure Large skills base no understanding of skills gaps High quality science/ engineering base. Strong industrial competitiveness

Lack of natural resources

Lack of natural resources

Social

Large skills base High quality science/ engineering base Strong industrial competitiveness Recent economic performance

Small skills base Lack of trained staff Plans to increase education No factors identified

Lack of trained staff Low manpower costs Lack of supporting fiscal measures Growing advanced industry base Strengthsautomotive and electronics Fragmented H2/FC activities Incumbent State run power industry

Economic Financial

Commercial Industrial

Industry base broad & deep across supply chain Industry clustering (Germany)

Industry base broad & deep across supply chain Increasing sales

Globally recognised as leaders in certain technology areas Industry clustering

Strengthsautomotive and electronics

Limited industrial activity, particularly fuel cells

Growing industry base Low advanced manufacturing Weak industrialisation

Growing advanced industry base Low advanced manufacturing Weak industrialisation

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Basic research It is generally accepted that the USA supports the largest R&D programmes, but figures are not readily available for the purposes of this study to accurately assess the differences between countries. Consequently, the comparisons made in this study are at a high level and provide only a broad understanding of the current and future competitive positioning of EU H2/FC RTD&D. A summary of the public R&D funding for H2/FC technologies and the number of organisations and people employed in the industry is presented below:
no. organisations1 USA Canada Japan China India South Korea EU Germany UK Italy Denmark Finland Norway Sweden Switzerland 350 100 70 20 20 30 30 55 2,800 850 850 210 100 150 100 400 60 350 no. employees1 3,800 2,400 + 300 Public R&D funding for next 5 years2 US$1.7bn (1.4bn) CA$1.1bn (700m) 31bn + 100bn (1.0bn) 100m 20m Won 300bn (220m) 240m 70m + 400m 120m 90m 40m 20m 30m 35m 40m Emphasises SOFC Distributed energy Nat FC Tech Plan FP6 + Quick Start Federal + States METI + NEDO MOST-programmes Bush initiative

(1) Source: Fuel Cells Today, Fuel Cells Canada, Business Communications (2) Note: R&D budgets are extrapolated in many cases from current H2/FC spending and are necessarily inaccurate

The US H2/FC R&D activities are spread from fundamental research through to system development and demonstration. Support is available for the uptake of new technologies once they are developed, which is primarily focused at demonstrations, especially of vehicles. Support is also provided for educational programmes for raising public awareness and spreading commercial best practice. Each programme has well defined parameters aimed at different aspects of the technology development value chain. Many of the programmes identified in this study do propose elements that drive the uptake of new technology. Only in the USA does this appear to have been to be taken to the level that there are substantial funds available from the public purse to support public procurement and exploitation that is not simply a demonstration project. The EU as a whole holds a relatively strong position with respect to other countries and is by no means weak as compared to the USA. The recent announcement of substantial funding to support H2/FC RTD&D (2.8bn over 10 years) has firmly established the EU as a leader of developments. When combined with Member State level activity, which focuses on national xiii

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

competencies, this position is enhanced. However, caution must be taken in understanding precisely where much of the intellectual property lies that forms the basis of this European activity. Basic research in hydrogen production seems to concentrate currently on steam reformation. Electrolysis used to be as active a research area but is now declining. The USA is well presented in all major hydrogen production technologies: steam reforming, electrolysis and gasification. In photocatalytic, biochemical and thermochemical hydrogen production, Europe is very much behind Japan. Japanese are increasing their contribution to these technologies also. The number of publications devoting to various technologies to store hydrogen has increased rapidly during the last few years. Metal hydrides seems to be the hottest research area. China is clearly the most prolific publisher in the world. Both Korean and Indian organizations have published more in the field than organizations from any European nation. In hydrogen storage technologies, Europeans can reach number two position only in the liquid hydrogen storage and alanates publications. However, in recent years both Japan and South East Asian nations have increased their publishing effort in the liquid hydrogen storage much more that the European ones have. If this trend continues, Europe will lose its number two position in just a few years. In conversion, PEMFC is the most important technology worldwide; the share of patents for PEMFC has increased significantly especially in recent years. Japan focuses heavily on this technology, whereas the USA and the EU-15 have a broader research approach. Europe is the leading publisher of the SOFC related research, the most active nations being England, Denmark and Germany. In direct methanol related fuel cell research, Europe is the leading publisher together with the USA. System Integration/Demonstration Activities Demonstration programmes are a useful practical indicator of how technology development is progressing towards commercialisation. This is not necessarily related to the country in which the demonstration takes place and therefore it is not necessarily a measure of competitiveness. For example, Canadian technologies are being demonstrated almost everywhere but in Canada. The lack of demonstrators in Canada only exemplifies a policy choice targeting the promotion of components and systems developments, not a lack of Canadian competitiveness in this area. Outside the major players of North America, Japan and the EU, there is little industrial activity. However, it is important to understand this in context, since the H2/FC industry as whole is not large. The possibility of strategic support in any of the minor countries such as China, South Korea or India could have a significant impact. North America has almost the same number of installed units as its main competitors combined. Japan and the EU have similar numbers of installations, but if this is considered in terms of geographical size or population, then Japan has a significant lead. In terms of installed stationary capacity, the USA leads efforts though this is predominantly using PAFC and PEM. The situation regarding MCFC, SOFC and AFC is more even when compared to the EU. Japan does have a number of installations, but not to the US levels, and Canada has highlighted that this is an area where it has not provided sufficient support in the past. xiv

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

In the USA, a minor but significant budgetary change is the increased emphasis on safety codes and standards, which are an important requirement for future commercialisation. A tripling of the budget reflects the longer term aspirations of the US Government in ensuring that the potential barriers to market penetration are addressed at an early stage. Manufacturers, Markets and Applications Electrolysis and steam reforming are currently the most common production methods and pressurised hydrogen the most common storage technology. However, this does not accurately assess areas that are being researched, but represents how the companies are using their technology in collaboration with the fuel cell industry. There are a significant number of international commercial partnerships across technology and application development areas. How these relationships affect a true assessment of industrial activity across the EU is difficult to determine and should be examined in more detail. Although these partnerships provide the opportunity to make commercial progress, they do have the potential to restrict the development of made in EU technologies. There are short term benefits that these partnerships offer, but in the long term there is a risk that the EU could provide low value expertise that could easily be transferred to third countries such as China and South Korea. There is a need to assess H2/FC RTD support in terms of a companys overall RTD support. This is straightforward for small companies, whose sole activity is the development of H2/FC technologies. However, for larger companies the significance of this activity may be much smaller in respect to its other activities. An understanding of this would support a more transparent assessment of the priority that H2/FC RTD&D is taking. In Europe there is just one independent, publicly quoted fuel cell developer, whereas around 12 companies in North America have a market capitalisation in excess of US$3bn (2.5bn). Moreover, in Europe FP6 programmes are dominated by large corporations and provide max 50% funding, while in the USA 80% for R&D is not unusual. The mobilisation of this level of support provides strong backing to future R&D plans. Traditionally, Japanese engineering and technology industries have had very close relationships with Government funding programmes. The same is true for hydrogen and fuel cells. Japans established industries are leading the way in development of new technologies and concepts, particularly the automotive manufacturers and electronics companies. For example, the big push in hybrid engine technology believed to be the major stepping stone towards FC and H2 in transport came from Japanese manufacturers Toyota and Honda. A summary comparison of technological strengths and weaknesses across all countries examined is shown on the following page:

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Technological Strengths and Weaknesses.

Region Variable
Codes and Standards

EU
National level collaboration not all Member States Production General Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Developed Generally more fragmented at national level (except regionally in Germany) Large and accessible Advanced H2/FC Minor compared to other energy technologies

USA
Strong lead Production (Steam reforming) Storage - General Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Well developed blue sky through to demonstrators Large and accessible Advanced H2/FC Minor compared to other energy technologies

Canada
Strong lead

Japan
Strong lead Production (Steam reforming, Photocatalytic, Bio- and Thermochemical) Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Well developed blue sky through to demonstrators Large and accessible Advanced H2/FC Minor compared to other energy technologies

Australia
No substantial activity

China
No strategy Production Limited Storage Metal hydrides, Nanomaterials Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC Transport and remote power None

India
No strategy

South Korea
No strategy

Hydrogen

Production (hydrolysis) Storage Limited to traditional Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Strongly Developed Developed Poor level of demonstrators Limited Advanced H2/FC Minor compared to other energy technologies

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Limited

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC Transport and remote power Limited

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Limited

Fuel Cells Application areas of interest International Collaboration

RTD&D Structure

Uncoordinated

Uncoordinated

Uncoordinated

Uncoordinated

Research Base Public Private Collaboration General RTD&D Focus

Limited Limited H2/FC nascent

Large and accessible Limited H2/FC nascent Other R&D Priorities

Large and accessible Limited H2/FC nascent

Large and accessible Limited H2/FC nascent

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The majority of H2/FC activity across the EU is focussed in Germany and to a lesser extent in the UK. Germanys strength is characterised by high concentration of fuel cell and hydrogen technology developers and demonstration projects and by the highest number of H2/FC patents produced. Germany exemplifies the strengths required to build a competitive industry and mimics many of the strengths that are being exhibited by the EUs main competitors. This SWOT analysis has enabled a clearer picture to emerge of how the EUs H2/FC RTD&D current activities compare. The EUs internal capability and organisation in terms of strengths and weaknesses on H2/FC RTD&D are summarised as follows:
EUs strengths and weaknesses on H2/FC RTD&D INTERNAL Strengths High level ministerial support Developing cross department policies Well defined drivers Development of an EU wide harmonised roadmap (supported by the EU project HyNet and HyWays) fostering and encouraging individual national roadmaps Substantial R&D budgets National R&D programmes (particularly in Germany at both national and regional levels). Some incentives to support technology adoption at national level Demonstration programmes Establishing international codes and standards National bodies are collaborating Kyoto targets (EU and national level) Clean air targets (EU and national level) Recognition of longer term requirements for new and renewable energy resources Access to large skill base High quality scientific and engineering base suitable for future commercial needs Industrial competitiveness (historic) Competitiveness as an issue regarding H2/FC technologies High transport fuel costs SOFC, PEM, MCFC (partly using US codeveloped technology) Hydrogen technologies generally National R&D institutions publishing peer reviewed reports Patents (mainly Germany) Good grasp of CHP potentials Well developed system integration know how Industry base covers all technologies Public private partnerships Components industry (materials, volume manufacturing) Industry clusters (predominantly in German) Weaknesses Currently no incentives for public procurement Lack of understanding of current strengths and weaknesses Uneven spread of expertise and activity across EU EU FPs previously too inflexible/slow to respond to changing R&D needs National priorities vary (although wider research approaches may help identify the best technologies) Lack of pan-EU co-ordination of effort H2/FC lags other energy R&D funding Lack of national roadmaps Issue of pan-EU co-ordination Differing priorities across EU-MS

Political

Regulatory Legal Environmental

Socio-Economic

Education/raising awareness minimal across whole EU (large variances) Addressing needs of Accession Countries Issue of pan-EU incentives vs national frameworks Demonstration projects that exploit EU developed technologies AFC, PAFC No evidence of capability from Accession Countries Reducing costs of technology 90% of EU patents from Germany Knowledge of industry shape unknown (what is influence of non-EU companies) Making technologies competitive Access to venture capital funding to support industry

Technological

Commercial Industrial (Financial)

The external (non-EU) factors in terms of opportunities and threats on H2/FC RTD&D are summarised as follows:

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

EUs opportunities and threats on H2/FC RTD&D EXTERNAL Political Regulatory Legal Environmental Socio-economic Opportunities Support for the creation of markets International trade and R&D collaborative agreements Development of international regulations, codes and standards Drive international agenda towards adoption of clean technologies Filling knowledge gaps (complementing existing capability) International partnering to develop technologies Introduction of technology demonstrators Inwards/outward technology and knowledge transfer Fuelling networks Sustainable transport (two, four-wheels) Domestic/district combined heat and power Remote, auxiliary, emergency power applications Sustainable hydrogen production (all routes) Hydrogen storage (all technologies) System integration (balance of plant technologies, etc) Hybrid systems Widely existing natural gas pipeline grid Cost competitive application of technologies for niche markets Patenting Licensing technology All technology areas Mergers and acquisitions Threats US taking lead on global developments (e.g. IPHE) Federal/Member State policies not yet harmonised Low cost workforce: manufacturing, R&D Off-shoring by EU companies Complexity of forming a cross-border consensus Other renewable technologies adopted Competitors establish strong partnerships Innovation lags competitors PEM (Canada, US, Japan) PAFC (US, Japan) SOFC (Japan, US) MCFC (US, Japan) H2 production (Japan, US) H2 storage (US, Japan, other Asia) All technologies - longer-term (China, South Korea, etc.) Transport applications (US, Japan, Canada) Small stationary (US, Canada, Japan) Large Stationary (US, Japan) Portable application (Japan, US All applications longer term (South Korea, China, etc.) Domestic infrastructure creates niche opportunities not accessible to overseas companies Competitors establish lead industries Support from financial markets concentrated on competitors Failure to meet market needs Commercial scale manufacturing Mergers and acquisitions Emergence of new players China, India, South Korea

Technological

Commercial Industrial (Financial)

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

1
1.1

INTRODUCTION
BACKGROUND

Hydrogen and fuel cells stand out as interesting medium to long-term options for solving the ever-increasing demand for energy and at the same time address the concerns related to peoples health, the environment and energy security. Opinions differ broadly when it comes to outlining roadmaps, though. Economic interests at stake are enormous and all major global players are investing in RTD&D. Institutional players are trying to keep track of this fastevolving scene. International cooperation is considered key to accelerate progress in fuel cell and hydrogen technologies. The European Commissions High Level Group for Hydrogen and Fuel Cells established in October 2002 recently recommended creating a Hydrogen and Fuel Cell Technology Platform to ensure coherence in strategic approach and action, in line with the building of the European Research Area in non-nuclear research energy. The High Level Group for Hydrogen and Fuel Cells has indeed proposed five actions to a hydrogen future in Europe: Creation of a Political Framework that enables new technologies to gain market entry Definition and implementation of a European Strategic Research Agenda Definition and implementation of a Deployment Strategy Elaboration of a European Roadmap for hydrogen and fuel cells Creation of a European Hydrogen and Fuel Cell Technology Platform/Partnership steered by an Advisory Council to stimulate and implement these actions1.

Limited time and resources have been dedicated so far to perform comparative analyses of hydrogen and fuel cell initiatives worldwide so as to assess the EU competitive and precompetitive position vis--vis its main competitors. Particular attention is raised by the USA, which is fast moving towards a leading role in the area of hydrogen-powered fuel cells and hydrogen RTD&D. Indeed, the US proposed in April 2003 at the International Energy Agency the establishment of the International Partnership for the Hydrogen Economy aimed at fostering collaboration in pre-competitive R&D. The partnership kicked off in November 2003. To date, Australia, Brazil, Canada, China, France, Germany, Iceland, India, Italy, Japan, South Korea, Norway, Russia, the UK and the USA, as well as the European Commission have signed up to the agreement, which aims to leverage limited resources to resolve technical and regulatory issues. Additionally, the US department of Energy has adopted a detailed multi-year RD&D plan based on the National Hydrogen Energy Roadmap adopted in November 2002. The agreement on the Fuel Cell Annex to the US-EU Non-Nuclear Energy Co-operation Agreement between the US and the EU in June 2003 highlights the importance of bilateral co-operation in the development of hydrogen as an energy source. Other countries or grouping of countries are actively supporting RTD&D in the area of hydrogen and hydrogen-powered fuel cells: the Canadian Office of Energy R&D, which coordinates the Government of Canadas participation in international energy R&D, the Energy
1

Hydrogen Energy and Fuel Cells. A Vision of Our Future, Interim and Summary Reports, High level Group for Hydrogen and Fuel Cells, June 2003.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Working Group of the Asia-Pacific Economic Co-operation2 as well as the Japanese Government are certainly worth mentioning in this regard. The International Energy Agency (IEA) is playing an important role as an international forum for discussions and policy-making. Background studies such as Automotive Fuels for the Future and Bus Systems for the Future produced by the IEA for mobile applications provide useful input into an overall analysis of where technologies stand. Additionally, the IEA through the newly created Hydrogen Co-ordination Group is compiling an inventory on on-going RTD programmes and activities relevant to hydrogen and covering all applications which will be ready in 2004. Nonetheless comparative information and analysis on where public and private RTD&D is heading to and how are missing in an area in which international cooperation is considered to be very important to accelerate progress. Philippe Busquin presented on 18 March 2004 current and future key EU initiatives for a transition from a fossil fuel-based economy to a hydrogen-based one. Some 100 million of EU funding, matched by an equivalent amount of private sector support, is currently being awarded to research and demonstration projects for hydrogen and fuel cell after the first call for proposals of the 6th EU Research Framework Programme (FP6 2002-2006). This will be reinforced via further calls for R&D proposals worth a public and private sector support of 300m (EU funding 150m). The European Growth Initiative earmarks an indicative 2.8 bn public and private funding for these partnerships over the next ten years.

1.2

OBJECTIVES

The study is aimed at gathering a comprehensive body of knowledge about on-going and planned RTD&D in the area of fuel cells and hydrogen for generic, transport-oriented and stationary programmes and activities outside the EU with the purpose of understanding the current situation of international competition and assessing the position of the EU on the world scene. More specifically, the objectives of the work are:

Provide an overview of existing national and company strategies and other longer term expectations to hydrogen energy worldwide; Gain insight of the interaction between public and privately-funded RTD&D; With patent and bibliographic analysis, analyse the diffusion of and describe trends in hydrogen and fuel cells technology, with particular emphasis on the way the research is accumulating; Analyse regional/national characteristics of hydrogen and fuel cell research and technological development for the USA, Canada, Japan, Australia, China, India and South Korea; Identify strengths, weaknesses, opportunities and threats of the hydrogen and fuel cells RTD&D in the EU with respect to that of the USA, Canada, Japan, Australia, China, India and South Korea with foreseen trend development of these; Summarise, synthesise and present all conducted work for a readable and communicative report.

The Asia-Pacific Economic Co-operation (APEC) comprises Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the United States of America as founding members as well as Chile, China, Honk Kong, Mexico, Papua New Guinea, Peru, Russia, Taiwan and Vietnam.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Findings are organised according to different levels of analysis and are geared towards providing IPTS with suitable material to outline sound action lines for EU policies in the field of transport applications of hydrogen and fuel cells RTD&D. The study examines publicly and privately funded research, the number of scientific research publications and the number of international patent registrations and international standards. Findings are aimed at providing direct input to the recently launched Fuel Cell and Hydrogen Technology Platform/Partnership and useful information to the Technology Platform ERTRAC (European Road Transport Advisory Council).

1.3

APPROACH AND METHODOLOGY

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is an established method for assisting the formulation of strategy. SWOT analysis aims to identify the strengths and weaknesses of an organisation and the opportunities and threats in the environment. Having identified these factors strategies are developed, which may build on the strengths, eliminate the weaknesses, exploit the opportunities or counter the threats. SWOT Analysis provides a snapshot of how resources and competencies stand up in the broader environment in this case examining how the EUs H2/FC RTD&D activities compare to those of major competitors in the evolving energy and environment marketplace. The framework of the SWOT analysis draws on the information collected within this study on who is doing what globally in the H2/FC RTD&D. From this we have assessed: Internal (EU) capability and organisation in terms of strengths and weaknesses as well External (non-EU) factors in terms of threats and opportunities.

SWOT analysis has its origins in the 1960s.3 In more recent years SWOT analysis has been seen as somewhat outdated and superseded by resource-based planning4 and competencybased planning5. The resource-based view focuses on the internal resources, capabilities and core competencies of the organisation, and advocates building strategies on these foundations to assure the competitiveness of the organisation and the attractiveness of the industrial sector. Likewise the competency-based view identifies an organisations competencies as the foundation for strategy development. These more contemporary approaches to strategy formulation are developments of the internal appraisal of SWOT analysis rather that a replacement for it. The advantage of SWOT analysis is its attempt to connect internal and external factors to stimulate new strategies. Hence, resource and competency-based planning can enrich SWOT analysis by developing the internal perspective whilst keeping internal and external perspectives in play simultaneously. Rather than seeing SWOT analysis as an outdated technique therefore, it is possible to see it as a firm foundation for resource and competency-based planning.

3 4

Learned, E.P., Christensen, C.R., Andrews, K.E., Guth, W.D., 1965. Business Policy: Text and Cases. Irwin, Homewood, IL. Wenerfelt, B., 1984. A resource-based view of the .rm. Strategic Management Journal 5, 171180. Grant, R.M., 1991. The resource-based theory of competitive advantage. California Management Review 33 (3), 114135. Ulrich, D., Lake, D., 1990. Organizational Capability: Competing from the Inside Out. Wiley, New York.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

We have not assessed commercial opportunities specifically. Currently, market opportunities for both fuel cells and hydrogen are widely reported with predictions for usage based on the expected timescales for the technologies to mature. For the purposes of this study, these commercial opportunities are open for all, on the assumption that globalisation/open markets will remain so for the foreseeable future. This SWOT analysis does not go into technological detail, but provides a more general assessment of past, current and future H2/FC RTD&D and highlights areas where greater depth of analysis and understanding may be valuable in the future. The SWOT analysis has been performed using three streams of information: Screening of H2/FC publicly and privately funded RTD&D programmes in the EU, EU Member States, Norway, USA, Canada, Japan, Australia, China, India and South Korea, along the following categories: (a) public programmes: programme owner, budget, time period, research topics, name and reference (Annex I); (b) private programmes: company, visions, targets, future key research areas, main action points, name and reference (Annex II); A bibliographic analysis considering H2/FC-related scientific articles and conference papers appearing in Compendex and Inspec databases since 1994. The phases of hydrogen production, storage, conversion and use form the backbone of the analysis showing the trend in the number of publications and further detailing specific technologies and authorship rates per world region (Annex III); A quantitative analysis of H2/FC patenting in the considered countries and world regions covering World Patents and European Patents and subsequently analysed per technology trend and geographic trend. (Annex IV). The preliminary findings of the SWOT analysis were commented by international experts in the field and further refined at an expert workshop held in June 2004. The report presents sets off by providing the reader with an overview of the main aspects characterising the hydrogen economy and then moves on to analyse: The European policy context, including EU and Member States strategies; A characterisation of H2/FC RTD&D outside the EU The SWOT analysis of H2/FC technologies in Europe, based on the information and analyses indicated above, and; A brief discussion of options for a European H2/FC strategy.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

2
2.1

HYDROGEN ECONOMY FRAMEWORK


HYDROGEN ENERGY SYSTEM

In modern innovation theory, innovation is no longer considered as an isolated event in space and time but a path-dependent process, which is influenced by various actors with different skills and knowledge. Innovations always take place in a context that has a unique history characterised by the interdependent development of various technologies, institutions and actors. Hence, in analysing firm behaviour or formulating public policy with respect to innovation, it is necessary to the level of the system as a whole. To reach these goals, it is suggested that the international position of EUs research and technological development and demonstration on hydrogen and fuel cells is assessed according to four critical development areas for technology adaptation. These areas include: Basic research System integration/demonstration activities Manufacturers, markets and applications stationary, transportation and portable Public awareness/demand management.

The hydrogen energy system is depicted in Figure 1.


Figure 1 Hydrogen Energy System

Hydrogen Production Hydrogen is an energy carrier that can be produced from a range of sources. Currently, nearly 96% of all hydrogen production uses fossil fuels. The steam reforming of natural gas is the most used process, used in more than 90% of total hydrogen production. It is possible to use heavier hydrocarbons, such as coal, in association with partial oxidation processes, but the capital investment required is higher for this solution than for the steam reforming.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Most hydrogen is currently produced in refineries as a co-product of catalytic reforming, an important stage in the formulation of gasoline. The implementation of electrolytic hydrogen technology, which costs significantly more, remains marginal. Steam reforming and oxidation of fossil fuels involve significant CO2 emissions. Therefore, the focus has been on producing hydrogen using emerging technologies that do not emit CO2. These include: Coal gasification with CO2 capture and storage Natural gas reforming with CO2 capture and storage Electrolysis of water with carbon-free sources of electricity Cogeneration in a high temperature gas-cooled nuclear reactor Biomass gasification.

Breakthrough technologies, such as photoelectrochemical water splitting and algal systems for water production, are speculative and unlikely to be practical before 2050. Distribution Hydrogen is more expensive than conventional fuels partly because of relatively high distribution and retail costs. Hydrogen is a very light gas, which is a handicap for storage and transmission. It is usually delivered compressed in cylinders or pipes, or else as a liquid (253C). The most commonly used system of transmission is the pipeline, with the world network totaling over 2,500 km. Most pipe systems are located in Europe (1,500 km) and the United States (900 km). Pipeline transport of hydrogen involves relatively high pressures (between 10 and 100 bars) and may require the use of special materials. Pressure at the fuel station needs to be increased to 600-800 bars for gaseous on-board storage. Such pressurisation is energy-intensive, requiring between 0.05 and 0.1 GJ electricity per GJ hydrogen (and up to 0.15 GJ if the hydrogen were delivered at atmospheric pressure). The International Energy Agency gives estimate for unit supply cost of nine sources of hydrogen. These estimates include production and distribution to the retail customer. They reflect costs for a system with full economies of scale and cost reductions achieved through progressive improvements in commercial scale production (technology learning). The technology learning effects depend on there being sufficient installed capacity. If installation of each type of capacity were to be limited, these cost reductions could not be counted upon. Natural gas or coal with CO2 capture and storage is the least costly source ($12-$18/GJ). The next least costly group of technologies consists of biomass, onshore wind and nuclear, all within a range of $14-$30/GJ. The most costly technologies ($27-$82/GJ) are hydrogen production from electrolysis using offshore wind, solar thermal, and solar PV.6 In the future, gains should be possible at the hydrogen distribution. Research undertaken in the United States shows that non-negligible gains could be made by developing small hydrogen production units located at service stations. This would also, at least initially, obviate the need for heavy investment in a dense hydrogen pipe network. The US Department of Energy has set an objective of $12.50/GJ by 2010 for this type of system.

IEA. 2003. World Energy Investment Outlook 2003, Paris: OECD.

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The distribution and retail costs depend on the configuration of the hydrogen supply system and on the scale of hydrogen demand. If there is low demand (such as in a transition period), decentralised production and/or delivery of hydrogen by trucks to refuelling stations may be the best option: the cost during the transition period to a full-scale hydrogen economy is one of the key problems. Over the longer term, a hydrogen pipeline distribution system would be a less costly solution; and it would also be necessary for CO2 capture. The energy efficiency of central production would also be significantly higher and the investment costs lower. Storage There are currently two storage alternatives under review: the storage of compressed hydrogen at 350 or 700 bar and the storage of liquefied hydrogen (253C). Most automobile manufacturers are leaning towards high-pressure storage for their demonstration operations. However, neither of these solutions is fully satisfactory. Using compressed hydrogen storage limits vehicle range. Difficult for the general public to implement, storage in liquid form is also energy-intensive: at best, the operation consumes 35% of the energy available in the tank (not counting the energy required to produce electricity for the liquefaction unit). While liquid and gaseous storage are proven technologies, binary metal hydrides and carbon nanotubes are still at a laboratory stage. On-board hydrogen storage is a high-cost factor. The most favourable costs to be announced are in the vicinity of 1,000/kg of stored hydrogen. Some sources mention values that are four times as high. But it would take 4 to 5 kg of hydrogen to ensure a satisfactory range (400 to 500 km) to a vehicle. In other words, it would cost something like 4,000-5,000 to store hydrogen on board a HFCV. Mass production would reduce the tank cost, but only in the range of 200-500 per kg of hydrogen, according to the US Department of Energy. From a strictly economic perspective, it is hard to choose between the on-board storage solutions (compressed or liquefied hydrogen). For compressed hydrogen technologies, the well to fuel tank cost ranges from 20 to 50/GJ. The most economical solution uses natural gas as the raw material; the cost of applications based on coal and biomass is 30% and 50% higher, respectively. The highest costs (35-50/GJ) are associated with the electrolysis of water. Of course, this ranking could change in the event of tension affecting natural gas prices. By comparison, conventional oil-based motor fuels obtain a well to fuel tank price of 8/GJ, given a crude price of $25/bbl7. Seeking to get around the constraints associated with hydrogen storage/distribution, several research teams set out to adapt fuel cell systems to run on liquid motor fuels (e.g. methanol or gasoline) that would be easier to store on board. They did this by associating to a fuel cells an hydrogen production unit (reformer) compatible with these motor fuels. These projects have encountered major development difficulties: the start-up time is still long (several minutes); energy consumption is high at start-up; the management of transient operating conditions continues to be difficult; and the problems related to the emission of CO2 and pollutants (NOx, etc.) have not been solved. In August 2004, the US Department of Energy stopped financing research programs in the area. General Motors had previously announced that it was abandoning its research activities in this field.8
7 8

Well-to-wheels analysis of future automotive fuels and powertrains in the European context, EUCAR, JRC, CONCAWE, November 2003 DOEs original intent in funding development of fuel cell vehicles (FCVs) powered by hydrogen produced by reforming gasoline on-board the vehicle was to bridge the gap from todays gasoline/dieselpowered ICE engines to higher efficiency FCVs powered by hydrogen produced in distributed or central fuel processing stations and stored on-board the vehicle. The efficiency gap has been largely bridged by

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Conversion Fuel cells convert oxygen and hydrogen into electricity. While the use of fossil fuels releases CO2 emissions into the atmosphere, expected improvements in the efficiency of fuel cells will result in much lower emissions compared to conventional coal or gas plants. Moreover, the CO2 released is in concentrated form, which makes its capture and sequestration much easier. A major advantage of fuel cells is their flexibility. They come in different sizes, from a few watts for specific applications to many megawatts, suitable for larger-scale electricity generation. The future success of fuel cells is not solely intertwined with the concept of a hydrogen economy. SOFC technology is proving that current hydrocarbon-based fuels can be used efficiently and with minimal resulting emissions. Factors that limit their use now are their high capital cost compared to conventional alternatives, their relatively unproven status and limited commercialisation, and the fuel choice for hydrogen production and its cost. There are many fuel cell technologies, but the most prominent are: Polymer Electrolyte Membrane Fuel Cells: Polymer electrolyte membrane (PEM) fuel cells structure is based on a Teflon backbone. Because of this, they are relatively strong, stable substances. PEM fuel cells typically operate at temperatures no higher than 60C to 80C because of the membranes structural limitations. Operating PEM stacks at higher temperatures (120C for transportation and 150C for stationary applications), however, would yield significant energy benefits. Heat rejection in fuel cell systems is easier at higher temperatures, permitting the use of smaller heat exchangers. A number of research groups are expected to report on polymer electrolyte membranes that are able to work efficiently at temperatures up to 250C. PEM fuel cells are widely considered the technology of choice for passenger cars. Market analysts9 predicts that PEM fuel cells will represent a North American market value of about $340 million by 2007. This represents about 1.7 times the estimated value of the SOFC market for 2008. Solid Oxide Fuel Cells: These fuel cells use ceramic materials, which can achieve very high operating temperatures, reaching 1,000C. The electricity-generating efficiency of these fuel cells can reach 50% and, combined with a gas turbine, efficiencies can reach 60% to 70%. The conversion of fuel to hydrogen takes place inside the cell. The use of solid materials is advantageous because it avoids electrolyte leakage and offers greater stability. The high operating temperature requires costly ceramic materials. Research is continuing to produce materials that would reduce costs. There are several projects at the demonstration stage. Direct Methanol Fuel Cells: In Direct Methanol Fuel Cell, liquid methanol is oxidised directly at the anode. Recent advances in direct methanol fuel cell research and development have been substantial, with the direct methanol fuel cell achieving a significant fraction of the performance of direct hydrogen/air fuel cells. However, there are critical obstacles to be overcome. To achieve high current, the necessary amount of expensive platinum catalyst is still much greater than the amount used in hydrogen/air polymer electrolyte fuel cells. Methanol fuel crosses through the membrane from the anode to the cathode; this undesired methanol crossover decreases the performance and wastes fuel. Importantly, a direct methanol fuel cell system does not require a hydrogen storage system or a reforming subsystem. This advantage, in terms of simplicity and cost,
hybrid (battery/ICE) technology available today and in production at performance levels comparable to the projected performance of mature FCV technology operating on reformed gasoline. BCC Inc. report E-122: fuel cells for large scale applications

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

means the direct methanol fuel cell system presents an attractive alternative to hydrogen or reformate-fed systems. In addition, a direct methanol fuel cell is considered a zero emission vehicle. Phosphoric Acid Fuel Cells: These were the first fuel cells to be commercialised, with more than 200 units in operation worldwide. Phosphoric acid fuel cells use liquid phosphoric acid as the electrolyte and operate at temperatures between 150C and 200C. Their electricity generation efficiency is relatively low, around 40% or less. If used in combined heat and power (CHP) mode, the efficiency can rise to 80%. Hydrogen comes from an external source, typically natural gas. These fuel cells now cost around 4,000 per kilowatt. Because of their low efficiency, these systems are likely to be replaced in the future by more advanced technologies, offering much higher efficiencies. Molten Carbonate Fuel Cells: These fuel cells use lithium-potassium carbonate salts, which are heated to around 650C to conduct the ions to the electrodes. Because of this higher operating temperature, molten carbonate fuel cells can achieve much higher electricity-generating efficiencies, approaching 60%, and 85% if they produce heat along with electricity. The reform process takes place inside the cell, which eliminates the need for an external reformer and therefore reduces costs. Another advantage is that the electrodes can be made of nickel, which is cheaper than the platinum used in phosphoric acid systems. The main disadvantages are related to the durability of the stack, which is the electricity production unit of the fuel cell. Commercially available molten carbonate fuel cells are expected to have a stack lifetime of five years with 25 years for the balance of plant. Alkaline Fuel Cells (AFC): operate at approx. 80C and have been extensively used in spacecraft and submarines. They have been tested to drive road vehicles such as minivans, using hydrogen as fuel.

Stationary applications The major challenge facing fuel cells is their high initial cost. The cost of a fuel cell today is in the order of 4,000 per kW or more. A diesel generator or gas turbine would cost three to ten times less. The development of less costly materials will help reduce costs. The conversion of fuel to hydrogen inside the cell will also lower costs. Moreover, higher operating temperatures allow for the exhaust heat to be used for space heating, water heating or additional power production. The fuel cells that are expected to achieve commercial viability in electricity generation first will involve the reforming of natural gas. The International Energy Agency estimates that almost all the fuel cells in use for electricity generation by 2030 will be for distributed power generation. Fuel cells are expected to become competitive in distributed generation when capital costs fall below 1,000 per kW, just over a quarter of current costs, and their efficiency approaches 60%. First pre-commercialized SOFC systems are expected to reach the market in 2004-2005 depending on the individual markets: mainly larger stationary for North America (such as Combined Heat and Power CHP or power plant) and residential systems for Europe. Other emerging markets include Japan, Australia, China and South Korea. Automotive applications The costs of fuel cell systems and vehicles constitute a major uncertainty. Today, the cost of fuel cells manufactured in a limited series exceeds 3,000/kW, compared to 30-50/kW for mass-produced conventional ICEs. Most studies suggest that fuel cell cost will decline substantially with mass production and learning. The required fuel cell output in kW terms is 9

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

still unclear, but may be far less than current cars and light trucks. The life span of the fuel cell system currently is shorter than a normal vehicle life span. Although its durability is expected to improve, the fuel cell may require replacement twice or three times during the vehicle life. These various uncertainties imply a wide range of cost estimates. At the low end, a fuel cell vehicle might eventually be no more expensive than a comparable ICE vehicle, except for the hydrogen fuel tank. At the high end, the incremental cost of fuel cell cars could remain greater than 10,000, probably too expensive to achieve commercial success. A recent IEA study estimated a long-run cost of 6,000 to 6,500 in excess of that of an ICE vehicle, even with fuel cell retail costs of 100 per kW (including on-board hydrogen storage)10. The total investment required in order to achieve a substantially hydrogen-powered transport system will depend both on the rate at which costs are reduced and the timing of the development of this system. Fast transition would be more expensive, particularly if it occurred so fast as to render current investments obsolete before they were fully amortised. Another key factor is the rate of learning (cost reduction) achieved though increased production. Different learning rates could result in widely different future costs. With optimal learning and cost reduction, a mature fuel cell vehicle market could be reached at an incremental cost of several hundred billion dollars, but if cost reductions are slow, the incremental costs of achieving a mature market could be around $5 trillion, which would clearly reduce the likelihood of widespread hydrogen use in transport.11. Portable applications Demand for use in portable appliances is relatively insignificant in energy terms, but may be highly important in other ways. Demand from this sector is likely to be the first to emerge and while the energy demand for each fuel cell is very small, the potential size of the market could lead to substantial cash flows for fuel cell manufacturers. This income could fund further R&D accelerating further improvements in efficiency and cost reductions. In addition, the potential benefits in terms of achieving public acceptance of fuel cells are considerable. Many analysts suggest that portable appliances such as lap top computers, personal digital assistants (PDAs), mobile telephones, etc. may be the first mass market for fuel cell technology. Several major companies are currently working on fuel cell powered versions of such appliances. Micro fuel cell technology has the potential to increase operating life for portable electronic devices, delivering power up to 50 times longer and reducing fuelling times to less than a minute. This might outweigh the fact that refuelling appliances may, at least initially, not be as convenient. Mid range fuel cell technology has potential applications for cordless appliances, power tools, wheelchairs, bicycles, boats, home energy systems, military field radios and portable computers. It also worth noting that portable appliances operate on DC power and there is therefore no need for costly inverters.

2.2

MARKET DEMAND FOR HYDROGEN ECONOMY TECHNOLOGIES

Market demand for hydrogen economy technologies is poorly understood. Many published studies use broad presumptions based on expected growth in energy demand and how existing and new technologies are expected to satisfy that demand. Recently the IEA produced a

10 11

IEA. 2001, Saving Oil and Reducing CO2 Emissions in Transport: Options & strategies, Paris: OECD. IEA. 2003. World Energy Investment Outlook 2003, Paris: OECD.

10

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

report, which summarised this expectation of growth and how traditional and new technologies could be exploited. Figure 2 represents those estimations.

Figure 2

World Power Generation Capacity Additions 2000-2030 (Gigawatts)

Source Moving to a Hydrogen Economy: Dreams and Realities IEA 2003

The study predicts that despite the expected growth H2/FC, they will play only a minor role in the overall energy economy.

2.3

H2/FC FUNDING

Government funding of H2/FC RTD&D is growing across the globe. All countries examined in this study have increased their support over recent years and, while some are planning further increases in the future, others such as the US and EU have introduced major revisions to their support programmes. However, the H2/FC budgets are still small when compared to spending in other energy areas as Figure 3 demonstrates.
Figure 3 Total Energy R&D for OECD Countries (1974-1998) (public)
1 6 ,0 0 0 1 4 ,0 0 0 1 2 ,0 0 0
US$ (millions)

E n e r g y C o n s e r v a t io n P o w e r & S t o r a g e T e c h n o lo g ie s R e n e w a b le E n e r g y F o s s il F u e ls O th e r T e c h ./R e s e a r c h N u c le a r F is s io n / f u s io n

1 0 ,0 0 0 8 ,0 0 0 6 ,0 0 0 4 ,0 0 0 2 ,0 0 0 0 1974 1977 1980 1983 1986


Year

1989

1992

1995

1998

11

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Source IEA

In many instances, it is not possible to quantify the levels of R&D support fully. For public funding, this is mainly due to the fact that H2/FC RTD&D is often enveloped within wider new and renewable energy programmes that do not specify the proportion spent and to be spent on H2/FC, or draw on a breadth of programmes covering specific aspects of a given technology. This issue is reflected in previous studies that give overviews of funding levels across the world. Some confusion is caused by the overlap that often exists between separate strands of fuel cell and hydrogen RTD&D programmes, so that elements can be assigned from either programme or combined. This leads to double counting both for public funding and industry support. This problem is observed across all continents, but to a lesser degree in North America. This is best demonstrated by two separate reports that recently compared national H2/FC R&D funding levels see Figure 4.
Figure 4
300 250 200 (millions) US$ (millions) 180 150 100 50 0 1999 2000 2001 2003 120 60 US EU Japan US$ (millions)

Comparison of Studies on Fuel Cell and Hydrogen R&D funding


420 360 300 240 350 360 300 300 250 200 150 120 100 60 50 0 US Japan EU Canada Rest of the World (millions) 240 180

Sources: ACIL Tasman, Australian National Hydrogen Study (2003); Fuel Cells Today, Fuel Cell Systems: A Survey of Worldwide Activity

Both report the USA to be the largest H2/FC R&D funder, but total estimates of these budgets for 2003 vary by around 10% between the two reports. More significant is the difference in the estimate of Japanese budgets, where there is a difference in estimated budget of almost US$200m (240m). Consequently, it is difficult to put faith in the reported figures. Nevertheless, by taking figures reported directly by Japanese government officials into account, we can conclude that the picture described by Fuel Cells Today is likely to be the more accurate. Japan has co-ordinated significant H2/FC RTD&D programmes since the early 1980s and for a long time led developments, particularly in the fuel cells area. Until the recent announcement of significant increase in EU H2/FC RTD&D funding, the Framework Programmes lagged the USA and Japan. By their nature, the Framework Programmes have tended to be inflexible and slow to respond to changing R&D needs, since their definition, ratification and period last over 5 years. Fuel cells and hydrogen were perhaps first flagged up as being technologies of longer term interest by the Commission in 199512, but their acceptance within the Framework Programmes as a significant priority has only more recently taken place with the launch of FP6. FP6 has seen the advent of the New Emerging Science and Technology pillar of activities, which is likely to be able to respond
12

Indeed a report prepared at IPTS by Demos Papameletiou Fuel Cells was published in September 1993.

12

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

more flexibly to emergent areas of in the future. Nevertheless, the EU situation is still relatively strong when compared to the majority of countries involved in H2/FC RTD&D globally, though for the foreseeable future, the US together with Japan will be the EUs main competitors. A comprehensive overview of national R&D programmes is being finalised by IEA and is expected to be published before the end of 2004. Private sector H2/FC budgets are small also when compared to spending in other energy areas. For example, oil companies are spending far more on natural gas technology than hydrogen and fuel cells. Natural gas is central to their strategies for the foreseeable future in a way that hydrogen is not, and large sums are being invested, not only in exploration and recovery but also the refining and production of clean synthetic fuels via gas-to-liquids (GTL) processes. Like hydrogen and fuel cells, GTL technology is still relatively expensive, but it is closer to market. Shell (UK/Netherlands), for example, has already built a GTL plant with another on the way, Sasol (South Africa) is building a plant, and ConocoPhilips (USA), ExxonMobil (USA), Statoil (Norway) and Marathon (USA) all have plans to build plants.

13

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

3
3.1

EU POLICY CONTEXT
EUROPEAN UNION

3.1.1 GENERAL ENERGY OUTLOOK The European Union represents around 16% of the world energy market and is the largest net energy-importing region in the world in absolute terms, importing close to half its needs. Despite continuing economic integration, national energy profiles and trends among the Member States remain diverse. This diversity reflects varying stages of economic development and differences in policy priorities, economic structure, taxes, climate and local resources. Oil is the predominant energy source, although its share in primary energy use has declined since the 1970s. Coal use, in both relative and absolute terms, has fallen sharply and is now largely confined to power generation. The share of gas has risen steadily, from 8% in 1971 to 23% in 2000. Nuclear energy now accounts for about 15% of primary energy demand, having grown rapidly between the late 1970s and the early 1990s. In 1998, both capacity and output declined, albeit marginally, for the first time. The International Energy Agency estimates that primary energy demand in the European Union will rise by 0.7% a year to 2030, underpinned by GDP growth of 1.9%. Oil and gas will still dominate the fuel mix, while the share of coal will continue to fall. The European Union will need to import progressively more fossil fuels, given coal, oil and gas production declines. The share of net imports in the Unions oil supply will climb from 73% in 2000 to 92% in 2030. Net imports of gas will also expand, from 44% now to 81% of total EU gas supply in 2030. Carbon dioxide emissions will rise at the same rate as primary energy use. Emissions will rise more quickly than in the past three decades. Without major new initiatives, the European Union will need to rely heavily on flexibility mechanisms in order to achieve its greenhouse gas emission target under the Kyoto Protocol.13 3.1.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS In March 2004, Philippe Busquin presented current and future key EU initiatives for a transition from a fossil fuel-based economy to a hydrogen-based one under the Quick Start Initiative. The broader issues that have driven the setting up of this initiative are: Mitigate climate change effects/reduce pollution: (public health and environment) Maintaining security of supply: diminishing natural resources (economic pressure) Promoting industrial competitiveness (technological innovation).

The Quick start Initiative will be composed of a coherent set of partnerships involving large scale research and lighthouse demonstration projects of hydrogen systems and facilities. The purpose is to accelerate the commercialisation of hydrogen technologies during the next decades making a reality for European citizens of the promises it holds. Progress in the formulation of a pan-European strategy was initiated by the setting up of the High Level Group in 2002 and subsequent consultations. This led to the establishment of the
13

IEA. 2002. World Energy Outlook 2002, Paris: OECD.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Advisory Council of the European Hydrogen and Fuel Cell Technology Platform in December 2003. The High Level Groups main recommendations were in the form of five Actions to establish: A European Political Framework for fostering new technologies A Strategic Research Agenda (due end 2004) A Deployment Strategy (due end 2004) A European Hydrogen and Fuel Cell Technology Partnership A European Roadmap for Hydrogen and Fuel Cells this will involve a co-ordinated approach between the national and EU programmes.

The Strategic Research Agenda will be at the heart of creating the right environment that will foster innovation in H2/FC area. Once agreed, the Agenda is likely to support the following cross-disciplinary areas: Cost reduction Materials choice and utilisation Design and manufacturing System integration Balance of system components Fuels, fuel quality and fuel processing Hydrogen production, distribution and storage System performance (durability, efficiency) Testing, evaluation, characterisation, product standardisation Socio-economic research.

This approach is driven by societal needs, the regulatory system and market dynamics. Public-private partnerships are seen to be an important factor in achieving these aims. It is envisaged that such a collaboration, supported by investment from the European Investment Bank will lead to a series of programmes and projects that will examine and assess the options for a hydrogen fuelled economy. The total 10-year budget for these is 2.8bn, where public funds should be matched by private sector support. 3.1.3 GOVERNMENT FUNDING OF H2/FC RTD The EUs R&D budget has been administered under the Framework Programmes (FP). Support for the development of hydrogen and fuel cells technology has increased over successive programmes. In the future it is foreseen that priority areas covered in the current FP6 will be driven through the Quick Start initiative for hydrogen production and use (See Table 1). The aim is to encourage the creation of public/private partnerships in co-operation with the industry, the research community, and other partners, including notably the European Investment Bank to leverage finance. Member States should also contribute to these partnerships. The knowledge component of the programme foresees, in principle, two major ten-year partnerships (Hypogen and HyCom) involving research, development, demonstration and deployment for hydrogen production and use in communities.

15

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 5

Skeleton proposal for European hydrogen and fuel cell roadmap

Source: Hydrogen Energy and Fuel Cells A Vision for Our Future (2003)

16

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The first is expected to explore the potential of producing hydrogen as a means of decarbonising today's fossil fuels and therefore its potential to bridge to a future hydrogen economy. It aims at advancing cutting-edge research to build a full scale testing and demonstration plant able to produce hydrogen and electricity at an industrial scale and to separate and store safely the CO2 generated in the process. The second project is expected to be a lighthouse project to orient and align research and technological development towards exploring the feasibility, from the safety and economic point of view, of managing hydrogen energy communities and hydrogen village. The aim is to deploy centralised and decentralised hydrogen production and distribution infrastructure, autonomous and grid-connected hydrogen power systems, a substantial number of hydrogen powered vehicles and fuelling infrastructure, and explore different production pathways such as renewable primary energy sources, notably wind and biomass. It will constitute a test bed for demonstration of leading edge technology. At present the budget for these projects is 1.3 billion and 1.5 billion respectively, where public funds should be matched by private sector support.
Table 1 Programme 1985 JOULE THERMIE 1989-2000 EQHHPP 1994-1998 FP4 1999-2002 FP5 2002-2006 FP6 2004-2005 Quick Start EU Funding of H2/FC RTD&D Since 1985 H2/FC Spend (m) Activities R&D and demonstration of non-nuclear energy technologies 1994 combined into one JOULE programme Breakthrough project for hydrogen industry in Europe and Quebec 35 fuel cell projects PEM 30m (55% of budget) MCFC 9m SOFC 8.6m H2 Infrastructure - 30.5m (Demo: 6.9m) FC RTD&D 114.3m (Demo: 43.3m) European Research Areas (ERA) funded hydrogen - 2.5m and fuel cell - 30m R&D in 2001-02 Hydrogen technologies 61.8m Fuel cell technologies 29.7m Priorities drawn from across FP6 priorities. Joint calls with FP6 large scale research and lighthouse demonstration projects

45 (European share 35) 54

144.8 91.5 (Awarded/under negotiation - first call for proposals) 150

*EU funding contribution to be matched by industry.

The EU programmes aim to complement national activities and provide the funding for those projects which are believed to be best approached at a pan-European level. It is likely, therefore, that areas such as codes and standards, education and to some extent demonstration projects such as the CUTE fuel cell bus will form the backbone of future activities. The first quarter of this year is seeing the launch of many new research projects for hydrogen and fuel cells. After the first call for proposals of FP6 the Commission is now awarding ten contracts worth about 62m of EU funding in the field of hydrogen and six contracts worth 30m for fuel cells (see Table 2 and Table 3).

17

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Contracts related to hydrogen technologies awarded, or under negotiation, in the first call for proposals of the 6th Framework Programme (FP6) Project Acronym HYTHEC CHRISGAS Hi2H2 Pathways HYWAYS NATURALHY Storage Safety End use STORHY HYSAFE ZERO REGIO PREMIA HYICE Type of Action1 STREP IP STREP IP IP IP NOE IP SSA IP Topic Water splitting through High Temperature thermochemical cycles H2 rich gas from biomass High temperature solid oxide water electrolyser Elaborating a European Hydrogen Roadmap Investigating infrastructure requirements for H2 and natural gas mixes Next generation storage technologies for on-board applications Networking research in safety issues H2 FC fleet demonstration Effectiveness of demonstration initiatives Internal combustion Engines Total EU funding EU funding2 (m) 1.9 9.5 0.9 4 11 10 7 7.5 1 9 61.8 Co-ordinator CEA (France) Vxjo University, (Sweden) EDF (France) L-B-Systemtechnik, (Germany) Gasunie, (The Netherlands) Magna Steyr Fahrzeugtechnik, (Austria) FZK Forschungs zentrum Karlsruhe (Germany) INFRASERV (Germany) VITO (Belgium) BMW (Germany)

Table 2 Area Production

(1) IP: Integrated Project, NOE: Network of Excellence, STREP: Specific Targeted Research Projects, SSA: Specific Support Action (2) These funds are matched by approximately an equivalent amount by the participant organisations

Table 3 Area High Temperature Fuel Cells

Contracts related to fuel cell technologies awarded, or under negotiation, in the first call for proposals of the 6th Framework Programme (FP6) Project Acronym Real-SOFC BIOCELLUS GREEN-FUELCELL Type of Action1 IP STREP STREP IP IP STREP Topic Next generations SOFC planar technology Biomass Fuel Cell Utility System SOFC fuelled by biomass gasification gas Innovative systems and components for road transport applications High temperature polymer electrolyte membrane (PEM) Compact direct (m)ethanol fuel cell Total EU funding EU funding2 (m) 9 2.5 3 9 4 2.2 29.7 Co-ordinator Forschungs- zentrum Jlich (FZJ) (Germany) TU Munich (Germany) CCIRAD (France) Volvo (Sweden) DTU, Technical University of Denmark GKSS Forschungszentrum Geesthacht (Germany)

Solid Polymer Fuel Cells

HYTRAN FURIM

Portable applications

MOREPOWER

(1) IP: Integrated Project, STREP: Specific Targeted Research Projects (2) These funds are matched by approximately an equivalent amount by the participant organisations

18

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

These activities should provide a multi-disciplinary approach aimed at achieving technology breakthroughs in materials and processes for hydrogen production, storage and distribution as well as for fuel cells and their applications in transport and power generation, to put Europe at the forefront of these technologies. They will also establish a European test framework for hydrogen technologies ready for demonstration.

3.2

EU MEMBER STATES

3.2.1 GOVERNMENT FUNDING OF H2/FC RTD The issues driving support for H2/FC RTD&D at EU level mimic those found at national level too: Environment Climate change and local air quality Energy security and energy efficiency Competitiveness of domestic industry base (and the need to plan for long term developments to take into account major or unexpected changes).

However, a range of factors (social, historical, commercial, institutional) dictates the extent to which each Member State has responded to the possible opportunity that fuel cell and hydrogen offer in the future. Despite these variances, the majority of Member States are active in H2/FC RTD&D in some form or another some predominantly university based, other more focused on the industrialisation and commercialisation of the respective technologies. Highlighted below are the countries that have more significant activities by monetary terms in the EU: Germany France Italy United Kingdom Nordic countries

In the main, the aspirations of the Member States is to combine the innovation in fuel cell and hydrogen technologies with the industry base that already exists. Primarily, the focus is on the automotive and transport sector, with many of Europes automotive manufacturers playing an active part in the development of technologies and the establishment of demonstration projects. In addition, there is a belief that highly skilled engineering industries will be at the forefront of cost reduction and commercialisation. In the stationary and domestic power sector, there are additional hurdles that have to be overcome in terms of the existing infrastructure. The major part of the EU is well-served by electricity-grid power as well as mains gas. Nevertheless, increasing demands for uninterruptible and emergency supplies from IT, financial and health industries does have the potential create niche demand from which other applications can develop. Levels of national funding for H2/FC RTD&D in the aforementioned Member States is presented in Table 4.

19

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 4 Country (Region) Germany (H2) Germany (FC) North-Rhine Westphalia Bavaria BadenWrttemberg UK (H2/FC)

Examples of funding for H2/FC RTD&D across EU Member States Time Period To 2000 2000-to date To 2000 2000-to date Total (Spent to 2003) 1997 to date 15+ years Annual 2003-2008 2003-2008 Funding (m)* ~60 ~10 ~100 ~68 ~58 ~73 (~40) ~75 ~3 ~8.1 ~20 ~90 ~40.9 ~18.3 ~34.7 ~4.0 ~27.6 ~38.7 Activities Thermo-chemical production of H2, Hot Elly, Hysolar, Baysolar, Infrastructure for fuel cell busses including CUTE 100 projects all FC-types + crosscutting issues Projects covering FC-types + crosscutting issues National Research Centres FC particularly PEM, DMFC, components/reforming/system development H2 - storage, system analysis 30 RD&D projects: H2-storage/infrastructure, fuel cells Mainly fuel cell development, demonstration, outreach projects Advanced FC R&D Programme running since 1992 SUPERGEN Hydrogen and Fuel Cells Consortia 110m for a number of general energy R&D programmes that feed into both fuel cell and hydrogen technology development. PEM, SOFC H2 production and storage 10m to PACo Fuel Cells Network Various H2 and FC R&D programmes Various H2 and FC R&D programmes Various H2 and FC R&D programmes Various H2 and FC R&D programmes Nordic Energy Research Programme Various H2 and FC R&D programmes Innovative materials, components and cell design. Demonstration of fuel cell systems for transportation, stationary power generation and portable units.

France (H2/FC) Italy (H2/FC) Denmark (H2/FC) Finland (H2/FC) Sweden (H2/FC) Nordic countries(H2/FC) Norway (H2/FC) Switzerland (H2/FC)

Annual 2003-2006 1998-2003 1998-2003 1998-2003 1998-2003 1998-2003 2003-2006

*All figures illustrative of budgets precise figures for all programme activities not readily available.

