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Canada’s Hydrogen and Fuel Cell Industry:Canada’s Hydrogen and Fuel Cell Industry:Global Partnering for SuccessGlobal Partnering for Success

Alison Grigg, on behalf of Chris CurtisFuel Cells CanadaAugust 27, 2005Santa Fe, New Mexico

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Fuel Cells Canada

National not-for-profit industry association

Founded in October 2001

Our Mission is to promote the development and commercialization of Canadian hydrogen and fuel cell technologies, products and services

Prime source of services and support to companies, educational institutions and business alliances promoting, developing and demonstrating fuel cell and related products and services in Canada

67 member companies and organizations across Canada

Setting the Scene | The Canadian Industry | The Future

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Greenhouse Gas Reduction

Improved efficiency in converting energy. Zero GHG emissions when based on renewable sources.

Urban Pollution Reduction

Zero emissions from tail pipe of fuel cell vehicles.

Energy Reliability/Security

Key enabler to meet growing need for clean, distributed power

Economic Development

Significant export opportunities and global economic value.

Drivers for Hydrogen and Fuel Cell CommercializationAn energy platform that enables other technologies

to achieve goals of reliability, security, efficiency and sustainability.

Setting the Scene | The Canadian Industry | The Future

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Global Market Projections

Data from “Fuel Cell Industry Competitive Analysis - Assessment of Major Players, Global Markets, and Technologies” 2003 Allied Business Intelligence Inc., Courtesy Industry Canada

Setting the Scene | The Canadian Industry | The Future

Mobile Fuel Cells - $7.5 billionStationary Fuel Cells - $7.5 billionAutomotive Fuel Cells - $3.6 billion

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Markets for Fuel Cell Products

10

100

1,000

10,000

2004 2015

Cap

ital

co

st $

/kW Lift trucks, industrial equipment, residential applications,

off-grid and back-up power, military applications

Early niche markets

Distributed power

Majormarket increasesAutos

Buses

700

60

Micro-applications (laptop computers, digital cameras, cell phones)

Remote sites (off-grid)

Source: adapted from Methanex, September 2002

Increasing: manpower + capital + production + capacity

Setting the Scene | The Canadian Industry | The Future

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Supply Chain Opportunities

Setting the Scene | The Canadian Industry | The Future

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The Canadian Hydrogen and Fuel Cell Sector: Overview

Activities began in 1982 with first contract for Ballard Power

Systems

Total Canadian industry revenue has grown 40% from $134

million in 2002 to $188 million in 2003

Industry R&D expenditures over $290 million – since 2000 an

average of $100,000 per employee per year

Over 80 companies across Canada are focused on fuel cell and

hydrogen technology and associated services, employing over

2,600 people

Patent holdings were up 34% to 581 in 2003.

Setting the Scene | The Canadian Industry | The Future

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Geographic Profile

Fuel Cell Producers & Integrators

Suppliers

Fuelling Infrastructure

Service Providers

Setting the Scene | The Canadian Industry | The Future

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International Involvement – Industry

About 33% of Canadian industry activity is outside of North America Active in 262 demonstration projects (2003); 70% outside of Canada Industry Associations: California Fuel Cell Partnership, US Fuel Cell

Council Networking with industry groups and participation in trade missions Corporate partnerships and joint development examples:

– Ballard with Ford/Daimler Chrysler– General Hydrogen with General Motors– Hydrogenics with GM, John Deere, American Power Conversion, US

Army

Setting the Scene | The Canadian Industry | The Future

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International Involvement – Canadian Government

International Partnership for the Hydrogen Economy (IPHE) International Energy Agency (IEA) Implementing Agreements:

– Production and Utilization of Hydrogen– Advanced Fuel Cells– Advanced Motor Fuels

International Safety Organization TC197 Asia Pacific Economic Cooperation (APEC) Natural Resources Canada/US Department of Energy (treaty negotiation) Natural Resources Canada/California Air Resources Board MOU Government led trade missions

Setting the Scene | The Canadian Industry | The Future

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Commercialization Challenges for Hydrogen and Fuel Cells

Micro-level: Improved fuel cell reliability and durability Reduced cost

Macro-level: Stimulating early market demand Improving product quality while reducing costs Financing for R&D, commercialization Creating supporting infrastructure Codes and standards

Setting the Scene | The Canadian Industry | The Future

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Technology Development: On Track for Commercialization

Companies are meeting technology development timelines:

Ballard Power Systems has reduced costs of fuel cells by 80% since 1999, while achieving a ten-fold increase in lifetime

Fuel Cell Technologies has accumulated over 1500 hours of operation on its second generation 5 kW system

Hydrogenics HyPM 10 kW power module has achieved over 5000 hours of operation & over 6500 “stop-start” cycles on a single unit

Dynetek Industries has 10,000 psi (750 bar) hydrogen tanks on the market

BC Hydro/Powertech is a 10,000 psi operational fueling station

US companies attaining commercial sales contracts

Setting the Scene | The Canadian Industry | The Future

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Hydrogen Highway

Province of British Columbia – Lower Mainland and Vancouver Island

Coordinated market demonstration program designed to accelerate commercialization

Framed around the 2010 Winter Olympic and Paralympic Games

Showcase and demonstrate the environmental, economic and social benefits of this technology to the world

