Fuel Cell and Hydrogen International Markets Contents

Transcription

1 Fuel Cell and Hydrogen International Markets Contents 1. Executive Summary... 2 Section 1: Introduction Hydrogen London The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) Applications... 4 Section 2: International activities (2014) Portable Markets in Singapore, United Kingdom and North America... 6 Singapore... 6 United Kingdom... 7 North America Stationary Markets in Japan, Korea and Germany... 8 Japan... 8 Korea... 9 Germany... 9 North America Transport Markets in California, Europe and Japan California Europe Japan Section 3: Future prospects ( ) Renewable Energy Power-to-Gas The Outlook for 2015 and beyond

2 1. Executive Summary We can be assured that 2015 will be a year of innovation, high profile press activity and optimism within the hydrogen and fuel cell (HFC) markets, if it is to be a continuation of what the world experienced in This is a report highlighting key developments within the three main regions for HFC markets (Europe, Asia and North America). California maintained its position centre-stage as number one US State to implement game-changing policies that directly inform and demonstrate to the rest of North America and the world how committed they are to commercialise HFC miles away, Japan completed the year with 41 hydrogen refuelling stations (HRS) in planning, on top of their existing 13, making them global leaders in the transport infrastructure market. Korea already proclaimed high status for creating the world s largest fuel cell park for the stationary market (Gyeonggi Green Energy 59MW), but that was not enough, judging by their announcement in July to construct a fuel cell power generation facility (Pyeongtaek 360MW) by It has been reported that the portable sector was struggling to contribute to the financial and commercial viability of the HFC market 1, but 2014 showed that it is still a viable sector to invest in. Intelligent Energy (IE) gained the most attention with the release of their product, Upp, a USBcompatible portable charging device. IE announced 50,000 units were to be produced and shipped before 2014 year-end. Before you stop to marvel, the growth did not stop there as car manufacturers earned their ink in newspapers with announcements and launches of their fuel cell electric vehicles (FCEV). Hyundai got ahead of the game with the release of their ix35 FCEV an update on previous models, Toyota announced the release of their Mirai for 2015, and Honda unveiled their revised concept car, with news that it will first hit Japanese roads in 2016, then the US and Europe shortly after. This report is not exclusively for members, but more so for internal colleagues, stakeholders, and the general public who would benefit from more exposure on global initiatives

3 Section 1: Introduction 2. Hydrogen London 2 We ensure London is in is in the best position to take advantage of the development of hydrogen and fuel cell technologies for transport and the built environment. The Mayor of London and the Greater London Authority is working with our members to attract funding into the capital to demonstrate HFC technologies and advance the market. This initiative will secure jobs; bring in investment, growth and environmental sustainability for London. Our role is to provide the platform for stakeholders to accelerate the commercialisation and raise awareness of the technology to Londoners. I firmly believe that hydrogen fuel cell technology will eventually replace the internal combustion engine but we have to show the public the vehicles, let them kick the tyres and demonstrate that it is more than just a science fiction story, it works and can be used in a very similar manner to the cars they are used to. That is why these new vehicles are so important, it is about putting the technology on the street and taking the first steps towards a viable hydrogen future both in London and nationwide. Deputy Mayor of London for business and enterprise, Kit Malthouse 3. The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) 3 is a European public-private partnership supporting research, technological development and demonstration (RTD) activities in HFC technologies. Its aim is to accelerate the market introduction of these technologies, as they possess huge potential in having the ability to contribute towards achieving a carbon-free energy system. The first phase put 500 million of funding into over 150 privately-led projects in transportation, stationary power and heat, early markets such as backup and portable power, and hydrogen production. In 2014, the formal approval of phase two was announced (FCH 2 JU). A staggering 650 million will be funded to projects for seven years; the first call came last July. This announcement came to be the most important policy development in Europe and reiterates the effort being made to accelerate the commercialisation of HFC locally, encouraging Europe to compete with the world