In terms of demonstrators, Europe lags the USA. Figure 6 describes the most recent overview of these activities, which cumulatively deliver 12MW of stationary power and 27 fuel cell buses. The majority of European demonstration have been set up in Germany, where many of future large scale projects are also being planned. North Rhine Westphalia, Baden Wrttemburg and Bayern each have supported the creation of industry clusters that aim to co-develop technologies and systems regionally and in collaboration with others. They have also established regionally funded bodies that support inward and outward technology transfer. This is a picture that is increasing across the EU. More recently, the CUTE project has provided the opportunity to trial PEM fuel cell powered buses as well as establishing a limited fuelling infrastructure. Nine cities (Amsterdam, Barcelona, Hamburg, London, Luxembourg, Madrid, Porto, Stockholm and Stuttgart) have each received three DaimlerChrysler Citaro fuel cell buses and have installed hydrogen stations, which produce the necessary fuel in various methods. In the Icelandic hydrogen project, an Icelandic consortium, Vistorka hf (EcoEnergy Ltd), set up with DaimlerChrysler, Norsk Hydro and Royal Dutch/Shell a joint venture to investigate the possibility of replacing fossil fuel in Iceland with hydrogen and creating a hydrogen economy. 20

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 6

Demonstration Projects across the EU

Norway Units Power SOFC 1 250 Share of Euro Industry 3% Netherlands Units Power SOFC 1 125 Cute 3 Share of Euro Industry 6%

Finland Share of Euro Industry 2%

Sweden Units Power PEMFC 1 4 SOFC 2 10 Cute 3 Share of Euro Industry 3% U.K Units Power PAFC 1 250 Cute 3 Share of Euro Industry 19% Germany Units Power PEMFC 11 536 PAFC 22 4250 MCFC 10 2500 SOFC 10 2018 Total 75 9304 Cute 6 Share of Euro Industry 31%

Belgium Units Power PEMFC 1 250 Share of Euro Industry 4%

Austria Share of Euro Industry 2%

France Units Power PEMFC 7 31 Share of Euro Industry 6%

Switzerland Units Power PEMFC 1 250 SOFC 4 4 Share of Euro Industry 3%

Portugal Units Power Cute 3

Spain Units Power MCFC 1 100 Cute 6 Share of Euro Industry 6% Lbourg Units Power Cute 3

Italy Units Power PAFC 6 1200 MCFC 1 100 SOFC 1 300 Total 8 1600 Share of Euro Industry 7%

Source: Share of EU Industry Core Technology Ventures LLP (2004)

3.2.2 INDUSTRY ACTIVITIES Recent figures from venture capital company, Core Technology Ventures, demonstrates the significant variability of fuel cell industry activity across the EU, with over 50% being concentrated in Germany and the UK. This variation is shown in Figure 7, where it can be seen that interest is spread across most EU15 Member States. Fuel Cells Today has estimated the number of organisations and people employed in H2/FC technologies. These estimations draw a similar picture of the activity of the European fuel cell industry (see Table 5), although information does not match for some EU countries are not considered by either of the sources used.
Figure 7 Distribution of EU Fuel Cell Industry
Sweden 3% Austria 2%Finland 2% Belgium 4% NetherlandsL 6% Spain 6%

Germany 34%

France 6% Italy 7% Ireland 9% United Kingdom 21%

Source: Adapted from Core Technology Ventures LLP (2004)

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 5 Country Germany UK Italy Denmark Finland Norway Sweden Austria Switzerland

H2/FC industry in Europe no. organisations 350 100 70 20 20 30 30 35 55 no. employees 2800 850 850 210 100 150 100 150 400

Source: Fuel Cells Today

Where European small H2/FC technology-based companies are clearly lacking to US companies is access to private finance. The first European independent fuel cell developer, ITM Power is publicly quoted on the London Aim market on June 11th 2004, whereas around 12 companies in North America have a market capitalisation in excess of US$3bn (2.5bn)14. Moreover, in Europe FP6 programmes are dominated by large corporations and provide max 50% funding, while in the USA 80% for R&D is not unusual. The mobilisation of this level of support provides strong backing to future R&D plans. A sample of European companies and their activities are described overleaf in Table 7. However, it is important to note that many of these companies are involved in international collaborations with other companies from across the globe. Therefore it is often difficult to define precisely what activity can be allocated to individual companies without carefully examining where the original intellectual property lies. The breadth of industrial interest reflects the shape of publicly funded R&D programmes within each country. However, it is not possible to conclude whether the majority of industrial activity is driven by public funding opportunities or vice versa. The data provided in Table 6 is by no means comprehensive as it focuses at Member States level but does not account for EU-funded projects. More generally, it is often difficult to clearly identify and verify that a companys activities are directly related to hydrogen and fuel cell development. However, there are commercially available reports, such as those produced by Escovale Consultancy Services that do attempt to define the global fuel cell industry. The majority of H2/FC activity across the EU is focussed in Germany and to a lesser extent in the UK. Germanys strength is characterised by high concentration of fuel cell and hydrogen technology developers and demonstration projects and by the highest number of H2/FC patents produced. Germany exemplifies the strengths required to build a competitive industry and mimics many of the strengths that are being exhibited by the EUs main competitors.

14

Core Technology Ventures

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 6

H2/FC RD&D Activities for a Selection of European Companies


H2 Production H2 Storage Conversion & Utilisation Application (*Demo)

Photocatalytic anf Biochemical Production

Balance of Plant (system integration)

Other (nanotubes, alloys, etc.)

Gas separation techniques

Thermochemical (nuclear)

Domestic Stationary/UPS

Automotive (Transport)

Distributed Stationary

CO2 Sequestration

Steam reforming

Pressurized gas

H2 Distribution

Metal hydride

Companies Companies with demonstration interests, but no R&D activity. Dansk Gasteknisk Center and Hovedstadsregionens Naturgas IRD Fuel Cells (+ Partners) Wrtsil Icelandic New Energy INE Norsk Hydro Fortum and ABB Sydkraft and Sydgas Daimler Chrysler AG BMW AG (H2-ICE) Linde AG Adam Opel AG Volkswagen AG MTU CFC Solutions Proton Motor Smart Fuel Cell Vaillant Siemens Celanese E.ON Energie EnBW EWE Thyssengas Aral AG BASF Buderus (IFC (US) Partner) Degussa (Umicore Group) Ruhrgas Sd-Chemie Viessmann RWE Fuel Cells Sulzer Hexis BP Intelligent Energy QinetiQ Rolls Royce Nuvera Fuel Cells Ansaldo Fiat (Nuvera - Partner) Air Liquide Axane Electricite de France Renault-Nissan Group Total Fina Elf EHN Repsol

Gasification

Electrolysis

Portable

MCFC

DMFC

SOFC

PAFC

Liquid

PEM

AFC

Denmark Finland Iceland Norway Sweden

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X* X* X X* X* X* X* X X X X* X* X* X X X* X* X* X X X X X* X* X* X* X X X X* X X X X X X X* X* X* X* X* X* X* X* X* X* X* X* X X* X* X* X* X* X* X X X

Germany

X X

UK

Italy

France

Spain

European strengths seem to lie in SOFC and PEM fuel cell and to a lesser extent DMFC technology development. European companies are mainly component manufactures (Germany and UK). There is a limited number of system developers also. In H2 production, steam reforming and electrolysis are strong areas, as well as all aspects of H2 distribution and pressurised gas and liquid hydrogen storage. Industry is well clustered in Germany. On the other hand, EU is dependent on German performance for both hydrogen and fuel cells technology development.

23

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

CHARACTERISATION OF H2/FC RTD&D OUTSIDE THE EU

This analysis gives an overview of the current and potential future positioning of EU hydrogen and fuel cell research, technological development and demonstration (H2/FC RTD&D) with respect to the major competing nations from across the world. The competitors are grouped around geopolitical boundaries, which have been selected because they represent both the established and growing powers in the areas of H2/FC RTD&D: United States of America Canada Japan Asia-Pacific area, including Australia, China, India and South Korea

It is possible to segment the selection of countries considered in this study between welldeveloped and well structured approaches to H2/FC RTD&D (US, Canada, Japan and EU but not all Member States); and those that have carried out H2/FC RTD&D at a much lower level and are only now planning increased involvement (Australia, China, India and South Korea). We must stress that this does not imply that the latter grouping is much weaker in overall competitive terms, rather they are countries that are likely to have a growing role as fuel cell and hydrogen economy develops over the coming decades. Many of these countries have exhibited similar strengths in other industry sectors such as electronics and broader mass manufacturing that have already established them as major players. It is this capability as well as specific technological expertise that is likely to push them to the fore. The growing interest from the secondary grouping is reflected by their recent introduction to the International Partnership for Hydrogen Economy (IPHE). Each of the aforementioned countries is examined at four different levels: General energy outlook H2/FC drivers, barriers and roadmaps Government funding of H2/FC RTD Industry activities.

By taking this approach, it has been possible to understand the structure of national strategies in H2/FC RTD&D and how this manifests itself at industry level. It is also possible to assess national strengths and weaknesses and these are summarised at the end of each country description.

4.1

USA

4.1.1 GENERAL ENERGY OUTLOOK The United States and Canada together account for over a quarter of world energy demand. Fossil fuels dominate the regions energy supply. Oil and gas account for over 60% of primary demand, coal for a little less than a quarter and nuclear power for much of the rest. 24

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Renewables contribute 6%. The region is rich in fossil fuel and renewable resources. Indigenous production meets a little over 80% of total energy needs. The International Energy Agency estimates that the United States and Canada will remain heavily dependent on oil, which they use predominantly for road and air transport. But gas will grow in relative importance, because many new power plants will be gas-fired. The supply of renewables expands rapidly, though their share in primary supply will still be less than 10% in 2030. If the US and Canadian governments take no new action to rein in demand and boost production, net imports of oil will continue to rise, reaching 15.5 million barrels/day, or 57% of the regions consumption, in 2030. A large and growing share of these additional imports will come from OPEC countries. Gas imports, predominantly liquefied natural gas, will grow from very low levels now to around 30% of demand in 2030, as domestic supplies tighten and gas prices rise.15 In Figure 8 we provide an overview of US support for energy R&D since 1974. Prior to the recent increased emphasis on energy efficiency, the history of support is dominated by the USAs response to the oil crisis of the mid-1970s. At that time, nuclear was seen to be the longer term solution, but that has now diminished.
Figure 8 US Total Energy RD&D (1974-2002)
8,000 7,000 6,000 Total C onservation Total Pow er & Storage Tech. Total R enew able Energy Total Fossil Fuels Total O ther Tech./R esearch Total N uclear Fission/fusion

US$ (millions)

5,000 4,000 3,000 2,000 1,000 0

Data Source: IEA (2002 Prices and exchange rates)

Fuel cells and hydrogen research are encompassed in total power and energy storage technologies, which have also witnessed significant, increased funding in recent years, but despite this, R&D support to hydrogen and fuel cells forms a minor part of the overall DoE budget 0.75%, and must be considered in this context. 4.1.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS In February 2002, the US Department of Energy (US DoE) published, A National Vision of America's Transition to a Hydrogen Economy to 2030 and Beyond. This highlighted that several economic, environmental, social and commercial drivers that are likely to impact on hydrogen economy development. Apart from the global climate change and population

1974

1976

1978

1980

1982

1984

1986

Y ear

1988

1990

1992

1994

1996

1998

2000

2002

15

IEA. 2002. World Energy Outlook 2002, Paris: OECD.

25

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

growth drivers, the report stated the following as the main issues that the USA would need to address in the future: Energy security use domestic resources, distributed generation, reduced dependency on imported oil, etc. Environment - climate change mitigation, air quality improvement, etc. Energy efficiency Competitiveness - worldwide technology leadership.

To achieve the above, the report concludes that the US must develop: Consistent energy policies at National and State levels Strong public-private partnerships The role that Government plays in supporting RTD&D and in terms of public procurement for providing niche market opportunities for products that emerge. A roadmap that acts as a framework for addressing all aspects and issues related to the development of a hydrogen economy.

Environment plays a strong role in the driving forward developments, despite the USs failure to ratify the Kyoto agreement on climate change. The establishment of the Californian Fuel Cell Partnership, which was set up as part of a wider environmental policy driven by air quality issues in the State, is an recent example of this. The Partnership embodies the US approach of public-private collaboration, technology demonstration, opportunity and barrier identification with the sole purpose of advancing commercialisation. Apart from the drivers, the report also stresses that there are significant barriers that need to be overcome: Maintaining energy policy over the longer term Lack of - H2 infrastructures (costs of building) - Commercial H2 production techniques (highlighting that steam reformation of methane uses a limited natural resource and releases CO2), storage and conversion (inc. fuel cells) devices - Demonstrated cost-effective carbon sequestration techniques H2 safety.

In addition, there are several criteria where there is a balance between supporting and inhibiting hydrogen development: Innovation hydrogen and competing technologies Current low-cost energy supply Consumer demands: environment versus cost.

In November 2002, the US DoE published National Hydrogen Energy Roadmap - Toward a More Secure and Cleaner Energy Future for America. Within this strategic document, the USA outlined the opportunities that the hydrogen economy offered in the long-term and barriers that need to be overcome in order for these opportunities to be realised. The report emphasises the importance of understanding the whole supply chain rather than focussing on individual aspects. The priorities highlighted are as follows: 26

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Production: lower costs, improve efficiency, and reduce the cost of carbon sequestration, improving existing commercial processes, improved central and distributed hydrogen production techniques Delivery: better components for existing delivery systems - hydrogen sensors, pipeline materials, compressors; cost, safety, and reliability; demonstrations to test various hydrogen infrastructure components Storage (key enabling technology): lower costs, improve performance, and develop advanced materials Conversion: enhance the manufacturing capabilities and lower the cost of fuel cells; higher-efficiency, lower-cost reciprocating engines and turbines; fundamental understanding of advanced materials, electrochemistry, and fuel cell stack interfaces and to explore the fundamental properties of hydrogen combustion Applications: safety, convenience, affordability, and environmental friendliness; public procurement; supportive energy and environmental policies; customer education and the development of codes and standards Education and outreach: educational and training materials to support public acceptance Codes and standards: speed the development process; span national boundaries; evaluating the costs and benefits.

In general, the USA has adopted a pragmatic and commercial approach to the development of fuel cells and hydrogen technologies.
Figure 9 Overview of the transition to a hydrogen economy

Source: A National Vision of America's Transition to a Hydrogen Economy To 2030 and Beyond

4.1.3 GOVERNMENT FUNDING OF H2/FC RTD The US Government currently runs the largest H2/FC R&D programmes in terms of budget. Activities are spread from fundamental research through to system development and demonstration. Support is available for the uptake of new technologies once they are developed, which is primarily focused at demonstrations, especially of vehicles. Support is 27

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

also provided for educational programmes for raising public awareness and spreading commercial best practice. Each programme has well defined parameters aimed at different aspects of the technology development value chain. The objective is to create a seamless mechanism for funding the development of commercial hydrogen and fuel cell systems from blue sky to stimulating initial market opportunities. However, relatively speaking, very little funds are devoted to the H2/FC technology regardless of the policy imperatives. The US DoE is the largest funding body. Below we outline the US Department of Energys (US DoE) budget request for 2005 and the changes on previous budgets specifically for the Department for Energy Efficiency and Renewable Energy (EERE)16. The overall budget request of US$24.3bn (20.3bn) includes an H2 R&D budget of US$227m (189m). It needs to be emphasised that these requests may not come to fruition.
Table 7 Review of US DoE EERE Hydrogen, Fuel Cells & Infrastructure Technologies Program Budget 2003-2005
Change 20032004 (%) Change 20042005 (%) FY2004 Appropriation (US$m) 22.6 (18.8m) 29.4 (24.5m) 18.49 (15.4m) 5.9 (4.9m) 5.7 (4.8m) FY2005 Request (US$m) FY2003 (US$m) 11.2 (9.3m) 10.8 (9.0m) 9.7 (8.1m) 4.5 (3.8m) 1.9 (1.6m)

Production and Delivery Storage near-term compressed hydrogen tanks; advanced materials long-term (coordinated with FreedomCAR) Infrastructure Validation - demonstrations for hydrogen production, delivery and storage. Safety, Codes & Standards, and Utilization - Hydrogen production, delivery and storage. Education and Crosscutting Analysis - training & education materials; assess potential impact & benefits of hydrogen technology in society. Total: Transportation Systems - fuel cell systems for transportation applications, cost and reliability Fuel Cell Technology (Interior & Related Agencies) Distributed Energy Systems - stationary Fuel Processing - on-board transportation and stationary Stack Components (PEM - stationary and transport) Technology Validation Of components in a systemscontext to help refine and direct future R&D activities related to fuel cell vehicles. Technical and Program Support Fuel Cell Technology Hydrogen, Fuel Cells & Infrastructure Technologies Total:

101 173 90 30 201 115

25.3 (21.1m) 30.0 (25.0m) 15.0 (12.5m) 18.0 (15.0m) 7.0 (5.8m) 95.3 (79.4m) 7.6 (6.3m) 7.5 (6.3m) 13.9 (11.6m) 30.0 (25.0m) 18.0 (15.0m) .542 (.4m) 77.500 (64.5m) 172.8 (144.0m)

12 2 -18 205 23 16

Hydrogen Technology

38.1 82.0* (31.8m) (68.3m) 6.1 7.5 (5.1m) (6.3m) 7.3 7.4 (6.1m) (6.2m) 23.5 14.8 (19.6m) (12.3m) 14.8 25.2 (12.3m) (21.0m) 1.8 (1.5m) 9.9 (8.3m)

22 2 -37 70 452 -1 21 60

1 1

19 82 37 19 17

.398 .395 (.3m) (.3m) 53.906 65.187 (44.9m) (54.3m) 92.0 147.2 (76.7m) (122.7m)

*Includes Congressionally-directed projects totalling $42 million (35 million)

16

Hydrogen & Fuel Cell Letter, Feb. 2004

28

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

R&D is spread across all technology areas from fundamental to practical demonstration and systems integration. A minor but significant budgetary change is the increased emphasis on safety codes and standards, which are an important requirement for future commercialisation. A tripling of the budget reflects the longer term aspirations of the US Government in ensuring that the potential barriers to market penetration are addressed at an early stage. Not included in the above are activities related to the DoEs Stationary Fuel Cell Program. This is co-ordinated by the DoEs National Energy Technology Laboratory with contribution from the Solid State Energy Conversion Alliance (SECA), which was created in 1999 by a government-industry-academia collaboration to promote the development of SOFC for all application areas. The budgets for FY2003 and proposed FY2004 are outlined below in Table 8
Table 8 US Stationary Fuel Cells Programme Budget
FY2003 (US$m) Systems Development Vision 21 Hybrids Stationary Fuel Cells Programme Innovative Concepts/SECA Advanced Research Total: 9.9 (8.3m) 13.4 (11.2m) 33.8 (28.2m) 3.5 (2.9m) 60.6 (50.5m) FY2004 Change 2003-2004 Requested (US$m) (%) 6.0 (5.0m) 5.0 (4.2m) 23.5 (19.6m) 10.0 (8.3m) 44.5 (37.1m) -39.4 -63.4 30.5 214.3 -26.6

For this program, it is clear that priorities have moved towards developing the next generation of technologies with greater emphasis on advanced research and reduced funding for systems integration/productisation. Apart from DoE, support for H2/FC RTD&D is spread further across Government with the following departments involved in RTD&D in one way or another:
-

US Department of Defense (DoD)


ERDC/CERL FY 2003 is approximately US$15.0 million (12.5 million): Fuel Cell Test and Evaluation Centre; PAFC Demonstration Program; Residential Demonstration Program (PEM); Climate Change Rebate Program; Advanced Power and Energy Program; Logistics Fuel Reformer/Processor for Mobile Electric Power (MEP) Fuel Cells Power Generation Defense Advanced Research Projects Agency (DARPA) small scale-portable (c. 50W) The US Army Tank-Automotive and Armaments Command (TACOM) vehicle APU and PEM Fuel cell bus Department of the Navy (investigating energy solutions from 1W-1MW)

National Aeronautics and Space Administration (NASA) - PEM US Department of Transportation (DoT) US Department of Commerce (DoC) - National Institute for Standards and Technology (NIST) US Environmental Protection Agency (EPA) National Science Foundation (NSF) National Park Service. 29

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Details of the overall Federal budget are given in Table 9.


Table 9 Federal Government Funded Activity Budget (US$ million)
FY 2003 (Appropriated) a) DOE Activities Sorted by Fuel Cells RD&D vs. Hydrogen RD&D DOE Fuel Cells Activity HFC&IT Program (FC activity only) inc. PEM stat. Stationary Fuel Cells (non PEM) inc. SECA Fuel Cell Activity Sub total DOE Hydrogen Infrastructure Activity HFC&IT Program (H2 activity only) Office of Nuclear Energy H2 Production Office of Fossil Energy Coal to H2 Office of Fossil Energy Gas to H2 Funds from Other Agencies Hydrogen Infrastructure Activity Sub total DOE FC & H2 Partnerships FreedomCAR Partnership 21st Century Truck Partnership Other FC & H2 Partnerships Sub total DOE Grand Total b) DOE Activities Sorted by Vehicle Related RD&D vs. Stationary DOE Vehicle Related RD&D Fuel Cells Hydrogen FreedomCAR Partnership Sub total 21st Century Truck Partnership Other Relevant Vehicle Activity Vehicle Related RD&D Sub total DOE Stationary Power Related RD&D PEM FCs for Stationary Power (EERE) Stationary FCs (non PEM) inc. SECA Hydrogen Stationary Power Related RD&D Sub total DOE Grand Total c) DoD Activities all Fuel Cell Related ERDC/CERL Fuel Cell Program TACOM 6.0 DON DARPA DoD Grand Total d) Other Federal Activities all Fuel Cell Related NASA Other Federal Grand Total All Federal Grand Total *Assumes level budget FY 2004 (Requested)

57.4 (47.8m) 60.6 (50.5m) 118.0 (98.3m) 42.9 (35.8m) 42.9 (35.8m) 74.5 (62.1m) 70.1 (58.4m) 8.9 (7.4m) 153.5 (127.9m) 314.4 (262.0m)

77.5 (64.6m) 44.5 (37.1m) 122.0 (101.7m) 88.0 (73.3m) 4.0 (3.3m) 5.0 (4.2m) 6.5 (5.4m) 0.7 (0.6m) 104.2 (86.8m) 91.1 (75.9m) 57.5 (47.9m) 9.0 (7.5m) 157.6 (131.3m) 383.8 (319.8m)

49.9 (41.6m) 25.0 (20.8m) 74.5 (62.1m) 149.9 (124.9m) 70.1 (58.4m) 8.9 (7.4m) 228.4 (190.3m) 7.5 (6.3m) 60.6 (50.5m) 17.9 (14.9m) 86.0 (71.7m) 314.4 (262.0m) 15.0 (12.5m) 6.0 (5.0m)

70.0 (58.3m) 104.2 (86.8m) 91.1 (75.9m) 265.3 (221.1m) 57.5 (47.9m) 9.0 (7.5m) 331.8 (276.5m) 7.5 (6.3m) 44.5 (37.1m) 52.0 (43.3m) 383.8 (319.8m) 15.0* (12.5m) 10.0* (8.3m)

21.0-25.0 (17.5 - 20.8m) 20.0 (16.7m) 20.0 (16.7m) 355.4-359.4 (296.2 - 354.0m)

21.0-25.0* (17.5 - 20.8m) 20.0* (16.7m) 20.0 (16.7m) 424.8-428.8 (299.5 - 357.3m)

Source: DTI Globalwatch Mission Report, 2003

Overall, the 5-year program announced by President Bush in 2004 intent to invest up to US$1.7bn (1.4bn) to develop fuel cells, hydrogen infrastructure and advanced automotive 30

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

technologies to help reverse increasing dependence on oil imports and enhance energy security. The US Senate and House of Representatives are complementing these programmes with subsidies and support in terms of public procurement for the application of new technologies. In total, the two bodies are providing circa US$5bn (4.2bn) to provide education programmes, generation subsidies, demonstration programmes, fleet vehicle purchase, power purchase; etc., all aimed at creating demand for the technologies as they are developed.17 It is not clear how much of this budget is ring-fenced for fuel cell and hydrogen specific applications. There is also State level support by the end of 2003, 22 states provided tax exemptions or subsidies for the application of fuel cell and hydrogen technologies. Additionally, 28 universities have active research programmes in these areas. However, it has been noted that inter-state competition for funding does pose the risk of diluting the effectiveness of programmes and could lead to duplication of effort. This applies to inter-regional and interjurisdictional competition at all levels also. The number of demonstration projects is an indicator of where R&D progress is being made and true productisation is a possibility. The US leads in the quantity of demonstrators been set up in the field, with 40MW of stationary power. However, the number of demonstration activities may be skewed due to the support for this activity by military expenditures.
Figure 10
Unknow n L o c a t io n s PEM FC PAFC M C FC U n it s P o w e r 157 17 1 558 3400 250

US Fuel Cell Demonstrators


W a s h in g to n U n its P o w e r PEM FC 2 8 PAFC 1 200 M CFC 1 1000 M o n t a n a U n its P o w e r PEM FC 1 5 N o r t h D a k o t a U n its P o w e r PAFC 1 200 M in n e s o t a U n its PAFC 2 Power 400 M i c h i g a n U n it s P o w e r PEM FC 2 10 PAFC 3 600 N e b r a s k a U n its P o w e r PAFC 6 1200 W y o m in g U n it s P o w e r PEM FC 1 4 .5 N e w Y o r k U n it s P o w e r PEM FC 229 1815 PAFC 32 6400 M CFC 2 500 T o ta l 263 8751

I llin o is PEM FC PAFC

U n its P o w e r 1 3 1 200

P e n n s y lv a n ia U n its P o w e r PEM FC 2 1 .2 5 PAFC 6 1200 M a s s a c h u s e t t s U n it s P o w e r PEM FC 5 1000 M CFC 1 250

A la s k a PAFC SOFC

U n its P o w e r 8 1600 1 250

In d ia n a PEM FC M C FC

U n its P o w e r 1 2000 1 250

O r e g o n U n its P o w e r PEM FC 3 15 PAFC 1 200

R h o d e Is l a n d U n its PAFC 2 C o n n e c t ic u t PAFC M CFC SOFC T o ta l

Power 400

N e v a d a U n its PAFC 2

Power 400

U n it s P o w e r 15 3000 1 250 1 25 17 3275

C a lifo r n ia U n its P o w e r PEM FC 26 98 PAFC 20 4000 M C FC 5 3000 SOFC 6 245 T o ta l 57 7343 N o r t h C a r o lin a U n its P o w e r PEM FC 3 33 A r iz o n a U n its PAFC 2 Power 400

N e w J e r s e y U n it s P o w e r PAFC 4 800 M CFC 2 500 M a r y la n d U n its P o w e r PEM FC 2 9 M CFC 1 200 V ir g in ia U n its P o w e r PAFC 2 400 M CFC 1 200

N e w M e x ic o U n its PAFC 2

Power 400 T E X A S U n its P o w e r PEM FC 3 9 PAFC 4 800

G e o r g ia U n its P o w e r PEM FC 1 5 M is s is s ip p i U n its P o w e r PAFC 1 200 L o u i s ia n a PEM FC PAFC U n its P o w e r 1 5 1 200 F lo r id a AFC PAFC U n its P o w e r 1 10 1 200

C o lo r a d o U n its P o w e r PEM FC 2 10

H a w a ii PEM FC

U n its 1

Power 5

A r k a n s a s U n its PAFC 2

Power 400

A la b a m a MCFC

U n its P o w e r 1 250

Source: Core Technology Ventures LLP (2004)

In the USA, the setting up of the California Fuel Cell Partnership has had a very significant impact in both focussing US developments within that State, as well as attracting commercial business interests from across the globe. Major fuel cell manufacturers, automotive companies and fuel infrastructure companies have combined with the California Air Resources Board to establish a beacon for collaborative effort in the area of fuel cell and hydrogen-powered transport.

17

According to Christopher Curtis, Fuel Cells Canada, the US system is one of countering offers and negotiations and adding up all the legislative proposals is rather dangerous.

31

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Since the election of Governor Schwarzenegger, the California Hydrogen Highways initiative gained momentum and more publicity. In the initiative the government would like to see around 200 filling stations, providing access to hydrogen along the state's major highways by 2010. 4.1.4 INDUSTRY ACTIVITIES Industrial activity in the US spreads across all fuel cell and hydrogen technology development areas. Below we provide an outline of a selection of these companies and their activities. PEM interest for automotive and domestic applications dominates. The majority of companies are involved in one or more demonstration projects. Business Communications recently reported an increased commercial support for fuel cells R&D combined with a growth in staffing levels (see Table 10).
Table 10 Recent Industry FC Industry Trends (US$ million 2001 Sales of fuel cells products R&D expenditure FC R&D Employees US$ 151m (126 m) US$ 248m (207 m) 2745 2002 US$ 167m (139 m) US$ 288m (240 m) 3273 Increase 2001-2 11% 16% 19% 2003 US$ 334m (278 m) 3763 Increase 2002-3 16% 15%

Data from Business Communications Co. 2003

The level of industrial support is characteristic of independent fuel cell developers in the US and is due in the main to their access to private finance. Core Technology Ventures recently reported that this is a significant advantage for the US based companies. The US fuel cell industry base covers all technologies. Many of the American companies are world leaders in their particular technology area. For example, Praxair is a leading industrial gas and hydrogen supplier, Air Products produces hydrogen and equipment for hydrogen separation and purification, FuelCell Energy has been developing MCFC technology since 1970s, UTC Fuel Cells is presently the leading manufacturer of commercial stationary fuel cell systems, Plug Power is a leader the development of small stationary fuel cell systems and General Motors has announced that they employ 600 people in FCV development, assembly and testing. Together these companies cover the whole hydrogen economy value chain.

32

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 11

H2/FC RD&D Activities for a Selection of US Companies


H2 Production Photocatalytic anf Biochemical Production H2 Storage Conversion & Utilisation Applications (*Demo) Balance of Plant (system integration)

Thermochemical (inc. nuclear)

Gas separation techniques

Domestic Stationary/UPS

Distributed Stationary

CO2 Sequestration

Steam reforming Companies (Additional details in Annex) Companies (Not covered in Annex) Acumentrics Corporation Air Products Anuvu Fuel Cell Products Chevron Texaco Dais-Analytic Corporation Delphi Corporation DuPont Electrochem Inc Energy Conversion Devices Ford Motor Company FuelCell Energy GE EER Corp. GenCell Corporation General Motors HydrogenSource Manhattan Scientifics Millenium Cell Northern Power Systems Plug Power Praxair Proton Energy Systems Quantum Technologies Siemens Westinghouse Teledyne Energy Systems UTC Fuel Cells (prev. IFC) ZTEK Corporation X X X X X X

Pressurized gas

H2 Distribution

Metal hydride

Gasification

The general findings with respect to US strengths and weaknesses are summarised in Table 12 below:
Table 12

US Strengths and Weaknesses


Strengths Presidential support Well defined drivers Well developed roadmaps Substantial R&D budgets (5-year time horizon, increasing and refocusing annually) Public procurement of new technologies Establishing international codes and standards (increased funding) State driven priorities (e.g. California) Very large REN resource potential Education/raising awareness Training Access to large skill base Strategy covers whole supply chain from materials to procurement Weaknesses Inter-State competition for funding Lack of pan-US co-ordination of effort (commercial rather than collaborative approach) H2/FC lags other energy R&D funding

Electrolysis X

Automotive

Portable

MCFC

DMFC

SOFC

PAFC

Liquid

Other

PEM

AFC

X X X X X X X X X X X X X X X X X 4.1.4. X X X X X X X X X X X X X X X X X X X X X X X X

X X*

X* X X X* X* X* X

X* X* X X X X X X X* X X

X*

X*

X* X* X* X X* X

Political

Regulatory Legal Environmental

Social Technological

Non-alignment with Kyoto Lacking strong REN funding to improve the H2 resource base at home Low energy costs and public acceptance of paying more Versus the European situation the breadth of approaches is comparatively limited

33

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells R&D structure blue sky at National labs and Universities Roadmaps clearly identify technological goals/barriers Advanced (public-private) demonstration programmes Establishing international links PEM developers Automotive applications Steam reforming Industrial competitiveness (historic) Access to venture capital funding Very high energy savings potential Industry base covers all technologies Public private partnerships Increasing staffing levels Increasing sales NG resources are currently massively shrinking taking away one major PE which is high on the agenda

Economic Financial Commercial Industrial

Non-US industry partnerships established and sought

4.2

CANADA

4.2.1 GENERAL ENERGY OUTLOOK For general expected energy demand, see Chapter 4.1.1 General Energy Outlook of the USA. In terms of the overall energy R&D budget (see Figure 11), recent years have seen a strong increase in support for energy efficiency/conservation technologies similar to that observed in the USA. Previously, energy R&D was dominated by fossil fuel and nuclear research.
Figure 11 Canada Total Energy RD&D (1974-2002)
600 T o ta l T o ta l T o ta l T o ta l T o ta l T o ta l C o n s e r v a tio n P o w e r & S to r a g e T e c h . R e n e w a b le E n e r g y F o s s il F u e ls O th e r T e c h ./R e s e a r c h N u c le a r F is s io n /fu s io n

500

400

US$ (millions)

300

200

100

0 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Year

Data Source: IEA (2002 Prices and exchange rates)

4.2.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS Canada is one of the leaders in fuel cell and hydrogen system development. In commercial terms this is spearheaded by companies such as Ballard Power Systems and Stuart Energy, who have global recognition as leaders in their respective technology fields. As a result, Canadian companies have established internationals links and have become an intrinsic 34

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

element of global market developments. More broadly, there are several market drivers for fuel cells and hydrogen: Partial liberalisation of energy markets (interest in distributed generation) Reliability of energy supply (recent electricity blackouts have fuelled this) Air quality Increasing competitiveness of supporting industry base.

Canadas long-term objective is to maintain its position as a world-leader in the evolution of a hydrogen economy. Its R&D and support programmes aim to lead efforts to demonstrate new concepts with the objectives of: Increasing awareness and acceptance of the hydrogen capability Integration of hydrogen and hydrogen-compatible technologies - Production gas separation, reforming, electrolysis - Storage & supply - Fuelling reforming - Safety sensors, modelling Development of hydrogen infrastructures Development of skills and supply chain in the hydrogen Industry Development of codes and standards for the hydrogen Industry Increased performance, reliability, durability and economical viability of hydrogen and hydrogen-compatible technologies.

With respect to fuel cells and hydrogen, Canada aims to maintain its position as a world leader in the research, development and commercialisation of the technology. More specifically, objectives have been enunciated as: Stimulating early market demand demonstration projects, public information programs, early purchase programs. - PEM and SOFC for all applications including materials, components and demonstrators - Balance of plant and system integration Improving quality, reducing cost Financing (Access to Capital) Creating supporting infrastructures: availability of skilled staff; codes and standards, fuelling infrastructure, where required.

4.2.3 GOVERNMENT FUNDING OF H2/FC RTD Federal government program support was available to and utilised by fuel cell and hydrogen technology developers already in the early 1980s. The support was at a micro-level and does not necessarily imply any overarching policy direction. It created and supported a number of industry networks, which helped to co-ordinate activities in the early stages that have stimulated and promoted industry capabilities worldwide. Between 1982-2002, the Canadian Government supported its native fuel cell industry with CA$192m (123m) in the form of in grants, contributions and loans. However, in the recently 35

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

published Canadian Fuel Cell Industry Commercialisation Roadmap, this level of funding is highlighted as being very much lower than Canadas main competitors and an issue that must be addressed if Canada is to maintain its market position. In October 2003, the Canadian Government announced CA$215m (138m) of funding to be focussed on hydrogen based technologies and with priorities on R&D, Infrastructure Development and market uptake. A more detailed overview of government funding is given in Table 13 and Figure 12.
Table 13 Government funding of Fuel Cells and Hydrogen RTD&D in Canada 2000 2006 (CA$ million)
Budget & Timescale 215 (2003) (137.8m) 23 (14.7m) 4.5 (2.9m) 8.6 annually (5.5m) Activities

Government Agency Natural Resources Canada H-Economy Initiative - Canadian Transportation Fuel Cells Alliance - CANMET - Climate Change Action Fund - Hydrogen and Fuel Cell R&D programme currently Department of National Defence AUTO21 Networks of Centres of Excellence Action Plan 2000 - Climate Change Development Programme Federal Support Environment Canada - Climate Change Action Fund/Technology Early Action Measures Human Resources Development Canada Industry Canada Natural Science & Engineering Research Council National Research Council Institute for Fuel Cell Innovation Public Works Government Services Canada Technology Partnerships Canada Transport Canada British Columbia Ministry of Competition, Science & Enterprise Western Economic Diversification Canada Technology

Demonstrating fuelling infrastructure Broad range of transportation technologies Testing fuel celled vehicles Infrastructure (CTFCA, H2/FC R&D and communications (see Figure 12 for breakdown) Fuel cell technology demonstration R&D, adoption &

23 (14.7m) 19 (12.2m) 110 (2000-2002) (70.5m)

Programme including fuel cells. (+ matched industry funding) Spread across a number of areas to accelerate technology development/build partnerships

Life cycle/technology assessment Demonstration projects across broad technology area Skill assessment, workforce gap analysis Roadmap developer and funds Fuel Cells Canada R&D 20 (12.8m) FC demonstration and training programmes. Customer/public procurement Supporting fuel cell technology base: CA$19m (12m) co-ordinated by DuPont Canada Policy and regulatory framework Promotional and co-ordination activities. 13 (8.3m) Demonstration projects

The figures in Table 13 (above) might be misleading. It is very difficult to delineate total funding: the years are overlapping as are some of the programs. One conclusion from the table could be that there are many agencies and overlapping responsibilities that may not lead to a very clearly defined program environment. At the federal level specific steps have been 36

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

taken that are leading to more co-ordination and co-operation. However, there is still a lot of overlap and lack of co-operation between agencies and the very multiplicity of funding agencies leads to inefficiencies. Despite all of the work to date there is still not Canadian national strategy that has been explicitly expressed in any documentation.
Figure 12 Annual NRCan Budget for Hydrogen Fuel Cell and Infrastructure (CA$m)

Fuel Cells 2.48

Communications 0.08

Safety 0.25 Utilisation 0.21 Storage 0.725

Infrastructure 4.6

Production 0.25

Data Source: Natural Resources Canada

Through the development of the roadmap, the Canadians have identified a fuel cell and hydrogen commercialisation strategy based on their national capabilities, knowledge and resources. As a result, Canada has accepted that it is not capable of contributing to the development of technologies across the whole supply chain and is eager to support the development of international links for its industry. The creation of Fuel Cells Canada underlines this approach. Funding for demonstrators has been more limited in Canada than in Japan, the USA and Europe, but will be significantly enhance in the coming years with the availability of new funding from the government (CA$ 215m, see Table 13). The first major Canadian demonstration project is Hydrogen Highway, a project to connect the two cities of Vancouver and Whistler (123km) with a hydrogen infrastructure by 2010 when the Olympic Winter Games will be held in the area. The Canadian government is funding the initiative with CA$ 1.1 million (0.7 million). The project is part of the wider Canadian Transportation Fuel Cell Alliance (CTFCA), a 7-year, CA$ 33 million (21 million) programme initiated by the Canadian Government and lead by Natural Resources Canada (NRCan), which aims to demonstrate various fuel cell vehicles and different fuelling options. 4.2.4 INDUSTRY ACTIVITIES The breadth of Canadas fuel cell and hydrogen industry covers most fuel cell types - mainly PEM and SOFC materials/components, systems development and integration, fuelling systems and storage. A total of 2,700 people work for companies whose core business is hydrogen and fuel cell related.

37

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 14

Economic Impact of H2/FC Industry in Canada Revenue R&D Expenditure SME R&D Expenditure Direct Economic Impact (Industry Size) Direct Canadian Employment (jobs) Direct Out-of-country Employment (jobs) Total Direct Employment

2001 CA$ 96.9m (62 m) CA$179.0m (115 m) CA$21.8m (14 m) CA$275.9m (177 m) 1,701 71 1,772

2003 CA$188m (120 m) CA$290m (186 m) CA$92.1m (59 m) CA$523.1m (335 m) 2,430 255 2,685

Growth
94% 62% 322% 90% 43% 259% 52%

Source: Fuel Cells Canada. Canadian Hydrogen and Fuel Cell Sector Profile 2004 and Sypher:Mueller International Inc. Economic Impact of Industrial Hydrogen Activity in Canada

The majority of these jobs and revenues (see Table 15) generated originate from Western Canada and are due in the main to the cluster building around Ballard Power Systems in Vancouver. Western Canada covers 72% of Canadian H2/FC research and development also.
Table 15 Revenue figures for Canadian Fuel Cell Industry 2003 (CA$ million) Total 2003 188 Export 88.4 Equipment Sales 145.1 Western Canada 93.1

Revenues

Data Source: National Research Council Canada

The Canadian FC industry is characterised by small companies. In 2003, there were 17, whose primary activities were either production or system integration. Other larger companies do have some involvement, but, significantly, more at a component (parts and systems) and services level. However, these larger players are bringing with them a broader understanding of markets and business planning. The distribution of fuel cell company types can be seen below.
Figure 13 Distribution of Canadian Fuel Cell Companies

Data Source: Sypher Muller/NRCan (Canadian Fuel Cell Commercialisation Roadmap)

The fuel cells industry has grown organically, facilitated by Government and industry cooperation, particularly through organisations such as Fuel Cells Canada. In addition, through Fuel Cells Canada, Canada has created an outward facing organisation that supports the access of international expertise in areas where internal industry gaps existed. Export is the 38

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

mainstay of the industry, which has been driven in the major part by non-Canadian Government funded programmes.
Table 16 H2/FC RD&D Activities for a Selection of Canadian Companies
H2 Production Photocatalytic anf Biochemical Production H2 Storage Conversion & Utilisation Balance of Plant (system integration) Applications (*Demo)

H2 Distribution (Methanol )

Gas separation techniques

Thermochemical (nuclear)

Domestic Stationary/UPS

Distributed Stationary

Automotive/Vehicles

CO2 Sequestration

Steam reforming Companies (Additional details in Annex) Companies (Not covered in Annex) Astris Fuel Cells Inc. Ballard Cellex Power Products Dynetek Energy Visions Fuel Cell Technologies Global Thermoelectric HERA Hydrogen Storage Systems Hydrogenics Methanex (Methanol) Palcan Fuel Cells PEM Technologies Powerdisc QuestAir Technologies Stuart Energy X

Pressurized gas

Metal hydride

Gasification

Canada is one of the leaders in fuel cell and hydrogen system development. Companies such as Ballard Power Systems and Stuart Energy have global recognition as leaders in their respective technology fields. One example of the high quality of Canadian H2/FC industry is the concentration of Shell corporations H2/FC venture capital investments on Canadian firms. Its investments include metal hydride (HERA Hydrogen Storage Systems), fuel processing (QuestAir Technologies), and home hydrogen refueling product (Stuart Energy). Canadian companies have established internationals links and have become an intrinsic element of global market developments. The general findings with respect to Canadian strengths and weaknesses are summarised below:
Table 17 Canadian Strengths and Weaknesses

Political

Regulatory Legal Environmental Social

Strengths Early recognition of benefits of H2/FC technologies Commitment to increasing R&D spend Strategic support for cluster development Well defined drivers Roadmaps established Establishment of Fuel Cells Canada Establishing international codes and standards
Nationally driven priorities Very large REN resource potential Education/raising awareness Skills development

Electrolysis X X

Portable

MCFC

DMFC

SOFC

PAFC

Liquid

Other

PEM X

AFC X

X X X

X* X*

X X X X X X X X X X X X X X X X X

X* X* X X

X*

X X X X X X

X X X

Weaknesses More coherent cross department policies needed Lack of funding for demonstrators Lack of provincial policies and programs

Missing strong REN funding as H2 source at home Access to large skill base

39

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Established strong international collaborative links Roadmaps clearly identify technological goals/barriers PEM, SOFC, electrolysis, H2 production and storage Cluster effect of Ballard Power Systems Increased exports Increased employment International regards as industry leaders in certain technology areas (e.g. Ballard, Stuart Energy Public-private partnerships Need to concentrate on core competencies MCFC, PAFC Access to venture capital

Technological Economic Financial Commercial Industrial

4.3

JAPAN

4.3.1 GENERAL ENERGY OUTLOOK Japan, with the worlds third-largest economy (measured by purchasing power parity), is the fourth-largest energy-consuming country, accounting for 7% of world demand. Japan is highly dependent on imported energy, especially oil. The country is one of the least energyintensive in the OECD. This is due to historically high energy prices, highly developed service and light manufacturing sectors and low residential energy use. Japan is committed under the Kyoto Protocol to reducing its greenhouse gas emissions by 6% below their 1990 level during the period from 2008 to 2012. The government decided to ratify the Protocol in 2002. In 2001, the Japanese Governments Advisory Committee for Natural Resources and Energy completed a review of energy objectives and policies for the next ten years. Recognising the difficulty of increasing Japans nuclear capacity as fast as originally planned, the review calls for further efforts to save energy, to promote the use of renewables and to encourage switching from coal to natural gas. A package of new or enhanced measures would, it argues, enable Japan to achieve its Kyoto emissions reduction target and to secure stable long-term energy supplies In its recent long-term policy review, the Japanese government increased the priority of promoting natural gas, mainly because of its environmental advantages. Japanese energy R&D has been dominated by nuclear fission/fusion research (see Figure 14). R&D in fossil fuel areas has decreased over recent years, and is being replaced by efforts in the power and storage technology areas which includes hydrogen and fuel cells.

40

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 14
3500 3000 2500 US$ (millions) 2000 1500 1000 500 0

Japan Total Energy RD&D (1974-2001)

Total Conservation Total Power & Storage Tech. Total Renewable Energy Total Fossil Fuels Total Other Tech./Research Total Nuclear Fission/fusion

1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Year

Data Source: IEA (2002 Prices and exchange rates)

Unlike many of its competitors, Japan has maintained a high level of support for energy R&D throughout the time period since the mid-1970s. 4.3.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS Japans longer term energy strategy has emerged from an expert committee that was established by the Japanese Government in 2000. This committee proposed timeframes and strategies to support these policy goals. Hydrogen and fuel cells are two of the main areas of interest in this strategy. The main drivers for this are: Energy Security (Japan has a high reliance on imported crude oil & natural gas) Energy diversification Environment (Meeting Kyoto targets on reduced greenhouse gas emissions).

These issues were highlighted in a review of energy policy carried out in 2001. In December 2002, a cross-ministerial agreement reinforced the proposed approach Ministry of International Trade and Industry (MITI, now METI) Ministry of the Environment (MofE) Ministry of Land, Infrastructure and Transport (MLIT).

The Japanese Government followed this by setting ambitious targets for the penetration of hydrogen fuel cells in automotive and stationary power markets. These targets are shown in Table 18. Japan aims to exploit its established position as a leader in the automobile and electronics industries. Accordingly, Japans fuel cell and hydrogen RTD&D focus is primarily aimed at achieving the technological advances to enable high performance and cost effective fuel cells to penetrate the automotive and stationary power markets.
Table 18
Year 2010 2020 Source: Japan NEDO, 2003

Japans targets for fuel cell sales


Transport (No. vehicles) 50,000 5 million Stationary (Capacity (MW) 2,100 10,000

41

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Japan is setting itself a framework of objectives that will set the future milestones (See Figure 15) in the achievement of its energy and environment policies. These objectives are to: Support market introduction of H2 fuelled FC-vehicles from 2005 Establish a H2 infrastructure for vehicles Contribute to the global environment and to secure energy sources.

A public-private collaborative venture has been created to help achieve the targets set out in the outline strategy. This brings together the Policy Study Group for Fuel Cell Commercialisation (a government research group) and the Fuel Cell Commercialisation Conference of Japan (FCCJ a voluntary industry organisation representing 137 system integration, component and materials companies). This grouping will accelerate development through the stimulation of R&D in non-competitive areas such as, engineering and safety standards; test methods; lobbying government on regulatory obstacles.
Figure 15 METIs Scenario for Market Introduction of FCs and FC-Vehicles

Source: Kazukiyo Okano Presentation to Path Hydrogen Workshop, Mexico (2003)

4.3.3 GOVERNMENT FUNDING OF H2/FC RTD Japans government has been supporting hydrogen and fuel cells technology development and commercialisation since 1981. The fuel cells and hydrogen RTD&D budget is under the government department METI, and the majority is co-ordinated by the closely affiliated New Energy and Industrial Technology Development Organisation (NEDO). In 2002, a budget of 25bn (190m) spent on hydrogen and fuel cells, with 9.1bn (69m) being directed at hydrogen research (See Figure 16 for the split in activities), part of which funds the World Energy Network (WE-NET). WE-NET was established in 1993 originally as a 28-year programme. It was later radically restructured as technology and policy development elsewhere advanced to support the development of hydrogen production, storage, distribution and utilisation technologies with a total budget of c. 22bn (168m).

42

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 16

Hydrogen R&D Budget Split (FY2002) - 9.1bn (69m)


Coke Oven Gas 13% WE-NET 32%

PEM Demonstration 55%

Source: METI

In the latter phase of the programme (1999-2003), emphasis was put on testing and commercialisation in the following areas: System evaluation Safety measures Review international cooperation Power generation technology H2 fuel tank system PEM utilising pure H2 H2 refuelling station H2 production technology H2 transportation & storage technology Cryogenic materials technology H2 storage materials Other new technologies

In 2003, METI proposed a new programme worth 30.7bn (236m) to run from FY 2003-FY 2007, with an initial budget for FY2003 estimated at 34.6m (see Table 19). R&D spending is divided into low temperature (PEM) and high temperature (MCFC and SOFC). The R&D priorities have been established as: Validation and evaluation for safety of hydrogen to enact regulation, code and standards Establish H2 infrastructure and develop related technologies - compressors, high pressure H2 cylinders Micro fuel cell systems for electronic devices.
Origins of Japans Current Fuel Cell Programmes ( billion)
Programme Sunshine Program Moonlight Project Budget FC Component N.A. US$ 110m (17 years) Programme request 30.7bn (236m) for FY 2003-FY 2007 METI (2002) New Sunshine Program 144m (10 years) Polymer Electrolyte Fuel Cell Development Program 17m MCFC R&D budget 2002 15m SOFC R&D budget 2002 32m testing, measurement, and evaluation Activities Technologies for alternative energy sources to petroleum Energy efficient technologies (total budget US$ 520m) Hydrogen and Fuel Cell Demonstration Programme (JHFC) FY2003 3.87bn yen (30m) 50% increase on FY2002 FC Vehicle Test programme 2003

Table 19
Agency METI (1974) METI (1981)

43

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Japans Ministry of Land, Infrastructure and Transport (MLIT), supports R&D and related activities fuel cells and hydrogen and their market introduction, for example: Early in 2004, established a proposal for the development of low-cost methane production sewerage sludge as a route to hydrogen for future FC-vehicles In 2002, proposed a two-year tax exemption policy for FC-vehicles Granted General Motors HydroGen3 the first-ever approval to drive a liquid hydrogenfuelled vehicle on public roads in Japan.

Japans Ministry of Education, Science & Technology (MEXT) also supports R&D at university level alongside METI. Japanese fuel cell R&D since 1981 is characterised by a series of trends (Figure 17). Differing emphases have been applied to various fuel cell technologies. Early R&D was directed towards PAFC for stationary applications, but this was superseded by efforts in the MCFC area in the late 1980s. MCFC has remained a priority until today, but more recently, interest in SOFC has seen increased funding. Perhaps most significant is the exponential increase in funding of PEM R&D. Until the mid-1990s, there was very little on-going work in PEM, but this has now become the leading area of R&D support.
Figure 17 Japans Fuel Cells RTD&D Budget 1981-2002
10000

S O FC
8000

P A FC PEM M C FC

Yen (millions)

6000

4000

2000

0
1981 1984 1987

1990

1993

1996

Data source: Japan NEDO, 2003

Todays, the emphasis on PEM is mainly driven by the strong industrial interest from Japans domestic automotive industry. A breakdown of the FC-RTD&D budget is given in Table 20. All programmes are now dedicated towards reducing the cost of manufacture of fuel cell systems and establishing necessary codes and standards. NEDO is also directing university based research towards next generation of fuel cells, which will operated at intermediate temperatures (150-300oC). On a collaborative, front, NEDO supports industry/university consortia in the development and optimisation of fuel cell technologies; for example lower operating temperature SOFC.

2002

Y ear

1999

44

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 20

METI/NEDOs PEM MCFC & SOFC related budgets for FY2002 and 2003 ( billions)
Timeframe 2002-2004 2001-2004 2002-2004 2003-2005 2000-2004 Total PEM FY2003 5.3 (41m) 0.24 (1.8m) 3.9 (30m) 9.4 (72m) 3.8 (29.3m) 1.1 (8.5m) 0.54 (4.2m) 5.4 (42m) 3.3 (25.4m) 1.1 (8.5m) 0.6 (4.2m) 5.0 (39m) FY2002 5.3 (41m) 3.1 (24m) 8.4 (65m)

PEM System Development PEM Component Technology Development Next Generation PEM System Project Micro-PEM Development (NEW) Engineering & Safety Standards for PEM systems High temperature fuel cell (MCFC/SOFC) technology development Gas refining technology for fuel cells High throughput hydrogen separation membrane for high temperature operation

2000-2004

TOTAL for MCFC & SOFC Source: MITI/NEDO (British Embassy, Tokyo, Fuel Cell Development in Japan)

The Japanese government has bankrolled stationary fuel cell development since the early 1980s, and Japanese companies such as Tokyo Gas and Osaka Gas have undertaken some of the worlds largest field trials of stationary fuel cell systems. Looking forwards, MCFC installations in Japan will be supported by the First Energy Service Company (FESCO). Backed by a consortium of Japanese utilities and corporations, FESCO will pay for the installation and servicing of MCFC systems made by IHI (Ishikawajima-Harima Heavy Industries) from 2004, the cost of which will be covered by leasing charges.
Table 21 Hydrogen Stations; Japan Hydrogen & Fuel Cell Demonstration Project
Hydrogen Station Daikoku (Yokohama) (30m3/h) Ariake (10,000L) Kawasaki (50m3/hr) Asahi (Yokohama) (50m3/h) Senju (50m3/h) Oume (30Nm3/h) Hatano (50Nm3/h) JHFC Relocatable Hydrogen Station (50Nm3/h) Sagamihara (30Nm3/h) Liquid Hydrogen Production Technology Development (200 kg/day - about 2,200 m3/day) Hydrogen Source Desulfurised petrol Off-site liquid hydrogen Methanol Naptha LPG Natural-gas (city gas) Kerosine Off-site hydrogen (curdled) Water and electricity Coke Oven Gas (PSApurified hydrogen) Hydrogen Production Method Catalytic steam reforming (750~850oC, 0.8MPa) From coke oven gas (Nippon Steel) Catalytic steam reforming (250~300oC, 3MPa) Catalytic steam reforming (800oC, 0.8MPa) Catalytic steam reforming (750oC, 0.8MPa) Natural-gas reforming Kerosine reforming Gas storage facilities 250l (40 MPa) x 2 Alkali diaphragm water electrolysis (Mobile) Helium Brayton cycle Temperature: 20 K to 30 K (about -250C to -253C), Pressure: 0.1 MpaG Contractor Cosmo Oil Showa Shell Sekiyu & Iwatani Industries Japan Air Gases Nippon Oil Corporation (ENEOS) Tokyo Gas & Nippon Sanso Babcock-Hitachi K.K. Idemitsu Kosan Nippon Sanso Kurita Water Industries, Sinanen, Itochu Enex Nippon Steel

Note: Average cost of each station is around 300m(2.3 m)

45

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Japan Hydrogen and Fuel Cell Programme (JHFC) a 3-year hydrogen/FC-vehicle demonstration sponsored by METI with a budget of 3.87bn (30m) for FY2003. The programme examining the effectiveness, environmental friendliness and safety of FCvehicles and raise public awareness to fuel cells and the use of hydrogen as a safe and clean fuel. Table 21 describes the fuelling stations set up to date. The project is co-ordinated by organisations with a range of responsibilities: JEVA (Japan Electric Vehicle Association) - FCV on-road trials, ENAA (Engineering Advancement Association of Japan) - hydrogen fuelling infrastructure NEF (New Energy Foundation) - stationary systems.

Steam reforming is the most common technology being used. However, Japan is also looking to exploit surplus hydrogen produced from other industry sectors including steel and chemicals. Japan has identified this as a possible short-term and economic solution for the introduction of fuel cells on a larger scale. The WE-NET project has also established three H2 fuelling stations. 4.3.4 INDUSTRY ACTIVITIES Traditionally, Japanese engineering and technology industries have had very close relationships with Government funding programmes. The same is true for hydrogen and fuel cells. Japans established industries are leading the way in development of new technologies and concepts, particularly the automotive manufacturers and electronics companies. For example, the big push in hybrid engine technology believed to be the major stepping stone towards FC and H2 in transport came from Japanese manufacturers Toyota and Honda. In Table 22, we briefly describe the activities of a selection of these companies.
Table 22 H2/FC RTD&D Activities of a Selection of Japanese Companies
H2 Production Photocatalytic anf Biochemical Production H2 Storage Conversion & Utilisation Balance of Plant (system integration) Applications (*Demo)

Other (nanotubes, alloys, etc.)

