Building Hydrogen Energy business in ... - Fujitsu Global · The Fuel Cells and Hydrogen Joint...
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| Strategic thinking in sustainable energy Building Hydrogen Energy business in Europe: increasingly serious Prof David Hart Fujitsu Research Institute Hydrogen Society Conference Tokyo, 5 th October 2015
Transcript of Building Hydrogen Energy business in ... - Fujitsu Global · The Fuel Cells and Hydrogen Joint...
| Strategic thinking in sustainable energy
Building Hydrogen Energy business in Europe: increasingly serious
Prof David Hart
Fujitsu Research Institute Hydrogen Society Conference
Tokyo, 5th October 2015
Today’s talk
• Introduction
• Systems thinking
•European structures
• Infrastructure
• Systems and storage
•Building businesses
•The future
Thank you to Fujitsu Research Institute for
this kind invitation and opportunity
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| Strategic thinking in sustainable energy
Introduction
E4tech work guides strategic decisions in sustainable energy
• International consulting firm, offices in UK and Switzerland
• Focus on sustainable energy
• Established 1997, always independent
• Deep expertise in technology, business and strategy, market assessment, techno-economic modelling, policy support…
• A spectrum of clients from start-ups to global corporations
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| Strategic thinking in sustainable energy
Systems thinking and influences
The evolving energy system and its effects bring challenges, which have relevance to a hydrogen society
Fifth Assessment report, Working Group 1, IPCC 2013, www.offshorewind.biz, www.americanlivewire.com, ses.jrc.ec.europa.eu, www.renewablesinternational.net
€0/MWh
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| Strategic thinking in sustainable energy
European structures set the national frameworks
Europe’s “2020 climate & energy” package sets the framework for most energy related policy developments
• Legally binding EU-wide targets for 2020:
• 20% cut in greenhouse gas emissions (cf 1990)
• 20% of EU energy from renewables
• 20% improvement in energy efficiency
• Member States (MS) base targets on these
• Transport fuels are hard to decarbonise: renewable content targets are 10%
• Hydrogen from water electrolysis using
renewable electricity is allowed, but often not foreseen in MS accounting methodologies
• The EU is on track, despite shortfalls in a number of countries
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Average fleet CO2 emission targets are the main driver for clean technologies in vehicles
• A 2009 European Regulation from 2009 requires a fleet-wide average of 130 g CO2 per kilometre by 2015
• Most manufacturers have achieved that through efficiency and xEV
• The 2021 fleet average target is 95g CO2 • Reaching this is likely to require more
xEV, including FCEV
2015 2021
Graphs: Transport&Environment 9
A European level framework exists for the deployment of alternative fuels infrastructure (including hydrogen)
• […] This Directive sets out minimum requirements for the building-up of alternative fuels infrastructure, including recharging points for electric vehicles and refuelling points for natural gas (LNG and CNG) and hydrogen […]
Relevant aspects for H2
• H2 infrastructure must only be developed in Member States that choose to do so
• Mandatory standards for hydrogen purity, fuelling algorithms and vehicle connectors
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| Strategic thinking in sustainable energy
Fuel cell and Hydrogen support
The Fuel Cells and Hydrogen Joint Undertaking works within the European frameworks
Members
Role
Supported activities
A public-private partnership (PPP) supporting research, technological development and demonstration (RTD) activities to accelerate market introduction
The European Commission
FC and H2 industries
Research community
• Long-term and breakthrough-orientated research • Support actions, including pre-normative research • Research and technological development • Demonstration
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National, regional and other organisations offer further support
• Many associations and partnerships exist
• Some represent nations, some are built around projects
• Some are particularly active and some well funded
• Some co-ordination takes place between them
A selection of regional associations and initiatives (not exhaustive)
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Local authorities can take drastic unilateral action, even specifying hydrogen
Paris
• LEZs; incentives to use public transport and for low emission LDV
• A progressive strategy to ban polluting cars from the city centre
• discount on car sharing subscription; free bikesharing and public transportation
• Financial support to businesses to replace petrol or diesel commercial vehicles by electric or natural gas vehicles
London
• Low Emissions Zone (LEZ) restricting access for heavy diesel vehicles and light commercial vehicles
• still failing to reach the binding EU Air Quality targets, especially NO2
• Central London Ultra Low Emissions Zone (ULEZ) in 2020 considered
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| Strategic thinking in sustainable energy
Infrastructure
Many countries have infrastructure roll-out plans; some ambitious
Source: Hanno Butsch, NOW, Germany
• Installing and linking infrastructure is being thought through
• Actual roll-out speed will depend on demand and on vehicles
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“H2Mobility” in Germany has led detailed modelling exercises and is now a company
Sources: H2Mobility studies, http://h2-mobility.de/ and NOW, Germany
• JV with six partners
• Takes risk
• Owns and funds infrastructure?
