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ANNUAL REPORT

2016LEADING EUROPEAN ASSOCIATION REPRESENTING OVER 100 COMPANIES AND ASSOCIATIONS IN THE FUEL CELLS AND HYDROGEN INDUSTRY

Making Hydrogen Energy an Everyday Reality Across Europe

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IN THIS REPORT

Letter from the Chairman 4

About Hydrogen Europe 6

2016 A Year in Review 8

Interview with Secretary General – Jorgo Chatzimarkakis 10

Towards a Hydrogen Ecosystem 12

The Hydrogen Council 14

A Word from Association Pillar Chairman Werner Diwald 15

Hydrogen Europe Participates in FCH2JU Projects 16

Join Us 18

Audited Figures Hydrogen Europe and PPFA 19

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LETTER FROM THE CHAIRMAN

– Raphaël Schoentgen

Dear Members, dear Readers,

It is a great pleasure to address all of you as the new Chairman of Hydrogen Europe. I would like to take this opportunity to warmly thank my predecessor Pierre Etienne Franc who over a six year tenure, and along with all of the former Board members and the broader association, shaped Hydrogen Europe to bring it to where it stands today.

Bringing all our stakeholders together and aligning ourselves on an ambitious vision for the future of Hydrogen in Europe, with key strategic actions to take this ecosystem to the next level, have been our Board’s and my personal priorities from day one.

In recent months we have had a series of strategic discussions with the European Commission, high level politicians, CEOs and other European associations to promote fuel cell and hydrogen (FCH) technologies. We have advocated for recognition of its crucial role as a new key energy vector and its potential as a missing link to couple different sectors in the energy system. Hydrogen - a gaseous form of electricity - is indeed

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a game changer on the road to a cleaner and ultimately zero-emission energy world. Its potential impacts citizens and industries alike, and it will change our lives.

In parallel, we have worked to secure the association’s future on firm and stable foundations, while planning for its development. One crucial element was the expansion of our staff, with new joiners integrating into the existing FTI Consulting team that has been with us since the beginning. The addition of a full time Director and Secretary General, along with many other motivated team members, will definitely help us further blossom.

On the projects side, the past year brought a lot of funding opportunities for the fuel cell and hydrogen community. With a volume of €1175m the public-private funding of projects remained on a similar level compared to previous years.

In terms of content, we have seen a wide array of interesting topics, but I would also like to point out that we now see more application cases, as well as larger systems, so the message is “hydrogen is becoming big!” This trend is apparent through some of the projects:

1) Following progress in hydrogen cars, we now see hydrogen buses being deployed in cities, for example, 139 are expected through the JIVE project. Forklift based projects such as Don Quichote have demonstrated the feasibility of this technology too.

2) The first large wind to power projects are on the ground which demonstrates that hydrogen is a perfect vector to capture excess renewable energy.

3) The first micro CHP and industrial CHP are showing that fuel cell technologies are great to transform electrons into hydrogen and hydrogen back to power and heat.

4) I would also mention that the hydrogen refuelling station opened near Brussels airport, through the SWARM project, along with the Toyota Mirai which the FCH2JU Programme Office has on standby, have been used to demonstrate to policy makers how quickly a fuel cell electronic vehicle (FCEV) can be refuelled.

On the regulatory front, the European Commission’s proposal for the Clean Energy Package represents a success for our community. FCH technology is well positioned in the proposal which provides a definition of energy storage that includes hydrogen. This definition, combined with provisions to enhance flexibility of the electricity grid, should support an investment framework for hydrogen establishing strong connections between renewable power, heating and cooling as well as the transport sector.

The upcoming year will give us plenty of opportunities to further visualize and demonstrate the maturity of hydrogen and fuel cell technologies – work is already underway to have an active presence at the 23rd session of the Conference of the Parties (COP 23) to the UN Convention on Climate Change in Bonn, where we can reach a huge audience.

In parallel, and I know that I can count on all of you, we will work actively to put forward the right ideas on next steps, both in terms of demonstration projects and research projects. We have mature technologies, and are co-leading at world level, as competition intensifies we need to keep acting and prepare for the next generations.

On behalf of the Hydrogen Europe Board, I would like to thank all of our members and supporters for their contribution in 2016. Let’s work for an even better 2017. Our best wishes and please enjoy reading this report!

