Hydrogen and Fuel Cell Technology Innovation Programme

Transcription

1 TRANSLATION National Development Plan Version 2.1 for the Hydrogen and Fuel Cell Technology Innovation Programme submitted by

2 TRANSLATION Preamble The present National Development Plan describes the programme of work for the National Hydrogen and Fuel Cell Technology Innovation Programme (NIP) of the German Government, which provides for additional funding totalling 500 mio until 2015 for research and development (R&D) as well as the demonstration and commercialisation of hydrogen and fuel-cell technology. Version 2.1 of this plan represents a further development of earlier versions from June/July 2006 and February 2007 and contains information, in particular, on research areas to be supported, planned budgets in these areas, eligibility criteria and the definition of demonstration and lighthouse projects. It also explains the programme coordination via the programme management association and existing funding agency structures and the classification and coordination of the programme with further national, regional and European activities. The first version of the development plan was presented and discussed in June 2006 at the Second Plenary Meeting of the Strategic Council for Hydrogen and Fuel Cells". Since then, the participants from the various national ministries and the ministries of the individual German Länder or States, as well as business and science have had the opportunity to submit comments and requests for revision to the Coordination Group of the Strategic Council for Hydrogen and Fuel Cells or its Secretariat at the National Coordination Office Jülich for Hydrogen and Fuel Cells (NKJ). The status of the preparations for the Innovation Programme or the Development Plan was discussed and agreed-to in September 2006 with the representatives of the ministries and initiatives of the Federal States (as part of a so-called states meeting ) and in October 2006 with the management boards of leading companies active in hydrogen and fuel cells (as part of an "industrial meeting"). The willingness of the Federal States and business to support and play an active role in the Innovation Programme was reiterated at both events. In this way, 24 companies representing the national and European hydrogen fuel cell sector have agreed to a protocol declaration for the provision of their own resources to at least 50 % of the total project budgets. The National Hydrogen and Fuel Cell Technology Innovation Programme is based on the European Implementation Plan formulated on the European Hydrogen and Fuel Cell Technology Platform (HFP). This implementation plan will be realised with the Joint Technology Initiative, whose organisation is still being formulated, and the 7 th Research Framework Programme of the EU Commission. The Coordination Group of the Strategic Council and the respective heads of the working parties are individually responsible for the content of the development plan. These are Dr Bonhoff (VES) for the area Transport, Mr Ballhausen (IBZ) for the area Stationary Applications for Domestic Energy Supplies, Mr Schiel (VDMA Fuel Cells) for the area Stationary Industrial Applications and Professor Tillmetz (Fuel Cell Alliance of Germany, BZB) for the area Special Markets. In order to define contents and budgets, meetings of the working parties were held, while subject-specific contributions dealing with individual issues on a technical and scientific level were provided by the existing working groups of the Strategic Council.

3 TRANSLATION Moreover, ministries, Länder governments, initiatives, industrial enterprises, science and research institutes have also been involved. The development plan ties in with the commercialisation strategy of the Fuel Cell Alliance of Germany from 2004 in the area of stationary applications and is supplemented by the consultancy study Analysis and Evaluation of Instruments for the Commercialisation of Stationary Fuel Cells drawn up by IZES GmbH in To be able to respond flexibly to future developments, adaptations and modifications will be made to the development plan by the Strategic Council over the course of time as necessary.

4 TRANSLATION Table of Contents Preamble... i 1 Introduction Aims and Objectives Development Plan for Transport Scope Development plan Research and development activities Demonstration projects Overview of the subjects and budgets in tabular form 9 4 Development Plan for Stationary Applications for Domestic Energy Supplies Scope Development plan Research and development activities Demonstration projects Overview of the subjects and budgets in tabular form 15 5 Development Plan for Stationary Industrial Applications Scope Development plan Research and development activities Demonstration projects Overview of the subjects and budgets in tabular form 20 6 Development Plan for Special Markets for Fuel Cells Scope Development plan Research and development activities Demonstration projects Overview of the subjects and budgets in tabular form 25

5 TRANSLATION 7 General Criteria for Project Funding and Guidelines for Evaluating Lighthouse Projects General criteria for project funding Guidelines for the evaluation of lighthouse projects Programme Management Association Appendix... 36

6 INTRODUCTION 1 1 Introduction Germany is currently faced with the challenge of how to press ahead with the transition to sustainable energy supplies. The overall energy policy concept until 2020 is currently being formulated as part of the Energy Summit process and will be presented in the second half of The energy policy measures are intended to ensure a secure, competitive and environment-friendly energy supply over the long-term. Innovation and technological progress are indispensable components of this concept. Hydrogen, as a secondary source of energy, and fuel cells, based on technologies with particularly high efficiency, have been identified as important elements of a future sustainable energy supply. The German Government is supporting the further development and introduction of these technologies via targeted funding provided within the scope of the National Hydrogen and Fuel Cell Technology Innovation Programme which has been jointly drawn up by the Federal Ministry of Transport, Building and Urban Affairs (BMVBS), the Federal Ministry of Economics and Technology (BMWi), the Federal Ministry of Education and Research (BMBF) and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). Under this programme it is planned to spend an additional 500 mio to promote this technology in the course of the next ten years. Continuing the successfully implemented R&D funding of fuel cells and hydrogen by the German Government (especially by the Federal Ministry of Economics and Technology) means that, taking into account the complementary funding from industry and users, funding of up to 1.4 bio will be available for the time period from 2006 until This will be supplemented by funding from the Federal Ministry of Education and Research for basic research and for the institutional funding of the major research institutes active in this field. As a result, the previous activities of the Federal Government, industry and research will not only be continued in a much more concentrated manner but also significantly broadened, with new focal points being added. Within the European Union, Germany has a special leading role resulting from its presidency of the EU Council in the first six months of This also applies for its presidency within the G8. The National Innovation Programme has been developed in coordination with the European Hydrogen and Fuel Cell Technology Platform (HFP), which makes specific recommendations for the 7 th Framework Research programme (FP 7) and for the Joint Technology Initiative (JTI) currently in preparation. There has also already been considerable integration of the competencies and experience of the Federal German States in the National Hydrogen and Fuel Cell Technology Innovation Programme. Both result in the situation where further funds will be available for the implementation of projects in Germany in research areas identified jointly with the European Union and the regions. The aim of the programme is to provide targeted assistance and funding to the emerging hydrogen and fuel-cell industry in the mobile, stationary and portable sectors in Germany. This will speed up market developments for this technology, which are important for Germany s competitiveness and in particular establish

7 INTRODUCTION 2 value-creation chains and shares which will secure the country s leadership in this area (cf. Chapter 2). As part of the programme, small and medium-sized companies will receive targeted funding, while measures tailored to medium-sized business will also be devised (e.g. a small appliances programme 1 ) with the aim of both creating networks of technology-orientated companies and creating the conditions for utilising the research findings of German and European institutions in both Germany and Europe. On the basis of the German Government s innovation programme, the present aim is to complete the development of the detailed work programme during the first quarter of 2007 so that it can be implemented from the middle of 2007 onwards with definite R&D, demonstration and lighthouse projects aimed at preparing future markets. This will thus complete the mission given by policy-makers to the Strategic Council on Hydrogen and Fuel Cells at the Parliamentary Evening held on the 8th May 2006 in Berlin. The Federal German States are involved at an early stage to pave the way for realising the demonstration and lighthouse projects and technology clusters in model regions. The question of hydrogen availability is particularly important when it comes to realising the lighthouse projects, especially for transport applications. When producing and distributing hydrogen, it is particularly important to take into account economic aspects, increases in efficiency, the reduction of carbon dioxide emissions and the broadening of the primary energy-source portfolio (especially the increased use of renewable energy sources and resources and of fossil fuels with carbon sequestration). Hydrogen can also play an important role in optimising the capacity utilisation of electricity grids over the medium and long-term. Questions concerning the provision of hydrogen in market-relevant volumes for Germany and its implications for demonstration activities prior to market entry call for national coordination. The current state of discussion will be summarised in a meta study GermanHy which will be realised shortly. The present work programme is divided into four development plans which are designated according to their different areas of operation: Transport, including hydrogen infrastructure (production, distribution, storage and refuelling; cf. Chapter 3); Domestic energy applications (cf. Chapter 4); Industrial applications (cf. Chapter 5); Special markets for fuel cells (cf. Chapter 6). The figures cited in the individual chapters do not represent budgets of the National Innovation Programme, but rather planning figures which will be further elaborated upon by the industries and institutions involved. These figures are not 1 Smaller projects for the periphery of the PEMFC domestic energy supply are funded as part of the Small Appliance Programme, which is a component of the 5 th Energy Research Programme of the Federal German Government under the overall guidance of the Federal Ministry of Economics and Technology.

8 INTRODUCTION 3 fixed (in the sense of a budget), but rather serve as orientation guidelines for the intended activities. The general eligibility criteria for all projects to be implemented as part of the National Hydrogen and Fuel Cell Technology Innovation Programme and the guidelines and requirements for the lighthouse projects are explained in Chapter 7. The National Hydrogen and Fuel Cell Technology Innovation Programme will be implemented by the programme management association NOW (National Organisation for Hydrogen and Fuel Cells), which will be founded in mid-2007 and by the Project Management Organisation Jülich (PtJ), an already existing research funding organisation. The organisational structure of NOW, the division of responsibilities and the interface between these two institutions are explained in Chapter 8. The interfaces and coordination processes with other programmes and activities on a national, regional and international level are also outlined. The exchange of technology plays an important role, not only within, but (wherever possible), also between the individual applications. Against this background, the synergy potentials cited in Chapter 8 (and in the Appendix) will be analysed and utilised intensively.

9 AIMS AND OBJECTIVES 4 2 Aims and Objectives The leading position which German industry and science has attained in hydrogen and fuel-cell technology thanks to the funding of research and development, particularly of components and systems, during the last decades has to be consolidated and expanded. Supporting measures to prepare for commercialisation are needed in order to progress along the road to commercial use in Europe and to compete with the USA and Japan. These are also needed in order to build up the corresponding sectors of industry. Initiatives with calculable risks for marketorientated products and a high level of development dynamism must be at the forefront. The value-creation chain must be established in an evolutionary and dynamic manner and the transition from technology to market must be consistent. This will secure jobs in Germany as a centre of innovation and will make a major contribution to developing efficient and less-polluting energy supplies and usage. The Federal Ministries involved in the Innovation Programme coordinate their activities closely with one another and, together with the governments of the German Länder, provide sustained political support for the programme. The links to the programmes being discussed within the scope of the EU s 7th Framework Programme for Research also make it possible to make use of trans-national resources. Reliable framework conditions set by Government are imperative for the commercial introduction of fuel-cell and hydrogen technologies in order that all parties involved (users, manufacturers and suppliers) can accurately and detailed evaluate the opportunities and risks presented by these technologies. In this context, the question of the production of hydrogen is especially important for transport applications. Hydrogen can be produced from various primary energy sources and thus offers, when renewable sources of energy are used, the longterm option of constituting a fuel supply independent of oil. This is of particular interest to the transport sector. On the way to this goal, natural gas and even coal (with carbon dioxide sequestration) must be regarded as interim sources and opportunities for the production of hydrogen in the near future. Also, industrial hydrogen, available as a by-product of the chemical and other industries to a sufficient extent for initial applications, will play an important role, especially at the start. Natural gas and, to an increasing extent, biogenic fuels will be used for stationary fuel-cell applications via reforming processes, while methanol and other liquid fuels as well as liquefied petroleum gas (LPG) will be used besides hydrogen in the area of special markets. The hydrogen infrastructure necessary for the transport sector must be strengthened further and this must be done in coordination with the level of development of vehicles with fuel cells and hydrogen internal combustion engines. The existing infrastructures for natural gas and, in part, also biogas, as well as other fuels can initially be used for stationary applications. Hydrogen can also be produced centrally. Application-independent fuelling stations or cartridge systems with the corresponding infrastructure and logistics for distribution can also be used in the area of special markets.

