Transport-related hydrogen activities in Asia

Transport-related hydrogen activities in Asia

Author: Juhani Laurikko (VTT)

February 2006

PREMIA – International AMF activities: Hydrogen in Asia

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PREMIA is a Specific Support Action in 6th Framework Programme of the European Commission. The aim of PREMIA is to assess the effectiveness of measures to support alternative motor fuels - in the EU-25, - based on international experiences, - in relation to the market maturity of AMF, - short term: biofuels, - mid/long term: hydrogen, - in national context. Project duration: June 2004 – May 2007 Partners: VITO (Belgium), JRC-IPTS (Spain), CERTH/HIT (Greece), VTT (Finland), SETREF (Greece)

Sponsored by the European Commission, DG TREN, Contract TREN/04/FP6EN/S07.31083/503081 http://www.premia-eu.org Title: Transport-related hydrogen activities in Asia Authors: Juhani Laurikko (VTT) Date: February 2006 Report within PREMIA WP2: International activities on alternative motor fuels

LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. The views expressed in this publication are the sole responsibility of the authors and do not necessarily reflect the views of the European Commission. Reproduction is authorised provided the source is acknowledged. © PREMIA, February 2006


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List of Public PREMIA Reports

(available at www.premia-eu.org) Application Ref

# Deliverable name Lead editor Bio CNG H2

Delivery date

D1 State-of-the-art and market-maturity of alternative motor fuels

VTT x x x Sept 05

D2 International initiatives on AMF VITO x x x March 06 Bio-ethanol and biodiesel in the US VITO x Nov 05 Bio-ethanol in Brazil HIT x Sept 05 Biofuels in India VITO x Dec 05 Natural gas in Argentina HIT x Aug 05 Hydrogen in the US IPTS x Feb 06 Transport-related hydrogen activities in Asia VTT x Feb 06

D3.2 Common assessment framework for review of AMF initia-tives

VITO x draft Sept 05

D3.3 Assessment of long-term options and their impact on the market introduction of AMF’s

VITO x

D3.4 Reports of int. workshops and discussion forums 2nd Int. Fuel Cell Bus Workshop - Porto, Nov 04 VITO x Dec 04 3rd Int. Fuel Cell Bus Workshop - Vancouver, Dec 05 VITO x March 06 4rth Int. Fuel Cell Bus Workshop - Yokohama, Oct 06 VITO x D4 Overview of incentive programmes on AMF’s and review

of their impact on the market introduction of AMF’s HIT x

D4.1 Country reports Bioethanol and biogas in Sweden subc x May 05 Biodiesel from used frying oil in Austria subc x May 05 Biodiesel in Germany subc x May 05 Biofuels in France subc x Sept 05 Biofuels in Spain HIT x Oct 05 Natural gas in Italy HIT x Nov 05 Biofuels in East Europe SETR. x Nov 05

D4.2 Reports of int. workshops and discussion forums Biofuel Discussion Forum - Brussels, 26 May 2005 VITO x June 05 D5 Towards introduction of alternative motor fuels: country

specific situations HIT x x

D6 Results of the scenario calculations and the cost-benefit analysis

IPTS x x

D7 Synthesis report - key policy issues and policy suggestions for the large-scale market implementation of bio-fuels and hydrogen on EU level

IPTS x x

D8.3 Report on national and EU-level policy workshops VTT x x D9.4 Final project report VITO x x

subc = subcontractor report


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Contents

Contents..........................................................................................................................................2

0 Preface: Outline and target-setting of the report .........................................6

1 Activities in Japan.............................................................................................................7 1.1 General framework and (political) objectives ..................................................... 7 1.2 Stakeholders ............................................................................................................................ 9

1.2.1 Governmental organizations ............................................................................................................ 9 1.2.2 Universities and research centres................................................................................................ 10 1.2.3 Commercial companies and enterprises.................................................................................... 10 1.2.4 Non-profit and NGO organizations .............................................................................................. 10

1.3 Public funding into fuel cell and hydrogen R&D,D,D ..................................... 11 1.3.1 METI (Ministry of Economy, Trade and Industry).................................................................. 11

1.4 On-going programmes and their achievements ............................................... 12 1.4.1 WE-NET .................................................................................................................................................. 12 1.4.2 The Japan Hydrogen & Fuel Cell Demonstration Project (JHFC)...................................... 14

1.5 References............................................................................................................................... 19

2 Activities in China ...........................................................................................................21 2.1 General framework and (political) objectives ................................................... 21 2.2 Stakeholders .......................................................................................................................... 22

2.2.1 Governmental organizations .......................................................................................................... 22 2.2.2 Universities and research centres................................................................................................ 23 2.2.3 Commercial companies and enterprises.................................................................................... 24 2.2.4 Non-profit and NGO organizations .............................................................................................. 24

2.3 Public funding into fuel cell and hydrogen R&D,D,D ..................................... 25 2.4 On-going programmes and their achievements ............................................... 25

2.4.1 GEF Fuel Cell Bus Demonstration Project ................................................................................. 25 2.4.2 MOST's 973 program ........................................................................................................................ 26 2.4.3 “863” electric vehicle program of MST....................................................................................... 27

2.5 References............................................................................................................................... 27

3 Activities in South-Korea............................................................................................28 3.1 General framework and (political) objectives ................................................... 28 3.2 Stakeholders .......................................................................................................................... 28


3.3 Public funding into fuel cell and hydrogen R&D,D,D ..................................... 30 3.4 On-going programmes and their achievements ............................................... 31 3.5 References............................................................................................................................... 33

4 Activities in Singapore .................................................................................................34


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4.1 General framework and (political) objectives ................................................... 34 4.2 Stakeholders .......................................................................................................................... 34


4.3 On-going programmes and their achievements ............................................... 35 4.3.1 SINERGY ................................................................................................................................................ 35

4.4 References: ............................................................................................................................. 35

5 Activities in Australia....................................................................................................37 5.1 General framework and (political) objectives ................................................... 37 5.2 Stakeholders / partners.................................................................................................. 37


5.3 Public funding into fuel cell and hydrogen R&D,D,D ..................................... 40 5.4 On-going programmes and their achievements ............................................... 40

5.4.1 Sustainable Transport Energy Project (STEP) ......................................................................... 40 5.5 References............................................................................................................................... 43

6 Summary and conclusions .........................................................................................44


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0 Preface: Outline and target-setting of the report

This report entails a summary of transport-related hydrogen activities in Asia, with particular refer-ence to the following countries: Japan, China, South-Korea, Singapore and Australia.

The overall scheme of each case study is to seek information of the framework and target-setting that each national agenda has, list the main stakeholders among the government organisations, within the research and scientific community, as well as those private–sector enterprises and non-governmental organisations that are represented.

Second main task for each case is the listing and overall description of R&D and/or promotional programmes that each country has on-going, or are from the immediate past (or future). This should entail, if available, target-setting, list of activities and budgetary framework. The achieve-ments that each initiative has, would be most important to list, but as most of the activities are still on very early stages, such information appears not be readily available yet.

Predominant for this area of the world is that it is mainly relying imported oil and natural gas, and only Malaysia has some natural gas reserves. However, growth is strong in transport energy use, especially in emerging economies like China and to some extent also South Korea. Only Japan has managed to stabilise greenhouse gas emissions from the transportation sector. Therefore, the possibility to introduce renewable energy in the form of hydrogen is a strong impetus in many of these initiatives and efforts.


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1 Activities in Japan 1.1 General framework and (political) objectives The deliberations towards the use of hydrogen for energetic purposes were initiated in Japan, when Hydrogen Energy Systems Society of Japan (HESS) was established in 1973 to promote the importance of hydrogen energy systems [Okano 2002].

Since then, the use of hydrogen as an energy carrier in transport applications has acquired full backing of the Japanese government. Support for R&D and commercialisation of fuel cells was initiated in 1981 (Moonlight Project).

In 1999 a Policy Study Group for Fuel Cell Commercialisation was established. The report of this policy group (in 2001.1) set out commercialisation targets for 2010 and 2020. The next outcome of this METI effort was the establishment of Fuel Cell Commercialisation Conference of Japan (FCCJ), and the first conference took place in March, 2001.

Next METI’s strategy emerged for the practical application and implementation of fuel cell tech-nologies, and apart from the potential for commercialisation and increased industrial competitive-ness, the promotion of hydrogen and fuel cells has according to METI four additional supporting pillars: energy security & diversity, energy efficiency & low air quality emissions, distributed struc-ture and overall environmental friendliness.

In May 2002 the inter-ministries Official Taskforce of Ministries and Agencies Concerned with Prac-tical Application of Fuel Cells was established. Furthermore, present prime minister Koizumi ad-dressed the topic in a basic policy speech in 2002.

The present strategy is based on three-stage plan: Introduction (2005 to 2010), Diffusion (2010 to 2020) and Penetration (2020 to 2030) [Romeri, 2004]. Later in 2002 a summary and review proc-ess was set to define overall regulations toward FC and FCV commercialisation. Furthermore, in December of 2002 the first two FCV’s were leased to the Japanese Government marking the initia-tion of the public FCV demonstrations and build-up of the governmental fleet.