Gas separation techniques

Thermochemical (nuclear)

Domestic Stationary/UPS

Automotive (Transport)

Distributed Stationary

CO2 Sequestration

Steam reforming

Pressurized gas

H2 Distribution

Metal hydride

Gasification

Electrolysis

Portable

MCFC

DMFC

SOFC

PAFC

Liquid

PEM

AFC

Companies Companies with demonstration interests, but no R&D activity. AIST, Hitachi, Asahi Chemicals, Raytech, TIFC Asahi Kasei Casio Chubu Power & Mitsubishi Heavy Industries (MHI) Cosmo Oil Co. Ltd Ebara-Ballard Fuji Electric Co Ltd Hitachi Honda Motor Co Ltd IHI (Ishikawajima-Harima Heavy Industries) J-Power Japan Air Gases Japan Steel Works (JSW), Kansai Power, Mitsubishi Materials, JFCC & Oita University Kyocera Marubeni (Fuel Cell Energy)

X X X X X X X X X X X X X X X X X X X X X X X X*

X X

X X X* X

X* X* X* X

X X*

46

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells
Matsushita Electric Works Mazda Motor Corporation Mitsubishi Electric Mitsubishi Heavy Industries Mitsui Shipbuilding (H-Power/Nuvera) NEC Nippon Oil Corporation (ENEOS) Nippon Steel Corporation Nippon Telegraph & Telephone NTT Nissan Motor Co Ltd (UTC Fuel Cells) NKK NTT Osaka Gas Co Ltd Sanyo Electric Shikoku Research Institute SRI Sony Sumitomo Corporation Toshiba International Fuel Cells (TIFC) Tokyo Gas Toto & JFCC Toyota Motors-(and various partners) Yuasa
X X X X X X X X X X X X X X X X X* X X X X X X X X X X X X X X X X X X X X* X* X X X* X X X X X* X* X* X* X* X* X X X X X X*

The general findings with respect to Japanese strengths and weaknesses are summarised in Table 23 below:
Table 23 Japanese Strengths and Weaknesses

Political Regulatory Legal Environmental Social

Technological

Economic Financial Commercial Industrial

Strengths Cross ministerial agreement Well defined drivers Well developed roadmaps Well established public private partnership Establishing codes and standards well ahead of time Assessed Kyoto target and proposed approach to achieve goals Access to skilled workforce All areas of fuel cell technology Long-term R&D structure blue sky at National labs and Universities Roadmaps clearly identify technological goals/barriers Advanced (public-private) demonstration programmes PEM, MCFC, SOFC, steam reforming, thermolytic (by-product of existing industries) Industrial competitiveness (historic) Lack of natural resources
Existing industries: automotive, electronics Public-private partnerships

Weaknesses Disparity between Government targets and industry capability

Limited REN resource base in comparison to e.g. the US and Canada AFC Focus until last year mainly on production technologies and manufacturing, a shift to fundamental R&D occurred only in 2003

Broader economic climate Japan emerging from a period of economic instability

4.4

AUSTRALIA

4.4.1 GENERAL ENERGY OUTLOOK Australia is a major energy producer and exporter of natural gas and coal. It is the worlds largest exporter of hard coal, most of which goes to Japan. Australias commitment under the Kyoto Protocol is to hold its greenhouse-gas emissions in 2008-2012 at 8% higher than in 1990. But Australia has not yet ratified the Protocol, and current trends suggest that emissions 47

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

will turn out much higher than the Kyoto target. The governments response measures include the Greenhouse Gas Abatement Programme, which offers grants for projects that reduce emissions or enhance sinks (forests and other geographical areas that absorb carbon); the Greenhouse Challenge programme, a voluntary energy-efficiency scheme for industry; and mandatory energy-efficiency measures, including standards and labelling. The government has also adopted the Mandatory Renewable Energy Target a programme designed to raise the share of renewables in electricity generation by 2% by 2010. Gas consumption will increase strongly in Australia, where there are low-cost indigenous resources, as well as robust demand in the industrial sector and in power generation. Australia has large and expanding gas reserves and the potential to discover even larger quantities. Proven reserves stand at 3.5 tcm,18 equivalent to well over a hundred years of production at current rates. Mean undiscovered resources are estimated at 3.1 tcm.19 Much of the projected increase in Australian gas output will go to export markets in the form of LNG. Strong growth in demand for gas is expected in Asia/Pacific markets throughout the projection period. Along with Japan, currently the principal market for Australian LNG, China and India are expected to emerge as major potential buyers. 4.4.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS Recent industry-government events and studies that have assessed Australias energy resources have highlighted the importance for the country to adopt a clearer strategy, particularly regarding opportunities that a hydrogen economy might deliver. Although, there is no specific vision, clear recommendations for actions to be taken in the near future have been formulated published in National Hydrogen Study, in 2003. The report highlights the following as the drivers for investing in hydrogen R&D: Energy security (particularly for the transport sector): - Finite reserves of fossil fuels (especially oil) - Geopolitical instability (70% global oil reserves in Middle East) - Price vulnerability (By 2010, Australia may be importing 60% of its crude oil). Environmental benefits: - Greenhouse mitigation - Air quality (public health) - Sustainability (in the long-term) Australian GHG emissions per capita are highest in the world due to fossil fuel use. Australia also has significant renewable energy resources that could be exploited in a future hydrogen economy. Economic - demand for new technologies (competitiveness): - Hydrogen production - Fuel cells for stationary and transport applications - Distributed energy generation - Carbon sequestration.

The study is a preliminary step towards a formal roadmapping exercise and consequently no priorities are set, however the following recommendations are made:
18 19

Cedigaz. 2001. Natural Gas in the World: 2001 Survey, Paris: Institut Franais du Ptrole. United States Geological Survey. 2000. World Petroleum Assessment 2000, Washington.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Develop a vision for hydrogen Identify and overcome barriers to realising opportunities Develop a flexible strategy to take into account global developments Participate in international research collaborations to maximise support for domestic R&D Stimulate industrial participation with programmes and initiatives Establish an Australian Hydrogen Group to drive collaboration, co-ordinate and develop strategies Promote the uptake of new technologies demonstrators, etc. Develop/help formulate international codes and standards Create technology roadmaps.

4.4.3 GOVERNMENT FUNDING OF H2/FC RTD Australias Commonwealth Scientific and Industrial Technologies Organisation (CSIRO) is spearheading the countries fuel cells and hydrogen research activities in collaboration with industry and academia. Through a number of established programmes, its work covers all technologies across the supply chain: Hydrogen generation from fossil fuels: natural gas, ethanol, methanol Hydrogen generation from electrolysis using renewable energy, all solid-state modular system for distributed hydrogen generation Hydrogen storage and distribution Carbon sequestration Fuel cells for transport, portable and distributed generation applications - 1 kWe PEMFC stacks - SOFC in collaboration with Ceramic Fuel Cells Ltd (CSIRO spin-off company).

CSIRO complements this with a breadth of knowledge in: Coal gasification science and technology Systems integration Systems modelling Fluid dynamics, heat and mass transfer Sensors, safety systems Microtechnology Nanomaterials Electrochemistry Solid-state ionics Catalytic chemistry Polymer chemistry Manufacturing systems Materials characterisation

CSIRO has also been involved in the setting up of the Energy Transformed Flagship Program for the development of low emission technologies to meet the social, economic and environmental needs of Australia. The programme has the following themes: Energy futures modelling Low emission electricity Low emission transport Distributed generation and end use efficiency.

49

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

In addition, CSIRO is at the heart of the National Hydrogen Centre, which is being established in collaboration with industry, educational institutes, governments and the community. The center aims to: Promote/facilitate early introduction of the hydrogen economy Be a technology broker for development projects and facilitate the commercial opportunities Support education/training programmes Co-ordinate information and technology demonstration programs Address infrastructure issues - transportation, distribution, refuelling and safety Establish links and collaborations with international organisations.

Other Government supported activities include: Western Australias Planning and Infrastructure Department (State-level) is supporting a fuel cell bus demonstrator in Perth identical to the EUs CUTE Programme Australian Greenhouse Office, Commonwealth - LCA of Alternative Fuels Bureau of Meteorology, Commonwealth - H2 balloon weather stations, Electrolytic systems, storage systems Central Victorian Greenhouse Alliance - H2 buses, education.

These and other projects are summarised in Table 24.


Table 24 Australian Fuel Cells and Hydrogen RD&D Projects

Organisation Avery Technology Pty Ltd Centre for Appropriate Technology Centre for Design, RMIT Centre for Education and Research in Environmental Strategies Centre for Sustainable Energy Systems, Australian National University Commonwealth Bureau of Meteorology CRC for Clean Power from Lignite CSIRO Atmospheric Research
CSIRO Energy Technology, (NSW) CSIRO Energy Technology, (VIC) CSIRO Manufacturing and Infrastructure Technology Centre for Fuels and Energy, Curtin University of Technology Department of Chemical Engineering, Monash University Department of Chemical Engineering, University of Melbourne Department of Chemical Engineering, University of Queensland Department of Materials Science, University of New South Wales Department of Mechanical and Manufacturing Engineering, University of Melbourne Department of Petroleum Engineering, Curtin University of

Fields covered PEM Fuel cells RAPS systems LCA of alternative fuels Renewable-hydrogen plants, H2-ICE vehicles, education
Solar-hydrogen systems Electrolytic systems, storage systems Coal gasification, COAL 21 LCA of alternative fuels Solar-hydrogen systems, microturbines, fuel cells, natural gas reformation, analysis Novel storage materials Fuel cells, hydrogen storage Coal-gasification, COAL 21, electrolysis, partial oxidation of natural gas for syngas and hydrogen production, direct gas to methanol conversion, hydrogen carriers, fuel reforming Hydrogen absorption, catalytic hydrogen production, nanomaterials Carbon dioxide sequestration Fuel cells, coal gasification, storage, catalysis, nanomaterials Hydrogen production and storage materials LCA of alternative fuels, storage systems, fuel combustion Natural gas reformation

50

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Technology Department of Physics, Griffith University Division of Physics and Electronics Engineering, University of New England Electrical and Computer Systems Engineering, RMIT Murdoch University Energy Research Institute Institute for Sustainability and Technology Policy, Murdoch University School of Economics, University of NSW Institute of Antarctic & Southern Ocean Studies/University of Tasmania School of Chemical Egineering and Industrial Chemistry, University of New South Wales University of Tasmania University of Technology, Sydney University of Woolongong

Carbon nanotubes, intercalated graphites Metal-hydrogen systems Hybrid vehicles Fuel cell vehicles, RAPS Transport policy, social issues, Perth Fuel cell bus trial Perth Fuel Cell Bus Trial Wind-hydrogen systems Fuel cells, membrane technology H2 ICE vehicles, RAPS PEM fuel cells Nano-structured materials

Australia highlights that its manufacturing industries possess extensive knowledge in the design and operation of high-volume liquefied natural gas (LNG) facilities. It has been proposed the expertise in the following areas could create opportunities: High pressure gaseous storage and compressors Cryogenic liquid storage (including tankers for bulk-transport) Absorbent hydrogen storage media (hydrides, etc.) Hydrogen bulk storage systems and bulk dispatch terminals Hydrogen pipelines Fuelling stations.

The general findings with respect to Australian strengths and weaknesses are summarised in Table 25 below:
Table 25 Australian Strengths and Weaknesses

Political Regulatory Legal Environmental Social

Strengths Well defined drivers Clear recommendations on possible future strategy


Future plans to address standards and safety codes Need to reduce GHG Large REN resource base Future plans to educate and promote R&D focussed at national laboratory level SOFC, distributed generation PEM Gas storage and distribution (mainly LNG) Lack of natural resources

Weaknesses Early stages of developing roadmap Focus on fossils (coal, gas) Limited demonstration projects No substantial activity addressing codes and standards

No substantial activity addressing education/training Small accessible skill base R&D activity limited

Technological Economic Financial Commercial Industrial

Distributed generation CSIRO significant multi-sector manufacturing and research organisation

Limited industrial activity, particularly fuel cells

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

4.5

CHINA

4.5.1 GENERAL ENERGY OUTLOOK China is the worlds most populous country, with about 1.3 billion inhabitants, over 20% of total world population. For the past three decades, it has been one of the fastest growing economies in the world. Its GDP has increased at an average rate of 8.2% per year since 1971 according to official economic statistics. In purchasing power parity terms, its GDP was $4.9 trillion in 2000, making China the second-largest economy in the world after the United States. With its entry into the World Trade Organization (WTO) in 2001, China is likely to become one of the worlds top ten trading economies in the near future. China is already a key player in the world energy market. It is the second-largest consumer of primary energy, accounting for more than 10% of the worlds total primary energy demand, and the third-largest energy producer after the United States and Russia. Chinas energy resources include 114 billion tonnes of proven coal reserves 12% of the world total and 2.3 tcm of proven gas reserves. Chinas main fuel is coal. It is the worlds largest coal consumer, with 28% of world consumption in 2000. Coal meets nearly 70% of Chinas primary energy needs. It represents almost 90% of fuel used in the electricity sector. Oil accounts for most of the rest of primary demand, while natural gas contributes a mere 3%. Development of the energy sector is one of the priorities in the Tenth Five-Year Plan for the period 2001-2005. The main objectives are to: Diversify the energy mix Ensure the overall security of energy supply Improve energy efficiency Protect the environment.

To diversify the energy mix, the government plans to promote the use of gas and renewables. The Tenth Five-Year Plan also calls for the development of nuclear power. It sets numerical targets, including a reduction of coals share in the primary fuel mix to 64% and an increase in gass share to 5% by 2005. Chinas imports of crude oil and refined products are growing fast. Until the 1990s, the Chinese oil market was largely isolated from the rest of the world, because China produced enough oil to meet its own needs. But oil demand is outstripping production. By 2030, net oil imports are projected to reach almost 10 mb/d more than 8% of world oil demand. Imports will also have to meet 30% of the countrys natural gas needs in 2030. These trends will make China a strategic buyer on world energy markets. The International Energy Agency projects energy consumption for road transport to grow dramatically, from 54 Mtoe in 2000 to 213 Mtoe in 2030 an increase of 4.7% per year. Nonetheless, uncertainties surround the pace of road-transport growth, including possible saturation effects as congestion worsens. There are also uncertainties concerning the structure of demand for road-transport fuel. At present, the government keeps the price of diesel well below that of gasoline. This encourages the use of diesel vehicles, boosts the share of diesel in road-transport energy demand and provokes a mismatch between demand and refinery output

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

of gasoline and diesel. The planned lifting of restrictions on oil product imports and price reforms would help to correct these distortions.20 Environmental problems caused by the burning of fossil fuels are a growing concern in China. According to World Health Organization data for 1998, seven of the worlds ten most polluted cities are in China. Areas affected by acid rain make up 30% of the total land area of the country. The International Energy Agency projects energy-related CO2 emissions to increase steadily throughout the projection period, at a rate of 2.7% per year. They will reach 6.7 billion tonnes by 2030, or 18% of world emissions. By comparison, the United States and Canada together will emit 8.3 billion tonnes in that year. The power sector is responsible for a large part of the increase in emissions, but the share of transport also grows fast. 21 4.5.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS Interest in renewable energy emerged from the 1992 United Nations Environmental and Development Conference and resulted in a series of policy documents that aimed to promote their development and adoption - Agenda for the 21st Century in China and the Sixth, Seventh and Eighth National Five Year Plans. However, there is a realisation that the lack of R&D support and trained man-power, when compared to developed and some developing countries is an issue that must be addressed. Although there has been some noted achievements in renewable energy area, China recognises that there is a substantial gap in its RTD&D activities when compared to other countries. A policy, Outline for Development of the New and Renewable Energy for 1996 to 2010, was created to help develop a new 15-year strategy, which highlights the need for: A clear state energy construction plan Appropriate funding routes at all levels of government Policies and regulations that promote new and renewable energy Increased support Improved commercialisation and industrialisation.

Of the objectives and tasks outlined within this strategy, only one refers to hydrogen, which states that progress should be made on Energy production and storage technologies with emphasis put on solar-hydrogen and coal gasification systems to produce a minimum of 5,000m3 H2 a day. In terms of demand, there are a number of domestic markets that could provide strong drivers for the adoption of clean technologies: Growth of 4-wheel and 2-wheel transport Stationary off-grid power generation for local and remote communities (120 million Chinese do not have access to electricity).

These areas have seen the most significant private sector support and this is reflected in the activity of Chinese fuel cells organisations, where almost three-quarters of Chinas 60 institutions and companies involved in fuel cells research are targeting transport applications using PEM. Over half (55%) of these organisations are involved in pure research, while only

20 21

IEA. 2002. World Energy Outlook 2002, Paris: OECD. IEA. 2002. World Energy Outlook 2002, Paris: OECD.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

13% are involved in manufacturing. A handful of organisations are also working on hydrogen storage (mainly metal hydride) and infrastructure technologies. 4.5.3 GOVERNMENT FUNDING OF H2/FC RTD The Outline for Development of the New and Renewable Energy for 1996 to 2010, outlined a number of priorities for Chinas industrial and academic research community, which have begun to materialise into structured research programmes. In the hydrogen area, some work has been linked to existing renewable energy projects, particularly those relating to solar power. More generally, hydrogen R&D can be summarised as: Production: Photolysis, decomposition of hydrogen sulfide, micro-organisms and biomass Storage: Development of hydrogen storage material (i.e. magnesium hydride and rare earths); and titanium hydrogen storing materials Applications: internal combustion engines, domestic power and fuel cells.

The Chinese Government has been formally supporting fuel cells research since the early 1990s, though China was active in developing AFC back in the 1950s. Recent programmes have had the following priorities: PAFC import technology and equipment to keep abreast of technology developments: control system, structure, gas management and fuel quality MCFC development of stacks, electrodes, control systems and setting up of demonstrators SOFC materials research PEM ion-exchange membranes AFC general.

Chinas Ministry of Science and Technology (MOST) co-ordinates the main fuel cell R&D programmes. Its 863 Programme, which has been running since 1986 and researching a number of areas including energy and environment, was recently approved a 880 million Yuan (88m) budget for a 5-year programme (see Table 26). In contrast to previous programmes, this programme is focused on the commercialisation of fuel cells and on supporting the Chinese auto industry, In order to do so, the government is spending most of the money on vehicles (mostly buses rather than cars) and hydrogen production and storage. Surprisingly, there is no focus on the development of fuel cell two-wheelers. Furthermore, a small amount of the budget will be spend on SOFC and MCFC, aiming to establish two power generation plants, a 50kW MCFC and a 5kW SOFC by 2005. The major aim of the project is to develop three prototype 50kW PEM fuel cell cars and two large 150kW fuel cell buses by 2005. The majority of the funding will be divided among the fuel cell engine developers Shanghai Shen-Li High Tech, Dalian Sunrise Power and Dalian Institute of Chemical Physics (DICP), along with Tongji University and Tsinghua University. Under the funding, Shen-Li High Tech and Dalian Sunrise will develop hydrogen-based engine prototypes for vehicles to be assembled by Tsinghua University and the Shanghai Fuel Cell Vehicle Powertrain Company. These demonstration units may culminate in the production of 100 fuel cell buses for use at the Beijing Olympic Games in 2008.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 26

Chinas Hydrogen and Fuel Cell RD&D Activities

Main Programmes

Budget

Activities
Private companies expected to invest US$200-300m (160-250m) Focus increased on commercialisation of fuel cells - Fuel cell vehicles (hybrid electric drives, primarily two 150kW buses, and three 50kW PEM cars. - Fuel cell key material project: membrane, bipolar plate - Hydrogen production and storage - Future energy project: DMFC, MCFC, SOFC (to establish a 50kW MCFC and 5kW SOFC by 2005) Fundamental research: - New materials, new fuel cell concepts: membranes, etc. - Hydrogen storage (nanomaterials) - Hydrogen production from natural gas, methanol and gasoline Chinese Academy of Sciences (CAS) 3-year programme Focus on PEM Co-funded: UN-Global Environment Facility (US$12m), Chinese Government (US$10m), Beijing/Shanghai (US$10m), industry (US$4m) 6 FC-buses and a H2 refuelling station (steam reforming) for each for Beijing and Shanghai Shanghai to link with Expo 2010 National Natural Science Foundation hydrogen storage State Economic & Trade Commission promotion of FCdevelopment China Sustainable Energy Programme (CSEP) funds nongovernmental organisations Energy efficiency and renewable energy policies Supported by Lawrence Berkeley National Laboratory (US) Multinational agreement with US Environmental Protection Agency and Italian National Board for New Technology, Energy and Environment

863 (MOST)

Yuan 880m (88) Period 20012005

973 (MOST)

US$3.75m (3.1m)

Other Programmes/Activities US$12m CAS (10m) US$36m (30m) FC-Bus Demonstration Period 20022006 H2infrastructure N/A project NSFC N/A SETC CSEP N/A US$5m (4.2m) N/A

N/A

Data Source: Fuel Cell Today, Fuel Cells in China A Survey of Current Developments (2003)

It has been noted that these budgets are small when compared to those of developed countries and their coverage is broad rather than deep and therefore may have a minimal impact on commercial development at a global level. However, it is also important to note that China offers a large and cost effective R&D base and potential workforce that will have an important role to play in the future. Transportation is considered to be the most important initial market for fuel cells in China. The market for replacing batteries in electric bicycles is expected to be the earliest market by some, with buses and cars following on. Electric bicycles are a huge business in China. There are around 400 manufacturers, producing about 2.5 million electric bicycles. This is a sharp rise from the 15,000 units in 1997. This dramatic growth is largely due to legislation banning gasoline fuelled scooters in several major Chinese cities, including Beijing and Shanghai. If fuel cell bikes and scooters can reach price targets, this could be a vast market. Shanghai is working on its own hydrogen infrastructure project. The city will host the World Expo in 2010 and is trying to deploy its own clean energy and fuel cell buses for the event. 55

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The supply of hydrogen as a fuel in Shanghai will not be as difficult as in many other cities, mainly due to the regions vast and flexible fuel sources. In Shanghai alone, four chemical companies have been producing enough hydrogen as an industrial by-product to meet at least the near-term consumer needs of Shanghai. The general findings with respect to Chinese strengths and weaknesses are summarised in Table 27 below:
Table 27 Chinese Strengths and Weaknesses

Political Regulatory Legal Environmental

Strengths Identified drivers Identified gaps in energy R&D Developed long term approach to new technology development Strong political REN strategy advertised
Recognised local, national and global environmental issues Lack of clean distributed energy resources Large resource potential for REN Large educated population (potential skills-base) Demand for distributed generation (link to sanitation, health, industry) All fuel cell types Large accessible research Some Technology milestones identified PEM No entrenched interests/existing technologies Lower manpower costs Lack of established power infrastructure

Weaknesses Fuel cells and hydrogen not included in energy construction plan Lack of interrelated policies to support new and renewable energy No existing roadmap/vision No codes and standards strategy

Social

Lack of promotional activity Other R&D priorities Current lack of trained staff Limited number of demonstration projects High temperature fuel cells Distribute energy applications Hydrogen related technologies Fuel cells and hydrogen have limited access to funding at all levels of Government Lack of fiscal measures to support uptake Low levels of advanced technology manufacturing Weak industrialisation

Technological

Economic Financial Commercial Industrial

Growing industrial base

4.6

INDIA

4.6.1 GENERAL ENERGY OUTLOOK Indias primary energy demand has grown spectacularly over the last thirty years, along with rising population and incomes. It now accounts for more than 3% of the world total. Even so, energy intensity measured both as energy use per unit of GDP and per capita is still very low. Coal accounts for 55% of total primary energy demand and oil for 34%. Gas, hydropower and nuclear make up the remainder. The International Energy Agency estimates that India will become an increasingly important player on world energy markets as continued rapid expansion of the population and strong 56

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

economic growth drive up energy demand. Primary energy supply will rise by an average 3.1% per year between 2000 and 2030. With limited domestic resources, India will have to import more oil and gas. Coal imports will probably increase too, as demand shifts to higher quality grades that can be acquired more cheaply abroad. The countrys oil import dependence will increase sharply, from 65% in 2000 to 94% in 2030. Natural gas could play a much bigger role in Indias energy mix in the future. But financial problems in the power sector the key growth market for gas will need to be resolved, and financing must be found for LNG and cross-border pipeline projects. Some half of the projected growth in gas demand will be met by imports. 4.6.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS Indias recent signing-up to the International Partnership for a Hydrogen Economy (IPHE), demonstrated the countrys interest in supporting the development of carbon free technologies. Like China, Indias interest in hydrogen is driven by two key issues that differentiates them from developed countries: Demand for distributed generation half of Indias population does not have access to electricity supplies Demand for energy from industrial growth.

In addition, there is demand for UPS/stable power supplies and for clean transport in Indias heavily polluted cities. Regarding the latter, one of Indias short term goals is the development of hydrogen ICE two and three wheeled vehicles with metal hydride storage. Indias contribution to IPHE is seen as its ability to mobilise a large scientific R&D base at a fraction of the cost of that found in developed nations. India hopes to be able to replicate the success it has had in the information technology sector and is now pursuing in the biotechnology, medical and pharmaceutical industries. There is currently a hydrogen roadmap for road vehicles in preparation. There is a broad consensus that clean technologies will play an important part in the future of the prosperity of country both in social terms (cleaner urban environments) as well as economic (creation of industries that support clean technology exploitation). Recently (2003), the India Hydrogen Corpus Fund was set up by Indian Petroleum Ministry, which is to be co-ordinated by the Indian Oil Corporation. Its objectives are to: Present a hydrogen roadmap for India - part of this exercise will be to define Indias own policy framework of support and evaluate its comparative advantages Establish guidelines for demonstration projects Establish an India Hydrogen Congress.

Industrial development of PAFC is the most advanced technology, but work on PEM/DMFC as well as MCFC/SOFC to a lesser extent, is also increasing. 4.6.3 GOVERNMENT FUNDING OF H2/FC RTD India considers hydrogen as the green fuel of the near future and fuel cells as important new generation energy conversion devices for sustainable development. Indian R&D efforts in 57

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Fuel Cells began around 1981. The Ministry of Non-Conventional Energy Sources coordinates much of Indias hydrogen and fuel cell programmes under two programmes (see Table 28) though it is reported that only US$10m (8.3m) has been spent on FC development specific research in recent years. The main objectives of these programmes are to: Study/establish feasibility of the production of hydrogen by various processes/technologies Develop materials/processes for production and storage of hydrogen Support projects on utilisation of hydrogen as a fuel for stationary as well as mobile applications Training/ manpower development.

Supporting this is the Hydrogen Energy Development Board, which was formed to coordinate and implement fuel cell development in India. The Energy and Resources Institute (TERI) is a not for profit organisation dedicated to the development and promotion of sustainable energy solutions. Although based in India, it also has satellite activities in a number of other Asian countries as well as a technology transfer office in the USA. Presently TERI is working on: Testing a six-cell assembly MCFC Studies related to Codes, Standards & Policy for developing hydrogen production & usage in India, on behalf of the Planning Commission (Govt of India) Work related to the Hydrogen Development Board, TERI will contribute to: - Field demonstration of technologies - Hydrogen production from renewables (biomass, PV and wind) - Market potential studies for Hydrogen & Fuel Cells for different sectors of the Indian economy.
Table 28 Indias Government Funded Hydrogen and Fuel Cell RD&D Activities

Programme Ministry of NonConventional Energy Sources


Hydrogen Energy

Ministry of NonConventional Energy Sources Chemical Sources of Energy Council for Scientific and Industrial Research Rs.200m (3.3 m) Council of Scientific and Industrial Research

Activities R&D into all fuel cell types Polymer Electrolyte Membrane Fuel Cells Stacks of various capacities have been built and demonstrated by the SPIC Science Foundation Hybrid van using PEMFC has been in operation in Chennai Design optimisation and cost reduction program Development of reformers Demonstrate FC-buses in New Delhi (initially using imported buses, but later Indian produced vehicles) Research in materials/processes/fabrication techniques (Production of fuel cells at affordable prices) Development of technology/ materials/infrastructure support FC-applications - Demonstration of fuel cell technology for various uses Performance evaluation of fuel cells Training, education, awareness raising, etc. Renewable energy PV, wind turbines, and hydrogen fuel as alternatives to fossil fuel
Fuel cells Diverse aspects of research relating to fuel cells for transport and stationary

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Rs. 30m (0.5 m) Centre for Energy Research, SPIC Science Foundation (CER-SSF) Indian Institute of Science ARCI Hydrogen Corpus Fund applications PEM, SOFC (Electrolyte, electrodes) Catalysts for reforming liquid feed stocks such as LPG and methanol PEM development and demonstration (100W-5kW) PEMFC hybrid van (H2-compressed) PEM for stationary and portable applications Fuel processor (in collaboration with National Chemical Labs.) Lab scale DMFC/PEM

PEM materials bipolar plates/porous carbon paper Support the development of a hydrogen powered 3-wheeled rickshaw by 2005-6

According to a report by TATA Energy Research Institute (TERI), there are almost 20,000 villages in India that are so remote that they will depend on stand-alone renewable energy systems for power, an ideal market for fuel cells in the 10-50kW range. Even smaller systems could be used to power irrigation, a large consumer of electricity generated in rural areas. The general findings with respect to Indian strengths and weaknesses are summarised inTable 29:
Table 29 Indian Strengths and Weaknesses

Political Regulatory Legal Environmental

Strengths Identified drivers Identified gaps in energy R&D Developed long term approach to new technology development
Recognised local, national and global environmental issues Lack of clean distributed energy resources Large educated population and focus on training Demand for distributed generation (link to sanitation, health, industry) Large accessible research Some targets established PEM Low manpower costs Lack of established power infrastructure

Weaknesses Lack of interrelated policies to support new and renewable energy No existing roadmap/vision (under preparation though) No codes and standards strategy

Social

Lack of promotional activity Other R&D priorities Lack of R&D support in recent past Limited no. demonstration projects High temperature fuel cells Distribute energy applications Hydrogen related technologies Fuel cells and hydrogen have limited access to funding at all levels of Government Lack of fiscal measures to support uptake Low levels of advanced technology manufacturing Weak industrialisation (Limited number of significant companies)

Technological

Economic Financial

Commercial Industrial

Growing industrial base TERI significant multi-sector manufacturing and research company

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

4.7

SOUTH KOREA

4.7.1 GENERAL ENERGY OUTLOOK South Koreas economy grew at an impressive 7.4% per year over the past three decades, transforming the country from one of the poorest in the world to one of the richest. The heavy industrial sector, which generated high exports, was the main engine of growth. With a population of 47 million and GDP of $776 billion in the year 2000 (measured in PPP), Korea is the tenth-largest OECD economy. Primary energy use surged by 8.8% per year between 1971 and 2000. Korea now accounts for more than 2% of world demand, up from just 0.3% in 1971. Per capita primary energy demand is approaching that of Japan. Korea is highly dependent on imported energy. Imports meet more than 80% of the countrys energy demand. Korea is the worlds fourth-largest oil importer and the second-largest importer of both coal and LNG. The Middle East supplies about 75% of Koreas oil imports. The countrys energy intensity increased in the 1990s, mainly because economic growth in that period was led by energy-intensive industries, such as petrochemicals, steel and shipbuilding. Oil is Koreas most important fuel with 54% of the primary energy mix in 2000. Coal demand remains strong, especially in power generation, although its share of primary energy has fallen markedly since the 1970s. Natural gas, in the form of LNG, was introduced to Korea only in 1986. Since then, gas consumption has grown quickly, reaching 9% of primary energy demand in 2000. The role of nuclear power has also expanded. It provided 15% of the countrys primary energy in 2000. The International Energy Agency expects that oil will continue to dominate the primary fuel mix, but its share will fall sharply, from 54% in 2000 to 44% in 2030. Gas will be the fastestgrowing fossil fuel. Gas demand will grow by 4.4% per year, and its share of primary energy demand will rise from 9% to 16%. Nuclear supply will also increase steadily, while coal will lose some of its market share. The supply of nonhydro renewables, mainly wind power, will grow by 4% per year from 2000 to 2030.22 Koreas energy-related carbon dioxide emissions will increase by 2.3% per year from 2000 to 2030. This is considerably slower than the near 7% rate of increase in the 1990s. Power generation will remain the largest contributor to total emissions. Its share will increase from 35% in 2000 to 41% in 2030. Transports share will also grow, from 20% in 2000 to 23% in 2030. Rapid increases in the number of vehicles and in vehicle size will also exacerbate local pollution. On average, the energy R&D budget increases by 120% per year. Private enterprises contribute a large part of the total gross domestic expenditure on energy R&D (59% of the 798 billion won or 502 million in 1997). Energy R&D represents 6.6% of the countrys total R&D expenditure. In March 2004, the South Korean Government announced that it planned to reduce its dependency on fossil fuels for transport applications by 20%. To enable this, it is stimulating the supply of H2 from nuclear facilities and investing US$843m (700m) by 2019 to achieve this. R&D will be co-ordinated by the Korea Atomic Energy Research Institute, Korea Institute of Energy Research and Korea Institute of Science & Technology.
22

IEA. 2002. World Energy Outlook 2002, Paris: OECD.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

4.7.2 H2/FC DRIVERS, BARRIERS AND ROADMAPS A reassessment of energy policy has prompted South Korea to develop a structured approach to sustainable energy supply. The Government does see that it has an important role influencing areas such as environmental protection, introducing fiscal measures to enable innovation, planning strategic regulations for fair market competition, energy conservation, providing renewable energy and creating markets, R&D for mid-to-long term energy technology, environmental protection and global energy cooperation. Tasks outlined to achieve this include: Developing an environment-friendly energy system - Establish low-carbon energy consumption systems - Strengthening policy for enhancing energy efficiency Disseminating Renewable Energy Infrastructure for Energy Technology Development - Selecting high-priority technologies; establishing a co-operative R&D network among industry, academics and research institutes and strengthening support for renewable energy technology development Fostering Energy Technology-related Manpower - Training experts in areas such as environmentally-friendly energy conversion Promoting Energy Technology Exports - Identify exportable fields and strengthen our competitiveness Strengthening of Financial Resources for Energy Technology Development - Increasing the budget related to energy technology development

South Korean industry is planning to be a player in the fuel cell vehicle market. As the fourthlargest automaker in the world, it has an eye on maintaining its competitive position and sees support by its competitors as a potential longer-term threat to its market position. This has been reflected by Hyundais recent announcement that it plans to invest 5% of its sales revenue in R&D projects for future cars such as gas-electric hybrid vehicles. 4.7.3 GOVERNMENT FUNDING OF H2/FC RTD Main responsibility for government-funded energy R&D in South Korea is held by tow Government departments: the Ministry of Commerce Industry and Energy (MOCIE) and Ministry of Science and Technology (MOST). MOST co-ordinates the majority of fundamental research planning and nuclear research activities, while MOCIE manages R&D programmes across a number of areas currently 117 R&D programmes. Under their auspices, R&D activities are carried out by the following institutions: Korea Institute of Energy Research (KIER) energy conservation, energy efficiency, environment, new and renewable energy, and technology transfer Korea Electrotechnology Research Institute (KERI) power supply, energy efficiency, environmental protection, and advanced materials Korea Institute of Science & Technology (KIST) energy-efficient industrial technology Korea Energy Management Corporation (KEMCO) implementing R&D policy objectives for energy efficiency/conservation, and cleaner energy technologies 61

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Korea Energy Economics Institute (KEEI) energy policy research.

As part of the MOCIE co-ordinated Ten-Year National Plan for Energy Technology Development (1997-2006), R&D centres on energy conservation, new and renewable energy, greenhouse gas emissions reduction, with the objectives of: Reducing total energy consumption by 10% (from a 1996-baseline) and GHG emissions Increasing new and renewable energy supply to 2% of total energy supply Secure resource stability.

The Plan hopes to deliver this through activities covering (See Table 30): Energy efficiency improving the effectiveness of production, conversion, storage, transportation and utilisation of energy; efficient energy promotion Diversification renewables: including hydrogen and fuel cells Clean energy.

To support the programmes, the South Korean Government is providing loans at 4% interest (for up to 90% of the costs) for new and renewable energy producers. Under MOCIEs 10 Year Plan of Energy Technology R&D, there is a proposed National Fuel Cell Technology Plan, which was still under review in Autumn 2003. Recently, MOCIE announced that it is expected that by 2011, a total sum of 470 billion won (295 million) will be injected into the projects to develop hydrogen and fuel cells. As a result, MOCIE has established a project group consisting of industry, academy and research institutes to pursue the technology development plans a full vision is due to be published in June 2004. It is foreseen that fuel celled vehicles and hydrogen fuelling stations will be an important part of the strategy. MOST co-ordinates its own programme, 21st Century R&D Program, which is assessing innovative technologies, infrastructure and carrying out basic R&D. Effort is being pushed towards: Hydrogen Program (launched in September, 2003) CO2 Mitigation & Sequestration Program (2002)
Table 30 KEMCO Investment in Energy Technology Development Projects, 2001 (million Won)
Technology Energy conservation New and renewable energy Clean energy Natural resources Number of Projects 127 44 37 55 Investment by Project Performer 9,910 (6.2m) 8,743 (5.5m) 3,712 (2.3m) 2,507 (1.6m)

KEMCO 21,022 (13.2m) 14,849 (9.3m) 5,909 (3.7m) 6,396 (4.0m)

Total 30,932 (19.5m) 23,592 (14.8m) 9,621 (6.1m) 8,903 (5.6m) 73,048 (46m)

Source: KEMCO

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

South Korean began supporting fuel cell development in 1985 (See Figure 18), focusing on small fuel cell units using domestically developed reformers. Fuel cells were later (1992) identified as a R&D priority area. However, funding for the national program has been modest. From 1992-2000, South Korea invested US$20.9 million (17.4 million) while the government-run Korea Electric Power Corporation (KEPCO) and the private sector together provided US$20.4 million (17 million). A full budget history is given in Figure 19. A recent assessment of R&D programmes produced the following conclusions: Insufficient/inefficient budget Lack of strategies (no roadmap, no vision) Absence of objective/transparent evaluation method Governments quest for short-term outcomes.
R&D History on Stationary Fuel Cell Technologies

Figure 18

Dr Sung-Chul Shin (Korea Institute of Energy Research), September 29~30, 200323

The Fraunhofer Initiative, established in 2000, aimed to develop innovative energy systems based on portable, miniature fuel cells. Partners in the programme include the Fraunhofer Institute for Solar Energy Systems (ISE), where several prototypes have been developed and demonstrated, including fuel cell powered notebook computers, one of which developed with LG Caltex Oil (Korea). The Korean-American joint venture Clean Energy Technologies Inc (CETI) was set-up in 2002. In recent months it has developed a PEM-powered video camera.
Figure 19 Funding for the South Koran Fuel Cell program

Source as for Figure 18

23

Presented at the OECD Conference on the Innovation of Energy Technologies

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

A similar picture of growing support for fuel cells is also seen from an industrial perspective as shown in Figure 20. There has been a steady increase between 1989-2002 both in public and private sector effort, though a dip in overall support between 1999-2000 reflects the delicate nature of the economic climate of the region and corresponds to more general downturn economic performance.
Figure 20 Fuel Cell R&D Budget

Source as for Figure 18

The general findings of South Korean strengths and weaknesses are summarised inTable 31:
Table 31 South Korean Strengths and Weaknesses

Political

Strengths Identified drivers Government recognises role in stimulating industry/technology development Identified gaps in energy R&D Developed long term approach to new technology development
Recognised local, national and global environmental issues Lack of clean distributed energy resources Educated population and focus on new energy specific training Demand for distributed generation (link to sanitation, health, industry) Large accessible research Some targets established H2 from nuclear industry PEM

Weaknesses Lack of interrelated policies to support new and renewable energy Previously short term approach No existing roadmap/vision
No codes and standards strategy

Regulatory Legal Environmental

Current lack of trained staff

Social

Technological

Economic Financial Commercial Industrial


Growing industrial base Industry adept at adopting new technology Automotive and electronics industry (historic)

Insufficient/Inefficient dedicated R&D budget Absence of objective/transparent programme evaluation method High temperature fuel cells Distribute energy applications Hydrogen related technologies Lack of promotion Lack of fiscal measures to support uptake (to be addressed) Fragmented H2/FC industry activity Incumbent state run power industry

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

A sample of significant East Asian companies are presented in Table 32. The biggest competitive threat may originate from Chinese and South Korean companies.
Table 32 H2/FC RD&D Activities for a Selection of East Asian Companies
H2 Production Photocatalytic anf Biochemical Production H2 Storage Conversion & Utilisation Applications (*Demo)

Balance of Plant (system integration)

Other (nanotubes, alloys, etc.)

Gas separation techniques

Thermochemical (nuclear)

Domestic Stationary/UPS

Automotive (Transport)

Distributed Stationary

CO2 Sequestration

Steam reforming AUSTRALIA Avery Technology Pty Ltd Ceramic Fuel Cells Limited Hydro Tasmania Millennium Chemicals Inc CHINA Beijing Fuyuan Fuel Cell Group Beijing Jinfeng Aerosp. S&T Devs. Co. Beijing LN Green Power Company Dalian Sunrise Power Co. Nanjing BINKI Industry Co Ltd Shanghai Shen-Li High Tech Co Ltd Shanghai Yong-Qiang Technology INDIA Bharat Heavy Electricals Ltd Birla Hitech Mahindra & Mahindra Ltd NED Energy Limited Scooters India Limited Sukan Engineering Pvt Ltd SOUTH KOREA Dae Kyoung CNM Co.,Ltd. Hyundai Heavy Industries Samsung Advanced Institute of Technology (SAIT) Samsung Electro Mechanics Taesan LCD Co. Ltd. LG Hyundai

Pressurized gas

H2 Distribution

Metal hydride

Gasification

Electrolysis X

Portable

MCFC

DMFC

SOFC

Liquid

PAFC

PEM X

AFC

X X X X X X X X X X X X X X

X X X X X X X X X X

X X X X X X X X X X X

65

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

H2/FC TECHNOLOGIES IN EUROPE: STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS


SUMMARY

5.1

This SWOT analyses the EUs current competitive positioning in the evolving hydrogen economy and specifically assesses hydrogen and fuel cell technology development. The study has investigated how national capabilities have developed and are continuing to develop and the public and private sectors have adopted strategies to exploit the predicted commercial opportunities. It has drawn on results reported elsewhere in this report, which have provided an overview of past, current and planned future H2/FC RTD&D in the EU and other countries across the world. The initial findings of this overview demonstrated that our SWOT analysis should be looked at on two levels: The EU versus the USA, Japan and a lesser extent Canada, where H2/FC RTD&D is well developed The EU versus the rest of the world where H2/FC RTD&D is not well developed, but where there are future plans to address these areas.

Overall, the review of activity has shown that the EU does hold a strong position in many technology areas. It has well developed H2/FC RTD&D activities and is supporting this with a substantial funding programme over coming years. Such activity is also being reflected at Member State level, though this is not uniform across the EU. Industrially, the EU has a significant number of companies that are contributing to all aspects of technology development and commercialisation. The knowledge and expertise base that is being developed has the potential of being exploited across the world. However, the EU does face strong and growing competition. The EUs main competitors are the USA, Japan and to a lesser extent Canada. Each of these countries has established H2/FC RTD&D support frameworks and developed long term technology roadmaps describing technical milestones over the coming decades. However, other countries assessed (Australia, China, India and South Korea) are significantly less well developed and are just beginning to develop H2/FC RTD&D activities and programmes. Our overview SWOT analysis is based on an assessment that has been carried out on a number of levels: Public awareness/demand management Policy makers response to drivers and barriers Basic research Publicly funded H2/FC RTD&D (including bibliographic assessment) System integration/demonstration activities Manufacturers, markets and applications Industry H2/FC RTD&D activity (including patent analysis).

We measure the outputs and effectiveness of R&D investment with peer reviewed references (since 1994) and patents (since 1990). Each of these areas have been analysed and assessed in terms of: 66

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

H2 production: steam reforming, electrolysis, gasification, photocatalytic or biochemical, thermochemical H2 storage: Pressurised gas, liquid, metal hydride, alanate, nanomaterials Conversion: fuel cell types (ICE for patents only) Applications: stationary, transport, portable.

The results of these assessments demonstrate that the results of the SWOT does not deliver black and white conclusions, rather it provides a flavour of the current situation and identifies issues that need to be expanded separately. This SWOT analysis has enabled a clearer picture to emerge of how the EUs H2/FC RTD&D activities compare. The general findings are summarised as follows:
Table 33 EUs strengths and weaknesses on H2/FC RTD&D

INTERNAL

Political

Regulatory Legal Environmental

Socio-Economic

Technological

Commercial Industrial (Financial)

Strengths High level ministerial support Developing cross department policies Well defined drivers Development of an EU wide harmonised roadmap (supported by the EU project HyNet and HyWays) fostering and encouraging individual national roadmaps Substantial R&D budgets National R&D programmes (particularly in Germany at both national and regional levels). Some incentives to support technology adoption at national level Demonstration programmes Establishing international codes and standards National bodies are collaborating Kyoto targets (EU and national level) Clean air targets (EU and national level) Recognition of longer term requirements for new and renewable energy resources Access to large skill base High quality scientific and engineering base suitable for future commercial needs Industrial competitiveness (historic) Competitiveness as an issue regarding H2/FC technologies High transport fuel costs SOFC, PEM, MCFC (partly using US codeveloped technology) Hydrogen technologies generally National R&D institutions publishing peer reviewed reports Patents (mainly Germany) Good grasp of CHP potentials Well developed system integration know how Industry base covers all technologies Public private partnerships Components industry (materials, volume manufacturing) Industry clusters (predominantly in German)

Weaknesses Currently no incentives for public procurement Lack of understanding of current strengths and weaknesses Uneven spread of expertise and activity across EU EU FPs previously too inflexible/slow to respond to changing R&D needs National priorities vary (although wider research approaches may help identify the best technologies) Lack of pan-EU co-ordination of effort H2/FC lags other energy R&D funding Lack of national roadmaps Issue of pan-EU co-ordination
Differing priorities across EU-MS

Education/raising awareness minimal across whole EU (large variances) Addressing needs of Accession Countries Issue of pan-EU incentives vs national frameworks Demonstration projects that exploit EU developed technologies AFC, PAFC No evidence of capability from Accession Countries Reducing costs of technology 90% of EU patents from Germany Knowledge of industry shape unknown (what is influence of non-EU companies) Making technologies competitive Access to venture capital funding to support industry

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 34

EUs opportunities and threats on H2/FC RTD&D

EXTERNAL Political Regulatory Legal Environmental Socio-economic

Opportunities Support for the creation of markets International trade and R&D collaborative agreements Development of international regulations, codes and standards Drive international agenda towards adoption of clean technologies Filling knowledge gaps (complementing existing capability)
International partnering to develop technologies Introduction of technology demonstrators Inwards/outward technology and knowledge transfer Fuelling networks Sustainable transport (two, four-wheels) Domestic/district combined heat and power Remote, auxiliary, emergency power applications Sustainable hydrogen production (all routes) Hydrogen storage (all technologies) System integration (balance of plant technologies, etc) Hybrid systems Widely existing natural gas pipeline grid Cost competitive application of technologies for niche markets Patenting Licensing technology All technology areas Mergers and acquisitions

Threats US taking lead on global developments (e.g. IPHE)


Federal/Member State policies not yet harmonised Low cost workforce: manufacturing, R&D Off-shoring by EU companies Complexity of forming a cross-border consensus Other renewable technologies adopted Competitors establish strong partnerships Innovation lags competitors PEM (Canada, US, Japan) PAFC (US, Japan) SOFC (Japan, US) MCFC (US, Japan) H2 production (Japan, US) H2 storage (US, Japan, other Asia) All technologies - longer-term (China, South Korea, etc.) Transport applications (US, Japan, Canada) Small stationary (US, Canada, Japan) Large Stationary (US, Japan) Portable application (Japan, US All applications longer term (South Korea, China, etc.) Domestic infrastructure creates niche opportunities not accessible to overseas companies Competitors establish lead industries Support from financial markets concentrated on competitors Failure to meet market needs Commercial scale manufacturing Mergers and acquisitions Emergence of new players China, India, South Korea

Technological

Commercial Industrial (Financial)

An important issue raised by the study concerns the uneven spread of H2/FC activity across the EU with the majority focussed in Germany and to a lesser extent the UK. Germanys strength is characterised by: High concentration of fuel cell and hydrogen technology developers High concentration of demonstration projects Highest number of H2/FC patents produced.

Germany exemplifies the strengths required to build a competitive industry and mimics many of the strengths that are being exhibited by the EUs main competitors as highlighted above. The relative immaturity of the hydrogen economy and the associated technologies means that there remains the need to build on current capabilities, nevertheless there is a need for a

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

more complete assessment of the current situation in the EU and an understanding of how this is likely to evolve over the coming years and decades.

5.2

PUBLIC AWARENESS/DEMAND MANAGEMENT

The steps towards achieving a hydrogen economy are not easy to define. Complex drivers economic, social, political and technological interact to accelerate or slow down the process of evolution. Formulating long-term strategies is a key part of overcoming barriers and clarifying opportunities that are likely to emerge. Co-ordination of stakeholders (public, private as well as the individual) is also an important factor. High level governmental backing of programmes and activities although crucial is not sufficient to ensure the effective take up of H2/FC technologies. Visions and roadmaps need to be supported by concrete actions. The findings of this study have highlighted gaps between strategic development of H2/FC RTD&D at national level and its translation into commercial opportunities. This is mainly true for the developing nations and those that have not traditionally had significant levels of R&D support for new and renewable energy technologies. There are a number of ways in which hydrogen economy policies are supported at different levels but their importance is to generate coherence and increase confidence in the coordination of approaches. Table 35 identifies which countries have decided to adopt such approaches as part of their overall strategy, those that are planning to do so and those that have yet to openly describe future strategies. The assessment is a purely qualitative one based on the information collected for this study. Ease of access of information is in itself a critical factor and reflects whether the information has been widely disseminated or not.
Table 35 Comparison of High Level Government and Industry Co-ordination
National Industry Assoc (FC) Distinct FC R&D Programme National Industry Assoc (H2) (Joint FC) Distinct H2 R&D Programme Distinct FC Vision/Roadmap (Planned) Clarity in overall funding levels* Cross Government Coordination H2 Vision/Roadmap (Planned)

IPHE Member

USA Canada Japan Australia India China South Korea EU Germany UK Italy France Spain Scandinavia

        H H H H H H

        H  H H H H

   H H H H  H H H H H H

            H H

    H H H       

  H H H H H      H

   H H H H     H H H

   H H H H    H H H H

   H H H H  H H H H H H

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

* Country provides no information regarding total budgets (across programmes) for H2/FC RTD&D

North America and the EU as a whole perform well across all aspects. Nationally within the EU the situation is slightly different. No Member State has established a detailed technology roadmap for either hydrogen, fuel cells or both, though many have set up R&D programmes for both areas. A number of roadmap activities are now under way in France, Italy, Norway, Germany and the Netherlands. There is little evidence of any assessment of skills gaps that may exist at national level nor programmes that may be established to address them. For the other countries, the situation is less well defined since they are only now creating the visions to support longer term planning. Assessment of R&D programme activity partly reflects the ease with which data and information can be accessed, which reflects varying policies and information dissemination. Nevertheless, clearly defined and transparent programmes include dissemination to widen the reach of the results, support those aiming to participate and help generate confidence that the research has specific and communal targets. Cross government department collaboration and co-ordination also minimises the risk of duplication of effort and enhances the use of R&D resources. The creation of bodies representing both industry and government are acting as important focal points for national and regional activity. Of the countries examined, Canada has developed the clearest approach for the development of fuel cells. It has identified national strengths and limitations (capability gaps, skills needs, etc.) and created the strategies needed to manage both effectively. Fuel Cells Canada was perhaps the first to act as both co-ordinator and international promoter of domestic industries. In addition, Canada also led the field in realising the strength of clustering companies and providing the finance to support this. There are a number of clusters spread across Canada, but predominantly in the west around Vancouver and Ballard. These have acted as catalysts for commercial collaboration both within Canada and internationally. On the other hand, other bodies such as the US Fuel Cell Council and World Fuel Cell Council have had stronger advocating roles. In Europe, apart from national hydrogen associations that have been established for a number of years, there are now an increasing number of organisations focussed solely on fuel cells. These include Fuel Cells UK, Appice (Spain) and PACo (France), who have varied roles including national co-ordination of industry efforts, public funding and international promotion. Formal long term visions have been developed by the US, Canada, EU and Japan. All have taken 40+ year timescales for their plans and these are compared in Table 36. There is general agreement on the predicted timescales for market penetration of hydrogen and fuel cell technologies across all application areas. Minor variances are found for the types of technology discussed, especially for hydrogen production, but these are relatively unimportant when considering the timescales. The aim of each vision is more focussed on setting broad frameworks that allow the identification of general barriers and opportunities rather than defining precise ways forward. The visions also demonstrate that there are considerable areas of overlap in the approaches being developed. This should not be a surprise, since we are discussing a relatively small part of an overall national R&D strategy and the truly mass market opportunities for hydrogen and fuel cells are likely to be a decade away. The significant technical challenges that still exist on both fronts are common to all and therefore similar R&D programmes are unavoidable. This 70

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 36
TECHNOLOGY Fuel Cells

Cross Comparison of H2/FC Visions - EU, US, Japan and IEA.


2000 FCs and H2 related technologies Codes and Standards 2010 High performance/low cost FCs Mature Technology Mass Production Fuel Cells Fundamental/Applied Research all H2/FC technologies H2/FC Large Scale Commercialisation all technologies H2 from Fossil fuels + CO2 sequestration Significant H2 from renewables Coal Gassification Electolysis - renewable/nuclear-thermochemical Biomass and Wastes Renewable energy Clusters of filling stations, Local production/transport by road Biocatalysis/Photolysis H2 filling station network Widespread H2 pipeline infrastructure On-site distributed facilities Solid State Hydrides Mature Technology Mass Production Solid state- carbon, glass structures 50,000 FCVs Acclerated Sales Interim PPP Fleets 5m FCVs Enlarge markets EU USA Japan IEA 2020 2030 2040 2050

H2 Production H2 from reformer/electrolysis H2 from reformed natural gas/biomass Reforming and Electrolysis H2 Delivery Pipelines, trucks, rail, barges Pressurised tanks (liquids/gases)

De-carbonisation of H2 production De-carbonised H2 production

Integrated distributed networks

H2 Storage
MARKETS Transport

Sale of limited number of FC Vehicles FC-Vehicle & H2 Station Demo Demonstration

Stationary

DG Demos

Portable

Portable Power

5% new cars (3m pa) increasing penetration Bus & Government Car fleets Commercial car fleets PEM for Commercial Applications (<50kW) H2 ICE and FC-Bus demos FC Cars Competitive Car Fleets (direct H2 and reformer) Other transport and APUs Distributed Power Domestic Heating Industrial Power PEM - Industrial and Residential Use. Stationary Distributed Distributed CHP PEM for Commercial Applications (<50kW) SOFC/MCFC for Commercial Applications PEM for Commercial Applications (<300kW) Micro-power competitive PEM - Portable Applications

Utility Systems FCs in aviation Significant growth in DG/FCs FCs dominant in Power generation

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

commonality is the catalyst driving the outwardly looking aspect of many of these programmes, which seek international collaboration (exploiting overseas capabilities and filling national knowledge gaps). This is particularly so for the following areas: Reducing cost/improving efficiency of hydrogen production, delivery and storage Reducing cost and improving efficiency of fuel cells Establishing demonstration programmes Internationally accepted codes and standards Public-private partnerships Building the hydrogen infrastructure Investigating and preparing future decentralised energy and fuel infrastructures.

From the issues discussed in this section the following is concluded for the EU: Strengths Developed EU level roadmap with technology milestones and timescales. Funding levels agreed and priorities identified. Clearly identified environmental and economic drivers

Weaknesses Lack of clear overview of capabilities at Member State-level. Lack of awareness of national strengths and capability gaps (no training needs identified, etc.). Different Member State H2/FC priorities. Lack of overall co-ordination of Member State activities. National versus EU-wide priorities Assessment of overall competitive position A fully coherent utilisation of the R&D synergies across Europe

Opportunities Taking the lead (or establish positioning) for setting the framework for a hydrogen economy Taking the lead (or establish positioning) for setting codes and standards Building on a sound sustainability oriented approach to fully utilise REN policies Benefiting from multiplicity of approaches and learning from the European World in a nutshell Building on a large European market potential (requires end-use specific harmonisation efforts, such as at least common regulations, codes & standards)

Threats Major US, Japan and Canada (equal footing to EU but advantage of being one country possibly short term rather than long term issue). Minor longer term strategy development from other countries and market entry

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Political Strengths and Weaknesses.

Table 37

Region Variable
Political Champion Policy Co-ordination Drivers Roadmap

EU
President Prodi Being developed. Limited at national level except regionally in Germany Well defined Being developed. Limited at national level. Substantial under FP6. National limited except regionally in Germany. Some incentives at national level 13MW Development of EUwide harmonised roadmap (supported by HyNet and HyWays) IPHE Member - Not all Member States Some national level both for hydrogen and fuel cells

USA
President Bush Cross Departmental Well defined Documented for hydrogen and fuel cells Rolling 5-year programme in place Active 40MW

Canada
None named Cross Departmental Well defined Documented for hydrogen and fuel cells Some established programmes. Stated commitment to increased spending. No specific activity Limited Canadian technology mainly exported

Japan
None named Cross Departmental Well defined Documented for hydrogen and fuel cells Series of programmes but no long term programmes identified No specific activity Not identified

Australia
None named Under examination Well defined Early stages of development Some established programmes. Stated commitment to increased spending. No specific activity Limited

China
None named Under examination Identified None to date Programmes date back to 1950s, though currently fragmented Identified (Transport) Limited

India
None named Under examination Identified None to date FC-Programmes date back to 1980s, though currently fragmented. Identified (Transport) Limited

South Korea
None named Under examination Identified None to date FC-Programmes date back to 1980s, though currently fragmented. No specific activity Limited

Government RTD&D Funding Public Procurement Installed Capacity

Strategic Actions

IPHE Member

Cluster development IPHE Member

IPHE Member

Detailed review of current position. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Moves towards developing detailed strategy. IPHE Member

Industry Association Support

Both for hydrogen and fuel cells

Both for hydrogen and fuel cells

Both for hydrogen and fuel cells

Hydrogen

None identified

Hydrogen

None identified

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells Other Areas Strengths and Weaknesses.

