www.HFPeurope.org

European Hydrogen and Fuel Cell Technology Platform

Joint Technology Initiative on Hydrogen & Fuel Cells

Agustín EscardinoPresident & CEO - NTDA Energia

Member of the Executive Group – HFP

11 November 2005Brussels

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Futuro Mapa Energético

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OUTLINE

Part 1 - Summary of the KEY ISSUES

Part 2 - Presentation:

1. Hydrogen & Fuel Cell Technologies

2. Strategic Issues and Potential Contribution to EU Objectives, including the EU Competitiveness Agenda

3. Need for an EU-level Approach

First Step: the Hydrogen and Fuel Cells Technology Platform

The Joint Technology Initiative Commitment from Industry

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Summary of the KEY ISSUES

An integrated hydrogen and fuel cell infrastructure will respond to crucial EU challenges

Security of Energy Supply

- Oil peak production/geopolitical issues...

Environmental challenges

- Climate change

EU Competitiveness

- A potential huge market = investment, growth, jobs

Importance of R&D&demonstration + deployment of hydrogen and fuel cell technologies in the EU

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Summary of the KEY ISSUES

Paradigm shift in how energy is produced and used

Scale of the effort in terms of R&D&demonstration + deployment

infrastructure planning

value chain development

market creation...

requires a concerted effort by all stakeholders (EC, MS, regions, large companies, SMEs, Universities, Technology Centres,

financing community...) at EU level

Technology Platform (TP)

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Summary of the KEY ISSUES

TP strategic agenda has concluded a PPP joint undertaking (JTI) is required for implementation

A Joint Technology Initiative for Hydrogen and Fuel Cells can provide for:

A more durable commitment (critical mass) and a strong political signal

Will facilitate financing from industry & financing community

A substantial increase in public funding (EC, MSs, Regions(?))

Will complement/guide PPP initiatives at MSs/Regions l

Industry influence (NOT control) over content & objectives

A concerted strategic orientation

Commitment already expressed by 44 partners

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Summary of the KEY ISSUES

Small & Medium Enterprises (SMEs) play a crucial role

Hydrogen and fuel cells are disruptive technologies SMEs play a crucial role in the development of these

technologies

Difficulties for SMEs to be involved at EU level (like in the Technology Platform)

Necessary to adopt measures to support the participation of Small and Medium Enterprises

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1. Hydrogen & Fuel Cell Technologies

Hydrogen is an ENERGY CARRIER, like electricity (not a source)

Provides a most efficient way to STORE ENERGY

VERSATILITY: It can be produced from many primary sources of energy, including renewable energies, and it can be used for many applications, including transport, stationary and portable

FORMS A COMPLETE CIRCLE WITH ELECTRICITY: (Excess) electricity can be used to produce hydrogen, and hydrogen can be used to generate electricity via a fuel cell

The combination of Hydrogen and fuel cell technologies can provide for CLEANER AND HIGHLY EFFICIENT CONVERSION SYSTEMS

Generally considered ONE OF THE MAIN COMPONENTS OF THE FUTURE MIX OF ENERGY TECHNOLOGIES

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2. Strategic Issues and Potential Contribution to EU Objectives, including the EU Competitive Agenda

Strategic Challenges

1. SECURITY OF SUPPLY Future oil production peak/geopolitical issues

Progressive increase in prices/problems of supply

2. CLIMATE CHANGE, and environmental pollution in general

3. EU COMPETITIVENESS As compared to the US, Japan, China, India, Brazil...)

Potential Contribution from H2 & FC

1. H2 is a versatile fuel: can be produced from many primary energy sources, and used for many applications, allowing for DECENTRALIZED supply structures

2. H2 (+FC) can reduce greenhouse gas emissions of transport vehicles down to zero in the long term - cleaner & more efficient conversion

3. POTENTIALLY HUGE MARKET

INVESTMENT & JOB CREATION

EU GROWTH & COMPETITIVENESS

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3. Need for an EU-level Approach First Step: the Hydrogen and FCells TPlatform

High Level Group (Oct. 2002) Vision Report presented at political level (June 2003): eventual fully integrated hydrogen and fuel cell infrastructure

The Report calls for a concerted action at EU level involving all stakeholders public and private (large companies, SMEs, RTDs, Universities, NGOs): Technology Platform (HFP) (Dec.2003)

Mirror Group of Member States (MS) established – HFP has a mobilising effect on MS strategies (+ ERA-NET: European Research Area - Networking & Coordination of National Programmes)

Strategic Research Agenda (SRA) and Deployment Strategy (DS) (“Strategic Overview”) endorsed by the HFP General Assembly (March 2005) – IT CALLS FOR A JTI (PPP) as the most efficient way to implement the Strategic Overview

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3. Need for an EU-level Approach - Fully Integrated Hydrogen and Fuel Cell Infrastructure

H2 Production

Distribution

Supply&

Distributed Generation

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3. JTI - Rational & Advantages as Compared to FP Enhanced funding both public (EC, MSs, Regions, EIB...) and private (large companies, SMEs...) – capacity to attract additional national support & leverage industry funding, and funding from other sources (e.g. EIB)