10 AIMS AND OBJECTIVES 5 A high level of technological development has already been achieved for all fuel cell applications and the first pilot and field-test facilities are now in operation. Applications for special markets (e.g. emergency power supplies, lift trucks) and for industrial applications are currently very close to market introduction. For most applications, however, more extensive financial support is necessary for market introduction in order for these to have a realistic chance against established technologies (the chicken-egg dilemma). The consultancy study Analysis and Evaluation of Instruments for the Commercialisation of Stationary Fuel Cells 2 commissioned by the Federal Ministry of Economics and Technology and compiled by the Institute for Future Energy Systems (IZES) provides a good overview of the technological state of the fuel-cell industry in Germany as well as the opportunities and potentials for market introduction and evaluates the challenges and obstacles thereof. The study also proposes an interesting method for commercialising stationary fuel cells, differentiated according to performance classes. A similar survey is planned for the area of special markets. Despite the good results already achieved in all application areas, there continues to be an urgent need for feedback with the R&D programmes in order to fulfil the technical and economic objectives and ultimately have products that are ready for the market. The development of synergies is taken into account both in the German Government s 5 th Research Programme on Energy and in the detailed development of this innovation programme. As many industrial companies, mediumsized enterprises, users and research institutions as possible must be involved in the overall development process so as to be able to offer competitive, cutting-edge technologies on the global market with a large proportion of value created in Germany. Thanks to its internationally strong position in R&D and prototype production, the German supplier industry for fuel cell stacks and components in particular has very good opportunities for not only consolidating but also expanding the creation of goods and services in Germany. In this respect, R&D activities should be orientated towards the entire system as a whole and to the requirements of the users. Requirements in respect of subsystems, subcomponents and system integration must be defined and individual project themes derived which can be covered in collaboration between science and industry, including small and mediumsized companies as well as larger suppliers. More extensive information on the important subjects of research and development is provided in the document of the Strategic Council Future R&D Requirements in the Area of Fuel Cells and Hydrogen 3. 2 See and 3 See

11 DEVELOPMENT PLAN FOR TRANSPORT 6 3 Development Plan for Transport With more than 700,000 employees and a total turnover of more than 200 bio, the transport sector (automotive industry) is one of the most important sectors of industry in Germany. The vehicle sector has the largest research and development budget and thus makes a major contribution to Germany s innovative capacity. The volume of traffic in Germany is steadily on the increase especially in the conurbations as a result of which pollution is also increasing. Moreover, the transport sector is almost completely dependent on petroleum-based fuels. Hydrogen as an alternative fuel and fuel-cell vehicles have the greatest potential for drastically reducing or completely preventing local pollutant emissions and greenhouse gases, considerably reducing energy consumption in the transport sector and utilising a broad portfolio of primary energy sources for the transport sector. Within the frame of the National Hydrogen and Fuel Cell Technology Innovation Programme, it is important to combine research and development work with market-preparatory demonstration projects. On the basis of existing activities in Germany, it is proposed to operate progressively larger demonstration fleets in conjunction with the required hydrogen infrastructure. This gives Germany the opportunity to play a leading role world-wide in shaping the commercialisation of hydrogen and fuel-cell technologies. 3.1 Scope The Development Plan for Transport addresses the applications of hydrogen and fuel-cell technologies which, following successful commercialisation, will make a significant contribution to the security of energy supplies (hydrogen as an alternative fuel derived from a variety of primary energy sources), as well as increasing efficiency and reducing carbon dioxide emissions. It includes research and development work and demonstration activities for hydrogen vehicles for road transport (passenger cars and fleet vehicles such as buses) as well as for the hydrogen supplies needed for this (production, distribution and refuelling), together with the storage of hydrogen as one of the central bottlenecks in the hydrogen chain. In addition to drive systems, systems for on-board power supplies (Auxiliary Power Units, APUs), e.g. for trucks, aircraft and ships, are also taken into consideration. Other areas of application for APUs (mobile homes, small boats) are examined in the area Special Markets (cf. Chapter 6). Further relevant transport sectors are rail and maritime applications. 3.2 Development plan With the active participation of German industry, proof of feasibility for the production and use of hydrogen as an alternative fuel and the operation of hydrogen vehicles is currently being furnished on a global scale from appropriate research and

12 DEVELOPMENT PLAN FOR TRANSPORT 7 development and demonstration activities. First prototypes are being tested for APU applications. Technical objectives which must be met for commercial application are derived from previous experience (see Appendix) and the commercial application (vehicles and fuel) of these technologies is dependent on the validation of their technical and, above all, economic competitiveness and on their acceptance by consumers in comparison with conventional technologies (milestone: 2015). The development plan outlined in Figure 3-1 describes an integrated programme in which the two pillars R&D and Demonstration need to be closely coordinated with one another. The programme is characterised by two phases: the further development of existing concepts and technologies (including innovative approaches) has been placed at the forefront of the first phase, while the validation and demonstration of system solutions forms the focus of the second phase. A verification with regard to technological availability is envisaged as a milestone between these two phases (2010) and the programme must be devised flexibly in order to incorporate the results of this examination Research and development activities The R&D activities are focused on the critical components and processes involved in both the vehicle systems and their corresponding infrastructure. Depending on the particular time-plans and milestones, the applied research should be distinguished from basic research. Thus, although the former work has a direct impact on demonstration activities up to the year 2015 (e.g. the optimisation of liquid hydrogen storage at 700 bar), the latter (e.g. alternative methods for hydrogen storage or high-temperature membranes) will only be relevant for commercial application in the long-term. Both are necessary and must be orientated to the requirements of the specific applications. With respect to vehicles, the R&D work comprises activities for fuel-cell drives, drive concepts with hydrogen combustion engines, hydrogen storage and on-board power supplies for various transport applications, together with hydrogen production and distribution and filling station technology with respect to hydrogen supplies. Questions concerning hydrogen safety are listed as cross-sectional subjects and details about these can be found in the Appendix. Owing to the wide variety of different R&D issues, project-specific milestones are to be defined on an individual basis which will thus ensure that the right priorities in terms of content are set in order to attain the technical objectives and also assure an effective control of the project s progress. The component suppliers (usually small and medium-sized enterprises) and scientific organisations/institutes play an important role, particularly in research and development. It is thus important to include these in the development processes, such as during the definition of market-orientated system specifications.

13 DEVELOPMENT PLAN FOR TRANSPORT 8 Preparation for commercial application R&D Objectives: - Cut costs - Reduce weight - Reduce volume - Increase service life - Improve operating conditions - Improve efficiency rate Phase I Phase II Vehicles: PEM stack, peripheral components, electric drive, H 2 storage, H2 ICE, system integration Infrastructure: Reforming, electrolysis, biomass to hydrogen, H 2 as a by-product, H 2 liquefaction, H 2 storage, H 2 pipelines, filling stations and infrastructure Projects budget: 355 m 2010 Milestone Projects budget: 303 m 2015 Milestone Outlook 2020 Competitive position of German industry established in the field of hydrogen and fuelcell technologies Demonstration Objectives: - Validate technology under everyday conditions - Prepare for commercialisation (customer acceptance) Evolve existing technologies into a sustainable concept Car Fleet operation in regions with suitable H 2 infrastructure Monitored fleet operation (e.g. buses) in several key regions with suitable H 2 infrastructure Optimise and expand filling stations in car and bus regions Validate competitive systems Enlarge car fleet Enlarge bus fleets; Fleet operation in further key regions Expand filling station network for car and bus fleets Various H 2 supply paths (energy efficiency, reducing carbon dioxide emissions, diversifying primary energy portfolio) Phase I: Programme review with regard to technology availability and system solutions Phase II: Competitiveness and customer acceptance compared with conventional technology validated by 2015 Projects budget: 126 m Projects budget: 360 m Figure 3-1: Development plan for Transport Demonstration projects The purpose of the demonstration projects is firstly, to validate systems and methods devised during the course of research and development activities and secondly, to prepare for commercialisation. Validation requires an intensive exchange between R&D and demonstration. In addition, the close link between R&D themes and fleet demonstrations and the long-term approach adopted for the programme as a whole will facilitate the integration of the component supply industry. In preparing for commercialisation, crucial factors are technical performance (e.g. vehicle behaviour, length of time required for refuelling, reliability) and the synchronisation between consumer vehicle operation and the availability of hydrogen; in other words the balance between infrastructure density and a sufficiently high utilisation of this infrastructure in terms of optimal returns on investment. Ultimately the customer acceptance required for market penetration has to be generated through practical experience. In addition, demonstration programmes will create the frameworks required, for example in the licensing and standardisation fields. Fleet operation will be concentrated on a small number of key regions in order to achieve an optimal synchronisation between fleet operation and infrastructure in the pre-commercial phase. In view of the differences in infrastructure requirements

14 DEVELOPMENT PLAN FOR TRANSPORT 9 between consumer and operation profiles, passenger car fleets and so-called controlled fleets (e.g. of buses or vans) will be regarded separately. The deployment of passenger car and bus fleets (e.g. in public transport) is focussed on key regions with suitable hydrogen infrastructures. The programme is open to demonstration projects, provided that the commitment of the Federal German State or region and a corresponding participation by industry ensure their integration into the overall strategic framework. In general, an expansion of the vehicle fleets and the filling station network is assumed between the first phase and the second phase of the programme. Detailed plans regarding the number of vehicles or filling stations are a component of the specific projects or regional activities. In Berlin, for example, the aim is to continue fleet activities beyond 2007, building on the current activities of the Clean Energy Partnership (CEP). The industry involved intends to expand the demonstration project to several hundred vehicles with the associated corresponding hydrogen infrastructure and, in a further technological validation, to demonstrate the new technological advances required. Whereas only fairly small fleet sizes are needed for the validation of the technology, the development and testing of infrastructure and preparation for commercialisation (with an aim to achieving regular operation with full utilisation of the installed capacities) require a significantly larger number of vehicles and hence a higher level of funding. The goal for the infrastructure is to achieve as high a capacity utilisation for test purposes as possible. For the fleet of passenger cars, the provision of an adequate network of filling stations is necessary if customer acceptance is to be ensured. The setting up of the first hydrogen corridors between the various regions is thus being considered towards the end of the programme. On a regional level, the necessity of providing additional hydrogen production capacities in order to supply larger demonstration fleets must be considered. A compromise between economic boundary conditions and the goal of market development (adequate filling station network for the vehicle operators) will be necessary in individual cases and innovative supply models which take into account the interests of all involved will have to be developed. Endeavours should be undertaken, however, to ensure that the corresponding investment risks are borne within the framework of public-private partnerships. In addition to the pillars R&D and Demonstration and the coordination of a national hydrogen supply concept as described above, broader activities of the programme also include measures for supporting work on Regulations, Codes and Standards as well as issues regarding training (technical aspects, public discussion, etc.). To this end, the practical experience gained especially from the demonstration projects must be bundled. The work for the Monitoring Assessment Framework of the EU project HyLights should be drawn upon as a basis for this Overview of the subjects and budgets in tabular form The Development Plan for Transport comprises research and development (longer term and applied R&D), demonstration and other, broader activities. In the case of

15 DEVELOPMENT PLAN FOR TRANSPORT 10 applied R&D, it will be necessary to decide on an individual basis whether the work involved might possibly have to be ascribed to demonstration activities, in the sense of being preparatory work for demonstration. The detailed contents of the R&D activities are described in the Appendix. Overall, a programme with a scope of at least 1,140 mio is outlined in the area of transport, of which approx. 40 % are ascribed to Phase I ( ) and approx. 60 % to Phase II ( ) (see Table 3-1). The share for R&D activities is 57 %, while 42 % are earmarked for demonstration and 1 % for broader activities. Figures in thousand Phase I Phase II Total Research and Development Vehicle FC drive 35,994 33,519 30,219 27,744 26,094 22,794 21,144 19,494 19, ,500 H2 ICE 6,544 6,094 5,494 5,044 4,744 4,144 3,844 3,544 3,544 43,000 H 2 storage 19,633 18,283 16,483 15,133 14,233 12,433 11,533 10,633 10, ,000 APU 5,083 4,708 4,208 3,833 3,583 3,083 2,833 2,583 2,583 32,500 Production 17,489 16,289 14,689 13,489 12,689 11,089 10,289 9,489 9, ,000 H 2 supply Distribution 14,678 13,628 12,228 11,178 10,478 9,078 8,378 7,678 7,678 95,000 Crosssection Safety ,000 Total 100,318 93,388 84,148 77,218 72,598 63,358 58,738 54,118 54, ,000 Demonstration Vehicles Passenger cars 5,415 7,125 12,825 22,800 27,675 29,025 31,050 35,775 43, ,890 Buses 6,290 8,880 20,350 25,900 30,800 33,000 33,000 33,000 33, ,220 Filling stations 300 4,500 4,700 2,800 2,900 5,100 5,300 5,500 7,800 38,900 Total 12,005 20,505 37,875 51,500 61,375 67,125 69,350 74,275 84, ,010 Broader activities H 2 portfolio ,000 Regulations, Codes & Standards Training Total ,000 Totals Total 113, , , , , , , , ,966 1,144,010 Table 3-1: Resource allocation in the area of Transport (figures in thousand euros) Within the R&D activities, it is to be assumed that the resources for the work scheduled for the longer-term are constant over this time. More funds are earmarked for the more applied R&D activities at the start of the programme than at the end. Here it is important to develop technologies which are subsequently able

16 DEVELOPMENT PLAN FOR TRANSPORT 11 to be validated in demonstration activities during the course of the programme (e.g. specific component developments for the next generation of vehicles). The funds for demonstration activities increase over the period of the programme, as relatively few vehicles are available at the beginning. The infrastructure available in the key regions only needs to be extended marginally at the start of the programme and this will also involve integrating new infrastructure technologies at existing filling stations (e.g. 700 bar filling). Parallel to the expansion of the fleets over the period of the programme, the hydrogen supply (production / distribution / filling) will also be developed. Activities for the development and definition of future H 2 portfolios, for Regulations, Codes and Standards and for training represent the broader topics.

