1

Japan’s Approachfor Commercialization of

Fuel Cell / Hydrogen Technology

METIMETIMinistry of Ministry of Economy, Economy, Trade and Trade and IndustryIndustry

Jiro NAGAOANRE, METI

February, 2005

2

Five Benefits of Introducing Fuel Cells

Reducing Impact on Environment

Highly Efficient

　　（ Energy Conservation Effect ）

Creation of New Industry and Job Enhancement for Industrial

Competitiveness

Diversification of Energy Supply

Distributed Energy Resources

Reducing CO2

Zero NOx ， SOx and PM

Significance of Introducing Fuel Cells

Fuel Cell Vehicles: about 48%Stationary Fuel Cells: over 80% （ including heat ）

Hydrogen can be obtained from not only petroleum, but also natural gas, photovoltaic, wind, bio-mass and by-product energy

Fuel cells require a wide range of technology from various industries.

・ Reducing energy loss in transmission・ Serve as backup energy in emergency

Environmental technologies will affect industrial competitiveness

3

R&D StageR&D Stage Introduction StageIntroduction Stage Diffusion StageDiffusion Stage

R&D on FC and H2 Further R&D

Step by stepConstruction

GrowNaturally

DemonstrationProject

Review of Regulations

R&D

Codes

Infra

2002 - 2005- 2010-

2010 50,000 2020 5M2030 15M

2010 50,000 2020 5M2030 15M

2010 2.1GW2020 10 GW 2030 12.5 GW

2010 2.1GW2020 10 GW 2030 12.5 GW

FCV Stationary PEFC

Expected Targets and PoliciesExpected Targets and Policies

4

METI Budget for Fuel Cells (1)

2001FY: 11.7

2002FY: 22.0

2003FY: 30.7

2004FY: 32.9

2005FY: 35.5 (requesting)

(Billion JPY)

2001 2002 2003 2004 2005

5

METI Budget for Fuel Cells (2)

2005FY(req.)

R&D on PEFC 5.5B - Strategic R&D alliance - New 2.0B R&D on Hydrogen Safety 4.1B Codes and Standards 3.6B R&D on SOFC 3.3B Large-scale demonstration for stationary application - New 2.5B Strategic publicity - New 0.3B

(JPY)

6

New Energy Foundation

＜ cooperative companies ＞　　・ Ebara Corporation　　・ Sanyo Electric Company　　・ Nippon Oil Corporation　　・ Toshiba International Fuel Cells Corporation 　　・ Toyota Motor Corporation　　・ Matsushita Electric Industrial Co. Ltd

＜ participants ＞　　・ Ebara Corporation　　・ Nippon Oil Corporation　　・ Sekisui Chemical Co. Ltd　　・ Central Research Institute of Electric Power Industry　　・ The Japan Gas Association etc. 　

○ Demonstration & test of Stationary Fuel Cell in various conditions○ Evaluation of Stationary Fuel Cell effect on electric grid

Framework（ 2003-2004FY） Sapporo

Tokyo

Osaka

Fukuoka

OsakaNagoya

Nagoya

2002 ＦＹ 2004 ＦＹ2003 ＦＹ

12 places

31 places

Stationary Fuel Cell Demonstration

33 places

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Dramatic improvement both in power

generation efficiency and heat recollecting

efficiency can be observed between

FY2002 and FY2003.

Timing of failures

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12months

cases

OthersStack, Reformer

Place of failuresAir Circuit

4%Controler

3%

Water Circuit24%

Reformer30%

ElectricCircuit

8%

Cell Stack25%

Others6%

30%

40%

50%

60%

20% 25% 30% 35%HHV発電効率（ ）

HHV

排熱

回収

効率

（）

14年度15年度

Half of all failures occur during 4 months.

Power Generation ratio (HHV)

Heat Collection ratio (HHV)

FY02

FY03

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Power Generation Efficiency (%)

27.59 27.21 27.09 27.59

32.40 32.40

0

5

10

15

20

25

30

35

03WIN 03SPR 03SUM 03AUT 04WIN 04SPR

%

WIN: Dec.-Feb. SPR: Mar.-May SUM: Jun.-Aug. AUT: Sep.-Nov.Courtesy of the Japan Gas Association (5 sites)

More than 32% efficiency under real conditions

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Good Performance of Heat Recollection Efficiency

Courtesy of the Japan Gas Association

Heat Recollection Efficiency (%)

42.9447.84

52.05 53.54 50.4049.80

0

10

20

30

40

50

60

03WIN 03SPR 03SUM 03AUT 04WIN 04SPR

%

10

Major Improvement on Energy Conservation Ratio

Courtesy of the Japan Gas Association

Energy Conservation (%)