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And Hydrogen Mobility Europe (H2ME) has just been launched
• €68m project officially announced by 24 European partners on 24 Sept 2015
• Underpinned by the most ambitious hydrogen mobility initiatives in Europe:
• H2 MOBILITY Deutschland
• Mobilité Hydrogène France
• Scandinavian Hydrogen Highway Partnership
• UK H2 Mobility
• By 2019:
• 200 FCEV cars
• 125 FC RE-EV commercial vans
• 29 new HRS
• 10 countries (Austria, Belgium, Denmark, France, Germany, Iceland, Netherlands, Norway, Sweden and the UK)
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Linking with the recently selected UK portfolio
Permanent 8 2
Mobile 1 1
Upgrade New
• Government funding of up to £4.8 million: • Different market players • 2 stations on forecourts
• Fuelling capacity to show the
UK is attractive for the introduction of FCEVs: • 8 upgrades by Dec 2015 • 2 mobile refuellers by Jan
2016 • 2 new stations by Dec 2016
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Vehicles other than passenger cars are increasingly under development
DLR Antares aircraft, Germany
Alstom and Hydrogenics light rail development
in Germany
Ten buses in Aberdeen
Hydrogen(esis) ferry pilot in the UK HyPulsion forklift in France
Swiss company GreenGT’s 300kW
H2 race car
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| Strategic thinking in sustainable energy
Systems and energy storage
Grid support and ‘Power to Gas’ have emerged as potential decarbonisation opportunities
• Energy storage, grid support and balancing are increasingly required
• Serious decarbonisation includes heat, transport and chemicals
• It also requires serious scale
• Many stakeholders are represented, and many assets
• Increasing integration of previously disparate energy systems is also a driver
• Making it work well is not simple
• Regulations and tariffs need co-ordination
• Business cases are evolving
Novel route (e.g. electricity transport)
Conventional route (No market crossover)
System interconnection and power-to-gas
Surplus renewable electricity
Electrolyser
H2 storage H2 injected
into gas grid
CHP
Transport fuel
Heating
Gas plants
Fuel cell
Chemicals
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Power to Gas in Germany has gained a lot of attention, but the economics are complex
• High renewables penetration has led to opportunities for new energy system components such as P2G
• Many pilot projects in Germany are used by large corporates to gain knowledge
• Large-scale roll out in Germany is not widely expected before 2025
• Economic viability appears challenging, though accessing many different value streams could make it work
• Projects in other countries are increasing
P2G in Germany
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| Strategic thinking in sustainable energy
Industry perspectives and status
Europe has considerable emerging strength in the electrolyser industry
ITM Power fuelling station, UK Siemens Silyzer 200 schematic (1.25MW/unit)
NEL alkaline electrolyser Hydrogenics Falkenhagen power to gas plant (Eon)
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Fuel Cell companies in stationary power and CHP are also well represented – though fewer than before
AFC Energy’s KORE unit in build
Ceres Power metal-supported cells in manufacture
Hexis has investment from Vaillant
SolidPower has technology from HTCeramix and CFCL
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PEM companies are finding different niches
NedStack unit running on byproduct hydrogen
Electro Power Systems autonomous distributed
power
Intelligent Energy product selection (strong Japanese ties)
SymbioFCell vehicle
PowerCell diesel-based
APU
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| Strategic thinking in sustainable energy
How does the future look?
Hydrogen is increasingly a serious option with serious business and policy engagement
• Hydrogen is considered relevant much more frequently than in the past
• By Governments and by industry
• Across different parts of the energy system
• Supporting activities are increasing
• Analysis, trials, co-ordination
• Infrastructure roll-out is finally starting
• Cars and buses are needed to support developments
• However, business models are complex and sometimes confusing
• Who takes the risk, who makes the money, who reaps the other benefits?
• Who should work together and how?
• How can society best benefit?
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