17 DEVELOPMENT PLAN FOR STATIONARY APPLICATIONS FOR DOMESTIC ENERGY SUPPLIES 12 4 Development Plan for Stationary Applications for Domestic Energy Supplies Compared to developments worldwide, Germany has attained a particularly high standard of heating technology and the heating system manufacturers based in Germany play a leading role in Europe. Following the introduction of lowtemperature and condensing boiler technology, combined heat and power generation via fuel cells will represent the next technological advance in this sector. The simultaneous generation of power and heat in detached houses and apartment blocks or businesses using fuel cells makes it possible to achieve high overall efficiency rates (>85 %) of the primary energy input. The power generated can be used by the households themselves or can be fed into the electricity grid. This results in a reduction in carbon dioxide emissions of between 20 and 30 % compared with modern conventional supply systems (gas-condensing boiler and electricity from the grid). Germany and Japan are playing a pioneering role in developing combined heat and power (CHP) domestic energy systems based on fuel cells. Considerable efforts must continue to be made in research and development in this area over the next few years. In parallel, however, it is necessary to verify the technology with regard to its suitability for everyday use in large-scale demonstration projects and utilise the insights gleaned from this to attain commercial readiness. Fuel-cell heaters will be installed in normal housing in the demonstration projects and pilot consumers with a particular interest in the new technologies will have to be sought, particularly during the first years. In order to ensure service and supply reliability, these projects will be frequently implemented in collaboration between the fuel-cell developers and energy supply companies. The installation and maintenance of the systems will be carried out by specially trained trade businesses. Besides the technical validation of the fuel cells, the projects should also provide insights into the requirements of customers and fitters. 4.1 Scope The development plan Stationary Applications for Domestic Energy Supplies" concerns systems in the power range from below 1 kw to approx. 5 kw. In Germany alone, over 100 systems have already been tested in buildings under reallife conditions. At the same time, key regional areas have also emerged in the Federal German States of Lower Saxony, Baden-Württemberg and North-Rhine Westphalia, amongst others. The fuel used in these tests is natural gas from the existing networks. In the medium term, the use of biogas supplied to the natural gas grids as well as the direct use of biogas are planned. Stationary fuel cells therefore have the advantage that they do not require a hydrogen infrastructure to be installed for their operation, although the reformer system components have to be integrated in the development of such fuel cells. In the long-term, an expansion to also include local hydrogen networks is also conceivable.

18 DEVELOPMENT PLAN FOR STATIONARY APPLICATIONS FOR DOMESTIC ENERGY SUPPLIES Development plan The basic functionality of fuel cells has already been proven in numerous field test facilities. It is apparent, however, that further developments are needed in order to improve the reliability of the systems, to make them less complex and to lower the costs involved. It is therefore necessary to bring fuel-cell systems to commercial maturity within a strategic plan coordinated between industry, research institutions and the policymakers concerned. To this end, in the course of various workshops with developers, institutes and energy suppliers a coordinated development plan describing R&D measures and demonstration projects has been drawn up (see Figure 4-1). Preparation for commercial application R&D Objectives: - Increase reliability - Increase service life - Reduce system complexity -Cut costs Phase I Temperate-stable and durable reformer materials Compact, efficient gas generation Stack ageing mechanisms LT PEM: service life, resistance to noxious fumes, water management HT PEM: materials, service life, power density SOFC: cyclability, redox resistance, operating temperature, internal reforming Standardised BoP components Production processes Projects budget: 169 mio 2010 milestone Phase II Costs of desulphurisation, reformer materials and catalytic converters Reformers for biogas, LPG and fuel oil Costs of stack materials, reduction of platinum load LT and HT PEM: increase power outputs SOFC: cyclability, redox resistance Establish production capacities on an industrial scale Projects budget: 192 mio 2015 milestone Outlook Objective 72,000 units/a Demonstration Objectives: -Validate technology under everyday conditions -Customer and trade acceptance 450 units Validate: - Regulatory strategies - Functionality, efficiency and service life - Service / maintenance work required and availability η el > 30-33% η total > 84-90% Stack > 10,000 hrs 2,250 units by Validate technology - Establish production - Electricity grid utilisation, Virtual Power Plant (VPP) - Ensure skills in trade - Compatibility with biomethane η el > 33-35% η total > 87-90% Stack > 25,000 hrs 1,700 /kw (Added costs compared to conventional alternatives) Projects budget: 43 mio Projects budget: 98 mio Commercialisation Figure 4-1: Development plan for stationary applications for domestic energy supplies Research and development activities A description of key R&D tasks for the reformers and the two types of fuel cell (PEM and SOFC) is given in Figure 4-1. New materials stable over the long-term need to be developed for natural gas reformers whereby the integration of gas preparation in the overall systems must result in compact and cost-effective solutions.

19 DEVELOPMENT PLAN FOR STATIONARY APPLICATIONS FOR DOMESTIC ENERGY SUPPLIES 14 For the fuel-cell stacks, great importance is attached to extending service life, improving reliability and developing production processes of both types of fuel cell. The most important technical objectives for the development of the lowtemperature PEM fuel cells are to increase stack power densities, reduce both precious metal contents and water turnover, make the process largely independent of water grids and increase both carbon monoxide and sulphur tolerance. In addition, the development of high-temperature membrane materials ( C) is opening up a promising technology. It has the advantage that the water generated is in the vapour phase and can thus be evacuated from the fuel cell more easily. In addition, high-temperature membranes allow a more simplified gas preparation. In the case of SOFC cells, efforts are being undertaken to reduce the dependency of the power density on the operating temperature whilst at the same time improving cell mechanical strength, sturdiness and cycling capability. The thermal management at stack level must also be improved through new design solutions in combination with the use of new materials. The redox stability of the stacks (admission of small amounts of oxygen into the anodic side of the cells during the hot operating state) and their thermal cycling capacities are important requirements for the development of low-power SOFC systems suitable for serial production because although flushing with nitrogen (or other gases) is conceivable for large plants with few cycles, this is nevertheless impossible for small systems. Accelerated life-cycle tests and simulation procedures must be developed in the future for the individual components as well as for the system as a whole. Work is also progressing with a view to evolving production processes and optimising the integration of fuel-cell heating appliances into the system. A long-term goal is to develop reformers for other types of fuel such as biogas, liquefied petroleum gas (LPG) and sulphur-free heating oil. System efficiency rates and service lives serve as milestones for the development. It should be borne in mind that low-power systems for detached houses (<3 kw) will tend to achieve lower efficiency rates than systems for apartment blocks or business premises (>3 kw). It is reasonable to expect an electrical efficiency of between 30 and 33 % during the first phase ( ), whereas rates of between 33 and 35 % may be expected for the second phase ( ). The overall efficiency (electrical and thermal) should be roughly 84 to 90 % during the first phase and improved to 87 to 90 % in the course of the following years. Fuel cells should achieve a stack life of 10,000 hours in the first phase and 25,000 hours in the second phase Demonstration projects Technology validation and market preparation are to be realised within the demonstration projects.

20 DEVELOPMENT PLAN FOR STATIONARY APPLICATIONS FOR DOMESTIC ENERGY SUPPLIES 15 Experience will be gained with larger unit quantities, while reliability and reproducibility will be enhanced, user behaviour analysed, installation and service by workmen tried and tested and market barriers to commercial use identified. The supply chain will be initiated with commitments regarding minimum order numbers and an initial market for component suppliers will be created. And the effects of decentralised energy generation systems on power networks will be ascertained and virtual power plants tested. In addition, the results obtained will result in targeted R&D activities for the next generation of fuel-cell systems and will be used to optimise products until they have reached full market viability. The demonstration and lighthouse projects and training and education measures are designed to prepare the market partners such as fitters, planners, architects, institutes of higher education and end-users for the commercialisation of fuel-cell systems for domestic energy supplies. Customer acceptance will play a major role in the development and operation of lighthouse projects, as will the evolution of the required regulatory framework and the verification of the potential for reducing carbon dioxide emissions Overview of the subjects and budgets in tabular form In comparison to traditional technologies, enormous research and development expenses are needed in order to bring fuel cells to market maturity. The total budgetary requirement for projects is estimated at around 361 mio over the time period until At the same time, this only involves application-orientated R&D, which is to be realised through cooperative partnerships between industry and science (cf. Table 4-1). Gas generation essentially refers to natural gas reformers. Cell and stack development for PEM fuel-cell and SOFC technology is combined in the area of stacks. The term Overall system describes the development and integration of the components. The Methods include simulation procedures and the development of accelerated tests. More details of the subjects are provided in the Appendix. The demonstration needs will increase with time and the development is tied to achieving critical milestones. Systems are listed that are planned to be installed at end users in cooperation between energy suppliers and equipment manufacturers. The project duration has been calculated at three years on average and takes the installation and operating costs into account in the budget. Moreover, the budget also considers costs earmarked for funding education and training for the trade as well as financing projects aimed at integrating fuel cells in existing and changing infrastructures for electricity and gas. The total projects volume is around 140 mio (cf. Table 4-1). From 2012 onwards and based on current evaluations, a commercialisation programme is planned to support the broad market introduction. Similarly, according to current planning, no further new systems will be funded from the innovation programme in the years 2013 and 2014, only the operation of the systems already installed by then being continued.

21 DEVELOPMENT PLAN FOR STATIONARY APPLICATIONS FOR DOMESTIC ENERGY SUPPLIES 16 Figures in thousand Phase I Phase II Total Research and Development Gas generation 7,200 7,200 6,400 6,400 6,400 6,400 2,200 2,200 2,200 46,600 Stack 25,600 25,600 24,600 25,300 25,300 25,300 25,000 25,000 25, ,700 Overall system 6,900 6,900 7,900 7,900 7,900 7,900 7,500 7,500 7,500 67,900 Methods 2,800 2,800 2,800 2,800 2,800 2, ,500 Total 42,500 42,500 41,700 42,400 42,400 42,400 35,600 35,600 35, ,700 Demonstration Total 2,500 6,500 13,500 20,000 36,500 50,500 7,000 4, ,500 Totals Total 45,000 49,000 55,200 62,400 78,900 92,900 42,600 39,600 35, ,200 Table 4-1: Resource allocation in the area of Domestic supplies (figures in thousand euros).

22 DEVELOPMENT PLAN FOR STATIONARY INDUSTRIAL APPLICATIONS 17 5 Development Plan for Stationary Industrial Applications Supplying the world with energy represents a very large growth market and provides tremendous scope regarding fuel cells for stationary industrial applications. Throughout the world, energy consumption is rising and the availability of resources is falling, which means that there is a massive demand for efficiency technologies. In Germany alone, 70 bio will be invested in new power generation plants and network infrastructures by the year 2012, according to commitments given by the energy supply industry at the National German Energy Summit. The decentralised generation of power and heat in fuel cells for supplying energy to industrial plants and other large-scale facilities will make it possible to achieve total efficiency rates of over 90 % of the primary energy used, with electrical efficiency rates of more than 50 %. The power generated can either be consumed directly or fed into the power grid. These high electrical efficiency rates will result in a reduction in the consumption of resources and in carbon dioxide emissions, also compared with conventional combined heat and power generation (CHP). In comparison to conventional generation of power and heat the figure is as high as 30 % to 40 %. When using biogenic fuels, greenhouse gas emissions are restricted to the substances bound in the plants. Initially, natural gas will predominantly be used as a fuel on the basis of the existing pipeline networks although CO 2 -neutral biogenic fuels are already being utilised in some first projects. In the medium-term, coalderived gas with CO 2 sequestration can also be used, and in the long-term centrally generated hydrogen. Germany and the USA are pioneers in the development of industrial CHP plants based on fuel cells. In the area of industrial applications, in addition to further R&D activities towards reducing costs and extending the service life of stacks, balance of plants and overall systems and further demonstration projects for verifying suitability for everyday use, measures to support market introduction are required for achieving effects of scale. This is imperative if technological developments are to be successfully marketed and the corresponding industry is to be built up and consolidated in Germany. As part of the National Hydrogen and Fuel Cell Technology Innovation Programme, the main focus in the area of stationary industrial application is therefore on demonstration and lighthouse projects in various fields of application, from information technology to decentralised energy supplies. Technological developments in the large performance range of stationary applications are to be demonstrated in the projects, with various fuels in various diverse forms of application, while further consumer experience with installation, service and maintenance is to be gathered and evaluated. 5.1 Scope In the case of fuel cells for stationary industrial applications, this involves CHP plants with a power range from around 100 kw to a few megawatts. Several hundred such plants are in operation around the globe. A further option is trigeneration, i.e. the additional generation of cooling from the high-temperature waste heat via absorption chillers.

