Hydrogen and fuel cell: Research and Development
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Drivers for hydrogen and fuel cell R&D
The drivers for hydrogen (H2) and fuel cell R&D (Research, Development, and Demonstration)[1] are divers, ranging from greenhouse gas (GHG) emissions reduction to security of energy supply. The figure below shows in a nutshell the drivers in different world regions (Jollie et al., 2006). In Europe, the driver is GHG emissions reduction, mainly because Europe ratified the Kyoto Protocol[2]. In the USA and Australia, energy security and availability of indigenous coal are the main drivers. In New Zealand, a main issue is the 92% dependency on foreign oil, most of which is used for transport. Interestingly though research into fuel cells and H2 for transport applications is limited and most of the work is for distributed generation (Fuel Cell Today, 2005a). Japan, which is even more dependent on foreign oil, recently decided to reduce the reliance of the transport sector on (foreign) oil from 98% in 2000 to 80% in 2030 (METI, 2006).
Source: Jollie et al., 2006.
Industry and government are also driven by the novelty of hydrogen and fuel cells (Nail et al., 2005). According to (PWC, 2002), the global demand for fuel cell products in portable, stationary and transport power applications would be $46 billion per year by 2011 and more than $2.5 trillion per year in 2021. Therefore, support for H2 and fuel cell R&D may have an economic component. R&D on H2 and fuel cells is mainly limited to the OECD and the EU. According to (ESTO, 2005) Japan, the USA, and the EU dominate R&D on stationary fuel cells (refer Table 1). Thus, the focus is on R&D in IEA and EU countries, with scanty reference to other countries.
Table 1: Overview of numbers of stationary fuel cell power units by world region (2005)
| North America | EU | Japan | Rest of world | ||
| 2000 up to 5 kW | [%] | 40 | 30 | 30 | Minimal |
| 650 > 5 kW | [%] | 45 | 20 | 30 | 5 |
| 3000 portable etc | [%] | 55 | 25 | 20 | Minimal |
| Total capacity | [MW] | 40 | 12 | n/a | Minimal |
Source: ESTO, 2005 (Based on Fuel Cells Today).
Furthermore, R&D is characterised by the R&D field experiment cycle. Appendix B shows this R&D field experiment cycle for R&D on H2 and fuel cells under US conditions, where ’demonstration’ is called ’field experiment’. According to (DoE, 2003), timing is critical. ’Due diligence’ to evaluate economic and technical barriers would be essential prior to and after each R&D and demonstration phase.
Review of policies and programmes of IEA countries
Introduction
 |
| Source: Jollie et al., 2006. |
Most IEA and most EU countries are more or less involved in hydrogen and fuel cell R&D. The figure gives a view of the structure of national R&D programs (Jollie et al., 2006).
The following paragraphs review R&D programmes of IEA countries, largely based on (IEA, 2004a). A summary of the R&D budgets of these countries is presented. R&D programs rarely provide details about specific end-uses for fuel cell R&D, e.g., mobile or stationary applications (DoC, 2003). An analysis of budgets as a function of time and the split between hydrogen, mobile, and stationary fuel cells is also given. The only country outside the OECD that has been taken into account is China.
Hydrogen and fuel cell R&D programmes of IEA countries and EU
Australia
The Australian government holds the view that the market will determine how and when hydrogen will enter the energy mix. The main potential end uses for H2 are deemed to be in road transport, portable electrical appliances and distributed generation. In 2004, a demonstration trial in the framework of the HyFLEET:CUTE project[3] (Internet Source 1) of three H2 fuel cell-powered buses started in Perth. The program is funded at 10.72 mln Australian $ (currency code AUD, shortly A$). In addition, the University of Queensland is developing the ’ultra-commuter’, an ultra lightweight hybrid electric commuter vehicle suitable for Australian driving conditions. It will be partially powered by on-board solar cells, and a 10 kW PEM fuel cell (see Appendix A for acronyms and abbreviations).
There is substantially more activity in hydrogen than fuel cells. Data indicate a 70/30 split, in terms of active organisations (Fuel Cell Today, 2005a). Active (R&D) organisations are CSIRO (Commonwealth Scientific & Industrial Research Organisation) and Holden (programme Energy Transformed), Ceramic Fuel Cells Limited, and Zero Emission Coal Gasification.
Austria
Austrian research institutions are mainly interested in hydrogen production from renewable energy sources. The focus is on fuel cells and H2 for automotive applications, but Austria has experience with stationary fuel cells - a 200 kW PAFC system. The Austrian ’Advanced Automotive Applications’, or A3 program, includes PEM and hybrid vehicle demonstrations, environmentally friendly urban bus, and product delivery traffic systems. Austria aims to establish ’centres of excellence’ concentrating on PEM, fuel cells with circulating electrolytes and SOFC. Institutions and companies active in hydrogen and fuel cell R&D are, e.g. TU Graz, and ECHEM. The annual budget for hydrogen and fuel cell R&D is €7.5 mln.
Belgium
Belgium is exploring the potential of hydrogen and fuel cells. Parties active in H2 and fuel cell (PEM, SOFC) R&D are Vito and University Liege. Collaboration between industry and research organisations was set up to enhance the fuel cell research within the Flemish region. The R&D budget is €7.6 mln, of which €3.4 mln for hydrogen and €4.2 mln for fuel cells.