Allow for a more durable committment from Private (large companies and SMEs) and Public Partners

Strong political signal Encourage investments and R&D activities in the EUSignal to the financing community = increased investmentGlobal competition demands a strong EU response

Will complement PPPs being developed in this field at National and Regional level

Concerted operational focus

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3. JTI - Rational & Advantages as Compared to FP

SMEs: necessary supporting measures to engage SMEs and

foster industry development accross the EU. This should include:

1. The setting up of an EU-specific, sector-specific fund for seed & early stage capital, with participation of the EC or the EIF

2. The setting up in the Member States of sector-specific seed & early stage finance facilities in the form of capital (not subsidies)

3. MS direct financial support to the participation of SMEs in the JTI

4. The possibility for SMEs in this sector to add EU, MS and regional subsidies up to a high level of intensity of aid (75%)

5. General incentive measures (to generation, purchase of equipment, etc.)

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3. JTI - Commitment from Industry

List of senders of letters of interest in JTI Member Status Total Number: 107 lettersCountry Number of letters

of interest in Member Status

Number of letters of interest in Associate Status

Austria 1 1 Belgium 1 2 Denmark 1 - France 4 2 Finland 2 2 Germany 10 11 Greece 1 1 Italy 9 22 The Netherlands 1 1 Poland - 1 Slovenia 1 - Spain 4 5 Sweden 1 1

European Union

UK 5 8 Norway 1 2 Romania - 1 Switzerland 1 -

EEA and Candidate Countries

Turkey 1 2

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3. JTI – Commitment from Industry

44 letters of Full JTI Membership Name Name Organization Country Sector

Type of sender

1 ANSALDO (Finnmeccanica)

Italy Transport/Stationery

Industrial

2 ATHENS PUBLIC TRANSPORT

Greece Transport Industrial

3 BMW Germany Transport Industrial

4 DAIMLER CHRYSLER

Germany Transport Industrial

5 DOMEL Slovenia

Transport /Stationery Industrial

6 Ferrovie dello Stato Italy Transport Industrial 7 FIAT Italy Transport Industrial

8 FORD OTOSAN - OEM

Turkey Transport Industrial

9 GM EUROPE Switzerland Transport Industrial 10 HOCHBAHN Germany Transport Industrial 11 MAGNA STEYR Austria Transport Industrial

12 UMICORE Belgium Transport/Stationery Portable

Industrial

13 VATTENFALL Germany Transport/Stationery

Industrial

14 WARTSILA Finland Transport Industrial 15 ABENGOA Spain Hydrogen Industrial 16 AIR LIQUIDE France Hydrogen Industrial 17 AIR PRODUCTS UK Hydrogen Industrial 18 BP UK Hydrogen Industrial

19 GAZ DE FRANCE France Hydrogen/Stationery

Industrial

20 HYDRO Norway Hydrogen Industrial 21 HYDRO-GEN Italy Hydrogen SME 22 NTDA Energia Spain Hydrogen SME 23 RICERCA Italy Hydrogen SME

24 SAPIO Italy Hydrogen Industrial 25 SHELL HYDROGEN Netherlands Hydrogen Industrial 26 SOL Italy Hydrogen Industrial 27 TOTAL France Hydrogen Industrial

28 JOHNSON MATTHEY

UK Portable/Stationery

Industrial

29 NUCELLSYS Germany Portable SME

30 NUVERA Italy Portable/Stationery

Industrial

31 PEMEA Germany Portable/Stationery

SME

32 ACCIONA Spain Stationery Industrial

33 CEA – Commissariat à l’Energie Atomique

France Stationery Research

34 CFCL - Ceramic Fuel Ltd.

UK Stationery Industrial

35 ELCOGAS Spain Stationery Industrial 36 EoN Sweden Stationery Industrial 37 FORTUM Finland Stationery Industrial 38 MTU CFC Solutions Germany Stationery Industrial 39 ROLLS ROYCE UK Stationery Industrial 40 SIEMENS Germany Stationery Industrial

41 TOPSOE FUEL CELL

Denmark Stationery Industrial

42 VAILLANT GROUP Germany Stationery Industrial

43 IWV – Forschungszentrum Jülich

Germany X Research

44 REGIONE LOMBARDIA

Italy X Public

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Deploying hydrogen and fuel cells : A marathon, not a sprint!• The challenge of hydrogen and fuel cells requires the

simultaneous development of :– A trans-European hydrogen supply infrastructure– Durable, functional, affordable and safe vehicles – Standardised, inter-connectable stationary fuel cell systems and

equipment

• These all have to be brought together timeously in the context of a strategic roadmap which :– Meets the needs of public authorities – Avoids stranded investments for both infrastructure providers

and Original Equipment Manufacturers

• This requires strategic planning and intensive, integrated research and demonstration. The JTI can provide the framework to launch this process;

• Europe cannot afford to lose this highly complex competitive challenge!!