4 4. Applications For categorisation of application definitions, we have continued with the same standard that organisations E4tech 4 and the now defunct, Fuel Cell Today, have used in the past as the classifications are very much applicable and relevant today. Fig

5 Although the three main regions all invest in the three main markets, they all have one or two primary focuses as fig.2 demonstrates below: Industrial stationary power Residential stationary power (micro- CHP); Transport (FCEV/HRS) Transport (FCEV/HRS) Residential stationary power (micro-chp) Transport (FCEV/HRS) Commercial/industrial stationary power (backup power) Fig.2 5

6 Section 2: International activities (2014) 5. Portable Markets in Singapore, United Kingdom and North America Portable fuel cell applications fall into four areas: Charging consumer electronics e.g. mobile phones Auxiliary power units in leisure applications, such as camper vans and caravans Military use for soldier-borne power and unmanned aerial vehicles (UAV) Small power levels for educational uses and toys i.e. lego kits used for the London Schools Hydrogen Challenge, Aberdeen Schools Hydrogen Challenge and Abu Dhabi Science Festival A predominant barrier for fuel cell application is competing with traditional business models and the tackle to drive behavioural change. We live in a world with extensive expectations that consumers take for granted. If new technology is not visibly seen to enhance our lives in an efficient manner, or if it is not cheaper than its pre-existing competitors, the public will not purchase it, and investors will not invest in it. However, there are many companies developing technologies and creating new markets, thus defying the norm. Horizon Fuel Cell Technologies (Horizon), MyFC, SFC Energy, Neah Power Systems and IE have all challenged the market, specifically in battery chargers for consumer electronics, as smartphone users will understand that with their typical heavy usage there will long be a promising market opportunity here. Singapore There has been strong growth in shipments in the portable fuel cell sector from , with annual sales from some manufacturers running in the 10,000s range. This is mainly because of larger numbers in the consumer products sector e.g. mobile phone chargers, as aforementioned. Horizon kicked off the commercialisation of fuel cell handheld USB chargers in 2011 with their Minipak. Since then they have successfully launched their Hydropak and Aquigen 180 in 2013 and 2014 respectively. Both are catered towards the camping and caravan markets. 6

7 United Kingdom IE performed incredibly well in 2014 with the launch of their portable USB charger, Upp, irrespective of the fact that the product is relatively new to the market. With a target to produce and ship 50,000 units before year-end, IE successfully partnered with the retail branches of Brookstone, Sure International and Apple UK to turn that goal into a reality. Upp was developed by Intelligent Energy plc in November 2013, and has been designed to revolutionise the way we charge our smartphones, tablets, e- readers, digital cameras and other compatible handheld USB devices. The device allows you to have the freedom of personal energy generation by giving you instant and continuous power, away from the mains, through reusable Upp cartridges. A single fuel cell cartridge can charge your device for up to one whole week. Elsewhere in Europe, the Swedish company MyFC and Horizon (founded in Singapore); have had sales of small units with their products PowerTrekk and Minipak, respectively. 7

8 North America Neah Power Systems announced earlier in 2014 that their BuzzBar, which forms the bulk of their USBdevice charger, BuzzBarSuite, will be fuel cell-compatible as of September 2014, adding to the product s ability to be charged with grid power, solar panels and batteries. 6. Stationary Markets in Japan, Korea and Germany Fuel cell shipments for stationary application contribute the most to overall megawatt unit numbers. This is linked to the fact that many of these shipments are for large installations in homes, office blocks and factories. The global fuel cell market is heavily dependent on public sector support in its initial phase; this needs to occur before private investors have confidence in the commercial viability of the market, and are happy to financially support the industry. The FCH JU plays a significant role in the development of pan-european projects, but elsewhere it is national and regional governments providing support. Japan Japan is a perfect example of what is possible when government buy-in to new opportunities, regardless of what critics may say. The country s suffering at the hands of the Fukushima-Daiichi Nuclear Power Plant disaster, placed government in a unique position regarding the wellbeing of its citizens. The disaster ultimately altered their attitudes towards energy, energy security and health. The disaster occurred the same year that Japan s 3 rd Strategic Energy Plan (SEP) was published. A document that assertively stated half or more of Japan s energy is to come from nuclear power in the future. Approximately three years after Fukushima s demise, in April 2014, the Japanese government produced their 4 th SEP with the objective that hydrogen will hereafter have a central role in Japan s energy future. 8