Canada
Canada has a longstanding involvement in the development of hydrogen and fuel cell technologies with government investment of some C$200 mln since the early 1980s. Canada’s hydrogen and fuel cell R&D program refers to three phases:
- Phase 1: R&D and Early Deployment (0-5 years)
- Phase 2: Broad Based Deployment (5-10 years)
- Phase 3: Market Expansion (10-20 years)
| "The Government of Canada, in the recent Speech from the Throne, restated its commitment to supporting the development of innovative environmental technologies," said Minister Robillard. "Through this investment, we are not only helping our environment, but we are also creating a strong and vibrant economy for years to come.’ "This is the type of creative and innovative solution we need to meet our targets within the Climate Change Plan for Canada," said Minister Guarnieri. "Canada has become a world leader in the development of hydrogen technologies. This industry will be a major component in our reduction of emissions under the Plan." "This type of technology will play an important role in enabling more long-term uses of hydrogen, such as the fuel cell and large-scale power generation," said Alan Lloyd, Member of the Canadian Hydrogen Technology Advisory Group and 2003 Chairman of the California Fuel Cell Partnership. "Not only will this kind of technology contribute to important environmental improvements, but it will also help establish an infrastructure that will benefit the entire hydrogen industry now and into the future." (March 8, 2004) Source: Internet Source 2 |
The Canadian government and industry is interested in both transportation and stationary applications of hydrogen and fuel cells. The Canadian ’Transportation Fuel Cell Alliance’ initiative focuses on demonstrating different combinations of fuels and fuelling systems for light, medium and heavy-duty vehicles. Canada’s hydrogen transport and distribution infrastructure program comprises refuelling stations and includes work on large-scale water electrolysers, hydrogen compressors up to 700 bar, hydrogen dispensers, controls, and codes and standards. Stationary demonstrations include a Siemens Westinghouse SOFC prototype of 250 kW (CHP) and a BCHydro/Ballard Airgen PEM backup power system of 1.2 kW. Also, Canada is developing an H2 Roadmap, considering the role that H2, fuel cells and related technologies may play in the short, medium, and long term. The process will seek to build consensus between industry, government and other stakeholders on the ways to encourage the strategic development and use of hydrogen in Canada. Hydrogen and fuel cell companies include Ballard Power Systems, Hydrogenics Corporation, and IFCI Vancouver.
Yearly spending by the Canadian government on R&D is approximately C$20 mln (€12.6 mln) through ’Natural Resources Canada’ and the ’National Research Council’. Additional support of approximately C$13 mln (€8.2 mln) is provided to the hydrogen and fuel cell industry through other innovation and climate change programs. In October 2003, a C$215 mln (€138 mln) investment was announced that capitalises on the use of hydrogen and fuel cells. Also, the government has made new investments totalling C$28.3 mln (€17.9 mln) through ’Technology Partnerships Canada’ (TPC) with three innovative British Columbia small and medium sized enterprises. Two investments by the TPC will promote hydrogen fuel cell technology research projects with the potential to advance the hydrogen economy, leading to reduced GHG emissions and contributing to a sustainable environment (CFEVR, 2005a). According to (ESTO, 2005), the total governmental funding for H2 and fuel cell R&D amounts to C$215 mln or €138 mln for the period 2000-2006, which is on average €23 mln per year[4].
China
Since about 1999, the Chinese government has extended the electric vehicle R&D investment towards Fuel Cell Vehicles (FCVs). With regard to research and development on H2 and fuel cells, there are two programmes and three research areas:
- Programme ’I’, start date March 1997
- Fundamentals of Large-scale Production, Storage and Transportation of Hydrogen and the related Fuel Cells.
The period stretches from April 2000 to March 2005. The budget is RMB 30 mln (5 years). - Basic Research of Hydrogen Production in Scale Using Solar Energy
The period considered is December 2003- November 2008, and the budget is RMB 30 mln (five years).
- Programme ’II’, start date March 1986
During the 10th five-year plan (2001-2005) China’s Ministry of Science and Technology (MOST) approved an RMB 880 mln (US$106 mln) R&D program to develop advanced hydrogen technology, hybrid-electric drive and fuel cell vehicles.
China has a five-year demonstration programme for hydrogen buses and fuelling stations. The Ministry of Science and Technology (MOST) is undertaking a project with the Global Environmental Facility (GEF) and the United Nations Development Program (UNDP). This US$32 mln co-funded project is intended to catalyse the cost-reduction of fuel-cell buses (FCBs) for public transit applications in Chinese cities and stimulate technology transfer activities by supporting significant parallel demonstrations of FCBs and their hydrogen fueling infrastructures in Beijing and Shanghai. Its long-term objective is to reduce air pollution and GHG emissions through widespread commercial introduction of FCBs in urban areas of China (IPHE, 2004).
Finally, Shanghai Automotive Industry Corp (SAIC), one of China’s biggest automakers, on Friday unveiled its plans for new-energy-powered vehicles over the next three to five years. The company, a partner of Volkswagen and General Motors (GM) in China, plans to begin experimental production of hybrid-powered cars and buses under its own and foreign brands before 2008, SAIC said in a statement. According to Zhu Xiangjun, a spokesperson for SAIC, the annual output of hybrid-powered vehicles will be ’several thousand units’ during the period and will increase to ’tens of thousands’ before 2010 (Internet Source 3).
It is assumed that 50% of the 1st research area of the Programme ’I’ is related to hydrogen and 50% to mobile FCs, and that the whole 2nd research area is related to H2. Also, 50% of the Programme ’II’ s assumed related to H2 and fuel cells for FCVs (in equal amounts) and the remainder to hybrid-electric vehicles. The average annual R&D budget is $22.5 mln (RMB 186.4 mln).
Denmark
Denmark is interested in transportation and stationary applications of hydrogen and fuel cells, with an involvement of Danish industry (DEA, 2005). Parties active in the field of H2 and fuel cell R&D are Technical University of Denmark, Haldor Topsøe A/S, IRD Fuel Cells A/S, and Risøe National Laboratory. The Research Council supports a centre of excellence on catalysis, storage and demonstration of small energy units. In 2003, €18 mln was spent on H2 and fuel cell R&D, of which €11 mln on SOFC and €7 mln on PEM R&D. According to (ESTO, 2005), Denmark spent €40.9 mln on ’various H2 and fuel cell R&D programmes’ in the period 1998-2003, which is on average €5 mln per year. Thus, an average of €11.5 mln is used in the table.