Table 38

Region Variable
Environment

EU
Strong drive for clean technologies Security of energy supply Well established energy infrastructure Large skills base no understanding of skills gaps High quality science/ engineering base. Strong industrial competitiveness

USA
Strong drive for clean technologies. Commercial focus Security of energy supply Well established energy infrastructure Non-grid connected areas offer demand Large skills base High quality science/ engineering base Strong industrial competitiveness Access to venture capital

Canada
Strong drive for clean technologies Well established energy infrastructure Non-grid connected areas offer demand Large renewable energy resources Small skills base High quality science/ engineering base Access to venture capital Increasing exports and employment

Japan
Strong drive for clean technologies

Australia
Identified need for clean technologies

China
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy Lack of trained staff Lack of promotional activity Large educated population. Low manpower costs

India
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy Lack of promotional activity Large educated population focus on training Low manpower costs

South Korea
Identified local and national need for clean technologies Need to satisfy growing industrial activity. (Social) Demand for distributed energy

Energy

Lack of natural resources

Lack of natural resources

Social

Large skills base High quality science/ engineering base Strong industrial competitiveness Recent economic performance

Small skills base Lack of trained staff Plans to increase education No factors identified

Lack of trained staff Low manpower costs Lack of supporting fiscal measures Growing advanced industry base Strengthsautomotive and electronics Fragmented H2/FC activities Incumbent State run power industry

Economic Financial

Commercial Industrial

Industry base broad & deep across supply chain Industry clustering (Germany)

Industry base broad & deep across supply chain Increasing sales

Globally recognised as leaders in certain technology areas Industry clustering

Strengthsautomotive and electronics

Limited industrial activity, particularly fuel cells

Growing industry base Low advanced manufacturing Weak industrialisation

Growing advanced industry base Low advanced manufacturing Weak industrialisation

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

A summary comparison of political strengths and weaknesses across all countries examined is shown in Table 37. This is complemented by a summary comparison of the strengths and weakness of other drivers and factors environment, energy sector, socio-economic, etc. across all companies examined in Table 38.

5.3

BASIC RESEARCH

It is generally accepted that the USA supports the largest R&D programmes, but figures are not readily available for the purposes of this study to accurately assess the differences between countries. Consequently, the comparisons made in this study are at a high level and provide only a broad understanding of the current and future competitive positioning of EU H2/FC RTD&D. The EU as a whole holds a relatively strong position with respect to other countries and is by no means weak as compared to the USA. The recent announcement of substantial funding to support H2/FC RTD&D (2.8bn over 10 years) has firmly established the EU as a leader of developments. When combined with Member State level activity, which focuses on national competencies, this position is enhanced. However, caution must be taken in understanding precisely where much of the intellectual property lies that forms the basis of this European activity. This will be discussed in the section on industry activities. There are a number of factors that cannot be taken into account in this study, which also affect the effectiveness of the funding provided. These factors are related to the structure of national R&D networks and accessibility to funds. For example: How easy it is to collaborate All countries support industry-government collaborative R&D, but how is this co-ordinated, what conditions on participation are established, what R&D activities are not supported (e.g. close to market, etc.). How funding is set up e.g. EU FP6 programmes provide 50% funding with the remaining 50% coming from industry and other organisations, while in the USA 80% for R&D is not unusual. In Canada the limits to public funding are lower usually 33-50% with an absolute axe of 75%. Also in Canada most funding to the private sector for R&D is application driven rather than being driven by clearly enunciated technical targets. This may have lead to some acceleration in Canada as the funding supports the business plan of the individual companies and therefore perhaps can accelerate commercialisation. In Japan and elsewhere the structure is less clear. National laboratory/university R&D structure - The types of national R&D organisations vary. In the USA, National Laboratories have a significant role in researching innovative technology and spinning off new ideas to the commercial sector for example, there appears to be particular emphasis on the development of next generation fuel cells. Some similar structures are found in the EU, but not in all Member States. In Canada the National Labs (NRC) are only just beginning to play a role and the universities with the exception of University of Victoria and Trois Rivieres have not played a significant role at all. Almost all the patents and technology development has taken place at the corporate level.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Studies have been carried out that examine these broader organisational issues, but none have been directed towards specifically assessing and understanding their impact on hydrogen and fuel cell technology development. It is clear that some R&D mechanisms do provide an advantage in progressing technological development more rapidly towards a product as well as providing niche commercial opportunities for the developed technologies. Many of the programmes identified in this study do propose elements that drive the uptake of new technology. Only in the USA does this appear to have been to be taken to the level that there are substantial funds available from the public purse to support public procurement and exploitation that is not simply a demonstration project.24 The number of scientific publications is very often used as a sign of the research capacity and growing knowledge pool of a country, or of a specific research community etc. Whereas numbers of publications only tell us about quantity, quality is more closely associated with the indicator relating to citation counts. However, there is a considerable time span between the date when the research takes place and when it is cited. In H2/FC technologies trend shifts can be relatively quick. We are interested in the latest developments also. Therefore, we assess the quality of a research paper by the impact factor of the scientific publication it is published in. An academic evaluation is perhaps the most important and recent use of impact factors. The Journal Citation Report (JRC) impact factor is a measure of the frequency with which the average article in a journal has been cited in a particular year or period. The annual JRC impact factor is a ratio between citations and recent citable items published. Thus, the impact factor of a journal is calculated by dividing the number of current year citations to the source items published in that journal during the previous two years. The impact factor is useful in clarifying the significance of absolute (or total) citation frequencies. It eliminates some of the bias
24

In early 2004, two reports were published analysing the US Administrations Hydrogen Initiative. While both reports recognise the potential of hydrogen to provide energy security and to reduce pollution, both caution against over optimism regarding the time line, in view of the major scientific breakthroughs needed in order for the Hydrogen Initiative to succeed. The National Academy of Engineering/ National Research Council report (http://www.nap.edu/books/0309091632/html/) states that although a transition to Hydrogen could greatly transform the US energy system in the long run, the impacts on oil imports and CO2 emissions are likely to be minor over the next 25 years. Likewise, the American Physical Society report (http://www.aps.org/) stresses that the timeline goals pose significant challenges, since such a large performance gap exists between the current state of the technology and the final goals. Both reports stress the importance of peer reviewed fundamental research (high risk/high payoff basic science according to the APS report) to achieve the necessary breakthroughs and caution about investing too much in demonstration projects too early, since these are very costly and in addition to diverting money from fundamental research, may divert effort toward technology with limited potential if there is not a sufficient scientific knowledge base. At a hearing of the House Science Committee on 3 March, where both reports were presented, David Garman, Assistant Secretary for Energy Efficiency and Renewable Energy at the DoE stressed that the DoE does not intend to launch into premature large demonstration projects and that those which are planned will be for small numbers of vehicles. At the same hearing, there was strong argument by the chairs of both reporting panels against the pursuit of biomass as a credible producer of hydrogen. It is too inefficient and too much would be required. It is noteworthy that large portions of the Hydrogen Initiative funds of the DoE are earmarked by Congress for biomass projects.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

of such counts, which favour large journals over small ones, or frequently issued journals over less frequently issued ones, and of older journals over newer ones. The average impact factors of scientific publications wary from one field or a nation to another. The USA is the overall leader when it comes to the average impact of a publication. Anglo-Saxon nations do generally very well in the comparison, hence, the phenomenon might be partly due to cultural aspects. Indeed, the result of Japan and Germany may suffer from the fact that much of their research is published in local scientific publications that do not typically receive as high impact factors as the more global English-language ones. The South East Asian nations are not the leaders in the impact factor comparison but manage still fairly well (see Table 39). In Table 40, we provide an overview of publications made in the above areas (a more detailed analysis can be found in Annex III). The number of publications has not been stratified to assess where each study stands in the value chain blue sky to near commercial, but provides an indication of where activities are focussed. Publications in hydrogen production concentrate in 2000s on steam reformation. Electrolysis used to be as active a research area but is now declining. The USA is well presented in all major hydrogen production technologies: steam reforming, electrolysis and gasification. They do not necessarily publish as much as the Europeans or Japanese do, but are able to publish their research in prestigious journals. This is clearly visible in hydrogen production by gasification. The relative importance of Canadian research papers in steam reforming has decreased dramatically recently. The USA has been the leading publisher in electrolysis. However, they are about to lose their leading position to Japan. In recent years, Europe has surpassed the USA also. In hydrogen production by gasification, Europe has increased its publishing quite dramatically and is approaching the former leaders USA and Japan. In photocatalytic, biochemical and thermochemical hydrogen production, Europe is very much behind Japan. Japanese are increasing their contribution to these technologies also. The number of publications devoting to various technologies to store hydrogen has increased rapidly during the last few years. Metal hydrides is the leading technology branch in hydrogen storage publications. For example, Europe has tripled its publishing activities in the field from late 1990's to early 2000's. This increase seems to be a common trend for all regions. China is clearly the most prolific publisher in the world. Both Korean and Indian organizations have published more in the field than organizations from any European nation. In hydrogen storage technologies, Europeans can reach number two position only in the liquid hydrogen storage and alanates publications. However, in recent years both Japan and South East Asian nations have increased their publishing effort in the liquid hydrogen storage much more that the European ones have. For example, during the last three years China has published as much as the Germany, the former clear number two publisher in the world. The quality of Chinese research seems to be at the same level as the German one also. If this trend continues, Europe will lose its number two position in just a few years.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 39

Average impact factors in various H2/FC technologies and of the most significant nations
Asia (excl Japan) South Korea Netherlands Switzerland Germany Denmark

Australia

England

Sweden

Canada 1.1 0.9 1.0

France

Japan

China

Spain

India

USA Steam reforming Electrolysis Gasification H2 Production Photocatalytic and Biochemical Production Thermochemical (nuclear) Pressurised gas Liquid H2 Storage Alanates Metal hydride Nanotubes SOFC PEM Conversion & Molten Carbonate Utilisation Direct Methanol AFC PAFC Stationary Applications Automotive (Transport) Portable Number of fields where over average 2.2 1.5 1.8 1.2 0.3 0.8 1.1 1.2 1.2 3.0 2.5 1.6 0.7 2.7 1.1 1.5 0.4 1.6 1.2 13

Italy

EU

All

1.1 0.8 0.9 1.9 0.8

1.6

1.1 1.1 1.1 1.0 0.7 0.7 1.0

0.9 0.7 1.1 0.8 1.3 0.9 0.7 1.1 2.9 2.5 0.9 0.7 1.0 1.0 0.8 0.8 0.7 6

1.7 0.4 1.4 0.9

1.1 0.8 1.2 0.9 0.9 0.7 1.1 0.8 2.2 1.1 1.1 0.7 0.9 0.8 0.8 0.6 1.1 0.7 6

0.9 1.0 0.7

1.5 1.0 0.6 1.7

0.8 0.8 1.0 1.1

0.9 1.3 1.1 0.9

1.7 2.1 0.9

1.5 0.7

3.5

1.5

1.3 1.0 0.8 1.4

8.4 1.0 0.8

1.5 1.0 1.1 1.5

0.8 0.9 0.9 1.8 1.0 1.8 0.7 0.9 1.1 0.9 2.0 0.6 0.7 1.6 7 1.7 0.9 0.8 2.6 1.0 1.1 1.0 1.6 0.8 1.6 0.8 0.8 0.8 8 1.5 1.2 1.8 1.3 0.8 2.6 2.2 1.0 1.1 3.0 1.0 1.0 1.2 1.1 1.2 0.5 1.7 1.2 1.4 1.7 0.8 1.0 1.6 1.1 0.8 6 5 0.9 4 1.5 6

0.5 0.8 1.1 1.5 1.6 1.2 1.7 1.3 1.0 0.8 1.0 1.1 7

1.2 1.4 1.0 2.0 1.4 1.2 0.6 1.1 1.1 0.9 0.6 0.7 7

1.3 0.7 2.4 1.4 1.3

1.0 1.4 1.4 1.5

0.6 1.7 0.5 1.2 0.6

2.7 1.8 1.6 0.9 1.2 0.9 0.8 1.0 9

2.7

1.0 1.3 0.8 0.8 0.6

0.7

2.7 1.4 0.5 3

2.0 5

0.6 0.5 4

0.5 6

0.8 1.2 1.2 1.8 1.1 2.0 1.1 1.1 1.0 1.3 1.3 1.6 0.6 0.7 1.3 11

0.5 0.9 1.3 1.0 1.2 1.1

0.5 0.6 5

0.7 0.9 1.1 1.4 0.9 2.2 1.4 1.3 0.9 1.6 1.1 1.2 0.6 1.0 1.1

note: italics represents a field, where the nations average exceeds the general average

78

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The various nanotechnology-based storage solutions have attracted the highest increase in research volume. China is the leading research publisher, if just the number of research publications is considered. Japanese companies are the most active publishers in the nano-materials for hydrogen storages. In conversion, PEM fuel cells seem to be the hottest research area. The field has the highest number of publications. Percentual increase in the number of publications has been the highest also. The USA is the leading publisher. It has also increased its publishing activities in PEMFC more than any other region in the world. In Japan, there is a clear shift in the publications from solid oxide and phosphoric acid to PEM fuel cells. Japanese companies are relatively well represented in the publishing activities. Other interest areas in conversion seem to be SOFC and as an emerging field direct methanol fuel cells. Europe is the leading publisher of the SOFC related research. In Europe, the most active nations to publish SOFC research have been England, Denmark and Germany. The South East Asia is currently number four publisher in the world in the field. However, these nations are increasing their activities the most. In direct methanol related fuel cell research, Europe is the leading publisher of together with the USA. In Europe, the most active nations to publish research in the field have been Germany and England. The number of research papers concerning the various applications of H2/FC technologies has increased rapidly in the early 2000s. Most of the papers focus on transportation but the share of papers characterising portable applications is increasing. Germany is the leading publisher of research on stationary applications. Europe is together with the USA the leading publisher in transportation applications and has increased its publishing activities more than any other region in the world. Japan has published surprisingly little in the area. In portable applications, the USA is the leading publisher. It has also increased its publishing activities the most. Almost all Japanese publications originate from companies. Quite significantly, these contributions date back to 1990s. It seems that as the commercialisation of fuel cell technologies approaches, Japanese become very reluctant to tell about their research and development to outsiders.

79

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 40

Topic Area Publications since 1994 (figures for the most important nations and geographic areas total publications weighted by their impact factors)
Asia (excl Japan) (%) South Korea (%) Netherlands (%)

Switzerland (%)

H2 Production

H2 Storage

Conversion & Utilisation

Applications

Steam reforming Electrolysis Gasification Photocatalytic and Biochemical Production Thermochemical (nuclear) Pressurised gas Liquid Metal hydride Alanates Nanotubes SOFC PEM Molten Carbonate Direct Methanol AFC PAFC Stationary Automotive (Transport) Portable

367 212 118 146 52 35 229 640 37 283 236 205 57 66 84 71 55 176 46

Figures represent the percentage of the nationss/geographic areas contribution to the field in question: the number of publications is weighted by the publications impact factors bold = leader in the field bold = second in the field italics = third in the field

# Publications

Germany (%)

Denmark (%)

Australia (%)

England (%)

Sweden (%)

Canada (%) 5 10 8 5 3 11 2 5 9 10 12 7 13 6 6

France (%)

Japan (%)

China (%)

Spain (%)

India (%)

USA (%) 32 35 33 7 13 42 30 14 48 26 31 47 7 43 17 11 23 52 53

Italy (%)

EU (%)

14 18 27 65 63 17 19 25 14 17 7 11 4 6 17 4 9

4 5 4 5 6 13 5 21 20 2 4 1

2 2 1 2 6 4 2 10 6 4 3 8 4 12 8 3 4

3 2 4 11

14 10 9 19 12 17 13 41 38 12 11 8 5 22 8 3 12 4

3 3 4

2 6 2 4

2 6 2

4 1 2

7 5 7

2 2

29 21 19 5

4 5 2

7 12 10 4 27 8 4 11 15 7 22 42 8 22 15 1 1 1 7 3 16 15 5 20 7 5 2 7 4 4 5 1 2 3 1 2 1

4 3 4 2 2

1 1 1 29 2 21 3 3 4

3 1

1 1 15 1 2

7 5 3 2 6 3

2 8 6 1 7 3

5 4

3 7

7 27 28 11 27 16 29 26 70 36 40 57 58 24 28

5 9 7 4 2 4

2 2

80

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Further analysis of the raw publication data provides an understanding of the types of organisation that are involved in the R&D activities. The numbers of publications from particular organisations were analysed as part of the bibliographic assessment and the results of this are given in Table 41. The table shows those organisations that appear in the top ten of publishers for the given area and are classified in terms of their nature university, national research institute or commercial organisation. The table reveals that universities are the most prolific publishers overall followed by research institutions. There are only five commercial companies that maintain a high level of publishing activity - Siemens (SOFC), H-Power acquired by Plug Power (PEM and stationary applications), Ballard Power Systems (stationary applications), E.ON Energie (stationary applications) and Sanyo Electric (portable applications). Of significance for Europe is the level of output from its national institutes, particularly in France, Germany and Sweden. The results of this analysis reflect the conclusions described earlier in Table 40 in terms of technology coverage in each country. We must accept that there are limitations to using references as an approach to assessing activity and competitive positioning. It does reflect that activities are being undertaken within a given country, but it does not indicate whether the discoveries being reported are actually being translated into practical invention or technical solutions. For this reason, we have also executed a patent analysis that provides a perspective on the next step of development towards a commercial offering. In fact, for fuel cells in particular, protected intellectual property is one of the key indicators for the financial investment community and underpins confidence that organisations do have some form of competitive advantage. This is described later in the section on industry activities. From the issues discussed in this section the following is concluded for the EU: Strengths Member State-level fuel cells R&D particularly Germany R&D publication across all technology areas - particularly at national institute level (Germany, France and Sweden) Weaknesses Lack of understanding of national RTD strengths and capabilities Opportunities International collaboration (with all countries) approach depending on level of development of H2 and FC activities (all H2/FC RTD&D, standards, etc.). This requires a fuller understanding of skills and capability gaps. Threats USA and Japan already established H2/FC R&D programmes for a number of years with high levels of funding USA and Japan R&D structure well co-ordinated and structured Canadian focus on key national capabilities R&D for H2 production (primarily Japan), H2 storage (primarily the USA, Japan and increasingly China and South Korea). 81

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 41

Comparing publications (in the top ten) Switzerland Germany Denmark Australia Sweden Canada France Japan South Korea China Spain Other

India

Steam reforming IUU Electrolysis IU Gasification I H2 Production Photocatalytic and UU Biochemical Production Thermochemical (nuclear) UU Pressurised gas Liquid II Metal hydride H2 Storage Alanates I Nanotubes U SOFC U PEM Molten Carbonate CIUUU Conversion & Utilisation Direct Methanol AFC PAFC U Stationary C Applications Automotive (Transport) IU Portable U C-Company, I-Research Institute, U-University 25
Gr-Greece, No-Norway, Tk-Turkey

USA

Italy

UK

I UUU IUU IIUU IIU

I U U I U IU

I I I

I I U I

IU

I II I I U II
No-U

U I

UU IU UU UU

IIIUU IUU

I U I I CI I IU I I IIC I I 16

I I I I IU I UU U U U U
7

U U U U

I I I I I
4 1 EU Total: 44 2 4 Gr-U Tk-U Gr-U

UU

IU C U
8

U I
9

U C 26

U
2 13 4 3

I
9 4

82

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

5.4

SYSTEM INTEGRATION/DEMONSTRATION ACTIVITIES

Demonstration programmes are a useful practical indicator of how technology development is progressing towards commercialisation. This is not necessarily related to the country in which the demonstration takes place and therefore it is not necessarily a measure of competitiveness. For example, Canadian technologies are being demonstrated almost everywhere but in Canada. The lack of activities in Canada only exemplifies a lack of government commitment, not a lack of Canadian competitiveness. Demonstration programmes provide an opportunity to address a number of issues apart from technical ones such as raising awareness of the technology to a broader community as well as providing a showcase to investors and potential technology development partners. Demonstrators are the evidence that progress is being made. Many demonstration activities involve products and systems from a wide variety of sources in a number of countries/regions. In the USA, the setting up of the California Fuel Cell Partnership (CaFCP) has had a very significant impact in both focussing US developments within that State, as well as attracting commercial business interests from across the globe. CaFCP started in 1999 as a collaborative 4year project of auto manufacturers, energy companies, fuel cell technology companies, and government. The aim is to demonstrate fuel cell powered cars and buses on public roads in California, promote practical codes and standards and to educate the general public about the advantages of such vehicles. So far, the CaFCP has built two filling stations and has tested over 40 fuel cell vehicles. The project has just been extended for a further 4-year period with US$ 190 million (158 million) funding from the DoE and the same from private companies. However, some of the proposed money is already part of the Presidents FreedomCar and Hydrogen Fuel Initiative. The Controlled Hydrogen Fleet & Infrastructure Demonstration and Validation Project is divided into various sub-projects, but the overall aim is to construct and test 24 fixed and relocatable hydrogen filling stations in California, which will generate their fuel from various renewable resources such as wind power to using a hydrogen pipeline. By 2007, the CaFCP partnership aims to have 300 vehicles in place. Major partners include Air Products, Ballard, BP, ChevronTexaco, DaimlerChrysler, Department of Energy (DoE), Department of Transport (DoT), EPA, ExxonMobil, Ford, General Motors (GM), Honda, Hyundai, Methanex, Nissan, Pacific Gas & Electric, Praxair, Proton Energy, Shell Hydrogen, Stuart Energy, Toyota, UTC Fuel Cells, Volkswagen and Ztek. In California Hydrogen Highways initiative the government would like to see around 200 filling stations, providing access to hydrogen along the state's major highways by 2010. By the end of the year, California will already have 15 hydrogen facilities, making up almost half of all existing stations in North America. Especially since the election of Governor Schwarzenegger, the initiative gained momentum and more publicity. However, it should be noted, that this highway concept is an umbrella project, combining other activities in the state, including the efforts of the South-Californian Air Quality Management District and the California Fuel Cell Partnership. The first major Canadian demonstration project is Hydrogen Highway, a project to connect the two cities of Vancouver and Whistler (123km) with a hydrogen infrastructure by 2010 when the Olympic Winter Games will be held in the area. The Canadian government is funding the 83

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

initiative with CA$ 1.1 million (0.7 million). Sacre-Davey Engineering, Powertech Labs and Fueling Technologies will be responsible for fuelling facilities, however so far, it is not yet decided how many new stations should be built. Other partners in the project include Ballard, BC Hydro, Fuel Cells Canada, Natural Resources Canada (NRCan), the National Research Council Canada and QuestAir. The project is part of the wider Canadian Transportation Fuel Cell Alliance (CTFCA), a 7-year, CA$ 33 million (21 million) programme initiated by the Canadian Government and lead by Natural Resources Canada (NRCan), which aims to demonstrate various fuel cell vehicles and different fuelling options. There are also plans to work closer together with activities in California and eventually create an infrastructure from Vancouver to Los Angeles. A number of technology demonstrations for all technologies and application areas have been supported across the EU. The majority of these have been set up in Germany, where many of future large scale projects are also being planned. North Rhine Westphalia, Baden Wrttemburg and Bayern each have supported the creation of industry clusters that aim to co-develop technologies and systems regionally and in collaboration with others. They have also established regionally funded bodies that support inward and outward technology transfer. This is a picture that is increasing across the EU. More recently, the CUTE (Clean Urban Transport for Europe) project has provided the opportunity to trial PEM fuel cell powered buses as well as establishing a limited fuelling infrastructure. The CUTE project is a with 18.5 million European Union funded programme which has introduced hydrogen buses into urban public transport systems. Nine cities (Amsterdam, Barcelona, Hamburg, London, Luxembourg, Madrid, Porto, Stockholm and Stuttgart) have each received three DaimlerChrysler Citaro fuel cell buses and have installed hydrogen stations, which produce the necessary fuel in various methods. The buses are powered by a Ballard 225kW PEM fuel cell and are being used in regular daily passenger service. The Berlin Clean Energy Partnership is a 5-year project of the VES Verkehrswirtschaftliche Energie Strategie (TES Transport Energy Strategy), a German Federal Government funded organisation, which aims to develop a mediumand long-term strategy to implement an infrastructure for alternative fuels. The CEP programme consists of a consortium of companies including Aral (part of the BP Group), BMW, DaimlerChrysler, Ford, GM/Opel, Hydro/GHW, Linde and Vattenfall Europe. In late 2004 a filling station, supplying liquid and gaseous hydrogen, will open in Berlin to demonstrate the reliability of hydrogen in everyday motor vehicle operation. There are some overlapping activities with the WasserstoffKompetenzzentrum project. In the Icelandic hydrogen project, an Icelandic consortium, Vistorka hf (EcoEnergy Ltd.) set up with DaimlerChrysler, Norsk Hydro and Royal Dutch/Shell a joint venture to investigate the possibility of replacing fossil fuel in Iceland with hydrogen and creating a hydrogen economy. The aim of the joint venture company is to test various applications utilising hydrogen fuel cells or hydrogen energy carriers. Outside the major players of North America, Japan and the EU, there is little industrial activity. However, it is important to understand this in context, since the H2/FC industry as whole is not large. The possibility of strategic support in any of the minor countries such as China, South Korea or India could have a significant impact. For example, gasoline fuelled scooters are banned in several major Chinese cities, including Beijing and Shanghai. If fuel cell bikes and scooters 84

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

can reach price targets, this could be a vast market. Moreover, China plans to use 100 fuel cell buses during the 2008 Olympic Games in Beijing and Shanghai is working on its own hydrogen infrastructure project. The city will host the World Expo in 2010 and is trying to deploy its own clean energy and fuel cell buses for the event. The skilled workforces of China, South Korea and India, cheap labour rates, large population and general competitiveness could permit a rapid turnaround in the global makeup of the industry. The examples of software development in India and microelectronics manufacturing in South Korea are very recent examples of this and demonstrate that strengths can develop across supply chains. In 200325, it was estimated that 2,800 fuel cell systems were produced and currently there are over 7,000 units in operation Figure 21 shows that over half of these have been produced in North America and around a quarter in the EU.
Figure 21 All Systems Built Region of Development

Japan

Rest of the Asia World (excl. Japan)

N. America EU
Source: Fuel Cells Today, Fuel Cell Systems: A Survey of Worldwide Activity

The application of these fuel cells by numbers of units are estimated in Table 42, which reveals that there are few fuel cell units in use outside of the three main geographical areas. North America has almost the same number of installed units as its main competitors combined. Japan and the EU have similar numbers of installations, but if this is considered in terms of geographical size or population, then Japan has a significant lead.
Table 42 Overview of installed Fuel Cell Capacity (%)
EU 30 20 25 North America 40 45 55 Japan 30 30 20 Rest of World Minimal 5 Minimal

Region of Operation 2000 small stationary up to 5kW 650 large stationary 3000 portable and the remainder

Source: Fuel Cells Today (various publications)

25

Fuel Cells Today

85

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

In terms of installed stationary capacity, the USA leads efforts though this is predominantly using PAFC and PEM (See Figure 22). The situation regarding MCFC, SOFC and AFC is more even when compared to the EU. Japan does have a number of installations, but not to the US levels, and Canada has highlighted that this is an area where it has not provided sufficient support in the past. Other countries are only now beginning to consider demonstrations, whether transport or stationary, but at this stage these will exploit technologies developed elsewhere. The demand for demonstrators is likely to grow in the future, especially from developing countries. The United Nations Global Environment Fund is also co-funding their establishment with industry in a number of areas.
Figure 22 Comparison of Number of Stationary Fuel Cell Demonstrators
450 400 350 300 No. Units 250 200 150 100 50 0 PAFC PEM M CFC F u e l C e ll T yp e SOFC AFC US EU

T o ta l E U 1 2 M W T o ta l U S 4 0 M W

Data Source: Core Technology Ventures LLP (2004)

The picture of the current status of fuel cell demonstrators illustrated in Figure 22 is likely to change significantly over coming years as additional plant come on-line in commercial trials as well as part of publicly funded programmes. From the issues discussed in this section the following is concluded for the EU: Strengths Recently established H2/FC RTD&D support Quick Start programme FP6 focus on fuel cells and hydrogen Fuel cell demonstrators particularly SOFC (small and large scale) and transport (e.g. CUTE) Weaknesses Lack of pan-European co-ordination of activities (or decision whether this is required) Spread and overall quantity of fuel cell and hydrogen demonstrators Missing coherence towards a sustainable (= enduring) build-up of a hydrogen supply infrastructure

86

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Opportunities Involvement in non-EU based demonstration projects Threats Knowledge base being established by US demonstration projects all application areas (particularly portable) Large potential initial market for PEM in China.

5.5

MANUFACTURERS, MARKETS AND APPLICATIONS

A recent estimate of the number of companies involved in the development of fuel cells alone exceeds 2,000 companies. The scope of our study is limited to providing an overview of industrial activity for a representative companies from the selected countries. Consequently, the conclusions we draw from the analysis are broad, but do give strong indications of the characteristics of the hydrogen and fuel cell industries as a whole. In addition, due to commercial sensitivities, many of these companies do not reveal specific levels of support for the technologies they develop. For European fuel cell companies, which are predominantly privately owned (not listed), there is no requirement to reveal any financial information. The assessment of competitive positioning of national industries is further complicated by: Globalisation many companies have activities in many countries and access funding within these countries; International collaboration/strategic partnerships current development programmes and exploitation efforts involve companies from different parts of the world.

Therefore, the analysis only gives an illustrative assessment of the current industrial situation. More details on the activities of the companies selected can be found in Annex II. Companies involved in the H2/FC RTD&D can be classified under four main groupings: Smaller Technology Developers: companies developing only H2/FC related technologies many of these companies have developed partnerships (some exclusive) with larger companies and are either co-developing technologies or have licensed the use of components and systems. Larger Technology Developers - companies developing H2/FC related technologies with interests in other technological areas these have emerged from engineering companies that have had long standing involvement in the development of fuel cell technologies (e.g. Siemens, Air Liquide, etc.). Application developers these are companies involved in developing applications and who are involved mainly in demonstration projects this group includes automotive manufacturers, electricity utilities and other portable electrical product manufacturers, etc. Infrastructure providers the companies are by their nature involved in the provision of energy infrastructures (e.g. BP). They are not investing substantial amounts in the development of new technologies, but are contributing to the understanding of future energy economies and participating in demonstration programmes. 87

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The last grouping accounts for much of current global hydrogen production levels. Gas specialist companies and the oil industry are the major players across the supply chain. In the longer term, it is difficult to see how minor companies can establish a foothold in this market. However, in the short term, it is likely that innovators in the hydrogen production and storage areas will make inroads into by developing bespoke products for niche markets. Table 43 summarises the company information gathered for this study showing the number of companies active per type of technology and world region. Fuel cell activities are predominantly focused on PEM fuel cells and their exploitation for automotive and domestic stationary applications.
Table 43 Summary of Company RTD&D Activity for Selected Companies
H2 Production Photocatalytic anf Biochemical Production H2 Storage Conversion & Utilisation Balance of Plant (system integration) Applications (*Demo)

H2 Distribution (Methanol *)

Gas separation techniques

Thermochemical (nuclear)

Domestic Stationary/UPS

Distributed Stationary

Automotive/Vehicles

CO2 Sequestration

Steam reforming

Pressurized gas

Metal hydride

Gasification

Electrolysis

Portable

MCFC

DMFC

SOFC

Liquid

PAFC

Other

PEM

AFC

EU USA Canada Japan Australia China India South Korea

7 6 1 7 -

2 1 2 2 1 -

1 -

1 1 3 -

7 3 2* 7 1 -

6 3 1 1 -

5 2 1 -

2 2 2 1 1 -

1 1 1 1 -

8 5 2 7 2 1

2 2 2 1

20 12 4 10 1 5 2 5

3 2 1 9 1 2

1 1 1 -

4 2 2 1 -

4 2 -

8 7 2 8 2 1 -

14 16 7 6 11 1 1 10 10 6 3 1 1

5 2 5 10 2 1

Electrolysis and steam reforming are currently the most common production methods and pressurised hydrogen the most common storage technology. However, this does not accurately assess areas that are being researched, but represents how the companies are using their technology in collaboration with the fuel cell industry. In this context, it is difficult to disaggregate corporate and government funding without the possibility of double counting and consequently over-estimating the total R&D spend. It is worth noting that the breadth of industrial interest described in the above table closely reflects the shape of publicly funded R&D programmes within those countries. However, it is not possible to conclude whether the majority of industrial activity is driven by public funding opportunities or vice versa. It is also difficult to disaggregate the amount of non-EU developed technology that is currently being used or co-developed.

88

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

There are a significant number of international commercial partnerships across technology and application development areas. Ballard is most prominent of these with partnerships with DaimlerChrysler and other motor manufacturers as well as some power utilities. How these relationships affect a true assessment of industrial activity across the EU is difficult to determine and should be examined in more detail. Although these partnerships provide the opportunity to make commercial progress, they do have the potential to restrict the development of made in EU technologies. There are short term benefits that these partnerships offer, but in the long term there is a risk that the EU could provide low value expertise that could easily be transferred to third countries such as China and South Korea. Also, as was highlighted earlier for publicly funded H2/FC RTD&D, there is a need to assess H2/FC RTD support in terms of a companys overall RTD support. This is straightforward for small companies, whose sole activity is the development of H2/FC technologies. However, for larger companies the significance of this activity may be much smaller in respect to its other activities. An understanding of this would support a more transparent assessment of the priority that H2/FC RTD&D is taking. Nevertheless, the information gathered does highlight where and what specific activities are being undertaken in a qualitative sense. The assessment and cross comparison of this information provides the basis of a deeper understanding of the global RTD&D landscape and forms the basis on which more in-depth evaluations can be established. A recent review of commercial fuel cell activity by Core Technology Ventures does take this analysis further. It highlights the following: Europe leads in commercial component manufacturing (mainly UK and Germany) US leads in the number of independent fuel cell system developers US companies have better access to private finance.

This last point is emphasised by the fact that the first European independent fuel cell developer, ITM Power is publicly quoted on the London Aim market on June 11th 2004, whereas around 12 companies in North America have a market capitalisation in excess of US$3bn (2.5bn)26. The mobilisation of this level of support provides strong backing to future R&D plans. Patent searching provides a useful measure of competitive positioning. Financial institutions investing in technology developers see patents as an important indicator of progress. However, some limitations can be identified when applying a patent analysis. Among others, not all inventions which are patent-relevant ultimately result in a patent registration. This may be due to a limited budget (patent preparation and registration can be expensive), danger of imitations, secrecy of research work, market power and/or speed of technological progress. But it should be stressed that the majority of inventions (around 80 %) result in patents. Another limitation of the patent analysis is the time lag between the invention, patent registration and availability of patent data in the various databases so that very recent, up-to-date information is not available. The patents and the technologies they describe do need to go through a due diligence process to assess their true commercial value.

26

Core Technology Ventures

89

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

The quantitative patent analysis carried out as part of this study examined technology and geographic trends in world (World Intellectual Property Organisation) and European patents (European Patent Office) covering a period from 1990-2002 (See Annex IV for full details). The geographic distribution of the total number of hydrogen patents in the world (including hydrogen production, distribution, storage and fuel cells) can be seen in Figure 23. Since 1996, a dramatic increase in worldwide patent activities is identifiable. The USA, Japan and EU lead and produce similar numbers of patents per annum. Germany accounts for the major share of the EUs patents (approx. 90 %), although patent activity has decreased recently, followed by the UK (4 %) and Canada (4 %). Denmark, France and the Netherlands as well as Australia and South Korea also have relevant patent activity. All other countries analysed have not made more than 10 patent applications in the last 12 years.
Figure 23 Geographic distribution of hydrogen patents worldwide

180 160
EU15 Japan Australia China USA Canada India Korea (Republic)

Number of patents

140 120 100 80 60 40 20 0

Most hydrogen production patents are for steam reforming (the majority and the most significant ones in the EU and Japan) and partial oxidation (USA lead), electrolysis and gasification play a minor role (see Figure 24). German companies have the largest number of patent applications for steam reforming (36 % of all patents in the last 12 years), followed by Japan (26 %), and the USA (14 %). However, the leading role of the EU-15 in the field of steam reforming is not only based on patent activities in Germany, but also on patent activities in the UK and Denmark. Germany and the USA focus more on the gasification of coal and biomass than Japan. The USA is the leading country for partial oxidation patents, but the Netherlands also show remarkable patent activities in this field.

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02

Year

90

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 24

Technology trends in hydrogen patents for H2 production development over time

60,00 50,00 40,00 30,00 20,00 10,00 0,00 Steam reforming Partial oxidation Gasification Electrolysis

Number of patents

91

94

97

90

93

96

92

95

98

99

00

01 20

19

19

19

19

19

19

19

19

Year
The PEMFC is the most important technology worldwide; the share of patents for PEMFC has increased significantly especially in recent years (see Figure 25). Whereas at the beginning of the 1990s the SOFC was the leading technology, this now takes second place. Japan plays a leading role in patents for fuel cells (33 %), closely followed by the USA (30 %) and the EU-15 (30 %), but Germany alone has 18 %. Japan focuses more on one technology (PEMFC), whereas the USA and the EU-15 have a broader research approach. In the USA, there are the same numbers of patents for PEMFC and SOFC, whereas Japan and the EU-15, including Germany, focus more on PEMFC. The USA followed by the EU-15 (Germany) has a dominant role in patents for DMFC. Patents for ICE (internal combustion engine) are insignificant compared to fuel cell patents. The EU-15 and Germany are the leading regions for ICE research.

19

19

20

20

02

91

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Figure 25

Technology trends in hydrogen patents for fuel cells and ICE development over time

140 120 PEMFC SOFC DMFC ICE AFC + PAFC MCFC

Number of patents

100 80 60 40 20 0

The number of identified patents in other hydrogen subsystems (distribution and storage) is limited. No conclusions can be drawn on the basis of this database. The only insight obtained is that Canada seems to dominate patent applications in the field of hydrogen storage in metal hydrides. The average number of patents per company does not vary significantly between the leading countries (USA, Japan, Germany and Canada). However, clearly leading companies can be identified in some technology fields: Steam reforming (Ballard Power Systems AG, Canada/Germany, with 36 patents of total 263 patents, average number of patents per company: 2.858) Partial oxidation (Shell, Netherlands, with 18 patents of a total 88 patents, average number of patents per company: 2.838) PEMFC (Matsushita Systems, Japan, with 62 patents of total 593 patents, average number of patents per company: 2.837).

In the other technology fields the situation is more balanced. Looking at the overall number of patents, the following companies are in a prime position: Matsushita Industrial Co. (Japan, 117), Ballard Power Systems AG (Canada/Germany, 89), Toyota (Japan, 52), Nissan (Japan, 52) and Siemens AG (Germany, 43). The patent search reinforces the view that EU hydrogen and fuel cells RTD&D is dominated by German activity and is competitive with the USA and Japan. However, patent activities in Germany have recently been declining. In Japan, the research activities are more focused on the PEM fuel cell, which seems to be the most promising one from a short-term perspective if patent 92

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

activity is chosen as the indicator for market relevance. For the PEM, Japan is or can become a global leader. In the USA and the EU broader patent activities can be identified, which may offer the possibility to develop different kinds of fuel cells in parallel and to identify the most appropriate type of fuel cell in a medium- or long-term view. The right time for the selection of a technology type is still an open question. Compared to R&D projects and budgets as well as publications, the electrolysis doesn't play such an important role as a technology for hydrogen production in the patent activities. Here, the viewpoint of industry with its focus on economic aspects and short-term market relevant registrations differs from the viewpoint of political and administration decision makers, who regard electrolysis as a very promising option. Steam reforming seems to be the most important option for hydrogen production and the EU is in a good position compared to its main competitors (USA and Japan). The result can be summarised as follows: Hydrogen patents (rising trend overall) - USA, Japan and EU lead and produce similar numbers of patents per annum - Germany accounts for the major part of the EUs patents (c. 90%), though recent activity has decreased - Most hydrogen production patents are for Steam reforming (main and most significant in EU and Japan) and partial oxidation (USA lead), minor contribution for electrolysis and gasification Fuel Cells - PEM patents most common; recently share of patents for PEMFC has increased significantly - Japan leading role in patents for fuel cells (33%), followed by the USA (30%) and EU (30% with Germany 18%) - Japan focuses more on one technology (PEMFC), whereas the USA and EU have a broader research approach - USA similar number of patents for PEMFC and SOFC, Japan and EU focus more on PEMFC - USA followed by the EU have a dominant role in patents for DMFC

The patent search reinforces the view that EU H2/FC RTD&D is dominated by German activity and is itself competitive with the US and Japanese activities. From the issues discussed in this section the following is concluded for the EU: Strengths Fuel cells: SOFC & PEM technology development (DMFC to a lesser extent) mainly component manufactures and a limited number of system developers H2 production: Steam reforming and electrolysis; H2 Distribution: all aspects; H2 storage: pressurised gas and liquid Demonstrators: all applications (portables to lesser extent) 93

Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Industry clustering mainly in Germany Industry/Government bodies International partnerships (creating commercial opportunities)

Weaknesses EU dependent on German performance for both hydrogen and fuel cells technology development. Low number of publicly quoted fuel cell companies International partnerships (development value not EU, and therefore in the long term weakening EU position) Opportunities Commercial partnerships (already exist, but potential to be enhanced to exploit intellectual property more widely) Threats Publicly quoted companies in North America possibility of mergers and acquisitions, etc. International partnerships (no creation of EU intellectual property) Experience from installed capacity Potential growth of expertise from minor countries. A summary comparison of technological strengths and weaknesses across all countries examined is shown in Table 44.

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Assessing the International Position of EUs RTD&D on Hydrogen and Fuel Cells

Table 44 Region Variable


Codes and Standards

Technological Strengths and Weaknesses.

EU
National level collaboration not all Member States Production General Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Developed Generally more fragmented at national level (except regionally in Germany) Large and accessible Advanced H2/FC Minor compared to other energy technologies

USA
Strong lead Production (Steam reforming) Storage - General Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Well developed blue sky through to demonstrators Large and accessible Advanced H2/FC Minor compared to other energy technologies

Canada
Strong lead

Japan
Strong lead Production (Steam reforming, Photocatalytic, Bio- and Thermochemical) Storage Limited to traditional Distribution (fuelling stations) MCFC, SOFC, AFC, PEM, PAFC, DMFC All Developed Well developed blue sky through to demonstrators Large and accessible Advanced H2/FC Minor compared to other energy technologies

Australia
No substantial activity

China
No strategy Production Limited Storage Metal hydrides, Nanomaterials Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC Transport and remote power None

India
No strategy

South Korea
No strategy

Hydrogen

Production (hydrolysis) Storage Limited to traditional Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Strongly Developed Developed Poor level of demonstrators Limited Advanced H2/FC Minor compared to other energy technologies

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Limited

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC Transport and remote power Limited

Production Limited Storage - Limited Distribution MCFC, SOFC, AFC, PEM, PAFC, DMFC All Limited

Fuel Cells Application areas of interest International Collaboration

RTD&D Structure

Uncoordinated

Uncoordinated

Uncoordinated

Uncoordinated

Research Base Public Private Collaboration General RTD&D Focus

Limited Limited H2/FC nascent

Large and accessible Limited H2/FC nascent Other R&D Priorities

Large and accessible Limited H2/FC nascent

Large and accessible Limited H2/FC nascent

95

Annexes

ANNEXES
ANNEX I. OVERVIEW OF PUBLICLY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ANNEX II. OVERVIEW OF PRIVATELY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ANNEX III. ANALYSIS OF H2/FC RTD&D PUBLISHING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ANNEX IV. ANALYSIS OF H2/FC PATENTING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA
Please note that the data in Annex I and Annex II, publicly and privately funded RTD&D is based on the particular organisations own announcements. These announcements can be forward-looking estimates, plans and intentions, which may or may not materialise.

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Annex I: Overview of publicly funded RTD&D

ANNEX I OVERVIEW OF PUBLICLY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN AND THE ASIA PACIFIC ECONOMIC CO-OPERATION
USA
Responsible organisation Argonne National laboratory Budget Time period Research topics Argonne National laboratory belongs to top 10 publishing institutions of transportation applications. Argonne is developing technologies to help make advanced vehicles a reality. The laboratory's Transportation Technology R&D Center brings together scientists and engineers from many disciplines to find cost-effective solutions to the problems of transporting people and goods from one place to another -- issues like vehicle emissions and energy supply. The laboratory's main sponsor for this research is the U.S. Department of Energy, but Argonne also works with U.S. manufacturers on a wide range of transportation technologies. Specific programs concentrate on alternative-fuel vehicles, advanced batteries and fuel cells, emissions control, engine research, intelligent transportation systems, manufacturing technologies, materials, rail technologies, student vehicle competitions, supercomputing applications, technology assessments, transportation of hazardous materials, and vehicle recycling. BNL is an U.S. Department of Energy laboratory which conducts research in the physical, biomedical, and environmental sciences, as well as in energy technologies. The Laboratory is managed by Brookhaven Science Associates, a corporation founded by Stony Brook University and Battelle. The laboratory is working on platinum and platinum/ruthenium catalysts, PEM fuel cells, storage solutions and hydrogen production techniques. The Chemical Engineering department, part of the Case School of Engineering at Case Western Reserve University has developed a prototype of a miniature fuel cell with a volume of only five cubic millimeters. The prototype device uses hydrogen, safely stored in a low-pressure hydride, as a fuel. An advanced version of the fuel cell, which would use methanol as a fuel to provide far greater energy storage capability, is under development. The research project is funded by $2.2 million in grants and contracts from the Defense Advance Research Projects Agency (DARPA), an arm of the U.S. Department of Defense. Validation projects that include the testing, demonstration, and validation of hydrogen fuel cell vehicles and infrastructure, and the required vehicle and infrastructure interfaces for complete system solutions. The Validation projects should also include a comprehensive safety plan, a program that enhances the development of codes and standards, and a comprehensive, integrated education and training campaign. Teams under this Solicitation must include an automobile manufacturer and an energy company. A Summary of US Federal Support for Fuel Cell and Hydrogen Technologies. Fuel Cells the USA Experience, DTI GLOBAL WATCH MISSION REPORT, JUNE 2003, Prepared by: Celia Greaves synnogy/Fuel Cells UK Name, reference

Brookhaven National Laboratory

Case Western Reserve University

Department of Energy (DOE)

150-240 Million US$

Start 2003, five-year project period

Controlled Hydrogen Fleet and Infrastructure Demonstration and Validation Project Solicitation, US Department of Energy (DOE), internet-

97

Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Research topics

Department of Energy (DOE)

1 billion US$

10 years

Goal: Build the world's first integrated sequestration and hydrogen production research fossil power plant (first zero-emissions fossil fuel plant)

Department of Energy (DOE), industry, research institutes

A national vision of Americas transition to a hydrogen Economy To 2030 and beyond, February 2002, Based on the results of the National Hydrogen Vision Meeting Washington, DC, November 15-16, 2001, United States Department of Energy (DOE)

Department of Energy (DOE), industry, research institutes

High gap between present-day technology and commercial viability. The Secretary of Energy, Spencer Abraham, outlined the gap: Dramatically lower the cost of fuel cells for transportation (the cost of fuel cells must be lowered by a factor of 10 or more, the cost of producing hydrogen by a factor of 4); Develop a diversity of sources for hydrogen production at energy costs comparable to gasoline; Find viable methods of onboard storage of hydrogen for transportation uses; Develop a safe and effective infrastructure for seamless delivery of hydrogen from production to storage to use. Need for co-ordinated basic research efforts an the intersection of various disciplines. High-priority research directions are broadly: Materials and nanoscale architectures (key); Catalysis; Membranes; Bio-inspiration (and separation technologies); Modelling and simulation; Advanced measurement techniques.

Full House and Full Senate of the US

2 billion US$ (House) to 3 billion US$ (Senate)

Eduction Programs; Up to 2.5 US cent/kWh generation subsidy (House Bill); Demonstration Programs (Vehicles, power generation, national parks, Indian tribes, international, renewable hydrogen); Fed fleet purchase requirements (up to 20% in 2012); Power purchase requirements; Tay subsidies (vehicles, distributed generation installations

Name, reference download: http://www.eere.energ y.gov/hydrogenandfuel cells/2003_solicitation _notice.html. Pending proposal FutureGen Tomorrow's PollutionFree Power Plant, US Department of Energy (DOE), internetdownload http://www.fe.doe.gov/ programs/powersyste ms/futuregen/ internet-download: http://www.eere.energ y.gov/hydrogenandfuel cells/pdfs/vision_doc.p df Basic research needs for the hydrogen economy, report of the basic energy sciences workshop on hydrogen production, storage, and use, My 13-15, 2003, Rockvilee 8Maryland), Argonne National Laboratory (ed.), internetdownload: http://www.science.do e.gov/bes/hydrogen.p df. Fuel Cells and Hydrogen: The Path Forward Update on U.S. Policy, presentation at f-cell 2003, 29.-30. September 2003, Stuttgart, Robert Rose, US Fuel Cell Council, Washington DC. Energy Bill Programes (revived in the Senate, in discussion)

98

Annex I: Overview of publicly funded RTD&D

Responsible organisation Georgia Institute of Technology

Budget

Time period

Government

1.7 billion US$ over 5 years

Research topics Georgia Institute of Technology belongs to top 10 publishing institutions of SOFC. The Materials Science and Engineering department of the Georgia Institute of Technology is focusing its research on materials, including metals, ceramics, polymers, composites, biomaterials, electronic, superconducting, and photonic and magnetic materials. One focal point is also SOFC research, where the department is developing new electrolyte and electrode materials to lower the operating temperature of SOFC to 450-600C. Additionally, the Institute of Technology also hosts the Center for Fuel Cell and Battery Technology which takes a multidisciplinary approach to fuel cell and battery-related research. The institute is working closely with the DOE's SECA initiative. 1.7 billion US$ over 5 years: 1.2 billion US$ for hydrogen and fuel cells (720 million US$ new), 0.5 billion for hybrid and vehicle technologies RD&D. Accelerated, parallel track enables commercialisation decisions by 2015. Progression from natural gas to coal and nuclear generation. Coal research will focus increasingly on sequestration. Hydrogen will be an added feature of nuclear research. Investment but less enthusiasm for solar/wind/biomass. Fuel cell research funding will plateau. Hydrogen research will focus on storage. Liquid fuel-reformer strategies on-board vehicles are in disfavor.

Name, reference

Government

Government

1,3 billion US$

2004

FreedomCAR: Developing technologies that will free the Nation s personal transportation system from petroleum and from harmful emissions, with a particular emphasis on fuel cell vehicles powered by hydrogen. FreedomFuel: Developing the technologies for the hydrogen production and distribution infrastructure needed to power the FreedomCAR vehicles as well as stationary fuel cell power sources. These both initiatives aim to: dramatically reduce dependence on foreign oil, promote the use of diverse,domestic,and sustainable energy resources, reduce carbon and criteria emissions from energy production and consumption, increase the reliability and efficiency of electricity generation by utilizing distributed fuel. Facilitate a decision by industry to commercialize hydrogen-powered fuel cell vehicles in the year 2015, allowing rapid market penetration, significant oil displacement and environmental benefits for the year 2020 and beyond. For the program Hydrogen, Fuel Cell and technology 165 million US$ and for the program FreedomCar and Vehicle Technologies 157 million US$ are requested for the Fiscal Year (FY) 2004. The total requested FY 2004 budget for programs of the Office of Energy Efficiency and Renewable is 1,3 billion US$

Industry, government agencies

Four main goals: Demonstrate vehicle technology by operating and testing the vehicles under real-world conditions in California; Demonstrate the viability of alternative fuel infrastructure technology, including hydrogen and methanol stations; Explore the path to commercialization, from identifying potential problems to developing solutions; Increase public awareness and enhance opinion about fuel cell electric vehicles, preparing the market for commercialisation. In addition to testing fuel cell-powered cars, the CaFCP plans to incorporate fuel cell-powered buses into its demonstration efforts. One aim is, that till the end of 2003 a fleet of 60 cars and

Fuel Cells and Hydrogen: The Path Forward Update on U.S. Policy, presentation at f-cell 2003, 29.-30. September 2003, Stuttgart, Robert Rose, US Fuel Cell Council, Washington DC. Bush State-of-theUnion. FreedomCAR and FreedomFuel initiatives, announced 2002, Office of Energy Efficiency and Renewable Energy. Energy Supply, 2003, internet-download http://www.mbe.doe.g ov/budget/04budget/c ontent/es/solar.pdf Budget of the United States,Office of Energy Efficiency and Renewable Energy. Energy Supply DOE , 2003, internetdownload http://www.mbe.doe.g ov/budget/04budget/c ontent/es/solar.pdf Californian Fuel Cell Partnership (CaFCP), partnership between industry and government agencies, announced in April 1999a, internet

99

Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Research topics buses with fuel cells will exist

Industry, organisations

MIT

NASA National Renewable Energy Laboratory NREL

Penn State University

Penn State University

Princeton University

VISIONS: U.S. Drivers to Hydrogen: National Energy Security (Use of Domestic Resources / Distributed Energy Systems); Environmental Stewardship (Emission Free); Economic Prosperity (Worldwide Technology Leadership). Transition to a Hydrogen Future: Recognizes Near-term Role of Fossil Fuel; Resources; Supports R&D to Reduce Costs and Eliminate; Environmental Impact; Supports Technological and Economic; Development of Renewable Energy; Technologies; End Point (Diverse Portfolio of Hydrogen Generation); Technologies and Feedstocks; As Much from Renewable Energy as Practical (Long Term Use of Fossil and Nuclear if Environmental Damage & Security Issues are Eliminated; Society and Markets Will Determine Energy). Breakthroughs Are Needed: Renewable Energy Production, High Density Storage for Transportation, High Efficiency Electrolysis of Water, Reduction of Environmental Impact of Conventional Fuels. Not Limited to Fuel Cells: Includes ICEs, Turbines. Portable Power Provides Early Introductions to Smaller The Sloan Automotive Laboratory, part of the Laboratory for Energy and the Environment at the MIT conducts research on future transportation technology, especially engines and fuels, with the aim of realizing new opportunities and reducing constraints related to engine performance, efficiency, and emissions. Major theme areas are: engine combustion, emissions, and fuel requirements; engine lubrication, friction, and wear; engine diagnostics and use of diagnostic information; and new engine concepts and their practical realization. The laboratory has two industry-sponsored consortiums: the Engine and Fuels Research Consortium and the Engine Lubrication Consortium. Also, the laboratory works with the combustion faculty in the Department of Chemical Engineering, the Plasma Fusion Center (on their plasmatron fuel reformer), the fuels experts in LFEE, and the broader mobility community at MIT. It is actively involved in assessments of new automotive technology options such as hybrids and fuel cells. NASA belongs to top 10 publishing institutions of hydrogen storage in liquid form. National Renewable Energy Laboratory belongs to top 10 publishing institutions of hydrogen production by steam reformation, electrolysis and gasification. The NREL is the U.S. Department of Energy's premier laboratory for renewable energy research and development. The laboratory is working on hydrogen technology (Research includes systems integration; safety, codes & standards; partnerships; and production) and other renewable technologies. Penn State University belongs to top 10 publishing institutions of transportation applications. The Hydrogen Energy (H2E) Center at the Pennsylvania State University is developing new technologies related to hydrogen energy and fuel cells. Research includes work on hydrogen production (from renewables, coal, alcohol, via bioreactor, water splitting) and hydrogen storage (Carbon Nanotubes and Nano-Particulate Metals, Chemical hydrides, Metal hydride). The center is also working on fuel cells, pioneering new proton exchange membranes, creating microbial fuel cells and developing better catalysts. Penn State University is working on research to incorporate hydrogen into vehicles. Work includes the installation of a hydrogen refueling station sponsored by Air Products in autumn 2004, Long-term Hydrogen Vehicle Demonstration, Fuel Cell Systems for Undersea Propulsion and Hydrogen-assisted combustion. Princeton University is the most prolific publisher in transportation applications. It belongs to top 10 publishing institutions of PEM. The Department of Chemistry focuses on improving the water retention characteristics of perfluorinated membranes by the addition of inorganic materials into its nanoporous structure. A

Name, reference download: http://www.fuelcellpart nership.org/partners.ht ml On the Road to Hydrogen: Policy Priorities by the National Hydrogen Association, National Hydrogen Association (NHA), November 2003

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Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Robert Rose (Breakthrough Technologies Institute), contributions of individuals and companies

Research topics number of hydrophilic materials have been investigated based on properties such as hydrogen bonding, acidity, boiling point and proton conductivity. These materials include heteropoly acids, silicon oxide, proton conducting glasses, sulfated zirconia and zirconium phosphate. Superior performance has been shown compared to unmodified materials at temperatures up to and including 140C. Research at the School of Engineering and Applied Science (SEAS) is directed toward understanding chemical reactions that occur at solid surfaces, with an emphasis on developing novel catalysts for the oxidation of hydrocarbons; understanding structural transformations in solids 10-year, 5.5 billion US$ commercialisation strategy. All applications. Fuel cell and hydrogen production, distribution and storage. Public-private collaboration. Six areas: Research and Development. Federal investment is vital in pre-competitive research in materials, low-cost manufacturing processes, testing and evaluation (most relevant topic, 2.3 billion US$)

Name, reference

Robert Rose (Breakthrough Technologies Institute), contributions of individuals and companies

Demonstration and Pilot Fleets; Infrastructure investments and fuel cell fuel credit per gasoline equivalent; Purchases. The federal government should become an early adopter of fuel cells, choosing the technology to supply an increasing share of the enormous federal power requirements,and to make up an increasing share of its vehicle purchases.; Market Entry Support; Removing Barriers to Commercialization; Education and Outreach.