9 Japan s Ene-Farm initiative places the country as world leader on fuel cell micro-combined Heat and Power (micro-chp) units with 100,000 units installed. Government subsidy of 20 billion (approx. 114 million) in 2014 increased the affordability of purchasing units, thus encouraging consumer sales. This further led to the drop of installation prices. Korea Korea s climate action plan is to reduce its greenhouse gas (GHG) emissions by 25 percent by 2020 and 40 percent by 2030 from 1990 levels. Their commitment to this has been impressive, as they have taken grand steps to increase the amount of energy from renewable energy sources since fuel cell sites have been installed in Korea since 2008, totalling 115.6MW of power for homes and buildings. Leading energy producer, POSCO Energy, set up a 2.4 MW fuel cell power generation plant in the city of Pohang during 2008 this was the largest of its kind and gave POSCO reputable status. Since then, the country has had significant prominence owning the world s largest operational fuel cell plant in Hwaseong, Gyeonggi Province. The Gyeonggi Green Energy plant opened in 2014 supplying 59MW of power for the area. POSCO have now reached new heights building a 360MW fuel cell plant in the city of Pyeongtaek, Gyeonggi Province. This is planned for operation in 2018, and is expected that the power plant will attract foreign investment of US$28.5 million (approx.. 19 million) whilst creating 500 new jobs. Germany There is great national and state support towards CHP, and in particular micro-chp, in Germany. Their Callux programme has achieved 1 million hours of operation, with 350 units delivered by 2014 year-end. Thus it is safe to say that although the deployment of and availability of subsidies for fuel cell micro-chp deployment in Europe is not up to speed with Japan, the continent is positively crafting its own way into the stationary market. 9

10 Successful micro-chp partnerships were formed in 2014 between Japanese and European manufacturers. Bosch is working with Aisin, Viessmann with Panasonic, and Baxi with Toshiba. These collaborations further prove Germany s commitment to alternative energy, and Japan s desire to share their technology and best practices. North America Historically, North America has rejected investing in fuel cells or other distributed generation technologies (DG) in favour of larger systems that fit with traditional models. However, 2014 saw several more US companies make a significant shift in how they perceived the viability of fuel cells and DG. Companies such as Apple, ebay, Kellogg s and many other high-profile businesses trust that DG is the future as fuel cells fit neatly with DG s diverse and resilient model. Newark, Delaware has the largest deployment of fuel cell technology in the US. The plant is powered by Delmarva Power and Bloom Energy, supplying 30 MW of power to 22,000 homes. Bloom Energy dominates this market in the US, as the main provider of stationary fuel cell plants in California, Connecticut, and New York etc.. 10

11 7. Transport Markets in California, Europe and Japan Hyundai have made extraordinary steps to fend-off FCEV cynics, by being the first car manufacturer to deploy mass-produced, commercially available FCEVs in the UK in late October The delivery of its ix35 FCEV is a result of the FCH JU-funded Hydrogen Transport in European Cities (HyTEC) 5, and Hydrogen for Innovative Vehicles (HyFIVE) 6 pan-european project, as well as the Innovate UK-funded, London Hydrogen Network Expansion (LHNE) 7 project. These projects share a goal to achieve HFC commercialisation by increasing the number of vehicles and HRS sites across Europe. Source: Hyundai UK Hyundai delivers first ix35 FCEVs to UK customers: Air Products, ITM Power (ITM), Transport for London and Johnson Matthey Hyundai s UK deployment aptly followed the announcement from Office of Low Emission Vehicles (OLEV) minister, Matthew Hancock, to allocate 11 million of funding to alternative fuels, specifically hydrogen. The ambition of the published report is to support the establishment of an initial network of up to 15 HRS by the end of 2015, and to support the delivery of public sector FCEVs. To add to its deliveries in Europe and Korea, Hyundai delivered its first commercial lease of a FCEV in the US in June