Finland
Finland is engaged in fuel cell R&D, in particular with regard to PEM and SOFC fuel cells. A PEM module for micro CHP (1.5 kW) has been built. Institutions and companies involved are, e.g., Wärtsilä (SOFC), Helsinki University of Technology (HUT) and Research Centre of Finland (VTT). In 2003, the budget for fuel cell R&D was €4 mln, and for hydrogen R&D €1.4 mln. According to (ESTO, 2005), €18.3 mln was spent on ’various H2 and fuel cell R&D programmes’ in the period 1998-2003.
France
In France, fuel cell activities are concentrated in two main areas: PEM and SOFC technologies. Numerous public organisations participate in the finance, research and development of H2 and fuel cells in France, using their own resources or resources either from industry or from EU programs. Key players are the so-called ’PACo fuel cells network’, CNRS, CEA (Atomic Energy Agency), IFP (French Petroleum Institute) and ADEME. In the period 1999-2002, public funding for the PACo network ranged from €6.0 to €9.6 mln per year (LEPII, 2004). According to (ESTO, 2005), the French government spends about €20 mln annually on PEM, SOFC, and H2 production and storage, of which €10 mln for the PACo network. (IEA, 2004a) presents a figure of €40 mln for the total funding provided by public entities in 2002, including subsidies provided in France by the EU for ’hydrogen and fuel cells’ work as part of the FP5 program. The ’Clean vehicles’ plan should lead to additional support of €40 mln over a period of 5 years. The figure of €20 mln from (ESTO, 2005) has been retained in the table.
According to (HY-CO, 2006), €600 mln is available for H2 and FC research, demonstration and deployment for six years, based on an agreement at the highest government level with the support of the National Research Agency (NRA) and the Industrial Innovation Agency (IIA).
Germany
Germany is one of the world leaders on hydrogen and fuel cell R&D. The R&D on fuel cells refers to all types, viz. PEM, MCFC, and SOFC. Companies engaged are, e.g., Vaillant, Viesmann, MTU CFC, Siemens Westinghouse, and Linde. Besides, vehicle manufacturers like Volkswagen and DaimlerChrysler are engaged in fuel cell R&D. All fuel cell technologies have to be taken into consideration in the R&D programme. The main goals are cost reduction, increased lifetime and better reliability for the crucial components and systems. Public federal funding of hydrogen and fuel cell R&D amounts to €8-10 mln annually. Within the programme ’Programme on Investment into the Future’, an additional €15 mln per year have been granted for fuel cell projects during the period 2001-2003. Basic research on fuel cells in the Helmholtz research centres is supported by the Ministry of Research and Education, which amounts to €15 mln per year. The ’Clean Energy Partnership’ was initiated in 2004, with a total budget of €33 mln, in addition to €5 mln in funding from the German Federal Government.
Based on (IEA, 2004a), R&D spending of the federal government is estimated at €57 mln. (ESTO, 2005) estimates that €10 mln was spent on H2 and €126 mln on all types of fuel cells and basic research in the period 2000-2006. The reported budget of approximately €25 mln per year seems to be an underestimation[5], as it is stated that ’Germany exemplifies the strengths required to build a competitive industry’ indicating that public R&D expenditures are sufficient (ESTO, 2005). Thus, the figure of €57 mln per year for federal funding is used in the table.
Recently (March 15th 2006), the German federal Minister of transport, building and urban affairs, Wolfgang Tiefensee, announced a National Hydrogen and Fuel Cell Innovation Program, to strengthen federal commitment with an extra €500 mln ($610 mln) in R&D funding over the next ten years.
| On 7th November 2000 the German Chancellor Gerhard Schröder gave strong support to Daimler Benz’s latest fuel cell car, Necar 5, by personally presenting the prototype to the media and the general public. Source: Internet Source 4 On 18 September 2004 Chancellor Schröder received the car from DaimlerChrysler and praised the efforts of the company to develop more environmentally friendly vehicles, especially at a time of increased oil prices and concerns over the effects of CO2 emissions in relation to climate change. "This shows that we are on the right track," the chancellor said, running an impressed eye over his new loan car. (the chancellor will have (had) one year to test the car). Source: Internet Source 5 |
Greece
The activities with regard to hydrogen and fuel cell R&D in Greece are mainly related to similar programmes in the EU. Institutions and companies engaged are, e.g., HELBIO, CRES, and National Technical University of Athens (NTUA). The total annual budget of hydrogen and fuel cell R&D is greater than €5 mln.
Italy
Italy has a rather broad hydrogen and fuel cell R&D program, including PEM, MCFC, and SOFC fuel cells. Also, a number of demonstration projects both with regard to transportation and stationary power have been realised. Parties engaged are, e.g., Arctronics, Nuvera, Ansaldo, and ENEA. Over the last three years, national funding amounted to €90 mln (€30mln) per year, of which €51 mln (€17 mln) for hydrogen and €39 mln (€13 mln) for fuel cell development and deployment. ESTO (2005) confirms the total budget of €90 mln in the period 2003-2006.
Japan
The Ministry of Economy, Trade, and Industry (METI) has set targets for the introduction of Fuel Cell Vehicles (FCVs) and stationary fuel cells in 2010 and 2020 (Table 2). In the ’dawn’ period, practically only buses and fleet cars with fuel cells are introduced. Only a small number of FCVs will be introduced by then, but they will require many fuelling stations. One station will be needed to cover the fuel requirement of 100 vehicles by 2010, meaning that at least 500 fuelling stations are needed in the dawn period. The introduction period refers to introduction of fuel cells in business cars. At the end of that period, 5 mln FCVs are assumed to be on the roads. The price of FCVs will decrease during this period, but will still be higher than conventional vehicles. A tax system could be put in place as an incentive to purchase FCVs. The ’penetration’ period assumes application of fuel cells in all cars and buses. If the targets are met, hydrogen demand for FCVs in Japan will reach 17.0 billion m3 by 2030 (CFEVR, 2005b). Table 2 below also shows Japan’s targets with regard to stationary power generation based on fuel cells.
