.7 . .1199Table of Contents 1.0 Acronyms .......................................................................................................................................... 2 2.0 List of Figures .................................................................................................................................... 4 3.0 Executive Summary .......................................................................................................................... 5 4.0 Benefits ............................................................................................................................................. 7 5.0 Drivers of Global Interest ............................................................................................................... 18 6.0 Drivers of Interest in Canada ......................................................................................................... 31 7.0 Transportation Pathways ............................................................................................................... 38 7.1 Light-Duty Vehicles and Stations................................................................................................. 38 7.2 Transit Buses ................................................................................................................................ 43 7.3 Medium- and Heavy-Duty Trucks................................................................................................ 45 7.4 Materials Handling Vehicles ........................................................................................................ 47 7.5 Rail ................................................................................................................................................ 49 7.6 Marine .......................................................................................................................................... 50 8.0 Community Pathways .................................................................................................................... 52 8.1 Heat ............................................................................................................................................... 52 8.2 Micro-CHP ..................................................................................................................................... 55 8.3 Remote Communities ................................................................................................................... 58 9.0 Industrial Pathways ........................................................................................................................ 60 10.0 Power Pathways ............................................................................................................................. 63 10.1 Stationary Power .......................................................................................................................... 63 10.2 Power-to-Gas ................................................................................................................................ 66 11.0 Hydrogen Supply Chain .................................................................................................................. 69 12.0 Deployment Readiness .................................................................................................................. 73 13.0 Pathways Synergies ........................................................................................................................ 80 14.0 Recommended Actions .................................................................................................................. 81 15.0 Appendix 1 – Readiness Issues and Recommended Actions ........................................................ 83 16.0 Bibliography.................................................................................................................................... 84 17.0 Endnotes ......................................................................................................................................... 87 2019 HYDROGEN PATHWAYS 1 1.0 Acronyms AHJ - Authority Having Jurisdiction BNQ – Bureau de normalisation du Québec CO2 – carbon dioxide CaFCP – California Fuel Cell Partnership CCS – carbon capture and storage CEM – Clean Energy Ministerial CEVforBC – Clean Energy Vehicles for British Columbia Program CHFCA – Canadian Hydrogen and Fuel Cell Association CHIC – Canadian Hydrogen Installation Code/ Code canadien d'installation de l'hydrogène COSIA – Canada’s Oil Sands Innovation Alliance CS&R – codes, standards and regulations CSA – Canadian Standards Association Group CUTRIC – Canadian Urban Transit Research & Innovation Consortium DENA – German Energy Agency DOE – US Department of Energy EU – European Union EVAFIDI – Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative EV – electric vehicle, either battery electric or plug-in hybrid electric FCEV – hydrogen fuel cell electric vehicle FCH JU – Fuel Cells and Hydrogen Joint Undertaking FCTO – Fuel Cell Technologies Office GHG – greenhouse gas HTAC – Hydrogen and Fuel Cell Technical Advisory Committee ICE – internal combustion engine IEA – International Energy Agency IFCI – Institute for Fuel Cell Innovation 2019 HYDROGEN PATHWAYS 2 IMO – International Maritime Organization IPHE – International Partnership for Hydrogen and Fuel Cells in the Economy ISO – International Organization for Standardization Kg – kilogram Km – kilometer kW – kilowatt LDV – light-duty vehicle MHV – material handling vehicle micro-CHP – micro-combined heat and power MI – Mission Innovation MPa – megapascal MW – megawatt NRC – National Research Council NRCan – Natural Resources Canada NRE – New and Renewable Energies NSERC – National Sciences and Engineering Research Council OEB – Ontario Energy Board OECD – Organization for Economic Cooperation and Development OEM – original equipment manufacturer P2G – power-to-gas includes all power-to-x applications PEM – proton exchange membrane R&D – research and development RCC – Regulatory Cooperation Council RD&D – research, development, and demonstration RNG – renewable natural gas SCC – Standards Council of Canada SDO – Standards Development Organization SMR – steam methane reforming of natural gas to produce hydrogen TEQ – Transition énergétique Québec ZEV – zero emission vehicle including battery electric, plug-in hybrid electric, and FCEVs 2019 HYDROGEN PATHWAYS 3 2.0 List of Figures Figure 1 - Economy-Wide Uses for Hydrogen .......................................................................... 7 Figure 2 - Decentralized Hydrogen Production with Power-to-Gas Direct Uses ...................... 8 Figure 3 - Canadian Hydrogen and Fuel Cell Sector - Areas of Expertise.................................. 9 Figure 4 - Hydrogen Fueling Stations in Canada as of March 2019 ....................................... 14 Figure 5 - Hydrogen Enabling Renewables and Decarbonizing Energy Use ........................... 18 Figure 6 - Pan-Canadian Framework - Actions Relevant to Hydrogen and Fuel Cells ............ 32 Figure 7 – Comparison of Transportation Pathways Adoption Timelines ............................. 38 Figure 8 – European Comparison of Well-to-Wheel Emissions in grams CO2/km .................. 39 Figure 9 - LDV and Station Goals for Select IPHE Partner Countries ...................................... 41 Figure 10 – Maximum Hydrogen Injection Limits in Natural Gas Grid (by vol/molar %) ...... 53 Figure 11 - Micro-CHP for Residential Heat and Power ......................................................... 56 Figure 12 - Current Use of Hydrogen in the European Union ................................................ 61 Figure 13 - Power-to-Gas Economy-Wide Usage Pathways .................................................. 66 Figure 14 - Markham Energy Storage - Hydrogen Production, Potential End Use Pathways 68 Figure 15 - Process Options for Producing Hydrogen ............................................................ 70 Figure 16 - Physical and Materials-Based Hydrogen Storage Options .................................. 73 2019 HYDROGEN PATHWAYS 4 3.0 Executive Summary There is increasing interest in the use of hydrogen and fuel cells to decarbonize energy use across economies around the world. With 185 countries including Canada being signatories to the Paris Agreement, there is now a global focus on reducing greenhouse gas (GHG) emissions, while working to achieve clean growth and long-term economic benefits. Hydrogen and fuel cells can reduce the environmental impact of economy-wide energy use, while supporting job creation and economic prosperity using innovative, clean technologies. Hydrogen is a versatile fuel that can be produced from many sources and act as an energy carrier. Hydrogen fuel cells do not produce emissions, only electrical power, water, and heat. When used with hydrogen from renewable sources, hydrogen fuel cells offer a zero emission option that can be scaled for many applications including motive power for vehicles, space and water heating in communities, space and process heat for industry, and power for remote, backup, and critical applications. Hydrogen power-to-gas (P2G) applications enable greater use of renewable power from intermittent sources such as wind and solar. Leading countries around the world are proactively investing in research, development, and demonstration (RD&D) as well as hydrogen and fuel cell deployments, so as to gain environmental benefits, diversify energy use, enhance energy security, and position their domestic manufacturers for maximum economic advantage. While it is early stage in terms of global deployments, there has undoubtedly been a marked increase in activity and interest. Canada is well-positioned to benefit from growing international demand for hydrogen and fuel cells. Based on collaboration and investments made by both the public and private sectors in past decades, Canada has a hydrogen and fuel cell sector that thrives in export markets and that includes global leaders, Ballard Power Systems and Hydrogenics. These companies are actively involved in many strategic technology development projects including the world’s first hydrogen fuel cell commuter trains now operating in Germany and in early heavy truck and marine projects in California. Their fuel cell and electrolyser technologies are in use in thousands of fuel cell vehicles (FCEVs) including transit buses and in hundreds of hydrogen fueling stations around the world. Yet, for Canada to fully benefit from these innovative technologies, they need to be put to use at home. There are twelve potential end use pathways where hydrogen and fuel cell technologies could be deployed. These pathways can be grouped by category based on transportation, communities, industrial use or power generation. This report provides information on benefits as well as drivers of interest, both globally and in Canada, for hydrogen and fuel cells. The twelve pathways are considered based on global and Canadian activity. Key observations and basic readiness issues are identified along with ten recommended actions to support greater hydrogen and fuel cell use. 2019 HYDROGEN PATHWAYS 5 EXECUTIVE SUMMARY Hydrogen and fuel cell technologies need to be part of the suite of clean growth solutions that provide environmental and economic benefits to Canadians. The following ten actions are recommended. Oversight for all actions would fall within the scope of the proposed advisory committee’s mandate: 1. Form an advisory council involving a range of stakeholders to guide future actions and to ensure overall coordination with both established and emerging hydrogen interests represented. 2. Establish sector tables that inform and provide feedback to the advisory council. Sectors are to reflect the primary areas of economy-wide opportunity for hydrogen (transportation, community, and industrial end uses) as well as the hydrogen supply chain. It will be important to integrate regional perspectives from across Canada. 3. Use this pathways report as the basis to identify additional in-depth analyses on specific areas that should be undertaken, so as to continue to advance hydrogen use across Canada’s economy. 4. Continue to resource participation in high-level international bodies to enhance information sharing, insights gained, and coordination based on the involvement of Canadian government, industry, academic, and other stakeholders. 5. Identify and resource research priorities, determining how new priorities compare to current activities. Develop a high-level research plan to guide a broad cross-section of future activities. 6. Resource demonstrations and pilot projects in transportation, communities, the industrial sector, and hydrogen supply. Apply lessons learned from other jurisdictions in structuring and reporting, ensuring that criteria are in place to define how these actions will support future real-world deployments. 7. Continue to resource codes, standards, and regulatory activities to support deployment with consideration for North American coordination and, where possible, harmonization, as well as with reference to international codes, standards, and regulatory developments. 8. Encourage the coordinated buildout of hydrogen fueling infrastructure through broad-based collaboration informed by the experiences of Germany, California, the US, the EU, and Japan, with consideration for light-, medium- and heavy-duty vehicle fueling needs. 9. Encourage dialogue and engagement with Measurement Canada to address the need for specifications, approval, and verification methods in support of hydrogen metering and dispensing. 10. Identify and implement communications actions to increase awareness, educate, and connect interested stakeholders across Canada. 2019 HYDROGEN PATHWAYS 6 BENEFITS 4.0 Benefits HYDROGEN Hydrogen is well-known for its versatility as a fuel that can be produced from many sources and for its ability to act as an energy carrier. It is the most abundant element in the universe and, when used in a fuel cell, hydrogen produces only electrical energy, water, and heat. Hydrogen fuel cells can provide motive power for vehicles as well as power for a range of applications including space and water heating in communities, space and process heat in industrial applications, and power for remote, backup, and critical applications. Hydrogen is a commonly used input for industrial processes. Replacing hydrogen from fossil sources with hydrogen from renewables allows the direct substitution of a carbon-based input with an input that is emissions free. Hydrogen can also be combined with sequestered carbon to produced synthetic gas to replace fossil energy sources or used in place of SMR-produced hydrogen in the production of chemicals and in other processes. Figure 1 - Economy-Wide Uses for Hydrogen 1 Hydrogen in gas and liquid forms can be stored for future use. There are a range of storage options, but this aspect of hydrogen is now allowing it to play a unique role in enabling greater use of renewable power from intermittent sources such as wind and solar. When renewable power production exceeds the electricity grid’s ability to accept it, surplus power can be used to operate an electrolyser and produce hydrogen which can be stored, used directly in transportation or industrial applications or, using a fuel cell, be reconverted back to power on demand. These “power-to-gas (P2G)” applications are of increasing interest globally as countries seek to decarbonize power production and maximize the use of renewables. 2019 HYDROGEN PATHWAYS 7 BENEFITS Figure 2 - Decentralized Hydrogen Production with Power-to-Gas Direct Uses 2 Hydrogen can also be transported over great distances and be sold on the export market. While this is not a common activity today, it is of increasing interest globally, particularly for countries with very limited energy resources. Hydrogen can also enhance energy security as it can be produced from a range of sources and can be distributed via truck, rail or dedicated pipeline networks. Hydrogen fuel cell technologies operate on an electrochemical basis with no combustion. They are quiet. They do not produce emissions, only electrical power, water, and heat. There are many types of fuel cell technologies with different chemistries and these technologies are at different stages of development and are suitable for different applications. Not all fuel cells operate on hydrogen, although hydrogen fuel cells are of prime interest given that, when the hydrogen is from renewable sources, fuel cells offer a completely decarbonized pathway for energy use in transportation, communities, and the industrial sector. Hydrogen can also be directly combusted or used in burners or with turbines. These more traditional technologies can still offer emissions benefits, particularly with the use of renewable hydrogen, although global interest is focused on hydrogen fuel cells given their zero emissions benefits and their scalability. CANADA’S INNOVATIVE HYDROGEN SECTOR Canada is well-known for its leading hydrogen technology companies and its world-renowned expertise. Technologies developed by Canadian companies are now in use in the world’s first hydrogen fuel cell commuter trains operating in Germany, in North America’s first utility-scale power-to-gas energy storage facility, in thousands of FCEVs including transit buses, and in hundreds of fueling stations around the world. Canadian expert, Dr. Andrei Tchouvelev, chairs ISO/TC 197, the international technical committee responsible for global hydrogen standards. There are economic benefits to Canada from the domestic hydrogen and fuel cell sector. Total revenues of $207 million were reported for 2017.3 There has been a general upward trend in sector revenues over the past five years with a major increase of 42% in 2017 compared to 2016.4 Hydrogen and fuel cell sales accounted for close to 72% of revenues in 2017, with services including testing and engineering design making up the balance. 2019 HYDROGEN PATHWAYS 8 BENEFITS The sector employs approximately 2,175 people with 86% of jobs being based in Canada. Since 2015, employment has increased by 22%.5 The sector contributes approximately $121 million annually to Canada’s economy.6 Private corporations accounted for 77% of total employment and more than three-quarters of sector members are small- or medium-sized organizations with fewer than 25 employees. The sector is represented in most provinces with British Columbia having half of facilities, followed by Ontario, Québec, and Alberta. Areas of focus and expertise are wide-ranging as shown in the chart below.7 Activities encompasses hydrogen production, transport, and storage as well as RD&D, advanced technologies including fuel cells, electrolysers, components, fueling systems, and engineering, testing, systems integration, and related services. In 2017, approximately 60% 8 of sector participants reported being involved in hydrogen and fuel cell activities for more than a decade, suggesting that the sector has built a stable base. Figure 3 - Canadian Hydrogen and Fuel Cell Sector - Areas of Expertise Export markets are critical for the sector with 80% of revenues from sales to countries including China (40%), the US (9%), and Germany (8%). In a trend seen in recent years, sales to China have now surpassed sales to any other country or jurisdiction and they match sales to the rest of the world, in aggregate. The other change compared to previous years is a growing share of sales into the Canadian market. Sales in Canada accounted for 20% in 2017 compared to 2015 when sales were only 4% of total sector sales.9 Canada’s hydrogen and fuel cell sector has an extensive history of collaboration with research organizations, most notably with the NRC. According to the Canadian Hydrogen and Fuel Cell Association (CHFCA), the NRC is the premier applied research organization dedicated to supporting Canada’s fuel cell and hydrogen industry. The NRC works closely with universities, governments, and companies on projects focused on RD&D and testing. Over the past decades, this public/private approach has generated significant benefits for Canada with the establishment and growth of successful, innovative clean tech companies and with Canada achieving high rankings in hydrogen and fuel cell intellectual property and 2019 HYDROGEN PATHWAYS 9 BENEFITS fuel cell patents. In 2011, Canada was sixth in the world in fuel cell patents granted.10 A third party analysis conducted in 2010 found that Canada’s NRC was in the top ten at the world level among government organizations and non-governmental organizations involved in hydrogen and fuel cell research.11 Canada was also in the top ten countries for research papers between 1996 and 2007 with a strong portfolio of intellectual property. At that time, Canada was the top-ranking country for specialized fuel cell patents. The NRC has been at the centre of an effective research hub for Canada’s hydrogen and fuel cell sector involving external stakeholders, but also involving other government departments. In 2000, this cross-departmental cooperation was formalized as the “Fuel Cell Innovation Initiative” with the NRC, NRCan, and the National Sciences and Engineering Research Council (NSERC) each contributing $1 million. In 2002, the NRC’s Vancouver research centre became the Institute for Fuel Cell Innovation (IFCI). Government funding to support these research activities was significant and sustained. Between 1982 and 2008, $415 million in federal funding supported hydrogen and fuel cell research.12 This RD&D collaboration continues today, although with a different structure within the NRC. In 2012, the IFCI was integrated with the NRC’s broader Energy, Mining, and Environment portfolio along with three other research sites in Canada.13 Hydrogen and fuel cell-related research is carried out as part of the NRC’s Automotive and Surface Transportation program with a six-year effort focused on vehicle electrification including FCEVs. The NRC’s Energy Storage for Grid Modernization program includes P2G hydrogen applications. Both programs are based at the Vancouver research centre. The NRC also has identified industrial scale production of carbon dioxide-(CO2-) free hydrogen as a research priority within its Novel Materials for Clean and Sustainable Energy Challenge program. NRC researchers have recognized expertise in the areas of advanced materials and processing, modelling and numerical simulation, novel architecture design, unit and integrated system testing, and sensors and diagnostic development applied across strategic technology areas including polymer electrolyte membrane fuel cells, solid oxide fuel cells, and hydrogen as an alternative fuel. Recent collaborators include Mercedes-Benz, General Motors, 3M, Canadian Nuclear Laboratories, Jacobs Engineering, Metrolinx, DOE’s National Renewable Energy Laboratory and CSA Group. RD&D continues to be an important area of focus as the sector invests to maintain its lead in the development of clean and innovative technologies. Levels of investment vary considerably on a year-over-year basis, but the long-term trend shows sustained and significant investment levels. Total RD&D expenditures were $91 million in 2017 compared to $173 million in 2015. Private corporations funded 59% of RD&D expenditures and government funding contributed 26%, with the balance from academic and research institutes.14 In 2017, the sector was also involved with 65 demonstration projects and more than 315 research partnerships involving academia, non-profits, domestic and foreign governments, and industry focused on pre-commercial collaboration to address shared technical challenges. As well, 46 strategic alliances brought together sector members with vehicle manufacturers, energy providers, and other sector participants. 2019 HYDROGEN PATHWAYS 10 BENEFITS There are more than 100 companies in Canada’s hydrogen and fuel cell sector. The sector has shown great resiliency over the past several decades as hydrogen FCEVs were slower to come to market than expected and industry priorities had to shift to more immediately viable options including stationary applications. Canada’s leading hydrogen and fuel cell companies are Ballard Power Systems and Hydrogenics. Ballard is based in Burnaby, British Columbia. It had a record year in 2017 with sales revenue reaching US$121.3 million, a 42% increase over 2016. This followed three years of sales growth based on sales of US$56.5 million in 2015 and US$85.3 million in 2016.15 Greater emphasis on heavy fuel cell activities was reflected in revenues as, within fuel cell products and services, revenue from heavy duty motive sales increased 140% in 2017 compared to 2016, while fuel cell sales declined to the portable (-61%), backup power (-60%), and materials handling (-41%) markets.16 Ballard employs approximately 400 people. The company recently reported its 2018 results and annual revenue declined to US$96.6 million, in line with expectations. Citing a “slower than expected ramp up in China,” 17 management identified various factors contributing to delays including the modest pace of hydrogen fueling station roll-out, evolving government subsidy rules, and delays in FCEV certifications. As of third quarter 2018, Ballard maintained a healthy order backlog of US$122.7 million, although this amount is significantly lower than originally forecast. The company reduced its backlog estimate due to uncertainty associated with the ability of the Ballard-Synergy joint venture in China to meet contractual take or pay commitments. In 2018, Ballard signed a strategic collaboration agreement with Weichai Power. Weichai is a leading Chinese automotive equipment manufacturer that specializes in the production of powertrains, automobiles, intelligent logistics, and parts. Weichai’s 2017 sales were an estimated US$23 billion. The agreement gives Ballard US$163 million in exchange for Weichai having a 19.9% share of the company. In addition, two Weichai representatives will join the Board of Directors. And, over the next three years, the two companies will establish a joint venture focused on a US$90 million technology solutions program involving next generation technology transfer. Ballard also announced that Chinese company Zhongshan Broad Ocean Motor exercised a right to maintain a 9.9% interest in Ballard at a cost of US$20 million.18 Other recent Ballard highlights include: o Signing a 3.5-year extension of their professional engineering services contract with Audi to August 2022. This extension is valued at US$62-US$100 million. It supports the HyMotion program, encompassing fuel cell development and integration, with Audi aiming toward a planned small series production launch. Unveiling of company’s eighth generation fuel cell stack for heavy duty trucks, buses and trains. This stack will be a core technology for new power modules with a reduced total-cost-of-ownership and better performance with improved power density and the ability to start in cold temperatures as low as -25°C. 2019 HYDROGEN PATHWAYS 11 BENEFITS o Participating in a California Air Resources Board-funded project involving the integration of fuel cell power modules in four UPS hybrid electric delivery trucks. The project aims to develop, validate, and deploy to support commercialization. Hydrogenics is based in Mississauga, Ontario. It also had a record year in 2017 with sales up by 66% to $48 million, compared to 2016. The public company’s revenues come from renewable hydrogen electrolysers and hydrogen power systems. Increased demand for power systems for vehicles resulted in $11.6 million in new orders from China in 2017. Yet, similar to Ballard, there have been challenges with the timing of demand from Chinese customers. Hydrogenics reported sales of $33.9 million for 2018.19 Hydrogenics has a healthy order backlog, reporting a backlog of $132 million with nearly 85% of orders being for hydrogen power systems. Hydrogenics’ equipment in use has increased to more than 2,000 PEM fuel cells and 500 PEM or alkaline electrolysers in operation or in demonstration projects in more than 100 countries. The company employs an estimated 160 people and has manufacturing facilities in Mississauga, Belgium, and Germany. In December 2018, Hydrogenics announced that French industrial gas major, Air Liquide, had invested US$20.5 million in a private share placement that will give Air Liquide subsidiary, The Hydrogen Company, an 18.6% stake in Hydrogenics. The deal is expected to close in early 2019. In addition to the injection of significant capital resources from a major global hydrogen player, the deal is also strategically significant as both companies have also agreed to collaborate, on a “…non-exclusive basis, to develop and expand technology and market opportunities for projects that involve producing hydrogen by water electrolysis.” The two companies announced their first direct collaboration in February 2019 with Hydrogenics’ supplying the world’s largest PEM electrolyser for the Becancour, Québec, plant. Key announcements for Hydrogenics in the past two years include: (a) the launch of Alstom’s hydrogen commuter trains in Germany using Hydrogenics fuel cell power systems; and (b) the start-up of North America’s first utility scale power-to-gas plant with two 1.25 megawatt (MW) Hydrogenics electrolysers which operates under contract to the Ontario government’s electricity system operator. Hydrogenics has a 10-year contract worth €50 million to supply, service, and maintain fuel cell power systems for Alstom trains. When the Coradia iLint hydrogen fuel cell train was placed into public service in September 2018, this was a world’s first accomplishment that is now attracting global interest. Two trains operate on a regular schedule along a 100-kilometer inter-city route with mobile gaseous hydrogen fueling that has been put in place until a permanent fueling station can be built. The trains have a 1,000 km range on a full tank of fuel, a top speed of 140 km per hour, and they operate on non-electrified lines. Hydrogenics’ major North American power-to-gas project is the Markham Energy Storage Facility which takes surplus renewable power from Ontario’s electricity grid when called to do so by system operator, and uses it to produce hydrogen. The hydrogen is then injected into the natural gas distribution grid. Other recent Hydrogenics highlights include: 2019 HYDROGEN PATHWAYS 12 BENEFITS o Receiving a German business award for a large-scale electrolysis system capable of producing more than 400 kg of hydrogen per day to supply ten fuel cell buses. o Opening a new service facility in California focused on integrating heavy fuel cell power systems into a set of Class 8 heavy-duty trucks for port drayage work for Total Transportation Services. o Supplying a 2.5MW electrolyser-based energy storage system for the Haeolus consortium who will use excess capacity from a remote 45MW wind farm in Norway to produce renewable hydrogen. Ballard and Hydrogenics are active across the complete range of hydrogen fuel cell applications including light duty vehicles (LDVs), transit bus, material handling vehicles (MHVs), rail, and marine, as well as stationary and industrial applications. Hydrogenics is increasingly selling its PEM fuel cells for large-scale hydrogen production facilities around the world. Canadian technology is well-positioned to benefit from growing global demand for hydrogen and fuel cells to support clean growth and energy decarbonization goals. INCREASED MARKET USE IN CANADA Canada also benefits from the direct use of hydrogen and fuel cell technologies. In this regard, there has been a significant expansion in domestic market activities over the past two years with new projects related to FCEV promotion and deployment, public fueling stations, transit, rail feasibility, heavy-duty trucks, P2G with injection in the natural gas grid, P2G expansion with storage and reconversion at a remote site, and large-scale hydrogen production from electrolysis. Use of hydrogen and fuel cells for transportation can reduce CO2 and air pollution, diversify energy use in a sector that relies primarily on one energy source, increase demand for Canadian technologies and services, support the establishment of new markets for hydrogen produced from renewable sources, increase local capacity to maintain and operate advanced technology equipment, complement electrification in the transportation sector, and increase awareness among Canadians of the potential future role of hydrogen in a clean growth future. 