An innovation pipeline for hydrogen & fuel cells brochure

Transport

ConnectingEUROPETEN-T DAYS2015RIGALATVIA

An Innovation Pipeline for Hydrogen & Fuel Cells

Joint Workshop

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ConnectingEUROPETEN-T DAYS2015RIGALATVIA

An Innovation Pipeline for Hydrogen & Fuel Cells

Joint Workshop

1) Detailed Agenda,2) Declaration by the Innovative First Buyers

3) Draft Declaration by the Innovative Producers4) Concept for Creating Innovation Pipelines:

the 4 facet event Format

Joint Workshop

TEN-T Days 2015

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Joint Workshop1

An Innovation Pipeline for Hydrogen & Fuel CellsTEN-T Days 2015, Riga, LatviaTuesday 23 June

Location: Hotel Radisson Blu Latvija, Riga (main conference location)

A) Pre-workshop Event for the Media/Press

14:00 – 14:30 Guided Tour of the Break-out H2 Exhibition with internal and external H2 & Fuel Cell exhibits in the presence of the press, incl. TV team:

Ms Violeta Bulc, Commissioner for Transport

Mr Nils Ušakovs, Mayor of Riga

Ms Catherine Trautmann, European Coordinator NorthSea-Baltic Corridor

Mr João Aguiar Machado, Director-General of DG MOVE, EC

Mr Olivier Onidi, Director European Mobility Network, DG MOVE, EC

Mr Bert de Colvenaer, Director Fuel Cell & Hydrogen Joint Undertaking (FCH JU )

• Start: Inside exhibition of H2 stands located just outside the large meeting room

• Then: Outside exhibition of H2 vehicles and large H2 hardware, normally located at Esplanade (8 min walk away), but for the H2 tour temporarily partly moved to entrance of conference centre

• Finally: Return to meeting room (in case time is left – gathering at coffee & drinks bar located next to internal exhibition)

1 Includes break-out exhibition highlighting H2 & fuel cells and their applications plus test driving of vehicles throughout the TEN-T Days.

Detailed Agenda Detailed Agenda

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B) Workshop

14:30 – 15:00 Inauguration of the Joint Innovation Workshop for H2 & Fuel Cells in the presence of the press, incl. TV team:• Introduction: Mr Olivier Onidi, Director European Mobility Network, DG MOVE, EC [2 min]• Political Frame: [2 min each] [12 min max in total]

o Ms Violeta Bulc, Commissioner for Transport o Mr Nils Ušakovs, Mayor of Riga

o Mr Kurt Bodewig, European Coordinator Baltic-Adriatic Corridor

o Mr Bernard Frois, Chairman of the International Partnership of the Hydrogen Economy (IPHE)

o Mr Pierre-Etienne Franc, Chaiman of NEW-IG (Industry Grouping), Vice President Advanced Business & Technology of Air Liquide

o Mr Bert de Colvenaer, Director Fuel Cell & Hydrogen Joint Undertaking (FCH JU )• Handover Ceremony – Declaration by the Innovative First Buyers: Letters of

Understanding from about 30 regional entities on the deployment of fuel cell electric buses for urban transport in Europe [2 min each] [12 min max in total], represented by:

o Mr Nils Ušakovs, Mayor of Riga, Representative of the LV Clustero Ms Kirsten Holling, Representative of the Ministry for Building, Housing, Urban

development and Transport, North Rhine Westphalia, Representative of the DE Cluster

o Mr Barney Crockett, Councillor for Communities, Housing and Infrastructure at Aberdeen City Council, Representative of the UK/Scotland Cluster

o Mr Florian Mussner, Councillor for Mobility of SouthTyrol-Bolzano, Representative of the IT Cluster

o Ms Els de Wit, Chairperson of the Governmental Support Group & Head of Clean Fuels at the Ministry of Infrastructure and the Environment, Representative of the NL Cluster

o Handover of all letters to Ms Bulc; all signed in advance. Short speech [1 min] and signatures by Ms Bulc on 2 originals.

• Final Remarks & Invitation to Following Session by Ms Catherine Trautmann, European Coordinator North Sea-Baltic Corridor [2 min]

15:00 – 15:10 Coffee Break (if time permits)


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15:10 – 16:10 Policy & Projects & Finance Session: Creating an Innovation Pipeline for H2 & Fuel Cells [60 min]: Moderator: Ms Catherine Trautmann, European Coordinator North Sea-Baltic Corridor • Introduction by the Moderator [4 min]• Concept of Innovation Pipelines & 4-Facettes Joint Innovation Workshops (Helmut Morsi,

Advisor to the Director DG MOVE-B, EC) [8 min]• Projects & Products: proving that the technology is ready for mass deployment [8 min

each]o Prof. Christian Mohrdieck, Director Drive Development Fuel Cell System, DAIMLER

AGo Mr Fabio Ferrari, CEO SYMBIOo Mr Geert Schaap, Director International Operations, SWECO Environment AB:

"The TEN-T Projects HIT1&2 & Beyond supported by TEN-T/CEF"o Mr Ben Madden, Director, ELEMENT ENERGY: "The FCH2-JU Projects HyFive &

H2ME supported by Horizon2020" o Mr Paul Jenné, Bus Project Manager, VAN HOOL

• Mr Neil Valentine, Head of Roads Division, Mobility Department, European Investment Bank: "Adapting Horizon2020, CEF & EFSI Range of Financial Instruments to H2 & FC Projects" [8 min]

16:10 – 17:00 Planning Session: Accelerating the H2 & Fuel Cell Rollout [50 min]Round Table & Open Discussion to finalise the Declaration by the Innovative ProducersModerator: Mr Kurt Bodewig, European Coordinator Baltic-Adriatic Corridor & Co-author of the Christophersen-Bodewig-Secchi (CBS) Report• Short Introduction by the Moderator [5 min]• Round Table & Interventions from the Floor (incl. Q & As) [40 min]:

o Round table: Industry Mr Pierre-Etienne Franc, Chaiman of NEW-IG (Industry Grouping), Vice

President Advanced Business & Technology AIR LIQUIDE Prof. Christian Mohrdieck, Director Drive Development Fuel Cell System,

DAIMLER AGMr Frank Sreball, CEO H2 Mobility Deutschland GmbHMr Kalevi Korjala, CEO Oy WOIKOSKI ABMr Jacop Krogsgaard, Co-founder & CEO H2 LOGICMr Dariusz Michalak, Deputy CEO & Member of the Board, SOLARIS bus &

Coach SAMr Markus Bachmeier, Head of H2 Solutions & Advanced Customer

Applications LINDEMr Thomas Melczer, Director Business Development, Sales & Investor

Relations PROTON MOTORSMr Dennis Hayter, Vice-President Business Development INTELLIGENT

ENERGYMr Filip Smeets, General Manager HYDROGENICSMr Paul Jenné, Bus Project Manager, VAN HOOL


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o Extended Round Table - Delegates seated in the First Row: Industry, politics/public sector & speakers:Ms Catherine Trautmann, European Coordinator North Sea-Baltic CorridorMr Bernard Frois, Chairman of the International Partnership of the

Hydrogen Economy (IPHE)Mr Jan Van Hool, General Director VAN HOOLMr Neil Valentine, Head of Roads Division, Mobility Department, European

Investment Bank (EIB), Luxembourg Mr Fabio Ferrari, CEO SYMBIOMr Ben Madden, Director, ELEMENT ENERGY Mr Geert Schaap, Director International Operations, SWECO Environment

ABMr Heinrich Klingenberg, Manageing Director, HYSOLUTIONS Mr Klaus Bonhoff, Managing Director NOW GmbHMr Daljit Bawa, Segment Manager - Heavy Duty, BALLARDMr Bert de Colvenaer, Director Fuel Cell & Hydrogen Joint Undertaking

(FCH JU )

Mr Floris Mulder, Coordinator of International Study on Strategic H2 Corridors & Plans, Ministry for Infrastructure & Environment, The Netherlands

Mr Hugues Van Honacker, Senior Expert, Clean Transport & Sustainable Urban Mobility Unit, DG-MOVE, EC

Mr Geert van der Linden, Policy Officer, Research & Innovative Transport Systems Unit, EC

Mr Richard Ferrer, Coordination of Innovative Projects, Innovation & Networks Executive Agency, EC

Mr. Helmut Morsi, Advisor to the Director DG MOVE-B, EC Cluster Representatives from the Declaration by the Buyers:

o LV - Mr Aivars Starikovs, Member of the Board, Latvian Hydrogen Association

o DE - Ms Kirsten Holling, Representative of the Ministry for Building, Housing, Urban development and Transport, North Rhine Westphalia

o UK/Scotland - Mr Barney Crockett, Councillor for Communities, Housing and Infrastructure, Aberdeen City Council

o NL – Ms Els de Wit, Head of Clean Fuels, Ministry of Infrastructure and the Environment & Chairperson of the Governmental Support Group on the Implementation of Alternative Fuels

o IT – Mr Florian Mussner, Councillor for Mobility of SouthTyrol-Bolzano

• Declaration by the Innovative Producers (Industry). A draft has been prepared by NEW-IG (Industry Grouping) in advance, ideally containing the elements indicated in the concept paper) and available to all participants at the start of the workshop.

• The objective of the session is to match the Declaration by the Innovative First Buyers handed over to Ms Bulc during the inauguration ceremony, by finalising the Declaration by the Innovative Producers at the end of this session.

• Wrap-up by the Moderator [5 min]:

17:00 End of Session & TEN-T Days


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Handover Ceremony at the TEN-T Days Riga, Latvia 23 June 2015 Declaration by the Innovative First Buyers on Fuel Cell Hydrogen Buses

Speech by Ms Violeta Bulc, Commissioner for Transport

As a sign of support to further deploy larger numbers of fuel cell hydrogen buses and to enable market entry and commercialisation, a Letter of Understanding has been signed by about 30 regional entities, in essence private or public bus operators and public authorities.