| Prime Minister Koizumi: "The fuel cell is the key to opening the doors to a hydrogen economy." "We will aim to achieve its practical use as a power source for vehicles and households within three years." "Fuel cell vehicles have come to market in Japan earlier than anywhere in the world." "I hope that Japan can be said to have succeeded both harmonious coexistence with nature and economic growth, with continuous technological development." (February, 2003) Source: Internet Source 6 |
Table 2: Penetration of Fuel Cell Vehicles (FCVs) and fuel cell based power in Japan
| Period | 2005-2010 | 2010-2020 | 2020-2030 | |
| Categorisation | 'Dawn' | 'Introduction' | 'Penetration' | |
| FCVs | Nr (at end period) | 50,000 | 5,000,000 | 15,000,000 |
| Fuelling stations | Nr (at end period) | 500 | n/a | n/a |
| FCVs/fuelling station | Nr (at end period) | 100 | n/a | n/a |
| Stationary fuel cells | [MW] | 2,100 | 10,000 | n/a |
Sources: CFEVR, 2005b; ESTO, 2005.
In order to put Japan’s 500 H2-fuelling stations by 2010 in perspective, the figure below shows the worldwide number of fuelling stations, with projections for 2005-2006 (Fuel Cell Today, 2006).
Note: Gray area is forecast.
Source: Fuel Cell Today, 2006.
An example of R&D activities on stationary fuel cells is a field test of LPG-based micro CHP: Cosmo Oil Company started this field test with a fuel cell system generating 700 W with an electrical efficiency in excess of 30% based on the higher heating value of LPG (CFEVR, 2005c). R&D applies to all types of fuel cells. Organisations engaged in H2 and fuel cell R&D are, e.g., the auto industry, the Electric Power Development Co., and NEDO. In 2003, the R&D budget amounted to ¥31 billion, or €237 mln. This is almost double the budget of 2002 (€163 mln) according to (DoE, 2004). Some 85% was related to fuel cell R&D. (ESTO, 2005) presents a breakdown of R&D by fuel cell types for 2002:
- ¥8.4 billion (€64 mln) for PEM fuel cells;
- ¥1.8 billion (€14 mln) for MCFC fuel cells; and
- ¥1.7 billion (€13 mln) for SOFC fuel cells.
The emphasis on PEM fuel cell R&D is mainly driven by the strong industrial interest from Japan’s domestic automotive industry. Recently, (Jollie et al., 2006) presented an estimate of the Japanese 2005 budget of $300 mln, but in (EHFC, 2005) it is estimated at €250 mln. The latter figure has been used in the table 6, that conveys all expenditures in US$ (in €’s in Appendix C).
The ambitious targets for Fuel Cell Vehicles (FCVs), fuelling stations, and stationary FC (Table 2), have inspired the European Commission. According to (EC, 2003): ’Europe can only meet this global challenge with similar total levels of investment from individual states and the EU.’
South Korea
The Korean government has selected fuel cell technology as a key technology requiring its full support since 1990. It seeks to attain a hydrogen economy by 2040, with fuel cells powering a significant portion of the country’s transportation and electricity needs. R&D applies to all types of fuel cells (PEM, MCFC, SOFC). Historically, fuel cell research has focused on MCFC and PAFC for large stationary applications (Fuel Cell Today, 2005b). Institutions and companies engaged are CETI (Clean Energy Technologies, Inc.), KEPCO (Korean Electric Power Corporation), KEPRI (Korean Electric Power Research Institute), KIER (Korean Institute of Energy Research), KIST (Korean Institute of Science and Technology), KOGAS (Korean Gas Corporation), KERI (Korean Electro-technology Research Institute), Hyosung, and Samsung.
From 1988 to 2002, $34.7 mln was invested in fuel cell R&D (OECD, 2003), and $5 mln in H2 R&D (Fuel Cell Today, 2005b). The budget for H2 and fuel cell R&D has been significantly increased. The budget is estimated at $586 mln or €488 mln from 2004 to 2011, i.e. €70 mln per year. Yet, (Jollie et al., 2006) puts it at $115 mln per year.
Netherlands
R&D activities on hydrogen and fuel cells in the Netherlands are mainly focused on PEM and SOFC fuel cell technology. Also, (SOFC) fuel cell technology for stationary power and PEM fuel cell buses is demonstrated. Institutions and companies engaged in hydrogen and fuel cell R&D include NedStack, HYGEAR, ECN, Shell, Hoek Loos (a Linde company), and Air Products (US company). The R&D budget is €7 mln (HY-CO, 2006).
New Zealand
New Zealand has one major hydrogen project underway, aiming to demonstrate electricity production from indigenous coal by the development of an integrated gasification, syngas cleanup, fuel cell package. The New Zealand Government, through the Foundation for Research Science and Technology, is funding the six-year project. Another coal gasification project aims to integrate an air-blown coal gasifier (later to be converted to an oxygen-blown system) with an alkaline fuel cell system. Three technical centres are involved in hydrogen research. The Government has allocated $8 mln over a six-year period for research on developing fuel cell grade hydrogen from coal (IPHE, 2005), equivalent to $1.3 mln per year.
Norway
The hydrogen and fuel cell related activities in Norway have mostly been parts of larger R&D programs within the field of renewable sources of energy. The government established a national ’Hydrogen Commission’ to define national targets to develop hydrogen as energy carrier, identify means and instruments for added value and better environment, and necessary funding for a national H2 program. Institutions and companies engaged in hydrogen and fuel cell R&D are, e.g., Norwegian University of Science and Technology (NTNU) and Norsk Hydro (electrolysis). The budget amounts to €10.2 mln, of which €0.5 mln for fuel cell R&D (in particular PEM fuel cells). According to (ESTO, 2005), the Norwegian government spent €27.6 mln on ’various H2 and fuel cell R&D programmes’ in the period 1998-2003, which is on average €5.5 mln per year.