Kind regards,Raphaël SchoentgenChairman of Hydrogen Europe

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ABOUT HYDROGEN EUROPE

THE HYDROGEN EUROPE BOARD The association is led by the Board consisting of seven members with specific roles. Board members are elected directly by Hydrogen Europe members. As the executive body of the association, the Board is supported in its work by the association’s own staff, FTI Consulting and the Coordination Group (Committee Leaders).

Hydrogen Europe is the leading European association working to make fuel cell and hydrogen (FCH) technologies an everyday reality in Europe. With over 100 members, the Association represents companies of all sizes as well as national and regional associations from across Europe in the field of FCH technologies. Hydrogen Europe’s work is driven by the Board, the technical committees and the secretariat staff and falls into two key streams –innovation and advocacy.

In innovation, Hydrogen Europe partners with the European Commission and the research community in a public-private partnership, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU). The FCH2JU drives a funding stream worth €1.3billion to accelerate the market introduction of these clean technologies in energy and

transport. The technical committees which are made up of Hydrogen Europe and N.ERGHY members are responsible for shaping the annual funding calls for proposals until 2020.

In advocacy, Hydrogen Europe serves as the industry’s reference point and the single voice of the hydrogen sectors amongst EU decision-makers. This work is carried out by the association’s advocacy staff and the Advocacy Taskforce which is composed of and driven by our members. Hydrogen Europe’s capacity in advocacy has been strengthened in the last year through the inclusion of national and regional associations which provide a two way communication between national and regional decision makers and the advocacy team’s engagement with EU policy makers.

Raphael Schoentgen [ENGIE]CHAIRMAN OF THE BOARD

Didier Pfleger [ALSTOM] TREASURER

Denis Thomas [HYDROGENICS]BOARD MEMBER IN CHARGE OF MEMBERSHIP & JTI COMMITMENT

Andreas Frömmel [FCES]HYDROGEN EUROPE VICE - CHAIR & ENERGY TRANSITION SOLUTIONS CHAIR

Valerie Bouillon-Delporte [MICHELIN]TRANSPORT PILLAR CHAIR

Nils Aldag [SUNFIRE]ENERGY PILLAR CHAIR

Werner Diwald [DWV] ASSOCIATION PILLAR BOARD CHAIR

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COMMITTEE LEADERS The Coordination Group is divided into five committees, each working on sub-topics across energy and transport. Alongside serving as the fora through which Hydrogen Europe members exercise their right to shape FCH2JU Calls, the Committee leaders are technical experts who collaborate with the Advocacy Taskforce (ATF), as well as national and regional associations, to input into European Union consultations and represent the association on various issues.

THE HYDROGEN EUROPE SECRETARIAT The Brussels based secretariat team has grown considerably in the last year incorporating 4 full time members of staff - a concrete demonstration of the sector’s growth and success. The secretariat continues to be supported by FTI Consulting, a global business advisory firm.

C1: FUEL CELLS FOR VEHICLESJoerg Wind [DAIMLER] and Bernardo Mota [BMW]

C2: TRANSPORT INFRASTRUCTUREPhilippe Mulard [AIR LIQUIDE]

C4: FUEL CELLS FOR POWEROlivier Bucheli [SOLID POWER] and Deputy Ilaria Rosso

[ELECTRO POWER SYSTEMS]

C5: ENERGY TRANSITION SOLUTIONSDennis Hayter [INTELLIGENT ENERGY]

Joost Koomen ADVOCACY LEAD

Stephen Jackson SECRETARIAT & PPFA LEAD

Ioannis Moraitis COMMUNICATIONS MANAGER

Sabrine Skiker COMMUNICATIONS & EU POLICY MANAGER

Ivan Pozgaj ADVOCACY SUPPORT

Nicolas Kraus EU POLICY & REGULATORY AFFAIRS MANAGER

Bronagh O’Hagan SECRETARIAT & PPFA SUPPORT

HYDROGEN EUROPE STAFF

FTI CONSULTING

C3: ENERGY TO HYDROGENJurgen Louis [SHELL] and Deputy Louis Sentis [AIR LIQUIDE]

Jorgo Chatzimarkakis SECRETARY GENERAL

Nicolas Brahy DIRECTOR

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TWITTER TAKE OFF

Launched in December 2015, our social media feeds went from strength to strength in 2016. As an important means of engaging with key stakeholders and boosting the profile of Hydrogen Europe, our Twitter feed has generated more than four million impressions and boosts more than 1,400 followers including decision makers such as European Commissioner for the Energy Union, Maroš Šefčovič.