23 DEVELOPMENT PLAN FOR STATIONARY INDUSTRIAL APPLICATIONS 18 MCFC technology is being developed in Germany and the USA, while SOFC technology is being predominantly developed in Germany and the USA. German companies, therefore, are international leaders in MCFC and SOFC technology and service lives around and above 30,000 hours have already been demonstrated with both technologies, based on a larger number of 250-kW systems in the case of MCFC, and with a 100-kW system for SOFC. With increasing interest in SOFC technology in Europe and Germany (cf. Chapters 3 and 4), further developers will possibly also become active in the area of larger systems too. 5.2 Development plan The basic functionality of fuel cells has already been proven in industrial application in demonstration systems. Some systems are being tested under real-life conditions in hospitals, telecommunications and industrial facilities as well as at energy suppliers. Here too, further developments and experience are required to improve reliability, make the systems less complex and cut costs and the development plan shown in Figure 5 outlines the essential activities necessary. It describes a programme in which R&D and demonstration activities are coordinated and accompanied by a commercialisation programme in order to achieve the objective of providing competitive systems for the global energy supply market in the face of international competition Research and development activities The R&D priorities of the development plan (cutting costs, increasing plant size, optimising components and expanding production capacities) apply to all fuel cell technologies used in the area of stationary industrial application. For MCFC technology, extensive R&D activities are planned to achieve both service-life and cost objectives for the commercial phase. High-temperature and corrosion-resistant coatings as well as porous metal and ceramic structures, powder materials and insulation material are being developed with a view to optimising the cells. Stack mechanics are being optimised and the power density is being increased by 25 %. Manufacturing processes and production technology also have to be evolved. In order to make efficient use of renewable energy sources, system and cell technology is being adapted to biogenic fuels. In the area of tubular SOFC technology, the results of system developments for the European market will be incorporated in demonstration plants of size 125 kw by The main focus of development activities for costs reduction is the development of new cell generations which makes it possible to increase power density by a factor of three. This should be realised in the 500-kW class by Other R&D priorities such as low-temperature operation up to 650 C and the coupling to a gas turbine in pressurised operation will be integrated into the megawatt class by Operation with coal gas and CO 2 separation will be demonstrated by Various research institutes are working on concepts and systems for industrial CHP generation in the power range from 20 kw to several hundred kilowatts with planar SOFC technology. The aim is to develop a 100 kw system by the year

24 DEVELOPMENT PLAN FOR STATIONARY INDUSTRIAL APPLICATIONS Further research and industry partners might become increasingly involved in the development over the coming years. For planar construction forms, R&D goals comprise the development of modules with compact structures and high power densities and hence more favourable general economic conditions. Systems in the high-power range can also be used as APUs on ships and in aircraft (cf. Chapter 3). The R&D budgets of around 10 mio necessary for these developments have not yet been incorporated in the planning figures for industrial application, since to date it has not been possible to identify corresponding project financing from industrial partners. Preparation for commercial application R&D Objectives: - Increase reliability - Increase service life - Reduce system complexity -Cut costs Demonstration Objectives: - Increase of reliability - Validate technology -Cut costs - Acceptance - Prepare for commercialisation Commercialisation Phase I : 54 MW Cut costs of manufacture, operation and maintenance Reliability, quality Develop and qualify components and subsystems Develop manufacturing processes for the mass production of cell components Cut life-cycle costs Establish production capacities Projects budget: 52 m Demonstrate higher power outputs with lower specific costs; biogenic fuels η el > 50 % Projects budget: 96 m Commercialisation programme to accompany introduction of technology 2010 Milestone Phase II : 620 MW Cut production costs Increase size of systems Expand production capacities Standardise components Projects budget: 28 m Demonstrate increased power output; cut specific costs; hybridisation and gasification technologies Stack life: 40,000 hrs Projects budget: 75 m Commercialisation programme to accompany commercialisation 2015 Milestone Outlook 2020 Competitive systems for the global industrial and energy supply markets Figure 5-1: Development plan for stationary industrial applications Demonstration projects Technology validation and market preparation are to be realised via the national demonstration projects and the European lighthouse projects. These projects will make it possible to gain experience from practical tests for new developments, various fuels, higher power outputs, lower specific costs and larger production numbers so as to optimise integration into existing infrastructures and enhance reliability. Field tests for hybridisation and gasification technologies will also be carried out. The demonstration and lighthouse projects will be used for targeted R&D for the next generation of fuel-cell systems and for optimising products,

25 DEVELOPMENT PLAN FOR STATIONARY INDUSTRIAL APPLICATIONS 20 thereby achieving full market viability for industrial application. They are a major step on the road towards preparing for commercialisation. A system life of 120,000 h (corresponding to 15 years) is aimed for in MCFC and SOFC development by Stack lives of at least 40,000 (MCFC) and 60,000 (SOFC) operating hours are both target specifications and milestones which means that degradation must not exceed 0.1 % per 1000 hours. The overall efficiency should attain as high as 90 % by Electrical efficiency rates of 50 % will be achieved as early as 2010 and lie significantly higher by A major long-term objective is the combination of high-temperature fuel cells with gas or steam turbines and operation with coal gas. This will make it possible to realise very low emitting power plants with a very high electrical efficiency of more than 60 %. The objectives for 2020 are competitive power and heat generation systems for base load, uninterruptible power supply (UPS), combined heating, cooling and power (CHCP), premium power and network optimisation. By 2020, the system costs should approximate 1,000-1,500 /kw. To achieve this as well as build up and consolidate the industry in Germany, a commercialisation programme should be implemented from 2007 onwards if possible, in addition to R&D and demonstration projects Overview of the subjects and budgets in tabular form In order to bring fuel-cell applications for industry to market maturity compared to traditional technologies, continued research and development with a marginal temporary increase in R&D expenditure is necessary. The total requirement for the project budget is estimated at around 80 mio over the time period until This involves funds for tasks primarily in the area of applied research (which are financed partly from the current budget of the Federal German Ministry of Economics and Technology and partly from investments from industry), additional applied research, strategic orientation within the framework of the NIP and further measures. The need for demonstration fluctuates with the development of new technologies with time and declines with the opportunity of introducing demonstrated systems into the market at an early stage. Corresponding to the instrumental study of the Federal Ministry of Economics and Technology, an additional support of commercialisation via the German Combined Heat and Power Act and differentiated and declining investment cost subsidies are recommended and necessary for achieving the effects of scale in the area of industrial application. Demonstration and commercialisation are tied to achieving critical milestones in efficiency and stack lives. Projects which are installed via cooperative partnerships between energy suppliers or other users such as hospitals or IT operators are listed as examples. The planning figures for demonstration projects also incorporate costs earmarked for promoting education and training among operators as well as projects aimed at integrating fuel cells in existing and changing infrastructures for electricity and gas. The entire volume for demonstration and lighthouse projects and for smaller market preparatory activities is around 170 mio (see Table 5-1).

26 DEVELOPMENT PLAN FOR STATIONARY INDUSTRIAL APPLICATIONS 21 A commercialisation programme has to support the broad market introduction at as early a date as possible. Figures in thousand Phase I Phase II Total Research and Development R&D (BMWi) 4,480 6,440 5,980 4,950 2,500 1, ,350 Applied research 4,100 6,050 12,000 8,000 8,000 6,000 4,000 3,000 3,000 54,150 Total 8,580 12,490 17,980 12,950 10,500 7,000 4,000 3,000 3,000 79,500 Demonstration and Market preparation Strategy development (Industry) FC market preparation Demonstration / Lighthouse projects 11,000 31,100 26,100 26,030 24,070 13,070 10,970 12,070 13, ,690 Total 11,130 31,820 26,710 26,440 24,280 13,280 11,180 12,280 13, ,610 Totals Total 19,710 44,310 44,690 39,390 34,780 20,280 15,180 15,280 16, ,110 Table 5-1: Resource allocation in the area of Industrial Applications (figures in thousand euros) Parallel to formulating the development plan, several ideas for network projects and for implementing the innovation programme have been developed by manufacturers and in discussions with current and potential users. These are, in part, already planned into the budgets of the companies and verified with customers. In the project Clean Energy City, an energy self-sufficient and CO 2 -free city is to be developed which will have a model character for modern urban development projects. This will be achieved utilising, amongst others, MCFC systems and will initially continue the principles developed for the Hamburg HafenCity (a harbour urban development project) and take the so-called Speicherstadt (Warehouse District) of Potsdam as a prototype. By 2012, the combination of a fuel cell with a turbine is to be demonstrated by a national consortium in an already agreed-to 1-MW SOFC hybrid system. The projects can provide the impetus for the first demonstrators with funding from the innovation programme and then support their broad market introduction with the aid of an accompanying set of commercialisation instruments.

27 DEVELOPMENT PLAN FOR SPECIAL MARKETS FOR FUEL CELLS 22 6 Development Plan for Special Markets for Fuel Cells Before new technologies conquer broad new markets, they are frequently used in special applications where their advantages are particularly brought to the fore. Such introductory applications pave the way for these new technologies to enter the mass market, as operational reliability, technical advantages and other trendsetting characteristics can be demonstrated while, at the same time, these markets are usually less price-sensitive. In this way, for example, photovoltaics were initially used for parking ticket machines, pocket calculators or leisure applications before becoming widespread on our roofs and making Germany the world s leading market for photovoltaics. In just the same way, fuel cells will long have proven their operational reliability for emergency power supplies in telecommunications or as an on-board power supply units in caravans or on boats, before their largescale use in private cars or for domestic energy supplies. The special markets" outlined below represent precisely these types of entry-level applications, and are therefore not to be considered niche markets but rather early markets, offering a range of applications which are suitable for opening the door to a broad use of fuel cells of great significance in industrial terms. The common feature of fuel cell applications in the special markets is a more advanced state of closeness to market introduction compared to other applications, with prototypes being ready for use in many cases. These are in particular: Emergency power supplies / UPS; Storage handling vehicles (fork-lift trucks, airport tractors, etc.); Electric boats and light vehicles; On-board power supplies for the leisure market (boats, mobile homes); Miniature applications (so-called 4-C applications) based on micro fuel cells. The special markets are often adopted by small and medium-sized companies as well as start-up ventures which often display a high level of innovative creativity, but which mostly have very limited resources for the further development and market preparation of their products. It is therefore all the more important to consistently utilise synergy potentials with other applications. Although the relevance of such applications to the energy supply industry is generally low (exceptions to this are perhaps applications in telecommunications), they are often very significant in terms of industrial policy owing to their early market opportunities coupled with their access function to future markets. In particular, they provide ideal conditions for field trials of these technologies and a broad publicity effect. 6.1 Scope The power range of the applications in the special markets extends from a few watts to around 50 KW, most being in the range of a few kilowatts. As a fuel,

28 DEVELOPMENT PLAN FOR SPECIAL MARKETS FOR FUEL CELLS 23 methanol is used in DMFC for many applications, but also hydrogen and methanol or LPG in conjunction with a reformer in PEMFC. In the case of hydrogen systems, both the use of cartridges with the corresponding distribution infrastructure and logistics as well as the construction of hydrogen fuelling stations is envisaged. In most applications this also involves hybrid systems comprising of a fuel cell and an accumulator. 6.2 Development plan Given the large number of applications and designs, it is not possible to provide a uniform development plan for the special markets. Most applications are characterised by the fact that they are already operational as prototypes or in the first pilot series, or require only a few development measures in preparation for demonstration or field trials. With regard to the development of components and basic research and development issues, the special markets utilise the synergies with developments in the mobile and stationary application areas. The necessary development work is therefore concentrated on optimisations or on application-specific adaptations, which are important steps on the path from operability to market maturity. The planned activities essentially have market preparation, demonstration of practical feasibility and the transition to series production as their objectives. The applications and their associated projects can be divided into the following clusters with characteristic features of the development plans. Emergency power supply / Uninterruptible power supply (UPS): Fuel cells are distinguished here by a series of technical advantages in comparison to accumulators, such as longer service lives and long bridging times as well as energy savings through the omission of air conditioning. In addition to the optimisation of components and systems, extensive field tests are also planned. Fields of application are primarily telecommunications (DSL stations, mobile radio telephone stations, the restricted trunked radio system TETRA for use by government agencies and specifically emergency services only) and in computer centres and by German Railways (Deutsche Bahn) for points. The field trails with several hundred devices will result in improved next-generation appliances or devices optimised to the relevant application. Storage (warehouse) handling vehicles: The normally long charging times for batteries or the procurement of a second battery set are eliminated through the use of fuel cells. In the case of vehicles which have up to now been operated with internal combustion engines, fuel cell-driven vehicles also enable operation indoors. Integration developments and the provision of pilot vehicles are at the forefront of projects in this area. The spatially restricted use of the vehicles provides optimum conditions for the planned field tests. Typical projects are therefore the development and use of relatively small fork-lift truck fleets in specific businesses or the use of apron vehicles at airports. In all cases it is import to create a fuelling infrastructure or couple the use to an existing hydrogen infrastructure.