2019 HYDROGEN PATHWAYS 13 BENEFITS LDV and station activity is increasing for hydrogen in Canada. Prior to 2017, most hydrogen end use market activity in Canada focused on materials handling vehicles (MHVs) at warehouses or the supply of hydrogen fuel for a small number of FCEVs at private corporate sites. Recent activity is more broad-based and is focused on publicly-accessible fueling stations. Seven new public stations have been announced since March 2017. The first of these public stations is now open in Vancouver at a Shell station. The remaining six stations are expected to be built and be operational between 2019-2020. Activity is focused in British Columbia, Ontario, and Québec, and is summarized in the table below. NAME LOCATION APPLICATION DESCRIPTION 1 Ballard Burnaby, BC LDV Private station 2 Canadian Tire Brampton, ON MHV (74) Private with onsite electrolysis 3 Canadian Tire Bolton, ON MHV Private with onsite electrolysis 4 Hydrogenics/Harnois Québec City, QC LDV (50) Public station – not yet open 5 Hydrogenics/Harnois Montréal, QC LDV Public station – not yet open 6 HTEC Burnaby, BC LDV Public station – not yet open 7 HTEC Vancouver, BC LDV Public station – not yet open 8 Hydrogenics Mississauga, ON LDV Private with onsite electrolysis 9 Hydrogenics Toronto, ON LDV Public station – not yet open 10 Hydrogenics Toronto, ON LDV Public station – not yet open 11 Shell/HTEC Vancouver, BC LDV Public station 12 Powertech Labs Surrey, BC LDV Semi-public with onsite electrolysis 13 Walmart Balzac, AB MHV (230) Private with onsite electrolysis 14 Walmart Cornwall, ON MHV (240) Private with onsite electrolysis Figure 4 - Hydrogen Fueling Stations in Canada as of March 2019 The Québec City and Montréal stations will supply fuel to 50 Mirai FCEV sedans that Toyota has committed to bring to the market for fleets. Once these stations are opened, there will be an in-province corridor for FCEV fueling. Hydrogen will be produced onsite using an electrolyser operating on hydroelectric power. Toyota cited Québec’s clean power generation as an important opportunity to leverage. Toyota is also providing infrastructure support and resources including a stand-alone hydrogen fueler to assist with start-up and investments in training first responders and local dealership technicians. These contributions will increase local capacity to service FCEVs and deal with any emergency situations. The project will also serve as a model for other potential Canadian deployments of FCEVs and hydrogen fueling. 2019 HYDROGEN PATHWAYS 14 BENEFITS FCEV availability may be an emerging challenge for the Canadian market. While Honda plans to participate in the Québec initiative and Hyundai has indicated that it plans to bring 25 of its new NEXO sport utility vehicle FCEVs to the Canadian market, there are no other clear vehicle supply pathways, at this stage. Among these three original equipment manufacturers (OEMs) who are the only ones currently producing commercial FCEVs, production is limited and priority is typically given to the California market with its 35+ network of fueling stations. For Canada to maximize its benefit from investments in early hydrogen fueling stations, it will be important to encourage OEMs to bring their vehicles here. Measures20 announced the recent federal budget will provide a good foundation to support increased FCEV availability and use as zero emission vehicles (ZEVs): o Funding to support Transport Canada work with OEMs on voluntary ZEV sales targets. o Consumer purchase incentives of $5,000 for ZEVs including FCEVs. o Funding of an additional $130 million over five years programs to support alternative fuel infrastructure investments including hydrogen fueling stations. o Accelerated fleet write-off of light, medium- and heavy-duty ZEV purchases. o An additional $800 million in recently announced funding for the Strategic Innovation Fund which can be accessed by OEMs to support ZEV manufacturing in Canada. Further enhancing these measures would be efforts to coordinate infrastructure buildout, so that OEMs have some certainty as to when and where fueling stations will be available. Transit interest in Canada in hydrogen fuel cell buses has been ongoing. Canada’s transit sector was an early leader in the operation of fuel cell hybrid transit buses. Twenty buses were deployed by BC Transit for a demonstration project showcasing Canadian clean technology at the 2010 Winter Olympics with the buses remaining in service for four years after the event. In addition to local community emissions benefits, there are also economic benefits for Canada with greater use of hydrogen fuel cell transit buses. Canadian technology is prominent in fuel cell transit bus applications with Winnipeg-based OEM New Flyer having assembled fuel cell buses for many North American demonstration projects. In addition, Ballard’s seventh generation transit fuel cell engine has been integrated by 13 bus OEMs and the company’s fuel cell engines power more than 80 transit buses including 41 buses in Europe, 24 in China, and 13 in the United States.21 Recognizing the importance of hydrogen fuel cell transit buses, Canada’s national transit association recently initiated work to support the demonstration and integration of hydrogen fuel cell buses in Canadian transits. Following outreach to industry members, the Canadian Urban Transit Research and Innovation Consortium (CUTRIC) launched a multi-year project to bring together a wide range of transit agencies, bus OEMs, fuel providers, governments, academia, experts, and technology providers. The project goes until 2023. A wide range of potential benefits and implementation issues will be assessed. 2019 HYDROGEN PATHWAYS 15 BENEFITS In 2018, CUTRIC announced that it would provide $445,000 in funding for the development of a low-cost, high performing, durable PEM fuel cell suitable for transit use. Project partners include Ballard, the University of Waterloo, and the University of Western Ontario. The project runs until March 2022.22 CUTRIC also recently announced it is organizing the first National Hydrogen Mobility Innovation Conference in Mississauga in June 2019 with a focus on road and rail applications for hydrogen mobility. Rail opportunities for hydrogen are at an early stage globally and, with the interest of Ontario regional transit agency, Metrolinx, related to the feasibility of operating hydrogen-powered regional trains, Canada joins the list of countries looking at how hydrogen use can reduce the emissions and noise impact of commuter and regional rail operations. Metrolinx is committed to electrifying its GO regional transit network by 2025. A feasibility study was commissioned to assess the technical and economic aspects of hydrogen fuel cell technology use to power rail vehicles as a viable alternative to rail vehicles powered by overhead catenary wire systems. Key findings included: 1. It should be technically feasible to build and operate the GO Transit network using hydrogen fuel cell-powered rail vehicles. 2. The overall lifetime costs of building and operating the “Hydrail System” are equivalent to that of a conventional overhead electrification system. 3. Implementation on the scale of the GO network has never been undertaken and presents a different set of risks compared to conventional electrification. 4. There are a number of potential benefits including: (a) lower environmental impact fewer trees needing to be removed along rail corridors; (b) the ability to commence electrified services earlier than 2025; (c) the opportunity to electrify the entire GO rail network and the resulting benefits related to GHG emissions, air pollution, and noise as diesel locomotives are phased out; and (d) creation of a catalyst for broader adoption of hydrogen across the provincial economy. Based on these favourable findings, Metrolinx has taken several follow steps including requesting concept designs for bi-level train cars from rail OEMs and issuing a request for proposals for the design of a hydrogen fuel cell-powered locomotive.23 Trucks are an area of opportunity for hydrogen fuel cells as battery electric vehicles (EVs) cannot typically meet the range requirements of regional trucking. There is a significant weight penalty associated with batteries and heavy-duty truck duty cycles do not always allow for charging time. While China has an estimated 500 medium-duty fuel cell trucks in use including local delivery trucks, North America’s early heavy truck demonstrations are only recently underway in California. 2019 HYDROGEN PATHWAYS 16 BENEFITS In March 2019, Emissions Reduction Alberta recently announced 50% funding for a major $15 million fuel cell hybrid Class 8 truck project called the, Alberta Zero Emissions Truck Electrification Collaboration (AZETEC). The project aims to demonstrate 700-kilometer range heavy trucks with the potential for zero emissions. Two Class 8 Freightliner trucks will be operated by fleets Bison and Trimac between Edmonton and Calgary. Ballard fuel cell technology and lithium ion batteries will be integrated by a third party. SMR-based hydrogen will be supplied by Praxair.24 Canada benefits from having this early demonstration project, particularly given that Canadian technology provider, Ballard, will be a project participant. Early learnings could help to further enhance the competitive position of Canadian fuel cell and station technology companies, while also generating learnings to support future deployments of heavy-duty ZEVs. The P2G projects in Markham and at the Raglan Mine site in northern Québec offer the potential for early learnings and the identification of barriers and opportunities to replicate these projects. While hydrogen gas is produced from surplus renewable power in both instances, hence the P2G description, one project involves natural gas grid injection for energy storage, while the other demonstrates storage and reconversion to power on demand. Both projects target areas that are gap areas, specifically the integration surplus renewable power and, in the case of the mine project, an integrated energy system that could help remote off grid communities reduce their reliance on diesel fuel. Finally, with hydrogen to be produced from renewable hydroelectric power at the Air Liquide facility in Québec, there will be benefits in terms of increased availability of a clean and renewable fuel which can contribute to the decarbonization of Canada’s economy across a range of end uses in transportation, communities, and the industrial sector. 2019 HYDROGEN PATHWAYS 17 DRIVERS - GLOBAL 5.0 Drivers of Global Interest There is increased interest in hydrogen and fuel cells globally as leading jurisdictions invest in and seek to deploy these technologies to help achieve climate change, air quality, energy diversification, energy security, and economic development goals. With the growing global consensus around the need to address climate change and countries’ commitments to the Paris Agreement, finding ways to decarbonize energy use and achieve clean growth is now of paramount concern. Hydrogen and fuel cell technologies are seen as one potential pathway to transition to a clean energy future and to achieve desired outcomes. To achieve maximum benefit from the range of hydrogen end use pathways, there will be a need for renewable hydrogen to decarbonize energy end uses across transportation, communities, and the industrial sector. Hydrogen technologies can also play an important role in enabling the energy system by using surplus power to produce hydrogen which can be stored, used directly or reconverted back to power when needed. Figure 5 - Hydrogen Enabling Renewable Energy and Decarbonizing Economy-Wide Energy Use 25 Global demand for fuel cells continues to grow in terms of units sold and total MW. In 2018, unit sales increased by roughly 5% compared to 2017, while total MW sold increased at a much faster pace of approximately 22% compared to 2017.26 Sales are dominated by three regions – Asia consisting of Japan, Korea, and China; Europe with particular emphasis on Germany; and North America with California accounting for the majority of sales to date. Many leading countries have a broad hydrogen vision and ambitious targets for the deployment of FCEVs and fueling networks, as well as having well-resourced programs for hydrogen and fuel cell research, development, and demonstration (RD&D). The following section summarizes key drivers of interest in hydrogen and fuel cells in leading countries and jurisdictions around the world. 2019 HYDROGEN PATHWAYS 18 DRIVERS - JAPAN JAPAN Japan is the global leader in the research, development, and use of hydrogen and fuel cells. Japan led the world in fuel cell patents granted in 2011.27 The country aims to overhaul its society based on an ambitious hydrogen economy vision. With two of the three OEMs that currently offer commercial FCEVs being Japanese companies (Toyota and Honda), the country’s early mover lead could translate into a future competitive advantage for its domestic automobile manufacturing industry. Japan also seeks to improve domestic energy security by increasing energy self sufficiency through the use of hydrogen. It is estimated that Japan spent $115 million on hydrogen and fuel cell research and development (R&D) in 2018.28 Deployment - Within the domestic transportation market, the primary focus has been on FCEVs with an estimated 2,800 light LDVs and a network of 122 stations in four major metropolitan areas.29 Japan leads the world in hydrogen fueling stations and the country’s LDV population is second only to California’s. Japan has also been active with fuel cell transit buses and, in partnership with Toyota, plans to showcase more than 100 fuel cell transit buses at the upcoming 2020 Summer Olympics in Tokyo. Japan is also the world leader in fuel cell use for micro-cogeneration (micro-CHP) for home heat and power. Japan has more than 264,000 micro-CHP units in residential communities. These units are “fed” by a hydrogen-blend fuel consisting of 75% hydrogen, 20% CO2, 3% nitrogen, and 2% methane. Local gas distribution company, Osaka Gas, developed a multistage proprietary process involving steam methane reforming (SMR) of the natural gas supply with catalyst technologies used to increase the proportion of hydrogen in the fuel stream supplying the micro-CHIP units.30 Japan has limited current deployments in medium- and large-scale power production using fuel cell technologies, but future activities are planned. Heat and power are to be supplied to the 6,000-room 2020 Olympic Village using hydrogen fuel cells.31 Japan is also partnering with Korea on a project to deploy mid-scale fuel cells for power for commercial buildings.32 There is activity related to renewable hydrogen production with one large-scale, 10MW hydrogen from electrolysis facility under trial operation in Soma, Fukushima,33 and a second 10MW facility under construction in Namie, Fukushima. The Namie facility is scheduled to come online in 2020 in time to supply hydrogen for FCEVs and transit buses for the Olympics.34 Japan plans to start importing liquid hydrogen to diversify its energy mix and enhance energy security. The construction of an $84 million liquefied hydrogen import hub in Kobe City was announced in 2016. This facility is scheduled for a 2020 start up with plans to import hydrogen made from Australian lignite coal.35 Policies and Programs – Japan has had a long-term policy and program commitment to hydrogen and fuel cells. Following the 2011 disaster in Fukushima, efforts have increased to diversify energy sources including expanding the use of hydrogen. Prime Minister Shinzo Abe has articulated an economy-wide vision of using hydrogen for vehicles, houses, and power production. At the 2018 World Economic Forum, he called for the G20 member countries to “combine forces in accelerating innovations”36 related to reducing the production cost of hydrogen. 2019 HYDROGEN PATHWAYS 19 DRIVERS - JAPAN Japan has a Strategic Roadmap for Hydrogen and Fuel Cells. Under the guidance of an expert council from industry, academia, and government, the roadmap was first published in 2014 and updated in 2016. The roadmap includes ambitious targets for LDVs and fueling stations. Additional oversight related to implementation is provided by the Japanese government’s Hydrogen and Fuel Cell Promotion Office. To encourage deployment, Japan offers subsidies on the purchase of LDVs and on transit buses. There is also capital and operating funding available to support the installation and operation of fueling stations. These programs are national with local government elements. National funding is available for micro-CHP installations through the Ene-Farm Program. Nearly 90% of the more than 260,000 micro-CHP units installed have benefitted from EneFarm support. Over the past decade, the government has made significant and sustained investments with the goal of bringing the technology cost to a competitive level. Funding support will end in March 2019 as the technology is now considered to be mature. RD&D – Japan has an active and focused research agenda. A current five-year program is the cross-ministerial Strategic Innovation Promotion Program.37 The program actively engages academia and business alongside government researchers with a focus on three interrelated topic streams – hydrogen-related research; ammonia-related research; and organic hydridesrelated research. The Japan Science and Technology Agency has two research programs, CREST and PRESTO, within which hydrogen initiatives fit as the focus is on technology to manufacture and use energy carriers from renewable energy. Funding is also available for a range of RD&D actions across various hydrogen and fuel cell applications. Other Actions – In 2018, a group of 11 Japanese companies formed a limited corporation focused on building hydrogen fueling infrastructure. The collaborative is called, “Japan H2 Mobility” (JHyM). Membership includes Toyota, Nissan, Honda, Tokyo Gas, Air Liquide Japan, and the Development Bank of Japan. Within ten years, JHyM aims to build 80 stations in strategic locations, connecting existing infrastructure in a network linking all of Japan’s prefectures. Private investments will leverage government funding. Since its inception in February 2018, seven more corporations have joined the JHyM initiative.38 The Association of Hydrogen Supply and Utilization (HySUT) is a 35-member industrial association focused on the developing and promoting hydrogen fueling infrastructure. Originally founded as a research association in 2009, HySUT transitioned in 2016 and now focuses on: (a) R&D related to hydrogen supply to stations, safety, and station reliability; (b) actions to stimulate demand for FCEVs; and (c) international cooperation including serving as Japan’s representative to the ISO/TC 197 Committee.39 2019 HYDROGEN PATHWAYS 20 DRIVERS - JAPAN Japan participates in various collaborative international initiatives to support greater hydrogen and fuel cell use including the PHE, MI, and the CEM. In October 2018, Japan hosted the first Hydrogen Ministerial meeting. Representatives from 21 countries, regions, and organizations attended, sharing the perspective that, “hydrogen can be a key contributor to the energy transitions underway to a clean energy future and an important component of a broad-based, secure, sustainable, and efficient energy portfolio.” 40 SOUTH KOREA South Korea has historically had a diverse set of hydrogen and fuel cell interests with a strong long-term commitment to RD&D, market development, and deployment. South Korea is a global leader in medium- and large-scale stationary applications. The country continues to rank fourth in fuel cell patents granted, after Japan, Germany, and the US. Government investments have helped Korean company, Doosan, build manufacturing capacity and install units, so that it is now a leading supplier of industrial-scale stationary fuel cells. Korean company Hyundai introduced a fuel cell version of its Tucson LDV in 2016 and is now bringing the world’s first fuel cell sport utility vehicle to the market with its NEXO model. Similar to Japan, Korea is heavily reliant on imported energy with 95% of energy being imported. Hydrogen offers the potential to enhance energy security through domestic market production and use. In 2019, South Korea plans to launch R&D projects worth US$440 million across three priority areas, one of which is “hydrogen industry growth”41 including the carbon free hydrogen production and hydrogen storage. Deployment – On a global basis, Korea is a leader in the deployment of stationary fuel cells for power production. The installed base of fuel cell power was approximately 300MW at the start of 201842 with most facilities being multi-MW scale and using technology provided by two Korean companies – Doosan and POSCO which, prior to July 2018, had an agreement with American company FuelCell Energy to allow it to manufacture and sell FuelCell’s products in Asia.43 South Korea has the world’s largest fuel cell power plant in Hwasung City – a 59MW plant that has been in operation since 2014. Most of the domestic hydrogen power facilities operate on natural gas, although a new 50MW facility at a chemical complex in South Chungcheong will operate on hydrogen produced from industrial by-product.44 Transportation use of hydrogen and fuel cells is modest, but growing in South Korea. Estimates vary, but South Korea’s report to the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) in March 2017 identified 100 LDVs, 36 transit buses, and 11 hydrogen fueling stations.45 OEM Hyundai has ambitious goals, including a plan to produce 1,000 18-tonne commercial trucks for the Swiss market from 2019-2024.46 Community use of hydrogen and fuel cells is starting to emerge. The city of Ulsan, home to South Korea’s heavy industry and car manufacturing business including the Hyundai vehicle manufacturing complex is working to become a “hydrogen city.” Ulsan already produces 60% of the country’s hydrogen supply and it aims to use hydrogen in integrated energy systems and in transportation.47 There is also renewed interest in residential use of fuel cells. Nearly a 2019 HYDROGEN PATHWAYS 21 DRIVERS - KOREA decade ago, South Korea had a program modelled on Japan’s Ene-Farm program, but it did not progress. Today, Doosan and other companies are offering smaller scale fuel cells that operate on natural gas and that are suitable for residential and commercial use. Policies and Programs – For many years, the South Korean government has had a major focus on new and renewable energy (NRE) in its energy policies. Fuel cells are within a broader envelope and are identified as one of ten emerging NREs. In addition, in 2018 the South Korean government identified the hydrogen economy as one of the country’s three new drivers of economic growth along with artificial intelligence and big data. As a result, roadmap targets were developed and announced in January 2019, and included South Korea having the world’s largest market share for both hydrogen cars and fuel cells in 2030. According to President Moon Jae-in, hydrogen offers, “a great opportunity for us to fundamentally change the national energy system and prepare a new growth engine at the same time.”48 Hydrogen FCEVs also offer the potential for improved air quality, a growing problem in South Korea whose air quality is now ranked the worst in the Organization for Economic Cooperation and Development (OECD). South Korea’s extensive use of fuel cells for power production is driven by its Renewable Portfolio Standard which recognizes fuel cell systems as “renewable,” regardless of the type of energy used for the fuel cell. Increasingly demanding renewable power targets apply to power producers with facilities over 500MW in size. The 2018 target was for 6% renewable power; by 2030, the renewable target will reach 20%.49 This policy helps to assure ongoing demand for fuel cell-based power production in South Korea. Earlier this year, the government announced that six of its ministries would collaborate to develop a Technological Roadmap for the Hydrogen Economy for release in late 2019. The roadmap will incorporate the previously announced targets and will address hydrogen production, storage, and transport as well as end use applications in the power generation, industrial, and transportation sectors. As an outcome of this work, South Korea intends to develop technology R&D strategies. Under the direction of the Ministry of Commerce, Industry and Energy, the Roadmap aims for a “revitalization of the hydrogen economy.”50 Based on NRE policies, there are incentive programs offered at the national and local level to support LDV purchases. For residential and institutional buildings, incentive programs are available to help cover the costs of fuel cell installation. The government provides a subsidy of 50% of installation cost for commercial NRE technologies and up to 80% of the installation cost of pre-commercial technologies.51 RD&D – With the hydrogen economy being cited as one of three emerging drivers of economic growth, South Korea plans to increase its spending on R&D related to the production and use of hydrogen vehicles, expanding the production of fuel cells, and building a system for the production and distribution of hydrogen. The government recently announced a US$9 million project to develop carbon free hydrogen and hydrogen storage.52 To support the scale of South Korea’s hydrogen economy plans, consideration is also being given to building a pipeline to transport hydrogen around the country. 