The role of Hydrogen in e-Mobility

Pedro

GUEDES DE CAMPOS

20th September 2019

Kozani (Greece)

1st BALKAN

CLEAN ENERGY

TRANSITION

CONFERENCE

2019

AGENDAThe role of Hydrogen in e-Mobility

2

1) Fuel Cells and Hydrogen alignment with Climate Policies

2) FCH JU activity – Transport Demos

3) Major Studies/reports (FCH JU and others)

World Greenhouse gas emissions

3

Target is to stay below +2°C average global warming and to aim for +1.5°C (Paris Climate Agreement)

CO2 and Pollution are the problem

B) Pollution:✓Air pollution is a real problem for the health of EU

citizens (467.000 premature deaths - EEA)✓EU cities forced to shut down due to high

concentration of pollutants

A) CO2 problem:✓Transport CO2 evolution on yearly basis vs 2030/2050

decarbonisation targets shows that the recent economical growth increases the CO2 again.

✓Transport counts for nearly a quarter of the CO2 .

Source: European Environmental Agency

Fuel Cells & Hydrogen technologies in the context of the European Energy policy

5

COMPETI-TIVENESS

SUSTAIN-ABILITY

FUELL CELLS and

HYDROGEN

ENERGY SECURITY

1

23

research excellence leading to industry innovation and growth

• H2 is a clean energy carrier• Transport and Energy applications• Generate electricity and heat with very high efficiency• Enabler of (and means for) storage of intermittent

unreliable renewable energy sources • Reduction of CO2 emissions

Increase independence from unstable outside regions

1

3

2

80-95% CO2

reduction

2020 2030 2050

20% CO2 reduction20% Renewables20% Energy Eff.

40% CO2 reduction2732%* Renewables2732.5%* Energy Eff

Clean Planet for All:

net-0 GHG

* 14 June 2018: Commission, Parliament and Council Political Agreement

Similar leverage of other sources of funding: €892 mn

EUR 418 million

135 projects

EUR 376 million

65 projects

EUR 53 million

40 projects

47%

6%

42%244 projects supported

for €893 mn(H2020)

EUR 46 million

4 projects

5%

Strong public-private partnership with a focused objective

FUEL CELLS AND HYDROGEN JOINT UNDERTAKING

EnergyH2 production and distribution H2 storage F/C for CHP

TransportRoad vehiclesNon-road vehiclesRefueling infraMaritime, rail and aviation applications

Cross-cuttingstandards, safety, education, consumer awareness, …

A combined private-public of EUR 1.785 billion has been invested to bring products to market readiness by 2020

7

The role of hydrogen in our society & economyHydrogen allows more renewables in the energy system through storage and enables sectoral integration

NG

(2) SECTORAL INTEGRATION

Heating & Cooling

Transport

(1) STORAGE (seasonal)

Industry Feedstock

AGENDAThe role of Hydrogen in e-Mobility

8

1) Fuel Cells and Hydrogen alignment with Climate Policies

2) FCH JU activity – Transport Demos

3) Major Studies/reports (FCH JU and others)

9

TRANSPORT SECTOR

DEMO PROJECTS

10

FCH-JU Research boosts EU supply chain!

EU H2 TANK DEVELOPMENT

• Reduced cost by 5 to 3000€• 20% reduced mass by design• Use of robots to produce

EU FUEL CELL STACK DEVELOPMENT

• Established a EU supply chain for a fuel cell stack.• Standardisation based on OEM requirements

June ’17: 4 German OEM’s will industrialise this stack Nov. ’17: Nikola US truck OEM buy stacks in Sweden

REDUCTION OF CRITICAL RAW MATERIAL (PLATINUM)

• 70% reduction between 1st & 2nd generation • Fuel cell platinum amount about equal to diesel catalyst• 2 projects aiming for zero-platinum

Europe is leading in several parts of the Hydrogen and Fuel Cells technologies sector

11

All FCH-JU projects together will put 1600 vehicles on the EU market to gain experience with the technology

* According to the action plan of Alternative Fuel Directive** McKinsey study: H2 roadmap for Europe, released Oct 2018.

