1. Market Update & Business Opportunities:
Japan’s Fuel Cell & Hydrogen Market
U.S. Commercial Service – Tokyo
Takahiko Suzuki – Senior Commercial Specialist
US Commercial Service - Japan

2. Japan’s Strategic Road Map For Hydrogen & Fuel Cells
Council for Strategy for Hydrogen & Fuel Cells established by METI
Phase 1: now
Phase 2: mid-2020s
Phase 3: by 2040
Full-fledged introduction of hydrogen power generation
Establishing a large-scale hydrogen supply system
Expanding the scope of FC technology
(2014 – 2025)
Establishing a CO2-free hydrogen supply system
What we cover today: Residential Fuel Cell (Ene-Farm), Industrial Fuel Cell (SOFC),
Fuel Cell Vehicle (FCV), Hydrogen Refueling Station, Production & Transportation of
Hydrogen
Source: Ministry of Economy, Trade and Industry (METI), Government Of Japan (GOJ)
US Commercial Service - Japan

3. Why Fuel Cells in Japan?
Fuel Cells have good environmental characteristics
Fuel Cells are utilized as distributed power generation
Fuel Cells have power to pave the way to a “hydrogen energy society”
US Commercial Service - Japan

4. Composition of How Electricity is Generated (FY 2012)
Renewable 1.6%
Nuclear 1.7%
Hydro
8.4%
Oil 18.3%
Coal 26.7%
LNG 42.5%
US Commercial Service - Japan

5. History of FC Development (Japan)
1960 Companies conducted individual research on FC (-1965)
1978 Sunshine Project: GOJ’s first national R&D FC project
1981 Moonlight Project: GOJ launched systematic FC research
1983 TEPCO succeeded in generating 4,500 kW PAFC plant
1987 Moonlight Project: GOJ generated 2 X 1,000 kW PAFC plant
1991 TEPCO demonstrated 11,000 kW PAFC plant
1992 R&D on PEFC for FCV began (Sunshine Project)
1993 NEDO undertook the above R&D (New Sunshine Project)
1994 NEDO generated 2 large PAFC power plants
2000 NEDO conducted “FC Infrastructure Millennium Project” (-2004)
2002 Verification study of residential FC (-2004)
2002 JHFC Project (-2005)
2005 Large-scale demonstration tests of residential FC (-2008)
2006 JHFC2 Project (-2010)
2009 Residential FC co-generation system “Ene-Farm” began its sales
2011 JHFC3 Project (-2015)
2013 NEDO project: SOFC field test for commercial use
2013 NEDO project: Hydrogen Utilization Technology Development (-2014)
2013 NEDO project: Technology R&D for PEFC Commercialization (-2014)
2013 NEDO project: Technology R&D for SOFC Commercialization (-2014)
2013 “Ene-Farm Partners” established (105 member companies)
US Commercial Service - Japan

6. Japan’s New Basic Energy Plan (April, 2014)
Japan aims to materialize a “Hydrogen Society”
Japan is committed to construct the whole
supply-chain of hydrogen
Expansion of residential “Ene-Farm”
Laying out infrastructure to promote FCV
New technology development (e.g. hydrogen power generation)
Promotion of manufacture, storage, and transportation of hydrogen
Japan will draw up “Roadmap to Hydrogen Society (by 2030)”
Source: GOJ
US Commercial Service - Japan

7. Types of Fuel Cells US Commercial Service - Japan Fuel Cell Type
アルカリ形燃料電池
りん酸形燃料電池
固体高分子形燃料電池
溶融炭酸塩形燃料電池
固体酸化物形燃料電池
Alkaline Fuel Cell
Phosphoric Acid
Fuel Cell
Polymer Electrolyte
Molten Carbonate Fuel Cell
Solid Oxide Fuel Cell
(AFC)
(PAFC)
(PEFC)
(MCFC)
(SOFC)
Common Electrolyte
（電解質）
Aqueous solution of potassium hydroxide soaked in a matrix
Phosphoric acid soaked in a matrix
Perfluoro sulfonic acid
Solution of lithium, sodium, and/or potassium carbonates, soaked in a matrix
Yttria stabilized zirconia
水酸化カリウム (KOH)水溶液
りん酸(H3PO4)水溶液
高分子膜（パーフルオロスルフォン酸膜）
溶融炭酸塩 (Li2CO3 + Na2CO3)
安定化ジルコニア (ZrO2・Y2O3)
Type of Ion that moves through Electrolyte (Moving Direction) 電解質の中を移動するイオン（移動の方向）
Hydroxide Ion (OH-)
Hydrogen Ion (H+)
Carbonate (CO3 2-)
Oxide Ion (O2-)
(Air Electrode → Fuel Electrode)
(Fuel Electrode → Air Electrode)
Operating Temperature
60℃～90℃
Approx. 200℃
70℃～90℃
650℃～700℃
800℃～1000℃
Fuel　（燃料）
Pure Hydrogen
Hydrogen
Hydrogen; Carbon Monoxide
Usable Original Fuel (Raw Material)
使用可能な原燃料
By-Product Hydrogen by electrolysis industry; Hydrogen obtained by electrolysis
Natural Gas; LPG; Methanol; Naphta; Kerosene
Natural Gas; LPG; Methanol
Natural Gas; LPG; Methanol; Naphta; Kerosene; Gasficiated Coal
Output (results in Japan)
1-10kW (in 1960s); 1kW (Moonlight Project in 1984)
50kW, 100kW, 200kW, 500kW, 1,000kW
1kW - 100kW
1,000 kW Plant 200kW; 300kW; 750kW (Stack Modules)
1kW; 5kW; 15kW; 25kW
Generation Efficiency (LHV)
50-60% (Pure Hydrogen / Pure Oxigen)
35-45%
30-40%
45-60%
50-65%
Applications
Space, Military, Marine
CHP; Distributed Power
Automobile; Transportation; CHP; Distributed Power
Thermal Power Plant; Large-Scale Distributed Power; Offices; Factories
Residential CHP; Distributed Power
US Commercial Service - Japan

