The California Fuel Cell Revolution

BILL ELRICK | EXECUTIVE DIRECTOR

8/28/2018

Advancing California’s Economic, Social & Environmental Priorities

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How it all began – 2012 California Roadmap

First 100 stations statewide• Establish initial network coverage

• Clusters in big cities

• “Connectors” and “destination” . stations across the state

• Vision for starting commercial rollout

Vehicle CostHigher than gasoline cars

Vehicle PerformanceClose to gasoline cars

Vehicle EmissionsBetter than gasoline cars

Vehicle RangeClose to gasoline cars

Fuel CostHigher than gasoline

H2 Network CoverageWorse than gasoline

Development fuel cell cars

First H2 stations

Sparse H2 network

Customer adapts to technology

INNOVATORSTech Adventurous

TODAY

NA

SCEN

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AR

KET

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Where we are today

Numbers as of July 2018

4,926 fuel cell cars

35 retail hydrogen stations

24 fuel cell buses

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—MISSION—Accelerate commercialization of hydrogen and fuel cell vehicles

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What is the revolution?

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Evolution of customer adoption

Development fuel cell cars

Early H2 stations

Sparse H2 network

Customer adapts to technology

INNOVATORSTech Adventurous

Retail fuel cell cars

Retail H2 stations

Transition to mainstream

EARLY ADOPTERSVisionary

2012 -today

CR

ITIC

AL

MA

SS

Through 2030

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—CaFCP Goal—Enable market conditions to support:

and

1,000 hydrogen stations

1,000,000 fuel cell vehicles by 2030

Matching the coverage of gas stations

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8,000retail gas stations

1,000retail H2 stations

≈

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How do we get there?

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Enable the market by attracting capital investment in infrastructure

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Focus on risk management and cost offsets

Transition from grant funding to market-based policies that encourage private investment

Enable large-scale infrastructure

Market policies

Economies of scale

Costs decline

Private investmentincreases

Renewable H2 production increases

Customer adoption increases

Market-based policies build confidence

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$738

$184

$265

$150

Market-based policies build confidence

Hydrogen Electric charging

Energy Commission

Energy Commission

Electrify America

Public Utilities Commission

In millions

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Establish the market with a competitive value proposition to increase consumer demand

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Incentives spur vehicle sales to customers in across the economic spectrum

The H2 station network enables travel throughout California and beyond

Hydrogen production and distribution stay ahead of fuel demand

Build a strong customer base

Market policies

Economies of scale

Renewable H2 production increases

Costs decline

Private investmentincreases

Consumer customer base

Customer incentivesHydrogen networkDedicated supply

Scaling for success

1,000,000

800,000

600,000

400,000

200,000

00

5 10 15

HEV BEV PHEV FCEV

BEV Proj. PHEV Proj. FCEV Vision

Years After Market Introduction

Cal

iforn

ia V

ehic

le P

opul

atio

n

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Expand the fuel cell and hydrogen market across the transportation and energy spectrum

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Empower fuel cell trucks and hydrogen stations along freight corridors

Broaden the portfolio of hydrogen and fuel cell applications

Connect hydrogen, electricity, and renewables

Expand the use of hydrogen and fuel cells

Market policies

Economies of scale

Customer incentivesHydrogen networkDedicated supply

Trucks

Grid integration

Diversify

Costs decline

Private investmentincreases

Broad customer base

Renewable H2 production increases

The energy system

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• Grid balancing• Demand management• Energy storage• Meeting renewable targets

—OUTCOMES—

Economic, Social, & Environmental

Benefits

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Establish a self-sustaining marketDesirable products and services that make economic sense for customers and businesses

—ECONOMY—

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97% of DACs and94% of Californians within the station network coverage

—SOCIETY—

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693.5 million gallons of gas displaced2.7 million metric tons of GHG avoided3,900 metric tons of NOx avoided

—ENVIRONMENT—

How are we starting the revolution?

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CaFCP Members

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Sustainable freight

Addressing cost challenges

Renewable hydrogen pathways

Expanding beyond California

—Delivering Positive Change—

OUTCOMESEconomic, Social, and

Environmental Benefits

MISSIONAccelerate

commercialization of hydrogen and fuel cell vehicles

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Renewable H2

Market Policies

Economies of Scale

Costs parity

Private investment

Growing market

Customer IncentivesHydrogen NetworkDedicated Supply

Trucks

Grid Integration

Diversify

SELF-SUSTAINING

MARKET

VALUE PROPOSITION

Vehicle CostSame as gasoline cars

Vehicle PerformanceBetter than gasoline cars

Vehicle RangeSame as gasoline cars

Fuel CostLess than gasoline

H2 Network CoverageSame as gasoline

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Self-sustaining

Development fuel cell cars

Early H2 stations

Sparse H2 network

Customer adapts to technology

INNOVATORSTech Adventurous

Retail fuel cell cars

Retail H2 stations

Transition to mainstream

EARLY ADOPTERSVisionary

Statewide H2 Network

Traditional customer interactions

EARLY MAJORITYPragmatic

SELF

-SU

STA

ININ

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AR

KET

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We’re creating transformative change for a brighter, healthier future.

Join the revolution.

The California �Fuel Cell RevolutionHow it all began – 2012 California RoadmapWhere we are today—MISSION— �Accelerate commercialization of hydrogen and fuel cell vehiclesWhat is the revolution?Evolution of customer adoptionSlide Number 7Matching the coverage of gas stationsHow do we get there?Slide Number 10Slide Number 11Market-based policies build confidenceSlide Number 13Slide Number 14Scaling for successSlide Number 16Slide Number 17The energy system—OUTCOMES——ECONOMY——SOCIETY——ENVIRONMENT—How are we starting the revolution?Slide Number 24Slide Number 25Slide Number 26Self-sustainingWe’re creating transformative change for a brighter, healthier future.