29 DEVELOPMENT PLAN FOR SPECIAL MARKETS FOR FUEL CELLS 24 Electric boats and light vehicles: Within this segment, emission-free drives in several power classes will be predominantly developed for the touristic and leisure sectors, which will then be accompanied by the demonstration of pilot fleets. The establishment of a hydrogen infrastructure is envisaged parallel to this. The technologies (boats, small vehicles) are demonstrated in the sense of lighthouse projects concentrated in a few regions, especially those important for tourism (Lake Constance, the Federal German State of Mecklenburg-Western Pomerania on the Baltic Sea) whereby a particular publicity effect will be attained, as well as in pioneering regions with existing projects (e.g. HYCHAIN-MINITRANS in the State of North Rhine-Westphalia) and infrastructures (Hamburg, North Rhine-Westphalia, Hesse). On-board power supplies (APU) in the leisure market (boats, campers/caravans, etc.): Liquid fuels such as methanol or propane/butane are predominantly used here. Besides adapting the systems to the relevant application, the clarification of important approval issues and the preparation of pilot applications are at the forefront of attention. In this way, the development of an adaptation to market requirements is to be achieved which will pave the way towards a broad market introduction in the next stage. The provision of leisure vehicles such as campers or caravans with onboard power supplies is particularly planned. Micro fuel cells: This category comprises the complete range of power supply devices and charging stations for the so-called 4-C applications (computers, cordless phones, cellular phones, camcorders) plus a multiplicity of further appliances requiring power sources of up to 100 W. The Federal Ministry of Education and Research has already placed one focus on micro fuel cells within their funding programme Pilot Innovation Micro Fuel Cells ( Leitinnovation Mikrobrennstoffzelle ; total budget 40 mio, start January 2007). This activity is coordinated by the project management organisation VDI/VDE/IT. Complementary and further activities are planned within the NIP. Further Special applications include power supplies for camera and surveillance systems, in mining, for wheel chairs and golf carts. Again, specific integration developments and subsequent demonstrations of pilot systems will be undertaken Research and development activities Adaptation development, increased service life and power density and the further optimisation of the systems, in particular with respect to simplification and integration, form the focal points of the R&D activities in all segments of the special markets. Miniaturisation also plays an important role in many applications. Costs reduction is being aimed at on a component level through synergies with the mobile and stationary application sectors. Significant effects of scale for the supplier industries are also expected because of the unit quantities projected for at an early stage. Moreover, there is a further need for development in the following areas:

30 DEVELOPMENT PLAN FOR SPECIAL MARKETS FOR FUEL CELLS 25 Optimisation and standardisation of interfaces (electrical, mechanical, thermal); Simplification of system architectures and the development of cost-effective and standardised system components; Optimisation of energy management in hybrid systems; Establishment of certifications and quality assurance; Automation of production processes, in particular with orientation towards mass production. However, the required expenditures for R&D can be kept within reasonable limits for many applications, especially because extensive synergies result with other areas Demonstration projects The demonstration of the operational reliability of the applications for the special markets is given high priority on all sides. Development work is therefore always followed or accompanied by field tests. These field tests are sometimes performed with larger unit quantities (several hundred), whereby they can demonstrate not only functionality but also commercial readiness. Shortcomings emerging in the application through such tests are incorporated in accompanying research and development work. The fields of application, in particular in the leisure and tourism sectors, provide ideal opportunities for a broad publicity. They also offer the chance to promote the image and acceptance of these new technologies on a lasting basis. In this way, the special markets also provide important preparatory work for the other sectors aimed at end-consumers in the future. It must not be forgotten that, beyond the innovation programme, public authorities such as the Federal Government can play an important role in the commercialisation of new technologies as customers themselves. For example, synergies between the funding programme and the public award of contracts are conceivable in the area of UPS applications or light vehicles. The ability of special markets to demonstrate market readiness at an early stage reveals the need, besides the funding contents outlined, to develop as soon as possible suitable funding instruments to ensure the transition from market demonstration to definitive commercialisation. When it comes to the special markets, it is crucial in many segments for such a funding instrument to take effect during the time-period of the innovation programme in order to maintain the dynamism already set in motion. Suitable options should therefore be identified as early as possible via a corresponding study Overview of the subjects and budgets in tabular form The planned budgets for the special markets are listed in the table below. They have been divided into the five clusters cited above and calculated on the basis of known project plans, taking synergy potentials into account. Nevertheless, corresponding consortia must be formed in the clusters themselves in order to arrive at appropriate project applications.

31 DEVELOPMENT PLAN FOR SPECIAL MARKETS FOR FUEL CELLS 26 Because of their closeness to the market, the funding requirements are concentrated during the first five years of the innovation programme in particular and show a pronounced decline in the remaining four years. In the latter, project funding is only suitable to a limited extent; instead, the initiated commercialisation programme should be effectual. Figures in thousand Phase I Phase II Total Research and Development Onboard power supplies / DMFC light 3,100 3,700 3, ,100 vehicles Emergency power supplies / UPS 3,900 6,600 4,200 3,100 2, ,200 Lift trucks / tractors / airports 1,500 2,400 2, ,300 Boats / Light vehicles 6,000 7,300 4,800 3,000 2,200 1, ,500 H 2 Further special applications 1,200 1,200 1, ,200 Total 15,700 21,200 16,200 7,300 5,200 1, ,300 Demonstration and Market preparation Onboard power supplies / DMFC light 2,900 6,400 4,600 4, ,700 vehicles Emergency power supplies / UPS 4,300 12,500 15,800 18,000 6, ,600 Lift trucks / tractors / airports 2,000 3,500 6,900 6,000 3,500 2, ,900 Boats / Light vehicles 1,800 2,400 7,300 9,000 10,800 4,900 1, ,400 H 2 Micro FC and further special applications ,700 1,900 2, ,000 1,000 2,000 11,100 Total 11,000 25,000 36,300 39,700 22,800 8,100 3,600 2,500 2, ,700 Totals Total 26,700 46,200 52,500 47,000 28,000 9,800 4,300 3,200 3, ,000 Table 6-1: Resource allocation in the area of Special Markets (figures in thousand euros)

32 GENERAL CRITERIA FOR PROJECT FUNDING AND GUIDELINES FOR EVALUATING LIGHTHOUSE 27 PROJECTS 7 General Criteria for Project Funding and Guidelines for Evaluating Lighthouse Projects 7.1 General criteria for project funding As a rule, a two-stage application procedure consisting of the initial submission of project outlines followed by the submission of full project proposals is envisaged when applying for project funding under the National Hydrogen and Fuel Cell Technology Innovation Programme. The first stage involves compiling a project outline, which should comprise a maximum of 5 pages and include the following information: Brief description of the project concept (objectives, implementation); Description of the collaboration with other institutions from industry and/or research; Estimation of the costs for the project; Proposal for financing; Planned exploitation of the results after successful completion of the project; Indication concerning whether the proposed project constitutes a research and development project (R&D) or a demonstration project (D). Applications for funding (project outlines) are in competition with each another. They are to be submitted to the Project Management Organisation Jülich ( Projektträger Jülich, PtJ) of the Jülich Research Centre GmbH (FZJ) in the case of an R&D application (corresponding to the specifications of the National German Energy Research Programme) or to the National Organisation for Hydrogen and Fuel Cells ( Nationale Organisation Wasserstoff und Brennstoffzellen, NOW) in the case of a D application. Applications will in both cases be evaluated according to the following criteria: Quality of the project proposal and, if applicable, of the conceptual design of the collaboration; Abilities, knowledge and experience of the project partners; Contribution towards the introduction of hydrogen and fuel cell technology, for strengthening Germany as a centre of technology and innovation and hence for attaining the goals of the programme; Appropriateness of the planned (financial) expenditure of the project and its contribution to achieving the objectives of the programme; Applicants own financial contribution(s) to the proposed project. In the case of project outlines comprising of several research stages, an unambiguous allocation of project type and funding according to the FuEuI Community Guidelines ("Community Guidelines for State Aid for Research, Development and Innovation") will be ensured by dividing the project (either through the applicant(s) or the programme and project governance) into several sub-projects correspond-

33 GENERAL CRITERIA FOR PROJECT FUNDING AND GUIDELINES FOR EVALUATING LIGHTHOUSE 28 PROJECTS ing to the individual research categories. The subsequent evaluation will be undertaken in close coordination between NOW (see Chapter 8) and the Project Management Organisation Jülich. Following evaluation of the project outlines applicants will be informed of the outcomes. A positive evaluation will herald the second stage of the application procedure. Before preparing their full proposals, applicants should discuss their proposed projects with either the Project Management Organisation Jülich and/or the NOW Programme Management Association in person in order to detail the planned project. The full proposals should be composed thereafter, making use of the electronic application assistant easy. Advice for the formulation of the applications is available from both the Programme Management Association and the Project Management Organisation. To demonstrate their own interest, applicants must contribute their own resources (material, personal and financial resources) to a project. Following the submission of the full proposals, a second evaluation is made by the Project Management Organisation or the NOW Programme Management Association. If the decision for funding is positive, applicants will receive a grant whereby the relation of the grant to the project costs, the so-called funding quota, will be specified in accordance with the EU Community Guidelines for State Aid for Research, Development and Innovation. In the case of commercial companies, the funding quota is restricted to maximum of 50%. Awards are also possible for small and medium-sized enterprises in compliance with the specifications of the Community Guidelines for State Aid for Research, Development and Innovation mentioned above. It is aimed to basically co-finance the national projects from further public funds (e.g. those of the Federal German States or Länder, the EU, etc.) in observance of the maximum funding limits. In the case of such a co-financing, such as through the planned Joint Technology Initiative as part of the 7 th EU Research Framework Programme, mutually acceptable formats for documents (applications, reports, etc.) are envisaged in order to keep bureaucracy to a minimum. To this end, corresponding agreements will have to be reached on a programme level. The support of R&D activities with funds from the National German Energy Research Programme is based on the appropriate directives for project funding of the Federal Ministry of Economics and Technology (BMWi) and the Federal Ministry of Education and Research (BMBF). Essentially, these are the General Conditions of the Federal Ministry of Economics and Technology for the Allocation of Benefits to Commercial Companies on a Costs Basis (NKBF 98) or the General and Specific Conditions [of the BMBF] for the Allocation of Benefits on an Expenditure Basis (ANBest-P or ANBest-GK and BNBest-BMBF 98). When formulating the full proposal for funding, a utilisation plan must be drawn up for the period following completion of the project. The General and Specific Conditions for the Allocation of Benefits on an Expenditure Basis (ANBest-P or ANBest-GK) apply for funding other R&D projects and the demonstration and lighthouse projects.

