SUMMARY OF HYDROGEN STRATEGY AKERSHUS AND OSLO

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1 SUMMARY OF HYDROGEN STRATEGY AKERSHUS AND OSLO H

2 H SUMMARY OF HYDROGEN STRATEGY AKERSHUS AND OSLO The City of Oslo and Akershus County Council has a common goal of reducing the greenhouse gas emissions in the region to half of the 1990-level by 2030, despite expecting a strong population growth. The transport sector accounts for the highest share of these emissions, which means that the main efforts will have to be made here. Oslo and Akershus are working on establishing an infrastructure for biogas, electric vehicle charging and hydrogen. There is sufficient renewable electricity and biogas available in the region for hydrogen to be produced from 100% renewable energy sources. Reduction of local emissions is a high motivation factor because SMOG occurs frequently during winter time. MANDATE For Oslo, the hydrogen strategy is anchored in the City Ecology Program , that gives priority to improve the air quality and reduce climate emissions. For Akershus, it is anchored in the Climate and Energy plan Akershus , along with several County Council decisions. GOALS Oslo-Akershus aims to be among the leading regions in the world for early use of fossil-free hydrogen for transport solutions. The region will thereby contribute to the build-up of national and international hydrogen infrastructure, as an important step in the phasing out of fossil fuels. Our main responsibility is to enable access to hydrogen fuel, strengthen the value chains and stimulate to increase demand. GOAL FOR EARLY PHASE, In the early phase, Oslo and Akershus should be among the preferred locations in the world for the use of hydrogen as fuel, and have fuel cell electric vehicles commercially available from By the end of 2018 the region should have at least 350 FCEVs and minimum 30 hydrogen buses.

3 GOAL FOR THE PERIOD By 2025 the region should have a sufficiently established HRS network which forms a basis for a national and Nordic infrastructure for FCEVs. The number of FCEVs will have surpassed and the number of hydrogen buses 100. Simultaneously the Oslo region should be internationally known for innovation and technology development related to fossil free transport. APPROACH Early phasing in of hydrogen based transport demands instruments to ensure: access to vehicles, access to sufficient fuel, and sufficient growth in the demand. The highest emphasis should be placed on establishing hydrogen refuelling stations. Important is also to stimulate the demand in order to improve the economy of the station network operation. An early high share of taxis and buses will contribute to this. TIME FRAME Because the strategy is being formed at a time of fast technological improvement, and in advance of the fully commercial introduction of FCEVs, the strategy is in need of both a strict time frame and revisions. The time frame of the strategy is from 2014 (early introduction) to 2025 (fully commercial), and is split into two phases: Phase I ( ) is characterized by a high engagement by the public and establishment of robust public private partnerships, whereas during Phase II ( ), industry and private actors will take an increasingly leading role, until we reach the third and fully commercial stage in An action plan to follow up on the strategy will be launched in the autumn of The strategy should be revised for the first time already in 2016, since the FCEVs by then will have entered the market, and a much greater clarity with regards to automotive actors and expected numbers in the coming years should be in place, due to the announced larger FCEV introduction in The need for further revisions will be evaluated at the end of Phase I. The action plan will be revised every second year. NATIONAL AND INTERNATIONAL DE- VELOPMENTS The Norwegian government s goal is to reduce tailpipe emissions to below 85 grams CO2/km by 2020, and the government has also stated that Norway should be internationally leading in facilitating for the introduction and use of battery- and fuel cell electric vehicles. The governmen-

4 H tal body Transnova has been set up to fund actions to reduce greenhouse gas emissions from transport. If the regional efforts in Oslo and Akershus are matched with a broader national effort on establishment of hydrogen infrastructure in Norway, then Southern Norway could have a hydrogen refuelling infrastructure which allows driving between all the big cities in place by Local initiatives for this are already in place in several regions, like Bergen and Trondheim. Internationally, hydrogen infrastructure is now primarily being established in Japan, South- Korea, Germany, Scandinavia, UK, the Netherlands and California. ESTABLISHING A PERMANENT AND ROBUST HYDROGEN INFRASTRUCTURE Even though the Oslo region has a relatively high density of hydrogen refueling stations (1/5 of all publicly available 700 bar refueling stations in Europe March 2014), they are all demonstration, stations with a low refuelling capacity. The demonstration stations do not have the sufficient availability for a proper market introduction. Oslo and Akershus acknowledges this, and are prepared to establish the first of robust refuelling stations in the Oslo-region by The stations are planned for HYDROGENCAR REFUELLING STATIONS IN EUOROPA 2013 Source: With a high number of the existing hydrogen refuelling stations in Europe, and the world`s best incentives for zero-emission vehicles, Norway is already well positioned for early phasing in of FCEVs.