Fuel Cells and Hydrogen: The Path Forward - A Comprehensive Strategy For Federal Investment In Fuel Cell Technology And Fuel Infrastructure, February 2003, Robert Rose, US Fuel Cell Council, Washingotn DC, internetdownload: http://www.fuelcellpath .org/Feb%2003%20su m.pdf Fuel Cells and Hydrogen: The Path Forward - A Comprehensive Strategy For Federal Investment In Fuel Cell Technology And Fuel Infrastructure, February 2003, Robert Rose, US Fuel Cell Council, Washingotn DC, internetdownload: http://www.fuelcellpath .org/Feb%2003%20su m.pdf

Sandia National Laboratory

Sandia National Laboratory is the most prolific publisher in storage of hydrogen in alanates. It belongs to top 10 publishing institutions of hydrogen storage in liquid form and PEM. Sandia is a multiprogramme US Department of Energy laboratory, operated by a subsidiary of Lockheed Martin Corp. It has major research and development responsibilities in national security, energy, and environmental technologies. Sandia has managed hydrogen utilisation technical research for the US Department of Energy's national hydrogen program, which helps remove technical barriers to the use of hydrogen energy. In conjunction with the Fuel Cell Propulsion Institute (FCPI), in 1999 its Intelligent

101

Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Texas A&M University University Hawaii

University Miami University Michigan

University of California Berkeley University of South Carolina

Research topics Systems and Robotics Center developed a robotic lunar vehicle (known as a RATLER) powered by an H Power PEM fuel cell. The hydride bed hydrogen storage unit used in the prototype was developed at Sandia. More recently it has been involved with FCPI in the development of a fuel cell mining vehicle. Texas A&M University belongs to top 10 publishing institutions of hydrogen production by steam reformation. Research at the Hawaii Natural Energy Institute (HNEI), part of the University of Hawaii at Manoa, focuses on solid state ionics and solid state electrochemistry. The group's strength lies on the study of thermodynamic and kinetic properties of the electrochemical power systems, include advanced batteries, ultracapacitors and fuel cells. Under the Hawaii Energy and Environmental Technology Initiative (HEET), HNEI has partnered with the Hawaiian Electric Company, the state's largest electric utility, and UTC Fuel Cells, one of the world's leading manufacturers of fuel cells, to develop the Hawaii Fuel Cell Test Facility (HFCTF). The test facility currently houses three test stands designed to characterize full-size, single-cell proton exchange membrane (PEM) fuel cells, and a host of supporting equipment including on-site hydrogen generation and storage. University Miami belongs to top 10 publishing institutions of hydrogen production by thermochemical means and PEM. University Michigan belongs to top 10 publishing institutions of carbon nanostructures. Current Projects: 1. Multivariable Control of Fuel Cell Breathing in Ground Vehicle Propulsion 2. Modeling, System Identificaton, and Control Design for Fuel Cell Power Systems 3. Coordination of hydrogen and air flow for transient Fuel Cell loading. In August 2003, Motorola, Engelhard and the University of Michigan have been granted a research award by the US National Institute of Standards and Technology (NIST). The three year project supports the development of miniature catalytic fuel processors for small portable fuel cells. University of California Berkeley belongs to top 10 publishing institutions of hydrogen production by photocatalytic, biochemical and thermochemical means and PEM. University of South Carolina belongs to top 10 publishing institutions of portable applications. The Department of Chemical Engineering at the University of South Carolina runs a center for fuel cell research, focusing on the topics of Catalysts for Impurity-Free Hydrogen, Hydrogen Storage, Materials and System Design, Procedures for Evaluation of Durability of Oxygen Electrocatalysts, Techniques for Understanding Adsorption and Oxidation of Anode Impurities in a PEMFC, Standardised and Accelerated Tests for Assessing Durability of Cathodes Exposed to Air Impurities and the Effectiveness of Filters, The Effect of Impurities from Sealants and Bipolar Plates on PEMFC Performance: Standardised and Accelerated Tests, Using CFD Models for Optimum Design, Reducing the Variability and Improving the Conductivity of Molded Bipolar Plates, Modern + Cost Effective Motor Design, High Level Analysis Techniques for Balance of Plant, Characterisation of Gas Diffusion Layers and Their Effects on PEMFC Performance, Accelerate

Name, reference

102

Annex I: Overview of publicly funded RTD&D

CANADA
Responsible organisation Federal government, industry, universities and provincial governments Budget Fiscal years 2000/01 and 2001/02: $84 million US$ Time period 2003-2006 Research topics Enhancing and supporting the development of cost competitive hydrogen production, utilization, storage and safety technologies for transportation and stationary applications Name, reference Hydrogen Initiative (HI), Interim Evaluation March 2003, internet download: http://www2.nrcan.gc.c a/dmo/aeb/English/Re portDetail.asp?x=233& type=rpt Canadian Transportation Fuel Cell Alliance, government, internet download: http://www.nrcan.gc.ca /es/etb/ctfca/index_e.h tml 215 Million C$ Investment to Extend Canadian Leadership in the Emerging Hydrogen Economy, Minister of Industry, Minister of Natural Resources, October 2003, internetdownload: http://tpcptc.ic.gc.ca/h2/en/new s.html h2 Early Adopters Program, Technology Partnerships Canada (Agency of Industry), internet-download: http://tpcptc.ic.gc.ca/h2/en/inde x.html Canadian Fuel Cell Commercialisation Roadmap, Government of Canada, Fuel Cells Canada, PricewaterhouseCoop

Government

18 million US$

2000-2005

Initiative that will demonstrate and evaluate fuelling options for fuel cell vehicles in Canada. Different combinations of fuels and fuelling systems will demonstrated by 2005 - for light, medium and heavy duty vehicles. The initiative will also develop standards and training and testing procedures as related to fuel cell and hydrogen technologies Funding for the initiative comes from Action Plan 2000, a package of activities to reduce greenhouse gas (GHG) emissions in Canada - it is a $500 million commitment on the part of the federal government This hydrogen economy initiative, by demonstrating the practical applications of this clean energy technology, is a key part of Canada's climate change strategy. The investment is directed by three strategic priorities: early adoption of hydrogen technologies through integrated demonstration projects undertaken by partnerships that will showcase a working model of the hydrogen economy in real-world settings; improved performance and reduced costs of hydrogen technologies, and extension of Canadian leadership through research and development of innovative new applications in strategic areas of the hydrogen value chain; initiatives to establish a hydrogen infrastructure through Sustainable Development Technology Canada, building on the foundation's success in establishing successful, partnership projects.

Government, Minister of Industry, Minister of Natural Resources

165 million US$

Launched October 2003

Industry and commitment of Government

Industry, Government, Academia

Canadas long-term objective to maintain its position as a world-leader in the Evolution of a hydrogen economy is in its very early stage of being realised. The h2EA program will lead efforts to demonstrate new concepts, such as hydrogen highways and hydrogen villages. More specifically, the strategic objectives of the h2EA program will be the: ; Increased public, consumer and investor awareness and acceptance of the hydrogen capability; Integration of hydrogen and hydrogen-compatible technologies; Development of hydrogen infrastructures; Development of skills and supply chain in the Hydrogen Industry; Development of codes and standards for the Hydrogen Industry; Increased performance, reliability, durability and economical viability of hydrogen and hydrogen-compatible technologies. General objective: Keep the position as a world leader in the research and development of fuel cell and hydrogen technology. More specifically: Stimulating Early Market Demand: Production costs, and hence prices, will come down as demand stimulates increased production volumes. Actions: demonstration projects, public information programs, early purchase programs. Improving Product Quality While Reducing Cost: Product quality includes performance, reliability and durability. Reducing costs will require a combination of materials, product and process development, and design engineering. To stimulate development of an effective supply chain,

103

Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Research topics fuel cell developers and systems integrators need to standardise their component specifications. Suppliers must be encouraged to service early markets with the produce and process development, design engineering and an integrated supply chain. Financing (Gaining Access to Capital): Innovative approaches to securing capital are needed to meet the significant capital resource

Name, reference ers, March 2003, internet download: http://strategis.ic.gc.ca /epic/internet/inmseepe.nsf/vwapj/FuelCell sTRM_e.pdf/$FILE/Fu elCellsTRM_e.pdf

Institute of Research Hydro Quebec Natural Resources Canada (NRCan), Climate Change Action Fund, Government of British Columbia, National Research Council (NRC), Ford Motor Company, Fuel Cells Canada (FCC) and other contributors. Royal Military Collage

Institute of Research Hydro Quebec belongs to top 10 publishing institutions of metal hydrids. 4.5 million US$ 2003-2006 Test of five fuel-cell vehicles (Ford) in the Vancouver area to determine how they operate in real-world conditions; Demonstrating the third generation Ford fuel-cell vehicle will provide valuable information on performance, durability and reliability that can be applied toward the evolution of fuel cell vehicles to the commercial marketplace. The Vancouver Fuel Cell Vehicle Project (VFCVP), government and industry, internet download: http://www.nrcan.gc.ca /es/etb/ctfca/index_e.h tml

Ryerson Polytech UNAM, CIE, Solar Hydrogen Fuel Cell Group University Alberta University Quebec University Toronto University Victoria

Royal Military Collage belongs to top 10 publishing institutions of hydrogen production by steam reformation, PEM and transportation applications. The Energy and Nuclear Science group as part of the Chemistry and Chemical Engineering department at the Royal Military College of Canada (Collge Militaire Royal du Canada) is focusing in its research on kinetic modeling of methanol steam reforming for the production of hydrogen for PEM fuel cell power systems and mathematical modelling of PEM fuel cell power systems. The department has also a fuel cell test station. Ryerson Polytech belongs to top 10 publishing institutions of hydrogen production by electrolysis. UNAM belongs to top 10 publishing institutions of hydrogen production by photocatalytic and biochemical means. University Alberta belongs to top 10 publishing institutions of SOFC and direct methanol fuel cells. University Toronto belongs to top 10 publishing institutions of hydrogen storage in liquid form and alkaline fuel cells. University Victoria belongs to top 10 publishing institutions of PEM.

JAPAN
Responsible organisation AIST Budget Time period Research topics AIST belongs to top 10 publishing institutions of hydrogen production by steam reformation, gasification, and photocatalytic and biochemical means. In March 2003, the institute announced the joint development of a 1kW SOFC with Mitsubishi Materials, Kansai Electric Power Co., Oita University and the Japan Fine Ceramics Center. Self humidifying membrane - Dispersion of a metal catalyst (platinum) in polymer electrolyte to convert cross-over hydrogen and oxygen to water Ceramic based composite membrane - Preparation of a inorganic-organic composite electrolyte using the sol-gel method for operation under high temperature and low humidification Name, reference

AIST, Fukui University, Gifu University, Gunma University, Hokkaido University, Kyoto Institute of Technology, Kyoto

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Annex I: Overview of publicly funded RTD&D

Responsible organisation University, Nagaoka University of Technology, Nagoya Institute of Technology, Osaka Prefecture University, Tokyo Institute of Technology, Tokyo University, Yamanashi University, Yokohama National University

Budget

Time period

AIST, Fukui University, Gifu University, Gunma University, Hokkaido University, Kyoto Institute of Technology, Kyoto University, Nagaoka University of Technology, Nagoya Institute of Technology, Osaka Prefecture University, Tokyo Institute of Technology, Tokyo University, Yamanashi University, Yokohama National University

AIST, Fukui University, Gifu University, Gunma University, Hokkaido University, Kyoto Institute of Technology, Kyoto University, Nagaoka University of Technology, Nagoya Institute of Technology, Osaka Prefecture University, Tokyo Institute of Technology, Tokyo University, Yamanashi University, Yokohama National University

AISTs Photoreaction Research Center

Government

-2020

Research topics conditions Hybrid polymer-molten salt membrane - Creation of a hybrid membrane composed of molten salts in a polymer matrix that exhibits both high tolerance to oxidation and temperature degradation Inorganic acid salt membrane I - Development of an electrolyte using acid-salts encapsulated in an inorganic matrix (solid oxide ceramic) to yield high proton conductivity at high temperatures Inorganic acid salt membrane II - Encapsulating proton conducting acid salts in a nanostructured silica membrane for high temperature and low humidification operation Glass membrane electrolyte - Development of a proton conducting porous glass membrane with excellent chemical and temperature stability characte Fundamentals of Electrocatalytic Reaction Process - Study on fundamental electrocatalytic reaction processes using advanced IR spectroscopy with a resolution window of around 30nm for applications in catalyst design High performance alloyed cathode electrocatalyst - Development of an alloy catalyst for the cathode that reduces the amount of platinum loading required Hydrogen production from dimethyl ether (DME) - Development of high performance catalysts for steam reforming of DME, a proposed alternative fuel to diesel and LNG Carbon supports for electrocatalysts - Study on interaction between the platinum catalyst and carbon support to reduce platinum loading levels Nanostructutred carbon electrocatalyst - Development of carbon based nanoparticles that can reduce oxygen at the cathode thereby reducing required platinum loading Low cost Membrane Electrode Assembly (MEA) - Development of a process to coat electrocatalyst selectively on a low cost polymer electrolyte reducing platinum loading and MEA cost Novel structured electrocatalyst and MEA design method - Two projects with 1) development of a process to bond electrolyte polymer to carbon black particles increasing effective catalyst area and 2) modelling of micro-structure for design of MEA Novel electrode formation by electrodeposition - Formation of electrodes by electrodeposition of a textured thin metallic film Measurement of water distribution in polymer electrolyte - Use of MRI (Magnetic Resonance Imaging) to determine water distribution in polymer electrolytes to reduce activation overpotential and increase overall efficiency Hydrogen separation membrane - Use of electrodeposition in a supercritical fluid media to create a thin film (several microns) hydrogen separation membrane Reversible fuel cell and CNT support for cathode - Two projects with 1) Development of reversible fuel cell comprised of an anode electrode structure comprised of catalyst, support and nanoparticles of a hydrogen storage alloy 2) Use of CNTs (Carbon Nanotubes) as an electr Researchers under Dr. Arakawa developed two new photocatalytic systems for hydrogen production from visible light. The first new system developed used a nickel doped indiumtantalate catalyst supported on a nickel oxide substrate for direct conversion. The second system, similar to the photosynthesis mechanism used by plants, was comprised of two photocatalysts (Cr-Pt/SrTiO3 and Pt-WO3) connected in a redox (reduction-oxidation) reaction loop by an iodine electrode. Exposure to sunlight of an aqueous mixture of these catalysts resulted in spontaneous evolution of hydrogen and oxygen, although the conversion efficiency of this system was only 0.1%. Japans hydrogen effort is focussed on R&D for commercialising and popularising fuel cells, fuel cell vehicles and hydrogen infrastructure. Japans hydrogen R&D focus is primarily aimed at achieving the technological advances to enable high performance and cost effective fuel cells to penetrate the market.

Name, reference

December 2001

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Budget

Time period

Hiroshima University

Hokkaido University Japan Atomic Energy Research Institute JAERI Japan Hydrogen & Fuel Cell Demonstration Project JHFC 3.87 billion yen (30 million euro) will be invested in FY2003, an increase of around 50% above last financial year

Japan Science and Technology Corporation JST

Japans Railway Technical Research Institute

Kyushu National Industrial Research Institute Materials and Energy Research Institute Tokyo

Ministry of Economy, Trade and Industry METI

Nagoya University

Research topics By 2010 there should be 50,000 fuel cell vehicles and by 2020 about 5 million. In stationary energy applications, the capacity should reach 2,100 MW by 2010 and 10,000 MW by 2020. Hiroshima University belongs to top 10 publishing institutions of hydrogen storage in carbon nanostructures and phosphoric acid fuel cells. In September 2001, Hiroshima University in collaboration with Mazda announced 4.5wt% storage of hydrogen in a magnesium-palladium metal system under ambient conditions. Hokkaido University belongs to top 10 publishing institutions of hydrogen production by photocatalytic and biochemical means. JAERI completed a series of trials in May 2001 yielding a production rate of 50l/hr of pure hydrogen using an iodine and sulfur dioxide system. JAERI is the most prolific publisher in production of hydrogen by thermochemical means. The JHFC project is a government initiative to demonstrate fuel cells to the general public by creating a pilot scale hydrogen supply infrastructure for use by FCVs in the Tokyo and Yokohama area. The project is administered by three organisations with responsibilities for different aspects: JEVA (Japan Electric Vehicle Association) - FCV on-road trials, ENAA (Engineering Advancement Association of Japan) - hydrogen fuelling infrastructure, NEF (New Energy Foundation) - stationary systems. The research task was expanded in September 2001 to include supply of hydrogen from an offsite source. The coupling of hydrogen generation with renewable sources does not feature in the program. This reflects current views that in the short to mid term surplus by-product hydrogen from steelmaking, chlor-alkali and petroleum industries could be effectively utilised. Under this new system, hydrogen will be supplied as a cryogenic liquid (boiling point: -253oC) following purification and liquefaction at the site of produc JST is funding a project to develop materials for direct (one-stage) photocatalytic cleavage of water to generate hydrogen and oxygen as part of their CREST research scheme basic research on strategic technologies. Research is being focused on oxynitride type photocatalysts including Ta3N5, BaTaO2N and SrTaO2N, allowing use of the visible spectrum of sunlight. A couple of very small-scale fuel cell locomotive prototypes have been built in a Japanese government funded project to develop alternatives to on-board railway diesel engines. In 2002 this project was supplied four H Power 7kW PEM fuel cell systems, for integration into prototype railway power applications. Other participants include the Japan Railways Group, and Suzuki Shokan Co, a leading supplier of industrial machinery and gases. Kyushu National Industrial Research Institute belongs to top 10 publishing institutions of hydrogen production by photocatalytic and biochemical means. Plan to commercialise with Kogakuin University a 100W fuel cell for use in vehicles for the mobility-impaired. Operating at room temperature, the fuel cell uses a liquid fuel based on hydrogen-boron compounds dissolved in an alkaline solution, which can be stored in a compact light container. In August 2002 announced that from 2003 it would subsidise the development of small fuel cells for use in cell phones and notebook computers. DMFC systems are selected as the likeliest way of supplying hydrogen for small fuel cells, although issues such as methanol crossover, water management and poor catalyst performance are hindering commercialisation. Methanol is seen the cheapest and simplest way of supplying fuel to portable fuel cells, particularly in comparison with the current alternatives. These include metal hydride canisters or compressed hydrogen cylinders (which are used with PEMFC systems), and chemical hydrides such as sodium borohydride. Furthermore, methanol has a much higher energy density, which is a critical consideration where size is important. Nagoya University is the most prolific publisher in production of hydrogen by electrolysis. It

Name, reference

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Responsible organisation National Hydrogen Program WENET

Budget The requested budget in FY 2003 for the project is 30.7 billion yen (236 million euro) to be spent over FY 2003-FY 2007. The amount to be spent in FY 2003 alone is 34.6 million euro.

Time period 2003-2007

Research topics belongs to top 10 publishing institutions of SOFC. Objectives To support market introduction of hydrogen fuelled fuel cell vehicles from 2005 To establish hydrogen infrastructure for vehicles To contribute to the global environment and to secure energy sources Study of System Evaluation The aim of surveys and studies is to study an optimal scenario for introduction of hydrogen energy and formulate a strategy for its introduction. Also a research coordination council will be organized and held to coordinate research activities under the WENET Project. Study of Safety Measures Will conduct experiments on discharge, diffusion, ignition and explosion phenomena of hydrogen. The experiment results will be used to analyze the safety preliminarily on the latent accidents in hydrogen usage. Will establish the procedure of safety assessment and will research on safety design standards. Review and Investigation for International Cooperation Will carry out activities to develop international understanding of the WE-NET and promote exchange of technical information in order to develop the WE-NET project. Development of Power Generation Technology Will develop of a single-cylinder hydrogen combustion diesel engine rated 100kW for cogeneration system. This engine having about 40% efficiency at terminal and more than 85% total efficiency(higher heating value basis) shall be free of any emission of environmental pollution. Implementation of the performance evaluation testing of this diesel engine to identify R & D themes for the practical application of such a diesel engine. Development of Hydrogen Fuel Tank System Will develop an elementary technology for fuel system of hydrogen fuel cell vehicle by taking account of hydrogen supply from hydrogen refueling station, and further, carry out the plan ahead of schedule in order to conduct technical verification of the hydrogen vehicle driving system combined with the hydrogen refueling station. Development of rapid filling method Rapid filling tests will be conducted under various different supply conditions of hydrogen and coolant, in the hydrogen refueling station. In the rapid filling tests conducted in this fiscal year, we filled an MH tank from empty to 80% of the effective storage capacity. As there remains some hydrogen in MH tanks when actual filling, it is necessary to investigate the influence of residual quantity on filling time. New means of hydrogen storage The current storage capacity of MH systems are very limited (2-3wt%), and at this level are not practical for transport applications. In light of this, the scope of WE-NET research task was expanded to identify new materials capable of reversibly storing hydrogen at around 5-7wt% - the minimum level for use in FCVs. As part of this, carbon nanotubes (CNTs), graphene sheets and chemical systems for hydrogen storage are being investigated. Safety evaluation of hydrogen absorption alloy tank The following evaluations will be made: (1) Fire resistance test for hydrogen absorbing alloy tank Verification of sealing property of spring type relief valve to hydrogen and investigation of the location of safety valve for tank unit of practical scale for real vehicle. (2) Evaluation of deformation in tank by hydrogen absorption/desorption The estimation technology for stress occurred by alloy expansion will be required for the design of strength of tank. Development of PEFC Utilizing Pure Hydrogen Will develop of element technology for the fuel cell power generation system which meets the utilization of pure hydrogen and achieves about 45% electrical efficiency at the AC sending terminal (higher heating value basis), shall be established and a stationary type 30kW class generation system shall be demonstrated.

Name, reference

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Budget

Time period

New Energy and Industrial Technology Development Organisation NEDO

144 million euro

Japans SOFC budget for 2002 was 14 million euro.

Japans budget was 16 million euro on MCFC R&D in

Research topics Development of Hydrogen Refueling Station Will develop and demonstrate a small scale of test system with hydrogen supply capacity of 30Nm3/h, equivalent to about one tenth of actual scale, in order to establish the element technology and system technology for stand alone type of hydrogen refueling station for the purpose of fuel supply to hydrogen vehicles. Development of Hydrogen Production Technology Will develop large-scale cell lamination (electrode area 2,500 cm2) by using two hydrogen production methods (electroless plating method and hot press method). The target of current density is over 1A/cm2 and the target of energy efficiency is over 90%. And will develop the cells (electrode area 1,000 cm2) for hydrogen stations. Moreover, will develop solid high polymer electrolytes resistant to high temperatures. Development of Hydrogen Transportation and Storage Technology Will conduct elemental tests of insulation structure and to establish the data base of thermal insulation performance. And will develop element technologies of liquid hydrogen pump. Moreover, will collect basic data of aerodynamic design and seal design for hydrogen compressor. Development of Cryogenic Materials Technology The goals are to test material properties under liquid hydrogen environments. Specialised welding materials and methods, in addition to selection of steel austenitic stainless - or aluminium alloys resistant to both hydrogen and low temperature embrittlement have also been covered. Moreover, the material characteristic database will be enhanced. Development of Hydrogen Storage Materials The target is to develop hydrogen absorbing alloys having the following performance. 1) Effective hydrogen storage capacity : more than 3mass% 2) Temperature for hydrogen desorption : less than 100c 3) Durability : hydrogen storage capacity more than 90% of the initial capacity after 5,000-cycle use Efforts to develop hydrogen storage technologies under the WE-NET project have been intensified. In 2002, Japan created a 10-year Polymer Electrolyte Fuel Cell Development program, which aims to develop PEMFCs for both stationary and transport applications. Projects are now focused on reducing the cost of manufacture of PEFC systems and ensuring the necessary data for establishing relevant engineering and safety standards are available. Japan will now equally focus on both stationary and transportation applications. In PEFC related technology development, materials are a major focus in this area and metallic glass is receiving considerable interest as a possible material for electrodes, separator plates and hydrogen purification membranes. Since 1989, Japan has been providing R&D funding to at least seven manufacturers (Fuji Electric, Toto, Mitsubishi Heavy Industries, Mitsui Engineering and Shipbuilding, Murata Manufacturing, Nippon Steel, and Sanyo Electric), two electric power companies, and three gas companies. Japan focused its densities than the tubular SOFC design (TSOFC), using the wet processing that reportedly has the potential for lowering production costs. Japans National Institute of Materials and Chemical Research (NIMC) developed the wet processing technology, according to METI officials. The early stage of Japans SOFC effort (1989-1991) included development of module with metal interconnects (Sanyo), oxide interconnects (Fuji), and interconnects made from magnesium spinel and lanthanum chromite (Mitsui Engineering and Shipbuilding). On MCFC related efforts, in the third and final phase NEDO has shifted the focus from largescale system development to developing compact sized modular systems that can be produced at low cost. The target markets are embedded power generation for factories, office buildings and major public facilities, as well as retrofitting of ageing thermal power stations. The ultimate goal is to develop a compact high performance 750kW system, which will be comprised of 2

Name, reference

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Responsible organisation

Budget 2002. Given the mature level of MCFC technology NEDO has no current plans to continue this R&D program beyond FY2004. 850 million yen (6.5 million euro) being distributed between 17 mainly university based projects

Time period

Research topics pressurised modules (1.2MPa) with an overall efficiency of 47%. The key players in this are system maker IHI whilst the operation and system evaluation is being undertaken by the MCFC Research Consortium. This consortium has representation from all of Japans electric utilities, as well as the Central Research Institute of Electric Power Industry (CRIEPI) and JFCC.

Name, reference

Started a new initiative on developing next generation fuel cells. The main thrust of the research is to develop novel solutions and materials that allow low temperature systems (PEFC) to operate well beyond their upper temperature limits of 80oC and MEA systems that can be operated at intermediate temperature ranges (150 300oC). In addition, reduction of platinum loading through use of novel support materials as well as alloy catalysts is also a key research component.

Osaka National Research Institute

Osaka Prefecture University Osaka University Research Institute of Innovative Technology for the Earth RITE

Tohoku University

Tokyo University University Tsukuba Yokohama National University YNU

Osaka National Research institute belongs to top 10 publishing institutions of hydrogen storage in metal hydrids. The Fuel Cell Section of the Osaka National Research Institute is conducting research in the field of molten carbonate fuel cells, which allows direct power generation from natural gas or coal gasified gas at high efficiency. Research activities include new material research, cell testing and evaluation and research for molten salt. University Osaka Prefecture belongs to top 10 publishing institutions of hydrogen storage in metal hydrids. Osaka University belongs to top 10 publishing institutions of hydrogen production by electrolysis, photocatalytic and biochemical means and hydrogen storage in liquid form. Researchers claim to have developed a thin film photocatalyst which can effectively use 3% of solar energy to split water. The catalyst is composed of a 2-micron silicon film impregnated with cobalt-molybdenum and iron-nickel oxides, with further details promised to be released following patent protection. Tohoku University is the most prolific publisher in production of hydrogen by electrolysis and photocatalytic and biochemical means. It belongs to top 10 publishing institutions of hydrogen production by gasification and thermochemical means, hydrogen storage in carbon nanostructures and SOFC. University Tokyo belongs to top 10 publishing institutions of hydrogen production by thermochemical means, hydrogen storage in liquid form and phosphoric acid fuel cells. University Tsukuba is the most prolific publisher in production of hydrogen by gasification. YNU has been active in investigating hydrogen production from kelp under anaerobic fermentation conditions.

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AUSTRALIA
Responsible organisation Commonwealth Scientific and Industrial Research Organisation CSIRO Budget Time period Research topics Hydrogen from Water/Renewable Energy To produce a compact and all-solid-state modular system for distributed hydrogen generation is well advanced. The aim is to achieve electrolysis efficiency in excess of 85% at current densities exceeding 10,000 amps/m, by optimising materials, cell and stack fabrication technology and designs, required to make this process commercially viable. The technology will be incorporated into a prototype 35 kW electrolyser in the immediate future, followed by demonstration of technology integration with a renewable energy source. Hydrogen from Natural Gas Solar Thermal Fossil Fuel Hybrid System The concept is based on reforming of natural gas using concentrated solar energy, converting the gas to H2 and CO2, followed by recovery of CO2, and use of H2 in emerging electricity generation technologies, such as polymer electrolyte membrane fuel cells (PEMFC). The process embeds 20% solar energy into the product fuel gas. The project involved a 108 m solar dish with a reformer (44 kW equivalent of natural gas feed rate) at its focal point, CO2 capture in concentrated form and gas cleaning to produce high purity hydrogen for use in PEMFCs to generate power. Has developed expertise and excellent facilities for the fabrication, testing and evaluation of PEMFCs up to several kilowatts in size. Achievements include: Fabrication of cells up to 400 cm active area (single cells); Stack construction/assembly capability to manufacture multi-kilowatt stacks; Construction and operation of stacks in the kWe range with stable output, and State-of-the-art fuel cell test facilities with multiple levels of safety redundancy to evaluate stacks to 3.0 kWe capacity. More recent efforts are focussing on micro fuel cells (hydrogen, methanol) for portable power. Australia recognises the potential of hydrogen to contribute to a more environmentally friendly and sustainable energy mix. Australia will play an active role in the national and international development of hydrogen technologies and related enabling technologies. In doing so, Australia will focus on areas where it has resource, scientific, technical or other advantages. Name, reference

Department of Industry, Tourism and Resources

Vision for Hydrogen National Hydrogen Study www.industry.gov.au/a ssets/documents/itrint ernet/Hydrogen_Study Oct200320031021120 716.pdf

It is assumed that the main potential end uses for hydrogen for Australia in the period to 2050 will be: Road transport; Portable electrical appliances (for example portable computers and mobile phones); and Distributed generation. In Australia, the two most common hydrogen production methods are steam reformation of methane and electrolysis of water. Australia is well endowed with the resources needed to continue to make hydrogen by these means. It is likely that production from coal gasification might join that portfolio of production methods. A key issue then is the potential for sequestration of the CO2 emissions that result from using fossil fuel sources. In the longer term, any transition to the greater use of hydrogen is likely to increasingly utilise Australias considerable renewable energy resources to produce hydrogen. These include hydropower, wind, tidal, biomass and solar energy. The competitiveness of the energy supplied in this way remains a fundamental issue. The role of Australias manufacturing industries in the design and operation of bulk liquefied natural gas (LNG) facilities could facilitate local development and export opportunities in the following areas: high pressure gaseous storage and supporting technologies;

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Budget

Time period

University of New South Wales

West Australian Government

8.16 million AUD

2004-2006

Research topics cryogenic liquid storage, insulation and supporting technologies; absorbent hydrogen storage media and supporting technologies; hydrogen bulk storage systems and bulk dispatch terminals; cryogenic tankers for bulk-transport of liquid hydrogen; hydrogen pipelines based on natural gas pipeline industry; hydrogen compressors; compressed gas tube trailers; and fuelling stations and supporting technologies. University of New South Wales belongs to top 10 publishing institutions of hydrogen production by steam reformation and transportation applications. The Centre for Materials Research in Energy Conversion within the school of Material Science and Engineering at the University of New South Wales focuses its research on solid oxide fuel cells, the use of hydrogen in fuel cells and electrode materials for solid oxide fuel cells. Three DaimlerChrysler hydrogen fuel cell buses will be trialed on normal Perth service routes for two years from late 2004 to 2006. The buses are part of a limited series of Mercedes-Benz Citaro fuel cell buses being manufactured in Mannheim, Germany by EvoBus, a subsidiary of DaimlerChrysler. Ballard Power Systems is supplying the fuel cell engines for the buses. BP is supplying the hydrogen fuel for the trial, produced from their oil refinery at Kwinana. The purpose of the trial is to determine the critical technical, environmental, economic, and social factors that need consideration in the introduction of hydrogen fuel cell buses. The project will be evaluated through seven projects which are being independently managed by Murdoch University.

Name, reference

CHINA
Responsible organisation Budget Time period Research topics China represents one of the largest potential market for fuel cells in the world. As pollution from a growing number of vehicles creates smog in many Chinese cities, the pressure to develop clean vehicle technologies is also mounting. The market for replacing batteries in electric bicycles is expected to be the earliest market by some, with buses and cars following on. If cost targets can be met, Chinese electric bicycle markets represent a huge opportunity for fuel cell developers. Sales of electric bicycles in China rose from 15,000 in 1997 to240,000 in 2000, and are now reported to be reaching 1,000,000 units per year. Looking forward, fuel cell vehicles are expected to play a prominent role in the 2008 Beijing Olympics. Beijing will also play host a number of fuel cell buses. China is one of five countries selected by the Global Environment Facility (GEF), a unit of the United Nations Development Programme (UNDP) for the demonstration of fuel cell buses. With US$11.5 million from the GEF and other funds Name, reference Fuel Cells in China: A Fuel Cell Today Market Survey, 21 Jun2 2002, Mark Cropper, Fuel Cell Today , internet download: http://www.fuelcelltoda y.com/FuelCellToday/I ndustryInformation/IndustryInf ormationExternal/Rep orts/DisplayReport/0,1742,481,00. html

Chinese Acadademy of Science

Government

Chinese Acadademy of Science is the most prolific publisher in storage of hydrogen in carbon nanostructures. It belongs to top 10 publishing institutions of hydrogen production by steam reformation, hydrogen storage in liquid form and in metal hydrids. In January 2002 it was reported that the Chinese government would invest around US$12 million in a three year proton exchange membrane fuel cell (PEMFC) development programme. Most of this money will go towards the development of 75kW and 150kW PEMFC systems.

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Research topics Visions for the period 2001-2005: 863 High technology projects with commercial potential. Key project: Fuel cell cars and buses (budget: 33 million Euro). Fuel cell key material project: Membrane, Bipolar plate. Future energy project: DMFC, MCFC, SOFC. 973 High technology fundamental research projects: NSCF: New materials, new concepts in fuel cells. Cas Key project: Fuel cell engine and hydrogen technology. Industry: Hydrogen production from natural gas, methanol and gasoline

Ministry of Science and Technology of the peoples Republic of China (Most)

Development of a fleet of fuel cell vehicles for 2008

Name, reference Fuel Cells Activities in China, presentation at f-cell 2003, 29.-30. September 2003, Stuttgart, Hongmei Yu, Dalian, Institute of Chemical Physics, Chines Academy of Sciences. 10th FiveYear plan (2001-2005) 2nd China-Italy Hydrogen Energy Conference, 26-28 February 2003, Sanya, Shi Dinghuan, Secretary, Ministry of Science and Technology of the peoples Republic of China

Nankai University Shandong University

Shanghai Jiao Tong University

Tsing Hua University

Zhejiang University

Nankai University belongs to top 10 publishing institutions of hydrogen storage in metal hydrids and in carbon nanostructures. Shandong University belongs to top 10 publishing institutions of hydrogen storage in liquid form. Shandong University is working on storing liquid hydrogen and bio-hydrogen. Furthermore, the university is researching ways of reforming and producing hydrogen from ethanol, organic solvents, fodder, methane or by using photosynthetic bacteria. Shanghai Jiao Tong University belongs to top 10 publishing institutions of hydrogen production by photocatalytic and biochemical means and PEM. The Institute of fuel cells at the Shanghai Jiao Tong University is working on small stationary (<10kW) PEM and MCFC and electrolysers. The university has received a US$1.8 million funding from the Chinese government to support these efforts. Future work will include the development of 3-5kW residential PEM units, 1kW SOFC units and 10-50kW molten carbonate fuel cells. Tsing Hua University belongs to top 10 publishing institutions of hydrogen storage in metal hydrids, in carbon nanostructures and PEM. Tsinghua University is in charge of the National Key Fundamental Projects: Fundamental Research for Hydrogen Production, Storage and Transportation in Large Scale and Relative Fuel Cells and Fuel Cell Engines Used for Buses. The university is working on developing PEM fuel cells, fuel cell engines and making hydrogen from ethanol. In 1999, Tsinghua demonstrated a 5kW PEM fuel cell powered golf car, the stack developed by Beijing Fuyuan Century Fuel Cell Power. Together with Beijing LN Power Sources, Tsinghua University has presented various vehicles in 2001, one of which was a small 12 seater bus (top speed 90km/h, range 160km). As part of the governments 863 programme, Tsinghua University is expected to use a 80kW engine to develop another prototype bus. Zhejiang University is the most prolific publisher in storage of hydrogen in metal hydrids. It belongs to top 10 publishing institutions of hydrogen storage in gaseous form.

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INDIA
Responsible organisation Banaras Hindu University Budget Time period Research topics Banaras Hindu University belongs to top 10 publishing institutions of hydrogen production by electrolysis, and photocatalytic and biochemical means. The Institute of Technology at the Banaras Hindu University is working on hydrogen storage (metal hydrides) and the use of hydrogen in internal combustion engines. In 2001, the institute started a field trial with 10 motorcycles and added a three-wheeler to the fleet in 2004. The demonstration programme is supported by India's Ministry of Non-Conventional Energy. Fuel cells, as alternative for hydrocarbon resources: diverse aspects of research relating to fuel cells for motor transport and stationary applications, polymer electrolyte membrane fuel cells, electrolyte, cathode and anode for solid oxide fuel cell, catalysts for reforming liquid feed stocks such as LPG and methanol. Indian Institute of Technology belongs to top 10 publishing institutions of hydrogen production by photocatalytic and biochemical means. Objectives: Present a hydrogen road map for India; Establish guidelines for demonstration projects. Furthermore; Establish an India Hydrogen Congress. Activities: Support the development of a hydrogen powered 3-wheeled rickshaw by 2005-6. Phosphoric Acid Fuel Cells. Polymer Electrolyte Membrane Fuel Cells: Stacks of various capacities have been built and demonstrated by the SPIC Science Foundation; Hybrid van using PEMFC has been in operation in Chennai; Design optimisation and cost reduction program; Development of reformers. Direct Methanol Fuel Cells (DMFC). Molten Carbonate Fuel Cells (MCFC). Solid Oxide Fuel Cells. Demonstrating Fuel Cell operated buses in New Delhi while initially some buses are totally imported, indigenously built buses are expected to be introduced subsequently. To further research in solar energy, wind turbines, and hydrogen fuel as alternatives to fossil fuels, it has allocated Rs.200 million to the Council for Scientific and Industrial Research, for launching incentive-driven research in these three fields. Name, reference

Council of Scientific and Industrial Research

30M rupees

Not available

Fuel Cells R&D

Indian Institute of Technology Indian Petroleum Ministry (Managed by Indian Oil Corporation) Ministry of Non-Conventional Energy Sources Not available (to be decided 2004) Not available (to be decided 2004)

India Hydrogen Corpus Fund

Ministry of Non-Conventional Energy Sources

Not available

Not available

Ministry of Non-Conventional Energy Sources

Not available

Not available

Tata Energy and Resources Institute (TERI)

Not available

Not available

Objectives: Study/establishment of feasibility of the production of hydrogen by various processes/technologies. Development of materials/processes for storage of hydrogen. Support projects on utilisation of hydrogen as a fuel for stationary as well as mobile applications. Activities: Research in materials/processes for production, storage and uses of hydrogen as a fuel. Development and applications of hydrogen for power generation and transport sector. Training/ manpower development. The Hydrogen Energy Development Board has been formed to co-ordinate and implement fuel cell development in India. Objectives: R&D on fuel cell technology including material/stack development, performance improvements etc., indigenous production and promotion of applications of fuel cell technology for power generation, transport and other sectors. Activities: Research in materials/processes/ fabrication techniques; Development of technology/ materials/infrastructure support; Demonstration of fuel cell technology for various uses; Performance evaluation of fuel cells; Training, awareness creation etc. Thrust Areas in Fuel cells: Research in materials, technology development and up-gradation in the area of fuel cells; Production of fuel cells at affordable prices; Applications of fuel cell technology; Creation/expansion of infrastructure to support production and applications of fuel cells. Objectives: Promoting fuel cells and membrane technology by disseminating information, development, and demonstration. Identifying and adapting appropriate technology for specific applications with an emphasis on integration to suit local requirements and training the local

India considers hydrogen as the green fuel in the near future and fuel cells as important new generation energy conversion devices for sustainable development. Indian R&D efforts in Fuel Cells began around 1981. Hydrogen Energy http://mnes.nic.in/fram e.htm?majorprog.htm

Chemical Sources of Energy http://mnes.nic.in/fram e.htm?majorprog.htm

Chemical and Hydrogen Energy www.teriin.org/division

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Budget

Time period

Research topics workforce about it. Facilitating manufacturing bases in the country by quantifying niche market opportunities for mass customisation. Initiating policy discussions that facilitate early commercialisation of such technologies. Activities: Molten carbonate fuel cell technology development programme. Market assessment for 200 kW fuel cell power plants. Assessment of hydrogen supply options for India.

Name, reference /eetdiv/che/che.htm

SOUTH KOREA
Responsible organisation Jeonbuk National University Korea Institute of Energy Research KIER Budget Time period Research topics Jeonbuk National University belongs to top 10 publishing institutions of hydrogen storage in carbon nanostructures. The Korea Institute of Energy Research (KIER) belongs to top 10 publishing institutions of hydrogen production by thermochemical means and phosphoric acid fuel cells. KIER is a Fuel Cell Research and Development institute in Korea. Its major achievements include: - Experimental study on phosphoric acid fuel cell generation (1985-1989) - Test and operation of 5.9kW Fuji's PAFC stack - Development of a PAFC generator(1987-1992) - 2kW power system ( stack, power conditioner, reformer) - Design and fabrication of reformer, automatic data acquisition and control and heater exchangers in 5kW generation system - 10kW stack system with the component technology Korea Institute of Science and Technology belongs to top 10 publishing institutions of hydrogen storage in metal hydrids. Established in 1966, as a government sponsored research organisation, KIST has been a prime contributor in the nations science and technology efforts for more than 30 years. Next to ther R&D efforts, KIST is concentrating its work on Energy Source Technology Development and Environmental Technology Development. The Korean government, especially the Ministry of Environment and the Ministry of Science and Technology are funding KIST's efforts. The Battery and Fuel Cell Research Centre was founded to develop enviromentally-benign and low consuming energy conversion and storage systems, such as fuel cells and rechargeable batteries. Next generation power technologies, molten carbonate fuel cell (MCFC) and solid oxide fuel cell (SOFC). Name, reference

Korea Institute of Science and Technology KIST

GERMANY
Responsible organisation Federal Government Budget Till 4.4 billion Euro (not only Fuel Cells) Time period 2002-2010 Research topics Subsidy of produced electricity by combined heat and power (CHP) stations of up to 2 MW. As a part of this law: support of fuel cell generated electricity of stationary power plants of up to 50 KW with 0.0511 Euro/kWh for 10 years after instalment, if the instalment is before end of 2005. Name, reference Kraft-WrmeKopplungsgesetz, Federal Government Bundesregierung, http://www.fzjuelich.de/ptj/index.ph p?index=343

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Responsible organisation Federal Ministry of Economics and Labour

Budget

Time period

Research topics Visions: Major FC types; Materials, components, manufacturing technology; First stationary, then mobile application expected; System integration with a link to a possible H2 economy. Main action points: Joint effort of private and public institutions; co-ordination of future H2 activities with support of a national advisory committee (under consideration); continuous and balanced RD&D efforts; integration with EU programmes; international co-operation.

Federal Ministry of Economics and Labour, Federal Environment Ministry, Federal Ministry of Education and Research

100 Mill. Euro

2001-2003

Fuel cell development and demonstration projects, including small stationary, large stationary and transport applications as well as education and public awareness projects, although only focused on DMFC, MCFC, PEM and SOFC technologies

Name, reference Overview of relevant hydrogen and fuel cell R& D activities in Germany, presentation 16 September 2003, Brussels, H.-J. Neef , Project Management Organisation Jlich (PTJ) (for Federal Ministry of Economics and Labour Zukunftsinvestitionspr ogramm (ZIP), Federal Government, internet download: http://www.fzjuelich.de/ptj/index.ph p?index=343 Overview of relevant hydrogen and fuel cell R& D activities in Germany, presentation 16 September 2003, Brussels, Werner Lehnert, Centre for Solar Energy and Hydrogen Research (ZSW) (for BadenWrttemberg)

Fraunhofer Institute Government of BadenWrttemberg

Fraunhofer Institute belongs to top 10 publishing institutions of portable applications. Visions: Main focus on portable and stationary application; APU (Auxiliary Power Unit).

Karlsruhe Research Center KFA Julich

Max Planck Institute

Vehicle manufactures, energy supply companies and Fderal Ministry of Transport, Building and Housing

Karlsruhe Research Center belongs to top 10 publishing institutions of hydrogen production by gasification and hydrogen storage in alanates. KFA Julich GmbH is the most prolific publisher in direct methanol fuel cells and transportation applications. It belongs to top 10 publishing institutions of hydrogen production by steam reformation and electrolysis, SOFC and PEM. Max Planck Institute belongs to top 10 publishing institutions of hydrogen storage in carbon nanostructures, direct methanol and phosphoric acid fuel cells. At the Max Planck Institute for Solid State Research (Max Plank Institut fr Festkrperforschung) two research teams have been concerned with fuel cell development. One has worked on a separator membrane for the polymer-electrolyte-membrane fuel cell, where it is necessary to keep the two electrodes safely separated. The research objective of the other work group has been concerned with the cathode in the solid oxide fuel cell. In a long-term vision hydrogen is the most promising alternative fuel in the transport sector

Transport Energy Strategy (TES) (Verkehrswirtschaftlich e Energie Strategie (VES))

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Annex I: Overview of publicly funded RTD&D

UNITED KINGDOM
Responsible organisation Carbon Trust & Engineering & Physical Sciences Research Council (EPSRC) Department for Transport Budget 20M (14M) Time period 2003-2008 Research topics Focus primarily on energy efficiency Name, reference Carbon Vision Partnership New Vehicle Technology Fund

1.4M (10M)

2003-2005

Department of Trade & Industry (DTI)

2.86M (2M)

On-going since 1992

Financial support for building, demonstrating and testing cars which: Are full size full performance cars; Are immediately practical capable of being mass produced within a near to medium timescale of five to eight years; Could be mass produced at an affordable price; Use generally available fuel petrol, diesel or LPG; Have well-to-wheel CO2 emissions of less than 100 g/km; As a result have a performance of around 80 mpg.) VISIONS: Innovation, research and development are crucial. Encourage the development of new, longer term options (for example in respect of the hydrogen economy). Enable emerging technologies (such as renewables and new energy efficiency technologies) to demonstrate their potential. MAIN ACTION POINTS: A new national energy research centre will be established by the Research Councils, targeted at research and development in the appropriate physical, environmental and biological sciences and including social and economic studies. Launch an industry network for fuel cells Fuel Cells UK. Develop a web-based fuel cells exchange (Fuel Cells Forum) so that global information can be accessed quickly and easily by UK industry. Develop a research programme dedicated to fuel cells to be funded jointly by Engineering and Physical Sciences Research Council (EPSRC), DTI and the Carbon Trust. Review the objectives of the DTI research and development programme. Encourage UK organisations to work with the DTIs In Construction and evaluation of novel PEM stacks. Construction and evaluation of SOFC systems (residential and large scale) and SOFC/gas turbine hybrids. Design, construct and evaluate auxiliary power units and associated reformers. Identification of key components and related UK competence.

Energy White Paper: Our Energy Future Creating a Low Carbon Economy www.dti.gov.uk/energy /whitepaper/index.sht ml

2.86M (2M) together with transportation oriented part

On-going since 1992

Assessment of permitting systems/approval mechanisms for FC vehicles. Reformer/fuel processing technologies (liquid fuels). Develop and evaluate hydrogen storage systems for vehicles. Market and technical assessments

0.5M (0.35M)

Annual

Raising awareness about renewable energy in the UK to facilitate deployment; Providing information on market opportunities and barriers in the UK & overseas; Developing and

Advanced Fuel Cells Programme (New & Renewable Energy R&D Programme) www.dti.gov.uk/energy /renewables/technolog ies/fuel_cells.shtml Industry Promotion and Information Development projects (Including: Biofuels; Photovoltaics; Wind; Distributed generation, including energy storage; Wave; Tidal stream; Small-scale and micro-scale hydro) www.dti.gov.uk/energy /renewables/support/4 08_research_develop ment.shtml Industry Promotion and Information

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Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Research topics disseminating information about UK strengths & capabilities; Promoting UK renewable energy industry development in the international market.

Engineering & Physical Sciences Research Council (EPSRC)

Overall 35.8M (25M). Supergen Hydrogen Consortium, 3.4M 4 years. Supergen Fuel Cells Consortium, 2M over 4 years

2003-2008

The sustainable and efficient generation of electrical power from low carbon, zero-carbon or carbon neutral generation systems based on a life-cycle analysis. The distribution, control, monitoring, stability, supply and connection of electrical power or energy carrier. The evolution of alternative energy vectors, carriers, conversion technologies or generation systems. Hydrogen technology Exploring the options for hydrogen as the clean fuel of the future. The programme includes: Fuel cell technologies Silent, clean efficient energy generation; Energy storage and recovery systems Maintaining an uninterrupted supply from intermittent sources.

Name, reference Development projects (Including: Biofuels; Photovoltaics; Wind; Distributed generation, including energy storage; Wave; Tidal stream; Small-scale and micro-scale hydro) www.dti.gov.uk/energy /renewables/support/4 08_research_develop ment.shtml SUPERGEN

Fuel Cells UK www.fuelcellsuk.org

Imperial Collage, University of London

Low Carbon Vehicle Partnership

Not available

Annual

VISIONS: Foster the development of the UK fuel cell industry. Elevate the UK industry in the international arena. Raise the profile of UK fuel cell activity. MAIN ACTION POINTS: Formulation of a Fuel Cells Vision for the UK. Prepare Guides to the UK Fuel Cell Industry. Foster partnerships, both nationally and internationally, between fuel cell researchers and developers. Work closely with other initiatives across the UK to build synergies and optimise outcomes for industry and other stakeholders. Imperial Collage belongs to top 10 publishing institutions of SOFC, direct methanol and phosphoric acid fuel cells, and transportation applications. Imperial College is designing new vehicle powertrains, which integrate FCs as prime movers or auxiliary power units. The Hybrid Power Research Group brings together individuals with mechanical and electrical engineering backgrounds. Simulation software has been developed, which predicts performance, and allows analysis, sizing, design and optimisation of system-level and component-level models. The code has been verified by real-time hardware-in-the-loop testing, and is now used to resolve optimised control strategies. Research also addresses integration of distributed or portable power plants, utilising PEM or SOFC. This focuses on strategy, control and management. A collaborative programme involving bus manufacturers, operators and users in shifting the UK to low-carbon buses; A programme to build the UK component industrys capability in the design and manufacture of key components for new technology vehicles; Advice to Government on the role and remit of the Centre of Excellence for Low Carbon and Fuel Cell Technologies, an initiative proposed by the Automotive Innovation and Growth Team (AIGT) now being taken forward by the Government; Advice to Government on the setting of 2020 targets for ultra-lowcarbon vehicles, including zero-emission vehicles, and on the priorities for government R&D

A Fuel Cell Vision for the UK 2003 www.fuelcellsuk.org/te am/Library/Visionwithc overs100903.pdf

Low Carbon Vehicle Partnership (LCVP) www.lowcvp.org.uk/do cs/LowCVP_Brochure 2003

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Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Natural Environment Research Council (NERC)

40M (28M)

2003-2008

Research topics programmes; Helping Government co-ordinate its low-carbon research development and demonstration activities and providing a single portal for potential participants. Establish the UK Energy Research Centre (UKERC) by 1st April 2004: Co-ordinate its own research programme, co-ordinate a National Energy Research Network. Carbon management. Nuclear power. Renewable energy. Managing new uncertainties.

Name, reference

Society of Motor Manufacturers and Traders (SMMT)

The Carbon Trust

128.7M (Total funding is 90M, of which 56% is from business) 25.5M (17.8M) (figure for energy R&D)

Rolling Programme since 1997

This R&D programme aims to promote technology and stimulate suppliers to develop market driven enabling technologies for future motor vehicles. Main areas covered are: Engine Powertrain; Hybrid, Electric, Alternatively Fuelled Vehicles; Software, Sensors, Electronics and Telematics; Advanced Structures and Materials; Design and Manufacturing Process

Towards a Sustainable Energy Economy Programme (TSEC) www.nerc.ac.uk/fundin g/programmes/susten ergy/ Foresight Vehicle www.foresightvehicle. org.uk/

2002-4

Fuel cells (domestic, CHP, industrial and commercial). Hydrogen (infrastructure including transport, production, storage and distribution.

UK Department for Transport (In collaboration with Department of Trade and Industry, Department for Environment, Food and Rural Affairs, HM Treasury, Cabinet Office, Welsh Assembly Government, Scottish Executive, Northern Ireland Administration) University Newcastle

VISIONS: Promote the development, introduction and take up of low-carbon vehicles and fuels. Ensure the full involvement of the UK automotive industry in the new technologies. MAIN ACTION POINTS: Engaging UK stakeholders in the shift to low-carbon transport. Targets for reducing vehicles fuel consumption and carbon emissions. Supporting research, development and demonstration of low-carbon vehicles. Encouraging consumer take up of low-carbon vehicles and fuels. New fuels production, distribution infrastructure. Taxation measures for lowcarbon vehicles and fuels. European and international actions. Health and safety matters University Newcastle belongs to top 10 publishing institutions of hydrogen production by gasification and direct methanol fuel cells. Newcastle University, Department of Chemistry, is researching PEMFC and DMFC technology. Areas of expertise include electrocatalysis, methanol tolerant cathode catalysts and novel membrane materials. It has been the recipient of a number of European Union and UK DTI research grants, relating to material, component and stack development. One of its most recent projects is the development of a PEMFC-based capillary fuel cell, which it is undertaking with UK company 2S Sophisticated Systems in an EU-funded project that started in 2002. This fuel flexible fuel cell is based on bundle of tubes rather than flat components.

Low Carbon Innovation Programme (LCIP) (Supporting the development and demonstration of a range of technologies that deliver low carbon value) www.thecarbontrust.c o.uk/thecarbontrust/lci p/RandD+and+Demon stration/default.htm Powering Future Vehicles Strategy www.dft.gov.uk/stellen t/groups/dft_roads/doc uments/pdf/dft_roads_ pdf_506885.pdf

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Annex I: Overview of publicly funded RTD&D

SWITZERLAND
Responsible organisation ETH Zrich Budget Time period Research topics ETH Zrich is the most prolific publisher in storage of hydrogen in liquid form. It belongs to top 10 publishing institutions of hydrogen production by steam reformation, electrolysis, gasification, and photocatalytic and biochemical means, PEM, SOFC and molten carbonate fuel cells. The Swiss Federal Institute of Technology Zurich (ETH Zurich) is an institution of the Swiss Confederation dedicated to higher learning and research. Together with the ETH Lausanne and four research institutes, it forms the federally directed, and to a major degree financed, ETH domain. The ETH is home to four groups working in the fuel cell and hydrogen area. The main driver is the Department of Materials, which focuses on the development of SOFC and materials, especially on new electrolyte and anode material and thin ceramic films. The main research focus in the Laboratory of Thermodynamics in Emerging Technologies is on thermal transport and related fluid dynamics in emerging technologies. Examples are micro- and nano-scal Paul Scherrer Institute belongs to top 10 publishing institutions of hydrogen production by electrolysis, thermochemical means, hydrogen storage in liquid form and transportation applications. The Electrochemistry Laboratory at the Paul Scherer Institute (PSI) is working on electrochemical energy storage and conversion and provides expertise in the fields of batteries, fuel cells, supercapacitors, electrolysis, electrocatalysis and electro-chemical material science. In the field of fuel cells, the laboratory concentrates on PEM and DMFC development for transport and portable applications. Together with Dynetek, the ETH Zrich and Volkswagen, the PSI presented a 28kW fuel cell powered VW Bora in 2002. Further research in the portable sector resulted in the development of the power system "PowerPac", a portable power unit (PEM 0.5 2kW), jointly developed with partners including Bruetsch, ETH Zrich, MES-DEA, Tribecraft and Weidmann. A second laboratory at the PSI, the Laboratory for Energy and Material Cycle Name, reference

Paul Scherrer Institute PSI

ITALY
Responsible organisation CNR-ITAE (National Research Council, Institute of Advanced Energy Technologies) Budget Time period Research topics CNR is the most prolific publisher in molten carbonate fuel cells. It belongs to top 10 publishing institutions of hydrogen production by steam reformation. CNR-ITAE is working in three areas on fuel cell and hydrogen development. Work on hightemperature fuel cells (MCFC and SOFC) includes screening, designing and testing catalysts for external and internal reforming and on mechanisms of component ageing. In the field of fuel cells operating at low temperature, CNR-ITAE works on PAFC technology, and has built and tested a 1 kW power plant in the framework of an ENEA - supported program. Building on this experience, activity has been directed to the development of PEM and DMFC fuel cells (catalysts, electrodes, electrolytic membranes). Over the years, CNR-ITAE has worked with various partners on fuel cell development, including Eni Richerce, ENEA and De Nora (Nuvera). The third research area aims to develop prototypes for hydrogen generation from several renewable energy sources such as natural gas, GPL and b Name, reference

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Annex I: Overview of publicly funded RTD&D

Responsible organisation Italian National Agency for New Technologies, Energy and the Environment (ENEA)

Budget

Time period

Ministry of Education, University and Research (MIUR); universities, public research institutions, state and local laboratories and other organisations

51.1 M

2003-2006

Research topics Production: Long term: Hydrogen production through thermal solar (process with metal oxides); Transition phase: Hydrogen production through thermal solar (iodine-sulphur and UT-3 processes for water dissociation); Long term: Hydrogen production with ZEC (Zero Emission Coal) process. Storage: Transition Phase/Long term: Development of innovative materials; Transition phase: Development of components and storage systems for stationary ans transport applications. CO2 logistics and sequestration: Short-medium term: Study of various separation and sequestration methods; Short-medium term: Demonstration of CO2 sequestration in depleted gas wells or aquifers; Short-medium term: Evaluation of storage capacity in Italy. Short-medium term: Development of PEFC technology, with realisation of demonstration plants for stationary (few tens kW systems) and transport applications; -medium term: Development of MCFC technology, with realisation of demonstrative plants (125-500 kW) Development of technologies, components and innovative systems for hydrogen production and hydrogen/CO-separation. Development of systems for hydrogen storage. Study of CO2sequestration in geological and development of related technologies. Development of technologies, components and systems for use of hydrogen in transport field and for energy distribution generation. Improvement of performances and cost reduction through the development of innovative materials, components and cell design. Development and demonstration of fuel cell systems for transportation, stationary power generation and portable units! Plant demonstration, monitoring and verification of operative behaviour of cells using different fuels. University Messina is the most prolific publisher in production of hydrogen by steam reformation and molten carbonate fuel cells.