Fig. 1: Initial stages of the hydrogen and fuel cells commercialisation (source: [Maruta 2005])

The key issues for different stages are defined e.g. in [Nakui, 2004]. The “Basic R&D stage” (until 2005) entails establishment of test and evaluation methods for FC&FCV safety and reliability, as well as assessment of methodology and evaluation of well-to-tank efficiencies and environmental


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impacts for various available fuel pathways. The initial “Introduction phase” (2005-2010) calls for introduction and practical use of FCV’s with accelerated market deployment with initial market creation thru promotion of FCV purchase by public transportation and governmental organisations. Subtasks include performance improvements and cost cuts, and stepwise instalment of fuel refuel-ling infrastructure.

After 2010 the “Diffusion stage” should commence. It should establish all prerequisites for a self-sustained market growth provided by the public sector (such as adequate fuel supply system & full regulatory framework), and shall be accelerated by private-sector activities. After reaching 2020 and beyond, the “Penetration stage” implies to adequate hydrogen supply nationwide, and fuel cell technology at practical, mass production level. Up to the year 2005, the plan provides for basic works and technology demonstration activities. Regarding transportation, the most important ac-tivity is Japan Hydrogen & Fuel Cell Demonstration Project (JHFC) that will examine the effective-ness, environmental friendliness and safety of FCVs and the operation of hydrogen refuelling sta-tions.

With these efforts Japan is now undertaking probably one of the most ambitious and comprehen-sive hydrogen initiatives in the world [Wuster, 2004]. Primary target of the hydrogen and fuel cells policy appears to be on the side of security of supply and increased diversity, as well as lower oil dependence. Energy independence per se seems to be of lower priority, at least according to [Ma-ruta, 2005]. Furthermore, Japan is different from many other industrial countries as the CO2 emis-sions from the transportation sector are not increasing but levelling, and only the commercial and residential sectors show growth.

METI’s target-setting for the number of hydrogen FCV’s on the road is quite ambitious, calling for 50,000 units by 2010, 5 million vehicles by 2020, and 15 million by 2030. These numbers mean that from the total vehicle park of some 80 million motor vehicles some 8 % in 2020, and 20 % by 2030 should be FCV’s, which is indeed quite a challenge. Furthermore, according to [Maruta, 2005] this ambitiousness can be criticised against the past performance, when METI (formerly MITI) in 1991 set the target for electric vehicles (EV) to reach 200,000 by 2000, but the outcome of the efforts was a meagre 1300 EV’s.

Table 1: Fuel Cell vehicle target figures and aggregated hydrogen fuel demand with approximated refuelling station numbers [O’Hashi 2004].

It was duly recognised in the process that apart from being a technological research and develop-ment challenge, the implementation of hydrogen and fuel cells upon transportation applications calls also for restructuring of the codes, standards and regulations to enable safe hydrogen fuel storage, refuelling and fuel cell vehicle operations on public roads.


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As the technology itself is highly innovative and includes novel features, a host of new definitions and language needs to be developed, and a fundamental change in basic structure is called for, because the traditional way of setting the standards is too close in describing the physical charac-teristics of the technology, rather than setting performance goals and limit values. This is reflected in the budget allocation of METI funding to projects supporting this aspect. These include projects “Basic technology for the safe use of hydrogen” and the “Millennium project” that is set to develop new standards as well as oversee international harmonisation (IPHE, UNECE/WP.29) [METI, 2003].

The first stage of the process, completed by March 2005, called upon setting 28 different items in 6 laws [Takahara, 2005]

1.2 Stakeholders

1.2.1 Governmental organizations

METI (Ministry of Economy, Trade and Industry)

[http://www.meti.go.jp/english/]

Fuel cells using hydrogen produced from renewable energy sources are part of the plan towards sustainable future, and presented in the Interim Report by a Global Environmental Sub-Committee to a Special Committee on a Future Framework for Addressing Climate Change to METI’s Industrial Structure Council [Industrial Structure Council, 2004]. METI is the main source of public funding for hydrogen and FC research, development, demonstrations and dissemination.

NEDO (New Energy and Industrial Development Organization)

[http://www.nedo.go.jp/english/]

The New Energy and Industrial Technology Development Organization (NEDO) was established by the Japanese government in 1980 to develop new oil-alternative energy technologies. Eight years later, in 1988, NEDO's activities were expanded to include industrial technology research and de-velopment, and in 1990, environmental technology research and development. Activities to pro-mote new energy and energy conservation technology were subsequently added in 1993. Follow-ing its reorganization as an incorporated administrative agency in October 2003, NEDO is now also responsible for R&D project planning and formation, project management and post-project tech-nology evaluation functions.

NEDO gets its budget from METI, and undertakes R&D efforts that individual private enterprises are not capable of implementing alone. It promotes the creation of networks between industries, universities and public research organizations along with the application of public funding. NEDO is involved in the undertaking of the projects in planning, project management and assessment & technical evaluations phases.

Hydrogen Energy Technology Development and Fuel Cell and Superconducting Power Transmis-sion Technology Development are both activities within the New Energy and Energy Conservation Sector, and within the present-day organisation of NEDO, those areas are forming one department (Fuel Cell & Hydrogen Technology Dept.) in the R&D section.


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1.2.2 Universities and research centres

Japan Automobile Research Institute (JARI)

[http://www.jari.or.jp/en/]

Japan Automobile Research Institute (JARI) Japan Automobile Research Institute (JARI) was es-tablished through the reorganization of the former Automobile High-Speed Proving Ground Foun-dation in April 1969 to engage in general research on automobiles. It started as a public-service corporation of a test-research organization intended to contribute to healthy development of the automotive society. It has since progressed with the development of automobiles in Japan.

Research on fuel cell powered electric vehicles is conducted by the FC-EV Center of JARI. The pro-ject portfolio encompasses investigating technical trends of FCVs, EVs and HEVs; research on their technological development; standardisation, diffusion and promotion. Performance research is conducted on fuel efficiency examination methods for hydrogen FCVs, hydrogen fuel-quality speci-fications, and stack-performance examination methods, as well as material evaluation. Safety evaluation tests against fire and shock have been performed on fuel cells themselves, as well as to hydrogen high-pressure cylinders and on vehicles that carry them.

The test research and evaluation results are reflected in the standardisation activities with ISO/TC22-SC21 (EV), for which JARI is an inquiry commission in Japan, and with IEC/TC105/WG6 and WG8, respectively.

JARI is also engaged in driving tests on public roads and their publicity work as part of its promo-tion and education activities, and the JHFC programme lies under this activity.

1.2.3 Commercial companies and enterprises

Several Japanese vehicle OEM’s are involved with the hydrogen fuel and FCV activities, including Toyota, Honda, Nissan, Mitsubishi, Suzuki, Daihatsu, Hino. Additionally, overseas companies GM and DaimlerChrysler are tightly connected with the JFCH project.

Also large number of Japanese energy & gas utilities are listed, including Nippon Oil (ENEOS), Cosmo Oil, Showa Shell, Tokyo Gas, Iwatani International, Japan Air Gases (joint-venture of Air Liquide and Osaka Sanso Kogyo), Nippon Sanso, Nippon Steel, Kurita Water Industries, Sinanen, Itochu Enex, Idemitsu Kosan and Babcock-Hitachi.

1.2.4 Non-profit and NGO organizations

Engineering Advancement Association of Japan (ENAA)

[http://www.enaa.or.jp/EN/]

The Engineering Advancement Association of Japan (ENAA) is a non-profit organization established in 1978 with the support of the Ministry of International Trade & Industry (The present Ministry of Economy, Trade and Industry [METI]) to promote the advancement of engineering capabilities and the development of the engineering service industry. A major feature of ENAA is the close coop-eration it receives from its numerous member engineering firms which cover a broad spectrum of the industry.


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ENAA draws on the expertise of cooperating participants from many fields and orientations - indus-trial, academic and governmental. ENAA is backed and assisted by METI as well as by other gov-ernmental and local organizations, universities and research organizations. Working together with these entities, ENAA engages in a wide range of activities to enhance the engineering industry and promote technological advancement. Through these activities, ENAA seeks to make a solid contri-bution to Japan's social and economic development and to the establishment and maintenance of a favourable international environment.

