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Strategy | Energy | Sustainability Hydrogen & Fuel cells – From current reality to 2025 and beyond Future Powertrain Conference Adam Chase, Director 1 st March 2017
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Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Jun 14, 2020

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Page 1: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Strategy | Energy | Sustainability

Hydrogen & Fuel cells – From current reality to 2025 and beyond

Future Powertrain Conference

Adam Chase, Director

1st March 2017

Page 2: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

E4tech perspective

• International consulting firm, offices in UK and Switzerland

• Focus on sustainable energy

• Established 1997, always independent

• Deep expertise in technology, business and strategy, market assessment, techno-economic modelling, policy support…

• A spectrum of clients from start-ups to global corporations

Page 3: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Today

• Drivers of change

• Energy system transition

• A plan for hydrogen

Page 4: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Not just an esoteric debate

“Moody's is increasing its focus on the risks related to climate

change for auto manufacturers globally. While we do not

anticipate any immediate rating changes, we are monitoring rising risks in this sector for possible future implications”

Page 5: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Transport is now the largest GHG emitting sector in the UK, so is in the spotlight

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Source: Committee on Climate Change Oct.2016 UK Climate action following the Paris Agreementhttps://www.theccc.org.uk/wp-content/uploads/2016/10/UK-climate-action-following-the-Paris-Agreement-Committee-on-Climate-Change-October-2016.pdf

Page 6: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Road transport, especially LDV will have to make strong CO2 reductions

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Source: SMMT 2-3 cycle plans Adoption

95gCO2/km

ZEV capable LDV uptake according to CCC

Page 7: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Strategy | Energy | Sustainability

So we know where we are and where we would like to get to. The question is HOW?

Page 8: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Automotive changes must be seen in the context of the energy system

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1983 20502017

34 years 33 years

Energy system perspective

Automotiveperspective

Page 9: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Transport energy transition is unlikely to be simple

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UK Automotive Council Energy & Fuels Consensus Roadmap

Page 10: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Conventional, sector specific approach to energy transition could miss implications of system wide change

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Conventional thinking

Work through GHG reduction challenges in order of increasing difficulty:

1. Electricity

2. Heat

3. Industry

4. Transport

System thinking

Least cost optimised pathways that recognise key features of low carbon energy:

• Inflexible demand for energy services

• Long life assets

• Technology uncertainty

• Lock-in and path dependencymarksremarksdotorg.files.wordpress.com/2012/09/systems-thinking.jpg

Page 11: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Strategy | Energy | Sustainability

From a system wide perspective, hydrogen can play a strong role

Page 12: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

The 2016 UK Hydrogen and Fuel Cell Roadmap shows how hydrogen could fit across the energy system …

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Bulk centralised H2

production

Hydrogen pipeline networks and use in

domestic and commercial heat

Non-road transport

H2 production and distribution for

transport

Road transport

Portable FCsStationary FC systems with portable fuels

Large stationary power & CHP

H2 use in industry and for liquid fuel

production

Small stationary

power & CHP

Services to energy networks

AP

PLI

CA

TIO

NS

PR

OD

UC

TIO

N, D

ISTR

IBU

TIO

N

AN

D S

ERV

ICES

Hydrogen end-use

Hydrogen supply

UK Hydrogen and Fuel Cell Roadmap: http://bit.ly/2dVJBu9

Roadmap

Page 13: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

… and which steps are necessary to 2025 and beyond

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Roadmap

Benefits to assess

• Potential for low carbon heating

• Avoiding grid upgrading especially the costs of electricity to meet peak heating

• Synergies with renewable electricity

• Customer acceptance compared with heat pumps, district heating etc

• Synergies with hydrogen use in transport & industry

Page 14: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Hydrogen could be a key component of the future transport fuel mix

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• Air quality - no pollution when used in fuel cells and very low emissions in an ICE

• Low carbon today and zero carbon in the future – wide range of options to produce hydrogen with very low emissions

• No fundamental changes in vehicle operation – once a nationwide network is established, no operational compromise compared with current ranges and refuelling times

• An option for larger vehicles – very few options for zero or ultra-low emission driving for trucks, buses, marine and rail

• Affordable (at scale) - vehicles can be offered with the same ownership cost or with a slight ownership cost premium once vehicles can be produced at scale (100,000s of vehicle per year for passenger cars).