Deploying zero emission vehicles now can minimize the potential risk of costly adaptation due to expected stricter decarbonizing regulation. Cities that participate now will be prepared when regulation enters into force.

Capable to operate like conventional diesel buses, fuel cell buses present similar advantages as electric ve-hicles: they are zero-emission and quiet. In addition, due to their low refuelling time, fuel cell buses present an easy pathway to a transition from current bus fleets to full zero emission urban transport.

In order to put on the market a significant number of fuel cell buses, thus achieving scale effects and price reductions, more operators will need to deploy fuel cell buses until 2020.

But not only inside our cities also for the medium distance to the next town and the long distance along our TEN-T corridors we should use zero-emission technologies, such as hydrogen and fuel cells.

I am very pleased that today, on 23 June 2015, during the TEN-T Days at the inauguration of the Joint Work-shop on Hydrogen and Fuel Cells we make a significant step forward.

I am honoured by the presence of a delegation of 5 representatives of regional entities in Germany, Italy, Latvia, the Netherlands and the United Kingdom, who together with all the other regional entities endorse the commitment towards commercialization of hydrogen and fuel cell buses.

Declaration by the Innovative First Buyers

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List of private or public transport operators and public authorities, who have signed the letters of understanding, which are included in the handover file:

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Aberdeen City Council (United Kingdom), also on behalf of

Dundee City Council (United Kingdom) Highland Council (United Kingdom) Perth and Kinross Council (United Kingdom) HITRANS (Highlands and Islands Transport Partnership) (United Kingdom) NESTRANS (Transport Partnership for Aberdeen City and Shire) (United Kingdom) Scottish Cities Alliance (United Kingdom)

Autonome Provinz Bozen - Südtirol (Italy)Syndicat Mixte des Transports en Commun (SMTC) du Territoire de BelfortBirmingham City Council (United Kingdom)BKK Centre for Budapest Transport (Hungary)Bordeaux Métropole (France)Greater London Authority (United Kingdom)HOCHBAHN (Hamburg) (Germany)Hansabuss AS (Tallinn) (Estonia)Hansa Bussiliinid AS (Tallinn) (Estonia)Mainzer Verkehrsgesellschaft (MVG) (Germany)

Ministerium für Bauen, Wohnen, Stadtentwicklung und Verkehr des Landes Nordrhein-Westfalen (Germany)

Pärnu City Government (Estonia)Regionalverkehr Köln (RVK) (Germany)Rigas Satiksme (Latvia)Rotterdamse Elektrische Tram (RET) (Netherlands)Stadtwerke Mainz (Germany)Stuttgarter Straßenbahnen (SSB) (Germany)Verband Deutscher Verkehrsunternehmen (VDV) (Germany)Verkehrsverbund Rhein-Ruhr (VRR) Germany)ViP Verkehrsbetrieb Potsdam (Germany)Wuppertaler Stadtwerke (WSW) Mobil (Germany)

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Received for the European Commission

at Riga, the 23 June 2015:

Violeta Bulc, Commissioner for Transport


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Model Letter of Understanding On the deployment of fuel cell electric buses in urban transport in Europe

From The signatory public transport operators and public authorities

To Whom it may concern

Preamble

The greenhouse gas effect and its impact on the world climate have been at the centre of political, societal and corporate attention in recent years. There exists a common understanding in Europe that CO2 emissions need to be significantly reduced in the near future. At the same time, reducing noise levels, preserving local air quality and limiting harmful pollutants have become a pressing issue for many cities and regions throughout Europe. While increasing urbanisation and growing demand for mobility necessitate action, there is a common understanding that increasing the share of public transport and promoting zero emission powertrains are im-portant levers for reducing harmful emissions. It is expected emission reduction measures will also be required from future European legislation.

In addition, fossil fuels will become increasingly scarce in the coming years with an expected significant rise in fuel prices which constitutes a major cost and operational risk to public transport operators. Starting a transi-tion process now to sustainable public transport solutions avoids the risk to do a rapid shift later when stricter regulations have been set in place and dependency on fossil fuels is setting public transport operations at risk.

Fuel cell electric urban buses are a viable alternative powertrain solution that is a key lever to reducing emis-sions in public transport. They have been operated on more than 5.5 m kilometres on European roads by pioneering cities and bus operators proving that the technology works in practice and that it is safe. Fuel cell electric buses are the most flexible zero emission alternative as they can be operated like conventional diesel buses with ranges of 300-450 kilometres per tankful while offering the advantages of all electric vehicles: zero tailpipe emissions, reduced noise and vibration levels and, therefore, high passenger comfort. While bearing many advantages, fuel cell electric buses are expected to incur a limited cost premium compared to conven-tional diesel buses in the years ahead.


