2. 1 SEF H 2 Presentation Materials Earl R. Beaver – February 10, 2005 UK: China:Chris Raczkowski Benelux: Eindhoven Univ. Australia: Piney Lakes Environment Centre - C. Daey Ouwens

3. 2 ProductionStorageDistributionConversionOther* R&D South-West Electrolysers University of Glamorgan Hydrogen Solar Imperial DSTL Accentus Birmingham University BOC Air Products Warwick University Strathclyde Imperial Univ. of Glamorgan Qinetiq Intelligent Energy Eneco Carbon Trust DTI EPSRC Component manufacture Ineos Chlor Intelligent Energy Microponents BOC Air Products Accentus BOC Air Products NGT Johnson Matthey Qinetiq Intelligent Energy Eneco Carbon Trust DTI Conduit Ventures AWM WDA System manufacture BOC Air Products Foster-Wheeler Johnson Matthey BOC Air Products Qinetiq BOC Air Products Gastec Intelligent Energy Voller Energy Carbon Trust DTI Conduit Ventures WDA End-user BP Shell Corus BP Shell BOC Air Products BP Shell London Buses AMEC FC Applications Facility (Teesside) EST One NE, YF, WDA E4tech London H2 Partnership Services Air Products BOC BP Shell BOC Air Products FC Applications Facility Teesside BOC Air Products Intelligent Energy Element Energy SiGen DTI DfT Carbon Trust E4tech TTCorp Enablers (e.g. info., standards, education, training) Air Products HSE H2Net HSE BSI BCGA TTCorp HSE FC Applications Facility (Teesside) Fuel Cells UK FC Applications Facility (Teesside) Eneco SHFCA IMechE, RAEng, IChemE LIFE-IC IPPR Selected United Kingdom actors in hydrogen energy *‘other’ includes finance, regional and national government projects, consulting, etc. This is not comprehensive Large/ influential organisations shown in bold

4. 3 Internationally, several countries have well-developed support mechanisms for hydrogen energy Examples of support mechanisms Network or association R&D programme Infrastructure funding Fiscal incentives Mandated purchase USA NHA (H 2 ) DoE NSF DoD DoE State Federal State California ZEV Japan HESS (H 2 ) NEDO METI/NEDO National government no Canada CHA (H 2 ) NRC NRCan Federal Provincial no Italy H 2 IT (FC & H 2 ) ENEA National Regional National Regional no France AFH 2 (H 2 ) CEA no Norway Norsk H 2 Forum (H 2 ) in development* no Germany DWV (H 2 ) Regional no *”National Hydrogen Commission” currently working on these areas Not all programmes are shown

5. 4 Need for a clear, credible strategic framework for hydrogen energy in the UK Government Departments think hydrogen is important but different departments have different priorities –Climate change – to meet 60% CO 2 reductions, hydrogen makes the target potentially more attainable –Particularly true for transport CO 2 emissions which currently appears to be the most intractable to solve –Security of supply and “UK plc benefits” are also important considerations for some –Links to CO 2 sequestration were mentioned by a couple of interviewees –An overall position which balances the differing views would enable resources to be focused appropriately A proactive Government role is needed –‘Do nothing’ has ceased to be an option –Officials aware of significant activity levels in other countries –All aware that UK funding is small Hydrogen is potentially extremely significant – increases diversity of supply (particularly transport) and can be a non-C energy vector USA spending of large amounts of money will generate confidence with industry and probably prove to be successful Modelling of 60% CO 2 reduction shows post-2020 need for hydrogen in transport sector Momentum behind hydrogen in USA means that UK needs more than watching option It is tempting to think that Government should have a strategy on everything, but hydrogen is big enough and important enough

6. 5 21 non-Government stakeholders in UK Stakeholder typeOrganisationPerspective Industry BPEnergy supply ShellEnergy supply BOCIndustrial gases Air ProductsIndustrial gases Intelligent EnergyLow temp FC Rolls RoyceHigh temp FC SiGenLow temp FC integration AMECSystems deployment Element EnergyRenewable H2 systems EnconsultHydrogen systems (Anonymous)Stationary power Research Birmingham UniversityStorage Glamorgan UniversityBio hydrogen Strathclyde UniversityScottish FC and H2 apps Users ‘Teesside’H2 deployment Yorkshire ForwardH2 deployment London H2 PartnershipH2 deployment Support institutions Fuel Cells UKFC industry association H2NetH2 academic/industry network Conduit VenturesVenture Capital CoreTec VenturesVenture Capital

