Canada’s Hydrogen and Fuel Cell Sector Expectations for the IPHEMember Statements: Canada’s Hydrogen and Fuel Cell Sector Expectations for the IPHE Member Statements International Partnership for the Hydrogen Economy (IPHE) 2nd Steering Committee Meeting 26-27 May, Beijing, China


Outline: Outline Update on Canadian programs and activities Canada and the IPHE Canadian Goals and targets Annex – Information on key Canadian hydrogen and fuel cell programs


Canada’s Fuel Cell and Hydrogen Industry: Employs over 1,800 people Total research and development expenditure on hydrogen and fuel cell activities estimated to be $280 million in 2003 Total Canadian industry revenue estimated at $188 million in 2003 Canadian participation in demonstration projects around the world estimated at 252 Canadian Hydrogen and Fuel Cell Industry Profile 2004 Canada’s Fuel Cell and Hydrogen Industry Canada is recognized as a centre of expertise in fuel cell research and development and early stage commercialization Canada is a total solutions provider The number of Canadian companies associated with the industry has doubled over the past 5 years


Drivers of the Canadian Fuel Cell and Hydrogen Industry: Drivers of the Canadian Fuel Cell and Hydrogen Industry Climate change challenges Industry opportunities Wealth generation Air quality and health Diversity of energy supply


Moving the Hydrogen Economy Forward: Moving the Hydrogen Economy Forward Federal Government of Canada has invested over $200M in this sector since the early 1980s Forecasted annual investment approximately $70M over next five years Development of a national, coordinated strategy and implementation of key actions Creation of the Federal Hydrogen and Fuel Cell Committee (H2FCC) Provincial BC continues to support large, integrated demonstration projects and is developing a hydrogen strategy Alberta developing hydrogen production strategy Manitoba’s hydrogen strategy released and being implemented Ontario developing a strategy and supporting significant demonstration and deployment activities Prince Edward Island focused on integrating renewable energy sources with hydrogen and fuel cells


Hydrogen Highway TM: Hydrogen Highway TM The Hydrogen Highway™ represents a hydrogen fueling infrastructure project demonstrating a wide variety of fuel cell applications and and will provide a global showcase at the 2010 Olympic Games in Whistler, British Columbia Includes the Vancouver Fuel Cell Vehicle Project, the Hydrogen High-Pressure Valve Development Project and the Hydrogen-Powered Delivery Van Project


Hydrogen Village: Hydrogen Village The Hydrogen Village is a public-private partnership committed to accelerating and sustaining the application and commercialization of hydrogen and fuel cell technologies. Over 36 public and private sector members contributing to the development of the first Village for the Greater Toronto Area starting in late 2004


Canadian Industry Activities: Canadian Industry Activities


Canada and the World: Canada and the World Multilateral IPHE IEA - Working Parties, Implementing Agreements, analysis and modeling OECD – Energy Working Groups North American Energy Working Group – S&T Experts Group APEC Cooperative agreement between U.S. Fuel Cell Council, Fuel Cell Commercialization Conference of Japan, Fuel Cells Canada, and World Fuel Cell Council/Fuel Cell Europe Bilateral NRC MOUs with Chinese Universities Natural Resources Canada MOU with California Air Resources Board Energy R&D MOU between NRCan and the US DOE West Coast Governors GHG Emission Reduction Program Northwest Energy Technology Collaborative Canada-US Technology Partnering Initiative (TPI)


Canada's Expectations for IPHE: Canada's Expectations for IPHE IPHE Roles: Knowledge management function Identify similar interests in other member countries and building technical connections Make use of existing international collaborative efforts to strengthen the engagement within a broader community and avoid duplicating effort Coordinate international efforts to develop a global hydrogen economy including demonstration and deployment activities Expand participation of high level stakeholders and decision-makers as well as financial and insurance organizations Act as a source for objective messaging - address public issues and concerns Raise the profile of the potential for a hydrogen economy


Canada's Priority Areas for IPHE: Canada's Priority Areas for IPHE Accelerating Development of the Hydrogen Economy Working Together To Remove Barriers Full spectrum of fuel cell and hydrogen applications Research, development and deployment Access to R&D and deployment funding internationally Multitude of hydrogen pathways and hydrogen storage Safety and public confidence Strategic collaboration on major initiatives Codes and standards Marketplace framework and intellectual property issues Moving Technology Forward


Key Messages – Canadian Industry: Key Messages – Canadian Industry Role of IPHE in Commercialization Next step after demonstration Consistent global approach Fiscal policy Government procurement policy Regulatory – eliminate barriers to product introduction Collaboration to increase market pull Breakthrough Research Still Required, Collaboration Required to: Reduce unit costs Improve reliability Hydrogen storage Renewable energy pathways Transition Technologies Facilitate Development of Hydrogen Economy Hybrid technologies Various fuelling paths


Canadian Concepts of the Hydrogen Economy : Canadian Concepts of the Hydrogen Economy Primarily distribution of electrons Natural gas to distributed hydrogen production stations Major cities: Pipeline distribution of hydrogen from central production plants over short distances Smaller cities: H2 produced on-site Distributed energy systems could be used in both larger and smaller cities to produce power and H2 Transportation Large scale electrical generation Portable electrical generation Chemical industry, heavy oil industry (oil sands) Portable/micro/electronics Distributed Generation Hydrogen Sources and Methods Distribution Major Users Conversion through end-use products and transition technologies Fuel cells Hybrids - Electrolysis from hydro, nuclear, wind, biomass, and solar power - Thermal plants with CO2 captured and sequestered High temperature thermochemical production from Nuclear sources Steam reforming of natural gas and methanol Gasification