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Common objectives of the signees

In line with the objectives as defined by the European Union and its Member States, we, the undersigning European bus operators, cities and regions, aim at reducing local and greenhouse gas (GHG) emissions and establishing sustainable transport systems for the future. We acknowledge our responsibility for preserving lo-cal air quality as well as reducing noise levels and are convinced that public transport can serve as role model, illustrating the benefits of zero emissions powertrains to societies across Europe.

Accordingly, we, 30 public and private transport operators as well as cities and municipalities, intend to deploy and integrate fuel cell electric urban buses into our bus fleets within the next five years. We consider fuel cell bus deployment as part of a long-term shift of our fleets to alternative and zero emissions powertrains. As part of the European initiative for the commercialization of fuel cell electric buses facilitated by the Fuel Cells and Hydrogen Joint Undertaking, the coalition of signing public authorities and bus operators intends to deploy in total of 300 – 400 fuel cell buses as a first step in Europe in the time frame 2016 to 2020.

We herewith express our commitment and readiness to take a part of the operational risk of introducing a new technology and to allocating resources to manage the overall deployment, including the construction of hy-drogen refuelling infrastructure and the adaptation of our workshops to meet safety requirements. We further commit to contributing a part of the additional financial resources associated with the introduction of the new technology within the initial market phase.

In order to achieve the necessary scale effects and the expected price reductions from technical optimizations until adequate market prices for fuel cell buses, we intend to jointly procure fuel cell buses with other public authorities and bus operators – thus aiding commercialization.

Prerequisites of deployment of fuel cell buses

Our commitment is based on the understanding that the financial burden and operational risk of introduc-ing this new technology need to be carried jointly by all involved stakeholders. Suitable support and funding mechanisms need to be put in place at EU and/or national levels in order to match our commitment to financing a part of the additional burden.

Furthermore, our commitment is based on the understanding that suitable bus models as well as service and support systems are available on the markets, which fulfil the performance requirements necessary to provide reliable public transportation services. While we acknowledge that a limited cost premium for the new technol-ogy needs to be taken into account in the next years, it is paramount that the current purchasing price of fuel cell buses is being reduced further.

In order to roll out large numbers of fuel cell buses in fleets, affordable and commercially available large-scale hydrogen refuelling infrastructure is required (e.g. capacity for more than 20 buses). Furthermore, access to adequately priced hydrogen is a prerequisite.

It is our hope that the commitment shown by this joint Letter of Understanding contributes to achieving the prerequisites for large-scale fuel cell electric bus deployment. Furthermore, we would like to give a clear signal to the bus manufacturers and hydrogen infrastructure providers that there is a growing interest in clean fuel cell buses on the market.

In support of the above understanding, the parties hereto have signed this letter of understanding on the date(s) set herein below.

Date and Signatures


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Declaration by the Innovative Producers A sector declaration on the future of Fuel Cells and Hydrogen - Our vision for the next 10-year journey -

1. The technology is ready

Through the first wave of Fuel Cells and Hydrogen Joint Undertaking (FCH JU) projects, TEN-T innovative, real-life trials and other projects across Europe, we have proven that fuel cell and hydrogen (FCH) technology is ready to deliver:

• Cleaner and quieter cities by eliminating air pollution and reducing noise caused by transport, power production, heating and cooling

• Macro-benefits such as reducing CO2 emissions, replacing energy imports by local added value, connecting the transport and the renewable energy sectors and ultimately increasing Europe’s technological excellent and competitiveness and adding innovative jobs

• Starting the roll-out of H2 filling stations along the TEN-T corridors.

Finally, the EC’s Clean Power for Transport Package, with its Directive on the deployment of alternative fuels infrastructure1, has provided a legislative basis for EU-wide planning.

2. A competitive new industrial sector has been created

These activities have led to a nascent European FCH sector, which provides the basis for a competitive Eu-ropean industry. European companies are active across every aspect of the FCH supply chain for transport. However, this is a global supply chain and other companies across the world, are also pressing ahead rapidly with their own developments.

3. We have an implementation strategy

The main challenge for the FCH transport sector is no longer technical, it is commercial. We are tackling the twin challenges of deploying simultaneously a hydrogen refuelling infrastructure and scaling up production of vehicles to reach an acceptable price.

We already have in place FCH regional clusters such as Hamburg, North Rhine Westphalia, London, Scotland, Copenhagen, and Lyon-Grenoble where successive projects have built on each other to create a self-sustaining activity with vehicle fleets (cars, light duty vehicles, taxis or buses) and networks of refuelling stations.

These clusters are the starting points of ongoing national H2 Mobility initiatives in the front running countries – Germany, France, UK and Scandinavia – synchronising the deployment of the vehicles and the hydrogen refuelling infrastructure.

The forthcoming FCH JU-supported project H2ME integrates these 4 pioneer national initiatives into a coordi-nated European deployment.