ENAA participates Japan Hydrogen and Fuel Cell Demonstration Project (JHFC), and construction of hydrogen refuelling stations, which is under the responsibility of ENAA. Through the construc-tion and operation of the different hydrogen refuelling stations, the following activities are con-ducted:

(1) Establishment of technologies for constructing hydrogen refuelling stations for FCVs

(2) Data collection for preparing standards, regulations and criteria related to energy-saving effect (reduction in carbon dioxide, efficiency) and safety

(3) Clarification of challenges for improving cost effectiveness and promoting widespread use of FCVs

(4) Development of awareness about and promotion of widespread use of FCVs

[Source: ENAA website: http://www.enaa.or.jp/EN/activities/res_dev.html]

Hydrogen Energy Systems Society of Japan (HESS)

HESS was established already in 1973 to promote the importance of hydrogen energy systems. It has a headquarter at Yokohama University, and remains as the leading centre for hydrogen energy research in Japan. HESS is a centre for research and development for ideal hydrogen energy sys-tems utilizing renewable energy sources for betterment of the global environment [Okano 2002]. HESS arranges research and development workshops to discuss infrastructure, production, trans-portation storage safety and the WE-NET Program. HESS also publishes a journal on research and development twice a year. HESS Members include representatives of companies such as: Yoko-hama National University, Tokai University, Institute of Applied Energy, Tokyo Institute of Tech-nology, Honda, Toyota Motor, AIST, Iwatani International, as well as academia from University of Tokyo, Yokohama National University. [http://www.fuelcelltoday.com/FuelCellToday/IndustryDirectory/IndustryDirectoryExternal/IndustryDirectoryDisplayCompany/0,1664,1971,00.html] Comprehensive listing of hydrogen and fuel cell related organisations in Japan is available at: [http://www.fuelcelltoday.com/FuelCellToday/IndustryDirectory/IndustryDirectoryExternal/IndDirectListRegions/0,1660,3,00.html]

1.3 Public funding into fuel cell and hydrogen R&D,D,D

1.3.1 METI (Ministry of Economy, Trade and Industry)

The main public funding for the fuel cell and hydrogen research in Japan comes from METI. Up to date, METI’s budget for fuel cell & hydrogen as been steadily growing from 11.7 Billion ¥ billion ¥ (FY2001), 22.0 Billion ¥ (FY2002), 30.7 Billion ¥ (FY2003), 32.9 Billion ¥ (FY2004) and 35.5 Billion


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¥ (FY2005), showing constant rise. However, as according to [Takahara, 2005] the request for FY2006 is 35.9 Billion ¥, the budget seems to level. Table 2 shows these also in European and US currencies, assuming that 1 Billion ¥ equals about 7.2 Million EUR or 8.6 Million USD at present-day exchange rates. Split of this budget per task in FY2002-FY2003 is shown in Table 3.

Table 2: METI’s budget for fuel cell and hydrogen R&D,D,D for FY2001 to FY2006

METI's budget for FC & H2 Billion ¥ M € M USD FY2001 11.7 84.2 99 FY2002 22.0 158 187 FY2003 30.7 221 261 FY2004 32.9 237 280 FY2005 35.5 256 302 FY2006* 35.9 258 305 *application Source: METI

Table 3: METI’s budget split for FY2002 and FY2003

FY2002 FY2003 FY2002 FY2003 Billion ¥ Billion ¥ M € M € PEFC system technology 5.3 5.1 38.2 36.7 Basic technology for the safe use of hydrogen 0 4.5 0 32.4 Demonstration study (JHFC) 2.5 3.9 18.0 28.1 Millennium project (establish standards, int.ntl.harmonisation) 3.1 3.9 22.3 28.1 Development of Li-ion battery for FCV 1.0 2.0 7.2 14.4 Development of micro-FC 0 0.2 0 1.4 Development of MCFC and SOFC 3.3 3.6 23.8 25.9

total 15.2 23.2 109 167 Source: METI

1.4 On-going programmes and their achievements

1.4.1 WE-NET

The Japanese WE-NET (World Energy Network) was initiated in 1993 to develop new technologies and fuels for transport applications. Funded by the Ministry of Economy Trade and Industry (METI), the focus during the first phase (1993-98) was on the development of a long-term concept using hydrogen as a fuel. During the second phase (1999-2002), results were put into practical use by installing three filling stations in Japan and running various fuel cell vehicles.

The project has now changed its name to “Development of Fundamental Technologies in the Safe Utilisation of Hydrogen” and the project members, including the New Energy and Industrial Technology Development Organisation (NEDO) and various research organisations, focus their work on codes, standards and safety issues, while using the fuelling stations which are still in operation [Okano, 2003].


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Fig. 2: Annual budgets of WE-NET Phase 1 and Phase 2. [Okano, 2003]

Fig. 3: Hydrogen stations erected during WE-NET Phase 1 and Phase 2. [Okano, 2003]


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1.4.2 The Japan Hydrogen & Fuel Cell Demonstration Project (JHFC)

[http://www.jhfc.jp/e/]

The Japan Hydrogen & Fuel Cell Demonstration Project (JHFC) aims to demonstrate the every-day usability of fuel cell cars. The project phase 1 runs from 2002-2004 and is funded by the Japanese Ministry of Economy, Industry and Trade (METI) and supported by the Japan Automobile Research Institute (JARI) and the Engineering Advancement Association of Japan (EAAS).

Several vehicle manufacturers, including Toyota, Hino, Mitsubishi, Honda, Nissan, DaimlerChrysler, Suzuki and General Motors are running their cars and buses to gain important information. Alto-gether some 60 vehicles are currently on the road. (See Fig. 5 for the participating types.) Table 4: JHFC Fuel Cell Vehicle participation (source JHFC website)

type of vehicle Participation to demonstration Registered for the H2 fuel refuelling type of fuel compressed hydrogen 10 liquid hydrogen 1

passenger car

subtotal 11

Vehicle manufacturer’s fleet cars Leased to government agencies and

private companies

type of operation special events 1 normal revenue service 1

bus

subtotal 2

Vehicle manufacturer’s fleet

total 13 58 (as of September 2005

Furthermore, utility, energy and oil companies are supporting the project by installing and running various hydrogen filling stations across Japan. Companies include Nippon Oil (ENEOS), Cosmo Oil, Showa Shell, Tokyo Gas, Iwatani International, Japan Air Gases (joint-venture of Air Liquide and Osaka Sanso Kogyo), Nippon Sanso, Nippon Steel, Kurita Water Industries, Sinanen, Itochu Enex, Idemitsu Kosan and Babcock-Hitachi. [FuelCellToday, 2005]

Because the portion of hydrogen infrastructure in the JHFC effort is not just providing the neces-sary refuelling for the demonstration vehicles, but to develop and collect experience of erecting and operating hydrogen fuel stations that are based on different hydrogen production technology options. The variety regarding the technologies of producing the hydrogen include reformulation of desulphurised gasoline, naphtha, methanol, LPG, city gas (NG) and kerosene, as well as using by-product hydrogen and trucked liquid H2, plus on-site water electrolysis. Table 5 lists these options site-by-site, and Fig. 6 shows their specific locations. Furthermore, Fig 7 shows the specific routes that are supported by JHFC for the fuel-cell vehicle operations.

Apart form the Tokyo site, another public showcase of the JHFC demonstration activity is the JHFC Park, situated in Yokohama. It is the core of the public education and outreach activity, and it is open for public access without any admission fee. It entails a hydrogen generation and refuel-ling/dispensing station, fuel cell vehicle maintenance garage, and library for related literature. Fig. 8 gives a conceptual outlook of this facility.


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Fig. 4: JHFC organisation [http://www.jhfc.jp/e/] [Kamimoto, 2004]

Fig. 5: Vehicles participating the JHFC activities (photos courtesy of JHFC)

Even if the JHFC main demonstration can be considered the heart of the hydrogen and fuel cell vehicle activities, hydrogen refuelling is available at some other locations as well. Fig. 9 shows the total compendium of the hydrogen facilities as of October 2004 (O’Hashi 2004). Including the in-stallations of the Japanese automakers, altogether some 20 hydrogen refuelling stations are cur-rently in operation. Taken from the same source, Fig. 10 outlines perspectives for the different kinds of hydrogen fuel production technologies that are supposed to be employed at different stages of the deployment.


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Table 5: Type and operators of JHFC hydrogen stations (Source: JARI)

Fig. 6: Network of JHFC hydrogen stations (illustration courtesy of JHFC)


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Fig. 7: Designated Routes of JHFC Project for FCV’s (illustration courtesy of JHFC)

Fig. 8: JHFC Park in Daikoku, Yokohama (illustration courtesy of JHFC)


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Fig. 9: Total present network of hydrogen stations in Japan (illustration courtesy of O’Hashi/Nippon Steel)


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Fig. 10: Perspective for FCV deployment and hydrogen infrastructure in Japan (courtesy of O’Hashi/Nippon Steel)

Fig. 11: Lay-out and structure of the NEDO supported work on safe use of hydrogen (Source: NEDO)

1.5 References [Okano, Kazukiyo, Introduction to the Hydrogen Energy Systems Society of Japan, HESS, 2002. http://www.hpath.org/Newsletter/path-newsletter-02-11-01.asp].

[Sustainable Future Framework on Climate Change, Interim Report by Special Committee on a Future Framework for Addressing Climate Change, Global Environmental Sub-Committee, Indus-trial Structure Council, Japan, December 2004, 66 p.]

[Maruta, A: Japan’s Hydrogen and Fuel Cells Projects, Hannover Fair 2005, International confer-ence Hydrogen & Fuel Cells on their way to commercialisation. http://www.fair-pr.com/hm05/ con-ference/maruta.pdf]

[Romeri, M: Hydrogen: A New Possible Bridge Between Mobility and Distributed Generation (CHP), World Energy Conference (WEC) 2004, http://www.worldenergy.org/wec-geis/congress/papers/ romeriv0904.pdf].