FIRST FULL TIME STAFF MEMBERS

In February Hydrogen Europe welcomed its first Secretary General who is driving the advocacy and external communications side of our work. Since then Nicolas Brahy, Director of Operations joined the team as well as Sabrine Skiker (Communications and EU Policy Manager), Nicolas Kraus (EU Policy and Regulatory Affairs Manager) and Ioannis Moraitis (Communications Manager). The addition of the association’s first full time resources, now working alongside the board, committee leaders and the FTI Consulting team, shows the growing ambition of the association, and the potential benefits the members see in EU engagement.

JUNE & NOVEMBER – NEW BOARD MEMBERS

In June Hydrogen Europe’s General Assembly appointed three new board members: Raphaël Schoentgen (ENGIE) as Chair, Didier Pfleger (Alstom) as Treasurer, and Valérie Bouillon-Delporte (Michelin) became Transport Chair.

More additions were then welcomed at the Association’s General Assembly of November. Nils Aldag (Sunfire) was appointed Energy Chair, Denis Thomas (Hydrogenics) secured the Membership and Joint Undertaking Commitment Chair and Werner Diwald (German Hydrogen and Fuel Cell Association) became the first Chair of the Association Pillar.

2016: A YEAR IN REVIEW

JUNE

NOVEMBER

Follow Hydrogen Europe

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28th OCTOBER – PRESENTATION TO EUROPEAN COMMISSION POLICY OFFICERS

Hydrogen Europe secured an opportunity to inform the European Commission’s Directorate-Generals for Energy, Mobility and Transport, and Research and Innovation, about the role of hydrogen in energy storage. The lunchtime conference was attended by more than forty Commission policy officers. Targeted presentations outlining the state of play in FCH technologies were delivered by Hydrogen Europe Chairman Raphaël Schoentgen (ENGIE), Hydrogen Europe Board Member Denis Thomas (Hydrogenics) and Tobias Mischlau (Uniper).

22nd NOVEMBER 2016 – ASSOCIATION PILLAR KICK OFF

Hydrogen Europe welcomed the first eight national associations as members:

the French Hydrogen and Fuel Cell Association (AFHYPAC)

the German Hydrogen and Fuel Cell Association (DWV)

the Danish Partnership for Hydrogen and Fuel Cells (DPHFCP)

the Hungarian Hydrogen and Fuel Cell Association

the Latvian Hydrogen Association (H2LV)

the Romanian Association for Hydrogen Energy (ICSI)

the Spanish Hydrogen Association (AeH2)

WaterstofNet representing Belgium

HYDROGEN EUROPE HITS THE 100 MEMBER MARK

As noted by our Chairman on this remarkable milestone back in September:

This surge in membership is testament to the

momentum Hydrogen Europe is generating as it drives

hydrogen technologies towards full commercial deployment.

It builds on several years of intense work of the members

and support of all of our stakeholders. We are keenly aware

of the strength of our diversity in geography, size and

applications and we look forward to welcoming more

companies and associations.

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INTERVIEW WITH SECRETARY GENERAL

– Jorgo Chatzimarkakis

After one year in office as Secretary General, what are your key takeaways?

Working for the hydrogen and fuel cell sector is fascinating. I actually went into politics because of hydrogen 30 years ago and it's something that still fills me with energy today. It has been remarkably exciting to witness FCH technologies like cars and trains maturing and becoming ready for market launch - I’m proud to be involved. Moreover, I am pleased to see how decision makers perceive FCH technologies today. Both policy makers and the traditional energy sector show a growing interest in hydrogen and its applications. Moving people to have a look, to understand, and ultimately become a supporter of our pivotal technology, is what makes our job satisfying. But the main take away is the need to overcome the knowledge gap. Policy makers and the public need to know more about FCH technologies and understand what Hydrogen Europe stands for. Once they know, they will definitely embrace these technologies.

How is the transition from NEW-IG to Hydrogen Europe going?