2017 2018 (Today) 2021 20xx 2025

DAIMLER launched GLC

’13 Hyundai IX35

’15 Renault Hykangoo

’15 Toyota Mirai

’16 Honda Clarity

HYUNDAI Nexo NEW TOYOTA MIRAI &

LEXUS (est.) BMW small series

MARKET IN FAST

EXPANSION…

AUDI / VW

model

Next

HONDA

Clarity

• About 1200 FCEV’s on EU roads• EU OEM’s: small demo’s ~2025,

mass production 2025~ (EU OEM’s part of FCH-JU)PSA: start FCV development

• FIA: Start H2 competition in ’24• California & Japan sales are going

fast due to strong policy supportEU mobility package is good chance to catch up

0

200

400

600

800

1000

1200

1400

1600

1800

Nu

mb

er

Jaar

FCEV's on EU roads

Hyundai Ix35 HyKangoo ZE maxi Toyota Mirai Honda Clarity FCX Daimler-Mercedes

Depl…

Plan…

In H2ME projects

1439

333

Roll out of cars by FCH-JU Hydrogen Mobility Europe (H2ME)

0

1000

2000

3000

4000

5000

6000

2012 2013 2014 2015 2016 2017 2018

Hydrogen fuel cell cars & vans in Europe

EUROPE JAPAN UNITED STATES

EU

JP

US

2018 2020 2022 2025 2030Europe 1.200 - - (0,9 -1 mill)* 1,2 million**China 150 5.000 - 50.000 1 millionJapan 2.500 40.000 - 200.000 800.000

USA 5.000 - - - -S-Korea 0 - 16.000 - -

12

0

10

20

30

40

50

60

70

80

90

100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 todate Sept

Public hydrogen refueling stations

Japan Europe USA

Source: FCH JU KM data collection file, 20/09/2017, public stationsUSA-DoE & CaFCP, Japan-HySUTTo date ca. S1 2017

Deplo…

Planned

In H2ME projects

10

49

https://h2-map.eu/“H2 live” App

H2 mobility Deutschland* According to the action plan of Alternative Fuel Directive** McKinsey study: H2 roadmap for Europe, released Oct ‘18.

2018 2020 2022 2025 2030

Europe 100 - - (820~842)* 3740**China 12 100 - 350 1000Japan 100 160 - 320 (900)USA 35 100 - 200~225 -S-Korea 0 - 310 - -

Roll-out of the required infrastructure in EuropeEurope installs Hydrogen Refuelling Stations thanks to European programs (FCH-JU & CEF) & national programs.

Development of a system for HRS “real life” availability in the EU

13

The roll-out of hydrogen buses in EuropeEurope is supporting totally 360 Hydrogen buses deployment that lead to a price reduction of 66% vs 2010.

There is an appetite to roll-out more than 1600 buses by 2020 by cities and regions

0

100

200

300

400

500

600

700

800

900

1000

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2.000.000

Cumulative FCBsCost (€/FCB)

0 # of Units 100

DEPLOYED

PLANNED

Maturity of the Market

10 European OEM’s are developing Hydrogen buses: https://www.fuelcellbuses.eu/

14

In 2017 first trucks appeared on the EU roads and more are to comeWorldwide there is a clear traction towards Hydrogen for trucks due to the limited range of batteries.

ESORO COOP ASKO-SCANIA VDL – COLRUYT

Nicola Truck Toyota Truck @LA port

Partners planning

2,000 commercial

trucks on the road by 2020

FCH-JU started with Fuel Cells in trucks for APU’s but was found to expensive, therefor focus shifted to

developing and testing trucks with range-extenders or fuel cell only e.g.: garbage trucks in mayor cities.

Toyota and 7-

eleven

collaboration

FCH-JU H2ME project

Batt+REREVIVE: H2 Garbage

Trucks in 8 EU cities 2018: Heavy Duty truck

call for proposal

Call 2018: 1 successful proposal under signature

Hyundai

truck

15

• 42% of EU railway not electrified• H2 train requires less investment

than full electric train (catenary 1 million € / km)

• 17 Sept. ’18 commercial operation starts in Germany. Other EU countries are on the way

• FCH-JU + S2R JU cooperating in a joined study to look at business cases beyond Regional trains - 20% by 2030*

Rail discovered Hydrogen and Fuel Cells

The first business models are appearing

* Base scenario market share in EU by 2030 achieved by H2 powered trains (28% for frontrunners, 11% for newcomers and 9% for later adopters)https://fch.europa.eu/news/new-study-shows-good-potential-hydrogen-powered-trains-europe

16

Maritime discovering Hydrogen and Fuel CellsTo accelerate the decarbonisation of Maritime, regulation for hydrogen need to be prepared

IMO targets are not achievable with current technologies,

converting the entire fleet to LNG will not be sufficient.

