Fukuoka Hydrogen StrategyHy-Life Project

Fukuoka’s Challenges Towards a Hydrogen Society

Former Governor of Fukuoka Prefecture Current President of Fukuoka Airport Building Co., Ltd.

Wataru Aso

Fukuoka Strategy Conference for Hydrogen Energy

April 12, 2013

Flights to/from Asian major cities

Destination Flight time

Seoul 1 hr 15 min

Tokyo 1 hr 30 min

Shanghai 1 hr 30 min

Taipei 2 hrs 00 min

Beijing 2 hrs 20 min

Hong Kong 3 hrs 15 min

Singapore 5 hrs 45 min

2

To major Asian citieswithin a few hours

Fukuoka

Fukuoka FinlandGDP USD 220 Billion USD 267 Billion

(as of 2009) (as of 2011)

Population 5,070,000 5,420,000(as of 2012) (as of 2012)

Area 4,979km² 338,145km²

Main industries in Fukuoka :cars, semiconductors, robots, steel, chemical, agriculture, etc.

Source: IMF – World Economic Outlook Databases , April 2012Cabinet Office – Prefectural Economic Accounts, February 2012 3

Unemployment

causes family discord,

afflicts the young and derails their life,

destabilizes society and increases the fiscal deficit.

Governor’s Task? Job Creation

4

Nurturing New IndustriesRapid rise of Asian countriesThe constant challenge of the following out of industryThe size of Fukuoka’s economy is equivalent to that of a country.

In order to develop such a huge regional economy, it is essential tonurture knowledge-intensive growth industries for 21st century.

Cluster PoliciesTo nurture new industries by tapping regional potential

Fields covered by the cluster strategy of FukuokaSystem LSI, automobile, biotechnology, nanotechnology, robotics and hydrogen

Industry-Academia-GovernmentCollaboration

5

Creation of Hydrogen Society Hy-Life

Developing Fukuoka into a 1.5 millioncar manufacturing base

Silicon Sea Belt Project

Robotics Industry Software Industry Fukuoka Asia Collection

New Industry Promotion Policies of Fukuoka

To nurture hydrogen-related industries Production capacity expanded to 1.46 million cars

From System LSI production base to its design & development base

From industrial robots to humanoid robots

Software development with Ruby, a new computer language

Setting fashion trends for young Asians

6

Hydrogen Project Formation and Development

Murakami-Aso talksAgreed to build Hydrogen

SocietyA call to the industrial world for

involvement

Vision presented (proposal to set up Fukuoka Strategy Conference for Hydrogen Energy)

Prefecture committed to support

Industry

World-leading intellectual resources engaged in R&D on hydrogen technologies under the MEXT “21st Century COE Program”

GovernmentAcademia Kyushu University Fukuoka Pref.

Leading companies(automobile, petroleum/gasoline, gas, electronics)

7

By-product hydrogen of 500 million cubic meters/year from steel plants Cluster of diverse manufacturing industries Response to environmental and energy issues

Fukuoka Strategy Conference for Hydrogen Energy

World’s largest industry-academia-government project

Established : August 3, 2004

Advisors : Hiroshi Ogawa (Governor of Fukuoka Prefecture) Ikuro Hirozane (Director General of Kyushu Bureau of Economy, Trade and Industry)Kenji Kitahashi (Mayor of the City of Kitakyushu)Soichiro Takashima (Mayor of the City of Fukuoka)Setsuo Arikawa (President of Kyushu University) Keisuke Kuroki (Executive Advisor, Nippon Steel & Sumitomo Metal Corporation)

President : Masakazu Iwaki (Representative Director and Executive Vice President, Nippon Steel & Sumitomo Metal Corporation)

Vice Presidents : Takashi Funaki (Advisor, Iwatani Corporation)Hiroya Nishijima (Senior Executive Director and Executive Officer General Manager, JX Nippon Oil & Energy)Yukitaka Murakami (Director, Research Center for Hydrogen Industrial Use and Storage)Hiroyuki Watanabe (Senior Technical Executive, Toyota Motor Corporation)

Executive Board Nippon Steel & Sumikin Engineering, Toyota, Iwatani Corporation,Kyushu Electric Power, Saibu Gas, JX Nippon Oil & Energy, Nissan, Honda, Kyushu University, Saga University, Kyushu Bureau of Economy, Trade and Industry,Fukuoka Prefecture, Kitakyushu City, Fukuoka City, etc.)

No. of members: 672 as of April 1, 2013 Corporations: 523, Universities: 112,Government/Research/Sponsoring institutions: 37

144 when first launched Corporations: 63, Universities:64, Government/Research/Sponsoring institutions: 17 8

established “International Institute for Carbon Neutral Energy Research” in December 2010

established “Next-Generation Fuel Cell Research Center” in January 2012

National Support National projects at Kyushu University

Ministry of Education, Culture, Sports, Science and Technology (MEXT)

Ministry of Economy, Trade and Industry (METI)

Research Center for Hydrogen Industrial Use and Storage

International Institute for Carbon Neutral Energy ResearchNext-Generation Fuel Cell Research Center

set up “Research Center for Hydrogen Industrial Use and Storage” in July 2006, and

decided to make Fukuoka the “hydrogen hub of Japan”,

9

To support human resources development of the industrial world, Fukuoka Personnel Training Center for Hydrogen Energy opened in 2005. (Director: Hrioyuki Watanabe, Senior Technical Executive, Toyota Motor Corporation)

Human Resources Development for Hydrogen EnergyNew industry development requires talents to make it.