12 The transport sector is very diverse, and there are mobile applications other than cars being developed around the world, from utility vehicles, buses, scooters, vans, planes to go-karts. In December an agreement was made by Airbus and South Africa s National Aerospace Centre to jointly fund a three-year research project conducted by Hydrogen South Africa that looks into the application of fuel cells on airliners. HFCs will be considered to replace the Auxiliary Power Units (APUs), not the jet engines. This follows on from the Air Transport Action Group s policy for manufacturers to halve 2005 net aviation carbon emissions by One thought that the auto racing industry would be a tough area to break, as the characteristics of fuel cells, mainly the producing little noise aspect, go against what the industry represent. However, companies like GreenGT, are working on fuel cell race cars with successful results saw an important announcement in October that Plug Power will supply Californian-based manufacturer and food distributor, Golden State Foods with 39 utility vehicles. The Plug Power lift trucks will deliver goods to more than 460 McDonald s in the Midwestern US. California In North America, the transport market has gained huge traction and California has been an inspiration for other states to develop within the HFC market. California is another part of the world that receives huge support from the State, which has helped to propel this market to success. Back in June, new legislation committed the State to deliver up to US$20 million per year to fund HRS until at least 100 public stations exist. Nine HRS were opened last year alone, with 51 intended to be operational by the end of are in partnership with Air Products and the remaining 22 are contracted by other HRS providers. The California Air Resources Board (CARB) conducted their first report with positive results. The report found that there were 125 FCEVs registered with the Department of Motor Vehicles in To increase the uptake of FCEVs, Hyundai started offering free fuel and servicing with its leased ix35. Europe Europe is the frontrunner in fuel cell bus commercialisation with activities taking place in Aberdeen, Germany, London, Milan, Oslo and Stockholm to name a few. Buses have contributed to the growth in MW shipments for transport and on the vehicle side, Hyundai have delivered a number of their ix35s to the UK, Sweden, Italy etc. Germany, however, are the most advanced when it comes to HRS with 25 planned by the end of 2014 and 50 by the end of this year. 12

13 In October 2014, Sainsbury s announced that they are to install the UK s first supermarket HRS at their Hendon store, in North West London, by the end of The station will be operational early The supermarket will be working with international leaders in hydrogen refuelling infrastructure, Air Products, to deploy the 700-bar station. This delivery is part of the LHNE project, thus will join a network of existing stations in the UK. Bus demonstrations continued to develop in Europe, notably the Aberdeen Hydrogen Bus project 8 in Scotland and Clean Hydrogen in European Cities (CHIC) project 9 in Europe. Japan It has been incessantly proven, that the Japanese public, businesses and industries have full support from their government and 2014 really brought that message home for anyone who doubted their development. After test driving fuel cell cars in July, Japan s Prime Minister Shinzo Abe pledged a subsidy of at least 2million (approx. 11,300) per FCEV; this is still being formalised, along with a budget for infrastructure and hydrogen station operating expenses. 54 stations were planned for the end of 2014 (13 existing research stations that will continue to operate and 41 commercial stations built by several private sector teams). 100 HRS is the enormous ambition by the end of Shinzo Abe test driving FCEVs garnered huge publicity and validation that HFCs are a part of Japan s energy future, and he has further announced that 50% 70% of new car fleet must be new generation vehicles by 2030 which implies alternative fuels will be permanently on the table. Towards the end of 2014, Honda unveiled their revised concept car, the successor to their FCX Clarity, in Japan with news that it will first hit Japanese roads in 2016, then the US and Europe shortly after. The following day, the Toyota Mirai FCEV made its debut at the Los Angeles Auto Show. The car manufacturer began selling the Mirai in Japan in December, expecting to sell 400 Mirais in Japan by the end of 2015, whilst in the US; it aims to move at least 3,000 units by the end of In Europe, the plan is to sell 50 to 100 units a year around