[Japan’s Approach to Commercialization of Fuel Cell & Hydrogen Technology, New and Renewable Energy Division, Ministry of Economy, Trade and Industry (METI), June 2003. http://www.iea.org/ textbase/work/2003/hydrogen-coIEA/AG4-1JAP.PDF]

[Wuster, R., R&D and deployment strategies in North-America, Japan and Europe. CLEFS CEA – No 50/51 – Winter 2004-2005. http://www.cea.fr/gb/publications/Clefs50/pdf/104a105wurster-gb.pdf]


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[Sustainable Future Framework on Climate Change, Interim Report by Special Committee on a Future Framework for Addressing Climate Change, Global Environmental Sub-Committee, Indus-trial Structure Council, Japan, December 2004, 66 p.]

[Kamimoto, Takeyuki, Summary of JHFC Activities Summary of JHFC Activities for Fiscal (Year) 2004. JHFC, 2004. http://www.jhfc.jp/e/seminar/pdf/1_2004.pdf]

[Nakui, K., Japanese Fuel Cell & Hydrogen Programmes and Initiatives, presented at Hydrogen-Fuel Cell Based Energy Systems Workshop, March 2004, Vienna, Austria.]

[Shindo, H, Japan’s Approach to Commercialization of Fuel Cell/Hydrogen Technology. May 23, 2005, NEDO, Washington Office.]

[Okano, K, Hydrogen and fuel cell activities in Japan, PATH Hydrogen Workshop. Mexico, Feb 14, 2003.]

[Takahara, I, Japan’s Approach to Commercialization of Fuel Cell/Hydrogen Technology. IPHE Steering Committee Meeting, Sep 2005. http://www.iphe.net/IPHErestrictedarea/Steeringkyoto/9-14-day1/2-1-6%20Japan.pdf]

[Ishitani, H., Japanese Situaton of Clean Energy Vehicles Development. Joint UK/Japan Automotive Technology Forum on Low Carbon Vehicles, Dec 2003.]

[O’Hashi, Kazuhiko, Potential Hydrogen Capability for the Proposed Northeast Asia Natural Gas Pipeline Network. Oct 2004. http://www.fitness4service.com/news/pdf_downloads/h2forum_pdfs/O'Hashi-Japan.pdf]


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2 Activities in China 2.1 General framework and (political) objectives China has six of the world's 10 most-polluted cities. Furthermore, transportation demand is grow-ing rapidly. Therefore, the Chinese government has set a schedule to improve emission standards for vehicles in China. New vehicles will meet Euro II standards by January 1, 2003 in Beijing, and by January 1, 2005 in the rest of China. As a second step, emission standards are further tight-ened to equal Euro III by January 1, 2005 in Beijing and by January 1, 2010 in the rest of the country [Feller].

Current (2003) car park is over 24 million units, and is expected to reach 30 million by the end of 2005. China is expected to become the largest car market in the world within next 10 to 15 years. [h2cars]

Although the growth will implicate that the number of private cars, now closing to 30 million, will continue to increase aggressively, public transport is also an important mode of passenger trans-port. Approximately 1 million buses were produced in China in 2002, representing an increase of 25% over production in 2001. The development of fuel cell cars in China is integrated in the co-operation with foreign car manufacturers.

The Chinese government began encouraging the use of alternative fuels in 1999 with a clean vehi-cle demonstration project in China's 12 largest cities. The Chinese government's goals to improve the quality of air in major Chinese cities and to reduce its dependence on imported oil are the main long-term drivers of market growth in the alternative fuel bus market in China. Furthermore, with regard to the expected media attention on China for the 2008 summer Olympics, the Chinese government is actively investing in alternative fuel buses to demonstrate the progressiveness of their country to the world.

China has listed rational use of hydrogen into its energy development strategy and will target in-vestments for research of automobiles powered by hydrogen cells. According to [ ], the Chinese Ministry of Science and Technology set allocated over 400 million yuan (US$ 48.2 million) for re-search on hydrogen cell-driven automobiles in 2000-2005. It is expected that in the long run, de-velopment and widespread use of automobiles powered by hydrogen will be of great significance to alleviating China's energy shortage crisis, reducing pollution and reigning in greenhouse gas emissions. [China Daily, 2004]

In long-term China sets high hopes for hydrogen as energy vector, and especially in transportation, because if the growth rate of mobility is according to the present outlook, fuel demand will be quite substantial, and if hydrogen could be used in stead of mineral oil based fuels, domestic pro-duction of energy could take much larger share of the consumption. It is estimated that the oil demand will increase from 220 million ton in 2000 to 300 – 340 million ton in 2010 and the net imports from 50 million ton to 100 –160 million ton.

Long-term plan is to go towards hydrogen economy, which could be in place sometime after 2050. To reach this goal, plans are laid to a three tier approach, and intermediate targets are set for each main sector, i.e. production, delivery and utilisation of hydrogen. Fig 11 outlines these goals by each sector and tier.

China has co-operation and co-development framework programmes with Italy, Canada and Ger-many, as with EC and GEF/UNDP. [IPHE China’s Statement]


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Table 6: Three-tier roadmap to hydrogen economy in China with intermediate goals. [IPHE China’s Statement]

2.2 Stakeholders


The State Economic and Trade Commission (SETC)

[http://www.setc.gov.cn/]

The State Economic and Trade Commission (SETC) of the People’s Republic of China is a depart-ment of the State Council. SETC is the macro-economic regulatory department, with a mandate to regulate the near-term operations of the national economy.

The National Development and Reform Commission

[http://www.ndrc.gov.cn/]

In March 2003, the National Development and Reform Commission (NDRC) took over the respon-sibilities of SETC.

The National Development and Reform Commission (NDRC) is a department of the State Council. NDRC is the macro-economic regulatory department, with a mandate to develop national economic strategies, long term economic plans and annual plans, and to report on the national economy and social development to the National People's Congress. For more information please visit the NDRC web site.

NDRC has fourteen major areas of responsibility, one of which is China's sustainable development strategy, which includes cleaner production and pollution prevention. The important aspects of


23

NDRC's mandate and responsibilities in the context of cleaner production/pollution prevention as described in NDRC's web site are:

• advancement of China's sustainable development strategy; • research and preparation of drafts into the comprehensive utilization and conservation of re-sources; • coordinate the establishment of a plan for rebuilding China's ecology; • policy creation for the comprehensive utilization and conservation of resources; • coordinate vital issues related to the rebuilding of the ecology and the comprehensive utiliza-tion and conservation of resources; • coordination of the environmental protection industry.


Dalian Institute of Chemical Physics, Chinese Academy of Sciences

[http://english.cas.ac.cn/Eng2003/page/SRA/C_5.htm]

Dalian Institute of Chemical Physics (DICP) has been carrying out fuel cell R&D for more than 30 years. A dedicated fuel cell R&D centre was established in 1998. The centre employs more than 50 researchers and engineers. Most of these employees are working on PEMFC development. DICP has filed around 25 patents concerning PEMFC technology. Research areas have included the de-velopment of thin metal bipolar plates that are easy to manufacture, and the development of MEA manufacturing processes. In spring 2003, the DICP supplied its new 75 kW PEM stack to Tsinghua University, which integrated the unit in a bus.

Tsinghua University

Tsinghua University is in charge of two national key fundamental projects: Fundamental Research for Hydrogen Production, Storage and Transportation in Large Scale and Relative Fuel Cells, and Fuel Cell Engines Used for Buses. The university is working on developing PEM fuel cells, fuel cell engines and making hydrogen from ethanol.

Together with Beijing LN Power Sources, Tsinghua University demonstrated various vehicles in 2001, one of which was a small, 12 seater bus (top speed 90 km/h, range 160 km). Tsinghua Uni-versity is expected to use a 80 kW engine to develop another prototype bus.

Other

Researchers at the Changchun Institute of Applied Chemistry, Tsinghua University, Tianjin Univer-sity, Fudan University, Shanghai University (in cooperation with Beijing Petroleum University), the Beijing University of Science and Technology, Tianjin Institute of Power Sources, the South China University of Technology, and the Dalian Institute of Chemical Physics have all been involved with fundamental research relating to catalysts, electrodes, and/or other components of PEMFCs. The Institute of Engineering Thermal Physics of the Chinese Academy of Science has been involved in studies of gas supply, and thermal and water management for FC stacks.


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The Fuyuan Century Fuel Cell Power Company

[http://www.fyfuelcell.com/english/index.asp]

The Fuyuan Century Fuel Cell Power company is developing PEMFC technology. It has developed stacks ranging in size from 3 kW to 30 kW. In 1998, the company developed the first fuel cell-powered passenger vehicle in China in conjunction with the Automotive Engineering Department of Tsinghua University, installing a 5 kW stack into a prototype golf cart. More recently, Fuyuan has built and tested 40 kW PEMFCs for buses, and commenced work on a 100 kW PEMFC program for electric buses. Its sister company, Fuyuan Pioneer New Energy Material, specializes in the R&D and production of PEMFC components, including carbon, composite and metal bipolar plates, and PEMFC membrane.

Shanghai Shen-Li High Tech Co. Ltd.