2019 HYDROGEN PATHWAYS 22 DRIVERS - KOREA Other Actions – South Korea has also taken a consortium approach to encouraging the buildout of hydrogen fueling stations for LDVs. Established in 2017, H2Korea serves as a think tank for the Ministry of Energy and a “platform to promote the use of hydrogen as a new energy source.”53 H2Korea also coordinates the participation of 15 corporations in a special purpose company to accelerate infrastructure investments. South Korea participates in various collaborative international initiatives to support greater hydrogen and fuel cell use including the IPHE, MI, and the CEM. CHINA In contrast to Japan and South Korea who have had multi-decade commitments to hydrogen and fuel cell development, China’s focus on hydrogen and fuel cells has been more recent. While Taiwan ranked within the top 10 countries for fuel cell patents granted in 2011, mainland China has not typically ranked as a leading fuel cell technology developer. It is noteworthy that China is increasingly listed as a “named country” in fuel cell patents filed in the US and Europe, indicating market potential and manufacturers’ interests in protecting their intellectual property in the Chinese market.54 China’s recent emphasis on fuel cells has been endorsed at a high level with Wan Gang, the deputy chairman of the Chinese People’s Political Consultative Conference and former Minister of Science of Technology, advocating for hydrogen and fuel cell technology in the Chinese media.55 And, as an indication of how far and how fast the Chinese are moving, in its 2017 annual report to Congress, the US Hydrogen and Fuel Cell Technical Advisory Committee noted that, “China’s national focus on hydrogen and fuel cell technology acquisition has made them a national competitor in a very short period, and threatens to surpass the US position with additional commercial expansion in 2020.” 56 Deployment – Transportation is the main area of focus for Chinese hydrogen and fuel cell deployments. Unlike all other global markets where transportation interests to date have primarily been centred on hydrogen fuel cell LDVs and transit buses, China has a strong interest in commercial vehicles. More than 500 fuel cell trucks are in use including at least 100 medium-duty delivery trucks operating in Shanghai. China also has the world’s largest fleet of fuel cell transit buses with 200 buses in operation. Three Chinese OEMs offer fuel cell buses with Chinese-developed fuel cell power systems. Early fuel cell transit buses were showcased at the Summer Olympics in 2008 with three of these buses then being put into regular public transit service in Beijing for the following year.57 With respect to LDVs, there were an estimated 760 vehicles in December 2018,58 putting China in fourth place globally for LDV deployment. Fueling infrastructure is very limited, however, with only 11 stations reported, leaving open the question of how many vehicles are able to refuel. Licencing delays for vehicles have also slowed deployment. Five LDV passenger car models have been developed by OEMs in China. 2019 HYDROGEN PATHWAYS 23 DRIVERS - CHINA China also has the world’s first hydrogen fuel cell tram in operation in Tangshan in the north. Manufactured by the China Railway Rolling Corporation, the tram was put into service in October 2017 and can travel 40 kilometers at a maximum speed of 70 kilometers per hour.59 The fuel cell power module for the electric tram was supplied by Ballard. China does not have any other major areas of hydrogen and fuel cell activity at present, whether in the areas of stationary power production, residential and commercial use or industrial use of hydrogen and fuel cells. Most of the hydrogen generation in China is from coke-oven and industrial by-product gases with a limited amount being produced from renewable wind, solar, and hydroelectric sources.60 Policies and Programs – China’s drive toward hydrogen and fuel cells is underpinned by the government’s Made in China 2025 economic policy. This comprehensive 10-year plan, issued in May 2015, identifies priorities to upgrade and renew China’s manufacturing industries. Ten priority sectors are outlined in the Plan including New Energy Vehicles and Equipment61 and hydrogen FCEVs are included within this category. The current focus on transportation applications supports the development of an advanced manufacturing sector, but the Chinese vision for hydrogen and fuel cells goes far beyond mobility. Hydrogen and fuel cell use is seen as being strategic for future energy demand across the economy including usage in, “transportation, domestic, and industrial applications.”62 In October 2016, China released its Energy Saving and New Energy Vehicle Technology Roadmap which includes a chapter dedicated to hydrogen FCEVs. In addition to identifying market development targets, the roadmap also identifies research objectives and timeframes for improving current technologies. China has a number of supports to encourage greater use of hydrogen and fuel cell in the transportation sector. At the national level, purchase subsidies are offered on LDVs as well as fuel cell transit buses and trucks. Funding is also available to help offset the cost of fueling station installations. New Energy Vehicles including hydrogen fuel cell LDVs are recognizable as they require special licence plates. As of July 2018, both fuel cell LDVs and commercial trucks are exempt from China’s vehicle and vessel taxes.63 Local governments are also active in supporting transportation activities. For example, Shandong province which had a population of more than 91 million in 200664 released its own Roadmap for the 2018 to 2022 period. The roadmap identified ways to expand New Energy Vehicle industries, organize hydrogen implementation, and achieve ambitious deployment targets according to China’s 2018 IPHE update. RD&D – Over the past 15 years, China has leveraged its electric vehicle RD&D to help advance to hydrogen FCEVs research through three Five-Year Plans linking researchers in academia, research institutes, and industry. According to their 2016 Roadmap, Chinese OEMs have now successfully developed FCEV power system integration with, “overall technology close to (the) international leading level.” 65 2019 HYDROGEN PATHWAYS 24 DRIVERS - CHINA There is a strong future commitment to RD&D with research objectives identified for the 2020, 2025, and 2030 timeframes. For LDVs, key power system outcomes include improving fuel stack performance, durability, and cost, so as to meet commercial requirements and building volume manufacturing capability for stacks and other critical materials. RD&D targets are also identified for on-board fuel storage, commercial vehicles, and hydrogen fueling infrastructure. Activities encompass fundamental and applied research as well as demonstration aimed toward commercialization. China will continue to conduct commercial demonstrations in multiple cities. For instance, in 2018, seven cities participated in fuel cell transit bus trails over a six-month period. Other Actions – China is a member of the IPHE, MI, and the CEM. In the 2016 roadmap, the Chinese government reiterated its commitment to international collaboration to promote hydrogen FCEVs. EUROPEAN UNION The European Union (EU) has a long-term vision of achieving economy-wide climate neutrality by 2050 through a clean energy transition that encompasses all sectors of the economy. With the EU and its 28 member states being signatories to the Paris Agreement, there is keen interest in decarbonizing energy use. New EU climate and energy targets to 2030 focus on decreased GHG emissions as well as an increasing role for renewable energy and energy efficiency. Hydrogen and fuel cell technologies have been identified as key technologies that could contribute to the achievement of the EU’s climate, air quality, renewable power, economic, and sustainable growth goals. Deployment – Across the EU, transportation deployment has been largely focused on transit buses and on LDVs with growing interest in establishing national and pan-European fueling networks. The EU reported having 1,350 LDVs in use as of November 2018 with 158 hydrogen fueling stations.66 There were 70 fuel cell transit buses in operation, putting the EU second only to China in global fuel cell bus deployments. There are also an estimated 325 fuel cell MHVs operating in warehouses and factories. Among the EU membership, the level of hydrogen and fuel cell interest and activity varies greatly. Germany leads the EU in FCEVs deployed with more than one-third of the EU’s LDVs and fueling stations, with an estimated 500 FCEVs and 55 hydrogen fueling stations as of November 2018.67 France ranks second with 325 LDVs and 21 fueling stations.68 Notable among the French deployments is the “hype” taxi project with 100 FCEVs operating in Paris. The United Kingdom is third among EU members for transportation deployment with 100 FCEVs and 13 fueling stations.69 Other EU members are investing in hydrogen and fuel cells with plans for future deployments. 2019 HYDROGEN PATHWAYS 25 DRIVERS - EU Stationary power deployments in the EU are mostly small residential and medium-sized facilities at P2G demonstration sites. In both instances, the deployments are primarily taking place in Germany. Approximately 1,900 micro-CHP systems provide power and heat to German homes. In addition, there are approximately 30 P2G demonstration projects ranging from below 100 kilowatt (kW) to 6MW in size. According to the German Energy Agency (DENA), these facilities have mostly been built for research purposes with objectives including demonstrating the technical feasibility of technology standardization, lowering costs, and testing business models for integration with power grids. Germany is by far the global leader in P2G and its micro-CHP program is second only to Japan’s much larger program. With one of the EU’s most ambitious renewable energy strategies and an installed base of wind turbines producing 40% of its energy, Denmark has a large-scale wind power project producing carbon-free hydrogen for grid balancing, energy storage, and direct use in transportation and industrial applications. The US$17.4 million HyBalance project started operating in September 2018 with funding from the EU.70 Policies and Programs – The EU is updating its energy policy framework, so as to support decarbonization and a transition to clean energy. It is expected that the new Clean Energy for All Europeans framework will be adopted in 2019. Within the scope of the framework is an updated Renewable Energy Directive II which, “supports market-based integration of energy storage, including hydrogen technologies.” 71 The EU also seeks to promote clean and energy efficient road transport through a proposed Clean Mobility Directive. Within the scope of this proposal is a definition for “clean” LDVs based on a combined carbon dioxide (CO2) standard and air emissions threshold plus a definition of alternative fuel heavy vehicles.72 The proposed directive would promote clean mobility solutions in public procurement and advance a plan for a trans-European alternative fuel infrastructure network. An earlier EU directive requires Member states to establish national policy frameworks for minimum alternative fuel infrastructure including electric vehicle charging, compressed and liquefied natural gas fueling and, as an option, hydrogen fueling. Earlier this year, a group of 17 industry stakeholders released the Hydrogen Roadmap Europe. With funding from the EU, the roadmap advances the position that the EU will require hydrogen at large scale in order to achieve its decarbonization objectives. Acknowledging that hydrogen is not the only solution, the roadmap highlights how hydrogen and fuel cell technologies can decarbonize power, transport, buildings, and industry as well as supporting the large-scale integration of renewables. Central to many of the hydrogen and fuel cell-related achievements in the EU in the past decade has been the Fuel Cells and Hydrogen Joint Undertaking (FCH JU). Launched in 2008 under an EU Joint Technology Initiative, this strategic public-private partnership brings together government, research organizations, and the private sector to develop and deploy fuel cell and hydrogen technologies. 2019 HYDROGEN PATHWAYS 26 DRIVERS - EU The FCH JU spans the RD&D spectrum with an estimated 13-15% of spending on breakthrough research, 31-35% on technology development, and remaining funds spent on demonstration and supporting actions as of 2014.73 Between 2008-2018, over €1.0 billion in EU funding was matched by the private sector and spent on more than 200 hydrogen and fuel cell projects.74 The EU’s financial contribution was renewed in 2014 with €665 million or about €95 million per year for the second phase of the FCH JU, the FCH 2 JU. Within the scope of EU demonstration projects, per vehicle subsidies are provided for LDVs, transit buses, trucks, and MHVs. A fixed amount of funding is also provided for hydrogen fueling station installations and for small stationary applications. For medium- and large-scale stationary power projects, funding depends on project scale. Both the EU and Germany have targeted funding support to encourage the use of micro-CHPs for residential heat and power. The EU’s PACE program is a €90 million public-private project focused on making micro-cogeneration a mainstream technology for the residential market. Funding helps to offset the cost of systems for 2,800 households in 10 countries. In parallel, Germany has its KFW433 Program providing grant funding for micro-CHP systems for residential and some commercial sites such as hotels. RD&D – Within the scope of the EU’s hydrogen and fuel cell Joint Technology Initiative, the FCH JU leads a major RD&D program based on the implementation of a multi-year work program. Efforts are organized under one of two innovation pillars – technologies for transportation systems and technologies for energy systems. By 2020, the FCH JU aims to demonstrate that hydrogen and fuel cell technologies can act as a pillar of future European energy and transport systems, contributing significantly to the transformation to a low carbon economy by 2050, and contributing to the EU’s competitiveness.75 The FCH JU’s public-private partnership approach has been cited as being fundamental to achieving success given the complex nature of the research and related actions required to advance hydrogen and fuel cell technologies. Other Actions – The FCH JU hosts an Annual Stakeholder Forum and uses this event to disseminate information regarding projects and progress to a broad range of stakeholders. All information is also posted to the FCH JU’s website for broader exposure. The CertifHy Program is a one-year, EU-wide project that aims to demonstrate a guarantee of origin scheme for hydrogen. The project began in January 2019 and it encompasses the audit of hydrogen production plants and the certification of hydrogen batches as “green” produced from renewable biomass, hydro, wind or solar sources or “low carbon” produced from nuclear or fossil energy with carbon capture and storage or utilization. Modelled on the guarantee of origin scheme for renewable power in the EU, the CertifHy program seeks to provide transparency and was preceded by a consensus-based roadmap process. Hydrogen Mobility Europe (H2ME) is a five-year project that will increase the number of FCEVs and begin to establish a pan-European network of fueling stations. The €170 million project involves 40 organizations with 40% of its funding from the FCH JU and the balance from 2019 HYDROGEN PATHWAYS 27 DRIVERS - EU private sector partners. An estimated 1,400 cars and vans plus 49 hydrogen fueling stations will be deployed through the project. Germany’s H2 Mobility a hydrogen fueling infrastructure joint venture that has served a model for other fueling infrastructure collaboratives around the world. Established in early 2015 following an earlier collaboration, the joint venture company, H2 Mobility Deutschland GmbH, aims to build a network of 400 hydrogen fueling stations in Germany. Partners in the joint venture are global majors Air Liquide, Daimler, Linde, OMV, Shell, and Total.76 The government of Germany supports the venture as do BMW, Honda, Hyundai, Toyota, and Volkswagen. With a network of 52 stations in November 2018, H2 Mobility reported that they expected demand for hydrogen in 2018 to triple the demand seen in 2017.77 The EU is a member of the IPHE, MI, and the CEM along with many of its individual member countries who also participate in these international collaborations. UNITED STATES The US has a long-term commitment to hydrogen and fuel cells and is the global leader in the deployment of LDVs, MHVs, and large-scale stationary power systems. Second only to Japan in fuel cell patents granted in 2011, the US has maintained a fairly constant base level of RD&D spending with federal spending complemented by state-level initiatives, particularly in California. Within the current American vision of hydrogen and fuel cell use is the idea of using hydrogen along with traditional energy resources. According to Energy Secretary Rick Perry, “As an energy carrier, hydrogen can help unite all of our national’s abundant fossil, nuclear, and renewable energy resources.” 78 The Hydrogen and Fuel Cell Technical Advisory Committee (HTAC) provides technical and program advice to the Energy Secretary, as required by the Energy Policy Act of 2005. In it most recent report, HTAC notes the increasing investment by China in hydrogen and fuel cell technologies, citing the importance of taking actions now to protect America’s early lead and recommending that “potentially partnering with close allies can secure sustainable competitive advantage.” 79 Deployment – There were an estimated 6,100 FCEVs in the US as of 2018 with more than 80% of vehicles operating in California. This LDV population is more than twice the size of the next leading country (Japan). Outside of California, there are modest numbers of hydrogen fuel cell LDVs in operation. Most of the hydrogen fueling infrastructure is in California where there are 39 stations in operation and another 25 stations in development.80 In April 2016, Air Liquide announced plans to build a network of 12 hydrogen fueling stations across five states in the northeast US with Toyota.81 While this project has not been implemented on the originally planned timing, the first of the stations is expected to open in 2019. The US is the global leader in hydrogen fuel cell MHVs and its more than 20,000 MHVs outnumber the rest of the global MHV population by more than twenty-fold. Leading corporate adopters include Walmart, Sysco, Coca-Cola, FedEx, and Lowes as well as Amazon who recently committed to using hydrogen fuel cell MHVs in 11 of its distribution centres. 82 2019 HYDROGEN PATHWAYS 28 DRIVERS - US The US is the global leader in hydrogen fuel cell MHVs and its more than 20,000 MHVs outnumber the rest of the global MHV population by more than twenty-fold. Leading corporate adopters include Walmart, Sysco, Coca-Cola, FedEx, and Lowes as well as Amazon who recently committed to using hydrogen fuel cell MHVs in 11 of its distribution centres. Transit buses are another key deployment area in the US with 30 transit buses in use and another 22 in development. Three California transits operate hydrogen fuel cell buses in their fleets, while transit authorities in Ohio, Hawaii, and Illinois have a small number of hydrogen fuel cell buses in demonstration projects. There are early stage commercial truck activities going on in California including a San Pedro Bay Ports drayage truck demonstration project, a Port of Los Angeles drayage project, and a UPS fuel cell hybrid electric delivery van demonstration. The San Pedro Bays project involves the design and development of a zero emission heavy duty truck for goods movement between ports and inland terminals. The Port of Los Angeles project is much larger-scale with 50% funding (US$41 million from the California Air Resources Board) and a plan to deploy ten Class 8 hydrogen fuel cell trucks and two heavy-duty hydrogen fueling stations. Project partners include Toyota, Kenworth, and Shell. The UPS project involves the retrofitting of 17 delivery vans with fuel cell hybrid power trains for use in local delivery operations. The other area where the US leads is in large stationary fuel cell installations for power production. According to the IPHE, the US has an installed base of 240MW which puts it well ahead of Korea, the second largest market for large stationary use.83 There are fuel cell power plants in more than 40 states, providing power to commercial and municipal operations. California has the greatest number of stationary fuel cells, while Connecticut and Delaware had the largest scale installations as according to the 2016 State of the States report. The other development of note is Air Liquide’s November 2018 announcement that it will build a world-scale liquid hydrogen production plant in western US. The US$150 million plant will serve the California mobility market, as well as being sold into the merchant market for industrial use. A long-term agreement has been signed to supply existing liquid hydrogen fueling stations in California. Policies and Programs – Investment tax credits have provided a major assist for increased hydrogen and fuel cell use across the US. Tax incentives were introduced in 2008 to help offset the cost of hydrogen and fuel cells for stationary and materials handling applications. An investment tax credit worth 30% of fuel cell value (or $3,000/kW of system output, whichever was less) was offered until the end of 2016. Also included were tax credits for FCEVs and hydrogen fueling stations. In early 2018, these tax credits were reinstated with a five-year term for stationary and materials handling and a one-year term for vehicles and stations. 84 2019 HYDROGEN PATHWAYS 29 DRIVERS - US Investment tax credits have provided a major assist for increased hydrogen and fuel cell use across the US. Tax incentives were introduced in 2008 to help offset the cost of hydrogen and fuel cells for stationary and materials handling applications. An investment tax credit worth 30% of fuel cell value (or $3,000/kW of fuel cell system output, whichever was less) was offered until the end of 2016. Also included were tax credits for FCEVs and hydrogen fueling stations. In early 2018, these tax credits were reinstated with a five-year term for stationary and MHVs, and a one-year term for the vehicles and stations. A range of programs support vehicle deployments. The Federal Transit Administration’s Low or No Emission Vehicle Deployment Program has supported the deployment of the clean, energy efficient transit bus technologies that have been largely proven, but are not yet widely deployed in transit fleets. Funding is provided for bus acquisition and lease as well as for fueling and maintenance facilities. H2@Scale is a Department of Energy (DOE) initiative that, “brings together stakeholders to advance affordable hydrogen production, transport, storage, and utilization to increase revenue opportunities in multiple energy sectors.” 85 Earlier this month, a call for projects was issued with $31 million available to support RD&D activities in three topic areas – advanced hydrogen storage and infrastructure R&D; innovative concepts for hydrogen production and utilization; and H2@Scale pilot demonstrating integrated production, storage, and fueling systems.86 In 2013, California adopted legislation known as AB-8 to establish long-term authority for the California Energy Commission to fund the first 100 retail hydrogen fueling stations through the Alternative and Renewable Fuel and Vehicle Technology Program. A $20 million annual funding allocation is in place until 2024 for hydrogen station development to a maximum of 100 stations.87 Separate from this development, California had already been working for more than a decade to implement its ZEV agenda. Both of these actions have been instrumental in making California the world’s leading jurisdiction for FCEV deployment. In a move to extend ZEV requirements beyond LDVs, the California Air Resources Board announced in December 2018 that it had approved a first-of-its-kind regulation that sets a statewide goal for public transit agencies to gradually transition to a 100% ZEV fleet by 2040.88 This new regulation is driven by an interest in reducing GHG- and air quality-related emissions. There are a variety of roadmaps that have been developed at the federal and state levels. A California roadmap was published in 2012. Most recently, California has commissioned a Renewable Hydrogen Production Roadmap. This roadmap will be developed by the University of California – Irvine.89 In 2016, the California Fuel Cell Partnership (CaFCP) published the Medium- & Heavy-Duty Fuel Cell Electric Truck Action Plan for California with key recommendations including an initial demonstration and deployment focus on Class 4 parcel delivery trucks and Class 8 drayage trucks. 2019 HYDROGEN PATHWAYS 30 DRIVERS - US RD&D – The DOE is the lead agency for hydrogen and fuel cell R&D in the US DOE’s Fuel Cell Technologies Office (FCTO) is responsible for coordinating R&D activities across four DOE offices – the Office of Energy Efficiency and Renewable Energy, the Office of Fossil Energy, the Office of Nuclear Energy, and the Office of Science. For fiscal 2019, the US will spend US$120 million for DOE’s FCTO as well as US$30 million for solid oxide fuel cells for stationary applications within the DOE’s Office of Fossil Energy. These amounts are similar to what has been spent in recent years as RD&D funding has been sustained and fairly stable. FCTO’s mandate is to: (a) overcome technical barriers through hydrogen and fuel cell technology R&D; (b) address safety issues and facilitate the development of C&S; (c) validate and demonstrate hydrogen and fuel cells in real world conditions; and (d) educate key stakeholders whose acceptance of these technologies will determine their marketplace success. The FCTO has a Multi-Year Hydrogen and Fuel Cells Program Plan that facilitates coordination and guides activities including partnerships with industry, academia, the national laboratories, and other DOE programs. The H2@Scale initiative is led by the FCTO. Other Actions – There is a suite of outreach and education activities undertaken by the FCTO that aim to build awareness and improve understanding of hydrogen and fuel cells and their safety. Actions include monthly newsletters, success story publication, news alerts, blogs, and active outreach to the teachers, code officials, and first responders. The FCTO publishes its annual State of the States Report, detailing hydrogen and fuel cell usage, activities, manufacturers, and key policies and programs at the state level. The H2Tools.org website is funded by the FCTO with the Pacific Northwest National Laboratory building and maintaining the site. Focused on hydrogen safety, the site is intended for public use and includes resources including videos, training materials, vehicle emergency response guides, and user forums. H2USA is a public-private partnership involving more than 45 organizations including the FCTO. Its mission is to address hurdles to hydrogen fueling infrastructure, enabling the largescale adoption of FCEVs. There are four working groups – hydrogen fueling stations, fueling locations roadmap, financing infrastructure, and market support and acceleration. The US is a member of the IPHE, MI, and the CEM. Its international activities include a collaboration between DOE and Japan’s New Energy and Industrial Technology Development Organization focused on sharing data and safety R&D to accelerate progress toward energy security, resilience, and economic growth goals.90 6.0 Drivers of Interest in Canada Canada’s status as a Paris Agreement signatory supports increased focus on decarbonizing energy use. With a national target of reducing GHG emissions by 30% below 2005 levels by 2030, there is a need for economy-wide reductions in GHGs. Several measures have already been identified including implementing a carbon tax, introducing a Clean Fuel Standard, improving energy efficiency in buildings, and closing coal-fired power plants. Hydrogen and 2019 HYDROGEN PATHWAYS 31 DRIVERS - CANADA fuel cells offering a low emission alternative for applications across the transportation, community, and industrial sectors. From a GHG reduction perspective, the transportation sector is particularly challenging with continued increases in emissions from on-road vehicles. Transportation sources contributed 28% of total national GHG emissions in 2016. And, between 2005 and 2016, transportation emissions increased by 14 megatonnes, a trend that is contrary to the GHG reductions seen across most parts of the economy during this timeframe. On-road vehicles comprised 23% of total Canadian GHG emissions in 2016. The federal Pan-Canadian Framework on Clean Growth and Climate Change highlights the importance of transitioning to a low-carbon future, and clean energy and transportation are identified as priority areas. Released in late 2016, the Framework was designed around four main pillars – pricing carbon; complementary measures to further reduce emissions; adaptation measures that build resilience; and actions to accelerate innovation, support clean technology and create jobs. Hydrogen and fuel cell technologies align with the government’s priorities and several of the Framework measures are