Historically, as NEW-IG, the association was solely the industry grouping of the FCHJU. Hydrogen Europe has since developed the trade association aspect of our offering and our internal team has now grown considerably. When I started as Secretary General I only worked closely with the Board and FTI Consulting. Since May 2016, Nicolas Brahy joined as Director of Operations and at the end of 2016 we started the recruitment process for three additional colleagues who joined in January 2017.

How do you see the shape of the Association?

Our association underwent significant personnel changes last year with new Board members as well as a change of leadership at the FCH2JU. Such changes are of course a common feature of life in a European association; Hydrogen Europe has embraced these and turned them into opportunities with the support of our extremely

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committed stakeholders. Another important step was the decision to include national and regional associations as members. Across the membership types, we have gained many more, now boasting a total of 107 members from 21 Member States. We now work more closely than ever before with our research partner N.ERGHY under the umbrella of the FCH2JU and continue crucial engagement with the European institutions. Importantly, we have also reached out to new industrial sectors that are very enthusiastic about hydrogen. The potential for enlargement of our association’s scope continues, as we can see increased interest in new fields like “power-to-refinery” and “green hydrogen for steel”.

What’s the state of the sector in your view?

Many success stories have shown why it was so important to be supported by public funds. The European investment in the FCH2JU pays off: as shown by the market readiness of cars, buses, forklifts and fuel cells for residential cogeneration. We are now on our way to achieving a similar development in the field of electrolysers which will make renewable hydrogen affordable.

But most importantly, we feel that other sectors reach out to us more and more. This year, we will hold several workshops with the wind industry and gas infrastructure stakeholders in Europe. We will enhance our cooperation with the solar industry and with the suppliers of storage solutions and of co-generation.

The future of our sector very much depends on the regulatory framework. The example of the electricity grid says it all: everybody expects everything from electricity but if we don't allow for more flexibility in the grid through storage technologies like hydrogen, we will not succeed in the energy transition. This is why the European Commission’s “Clean Energy Package” (several directives for 2020-30 energy sector), launched in November 2016, is so important. We are very happy to see that some basic regulatory improvements for our sector have been included in the proposals - but there is still a lot of work to do.

What are the main challenges and the main obstacles for the sector?

The main challenge for the FCH sector is the need to be better understood and outreach more broadly. In transport, many more stakeholders need to understand the equation: If we are serious about decarbonisation and improvement of air quality, we need to electrify a major part of transport which implies a mix of battery, wires and hydrogen. In the energy sector, there is clearly no silver bullet, but hydrogen in combination with fuel cells definitely has the potential to cover a lot of issues and to be the missing link in the energy transition. Again, the challenge is to explain that hydrogen has a variety of contributions to make in the energy sector. Hydrogen helps the electricity system by integrating renewables and storing energy. Hydrogen can bring additional value to the gas grid by coupling it with the electricity grid and by reducing its carbon intensity. Fuel cells and hydrogen also help the heating sector by reducing its CO2 and air quality impact. We need to convey the idea that next to electricity, the energy sector requires hydrogen as a second energy vector with similar potential for complete decarbonisation. Further, we need to get a legal framework that allows for this. The proposed Clean Energy package includes some recognition of this role of hydrogen. We will struggle to keep, never mind increase, this recognition through the legislative process.

What’s your vision for the sector?

My vision is that hydrogen and fuel cells will be seen as a natural solution for the intermittent nature of renewable energy and as the enabler of sector coupling. Our role is clear: combining existing gas and electricity infrastructure with new energy stemming from renewable sources. It would allow decarbonisation of large parts of transport and mobility, heating and cooling and of the industrial energy sector. The launch of the Hydrogen Council in Davos – which we worked on intensively in 2016 - showed that the industry is ready. The next step will be to demonstrate this to a global public at the COP23 conference, the UN framework convention on climate change in Bonn.

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TOWARDS A HYDROGEN ECOSYSTEM

low res image

Photo courtesy of Element Energy CTE

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TOWARDS A HYDROGEN ECOSYSTEM

The successes Hydrogen Europe made in the last year have been mirrored by the wider sector; 2016 saw indisputable progress in FCH technologies, on the regulatory front, in FCH2JU projects and in the broader funding landscape.