Name, reference The Italian Hydrogen National Program, presentation 16 September 2003, Brussels, R. Vellone, ENEA, Hydrogen and Fuel Cell Project. Hydrogen Programme R&D Areas.

38.7 M

2003-2006

The Italian Hydrogen National Program, presentation 16 September 2003, Brussels, R. Vellone, ENEA, Hydrogen and Fuel Cell Project. National Research Plan.

University Messina

FRANCE
Responsible organisation ADEME 'Piles Combustible et Energies Nouvelles - (rseau PACo) www.reseaupaco.org Budget Not available Time period Not available Research topics Hydrogen storage carbon nanotubes; Bi-polar plates; Assessing routes to hydrogen production. VISIONS: Structured programme on renewable energies and new energy technologies, including hydrogen and fuel cells. Created in 1999 to respond to government demands regarding the development of new energy technologies, stimulate innovation and support the creation of new business opportunities. By 2001, 29 R&D projects had been set up (50% on fuel cells, 25% on fuels and 25% on techno-economic analysis. A review of activities in 2001 produced a new strategy. MAIN ACTION POINTS: Short term: PEM fuel cell powered buses which can act as a lead for future developments for cars (2003-2006); SOFC auxiliary power units to respond to growing power demands from utility vehicles (2008-2010 for trucks). Long term: PEM FC cars; Stationary applications (remote location market is too small a niche in France). PEM and SOFC will be used for certain applications (2010). Niche Markets: Sub-marine applications for PEM or SOFC; Stationary applications providing both power and emergency power (UPS) of the order of 15kW; P PEM: Development and characterisation of membranes raising the operating temperature for stationary and mobile applications, reducing operating temperature for portable applications; Optimising synthesis and production of membranes, understanding failure mechanisms increasing homogeneity and reducing faults; Optimise the production of membrane electrode assemblies and improve performance (conductivity, mechanical properties, chemical stability); Name, reference PREDIT Strategic Aims no specific title

Agence de lEnvironment et del Maitrise de lEnergie (ADEME) and Commissariat l'nergie Atomique (CEA).

Not available

Not available

Pile Combustible (PACo) www.reseaupaco.org

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Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

CEA

Not available

Not available

CNRS

Research topics Optimise the production of bi-polar plates and improve performance (gas diffusion, corrosion resistance); Improve stack configurations; Understanding component degradation; Recycling; System integration. SOFC: Development of new materials (electrolytes, anode, cathodes) to reduce operating temperatures, help internal reforming (methane, hydrocarbons, syn-gas). Improve thermal stability cycling; Development of inter-connectors using materials that can operate a lower temperatures; Improve stack configurations; Improve performance (conductivity, mechanical properties, chemical stability); Develop and optimise materials production processes; Develop assembly technologies (mass manufacturing); Propose recycling procedures; Study the effects of impurities in fuel streams on performance and sensitivities at lower operating temperatures; System integration. Fuel: Hydorgen - Development of storage technologies (assessment of short and long term options); Development of economic reformers, compact and capable of operating with a broad range of fuels; Develop codes and standards; System integration. Production of fuel cells for portable applications. Fuel cells generally improving the performace of fuel cell components). Hydorgen research (ETAT-CEA 2001-2004): Production (water electrolysis, thermo-chemical splitting of water in nuclear reactors; Storage; Transportation; Codes and standards. CNRS belongs to top 10 publishing institutions of hydrogen production by steam reformation, electrolysis, and photocatalytic and biochemical means, hydrogen storage in Liquid, in metal hydrids and in carbon nanostructures, PEM, SOFC and transportation applications.

Name, reference

R&D programme

SPAIN
Responsible organisation Centre for Automatics, Robotics, Information Technology and Manufacturing (CARTIF) www.cartif.es CIDAUT www.cidaut.es Budget Not available Time period Not available Research topics Fuel Cells: Control and monitoring; Testing; Design of applications/systems: natural gas reformer systems, hybrid systems; Development of prototype vehicles: wheelchairs, tricycles, electric vehicles. Hydrogen: Carbon nanotubes for storage (assessment); Generation from renewables. Mobile applications: substitution of traditional drive-train with electric motor powered by a fuel cell. Stationary Applications residential: fuel cell cogeneration (CHP) system with natural gas including reformer, fuel storage, fuel purification, heat management system, control systems. Fuel Cells: SOFC components bipolar plates, substrates, electrodes, etc.; PEM components membranes, bipolar plates, etc., for mobile and portable applications; MCFC components electrodes, heat exchangers, etc., for marine and stationary applications. Hydrogen: Production of hydrogen from natural gas and methane-rich gases, biomass fermentation and gasification, metal hydrides. High pressure tanks for hydrogen storage for stationary and mobile applications. CO2 sequestration technologies (high and low temperature and pressures). Establishing renewable energy and emerging technologies to help address energy security and efficiency. Support the R&D that contributes to the diversification of energy supply and its integration into the existing energy network. Reduce dependency on conventional technologies and increase exploitation of renewable energy, hydrogen and emerging energy transformation technologies. Increase industrial competitiveness in the manufacture of energy systems. Hydrogen: Alongside the development of fuel cells has the potential to add significantly to the restructuring of the energy economy; Significant barriers (production, distribution and storage) still exist for transport and stationary applications. MAIN ACTION POINTS: Hydrogen. Production without CO2 emissions from renewables or fossil fuels (preferably combined with CO2 Name, reference Energy Studies

Not available

Not available Not available

Inasmet www.inasmet.es

Not available

Development and Demonstration Projects Development and Demonstration Projects

Inter-ministry Commission on Science and Technology (Comisin Interministerial de Ciencia y Tecnologa)

El Plan Nacional de I+D+I 2004-2007 (National RD&D Plan) www.mcyt.es/planidi/

121

Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget

Time period

Ministry of Science and Technology

Financed through regional (Madrid Community), national (CICYT, PROFIT) and European (V Framework Program) programmes Estimated to be 1M (2001)

Rolling

Research topics sequestration): electrolysis (using renewable or nuclear energy), photochemical/photobiological, biomimetic, Reformation, partial oxidation, gasification, others. Fuel Cells: Important to stress their growing importance, especially for transport and stationary applications; The breadth of applicability offers low environmental impact (emissions, noise, etc.). MAIN ACTION POINTS: Fuel Cells: Development of fuels natural gas, methanol, bio-alcohol, other petrol fractions: clean production, infrastructures, etc. Low temperature fuel cells (PEM): development of materials (catalysts, electrodes, electrolytes, plates, etc.), development of components and manufacturing processes (prototypes; FC-systems for transport, portable and stationary applications; fuel processing systems). High temperature fuel cells (SOFC, MCFC). Development of materials (catalysts, electrodes, electrolytes, bi-polar plates, etc.). Development of components and manufacturing processes (prototypes; FC-systems for cogeneration, distributed generation, integration with renewable energy sources, APS, etc.): Validation, modelling and testing; Assessment of evolving application areas, taking into account Low temperature fuel cells (proton-exchange membrane fuel cell, PEMFC) for application in transport and stationary low power sources - 3 automated test stations, single-cell and stacks up to 5 kW Molten carbonate fuel cell, MCFC; solid oxide fuel cells, SOFC) for stationary electrical power generation applications; preparation and fabrication of fuel cell components (cathodes, anodes, matrices, bipolar plates, etc.); electrochemical characterization of compoenents (impedance spectroscopy, cyclic voltammetry techniques, quartz crystal microbalance).

Name, reference

CIEMAT R&D Programme www.ciemat.es/proyec tos/pdcfpilas.html

Rolling since 1990

Spanish Fuel Cell Association APPICE www.appice.es

University Barcelona

Fuel Cells: Regenerative systems for special applications; PAFC 10kW Pilot power generation plant; Viability of transport applications; Integration, characterisation and evaluation of components and systems; PEM pilot plants 2.5 to 5kW. Hydrogen: Production: PV-H2 pilot plant: energy generation in remote locations; transport; Storage: Pressurised, metallic hydrides. Current work: analysis and design of hydrogen fuelled systems: FIRST: Fuel Cell Innovative Remote System for Telecommunication; RES2H2: Integration of RES into European energy sectors using H2; CITYCELL: IRISBUS FC Buses (hydrogen and fuel cell); FEBUSS: Fuel cell Energy Systems standardised for large transport, Buses and Stationary applications; Development of codes and standards; Socio-economic studies; Dissemination; Development of reformers and their integration with FCs for the defence market; Development and characterisation of membrane electrode assembly (MEA), bipolar plates. VISIONS: To encourage the scientific and technical development of Fuel Cell technology, promoting those activities that could be related to the study and use of this form of energy. To inform about the scientific and technical potential of Fuel Cells and about their impact on the economy by way of the organizing or sponsoring of different publicizing activities, such as Trade Fairs, Exhibitions or Public Shows, both Nationally and internationally, in accordance with the competent authorities in each case. To increase the professional knowledge of its members and to promote the exchange of this information using Meetings and Publications of different types. To give advice in the scientific-technical area of the Sector to the official or private bodies that request it. To strengthen relations with national or foreign bodies, whose activities could be related in some way with those of the Association, particularly with the other European or World Fuel Cell groups. University Barcelona is the most prolific publisher in alkaline fuel cells.

Instituto Nacional De Tcnica Aeroespacial (INTA) R&D Programme www.inta.es

Plan of Action 20022003

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Annex I: Overview of publicly funded RTD&D

DENMARK
Responsible organisation Danish energy research programme Budget 20.8 million euro Time period 1998-2002 Research topics The Danish hydrogen programme has been dedicated to practically-oriented R&D and technology demonstration projects with some emphasis on the transportation sector. The programme focuses exclusively on hydrogen produced from renewable energy sources and on the integration of hydrogen technology in renewable energy systems. Historically, priority has been given to research and development in the area of SOFC; it represents more than 40% of the total resources used on fuel cells and hydrogen. Recently, priority is also given to pre-competitive research and demonstration projects covering the development and application of PEM fuel cells for both stationary and mobile applications. Towards a hydrogen based society Name, reference

Denmarks Technical University together with University of Aarhus, IRD fuel Cells, RIS, Danfoss Riso National Laboratory

5.4 million euro

RIS, Haldor Topse, IRD Fuel Cells, Odense University, Denmarks Technical University Roskilde University Center, RIS, Denmarks Technical University, Elkraft, DONG Technical University Denmark

8 million euro

Riso National Laboratory is the most prolific publisher in SOFC. Risoe is a national laboratory under the Danish Ministry of Science, Technology and Innovation. Riso has been working on SOFCs since 1989, and since then has worked on many aspects of this technology, including: materials and processes; design, electrical and mechanical modelling; fabrication techniques for materials, components and stacks. It has developed an anode supported cell for operation in the temperature ragne 750-850C. A pilot production plant has been established at Riso in collobaration with Haldor Topsoe A/S. Together with Rolls-Royce, Gaz de France, Morgan Advanced Ceramics and the University of Genoa, the institute is workin on a EU funded SOFC reasearch programme. SOFC research and development with 10 projects and a budget of more than 8 million euro.

0.4 million euro

Scenarios for H2 for Danish energy system

Technical University Denmark belongs to top 10 publishing institutions of phosphoric acid fuel cells. There are two departments at the Technical University of Denmark which are involved in fuel cell and hydrogen research. The Center for Atomic-Scale Materials Physics (CAMP), part of the Department of Physics is working on catalysts in general and has developed a new anode catalyst material for the use in low temperature PEMFC DMFC. The Department of Chemistry is working and researching electrochemistry, fuel cells and batteries. The department focuses specifically on metal hydride storage solutions, MCFC and SOFC materials and components.

FINLAND
Responsible organisation National Technology Agency TEKES Budget 11.8 million euro Time period 1998-2002 Research topics Hydrogen-related R&D in Finland is mainly incorporated in programmes on (1) fuel cell technologies and system products based on fuel cells, and (2) distributed energy systems. Hydrogen is considered as a pro-climate and environmentally sound technology although hydrogen is not explicitly mentioned in neither policy framework programmes of the Government nor technology programmes launched by The National Technology Agency Tekes. The focus is heavily on the industrial applicability of R&D activities, and relatively little resources are directed Name, reference

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Annex I: Overview of publicly funded RTD&D

Responsible organisation

Budget 46 million euro 1.3 million euro annually

Time period 2003-2007

Helsinki University of Technology/Advanced Energy Systems Laboratory, VTT Chemical Technology, bo Akademi University PrizzTech Oy, Wrtsil, Naps Systems Oy, Finnish Chemicals Oy, FC Energia Oy, Woikoski, Outokumpu, municipality of ets VTT Processes, Helsinki University of Technology, Lappeenranta University of Technology, Kalmar Industries Oy, Patria Vehicles Oy, Plustech Oy, Sandvik-Tamrock Oy, Vacon Oy

Research topics to basic research. The Distributed Energy Systems Programme DENSY programme will focus on systems integration and commercial services of distributed generation of power, heat and cold. A demonstration project FINSOFC was recently initiated by VTT and a group of companies to develop and utilize SOFC technology with an annual funding of approx. 1.3 million euro.

Name, reference

In PEM fuel cells there are two demonstrations, one on small-scale generation of combined heat and power (CHP), and the other on the development of a PEM-based power source in the range of 150W 10 kW. 0.9 million euro A development project on electricity usage concept of mobile work machine whose objective is to lay the foundation for future work machine with a fuel cell based energy source.

ICELAND
Responsible organisation Government Budget Time period Research topics The vision is to create the worlds first hydrogen economy. The Icelandic hydrogen project began in February 1999 when an Icelandic consortium, Vistorka hf (EcoEnergy Ltd.) signed a Cooperation Agreement with DaimlerChrysler, Norsk Hydro and Royal Dutch/Shell. The aim of the consortium is to test hydrogen-burning fuel cells in the transport sector and to ultimately convert public and private transportation as well as the propulsion of the fishing fleet to this technology. Name, reference

NORWAY
Responsible organisation Efficient and Renewable Energy Technologies programme Budget 13.9 million euro Time period 1998-2002 Research topics Hydrogen activities have mainly been supported as part of the Efficient and Renewable Energy Technologies programme, but also in the strategic programmes oriented towards supporting R&D in the universities and research institutes. Hydrogen production from natural gas and CO2 deposition has a high priority and has been supported by the Norwegian climate technology programme KLIMATEK (1997 2001). A national Hydrogen Programme is under preparation by the National Hydrogen Committee, who is to report to the parliament by June 2004. In a sample of Norwegian R&D projects, 11 out of 36 projects representing 30% of all project budgets focused on production of hydrogen. Projects focus on NH3 as energy carrier, catalysis/reactor systems, photobiological production and different forms of electrolysis. R&D on storage is given weight in Norwegian R&D with more than 30% of all project budgets. Projects first and foremost concern storage in metal hydrides or other advanced materials. Institute for Energy Technology belongs to top 10 publishing institutions of hydrogen storage in Name, reference www.hydrogen.no

4.1 million euro 4.3 million euro Institute for Energy Technology

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Annex I: Overview of publicly funded RTD&D

Responsible organisation IFE

Budget 0.4 million euro 1.1 million euro 1.4 million euro 0.5 million euro 0.6 million euro 0.4 million euro 1.8 million euro 1.1 million euro 0.6 million euro

Time period

Research topics alanates. Hydrogen storage in metal hydrides New Advanced Materials for Hydrogen Storage Hydrogen storage in solid materials - from synthesis to system Biohydrogen. Photobiological Production of H2 Technology development for integrated SOFC, biomass gasification and high temperature gas cleaning Hydrogen Storage Hydride Materials Advanced catalysis/reactor systems for conversion of hydrocarbons to hydrogen for fuel cells Hydrogen Technology - Materials, Processes and Systems Analysis Nano-crysalline Ni-alloys in electrochemical hydrogen

Name, reference

NIVA NTNU

SINTEF Chemistry SINTEF Materials Technology University of Oslo

SWEDEN
Responsible organisation Lund University, Consortium for Artificial Photosynthsis, Stockholm University, Uppsala University Royal Institute of Technology Budget 7.5 million euro Time period Research topics Fuel from solar energy and water Funded by the Swedish Foundation for Strategic Environmental Research MISTRA Royal Institute of Technology is the most prolific publisher in alkaline fuel cells. It belongs to top 10 publishing institutions of hydrogen production by steam reformation, PEM, phosphoric acid fuel cells and transportation applications. The research activities at the department are concerning power sources (secondary batteries and fuel cells) and electrolytic processes. Three different kinds of fuel cells are studied, polymer electrolyte fuel cells (PEFC), direct methanol fuel cells (DMFC) and molten carbonate fuel cells (MCFC). The electrochemical performance of the fuel cells and the components are experimentally characterised. These results are analysed and the performance are optimised by means of mathematical models. Batteries and FCs for better environment Two fuel cell projects focus on Lithium Polymer Batteries and solid Polymer Fuel cells for the transportation sector. Funded by the Swedish Foundation for Strategic Environmental Research MISTRA Name, reference

Royal Institute of Technology Department of Chemical Engineering and Technology, Chalmers University of Technology, Lund Institute of Technology, Stockholm University, Uppsala University, Ericsson Mobile Communications AB, AB Volvo, Hgans AB, NiMe-Hydrid AB Royal Institute of Technology KTH

10.3 million euro

0.5 million

High pressure catalytic combustion Funded by the Swedish Foundation for Strategic

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Annex I: Overview of publicly funded RTD&D

Responsible organisation Swedish Government and the vehicle industry

Budget euro 4 million euro for fuel cells R&D

Time period 2000 - 2006

Research topics Environmental Research MISTRA A cooperative programme on environment-friendly vehicles. The programme is to run for six years, starting in 2000. The total budget is expected to be about SKr 2 000 million, with a government contribution of SKr 500 million. The programme will focus on environmental issues, including the greenhouse effect. The programme includes work on more efficient internal combustion engines and drive trains, fuel flexibility, hybrid and fuel cell vehicles, flexible and lighter vehicles, and road traffic information systems. Two specific programmes have recently been launched: The Stationary Fuel Cell Programme (2003 2006) with a budget line of 4 million euro focusing on research about small-scale production of electricity with fuel cells. The Energy Systems in Road Vehicles Programme (2000 2003) and a total budget of 11.5 million euro focusing on reducing fuel consumption in automobiles and to develop cost-effective biofuels.

Name, reference

126

Annex II: Overview of privately funded RTD&D

ANNEX II OVERVIEW OF PRIVATELY FUNDED RTD&D IN THE EU, THE USA, CANADA, JAPAN AND THE ASIA PACIFIC ECONOMIC CO-OPERATION
USA
Company Acumentrics Corporation Visions, targets, future key research areas One of Acumentrics Corporation's research has convinced that the Acumentrics' solid oxide fuel cell systems, in particular, have a real potential to emerge as the leading technology in the fuel cell market, which would be start from FY 2005 in Japan. Main action points Acumentrics Corporation is developing micro-tubular SOFCs based on the patents of Prof. K Kendall et al.. Direct internal reforming allows the SOFCs to operate on a range of fuels including natural gas, propane, methanol, ethanol and hydrogen. Investments in the company total $36 million; these are derived from a combination of corporate (General Dynamics and ChevronTexaco) and state government (Connecticut Clean Energy Fund) sources. Acumentrics is a newly announced SECA Industrial Team leader, but was yet to sign the contracts with the DOE in June 2003. Micro-tubular SOFCs are especially useful for small systems, giving both rapid start-up and high power density. The reason for this is the small diameter of the tubes plus the low wall thickness which prevent the build-up of damaging thermal stresses. Air Products and Chemicals, Inc. is the worlds largest supplier of merchant hydrogen. The company produces hydrogen and equipment for hydrogen separation and purification, and has published studies on the infrastructure issues related to the future supply of hydrogen fuel for large fleets of buses, trucks and automobiles. Air Products is interested in developing an infrastructure of hydrogen distribution for use in fuel cells, and to this end is working closely with several major players in the fuel cell world, including Ballard Power Systems, Ford Motor Company and H Power. Anuvu, the smallest of the PEM developers, is effectively passive in market making. It has its stacks as core products and is prepared to supply these on a commercial basis. Name, reference Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

Air Products and Chemicals

Air Products and Chemicals is working to bring low cost distributed hydrogen production technologies to the market place to promote the development of hydrogen energy applications.

Companys profile and corporate website: www.airproducts.com Additional source: www.fuelcellpartnership.org

Anuvu Fuel Cell Products

The company will undertake contract development of specific systems for mainly motive power applications and will, therefore, move in line with the overall market.

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

Dais-Analytic Corporation

Dais-Analytic Corporation is an energy technology company involved in the development and commercialisation of polymer materials and integrated fuel cell systems for residential, small commercial and portable uses. Its primary interest is in PEMFC. In 2000, Dais-Analytic has formed a joint venture with LG-Caltex Oil of Seoul, named Clean Energy Technologies.

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Company Delphi Corporation

Delphi Corporation

DuPont

Visions, targets, future key research areas Delphi Energy & Chassis Systems, a devision of leading mobile electronics, transportation components and systems technology group Delphi Corporation, is working in partnership with European automakers BMW and Renault to co-develop a SOFC system as an auxiliary power unit for passenger cars and lightduty trucks. The system will be able to use both, gasoline and diesel fuel. In 1997 Delphi created a research alliance with ARCO Products (part of BP) and Exxon Research and Engineering to develop on-board gasoline fuel processing technology and hardware for PEM fuel cell systems and automotive applications. DuPont is a major chemicals manufacturer and marketer. It manufactures Nafion (R) membranes for use in PEM fuel cells. It is also developing other components such as membrane electrode assemblies and conductive plates. As of November 2002, DuPont has over 100 people working on fuel cells, and continues to expand and invest in its Fuel Cell Technology Center to increase capacity for in-depth testing and product development. The DuPont Fuel Cell business has pilot facilities operational for the production of MEA's for hydrogen, reformed hydrogen and direct methanol fuel cells. Investment in manufacturing facilities continues so that installed capacity meets or exceeds market demand.

Main action points

Name, reference

In August 2001, Dupont announced a tie-up with Mechanical Technologies company MTI Micro Fuel Cells to commercialise direct methanol fuel cells (DMFC). In January 2003, Superior MicroPowders announced that it has signed a contract with DuPont allowing the two parties to collaborate under SMP's awarded US$5.12M program from the DOE for fuel cell materials development.

Electrochem Inc

Ford Motor Company

Ford is focusing on continuing PEM technology integration and interface issues, together with the early development of a manufacturing strategy. For the future, the various options for packaging fuel cell vehicles (i.e. with no drive lines, belts, pulleys, etc. but electronic controls and systems management) will have significant implications for the manufacture and assembly of fuel cell engines and powertrains, as well as other vehicle components.

Electrochem has modified its business focus to include market and product development for the industry, specifically including fuel cell power systems, fuel cell test equipment and fuel cell research supplies. Ist products include PEM fuel cells and stacks, as well as Phosphoric Acid Fuel Cells. It supplies all major components needed to assemble PEM fuel cells and also manufactures components such as electrodes and membrane electrode assemblies. Its EC-200 Power Pak, a complete power unit with both AC and DC outlets capable of powering an everyday appliance such as radio, has also attracted attention. Ford does not directly develop its own fuel cells but has an exclusive agreement with, and a major equity stake in, Ballard Power Systems. Ford supplies the fuel cell balance of plant and undertakes the systems integration covering the battery system, regenerative braking, electric powertrain and traction module, and hydrogen storage. Ford has been involved in fuel cell vehicle prototypes since the early 1990s. It has worked with various Ballard PEM-based stack and system designs of around 70kW, and has developed a series of vehicles involving different combinations of battery technology (currently using Ni-MH) and re-generative braking systems/traction motors, controllers, etc. . This has resulted in a new vehicle system every year since 1998. These vehicles have been based on gaseous hydrogen as the on-board fuel. Fords interest in fuel cells is purely in the automotive context sustainable mobility technologies that will keep the company at least on par with other auto OEMs in the move to widespread

Companys profile and corporate website www.fuelcell.com

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

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Company FuelCell Energy FCE

Visions, targets, future key research areas FCE, formerly Energy Research Corporation, develops electrochemical technologies such as molten carbonate fuel cells and electrochemical engines that generate electricity without combustion. The company has developed a fuel cell that can be fed fuel directly without an external reactor. FuelCell Energy has been selected to install a 250 kW direct fuel cell power plant in Los Angeles. With no products yet for commercial sale, it is producing prototypes and working on cutting the costs of fuel cell energy production at power plants.

Main action points The company has teamed up with DaimlerChrysler's MTU/CFC Solutions, which also holds a stake in FCE, to develop fuel cells. In June 2003, FCE aquired a stake in MTU/CFC. In August 2003, FCE announced the aquisition of Global Thermoelectric for US$ 80 million.

GE Power Systems

The GE Hybrid Power Generation System SECA SOFC program focuses on the development of a low-cost, high-performance 3 to 10 kW SOFC system suitable for a broad spectrum of power generation applications. The overall objective of the program is to demonstrate a modular SOFC system that can be configured to create highly efficient, cost-competitive and environmentally benign power plants tailored to specific markets. When fully developed, the system will meet the efficiency, performance, life and cost goals for future commercial power plants.

GenCell Corporation

General Motors Corporation

GenCell's products are aimed to baseload the customer's electric power needs while optionally providing co-generated heat. This permits the customer to reduce transmission, generation, and demand charges while still providing back-up of critical loads on loss of the grid in the same way as traditional diesel gensets, but without the high air emissions. GM have the aim of taking vehicle purchase and production decisions out of the environmental arena. It is GMs goal to be the first mover in the fuel cell automotive market, and demonstration projects are key to ist further development plans. These include a six vehicle public-use project in Washington, DC, and GMs key role in the DOEs $300 million vehicle demonstration project. Hydrogen production and storage is a national is-sue; in GMs view, hydrogen should be undeclared as a hazardous prod-uct and should be treated as a conventional fuel. Codes and standards should be templated for convenience of interpretation and application both nationally and locally.

GE Power Systems is one of the six current SECA (Solid State Energy Conversion Alliance) Industrial Team leaders, who aim to develop a fuel flexible planar SOFC system in the 3-10kW size range. The planar cell design offers high power density but has the significant problem that high temperature gas seals are needed at edges of the plates to isolate the oxidant from the fuel. Difficulties in successfully developing such high temperature seals have slowed the development and use of planar design cells for SOFC generators. SOFC stacks in the 1-25 kW size utilising planar cells are now being designed, fabricated, and electrically tested. These difficulties of sealing associated with planar designs have led to development of tubular designs. GenCell Corporation is a manufacturer of fuel cells and integrated fuel cell power generators. Currently, the company is working on a 40KW MCFC power unit. In January 2004, GenCell announced a partnership with Ion Power to jointly develop fuel cells for stationary, portable and automotive applications. General Motors Corporation has developed its own fuel cell technology for vehicle propulsion, with the current engine based on a 75kW stack of approximately 200 cells. This has been integrated this into a variety of demonstrator vehicles (e.g. a fuel cell Zafira). It is also working with Toyota on a pre-commercial basis across areas of general fuel cell-related research. GMs primary technology development focus is around fuel cell integration on board vehicles. This covers: systems packaging and interface issues (e.g. with DCDC converters to take current off the stack, to supply at 12V for standard systems and 42V for new equipment); cold start capabilities (the company has achieved cold starts down to -20C); use of wheel hub motors versus conventional powertrains; air and thermal management; and hydrogen supply (both compressed and liquid storage). Significantly, GM stated that it is not working on hybrid fuel cell plus battery electric systems, but has moved direct to primary fuel cell propul HydrogenSource is a company focused on making fuel cell technology a reality by manufacturing fuel processing systems that

Name, reference Partners: Marubeni Corporation, Fluor Daniel, General Dynamics/BIW, PPL Energy Plus, Chevron Energy Solutions, MWH Global, Caterpillar, Department of Energy, Southern Company, LADWP, Global Energy, AMEA, King County/ EPA, U.S. Navy/Coast Guard, Emergent Energy Group, Caterpillar Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

Companys profile and corporate website www.gencellcorp.com

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

HydrogenSou rce

HydrogenSource aims to supply products for small and large stationary fuel cell markets and onboard reforming which should

Companys profile and corporate website

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Company

Manhattan Scientifics

Visions, targets, future key research areas lead to positive cash flow by 2008. Through its innovation it aims to offer customers cost-competitive, reliable and efficient Fuel Cell Processing Systems (FPS) solutions and pursues new opportunities to leverage its technologies. Manhattan Scientifics is a leading fuel cell manufacturer of direct methanol (DMFC) and polymer exchange membrane (PEM) fuel cells. Currently, the Company is developing the so called MicroFuel Cell Technology, a portable power solution for small electronics, such as pagers and cellular phones powered by methanol and water (DMFC); and the Mid-Range Fuel Cell Technology, (NovArs) which is directed toward high current, low voltage applicationslap-top computers, cordless appliances and power tools, wheelchairs, bicycles, boats, and home energy fuel cell systems (PEM). Northern Power Systems designs, builds and installs ultrareliable power solutions for commercial, industrial, government, and military customers. The company also conducts research and development in the areas of renewable energy, distributed generation and hydrogen technology. Since its founding in 1974, Northern has installed over 800 systems in 45 countries on all seven continents. Northern Power Systems, Inc. is headquartered in Waitsfield, Vermont and employs 100 people with engineering, fulfillment, and customer- support capabilities. Using its efficient and proven natural gas reforming technology, Plug Power, in partnership with industry leaders, is actively developing product solutions to meet the on-site hydrogen needs of industrial gas customers. Plug Power, jointly with Honda R&D, is extending the capability of the existing natural gas products to include delivering pressurized hydrogen fuel. This solution will provide electricity and heat for the home and hydrogen for the fuel cell vehicle.

Main action points convert todays fuels into hydrogen. In 2002, the company launched its VEGA 5, the worlds first stand-alone 5kW fuel processing system. It is a joint a joint partnership of UTC and Shell. Some of the applications of the NovArs technology have been demonstrated in a 670W PEM fuel cell powered bicycle (Hydrocycle) which was presented by Aprilia in 2000 and a 700W PEM fuel cell powered Segway, presented in 2003 by the Fuel Cell Test and Evaluation Center (FCTec). The technology has also been licensed to Ballard Power Systems (2003) and a Singapore/China based development company (2004). Associated Companies: In 1999, Manhattan Scientifics acquired the pending patents, intellectual property and exclusive worldwide commercial development rights to a mid-range fuel cell technology of NovArs GmbH, Germany

Name, reference www.hydrogensource.com

Partners: Los Alamos and Sandia National Laboratories, Ballard, Aprilia, FCTec

Northern Power Systems

The company is part of the Distributed Energy Systems Corp. and works with sister company Proton Energy Systems.

Plug Power

Praxair

Plug Power was formed in 1997 as a joint venture between Edison Development Corporation (a utility) and Mechanical Technology Inc. Plug Power focuses on the design, development and production of PEM systems for stationary markets with light industry and residential complex distributed generation applications. Its main product is a fully integrated, grid parallel 5kW system that operates on natural gas. Plug Power recently (end 2002) acquired H Power which had been developing similar systems for distributed generation. The company has strategic relationships with: Vaillant GmbH of Germany as a co-developer for domestic CHP systems; Honda R&D Co. for a domestic CHP system that generates hydrogen in off-peak periods to provide a home refuelling capability for fuel cell vehicles; Engelhard Corporation for development and supply of advanced catalysts to be used in the fuel processors; and Celanese GmbH for development of high temperature MEAs. The company has two core products aimed at different Praxair, a leading industrial gas and hydrogen supplier has been working with materials providers, device suppliers, end-use customers and government on the development of new, clean fuel technologies. The company is leading a US DoE team in the development of a new generation of clean transportation fuels. Praxair is a member of the California Fuel Cell Partnership and supplies the Sacramento facility with hydrogen. Praxair has also teamed up with BP to design, build and operate a hydrogen fuelling station at Los Angeles Airport, partly funded by the California South

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

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Company Proton Energy Systems

Visions, targets, future key research areas Its vision is to make low cost hydrogen accessible throughout the world; To be the world leader in harnessing PEM technology; To make low cost products for todays commercial markets and tomorrows sustainable energy needs.

Quantum Technologies

Siemens Westinghouse Power Corporation

The company's next steps are to demonstrate prototypes of the first commercial SOFC products, and these will take place in 2002 and beyond. These prototypes will consist of 250 kW cogeneration (CHD) systems and SOFC/GT hybrid power systems of 300 kW.

Teledyne Technologies Inc.

Teledyne's focus will remain on the more profitable high reliability, high systems integrity power markets in the aerospace and defence sectors, with its hydrogen/oxygen systems as a

Main action points Coast Air Quality Management District (AQMD) and the DoE. Proton Energy Systems makes hydrogen generators and regenerative fuel cell systems. Proton's HOGEN hydrogen generators make high purity, process pressure hydrogen from water and electricity for diverse uses in semiconductors, metallurgy, electrical generator cooling, meteorology and fuel cell applications. Proton's UNIGEN fuel cell systems have the potential to capture, store and release electrical energy more cost effectively and efficiently than batteries or other alternatives. PEM technology has a 40 year history of demonstrated reliability in critical military and aerospace life support applications. Proton Energy team members have over 100 years of experience in taking PEM products from the concept phase through hardware manufacture. Proton is committed to PEM applications in commercial markets. Quantum Technologies develops advanced fuel storage, fuel metering, electronic control systems, and system integration for manufacturers of fuel cell engines and internal combustion engines. Quantum's advanced fuel system technologies enable economical operation using clean-burning fuels, such as hydrogen, natural gas, and propane. Quantum designs each system to optimise efficiency and performance while reducing emissions to the lowest-levels. Quantum supplies these fuel systems to original equipment manufacturers (OEM). Quantum has developed a state-of-the-art ultra lightweight advanced composite storage tank technology for compressed hydrogen and natural gas that can hold up to 700 bar. The lightweight nature of the tank, coupled with high hydrogen mass by volume, improves the range and safety of hydrogen and natural gas-powered vehicles. Quantum integrates the gaseous fuel storage, metering and electronic control components and systems into fuel cell vehicles and alternative fuel vehicles. It not only deve Siemens Westinghouse Power Corporation is currently selling smallscale SOFC systems for integration into stationary uninterruptible power supplies (UPS) and cogeneration/combined heat and power (CHP) demonstration systems. It has pioneered SOFCs since the 1960s and has become one of the most important players in US SOFC development as a result. Todays commercial prototype contains lanthanum-manganite- based cathode-supported cells with a 2.2mm wall-thickness. The tubular SOFCs have also shown the ability to be thermally cycled to room temperature from 1,000C over 100 times without any mechanical damage or electrical performance loss. With pressurised operation, SOFCs can be successfully used as replacements for combustors in gas turbines for SOFC/turbine hybrid systems. The single biggest advantage of tubular cells over planar cells is that they do not require any high temperature seals to isolate oxidant from the fuel. Large diameter tubular SOFCs are mainly suitable for stationary power generation and n Teledyne Technologies Inc. Teledyne Energy Systems is a major US aerospace, defence and energy firm. Teledyne Energy Systems (TES) was created by the merger of Teledyne Technologies Energy

Name, reference Companys profile and corporate website www.protonenergy.com

Companys profile and corporate website www.qtww.com

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global

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Annex II: Overview of privately funded RTD&D

Company Teledyne Energy Systems

Visions, targets, future key research areas technology differentiator. The company will develop its PEM technology only for markets and applications which have reached an advanced state of readiness. Given its background, this would imply specialist defence, space and aerospace segments, together with specific industry segments, where its hydrogen/oxygen systems have unique advantages for power supply in enclosed areas. TES has the advantage of a portfolio of products and technologies which enables attain economies of scale in R&D and selective development of PEM systems demand matures. It is also prepared to make acquisitions to strengthen or widen its PEM technology base or enter specific markets. In the transportation market, UTC Fuel Cells is currently partnered with Nissan, Hyundai and BMW to develop fuel cells for automobiles and is developing fuel cells for the bus and fleet vehicle market.

UTC Fuel Cells

UTC Power

ZTEK Corporation

ZTEK continues its efforts on its 200 kW SOFC/Gas Turbine system, SOFC and absorption chiller/heater cogeneration system and its 4000 scfh High Temperature Steam Reformer (HTSR).

Main action points Systems and Energy Partners Inc. TES is a global supplier of hydrogen and oxygen gas generator systems, including hydrogen refuelling stations, thermoelectric products for active heating and cooling in extreme conditions, and fuel cell testing equipment. Energy Partners was developer and supplier of PEM fuel cells, and its activities in stacks, systems and components have been added to the TES portfolio. TES has developed PEM systems for both motive and stationary power applications. They are relatively unique in their fuel design flexibility, covering pure hydrogen and dilute hydrogen (from reformed hydrocarbon fuels), with oxidants of either air or pure oxygen. Its hydrogen/oxygen systems provide access to specialist closed environment power supply for submarine, submersible unassisted vessels (UAVs), space, under UTC Fuel Cells (previously known as International Fuel Cells) is part of United Technologies Corporation (other divisions include Carrier, Otis, Sikorsky, Pratt & Whitney and Hamilton Sundstrand). UTC Fuel Cells has a technology portfolio includes AFC, PAFC, MCFC and SOFC systems, as well as PEM systems. Its PEM systems were first developed for on-board electricity for Apollo space missions in the 1960s and are now focused on automotive and stationary power applications. Its automotive PEM systems for passenger vehicles are based on a 75kW stack operating under ambient (un-pressurised) conditions. These are supplied under development agreements to Hyundai, Nissan and Renault. As a bus fuel cell engine, two 75kW stacks are integrated for transit bus vehicles, as installed by Thor Industries in the USA and Irisbus in Europe. Its ongoing development targets cover three areas: extending operational lifetime (which is an MEA durability issue being addressed with Johnson Matthey, and is influenced by start/sto UTC Power is part of the United Technologies Corporation group and its fuel cell group UTC Fuel Cell is primarily known for operating over 250 PAFC installations around the world, including one at a leisure facility Woking in the UK. SOFC systems were the ultimate fuel cell technology because of the high efficiencies that can be achieved when operating in combined heat and power applications. ZTEK Corporation develops and manufactures solid oxide fuel systems. ZTEK's Planar Solid Oxide Fuel Cell (SOFC) system has exceptional potential for electric power generation because of: simplicity of components construction, capability for low cost manufacturing, efficient recovery of very high quality by-product heat (up to 1000(C), and system integration simplicity. The ZTEK SOFC Power System Technology offers the benefits of clean, low cost electricity resulting from low capital cost and ultra high efficiency. In addition to the potential for competitive low cost of electricity, the following additional benefits apply: maximum MW capacity per distributed site; maximum use of renewable fuels when landfill gas and biogas are utilised; high power quality; low NOx, SOx and HC emissions; and ease of CO capture. This leads to significant utility benefits such as: response to global warming concerns, repowering

Name, reference Watch Mission Report, June 2003)

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003)

Synnogy/Fuel Cells UK: ("Fuel Cells the USA Experience" DTI Global Watch Mission Report, June 2003) Michael S. Hsu (1999): ZTEK ADVANCED PLANAR SOLID OXIDE FUEL CELL FOR DISTRIBUTED GENERATION. 1999 Conference Proceedings Joint Fuel Cell Technology Review Conference. Companys profile and corporate website: www.ztekcorp.com

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Company

Visions, targets, future key research areas

Main action points opportunities, and applications of distributed generation which will result in a low cost of total ene

Name, reference

CANADA
Company Astris Fuel Cells Inc. Visions, targets, future key research areas Astris focusses on small vehicles in the automotive sector. The company is planning to be the first company to enter this market effectively in the near future. Main action points Astris has been pioneering the development of alkaline fuel cell electric generators since 1983 and now has three such power systems fully tested and ready for commercialization. Astris has specialized in one-to-ten kilowatt systems which have tremendous global market potential. The company also anticipates linking modules together in larger units for broader applications. The company is now demonstrating the world's first fuel cell-powered golf car. To realize the full potential of these markets, Astris intends to partner with or license major manufacturers in each field, and initial negotiations have already begun. Ballard began work on PEM fuel cells 18 years ago in Vancouver, Canada and is now generally recognised as world leader in PEM systems. The firm has gone through a number of corporate transitions over time, including IPO, and has significant equity holdings by two automotiveOEMs: Ford Motor Company and Daimler Chrysler AG. Ballard is commercializing fuel cell engines for transportation applications and fuel cell systems for portable and stationary products. Ballard is also commercializing electric drives for fuel cell and other electric vehicles, power conversion products, natural gas and hydrogen generator sets and is a Tier 1 automotive supplier of friction materials for power train components. Products: Proton Exchange Membrane Fuel Cells (PEMFC) for portable, stationary, and transportation applications. Ballard has been incorporating Tokyo Gas fuel processors into its Ebara Ballard 1kWe domestic combined heat and power (CHP) units for the Japanese market. Ballard has also agreed to collaborate with Osaka Gas in developing Osakas low temperature compact fuel processing sub-system for the Japanese residential market. Ballard has its own proprietary natural gas steam reformer technology. This has been incorporated into its 250kWe field trial units. Ballard is presently testing a demonstration 250kW generator using natural gas with the utility company Cinergy in Indiana (USA). Although the main thrust of Ballards fuel processing activity for stationary generation is focused on natural gas, its reformer (with enhanced gas clean-up) can also be operated on biogas. Ballard possesses internal technology for reforming methanol and synthetic fuels such as dimethyl ether. Ballard has recently patented technology based on auto-thermal reforming which can be used for reforming such fuels. Dynetek has developed and manufactures lightweight composite cylinders designed for the storage of compressed gases such as hydrogen and natural gas. Its compressed hydrogen fuel storage Name, reference http://www.astris.ca

Ballard

Ballard expects to meet the commercial launch requirements of its automotive customers, most of whom have publicly stated their intent to manufacture fuel cell vehicles between 2010 and 2012.

Fuel Cells the Canadian Experience: (DTI International Technology Service Mission Report, September 2002)

Dynatek

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Company

Visions, targets, future key research areas

Fuel Cell Technologies (FCT)

FCT's mission is two-fold: 1. FCT will be among the leading companies to develop and commercialize solid oxide fuel cell (SOFC) power systems to generate electricity and heat on site for residential, industrial, commercial, and remote applications. 2. FCT will continue to commercialize the successful aluminum energy fuel cell power systems on a contractual basis for specialized applications such as underwater propulsion and remote power sources.

Global Thermoelectri c Inc.

HERA Hydrogen Storage Systems

Hydrogenics

Hydrogenics is driven by the vision of a dramatically different future a future in which sustainable, reliable and efficient power technology contributes to a healthier environment and better global quality of life.

Methanex Inc.

Over the last five years, Methanex's primary objective has been to maintain and enhance the strong competitive position in the methanol industry.

Main action points systems have been incorporated in many fuel cell vehicles and buses, including those developed by DaimlerChrysler, Ford and Nissan. Dynetek has also signed an agreement with Stuart Energy to supply stationary hydrogen storage systems for Stuart Energy's Hydrogen Energy Station (HES) product line. Additionally, the company has developed a 500bar compressed hydrogen mobile fuelling facility. Fuel Cell Technologies develops 1kW to 50kW systems for residential and small commercial applications based on the SiemensWestinghouse tubular SOFC stack technology. The package consists of fuel cells and interconnect capability to run in a grid parallel application. The controls have grid fault-sensing capability and with the assistance of batteries, can rapidly pick-up local loads and peakshave. The system provides hot water / steam suitable for residential use. SOFC has inherent fuel flexibility and potential fuel inputs include hydrogen, natural gas and propane. In addition to the provision of residential CHP systems, FCT also engages in the testing of fuel cell stacks. Global Thermoelectric Inc. is a wholly-owned subsidiary of FuelCell Energy, Inc. of Danbury, Connecticut (www.fce.com). Global Thermoelectric is a world leader in the development of solid oxide fuel cell (SOFC) technology and is also the world's largest manufacturer and distributor of thermoelectric power generators for use in remote locations. HERA Hydrogen Storage Systems develops and markets hydrogen storage products based on metal hydrides for use in fuel cell and other hydrogen applications. Products include hydrogen storage alloy materials, tanks and tank systems for portable, stationary, mobile, military and other power applications. HERA has been working with companies including Hydrogenics and Siemens. In 2003, HERA acquired the hydride assets of Ergenics, which was supplying metal hydride hydrogen compressors for a broad range of applications. Hydrogenics is a leader in the design and manufacture of fuel cell power systems and power modules ranging from 2 kW to 60 kW. Greenlight Power Technologies, a wholly-owned subsidiary of Hydrogenics, is dedicated to fuel cell test products and services. The Company has chosen a commercialization path that first develops premium power products for early technology adopters. Products: PEM fuel cell power modules for transportation, stationary, and portable applications; PEM electrolyzer modules; Seal-in-Place stack sealing technology; fuel cell test systems and services (see Greenlight Power). Methanex is the world's leading methanol producer and marketer, and is excited about the potential for methanol to contribute to energy diversity and environmental considerations included in a hydrogen economy, such as fuel cell vehicles. Globally, Methanex already produces approximately one million tonnes of hydrogen per year, which is consumed to manufacture methanol. While fuel cell developments are proceeding, it is also important to ensure that the

Name, reference

Fuel Cells the Canadian Experience: (DTI International Technology Service Mission Report, September 2002)

http://www.globalte.com

Fuel Cells the Canadian Experience: (DTI International Technology Service Mission Report, September 2002)

http://www.methanex.com, http://www.fuelcellscanada.c a

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Company

Visions, targets, future key research areas

QuestAir Technologies, Inc.

QuestAir is a private company focused on becoming the world's leading developer and supplier of compact PSA gas purification technology.

Stuart Energy

Main action points fuel supply expectations can be met. Methanex intends to not only deliver fuel, but to do so in the context of a fuel service package including hardware, monitoring and trading. For fuel cells in general, Methanex already supplies many fuel cell demonstrations, both direct methanol fuel cells and for on-board reforming to hydrogen. In fuel cell vehicles, Methanex led the installation of a methanol refuelling station at the California Fuel Cell Partnership in Sacramento, and supplied all the methanol refueling needs for DaimlerChrysler's historic trans-continental Necar-5 journey in the summer of 2002. QuestAir Technologies, Inc. has developed proprietary gas purification technology that is being applied to several large existing and emerging world markets, including industrial hydrogen production and stationary and automotive fuel cells. QuestAir's proprietary fast-cycle pressure swing adsorption ("PSA") technology allows the developers of fuel cell systems to increase the efficiency of their products, and offers a compact, cost effective gas purification solution to QuestAir's industrial customers and developers of hydrogen fueling infrastructure. QuestAir's strategic partners include Shell Hydrogen, Ballard Power Systems and The BOC Group. Products: * Hydrogen purification technology for stationary and automotive PEM fuel cell systems, and for reformer-based hydrogen fueling systems. * Industrial system's for the purification of hydrogen, helium and methane. QuestAir is currently selling its HyQuestor hydrogen purification PSA systems to customers in the industrial gas, oil refining and chemical indu Stuart Energy is a developer and integrator of hydrogen infrastructure products. The companys main product is the Stuart Energy Station (SES), which consists of a hydrogen generation, compression, storage and dispensing/power module. Stuart Energys equipment has been used in all major demonstration projects, since it is able to refuel several vehicles a day. In April 2004, the company announced a smaller version of the SES, supplying enough fuel for just 1-2 vehicles per day. Some of the technology (electrolysers) used in both systems was developed Vandenborre Technologies, which was acquired by Stuart Energy in 2003.

Name, reference

http://www.questaisinc.com, http://www.fuelcellscanada.c a

JAPAN
Company Visions, targets, future key research areas Micro fuel cells are an area of key interest to Japans electronic firms, especially as power sources for high consumption appliances such as notebook PCs. Most portable fuel cell systems built to date have used proton exchange membrane fuel cell (PEMFC) technology. However, direct methanol fuel cell (DMFC) technology is receiving increasing attention, and its share of the market has grown considerably lately. Main action points In March 2003, it was announced that nearly all Japanese companies working in micro fuel cells have come together to create a single set of standards for fuel cells for notebook computers, cell phones and other portable devices. The list includes household names such as Canon, Casio, Fujitsu, Hitachi, Sanyo, Sharp, Sony and Toshiba. Some of these companies have not said that they are involved in fuel cell development, suggesting that there is more activity in this area in Name, reference

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Company AIST, Hitachi, Asahi Chemicals, Raytech, TIFC AIST, Kyoto University, Osaka Science & Technology Center , Fukui University of Technology AIST, Kyushu University, Mitsui Shipbuilding Asahi Kasei

Visions, targets, future key research areas Electrolyte Membrane - Fuel cell for operation at intermediate temperature ranges (150-300oC), Highly durable polymer proton conducting membrane, Development of new membrane materials, Crosslinked teflon polymer electrolyte, Pure hydrogen fuelled PEFC system Deterioration - Identification of causes for deterioration in PEFC system performance due to operation under varying conditions, Identification of causes for deterioration in electrocatalyst and electrolyte, Identification of causes for deterioration in PEFC system , Identification of causes for deterioration in PEFC system due to water transport

Main action points Japan than previously thought.

Name, reference

Electrode Catalysts - Development of new CO resistant electrocatalysts, Study of inorganic (titanium dioxide) supports for electrocatalysts , Metallic glass electrodes Utilising its own ion-exchange membrane technology, Asahi Kasei is developing membranes for use in PEMFCs. In March 2001 a pilot plant for the production of PEMFC membranes was completed at its Kawasaki plant complex, and development is now focusing on reducing costs and raising membrane durability and performance. Prototype membranes are being suppied to auto and battery makers who are working towards commercialisation of PEMFCs in automotive and residential applications. Asahi Kasei (formerly Asahi Chemicals) operates in four segments: chemicals and plastics; housing and construction materials; fibres and textiles; and special products, which range rom drinks to electronics and medical products. Almost all of its sales are in Japan. In 2002 revealed that its most recent prototype could power a Casio notebook computer (the Cassiopeia FIVA) for more than twenty hours, four times longer than a lithium ion battery. Casio has said little more about its fuel cell development plans, and it is not clear if it will stick to its plans to start selling a product in 2004.

Casio

Chubu Electric Power

Casio is developing methanol reformate PEM fuel cells to power notebook computers and PDAs (PDA = Personal Digital Assistant). Casios fuel cell uses a proprietary methanol reformer, in which the catalyst (specially developed in conjunction with Kagakuin University) is deposited on an etched thin silicon wafer, using the companys own semiconductor micro-fabrication techniques. Is working with Mitsubishi Heavy Industries on planar SOFC development, a partnership that started in 1990. Together the two companies plan to offer products in the 50-200kW range based on proprietary MOLB (Mono-Block Layer Built) SOFC technology. Cosmo Oil is one of Japan's largest oil refining and petrol station network companies. Cosmo has shown interest in developing small stationary PEM fuel cell which use reformed petrol or kerosene as a fuel. In February 2001, Ebara Ballard unveiled a prototype 1kW PEMFC stationary co-generator for the Japanese residential market. Fuelled by city gas, the unit is the product of a

Cosmo Oil Co. Ltd

2000 Completed 7,500 hours run time on a prototype 15kW system (MOLB type) at 1000oC current density of 0.35W/cm2 2003 Joint development of a 50kW commercial system at Chubu Power Laboratories 2004 plan to commercialise a system, although it is not clear what size. Daikoku hydrogen station (30m3/hr) Hydrogen is produced by catalytic steam reforming (750~850oC, 0.8MPa) from desulfurised petrol. 2000 Demonstration testing of 250kW system 2003 Development of commercial hydrogen fuelled 900W system 2004 Commercial sales of 1.2kW systems for domestic homes

Partners include Matsushita, Sanyo, Osaka Gas, Toshiba IFC and Ebara Ballard Ebara Ballard is jointly owned by Ballard Generation Systems (BGS)

Ebara Ballard

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Company

Visions, targets, future key research areas collaboration between BGS, Ebara Ballard, Ebara Corp and Tokyo Gas. The system incorporates a Ballard fuel cell stack, and a reformer developed by Tokyo Gas. Ebara Ballard is working on improving efficiency and reliability and cutting costs, with a view to introducing a commercial system in 2004. In 2000, Fuji revealed that it had developed a 1kW PEMFC stack with sixty cells that operated without external humidification. This had been successfully operated for 20,000 hours, running off reformed gas, and is now being evaluated by the Japan Gas Association as part of its residential PEMFC programme. At that time it indicated that future work would concentrate on reducing the cost of the system and working on the reforming apparatus.

Main action points expected price tag of 1,000,000 yen (7,700)

Name, reference and Ebara Corp. of Japan, a world-leading manufacturer and distributor of fluid machinery and environmental engineering systems.

Fuji Electric Co Ltd

2000 1kW PEMFC stack operated for 20,000 hours 2001 developing systems up to 10kW in size 2005 Commercial sales of above system A 100kW Fuji Electric PAFC generates power using food waste collected from hotels and then broken down in a methane fermentation system. Technology is also being developed to gasify other residues and materials (such as wood), which could be used with a fuel cell. Demand for systems has been very low. Neither Fuji nor any of its constituent companies have exhibited any fuel cell vehicle prototypes to date. In July 2001, however, it was reported that Fuji was working with Ford, DaimlerChrysler and other fuel cell developers to develop an experimental FCV based on its Sambar EV electrically powered light commercial vehicle. Hino manufactures diesel trucks, buses and industrial diesel engines. Toyota Motor Corp has a 50.1% stake in the company. In March 2002 Fuel Cells Bulletin reported that Hitachi had developed a DMFC to power a notebook computer, with an operating life of more than 10 hours. In June 2002 Hitachi revealed that small fuel cells for cell phones and notebook computers would be developed at a new group nanotechnology R & D centre. Since then it has demonstrated fuel cells at a Japanese trade fair, and joined a consortium of Japanese companies that aims to create a single set of standards for fuel cells for laptop computers, cell phones and other portable devices. In 2005, plans to launch a fuel cell for laptops. In 2001 it set up a small solar powered hydrogen production, storage and fuelling station at its research centre in Los Angeles. In 2002 it signed an agreement with Plug Power to research homebased hydrogen refuelling stations. These are expected to take the form of a natural gas reforming fuel cell that will power the home and provide hydrogen to the car. Honda signed an agreement with Ballard in December 2002 for the supply of 32 Mark 902 PEMFC modules and associated support services for its FCX fleet. It aims to start building in the region of 300 fuel cell vehicles a year in 2003, for sale in Japan and the USA. The FCX was the first fuel cell car to receive to be certified by the US Environmental Protection Agency and California Air Resources Board as a zero emission vehicle, and has also met applicable US safety and occupant

Hino Motor Co Ltd

Hitachi

with Toyota, who provided the hybrid system and catalytic converter, has developed a fuel cell powered bus, the FCHVBUS1. The prototype has a range of 300 km (186 miles) and can reach a top speed of 80 km/h (50 mph). The propulsion system includes secondary batteries to recover and store energy from braking. Is developing DMFCs to power mobile electronic devices.

Honda Motor Co Ltd

Honda has been researching fuelling options for FCVs.

Honda has developed its own PEMFC technology. However, it is expected that its FCX fleet will all be powered by PEMFC stacks from Ballard Power Systems. Honda is working with Ford, DaimlerChrysler and other automakers to develop fuelling systems, win public acceptance and study possibilities for commercial production.

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Company

Visions, targets, future key research areas

IshikawajimaHarima Heavy Industries IHI

Has installed three 300kW MCFC systems in the last eighteen months, two at Chubu Electric power stations, the first of which has an anticipated lifetime of more than 10,000 hours. The third unit was installed at a Toyota Motors car plant, and is integrated with a 50kW micro-gas turbine made by Toyota Turbine & Systems.