relevant to increased hydrogen and fuel cell usage. The decision to price carbon will support the adoption of cleaner transportation fuels, but this measure is not likely to have a significant near-term impact on FCEV adoption, given that many early activities are still needed to support deployment. There are, however, actions in two other pillar areas that can create a more supportive environment for the adoption of transportation and stationary hydrogen end use applications in the near term. These areas and the relevant actions are shown in the table that follows. PILLAR AREA FOCUS 1 Complementary Transportation Electricity Transform electricity systems with more clean, non-emitting sources A. Increase renewable and nonemitting energy sources B. Demonstrate and deploy smartgrid technologies that facilitate the integration of energy storage for renewables Building early stage innovation Become a leader in clean technologies A. Support early-stage technology developments that reduce emissions B. Encourage mission-oriented approaches to focus research, development and demonstration (RD&D) actions 3 Clean technology, innovation, and jobs RELEVANT ACTIONS A. Develop a Canada-wide ZEV Strategy B. Collaborate on ZEV infrastructure demonstration and deployment actions 2 Complementary OBJECTIVE Put more ZEVs on the road in Canada Figure 6 - Pan-Canadian Framework - Actions Relevant to Hydrogen and Fuel Cells 2019 HYDROGEN PATHWAYS 32 DRIVERS - CANADA Action 1.A – The development of a Canada-wide ZEV Strategy An expert working group process was undertaken during 2017 under the direction of a multistakeholder advisory group. The federal government worked with provinces and territories as well as with the private sector, academia, and non-profit associations. The scope of work encompassed electric vehicles (EVs) and FCEVs. Analysis focused on vehicle supply, the cost and benefits of ownership, infrastructure readiness, public awareness and education, as well as technology advancement in the context of clean growth and new jobs. In January 2019, Transport Canada Minister Marc Garneau, announced ZEV targets of 10% by 2025, 30% by 2030, and 100% by 2040 with other next step actions under review. Action 1.B – Collaboration on ZEV infrastructure for demonstration and deployment Federal Budget 2016 allocated $16.4 million, Budget 2017 allocated $80 million, 91 and now Budget 2019 will allocate an additional $130 million92 over five years for NRCan programs to support infrastructure investments for electric vehicle charging as well as for alternative fuels such as natural gas and hydrogen. The current Electric Vehicle and Alternative Fuel Infrastructure Development Initiative (EVAFIDI) Program provides funding support of 50% of eligible project costs to a maximum of $1 million per station for hydrogen fueling stations. Phase 1 of the program allocated funding for three new public hydrogen fueling stations in metropolitan areas in each of British Columbia, Ontario, and Québec. Phase 2 has, to date, announced funding for four additional stations in British Columbia and Québec. A new ZEVrelated infrastructure program with funding announced in Budget 2019 will also be established. These are very significant announcements that support greater hydrogen FCEV deployment in Canada and private sector partners are starting to invest in projects in order to leverage available funding as well as access to new fueling infrastructure. Action 2.A – Increase renewable and non-emitting sources This action could indirectly support an increase in a range of hydrogen-related activities by stimulating interest in the production of hydrogen from water electrolysis or through the use of other technologies that rely on renewable and non-emitting sources. For example, nonemitting power from baseload nuclear reactors or from small modular reactors could be used to produce renewable hydrogen. The Province of British Columbia recently commissioned a feasibility study on the topic of large-scale hydrogen production using hydroelectric power. The technical and economic aspects of a 300MW centralized hydrogen electrolysis facility will be considered. Potential for sales in domestic and export markets is envisioned. This type of renewable power production would increase hydrogen activities and directly align with the recent First Ministers’ announcement related to, “…the development of a framework for a clean electric future, including hydroelectricity, aimed at using clean, reliable and affordable electricity and to promote access to domestic and international markets.” 93 Action 2.B – Demonstrate and deploy smart-grid technologies that facilitate the integration of energy storage and renewables As more renewable sources are brought online in electricity systems across Canada, there are new challenges associated with managing intermittent sources of supply. The idea of taking surplus renewable power from the electricity grid to create hydrogen which can then be used 2019 HYDROGEN PATHWAYS 33 DRIVERS - CANADA directly (e.g. for backup power, transportation, industrial use, etc.) or stored (e.g. onsite in tanks, by being injected in the natural gas distribution grid) or combined with carbon dioxide (CO2) to produce synthetic natural gas is of increasing interest to a range of stakeholders. A large scale 2.5MW P2G facility opened in Markham, Ontario, in 2018. This first-of-its-kind facility for North America is operating under contract to Ontario’s electricity system operator, and is taking surplus renewable power, converting it to hydrogen via electrolysis, and then injecting the hydrogen into the natural gas grid. Glencore’s Raglan Mine project in northern Québec uses wind power to create hydrogen using a fuel cell and energy is stored onsite to support the mine operation. This project displaces 4.4 million litres of diesel per year in a remote area, offering an important example of how the integration of energy storage can help remote communities transition away from diesel, another stated priority of Canada’s First Ministers. Action 3.A – Support early stage technology developments that reduce emissions Over several decades, Canada’s hydrogen fuel cell sector has demonstrated expertise and an ability to compete globally using clean hydrogen and fuel cell technologies. FCEVs that operate on hydrogen produce zero emissions from operation, regardless of the hydrogen source. Early industry focus was on hydrogen transit buses and Canada played an important role in the development of this clean technology, showcasing 20 fuel cell buses at the 2010 Whistler Olympics. As interest in extending and improving transit services in Canada increases, there could be a role for integrating hydrogen fuel cell buses and regional hydrogen-powered trains in regular transit operations. In addition, global trends suggest growing interest in medium- and heavy-duty truck applications as well as LDVs, MHVs, rail, and marine applications. Innovative stationary applications including those that are part of integrated energy systems could also increase hydrogen and fuel cell usage. Hydrogen and fuel cell technologies could also benefit from new resources announced in the 2018 federal Fall Economic Update that aim to support innovative clean energy technologies. Four key items were: (a) accelerated capital cost allowance on the full cost of specified clean energy equipment; (b) an additional $50 million for clean technology venture capital; (c) a commitment to modernize federal regulations where new frameworks are required for emerging technologies; and (d) an additional $800 million in Strategic Innovation funding for innovative R&D and business expansion. Action 3.B – Encourage mission-oriented research approaches to focus RD&D Mission Innovation (MI) is a global initiative with 23 countries and the EU focused on accelerating global clean energy innovation with a goal of making clean energy widely affordable. Canada is a participant in MI and, as outlined in the Pan-Canadian Framework, it is a priority of the federal government to, “double its investments in clean energy research and technology development over five years, while encouraging greater levels of private sector investment in transformative clean energy technologies.” 94 MI launched a new hydrogen-focused challenge, the Renewable and Clean Hydrogen Innovation Challenge, in October 2018. The purpose of this challenge is to, “accelerate the development of a global hydrogen market by identifying and overcoming key technology 2019 HYDROGEN PATHWAYS 34 DRIVERS - CANADA barriers to the production, distribution, storage, and use of hydrogen at gigawatt scale.” 95 This work will assess what is needed to scale renewable hydrogen production to a point where it has a cost-competitive supply chain which can allow for much greater use across a broader range of applications. In addition to the various Pan-Canadian Framework actions that could support greater hydrogen and fuel cell use, Canada also is developing a new Clean Fuel Standard. Initiated in late 2016, this Standard will be designed with a performance-based approach and a goal to, “incent the use of a broad range of low carbon fuels, energy sources and technologies, such as electricity, hydrogen, and renewable fuels, including renewable natural gas.” 96 The Standard will incorporate the use of lifecycle carbon intensities and will apply to liquid, gaseous, and solid fuels used in transportation, industry, and buildings. Overall carbon intensity reductions of 10-15% by 2030 are contemplated. This new standard represents a major regulatory change. The overall objective will be to achieve a 30 megatonne reduction in GHG emissions by 2030. As it will support the creation of lower carbon fuel pathways, the standard could provide a significant assist for greater use of hydrogen in transportation, as a feedstock for industry, in buildings for heat and backup power, in the natural gas grid to reduce carbon intensity, and in innovative energy systems that can support grid stabilization and remote community applications. The proposed regulation for liquid fuels is on a path to come into force by 2022; for gaseous and solid fuels, the plan is to have the regulation in force by 2023. Also, of note are several measures announced in Budget 2019 that will encourage greater availability and use of ZEVs including FCEVs including: o Funding to support Transport Canada work with OEMs on voluntary ZEV sales targets. o Consumer purchase incentives of $5,000 for ZEVs including FCEVs. o Accelerated fleet write-off of light, medium- and heavy-duty ZEV purchases. o An additional $800 million in recently announced funding for the Strategic Innovation Fund which can be accessed by OEMs to support ZEV manufacturing in Canada. Based on ongoing GHG reduction priorities, specific actions identified in the Pan-Canadian Framework, the Renewable and Clean Hydrogen Innovation Challenge, the Clean Fuel Standard, and new Budget 2019 announcements there is an emerging collection of policies and related programs that are aligned and can support greater use of hydrogen and fuel cells in Canada. Further supporting this convergence is Canada’s participation in key international collaborations such as the IPHE, the CEM, and the Hydrogen Energy Ministerial that recently met for the first time in Tokyo and that released a statement committing to global collaboration in RD&D for hydrogen technologies. Canada will launch a New Hydrogen Initiative at upcoming May 2019 CEM meeting in Vancouver. Co-led by Canada and other countries whose participation is to be confirmed, the New Hydrogen Initiative will: 2019 HYDROGEN PATHWAYS 35 DRIVERS - CANADA o Advance policies, programs and projects to accelerate the commercial scale deployment of hydrogen and fuel cell technologies across all sectors of the economy, including transportation, manufacturing, heat and power generation, and storage in industrial applications as well as in communities. o Support policy, program, and project work focusing on hydrogen’s role as part of a suite of fuels and technologies contributing to global clean growth and climate objectives. o While a number of international fora (International Energy Agency (IEA), IPHE, and MI) address hydrogen technology development and innovation, there is limited international engagement and collaboration on programs, policies, and projects to support mass deployment. The New Hydrogen Initiative aims to address this gap area through cooperation and collaboration with international partners. One final area of interest for Canada relates to the Hydrogen Council. Formed in 2017, the Council is an industry-led global initiative of companies that invest along the hydrogen value chain and whose combined market capitalization exceeds US$1.15 trillion. Founding members include Air Liquide, BMW Group, Daimler, General Motors, Honda, Hyundai, Shell, Linde, Total, and Toyota. The Council recently released a roadmap entitled, Hydrogen, Scaling Up, that outlines a vision of how hydrogen can deliver deep decarbonization of transport, industry, and buildings along with enabling renewable power production and distribution. Also highlighted as being vital to long-term success for hydrogen and fuel cells is the need for broad coordination among stakeholders including investors, industry, and government There are also provincial actions that demonstrate interest in greater hydrogen and fuel cell use. British Columbia offers point-of-sale purchase incentives up to $6,000 for EVs and FCEVs through its Clean Energy Vehicles for British Columbia (CEVforBC) program that runs until March 2020. In addition to providing vehicle incentives, the program provided funding support for the new hydrogen fueling station in Vancouver. Funding is also available for fleet incentives, research, training, and public outreach. British Columbia also recently announced that it intends to adopt a ZEV mandate. Legislation will be advanced this Spring and is expected to include ambitious targets of 10% ZEV sales by 2025, 30% by 2030, and 100% by 2040.97 Recognizing that affordability of ZEVs is a barrier to adoption, the government indicated that it will take steps to improve affordability, adding another $20 million to the CEVforBC program. Québec became the first province in Canada to adopt a ZEV mandate when the new regulation came into force for model year 2018 vehicles. The purpose of the regulation is to encourage OEMs to develop and sell greater numbers of low and zero carbon emission technologies including EVs, FCEVs, and hydrogen internal combustion vehicles. Vehicle purchase incentives of up to $8,000 for hydrogen FCEVs are also available through the Drive Green – Drive Electric Program. 2019 HYDROGEN PATHWAYS 36 DRIVERS - CANADA A 2018-2023 Energy Transition, Innovation and Efficiency Master Plan was released by the Transition énergétique Québec (TEQ), a government body responsible for supporting and promoting energy transition, innovation, and efficiency. Focused on how to achieve a sustainable energy future, the Plan identifies many actions and goals including ones related to lower carbon transportation.98 Key items include: launching a multi-fuel station pilot project to give drivers access to a variety of fuels including gasoline, biofuels, natural gas, propane, electricity, and hydrogen; and setting up a test bench to introduce hydrogen into the transportation sector where this action encompasses: (a) mandating the BNQ to develop a regulatory framework to ensure public safety related to hydrogen; (b) establishing an advisory committee to coordinate initiatives over the short-, medium- and long-term; and (c) carrying out a feasibility study to assess opportunities associated with renewable hydrogen production in Québec. Funding toward a hydrogen fueling station in Québec City is being provided and a funding application for the planned Montréal station is under review. 2019 HYDROGEN PATHWAYS 37 1- LDVs & STATIONS 7.0 Transportation Pathways Transportation use of hydrogen and fuel cells varies greatly in different markets and by application. Early deployments have focused on MHVs, transit buses, and LDVs, with heavier end uses at earlier stages of commercialization as outlined in the graphic below. Figure 7 – Comparison of Transportation Pathways Adoption Timelines 99 The following sections describe the current status of LDVs, transit buses, MHVs, trucks, and trains including global deployments, Canadian activity, and key observations. 7.1 Light-Duty Vehicles and Stations GLOBAL The global population of light duty FCEVs is approximately 11,000 vehicles. The US has the greatest number with an estimated 6,100 vehicles, most of which are in California. Japan ranks second with 2,800 LDVs. The remaining 20% of vehicles are in operation in the EU (1,350), China (760), Germany (500), and Korea (100).100 At this early stage of deployment, sales into California account for roughly two-thirds of annual global FCEV sales. One model, the Toyota Mirai, comprises more than half of total sales.101 While these FCEV numbers are very modest in comparison to the global vehicle population, automotive industry executives have identified FCEVs as the top key trend to 2025. In their 2018 global survey of 907 senior executives from 43 countries with OEMs and parts suppliers making up nearly half of the sample, KPMG found that FCEVs have replaced EVs as the top overall industry trend and electric mobility continues to rank extremely high, being identified in three of the four top trends including the FCEV trend,102 suggesting growing interest and ongoing complementarity for FCEVs with OEMs’ vehicle electrification programs. 2019 HYDROGEN PATHWAYS 38 1- LDVs & STATIONS As countries struggle to reduce emissions and decarbonize energy, there is a renewed and growing interest in hydrogen FCEVs whose only emissions from operation are water vapour. Well-to-wheel emissions analysis shows that, even when hydrogen is produced from natural gas SMR, there are very significant lifecycle carbon reduction benefits. An analysis done for the 2019 Hydrogen Roadmap Europe shows that, on a well-to-wheel basis, CO2 emissions would be reduced by 44% using SMR-produced hydrogen and by 89% using hydrogen from renewables. Figure 8 – European Comparison of Well-to-Wheel Emissions in grams CO2/km ZEV mandates including the world’s first mandate in California support FCEV adoption as FCEVs provide a compliance pathway. Further supporting adoption are government incentives. All leading jurisdictions offer some form of subsidy for hydrogen FCEV purchase or lease. Other benefits vary, but may include access to high occupancy vehicle lanes as in California, exemption from taxes such as the vessel tax exemption offered in China. At present, three OEMs offer commercial light-duty FCEVs – Japanese companies Honda and Toyota, and Korean company, Hyundai. Honda was the first to market. It now integrates third generation technology with its 2018 Clarity fuel cell sedan which can seat five passengers and has a 700-km range. In North American, the company offers a three-year lease at US$369 per month and provides up to US$15,000 in hydrogen over the lease term. Vehicle leases are limited to California residents living or working in proximity to a hydrogen fueling station. At present, there is no 2018 model availability and Honda has indicated that the 2019 model will be offered in Spring 2019.103 The Toyota Mirai was launched in late 2014 with deliveries into the Japanese market, followed by deliveries into California. The Mirai seats four, has a 500-km range, and 2019 HYDROGEN PATHWAYS 39 1- LDVs & STATIONS retails for just under US$60,000 104 or US$349 per month for a lease. Toyota also offers up to US$15,000 in hydrogen over the lease term.105 Hyundai has had a fuel cell version of its Tucson sedan available on a limited basis since 2013. The company is now offering the world’s first fuel cell sport utility vehicle, the NEXO. With a range of 610 km, the vehicle is only available in California and in Asia. Manufacturer’s suggested retail pricing starts at US$58,300 with three years worth of fuel valued at US$13,000.106 Other OEMs are at various stages in terms of hydrogen FCEV development and deployment. Daimler notes that, “The potential of fuel cell technology, and of hydrogen for energy storage, is beyond question” and the company has experience with several generations of FCEVs. Its pre-series GLC plug-in hybrid fuel cell vehicle was released in 2018, but only to a small number of fleet owners and with a very limited production run. Volkswagen-owned Audi continues to collaborate with Ballard on their FCEV development program. In 2018, Audi announced a 3.5-year, minimum US$62 million extension of the professional engineering services contract, aiming toward small series production launch.107 Continued improvement in electric drivetrains benefits FCEVs, but multiple and competing OEM priorities also pose a challenge. As of late 2018, there were approximately 400 hydrogen fueling stations in operation globally. Hydrogen for vehicles is typically in gaseous form with fuel dispensed at either 35 megapascal (MPa) pressure or 70 MPa. An estimated 14% of stations offered fuel at 35 MPa with the remainder offering higher pressure fueling or both pressure options. Vehicles with 35 MPa fuel storage tanks can only refuel at that pressure. The fueling nozzle and receptacles are different, so there is no risk of 70 MPa refueling for a vehicle with tanks designed for lower pressure. Japan leads the world with its network of 122 hydrogen stations, followed by Germany with 55 stations, and California with 39 stations. Other than in Germany, the EU reports an estimated 100 stations across its other 27 member countries. The California network is underpinned by state legislation that obliges the state to provide US$20 million annually until 2024 to support the development of a maximum of 100 hydrogen fueling stations. Outside of California, there are very few hydrogen fueling stations in the US. In 2016, Air Liquide announced plans to build a network of 12 hydrogen fueling stations in five states in the northeast US in partnership with Toyota.108 While this project has not been implemented on the originally planned timing, the first of the stations is expected to open in 2019. Infrastructure collaborations have been a key enabler of fueling station buildout in various countries and jurisdictions. Germany’s H2 Mobility is a hydrogen fueling infrastructure joint venture that has served as a model for others. Established in 2015 following an earlier collaboration, the joint venture company, H2 Mobility Deutschland GmbH, aims to build a network of 400 hydrogen fueling stations in Germany. Partners in the joint venture are global majors Air Liquide, Daimler, Linde, OMV, Shell, and Total. The government of Germany supports the venture as do BMW, Honda, Hyundai, Toyota, 2019 HYDROGEN PATHWAYS 40 1 - LDVs & STATIONS and Volkswagen.109 Other collaboratives with various scopes of activity that include infrastructure buildout are also in place in California (CaFCP), Japan (JHyM), Korea (H2Korea), the US (H2USA), and the EU (H2ME). All of the leading jurisdictions for hydrogen FCEV use have ambitious vehicle deployment and station installation targets with select targets in the 2019 to 2025 timeframe shown below. And, as interest in hydrogen continues to grow, the targets continue to evolve. The IPHE whose 18 members represent two-thirds of the world’s population are now, in aggregate, forecasting a 300-fold increase in FCEVs to 3.4 million and a 12-fold increase in hydrogen fueling stations to 5,000 by 2030.110 While these forecasts may be very optimistic, they are indicative of a strengthening and renewed interest in hydrogen as a key element within a broader portfolio of low and zero carbon future energy pathways. Figure 9 - LDV and Station Goals for Select IPHE Partner Countries CANADA Canada has fewer than 20 FCEVs in operation today, but that will soon change when Toyota brings 50 Mirais to Québec for fleet use in 2019. Toyota’s decision depended on the availability of fueling infrastructure. With the announcement of a first station in Québec City and a planned second station in Montréal, an in-province corridor for FCEVs will be established. Toyota has a corporate commitment to reduce vehicle emissions by 90% by 2050.111 It also cited Québec’s clean hydroelectric power as an important resource that the FCEV deployment will benefit from. The Québec City station will cost between $5.2 and $5.8 million with provincial agency, TEQ, providing $2.9 million and NRCan’s EVAFIDI providing $1 million toward project costs.112 Honda has indicated that it plans to provide financial support for the Montréal station, although investments and vehicle deployments have not yet been announced.113 2019 HYDROGEN PATHWAYS 41 1- LDVs & STATIONS Canada’s FCEV Coalition consists of the Canadian affiliates of BMW, Honda, Hyundai, Kia, Mercedes-Benz, and Toyota. This group has hosted light-duty FCEV ride-and-drive events, so as to raise awareness of the environmental and economic benefits of FCEVs. They are also engaged to advocate for FCEVs and want to address barriers to deployment with a specific focus on hydrogen fueling infrastructure. When the group was first formed in 2016, there were no publicly accessible hydrogen fueling stations in Canada. Now there is a public station in Vancouver which opened in June 2018 and six new public stations are scheduled to be opened between 2019 and 2020. NRCan’s EVAFIDI is providing an important kickstart to the buildout of hydrogen fueling infrastructure in Canada. This five-year program provides funding for EV charging stations and for natural gas and hydrogen fueling stations. The program offers repayable contributions of 50% of eligible project costs to a maximum of $1 million per hydrogen fueling stations. Federal budget 2016 allocated $16.4 million and Budget 2017 provided an additional $80 million in funding for EVAFIDI.114 In addition, Budget 2019 will allocate $130 million over five years115 for ZEV infrastructure investments including hydrogen fueling stations. These federal investments leverage station-related funding support that is also being offered by the provinces of British Columbia and Québec. In addition to more than doubling the federal government’s planned investments in EV and alternative fuel infrastructure, Budget 2019 also included important measures to support ZEV adoption. New funding will enable Transport Canada to work with OEMs on voluntary ZEV sales targets. In addition, OEMs will be able to access an additional $800 million in the Strategic Innovation Fund for ZEV manufacturing in Canada. A new $300 million measure will improve ZEV affordability for consumers by providing purchase incentives of $5,000 on vehicles with a retail price of less than $45,000. An accelerated depreciation measure was also introduced to encourage business investments in ZEVs. For new light-, medium-, and heavy-duty ZEVs purchased between now and 2024, fleets will be able to write off the full capital value in the year the vehicle is put into use. For ZEV passenger vehicles, there will be a $55,000 plus sales tax capital cost limit on the allowed deduction. 116 There are also complementary provincial measures in place in the provinces of British Columbia and Québec. In addition to supporting the installation of hydrogen fueling stations with funding subsidies, these provinces also offer subsidies of $5,000 per hydrogen FCEVs. Québec was the first in Canada to establish a ZEV mandate which came into force for the 2018 model year. British Columbia intends to introduce their ZEV legislation this Spring. 2019 HYDROGEN PATHWAYS 42 1- LDVs & STATIONS OBSERVATIONS Given Canada’s vast geography, it is critical that a strategic approach is taken to locating publicly-accessible hydrogen fueling infrastructure. Locating public stations in urban and key corridor areas is vital to ensuring long-term sustainability. Important new measures announced in Budget 2019 can provide an increase in hydrogen FCEV activity, although the lack of recent market activities underscores the need for proactive outreach, education, and awareness campaigns targeting prospective consumer and fleet adopters, influencers, Authorities Having Jurisdiction (AHJs), emergency first responders, local governments, the media, and other key influencers. 