Portugal
Portugal has relatively modest R&D activities related to hydrogen and fuel cells. One of the institutes engaged in this R&D is the INETI National Institute. Most of the R&D is part of the EU wide R&D activities on hydrogen and fuel cells.
Spain
Spain initiated activities in hydrogen and fuel cell R&D in the early 1990s, and continues to focus its work in the areas of hydrogen production and storage, and the development of components for different types of fuel cells. The annual R&D budget is approximately €10 mln.
Sweden
The Swedish National Energy Agency is the main governmental actor for hydrogen and fuel cell work. Although a number of initiatives have been taken, there is no national program or strategy for hydrogen related activities in Sweden. Institutions and companies engaged in hydrogen and fuel cell R&D include Elforsk, University of Lund, Chalmers University of Technology, and Royal Institute of Technology Stockholm. The R&D budget is €4.0 mln (IEA, 2004a). (ESTO, 2005) reports a budget of €34.7 mln on ’various H2 and fuel cell R&D programmes’ in the period 1998-2003 (€7 mln per year). The average of both studies of €5.5 mln is used in the table 6.
Switzerland
In the Swiss National Energy Research and Development Programme, hydrogen is considered one of the most important future secondary energy carriers. R&D has been focused on hydrogen production and storage and fuel cells (PEM, SOFC). Institutions and companies engaged are, e.g., Elektra Birseck (PEM), Sulzer Hexis (SOFC), Linde (German), Paul-Scherrer-Institute, and the Federal Institute of Technology Zürich. The R&D budget is estimated at €4.0 mln. According to (ESTO, 2005), the Swiss government spent €38.7 mln on innovative materials, components and cell design, demonstration of fuel cell systems for transportation, stationary power generation and portable units in the period 2003-2006, which is on average €13 mln per year. Therefore, an average €8.5 mln based on both studies has been used in the table 6.
Turkey
Turkey has engaged in a limited work on hydrogen and fuel cells, e.g., through TUBITAK. Recently, the ’National Research and Development Foresight’ (Vision 2023) was announced, but there is no dedicated program for hydrogen and fuel cell development. The annual R&D budget amounts to €2.0 mln, of which €1.8 mln for fuel cell R&D.
United Kingdom
The UK has a strong research base in the fields of, e.g., material science and catalysis. Several universities have been involved, apart from DTI (Department of Trade and Industry). Companies engaged in hydrogen and fuel cell R&D include Rolls Royce (SOFC), EPSRC, BP, Johnson Matthey Fuel Cells, Intelligent Energy, Voller CERES Power and the so-called Low Carbon Vehicle Partnership. The R&D budget is €2.9 mln. Recently, the UK embarked on a ’Carbon Abatement Technology’ (CAT) strategy, technologies related to decarbonisation of the energy system, by substituting old inefficient fossil fuel based power plants by modern highly efficient ones, by co-firing (5-10%) biomass, or by CO2 Capture and Storage (CCS). This strategy requires a specific industry-led R&D programme. Commercial organisations are invited to bid for Government support to undertake projects, possibly in collaboration with universities and other R&D organisations (DTI, 2005). The Government will provide £ 40 mln (€59 mln) over four years commencing in 2006/07 for demonstrations of CATs, hydrogen, and fuel cells; £ 25 mln (€37 mln) is expected to be dedicated to CATs with the balance split approximately 50:50 between hydrogen and fuel cells. So, the budget for demonstrations is €22 mln (£ 15 mln).
Based on (IEA, 2004a), spending from the UK government is estimated at €25 mln per year, of which €14 mln for fuel cells. According to (ESTO, 2005), €8.1 mln is spent on SUPERGEN Hydrogen and Fuel Cells Consortia in the period 2003-2008, and €110 mln on general energy R&D programmes that feed into both fuel cell and hydrogen technology development.
European Union
The expenses of the European Commission (EC) on hydrogen and fuel cells are estimated as follows (Table 3). The 6th European Framework Programme (FP6) is in place.
Table 3: R&D expenses on H2 and fuel cells of the European Commission<
| Programme | Period | Budget [mln €] |
| Second Framework Programme | 1986/1990 | 8 |
| Third Framework Programme | 1990/1994 | 32 |
| Fourth Framework Programme | 1994/1998 | 58 |
| Fifth Framework Programme | 1998/2002 | 145 |
| Sixth Framework Programme | 2002/2006 | 300 |
The EU fuel cell program has several technological focus areas including (Runci et al., 2004):
- Development of low-cost, competitive, high-temperature fuel cells for decentralised power generation. Research aims to develop cost-effective, safe, and reliable fuel cell systems for electricity production covering power ranges from 0.5 MW to 5 MW, with an installed cost of less than €1000/kW and service life of more than 40,000 hours.
- Development of PEM fuel cells and components for stationary and transportation applications. The main research goal is to enable production of PEM fuel cells with a cost of less than €100/kW for stationary and €50/kW for transportation applications, with service life of 30,000 and 5,000 hours, respectively. Research integrates modelling, materials, catalysis, on-board fuel processors, energy/environmental life cycle analyses and policy analysis in the effort to develop fuel cell energy systems.
- Development of new knowledge, materials, processes, and components for PEM and direct methanol fuel cells (DMFCs). The objective is to advance knowledge of related materials physics, electro-chemistry, and economic analyses to eliminate barriers to the mass production and wide deployment of low-temperature fuel cells.
- Development of fuel cells for small, portable applications. This research programme aims to develop safe, clean, and reliable fuel cells of a few hundred W to power small, portable devices.
- Development and validation of ’next generation’ computational and simulation tools for fuel cell systems analysis. Efforts focus on the continued advancement of analytical support tools focusing on thermodynamics, reactor performance, heat integration, etc. and particularly on industrial applications.
- Consultation with a Community of Experts on Fuel Cells and Hydrogen. In addition to its R&D activities, the Commission has formed a ’High Level Group for Hydrogen and Fuel Cells’ (HLG) consisting of experts and key stakeholders from government, industry and academia to explore the potential for, and challenges to, the development of European leadership in the production and adoption of fuel cells and related technologies. The group’s main objective is to produce a ’foresight’ report on hydrogen and fuel cells as a bridge to sustainable energy systems, including scenarios, technology road-mapping, and deployment strategies.