Main action points protection standards. In line with this, a number were crash-tested in Japan in 2002. 1997 Installation of a 1000kW demonstration system at Chubu Powers Kawagoe plant Total of 4,200 hours operation 2002 Installation of 300kW compact system at Kawagoe plant (part of NEDO project) 2002 Installation of first 300kW commercial unit in Chubu Powers Shin-Nagoya Plant power from gasified waste 2004 Planned installation of pressurised (1.2MPa) 750kW high performance system for final trials 2005 A further system is planned for the Aichi International Exposition. This will feature an integrated gas turbine and will be fuelled by digester gas produced from waste collected within the exhibition area.

Name, reference

Japan Air Gases Japan Steel Works JSW

Kawasaki hydrogen station (50m3/hr) Hydrogen is produced by catalytic steam reforming (250~300oC, 3MPa) from methanol. JSW is developing and marketing hydrogen-absorbing alloys with large storage capacities, as well as Metal Hydride tanks for storing hydrogen for fuel cell systems.

Japan Steel Works (JSW) makes steel castings and forgings, steel plates, pressure vessels, and steel structures, as well as industrial and plastic processing machinery. Its customers range from shipbuilders and manufacturers to the chemical, petrochemicals, and utilities industries. 2001 a 10kW internal reforming SOFC was operated successfully for 750 hours at an efficiency of 41.5% (Higher Heat Value) 2004 Planned integration of this system into J-Powers EAGLE project a pilot-scale high efficiency plant using combined cycle (fuel cell, gas Next steps include simplifying the modular construction and upgrading performance before developing a 100kW system suitable for commercial operation. Changes are reported to include moving from a cylindrical to a rectangular stack structure. and steam turbine) power generation 2001 Development of low-temperature (800oC) fuel cell system 2003 reported the successful operation of a 1kW intermediate temperature SOFC module, which attained a power efficiency of 40 percent. The unit consisted of 41 cells with a diameter of 12cm from which a power density of 1.8W/cm2 was attained. Other research partners included Oita University, Japan Fine Ceramics Center and the National Institute of Advanced Industrial Science & Technology. 2005 Planned commercialisation of this system

J-Power

Has been developing tubular SOFC technology in partnership with Mitsubishi Heavy Industries since 1989.

Kansai Electric Power

Plan to develop with Mitsubishi Materials a planar SOFC system with an output in the tens of kilowatts by 2007.

Marubeni

Made an initial $10 million investment in FuelCell Energy and has exclusive rights to offer DFC technology to customers in Japan, and non-exclusive rights in China, other South-east Asian

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Company

Matsushita Electric

Visions, targets, future key research areas countries and Australia. Marubeni the marketing, project management and distribution services. As this alliance grows, Marubeni will invest further in FuelCell Energy and the two companies will enter into a joint manufacturing and development venture. Matsushita has developed a compact residential PEMFC cogeneration system, and began testing a 1.5kW prototype in January 2000. Two 1.3kW co-generation prototypes fuelled by natural gas are now being tested by the Japan Gas Association in its residential PEMFC programme. At present Matsushitas systems incorporate fuel cell stacks made by Ballard.

Main action points

Name, reference

Development of a 1.5kW system for domestic use 2004 Commercial sales of above system. Running off reformed city gas, it will sell for 1 to 1.2 million yen (7,700 to 9,200). It will reportedly save about 50,000 yen (380) in annual running costs. The central unit measures 86 by 85 by 32 cm. 2005 Aims to commercialise a home-use fuel cell cogeneration system featuring industry-leading durability, 35% power generating efficiency, and quiet operation after field-testing at its Osaka research facility

Matsushita Electric, Mitsubishi Electric, Asahi Glass, Toshiba International Fuel Cells, Mazda Motor Corporation

MEA - Increasing durability of PEFC systems, MEA for operation under low humidification, MEA development, Development of durable high performance cell (MEA)

Mazda began looking at fuel cells in 1991 and has produced a number of fuel cell vehicle prototypes.

Mitsubishi Electric

Mitsubishi Electric, Daido Steel Co., R&D Institute for Metals and Composites for Future Industries

Mitsubishi Electric is developing the Polymer Electrolyte Fuel Cell (PEMFC), a potential energy source for automobiles, on consignment from the New Energy and Industrial Technology Development Organisation (NEDO). Mitsubishi Electric is involved in manufacturing fuel cells for small stationary applications. Mitsubishi Electric is taking part in the Japan Gas Association (JGA) demonstration project, a programme which aims to commercialise small stationary fuel cells in Japan. Seperator - Moulded carbon separator, Metallic glass separator, Metallic glass separator and hydrogen separation membrane

In 1997 it unveiled the Demio FC-EV prototype, a two-door model using its own fuel cell system. In 1998 Mazda joined the fuel cell partnership established by Ford, DaimlerChrysler and Ballard, and since then its fuel cell vehicles have incorporated systems built by the alliance. The Premacy FC-EV was unveiled in February 2001, and runs off reformed methanol. It is currently being tested on public roads in Japan in conjunction with DaimlerChrysler Japan and Nippon Mitsubishi Oil (who are providing the fuel infrastructure). The company has succeeded in developing a horizontal stack to be installed below a vehicle's floor with output of 5.8kW and thickness of 12 cm. Varios other work has been done for Mitsubishi Motors fuel cell development programme. In 2003 a 1kW PEM fuel cell unit was demonstrated and the company aims to develop a 10kW system by 2005.

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Company Mitsubishi Heavy Industries MHI

Mitsubishi Motors Corporation

Mitsui Shipbuilding

NEC

Nippon Oil Corporation ENEOS

Visions, targets, future key research areas MHI has not yet made clear whether or not it plans to manufacture a residential fuel cell system. It is, however, working on a number of components that could be incorporated in such a system. These include a 1kW class natural gas steam reforming fuel processor for generating hydrogen, and a 5kW PEM fuel cell, which is currently being developed for automotive and emergency power applications. Plans to develop fuel cells for vehicles in conjunction with Daimler Chrysler AG. The joint venture will combine the advanced fuel cell technologies of Mitsubishi Heavy Industries with the automotive technologies of Mitsubishi Motors and Daimler. Nippon Mitsubishi Oil, which is working to develop a liquid fuel that can be used in fuel cells instead of gasoline, is also involved. Mitsui makes use of various forms of energy, such as urban gas, propane and kerosene, to provide a more efficient supply of electricity and heat (hot water) to families and businesses. The company has been promoting PEMFC for this purpose. Mitsui is cooperating with US-based H Power and US- and Italy-based Nuvera Fuel Cells, in developing not just the Japanese market but also systems and products for it from portable devices to domestic appliances and applications for businesses. Has developed miniature direct methanol fuel cells using electrodes made from a type of carbon nanotube called a nanohorn. This system supplied around 12W of power, and could be commercially available by 2004. The company also has plans to demonstrate a laptop computer with a built in fuel cell. In another recent demonstration, NEC showed a 3W DMFC powering a function rich cell phone. This power source was almost the same size as the cell phone itself. Nippon Mitsubishi is involved in the development of several aspects of fuel cell technology including the development of fuels, infrastructure and systems.

Main action points 2005 Commercialisation of a 1kW system

Name, reference

Daimler Chrysler AG has a controlling stake in the company

The company is taking part in the Japan Gas Association (JGA) demonstration project, a programme which aims to commercialise small stationary fuel cells in Japan.

Partners include H Power, Nuvera Fuel Cells

2004 Plans to mass produce nanohorn

Nippon Steel Corporation

Nippon Telegraph & Telephone

By-product Hydrogen Nippon Steel Corporation (NSC), in partnership with the Japan Research and Development Center for Metals (JRCM) and NKK, has established a pilot process in 2002 for generating liquefied hydrogen as a by-product from its coke ovens. Purified hydrogen gas will be liquefied and stored cryogenically for transport to dispensing stations. Developing partial oxidation SOFC technology and plans to start testing a 200kW system in 2004, in readiness for practical use from 2007. Its prime motive is to reduce its carbon dioxide

2002 Demonstration of a 5kW system powered by gasoline (naptha) 2003 Demonstration testing of 1kW LPG fuelled system in collaboration with Nippon Petroleum Gas 2004 Limited sales of 1kW system. This would initially be priced at 1 million yen. 2005 Commercialisation target price tag of 500,000 yen. It is hoped that in time the price tag would be cut to around 200,000 yen (1,500). Asahi hydrogen station (50m3/hr) Hydrogen is produced by catalytic steam reforming (800oC, 0.8MPa) from naptha. Hot cvoke oven gases will initially be reacted with steam to reform methane, before separation of hydrogen using pressure swing absorption (PSA) and membrane technologies.

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Company NTT Nissan Motor Co Ltd Osaka Gas Co Ltd

Visions, targets, future key research areas emissions, which are high as NTT group companies now consume 0.75 percent of electricity in Japan. According to Japanese newspaper reports Nissan and Renault will spend $714 million on the project and aim to market a commercial fuel cell vehiclein 2003. Osaka Gas has developed a compact reformer for a residential PEMFC that processes propane and natural gas. It can operate maintenance free for 90,000 hours, and produces hydrogen with a CO concentration of less than 1ppm.

Main action points

Name, reference

Sanyo Electric

Shikoku Research Institute SRI Showa Shell Sekiyu & Iwatani Industries Sony

In 1998 Sanyo appeared to be leading the world in the development of residential fuel cell systems. It then aimed to start marketing a natural gas 1kW PEMFC system in 2000 and was hoping to generate as much as 50 billion yen in sales in 2001. In the event, however, the system was never launched. Sanyo research and develop residential fuel cell technology jointly with Osaka Gas, who will supply the reforming technology. Sanyo has supplied two 0.8kW residential co-generation systems for testing and demonstration in the Japan Gas Associations residential programme. One is situated in Tokyo and one in Nagoya. Both are fuelled by natural gas. Sanyo Electric is the most prolific publisher in portable applications. Shikoku hydrogen station (30m3/hr) Hydrogen is produced by the electrolysis of water in a PEM cell supplied by Mitsubishi Heavy Industries. Hydrogen will be stored as a solid hydride (TiZr) and as a gas. Ariake hydrogen station (10,000L) Hydrogen is produced from coke oven gas (Nippon Steel).

Switched fuel cell suppliers from Ballard to UTC Fuel Cells, who are supplying PEMFC power modules for Nissans X-Trail vehicle, which is fuelled by compressed hydrogen. In 1999, Osaka Gas established a new department dedicated to the development of micro-turbines and residential co-generation PEM fuel cells, with a view to commercialising them in 2005. In March 2001 Osaka Gas decided to accelerate its plans for commercialisation by forging a relationship with US company H Power. By the terms of the agreement H Power will develop a 500W and 1kW co-generation fuel cell system for the Japanese residential market incorporating Osaka Gas reforming technology. In July 2001 Osaka Gas said its target price for the system was around 600,000 yen (4,600). In August 2001 Osaka Gas announced that it would research and develop a residential fuel cell system with Sanyo Electric Co. Osaka hydrogen station (30m3/hr) Generates purified hydrogen by steam reforming of methane. Hydrogen is then stored as both a metal hydride (LaNi5H6) and also as a compressed gas (35MPa). 1998 First sales of a portable fuel cell power supply (hydrogen fuelled)

2003 Dedicated design & production team for FCs formed in R&D HQ 2004 Limited sales of 1kW systems 2005 Full commercial sales of 1kW systems. Hope to sell the product for about 600,000 yen (4,600) initially, before cutting the cost to 400,000 yen (3,100). The system, it was reported, could cut utility bills by twenty percent.

Tokyo Gas

Is developing DMFC technology, with a view to using miniature fuel cells in electronics devices in the future. Sonys Frontier Science Laboratories division has employed fullerenes to develop a credit-card-sized solid polymer fuel cell that can generate 1.2 volts of electricity without water vapour. Tokyo Gas has been supporting the development of domestic technology, starting a joint project with Fuji Electric Co., Ltd. to develop 50 kW and 100 kW units in 1986. Tokyo Gas is playing

In August 2001 revealed that its scientists had developed a technology to scale down fuel cells, by using carbon-cage molecules, called fullerenes, as a conductor in the heart of fuel cells.

In July 2002, the company announced that they have developed a fuel cell (50 - 200kW) which converts food waste into electrical power and electricity.

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Company

Toray, JPower Toshiba

Visions, targets, future key research areas a main part in the national project to develop 1,000 kW PAFC now in operation at the Tokyo Gas Tamachi test-site. The company is challenging to establish the method for evaluating the life of cells, in cooperation with public research institutions, utilities and domestic PAFC manufacturers. R&D staff, numbering more than 450, is engaged in over 400 themes covering a wide range of areas, including gas production, transmission, distribution, utilization and fuel cells. High performance Direct Methanol Fuel Cell (DMFC), DME fuelled PEFC system Has announced that it will launch its first commercial product in 2004, which is likely to take the form of a DMFC power source for notebook computers.

Main action points Senju hydrogen station (50m3/hr) Hydrogen is produced by catalytic steam reforming (750oC, 0.8MPa) from LPG.

Name, reference

Toshiba International Fuel Cells TIFC

TIFC will concentrate on the development and commercialisation of PEMFC systems under 10kW. This includes a 1kW PEMFC residential co-generator, a prototype of which has already been displayed, running off natural gas.

In March 2003 it unveiled a prototype system for portable computers. With a peak output of 20W, the unit can provide power for around five hours with a single replaceable 50cc cartridge of methanol. Almost every component of the system has been miniaturised, from the cells (made from a new more compact material) to the DC-DC converter. The prototype also incorporates technology that dilutes the concentrated methanol in the cartridge with the water produced as a byproduct of the power generation process. This technology allows methanol to be stored at a much higher concentration, and achieves a fuel tank less than 1/10 the size of that required for storing the same volume of methanol in a low concentration. 2000 1kW and 30kW prototype systems developed. The 1kW prototype is developed tigether with Cosmo Petroleum. Cosmo has developed a 1kW-class butane reformer, and is now working on the development of a kerosene reformer. 2002 Developed 5kW prototype for office buildings 2003 Production begun at Niigata based Home Technologies plant 2005 Market entry point for 1kW & 5kW systems. The 1kW system will initially cost around 400,000 to 500,000 yen (3,100 to 3,800), although it is hoped that the price will eventually be reduced to 150,000 yen (1,150).

Toshiba has led the world in the commercialisation of fuel cells with its PAFC stationary generators, which it manufactures in conjunction with US company International Fuel Cells (IFC) through ONSI, a joint venture between the two companies. In March 2001 Toshiba established a new joint venture with IFC, Toshiba International Fuel Cells Company (TIFC).

Toyota Motors

Has started a new collaborative research scheme with hydrogen storage technologies listed as one of three priority areas. The FCHV-5 is based on Toyotas Kluger V mid-sized SUV and is fuelled by hydrogen stored in a high pressure tank. Power comes from a 90kW fuel cell stack developed by Toyota.

A 1kW PEM co-generator for residential applications. A

Under this scheme, limited to Japanese universities and public research institutes, 150 million yen (1,15 million euro) will be divided between 20 research projects starting from FY2002. Since December 1999 Toyota has had an agreement with General Motors to exchange fuel cell technology, although it is not clear how actively the two companies communicate. In January 2001 the two companies also teamed up with Exxon Mobil Corp to develop a clean hydrocarbon fuel as a source of energy in fuel cell vehicles. In January 2003 Toyota unveiled a concept FCV, the FINE-S (Fuel cell INnnovative Emotion-Sport). With a low centre of gravity (achieved by mounting the fuel cell system below the floor) and independent four-wheel control, it is designed to offer sports performance as well as carry four people. Toyota has a target date of 2008 for the commercialisation of such a

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Company

Yuasa

Visions, targets, future key research areas prototype is currently being tested by the Japan Gas Association as part of its residential fuel cell programme. It is noted to be the most compact of all the systems being tested. Yuasa manufactures storage batteries and related products, including batteries for cars, cell phones and laptop computers. It is now turning its attention to DMFC system development.

Main action points system.

Name, reference

In early 2002 it unveiled 100W and 300W DMFC units and reported that it would shortly install a pilot production line at its Osaka factory in preparation for demonstrations leading to commercialisation in 2004. In November 2002, by which time one of its units had provided power throughout a trans-Pacific yacht voyage, it announced that it would start selling a mobile power unit, YFC-100 in 2003. The output of this unit is 100W, dimensions 350mm x 380mm x 420mm and weight 25 kg. It is fuelled by a low concentration methanol solution. A two litre container within the unit can produce electricity for 8 hours. Yuasa plans to sell 100 units in the first year for around one million yen per unit and 500 units in the second year, by which time price is expected to drop to 200,000 yen owing to the start of mass production.

AUSTRALIA
Company Australian Coal Association Visions, targets, future key research areas COAL21 is a program aimed at fully realising the potential of advanced technologies to reduce or eliminate greenhouse gas emissions associated with the use of coal, while at the same time maintaining Australia's competitive advantage of low cost electricity from coal. Main action points The key objectives of COAL21 include to: create a National Action Plan to scope, develop, demonstrate and implement near-zero emissions coal-based electricity generation. The National Action Plan is scheduled to be implemented in 2004. Facilitate the demonstration, commercialisation and early uptake of technologies identified in the Plan. Promote relevant Australian RD&D so that it can both build upon and make a unique contribution to international RD&D in the area. CFCL is focused on SOFCs with the following features: Maximum efficiency of electricity generation; Effective operation on existing hydrocarbon fuels such as methane, natural gas and LPG (propane and butane); Minimum exhaust emissions; Near silent operation Name, reference

Ceramic Fuel Cells Limited

Established in 1992, Ceramic Fuel Cells Limited is a developer of planar (flat plate) Solid Oxide Fuel Cell technology for clean high efficiency power generation applications. It is now focussing on 40 kW SOFC generators for distributed power generation.

Hydro Tasmania

Has recently established a partnership with the University of Tasmania to undertake joint research into hydrogen production and use. Hydro Tasmania notes that Australia has an extensive electrical and gas infrastructure system. Distributed hydrogen production can take advantage of these existing systems. Large,

The partnership intends to focus specifically on stationary renewable energy applications in remote areas and explore the potential application of hydrogen in vehicles.

CFCL currently employs over 100 staff. It is backed by CSIRO, the SECV, Western Power Corporation, the Electricity Trust of South Australia, Pacific Power, the Energy R&D Corporation, Strategic Industry Research Foundation, BHP, Electricity Corporation of New Zealand and the South East Queensland Electricity Board. Hydro Tasmania contributes over 60 percent of Australias renewable energy.

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Company

Visions, targets, future key research areas complex and expensive hydrogen infrastructure is, therefore, not needed in the short term for Australia to start to implement hydrogen technologies.

Main action points

Name, reference

SOUTH KOREA
Company Hyundai Visions, targets, future key research areas Hyundai formed a fuel cell task force at its research and development centre in Yongin, South Korea, in 2000. In October 2000 it unveiled its first prototype fuel cell vehicle (FCV), the Sante Fe Sports Utility Vehicle, only six months after it had signed an agreement with International Fuel Cells to supply the fuel cell power plant, a 75kW ambient pressure PEMFC. Fuelled by compressed hydrogen stored at up to 5,000psi in a Quantum Technologies hydrogen storage unit, the vehicle can go 400km on a single tank, a world-best for FCVs. The prototype was also rated above other FCVs in October 2001 at the Michelin Challenge Bibendum, a rolling showcase for alternative energy vehicles. Main action points Hyundai has fuel cell related agreements with International Fuel Cells, and Quantum Technologies. Name, reference DaimlerChrysler has a 9 per cent stake in Hyundai Motors.

GERMANY
Company Aral AG Visions, targets, future key research areas Main action points Aral has been researching hydrogen techniques since 20 years. In the mid 80s, Aral built the worldwide first hydrogen fuelling station in Berlin. The station used gaseous hydrogen. The project was in cooperation with German Ministry for Research and some car manufacturing companies. From 1997 to 1999 Aral built the first robot-steered hydrogen fuelling station (liquid hydrogen) at Munich airport as part of the ARGEMUC project. In May 1998 Aral and 7 companies founded the VES project. The main goal was to recognize the most promising alternative fuels for the future. VES decided that hydrogen would be the most promising. Aral is one of the main players in the CEP (Clean Energy Partnership) / Berlin. Goals are to prove reliability of hydrogen fuel in everyday use and to strengthen costumer acceptance. BASF is working on nanocubes. These nanocubes can take up hydrogen like a sponge. Also, by placing them in conventional gas containers it is possible to store more gas without changing the volume of the container. At room temperature, this translates into about 15 percent more transport capacity for hydrogen and about 95 percent more for methane. Possible applications for nanocubes include: Lightweight gas stores, e.g., for mobile low-pressure combustion motors (40 to 50 bar instead of currently 200 to 350 bar) Name, reference Pressemitteilungen, siehe http://www.aral.de/presse

BASF

The so called nanocubes, which are being developed by BASF, could play a crucial role in storing hydrogen thanks to their special properties: Hydrogen can be taken up in the nanocubes' pores like water in a sponge. Such simple and cost-effective storage media for hydrogen are much sought after in the transition to a new energy age.

Pressemitteilungen, siehe http://www.basf.de

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Company

Visions, targets, future key research areas

BASF

BMW AG

BMW is now entering the market with a first small series production of an hydrogen vehicle, the 745h (internal combustion engines). This 7-series cars belong to the luxury class. The BMW group hopes that these customers are ready for the new technology and so the Group is planning to enter the market in a top-down strategy. BMW plans an annual sales rate for H2-ICE vehicles of around 25% of total annual sales if the infrastructure for H2 develops accordingly. BMW engineers are trying to achieve a total efficiency of 50% with the hybrid concept.

Main action points for vehicles, boats, machines, work and sports equipment etc ; Easyto-operate, recyclable hydrogen stores for mobile and stationary proton exchange membrane (PEM) fuel cells from 10 W to 1 kW (energy sources for laptops, mobile phones, CD players, PDAs, etc.). ; More efficient, longer lasting and/or significantly smaller filter cartridges to remove pollutants/odors from gas streams. New types of catalysts. BASF has developed a new high performance catalyst. It is used in DaimlerChyslers NECAR 5. It converts fuel methanol and water into a hydrogen-rich gas which then continues to react directly in the fuel cell to generate electricity. As an automotive company, the BMW Groups main goal is to develop efficient and environmentally compatible hydrogen vehicles to strengthen their market position for the future. BMWs motor strategy follows a hybrid concept. The internal combustion engines in the new H2-cars can burn gasoline and hydrogen. This is seen as necessary due to the missing hydrogen infrastructure. But BMW also unveiled a mini concept (ICE) at the 2001 Frankfurt Motor Show running soley on hydrogen. BMW is involved in many H2-projects, such as the public hydrogen filling station at Munich airport or the Berlin hydrogen project in which 16 hydrogen cars of different manufacturers will be tested.

Name, reference

Christoph Huss (Representative of the board for traffic and environment), Holger Braess, Dr. Christian Cozzarini, Albrecht Jungk, Dr. Juliane Wolf, BMW Group, Mnchen (Internet download from URL: http://www.bmw.de); Dr. K. Scherer, representative of the board for traffic and environment, BMW AG, Mnchen (Conference: Deutscher Wasserstofftag 2003, 01.10.2003, Mnchen. Bewhrtes mit Zukunftspotential); www.hycar.de/cars/mini.htm .

BMW AG

BMW is developing a SOFC-Fuel Cell for the onboard power supply network. The FC shows a better efficiency rate than conventionel led-Batteries and it should replace them in all BMW cars in the future.

BMW has built several H2-cars and has been introducing SOFCs as Auxilary Power Units (APU) to replace conventionel batteries. Up to now the SOFCs are used in the 745h and the 750hL. Since 2001, Buderus Heiztechnik GmbH and International Fuel Cells co-operate in the development and marketing of fuel cells for small and medium output. IFC develops a system with 3-5 kWel and 8-9 kWth plus an additional burner for peak loads. Buderus will market it in Europe. Buderus takes part in the competence network for hydrogen related activities in state of Hessen. Celanese is a chemicals company, focusing mainly on basic chemicals, acetate products, technical polymers, and food ingredients. With its competence in materials, chemistry and catalysts, Celanese is a leading partner in the fuel cell industry. The company has developed the first membrane electrode assemblies (MEAs) for high temperature PEM fuel cells that operate at the temperature of up to 200 C. In 2002, Celanese started up the automatic production of high temperature MEAs. Pressemitteilung, 28.03.2001

Buderus

Celanese

Celanese will improve ist production process and further develop the MEAs. The costs still need to be considerably lowered and reliability increased before the technology can match that of conventional generation of electricity. Celanese is convinced that hydrogen will edge out conventional gasoline from the transport sector, due to the several advantages. The combination of hydrogen economy and fuel cell technology will allow a flowing transition to a new hydrogen society.

Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); http://www.celanese.com/de /fuel_cell_celanese.pdf; http://www.celanese.com/de

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas

Main action points

Daimler Chrysler AG

DC is planning to be able to start a series production of FCvehicles in 2010 and reach full market penetration by 2020. DC believes, that by 2010 500.000 fuel cell powered vehicles will be on the road across the world.A main focus will be on FC-bus development for local traffic, because limited range and minimal infrastructure are not so important in this business. In the European Fuel Cell Bus Project, 30 Cities in Europe received DC-FC-Busses of the type citaro to test the vehicles in daily use. The development steps in propulsion will be: 1. Continously improved conventional vehicles, 2. Hybrid vehicles, 3. Fuel Cell Vehicles. Refering to the development in fuel techniques, DC has the following vision: 1. Clean conventional fuel, 2. Synthetic fuel GTL, 3. Synthetic fuel BTL, 4. Hydrogen. As the efficiency of the FC-engines increased 50% in the last 10 years, DC is looking forward to even better results within the next 10 years.

DaimlerChrysler (DC) is at the forefront of fuel cell developments in the automotive business and is continuing to invest. The general goal is to develop fuel cell vehicles that are comparable to todays combustion engines in regard to efficiency, working range and other facts. Daimler Chrysler has been building hydrogen concept cars since 1994. DCs fuel cell project comprises all vehicle segments from passenger car (Necar series and F-cell A-class), to buses (Nebus and the Citaro-bus) and duty vehicles (Mercedes-Benz Sprinter van).

E.ON Energie

EnBW

EWE

The company will take part in SulzerHexis' field trial and will test 55 residential fuel cell systems in 2003-2005. E.ON has an idea of a so called virtual powerplant, a network of private households with fuel cells. The combination of a lot of FCs should be able to supply a big network even at peaks sufficiently with electricity. EnBW will work together with the Swiss firm Sulzer Hexis to develop small fuel cell cogen (KWK) units up to the point of market readiness. These units will supply heat and electricity to buildings. Also, in the field of fuel cells for supplying heat and electricity, 55 pilot systems will be installed until the end of 2004 and operated at various (mostly private) customer locations in order to expand know-how in this area. The fuel cell heating units will supply 1 kW electricity and 24,5 kW heat. EnBW will offer these systems through contracting agreements in which the customer will purchase heat at costs comparable with those for conventional gas-fired boilers. EWE will operate 155 SOFC systems in the demonstration project with Sulzer Hexis.

E.ON Energie is one of the Germany's leading utility companies. E.ON Energie initiated ist fuel cell research program at the end of the 1980s. /Since that time E.ON Energie has gathered a vast store of empirical data on different technologies in a range of applicarion scenarios. Together with Vaillant, the company runs various field tests on residential fuel cells in Germany. EnBW is the largest utility company in Germany's south-western state of Baden-Wrttemberg. The company was involved in stationary projects as a partner of Electricite de France and Siemens Westinghouse and other consortium partners to built the largest fuel cell power station in Europe at the location of EnBW in Marbach/Neckar. Also the development of a low temperature fuel cells, type PEM was being actively pursued by EnBW. As a consequence, EnBW was involved in both of the leading projects of the Federal Department of Commerce, EDISON and NEGEV.

Name, reference /index/about_index/innovhome/innov-fuelcell.htm; "Die Brennstoffzelle Innovation fr die Nachhaltigkeit" Dr. T. Weber, vice member of board of management DC AG, responsible for Research & Development (Conference: Fuel Cell 2003, 29.09.2003, Stuttgart. Wo steht die Brennstoffzelle heute, wo 2013 ?); Dr. E. Wchner, Senior Manager Entwicklung Wasserstoffspeichersystem/ Infrastruktur, DC AG, Sindelfingen (Conference: Deutscher Wasserstofftag 2003, 01.10.2003, Mnchen. Hchst effizienter Antrieb); Dr. A. Truckenbrodt, DC AG, Sindelfingen (Conference: Fuel Cell 2003, 29.09.2003, Stuttgart. DC FC-Vehicles 1st vehicles in customers hands) Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003) Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); Develpoment of the largest feul cell power station in Europe: http://www.enbw.com/media /pdf/en/investors/bonds/circ ular_bearer_bonds_2001.pd f Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18

EWE is a provider of energy, environment, telecommunications and information technology and a supplier of electricity and natural gas. The company is involved in various fuel cell field tests and projects with Vaillant's PEM units.

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Annex II: Overview of privately funded RTD&D

Company Linde AG (Gas Division)

Visions, targets, future key research areas It is currently working closely with the European Commission to define a viable roadmap for hydrogen and investigate the best, most cost-effective ways of establishing a hydrogen infrastructure. Linde Gas Xiamen Ltd., the Chinese Group company of the Gas Division of Linde AG, Wiesbaden, has signed a long-term contract to supply chemicals company Xiang Lu Petrochemicals with oxygen and nitrogen.

Main action points For mobile applications such as different bus and passenger car projects Linde has been providing liquid hydrogen tanks and systems. Linde has been the cryogenic partner for several generations of BMW research vehicles as well as for the latest fuel cell car "Necar 4" from DaimlerChrysler. For a stationary fuel cell cogeneration plant at Hamburg, Germany, Linde took care of the hydrogen infrastructure and necessary approvals for the LH2storage. This FC-unit was installed amidst a public residential district requiring the application of high safety standards. Together with ist partners, MAN, Siemens and Ludwig Blkow Systems Engineering, the company has built various hydrogen fuel tanks and fuelling equipment. Linde has been actively involved in the hydrogen business for over 90 years and in hydrogen for over a decade. It has committed extensive resources and funds to various hydrogen projects. In 2003, Linde Gas Division presented the first hydrogen filling station using 700 bar technology. The new techn

Name, reference June 2003); Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); Dr. J. Wolf, Executive Director Hydrogen Solutions, Linde Gas, Mnchen (Conference: Deutscher Wasserstofftag 2003, 01.10.2003, Mnchen. Die neuen Entwicklungen der Technik); Dr. W. Reizle, Chairman of the board of Linde AG, Wiesbaden (Conference: Deutscher Wasserstofftag 2003, 01.10.2003, Mnchen. Eine Vision fr die Wirtschaft); http://www.linde-gas.com

Linde AG (Gas Division)

MTU CFC Solutions

Developing of scalable fuel cell systems on a modular basis. Series production of the first plants is due to begin as early as 2005/2006.

MTU CFC Solutions Opel AG General Motors long term vision for reducing fuel consumption and emissions is to replace ICE vehicles through fuel cell vehicles powered by pure hydrogen. GM aims to be the first OEM to profitably sell 1 Million FCVs with mass production starting around 2010. The transition strategy includes the following steps: 1. further improvement of gasoline and diesel ICE, 2. Hybrid vehicles, 3. Fuel Cell Vehicles. GM also produces fuel cells for stationary power generation and follows a strategy to enter different markets as systems become competitive (following the cost curve). Concerning GMs fuel strategy, methanol wont be an interim option to power fuel cells. Instead GM counts on reforming clean gasoline (desulfurized crude oil

Linde participated in the joint venture of the "Solar-WasserstoffBayern GmbH" in Germany, where the essential components for a solar hydrogen system were investigated. For the European "Ariane" rocket Linde built the hydrogen infrastructure for the test facilities of the "Vulcan" engine. MTU CFC Solutions, a joint venture company of MTU Friedrichshafen GmbH (a DaimlerChrysler company) and RWE Fuel Cells GmbH (an affiliate of RWE AG), is one of the leading manufacturers of large diesel engines and complete propulsion systems. Since 1990 the company has been involved in the development and manufacture for molten carbonate fuel cells ("HotModule", 250 kW). Up to now 14 demonstration plants was installed. Since the end of 2000, MTU has been involved in PEM technology in order to develop fuel cell drive systems for off highway applications. GM and Opel (wholly owned European and Latin American arm of GM) established in 1997 the Fuel Cell Development Center - GAPC. Today, under the name "GM Fuel Cell Activities". Over US$ 1bn have been spent on development activities on FCV so far. GM/ Opel is undertaking projects in various H2 related fields in cooperation with other OEMs or industry partners (hydrogen filling/ BMW, gasoline reformer technology/ Toyota etc.) In 2000 GM and Opel presented a hydrogen powered fuel cell automobile based on the production model Opel Zafira (HydroGen1). HydroGen3, improvement of ist predecessor, the HydroGen1, is powered by an electronic motor with a maximum output of 60 kW. /enabling the fuel cell powered Zefira to accelerate from 0 to 100 km/h in 16 seconds and to reach a top

Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); http://www.mtuonline.com/cfc/de/hotm/hot m.htm

Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); Rick Wagoner, GM chairman at North American International Auto Show in January 2003; Tim Vail, head of General Motors stationary fuel cell project (Bloomberg News, 04 December 2002)

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas based fuel) on board the vehicles.

Proton Motor

Ruhrgas RWE Cells Fuel RWE Fuel Cells is a subsidiary of RWE, one of the largest energy utility companies in Europe. The company is researching, developing and implementing stationary and residential fuel cell products (PAFC, PEMFC, MCFC), systems and services. Number of people working on fuel cells is 35. Siemens belongs to top 10 publishing institutions of SOFC. The first standard product that Siemens PG intends to market will be the "CHP 250" system (combined heat and power, that is cogeneration, with a capacity of 250 kilowatts); at a later date the range of products will be extended to include fuel cell systems with downstream microturbine with an overall capacity of more than 500 kilowatts.

Main action points speed of 150 km/h. General Motors signed an agreement with the parcel delivery company FedEX which will use 3 HydroGen3 vehicles in a test programme in Japan. Proton Motor is a European enterprise specialising in PEM fuel cell technology. The company shows interest in the development and production of fuel cells and stacks but also their elements, system components, integration and control of the systems. This has led to the production of a fuel cell-powered bus prototype. The company's latest development project is a fuel cell powered fork lift truck, jointly developed with Still and Linde. Ruhrgas is partner in a field test project of some Fuel Cell Heating Systems, built by Vaillant. In July 2003, the company has bought a 25.1% stake in MTU CFC Solutions, a subsidiary of MTU Friedrichshafen and a developer of MCFC stationary units.

Name, reference

Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003)

Partners include Nuvera, MTU/DaimlerChrysler, Siemens Westinghouse, Sulzer Hexis Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); http://www.pg.siemens.com/ en/press/pg200202014/inde x.cfm: "Siemens to build Europe's first close-to-series fuel-cell power plantStadtwerke Hannover and E.ON order SOFC plant for around EUR5 million"( Hanover, February 26, 2002 ). "Hellenic Navy orders fourth submarine with Siemens fuel cell technology"( Erlangen, Jan 17, 2003) Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); Small Fuel Cell, Actual Development, homepage: http://www.smartfuelcell.de/ en/produkte/entwicklung.ht ml; http://www.smartfuelcell.de/ en/produkte/prototypen/inde x.html. Launch of

Siemens

Siemens is a European-based electronics and industrial company with operations worldwide in the automation and control, information and communications, lighting, medical, power and transportation sectors. 1962 fuel cell programme, focused on AFC; In 1984, the company has successfully implemented a 100kW fuel cell into a German Navy submarine; Siemens acquired the fossil power plant business and tubular SOFC technology from Westinghouse which concluded to the foundation of Siemens Westinghouse, now one of the leading stationary fuel cell manufacturers. Siemens Westinghouse leads the way in SOFC/GT hybrid development and is the only company to have developed such a system. Together with partners, such as Howaldswerke Deutsche Werft (HDW), Linde and MAN, the company is involved in various transportation (bus and submarine) projects. Siemens Industrial Solutions and Services (I&S) Group is now to equip a fourth Class 214 submarine with modern propulsion, control and monitoring technology for Greece. The project

Smart Fuel Cell

The company is just now closing development contracts with worldwide acting manufacturers The most important development targets are: miniaturization, enhancement of the system features, establishing new application fields.

Smart Fuel Cell develops solid fuel cell systems the size of conventional storage batteries. The power supplies of Smart Fuel Cell cover a range from a few watts up to several kilowatts. The company focuses on Direct Methanol Fuel Cells (DMFC) and is already selling portable power systems. The company is at present concentrating on the development of its own products as well as the development of mass-products on behalf of ist clients. The SFC AG focuses on special applications for its prototype-development. One focus is the use of the Smart Fuel Cell for mobile office systems, professional video cameras and traffic systems. In these application fields the Smart Fuel Cell can already be implemented with great benefit for the user.

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas

Main action points

Sulzer Hexis

By 2004/2005 the next generation of FC-Heating system should be available. The distribution will be realized by partner companies, e.g. EnBW, E.On, EWE,...). Advantages of the new system will be reduced weight and size as well as increased efficiency. Main goal for Sulzer-Hexis AG is to gain a reasonable position in the European market for Heat and hot water supply.

Sd-Chemie

Thyssengas

Thyssengas is part of Sulzer Hexis' field demonstration project in 2001-2005 and will install and operate 42 Sulzer Hexis units. Thyssengas customers are showing keen interest for new, market-tested natural gas applications. Fuel cell technology is one of the company's focal points in this context. Thyssengas is currently cooperating with manufacturer Sulzer Hexis and select customers to conduct a large-scale field trial for single family home units. Also on the technical and commercial test bench at Thyssengas are technical alternatives including new gas engines, Stirling motors and micro gas turbines. So-called "gas sockets" for home use have arrived on the market, enabling users to connect a wide range of household appliances safely and hassle-free. The company has seen a future market in PEM fuel cells for domestic co-generation (Micro CHP). Vaillant estimates, that by 2010, the annual world-wide production of residential fuel cell systems under 10kW will reach 250.000 units. The company plans to test 50 systems mainly in Germany but also in the Netherlands, followed by a field trial of 400 units in 2003-2004 with utilities, such as E.ON, Ruhrgas and Gasunie. Thzese trials should prove functionality and reliability of the fuel cells for decentral electricity and heat supply. Viessmann is currently developing a domestic cogeneration unit on a PEM fuel cell basis. The aim of the project supported by the Federal Ministry of Economic Affairs is the development of a 2 kW electric power system for one-family houses. A special

Sulzer Hexis AG has been producing SOFC (Solid Oxid Fuel Cells) since late 80s. Since 2001, the company is testing Fuel Cell Heating Systems HXS 1000 Premiere. By the end of 2001, the first systems were delivered. The systems are being tested in private homes, as well as Laboratories, appartment houses and public houses. The system works with natural gas and provides sufficient electric energy and heating energy. Sd-Chemie is for 60 years the market leader in catalysts for the commercial production of hydrogen, so called Syngas catalysts. SdChemie is also very active in the field of air and gas purification. In this field the technology is based on noble metal catalysts on metallic or ceramic substrates. Sd-Chemie is working now for more than 10 years in fuel cells. In July 2000 Sd-Chemie decided to merge the expertise of the two above mentioned business units and founded the new business unit "Fuel Cell Technologies". Sd-Chemie produces all types of catalysts for the fuel processor. Thyssengas is one of the Germany's leading gas suppliers and has a long history in fuel cell demonstration projects. From 1992 till today, Thyssengas has tested various stationary and residential fuel cell systems, using PAFC and SOFC technology from manufacturers such as ONSI, Siemens and Sulzer Hexis. From 1998 the company tested Sulzer Hexis' HXS1000 SOFC fuel cells.

Name, reference www.h2fair.net the new international portal in the Hydrogen Energy Sector 23-09-2003: http://www.h2fair.net/en/pre ss/6/ Harald Raak, Susanne Riggenbach, Sulzer Hexis AG, Fuel Cell 2003, 30.09.2003, Stuttgart

http://sud-chemie.com

Vaillant

Vaillant, as a part of the Vaillant Hepworth Group is one of the leading manufacturers of domestic heating and hot water systems in Europe. Together with Plug Power, Vaillant has developed the latest generation of a domestic, natural gas powered, 4.6 kW Fuel Cell heating system designed for European multi-family homes and small business applications.

Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); http://www.thyssengas.de/in dex.php?request=medien_ mitteilungen.php Thyssengas Increased Sales Volumes in 2002 (16.05.2003); New Natural Gas Applications and Consulting Services in Demand Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003)

Viessmann

Viessmanns Research & Development is working on natural gas fuelled PEM-Fuel Cell Heating System for private households. The system will provide 2kW electrical Power. Some Prototypes have already been tested. These provide 2kW electrical Power and 3kW

Dr. Peter Britz, Viessmann Werke GmbH & Co KG, Allendorf, at: Fuel Cell 2003, 30.09.2003, Stuttgart

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Annex II: Overview of privately funded RTD&D

Company

Volkswagen AG

Visions, targets, future key research areas technical feature of the system is that no use is made of gas or air compression components. With a lower specific output and better system efficiency compared with other solutions, this concept aims at a technical lifetime of 40,000 operating hours for the whole system. Development partners are SGL carbon for the development of the bipolar plates, Siemens HVAC division for the steering and control, OMG and Sdchemie for catalyst development, ZSW Ulm for the design of the cells. By 2005 Viessmann will start field tests. By 2006/7 the first systems should be delivered. Volkswagen is more pessimistic about an early success of fuel cell vehicles. From VW point, FCVs will not be an alternative for the next 15-20 years because of system costs, related technological problems and the costs of hydrogen. Volkswagen focuses on improving ICE efficiencies and emissions reduction combined with an alternative fuel strategy. The companies vision is that Hydrogen will be the energy carrier to power fuel cells but not in the near future. On the path, synthetic fuels will become the dominant mean to reduce emissions: 1. improvement of ICE drivetrains, 2. synthetic fuels (GTL and BTL) SunFuel, 3. Hydrogen. Volkswagen estimates that synthetic fuels will be available in five years.

Main action points Heating Power.

Name, reference

Volkswagen has several fuel cell prototypes, the latest in 2002 (Bora Hy.Power), a hybrid vehicle with supercapacitors.

Wolfgang Steiger, R&D Volkswagen (Interview, www.volkswagenumwelt.de)

UNITED KINGDOM
Company BP Visions, targets, future key research areas BP is one of the world's largest petroleum and petrochemicals groups. Its main activities are the exploration and production of crude oil and natural gas; refining, marketing, supply and transportation; and manufacturing and marketing of petrochemicals. In addition, BP's lower carbon energy programme is pursuing business opportunities in natural gas, renewables, energy efficiency, hydrogen and fuel cells. BP is the leading worldwide hydrogen-producer. Main action points Assessment of production pathways; economic assessment of fuel from production to consumption. Fuels and infrastructure for fuel cell vehicles in partnership with: DaimlerChrysler: studying potential of methanol as a clean retail fuel for fuel cell vehicles; CUTE (Daimler Chrysler Citaro fuel cell bus programme in Europe and Australia) BP is managing fueling infrastructure and clean hydrogen provision at 6 proposed bus company sites; General Motors: developing a fuel cell car that uses natural gas; Aral subsidiary operates a private hydrogen filling station at Munich Airport; California Fuel Cells Partnership Degussa has developed a ceramic cPEM separator for Direct Methanol Fuel Cells (DMFC). This ceramic separator is highly temperature resistant, has a long lifetime and is very reliable. The OMG company continued Degussas fuel cell activities since 2001, and since 2003 OMG is part if the Umicore Group. Umicore Group is the new name of the Union Minire company, which has a long tradition in mining and smelting of non-ferrous metals. This new business group Precious Metals Products & Catalysts was created after the acquisition of the former Degussa precious metals activities from OMG in August 2003. This part of Umicore includes fuel cell technologies as well as automotive catalysts. Umicore offers the core Name, reference www.bp.com

Degussa

Umicore's fuel cell strategy is to get in a good market position through trade with patents and licences related to hydrogen technology.

Degussa (since 1874) 2000: DMC 2001: OMG Group 2003: Umicore http://www.Umicore.de. Stefan Geiger (Fuel Cell Today: "Fuel Cells in Germany A survey of current developments", 18 June 2003); http://www.omgi.com

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas

European Fuel Cell

EFC is expecting an average anual growth of the fuel cell market between 2000 and 2005 of appr. 28%.

Intelligent Energy

Since 2001, Intelligent Energy has raised 28M through two private placements, which has supported compact fuel cell platform R&D for a range of applications. Company is working and will continue on a global scale with partners in order to exploit its technologies for distributed, motive and portable power applications.

QinetiQ

Main action points components for PEM (polymer electrolyte membrane) fuel cell systems: protonics fuel reforming and hydrogen purification catalysts; pMembrain membrane electrode assemblies; elyst electrocatalyts. The company is preparing for high volume commercial production and currently operates a continuous pilot produc European Fuel Cell Group Ltd. Was originally founded as a nonprofit organisation in 1989. Main goal was to spread the awareness of the fuel cell technology in Europe. The EFCG offers the following opportunities: To learn about the most recent Fuel Cell accomplishments of Fuel Cells and their competitors from basic research and development through demonstrations and market introduction inside and outside Europe; To be informed about innovative concepts aiming at markets already defined or at new business opportunities; To be informed about the opinions and motives of leading European Fuel Cell stake holders and companies about their strategic motives to invest in Fuel Cell technology; To network and to define common fields of interest in the processes of research, development, demonstration and market introduction; To co-operate with leading European Fuel cell experts to define a common view about the actions necessary to realise a viable and competitive Fuel Cell industry in Europe and to satisfy custome Intelligent Energy develops complete energy solutions based on PEMFC technology developing systems not only fuel cell components and stacks. PEMFC: Ambient pressure open cathode PEMFC stacks scaleable up to a power output of 500W. A pressurised PEMFC stack using metal bi-polar plates to deliver hight power outputs. Applications: Remote monitoring; 50kW system it to power a single engine lightweight aeroplane for Boeing; 4kW portable genset; 8kW peak output system for the military; 8kW peak output system for CHP. Reformer technology: micro-reformer which is capable of reforming LPG or natural gas. Fuel Cell component analyser: hardware and testing processes for evaluation of fuel cell components: for bipolar plates, membranes (MEAs), gaskets and catalysts. System Modelling: systems and systems integration modelling software. Number of people working on fuel cells - 42 Proton Exchange Membrane fuel cells: A number of applications, running on H2 or reformed hydrocarbon fuel; Developing novel electrode materials, solutions to customer problems and prototype technical demonstrators; Hybrid power sources, combining battery and fuel cell components to meet complex load profiles and applications. Electronic controls: for fuel cell based systems using a range of programmable microcontrollers. Direct methanol fuel cell: developing methanol-fuelled units with unique characteristics that seek to overcome a number of technological problems usually associated with direct methanol fuel cells. Intermediate temperature fuel: developing a range of novel ceramics

Name, reference

http://www.fuelcell-eur.nl

www.intelligent-energy.com

Ian Whiting; www.qinetiq.com

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas

Rolls Royce

Rolls-Royce (RR) is a global company providing power on land, sea and air.

Main action points for use in fuel cells. These ceramics operate from 200600C, and offer benefits over higher temperature ceramics. Preliminary experiments have shown that the ceramic fuel cell can operate on both reformed fuel and methanol. Hydrogen storage: developing and assessing generation methods and technologies. QinetiQ has developed its own metal hydrides using mechanical alloying and vapour deposition. Hydrogen generation QinetiQ is experienced at producing hydrogen fuel from the controlled reactions of liquid fuels, including military fuels, and the associated technical issues, and has considerable experience of developing and testing such systems.One of the most promising methods of generating hydrogen is based on a novel boron complex, and although in the early stages of development, the system has given a specific energy of over 2000 Wh kg-1. Fuel cell fabrication: Electrode coating and slitting, Heated presses, Screen printing, CAD design, Control electronics and interfacing. Battery / fuel cell testing: Charge/discharge units from mA to kA, High-speed data logging, Electroanalytical instrumentation, Controlled temperature / humidity chambers, Altitude chamber, Air contaminant testing facilities. Solid Oxide Fuel Cell: developed a novel stack, termed an Integrated Planar Solid Oxide Fuel Cell (IP-SOFC) (commercial units expected 2005-6). Developing a low cost production process. Designed a hybrid 1MW power plant, which combines an 800kW SOFC with a 200kW Rolls-Royce Gas Turbine (prototype systems expected 2004-5). EU SOFC Project - with Morgan Crucible, Gaz de France, the University of Genoa and the Risoe National Laboratory.

Name, reference

www.Rolls-Royce.com

FRANCE
Company Air Liquide Visions, targets, future key research areas Air Liquide owns more than 35 hydrogen manufacturing plants across the world and is currently building another 4. The company aims to continue developments that will support the increased use of hydrogen by non-industrial clients exploiting their technical experience in hydrogen production, supply, storage and health and safety. In the long term, the company aims to overcome issues related to public use and to halve costs. Main action points General projects: Testing the viability of hydrogen as a urban public transport fuel; Studies on the performance of buses in different climates and geographies ; Energy efficient gas production technologies; Gas to liquid technologies. European Projects: CUTE: Clean Urban Transport for Europe in 9 European Cities; ECTOS: Ecological City Transport System ; CITYCELL (electric bus hybrid) in 4 European cities; Collaboration with Repsol YPF, Gas Natural and Madrid EMT setting up and support of a hydrogen filling station. Asia: Japan: hydrogen service station for one public transport bus and three coaches. Figures: Budget 150 million euros (across all activity areas); 550 researchers ; 8 research centers (located in the US, Japan, Germany and France); 5 engineering platforms (US, Japan, India, China and France); 194 patents in 2002; Over 100 industrial partnerships; Over 100 international collaborations with universities and research institutes. PEM fuel cell development; targeting three markets in the short term: Name, reference www.airliquide.com

Axane

AXANEs mission is to develop a complete package of hydrogen

Axane is fully owned

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas fuel cell systems that produce energy.

EHN

EHN is a green energy with main area of activity has been wind power, having installed 1,450 MW (633 MW of its own), the fourth largest globally in terms of market share. It also has small hydro, biomass, solar energy, and a biodiesel plant currently under construction in its portfolio. The company believes that hydrogen will be a major energy vector in the medium and long term and that hydrogen extraction from weater by electrolysis using renewable energy sources. EHN see hydrogen production from renewables as a way to address energy security, climate change and urban air quality issues.

Electricite de France

EDF supplies electricity to 31 million customers in France, and with annual sales revenues of US$30bn, it is one of the largest energy groups in the world. EDF has a huge R&D division, with a staff of 2,700 and an annual budget around US$500M. Considers hydrogen as a long term sustainable solution for automotive applications and that fuel cell technologies will the way to transform it into electricity for a vehicle (options being a direct hydrogen or reformed hydrocarbon fuel cell). The company does not believe that ICE-H2 is a more appropriate solution. Conscious of barriers to overcome before scale up and commercialization. Significant automotive applications are not expected before 2010 and research will be required in the following areas to address this: Technologies that resolve current barriers; Manufacturing scale-up. Renault is developing partnerships with "potential" suppliers.

RenaultNissan Group

Repsol

Fossil and renewable energy sources will co-exist in the medium and long term. Fossil energy sources will be used in accordance with sustainable development. Hydrogen and fuel cells show today the potential to take one of the leading roles in this future scenario

Total Fina Elf

Total (formerly TotalFinaElf) is producer and retailer of automotive fuels, as well as a specialty chemicals producer. Total's strategy is to form partnerships for the development of

Main action points Portable multi-application generators (500 W to 10 kW); Stationary applications (more than 10 kW); Mobile applications for small hybrid vehicles (5 kW to 20 kW). Production of hydrogen from the electrolysis of water using renewable energy sources. EHN and Statkraft are buying 5 electrolysers from Stuart Energy as part of an agreement between the companies (2003) These will form part of an evaluation, demonstration and development of hydrogen production systems to include wind energy, combined electrical and thermal applications. Studies on the characterisation and optimisation of electrolysis systems; Development of air-generators for the production of hydrogen; Large scale production of hydrogen from wind farms. Participation in EU project (Hyways). Member of Spanish Hydrogen Association. CUATRO initiatives: Development of a hydgrogen supply system for a fleet of 3 buses EDF has worked on: Developing PEMFC materials; Developing SOFC materials; Conducted field trials of fuel cell systems: 200kW ONSI PAFC, 250kW PEMFC (with BEWAG), 1MW hybrid SOFC (with EnBW) and residential systems, 3kW PEM residential cogeneration fuel cell system from IdaTech. Trials are underway. Renault has part ownership of Nissan. Fuel cells work carried out by Renault is low key, though it has demonstrated prototype vehicles. Research program mainly focused on: Hydrogen supply: refueling and on-board storage problems (Nissan runs these activities); reforming hydrocarbon fuels (Renault runs these activities). Fuel cell efficiency: Reformer, stack and accessories (to compete with diesel engines): long term target is to divide by a factor 2, a target for the complete system of 60%; Nissan and Renault share responsibility; Working with Nuvera on a 70kW reformer for hydrocarbons; Plans to bring out fuel cell vehicle 2015. Cost: Research effort to find new technologies to reduce cost or to devise new system concepts to improve efficiency and cost. The main items are the membrane and the catalyst. Reliability: Particularly managing changing power demands and system longevity; Increase durability from current level of 500 hours to 5000 hours. PEM-FC: Nissan is leading activities and developing a fuel cel R&D activities related to H2: "esH2 consortium" (with Air Liquide Espaa and Gas Natural) for building and operating a hydrogen filling station with "on site" hydrogen production (50 Nm3/h of H2) as part of the CUTE project. Evaluation of the optimal feedstock for "on site" hydrogen production from liquid hydrocarbons. HyWays. Development of the European Hydrogen Road Map for the EC. Development of a cogeneration domestic system based on fuel cells. R&D activities related to fuel cells: None. Investment to date: 1M. Future investment: 8M in the next six years. First hydrogen filling station in Berlin, TOTAL Deutschland and plans to open a new filling station in Berlins suburb Spandau by 2005; study on fuel option life cycles organised by General Motors; fuel

Name, reference subsidiary of Air Liquide

www.ehn.es

Eric Plantive, Manager, of the Distributed Resources Group at EDF Research and Development Hydrogen Economy and the Automotive Industry - The Renault-Nissan View (1st European Hydrogen Energy Conference at Grenoble Sept. 2, 2003); Pierre BEUZIT, Vice President Research, RENAULT Group

Enrique Girn (egironm@repsolypf.com), Guillermo Wolff (gwolffe@repsolypf.com)

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas cleaner fuels, lubricants, etc. to meet demand for better engines, improved air quality and fuel economy. Total's research and development efforts in refining and marketing are focused on: evaluating new refining processes that are more efficient and environmentally friendly in order to produce ultra-low sulfur fuels; improving the quality of high-end, finished products by adjusting their composition and selecting exclusive additives. The company is exploring possibilities of using H2 (generated from hydrocarbons) for the use in fuel cell vehicles.

Main action points sources and fluid options; partnership with Delphi Corp. (USA).