First phase by 2007 is focused on seven highly visible locations

Mobile, stationary and micro fuel cell applications and infrastructure

Multi-agency effort

Setting the Scene | The Canadian Industry | The Future

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Hydrogen Highway

Examples of Activities:

Hydrogen Fueling Stations: Surrey (10,000 psi) Vancouver (5,000 psi) Victoria (5,000 psi)

Hydrogen Technology Environmental Chamber

Photovoltaic panels, electrolyser and hydrogen storage at the NRC Institute for Fuel Cell Innovation

Integration with Vancouver Fuel Cell Vehicle Program

Setting the Scene | The Canadian Industry | The Future

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Vancouver Fuel Cell Vehicle Program

Partnership between Government and Industry Demonstration of sustainable, zero-emission based transportation technologies 5 Ford Focus vehicles to be evaluated for three years in Vancouver’s Lower

Mainland Technology: Ballard Fuel Cell Systems, Dynetek Hydrogen storage Opportunity to test, demonstrate, deploy and evaluate proprietary systems for

H2 production

Setting the Scene | The Canadian Industry | The Future

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Hydrogen Village

The Hydrogen Village is located in the Greater Toronto Area in the Province of

Ontario.

The intent of the H2V is to:

Create a plan and platform for the deployment of hydrogen and fuel cell technologies to the benefit of the local community.

Develop the necessary supply, service, and knowledge infrastructure needed to create a sustainable market.

Ensure technology deployments (stationary, mobile and transportation) fit within the context of existing community infrastructure and activity.

Aid in the complementary growth of other centers across Southern Ontario – thereby developing a hydrogen Corridor.

Setting the Scene | The Canadian Industry | The Future

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Hydrogen Village

Examples of Activities: Hydrogen powered delivery trucks for Purolator courier fleet Fueling infrastructure and hydrogen powered forklifts for General Motors

plant in Oshawa Residential heating and power generation using four solid oxide fuel cells

at a townhouse-style student residence at the University of Toronto at Mississauga

Back-up power for computer network servers Fuel cell-based back-up power system at a telecommunications switching

station Hydrogen fuel cell powered utility vehicles in conjunction with hydrogen

production and refueling at the Canadian National Exhibition

Setting the Scene | The Canadian Industry | The Future

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The Path Forward – Partnership Opportunities

Demonstration Projects

– Hydrogen Highway – conceptually, a Hydrogen Highway from Baja, California to British Columbia, Canada (“BC to BC”)

– Funding programs that encourage North America wide participation

– Sharing lessons from past Olympic Games and preparing to showcase NA capabilities/expertise in the 2010 Olympic Games

Joint Development

– Providing enhanced access to R&D programs in all jurisdictions – at the institutional/corporate level

– Joint education and outreach programs – Identify and set objectives to support core competencies in each

country to ensure complimentarity rather than duplication Government Support

– State/Provincial governments encouraging transborder activities– Involvement of US, Canada and potentially Mexico in IPHE activity

Setting the Scene | The Canadian Industry | The Future

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Fuel Cells Canada Sponsoring Members

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Fuel Cells Canada Members

Advanced Measurements Inc.

Alberta Research Council

Alternate Energy Corporation

Angstrom Power Inc.

Astris Energi Inc.

Azure Dynamics Corp.

Ballard Power Systems Inc.

BC Hydro

BC Transit

BOC Gases

Business Development Bank of Canada

Canadian Hydrogen Association

Canadian Hydrogen Energy Corporation

Cellex Power Products Inc.

ChevronTexaco Technology Ventures

Chrysalix Energy Limited Partnership

Clean Energy Canada

Conduit Ventures Ltd.

Deloitte & Touch LLP

Dynetek Industries Ltd.

Enbridge Gas Distribution

Energix Research

Energy QBD Inc.

Ford Motor Company

FTI International Inc.

Fuel Cell Technologies Ltd.

FuelCon Systems Inc.

General Hydrogen Corporation

Gowling Lafleur Henderson LLP

Greater Vancouver Regional District

GrowthWorks Ltd

Heliocentris Energy Systems Inc.

HERA, Hydrogen Storage Systems Inc.

HSBC Bank of Canada

H3 Energy

Hydrogenics Corporation

IESVic

Inco Special Products

Keen Engineering

Kinectrics Inc.

KPMG LLP

Marcon-DDM

Marsh Canada Ltd.

McCarthy Tetrault LLP

Membrane Reactor Technologies Ltd.

Methanex Corporation

National Bank Financial

National Research Council

NORAM Engineering and Constructors Ltd.

Palcan Power Systems Inc.

Pathway Design & Manufacturing Inc.

PEM Engineers Inc.

PricewaterhouseCoopers LLP

Propane Gas Association of Canada Inc.

Province of Ontario

Quebec’s Fuel Cells and Hydrogen Network

Queen’s RMC Fuel Cell Research Centre

QuestAir Technologies Inc.

Sacré-Davey Engineering

Sarnia-Lambton Economic Partnership

TD Securities Inc.

Tekion Solutions Inc.

Teleflex Canada Inc.

University College of the Fraser Valley

Westport Innovations Inc.

Zongshen PEM Power Systems

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Thank you

Alison Grigg, on behalf of Chris Curtis

Fuel Cells CanadaAugust 27, 2005Santa Fe, New Mexico