1 Directive 2014/94/EU, OJ L307/1 of 22/10/2014.

Declaration by the Innovative Producers

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FCH JU and TEN-T will expand it to the second wave of Members States by supporting national deployment plans in the Netherlands, Belgium, Austria, Poland, Finland and financing additional refuelling stations along TEN-T corridors.

4. We are committed to invest

As FCH sector, we are committed to match EU funding with equivalent or larger investments. The list of sec-tor investments will be monitored every year through a certified process involving the European Commission. A public summary will be disclosed every year. This summary will also indicate where national and regional partnerships are leveraged to complement the effort at EU level in a coordinate manner.

5. 2016-2018: Europe will have the largest H2 network and fleet of vehicles anywhere in the world

Implementation of all today’s approved projects over the next 2-3 years will lead to an overall European net-work with over 80 hydrogen stations, 83 buses and over 600 cars. This has no equivalent anywhere else in the world. These numbers are expected to grow with the ongoing calls of the FCH JU and TEN-T, where plans are in place for installing a further 500 vehicles and at least 50 new fuelling stations.

6. A 10-year journey

These activities are the start of a 10-year journey to the point where in 2025 it should be possible to buy a hydrogen vehicle for a price comparable to a conventional vehicle. This vehicle will offer similar driving range and motoring experience compared to a conventional vehicle, but with no harmful emissions, less noise and a clear path to the elimination of carbon emissions. From this point, the sector will have overcome all of the early market hurdles and be ready for massive expansion, delivering widespread societal and economic ben-efits to Europe.

For the FCH Sector

In Riga, 23 June 2015

Signatures


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AnnexFUEL CELL HYDROGEN (FCH) INNOVATION PIPELINE - OVERVIEW OF EUROPEAN HYDROGEN AND FUEL CELL DEPLOYMENT ACTIVITIES IN TRANSPORT

1. The technology is ready

The first wave of Fuel Cells and Hydrogen Joint Undertaking (FCH JU) projects and other projects across Europe have demonstrated that fuel cell and hydrogen (FCH) technology is ready to deliver:

A. Better cities

• Cleaner - Elimination of airborne pollution associated with vehicle exhausts

• Quieter – dramatic reductions in noise, improving urban life

B. Macro benefits

• A clear pathway to the elimination of carbon dioxide emissions from road transport

• A strategy for reducing EU dependence of foreign energy imports with added value in regions

• A systematic connection of both the transport and renewable energy sector with growing effectiveness and a regular demand

These early demonstration projects have proven that fuel cell vehicles have performance metrics comparable to or better than those of conventional fossil fuelled equivalents, but with dramatic reductions in energy consumption. The projects have also validated the CO2, noise and air quality claims of the sector.

2. A competitive new industrial sector

These activities have led to a nascent European FCH sector, which provides the basis for a competitive European industry, as a leading part of what will ultimately be a global supply chain. European companies are active across every aspects of the supply chain, in particular:

• Stacks – Intelligent Energy, Proton Motor, ElringKlinger, Michelin, Symbio FC

• Stack key components – Solvicore, JM, Dana, Borit, Umicore, Johnson Matthey, Freudenberg

• Embedded storage: Stelia, Raigi

• System key components: Bosch, Liebherr

• Vehicles – Daimler, BMW, VW, Van Hool, Solaris, VDL, Symbio FC among others

• Stations and hydrogen logistics – H2Logic, Air Liquide, Linde, Air Products, Haskel

• Network and Infrastructure, Shell, Total, Hysut

• Electrolysis for renewable, hydrogen production – ITM Power, Siemens, McPhy Energy, Areva H2 Gen, NEL, Hydrogenics, etc.

• Other production modes – HyGear

However, this is a global supply chain and these companies regularly partner with other companies across the world, who are also pressing ahead rapidly with their own development.


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3. Creation of first deployment clusters

The FCH JU projects, combined with actions at regional and Member State level have started to seed early regions, where successive projects have built on each other to create early deployment clusters for the technology. Here, each successive project reinforces the last and starts to create a self-sustaining network. For example, FCH clusters have been created in:

• Hamburg – where it is possible to refuel a hydrogen car at any of the 5 existing stations. A political decision has been made that from 2020 all new buses (80 – 100 p.a.) have to be emission-free. A similar frame work is in preparation for the city`s taxi fleet based on the rule that all new vehicles in publicly owned entities should be electric (battery, fuel cell). Based on experiences in European and National funding projects such as – CUTE, HyFLEET:CUTE, CHIC, HyTec, CEP), Hamburg is only one example of a number of German cities to have begun the journey towards adoption of hydrogen vehicles with a focus on fleet applications.

• London – where 3 stations are currently operating and will be supplemented by a further 3 stations in 2015 and a further 3 in 2016. This will bring the total to 9 stations by the end of 2016, which provides good network coverage to a city of over 10 million inhabitants. A fleet of 10 buses and over 40 fuel cell passenger cars, taxis and vans will be operating by the end of 2016 (funded by FCH JU projects – HyFIVE, H2ME, CHIC, HyTEc).

