Eco-friendly fuels in Iceland

Jón Björn Skúlason

General Manager

Government of Iceland

First policy measures towards hydrogen (electromobility) in 1998• Iceland an international platform for hydrogen research

• Current position:– Create the world‘s first electromobility economy

• H2 policy of the government:– Favourable framework for business and research– International cooperation– Education and training– Roadmapping and the „energy-shift“ policy

• First major steps:– Taxation incentives (no taxes on hydrogen vehicles)

• Zeri emission vehicles carry no taxes (not even VAT)

– Financial and international support

Government of Iceland (cont.)

• Use of domestic resources– Electro-mobility

• Use electricity as the key bases for future transport systems – battery vehicles, plug-ins, hydrogen, etc.

– Use all domestic available alternative source, i.e. methane (landfills) and synthetic fuels, DME, methanol, etc.

• The role of the government is not to choose – Provide setting where alternative fuels can be tested– Dialogue with OEMs and examine vehicle and technological development– Collect data on different technologies (social, environmental and economic)

• National impact (cost-benefit)– Foreign currency savings (no imports of fuel)

– Domestic energy

– Independence (incentives – taxation – other)

– Energy security

Fuels for land transport in Iceland

2,5% envionmentallyfriendly

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Gasoline Diesel Renewables

6,2% in2016

Alternatives other than electricity and hydrogen

• Methane from landfill

• Methanol produced onsite a geothermal power plant (Svartsengi)– Mostly exported

• Biodiesel – mixed with fuels for land and marine use

– Cooking oil

– Rape-seed production

– Imported

Icelandic New Energy

Human factor

• There is disbelieve– Will batteries/methane/hydrogen/methanol last 5 years?– Will they work in the harsh conditions in Iceland? Out at sea?– Is that a surprise?

• Education– Is little or lacking – government has a role– Media plays an important role, most discussion is like advertisments

H2 BEV

Me

dia

dis

cuss

ion

Icelandic New Energy

Policy

• Government (national)– Actually done a good job in general!– However, no real action, no pioneering role

• Instututions (companies) – near zero activites

• Government (community, city)– Reykjavik city – early adopter – pioneering role– Other communities – near zero activities

• There is will, but seem to be financial constraints

• Support policy with actions

Government has built the platform. CurrentlyThere is little on it, butwe are finally moving...

Icelandic New Energy

Technology

• Variety of vehicles and fuels already on the market– BEV´s, methane, H2 coming soon

• Mature technology• Cost same or similar

– TCO for BEV´s equal after 60.000 km

Incentives in place

Incentives in place

Relative growth of BEV´s.~100% increase annuallyfirst 4 years following incentive programs

2009 2012

An example:Uptake for BEV´s similarto Norway. Success story!

Increase in alternative fuel vehicles in Iceland from 2000

35 43 61 63 83 142

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664 683779

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2016 Icelandic New Energy 9

Increase in the number of BEV in iceland

2016 Icelandic New Energy 10

Icelandic New Energy

Infrastructure for BEV´s

• Government recently announced support for 42 fast chargers and 63 semi-fast chargers for BEV´s

• Already 12 fast chargers in place– In 2019 there should be ~100 fast chargers in place– For Iceland it is a major step forward

• Hopefully sales of BEV´s will increase following this initiative• It is complicated to build BEV infrastructure, everyone want´s

to travel at the same time– New grid lines– Many chargers at same location– Low margin (cheap electricity), most people charge at home

Vision of initial H2 infrastructure

1

11

1

113

77%of total pop.

90% within circles

Greater Reykjavík 199.682

Akureyri 17.295

Reykjanesbær 13.972

Borgarnes 1.828

Sauðárkrókur 2.640

Egilsstaðir 2.704

Selfoss 6.493

AkureyriSauðárkrókur

Egilsstaðir

Selfoss

Borgarnes

Reykjavík1 existing HRS

Reykjanesbær

150 km diameter 1 No. of HRS

H2ME

First station to be built in Reykjavik February 2018

Electrolyser station – all renewable electricity (hydro and/or geothermal

Second station to be built, location tbc. August 2018

Trucked in Hydrogen

Third station to be built location tbc. December 2018

Trucked in Hydrogen

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Construction of 3 HRS in Icelandwithin H2ME

Feb 20181st HRS

10-20 cars

Aug 20182nd HRS

15-30 cars

Dec 20183rd HRS

20-40 cars

Shows continuanceand commitmentH2 vehicles shouldbecome costcompetitive around2020 in Iceland

Icelandic New Energy

Marine use of eco-friendly fuel

• Great possibilities in utilisation of batteries, hydrogen and fuels cells and/or methanol

• Already two tour boats (whale watching) fully on battery• New ferries are designed with partial battery load• Discussion with fishing companies for diesel/electric and/or

methanol/electric propulsion– Potential „green fishing in the future“

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Tour boat;Whale watchingGreenland excursions2015-

A new conceptRPHP: regenerative plugin hybrid-electric propulsion

Land connecton

Charging control

Batteries

Electric motor

Propellor

Biodiesel generator (backup)Control unit

Special designed equipment (Unique set up (world wide))

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Design batterysolution4x60 Kw/300v

Generator - old engineDesignedcontrol unit

Designed propellor

The renewable transport future is NOW

• Iceland in general on a resonably good path

• Government long-term policy vital– Policy in discussion very strong

– National RD&D funding missing• Job creation in the field is lacking

• Nordic projects/funding simpler and more effective in many cases than EU!

– Without incentives take-off will be slow

• Iceland should set firm goals– Renewables should be at least 50% of total transport by 2030

• Already vast experience by „doing“

• Iceland is a paradise for electromobility

Icelandic New Energy

THANK YOU

High level US guests at INE

FCEV – plug inDream car of the Nordic countries?

Salomon fishing in Reykjavikusing an FCEV