5 100 % availability on fuel supply, with a capacity for cars per day ( kilo/day). These stations will feature on-site production of hydrogen, with trucked-in hydrogen as a backup-solution. PHASE 1: HYDROGEN INFRASTRUC- TURE DEVELOPMENT BEFORE VEHI- CLE INTRODUCTION ( ) For hydrogen to be a real alternative for consumers, the number and capacity of the hydrogen refueling stations in the introduction phase will be developed ahead of the increasing number of vehicles. Locations for the hydrogen refuelling stations in Phase I have been identified, and with the above-mentioned specifications, a total of five new hydrogen stations will supply a maximum of 750 hydrogen vehicles per day by the end of This translates into capacity of serving 2750 FCEVs, based on the following distribution: 2000 privately owned vehicles, 500 taxis and 250 public service vehicles. This number of vehicles will presumably be in place by It is estimated that the costs of establishing and operating the necessary infrastructure in Phase I will be around 250 million NOK, or 30 M. These costs are proposed to be shared between Akershus County, Oslo municipality and Transnova. PHASE II: THE TRANSITION TOWARDS A MATURING MARKET ( ) During Phase II, the main tasks will be to further develop the infrastructure so that by 2025 there is a capacity for at least hydrogen vehicles in the region, which is set as a strategic goal for the period. With an increasing number of vehicles, the capacity of the stations will have to increase as well, and private actors will be required to engage to an increasing degree, as the operation of the stations will become gradually commercially viable. The goal is that the share of public funding through the period will gradually be phased out by 2025 at the latest. Total infrastructure investment in the period is estimated to around 700 MNOK (approx. 85 M). Investments in hydrogen infrastructure outside of the region are estimated to be at least 25 M. A major expansion of the bus fleet is also planned, to meet the region s goal of fossil free public transportation within At least a further 100 fuel cell buses will be deployed, to provide a significant contribution together with an increasing number of biogas, battery electric and bio-ethanol buses. Estimated costs for bus deployment is around MNOK (approx M).

6 H RISK AND VULNERABILITY ASSESSMENTS The probability that the hydrogen commitment will not succeed is small (estimated 5%), and the probability that the development will be delayed by 3 4 years is estimated to be about 20%. The strategy allows for a yearly exit-option the first three years. The following years, exit-options will be defined by the framework of the public-private partnerships which are planned. There is a general consensus that an eventual exit should not happen until the first bus- and taxi-project has been completed ( ). DEVELOPMENT OF THE HRS NETWORK In order to ensure a cost-efficient establishment and operation of the HRS network, the existing support/ loan-structure is recommended to continue through Simultaneously efforts will be made to facilitate for public-private partnerships with the goal of offering hydrogen at conventional refueling stations. Two or three periods of different duration and a stepwise reduction in public support should be employed to make the process both effective and predictable. The overall goal is to make the period of public support as effective and short as possible. A prerequisite for Oslo and Akershus to receive FCEVs when volumes in the early phase are low is a sufficient and robust network of hydrogen refuelling stations. With a high number of the existing hydrogen refuelling stations in Europe, and the world`s best incentives for zero-emission vehicles, Norway is already well positioned for early phasing in of FCEVs. Priorities in Phase I ( ): To maintain and strengthen the HRS network, including employing more effective trucked-in solutions To ensure a robust and reliable supply of hydrogen at key locations which should be suitable for taxis and other car fleets To increase the refuelling capacity for buses, and the existing fleet increase to at least 30 buses. Priorities in Phase II ( ): To develop a commercially viable HRS / fuel distribution business To increase the capacity of existing and new stations To ensure that cars get access to bus refuelling stations To integrate the new infrastructure with the existing European HRS infrastructure To increase the number of buses to i minimum of 100 buses.

7 Through the whole strategy period hydrogen business development will be a priority. COMMUNICATIONAL, PROMOTIONAL & POLICY INFLUENCE ACTIVITIES High priority will be placed on marketing the Oslo and Akershus Hydrogen Commitment. Efforts will be made to assure that the Oslo region will be known for: 1) Being an international leader of HRS infrastructure development, and hydrogen related technology. 2) Favorable incentive schemes for import and sales of zero emission vehicles. Priority will be given to attract the automotive industry for FCEV fleet marketing and export to Norway, and neighboring countries and regions will be invited for enhanced European cooperation. International collaboration has been ongoing for several years between Scandinavian actors as well as regions in German and UK; Hamburg, Berlin, Stuttgart, London and Aberdeen. Further collaboration will be pursued particularly with regions with a high degree of HRS roll-out. For a hydrogen infrastructure rollout plan in Southern Norway to be successful, HRS development needs to be expanded to the neighboring counties, with establishment of corridors to Norway s second largest cities Bergen, Trondheim, Stavanger, as well as toward the continent via Gothenburg and Copenhagen. Cooperation with respective regions is necessary to fulfill this, in which existing bilateral agreements will be strengthened.

8 Akershus fylkeskommune Postboks 1200 Sentrum, 0107 OSLO Schweigaards gate 4, 0185 Oslo Sentralbord: Film about Akershus County Council hydrogen commitment: H

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