34 GENERAL CRITERIA FOR PROJECT FUNDING AND GUIDELINES FOR EVALUATING LIGHTHOUSE 29 PROJECTS In addition, the following guidelines apply for the funding of lighthouse projects. 7.2 Guidelines for the evaluation of lighthouse projects Aims and objectives Lighthouse projects represent a bridge between research and development and future markets. They form the nucleus for a broad subsequent marketing and should both initiate and pave the way for this. They also serve to make the products and services associated with hydrogen and fuel cells known to a broad spectrum of the public, as well as allow initial practical experience with these products and services to be gained and the trust of future users and suppliers, especially small and medium-sized companies, to be built. They also facilitate the establishment of infrastructures and sales distribution systems. Lighthouse projects therefore have a wide reach, in both a technological and / or a geographical sense. They play a decisive role in shaping and actively promote the innovative strength of the German economy. In lighthouse projects, financial resources from the public and private sectors are concentrated in such a way that the minimum levels of technological competence and financial strength required for efficient research and development and successful subsequent demonstration are achieved, thus allowing a good ratio of expense to effect to be attained for the German economy. In this way, synergistic potentials are utilised to the full and interdisciplinary collaboration is promoted. Contents The project content must be orientated towards the aims and objectives outlined above. A distinction is to be made between technological, socio-economic, ecological and infrastructural content. Where possible, lighthouse projects should appropriately integrate elements from all of these content groups. Technological content The technologies must have reached a level of maturity which allows for use under the conditions typical for the application. The technologies should be able to be operated by normal users without the permanent involvement of specialist experts. Their use should be governed by the same legislative approval frameworks as apply for conventional technologies. The technologies used should not be one-of-a-kind; a number of reproducibly manufactured products should be used in order to be able to make statistically sound statements concerning performance and reliability. Improvement and optimisation potentials should be identified through accompanying research and development and these should be utilised to shape the next product generation. The utilisation of these improvement

35 GENERAL CRITERIA FOR PROJECT FUNDING AND GUIDELINES FOR EVALUATING LIGHTHOUSE 30 PROJECTS potentials will be implemented outside of the lighthouse projects in most cases, however. Results are to be communicated in a manner that will safeguard company secrets. In the case of technologies developed with German public funding, the exploitation obligation must be observed, which, when implementing the technologies, requires for an appropriate share in the creation of goods and services to be located in Germany. Broader issues Creation and utilisation of the required infrastructure and logistics, e.g. for supplying end-users or operators with fuels under acceptable terms and conditions. The integration of existing infrastructures (energy networks, fuelling stations) should be tested and optimised. Training and further education measures for all groups involved in use or operation and in maintenance. Involvement in Regulations, Codes & Standards activities for market preparation and the rapid and large-scale commercialisation of the technologies. Publicity work for promoting acceptance of the new technologies. Development and implementation of commercialisation instruments parallel to the lighthouse projects. The ecological content is to take into account the aims and objectives of the German Government in relation to increasing energy efficiency, saving resources and protecting the climate. Projects are orientated to the Kyoto Protocol, the Climate Change Obligation and Climate Change Programme of the German Government, the Energy Efficiency Regulation, the Refurbishment of Buildings Programme and the objectives of the CHP Law as well as the Renewable Energies Law. Concepts for establishing closed-loop systems for the utilisation or recycling of components, materials, recyclable materials from the lighthouse projects. Organisation The aims and objectives of the subsequent marketing require the involvement of a commercial organisation which, after successful trials, will develop and market corresponding products. Lighthouse projects require an efficient project management. For particular application areas, a regional bundling of activities is necessary for the efficient use of resources, improved perception, etc. At the same time, where possible existing infrastructures (such as fuelling sta-

36 GENERAL CRITERIA FOR PROJECT FUNDING AND GUIDELINES FOR EVALUATING LIGHTHOUSE 31 PROJECTS tions, maintenance buildings etc.) should be utilised and developed further. Where possible, all players involved in the entire innovation process (supplier industries, manufacturers, users, approval bodies, authorities, etc.) are to be incorporated in lighthouse projects. Pilot, demonstration and lighthouse projects should be evolved by as many as possible of those participating in the value-creation chain (suppliers, manufacturers, users/operators, service providers) and with an appropriate share of German creation of goods and services.

37 PROGRAMME MANAGEMENT ASSOCIATION 32 8 Programme Management Association The various application-specific development plans demonstrate the complexity of the activities surrounding hydrogen and fuel cell technologies: different applications, markets and sectors of industry; the involvement of industry, science and politics; Basic research, application-oriented development, demonstrations and so on. An efficient coordination of different programme partners and tasks results in an accelerated technological development and commercialisation of hydrogen and fuel cell technologies. The National Organisation for Hydrogen and Fuel Cells Programme Management Association, abbreviated to NOW will be founded for coordinating the realisation of the National Innovation Programme and for the specific implementation of that part of the programme for which the Federal Ministry of Transport, Building and Urban Affairs (BMVBS) is responsible. Shareholders of NOW will be the German Government and the Board of Directors. The NOW Programme Management Association will assume the task of this comprehensive coordination and implementation of the National Hydrogen and Fuel Cell Technology Innovation Programme. It will be the central contact for the entire hydrogen and fuel-cell sector in Germany. Besides steering the programme implementation, it is also responsible for examining the technical contents and preselecting the demonstration projects. Its various tasks will be as follows: Coordinating and steering the implementation of a detailed development plan and its individual projects within the framework of the National Hydrogen and Fuel Cell Technology Innovation Programme for the next ten years; Supervision of the coordination process between demonstration programmes and technology development or cross-cutting tasks; Utilisation and evaluation of synergistic effects with associated technological fields, such as the material sciences, production technologies and basic research (see Appendix, Table A.6); Regularly reviewing and updating the development plan and the projects; Continuous coordination with all parties involved: responsible ministries and their project management organisations, industry, research institutes, Federal German States (Länder), local initiatives; Coordination with European and other international initiatives; Coordination of project proposals, reporting (national and within the framework of European State Aid Regulations); Communication with those involved and the general public; knowledge management for evaluating progress and results.

38 PROGRAMME MANAGEMENT ASSOCIATION 33 The preparatory and start-up phases of the organisation have been financed by the German Government. With the beginning of the programme implementation phase in 2007, the Programme Management Association will be co-financed by the Federal Government and those involved in the projects. A project management organisation ideally the organisation which is currently responsible for handling the R&D funds of the Federal Ministry of Economics and Technology (BMWi) and the Federal Ministry of Education and Research (BMBF), the Jülich Project Management Organisation (PtJ) should support the Programme Management Association and institutions providing the funding as service providers for the administrative (e.g. finance controlling) and detailed legal processing of the overall programme (use of tried-and-tested structures). The supervision of the National Innovation Programme in respect of content will be the responsibility of the Coordination Group of the Strategic Council, which will assume the function of an Advisory Board of NOW. The structure of this Advisory Board is shown in Figure 8-1. Politics: BMWi Industry: Applications: Mobility private cars BMVBS Mobility com. vehicles BMBF Domestic energy supplies BMU Industrial applications Science: Länder Representatives Research & Development Helmholtz Community Research & Development Institutes/Universities Secretariat: Training Secretariat Special applications Fuel-cell component manufacturers Energy & Infrastructure: Fuel indusry H 2 production H 2 provision Grid integration Figure 8-1: Structure of the NOW Advisory Board (with one representative per subject field)

39 PROGRAMME MANAGEMENT ASSOCIATION 34 The Programme Management Association will work closely with existing and additionally required structures of the project management organisation for the detailed technical and administrative processing of the programme. In addition, it will undertake further coordinating functions, especially with respect to European and other international initiatives. Further technical support, if necessary, can be provided from other competent sources (trade associations, initiatives, institutes) or regional networks. With the funding for R&D already available, the National Innovation Programme will have funds of up to 1.4 bio from public (national) and private funds over a time-period of ten years at its disposal (see Chapter 1). Funds from initiatives of the Federal German States or from the European Commission are not included. Similarly, funding from the Federal Ministry of Education and Research (BMBF) for basic research or for major research facilities (research centres) are also not included. The development plans previously outlined for the individual application areas address the same subjects as the Implementation Plan of the European Hydrogen and Fuel Cell Technology Platform. It is therefore important to link the various national activities with the corresponding European activities. Germany plays a pioneering role in Europe with its National Innovation Programme. The planned activities will form a crucial component of the Joint Technology Initiative which is currently under discussion with the European Commission. Within the framework of NOW s activities, it is also important to bring the current or planned initiatives implemented by the Federal German States, and other publicly funded research programmes in which aspects of hydrogen and fuel cell technology are treated, together with the National Innovation Programme. In all, through the co-financing of joint activities by the German Government, the Federal German States and the European Commission, significantly more money than the total funds mentioned above should become available for implementing the overall programme. This corresponds to the finance requirements of over 2 bio cited in the present document, which have been identified in the individual development plans for R&D and demonstration and lighthouse activities (a summary of the budgets is given in Table A-1 in the Appendix). At the same time, it is also the task of the Programme Management Association to shape the overall programme in line with the political specifications. In accordance with these, a large part of the budget (65%) is to be used for demonstration projects (lighthouse projects) to systematically show systems and components practicality and reliability for everyday use and prepare these for subsequent commercial application. A special emphasis will be given here to mobile applications. Genuine added-value in comparison to a project-specific approach will be achieved if a National innovation Programme is conceived which guarantees the coupling of R&D and demonstration activities on the one hand, and the use of synergies resulting from the activities of the development plans on the other (see Appendix). Joint material development or manufacturing processes for fuel cell components are just two examples of subjects in which synergies can be realised between ap-

40 PROGRAMME MANAGEMENT ASSOCIATION 35 plication areas. The NOW Programme Management Association should pay particular attention to these potentials. With the creation of the NOW Programme Management Association, an overall coordination with targeted development will be ensured by a single body, which will further consolidate Germany s position in the face of international competition.

41 APPENDIX 36 9 Appendix A.1 Summary of the four development plans Table A-1: Summary of the 4 development plans Application Million ( ) % % Transport Domestic energy Industry Special markets Total R&D Demonstration Cross-section 8 1 Transport total 1, R&D Demonstration Domestic energy total R&D Demonstration Industry total R&D Demonstration Special markets total R&D 1, Demonstration Grand total 2,

42 APPENDIX 37 A.2 Development plan for Transport Vehicles (Activities comprise R&D, component development, testing and validation of components and systems, production technologies, etc.) Fuel-cell drives PEMFC stacks The core component of the fuel-cell system, the actual PEMFC stack, is of special importance. Various scientific disciplines will be required to contribute to the development of components such as membranes, the cell itself and the associated circuitry. Required activities comprise the development and production of metallic corrosionresistant, bipolar plates, the optimisation of the sealing concept, costs-reduction for materials, the development of suitable production processes, Pt-free catalysts e.g. based on transition metals (Co/Fe), new membranes which can be operated at temperatures up to 120 C and work towards improved understanding of the fundamental processes in the fuel cell through modelling, simulation and experimentation. Air supplies New concepts such as the use of an electrically supported compressors or turbine units (instead of the previous screw compressors) or improved charge-air coolers can make a significant contribution to increasing the performance of the entire system. Anode circuits The efficiency of the fuel cell system can be improved further through optimisation of the hydrogen recirculation at the anode. The humidifiers also reveal potential for optimisation. By reducing friction, the efficiency of power transmission can be increased, so that the development of new materials and coatings for gearing and power transmission are at the centre of efforts here, whereby the transmission systems in private cars differ from those in buses. Electrical drives HV batteries The hybridisation of the fuel-cell system offers further potential for reducing the fuel consumption of vehicles. An optimised operation management as well as a powerful high-voltage (HV) battery are particularly necessary for this. Lithium ion batteries are being developed for the next generation of vehicles and these still have to be optimised with respect to electrodes, electrolytes and separators. The areas of battery management (including cell monitoring) and cooling as well as the charging and discharging processes are also being continuously refined.

43 APPENDIX 38 Vehicles Hydrogen combustion engines Hydrogen storage CH 2 (700 bar) At the forefront of this area is the development of a highly-efficient overall system based on a hydrogen combustion engine. This includes optimisation of the combustion processes (including direct H 2 injection), the development of H 2 -optimised lubricants, the development of H 2 -optimised basic engine concepts and peripheral components (charging systems, spark plugs, H 2 -optimised materials, etc.), H 2 -optimum hybridisation approaches as well as the use of APUs. Most automobile manufacturers have agreed on compressed gas storage at 70 MPa. The R&D requirements for high-pressure storage can be classified into three areas: basic material and model development (including high-strength carbon fibres, hydrogen-compatible elastomers for a wide temperature range, the modelling of ageing and failure mechanisms), tank system development (including the further development of components such as shut-off and safety valves) and the corresponding test facilities (including bursting, climate-control and cycling tests). Cryogenic storage / LH 2 In addition to costs-savings in cryogenic H 2 storage, there is especially a major need for improvements with respect to heat input-induced blow-off losses thus requiring further developments in thermal insulation and tank suspension. In order to reduce costs, production and assembly concepts capable of being industrialised must be developed, primarily for multilayer insulation (vacuum super-insulation), but also for components and connection systems. A key focus in development of the overall system involves the reduction and alternative utilisation of H 2 losses which result during storage of the H 2 and during fuelling, as well as in pressurisation and conditioning of the H 2 for the drive unit. Thermo-mechanical metal and composite materials capable of cycling are to be tested and further developed so as to provide cryogenic storage vessels with high fatigue strengths. Moreover, mew methods must be developed for verifying the fatigue strengths of these storage vessels. For an industrialisation of the vacuum super-insulation, influences which negatively affect insulation performance must be examined and quantified, suitable manufacturing processes for the insulation developed and especially measures for improving vacuum stability towards outgasing investigated. For the simulation and design of cryogenic H 2 storage vessels, additional models for substance and, above all, heat-transportation processes, tools for calculating the transient system response and models and tools for the thermal simulation and design of insulations are to be developed.