There is proof that FCH technology in the transport sector is ready for commercialisation is several applications – cars, buses, forklifts and refuelling stations. In the energy sector its maturity is apparent in micro CHP and electrolysers. A number of strong demonstration projects, such as the H2ME2 and CHIC, have verified this. Secured in the FCH2JU 2015 Call, H2ME2 will add 1200 hydrogen vehicles to the European fleet. Similarly, the finalisation of the CHIC project and the launch of larger fleets with JIVE show that fuel cell electric buses can offer a functional solution for cities to decarbonise their public transport fleets, improve air quality and lower noise levels. As projects like these prove so successful, it’s not surprising to see national level funding programmes, like NIP in Germany, being extended.

FCH technology is also moving into new applications. 2016 was the year the first zero-emission train, Alstom’s hydrogen fuel cell Coradia iLint, was launched and the world’s first four seater hydrogen fuel cell plane took off in Germany. The technology also started progressing into maritime applications when Royal Caribbean announced they will use FCH technology and Norway's Fiskerstrand began working towards a hydrogen powered ferry through the HYBRIDShips project.

There is reason to be optimistic about the regulatory front in Europe following significant progress last year. The introduction of the Clean Energy Package positioned hydrogen as a missing link in the energy transition. With this package came a definition of energy storage which includes hydrogen, as well as support for an investment framework in this sector. It also established strong connections between renewable power, heating and cooling and the transport sector for the energy transition - this is a positive framework for the sector. Hydrogen Europe has also been active on advocacy on the Alternative Fuels Directive (AFD). This aspect of the association’s work proved fruitful this year as most EU Members States included FCH technology in their final implementation plans for the AFD.

2016 was the year that Paris, Madrid, Athens and Mexico City announced plans to take diesel cars and vans off their roads by 2025, and the Dutch authorities agreed that by the same deadline all new buses in the country shall be zero-emission battery or hydrogen buses. In November, the High Court in London ordered its Government to draw up an improved plan to bring air pollution within legal limits and the following week, London Mayor Sadiq Khan announced that diesel double-decker buses will be phased out from the capital's fleet from 2018.

The cumulative effects of these successes places Hydrogen Europe and the broader sector in a very strong position as efforts continue into 2017. They provide a firm basis to further the ultimate objective of making FCH technologies an everyday reality.

Mayor of London Sadiq Khan and a world premiere: the first fuel cell double decker bus.

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THE HYDROGEN COUNCIL

One of the highlights of 2016 was Hydrogen Europe’s involvement in the organisation and launch of the Hydrogen Council at the World Economic Forum at Davos. The Hydrogen Council is currently made up of CEOs and Chairpersons from 13 industry and energy companies: Air Liquide, Alstom, Anglo American, BMW Group, Daimler, ENGIE, Honda, Hyundai Motor, Kawasaki, Royal Dutch Shell, The Linde Group, Total and Toyota.

The Hydrogen Council was launched on 17 January 2017, following four months of intensive work and collaboration between council members and the related regional associations, namely Hydrogen Europe and our US counterpart FCHEA. Hydrogen Europe Director Nicolas Brahy played a key role in the definition of the hydrogen vision study presented during the launch and Secretary General Jorgo Chatzimarkakis participated as an observer in the closed door Hydrogen Council CEO meeting which was held ahead of the public launch.

During the launch, members of the Hydrogen Council confirmed their ambition to accelerate their already significant investment, currently estimated at €1.4 Bn/year, in the development and commercialisation of the hydrogen and fuel cell sectors. This investment will only be effective if key stakeholders, such as policy makers, business and hydrogen players, international agencies and civil society, increase their backing of hydrogen as part of the future energy mix with the appropriate policies and supporting schemes.

A report entitled ‘How hydrogen empowers the energy transition’ - commissioned by the Hydrogen Council and delivered by McKinsey – further details the benefits that hydrogen is ready to provide, sets out the Council’s vision, and outlines the crucial actions policy makers must implement in order to fully unlock and empower hydrogen’s contribution to the energy transition.

Working alongside other regional associations in Asia and in the US, Hydrogen Europe will continue to cooperate with the Hydrogen Council and look to complement its advocacy and communications efforts at EU level.