7. 6 What would a UK hydrogen association do? To bring forward the commercialisation of hydrogen energy in the UK Be a forum and contact point for its members on hydrogen energy Be a network for members to keep up to date with industrial and research developments Build consensus around priorities and influence Government policies and programmes accordingly Act as a clear and convincing advocate with Government, the media and international bodies Act as a bridge to international hydrogen energy activities Contribute to the development of hydrogen safety codes and standards in the UK and which are consistent with international standards Contribute to education and outreach activities to prepare the UK market and public opinion Offer advice and information to its members on existing activity and research opportunities in the hydrogen sector Represent the members of the association and maintain strong relationships with other associations having similar interests At this stage, the role would not extend to other “traditional trade body” activities such as advice on legal, taxation, contractual and employment matters, or endorsement of products and services Recommended Role of the Association Recommended Vision for the Association

8. 7 China’s Energy Situation China second largest consumer of energy globally –China now second largest importer of oil (41% projected for 2004) Demand growth is well above expectations –Shortage in generation capacity and transportation bottlenecks –Massive capacity expansion program announced –Energy consumption to double by 2020 Transportation market exploding Energy intensity per unit of GDP (PPP basis) very high –Efficiency improving but not fast enough IEA, 2004

9. 8 China’s Energy Situation (cont’d) Environmental degradation is becoming a national priority –China has 9 out of the 10 top most polluted cities in the world –International commitments – China 2 nd largest GHG emitter –UNEP Director: “China’s economic goals ‘environmentally unachievable’” due to resource constraints –Fuel efficiency standards, emissions standards, LNG buses and taxis China still highly dependent on coal >70%, mining costs increasing Oil and gas resources are limited; Government is looking to diversify energy supply for economic, environmental and security reasons –LNG, purchasing of overseas assets –Renewables, other alternatives (Total installed capacity : 385 GW) Coal Nuclear 1.6% Hydro 24% Gas 0.2% RE 0.2% China’s Energy Mix

10. 9 Drivers for Sustainable Energy in China Huge need for new energy resources to feed economic growth Diversification from traditional fossil fuel due to local and global resource constraints (energy security) Increasing environmental awareness China central government preparing roll out of critical policy support Increasing localization of world class sustainable energy technology capabilities in China (especially Wind and PV)

11. 10 Shell International, People & Connections - Global Scenarios to 2020, 2002. Global Forecast for Renewable Energy – Medium Term

12. 11 4 H27 Geothermal 2 Natural gas 1 Nuclear 3 IGCC9 Small hydro 5 PV8 Solar thermal 6 Wind China International R&D Introduction Growth Decline Maturity Total sales 3472 1 9586 37 1 958624 Sustainable Energy Stages of development of in China

13. 12 International: Hydrogen energy has attracted significant attention internationally. Billions of dollars are being spent annually on hydrogen and fuel cell development. Hydrogen is expected to be used in fuel cells as well as in combustion engines and turbines. Hydrogen can be generated from fossil fuels or from renewable energy processes. China: Considerable interest in hydrogen technology; most activity is in research papers and laboratory tests. China requires involvement from leading international experts and companies to quickly develop local capabilities. China’s demands for new energy supply make it the most efficient location for new infrastructure required to support hydrogen and fuel cells. Hydrogen is not an energy source... it is an energy carrier. Some support development of hydrogen technologies, as a potential replacement for oil & natural gas over the next 50+ years. Hydrogen - China

14. 13 The Netherlands Considerations Which option is sustainable ? –Solar cells ? –Hydrogen in Fuel cells in cars? –Carbon dioxide sequestration? –Bio diesel from rape seed? –Co-combustion of wood in coal power plants? –Nuclear energy??? Is sustainability possible? Yes we can choose; CO 2 free Can we “predict” future energy supply? No