2.907.30

- 2.18 - 3.05

25.21 17.90

- 30

- 20

- 10

0

10

20

30

03WIN 03SPR 03SUM 03AUT 04WIN 04SPR

%

11

CO2 Reduction (%)

14.8219.94

9.64 8.21

33.26 31.37

- 20

- 10

0

10

20

30

40

03WIN 03SPR 03SUM 03AUT 04WIN 04SPR

%

More than 30% CO2 reduction under real conditions

Courtesy of the Japan Gas Association

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JHFC Demonstration Project (1) 47 FCVs (in Jan. 2005) from

both domestic and overseas auto manufactures

10 hydrogen stations with various H2 sources

Study on energy efficiency from well to wheel

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JHFC Demonstration Project (2)

Gasoline Reforming

LPG Reforming

Mobile at METI

Liquid Hydrogen(by-product from

steel mills)Naphtha Reforming

Kerosene Reforming

Natural Gas Reforming

By-product from soda factories

Water ElectrolysisTokyo

KanagawaMethanol Reforming

FCV base stationIn Yokohama

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Current Topics (1)FC Bus Service in Tokyo Metropolitan area

Period Period Aug. 2003 - Dec.2004Aug. 2003 - Dec.2004VehicleVehicle FCHV-BUS2 (1 unit)FCHV-BUS2 (1 unit)Route Route 2 routes of 20 2 routes of 20 to 40 kmto 40 km 3 to 4 3 to 4 round-trips per dayround-trips per day

Period Period Aug. 2003 - Dec.2004Aug. 2003 - Dec.2004VehicleVehicle FCHV-BUS2 (1 unit)FCHV-BUS2 (1 unit)Route Route 2 routes of 20 2 routes of 20 to 40 kmto 40 km 3 to 4 3 to 4 round-trips per dayround-trips per day

Tokyo Tokyo StationStation

Tokyo Tokyo TeleportTeleport

Tokyo Tokyo BigsiteBigsite

Monzen-Monzen-NakachoNakacho

Ariake H2 Ariake H2 StationStation

２ｋｍ２ｋｍ

TokyoTokyo

Ariake HAriake H22 Station Station

Service Route

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Hydrogen station (natural gas reforming + by-product from steel mills)

Current Topics (2) Technology Showcase in EXPO 2005

FC Buses / H2 Station Japan’s Government Pavilion

Government of Japan Pavilion

Electric power supply for the pavilion - PAFC 800kW - MCFC 720kW - SOFC 50kW

Fuel cell buses (PEFC)

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P.M. Koizumi’s InitiativeP.M. Koizumi’s Initiative

Basic Policy Speech by Prime Minister to the Diet (February, 2002)

Introduction of First Commercially Released FCVs by the Government (December, 2002)

Test Drive by Prime Minister (December, 2001)

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Current Topics (3)PM’s new Residence will introduce the world’s first

Fuel Cell Systems to the marketplace next year.

Panasonic Ebara=Ballard

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Current Topics (4)Japan concentrates on stationary application. Target system cost is c. 500,000 yen (=5,000USD)/1kW.

Mass production drastically reduces the cost.

Joint R&D and other measures help us to reach the target.

To achieve the goal in three years, Japan:

①Starts large-scale demonstration program (c. 400units)

in order to urge “kaizen” (improvement) and assure

a learning curve to design a mass-production system.

②Started a joint R&D team consisting of “top runners”

in order to research and resolve degradation factors. ③Started research to find ways to secure harmonized

specifications or compatibilities of modules in order to

achieve further cost reduction and self-inducting

“evolution” of modules .

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International Cooperation

Joint Ministerial Statement betweenMETI and DOE(January, 2004)

International Partnership for the Hydrogen Economy (IPHE) (November, 2003)

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International R&D CooperationInternational R&D Cooperation

METI/NEDO started a new international joint R&D grant new international joint R&D grant programprogram up to 300,000 USD.

11 joint research activities were adopted last month. Diverse foreign partners from 8 counties: Université du

Québec, National Research Council Canada (Canada), Chinese Academy of Science (China), Université Bordeaux 1 (France) , National University of Singapore (Singapore) , University of Fribourg (Switzerland) , Institute for Energy Technology (Norway) , Boreskov Institute of Catalysis - Russian Academy of Sciences (Russia) , Applied Nanotech, Inc., Battelle Memorial Institute, Naval Research Laboratory, SRI International （ US ）