Photo courtesy of Hydrogen Council

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A WORD FROM ASSOCIATION PILLAR CHAIRMAN

– Werner Diwald

It’s been an honour to join Hydrogen Europe as the inaugural Board member representing national and regional hydrogen associations. In 2016, Hydrogen Europe welcomed the first eight national associations as members – the Belgian, Danish, French, German, Hungarian, Latvian, Romanian and Spanish. One of the first joint efforts of this grouping in their work together on the HyLAW project. This project will look into the removal of legal barriers to commercialisation of FCH technologies.

The Hydrogen Europe advocacy team is doing a remarkable job liaising directly with EU policy makers, and has made huge strides in recent years. Considering Member State specific needs for the future energy mix, Hydrogen Europe does not only inform association members about EU policy updates, its agenda is increasingly shaped by their input. Working with the national and regional associations will allow Hydrogen Europe to gain ever more insight into the implications of EU Policy on Member States. We will work with our new national and regional association members to understand what key pieces of EU Legislation, such as

the Renewable Energy Directive, look like at transposition stage. Similarly, the national and regional associations inform the advocacy team of the challenges particular to their constituency, whether these are political, legal, technical or financial. Hydrogen Europe is now better placed than ever to overcome hurdles on the road to commercialisation of hydrogen technologies.

From the offset, it was clear that there is huge potential for collaboration between the hydrogen technology associations across Europe. Hydrogen Europe kick-started this new strand of our work by completing a detailed mapping of what each national and regional association does – and it did not take long to find synergies. Our association members will not only benefit from resources shared by Hydrogen Europe, but the association is pleased to offer a platform for collaboration and ideas sharing.

Undoubtedly, Hydrogen Europe and our association pillar members are going to keep benefiting from this dynamic. It is also interesting to think about the potential of this new grouping in terms of raising awareness about hydrogen technologies outside Brussels. As our national level advocates become stronger in their efforts to engage with policy makers, the media and the public across Europe, in no fewer than nine languages, it will not be long until the potential of hydrogen technologies is fully understood at national and regional level.

Hydrogen Europe’s work with our new membership pillar has certainly gotten off to an exciting start – and we are always looking for more ways to leverage this new dynamic. There is huge potential to work together, pool resources and learn from each other.

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For the first time in its history, Hydrogen Europe has taken the strategic decision to get involved in two key European projects: HyLAW and JIVE.

Hydrogen Europe takes part in European projects when they provide an added value for its members and for the sector as a whole, in its natural role of leading the promotion of an application which is very close to commercialisation (e.g. buses through participation in JIVE). In the case of HyLAW, the outputs of the project will provide a strong input in the advocacy activities of the association, and offer a long lasting tool for the sector with the set-up of the database.

HYDROGEN EUROPE PARTICIPATES

in FCH2JU Projects

23 HyLAW partners from:

We decided to take part in these projects as they fit with the mission of Hydrogen Europe:

• Either by creating a new activity which is key for the whole sector: HyLAW is a notable first; this is the first time that the hydrogen industry will be looking at the legal barriers to the uptake of hydrogen technologies across 18 countries. The HyLAW database compiling legal and administrative processes applicable to hydrogen and fuel cell technologies will provide a long lasting input and will be integrated in the Hydrogen Europe website and updated by the team. HyLAW pursues a second key objective for our sector: with the set-up of a strong network of national hydrogen associations.

• Or ensuring the communication of flagship projects with a collective deployment effort. Fuel cell bus is a technology with clear societal benefits and a high visibility. Large deployment projects have the potential to trigger a real commercialisation. It is also essential to use this project to raise awareness of clients and public authorities that fuel cell buses and the refuelling infrastructure are ready. This is a clear mission for Hydrogen Europe. In line with its mission, Hydrogen Europe can also participate in projects with policy and regulatory aspects.