Fukuoka Personnel Training Center for Hydrogen Energy

Engineers program Designed for engineers to work at the forefront of hydrogen-related businesses

Business manager programDesigned for business owners aiming to enter a hydrogen-related field

Expert technologists programDesigned for young people including graduate students who will support future hydrogen industries

FCV programDesigned to understand FCV development trends and industry forecasting in view of the commercialization of FCV in 2015

10

Kyushu University Hydrogen StationFCVs

Kitakyushu Hydrogen StationFuel Cell Bus

Fukuoka Hydrogen Town Kitakyushu Hydrogen Town

Hydrogen Highway

Role of Local GovernmentTo provide “demonstration communities” necessary to introduce a new social system

11

Hydrogen stations built at 2 sites offer an environment that allows demonstration driving of FCVs without restrictions.

World’s largest “Hydrogen Town” with 150 residential fuel cell systems installed in the community

Fuel Cell Scooter

Fuel Cell Forklift

World’s first community demonstrating the use of by-product hydrogen directly supplied through a pipeline

Hydrogen Fuel CellsENE-FARM

Global Perspective

“International Hydrogen Energy Development Forum 2013”

with approx. 450 participants from 25 countries

The only event in the world, where experts on hydrogen materials meet to present the latest research on hydrogen energy, has been hosted annually since 2007.

12

Gather latest information from around the world.

Send out information to the world.

“Hydrogen Industry Study Group”The study group consisting of members from business, academia and government is

sent to advanced countries.

Lead the formation of global standards for hydrogen-related products.

“North American Hydrogen Industry Study Group” 2007“European Hydrogen Industry Study Group” 2010“South Korean Hydrogen Industry Study Group” 2011

A product testing center was established for hydrogen-related equipment testing and certification

“Hydrogen Energy Test & Research Center (HyTReC)” was set up in March 2010 to assist SMEs and ventures to enter into new hydrogen industries.The center provides testing services for hydrogen-related products such as valves, pipes and tanks.

Facility to Nurture New Hydrogen Industries

Hydrogen Energy Test & Research Center HyTReC

13

Private businessesTechnology development for hydrogen-related equipment

Safety and performance evaluation of prototypes

Hydrogen Energy Test & Research Center

Testing and certification services for hydrogen-related

equipment

HyTReC with the aim of proposing global standards

Toyota, Honda, Nissan and 10 hydrogen suppliers announced that in 2015 they would launch fuel cell vehicles (FCVs) onto the domestic market mainly in 4 metropolitan areas of Tokyo, Aichi, Osaka and Fukuoka.

Outlook for Hydrogen Market 2015, the first year of HFCV introduction

Joint statement by global companies (2009/9)

14

Joint statement by 13 Japanese companies 2011/1/13

Daimler-Benz, GM and Hyundai-Kia expressed their intention to bring FCVs to market in 2015

Deployment on highways

Pre-deployment in 4 metropolitan areas

After introduction, FCV use will be expanded nationwide while hydrogen supply infrastructure is developed.

Outlook for Hydrogen Market Full-scale popularization of ENE-FARM

Launched onto the market in May 2009, ENE-FARM draws attention as a distributed power source and its use is rapidly spreading.SOFC type ENE-FARM hit the market in October 2011. Now makers are improving their systems

and the prices are declining.The target is to reduce the price to around \500,000 by 2015. Full-scale commercialization

of ENE-FARM

15

Res idential Fuel Cell Subs idiesGranted by the Government

5030 4985

18067

14806

0

5000

10000

15000

20000

25000

2009Fy 2010Fy 2011Fy 2012Fy

un it

Paid fr om emergencybudget\450,000 x 53,000cases

The total efficiency of residential fuel cell system is around 80%.(About double the efficiency of conventional thermal power system)About 30% cuts in energy use and CO2 emissions possible

Electricity(35%)

About 80% of hot water demand

About 60% of power consumption

City Gas, Kerosene, LPG

Residential Fuel Cell System

PEFC:1kW

Hot water supply(45%)

Benefits of Using Hydrogen EnergyHydrogen offers greater energy efficiency

Total energy efficiency of hydrogen FCVs :40 Double that (19%) of gasoline-powered carsEnergy efficiency of residential hydrogen fuel cells 70 to 80%Double that (35 to 40%) of thermal power generation)

Hydrogen has a wide range of supply sourcesBy-product hydrogen from steel plants, oil refineries, etc., gasification of coal, modification of methane gas generated from sewage sludge, electrolysis using natural energy such as sunlight, wind, etc., and nuclear energy

Hydrogen has high energy density, and outstanding capacity to store electricityHydrogen is capable of storing more electricity than storage batteries by high pressurization and liquefaction for the same weight and volume.

Hydrogen is the ultimate clean energy, discharging only water

Hydrogen energy can serve as the pillar of advanced growth industriesEU’s hydrogen vision Strategically develop and disseminate hydrogen –powered vehicles to maintain the competitive strength of the automobile industryNorway’s hydrogen industry development plan Develop related industries by manufacturing hydrogen using rich hydro-power generation

16

17

Fukuoka Blue Tower

Fukuoka Bio-hydrogen Project / Omuta Plant

Location Omuta City, Fukuoka

Product Hydrogen Gas (purity: over 99.999%)

Capacity 7,200 high-purity hydrogen/day

from 15 tons of wood chips (dried)

Operation Started in April 2013

To gasify “wood chips” through thermal

decomposition, and separate hydrogen

from the gas

Wood chips for pulp and paper High-purity hydrogen

Thank you Wataru Aso18