Name, reference

ITALY
Company Ansaldo Visions, targets, future key research areas MCFC development program is aimed at development, manufacturing and commercialisation of MCFC power plants. The AFCo sees two Phases in the next few years: 1. Up to 2005/2006 the company will be developing more Prototypes and is planning to refine component manufacturing processes. 2. In the second phase, from 2005 on, commercialisation will take place and a factory update is planned.. CRF is performing technology research and validation in the frame of national and EU programmes. It is considered that in 2020 the FC vehicles could be total cost effective with respect to conventional vehicles. Nuvera Fuel Cells believes a hydrogen society will exist within 20 years into the new century when fuel cells will be the power of choice. Until that time, we must turn to alternative innovations to solve the worlds growing energy demands. Hydrocarbon-fueled fuel cell systems offer one such solution. By using fuel processing technology to convert fuels such as gasoline, natural gas, and propane into hydrogen, and, in turn, using the hydrogen to power fuel cells, the company will provide the bridge to establishing a new fuel infrastructure one that will help drive the new hydrogen era. Main action points Ansaldo Fuel Cells SpA (AFCo), an Italian Corporation, has been demerged from Ansaldo Ricerche Srl (ARI), a Finmeccanica company acting since over 10 years in the development of fuel cell technology. AFCo is focused on the industrial production and commercialization of Molten Carbonate Fuel Cells (MCFC) power plants in the range 0,5 to 5 MW. AFCo has been involved in many international (mostly Italian)powerplant projects. In october 2003, Fiat presented thenew seicento and the Panda hydrogen, both equipped with a Nuvera PEM fuel cell stack (40kW). Name, reference http://www.ansaldo.it

Fiat

Nuvera Fuel Cells

Nuvera was formed in April 2000 through the merger of Epyx Corporation (USA) and De Nora Fuel Cells (Italy). The merger brought together 10 years of fuel processor technology from Epyx and 10 years of fuel cell stack technology from De Nora. This combined knowledge is a reason for the good position of the company in the world market for fuel cells. Nuvera provides Proton Exchange Membrane fuel cell technologies and products for automotive, distributed generation, and commercial / industrial applications. For example the nuvera Fuel Cells have been integrated in Fiats hydrogen cars seicento and Panda Hydrogen.

http://www.nuvera.com

DENMARK
Company Dansk Gasteknisk Center and Hovedstadsre gionens Naturgas I/S Visions, targets, future key research areas Suitability of natural gas grid for operation with H2 (0.3 million euro) Main action points Name, reference

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Annex II: Overview of privately funded RTD&D

Company IRD Fuel Cells with Denmarks Technical University, RIS IRD Fuel Cells with RIS IRD Fuel Cells together withCentro Ricerche FIAT, PEM Fuel Cells, de Nora, Nordvestjysk Folkecenter IRD Fuel Cells and Dansk Gasteknisk Center APC Denmark, IRD Fuel Cells, NESA Energi

Visions, targets, future key research areas Metal hydride storage for hydrogen vehicles (0.4 million euro)

Main action points

Name, reference

Lightweight hydrogen storage for hydrogen vehicles (0.2 million euro) Hydrogen vehicles based on PEMFC (1.5 million euro)

5 kW heat and power generator with PEMFC (0.8 million euro)

50 kW CHP plant with PEMFC (0.3 million euro)

FINLAND
Company Wrtsil Visions, targets, future key research areas Has entered into a cooperation agreement with the Danish technology company Haldor Topse to start a joint development programme on fuel cell technology. Main action points Aims to develop and commercialise a 200 kW SOFC Name, reference

ICELAND
Company Icelandic New Energy INE Visions, targets, future key research areas A demonstration and evaluation project of operating hydrogen infrastructure and fuel cell buses in Reykjavik. This phase is known as ECTOS (Ecological City Transport System). Given that there is a positive outcome the goal is to replace a larger part of the Reykjavik city buses with hydrogen vehicles. Later even hydrogen powered private vehicles, marine vessels and fishing Main action points The key elements of the project are to integrate an on-site infrastructure in the city of Reykjavk (2001), to operate three hydrogen fuel-cell buses in Reykjavk (2002-2004) and to carry out socio-economic studies parallel with the project (2001-2005). The hydrogen for the project will be produced, stored, and distributed at this station on a Shell Hydrogen retail filling station. The hydrogen Name, reference INE is jointly owned by the Iceland Government and academic institutions (51%), Shell Hydrogen (16%), Norsk Hydro (16%) and Daimler Chrysler (16%).

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Annex II: Overview of privately funded RTD&D

Company

Visions, targets, future key research areas boats would be introduced.

Main action points is produced by electrolyzing water using electricity generated from renewable energy. Norsk Hydro supplied the hydrogen fuel plant in which this process takes place. DaimlerChrysler manufactured the three hydrogen-powered city buses that are participating in this project. The buses are fuelled by compressed hydrogen and refueling will be done at the hydrogen filling station. The vehicles will be tested initially for two years on the streets of Reykjavik.

Name, reference

NORWAY
Company Norsk Hydro Visions, targets, future key research areas The Utsira wind-hydrogen demonstration has a total financial frame of app. 5 million euro and will start-up in December 2003. Enova, the Norwegian Pollution Control Authority (SFT) and the Research Council of Norway have supported the project. Main action points A fuel cell will be introduced in July 2004. Name, reference

SWEDEN
Company Fortum and ABB Sydkraft and Sydgas Visions, targets, future key research areas A demonstration project for stationary use in housing. Funded (1.5 million euro) by the Swedish Foundation for Strategic Environmental Research MISTRA A demonstration project of a Malm H2-gas station. Funded (1.0 million euro) by the Swedish Foundation for Strategic Environmental Research MISTRA Main action points Name, reference

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Annex III: Analysis of H2/FC RDE&D scientific publishing

ANNEX III ANALYSIS OF H2/FC RTD&D PUBLISHING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ECONOMIC CO-OPERATION
Mika Naumanen (VTT)

METHODOLOGICAL APPROACH AND SCOPE OF THE ANALYSIS


The number of scientific publications is very often used as a sign of the research capacity and growing knowledge pool of a country, or of a specific research community etc. Whereas numbers of publications only tell us about quantity, quality is more closely associated with the indicator relating to citation counts. However, there is a considerable time span between the date when the research takes place and when it is cited. In H2/FC technologies trend shifts can be quite quick. We are especially interested in the latest developments also. Therefore, we assess the quality of a research paper by the impact factor of the scientific publication it is published in. An academic evaluation is perhaps the most important and recent use of impact factors. The Journal Citation Report (JRC) impact factor is a measure of the frequency with which the average article in a journal has been cited in a particular year or period. The annual JRC impact factor is a ratio between citations and recent citable items published. Thus, the impact factor of a journal is calculated by dividing the number of current year citations to the source items published in that journal during the previous two years. The impact factor is useful in clarifying the significance of absolute (or total) citation frequencies. It eliminates some of the bias of such counts, which favour large journals over small ones, or frequently issued journals over less frequently issued ones, and of older journals over newer ones. In this bibliographic analysis we went through H2/FC-related scientific articles and conference papers that appear in Compendex and Inspec databases.27 Altogether, 2704 articles were covered. These articles were published in 385 academic papers and conference proceedings.

27

Compendex is the most comprehensive bibliographic database of engineering research available today, containing over seven million references and abstracts taken from over 5,000 engineering journals, conferences and technical reports. Approximately 250,000 new records are added to the database annually from over 175 disciplines and major specialties within engineering. Inspec is the leading bibliographic database concentrating on electrical and electronic engineering, physics, information technology, computer and control systems, and manufacturing and production engineering. Online coverage is from 1969 to the present, and new records are updated weekly. Inspec grows by about 330,000 records per year.

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In order to interpret these indicators correctly, some preliminary remarks should be made regarding the nature of the data. The headquarters of the Engineering Information, the owner of the database used for all these calculations are based at the Stevens Institute Campus in the town of Hoboken, New Jersey, USA. The database therefore tends to have a bias towards English language publications, and to reflect the scientific profile of the USA. On the other hand, Engineering Information has offices in the United Kingdom and Japan also. We focus on articles that have been published after the year 1994. In order to examine trends in these technologies, we divided our sample to two parts: papers published from 1995 to 1999, i.e. late 1990s and papers published after the year 1999, i.e. 2000s. In our database searches, we required that the name of the particular technology appeared as a controlled word or a main heading or in the title of the article In order to assess the quality of the national contributions and to see whether there are country specific differences, the impact factors of the scientific publications where the research was published were calculated and summarised. For simplicity, we used average journal impact factors over all years of quotation. The ten most common publication venues for H2/FC related publications were (with their impact factors in parenthesis): International Journal of Hydrogen Energy (0.56), Journal of Alloys and Compounds (0.89), Journal of Power Sources (0.76), Journal of the Electrochemical Society (2.33), Applied Catalysis A (1.66), Solid State Ionics (1.22), Electrochemica Acta (1.21), Industrial & Engineering Chemistry Research (1.06), Catalysis Today (1.78) and Journal of Physical Chemistry B (3.11). The impact factor can be used to provide a gross approximation of the prestige of journals in which individuals have been published.

HYDROGEN PRODUCTION
Publications in hydrogen production concentrate in 2000s on steam reformation. Electrolysis used to be as active a research area but is now declining. On the other hand, the role of gasification in hydrogen production is increasing in the light of publications.

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Annex III: Analysis of H2/FC RDE&D scientific publishing

300 250 200 150 100 50 0


m ic al tro ca m ic al n at io lys is tio n

late 1990's 2000's

re fo rm

he

G as ifi

El ec

bi oc

St ea m

an

Figure AIII.1:

Number of publications in hydrogen production by technologies

STEAM REFORMING European organisations are the most prolific R&D publishers in steam reforming together with the Americans. The number of European research papers published after the year 2000 is three times as large as the number of research papers between the years 1995 and 1999. University Messina is the leading publishing research organization. CNR, CNRS, ETH Zurich, KFA Julich GmbH and Royal Institute of Technology belong to the top-10 publishers. In the number of research publications, the USA is behind Europe and is now at par with Japanese. However, the Americans are able to publish their research in prestigious journals, and hence lead if the impact factors are considered. The relative importance of Canadian research papers in steam reforming has decreased dramatically recently. In North America, National Renewable Energy Laboratory, Royal Military Collage and Texas A&M University belong to the top-10 publishers. Japanese research in steam reforming seems to be rapidly increasing. Currently, Japan is at par with the USA as the number two publisher in the area if the number of research publications is considered. The number of Japanese research papers published after the year 2000 has quadrupled from the number of research papers published between the years 1995 and 1999. If publications correlated with the research activity, Japanese R&D in steam reforming would be mostly academic. Over

Ph

ot o

ca ta l

yt ic

Th

er m oc

he

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Annex III: Analysis of H2/FC RDE&D scientific publishing

80% of the Japanese publications in the field come from academic institutions. From Japan, AIST belongs to the top-10 publishers in the world. ELECTROLYSIS Europe is closely following the USA and Japan in electrolysis publications. In recent years, Europe has even surpassed the former leader, the USA. CNRS, ETH Zurich, KFA Julich GmbH and Paul Scherrer Institute belong to the top-10 publishers. The USA used to be the leading publisher in electrolysis. However, they have lost their leading position to Japan and Europe. This might be due to a clear difference between the American and Japanese publishing activities. Americans publish their research more often in conferences than researchers from other regions (statistically significantly). Many of these papers are authored or co-authored by persons from private companies. In the USA, National Renewable Energy Laboratory and Ryerson Polytech belong to the top-10 publishers. Japanese organizations are now the most prolific publishers in electrolysis. The number or publications have doubled from 1995 - 1999 period to the period after the year 2000. The change is statistically significant from the lower or no change in other regions of the world. Academicians publish many of these papers. Moreover, the number of authors in Japanese research papers is statistically significantly larger than in papers originating from other parts of the world. This may suggest that Japanese research projects are larger and/or more practice oriented than projects in other regions. Nagoya University and Tohoku University are the leading publishing research organizations. Osaka University belongs to the top-10 publishers. There seems to be active research cooperation between Indian and Korean academic institutions. In recent years, the combined publishing activity of these two nations has surpassed that of the Canada. In South East Asia, Banaras Hindu University from India belongs to the top-10 publishers. GASIFICATION Europe has surpassed the USA as the number two publisher in hydrogen production by gasification. However, if the whole North America is considered, Europe is still on the third position. From Europe, ETH Zurich, Karlsruhe Research Center and University Newcastle belong to the top-10 publishers. Americans share the number two position in publishing with the Europeans. It seems, however, that Europe is gaining ahead. However, the Americans are able to publish their research in prestigious journals, and hence lead if the impact factors are considered. The number of authors in American research papers is statistically significantly lower than the number of authors in research originating from other parts of the world. This may suggest a more theoretical approach to the subject. In the USA, National Renewable Energy Laboratory belongs to the top-10 publishers. In gasification, Japan is statistically significantly more prolific publisher than other regions of the world. Japanese corporations publish statistically significantly more

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Annex III: Analysis of H2/FC RDE&D scientific publishing

than do businesses elsewhere also. University Tsukuba is the leading publishing research organization. AIST and Tohoku University belong to the top-10 publishers. All South East Asian publishing in the field has occurred after the year 2000. In the recent years, Chinese have been as active research publishers as top European countries in the field. Moreover, they are actively cooperating with American and Canadian universities. PHOTOCATALYTIC AND BIOCHEMICAL PRODUCTION Europe is very much behind Japan in publishing research in the area. However, Europe is leading with respect to the North America. CNRS and ETH Zurich belong to the top-10 publishers. The USA and Canada are very much behind Japan in publishing research in the area. However, UNAM and University of California Berkeley belong to the top-10 publishers. Japan is a clear world leader in publishing in this research. More importantly, they are increasing their contribution to the subject. Japanese corporations are the only ones that have published in the area. There is no sign of industry-university cooperation in the field though. Tohoku University is the leading publishing research organization. AIST, Hokkaido University, Kyushu National Industrial Research Institute and Osaka University belong to the top-10 publishers. Indians used to be very active publishers in this field of research closely following Japanese and very much ahead all others. However, this research was published mostly in local research papers and had a low impact. There is very little published Indian research after the year 2000. Thanks to their publications from 1990s, Banaras Hindu University and Indian Institute of Technology belong to the top-10 publishers. In recent years, Shanghai Jiao Tong University has raised to the top-10 publishers. It collaborates quite heavily with Japanese research institutions. THERMOCHEMICAL PRODUCTION Paul Scherrer Institute belongs to the top-10 publishers in thermochemical hydrogen production. Other than that, European institutions are publishing very little in the area and the trend seems to be declining. Americans are increasing their efforts in the field and are surpassing Europe, together with the South East Asian nations, in the number of research publications. One must note, though, that many of the American papers include just one author and the objective is to synthesise recent trends in the hydrogen research. The impact of these studies is not very large. Second to Japan, American corporations are the only ones that have published in the field. University of California Berkeley and University Miami belong to the top-10 publishers. Japan is a clear world leader in publishing in this research. In the light of the research publications, there is more industry-university cooperation in the field in Japan than in

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Annex III: Analysis of H2/FC RDE&D scientific publishing

other regions of the world. Japanese research institutions are cooperating with Korean and Chinese research institutions. Japan Atom Energy is the worldwide leader in publishing thermochemical research. Tohoku University and University Tokyo belong to the top-10 publishers. South East Asian nations are increasing their efforts in the field and are surpassing Europe, together with the USA, in the number of research publications. Korean and Chinese research institutions are cooperating with Japanese research institutions. These publications involve typically quite many persons. This can partly be explained by the co-operative nature of the projects. Moreover, it may suggest a practical, hands-on approach to the subject. From South East Asia, Korea Institute of Energy belongs to the top-10 publishers. NATIONAL/REGIONAL CHARACTERISTICS IN HYDROGEN PRODUCTION European organizations are now the most prolific R&D publishers in steam reforming together with the Americans. Europe is closely following the USA and Japan in electrolysis publications. In recent years, Europe has even surpassed the former leader, the USA. In hydrogen production by gasification, Europe has increased its publishing quite dramatically and is approaching the former leaders USA and Japan. In photocatalytic, biochemical and thermochemical hydrogen production, Europe is very much behind Japan. For thermochemical hydrogen production, the trend seems even to be declining.
Table AIII.1: National shares of publications and impact factors in hydrogen production
Asia (excl Japan) (%) South Korea (%) Switzerland (%)

Germany (%)

Denmark (%)

England (%)

Canada (%)

France (%)

Japan (%)

China (%)

Spain (%)

India (%)

Steam reforming Electrolysis Gasification Photocatalytic and Biochemical Production Thermochemical (nuclear)

20 33 25 23 17 32 12 3 4 10

23 28 20 19 11 7 9 5 8 24 50 17 15 17

32 42 11 13 42 32 46 68 10 54 60 50 65 60 57 6 8 6 4 8 4 7 6 3 12 8 27 17 13 15 29 17 34 21

29 14 20 11

top row: publications in 2000s (percentage), bottom row: publications in late 1990s (percentage) left column: number of publications (percentage), right column: impact factor (percentage)

The USA is well presented in all major hydrogen production technologies: steam reforming, electrolysis and gasification. They do not necessarily publish as much as the Europeans and Japanese do but are able to publish their research in prestigious journals. This is clearly visible in hydrogen production by gasification. The relative importance of Canadian research papers in steam reforming has decreased dramatically recently.

USA (%) 2

Italy (%)

EU (%)

20 16 6 9 27 26 28 26

5 4 7 5

4 4 9 5

5 2 3 1

3 1 2 1

3 5 3 4

3 3 1 5

20 16 11 10 9 6 15 13 10 11

4 7 2 7 6 5

3 3 3 4 4 5

2 3 5 7 5 6

2 5 8 3 3 7

6 9 7 2 2

3 4 8 2 1

7 9 2 2 2

4 5 3 2 1

7 3 4 9 5

8 3 9 7 4 5

34 28 15 30 35 22 27 21 15 27 20 16 13 10 9

1 4 7 2

5 6 3 2

8 20 32 20 32

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Annex III: Analysis of H2/FC RDE&D scientific publishing

Japanese research in steam reforming seems to be rapidly increasing. Japan is at par with the USA as the number two publisher in the area. Japan is now the most prolific publisher in electrolysis. In gasification, Japan has been the leading publisher over the analysed time period. Much of this research, however, is published by Japanese corporations and does not receive as high impact factors as the more academic American research. Japan is a clear world leader in publishing research in photocatalytic, biochemical and thermochemical hydrogen production. All South East Asian publishing in hydrogen production by gasification has occurred after the year 2000. In the recent years, Chinese have been as active research publishers as top European countries in the field. They are actively cooperating with American and Canadian universities also. South East Asian nations are increasing their efforts in the thermochemical hydrogen production also and are surpassing Europe, together with the USA, in the number and impact of research publications. Korean and Chinese research institutions are cooperating with Japanese research institutions. In photocatalytic and biochemical hydrogen production, South East Asian nations are doing pretty well also.

HYDROGEN STORAGE
The number of publications devoting to various technologies to store hydrogen has increased rapidly during the last few years. Metal hydrides is still the leading technology branch. However, the various nanotechnology-based storage solutions have attracted the highest increase in research volume.
450 400 350 300 250 200 150 100 50 0
yd r id Na s no te ch no lo gi es ga s d an at es Li qu i

late 1990's 2000's

Pr es su ris ed

Figure AIII.2:

Number of publications in hydrogen storage by technologies

et al h

Al

163

Annex III: Analysis of H2/FC RDE&D scientific publishing

PRESSURISED GAS The literature in pressurised hydrogen storage is difficult to characterise: does the research in the storing of gaseous materials in general apply to hydrogen or not? With strict search terms, there appears to be no Japanese research publications in the area hard to believe to be true. Hence, it is very difficult to draw any definitive conclusions on this research. However, one can note that China is a strong player in the field. LIQUID In general, Europeans are number two publishers in the field after the Americans. However, both Japan and South East Asian nations have increased their publishing effort in recent years much more that the European ones have. If this trend continues, Europe will lose its number two position in just a few years. European companies are quite active in publishing in the field. Japanese have a clear lead but European companies have as clear a lead over the American ones. ETH Zurich is the leading publishing research organization. CNRS and Paul Scherrer Institute belong to the top10 publishers. USA is the leading publisher in the field. Moreover, the number of publications is increasing rapidly. Most of this research is academic and has a high impact. American companies have published surprisingly little in the field. NASA, Sandia National Laboratory and University Toronto belong to the top-10 publishers. Japan is number three publisher in the field together with the South East Asian nations. However, Japanese companies are very active in the area. Industry-university collaboration seems to be in good hands also. There is statistically significantly more this type of research publications by Japanese than by others. Osaka University and University Tokyo belong to the top-10 publishers. The South East Asian research publications in the field are solely academic ones. The number of these publications is increasing very rapidly. In just a few years, China, India and Korea may surpass Europe as the number two publisher in the field. For example, during the last three years Chinese research institutions have published as much as the German ones, the former clear number two publisher in the world. Moreover, if measured by the impact factors, this research is of a similar quality. In South East Asia, Chinese Academy of Science and Shandong University belong to the top-10 publishers. METAL HYDRIDE Europe is number three publisher in the world together with the USA. European organizations have tripled their publishing activities in the field from late 1990's to early 2000's. This increase in research publications seems to be a common trend in all regions. From Europe, CNRS belongs to the top-10 publishers. USA is number three publisher in the world together with Europe. Together Canada and the USA surpass Japan as the number two publisher in the world. Both nations have tripled their publishing activities in the field from late 1990's to early 2000's. Institute of Research Hydro Quebec belongs to the top-10 publishers.

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Annex III: Analysis of H2/FC RDE&D scientific publishing

Japan is number two publisher in the number of publications, clearly behind China. However, Japanese research seems to be of higher quality and receives almost the same impact as the Chinese one does. Japan has tripled its publishing activities in the field from late 1990's to early 2000's. Japanese companies are statistically significantly the most active publishers in the world. They co-operate with research institutions statistically significantly more than private companies do elsewhere. Osaka National Research institute and University Osaka Prefecture belong to the top10 publishers. China is clearly the most prolific publisher in the world. Both Korean and Indian organizations have published more in the field than organizations from any European nation. Altogether, South East Asian nations have quadrupled their publishing activities in the field from late 1990's to early 2000's. These South East Asian research activities are mainly academic ones by their nature. Zhejiang University is the leading publisher worldwide. From South East Asia, Chinese Academy of Science, Korea Adv Institute of Science and Technology, Nankai University and Tsing Hua University belong to the top-10 publishers. There are less research publications in Taiwan. These are marked with industry-university collaboration, however. ALANATES All research publications in the field are fairly young. Europe is number two publisher in the world, clearly behind the USA though. Karlsruhe Research Center and Institute for Energy Technology belong to the top-10 publishers. The USA is the world leader and the Americans have published statistically significantly more research papers in the field than any other region has. Moreover, American businesses are statistically significantly more prolific publishers and research co-operators than companies in other parts of the world. Sandia National Laboratory is the leading publishing research organization. Japan is number three publisher in the world, clearly behind the USA and Europe in the field. There is very little publishing activity in the South East Asian nations in this technology. NANOTUBES Europe is number three publisher in the world together with Japan. They closely follow the USA. Max Planck Institute, CNRS and University Fribourg belong to the top-10 publishers. The USA is the leading publisher of H2/FC related nanotechnologies in the world. American companies have published research in the field also. University of Michigan belongs to the top-10 publishers in the field.

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Annex III: Analysis of H2/FC RDE&D scientific publishing

Japan is number three publisher in the world together with Europe. They closely follow the USA. Japanese companies are statistically significantly the most active publishers in hydrogen storage on a nano-scale. They co-operate with research institutions statistically significantly more than private companies do elsewhere. From Japan, Hiroshima University and Tohoku University belong to the top-10 publishers. China is the leading research publisher in the world if just the number of research publications is considered. However, American publications receive higher impact factors. Chinese Academy of Science is the leading publishing research organization. Jeonbuk National University from South Korea and Nankai and Tsing Hua Universities from China belong to the top-10 publishers. NATIONAL/REGIONAL CHARACTERISTICS IN HYDROGEN STORAGE TECHNOLOGIES In various hydrogen storage technologies, Europeans can reach number two position only in the liquid hydrogen storage and alanates publications. However, in recent years both Japan and South East Asian nations have increased their publishing effort in the liquid hydrogen storage much more that the European ones have. If this trend continues, Europe will lose its number two position in just a few years. In metal hydrides, Europe is number three publisher in the world. European organizations have tripled their publishing activities in the field from late 1990's to early 2000's. This increase in research publications seems to be a common trend in all regions.
Table AIII.2: National shares of publications and impact factors in hydrogen storage technologies
Asia (excl Japan) (%) South Korea (%) Switzerland (%)

Germany (%)

Denmark (%)

England (%)

Canada (%)

France (%)

Japan (%)

China (%)

Spain (%)

India (%)

Pressurised gas Liquid Alanates Metal hydride Nanotubes

36 30 55 59 29 32 33 23 57 50 13 16 10 11 17 24 55 45

top row: publications in 2000s (percentage), bottom row: publications in late 1990s (percentage) left column: number of publications (percentage), right column: impact factor (percentage)

The hydrogen storage technologies are clearly an American strength. The USA is the leading publisher in all hydrogen storage technologies except in metal hydrides. Even in metal hydrides, the USA and Canada together is the leading publisher if the impact of the research is considered. Japan is typically number two or three publisher in the various hydrogen storage technologies. However, Japanese companies seem to be very active in the area. This is definitely a strength for Japan. In metal hydrides, which is the most active research area, Japan is second to China in the number of publications. However, Japanese 166

USA (%) 7 9 3 5 9 9 3

Italy (%)

EU (%)

4 6 2 4 17 17 17 18 21 22

14 11 18 16 8 2 6 2

7 4

7 2 5 2 4 6 3 5 4

21 18 14 14 14 26 18 16 3 8 9 10 9 2 2 6 3 1 1 1 1 1 2 4 1 4 9 7 7 5 2 3 9 1 1 1 2 2 3 2 4 2 2 1 1 19 15 10

29 40 9 10 25 25 21 28 10 12 10 9 18 17 18 10

7 9 3

8 10 5

17 14 21 28 3 7 9 9 4 5 8 1

30 36 11 11 3 5 4 3 6 2

10 17 18 32 21 13 20 19 26 19 2 16 16 27 20 18 23

9 9 5

9 12 7

4 6 4

48 41 47 42 38 37 27 45

Annex III: Analysis of H2/FC RDE&D scientific publishing

research seems to be of higher quality and receives almost the same impact as the more numerous Chinese one does. China is a strong player in various hydrogen storage technologies. For example, China is the most active publisher of metal hydrides research. Next to China, both South Korea and India have published more in the field than any European nation. During the last three years Chinese research institutions have published as much liquid hydrogen storage research as the German ones, the former clear number two publisher in the world. Moreover, if measured by the impact factors, this research is of a similar quality. China is the leading research publisher in the world in hydrogen storage in nanotubes also, if just the number of research publications is considered.

CONVERSION AND UTILISATION


In conversion, PEM fuel cells seem to be the hottest research area. The field has the highest number of publications. Percentual increase in the number of publications has been the highest also. Other interest areas seem to be SOFC and as an emerging field direct methanol fuel cells.

180 160 140 120 100 80 60 40 20 0


SO FC PE M FC te e l an o Al ka lin on a ac id

late 1990's 2000's

et h

ca

ol te n

ire ct

Figure AIII.3:

Number of publications in hydrogen conversion by fuel cell technologies

SOLID OXIDE FUEL CELLS Europe publishes most of the SOFC research. In Europe, the most active nations to publish research in the area have been England, Denmark and Germany. Riso National Laboratory is the leading publishing research organization. CNRS, ETH

Ph os

ph

or ic

rb

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Annex III: Analysis of H2/FC RDE&D scientific publishing

Zurich, KFA Julich GmbH, Siemens and Imperial Collage belong to the top-10 publishers. When compared to Europe and Japan, the USA publishes less SOFC related research. However, this research receives very high impact factors and leads in this respect. From North America, Georgia Institute of Technology and University Alberta belong to the top-10 publishers. Japanese organizations have decreased their publishing efforts in SOFC statistically significantly. Japan is still number two publisher in the world in SOFC after Europe. However, it is the only region where the publishing has decreased from late 1990's to early 2000's. Japanese companies have been statistically significantly the most active publishers in the world. However, these contributions are almost solely from the 1990's. Nagoya University and Tohoku University belong to the top-10 publishers. The South East Asia is currently number four publisher in the world in the field. However, these nations are increasing their activities the most. For example, after the year 2000, China has published more SOFC related research than any European nation. However, this research was not published in the most prestigious journals. MOLTEN CARBONATE Europe is the leading publisher of MCFC related research. European institutions have published statistically significantly more research papers than have institutions from other parts of the world. However, the research activity seems to be declining. In Europe, the USA and Japan fewer research papers have been published in early 2000's than in late 1990's. There is very little publishing activity in North America in this technology. From Europe, CNR and University Messina are the leading publishing research organizations. ETH Zurich belongs to the top-10 publishers. Japanese companies are statistically significantly the most active publishers in the world. They co-operate with research institutions statistically significantly more than private companies do elsewhere. In recent years, Korea has been the only South East Asian nations to publish research in the area. There are no research papers from China in the field. PEM Europe is number two publisher in the world, clearly behind the USA though. Europe has been increasing its PEMFC research publications at the same pace than Japan and South East Asian nations have been doing. CNRS, ETH Zurich, KFA Julich GmbH, Royal Institute of Technology and University Patras belong to the top-10 publishers. The USA is the leading publisher in the world. It has increased its publishing activities in PEMFC statistically significantly more than any other region in the world also. American companies are statistically significantly the most active publishers in the world. In PEM, H Power is the leading publishing research organization. American companies also co-operate with research institutions statistically

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Annex III: Analysis of H2/FC RDE&D scientific publishing

significantly more than private companies do elsewhere. Case Western Reserve University, Princeton University, Royal Military Collage, Sandia National Laboratory, University of California Berkeley and University Miami belong to the top-10 publishers. Japan has published surprisingly little in the area. All contributions have occurred in 2000's. Japanese companies are relatively well represented in the publishing activities. In South East Asia, Korea has been the most active publisher of PEM related research. Close industry-university collaboration is characteristic for this research also. China follows closely behind. Shanghai Jiao Tong University and Tsing Hua University belong to the top-10 publishers. DIRECT METHANOL Europe is the leading publisher of direct methanol related fuel cell research together with the USA. European institutions have published statistically significantly more research papers than have institutions from other parts of the world. These papers are typically academic ones by their nature. The leading nations in Europe are England and Germany. KFA Julich GmbH is the leading publishing research organization. Max Planck Institute, Imperial Collage and University Newcastle belong to the top-10 publishers. The USA leads together with Europe in the technology. American companies are statistically significantly the most active publishers in the world. They co-operate with research institutions statistically significantly more than private companies do elsewhere. University Alberta belongs to the top-10 publishers. Japan has published surprisingly little in the area. All contributions have occurred in 2000's. There is little publishing activity in the South East Asian nations in this technology too. All contributions have occurred in 2000's. Koreans have published as much as Japanese in that period. ALKALINE Europe is the leading publisher of alkaline fuel cell research. These papers are typically academic ones by their nature. No companies are involved. Royal Institute of Technology and University Barcelona are the leading publishing research organizations. Middle East Technical University belongs to the top-10 publishers. The USA has increased its publishing activities in 2000's statistically significantly. However, they still publish less than Europe and South East Asian regions. In Canada, University Toronto belongs to the top-10 publishers. South East Asian nations are number two publishers of alkaline fuel cell research. The leading South East Asian nation in the field has been Korea. Japan has published very little in the area.

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PHOSPHORIC ACID Europe is statistically significantly the leading publisher of phosphoric acid fuel cell research. In Europe, the number of contributions has increased the most from late 1990's to 2000's. These papers are typically academic ones by their nature. The leading nations in Europe are Germany and England. Max Planck Institute, Royal Institute of Technology, Technical University Denmark, Imperial Collage and University Patras belong to the top-10 publishers. Canada used to be an active publisher of phosphoric acid fuel cells research. However, there is now very little publishing activity in the area both in Canada and in North America general. From the USA, Case Western Reserve University is the leading publishing research organization. Japanese companies used to be very active in the field. They were statistically significantly the most active publishers in the world. They co-operated with research institutions statistically significantly more than private companies did elsewhere. However, these activities date back to 1990's. There is now less publishing activity in Japan in the field and it is solely by academic institutions. Hiroshima University and University Tokyo belong to the top-10 publishers. Korea is the leading South East Asian nation to publish research in phosphoric acid fuel cells. Korea Institute of Energy belongs to the top-10 publishers. There are no research papers from China in the field. NATIONAL/REGIONAL CHARACTERISTICS IN CONVERSION AND UTILISATION Europe is the general leader in fuel cell publications. More specifically, Europe leads in the solid oxide, molten carbonate, direct methanol, alkaline and phosphoric acid fuel cells research publications. In Europe, the most active nations to publish research in SOFC have been England, Denmark and Germany; in MCFC, England and Italy; and in DMFC, Germany and England.
Table AIII.3: National shares of publications and impact factors in hydrogen conversion and utilisation technologies
Asia (excl Japan) (%) South Korea (%) Switzerland (%)

Germany (%)

Denmark (%)

England (%)

Canada (%)

France (%)

Japan (%)

China (%)

Spain (%)

India (%)

SOFC PEM Molten Carbonate Direct Methanol Alkaline Phosphoric Acid

18 30 14 33 36 45 5 3

46 55 14 19 14 9 6 6 9 6 8 3 13 14 23 35 13 15 33 58 22 22 13 14 6 9 10 5 12 1 6 6 8 3 19 13

top row: publications in 2000s (percentage), bottom row: publications in late 1990s (percentage)

USA (%) 6 2 9

Italy (%)

EU (%)

8 1 7

15 15 21 21 9 9

8 4 4 4

2 2 4 1

3 6

6 4

2 2 2

2 1 2

18 14 11 4 8 1 3 8

6 12

2 7

8 16 4 4 10

6 9 3 3 8 10

5 5 1 7

4 6 4 24 29 31 28 4 1 4 2

7 9 4 5 4 11 6 6 19 6 11 24

8 6 6 4 3

35 28 47 33 30 26 36 24 57 70 63 69 38 33 67 42 28 36 39 50

6 5

5 4

15 13 13 10 25 17 14 12 6 13 23 18 6 5

14 12 6 4 2 9 3 6 3 2

19 28 9 3 22 10 33 26

13 12 14 10 8 8

22 17 14 10 8 8

2 6 6 6 4

17 14 17 13 44 33 11 11 11 11 17 25 17 21 10 11

17 14

54 63 10 11

20 39 50 41

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Annex III: Analysis of H2/FC RDE&D scientific publishing

left column: number of publications (percentage), right column: impact factor (percentage)

The USA is the leading publisher of PEMFC research in the world. It has increased its publishing activities statistically significantly more than any other region in the world also. The USA publishes less SOFC related research than Europe or Japan. However, this research receives very high impact factors and is world-leading in this respect. Canada used to be an active publisher of phosphoric acid fuel cells research. However, there is now very little publishing activity in the area both in Canada and in North America general. Japan has published surprisingly little in the fuel cell technologies. There is a clear shift in the publications from solid oxide and phosphoric acid to PEM fuel cells. In PEM fuel cells, all Japanese contributions have occurred in 2000's. Japanese companies are relatively well represented in the publishing activities. The South East Asian nations are increasing their activities in SOFC the most. For example, after the year 2000, China has published more SOFC related research than any European nation. In recent years, Korea has been the only South East Asian nations to publish MCFC related research. There are no research papers from China in the field. Korea has been the most active publisher of PEM and phosphoric acid related research also.

END-USER APPLICATIONS
The number of research papers concerning the various applications of H2/FC technologies has increased rapidly in the early 2000s. Most of the papers focus on transportation but the share of papers characterising portable applications is increasing.
120 100 80 60 40 20 0 Stationary Transportation Portable late 1990's 2000's

Figure AIII.4:

Number of publications in H2/FC end-user applications

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Annex III: Analysis of H2/FC RDE&D scientific publishing

STATIONARY In 1990s, the USA used to be the world leader in the number of publications. Americans published their research in conferences and many of those papers were authored or co-authored by persons from private companies. The impact of these publications was not very large and, indeed, Canada led if the impact factors were considered. After the year-thousand, Germany has been clearly the most prolific publisher of research on H2/FC stationary applications. Surprisingly, there is no publications from Japan in this area. TRANSPORTATION Europe is together with the USA the leading publisher in the world. Europe has increased its publishing activities in transportation applications statistically significantly more than any other region in the world. In Europe, Germany is the clear leader followed by England and France. KFA Julich GmbH is the leading publishing research organization. CNRS, Paul Scherrer Institute, Royal Institute of Technology and Imperial Collage belong to the top-10 publishers. The USA is together with Europe the leading publisher in the world. However, Europe has increased its publishing activities in transportation applications statistically significantly more than the USA has. On the other hand, American companies are statistically significantly the most active publishers in the world. They cooperate with research institutions statistically significantly more than private companies do elsewhere. Argonne National laboratory, Penn State University and Royal Military Collage belong to the top-10 publishers. Japan has published surprisingly little in the area. Indeed, South East Asian nations have published more than Japan has. However, they quite much behind Europe and the USA. The leading nation is Korea followed by Australia. University of New South Wales belongs to the top-10 publishers. PORTABLE USE Europe is number two publisher in the world together with Japan. However, as the Japanese have decreased their publishing, Europe has increased it with the same pace as the leading nation - i.e. the USA - has. The leading European nation in the field is Germany. Fraunhofer Institute belongs to the top-10 publishers. The USA is the leading publisher in the world. It has also increased its publishing activities in portable applications the most. Together with the Japanese corporations, American companies are the most active publishers in the world. University of South Carolina belongs to the top-10 publishers. Japan is number two publisher in the world together with Europe. However, most of the Japanese publications date back to 1990's. Quite significantly, almost all Japanese publications originate from companies. Sanyo Electric is the leading publisher in the field. As the business applications are now being realised, companies might have become reluctant to publish their R&D. There is very little publishing activity in the South East Asian nations in portable applications.

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Annex III: Analysis of H2/FC RDE&D scientific publishing

NATIONAL/REGIONAL CHARACTERISTICS IN APPLICATIONS The number of research papers concerning the various applications of H2/FC technologies has increased rapidly in the early 2000s. Most of the research papers on H2/FC applications focus on transportation but the share of papers characterising portable applications is increasing.
Table AIII.4: National shares of publications and impact factors in H2/FC applications
Asia (excl Japan) (%) South Korea (%) Switzerland (%)

Germany (%)

Denmark (%)

England (%)

Canada (%)

France (%)

Japan (%)

China (%)

Spain (%)

India (%)

Stationary Transportation portable

25 27 28 42 58 57 25 38

44 18 19 23 4 8 5 7 7 8 6 4 4 4 3 53 74 12

top row: publications in 2000s (percentage), bottom row: publications in late 1990s (percentage) left column: number of publications (percentage), right column: impact factor (percentage)

Europe is together with the USA the leading publisher in transportation applications. Europe has increased its publishing activities in the field statistically significantly more than any other region in the world. In portable applications, the USA is the leading publisher. It has also increased its publishing activities the most. Japan has published surprisingly little in transportation applications. Quite significantly, in portable applications almost all Japanese publications originate from companies.

SUMMARY AND DISCUSSION: TRENDS IN H2/FC RESEARCH PUBLICATIONS


The average impact factors of scientific publications wary quite remarkably from one field or a nation to another. The USA is the overall leader when it comes to the average impact of a publication. Anglo-Saxon nations do generally very well in the comparison, hence, the phenomenon might be partly due to cultural aspects. Indeed, the result of Japan and Germany may suffer from the fact that much of the research is published in local scientific journals that do not typically receive as high impact factors as the more global English-language ones. The South East Asian nations are not the leaders in the impact factor comparison but manage still fairly well (see Table AII.5).

USA (%) 4

Italy (%)

EU (%)

7 6 1 7 1 6 8 5 5 2 1 6 7

63 55 13 21 7 21 11 8 5 19 26 16 18 11

4 6 8 4

5 9 7 3 25 25 10 5 6 1 8 1 3 3 3 2

71 66 25 46 42 29 26 14 23 29 25 25 6 3 3 6 2 1

50 38

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Annex III: Analysis of H2/FC RDE&D scientific publishing Table AIII.5: Average impact factor in various H2/FC technologies and of the most important nations
Asia (excl Japan) South Korea Netherlands Switzerland Germany Denmark

Australia

England

Sweden

Canada 1.1 0.9 1.0

France

Japan

China

Spain

India

USA Steam reforming Electrolysis Gasification H2 Production Photocatalytic and Biochemical Production Thermochemical (nuclear) Pressurised gas Liquid H2 Storage Alanates Metal hydride Nanotubes SOFC PEM Conversion & Molten Carbonate Utilisation Direct Methanol AFC PAFC Stationary Applications Automotive (Transport) Portable Numer of fields where over average 2.2 1.5 1.8 1.2 0.3 0.8 1.1 1.2 1.2 3.0 2.5 1.6 0.7 2.7 1.1 1.5 0.4 1.6 1.2 13

Italy

EU

All

1.1 0.8 0.9 1.9 0.8

1.6

1.1 1.1 1.1 1.0 0.7 0.7 1.0

0.9 0.7 1.1 0.8 1.3 0.9 0.7 1.1 2.9 2.5 0.9 0.7 1.0 1.0 0.8 0.8 0.7 6

1.7 0.4 1.4 0.9

1.1 0.8 1.2 0.9 0.9 0.7 1.1 0.8 2.2 1.1 1.1 0.7 0.9 0.8 0.8 0.6 1.1 0.7 6

0.9 1.0 0.7

1.5 1.0 0.6 1.7

0.8 0.8 1.0 1.1

0.9 1.3 1.1 0.9

1.7 2.1 0.9

1.5 0.7

3.5

1.5

1.3 1.0 0.8 1.4

8.4 1.0 0.8

1.5 1.0 1.1 1.5

0.8 0.9 0.9 1.8 1.0 1.8 0.7 0.9 1.1 0.9 2.0 0.6 0.7 1.6 7 1.7 0.9 0.8 2.6 1.0 1.1 1.0 1.6 0.8 1.6 0.8 0.8 0.8 8 1.5 1.2 1.8 1.3 0.8 2.6 2.2 1.0 1.1 3.0 1.0 1.0 1.2 1.1 1.2 0.5 1.7 1.2 1.4 1.7 0.8 1.0 1.6 1.1 0.8 6 5 0.9 4 1.5 6

0.5 0.8 1.1 1.5 1.6 1.2 1.7 1.3 1.0 0.8 1.0 1.1 7

1.2 1.4 1.0 2.0 1.4 1.2 0.6 1.1 1.1 0.9 0.6 0.7 7

1.3 0.7 2.4 1.4 1.3

1.0 1.4 1.4 1.5

0.6 1.7 0.5 1.2 0.6

2.7 1.8 1.6 0.9 1.2 0.9 0.8 1.0 9

2.7

1.0 1.3 0.8 0.8 0.6

0.7

2.7 1.4 0.5 3

2.0 5

0.6 0.5 4

0.5 6

0.8 1.2 1.2 1.8 1.1 2.0 1.1 1.1 1.0 1.3 1.3 1.6 0.6 0.7 1.3 11

0.5 0.9 1.3 1.0 1.2 1.1

0.5 0.6 5

0.7 0.9 1.1 1.4 0.9 2.2 1.4 1.3 0.9 1.6 1.1 1.2 0.6 1.0 1.1

note: italics represents a field, where the nations average exceeds the general average

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Annex III: Analysis of H2/FC RDE&D scientific publishing

Publications in hydrogen production concentrate in 2000s on steam reformation. Electrolysis used to be as active a research area but is now declining. The USA is well presented in all major hydrogen production technologies: steam reforming, electrolysis and gasification. They do not necessarily publish as much as the Europeans and Japanese do but are able to publish their research in prestigious journals. This is clearly visible in hydrogen production by gasification. The USA is the leading publisher in electrolysis also. However, they are about to lose their leading position to Japan. The relative importance of Canadian research papers in steam reforming has decreased dramatically recently. Japan is a clear world leader in publishing photocatalytic and biochemical, and thermochemical hydrogen production research also. They are increasing their contribution to these technologies also. The number of publications devoting to various technologies to store hydrogen has increased rapidly during the last few years. Metal hydrides is the leading technology branch in hydrogen storage publications. China is clearly the most prolific publisher in the world. Both Korean and Indian organizations have published more in the field than organizations from any European nation. In liquid hydrogen storage, Europeans are number two publishers after the Americans. However, both Japan and South East Asian nations have increased their publishing effort in recent years much more that the European ones have. For example, during the last three years Chinese research institutions have published as much as the German ones, the former clear number two publisher in the world. The various nanotechnology-based storage solutions have attracted the highest increase in research volume. China is the leading research publisher in the world. Japanese companies are again statistically significantly the most active publishers in the nano-materials for hydrogen storages. In conversion, PEM fuel cells seem to be the hottest research area. The field has the highest number of publications. Percentual increase in the number of publications has been the highest also. The USA is the leading publisher. It has also increased its publishing activities in PEMFC statistically significantly more than any other region in the world. In Japan, there is a clear shift in the publications from solid oxide and phosphoric acid to PEM fuel cells. Japanese companies are relatively well represented in the publishing activities. Other interest areas in conversion seem to be SOFC and as an emerging field direct methanol fuel cells. Europe is the leading publisher of SOFC related research. The South East Asia is currently number four publisher in the world in the field. However, these nations are increasing their activities the most. For example, after the year 2000, China has published more SOFC related research than any European nation. In direct methanol related fuel cell research, Europe is the leading publisher of together with the USA. The number of research papers concerning the various applications of H2/FC technologies has increased rapidly in the early 2000s. Most of the papers focus on transportation but the share of papers characterising portable applications is increasing. Germany is the leading publisher of 175

Annex III: Analysis of H2/FC RDE&D scientific publishing

research on stationary applications. Europe is together with the USA the leading publisher in transportation applications. Europe has increased its publishing activities in the field statistically significantly more than any other region in the world. Japan has published surprisingly little in the area. In portable applications, the USA is the leading publisher. It has also increased its publishing activities the most. Quite significantly, almost all Japanese publications originate from companies.

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Annex IV: Analysis of H2/FC RDE&D patenting

ANNEX IV ANALYSIS OF H2/FC PATENTING IN THE EU, THE USA, CANADA, JAPAN, AUSTRALIA, CHINA, INDIA AND SOUTH KOREA ECONOMIC CO-OPERATION
Martin Wietschel (ISI) Philine Warnke (ISI) Ulrich Schmoch (ISI) Olutola Fakolade (ISI)

INTRODUCTION
Intellectual property in the form of patents is an important component of the commercial development of high-technology industries like hydrogen production and fuel cells and gives a good insight in the competitiveness of different regions or companies. Therefore a patent analysis was carried out to determine the competitiveness of Europe and its different MS compared to the other global competitors in the field of hydrogen production and fuel cells. After a short discussion of the pros and cons of using patent statistics, the patent analysis is described. The results and conclusions are then presented.

USE OF PATENT STATISTICS


Next to other forms of intellectual property rights like copyrights, trade marks and registered designs, patents play an extremely important role in the recognition and protection of an invention or idea. Once an organization has secured the intellectual property rights to an invention in the form of a patent, it can exploit the technology itself, or license the technology to third parties. Among others, financial institutions investing in technology developers see patents as an important indicator of progress. A large number of theoretical and empirical research studies28 show that patent analysis provides very useful information on the actual technology development, market relevance of technologies and future market development (in general there is a time delay of 2 to 10 years between patent registrations in a certain technology field and the establishment of production capacities);

See among others: Mansfield, Edwin, Patents and innovations: An empirical study, in: Management Science 1986; Pavitt, Keith, Uses and abuses of patent statistics, in: Van Raan, Anthony (Ed.), Handbook of quantitative studies of science and technology, Amsterdam 1988, pp. 509; Griliches, Zvi, Patent statistics as economic indicators: A survey, in: Journal of Economic Literature 1990, Nr. 4, pp. 1661; Chakrabarti, Alok K.; Scientific output of small and medium size firms in high-tech industries, in: IEEE Transactions on Engineering Management, Vol. 37, Nr. 1, 1990, pp 48.; Comanor, William S. und Scherer, Frederic M., Patent statistics as a measure of technical change, in: Journal of Political Economy, Vol. 77, 1969, pp. 392; Scherer, Frederic M., Corporate inventive output, profits and growth, in: The Journal of Political Economy, Vol. 73, Nr. 3, 1965, pp. 290.

28

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Annex IV: Analysis of H2/FC RDE&D patenting

the competitiveness of companies, regions or countries (there are strong correlations between patents and RTD&D-budgets, patents and innovations, patents and employment as well as patents and economic success).

However, some limitations can be identified when applying a patent analysis. Among others, not all inventions which are patent-relevant ultimately result in a patent registration. This may be due to a limited budget (patent preparation and registration can be expensive), danger of imitations, secrecy of research work, market power and/or speed of technological progress. But it should be stressed that the majority of inventions (around 80 %) result in patents. Another limitation of the patent analysis is the time lag between the invention, patent registration and availability of patent data in the various databases so that very recent, up-to-date information is not available.

DESIGN OF THE PATENT ANALYSIS


The analysis within this project covers World Patents (WO, World Intellectual Property Organisation) and European Patents29 (EP, European Patent Office) in the time periods 19902002 for EP patents and 1997-200230 for WO patents. The analysis covers all EU-Member states (EU-15), USA, Japan, Canada, Australia, Korea, China, and India. The analysis focuses only on WP and EP patents and not on national patents for various reasons. The WO patents have a very wide international recognition and significant value in their own right (foreign patent application is expensive, whereas an application for most of the national patents is comparatively cheap). The EP patents also enjoy international recognition, many non-EU organisations apply for EP patents and a significant value in their own right (foreign patent application is expensive). Including EP patents can lead to an overestimation of patents from European organisations. However, comparison with other studies shows that this has no significant influence on the results. All published WO and EP patents are selected not only those granted to identify recent developments. Analysis shows that geographic distribution or technology trends do not differ between granted and non-granted patents. Patents are sorted based on the European Classification (ECLA) and International Patent Classification (IPC). If direct classification to a hydrogen subsystem/technology is not possible, headword research is used additionally. The number of patents for ICE also includes hydrogen tank systems and other apparatus which may also be used for fuel cell propulsion systems.

RESULTS AND CONCLUSIONS FOR THE GEOGRAPHIC DISTRIBUTION OF HYDROGEN PATENTS


The geographic distribution of the total number of hydrogen patents in the world (including hydrogen production, distribution, storage and fuel cells) can be seen in Figures 23 and 24. Since 1996, a dramatic increase in worldwide patent activities is identifiable. The USA, Japan and EU lead and produce similar numbers of patents per annum. Germany accounts for the major share of the EUs patents (approx. 90 %), although patent activity has decreased recently, followed by the UK (4 %) and Canada (4 %). Denmark, France and the Netherlands as well as Australia and
29 30

Patent database: World Patents Index (WPI) and German Patent Database PATDPA. Patents are only available until June 2002. For the period up to December 2002, the number of patents is estimated on an econometric basis.

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Annex IV: Analysis of H2/FC RDE&D patenting

Korea (Republic) also have relevant patent activity. All other countries analysed have not made more than 10 patent applications in the last 12 years.

180 160
EU15 Japan Australia China USA Canada India Korea (Republic)

Number of patents

140 120 100 80 60 40 20 0

Figure 26

160 140

Number of patents

120 100 80 60 40 20 0

Figure 27

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02

Year
Geographic distribution of hydrogen patents worldwide
USA Germany France Belgiun Spain Ireland Italy Netherlands Sweden Japan UK Austria Denmark Finland Greece Luxembourg Portugal

Year
Geographic distribution of hydrogen patents - EU-MS and selected countries

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Annex IV: Analysis of H2/FC RDE&D patenting

RESULTS AND CONCLUSIONS FOR TECHNOLOGY TRENDS IN HYDROGEN PRODUCTION


Most hydrogen production patents are for steam reforming (the majority and the most significant ones in the EU and Japan) and partial oxidation (US lead), electrolysis and gasification play a minor role (see Figure 25). German companies have the largest number of patent applications for steam reforming (36 % of all patents in the last 12 years), followed by Japan (26 %), and the USA (14 %) (see Figures 26 and 27). However, the leading role of the EU-15 in the field of steam reforming is not only based on patent activities in Germany, but also on patent activities in the UK and Denmark. Germany and the USA focus more on the gasification of coal and biomass than Japan. The US is the leading country for partial oxidation patents, but the Netherlands also show remarkable patent activities in this field.
60,00 50,00 40,00 30,00 20,00 10,00 0,00
00 97 94 91 90 92 93 95 96 98 99 01 20 19 19 19 19 19 19 19 19 19 19 20 20 02

Steam reforming Partial oxidation Gasification Electrolysis

Number of patents

Year
Figure 28 Technology trends in hydrogen patents for H2 production development over time

180

Annex IV: Analysis of H2/FC RDE&D patenting

160

Number of patents

140 120 100 80 60 40 20 0

Steam reforming Partial Oxidation Electrolysis Gasification

Au st ra lia

(R

Figure 29

Technology trends in hydrogen patents for production geographic distribution worldwide (1990-2002)

100 90 80 70 60 50 40 30 20 10 0

Number of patents

S Ja A G pa er n m a Au ny s Be tria lg D ium en m ar Sp k a Fi in nl a Fr nd an Ire ce la nd

Figure 30

Technology trends in hydrogen patents for production geographic distribution for EU-MS and selected countries (1990-2002)

G UK re ec e Lu xe Ita m N bo ly et he urg rla Po nds rtu Sw ga ed l en

Ko re a

Steam reforming Partial Oxidation Electrolysis Gasification

an ad a

Ja pa n

EU 15

In di a

hi na C

ep .)

SA

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Annex IV: Analysis of H2/FC RDE&D patenting

RESULTS FOR TECHNOLOGY TRENDS IN FUEL CELLS AND ICE


The PEMFC is the most important technology worldwide; the share of patents for PEMFC has increased significantly especially in recent years (see Figure 28). Whereas at the beginning of the 1990s the SOFC was the leading technology, this now takes second place. Japan plays a leading role in patents for fuel cells (33 %), closely followed by the US (30 %) and the EU-15 (30 %), but Germany alone has 18 % (see Figures 29 and 30). Japan focuses more on one technology (PEMFC), whereas the US and the EU-15 have a broader research approach. In the USA, there are the same numbers of patents for PEMFC and SOFC, whereas Japan and the EU-15, including Germany, focus more on PEMFC. The US followed by the EU-15 (Germany) has a dominant role in patents for DMFC. Patents for ICE (internal combustion engine) are insignificant compared to fuel cell patents. The EU-15 and Germany are the leading regions for ICE research.

140 120 PEMFC SOFC DMFC ICE AFC + PAFC MCFC

Number of patents

100 80 60 40 20 0

Figure 31

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02
Technology trends in hydrogen patents for fuel cells and ICE development over time

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Annex IV: Analysis of H2/FC RDE&D patenting

250
PEMFC

Number of patents

200 150 100 50 0

SOFC DMFC AFC + PAFC MCFC ICE

Au st ra l ia

) (R ep .

Figure 32

Technology trends in hydrogen patents for fuel cells and ICE geographic distribution worldwide (1990-2002)

250
PEMFC

Number of patents

200 150 100 50 0

Figure 33

US Ja A G pa er n m a Au ny s Be tria lg De ium nm ar Sp k a Fi in nl a Fr nd an Ire ce la nd U G K re ec e Lu xe Ital y Ne mbo th ur er g la Po nds rtu Sw gal ed en


Technology trends in hydrogen patents for fuel cells and ICE geographic distribution for EUMS and selected countries (1990-2002)

Ko re a

SOFC DMFC AFC + PAFC MCFC ICE

C an ad a

15

Ja pa n

C hi na

EU

In di a

U S

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Annex IV: Analysis of H2/FC RDE&D patenting

There have been other patent analyses carried out for fuel cells in the past31, but patent analyses for other hydrogen subsystems were not found. One possible reason is that the analysis is more complex and costly due to the lack of clear patent classifications in these fields. Differences in the results can occur due to the patent search strategy applied, e.g. the selected database (international and/or national patents), the chosen time schedule and the analysis of published patents or granted patents only. However, when looking at the different patent analyses for fuel cells, generally the results obtained are more or less comparable.

ADDITIONAL RESULTS
The number of identified patents in other hydrogen subsystems (distribution and storage) is limited. No conclusions can be drawn on the basis of this database. The only insight obtained is that Canada seems to dominate patent applications in the field of hydrogen storage in metal hydrides. The average number of patents per company does not vary significantly between the leading countries (US, Japan, Germany, and Canada). However, clearly leading companies can be identified in some technology fields: Steam reforming (Ballard Power Systems AG, Canada/Germany, with 36 patents of total 263 patents, average number of patents per company: 2.858). Partial oxidation (Shell, Netherlands, with 18 patents of a total 88 patents, average number of patents per company: 2.838). PEMFC (Matsushita Systems, Japan, with 62 patents of total 593 patents, average number of patents per company: 2.837). In the other technology fields the situation is more balanced. Looking at the overall number of patents, the following companies are in a prime position: Matsushita Industrial Co. (Japan, 117), Ballard Power Systems AG (Canada/Germany, 89), Toyota (Japan, 52), Nissan (Japan, 52) and Siemens AG (Germany, 43).

CONCLUSIONS
The patent search reinforces the view that EU hydrogen and fuel cells RTD&D is dominated by German activity and is competitive with the US and Japan. However, patent activities in Germany have recently been declining. In Japan, the research activities are more focused on the PEM fuel cell, which seems to be the most promising one from a short-term perspective if patent activity is chosen as the indicator for market relevance. For the PEM, Japan is or can become a global leader. In the US and the EU broader patent activities can be identified, which may offer
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(1) (2) (3) (4)

Analysed fuel cell studies Barret, S. (ed.): Fuel cells R&D and intellectual property, in: Fuel Cells Bulletin, August 2002 Seymour, R.; Matthey, J.: Fuel cell market survey: patents, a rich vein of knowledge, in: Fuel Cell Today, February 2004 Results of the EU Fhirst project, not yet published Wengel, J.; Schirrmeister, E.: Fuel cell innovation in Germany, in: International conference on innovation in energy technologies, Washington DC, September 2003 .

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Annex IV: Analysis of H2/FC RDE&D patenting

the possibility to develop different kinds of fuel cells in parallel and to identify the most appropriate type of fuel cell in a medium- or long-term view. The right time for the selection of a technology type is still an open question. Compared to R&D projects and budgets as well as publications, the electrolysis doesn't play such an important role as a technology for hydrogen production in the patent ac-tivities. Here, the viewpoint of industry with its focus on economic aspects and short-term market relevant registrations differs from the viewpoint of political and administration decision makers, who regard electrolysis as a very promising option. Steam reforming seems to be the most important option for hydrogen production and the EU is in a good position compared to its main competitors (US and Japan).

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