8. Japan’s Fuel Cell Market Projection
Unit: US$ million
Japan’s “3 Arrows” in FC growth:
“Ene-Farm”
FCV
Hydrogen Supply Chain
Source: Marketing Data Bank (2011)
US Commercial Service - Japan
US Commercial Service - Japan

9. Hydrogen Global Market Projection
(Billion US$)
$ 71 billion
$ 225 billion
$ 51 billion
Total: $ 370 billion
FCV and Residential FC are driving forces
Source: Nikkei BP Clean Tech Laboratory
US Commercial Service - Japan
US Commercial Service - Japan

10. Japan’s Fuel Cell Market Projection
Source: Marketing Data Bank (2011)
US Commercial Service - Japan
US Commercial Service - Japan

11. Fuel Cell Market by Application
Residential Fuel Cell
Portable Fuel Cell
Fuel Cell Vehicle
Industrial Fuel Cell
US Commercial Service - Japan

12. Fuel Cell Market by Application
Source: Marketing Data Bank (2011)
US Commercial Service - Japan

13. Ene-Farm: Residential Fuel Cell
Manufacturer
Aisin
JX Energy
Panasonic
Toshiba
Type of Fuel Cell
SOFC
PEFC
Sales Company
Toho Gas
Tokyo Gas
Osaka Gas
Rated Output
700W
750W
Water Capacity
90 ℓ
147 ℓ
200 ℓ
Water-Supply Temperature
70℃
60℃
Efficiency
Rated Power Generation (LHV)
46.5%
45.0%
39.0%
38.5%
Overall Rated (LHV)
90.0%
87.0%
95.0%
94.0%
Durability
10 Years
(90,000 hours, continuous)
(60,000 hours, DSS)
(80,000 hours, SS)
US Commercial Service - Japan

14. Residential FC: Market Projection
Number of Unit
(Accumulated)
Japan plans to install 1.4 million units by 2020
Source: Nomura Research Institute (2014)
US Commercial Service - Japan

15. Residential FC: Unit Price Projection
Large Scale Validation
Market Creation
with GOJ Policy Support
Establishment of
Self-Reliant Market
(US$)
GOJ Subsidy begins
GOJ Subsidy ends
Source: METI, Nomura Research Institute (2014)
US Commercial Service - Japan

16. Portable FC Market expected to emerge: $164 million (2020)
Source: Fuji Economic Institute (2014)
US Commercial Service - Japan

17. Advantages of Fuel Cell Vehicles (FCV)
HV, PHV EV
Vehicle Model EV
FCV
FC Bus
Power Supply Time to Gymnasium
5 hours
(16-24 kWh)
1 day
(120 kWh)
4-5 days
(460 kWh)
Source: Toyota Motors, GOJ
US Commercial Service - Japan

18. FCV Manufacturers (Alliance & Plans)
2013
2014
2015
2016
2017
2018 ～
Source: Nikkei
US Commercial Service - Japan

19. Hydrogen Refueling Stations (Current)
17 locations
10 locations
15 locations
13 locations
Additional 14 locations have been
selected (June 23, GOJ)
Source: METI, GOJ
US Commercial Service - Japan

20. Hydrogen Refueling Stations (Development Plans)
100 locations ( )
Installed on highways
4 major urban areas
100 locations by 2023
100 locations by 2017
43 locations by 2015
Source: METI, GOJ
US Commercial Service - Japan

21. System Flow Chart of Hydrogen Supply
City Gas
Hydrogen Refueling Station
Hydrogen Reforming Unit
Compressor
Accumulator
Hydrogen Dispenser
Hydrogen Dispenser
Compressor
Pre-Cooling
Accumulator
Source: HySUT
US Commercial Service - Japan

22. 2 Types of Hydrogen Stations
[ Off Site Hydrogen Refueling Station ]
Hydrogen Shipping Plant
Hydrogen Refueling Station
Refining
Accumulate
Accumulator
High Pressure
Transport
Trailer
Storage
Hydrogen
Reforming
Compress
Charge
Compressor
Dispenser
[ On Site Hydrogen Refueling Station ]
Hydrogen Refueling Station
Raw Fuel Production (Oil Refinery)
Hydrogen Reforming
Transportation
Accumulator
Natural Gas
Naphtha
Methanol
Compressor
Dispenser
Source: HySUT
US Commercial Service - Japan