7.2 Transit Buses GLOBAL The first hydrogen fuel cell transit bus operated in Belgium in 1994 and was followed by a similar trial in Chicago in 1995. Since that time, there have been ongoing technology developments and demonstrations in order to advance the commercialization of hydrogen fuel cell transit buses. Significant progress has been made, although the cost of hydrogen fuel cell buses remains high.117 The global population of hydrogen fuel cell transit buses is approximately 360 buses with China having overtaken the lead and reporting that more than half of hydrogen fuel cell buses are in operation in China with 200 buses. The EU ranks second with 70 hydrogen fuel cell buses, followed by the US with 30 hydrogen fuel cell buses, the majority of which operate in California. Each of these jurisdictions also have new hydrogen fuel cell transit bus projects in development. The EU and the US have had long-term commitments to hydrogen fuel cell buses, supported by funding and a range of programs. In the US, different programs have supported vehicle deployments including the Federal Transit Administration’s Low or No Emission Vehicle Deployment Program. This program provides funding support to help offset the cost of bus acquisition or lease as well as for fueling and maintenance facilities for clean, energy efficient technologies that have been largely proven, but are not yet widely deployed in transit fleets. The National Fuel Cell Bus Program had also provided US$60 million in funding through to the end of 2016.118 The EU offers per vehicle subsidies for hydrogen FCEVs including transit buses as well as funding support for fueling stations. The FCH JU funds research and demonstrations and several major hydrogen fuel cell transit bus programs have been resourced including the Clean Hydrogen in European Cities (CHIC) program with €82 million in funding for 56 fuel cell transit buses in five during 2010 to 2016; the HighV.LoCity program with €29 million in funding to cover 30% of project costs for 14 fuel cell transit buses operating between 2012 and 2018; and the 3Emotion program with €42 million to support the deployment of 21 hydrogen fuel cell buses in six cities between 2015 and 2019.119 2019 HYDROGEN PATHWAYS 43 2 – TRANSIT BUSES Increasingly, municipalities and other jurisdictions are announcing future restrictions on diesel-powered vehicles which could affect transit buses. In November 2016, London pledged to stop buying double decker buses that only operate on diesel by 2018 and to purchase only ZEV single deck buses.120 In December 2016, Madrid, Paris, Athens, and Mexico City announced their intentions to ban diesel vehicles by 2025 due to urban air quality concerns. In California, a first-of-its-kind regulation was approved in December 2018, setting a statewide goal for public transit agencies to gradually transition to a 100% ZEV transit fleet by 2040. 121 The regulation is driven by an interest in reducing GHGs and improving local air quality. Both hydrogen fuel cell transit buses and full electric buses could comply with the requirement. CANADA Canadian technology is prominent in fuel cell transit bus deployments with OEM New Flyer having assembled fuel cell buses for many of the North American demonstration projects. Ballard’s seventh generation transit fuel cell engine has been integrated by 13 bus OEMs and the company’s fuel cell systems power more than 80 transit buses around the world including 41 in the EU, 24 in China, and 13 in the US.122 The company recently announced that its eighth-generation fuel cell stack for heavy applications including transit buses will be available in 2019. This technology will offer reduced total cost of ownership and performance improvements including increased power density and vehicle start at temperatures as low as -25°C. Hydrogenics is also very active with fuel cell power systems in more than 30 transit bus projects globally. In June 2017, the company announced a US$50 million purchase and license agreement to supply 1,000 fuel cell bus power modules to Chinese company, BlueG New Energy to 2020.123 Hydrogenics also supplies electrolyser systems and recently announced the sale of a large-scale system capable of producing more than 400 kilograms (kg) of hydrogen per day for a German transit operating 10 fuel cell buses. Canada had a major hydrogen fuel cell bus demonstration at the 2010 Winter Olympics in Vancouver. Operated by BC Transit in Whistler, 20 hydrogen fuel cell buses were refueled at what was then the world’s largest hydrogen fueling station. The Olympics provide a showcase opportunity and, prior to the 2010 event, China had used hydrogen fuel cell buses for the 2008 Summer Olympics in Beijing. For the 2020 Summer Olympics in Tokyo, Japan plans to showcase hydrogen fuel cell buses as well as combined heat and power (CHP) fuel cell systems for the athletes’ village. While there are no fuel cell transit buses in use in Canada at present, the Canadian transit industry through its research collaboration, the Canadian Urban Transit Research and Innovation Consortium (CUTRIC), has launched a multi-year project to assess needs and issues related to hydrogen fuel cell transit buses. In February 2019, CUTRIC also announced it would contribute 25% of the cost of a four-year, $1.9 million research project focused on low cost, high performance, durable polymer electrolyte membrane fuel cells for vehicles including transit buses. In addition to CUTRIC, the project partners are Ballard, the University of Waterloo, the University of Western Ontario, StarPower ON Systems, and the Natural Sciences and Engineering Research Council.124 2019 HYDROGEN PATHWAYS 44 2 – TRANSIT BUSES OBSERVATIONS Fleet adoption of alternative technologies touches on all aspects of the fleet operation. For municipal transits, this includes vehicle specifications and acquisition, fueling infrastructure, maintenance facility modifications, training staff and local first responders, and interactions with the public. While Budget 2019 announced accelerated write down for fleet FCEV purchases, this measure clearly targets smaller vehicles given the $55,000 maximum value to which the write down applies. In addition, municipal fleets do not benefit from accelerated depreciation measures as they do not pay income tax. Transit bus subsidy programs at the provincial level have previously required that the vehicles be put into service for a normal life of at least seven years. For transits to adopt a new technology such as hydrogen fuel cell buses, it is important that a holistic approach is taken that considers all aspects of adoption and that new barriers are not introduced through the conditions of funding programs. 7.3 Medium- and Heavy-Duty Trucks GLOBAL Hydrogen fuel cell trucks are at a very early stage in terms of OEM engagement, commercialization, and deployment. China is the first to have deployed medium-duty commercial fuel cell trucks with an estimated 500 trucks in use including 100 urban delivery trucks in Shanghai. The EU reports 15 trucks in operation. In the US, California has demonstration projects focused on hydrogen range-extended and hydrogenpowered drayage trucks, and on fuel cell hybrid electric package delivery trucks including: o Port of Los Angeles - Project Portal Project – An US$82 million project to deploy ten Class 8 hydrogen fuel cell drayage trucks and two heavy duty hydrogen fueling stations. Project partners include Kenworth and Shell with Toyota supplying fuel cell systems. The California Air Resources Board is funding 50% of project costs. The stations will be the world’s first to offer truck-scale hydrogen fueling. o UPS Fuel Cell Hybrid Delivery Trucks – This project involves the retrofit of 17 delivery trucks with hydrogen fuel cell hybrid powertrains for use by UPS in local delivery in California. California’s 2016 Sustainable Freight Action Plan set a target of deploying more than 100,000 ZEV freight vehicles and equipment by 2030. This Plan provided the rationale for funding advanced technology pilot projects including projects involving hydrogen fuel cell vehicles. The CaFCP developed a hydrogen fuel cell truck action plan in 2016, identifying Class 7-8 short haul/drayage trucks and Class 4-6 urban “last mile” package delivery trucks as the most promising areas for early stage targeted activities to encourage the use of hydrogen fuel cell electric trucks. 2019 HYDROGEN PATHWAYS 45 3 - TRUCKS In terms of established OEMs, Hyundai has made a major announcement regarding its plans to supply 1,000 medium duty, 18,000 tonne hydrogen fuel cell trucks for a consortium of Swiss companies between 2019 and 2024. This is a major new initiative for Hyundai. The trucks are expected to have a 400-kilometer range. Switzerland has a tonne per kilometer levy for heavy duty trucks. The cost for a single 40-tonne truck can be up to US$70,000 annually. Hydrogen and battery electric trucks are exempt from this charge.125 Newcomer Nikola Motor aims to transform heavy trucks with a business model focused on leasing hydrogen fuel cell electric Class 8 trucks on a cost per kilometer basis that is competitive with diesel trucks and building a network of 700 hydrogen fueling stations over the next seven years.126 The Phoenix-based company was launched in 2014 and in May 2018 received an order from Anheuser-Busch for 800 trucks for delivery starting in 2020. At present, a prototype truck has been developed. Nikola does not yet have a manufacturing facility for its Class 8 trucks. Plans are in place for Anheuser-Busch and carrier US Xpress to begin fleet testing of Nikola’s trucks in late 2019. CANADA In an early stage development in Canada, Emissions Reduction Alberta announced $7.3 million in funding for the three-year, $15 million Alberta Zero Emissions Truck Electrification Collaboration.127 This project will demonstrate two extended range Class 8 Freightliner trucks that have been modified to hydrogen fuel cell hybrid operation with the addition of lithium ion batteries and hydrogen fuel cells from Ballard. Fleets Bison and Trimac will operate the two trucks between Edmonton and Calgary. Praxair will supply hydrogen produced from steam reformation of natural gas. Under the leadership of the Alberta Motor Transport Association, the project aims to demonstrate 700-kilometer range, zero emission heavy trucks. Over three years, the 64-tonne, B-train tractor trailers will travel more than 500,000 kilometers in this “first-of-its-kind” project in the world. In addition to Canadian fuel cell systems providers, Ballard and Hydrogenics, who each are involved in medium- and heavy-duty truck applications, Canada also has specialized technology provider, Loop Energy. Based in Burnaby, British Columbia, this company develops hydrogen fuel cell solutions for commercial users. It has a fuel cell range extender for electric powertrains suitable for use in medium- and heavy-duty trucks and buses. At present, the company’s technology is in use for yard shunt trucks operating in China. The system allows for increased driving range and a potential reduction in the size and weight of battery electric vehicles. OBSERVATIONS Heavy-duty trucks are a significant and growing source of GHG emissions in Canada, with emissions from freight having increased by 154% since 1990. GHG emissions from heavy truck and rail sources make up 78% of emissions growth from the transportation sector since 1990.128 There is a need to encourage lower emissions solutions including hydrogen fuel cell applications, but it is early stage with a limited number of pre-commercial demonstrations and related activities at present. 2019 HYDROGEN PATHWAYS 46 3 - TRUCKS Due to range limitations and battery weight penalty, battery electric vehicles are not always a good fit for vehicles that operate over longer ranges with heavy payloads. Hydrogen fuel cell electric vehicles are a promising technology, offering longer range than battery electrics, similar fueling times to diesel vehicles, and limited weight penalty compared to battery electric trucks. Retrofit strategies are essential to support early stage demonstrations and pilot projects, but ultimate success for hydrogen fuel cell electric vehicle technology as an alternative to diesel technology lies with OEM engagement and investment. Truck OEMs need to be engaged and offering pre-commercial products as a first step on the path to deployment. In addition to products, the OEMs bring parts, service, and support, all of which are critical to sustainable fleet adoption. The recently announced Budget 2019 measure allowing first year full write down for hydrogen fuel cell electric vehicles to a maximum value of $55,000 plus sales tax could assist with early stage fleet purchases to 2022. 7.4 Materials Handling Vehicles GLOBAL The US is the global leader in the deployment of hydrogen fuel cell MHVs with its more than 20,000 MHVs outnumbering the rest of the global MHV population roughly twentyfold. Leading corporate adopters include Walmart (> 2,500), Kroger (>1,000), Procter & Gamble (>400), Home Depot (172), and Lowe’s (161).129 In 2017, Amazon committed to using hydrogen fuel cell MHVs in 11 of its distribution centres.130 The company noted that it planned to spend US$70 million on hydrogen fueling infrastructure, hydrogen, and fuel cells for MHVs and backup power in its first year of hydrogen use. Amazon also acquired the right to buy up to 23% of New York-based Plug Power, a hydrogen fuel cell technology provider with a primary focus on industrial MHV applications. There are a number of reasons why MHVs are the transportation niche where fuel cell vehicles have had the greatest success to date. Fuel cell MHVs operate in a duty cycle that is similar to incumbent technologies. Fueling times are comparable to propane- and natural gas-powered MHVs. There is no need for battery storage or the downtime associated with changing batteries. There are indoor air quality benefits as there are no combustion emissions. The significant uptake in the US is also underpinned by investment tax credits. First offered between 2008 and 2016, the materials handling credit was for 30% of the fuel cell value or US$3,000/kW) of fuel cell system output, whichever was less. This tax credit was reinstated in 2018 with a five-year term. 2019 HYDROGEN PATHWAYS 47 4 - MHVs CANADA Canada ranks second, globally, in hydrogen fuel cell MHVs with 470 MHVs being used at Walmart warehouses in Cornwall, Ontario, and Balzac, Alberta, as well as 74 MHVs in Canadian Tire warehouses in Brampton and Bolton, Ontario. For its Canadian warehouse operations, Walmart undertook a four-month trial at two warehouse locations before scaling up the use of fuel cell MHVs. The MHVs used in the trial incorporated fuel cell stacks produced by Ballard. The trial compared hydrogen fuel cell MHVs to lead acid battery MHVs. It included 18,000 hours of operation and 2,100 indoor refuelings. Key findings noted were improved performance with constant power output throughout a shift, even when operating at temperatures as low as -29°C, a 3.5% increase in productivity with fueling in approximately three minutes, space savings as battery storage and charging areas were eliminated, GHG reductions of 530 tonnes of CO2 per year, and projected fuel savings of $2 million over seven years. 131 The Canadian Tire started with hydrogen fuel cell MHVs in Brampton with hydrogen production using an electrolyser. When news of the company’s plans to take a similar approach at its new Bolton location reached the local community in 2014, concerns were raised regarding hydrogen safety, forcing the company to delay the Bolton project.132 Two years later, Canadian Tire received approval to proceed with the Bolton project including the use of hydrogen fuel cell MHVs and onsite hydrogen production.133 The facility is within 500 meters of a residential area. As project approval was under the jurisdiction of Ontario’s Technical Standards and Safety Authority (TSSA), there was no requirement for public notice or local city council approval. Without a formal opportunity for public review and comment, the approval process was seen as lacking in transparency for local residents, according to the local councillor. 134 OBSERVATIONS While modest in terms of energy demands compared to other transportation applications, MHVs can provide an entry point for organizations to gain experience and build confidence with hydrogen and fuel cells. In summarizing its MHV trial findings, Walmart noted that it was already, “exploring the possibility of equipping the shunt trucks on our site with hydrogen fuel cells and expanding the use of this technology to our other distribution centres.” 135 Building familiarity that can support expanded uses is an important outcome of hydrogen fuel cell MHVs. The use of hydrogen in new applications in communities points to the need for public education and for resources that can be used at the community level to increase awareness and build understanding of the benefits of hydrogen use. While the Canadian Tire experience illustrates that a well-defined approval process was in place to ensure the technical aspects of the project were reviewed, there does not appear to have been much advance consideration given to societal aspects of the project. The resulting two-year delay would have created a cost burden for the project proponent as well as opening up a period in which speculation and potential misinformation could spread. Ideally, a project of this nature should enhance reputation, the resulting negative local feedback would have had the exact opposite effect. 2019 HYDROGEN PATHWAYS 48 5 - RAIL 7.5 Rail Early projects and analyses from around the world suggest that hydrogen fuel cell technology holds great potential as a zero emission option for regional commuter trains and local trams. The first projects are underway with a hydrogen fuel cell electric tram in operation in Tangshan in the northern province of Hebei since late 2017. Manufactured by the China Railway Rolling Corporation, the three-car passenger tram can travel 40 kilometers at a maximum speed of 70 kilometers per hour.136 The fuel cell power module was supplied by Ballard. Germany has the world’s first regional hydrogen fuel cell-powered train. Since September 2018, two Coradia iLint low floor passenger trains have been operating along a 100kilometer inter-city route in fixed schedule service in Lower Saxony in northwest Germany. The trains have a 1,000 km range on a full tank of hydrogen, a top speed of 140 km per hour, and they operate on non-electrified rail lines. Canada’s Hydrogenics has a 10-year contract worth more than €50 million to supply, service, and maintain the fuel cell power systems for the trains137 which were manufactured by Alstom. Within the scope of the project, there is a plan to expand and add another 12 hydrogen fuel cell trains by 2021.138 The project received funding support through Germany’s National Innovation Program for Hydrogen and Fuel Cell Technology.139 Other early stage projects have also been announced. The United Kingdom has a project to convert a HyFLEX electric train to hydrogen fuel cell operation with Ballard supplying the heavy-duty fuel cell system. Testing and demonstrations are planned for mid-2019. Ballard is also working with Siemens to jointly develop fuel cell systems for Siemens’ Mireo regional and commuter trains within the scope of a project receiving €12 million in funding from the German government.140 Alstom and British company, Eversholt Rail, will also collaborate to convert existing Class 321 trains to hydrogen fuel cell operation. This project is planned for 2022 implementation. In early 2018, the United Kingdom’s Rail Minister challenged the rail industry to develop decarbonization plans with the objective of removing diesel-only trains from the network by 2040. 141 The French city of Auxerre has also announced its plan to have the local passenger train line operating on hydrogen by 2022 with the involvement of Alstom as the train manufacturer. And, Ballard CANADA As mentioned, both Ballard and Hydrogenics are starting to benefit from emerging interest in hydrogen fuel cell-powered trains and trams. Each company has a heavy fuel cell product that is suitable for rail use. Within Canada, Ontario regional transit agency, Metrolinx, recently commissioned work to assess the technical feasibility of operating hydrogen-powered regional GO commuter trains. Metrolinx is committed to electrifying the GO train network by 2025, transitioning away from diesel trains. The expert feasibility study was completed in February 2018 with four key findings:142 o It should be technically feasible to build and operate the GO Transit network using hydrogen fuel cell-powered rail vehicles. 2019 HYDROGEN PATHWAYS 49 5 - RAIL o The overall lifetime costs of building and operating the “Hydrail System” with hydrogen fuel cell-powered trains is equivalent to that of a conventional overhead electrification system for rail. o Hydrail implementation on the scale of the GO network has never been undertaken and presents a different set of risks compared to conventional electrification. o There are a number of potential benefits including: (a) lower environmental impact as fewer trees would need to be removed along rail corridors; (b) the ability to commence electrified services earlier than 2025; (c) the opportunity to electrify the entire GO network and the resulting benefits related to GHG emissions, air pollution, and noise as diesel locomotives are phased out; and (d) creation of a catalyst for broader hydrogen adoption across the provincial economy. Based on these favourable findings, Metrolinx has taken several follow up steps including requesting concept designs for bi-level train cars from OEMs and issuing a request for proposals for the design of a hydrogen fuel cell-powered locomotive.143 OBSERVATIONS The use of hydrogen in limited range regional passenger train operations can be supported with a limited number of hydrogen fueling sites. Germany’s Coradia iLint trains are initially being refueled using a mobile gaseous hydrogen refueler, but the plan is to install a fixed hydrogen fueling station in 2021 in conjunction with the arrival of the additional 12 trains. The station is projected to cost €81 million.144 7.6 Marine GLOBAL The International Maritime Organization (IMO) is a United Nations agency that is responsible for the safety and security of shipping, and for the prevention of pollution by ships. Starting in 2005, IMO regulations came into force requiring reductions in smogrelated sulphur oxides, so as to lessen the environmental impact of the marine sector. Now the IMO is turning to climate change emissions with an initial strategy adopted in April 2018 to move toward, “a pathway of CO2 emissions reductions consistent with the Paris Agreement temperature goals.” 145 A GHG reduction target has been set requiring a 50% reduction in GHG emissions by 2050 compared to 2008 levels. This IMO action may start to open up a pathway for hydrogen use in the global marine sector. 2019 HYDROGEN PATHWAYS 50 6 - MARINE Hydrogen fuel cells have the potential to be used for zero emission motive or auxiliary power on ships. In addition, shore-side equipment operating on hydrogen could reduce port operation GHG emissions and lessen local air quality and noise impacts. According to the Hydrogen Council, fuel cells are, “most relevant for passenger ships such as river boats, ferries, and cruise ships”146 as passengers will value lower local emissions, less noise, carbon benefits, and less water pollution. Early hydrogen fuel cell marine projects are at various stages of development. The first North American project is Golden Gate Zero Emission Marine’s ferry project supported with US$3 million in state funding. When launched, the new 84-passenger, 74’ catamaran will operate in San Francisco Bay. It will be the first fuel cell vessel in the US and the first commercial fuel cell ferry in the world. Testing is expected by mid-2019 with entry into service in late 2019.147 Hydrogenics is supplying the hydrogen fuel cell system. The demonstration project will have a focus on the commercial and regulatory aspects of deployment. In Norway, ferry operator, Boreal, announced in early 2018 that it was partnering with technology provider Wärtsilä to jointly develop a hydrogen-powered ferry. The parties plan to build a full electric ferry and a ferry that operates on 50% hydrogen. The vessels are scheduled for completion in 2021 when they would be put into operation on an existing passenger ferry route in Norway.148 The government of Norway aims to create the world’s first zero emissions control area by 2026, extending the emissions control area concept beyond sulphur oxide emissions to encompass all emissions from marine sources in local waters. Increased air pollution from cruise ships in the country’s fjords is one driver of this policy development. Ballard has signed a memorandum of understanding with Swedish-Swiss electrification and automation controls corporation, ABB, to support a multi-year collaboration for the development of fuel cell systems to power marine applications with an initial focus on cruise ships. Their work will focus on megawatt (MW)-scale fuel cell engines for ships which Ballard estimates could be worth anywhere from US$1 million to US$24 million per engine, depending on whether the load was for accommodations only or full ship propulsion. More than 40 cruise ships are built every year according to Ballard.149 ABB had previously announced it was delivering its first fuel cell system for Royal Caribbean in 2017. ABB is also a participant in the EU’s €3.7 million MARANDA research project focused on validating the ability of a hydrogen fuel cell-based hybrid ice-breaking research vessel to operate in in arctic conditions. This project is ongoing until March 2021.150 In parallel, the HySeas project involves building the world’s first sea-going, hydrogen fuel cell car and passenger ferry in Scotland. EU funding of €9.3 million was announced in 2018 and it will contribute nearly three-quarters of the €12.6 million project cost.151 Ballard will supply the heavy fuel cell system. 2019 HYDROGEN PATHWAYS 51 6 - MARINE CANADA At present, there is no hydrogen-related marine activity underway in Canada. KEY OBSERVATIONS Hydrogen as a potential zero emission fuel for shipboard motive and auxiliary power and/or for shoreside operations is not included in current marine policies, regulations, standards, and practices. As the responsible regulatory party for the global marine sector, the IMO is the body that approves alternative fuels for marine use, but it does not have standards for hydrogen use. This creates a problem for vessels that want to use fuel cells onboard as the absence of codes and standards forces an expensive and lengthy alternative fuel approval process.152 By comparison, the use of liquefied natural gas as a motive fuel for ships is relatively new, but there have been targeted activities that have led the IMO to develop a standard as well s instructions for its use. The introduction of an alternative fuel into a sector that is global in nature is a complex, long-term, high investment undertaking. Vessel design, safe operation, bunkering, and access to ports all bring a myriad of challenges and issues that must be addressed. First among these challenges is bringing together non-traditional collaborators involved in the design and supply of ships and hydrogen fuel cell technologies, as well as hydrogen producers, regulators, local authorities including port authorities, governments, and other organizations. 8.0 Community Pathways There are three hydrogen and fuel cell pathways that could provide benefit at the community level. These pathways are injecting renewable hydrogen in the natural gas grid, so as to start to decarbonize heat, using micro-CHP technologies for home heat and power, and using integrated energy systems including P2G applications for remote communities. Descriptions of each of these three pathways follow. 8.1 Heat GLOBAL There is global interest in decarbonizing space and water heating in homes and in buildings. At present, either natural gas and/or electric power are often used to generate heat at the community level. Efforts in recent years have focused on increasing the renewable share of electricity production, so as to reduce the carbon intensity of the electricity supply. There is now also emerging interest in the potential to reduce the carbon intensity of energy distributed via the natural gas grid either through the introduction of renewable natural gas (RNG) or of hydrogen that is produced from renewable sources or from SMR with carbon capture and sequestration (CCS). 