Roadmap

Page 15: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

|

The roadmap includes specific UK actions for enabling fuel cell vehicles and hydrogen refuelling

2016-2020 2020-2025 2025 onwards

UK

mar

ket

dev

elo

pm

ent

UK

act

ion

s

~30-65 HRS deployed by 2020

Dedicated rollout programme for UK-produced vehicles FC RE-EVs, minicars, hydrogen buses and trucks

Beginning of commercialisation of UK FC system and vehicle solutions for <20kW and heavy duty applications

Programme to develop UK <20kW FC systems & vehicles

UK Fleet of 50-100 buses

UK Fleet of ~500s FC REEV and microcars

UK Fleet of ~100 OEM FCEVs

> 150 HRS deployed by 2025

UK Fleet of several 100s buses

UK Fleet of several 1,000s FC REEV and microcars

UK Fleet of several 10,000s OEM FCEVs

Several 10s to 100s stations per annum

> 100 FC buses per annum

> 1,000 FC REEV and microcar per annum

> 10,000 FCEVs per annum

Programme to support the development of heavy vehicles using hydrogen

FC market reaches a critical size allowing unsubsidised deployments

Secure policy continuity for FC in transport applications (across national and local governments); coordination with EU efforts on clean mobility

Resolve any outstanding HRS permitting, vehicle certification and other regulatory constraints to reduce barriers to larger-scale deployments

Roadmap

Targeted support for early fleet roll-out (<1,000 vehicles via EU, regional and national fleet funds)

Inclusion of hydrogen vehicles in plug-in grant type scheme

Coordinated procurement activities for fleet vehicles

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Page 16: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

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Two main aims: Ensuring UK-produced hydrogen vehicles and preparing the UK market

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Ensuring UK-produced hydrogen vehicles

• Target vehicles with an attractive customer offer, relatively small production volume (100s-1,000s units/year) which play to the UK’s manufacturing strength

Encourage UK-based OEMs in the truck, large van and bus sector to work with partners to develop hydrogen-fuelled options

Support UK companies developing vehicles using small fuel cell stacks (as range-extenders or in lightweight small cars)

Preparing the market for the introduction of hydrogen-fuelled vehicles

• Expansion of the hydrogen refuelling network – regional clusters and work with fleets

• Support for vehicle deployment – Plug in grant scheme, procurement, EU and regional funding

Roadmap

Page 17: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

Current UK activities are consistent with the Roadmap

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Shell hydrogen refuelling station at Cobham services on the M25, opened February 2017. Source: ITM Power

Rasa fuel cell car. Source: Riversimple

Science & Technology Committee hydrogen inquiry, announced Feb 2017

Page 18: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

In summary

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• An energy system transition is coming

• Vehicle fuels and powertrains should be seen as part of the energy system

• This transition may be faster, deeper and directionally different to currently envisaged pathways

• The “best” solution for the energy system might not be “best” for individual sectors

• Some energy system pathways feature widespread hydrogen uptake, which would affect transport

• The UK Hydrogen & Fuel Cell Roadmap sets a path for UK to 2025

• Near term will see several options explored at small scale. These could scale up if successful

Page 19: Hydrogen & Fuel cells From current reality to 2025 and beyond€¦ · fuel cell vehicles and hydrogen refuelling 2016-2020 2020-2025 2025 onwards UK Fleet of 50 ment s ~30-65 HRS

E4tech – strategic thinking in sustainable energy

For more information please visit our website:

www.E4tech.com

Or contact us in London or Lausanne:

E4tech (UK) Ltd

83, Victoria StreetLondon SW1H 0HW

United Kingdom

+44 (0)20 3008 6140

[email protected]

E4tech Sàrl

Av. Juste-Olivier 21006 Lausanne

Switzerland

+41 (0)21 331 15 70

[email protected]

www.E4tech.com

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