The following figure shows the main themes of FP6 with regard to hydrogen and fuel cells. The major share of funding of the EC goes to H2 production and large technology validation and demonstration projects. This latter may imply the EC is focussing on demonstrating hydrogen and fuel cell technologies, trying to push H2 and fuel cell technology into the market. However it is unclear how the budget can be divided between R&D and deployment, for instance is the area H2 production funding for demonstration of production or R&D of H2 production or both.
Besides funding, the EC involves stakeholders in the H2 and FC field. On October 10th 2002, the aforementioned platform ’HLG’ was formally launched in Brussels, by the Vice President of the EC, Loyola de Palacio, responsible for Energy and Transport, and Research Commissioner Philippe Busquin, with the support of President Romano Prodi. It brings together top-level stakeholders from across Europe, with the aim of formulating an integrated EU vision on the possible role that hydrogen and fuel cells could play in achieving sustainable energy. It has provided recommendations to policy makers addressing what would be required to achieve global leadership in this field in the next 20 to 30 years. Recently, the HLG was renamed into the ’European Hydrogen and Fuel Cell Technology Platform’ (HFP). This HFP will stimulate the development of public-private partnership to implement its research agenda and deployment strategy, representing new opportunities for research and demonstration of H2 energy systems. In this context, the Growth Initiative presented by the EC in November 2003 has identified two possible ’Quick Start’ initiatives in the field of H2 focussing in its clean production and its use in communities, and representing a total investment of €2.8 billion.
The FP7 programme will again include fuel cell development with the overall emphasis of the scheme being on R&D and probably more than €68 mln labelled for R&D on H2 and fuel cells in seven years (Fuel Cell Today, 2005c).
| EC President Romano Prodi: Announced a goal of ’achieving a step-by-step shift towards a fully integrated hydrogen economy, based on renewable energy sources, by the middle of this century.’ ’Hydrogen and fuel cell technology represents a strategic choice for Europe. Within the next 20 to 30 years it will change considerably our society and economic growth patterns, by bringing about a decentralised and cleaner model of energy production and distribution.’ Commissioner de Palacio added: ’Hydrogen and fuel cells can potentially reduce the European Union’s dependence on oil while at the same time contributing to sustainable development. They are key to achieving the EU objective of replacing 20% of vehicle fuels with alternative fuels by 2020, including hydrogen.’ EU Research Commissioner Philippe Busquin said: ’Today, hydrogen and fuel cells are too expensive, and research efforts in this field are scattered. We need a consistent approach at European level to reach a technological and economic breakeven point in hydrogen take-up. A strong partnership between industrialists, researchers, users and policy makers is therefore needed to ensure Europe leads the drive towards the hydrogen economy.’ Source: The Hydrogen Economy, a bridge to sustainable energy" conference (16th June 2003). |
USA
According to (Jollie et al., 2006), R&D in the USA may be characterised as follows:
- Focus on economic benefits and manufacturing.
- Funding from State and federal level but not well integrated: target-based.
- Some major programmes and large earmarks.
- Demonstration almost solely at State level.
- Military is important with regard to funding and acts as early adopter.
- Challenge for small companies to grow.
| President George W. Bush: "In this century, the greatest environmental progress will come about … through technology and innovation. Tonight I’m proposing $1.2 billion in research funding so that America can lead the world in developing clean, hydrogen-powered automobiles." "… With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free." "Join me in this important innovation to make our air significantly cleaner, and our country much less dependent on foreign sources of energy." Source: State of Union, January 28, 2003. |
Table 4 below gives an overview of R&D expenditures of the federal government on H2 and fuel cells.
Table 4: Federal funding of transportation and total fuel cells FY 1990-2005 and 1996-2005
| Fiscal Year (FY) | Federal PEM Transportation Fuel Cell R&D [current $] | Federal fuel cells R&D [current $] |
| 1992 | 9.5 | n/a |
| 1993 | 12.0 | n/a |
| 1994 | 19.5 | n/a |
| 1995 | 22.2 | n/a |
| 1996 | 21.5 | 114 |
| 1997 | 21.1 | 101 |
| 1998 | 23.5 | 98 |
| 1999 | 33.7 | 115 |
| 2000 | 37.0 | 115 |
| 2001 | 41.5 | 145 |
| 2002 | 41.2 | 159 |
| 2003 | 48.0 | 157 (est.) |
| 2004 | 65.2 | 156 |
| 2005 | 77.5 | 225 |
| 2006 (budget request) | n/a | 259.5 |
| Total (1992-2005 or 1996-2005) | 473a | 1,385a |
a Cumulative federal funding 1990-2005; 2003 estimated (by interpolation).
Source: NRC, 2001; BTI, 2003; DoE, 2005; Miller, 2005.
It is estimated that, if the government would not have supported R&D on PEM fuel cells for transportation, the performance of the technology would be set back approximately 10 years, significantly delaying the introduction of the technology into early market areas such as portable and stationary power and subsequently delaying the emergence in the automotive application.
As fuel cells in vehicles etc. are not yet commercialised, there are no realised benefits yet. Also, because fuel cell systems are still undergoing intensive R&D, the technology is not yet available commercially. Therefore, there are no option benefits at this stage. This is the current development stage, despite the fact that fuel cell-powered buses are demonstrated, there are (experimental) fuel cell cars, and stationary sources are tested. The benefits are classified as knowledge benefits.
In a similar way, the National Research Council evaluated the R&D efforts for stationary fuel cells. The Office of Fossil Energy spent $1167 mln on stationary fuel cell activities from Fiscal Year (FY) 1978 through FY 2000. The Office of Energy Efficiency and Renewable Energy has spent $22 mln to support PEM stationary fuel cell R&D since FY 2000. The total funding for PAFC, MCFC, and SOFC stationary fuel cells has been as follows (Table 5).