2019 HYDROGEN PATHWAYS 52 7 – HEAT There are two hydrogen pathway options that are considered to be viable for the natural gas grid – low level hydrogen blends and full conversion to synthetic natural gas produced from renewable hydrogen combined with carbon monoxide or CO2 through a methanation process. Converting existing natural gas pipelines and local distribution lines to 100% hydrogen would be difficult as it would involve an extremely disruptive, largescale effort to replace materials such as carbon steel transmission pipelines that would be vulnerable to hydrogen-induced embrittlement that can accelerate the growth of micro cracks and compromise pipeline safety.153 Another aspect that must be considered are the appliances connected to the natural gas grid in homes and buildings. These appliances have been designed based on specific gas quality parameters, so any introduction of hydrogen beyond low level blends would also require assessing appliance compatibility and appliance change over. It should be noted that purpose-built hydrogen pipelines do exist, but these are unrelated to natural gas distribution grids. Shell estimates there are an estimated 4,500 kms of hydrogen pipeline globally with the US having 2,600 km and Canada having 150 km of hydrogen pipelines154 to supply industrial users. For low level hydrogen blending in the gas grid, the amount of hydrogen allowed is typically limited by country-specific standard and regulations. Different components within the transmission, local distribution, and end use parts of the gas grid will have different tolerances and operating considerations. The graphic below illustrates a range of allowable limits from 0% to 12% by volume for hydrogen injection in select European countries. Germany has identified two potential blend levels with a lower level for locations where there is a compressed natural gas fueling station for vehicles downstream of the injection point. Figure 10 – Maximum Hydrogen Injection Limits in Natural Gas Grid (by volume/molar percent) 155 2019 HYDROGEN PATHWAYS 53 7 – HEAT There have been several European projects involving low level hydrogen injection based on P2G strategies where surplus renewable power is used to produce hydrogen via electrolysis and the hydrogen is then injected into the grid. These projects include E.ON’s hydrogen production from a 2MW wind power with grid injection in Germany (2011), engie’s GRHYD project that includes a five-year demonstration of hydrogen injection up to 20% (2013), and Cadent’s HYDEPLOY project demonstrating a hydrogen blending based on a 0.5MW electrolyser system for hydrogen production (2016). In all cases, these are early stage demonstrations that aim to showcase technical and economic viability. A 2017 EU FCH JU overview study assessing these projects found that, “Besides supporting the integration of renewables, hydrogen-to-gas grids offers an efficient storage solution with existing infrastructure.” 156 Similarly, in a 2017 study, Canada’s National Research Council (NRC) found that blending low levels of renewable hydrogen into the natural gas grid is a, “…low-cost, early stage solution for monetizing electricity surpluses in countries with highly developed natural gas infrastructure.” 157 CANADA Canada has one of the world’s largest pipeline networks delivering natural gas from producing areas to markets in both Canada and the US. The total energy capacity of Canada’s natural gas grid is much larger than that of its electrical grid,158 showing its potential significance as an existing infrastructure asset that could be leveraged for future benefit. According to the Canadian Gas Association (CGA), the natural gas delivery system provides 36% of Canadians’ energy needs and natural gas is the largest source of energy used for space heating in homes and buildings in Canada.159 In May 2016, the natural gas distribution industry announced targets of 5% by 2025 and 10% by 2030 for blending RNG into the gas grid.160 The codes, standards, and regulations (CS&R) for RNG injection are much more advanced than CS&R for hydrogen injection based on more years of experience with RNG and many RNG projects globally. Canada has North America’s first large-scale, utility P2G project with the 2.5MW Markham Energy Storage project. Hydrogen is produced from surplus intermittent power and injected at a city gate station into the natural gas grid. With respect to broader industry actions relating to the potential use of hydrogen to reduce carbon in the natural gas grid, early efforts have focused on the development of a technical guideline for hydrogen blending based on a Canadian-US joint industry taskforce. The results of this collaboration have not been released publicly. There is no specification for natural gas quality in Canada. TransCanada’s natural gas supply contracts with utilities do not directly limit the amount of hydrogen in the natural gas supply, but they are based on heating values which inherently limit hydrogen to 5% by volume at the lower heating limit of 36 megajoules per cubic meter.161 OBSERVATIONS The new federal Clean Fuel Standard will require progressive reductions in the carbon content of fuels including gaseous fuels and fuels used for space and water heating. The proposed regulation aims to be non-prescriptive, providing flexibility for fuel suppliers 2019 HYDROGEN PATHWAYS 54 7 – HEAT including natural gas utilities to determine how best to meet the carbon intensity targets. RNG, hydrogen or synthetic natural gas could be used to lower the carbon content of natural gas, although RNG is clearly at the most advanced stage of these three options in terms of technical review, technology availability, cost assessment, and the CS&R framework. As Canada’s natural gas distribution industry is regulated, it is critical that any activities that consider hydrogen blending in the natural gas grid also include actions to address the regulatory framework within which gas utilities operate. There are legislative limitations on what investments utilities can make to reduce GHG emissions on behalf of their customer base and any proposed spending related to emissions reduction would be subject to the regulatory review process. Further examination of the potential for hydrogen blending in the natural gas grid is dependent on direct engagement of the gas distribution industry along with other stakeholders including government, academia, and other industry stakeholders. In past federal submissions, the CGA has indicated that hydrogen technologies have merit has an option to reduce the carbon intensity of natural gas. 8.2 Micro-CHP GLOBAL Another potential hydrogen pathway is the use of small stationary micro-combined heat and power (micro-CHP) fuel cell systems for distributed residential and commercial heat and power in communities. These types of systems can operate on a range of fuels depending on the fuel cell technology involved. They are typically fairly small in size and they can reduce energy consumption by converting input energy to heat and power in a highly efficient fashion, especially when waste thermal energy is recovered. Large scale cogeneration plants have been operating for several decades employing engine and turbine technologies. The use of micro-CHP technologies with equipment scaled to meet individual home or building energy demand is a newer application, particularly fuel cell micro-CHP systems. Japan is the global leader in encouraging the development and use of hydrogen fuel cell micro-CHP systems. With a multi-year funding commitment to support residential installations through its ENE-FARM program, there are now more than 264,000 systems installed in Japanese communities. These units are “fed” by a hydrogen-blend fuel consisting of 75% hydrogen, 20% CO2, 3% nitrogen, and 2% methane. Local natural gas distribution company, Osaka Gas, has developed a multi-stage proprietary process involving SMR of natural gas and the application of catalyst technologies to increase the proportion of hydrogen in the fuel stream supplying the micro-CHP units.162 2019 HYDROGEN PATHWAYS 55 8 – micro-CHP The key drivers for Japan’s program are national CO2 reduction goals. Following an initial demonstration project in 2005-06, it was determined that each household could prevent 1.2 tonnes of CO2 emissions by switching to micro-CHP. With annual sales volumes now at an estimated 40,000 units, the government plans to end the program and the installation subsidies in March 2019. The EU and Germany, in particular, have also had a focus on micro-CHP hydrogen fuel cell applications. Germany ranks second to Japan with 1,900 small stationary micro-CHP systems in use. Germany’s original Callux program provided €75 million between 2008 and 2015 to subsidize the installation of 500 micro-CHP systems in German homes. This was followed by the KFW433 program which started in 2016, offering grants of €5,700 to €28,000 for 0.25 kW to 5 kW systems for homes and commercial buildings. Between 2012 and 2021, the EU has allocated €142 million through its ene-field and PACE programs to support the installation of 3,800 micro-CHP systems in 11 European countries. Figure 11 - Micro-CHP for Residential Heat and Power 163 All of the programs mentioned involve the manufacturers of the micro-CHP system as an overriding priority is to bring sales levels to a scale where per-unit costs are competitive in the marketplace, so as to drive toward mass commercialization. The EU’s programs support four manufacturers each having an installed capacity of over 1,000 units per year164 which will allow them to test manufacturing techniques and identify savings from economies of scale. For the European and German programs, natural gas is used to supply the fuel cell and, depending on the fuel cell type, the natural gas can be used directly (solid oxide fuel cell) or a fuel reformer is needed to convert the natural gas to hydrogen (proton exchange membrane (PEM) fuel cell).165 There is also interest in eventually transitioning from fossil natural gas to RNG, synthetic natural gas or hydrogen within the scope of the European programs. 2019 HYDROGEN PATHWAYS 56 8 – micro-CHP In North America, the US DOE commissioned a study to demonstrate micro-CHP technology as an “underutilized” technology. Conducted between 2014 and 2017, key barriers identified included: (a) the lack of a value proposition with payback being longer than product life; (b) system complexity issues which affected customers, installers, and distributors; and (c) a lack of regulatory consistency in different states with these systems not typically being eligible for net metering where surplus electricity is sold back into the system as natural gas was not identified as an eligible fuel.166 CANADA In Canada, there is little current activity related to hydrogen fuel cell micro-CHP systems. The natural gas distribution industry has suggested that micro-CHP technologies have potential with their interests centring on micro-CHP systems that operate on natural gas. In 2015, former Ontario gas distribution company, Union Gas, noted that current microCHP technologies were too expensive and not scaled appropriately for Canadian households. They cited technology from Japanese company, Aisin, as providing electrical output of only 1.5kW compared to the 2 kW to 2.5 kW needed for Canadian households.167 The Saskatchewan Research Council has assessed micro-CHP technologies for local use. They also identified the lack of eligibility for net metering programs as negatively affecting project economics. Regulatory barriers cited included the requirement for CSA approval of equipment which, in effect, limits international technologies from entering the market without proven demand. They did, however, note three positive aspects – micro-CHP systems, at scale, could reduce demand on the provincial power grid which would be particularly beneficial at peak electrical demand times; electrical transmission line losses would be reduced as power is produced on a distributed basis at point of use; and as over 90% of Saskatchewan buildings are connected to the natural gas grid, the use of microCHP systems operating on natural gas could enhance demand as power load is added.168 Canada’s hydrogen and fuel cell sector also has little focus on small stationary systems. In a 2017 survey of 124 sector members, only 5% of those who responded reported working in the area of small stationary systems with outputs of 50 kW or less.169 Further, unlike in the global market where stationary fuel cells made up 77% of fuel cell sales in 2018,170 in Canada, sector members reported that sales of all sizes of stationary fuel cell systems comprised only 8% of total sales in 2017.171 One Canadian company that is active with micro-CHP is Laval-based, Hyteon. The company manufactures alternative methods of electricity production based on fuel cells for residential use. Hyteon’s micro-CHP units have been tested in Canada, Japan, and the EU, showing efficiencies, durability, and reliability. OBSERVATIONS Hydrogen fuel cell micro-CHP availability, cost, and appropriateness for Canadian household use are important issues to understand. Are there technologies that are scaled for Canadian household heat and power needs? Are North American manufacturers 2019 HYDROGEN PATHWAYS 57 8 – micro-CHP interested in supplying these technologies? If so, what are the barriers that need to be addressed including barriers associated with the supply of hydrogen? If Canadian households are not a good fit for available hydrogen fuel cell micro-CHP systems, are there commercial opportunities within Canadian communities that should be examined? 8.3 Remote Communities GLOBAL Remote communities are typically defined as communities that are not connected to the electrical grid or the natural gas distribution system. These communities’ electricity supply needs are primarily met using diesel generators which are a reliable and familiar technology. Micro-grids are used to balance local supply and demand. Reliability is a critical requirement, yet these remote energy systems are uniquely vulnerable due to accessibility issues, high fuel costs, extreme weather, local capacity to maintain infrastructure, and the lack of backup options from neighbouring communities. Limited energy supply may also affect growth. The idea of integrating renewable sources of energy into remote communities has great appeal as it could reduce diesel consumption and GHG emissions, as well as lowering the cost of electricity and improving energy self sufficiency and security. Hydrogen fuel cells and electrolysers are seen to offer a promising energy storage pathway which could enable greater use of intermittent renewable power from wind, solar, and other sources. Surplus intermittent power could be used to generate hydrogen from water electrolysis with the hydrogen stored and then supplied to a fuel cell to produce power when needed. This hydrogen system would provide zero emission energy from a self-contained system and it could also open up the opportunity for direct use of the hydrogen in the local community. The hydrogen could be stored onsite in, for example, a tube trailer, with no leakage and no parasitic losses.172 Hydrogen fuel cells are known for their reliability in remote applications with the remote market development focus to date having been on the use of fuel cells for telecom backup. Globally, more than 9,000 fuel cells are used for this application according to the IPHE.173 The IEA through its Hydrogen Implementing Agreement had an active working group focused on renewable-based hydrogen demonstration projects in remote and island communities. Their work considered early stage experiences in seven remote locations in the United Kingdom, Norway, Iceland, Spain, New Zealand, and Canada with reporting in 2010. One key finding of the IEA work was that hydrogen systems can reduce operating costs for communities, but initial capital and installation costs are often high. One-of-a-kind projects may make it more difficult to source technologies and suppliers are less interested in working on small project when larger opportunities are available. A positive 2019 HYDROGEN PATHWAYS 58 9 – REMOTE finding related to local economic development through tourism and the opportunity these kinds of projects offer as showcases that bring visitors to the community. Key barriers identified were: (a) a lack of mass-produced, reliable, off-the-shelf hydrogen systems; (b) a lack of funding; (c) systems approval and permitting challenges; and (d) challenges in design, installation, and maintenance due to location and a lack of local expertise.174 CANADA Canada has an estimated 280 remote and northern communities that are not connected to the grid.175. With a combined population of approximately 220,000, these communities are distributed across the country. Many are Indigenous communities. There have been many efforts over the past several decades to help remote communities reduce their reliance on diesel and these efforts are ongoing. A 2016 Conference Board report identified roughly 40 funding programs in place at that time to conduct research, run pilot projects, and improve access to electricity in remote Canadian communities.176 Hydrogen technologies offer a potential pathway to local energy storage and the integration of renewables, but it is important to recognize that the integration of hydrogen solutions represents only one part of a complex challenge. Two projects Canadian projects have demonstrated how hydrogen technologies can facilitate energy storage and bring benefit to remote communities. The Hydrogen Assisted Renewable Power (HARP) demonstration project in Bella Coola, British Columbia, was commissioned in September 2010. Being more than 400 kms north of Vancouver and with a population of 1,900, Bella Coola was not connected to the provincial electricity grid. The community generated power from diesel generators and had a run-of-river power facility, although it had no ability to store surplus hydro power.177 The project involved the conversion of surplus hydro power into hydrogen via water electrolysis, compressed hydrogen storage at 20 MPa in tanks, and reconversion back to power via a 100kW PEM fuel cell at peak demand times. A micro-grid controller was also installed to balance electrical load from hydro power, diesel generation, and the fuel cell. The project aimed to show how the community could reduce diesel consumption by 200,000 litres and reduce GHG emissions by 600 tonnes per year. The Ramea Project involved the installation of a hybrid system including three new wind turbines plus hydrogen storage and power generation to integrate with the town’s existing 2.7MW of diesel generation and 390kW of wind power. Ramea is an off grid community located on Northwest Island, just off the south coast of Newfoundland with a population of 450. The wind/hydrogen/diesel project was commissioned in 2010-11 at a total cost of $11.8 million.178 Excess wind energy (approximately 50% of the wind energy generated) was used to produce hydrogen from water electrolysis with energy storage that was capable of supplying two hours of average community demand. OBSERVATIONS There is no single, readily available solution to addressing the energy needs of remote communities. Nonetheless, there may be local benefits from deploying hydrogen technologies that can operate on surplus intermittent renewables, store energy at the 2019 HYDROGEN PATHWAYS 59 9 – REMOTE local level, and later employ the produced hydrogen to generate power in a stationary application or for direct use in mobile, backup or portable end uses. Hydrogen is not used in remote communities and there may be little or no understanding of its benefits, properties, and potential uses. The IEA study involving seven remote communities participating in renewable-based hydrogen demonstration projects noted that community leaders need to be prepared to address unsubstantiated claims related to hydrogen safety and reliability as these could otherwise undermine project success. They noted the importance of taking a careful approach as people can be suspicious of what is new. Further, local residents’ concerns may be, “exacerbated by experts who do not want to engage with the general public or do not operate openly.” 179 It was also noted that the direct use of hydrogen in vehicles in the community was an element in some projects that was favourably received. The IEA study also highlighted that a coordinated approach is necessary to demonstrate market potential and to ensure the development of local expertise. Joint procurement of hydrogen systems or components was also recommended as this may encourage the development of modular designs which could reduce costs. While the energy demands of remote communities can vary significantly, if a modular approach was taken to equipment design that could help to make these systems scalable and, in turn, potentially more attractive to equipment manufacturers. National, provincial, and territorial governments can act to support remote communities that seek to deploy hydrogen technologies by: (a) facilitating the development of CS&R appropriate to the size of projects that may be undertaken in off grid locations; (b) encourage and support training; (c) ensure that any funding support takes a holistic approach, so that it encompasses and mandates local education, communication, and outreach activities; and (d) encourage partnerships and project clustering, rather than unique approaches that cannot readily be replicated in other communities.180 9.0 Industrial Pathways GLOBAL There are many potential pathways for hydrogen use in the industrial sector as hydrogen is already a major input for industrial processes. Hydrogen is used in refineries for hydrotreating, hydro-cracking, and desulphurization. With increased demand for low sulphur fuels and more heavy crude in the oil supply mix, there is also growing demand for hydrogen. In the past, most of the hydrogen needed at refineries was produced onsite as a by-product. Today, there is an increasing need for hydrogen to be produced specifically for refineries.181 Hydrogen is also a major feedstock for chemical production. One of the largest applications is the production of ammonia (NH3) by combining nitrogen with hydrogen. Globally, almost 90% of ammonia production goes into fertilizer.182 2019 HYDROGEN PATHWAYS 60 10 - INDUSTRIAL Methanol production also relies on hydrogen as a chemical input. Shell estimates that 10% of global hydrogen demand is for methanol which can be used directly as a fuel, in a methanol fuel cell or further processed into fuel additives, formaldehyde, and other derivatives. Figure 12 - Current Use of Hydrogen in the European Union 183 There are a range of options to reduce the carbon intensity of industrial processes. With respect to hydrogen, the possibilities depend on the type of industrial operation and the number and cost of competing alternatives. Where hydrogen is already in use as a process input or chemical feedstock, replacing SMR-produced hydrogen with hydrogen from renewables can provide a direct, lower carbon replacement. Similarly, hydrogen can be used in place of fossil fuels to produce heat. It can be combusted in a burner or used in a fuel cell. In heat applications, hydrogen complements electrification as electric heaters, boilers, and furnaces become less efficient at higher temperatures. For high grade heat, hydrogen may offer benefits as it can, “…generate high temperatures using process setups similar to today’s.” 184 Hydrogen can also replace more carbon-intensive inputs in applications where it is not currently used. Steelmaking is a key area of interest in this regard. The global steel industry accounts for 7% of CO2 emissions.185 This energy intensive industry currently relies on metallurgical coal for iron ore reduction, the first stage in the steelmaking process in which coke from coal reduces iron ore in a blast furnace to produce molten iron. Hydrogen from renewables could be used instead to reduce iron ore, resulting in a significant reduction in CO2 emissions from the steelmaking process. 2019 HYDROGEN PATHWAYS 61 10 - INDUSTRIAL One of the first projects use hydrogen in steelmaking will be the voestalpine project in Linz, Austria. It aims to demonstrate the use of hydrogen at different stages of the steelmaking process as well as testing the potential for using surplus hydrogen to produce power for reserve markets. The large-scale, multi-partner project will cost €18 million, two-thirds of which will be provided by the EU’s FCH JU.186 The first phase focused on the installation of a large-scale 6MW PEM electrolysis production facility, scheduled to open this Spring. The next step will be to assess how best to use the hydrogen in the steelmaking process. According to voestalpine AG, the owner of the steel mill, “The prerequisite is the provision of sufficient energy from renewable sources and at competitive prices.” Industrial pathways for hydrogen use offer great potential, but cost is a critical consideration given the scale of operations and the need to remain competitive. Another early stage, large-scale industrial project was launched in early 2018. This project focuses on refinery use of zero emission hydrogen. The €20 million Refhyne project at Shell’s Rhineland refinery in Germany will receive 50% funding from the EU’s FCH JU.187 A 10MW PEM electrolysis facility is being built, in part, to assist in the testing of PEM technology on a large industrial scale. The hydrogen that is produced will be used for processing and upgrading products at the refinery. Shell also aims to explore sales for hydrogen applications in other sectors. The electrolysis plant is scheduled to be in operation in 2020. Another area of opportunity involves combining carbon free hydrogen with sequestered CO2. The resulting product would be a synthesis gas that could be in various processes in place of fossil fuels. At present, synthesis gases are produced from natural gas or from coal for use in processes such as plastics manufacturing, and the production of ammonia and methanol. The cost of CCS is one issue that would have to be addressed if this strategy were to be pursued. It should also be noted that the use of hydrogen and captured carbon to produce chemical feedstocks is still considered to be at the R&D stage with early pilot projects launched. For instance, Germany’s thyssenkrupp has a project that combines carbon from steel production off gases with hydrogen from surplus renewable power to produce chemicals. The project is still in the concept phase with at-scale application not expected for 15 years.188 CANADA Canada’s industrial sector is a prime driver of economic growth and a major source of GHG emissions. In 2014, the sector accounted for about 37% of Canada’s emissions with the majority coming from the oil and gas operations.189 Canada is the fourth largest oil and gas producer sector in the world. The 2016 federal Pan-Canadian Framework on Clean Growth and Climate Change identified actions to support long-term clean growth and the transition to a low-carbon economy including actions to reduce industrial emissions and to transform how some industries operate. Similarly, a 2018 report released by the Generation Energy Council entitled, Canada’s Energy Transition, identified four energy transition pathways including the use of renewable and clean fuels, and the production of cleaner oil and gas. This report summarized what was heard in a dialogue-driven process with more than 380,000 Canadians including a roundtable with 2019 HYDROGEN PATHWAYS 62 10 - INDUSTRIAL oil and gas industry representatives. These participants identified the importance of achieving ongoing reductions in the carbon intensity of oil and gas operations. More broadly, hydrogen was highlighted in the report as having the potential to play an important role as both a fuel and an energy storage application.190 The energy storage benefit of hydrogen has been demonstrated over five years at Glencore’s Raglan Mine in Nunavik, northern Québec. A 3MW Arctic-grade wind turbine was installed in 2014 along with a micro-grid and an energy storage facility including an electrolyser, high pressure hydrogen storage tanks, fuel cells, and lithium-ion batteries. Since 2014, the remote nickel mine has reduced diesel consumption by 10 million litres and abated 28 kilotonnes of CO2, as they have increased reliance on renewable energy with power-to-hydrogen gas storage. This original project received $7.8 million in NRCan ecoEII funding191 and with the recent announcement of another $3.9 million in funding from NRCan’s Energy Innovation Program, the project capacity will be doubled with learnings to be shared with local mining operations and Inuit communities.192 OBSERVATIONS Given its major role as a contributor to Canada`s economic prosperity, the oil and gas sector will play an important role in transitioning to a lower carbon future. According to the Generation Energy Council findings government needs to set a clear definition of clean technology, so that the oil and gas can innovate and deploy new technologies to reduce carbon emissions from operations. Industrial investments are large and are typically made on a long planning horizon. Investments need to support Canadian industry`s ability to compete and to maintain a sustainable advantage. Investments in hydrogen-related technologies must be considered in the context of investment planning and long-term competitive position. Industrial sectors advance on a global basis. Efforts that support information and results sharing from other jurisdictions can assist with future industrial actions in Canada. 