Urgent need to regulate H2 for ships

• IMO April 2018: “at least 50% of CO2 reduction by 2050”

MARANDA: H2 PEMFC based hybrid powertrain for marine

applications, validated on board the research vessel Aranda

DURATION: 2017-2021FCH JU: ~€3mn

PURE aims at developing auxiliary power units

(APUs) for recreational yachts

DURATION: 2013-2016FCHJU Funding ~€1.6mn

FC for port/harbor ecosystems

DURATION: 2019-2022FCH JU: €5mn; €4mn

• Further R&D needed e.g. L H2 storage, MW scale Fuel Cells,…

Mid-size passenger ships of inland freight

17

Aviation sees a future in Hydrogen for small planesHydrogen in the aviation sector causes much less noise and no pollution.

• HYCARUS is a FCH JU project where the kitchenette runs entirely on Hydrogen and Fuel Cells

Maiden flight: October 2018

FC PEM system for propulsion of regional passenger aircraft; LH2

4M€ Call 2018: 1 successfulproposal under GAP

• In 2016 first 4-seater plane propelled by H2 took off from Bonn airport

• Development of H2 powered small business jets ongoing ~2030

HEAVEN (call 2018)

Decarbonising the European transport sectorAllowing to meet the European CO2 targets

Advancing on “fleet case” deployments

Towards larger fleets demand (and new business models)

Spreading and speeding H2 mobility

Expanding business cases and reaching out new markets

Supporting the first best fit per application

18

AGENDAThe role of Hydrogen in e-Mobility

19

1) Fuel Cells and Hydrogen alignment with Climate Policies

2) FCH JU activity – Transport Demos

3) Major Studies/reports (FCH JU and others)

PAGE 20

TOGETHER WITH AN INDUSTRY COALITION, A HYDROGEN ROADMAP FOR EUROPEHAS BEEN DEVELOPED

▪ Study by the FCH JU, supported by Hydrogen Europe and 17 companies and organizations along the whole value chain of hydrogen

▪ First comprehensive quantified European perspective for deployment of hydrogen and fuel cells in two scenarios

– Ambitious, yet realistic two-degree scenario and business-as-usual scenario

– Long-term potential

– Roadmap with intermediate milestones

– Recommendations to kickstart

PAGE 21

ACROSS APPLICATIONS HYDROGEN CAN CLOSE HALF OF THE GAP TOWARDS THE 2DS

1 2-degree scenario 2 Please see the chapter on renewables and power for information on the role of hydrogen as enabler of a renewable power system. The "enabled" carbon abatement from renewables is not included here and is an additional benefit of hydrogen for decarbonization

SOURCE: IEA Energy Technology Perspectives 2017; Hydrogen Roadmap Europe team

508

CO2 abatement potential of hydrogen

Total gap to reach 2DS1 in 2050

Remaininggap

1,070 562

Closing ~50% of gap

Replacement of natural gas for process heat

Replacement of combustion engines with FCEVs, in particular in buses and trucks, taxis and vans as well as larger passenger vehiclesDecarbonization of aviation fuel through synthetic fuels based on hydrogenReplacement of diesel-powered trains and oil-powered ships with hydrogen fuel-cell-powered units

Decarbonization of natural gas grid through blendingUpgrade of natural gas to pure hydrogen grid

Integration of renewables into the power sector2

Power generation from renewable resources

Switch from blast furnace to DRI steelReplacement of natural gas as feedstock in combination with CCU

Segments Hydrogen decarbonization leversCarbon emissions gap to reach 2DS1 in 2050, Mt

Industry heat

Power generation

Transportation

Heating and power for buildings

Industry feedstock

▪ 2-3 wheelers▪ Passenger vehicles▪ Taxis and vans▪ Buses and trucks▪ Forklifts

▪ Aviation▪ Shipping▪ Rail

▪ Heating and power for buildings

▪ Power generation, balancing, buffering

▪ High-grade heat▪ Medium-grade heat

▪ Low-grade heat

Existing: ▪ Ammonia, methanol▪ Refining▪ Metal processing

New:▪ Steelmaking (DRI)▪ CCU (methanol, olefins,

BTX)