Table 5: US federal funding for stationary fuel cells R&D Fiscal Year 1978 through 2000
| R&D budget [mln $1999] | R&D stage | |
| PAFC | 410.8 | Applied R&D |
| MCFC | 406.9 | Applied R&D |
| SOFC | 198.0 | Applied R&D |
| Fuel cell systems | 114.2 | Applied R&D |
| Multi-layer ceramic technology | 3.7 | Applied R&D |
| Advanced research | 33.7 | Basic and applied R&D |
| Total | 1,167.2 |
Source: NRC, 2001.
The R&D effort on low-temperature (~200°C) PAFC fuel cells was terminated in 2000. PAFC fuel cells, while possessing attractive operational characteristics, have never been developed to a commercial scale. With regard to MCFC and SOFC, support is continuing and DoE is claiming the possibility of commercial entry in niche markets. It is questioned whether the goals with regard to MCFC and SOFC commercialisation can be achieved on DoE’s stated timeline. Institutions and companies engaged in hydrogen and fuel cell R&D are, e.g., GE Energy (SOFC), car manufacturers, and Air Products.
Since the early 1980s, federal expenditures on energy R&D dropped from $6 billion in 1980 to $1.5 billion in 2001 (in constant $1996). This trend may be changing particularly in the area of fuel cells, which President Bush has specifically targeted for a $1.7 billion increase in research funds for the next five years (Nail et al., 2005). In 2005, the federal budget for hydrogen and fuel cell R&D was approximately $225 mln (€181 mln). In July 2005, the US Congress passed a five-year Energy Policy bill, laying out the government’s energy programs, funding priorities and tax policies for fiscal years 2006 through 2010. For projects and activities relating to hydrogen production, storage, distribution and dispensing, transport, education and coordination, and technology transfer, the energy bill provides a total of $1.06 billion for five years, and for fuel cell technology projects and activities $860 mln.
Summary of R&D budgets
The table 6 summarises R&D budgets of the countries. Total public expenditures on H2 and fuel cells amount to approximately $1,060 mln (€850 mln) per year, 29% of which by Japan, 32% by the EU countries and EC, and 23% by the USA (Appendix C shows € instead of $). The table makes a distinction (as far as possible) between hydrogen, and mobile and stationary fuel cells.
Table 6: H2 and fuel cell R&D budgets of IEA and EU countries (average for 2003-2005)
| PEM | MCFC | SOFC | H2 & fuel cells | Fuel cells | Mobile fuel cells | Stationary fuel cells | Notes | |
| Currency: US$a | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | |
| Australia | × | × | Not available | |||||
| Austriaa | × | × | ~9.3 | ~6.2 | ~3.1 | ~3.1 | Mobile and stat. | |
| Belgiumb | × | × | ~9.5 | ~5.2 | ~2.6 | ~2.6 | H2 & fuel cells | |
| Canadab | × | ~28.6 | ~19.9 | ~10.0 | ~10.0 | H2 & fuel cells | ||
| China | ~5.7 | ~22.5 | ~5.7 | ~5.7 | H2 & fuel cells | |||
| Cyprus | ||||||||
| Czech Republic | ||||||||
| Denmark | ~5.6 | ~8.7 | ~14.3 | ~14.3 | ~5.6 | ~8.7 | Mobile and stat. | |
| Estonia | ||||||||
| Finlandb | (×) | × | ~6.7 | ~5.0 | ~2.5 | ~2.5 | H2 & stationary | |
| Franceb | × | × | ~24.9 | ~17.4 | ~8.7 | ~8.7 | Mobile and stat. | |
| Germanyc | × | × | × | ~70.9 | ~64.7 | ~39.8 | ~24.9 | |
| Greeceb | × | × | ~6.2 | ~4.2 | ~1.7 | ~2.5 | Focus on stat. | |
| Hungary | ||||||||
| Ireland | ||||||||
| Italyb | × | × | × | ~37.3 | ~16.2 | ~8.1 | ~8.1 | Mobile and stat. |
| Japand | × | × | × | ~311.0 | ~248.8 | ~172.9 | ~75.9 | Mainly PEM |
| Koreab | × | × | × | ~87.1 | ~74.6 | ~37.3 | ~37.3 | Mobile and stat. |
| Latvia | ||||||||
| Lithuania | ||||||||
| Luxembourg | ||||||||
| Malta | ||||||||
| Netherlandsb | × | × | ~12.4 | ~8.7 | ~4.4 | ~4.4 | H2 & fuel cells | |
| New Zealand | ~1.3 | H2 from coal | ||||||
| Norway | × | × | ~12.7 | ~0.6 | ~0.2 | ~0.4 | Focus on H2 | |
| Poland | ||||||||
| Portugal | × | × | Limited budget | |||||
| Slovakia | ||||||||
| Slovenia | ||||||||
| Spainb | × | × | ~12.4 | ~10.0 | ~5.0 | ~5.0 | Focus on FCs | |
| Swedene | × | × | × | ~6.8 | ~4.5 | ~2.2 | ~2.2 | H2 & fuel cells |
| Switzerlandf | × | × | ~10.6 | ~7.0 | ~3.5 | ~3.5 | H2 & fuel cells | |
| Turkey | ~1.2 | ~0.9 | ~2.5 | ~2.2 | ~1.2 | ~0.9 | Limited budget | |
| UKb | × | × | ~31.1 | ~17.4 | ~8.7 | ~8.7 | Mobile and stat. | |
| EC | × | × | × | ~93.3 | ~31.0 | ~15.5 | ~15.5 | Average of FP6 |
| USA | × | × | × | ~248.8 | ~150.5 | ~104.5 | ~46.0 | Rising budget for PEM FCs |
| Total (rounded) | ~1,060 | ~714 | ~443 | ~271 |
a: The € is assumed equivalent to 1.2441 US$ (2005).
b: The budget is assumed to be evenly distributed between mobile and stationary (and hydrogen if applicable).
c: Germany’s €57 mln is based on (IEA, 2004a, 2004b) and the ratio H2 : fuel cells is based on (ESTO, 2005).
d: The proportion between mobile and stationary fuel cell R&D is based on data for PEM, MCFC and SOFC fuel cell R&D expenditures for 2002 from (ESTO, 2005).
e: Budget Sweden of an estimated €5.5 mln is based on €4 mln in (IEA, 2004a) and €7 mln in (ESTO, 2005).
f: Budget Switzerland of approx. €8.5 mln is based on €4 mln in (IEA, 2004a) and €13 mln in (ESTO, 2005).