44 APPENDIX 39 Vehicles Auxiliary power units (APUs) Alternative hydrogen storage Hydrocarbons containing fuels (diesel, kerosene, etc.) Alternative hydrogen storage systems are currently still far removed from the storage densities and costs of pressurised storage-tank systems. Three promising research topics have been identified which may have the potential to outdo pressure storage in future. 1. The destabilisation of hydrides through the addition of further materials (preferably also hydrides) 2. Cryo-adsorption on high-surface area materials 3. The combination of 350-bar tanks with room temperature hydrides. Efficient methods for thermal management should be developed and the tank systems or hydride beds must be able to provide the required hydrogen flows of 2g/s during driving and 20 g/s during fuelling. There are many applications for systems for auxiliary power units in the transport sector. These include applications in road transport (trucks, buses, etc.) as well as in aviation and shipping. Reformer-containing systems offer the advantage of being able to utilise existing fuels. On the fuel-cell side, essentially SOFC systems and hightemperature PEMFC systems are being examined. Depending upon the application, power classes are in the range around 10 kw (e.g. lorries and trucks) or > 100 kw (aircraft, ships). The activities comprise the investigation of new methods and materials as well as the development and testing of components and systems (in particular reformer technology), through to field tests of demonstrators. Hydrogen systems There is no need for reformers in hydrogen-powered vehicles and PEMFC systems supplied directly with hydrogen are essentially considered here. An auxiliary power unit (of different power range) independent of the drive is the aim here too (see also H 2 combustion engines). The requirements are similar to those for PEMFC systems transmission systems. Hydrogen provision Hydrogen production Electrolysis Electrolysis represents an option for producing high-purity hydrogen from completely regenerative sources. This nevertheless requires electricity from regenerative sources (wind power, solar, geothermal). The storage capacity of hydrogen is a decisive advantage in comparison to electrical currents and hydrogen can therefore be used, for example, for optimising wind energy utilisation and supplies.

45 APPENDIX 40 Reforming Currently, the most cost-effective method for the production of hydrogen is the reforming of natural gas (or also biogas). The purification (especially desulphurisation) of the hydrogen produced in this way poses a challenge, however. Both yield increases and cost reductions are possible through the use of improved catalysts. H2 provision Hydrogen distribution Biomass to Hydrogen (BtH) XtH Hydrogen purity Compressors Transport The production of hydrogen from biomass represents a further CO 2 -neutral option for hydrogen manufacture in which the biomass is initially gasified by fermentation and the recovered biogas reformed to hydrogen. The production of hydrogen from other sources (X) represents a further research field, although the results will only be able to be utilised in the long-term. CO 2 sequestration will play an important role here. When it comes to hydrogen purity, an optimal compromise needs to be found between the costs purification on the one hand, and the durability of the fuel-cell systems on the other. If it is to be transported in relevant amounts, hydrogen (and hence energy) needs to be compressed The liquefaction of hydrogen represents the highest level of compression. Depending on requirements, hydrogen can be transported in tankers or via pipelines whereby at the same time it is necessary to assess in which state the hydrogen is to be transported in. Corresponding technologies (e.g. liquid-hydrogen transporters, pipelines) need to be evolved and holistic solutions which consider the production side as well as the consumer side are to be integrated. Fuelling station technology The fuelling station forms the interface between the infrastructure and the vehicle itself and joint, uniform specifications are indispensable here. This comprises issues such as operating parameters, including required threshold values (e.g. pressure levels) and data exchange between the vehicle and fuelling station or fuelling station-based components for a reliable, complete and rapid re-fuelling.

46 APPENDIX 41 Cross-sectional subjects Hydrogen safety Hydrogen technology is new to the populace and could rapidly be perceived as a potential hazard owing to the high pressures involved and the flammability of hydrogen. It is therefore essential to convincingly demonstrate the safety of this technology as a part of the measures leading to commercialisation. Safety tests will include both fundamental tests such as for the volume range of flammable mixtures, the flame stability and the ignition processes of hydrogen, as well as application and system-oriented tests such as component tests (e.g. hydrogen storage in vehicles, infrastructure systems such as dispensers or storage facilities), the optimal arrangement of sensors and ventilation devices or the release of pressure in H 2 storage vessels in appropriate test set-ups.

47 APPENDIX 42 Technical objectives for Transport Subject area Fuel-cell drives for vehicles HV batteries H 2 combustion engines Target variable Specific costs: 100 /kw (at > 100,000 units p.a.) Power density: >1 W/cm² Service life (private car): >5000 h Service life (Bus): 10,000 h Ambient temperature: -25 to +45 C Operating temperature FC: >100 C Power density: >1000 W/kg >1000 W/l >105 Wh/kg >95 Wh/l Private car: Efficiency (best value): significantly >40% Power density: >60 kw per l cubic capacity Bus: Efficiency (best value): 42% Power density: >18 kw/l Service life: 25,000 h H 2 storage (Reference system with a capacity of 6 kg) H 2 storage (in addition for cryogenic storage / LH 2 ) Auxiliary power units (typical values; very different in detail, depending on technology (SOFC, PEMFC, etc.)) Weight: <125 kg (0.048 kg(h 2 )/kg) Volume: <260 l (0.023 kg(h 2 )/l) Fuelling time: <5 minutes Production costs: <2000 High filling and dispensing efficiencies Maximum evaporation loss: 1 g/h per kg H 2 Minimum loss-free rest time: 5 days Specific costs: 40 /kw Power density: >1.6 W/cm² Service life: >10,000-40,000 h Efficiency: >50% Cold start duration: <35 s

48 APPENDIX 43 A.3 Development plan for Domestic Energy Supplies Domestic energy supplies, R&D details: Gas generation ( ) Subject Fund allocation Status Aim R&D requirements for Gas generation Scale: High, medium, low Temperature and fatigue-resistant reformer materials Alloy components / Material composition for high-temperature and coldcondensate corrosion high Nickel-based materials + highalloyed stainless steels Nickel-based materials + high-alloyed stainless steels More cost-effective (factor of 3) alloy elements compared to nickel-based materials Temperature C C C Fatigue resistance (thermal cycling capacity, HT and cold-condensate corro cycles p.a.; 5, cycles p.a.; 500 1,000 cycles p.a.; 10,000 20,000 operating hours ing hours 20,000 40,000 operatsion stability, resistant to atmospheric 10,000 operating hours changes / redox stability) Design for gas generation: highlyintegrated, low-cost (without electrical gas compressors) medium Total volume: l/kw el ; Total costs: 12,000-13,000 /kw el Total volume: l/kw el ; Total costs: /kw el Total volume: l/kw el ; Total costs: /kw el Desulphurisation medium There is no overview concerning contents and procedures for the odourisation in the various regions Mapping of the common odourisation methods used and the natural gas components

49 APPENDIX 44 Scale: High, medium, low Increase service lives Service life: 1 hot season; THT loads of 4 g/l, then exhaustion of the catalysts for other sulphur components Desulphurisation cartridges adapted to the required set-up conditions Loads of 25 g/l THT without premature exhaustion of the catalysts for other sulphur components Indicate charging state Display: Colour alteration for THT Display of consumption states for total sulphur breakthroughs, not only for THT Display of total sulphur breakthrough with electronic evaluation Improved catalysts high Reduce loads, increase thermal ranges and selectivities, improved redox stabilities Low performance and high costs for redox-stable catalysts Reformer: Increase selectivity with respect to NH 3 by a factor of 2 compared to 2005; CO shift: Increase activity by a factor of 1.3 compared to 2005; Methanisation: Increase activity by a factor of 2 compared to 2005 CO shift: Increase activity by a factor of 1.5 compared to 2005 Mechanical stability of the wash coats, tolerance to / formation of impurities (e.g. NH 3, S, etc.), thermal cycling capacity, start-up and run-down procedures Low sulphur tolerance of the methanisation and non-precious metal water-gas shift (WGS) catalysts; Service lives in the systems: ,000 hours Service lives in the system: 10,000 20,000 hours Service lives in the system: 20,000 40,000 hours

50 APPENDIX 45 Scale: High, medium, low Influences on gas-generation systems through sulphur-free odourisation medium Sulphur-free odourisation is applied in various supply regions; no current experience regarding its effect on fuel cell gas-generation systems, simulations commissioned by IBZ; thermodynamic data not available Ascertain substance data, refine simulations and verify via tests; ascertain ecological use for sulphur-free odorants Influences on the gas-generation systems through peak-shaving gases (LPG - air admixtures), the addition of biogas and water quality medium Currently, liquid petroleum gas - air admixtures from approx. 30 local gas suppliers are used; until now, there are no domestic energy supply systems which are operated in demonstration systems in these areas Mapping; theoretical considerations of the hazard potential for the various components and the different reformer systems; develop processes for dealing with this Other gas generation subjects low NH 3 formation in the reformer NH 3 formation in steam reformers detected, especially for L gas qualities, 1-2 ppm detectable Development of catalysts which suppress NH 3 formation; NH 3 formation lower by a factor of 10 compared to 2005 Gas-generation systems for biogas Projects aiming to feed biogas into the gas grid (G 260) are to be funded

51 APPENDIX 46 Scale: High, medium, low Gas generation systems for liquid petroleum gas Gas generation systems for heating oil medium There are already catalytic partial oxidation (CPO) and autothermal reforming (ATR) catalysts for LPG reforming; Coadsorption processes to propane, butane and higher hydrocarbons can occur in the desulphurisation unit Examine LPG qualities on the market; develop desulphurisation media which exhibit low coadsorptions

52 APPENDIX 47 Stacks ( ) Subject Fund allocation Status Aim Scale: High, medium, low R&D requirements for PEMFC stacks Ageing mechanisms of membrane electrode assemblies (MEAs) and stacks High-temp. PEMFC (>100 C, power, service life, costs, reformer operation, low loadchange speeds) high high State of knowledge: Negative effect of metal ions; if possible, balanced temperature and water balances; basic effects of harmful gases, etc; effects not quantifiable First materials on the market; service life in the system: some 100 operating hours; power density 0.5 times that of low-temp. PEMFC Which mechanisms have which quantitative effects (e.g. C corrosion at high temps. and swelling of membrane in MEA at low temps.) and develop countermeasures; development of accelerated ageing tests for individual ageing mechanisms Material development for MEAs, bipolar plates and seals for temps. up to 200 C, ,000 op. hours in the system; power densities of of low-temp. PEMFC Test and verify targeted countermeasures 20,000 operating hours in the system; power densities of times that of lowtemp. PEMFC

53 APPENDIX 48 Low-temp. PEMFC (power, service life, non-moistened cathodes, resistant to harmful gases) Scale: High, medium, low high Non-moistened cathode: Only for automotives in development, no materials for stationary; Power: W/cm²; Service life in the system: h; Costs: ,000 /kw net ; <20ppm CO with air bleeding Non-moistened cathode: Develop and test materials for stationary; Power: W/cm²; Service life in the system: h; Costs: /kw net ; <100ppm CO with air bleeding Non-moistened cathode: Materials for stationary available in the market; Power: W/cm²; Service life in the system: >25,000 h; Costs: /kw net ; <100ppm CO with air bleeding Diagnostic tools (simplified cell voltage monitoring, water management, production control) medium Individual cell voltage monitoring, segmented cells, neutron absorption, test rig after stack production Monitor cell areas Methods for testing individual cells in production Stack and MEAs: Improved thermal cycling capacity New materials for costeffective and efficient bipolar plates low cycles p.a.; seals; membrane swelling; condensation of water and dimensional stability of the bipolar plates for high-temp. PEMFC Internal resistance of the graphite plates, die-cast or pressed or stamped; seals are applied or integrated cycles p.a.; improved start-up and rundown procedures for high-temp. PEMFC; improvement in the electrolyte yield cycles p.a.; water-insoluble electrolyte or MEA optimised for start/stop processes in hightemp. PEMFC Internal resistance close to that of Cu; suitable for mass production; develop costeffective materials, resistant to de-ionised water and acid Internal resistance close to Cu; mass production tested; cost-effective materials; resistance to deionised water and acid; tested in demonstration systems

54 APPENDIX 49 Scale: High, medium, low MEAs: Reduction of the catalyst loads (nano-structures, etc.), improvement of efficiencies and power densities Understanding of the degradation mechanisms in materials and interfaces under stationary operating conditions low high Catalyst loads of approx mg precious metal / cm²; costs reduction for the catalyst not currently relevant, the subject should only be approached in the short term if the service lives and robustness of the MEAs are increased Contacting solutions with toohigh contacting resistances, nickel degradation at the anode Catalyst loads of approx mg precious metal / cm² Long-term stable and cost-effective contacting solutions with specific contact resistances of <0.020 Ωcm or specific area resistances of <0.020 Ωcm 2 with special emphasis on cathode contacts Service lives of hightemperature components under real system loads Catalyst loads of approx mg precious metal / cm²; cutting of costs by reducing the catalyst loads by a factor of 2 compared with 2005 Degradation mechanisms are understood and new material concepts for anode and cathode materials and inter-connectors are tested and available Verification of service life objectives of up to 40,000 h (stationary) under dynamic operating conditions high Low number of thermal and redox cycles attainable Definition of standardised and accelerated test methods. Sealing and joining materials for metal-ceramic joints with high stability at cyclic thermal loads (>1000 cycles) Optimisation of standardised and accelerated test methods.