AT

BG

ROHU

FI

NO

FR

ES

DEPL

SE

IT

LV

PT

BE

DK

NLUK

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JIVE

The JIVE project (Joint Initiative for hydrogen Vehicles across Europe) is an FCH2JU funded project deploying 139 zero emission fuel cell buses across five member states, the first deployment of this scale across Europe. JIVE will run for six years from January 2017. The overall objective of JIVE is to advance the commercialisation of hydrogen fuel cell buses through large-scale deployment of vehicles and infrastructure so that by the end of the project (early 2020s) fuel cell buses are commercially viable for bus operators to include in their fleets without subsidies and that local and national Governments feel empowered to regulate for zero emission propulsion for their public transport systems. JIVE will introduce new fleets of fuel cell buses into urban and regional bus operations at a scale never before attempted. This will be made possible by multiple cities and regions collaborating in joint procurement processes, allowing large orders to be placed with single bus suppliers. The procurement activities are organised into three clusters and by clustering geographically, it is possible to provide common specifications for the buses, which is essential to unlock the economies of scale. JIVE involves 22 partners, of which the regions and cities of Wuppertal, Cologne, Rhein-Main (Germany), London, Birmingham, Dundee, Aberdeen (United Kingdom), South Tyrol (Italy), Riga (Latvia) and Slagelse (Denmark). Hydrogen Europe is leading the dissemination activities of the project.

Both projects have received funding from the Fuel Cells and Hydrogen 2 Joint Undertaking under grant agreement No 737977 (HyLAW) and No 735582 (JIVE). This Joint Undertaking receives support from the European Union’s Horizon 2020 research and innovation programme and Hydrogen Europe and N.ERGHY.

HYLAW

HyLAW stands for Hydrogen Law and focuses on the removal of legal barriers to the deployment of fuel cells and hydrogen applications. It is a flagship project aimed at boosting the market uptake of hydrogen and fuel cell technologies providing market developers with a clear view of the applicable regulations whilst calling the attention of policy makers on legal barriers to be removed. The project brings together 23 partners from across Europe and is coordinated by Hydrogen Europe.

The HyLAW partners will first identify the legislation and regulations relevant to fuel cell and hydrogen applications and legal barriers to their commercialisation. They will then provide public authorities with country specific benchmarks and recommendations on how to remove these barriers. HyLAW main outputs will be:

1) An online and publicly available database compiling legal and administrative processes applicable to hydrogen and fuel cell technologies in 18 countries across Europe

2) National policy papers describing each legal and administrative process, highlighting best practices, legal barriers and providing policy recommendations

3) A pan-European policy paper targeted towards European decision makers

4) National and European workshops for dissemination of the findings and convincing public authorities to remove barriers

HyLAW started in January 2017 and will run until December 2018. The database will be maintained by Hydrogen Europe for a minimum three years after the end of the project.

Photo courtesy of RVK

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JOIN US

WE OFFER:

• Exclusive opportunity to shape calls for proposals of the Fuel Cell and Hydrogen 2 Joint Undertaking (FCH2JU) funding mechanism worth €1,3 billion by submitting topics in the Annual Working Plan (AWP)

• Direct access to leading European FCH technology companies and associations as potential partners in FCH2JU funded projects through involvement in technical committees

• Proactive monitoring, analysis and reporting on European transport and energy policies through the participation in, and support of the advocacy task force (ATF)

Company size

Annual membership

Multi-annual membership*

MICRO € 4,200 € 3,000SMALL € 6,300 € 5,000

MEDIUM € 9,450 € 7,500LARGE € 16,800 € 12,500

Existing member New recruited member

All sizes MICRO SMALL MEDIUM LARGE

Rebate per referral € 1,500 € 2,250 € 3,000 € 4,500

HOW TO JOIN?

CRITERIA:

All companies with industry interests in hydrogen and fuel cells and with a European office can apply for membership. Please consult Hydrogen Europe Bylaws (www.hydrogeneurope.eu) for detailed rules, eligibility criteria, rights and obligations. For companies willing to commit to a multi-annual membership (for 3 years), the association offers discounted rates.

REFERRAL FEE:

Another great opportunity to bring additional savings to your company once it becomes a Hydrogen Europe member is via the association’s referral system. All full members receive a rebate per recruited member according to the new member’s size (see table below). Rebates are applied towards the membership fee in the following year and can amount up to 50% of the standard annual membership rate for the respective company.

• Direct engagement with decision makers in order to shape policies and thus foster business opportunities with the support of the secretariat and the ATF

• Focused engagement with other EU associations in the fields of transport and energy to make the case for FCH technologies, build synergies and develop new business streams

• Enhanced visibility and networking through FCH technology dedicated media production, high level events and workshops with the support of the secretariat

• Work with FCH technology companies and associations, through one of the fastest growing trade associations in Brussels.