PAGE 22

Business as usual scenarioAmbitious scenario Start of commercialization Mass market acceptability1

Today 2020 25 30 35 40 2045

Medium and large cars

Small cars

Steelmaking6

Transportation4

Industry feedstock

7

Trams/railways

Vans

Coaches

City buses

Taxis

Industry heat6 Low/medium industry heat

High-grade industry heat

Existing: refining4, chemicals (production of ammonia, methanol, and others), metal processing

CCU (methanol, olefins, BTX)5

Heating and power for buildings3

5

Pure hydrogen heating

Blended hydrogen heating

mCHPs2

Forklifts

Power generation

1

TrucksSynfuel

(freight ships and aviation)

Power generation,balancing, buffering

HYDROGEN TECHNOLOGY EXISTS AND IS READY TO BE DEPLOYEDROADMAP

1 Defined as sales >1% within segment; 2 mCHPs sales in EU independent of fuel type (NG or H2); 3 Pure and blended H2 refer to shares in total heating demand; 4 Refining includes hydro-cracking, hydro-treating, bio-refinery; 5 Market share refers to the amount of production that uses hydrogen and captured carbon to replace feedstock; 6 CDA process and DRI with green H2, iron reduction in blast furnaces, and other low-carbon steel making processes using H2

SOURCE: Hydrogen Roadmap Europe team

PAGE 23

1 Including feedstock; 2 Compared to the reference scenario; 3 Excluding indirect effects1 Including feedstock 2 Compared to the reference technology scenario 3 Excluding indirect effects

2050 hydrogen vision

~24%

of final energy demand1

~15%

reduction of local emissions (NOx)

relative to road transport

~560 Mt

annual CO2

abatement2

~EUR 820bn

annual revenue (hydrogen and

equipment)

~5.4m

jobs (hydrogen, equipment, supplier

industries)3

CO2

BESIDES CO2 ABATEMENT, DEPLOYMENT OF THE HYDROGEN ROADMAP ALSO CUTS LOCAL EMISSIONS, CREATES NEW MARKETS AND SECURES SUSTAINABLE EMPLOYMENT IN EUROPE

SOURCE: Hydrogen Roadmap Europe team

24

Tech development and climate goals push further cheaper RES uptake which in turn requires and boosts cheap green H2 offtake World wide

Strommarkttreffen.org, Synthetic fuels and chemicals: options and systemic impact, 2018

https://www.strommarkttreffen.org/2018-06-29_Fasihi_Synthetic_fuels&chemicals_options_and_systemic_impact.pdf

IEA (Report prepared by the IEA for the G20, Japan), The Future of Hydrogen: Seizing Today’s Opportunities, 14 June 2019

https://webstore.iea.org/the-future-of-hydrogen

25

Study on “Early Business Cases for Power-to-Hydrogen (PtH) in Europe” https://www.fch.europa.eu/publications/study-early-business-cases-h2-energy-storage-and-more-broadly-power-h2-applications (June 2017)

Opens new pathways for PtH and enables new business models that can be highly complementary and symbiotic with RES projects (cPPA).

• Key variables for the profitability of PtH:

• Size of the electrolyser - scale effect

• Time of deployment - maturity of the technology is still increasing and so are sizes which, together with higher deployment rates will bring further down its CAPEX

• Value of the hydrogen produced - and the grid services the electrolyser can deliver

• Electricity cost for running the electrolyser

AGENDAThe role of Hydrogen in e-Mobility

26

1) FCH alignment with Climate Policies

2) FCH JU activity – Transport Demos

3) Major Studies/reports (FCH JU & others)

√ Paris, EC , FCHJU full alignment!

√ Pushing TRL and boosting deployment!

√ H2 as enabler of cheap intermittent RES (cheap green H2)

√ H2 to boost growth & jobs and technology leadership

√ H2 to create EU value added at regional level

√ H2 as enabler of RES to decarbonise heavy usages

For further informationwww.fch.europa.eu

www.hydrogeneurope.euwww.nerghy.eu

Pedro GUEDES DE CAMPOSFinancial Engineering Officer

pedro.guedes-de-campos@fch.europa.eu

@fch_ju

Fch-ju@fch.europa.eu

FCH JU