55 APPENDIX 50 Scale: High, medium, low Verification of power scalability in the range 1-10 kw medium Scalability not given Definition of system designs and simulations and model calculations Functional integration of stack components for increasing power density and reliability (e.g. high-function end-plates) Scalable components available. Scalability verified in demonstrations Verification of the attainability of cost objectives of manufacturing costs of /kw for fuel-cell system (depending on application) high Cost objectives for commercial applications not attainable Cost-effective interconnector materials (<10 /kg) with a service-life potential of >10,000 h at 850 C operating temperature in oxidising and reducing atmospheres, which can be produced and joined close to their final forms; Cost-effective joining technologies with cycle times <4 h; quality assurance in the production process Recycling concept for reusable stack components (interconnector plates)

56 APPENDIX 51 Scale: High, medium, low R&D requirements for SOFC stacks Understanding of the degradation mechanisms in materials and interfaces under stationary operating condition high Contacting solutions with too high contacting resistances, nickel degradation at the anode Long-term stable and cost-effective contacting solutions with specific contact resistances of <0.020 Ωcm or specific area resistances of <0.020 Ωcm 2 with special emphasis on cathode contacts Service lives of high-temperature components under real system loads Degradation mechanisms are understood and new material concepts for anode and cathode materials and inter-connectors are tested and available Verification of service life objectives of up to 40,000 h (stationary) under dynamic operating conditions high Low number of thermal and redox cycles attainable Definition of standardised and accelerated test methods. Sealing and joining materials for metal-ceramic joints with high stability at cyclic thermal loads (>1000 cycles) Optimisation of standardised and accelerated test methods. Verification of power scalability in the range 1-10 kw medium Scalability not given Definition of system designs and simulations and model calculations Functional integration of stack components for increasing power density and reliability (e.g. highfunction endplates) Scalable components a- vailable. Scalability verified in demonstrations

57 APPENDIX 52 Scale: High, medium, low Verification of the attainability of cost objectives of manufacturing costs of /kw for fuel-cell system (depending on application) high Cost objectives for commercial application not attainable Cost-effective inter-connector materials (<10 /kg) with a service life potential of >10,000 h at 850 C operating temperature in oxidising and reducing atmospheres, which can be produced and joined close to their final forms.; Cost-effective joining technologies with cycle times < 4 h; Quality assurance in the production process Recycling concept for reusable stack components (inter-connector plates)

58 APPENDIX 53 Overall systems ( ) Subject R&D requirements for Overall systems Fund allocation Status Aim Scale: High, medium, low Balance of plant (BOP): Long-term stable, media-resistant, costeffective, standardised components (water treatment, pumps, valves, fans, heat-exchangers, sensors) high There are no components adapted to the relevant systems; in general, it is not possible to stimulate component manufacturers to make their own developments according to project specifications Components adapted to the specifications of the various fuel-cell projects need to be developed; funding projects for developing BOP components have to be launched in a coordinated fashion in order to finance the development The manufacturing costs for the developed BOP components must be lowered corresponding to the costs degression e.g. of the stacks. Reduction in system complexity (water balance, stable subsystems result in reduced process-control efforts) medium Water supplies with external water treatment for feeding, narrow operating windows for the components require increased process control effort Autonomous water supplies for laboratory prototypes; enabling of wider operating windows for the individual components Autonomous water supplies for demonstration devices; wider operating windows for the individual components tried and tested

59 APPENDIX 54 Scale: high, medium, low Automation medium Reasonably priced sensors The is a lack, in particular, of reasonably priced and reliable humidity sensors, CO sensors for measurements in damp H 2 atmospheres, H 2 and flammable gas sensors for measurements in damp atmospheres Reasonably priced inverters, series development Reasonably priced safety systems Energy and load management for detached houses Simplification of fuel-cell process control, fewer sensors, improved systems integration Unit quantities <100: Prices of 1000 /kw Unit quantities >100: Prices of <600 /kw Unit quantities >1000: Prices of <500 /kw Unit quantities >10,000: Prices of <300 /kw

60 APPENDIX 55 Methods ( ) Subject Fund allocation Status Aim Scale: High, medium, low R&D requirements for Methods Ageing tests for stacks and system components via accelerated testing high Endurance tests but no accelerated tests, accelerated tests are not developed Develop and verify accelerated tests (up to 5000 h) Verification of the accelerated tests for long operating times (for 15,000-20,000 h) Degradation mechanisms (catalysts, structures in the system) medium Which mechanisms have which quantitative effects and develop countermeasures Test and verify targeted countermeasures Laboratory verification methods based on findings or system failures from the field tests medium Laboratory and field tests with limited knowledge about real-life operating conditions Evaluate field tests statistically, adapt laboratory test conditions to the field conditions encountered Define and verify standardised laboratory tests for stationary domestic energy supplies Qualification of trade, assembly, service medium Basic information, preparation of curricula Basic information; test curricula at pilot schools; specific training from manufacturers Training initiatives; implementation of curricula; specific training from manufacturers

61 APPENDIX 56 Scale: high, medium, low Simulation of fuel-cell stacks, fuel cell systems and the installations medium There are many simulation programmes for components, stacks, systems and building systems. The existing simulations do not adequately reflect the processes in the cell. Simulation tools are lacking for the simulation of fuel-cell heaters in heating systems Mapping of existing simulation tools in business and science; formulate tasks for fuel-cell simulation in the home and develop simulations Verify and further develop simulations with field-test data Reliable numerical simulation programmes for PEMFC and SOFC fuelcell stacks; simulations for the description of system performances and installation environments (buffer tanks, houses); simulations for the description of system performances for the optimisation of process-control technology Co-operation and formulation in national and international regulatory bodies

62 APPENDIX 57 A.4 Development plan for Industrial Applications Arbeitsgemeinschaft Brennstoffzellen Demonstration Projects and Applied R&D 50 M p.a. 40 Project costs for industrial fuel cells Total volume 250 mio.; of this 50% from industry, 50% public funding Aufwand p.a. (Mio ) Biofuels Sub-MW Network projects Sub-MW + MW Hybrids Several MW Demonstration / Lighthouse projects Applied Research Coal gasification <10 MW Ye ar 5

63 APPENDIX 58 Commercialisation of stationary fuel cells Arbeitsgemeinschaft Brennstoffzellen MW/a Federal Ministry of Economics and Technology (BMWi) Instrument Study (VDMA AG BZ Scenario) Stationäre Industrieanwendung: Markteinführung (Analyse und Bewertung von Instrumenten zur Markteinführung stationärer Brennstoffzellen Sept. 2006) 250,0 MW p.a. 200,0 New installation of fuel cells in industrial applications Neuinstallation p.a (MW 150,0 100,0 50,0 Coal gasification Hybrids MW class Renewable fuels 0, Jahr Year 8

64 APPENDIX 59 A.5 Development plan for Special Markets Emergency power/ UPS Telecommunications Fields of application include mobile radio communication stations and broadband operating systems, also the restricted trunk radio system TETRA for use by government agencies and emergency services only. The power range is mostly up to 5 kw. Fuel cells are an option here owing to their longer bridging times. Field tests with several hundred systems are planned. Development areas include systems integration, operating temperatures and noise development. Objectives for optimisation (costs, service life, efficiency) will also be pursued. Storage (warehouse) handling vehicles Transport (Deutsche Bahn railway points) Computing centres Fork-lift trucks Airport apron vehicles Analogous preferences and development areas as described above apply for use as UPS for points in rail transport. A field test with 100 installations is initially planned. Again, analogous preferences and development areas, in part with even stricter requirements on the systems and higher power ranges (20-50 kw); 15 systems are envisaged for field-testing Fuel cells can replace lead batteries and hence solve the problem of long charging times or of having to have second battery sets available. Because of its limited area of use, the application provides ideal conditions for infrastructure and monitoring. Besides the optimisation of costs, service lives and efficiency, development areas include improved integration and extended operating conditions and ranges. Systems with various specific requirements will be developed and around 70 vehicles will undergo field testing. Preferences and development areas apply analogously to those for fork-lift trucks. An initial field test with two vehicles is initially planned, followed by a subsequent extension to include several dozen such vehicles.

65 APPENDIX 60 Onboard power supplies Electric boats and light vehicles Boats Light vehicles Two concepts will essentially be pursued here: Methanol / Direct Methanol Fuel Cells (DMFC), power range up to 100 W LPG with reformer, power range up to 250 W Use is preferably in the leisure sector (in particular caravans, boats); development themes will especially concentrate on adaptations to ascertained market requirements. The provision of pilot series and their use at end users is planned. Drives based on hydrogen, such as DMFC or LPG-based systems (see above) are planned. Three power classes (2-8 kw, kw, 50+ kw) will be developed and integrated in successive two-year phases, after which they will be subsequently demonstrated and optimised in parallel. Their use will be initially concentrated in the three regions of Lake Constance, Mecklenburg-Western Pomerania and Hamburg; in later phases, an expansion to other regions will be considered. The creation of a hydrogen infrastructure is envisaged parallel to this (fuelling stations and replaceable cartridge systems). For hydrogen-based vehicles, development will be according to power classes similar to the situation with boats. In the case of DMFC vehicles, drives will also be developed in various, less powerful classes (750 kw, 1.5 kw, ~5 kw) or already developed drives will be optimised and further developed for serial production or produced in pilot series. Development areas in this segment will be application-specific. A large number of concepts are planned as vehicles in this sector, e.g. e-bikes, e-trailers, rickshaws, twikes, cargo bikes, small private cars, tourism vehicles and vehicles for airport aprons. The provision of several hundred twikes based on hydrogen, several hundred DMFC vehicles and around 200 vehicles of other categories is planned. Other special applications This sector includes a series of special applications such as power supplies for underground devices with DMFC (mining), DMFC as a battery extender in the power range W, the use of various types of fuel cells in special applications such as wheelchairs, golf carts, Braille readers and the development and use of small cells (3-50 W) in camera systems (e.g. for surveillance). The provision of only a few prototypes is planned in most projects; in the case of small cells for camera systems, several hundred systems are planned. In this context, reference is made to the Federal Ministry of Education and Research (BMBF) Programme for the Development of Micro Fuel Cells.

66 APPENDIX 61 A.6 Synergies, cross-sectional tasks Potentials for Synergies APU Transport Vehicle drive Domestic energy supplies Industrial applications Natural gas desulphurisation X X Special markets Sensors X X X X X Pumps / Compressors / Valves X X X Low-temp. PEMFC MEA & stacks X X X X High-temp. PEMFC MEA & stack X X X X SOFC stacks X X X X H 2 storage X X X Natural gas reformer X X Liquid reformer X (X) X Methods X X X X X Recycling X X X X X A detailed consideration of all application fields is necessary for enhancing the synergies. Specifications are to be jointly defined. Differing time-plans are to be taken into consideration.