15. 14 Hydrogen: an option? Two main lines of production Biomass: hydrogen (or “green” liquids or SNG) Fossil fuels: hydrogen and CO 2 storage CO 2 sequestration ; do we accept it?? NIMBY (Electrolysis: too expensive) First convert by gasification to get syngas; CO and H 2

16. 15 Hydrogen as a choice Hydrogen problems Production Storage Transport End-use; change in infrastructure As a consequence: expensive

17. 16 Applications: Hydrogen Hydrogen in cars - compressed, methanol, petrol, liquid? - fuel cell (weight, reliability, cooling, use at low temperature, cost)? - overall efficiency (well to wheel) Hydrogen in Natural Gas system - mix it with Natural Gas (10 %?)

18. 17 Other Choices - Netherlands Based on gasification Green diesel; Fischer-Tropsch (based on biomass and Narural Gas (not CO2 free) Synthetic Natural Gas (based on biomass) By fermentation Ethanol (petrol) - from food crops (sugar beet) now; woody materials in future

19. 18 Other Choices - Netherlands Bio diesel - from rape seed - from jatropha and pongamia (Developing Countries) Gas from anaerobic digestion In the future: Solar (solar cells (PV)), Wind and…. ????

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21. 20 The Netherlands Conclusions Is the introduction of Hydrogen sustainable yet (cheap, clean and socially acceptable)? Not so sure; change in infrastructure is expensive. Hydrogen from coal and oil and NG; do we accept CO 2 sequestration? Hydrogen from biomass; more attractive to make green liquids (diesel and ethanol) and SNG? Do we need Hydrogen for a sustainable energy supply? No Will we introduce (use) it? Maybe

22. Objectives: To offer a credible source of information and focal point pertaining to hydrogen technology To promote inter-disciplinary discussion of hydrogen technology and research To assist in the promotion of Australian hydrogen projects and studies To demonstrate hydrogen technology to the Australian community To encourage hydrogen energy studies in educational curricula Mission statement: “To promote the responsible development of hydrogen energy”

23. 22 Hydrogen Drivers climate change local air pollution security of energy supply fuel cells/hybrids development

24. 23 “The future is unclear... Hydrogen and fuel cell technologies are very promising…. I’m very optimistic...to play a significant role in the energy industry in the coming decades. Shell believes in hydrogen and is putting its money on the table...a significant investor... willing to invest further as opportunities arise. We must be open and transparent. There is no other choice if we want to be credible.” Jeroen van der Veer President, Royal Dutch Petroleum Company

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26. Hydrogen Energy System End-use Renewables Biological Pipelines Delivery and handling Production Transport: land, sea and air Fossil fuels Land and tanker transport Terminals Power: Industrial, commercial and residential Storage

27. Hydrogen Versatility working fluid of both forward and reverse heat engines a source of hydrogen ions for fuel cells a promising energy transmission and storage medium Usage cook our food heat and cool our houses run all electrical appliances run all of our transport vehicles fuel our boilers equally applicable in rural, remote and urban centres

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29. 28 Automobiles Power Generation Fleet Vehicles Home Combined Heat & Power

30. 29 Hydrogen distribution

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32. 31 Hydrogen Storage

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34. 33 Nanotechnology Opportunities

35. Hydrogen Energy Barriers Containment/handling Low volumetric energy density High costs for hydrogen production Expertise in system integration “Life-cycle” analysis or “Well-to-wheel” analysis Externalities: health, waste management

36. Hydrogen Barriers (non-technical) Perceptions of new technology “Hydrogen technology” versus “Hydrogen economy” Niche markets, innovation, advanced engineering Australian R&D

37. Research and Development “Australia should seek to participate in and contribute to overseas R&D efforts through bilateral and multilateral collaboration” – ACIL Tasman Interim Report, Broome, 2003 Expand fundamental understanding of hydrogen energy system components advanced materials electrochemistry fuel cell stack interfaces fundamental properties of hydrogen combustion compression and reticulation system integration and optimisation

38. 37 These slides were accumulated from public sources; no permission was was sought from the original authors. Some editing was done by Earl Beaver to make them suitable for SEF. Australian Case Studies Often Cited