23. GOJ: Deregulation & Subsidies
Material Restrictions
Location Restrictions
Operation Restrictions
Need to develop safety inspection criteria
Relaxation of “Design Count”
More materials to be allowed (e.g. piping)
Compound vessel to be allowed for
accumulators
Need to develop criteria for 70 MPa stands
Need to develop criteria for urban-restricted area
Abolish upper limit of volume of hydrogen
Need to develop criteria for liquid hyd stations
Study on self-service filling
Relaxation of restrictions on charging
pressure (Full filling)
Transportation Restrictions
Relaxation of vessel pressure; new safety valve
Travel Distance Restrictions
Need to establish inter-equipment distance where CNG stands coexist
Gasoline dispenser needs to be installed along with hydrogen dispenser
Needs to build explosion-proof standards around dispensers
Other Restrictions
Need to develop criteria for public filling
Source: METI
US Commercial Service - Japan

24. Cost Structure of Hydrogen Refueling Stations
Compressor
Pre-cooling equipment
Current Cost: US $ million
Hydrogen Vessel
Valve
Hydrogen Manufacturing Device
Japan aims at halving the cost
Source: METI
US Commercial Service - Japan

25. FCV: Forklifts & Buses Demonstration Project in Kitakyushu City
Kansai International Airport (KIX) Project
3 demonstration projects
completed in 2012
Source: Toyota, HySUT
US Commercial Service - Japan

26. Industrial FC: Commercialization (SOFC) in 2017
Source: Fuji Electric, Bloom Energy, NTT DoCoMo
US Commercial Service - Japan

27. Hydrogen Production Stage of Utilization Stability CO2 Emissions
Economy
Byproduct Hydrogen
Commercialized
Depending on the original product
Emits CO2 but bears no additional environmental load
Good economic value because of the byproduct
Fossil Fuels Reforming
Good
Emits CO2, unless CCS is used
Relatively low production cost
Water Electrolysis (Thermal Electric)
Emits CO2 when generating power, unless CCS is used
Higher than Fossil Fuels Reforming, yet relatively low cost
Water Electrolysis (Renewable Energy)
Technologically established, yet high cost of renewables
Output fluctuations depending on the power source
No CO2 emissions
High cost because of the use of renewables
Biomass
Technologically established, yet high cost
Supply locations are dispersed
Almost no CO2 emissions
Currently high cost
Thermal Decomposition
Research & development
Depending from where it gets heat
n/a
Photo catalyst
Basic research (current conversion rate: 0.5%)
Depending on the weather conditions
Source: METI, GOJ
US Commercial Service - Japan

28. Hydrogen Storage & Transportation
Overseas
Organic
Hydride
Hydrogen Station
City Gas, LPG
LNG Terminal
Fossil Fuel
(Oil Field Gas,
Brown Coal)
Pipelines
Oil Factories
FCV
Compressed
Hydrogen
Renewable Energy
Distributed Power Supply
Hydrogen Power
Generation
Liquid Hydrogen
Liquid
Hydrogen
Byproduct Hydrogen
Organic Hydride
Source: METI
US Commercial Service - Japan

29. Hydrogen Storage & Transportation
High Pressure Gas
Liquid Hydrogen
Pipeline
Organic Hydride
Hydrogen Absorbing Alloy
Method
Compress into cylinders
Liquefy & store at minus 253℃
Transport in gaseous form in pipes
Convert into methylcyclohexane through reaction with toluene
Use a hydrogen atom absorbing alloy
Status
Commercialized and distributed in Japan
Commercialized and distributed in Japan (e.g. rocket fuels)
Not yet commercialized. It is possible to transport a large volume of hydrogen.
Not yet commercialized. It is possible to store and transport hydrogen at normal temperature and pressure.
Not yet fully commercialized. It is possible to store and transport more hydrogen per volume.
Merits &
Challenges
R&D is still required to further cost reduction of compressors and storage cylinders.
High storage density.
A large amount of energy is required for liquefaction.
Japan has limitation to apply pipelines.
A large infrastructure investment is required.
Technology has been established. It is possible to use conventional chemical tankers and transport ships.
Heavy weight of alloy. Applications are limited to submarines and submersible vessels.
Companies
Taiyo Nippon Sanso
Kawasaki Heavy Industries; Iwatani Corporation
Nippon Steel & Sumikin Kikoh Company
Chiyoda Corporation; Mitsubishi Kakoki Kaisha
The Japan Steel Works
Source: METI
US Commercial Service - Japan

30. City Projects Kitakyushu Hydrogen Town
Kawasaki Energy Frontier: Kawasaki City, Chiyoda Cooperation
KIX
(Kansai International Airport)
Hydrogen Grid
(Osaka)
Source: METI
US Commercial Service - Japan

31. Market Update & Business Opportunities:
Japan’s Fuel Cell & Hydrogen Market
U.S. Commercial Service – Tokyo
Koji Sudo – Senior Commercial Specialist
Misa Shimizu – Commercial Specialist
US Commercial Service - Japan