LEADING EUROPEAN ASSOCIATION REPRESENTING OVER 100 COMPANIES AND ASSOCIATIONS IN THE FUEL CELLS AND HYDROGEN INDUSTRY

Making Hydrogen Energy an Everyday Reality Across Europe

ANNUAL REPORT

2016

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* 3-year commitment, reduced annual fee

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2016 FINANCIAL REPORT

HYDROGEN EUROPE FINANCES

According to the report presented to the Hydrogen Europe General Assembly on 23 March 2016, Hydrogen Europe is in very good financial health thanks to strong membership growth combined with prudent cost control and cash management. Increased income contributed to the Association’s two main strategic investments in 2016 that included hiring the first Secretary General and Director for Operations as well as increasing advocacy through a dedicated 2016 advocacy plan.

We welcomed 11 new members, resulting in the largest Membership base to date (crossing the 100-members landmark) and adding a further €83k in membership income (€23k better than budget). Hydrogen Europe also contributed to the Hydrogen Council launch in Davos (€60K) and played the role of a collecting office and contractual hub for the project. Finally, Hydrogen Europe closed 2016 with a net surplus of €13.8k, which is €3.8k better than the budget for the year.

PROJECT CONTRIBUTION

2016 marked further improvements in the project contribution (PPFA) system. Thanks to improved awareness of all FCH2JU beneficiaries and attentive management by the Hydrogen Europe and N.ERGHY Boards, the process continues to be efficient and effective. However, continuous attention is required to ensure further smooth operation.

In 2016, the Hydrogen Europe Secretariat was simultaneously running collection for six FCH JU and FCH2JU Calls launched between 2010 and 2016 (Calls 2009 and 2014 have been completed). The collection process for the Call 2016 collection started towards the end of the year and is making good progress. With a yearend positive cash position of €6.3M, sufficient income was thus generated to cover all private sector contribution to the FCH2JU running costs in line with the agreed payment calendar. We would like to thank project coordinators as well as all our members for their continued efforts to ensure this important process runs smoothly and successfully.

Hydrogen Europe reports on two financial entities: First, Hydrogen Europe as an association and second, the project contribution (PPFA) system established to contribute towards FCH2JU running costs, is administered by Hydrogen Europe on behalf of the Industry Grouping and the Research Grouping. Both financial entities have separate income streams, cover different categories of costs and are executed under specifically defined governance structures.

PROFIT & LOSS

Income Actual 2013 Actual 2014 Actual 2015 Budget 2016 Actual 2016

Income from Members 547,575 613,675 649,857 685,000 751,450Other Income 65,926 8,019 107,781 406,750 544,517Total Income 613,501 621,694 757,637 1,091,750 1,295,967

Total Costs 549,791 602,836 724,939 1,081,750 1,282,163

Net Hydrogen Europe Income/(expenditure) 63,710 18,858 32,698 10,000 13,804

BALANCE SHEET

ASSETS 2013 2014 2015 2016 LIABILITIES 2013 2014 2015 2016

Due from members 91,692 8,576 9,250 285,997 Suppliers 46,680 21,470 0 54,337

Allowance for Bad debts 0 0 -1,750 -8,960

Accruals 56,473 95,179 94,608 185,499advances 389,554 19,000 19,200 19,200Deferred Income 75,400 0 0 323,125

VAT 42,643 3,088 74,425 24,058 FCH 2 JU (running costs PO) 3,799,066 4,275,777 5,173,518 6,457,036

Bank NEW-IG 499,132 580,622 841,273 849,908 Net Accumulated reserves bfwd 375,623 439,333 458,191 490,889

Bank PPFA 4,173,039 4,277,331 4,855,017 6,392,886 Result for the year 63,710 18,858 32,698 13,804

Total Assets 4,806,506 4,869,617 5,778,215 7,543,889 Total Liabilities 4,806,506 4,869,617 5,778,215 7,543,889

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Hydrogen Europe SecretariatAvenue Marnix 231000 Brusselssecretariat@hydrogeneurope.eu Tel: +32 2 54 087 75Fax: +32 2 513 05 77www.hydrogeneurope.eu | @H2EuropeEU Transparency Register: 77659588648-75