Founded in 1998, Shanghai Shen-Li High Tech Co. Ltd. is developing PEM fuel cells for a whole array of applications, including mini-buses. Currently employing about 30 people in a 1500-square-metre facility, it has developed a series of prototypes, ranging in output from 10 kW to 50 kW.

Beijing Jinfeng Aerospace Development Company

Beijing Jinfeng Aerospace Development Company is the country's largest producer of hydrogen storing metals. The company is working on possible uses of hydrogen for transport applications.

Bus industry in China

The five largest bus manufacturers in China account for 58% of local bus production. They are (by percentage of local production) Changan Auto (15.7%), Harbin Harfei (14.4%), Chancghe Aircraft (11.9%), Shanghai-GM-Wuling (8.2%) and FAW (7.9%).


The China Association for Hydrogen Energy (CAHE)

http://www.chinahydrogen.org/

The China Association for Hydrogen Energy (CAHE) aims to promote hydrogen as a clean fuel for fuel cells and various other applications. It entails around 200 private members plus some 20 group members. CAHE arranges hydrogen-related conferences and other events.

Chinese Renewable Energy Industries Association (CREIA)

http://www.creia.net/cms_eng/_code/english/index.php

Chinese Renewable Energy Industries Association (CREIA) was set up in 2000 under the support of SETC/UNDP/GEF Project of Capacity Building for Rapid Commercialization of Renewable Energy in China. Its purpose is addressing the environmental problems caused by China’s energy structure which primarily relies on coal, promoting the development and utilization of Renewable Energy and realizing sustainable development of economy and society. It obtained the formal registration from


25

Ministry of Civil Affairs in March 2002 as a branch of China Comprehensive Resource Utilization Association (CCRUA). As an industrial association, it enjoys total independence over its programs and operations.

Since its establishment, CREIA has been serving as a window bringing together national and inter-national project developers and investors, a bridge between regulatory authorities and the industry, and a network for enterprises, drawing together new and renewable energy experts on research & development, production, and sales, professionals and entrepreneurs to accelerate the develop-ment of Chinese Renewable Energy.

2.3 Public funding into fuel cell and hydrogen R&D,D,D China has listed rational use of hydrogen into its energy development strategy and will target in-vestments for research of automobiles powered by hydrogen cells. According to newspage at [Xin-hua News Agency April 23, 2004, reported at http://www.china.org.cn/english], the Chinese Minis-try of Science and Technology set allocated over 400 million yuan (USD 48.2 million, 40 MEUR) for research on hydrogen cell-driven automobiles in 2000-2005. It is expected that in the long run, development and widespread use of automobiles powered by hydrogen will be of great signifi-cance to alleviating China's energy shortage crisis, reducing pollution and reigning in greenhouse gas emissions. [China Daily, 2004]

During China's 10th five-year plan (2001-2005), the Chinese Ministry of Science and Technology (MOST) approved a 165 million USD (137 MEUR) R&D program to develop advanced hybrid-electric drive and fuel cell-vehicles. Furthermore, private companies are likely to invest another 300-450 million USD (250 to 370 MEUR) over the same time period. One major aim of the project is to develop two prototypes for 150 kW fuel cell buses by 2005. Under the funding, Shen-Li High Tech and Dalian Sunrise will develop hydrogen-based engine prototypes for vehicles to be assem-bled by Tsinghua University and the Shanghai Fuel Cell Vehicle Powertrain Company.

The main opportunities for fuel cell technologies are in the development of prototypes of fuel cell engines and fuel cell fuelling stations. These research and development (R&D) opportunities re-quire a partnership with relevant Chinese organizations.

In 2002, the Chinese government announced that it would invest approximately 18 million USD (15 MEUR) in a three-year PEMFC development program. Most of these funds will go toward the development of 75 kW and 150 kW PEMFC systems at the Dalian Institute of Chemical Physics.


2.4.1 GEF Fuel Cell Bus Demonstration Project

China's two main cities, Beijing and Shanghai, have been selected by the Global Environment Facil-ity (GEF) of the World Bank for the Fuel Cell Bus (FCB) Demonstration Project. Under this project, the GEF will sponsor the deployment of six fuel cell buses and one hydrogen filling station each to both Beijing and Shanghai. The four-year demonstration trials will see these buses log over 1.6 million kilometres. The 32 million USD (26.5 MEUR) project is funded with 18 million USD (15 MEU) from the GEF, 15 million USD (12.4 MEUR) from Chinese government, 7.5 million USD (6.2 MEUR) each from the cities of Beijing and Shanghai and a further 6 million USD (5 MEUR) from private companies. It is a two-tier effort, scheduled to run from 2003 to 2007.


26

Sub-tasks of the project are to supply altogether 12 (6 in part I, and further 6 during part II) com-pleted fuel cell buses, build necessary hydrogen refuelling stations and provide consulting services to train Chinese bus operations personnel with the new technology.

Additionally, some activities will help build local capacity relating to FCBs, including strengthening policy and planning capabilities of the public transit companies; enhancing scientific, technical, and industrial capacity for commercializing FCBs; and increasing the understanding of FCBs among government, investment, media, and other key actors. Finally, a series of activities will also focus on defining a detailed strategy for large-scale FCB implementation in China, which is planned as follow-on to this demonstration project.

The project will facilitate the commercial introduction of FCBs in China through three broad objec-tives:

1) determining the current technical and operational viability of FCBs and accumulating knowledge regarding their current and future potential cost and performance,

2) building the technical, operational, managerial and planning capacity for long-term use of FCBs, and

3) stimulating national-level awareness of FCBs and developing a coordinated strategy for the next phase of FCB commercialization in China.

The strategy document will define a Phase III commercialization project and lay out a proposed course for Phase VI, the mass-production of cost-competitive FCBs in China. [FCB Website]

In addition to the GEF hydrogen station, Shanghai is working on its own hydrogen infrastructure project. The city will host the World Expo in 2010 and is trying to deploy its own clean energy and fuel cell buses for the event. The supply of hydrogen as a fuel in Shanghai will not be as difficult as in many other cities, mainly due to the region's vast and flexible fuel sources. In Shanghai alone, four chemical companies have been producing enough hydrogen as an industrial by-product to at least meet the short-term consumer needs of Shanghai.

2.4.2 MOST's 973 program

Under the MOST's 973 program, the Government is spending approximately $5.6 million on the research of hydrogen storage materials, fuel cell membranes and catalysts. One of the main grantees under this program is Hong Kong University (HKUST), which is working on carbon nano materials as a hydrogen storage solution.

Under China's fuel cell roadmap, more than 100 buses will have been tested under demonstration projects between 2005 and 2010. More than 1000 fuel cell powered buses will be utilized in regu-lar bus operations between 2008 and 2020.

According to the information disclosed at IPHE Steering Committee meetings China has produced first fuel-cell powered light vehicles in 1999, and two light-duty busses plus a minivan in 2001. All are based on PEM technology, provided by either Chinese companies (DLICP and LuNeng), or GM (for the minivan). The hydrogen fuel is stored as compressed gas, and ranges vary form 120 to 200 km on the busses. [IPHE China’s Statement]

Furthermore, in 2002 two more vehicles were released. One was small city bus, one a passenger car. Both these vehicles also employ PEM fuel cells developed by DLICP (bus) or Shen-Li (car), and compressed gaseous hydrogen fuel enough for 200 km operating range. [IPHE China’s Statement]


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2.4.3 “863” electric vehicle program of MST

In terms of passenger cars, Shanghai Automotive Industry Corp (SAIC), one of China's biggest automakers (and a partner to Volkswagen and GM), has publicised in August 2005 its plans for new-energy-powered (i.e. hybrid) vehicles over the next three to five years. Plans are set to pro-duce hybrid-powered cars and busses before 2008. Target is to reach production in “tens of thou-sands” before 2010. Furthermore, the announcement in [China Daily, 2005] includes reference to small-volume hydrogen-powered fuel cell cars before 2010.

The development entails close co-operation with Shanghai Jiaotong University and Tongji Univer-sity, both located in the home town of SAIC. Furthermore, SAIC has signed a joint development agreement with GM to advance these technologies.

Maple, a unit of China's privately-owned car maker Geely also based in Shanghai, plans to begin production of hybrid-powered cars in 2008 under its own brand name. Also this company works with Tongji University for hybrid-powered car development research. Their target is to manufac-ture 5,000 to 10,000 hybrid cars a year initially, and expects that hybrids will account for half of its total annual sales in the long term.

Furthermore, the hydrogen-related research agenda in China includes multiple projects in hydro-gen production methods and storage technologies.