• Denmark – where 5 existing stations already form the seed of a planned nationwide hydrogen network of 11 stations. The tax regime in Denmark is such that it is possible to buy a hydrogen car at the same price as a conventional one. 40 cars have been sold to date, with an expected 20-30 under future FCH JU backed programs.

• Lyon-Grenoble – the H2 Mobility France consortium has developed this year the first 2 demonstration projects, in the cities of Lyon and Grenoble (Rhône-Alpes region). 50 light commercial vehicles using range extenders have been sold to a variety of customers with the support of the region and the Agency for Energy and Environment. They are used mostly for urban delivery. 6-10 hydrogen stations in clusters of about 20 vehicles each will be deployed in the next two years.

These deployment clusters are the basis for expansion of hydrogen networks in their countries.


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4. Moving beyond early projects

The main challenge for the FCH transport sector today is commercial. Innovative business models are being developed to tackle the twin challenges of deploying simultaneously an early hydrogen refuelling infrastructure and scaling up production of vehicles to reach a price which customer can accept whilst generating a sustainable business for vehicle manufacturers.

In the passenger cars sector, the H2ME project supported by the FCH JU gathers the four leading hydrogen mobility initiatives across Europe. Each is testing a subtly different approach to rolling out hydrogen fuelling infrastructure:

• Concentrated deployment – in the UK, deployment is centred on Aberdeen, and in particular London, where a relatively dense network of stations is provided for a large group of early customers. The network will expand from this point as confidence in the network grows.

• Tax incentives – in Scandinavia, the taxation regime is such that hydrogen vehicles can be purchased for an equivalent cost to conventional vehicles and this justifies station investment.

• Fleet based deployment – in France, an approach based on simultaneously installing a fuelling station and vehicles for fleet2 customers is being developed – this approach ensures good demand at the early station and facilitates the use of cheaper, lower pressure hydrogen logistics.

• Nationwide deployment – is the ambition in Germany from a dedicated private consortium, “H2 Mobility Germany”, where a nationwide network to be ready in advance of vehicle sales to the general public is the goal. This deployment has started in 5-6 large urban centres and a connecting network along major motorways.

The learning from these projects will be used to underpin future deployment across all 28 EU Member States.

In the bus sector, the FCH JU is bringing together a consortium of bus manufacturers, infrastructure providers and bus operator customers to underpin the next stage in commercialisation of the sector, where a fleet of 500-1000 vehicles will be deployed by around 2020, helping to bring the costs of the vehicles down to the point of commercial viability.

5. (2016-2018): the largest H2 network and fleet of vehicles anywhere in the world

To answer to the commercial challenge and reach a critical market size, two new FCH JU projects (HyFIVE3 and

2 Fleet customers make use of the vehicles in a relatively constrained geographic area and hence can rely on a network of a limited number of stations in a single area (e.g. taxis, delivery vehicles, logistics)3 http://www.hyfive.eu/


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H2ME4) have clustered the main players in cars and fuelling infrastructure supply and will collectively deploy over 450 cars and 35 new stations. In addition, the TEN-T Programme (2007-2013) is financing 6 additional stations and the preparation of national plans for deploying hydrogen refuelling stations in France, Netherlands, Sweden, Denmark, Belgium, Poland and Latvia5. Together with the pre-existing fleet of stations and vehicles in Europe, this will lead to an overall European network with over 80 hydrogen stations and over 600 cars by 2018.

These numbers are expected to grow with the ongoing calls of the FCH JU and TEN-T/CEF (2014-2020) programmes, where plans are in place for installing a further 500 vehicles and at least 50 new fuelling stations. In addition to cities, also the long distance along the TEN-T Corridors is targeted.

Starting June, 2015 Daimler (Mercedes) will upgrade a key plant for fuel cell powertrain near Stuttgart. The Nabern facility will remain the centre of competence for the overall development of fuel cell drive systems.

By the end of 2016, a series of FCH JU projects will lead to a fleet of 83 fuel cell buses carrying passengers across Europe. These projects will demonstrate that fuel cell buses offer the same operational flexibility as conventional buses, but without any harmful emissions. The FCH JU will continue stimulating an environment that will achieve a target of 500-1000 fuel cell buses on European roads by 2020 as a major component of the transition to commercially affordable vehicles. This effort is backed up by reciprocal letters of intent have been signed by bus customers and the bus manufacturing industry.

6. Where next

The aim of all of these projects is to initiate the commercialisation phase of the technology in Europe. The projects begin an early market, which in turn is expected to:

• Demonstrate the attractiveness of fuel cell technology for customers, and in so doing create real consumer demand for hydrogen mobility

• Enhance member state support schemes for hydrogen transport roll-out in the UK, France, Germany and across Scandinavia, with other Member States following shortly after

• Help to support the realisation of the H2Mobility investments, which have partnered vehicle manufacturers and fuelling infrastructure providers to create investment plans for the early market introduction phase

• Introduce an increasing number of vehicles at steadily reducing prices to European markets

• Create a favourable context to accelerate the market development and justify the investment in infrastructure.