Based on this Table, a top-seven of countries with the highest R&D expenditures is drawn up:
- Japan
- USA
- Germany
- Italy
- UK
- Canada
- France
Considering the larger population of the EU-25, (BTI, 2003) concludes: ’While Western Europe makes significant R&D expenditures, its major countries trail the USA and Japan (in R&D budgets)’.
Budgets as a function of time and split between mobile and stationary
Governmental R&D programs rarely specify a specific end-use for their fuel cell R&D, e.g. mobile or stationary applications (DoC, 2003). In this Paragraph, data are presented that shed more light on R&D budgets as a function of time and the split between mobile and stationary.
Table 7 below shows the expenses on hydrogen and fuel cell R&D for the USA, Japan, and Korea that have readily available data on government funding. Together, these countries account for approximately two-thirds of the R&D funding. The table indicates that the growth of R&D funding in the three countries is approximately 13% for the period 1996-2005. The lowest growth (~9%) occurred in the USA (1996-2006), and the highest in Japan and Korea (15-18%).
Table 7: Government funding for hydrogen and fuel cell R&D in Japan, Korea, and the USA
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | Growth | |
| [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [mln$] | [%/a] | |
| Japan | 69.9 | 65.1 | 58.0 | 43.8 | 95.9 | 135.0 | 258.2 | 228.0 | 237.0 | 250.0 | 15a |
| Korea | 2.3 | 3.6 | 3.8 | 4.0 | 3.1 | 5.6 | 5.0 | 83.7b | 18b | ||
| USA | 114.0 | 101.0 | 98.0 | 115.0 | 115.0 | 145.0 | 159.0 | 157.4 | 155.8 | 224.7 | 9c |
| Total | 186.2 | 169.8 | 159.9 | 162.8 | 214.0 | 285.6 | 422.1 | 558.0 | 13c |
a Data 1995-2005.
b Data 1990-2002; the estimate of $83.7 mln in 2005 for Korea is based on $586 mln for the period 2004-2011; according to (Jollie et al., 2006), the figure would be around $115 mln.
c Data 1996-2005.
Sources: DoC, 2003; OECD, 2003; BTI, 2003; DoE, 2005.
The US federal expenditures on hydrogen and fuel cell R&D give a detailed view of the proportion between mobile and stationary R&D (refer figure).
Note: Based on data from Table 4 and Table 7 (total R&D budget in 2003 based on interpolation). Sources: NRC, 2001; BTI, 2003; DoE, 2005.
The data used are based on the table 7 (USA), completed for recent years with data from table 4 (rightmost column). Only the total R&D budget for 2003 has been estimated by interpolation. This Figure shows that the budget for PEM fuel cells (mobile applications) increases steadily, whereas the budget for stationary applications remains more or less constant. In the next few years this trend may be expected to continue, as it is advised to discontinue PEM stationary R&D and to reallocate R&D budgets to R&D on Fuel Cell Vehicles (based on PEM FCs).
Preliminary conclusions
Investment in Hydrogen and Fuel Cell R&D is broadly compatible with the EU’s ambition to be a major global player. Although EU countries in total per capita do not seem to support R&D on hydrogen and fuel cells as vigorously as the United States and Japan, this is not necessarily an indication of lesser political will. In particular the next phase - the demonstration phase - is even more costly, and here the aggressive proposals for a Joint Technology Initiative (JTI), which could spend more on demonstration, is ahead of proposals elsewhere in the world.
It appears that R&D in the fields of Hydrogen and Fuel Cells is well supported compared to other "new energy" technologies, indicating strong political will to succeed. Public R&D programmes for hydrogen and fuel cells tend to be linked to the envisioned position of fuel cells in transportation and - to a lesser extent - in stationary power generation. Several countries have adopted road maps for hydrogen and fuel cells, further indicating cohesive political support.
Internet sources
Notes
- ↑ See Appendix A for Acronyms and Abbreviations.
- ↑ For the protocol to come into force, it must be ratified by more than 55 countries, including those responsible for 55% of the emissions of developed countries. The United States, which accounts for 36 percent of these emissions, hasn’t ratified the protocol, though 97 countries have.
- ↑ The HyFLEET:CUTE project is a European demonstration program for hydrogen-fuelled fuel cell buses, with participation from transport companies, bus and car manufacturers, oil companies and utilities, universities and consultants, and government organisations.
- ↑ It is very difficult to delineate total funding: the years are overlapping as are some of the programs (ESTO, 2005).
- ↑ (ESTO, 2005) presents in Annex I a figure of €100 mln for the period 2001-2003 as the budget of the Federal Ministry of Economics and Labour, Federal Environment Ministry, and Federal Ministry of Education and Research. This budget pertains to fuel cell development and demonstration projects, including small stationary, large stationary and transport applications, and education and public awareness projects, focused on DMFC, MCFC, PEM and SOFC technologies. It is expected that Länder (States) also made funding available (IEA estimates €150 mln for 1997 – 2003). Therefore federal R&D is probably to the tune of €57 mln (Table 3.66) per year (IEA, 2004b).
| Political Will - RTD Expenditure for Hydrogen and Fuel Cells |
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Hydrogen and fuel cell: Research and Development | Biomass: Research and Development | Photovoltaics: Research and Development | Wind Energy: Research and Development | Nuclear Energy: Research and Development |