2.5 References [Feller, Gordon: Hydrogen Power in China - Will Fuel Cells Ever Be Clean, Cheap, Efficient? http://www.ecoworld.org/Home/articles2.cfm?TID=352]

[http://www.h2cars.biz/artman/publish/article_500.shtml]

[ChinaDaily, 2004] [China lists hydrogen into energy strategy, (Xinhua News Agency, April 23, 2004), China Daily, 2004-04-23. http://www2.chinadaily.com.cn/english/doc/2004-04/23/content_325781.htm]

[IPHE China’s Statement at www.iphe.net]

http://www.ecoworld.org/Home/Articles2.cfm?TID=352

[Winkler, W, Report of the visit of FCEXPO 2005, 10-21 January 2005. Hochschule fur Angewandte Wissenschaffen Hamburg, 2005]

[FCB Website http://www.chinafcb.org/xmjj/030417de-3(e).htm]

[ChinaDaily, 2005] [http://www.chinadaily.com.cn/english/doc/2005-08/27/content_472699.htm]


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3 Activities in South-Korea 3.1 General framework and (political) objectives Korea is currently number 10 among the world’s highest energy consumers. Furthermore, like Ja-pan, it is strongly dependent on energy import. Against that background, hydrogen energy is seen as means to decrease the dependence on imports. However, hydrogen and fuel cells are also seen as key elements of future economic growth.

Already in 1987, the Ministry of Commerce, Industry and Energy (MOCIE) started the promotion of renewable energy by an act (‘Promotion Act for the Development of Alternative Energy’), and a 10-year strategic plan (‘Alternative Energy Technology Development Plan’) was established accord-ingly. Based on this framework, 11 major alternative energy technologies were identified and fuel cells and hydrogen technology were amongst those, along with solar thermal, photovoltaic, bio-energy, small hydropower, wind power, coal gasification, waste recycling and geothermal.

As a next step ’10-year National Plan for Energy Technology Development’ was launched in 1997. Fuel cells and hydrogen fall as a section into this plan, which includes “National Fuel Cell Technol-ogy Plan”.

From this starting point it appears as the Korean hydrogen and fuel cell programme would mainly be targeted towards energy security and sustainability. Later on, however, the growing market potential of this field has been duly recognised, and the needs of the Korean industry to keep up with the rest of the world has been emphasised [KCCI 2005]. The KCCI report urges that the gov-ernment should not let Korea fall behind other countries (US, Japan, EU) in taking such prepara-tory steps.

3.2 Stakeholders


Two main government agencies involved with hydrogen and fuel cells are Ministry of Science and Technology (MOST, www.most.go.kr), and the Ministry of Commerce, Industry and Energy (MOCIE. www.mocie.go.kr).

They have formed between them the National RD&D Organisation for Hydrogen and Fuel Cells (www.h2fc.or.kr), to promote and coordinate research and development work. Additionally, in 2003 MOST launched the Hydrogen Energy R&D Centre [www.h2.re.kr5] within their “21st Century Frontier Programme”.


The following universities are cited to work on hydrogen and/or fuel cells: Seoul National University Yonse University Korea University Sogang University Korea Advanced Institute of Scidence and Technology (KAIST)


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Hankuk Aviation University Chung.nam National University Hanyang University Kyung-book National University Pohang University of Science and Technology (POSTECH) Inha University Hong-lk Universkity Dong-yang University Joongang University Hannam University

The following research institutes have hydrogen and/or fuel cell related R&D

Korea Institute of Energy Research (KIER)

[http://www.kier.re.kr/english/intro/organ/hydro.html]

Korea Institute of Science and Technology (KIST)

[http://www.kist.re.kr/en/EnP/Enp_Fuelcell_index_en.asp?Over_02=004]

Korea Electrotechnology Research Institute (KERI)

[http://www.keri.re.kr/english/main_page.html]

Korea Research Institute of Chemical Technology (KRICT)

[http://www.krict.re.kr/english/index.php]

Source: [OEDC: Innovation in Fuel cell and Photovoltaic industry in Korea, http://www.oecd.org/dataoecd/12/13/31967755.pdf]


The following companies have hydrogen and/or fuel cell related R&D: KEPCO Samsung SDI Samsung Advanced Institute of Technology LG (Oils, Chemicals, Electronics) SKC SK Corp.


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Hyundai Motors Company Kunkdong City Gas Company Hankook Tire RIST CETI Fuel Cell Power Twin Energy LG Calltex Samsung Engineering Hyosung Industrial PG

Source: [OEDC: Innovation in Fuel cell and Photovoltaic industry in Korea, http://www.oecd.org/dataoecd/12/13/31967755.pdf]


n/a

3.3 Public funding into fuel cell and hydrogen R&D,D,D Total spending for the fundamental technology developments phase (1989 to 2004) was 116.9 million USD (97 million EUR), including 64 million USD (99 million EUR) public and 4.9+48 million USD (53 million EUR) from private sector, divided between hydrogen production ca. 15 million USD (12.7 million EUR), and over 100 million USD (85 million EUR) for fuel cells.

According to Table 7 (from [Fuel Cell Today]), the Korean government budget for next phases (demonstration & implementation) is set to 237 million USD (200 million EUR) for R&D in fuel cells, 175 million USD (148 million EUR) for demonstration & dissemination activities, and a huge 1184 million USD (1004 million EUR) for R&D on hydrogen production, where the focal point with 1 bil-lion USD (ca 850 million EUR) funding is nuclear hydrogen production programme (2004-2019), in co-operation with United States.

Table 7: Budget plan for public spending on hydrogen and fuel cell R&D in Korea. [Fuel Cell Today]


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3.4 On-going programmes and their achievements According to [Fuel Cell Today] South Korea will later in 2005 announce its plans for a hydrogen economy that shall aim at freeing the country from the reliance on petroleum by 2030 to 2040. In 2002 figures South Korea was the 10th largest energy consuming nation, seventh largest user of oil, and fourth largest oil importer. Estimates set Korea some five years behind US and Japan, in terms of technological development.

Hydrogen production technologies are in the focus of the R&D, but as vehicle industry in the coun-try is also very strong, fuel cell EV applications must also be included, along with machinery and even multipurpose robots. Budget for 2005 is some 100 million USD. Master plan includes also technology parks for the development of renewable and clean energies (wind, solar) to make hy-drogen. Table 8: The Research and Development Scheme of the Korean Hydrogen Energy R&D Cen-tre.

As said before, from the a huge public funding exceeding billion USD for R&D on hydrogen produc-tion, the focal point lies in nuclear hydrogen production programme (2004-2019), in co-operation with United States. However, other hydrogen production technologies (NG steam reforming, water electrolysis, biological, thermochemical, photocatalytic) are also investigated. Furthermore, the work encompasses also hydrogen storage technologies, as well as safety aspects, including sen-sors etc. [Lee].


32

Table 9: Milestones for hydrogen and PEMFC fuel cell demonstrations in transport in Korea.

Transportation applications are being developed in co-operation with the Korean vehicle industry, Hyundai Motor Company being the spearhead. By 2005 the plan is to have up to 10 cars running and one to three hydrogen refuelling installations in use. According to [Hong 2004], between 2006 and 2008, the demonstrations should entail about 1000 cars and 100 buses, and include up 10 10 hydrogen refuelling stations. Until 2012, the programme should cover up to 10,000 cars and 5000 buses with 50 refuelling installations.

Korea Institute of Energy Research (KIER) has announced that they have successfully demon-strated hydrogen fuelled fuel cell/battery hybrid car that has a range over 200 km without refuel-ling or recharging. (This is probably the 25 kW system mentioned in Table 10). So far, all the Ko-rean automotive industry’s efforts, largely lead by Hyundai, were supported by UTC Fuel Cells sup-plying the core technology. Therefore, this was considered a breakthrough in terms of national abilities to build and master the complicated core system.

Table 10: Milestones for hydrogen and PEMFC fuel cell demonstrations in transport in Korea.


33

According to [Winkler], the governmental funding for H2 and FC is 90 million US$ per year. Fur-thermore, Korean government’s strategy includes subsidising of investment and loans, as well as a tax reform that supports alternative energies by tax cutting, and mandatory installations in public buildings. Related per capita of population the Korean effort seems to be one of the highest public H2 and FC funding world wide.

The planning includes detailed action plans per technology and market. However, According to [Winkler], some aspects may be seen as too optimistic, even if the programmes are led by indus-try with a clear industrial commitment, research centres and universities are service suppliers.