Canada’s Goals : Canada’s Goals Stimulate early market demand Demonstrations, public information programs, early purchase programs Improve product quality while reducing cost Identify barriers and strategies to overcome them, increase collaborative R&D, demonstrations to support cost and performance value propositions, establish a supply chain forum Financing Develop incentives to share risk, identify and pursue development and deployment partners Ensure that companies are well capitalized Supporting Infrastructures Develop human resource strategy, include training component in demonstrations, develop curriculum material for education, develop fueling infrastructures including hydrogen storage, establish codes and standards


AppendixCanadian Programming: Appendix Canadian Programming


Recent Announcement: Recent Announcement $215 million, over five years, dedicated to the Hydrogen Economy, October 2003 Investments of approximately $70M annually into the sector over next 5 years $60 million, Early Adopters $20 million, R&D $85 million, Industry Portfolio Partners (reallocation) $50 million Sustainable Development Technology Canada targeted to H2


Key Federal Programs: Key Federal Programs


Technology Early Action Measures (TEAM) and Program of Energy Research and Development (PERD): Technology Early Action Measures (TEAM) and Program of Energy Research and Development (PERD) $56 million component of the Climate Change Action Fund (CCAF) Offers additional support to federal programs that fund technology projects to reduce GHG emissions while sustaining economic/social development Help Canada meet its commitments under Kyoto Federal, interdepartmental program Funds R&D supporting sustainable energy future Concerned with all aspects of energy supply and use, with the exception of nuclear energy


Natural Resources Canada – R&D and Canadian Transportation Fuel Cell Alliance: Natural Resources Canada – R&D and Canadian Transportation Fuel Cell Alliance Hydrogen and Fuel Cell R&D Program Funding of hydrogen and fuel cell R&D and demonstrations for over 20 years Program addresses: fuel cells, hydrogen production, storage, safety and utilization Works with industry, universities, other levels of government and internationally to form consortia and implement projects to develop hydrogen and fuel cell technology Canadian Transportation Fuel Cell Alliance $33 million over 7 years Focuses its efforts on showcasing refuelling demonstration projects, evaluating different fuelling routes for light, medium and heavy-duty fuel-cell vehicles, monitoring the resulting greenhouse gas emission reductions, and developing the necessary supporting framework for the fuelling infrastructure, including technical codes and standards, training, certification and safety 5 working groups: Communications, Light Duty Vehicles, Medium/Heavy Duty Vehicles, Standards and Codes, Studies and Assessments


Sustainable Development Technology Canada: Sustainable Development Technology Canada Allocation of $550 million to eligible recipients developing sustainable technologies over a 5 year period. This includes a mandate expanded to add clean soil, clean water with an additional $200M endowment Focus on near-term technology solutions for climate change with the objective of closing the commercialization gap Development and demonstration of climate change and air quality technologies; 10 year term


National Research Council: National Research Council NRC through its Hydrogen and Fuel Cell Research Program carries out fundamental and applied Hydrogen and Fuel Cell R&D at its institutes across Canada in partnership with universities, OGDs, and industry.  The program lead Institute for Fuel Cell Innovation in Vancouver additionally provides fuel cell testing and evaluation expertise and facilities (including a one-of-a-kind environmental chamber), incubation/acceleration services and technical support and facilities for demonstration projects.


Natural Sciences and Engineering Research Council and Social Sciences and Humanities Research Council of Canada: Natural Sciences and Engineering Research Council and Social Sciences and Humanities Research Council of Canada Supports collaborative university/private sector research projects Initiative to support the establishment of 5 University Chairs in Hydrogen and fuel cell technologies Granting agency for research and training in the social sciences and humanities related to the development of a hydrogen economy.


National Defence: National Defence Provides leading edge science and technology to Canadian forces Strengthens and supports the Canadian Defence Industrial Base through financial and scientific support for relevant industry-initiated research projects Issues R&D contracts for tender Demonstrates technologies


Environment Canada: Environment Canada Brokers projects on 'Environmental Technologies' including H2 / Fuel Cells Evaluates the environmental footprint of technologies Performs emission testing and monitoring of innovative technologies Engages on the governance of federal RD&D funding programs Advances the uptake of cleaner technologies


Western Economic Diversification (WD): Western Economic Diversification (WD) Collaborates to encourage a cluster of manufacturers and service suppliers for existing and new fuel-cell systems developers, and related balance of plant technologies. WD and province of BC have invested $13 million in fuel cell technology demonstrations implemented in partnership with Fuel Cells Canada Provides support to the national industry association Fuel Cells Canada (FCC)


Technology Partnerships Canada – R&D Program: Technology Partnerships Canada – R&D Program TPC's R&D program invests strategically in research, development activities to encourage private sector investment and technology commercialization TPC's R&D investments cover promising Canadian environmental technologies, ranging from improved conservation of energy, water and non-renewable resources, to the development of clean production technologies (including clean car technologies), the reduction of waste and harmful emissions, and clean-up and restoration technologies that address environmental degradation


Technology Partnerships Canada H2 Early Adopters Program: Technology Partnerships Canada H2 Early Adopters Program Funding of $50M over 5 years Partnership with industry to foster the early adoption of H2 technologies Demonstrate microcosms of the hydrogen economy such as the “hydrogen highways” and “hydrogen villages” Develop H2 Infrastructure, codes and standards, skilled resources and an integrated supply chain Accelerate acceptance of hydrogen technologies