7. A 10-year journey

These activities are the start of a 10-year journey to the point where in 2025 it should be possible to buy a hydrogen vehicle in showrooms for a price comparable to a conventional vehicle. This vehicle will offer similar driving range and motoring experience compared to a conventional vehicle, but with no harmful emissions, less noise and a clear path to the elimination of carbon emissions. From this point, the sector will have overcome all of the early market hurdles and be ready for massive expansion, delivering widespread societal and economic benefits to Europe.

4 The project is planned to start in July 20155 See projects Hydrogen Infrastructure for Transport, HIT 1 and HIT2 at http://www.hit-tent.eu/ and http://hit-2-corri dors.eu/


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EUROPEAN COMMISSIONDIRECTORATE-GENERAL FOR MOBILITY AND TRANSPORT

Directorate B – European Mobility Network

Concept PaperInnovation & New Technologies

The Joint Workshop: Creating an Innovation Pipeline

-The 4 facet event format to accelerate the roll-out into the market- FINAL 1

I) Introduction:

The overall objective is to better coordinate all EU programmes and initiatives for innovation and new technologies in order to support several key initiatives of the European Union, such as achieving sustainable transport, fighting climate change, fighting the economic crisis, creating jobs and supporting the Juncker Plan.

As a general concept the Innovation Pipeline has been prepared (ref. Concept Paper on Innovation Pipelines). In a nutshell, the pipeline consists basically of the Horizon2020 Programme focusing on research and demos, and the CEF Programme focussing on real-life trials and market roll-outs; plus agencies, joint-undertakings, directives, etc.

A unique pipeline does not exist, as technologies and topics are often quite different. Consequently a specific pipeline has to be implemented for each innovative topic.

More important than the tubes of the pipeline is the flow of ideas inside it. Pipeline/Programme managers and all stakeholders are invited to together have a look inside the tube to see whether the ideas are actually flowing and at what speed. The next step is to recognise the obstacles to (fast) flows, and finally the use of tools to overcome the obstacles. The 4-facet event format presented below is one tool to achieve (a) a general acceleration of the flow of the entire pipeline, and (b) a strong push/acceleration to overcome the usual inherent obstacle situated around the transition area from real-life trial to market roll-out.

The "4 facet" event format is proposed to facilitate the innovation flow. The 4 facets are (1) policy & concept, (2) specific innovation topic, (3) financial instruments and (4) exhibition. The fourth facet is optional, depending on the topic and the location.

It is intended to test this new format at the coming TEN-T Days 2015 in Riga in an event organised as a joint workshop on the 23 June, i.e. the event is now integrated into the main program of the TEN-T Days, taking place on 22 & 23 June 2015.

If successful in Riga for the hydrogen (H2) and fuel cell topic, this 4-F event format may be used for other innovative topics and locations. In all cases, the agendas of these 4-F workshops should be organised to be also attractive to promoters of other topics, to allow dissemination of good practise.

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II) Description:

The general objective of the new format is to give an innovative topic a strong coordinated push towards its market introduction in the EU.

The specific objectives are:

1) to accelerate a market roll-out;

2) to focus on a specific innovative topic, such as H2 and fuel cells; other possible examples are: EVs, rail technology, single ticketing, noise reduction, urban life, accessibility, etc, depending on the innovative topic in need for a timely acceleration;

3) to engage all relevant players and programmes, in particular industry and public institutions (strongly interested in a timely result); A declaration by the innovative first buyers should be prepared (Buyers' Declaration), as this would introduce a coordinative element and raise interest from industry.

4) by establishing a specific innovation pipeline for the topic: from research – demos – real-life trials – to market roll-out;

5) to recognise gaps in knowledge and providing a feedback loop to research to trigger targeted research to overcome remaining obstacles to the flow of innovative ideas through the pipeline;

6) to bring in adequate funding by explaining in laymen terms the available financial instruments, providing practical examples and specialised contact points in the associated financial institutions, such as the EIB Advisory Hub created by the EIB for the Junker plan;

7) to involve the European Coordinators for linking the roll-out to the TEN-T core network corridors, adopted by the European Parliament and the Council;

8) thereby contributing to increase investments and jobs in Europe, in line with the Juncker plan;

9) arriving at the end of the workshop at a concrete result, i.e. based on the relevant EU directives (e.g. the Clean Fuels directive in the case of H2 & fuel cells), a declaration by industry (Producers' Declaration), containing ideally:

a. definition of an ambitious target at the end of (normally) 2 years ("What overall"); - as an option an additional medium-term target may be put at the end of around 7 years;

b. determination of the tasks ("What in detail");

c. determination of the players ("How: Who does What?");

d. calculation of the costs associated to each player and the financial source ("How: Who pays What") or at least an estimate of the overall budgetary requirements;

e. elaboration and monitoring of a (normally) 2 year roadmap with quarterly milestones to enable timely corrective measures; it is useful to agree on a few key performance indicators; - for the additional medium-term roadmap less frequent milestones would be sufficient;

f. nomination of a monitoring entity;

g. determination of what is missing in public European support (apart from the absolute level of financial support), i.e. recognition of political "holes" in the pipeline, if any.