14 Since then, Toyota announced that they will invest approximately 20billion (approx. 112million) to triple domestic production capacity for the Mirai in light of strong demand from the corporate and public sector. Section 3: Future prospects ( ) 8. Renewable Energy Several countries are determined to source hydrogen from renewable energy, as opposed to the current system of extracting hydrogen from natural gas. There is much dispute over the carbon footprint of FCEVs from the manufacturing process and steps have been taken to ensure that FCEVs are truly beneficial to the environment from well to wheel: The UK s first commercial scale green hydrogen refuelling facility was given its official launch at the Honda of the UK Manufacturing site in Swindon last October. This enhanced facility will produce commercial volumes of truly green hydrogen produced from solar power, by electrolysis, at the point of use. California s commitments extend further with their current requirements that 33% of the hydrogen gas produced for stations must be from renewable resources. A HRS in Orange County, California is in front of a wastewater treatment plant, because the hydrogen comes from human waste. Bacteria digests what has been flushed down toilets to produce a mix of carbon dioxide and methane, the gases are cleaned up and fed to a different type of fuel cell that produces electricity, heat and hydrogen, and the hydrogen is piped to the pump. This demonstration project, producing about 200 pounds of hydrogen a day, helps fulfil California s mandate that a third of the hydrogen for cars come from renewable sources. Italian company Electro Power Systems (EPS) is one of Europe s more successful fuel cell developers with 579 units in service, primarily in telecommunications. EPS has been working on a new product, the ElectroSelf. The product combines a fuel cell and electrolyser. Power-to-Gas Power-to-Gas (P2G) energy storage captures excess renewable power using rapid response electrolysis and produces renewable hydrogen which is stored in the gas grid. It is a solution to the fact that the way renewable energy is produced is intermittent and stored ineffectively i.e. a prolonged period of extremely windy weather, will produce too much electricity for what is actually needed at that particular time, leading to bottle-necked electricity. ITM has the world s only proven, permitted, operating and referenced system providing P2G using rapid response proton exchange membrane (PEM) type electrolysers. ITM s systems convert electrons to hydrogen and interfaces with compliant gas mixing plant to inject the hydrogen into the gas distribution network in Frankfurt. 14

15 Most developed countries already own a vast energy storage infrastructure through the pressurisation of existing transmission and distribution infrastructure. This allows it to be recharged without the need of it being discharged first, so when the wind blows, this can be taken and used to top up storage, this is critical for storing renewable energy which is intermittent in its generation. The hydrogen produced is injected into the natural gas system to displace natural gas, thus decarbonising the network by reducing greenhouse gas emissions and reliance upon fuel imports. If the power is derived mainly from renewable power sources, only low-carbon hydrogen will be produced. Thereby the P2G approach can facilitate a transition from natural gas to a green mixed gas by making use of both of the existing energy grids on a global scale. 9. The Outlook for 2015 and beyond It has been known for years that the 2015 will be an important date in the fuel cells sector, with the announced availability of fuel cell cars in showrooms, but there is some more exciting news to add to the mix: Toyota made a high-profile appearance at this year s International CES show (CES 2015), not just to showcase their hydrogen-powered Mirai car, but to also announce that they will freely share up to 6,000 patents they own covering hydrogen fuel cell technology. 10 Japan s Ministry of Economy, Trade and Industry has proposed to spend US$110 million developing their HRS network in 2015 on top of the US$118 million committed in Japan intends to extend their HRS network from 54 to 100 by the end of will see a significant increase in shipments of both units and MW for all three markets. 13 California s FCEV fleet is estimated to grow to 6,650 by the end of 2017 and 18,500 by the end of Daimler s new FCEV launch date is (page 15) 12 (page 15) 13 (page 20) 14 (page 19)