3.5 References [KCCI: Desirable energy policy direction in the era of hydrogen fuel, KCCI Press Release, June 7, 2005. http://english.korcham.net/bbs/viewnotice.asp?code=reports&page=4&id=227&number=227&keyfield=&keyword=]

[Winkler, W, Report of the visit of FCEXPO 2005, 10-21 January 2005. Hochschule fur Angewandte Wissenschaffen Hamburg, 2005]

[Hong, Seong-Ahn, Hydrogen & Fuel Cell Activities in Korea, APEC EWG Interim Framework Docu-ment Workshop, March 29-30, 2004. http://www.sentech.org/APEC_HydrogenWorkshopPresentations/08%20%20Korea%20Overview.pdf]

[OEDC: Innovation in Fuel cell and Photovoltaic industry in Korea, http://www.oecd.org/dataoecd/12/13/31967755.pdf]

[FCT: http://www.fuelcelltoday.com/FuelCellToday/FCTFiles/FCTArticleFiles/Article_992_FCT_Korea%20Funding.pdf]

[FuelCellToday: http://www.fuelcelltoday.com/FuelCellToday/IndustryInformation/IndustryInformationExternal/NewsDisplayArticle/0,1602,5632,00.html#]

[/Lee/ “Hydrogen & Fuel cell Activity in Korea”, Presentation on September 14, 2005, by Chang-Hoon Lee, for IPHE]

[JoonAng Daily – IT*Science, Hydrogen Fuel Car Crafted in Korea. News release from Nautilus Institute Asian Energy Security Network (AESNet); http://www.nautilus.org/aesnet/2004/DEC1504/JoongAng_hydrogen_car.doc]


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4 Activities in Singapore

4.1 General framework and (political) objectives According to the country report of Singapore to the UN Johannesburg Summit in 2002 [UN 2002], both land and natural resources are scarce in Singapore. Therefore, it is important to protect them for future generations. Furthermore, Singapore has always aimed at promoting economic growth while protecting the environment. Sustainable development is mainly achieved by ensuring that industries in Singapore adhere to international environmental standards implemented. In addition, specific steps have been taken to promote the use of cleaner fuels for transportation and energy consumption, and plans are in place to increase recycling rate. In this respect, the Economic De-velopment Board (EDB) is promoting environmental technology and seeks to develop this relatively new sector as a competitive advantage to grow the key manufacturing industries in Singapore.

Moreover, Singapore is encouraging cleaner means of power generation. For example, gas pipe-lines from Malaysia and Indonesia now provide natural gas to Singapore. Natural gas is cleaner and will allow Singapore’s power plants to generate electricity more efficiently and reduce air pol-lution.

Singapore is also looking into the development of new clean energy sources/mechanisms such as fuel cells. Serving this target Singapore’s roads will be used as a test-bedding site for hydrogen-powered fuel cell cars. This will make Singapore the first country in Asia, outside Japan, to initiate this sort of activity.

4.2 Stakeholders


Economic Development Board (EDB) of Ministry for Environment and Land Transport Authority (LTA).


None listed.


DaimlerChrysler is the supplier of the fuel cell vehicles (Fig. 13), and BP is in charge of the hydro-gen stations (Fig. 12).


None listed.


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4.3.1 SINERGY

SINERGY is a project implemented from July 2004 to July 2006 (24 months). It is run by the Eco-nomic Development Board (EDB) of Ministry for Environment and Land Transport Authority (LTA).

The objective is to provide a collaborative platform for industry players to undertake technology development and demonstration projects in the area of clean energy, for both stationary power and transportation applications. The government will establish the necessary regulatory framework, provide potential incentives for development activities and create a common infrastructure for all partners. This is part of Singapore’s overall plans to become a compelling hub in clean energy technologies, with world-class capabilities in research, test-bedding and manufacturing [UN 2002].

The programme consists of six (6) Fuel Cell vehicles leased from DaimlerChrysler (cost 60,000 USD/year). Furthermore, two hydrogen stations have been erected by BP, one based on off-site natural gas reforming (70 kg/day), and one using on-site water electrolysis.

The total budget for the programme is 28 Million USD (23.2 MEUR). The FCV’s are leased to Minis-try for Environment, DaimlerChrysler Singapore, BP Singapore, Lufthansa Singapore, Michelin, and Conrad Hotel.

Fig. 12: BP Runs both hydrogen refuelling sites in Singapore. [Tange 2004].

4.4 References: [Johannesburg Summit 2002, Country Profile, Singapore. United Nations, 2002]

[Tange, Shoji, The Progress of FCV Demo Projects in Asia and Australia. Presentation at JHFC Seminar 2004. http://www.jhfc.jp/e/seminar/report03.html]

[Tange, Shoji, The Progress of FCV Demo Projects in Asia and Australia. Presentation at JHFC Seminar 2005. http://www.jhfc.jp/e/data/seminar_report/index.html]


36

Fig. 13: The SINERGY demonstration fleet consists of six (6) DaimlerChrysler FCell vehicles. [Tange 2005].


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5 Activities in Australia 5.1 General framework and (political) objectives The hydrogen efforts are part of the commitment of the government of Western Australia to ad-vance sustainable transport energy solutions in the area of jurisdiction. A number of initiatives are being introduced to encourage the development of clean fuels.

The main considerations, according to [Whitehouse 2004] are energy security and self sufficiency, with beneficial and positive spill-over effects towards the environment. In addition, some industry development opportunities are recognised, and meeting local community expectations are also considered.

For the purpose of defining the strategy, the Government of Western Australia has appointed the Transport Energy Strategy Committee, to report to the Minister for Planning and Infrastructure to on future transport energy supplies for Western Australia. The Department for Planning and Infra-structure (DPI) provides support to the Committee.

There has been some discussion in the Council of Australian Governments (COAG) about an en-ergy policy. However there is no transport energy policy or strategy in place in Australia at local, State, Territory or Commonwealth Government level, nor any discussion to prepare such a strat-egy.

As framework conditions for this target-setting it was recognised by the government, industry and the community at large that Western Australia is highly dependent in economic and social terms on road transport. Furthermore, oil prices impact significantly on transport costs, which are par-ticularly important to the Western Australian economy because of the large distances across the state. Also, carbon-based fossil fuels have a negative impact on both the global and local ecosys-tem as well through pollution emissions and greenhouse impacts.

It is also a widely accepted fact that oil is finite and cheap commercially exploitable oil will be in-creasingly in short supply in the next one to two decades. Furthermore, the Western Australian community has relatively low elasticity towards increases in transport fuel prices, despite the fact that Western Australia enjoys relatively low transport fuel prices compared with some other parts of the world. Therefore, it was concluded that there is a need to consider diversifying sources of transport energy to increase energy security and seek opportunities for employing alternative transport energy options such as bio-fuels and hydrogen.

The eventual aims are to make Western Australian transport system less vulnerable to impacts from oil shortages and enable the transition towards more sustainable new transport energy sources, such as bio-fuels or hydrogen, as efficiently and effectively as possible with minimal dis-ruption to the community.

5.2 Stakeholders / partners


Commonwealth Government

• Department of the Environment and Heritage • Australian Greenhouse Office


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West Australian Government

Public transport authority Dept. for Planning and Infrastructure


Murdoch University

http://www.murdoch.edu.au/

• Project evaluation, including public perception project and LCA/system studies • in kind participation; no funding for the STEP project


DaimlerChrysler

• Manufacturing and in-use follow-up of the buses

Fig. 14. DaimlerChrysler subsidiary Evobus supplied the fuel cell busses to STEP

Path Transit

http://www.path.com.au/

• Private company, Urban Bus Operator in Perth, Western Australia, under the Department for Planning and Infrastructure of the Australian Government. • Operator of the FC buses


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• in kind participation; no funding for the STEP project

BP

http://www.bp.com.au/

Hydrogen technology and fuel supply

amount of monetary contribution appr. 2 million USD (2.5 M AU$, 1.7 MEUR)

Fig. 15. Hydrogen refuelling station of the STEP project in Perth [Tange 2005].


United Nations

United Nations Environment Programme (UNEP)

http://www.unep.org/

United Nations Industrial Development Organization

http://www.unido.org/

Endorsement of the project.


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5.3 Public funding into fuel cell and hydrogen R&D,D,D The governmental organizations providing financial support for the hydrogen efforts are Common-wealth Government, thru Department of the Environment and Heritage, Australian Greenhouse Office, that is quoted to provide Financial contribution around 2 million USD (2.5 M AUD)1.

Furthermore, West Australian Government is via Public transport authority and its Deptartment for Planning and Infrastructure supporting the programme with some 8 million USD (10 M AUD).

In total this aggregates up to some 12.5 million AUD equalling to some 8.2 million EUR at present exchange rate.

[Whitehouse 2004] also mentions an election commitment of Australian government amounting to 67 million AUD (17.5 MEUR) to invest in the fuel cell bus fleet. Figures above represent only about half of that reserve.


5.4.1 Sustainable Transport Energy Project (STEP) [http://www.dpi.wa.gov.au/fuelcells/index.html]

Sustainable Transport Energy Project (STEP) a.k.a. Perth Fuel Cell Bus Trial, is the main action of hydrogen fuel introduction In Australia. It is a satellite operation closely linked to the European CUTE project. Three fuel-cell powered Citaro buses similar to those in CUTE and ECTOS (Iceland) are manufactured by DaimlerChrysler, and have been in operation since

Buses are running since September 2004 5 days/week, 8 to 10 hours/day, on three different routes. On-line, web-based tracking system is available to see, where the buses are. The operation is slated to run until the end of year 2006, and completion of the whole demonstration during the Q1 of 2007.

Hydrogen production volume is between 60 to 80 tonnes/day, and takes place at a BP oil refinery. A small sub-stream is diverted into purification and initial compression to 160 bar. Fuel delivery is by truck to filling station at the bus depot. Hydrogen is stored at >430 bar, dispensed at 10 min fill-up time.

The total cost of the trial is nearly 15 million AUD (9.3 MEUR), mostly met by the WA Government, but also sponsoring from participants [http://www.dpi.wa.gov.au/fuelcells/faqs.html].