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These objectives are realised by the following 4 facets:

1) Policy & Concept: the general innovation pipeline concept is explained and the topical players are recognised; the most prominent European policy elements, such as directives are presented.

2) Highlighting the Innovation Topic: the specific innovation pipeline is established; the projects and products prove the readiness of the innovative technology (or the innovative process) for mass deployment by successful real-life trials and commitments from industry; definition of the feedback loop to research to fill knowledge gaps, if any.

a. Preferably an exhibition with exhibits from the players should be organised close by to give further evidence for the readiness for mass production and deployment. This will in addition draw more media attention (see optional 4th facet).

3) Supporting the roll-out through by presenting the available financial instruments in laymen terms: providing successful practical examples (e.g. pilots), in particular explaining how private capital was brought into the example projects.

a. A dedicated advisory facility should be ready for timely and practical advice and help to all interested parties, in particular private investors and industry, in preparing concrete projects organising the roll-out of the innovation.

b. Ideally, a declaration by the innovative first buyers should be prepared (Buyers' Declaration). This could be in essence only a letter of intent, e.g. by cities or regions, to establish an idea of the size of the first movers' market.

c. Finally, at the end of the workshop, based on relevant EU legislation (directives!), a declaration by industry (Producers' Declaration) should be prepared / finalised in plenum (see objectives, point 9).

4) Optional: Organising a special exhibition for the components of the innovation ("Break-out Exhibition" in case the workshop is part of a larger conference with exhibition): providing undeniable evidence that the new technology as well as the understanding of the business-client relation (i.e. the innovative process to sell to the mass market) is sufficiently developed to engage large funding in a roll-out. The break-out exhibition should be high-lighted and integrated into the programme of the joint workshop.

According to the concept of market-sided innovation, an immediate viability is not required even for a roll-out, but a least a clear and realistic roadmap based on real-life trials should show that viability can be reached, at least in the medium term, i.e. normally in about 7 years.

Proper media coverage is an essential element to inform and engage as many citizens/potential buyers as possible in order to support the market roll-out.

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III) Concluding Remarks:

The above outlined 4 facet event format is a possible way among others, to accelerate the flow of innovation in the innovation pipeline. It is worth trying out at a large event such as the TEN-T Days at relatively little additional cost, because most players will be present anyway and the conference facility is paid for as well.

The question why the new format only targets one strongly limited topic such as H2 and fuel cells may be answered by the need to focus: (a) on the optimisation of the technology to bring unit cost down, and (b) the optimisation of the business-client relation (innovative process), which varies strongly with the topic and even with region, in order to reach viability as soon as possible.

Adding more technologies or processes would increase the number of problems and thereby the overall risk, which is the dominant element for private investors to judge, whether to engage or not. It also determines the interest rate.

Finally, each technology has different degrees of readiness, which therefore requires a different detailed roadmap and milestones; - a further argument to keep it simple and focus on one limited topic of innovation.

When assessing the European added value, as it is good practise for EC initiatives, there could be a relatively easy way of calculation: Introduction of new core technologies will happen anyway if there is a global need, as in the case of alternative fuels. A key question is however, which world region will be in the lead, thereby obtaining the pole position in maintaining/creating the associated jobs in production and elsewhere, and finally the highest chance in selling the new technology to its internal and then also the global market?

The European added value could thus be simply measured by how much the pipeline reduces the amount of time for the new technology to reach viability. In the case of H2 & Fuel Cells for transport the most optimistic date published for the EU is 2023. - So, every year advancing this date for EU industry and EU deployment, increases the chances in securing the associated jobs for EU citizens. This applies also to intermediate milestones during the optimisation process.

In addition, the more the positive effects of EC coordination is becoming evident, the more private investors would invest in such a technology in Europe, simply because the risk is reduced here, if compared to other regions. Once such an upward spiral starts, it would further accelerate the rollout and hence further enlarge the European added value of the original EC initiative (i.e. the specific pipeline of programmes and measures).

Contact: Helmut Morsi, Advisor to Director European Mobility Network, DG MOVE-B+32-2-29-50844, [email protected]

The 4 facet event Format

Contact details:European Commission – Directorate General for Mobility and TransportDirectorate B – European Mobility NetworkUnit B1 – Trans European Networkhttp://ec.europa.eu/transport/index_en.htmemail: [email protected]

Offices:Rue Demot 28 1049 Brussels Belgium

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An innovation pipeline for hydrogen & fuel cells brochure

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