10.0 Power Pathways The use of hydrogen fuel cells to produce power is a well-established pathway with the option to scale equipment from small-kW level systems to medium or large MW-scale installations. At the small end of the range, fuel cells are typically used to provide onsite power for individual buildings, while larger fuel cell-based facilities act as central power generation plants that integrate with the local electricity grid. 10.1 Stationary Power GLOBAL Approximately 40% of all fuel cells sold in the past five years have gone into stationary power applications.193 Most of this installed capacity operates on natural gas, rather than on hydrogen. Stationary fuel cells are efficient, quiet, zero emission at point of generation, and they can provide emergency backup, critical or primary power without the efficiency 2019 HYDROGEN PATHWAYS 63 11 - STATIONARY losses or the vulnerability of connection to long-range power transmission lines. Fuel cells are scalable and they take up less space compared to other clean power production technologies. For example, a 10MW fuel cell installation can be installed on an acre of land, compared to the ten acres needed for equivalent output solar power or the 50 acres needed for equivalent output wind power.194 The US is a leader in large stationary fuel cell installations for power production. According to the IPHE, the US has an installed base of 240MW.195 There are fuel cell power plants in more than 40 states, providing power to commercial and municipal operations. Many corporations have invested in fuel cells for primary and backup power including Adobe, Apple, AT&T, CBS, Coca-Cola, eBay, Google, Honda, Microsoft, and Walmart. California has the greatest number of stationary fuel cells, while Connecticut and Delaware had the largest scale installations according to the 2016 State of the States report. Investment tax credits have provided a major assist. As mentioned, in 2008 tax incentives were introduced to help offset the cost of fuel cells including those used for stationary applications. The credit was worth 30% of fuel cell value (or $3,000/kW of fuel cell system output, whichever was less) and it was offered until the end of 2016. In early 2018, the tax credits for stationary applications were reinstated for a five-year term.196 South Korea is also a leader in stationary fuel cell use for power production. South Korea reported having an installed base of 300MW at the start of 2018197 with most facilities being large multi-MW scale installations and using technology provided by two Korean companies – Doosan and POSCO which, prior to July 2018, had an agreement with American company FuelCell Energy to allow it to manufacture and sell FuelCell’s products in Asia.198 As in the US, most fuel cells in South Korea operate on natural gas. The country’s extensive use of fuel cells for power production is driven by its Renewable Portfolio Standard which recognizes fuel cell systems as “renewable,” regardless of the type of input energy used. Increasingly demanding renewable power targets apply to power producers with facilities over 500MW. The 2018 target was for 6% renewable power; by 2030, the renewable target will reach 20%.199 This policy helps to assure ongoing demand for fuel cell-based power production in South Korea. South Korea has the world’s largest fuel cell power plant in Hwasung City – a 59MW plant in operation since 2014. While most domestic stationary power facilities operate on natural gas, a new 50MW facility at a chemical plant in South Chungcheong will operate on hydrogen from industrial by-product.200 In addition, Kolon Water and Energy operates a 1MW fuel cell system at its refinery site in Daesan. Surplus hydrogen from the refinery supplies the fuel cell facility which started operating in 2015. Following a two-year pilot project, Kolon planned to look at investing in three 5MW sites, all of which would use fuel cell technology from Hydrogenics, Kolon’s joint venture partner.201 Methanol-powered fuel cell systems are another type of stationary application. Ballard has more than 100 of these systems installed on rooftops in major cities around the world to provide backup power to critical telecom sites.202 2019 HYDROGEN PATHWAYS 64 11 - STATIONARY CANADA Canada already has a very clean power production portfolio. Among OECD countries, Canada has the second highest share of electricity generated from renewable and nonemitting sources. Canada ranks second in hydroelectric power production and is the world’s eighth largest wind power producer.203 With tremendous fossil and renewable natural resources providing a wide range of alternatives for large-scale power production, there is a lot of competition for fuel cell technologies to produce power at scale. At the commercial and institutional levels, there have been a limited number of stationary fuel cell projects in Canada. For example, in 2008 Enbridge launched an integrated energy recovery project involving the capture of waste pipeline energy which was used to operate a fuel cell. The 2.2MW of clean power that was produced was equal to the power demands of 1,700 homes.204 The project received funding support from Ontario and from the federal government. Power production was limited, however, as the company could only sell into the Ontario power system at a non-favourable hourly price. Enbridge had identified another 40 to 60MW of similar types of projects in their system, but investment would depend on securing a higher power price for the projects to be viable.205 The Hydrogen Village initiative in Toronto encompassed the use of a stationary fuel cell to provide heat and power for 12 student townhouses, backup power for a Bell Canada switching station in Burlington, and power for a space-constrained internet provider located in a Toronto high-rise. This demonstration project concluded in 2010. OBSERVATIONS Hydrogen fuel cell technologies offer significant benefits with no emissions at generation, little noise, and a relatively small equipment footprint, yet interest in these technologies has not advanced in Canada since the early demonstrations more than ten years ago. An analysis recently conducted by Queen’s University of backup power supply system options for the Ontario Government Emergency Call Centre compared a diesel generator/battery bank system with a 100kW PEM fuel cell system over a 20-year life. A key finding was that it would be cost effective to replace the diesel/battery system with a fuel cell if the battery bank run time was greater than one hour in times of demand. The study’s author concluded that, “…backup power systems could be deployed on a much wider scale” as they had a positive net present value and they could use Ontario-grown technology from Hydrogenics. Further, problems associated with diesel fuel storage would be eliminated.206 Perhaps the backup power option for stationary fuel cells may be one of the most promising pathways to consider, given the increasing need for service continuity during extreme weather situations. 2019 HYDROGEN PATHWAYS 65 12 – POWER-TO-GAS 10.2 Power-to-Gas GLOBAL P2G applications offer another hydrogen pathway to consider. These applications are of increasing importance where intermittent and fluctuating renewable power is produced from sources such as wind, solar, and tidal. As these sources of power make up a growing share of total power generation, it is increasingly challenging to balance supply and demand, and either fully utilize or store the available renewable power. Power grids need long-term scalable storage options to enhance grid stability and reliability, as well as to derive maximum benefit from renewable power production The concept behind P2G is that surplus renewable power from intermittent sources is used to produce hydrogen from water electrolysis. The resulting hydrogen gas can be integrated into the energy system in four ways: (a) it can be stored and then used in a fuel cell to produce power when needed; (b) it can be used directly for mobile or industrial applications; (c) it can be injected into the natural gas grid to reduce the carbon intensity of fossil natural gas; or (d) it can be combined with carbon monoxide, sequestered carbon or carbon from biomass in a methanation process to produce synthetic natural gas for a range of uses including RNG, energy inputs for industry, and green chemicals. Figure 13 - Power-to-Gas Economy-Wide Usage Pathways 207 Aspects of these P2G pathways are shown in the illustration above. Each of these different end use pathways can be labelled separately such as “power-to-storage” or “power-topower”, but for the purposes of this report, the overall P2G label is being used to describe the full range of options as, in all cases, hydrogen gas must first be produced via electrolysis at a first stage in the process. 2019 HYDROGEN PATHWAYS 66 12 – POWER-TO-GAS Germany leads in P2G research and installations. There are more than 30 P2G demonstration projects in Germany ranging from below 100 kW to 6MW in size. According to the German Energy Agency (DENA), these facilities have mostly been built for research purposes with objectives including demonstrating the technical feasibility of technology standardization, lowering costs, and testing business models for integration with power grids. Denmark has a large-scale P2G project involving wind power. The US$17.4 million HyBalance project uses a 1.2MW PEM electrolyser to produce carbon-free hydrogen from surplus wind power for grid balancing, energy storage, and direct use in transportation and industrial applications. The project started operating in September 2018 with funding support from the EU.208 With wind power representing 40% of Denmark’s current power supply and the country having a target of 100% renewable power by 2030, Denmark was well-suited to demonstrate this large-scale P2G application. Canadian company, ATCO Gas, has a P2G project underway in Western Australia through a subsidiary company. The project is at an early stage. Its design encompasses the use of surplus solar power from rooftop solar panels to produce hydrogen from electrolysis. The hydrogen will be stored and used in a fuel cell to provide backup power to homes as well as being injected into the local natural gas grid.209 CANADA Canada is a world leader in the production and use of energy from renewable resources which currently provide an estimated 19% of total primary energy supply. Wind and solar photovoltaic energy are the fastest growing sources of electricity in Canada and, according to the NRC, Canada has, “…excellent wind resources and significant potential for the expansion of wind-generated power.” 210 Canada’s has two P2G installations – one is at Glencore’s Raglan Mine in northern Québec that stores surplus wind power as hydrogen gas and then reconverts it to produce power when needed; the other installation is the Markham Energy Storage Facility. This large P2G facility has a 2.5MW capacity and can produce up to 1,080 kilograms of high purity hydrogen per day. In addition to two electrolysers, the plant has a small fuel cell with storage. The facility is on a property owned by Enbridge with a residential neighbourhood across the street. This location allows for injection of the renewable hydrogen into the natural gas grid, as it is at a gate station where high-pressure gas from transmission lines is reduced to lower pressure suitable for the local distribution. The facility has been fully approved by multiple AHJs. And, with the involvement of Enbridge’s natural gas distribution company in Ontario, it reflects emerging interest in the natural gas distribution industry to consider innovative ways to leverage the extensive natural gas distribution grid as a possible energy storage application. 2019 HYDROGEN PATHWAYS 67 12 – POWER-TO-GAS The Markham facility is the first utility-scale P2G installation in North America. It is based on a unique joint venture between a traditional energy provider, Enbridge, and Hydrogenics. The two parties successfully collaborated on a bid into Ontario’s former Feedin-Tariff program. Following contract award and construction, their facility has been in operation since July 2018. Figure 14 - Markham Energy Storage - Hydrogen Production and Potential End Use Pathways 211 The plant takes surplus renewable power from the electricity grid when called to do so by Ontario’s Independent System Operator (IESO) and uses it to produce hydrogen which is stored in the natural gas grid. According to the IESO, “Storage facilities on the grid are a real game changer…Our electricity system was built on the concept that you can’t store large amounts of electricity – currently, we produce electricity at the same time we consume it. Energy storage projects will provide more flexibility and offer more options to manage the system efficiently.”212 Canadian company Hydrogenics is a leading provider of electrolysers with more than 500 installations around the world. With the Markham facility, Hydrogenics now has major P2G reference sites in North America, Europe, and Asia. The company has noted that, in comparison to its traditional areas of business, the scale of P2G opportunities is significant with commercial projects expected to be in the 20MW to 50MW range.213 2019 HYDROGEN PATHWAYS 68 12 – POWER-TO-GAS OBSERVATIONS In its 2017 study of hydrogen tolerance of key P2G components and systems in Canada, the NRC reviewed Canada’s two existing P2G installations and concluded that, “It would be highly valuable to investigate Canadian and international P2G demo cases made by Hydrogenics and others for integrating renewables into the natural gas grid.” 214 The NRC is also working with US-based non-profit, the Electrical Power Research Institute, and industry partners to enhance the existing Energy Storage Valuation Tool by adding a model to perform techno-economic analysis of P2G opportunities. Once available, this tool could provide the basis for outreach and dialogue related to potential P2G opportunities. Beyond the integration of diverse technologies, where P2G applications become even more complex and challenging is with respect to business models and regulatory frameworks. The use of P2G relies on an approach that may involve connecting different energy systems such as the electrical and natural gas grids. When two energy systems are connected in this way, they are in a sector coupling application that creates an entire new set of demands in terms of regulatory review and approval as well as appropriate business models that can attract capital investment. As DENA has noted in its work, there is a need to increase the flexibility of the electricity system to accommodate P2G installations and to recognize the value of electricity storage. Ontario’s Energy Board (OEB), the regulator for electricity and natural gas in the province, recognizes that innovation is important to advance the energy sector. In a November 2018 report commissioned by the OEB Chair, various actions that the regulator could take were identified related to creating an environment supporting innovation to bring value to customers. Recommended actions included embracing simplified regulation by adopting simple and timely ways to allow for experimentation, removing disincentives to innovative solutions by changing how utilities are remunerated, re-examining restrictions on utility business activities, and reviewing the separation of regulated and competitive services in light of new and innovative technologies and services. 11.0 Hydrogen Supply Chain PRODUCTION Hydrogen consists of one proton and one electron, making it the simplest element on earth. It is an energy carrier, not an energy source. While it can store and deliver energy, it does not typically exist by itself in nature and must be produced from compounds that contain it.215 There are many possible ways to produce hydrogen, depending on the primary energy source. The graphic on the following page includes several production options. There are also other production options not shown in this illustration including the use of nuclear power as a nonemitting source to generate electricity for electrolysis production of hydrogen. 2019 HYDROGEN PATHWAYS 69 H2 SUPPLY CHAIN Figure 15 - Process Options for Producing Hydrogen 216 At present, hydrogen production from fossil fuels is the dominant production strategy globally with 95% of world supply derived from non-renewable fossil fuels including natural gas (68% of supply), oil (16% of supply), and coal (11% of supply).217 Canada is a major hydrogen producer using natural gas in a SMR process. With an estimated 3 million tonnes produced annually for industrial use, Canada ranks in the top ten of global hydrogen producers. In the US, demand for hydrogen continues to increase as lower sulphur fuels are required and as heavier crude oils have entered the supply mix. What has also changed is a shift from captive production where hydrogen is produced and consumed directly by an industrial end user to merchant production where a third party produces and delivers the hydrogen. This outsourcing trend has occurred over the past 25 years, resulting in the industrial gas producers now playing a significant role in supplying hydrogen, particularly for refineries.218 Matching production to end user demand is typical of the current hydrogen supply system. On a global basis, only a small part of hydrogen production (~ 4%) is traded freely.219 While current hydrogen production relies primarily on non-renewable energy sources, there is significant and growing interest in producing hydrogen at scale using renewable energy. This emerging trend is mostly based on using large MW-scale electrolyser technology, although there are other production options as well. The use of renewable power ensures that hydrogen is carbon free. With policymakers’ increased interest in hydrogen and fuel cells focused primarily on decarbonizing energy use across their economies, the availability of zero emission hydrogen is seen as being fundamental to achieving major GHG reductions. 2019 HYDROGEN PATHWAYS 70 H2 SUPPLY CHAIN In recent years, many large-scale renewable hydrogen production facilities have been announced. In February 2019, Air Liquide announced it will install the world’s largest electrolyser with a 20MW PEM electrolyser at its Becancour, Québec, facility to produce hydrogen using renewable hydroelectric power. The new facility will increase existing capacity by 50% with the new supply to be sold into the industrial and transportation markets.220 British Columbia recently commissioned a feasibility study on the topic of large-scale hydrogen production using hydroelectric power. The technical and economic aspects of a 300MW centralized hydrogen electrolysis facility will be considered with potential for sales in domestic and export markets. If this project were to advance it would directly align with a recent First Ministers’ announcement related to, “…the development of a framework for a clean electric future, including hydroelectricity, aimed at using clean, reliable and affordable electricity and to promote access to domestic and international markets.” 221 Globally, there is a growing list of investments in large-scale PEM electrolysis facilities that are at various stages of development. Air Liquide announced in 2018 that it would build a worldscale liquid hydrogen production plant in western US. With an investment of US$150 million, the plant will serve the California mobility market and hydrogen will be sold into the merchant market for industrial use.222 Austrian company, voestalpine, is building a 6MW PEM facility in Austria to supply carbon free hydrogen for use in its steelmaking pilot project. Shell announced plans to construct at 10MW PEM facility to supply hydrogen for its Rhineland refinery complex in Germany. Japan has a 10MW electrolysis facility under trial operation in Soma, Fukushima223 and a second 10MW facility under construction in Namie, Fukushima. The Namie facility is to come online in 2020 in time to supply hydrogen for FCEVs and transit buses for the Olympics.224 Another opportunity for the production of carbon free hydrogen involves the use of power from nuclear reactors including small modular nuclear reactors as non-emitting sources. Canada is a leader in the development of nuclear technologies. As a Tier 1 nuclear nation, Canada maintains a strategic interest in nuclear energy with full capabilities including research reactors, power reactors, fuel manufacturing, and R&D activities. In November 2018, a Canadian Small Modular Reactor Roadmap was released, based on a 10-month, multistakeholder effort to develop a vision for the next phase of nuclear innovation. Small modular reactors involve lower capital costs with modular designs to control costs. They can be built in a controlled factory environment where costs can be reduced over time based on economies of scale. These small reactors would incorporate enhanced safety features and could enable new applications such as hybrid nuclear-renewable energy systems to supply low carbon heat and power for industry and remote power to offset diesel use in off grid communities and mine sites.225 Canadian Nuclear Laboratories has committed to successfully demonstrate at least one small nuclear reactor by 2026. Other countries also have small modular reactors interests. The United Kingdom announced in 2016 that it was seeking organizations with an interest in 2019 HYDROGEN PATHWAYS 71 H2 SUPPLY CHAIN leading the development of a British small modular reactor.226 China and Argentina are both nearing the completion of their first small modular reactors. South Korea has designed a small modular reactor for export and Russia now has a floating barge small nuclear reactor to access remote locations.227 With growing interest in hydrogen production and a proliferation of potential production pathways, the EU is moving forward with efforts to develop a hydrogen certification program. Launched in January 2019, the CertifHy Program is a one-year project to demonstrate a guarantee of origin scheme for hydrogen. The project will encompass the audit of hydrogen production plants and the certification of hydrogen batches as “green” produced from renewable biomass, hydro, wind or solar sources or “low carbon” produced from nuclear or fossil energy with CCS or carbon capture and utilization. The overall objective is to create transparency for fuel production pathways, so that end users have information regarding carbon content and confidence regarding “carbon free” claims. The cost of hydrogen produced from renewable sources remains a key barrier to increasing its use to decarbonize transportation, community end uses, and industrial applications. Both the US and the international MI collaboration have large-scale hydrogen production research initiatives that aim to reduce the cost of hydrogen produced at scale from renewables. MI’s Renewable and Clean Hydrogen innovation challenge aims to, “accelerate the development of a global hydrogen market by identifying and overcoming key technology barriers to the production, distribution, storage, and use of hydrogen at gigawatt scale.” 228 For hydrogen to reach its full potential, renewable production technologies must be improved and mass market volumes are needed in order to make hydrogen from renewable sources costcompetitive with the potential to be a globally-traded commodity. DISTRIBUTION Hydrogen can be produced at or near the site of use in distributed production, at large facilities with delivery to point of use in central production or at intermediate-scale facilities located in fairly close proximity (40-160 km) to point of use in semi-central production. SMR processes for hydrogen production rely on central facilities with large scale to produce hydrogen at the lowest cost per kilogram. Up until the recent announcements of large-scale electrolysis facilities, hydrogen produced from electrolysis would typically be produced onsite at small scale or at a semi-central facility for delivery within a local area. Many hydrogen fueling stations for vehicles have onsite electrolysis near the point of use. For central and semi-central production, delivery to point of use is typically by truck with gaseous hydrogen moved in a tube or multi-container trailer and liquefied hydrogen moved in a liquid tube trailer. There is a well-established system for truck-based distribution of hydrogen in Canada, although the further the hydrogen has to be transported, the greater the delivery cost. Hydrogen can also be moved by rail. 2019 HYDROGEN PATHWAYS 72 H2 SUPPLY CHAIN Hydrogen is typically compressed or liquefied in order to increase energy by volume for delivery. Gaseous hydrogen is typically compressed 25-50 MPa. Liquefied hydrogen is hydrogen that has been cooled and must be stored in cryogenic containers. In addition to these two most common options, there are other hydrogen storage options as shown below. Figure 16 - Physical and Materials-Based Hydrogen Storage Options 229 As previously mentioned, hydrogen can be distributed via pipeline. There are approximately 4,500 kms of gaseous hydrogen pipeline in the world with more than half of this infrastructure located in the US. These pipelines are purpose-built to supply hydrogen to industrial sites. Most of the hydrogen pipelines in the US are along the Gulf Coast to connect merchant hydrogen producers with refineries. The Stelco steel mill in Hamilton, Ontario, is supplied by a local hydrogen pipeline. Germany has a 200-km long hydrogen pipeline that has been in service since 1939. The world’s longest hydrogen pipeline extends 400 km between Belgium and northern France.230 While gaseous hydrogen has been safely moved by pipeline for decades, the NRC noted in its 2017 study that, “…these systems are not designed for frequently-varying pressure and for large-scale, long-distance cross-country collection from many dispersed nodes from diverse sources, as required by renewables-hydrogen service.”231 This finding points to the need for increased CS&R activities to support any expanded use of hydrogen pipelines beyond the dedicated service model that is currently in use. 12.0 Deployment Readiness GENERAL Hydrogen can be safely deployed across a range of end uses. Globally as well as within Canada, there is an extensive amount of experience with industrial hydrogen. The industrial sector has a strong track record of safe production, handling, and usage. Looking forward to consumerbased transportation and other non-traditional end uses, it will be important that the safety aspects of hydrogen fuel cell technologies be supported with fact-based information and reinforced with positive experiences to ensure safe and sustained use of these technologies. 2019 HYDROGEN PATHWAYS 73 READINESS The characteristics and properties of hydrogen are well-understood. Gaseous hydrogen is a flammable gas that is lighter than air. It is colourless, odourless, and has low toxicity, but it can act as an asphyxiant in high concentrations. Hydrogen gas has a wide ignition range and a low ignition energy, so that escaping gas may ignite without an obvious source of ignition. A burning hydrogen flame may be virtually invisible.232 As with other types of energy, hydrogen’s unique properties can be safely addressed through a robust framework of CS&R applied within a system where local AHJs and other relevant Authorities ensure compliance with regulations, provide technical oversight, and identify requirements and conditions for inspection, approval, and for safe operation. With emerging and innovative technologies such as hydrogen fuel cell and electrolysis technologies, it is important to ensure that compliance requirements are not finalized too early, made too prescriptive, and are to the extent possible performance-based with a system engineering approach that supports ongoing innovation. Decades of technology development have resulted in commercial, near-commercial, and prototype hydrogen fuel cell technologies across a wide range of mobile, stationary, and portable end use applications. There has been ongoing development to improve and scale hydrogen production technologies that rely on renewable, non-emitting, and fossil energy sources. Global R&D efforts encompass cost reduction, durability and performance improvement, and manufacturing at scale. Each of the twelve hydrogen end use pathways identified in this report are at different stages in terms of readiness for deployment or pre-readiness in Canada. Each pathway has different requirements in terms of CS&R challenges and barriers as well as potential regulatory framework, and consumer and societal acceptance issues that may need to be addressed. None of these issues are insurmountable and there is a tremendous body of knowledge available regarding hydrogen and fuel cell technologies from Canada and from around the world from which to draw. A high-level review of readiness within Canada for the four broad pathway categories – transportation, community, industrial, and power – will be considered briefly in the remainder of this section. TRANSPORTATION There has been ongoing activity to support the development of CS&R for on-road FCEVs. At the North American level with the establishment of the Regulatory Cooperation Council, NRCan and DOE created a regulatory partnership. Building on an initial work plan, the Joint Forward Plan was issued in 2014. Among other actions, this Plan established two working groups to address the goal of aligning, to the extent practicable and permitted by law, energy efficiency standards and standards for the use of natural gas in transportation. 