Bus Operations Project

Golas of the Bus Operations Project are to evaluate the operations of the buses and the fuel cells as well as the hydrogen refuelling arrangements in terms of performance, reliability, and durability from the perspective of bus fleet operations. Furthermore, to record and evaluate detailed and specific technical performance data in collaboration with EvoBus in Germany and Ballard in Canada. Alongside, to collaborate with the concurrent NEFLEET, ECTOS and CUTE projects as well as simi-lar projects in other parts of the world, particularly that of AC Transit in California.

1 Source: [Tange 2005]


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Fig. 16: Overall schedule of the STEP project in Perth [Tange 2005].

Anticipated outcomes of this part are technical data on and evaluation of the performance of the fuel cell buses and the associated systems, and a history of the maintenance and other require-ments, including resource inputs, of the buses and associated infrastructure over the life of the trial. These will be used to give recommendations to the bus and fuel cell manufacturers and the refuelling facility suppliers on how their products might be improved, as well as make recommen-dations to Government on the anticipated future of fuel cell buses and transport generally and anticipate the role that Government might take in facilitating that future development and possible transition to a hydrogen economy. [http://www.dpi.wa.gov.au/fuelcells/busop.html]

Two main routes (see Fig. 17) are Central Area Transit (CAT) and Circle Route. CAT consists of 3 different circular orbits, between 8 and 10 km roundtrip, with average speed of 15 km/h. The bus-ses have carried about 350.000 passengers on this route until January 2005. The Circle Route is about 80 km long circular around the Swan River delta, connecting a number of train stations and Perth Airport, with some 27 km/h average speed and max speed of 80 km/h. Until January 2005, the total accumulated passenger toll is nearly 450,000.

Along with the bus operations project, STEP includes separate projects for public perception, sys-tems analysis, cost/benefit analysis and industrial opportunities.

Public perception study

The specific aims of the public perception study are to:

• analyse and compare public knowledge and perceptions of hydrogen buses in Perth before and after the introduction of the Hydrogen Bus demonstration project; • estimate the perceived economic value of the environmental benefits of the Hydrogen Bus in Perth, before and after the Hydrogen Bus demonstration project;


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• determine potential barriers to the introduction of the Hydrogen Bus in terms of public knowledge, perceptions and values.

Fig. 17: Operating routes of the STEP FC busses in Perth. [Tange 2005]

Project evaluation

The evaluation projects include:

• Evaluation of bus operational performance and comparisons with diesel and compressed natural gas (CNG) buses. • A Life Cycle Assessment (LCA) of the buses, their manufacture, operation and de-commissioning, and the hydrogen production and use processes. This will be looking at energy and materials inputs and outputs . • Cost benefit analysis of the buses, now and in the future, from the perspective of what the impact on society might be. • Examination of possible industry development opportunities in Western Australia that might result from a “hydrogen economy”. • Evaluation and analysis of Public Perceptions of the use of hydrogen and fuel cells as a main-stream energy system in transport in Perth and Western Australia.

[http://www.dpi.wa.gov.au/fuelcells/ecobus_newsletter1.htm]


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The objective and aims of the evaluation programme are targeted to enable the following:

• Government to make informed judgements on the possible future costs and benefits of op-erating hydrogen powered fuel cell buses;

o the changes needed in Government statutes and other systems to remove obstacles from and/or facilitate any move to a hydrogen economy;

o options for the role that Government might take in facilitating any move to hydrogen powered fuel cell buses and/or a hydrogen economy; and

o the opportunities for industry to participate in any future hydrogen economy; • The community to make informed judgements on the implications and desirability of moving towards a hydrogen economy, and the full economic costs and benefits of doing so; • Industry to make informed judgements on the opportunities for and the potential benefits of becoming involved in any move to a hydrogen economy; • Western Australian and Australian research organisations to become better informed of and involved in fuel cell technology development and the hydrogen economy; and • Bus and fuel cell engine manufacturers to further develop fuel cell technology.

[http://www.dpi.wa.gov.au/fuelcells/evaluation.html]

Industry Development Opportunities

The objectives of this sub-project are to identify the development opportunities for the industry associated with the possible implementation of hydrogen powered fuel cells and a hydrogen based economy, and make recommendations as to how these might be exploited by Western Australian industry.

Anticipated outcomes are an analysis of industry development opportunities; an assessment of the various economic preconditions (skills, capital availability, technology, etc) associated with these various opportunities; an evaluation of the specific opportunities which Western Australian industry might be able to exploit; an evaluation of the various success factors associated with the opportu-nities (time frame, risks, etc) and; recommendations as to the role Government might take, if any, in facilitating companies exploiting these opportunities.

[http://www.dpi.wa.gov.au/fuelcells/industrydev.html]

5.5 References http://www.hydrogen.org.au/

http://www.hydrogen.asn.au/

http://www.fuelcells.org.au/

[http://www.dpi.wa.gov.au/fuelcells/index.html]

[Whitehouse, Simon, The Perth Fuel Cell Bus Trial, 2nd International Fuel Cell Bus Workshop, Porto, November 2004.]

[Tange, Shoji, The Progress of FCV Demo Projects in Asia and Australia. Presentation at JHFC Seminar 2005. http://www.jhfc.jp/e/data/seminar_report/index.html]


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6 Summary and conclusions The hydrogen (and fuel cell) activities in Asia are quite extensive and advanced, especially regard-ing Japan, and to some extent South Korea. In terms of setting the goals and the money spent, they seem to challenge those of US and Europe. However, the publicly available figures of the funding and its allocation to different themes are too vague to make a proper comparison. Thus only qualitative assessment and comparison is possible.

Based on that assessment, the Japanese fuel cell vehicle demonstration (JHFC) is broadly equal to the Californian Fuel Cell Partnership (CAFCP) in U.S., in terms of vehicles put on the road and number of hydrogen fuel filling stations erected. Also the outreach efforts and educational activi-ties seem very similar between these two initiatives. The Korean effort is clearly less advanced, but South Korea has clearly put more weight on long-term hydrogen production technologies rather than short-term demonstration activities. Estimate is that Korea is some 5 years behind in their effort to bring hydrogen vehicles in public demonstration and use.

The Chinese bus programmes as well as the Australian efforts are comparable to the EU CUTE activity, sharing the same technology from DaimlerChrysler. However, for China this is only a “tip of the iceberg”, and they seem to have a lot of domestic R&D that may in some 5 to 10 years sur-face with independent technology to be implemented in broad-scale demonstrations and field-tests.

The initiative in Singapore is in rough terms only a small sub-set of the U.S. CAFCP or the Japa-nese JHFC, and closer to the European “Zero-Regio” project sharing the same fuel-cell passenger car technology from DaimlerChrysler (FCell), or “Clean Energy Partnership” (CEP) in Berlin, a larger European effort.

Additionally, there seems to be no cooperation or coherence between the national efforts, rather they are seeking their partners outside, either from EU (Australia to CUTE, or Singapore to Daim-lerChrysler), or US (Korean project for the nuclear hydrogen production).

Furthermore, each of the nations has main objectives that are somewhat different from those of the other's. In Japan the key objective is clearly strong industrial commercialisation of the hydro-gen technology, and matters of energy security and sustainability or greenhouse gas reductions are of secondary concern. Japan has a strong automotive industry on global scale, and clearly they seek to maintain its cutting edge performance also in terms of the new propulsion and energy supply technologies.

In some respect Korea follows this target-setting, but seems that on their agenda the energy sup-ply security may hold supremacy over the industrial and commercial aspects, even if the latter is gaining importance as the market starts to emerge. Korean automotive industry is raising all the time, and challenging the current global players. Their fuel cell an hydrogen research may help the industry to strenghten its position in this very competitive market.

Moreover, China is foremost using the hydrogen and fuel cell technology in seeking solutions to the severe air pollution problem it is encountering in its urbanisations, as well as long-term energy supply security and diversity. Using the large coal reserves to produce hydrogen is seen as a lucra-tive possibility to replace oil in transportation in the long-term.

Singapore is clearly seeking to employ the latest and most advanced technology in terms of energy supply for transportation, and, furthermore, to maintain the clean status of their air quality, as well as be on track towards replacing fossil fuels with non-fossil and renewable sources of energy. However, apparently be no attempts at the moment aiming at industrial manufacture of these


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technologies exist, and Singapore seems to satisfy its needs by relying on commercially available technologies provided by the global automotive and energy industries.

The position of Australia seems to be somewhat ambiguous. On Commonwealth level the primary concerned is in seeking reductions greenhouse gas emissions, as the governmental office provid-ing the financial support to the existing hydrogen efforts is coming from Australian Greenhouse Office. However, on local governmental level (West Australia) the energy supply security and eco-nomics play a stronger role, and the aims are to shield transport system towards impacts from oil shortages and enable the transition towards more sustainable new transport energy sources with minimal disruption to the community. Industrial applications are clearly on lower level of impor-tance, and the technology at this stage is all coming from the global vehicle and energy industry.

All the efforts in Asia to bring hydrogen in transportation are still in R&D or demonstration phase, and so far no actual programme seem to be aimed at the deployment and wide dissemination of these technologies. It is still early for this type of support.

Transport-related hydrogen activities in Asia

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