2019 HYDROGEN PATHWAYS 74 READINESS In May 2016, the scope of transportation work was expanded to include all alternative fuels and technologies for on-road transportation including hydrogen FCEVs. The overall objective is to facilitate the use of alternative fuels including natural gas, propane, hydrogen, and electricity in the seamless North American transportation system by supporting the alignment of existing C&S where feasible, and co-developing new binational C&S where applicable. In support of the RCC objectives and with NRCan funding, CSA conducted North American hydrogen C&S forums in 2017 and in 2018. Industry stakeholders from Canada and the US participated and identified a number of actions and coordination opportunities to support FCEVs and related infrastructure in Canada, while harmonizing requirements with the US. A key result was the start of the development of a C&S roadmap framework for North America which will encompass: (a) assessing the SDO and standards landscape; (b) analyzing C&S; and (c) coordinating C&S updates among the various stakeholders. The Standards Council of Canada (SCC) accredits standards development organizations (SDOs) and maintains a published directory of SDOs and their planned work programs. BNQ and CSA are the two primary SDOs developing hydrogen- and fuel cell-related codes and standards for on-road transportation applications in Canada.233 With respect to vehicle requirements, in the absence of Canadian-specific CS&R for safety and emissions, OEMs typically tend to design to their best practices, lessons learned, and internal requirements, relying on CS&R from other jurisdictions. STATION INSTALLATIONS - The SCC recognizes CAN/BNQ-17484-000 Canadian Hydrogen Installation Code (CHIC) as a national code setting out the requirements for hydrogen fueling station installations.234 This BNQ code was first published in 2007 and is now being revised with an expected release date in 2020. At present, only two provinces refer to the CHIC in their regulations - Saskatchewan and Ontario. Some provinces do not recognize hydrogen as a gas within the scope of their regulations. With six new public hydrogen fueling stations planned in Canada, the lack of a Canadian installation code referenced in provincial and territorial regulations may create significant uncertainty leading to delays and adding unnecessary expense for project developers and technology providers. Recognizing this issue and identifying that hydrogen is new to the transportation sector and that hydrogen is a priority as it supports the province’s sustainable energy objectives and its ZEV mandate, Québec is, “…mandating the BNQ to develop a regulatory framework to ensure public safety related to hydrogen.”235 Currently there is no Canada-wide permitting guide for hydrogen fueling stations. Past demonstrations projects and even more recent installations in Canada have relied on various sources of information including two documents that have been published to provide guidance - Permitting Hydrogen and Fuel Cell Installations in Canada published by Air Liquide with NRCan funding support in 2008236 and Interim Document for the Standards of Construction of Hydrogen Refueling Station Safety Standards for the Hydrogen Highway was published by S. Katz and Associates in 2005.237 2019 HYDROGEN PATHWAYS 75 READINESS Given the amount of new hydrogen station activity, a coordinated effort to communicate the latest C&S to local AHJs may help to reduce permitting time and cost. Information sharing between jurisdictions may also lead to improved understanding of the installation and operation of hydrogen fueling stations.238 There is also no clear evidence that any gaps, barriers, challenges or lessons learned, based on current hydrogen station deployment activity in Canada, are being captured in any formal way, beyond anecdotal comments and specific items discussed at codes and standards technical committee meetings. NRCan’s EVAFIDI program has two areas in its final report template that may be helpful in terms of gathering information and sharing of lessons learned from parties who receive funding. Section 3B of the final report template requires a description of technical station aspects; section 7 requires the documentation of lessons learned. To the extent that proponents include technical lessons, this could be an important source of information to assist with CS&R development and future station installations. VEHICLE APPROVALS - With respect to hydrogen FCEV demonstrations and deployments, it should be noted that many of the Canadian provinces and territories have adopted the use of CSA B51 – Boiler, Pressure Vessel, and Pressure Piping Code with a requirement that Part 2 be used for both compressed natural gas and hydrogen fuel storage systems on-board vehicles. This provides local AHJs with the basis for approving the use of these vehicles on local roads. SALE OF HYDROGEN AT PUBLIC STATIONS - Currently there are no Measurement Canadaapproved devices for hydrogen metering or dispensing to support the retail sale of hydrogen in Canada. There is also a general industry recognition that Canada has current regulations that impose a “limit of error” that cannot be achieved with existing technologies, thus requiring further technology development or an acceptable definition of a near-term path forward. A study commissioned by NRCan was completed in March 2019 with a goal of better understanding current regulatory challenges related to the retail sale of hydrogen as a vehicle fuel in Canada and to identify possible solutions. As part of this work, industry input was gathered related to the challenges that exist for installing and permitting hydrogen fueling stations in various jurisdictions across Canada with reference to the CS&R framework focused on aspects of metrology. The development of a Measurement Canada-supported specification, approval, and verification process for hydrogen meters and dispensers is a top priority. Active industry engagement and participation will be required over the next 18 to 24 months to work with Measurement Canada to determine a path forward. 2019 HYDROGEN PATHWAYS 76 READINESS VEHICLE AVAILABILITY – With only three OEMs offering commercial FCEVs, there is limited global availability of LDVs at present. As the leading market globally, California currently receives priority for FCEV sales. The two new hydrogen fueling stations going into Québec will be supported with the 50 Toyota Mirais and possibly some Honda Clarity sedans, now that Honda has indicated its intention to join the project. Of the other four public stations that received EVAFIDI funding for installation in British Columbia and Ontario, will there be enough vehicles available to fuel at these stations? Canada’s FCEV Coalition involving BMW, Honda, Hyundai, Kia, Mercedes-Benz, and Toyota had been calling for action to address barriers to deployment with a specific focus on hydrogen fueling infrastructure. Is there a role for this group or another interested party to convene interested stakeholders to focus on coordination in the buildout of hydrogen fueling infrastructure, so as to address this fundamental barrier to deployment? CONSUMER ACCEPTANCE - Consumer acceptance is another important aspect of market readiness. For hydrogen FCEVs, consumers will ultimately judge acceptability based on their criteria of safety as well as their own perceptions. As a result, education, outreach, and awareness building are important activities when introducing new, non-familiar technologies such as hydrogen FCEVs. A 2018 study239 conducted in California found that, after month-long driving trials, participants’ impressions of hydrogen and FCEV safety compared favourably to gasoline and gasoline-powered vehicles. Among 54 participants, 98% viewed hydrogen as a fuel for vehicles as being “as safe” or “safer” than gasoline, while 94% thought the process of fueling a hydrogen FCEV was “as safe” or “safer” than gasoline fueling. Without real world, hands-on experience, the participants likely would have had a much less positive response given the newness of hydrogen as a fuel and of FCEV technology. Truck, rail, and marine applications are all at earlier stages of market development compared to LDVs and transit buses. Increased activity that supports LDVs and transit buses will also, ultimately, support these other transportation options in terms of increasing awareness, creating greater certainty for infrastructure permitting and approval, resolving metrology issues, and acting to increase consumer acceptance of hydrogen and FCEVs. COMMUNITIES Community end use applications for hydrogen and fuel cells are at such an early stage in Canada that deployment considerations are not as much of a concern as they are for the transportation pathways. Instead, with respect to the community pathways, priority should be given to pre-readiness activities such as increasing awareness, updating the knowledge base, and engaging industry and communities to explore the potential opportunities associated with hydrogen and fuel cell use. 2019 HYDROGEN PATHWAYS 77 READINESS The use of hydrogen for heat for buildings and homes is an option that the gas distribution industry has considered, but with a voluntary industry target identified for RNG injection into the gas grid, hydrogen injection would appear to be a lower priority at this stage. It is encouraging that the industry has a technical guideline for hydrogen injection into the natural gas grid that was developed in conjunction with the US gas distribution industry. Next step actions could include quantifying the carbon and energy use impact of low-level hydrogen blending in the natural gas grid, as well as identifying constraints related to technologies and limitations in the various regulated models that govern gas utility operations that would need to be addressed if hydrogen were to be injected. Micro-CHP applications for home or building heat and power may be challenging in the Canadian market due to issues with cost, scale, and inclusion in the regulatory model. Exploring the current state of North American micro-CHP technologies and determining whether this pathway has validity for the Canadian market would be a useful next step. For remote community applications, key barriers include a lack of awareness of hydrogenrelated opportunities, limited funding models, insufficient local expertise to execute projects, and the high cost of one-off systems. With the Raglan Mine – Phase 2 funding now in place from NRCan, there is a requirement that learnings related to this smart grid power-to-storage project be shared with local mining operations as well as with Inuit communities. Providing access to lessons learned and how they may apply to a remote community setting could be a good first step in reaching out to off grid communities. INDUSTRIAL Of the four categories of pathway opportunities, industrial use of hydrogen and fuel cells is at the earliest stage globally. Early stage projects in refining, steelmaking, and other industries have been announced, but in many cases hydrogen electrolysis facilities are just being built. New capital investments in the industrial sector typically require long lead times and significant capital investment. With Air Liquide’s announcement of a 20MW PEM electrolyser installation in Québec, there will be a supply of zero emission hydrogen available. This could open up opportunities for industrial customers who already use SMR-produced hydrogen to switch to hydrogen produced from renewable power. Such a direct replacement would not require any process adjustments or investments, but there would be an impact on input costs, depending on how the zero emission hydrogen is priced. The emissions reduction benefit would vary depending on the type of facility and the scale of the operation. The Canada’s Oil Sands Innovation Alliance (COSIA) aims to enable responsible and sustainable growth of Canada’s oil sands while delivering improvements in environmental performance through collaborative action and innovation. Within their GHG priority area, the members of COSIA commissioned a study in 2017 to consider natural gas decarbonization pathways and technologies. Among various options, two hydrogen-from-natural gas technologies were assessed. COSIA has also identified the production of alternative energy and CCS strategies as being of interest. 2019 HYDROGEN PATHWAYS 78 READINESS Engaging to share information and to monitor global initiatives with industries through their associations, conferences, and research collaboratives is an early action that can be taken to increase awareness and encourage dialogue focused on potential future hydrogen-related opportunities. POWER With little recent market activity in Canada related to fuel cell technologies that can provide primary, backup or critical power, there is a need to convene interested stakeholders to identify key enablers and determine the environmental, economic, and energy security potential of the stationary power pathway. As the Queen’s University analysis for the Ontario Government Emergency Call Centre showed, there can be a business case for backup power applications and there is potential for deployment on a broader scale. Are there models from the US that could be replicated in Canada to increase adoption of these systems? What lessons can be learned and applied here in Canada? With respect to the P2G pathway, these opportunities may connect the electrical and natural gas grids in ways that are non-traditional, but potentially very beneficial for storing surplus renewable power and fully utilizing the renewable power that is produced. The Markham Energy Storage Facility is a significant project that needs to be more broadly discussed, reviewed, and understood. As the first utility-scale P2G project in North America, there are many audiences that may have an interest including government, regulatory, and power system operators as well as natural gas and electricity distributors. Is it possible to develop a rough inventory of potential P2G opportunities across Canada with a high-level indication of key barriers to deployment? What stakeholders would need to be engaged in this type of an exercise and, as a leading provider of electrolysers, what insight and ideas could Hydrogenics bring to this proposed effort? In its Fall 2018 Economic Update, the federal government announced the formation of a Centre for Regulatory Innovation. Having identified that there is a need for ongoing review to find ways to improve the regulatory system, the Centre is to work as a convenor and a focus point for various “regulatory sandboxes” in which, “…innovative products, services, business models, and delivery mechanisms can be tested without being subject to all of the normally required regulatory requirements.” 240 Could this new Centre play some kind of role in terms of the regulatory environment for complex hydrogen applications such as P2G systems? And, while it is positive that the OEB has recognized that innovation is important to advance the energy sector, where is the broader electricity and natural gas regulatory community at in terms of considering what changes might be needed to accommodate innovative projects such as P2G that connect both energy grids? Enbridge’s participation in the Markham Energy Storage Facility was through its non-regulated business. Is it possible that future regulatory frameworks could allow utilities to earn on the integration of hydrogen P2G technologies? The Markham project needed the FIT Program as it offered a revenue stream for taking surplus power on demand. In the absence of these types of time-limited programs, is there a structural mechanism that can be established within the regulated models for utilities to encourage the deployment of these innovative types of systems? 2019 HYDROGEN PATHWAYS 79 READINESS 13.0 Pathways Synergies Among the twelve end use pathways considered in this report, there are synergies that are cross-cutting and that can be mutually beneficial, supporting future deployments in each of the four pathway categories. These beneficial areas do not always involve direct connections between individual pathways, but rather an expansion of the overall system capacity to support greater use of hydrogen and fuel cells in Canada. One of the most fundamental synergy areas is increased human capacity to support a broad range of hydrogen and fuel cell applications. A key determinant of long-term success will be the readiness of the “systems” in provinces and territories across Canada to accept and sustain a range of new hydrogen technologies including on- and off-road vehicles, fueling stations, electrolysers, fuel cells, hydrogen storage systems, appliances, and large-scale equipment for industrial settings. Key stakeholders whose experience and knowledge will increase with a given deployment in any of the four categories include: o o o o o AHJs whose role is to inspect, ensure compliance with regulations, and approve. Engineers and equipment designers who oversee the installation of technologies. Service technicians who perform routine and emergency maintenance. Emergency first responders who need to understand fuels, technologies, and risks Local government officials whose policies and bylaws may affect new projects. Each of these groups will benefit from activity along a given pathway. For example, a LDV and station deployment will engage AHJs, involve engineers and station designers, require service technician support, and require the training of local emergency first responders. In each case, this base of knowledge can be applied to a different pathway end use. A second broad synergy area is enhanced public and consumer awareness of hydrogen and how it can be safely used and provide benefits. In this regard, transportation and communitylevel deployments typically have the highest visibility. Given that hydrogen is a new fuel for most consumers, it will be important to provide fact-based information on a proactive basis that can help to build public and consumer confidence over time. For example, the ability of a remote community to reduce its reliance on diesel generators and improve local air quality through the use of a hydrogen fuel cell-based energy system is a positive development that could be communicated, so as to start to build a level of awareness and basic understanding. Of direct pathways synergies, certainly any transportation deployment will benefit all other transportation modes as the common denominator is fueling scaled to the demand of on- or off-road vehicles. In addition, P2G applications open up a range of possible synergies driven off the production of hydrogen onsite. As previously noted, local production of hydrogen from surplus renewable power could enable a transportation project through the installation of a fueling station or the hydrogen could be transported in bulk for use in a stationary system at the community level or for industry. By its very nature, P2G system planning requires the input and review of a diverse range of stakeholders which, in itself, may create synergies as new ideas and different approaches are combined through the project planning process. 2019 HYDROGEN PATHWAYS 80 RECOMMENDED ACTIONS 14.0 Recommended Actions Canada has a strong hydrogen and fuel cell foundation with deep expertise and leading technology providers, an extensive track record of public/private collaboration on RD&D, a proactive approach to CS&R, a federal policy framework that defines actions to reduce economy-wide carbon emissions and transition to a clean growth future, and increasingly interested domestic market stakeholders including provincial stakeholders. It is recommended that Canada take action to build on this strong foundation and determine how best to move forward to encourage greater economy-wide use of hydrogen and fuel cells given their many potential benefits. As this report has outlined, there are many possible end use pathways as well as a broad range of models and approaches used in other jurisdictions that can help to inform decision-making and to assist in determining areas of focus and appropriate next step actions for Canada. Improved coordination is vital, across all aspects of hydrogen and fuel cell opportunities including deployment, CS&R activities, engagement with international partners, RD&D planning, infrastructure buildout, engagement with Measurement Canada, and using communication strategies to increase awareness and understanding. The following ten actions are recommended with oversight for the actions falling within the scope of the proposed advisory committee’s mandate. 1. Form an advisory council involving a range of stakeholders to guide future actions and to ensure overall coordination with both established and emerging hydrogen interests represented. 2. Establish sector tables that inform and provide feedback to the advisory council. Sectors are to reflect the primary areas of economy-wide opportunity for hydrogen (transportation, community, and industrial end uses) as well as the hydrogen supply chain. It will be important to integrate regional perspectives from across Canada. 3. Use this pathways report as the basis to identify additional in-depth analyses on specific areas that should be undertaken, so as to continue to advance hydrogen use across Canada’s economy. 4. Continue to resource participation in high-level international bodies to enhance information sharing, insights gained, and coordination based on the involvement of Canadian government, industry, academic, and other stakeholders. 5. Address research priorities, determining how new priorities compare to current activities. Develop a high-level research plan to guide future activities. 2019 HYDROGEN PATHWAYS 81 6. Resource demonstrations and pilot projects in transportation, communities, the industrial sector, and hydrogen supply. Apply lessons learned from other jurisdictions in structuring and reporting, ensuring that criteria are in place to define how these actions will support future real world deployments. 7. Continue to resource CS&R activities to support deployment with consideration for North American coordination and, where possible, harmonization, as well as with reference to international CS&R developments. 8. Encourage the coordinated buildout of hydrogen fueling infrastructure through broad-based collaboration informed by the experiences of Germany, California, the US, the EU, and Japan, with consideration for future light-, medium- and heavy-duty vehicle fueling needs. 9. Encourage dialogue and engagement with Measurement Canada to address the need for specifications, approval, and verification methods in support of hydrogen metering and dispensing. 10. Identify and implement communications actions to increase awareness, educate, and connect interested stakeholders across Canada. 2019 HYDROGEN PATHWAYS 82 15.0 Appendix 1 Readiness Issues and Recommended Actions Identlfed Readiness Issues Recommended Aotlons 31;? es Es ?g E2 5% 31-3 334..933 EE LLUIJJ Emma (Sc: IJJE TRANSPORTATION PATHWAYS a. Encourage the adoption of CHIC h. Share technical reference resources c. Provide latest Iii-5:5 updates d. Document lessons learned e. Share kev findings of metrologv studv Consider howto enhance supplv g. Build consumer confidence and acceptance PATHWAYS a. Identity.r channels to support end use dialogue lo. Convene stakeholders to assess opportunities c. Calculate potentialfor H2 in naturalgas grid d. Identifv current state of micro-CHP technologies e. Develop remote communitv PEG case studv INDUSTRIAL PATHWAYS a. Identity.r channels to support end use dialogue h. Convene stakeholders to assess opportunities c. Monitor kev global industrial developments POWER PATHWAYS a. Identifv channels to support end use dialogue h. Convene stakeholders to assess opportunities c. Consider howto use NRC PEG tool when available d. Determine how to aproach PEG regulator.r issues 2019 HYDROGEN PA TH WA YS 16.0 Bibliography Ballard Power Systems.com. http://ballard.com/Default.aspx California Fuel Cell Partnership. Medium- & Heavy-Duty Fuel Cell Electric Truck Action Plan for California. October 2016. https://cafcp.org/sites/default/files/MDHD-action-plan-summarized-2016.pdf California Fuel Cell Partnership. The California Fuel Cell Revolution – A Vision for Advancing Economic, Social, and Environmental Priorities. July 2018. https://cafcp.org/sites/default/files/CAFCRPresentation-2030.pdf Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. Canadian Small Modular Reactor Roadmap Steering Committee. A Call to Action: A Canadian Roadmap for Small Modular Reactors. November 2018. CH2MHILL Limited (Jacobs Engineering Group), Ernst & Young Orenda Corporate Finance, Canadian Nuclear Laboratories. Regional Express Rail Program Hydrail Feasibility Study Report – Revision B. CPG-PGM-RPT-245. February 2, 2018. Clean Energy Ministerial. https://www.cleanenergyministerial.org/about-clean-energy-ministerial Commonwealth Scientific and Industrial Research (CSIRO). National Hydrogen Roadmap – Pathways to economically sustainable hydrogen industry in Australia. 2018. CSA Group. 2018 North American Hydrogen Codes & Standards Forum – Summary Report. October 31, 2018. CSA Group. 2017 North American Hydrogen Codes & Standards Forum – Summary Report. March 2017. DENA – German Energy Agency. Power to Gas system solution - Opportunities, challenges and parameters on the way to marketability. Denhoff, Eric. Canadian Hydrogen and Fuel Cell Association. Hydrogen and Fuel Cell Applications: A Canadian Perspective. 2014. E4tech. The Fuel Cell Industry Review, 2018. www.fuelcellindustryreview.com Environment and Climate Change Canada. Clean Fuel Standard – Regulatory Design Paper. December 2018. European Commission. Putting Science into Standards: Power to Hydrogen and HCNG. 2014. Retrieved on March 21, 2017 from https://ec.europa.eu/jrc/sites/jrcsh/files/hcng-2014-s2-dubost.pdf Fargere, Alena. Air Liquide, Hydrogen Company. FCEV: Growing momentum and challenges of mass market deployment. Third International Workshop: The Energy Transition in Land Transportation, Energy & Prosperity Chair. November 10, 2017. Fuel Cell and Hydrogen Energy Association. 2016 State Policy Wrap Up: Fuel Cells and Hydrogen.2016. 2019 HYDROGEN PATHWAYS 84 Fuel Cell and Hydrogen Energy Association. The Business Case for Fuel Cells 2015: Powering Corporate Sustainability. 2015. FuelCellToday. 2012 Fuel Cell Patent Review. December 20, 2012. http://www.fuelcelltoday.com/analysis/patents/2012/2012-fuel-cell-patent-review Fuel Cells and Hydrogen Joint Undertaking. https://www.fch.europa.eu/ Generation Energy Council. Canada’s Energy Transition – Getting to our Energy Future, Together. June 2018. https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/CoucilReport_july4_EN_Web.pdf Government of Canada. National Greenhouse Gas Inventory Report 1990-2014 – Greenhouse Gas Sources and Sinks. http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items /9492.php Government of Canada. The Pan-Canadian Framework on Clean Growth and Climate Change, 2016. Ottawa, Ontario. GreenCarCongress.com. https://www.greencarcongress.com/ H2tools.org. https://h2tools.org/ Hydrogen Council. Hydrogen, Scaling Up – A sustainable pathway for the global energy transition. November 2017. Hydrogen Europe. FCH JU. Hydrogen Roadmap Europe. January 2019. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf Hydrogenics.com. http://www.hydrogenics.com/ Innovation, Science and Economic Development Canada. Canadian Hydrogen and Fuel Cell Industry. Retrieved on March 10, 2017 from http://www.ic.gc.ca/eic/site/hfc-hpc.nsf/eng/home IPHE.net. https://www.iphe.net/ Mission-Innovation.net. http://mission-innovation.net/our-work/innovation-challenges/renewableand-clean-hydrogen/ National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de Oliver, Bob. On behalf of Hydrogenics. Ontario: World Leader in Hydrail. 2016 presentation. Ontario Energy Board. Advisory Committee on Innovation – Actions the OEB can take to advance innovation in Ontario’s energy sector. November 2018. https://www.oeb.ca/sites/default/files/Report-of-the-Advisory-Committee-on-Innovation20181122.pdf 2019 HYDROGEN PATHWAYS 85 Shell; Wuppertal Institute. Shell Hydrogen Study Report and Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles. Hydrogen Fuel Cell Vehicle Technology Roadmap – English Translation. SAE China. https://www.ieafuelcell.com/documents/China_FCV%20Tech%20Roadmap_20171027.pdf The Council of the Federation. Canadian Energy Strategy. July 2015. Truckenbrodt, Andreas, Automotive Fuel Cell Cooperation Corporation. Automotive Fuel Cells: The Road to Emissions-Free Mobility. Presentation delivered in 2011. US Department of Energy – Energy Efficiency and Renewable Energy. State of the States: Fuel Cells in American in 2016. 2019 HYDROGEN PATHWAYS 86 17.0 Endnotes 1 Commonwealth Scientific and Industrial Research Organization (CSIRO). National Hydrogen Roadmap – Pathways to an economically sustainable hydrogen industry in Australia. Australia. 2018. Page xiii. 2 Shell; Wuppertal Institute. Shell Hydrogen Study Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Slide 32. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 3 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2016. Canada. Page 3. 4 Note that, while industrial hydrogen production represents a large share of Canada’s hydrogen and fuel cell sector in terms of annual revenues, information from the large companies that produce hydrogen from steam methane reformation in Canada is not necessarily included in numbers reported in the CHFCA’s annual sector profile, due to confidentiality concerns. 5 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2016. Canada. Page 17. 6 Industry economic contribution of $121 million calculated by sector based on average salary of sector employee multiplied by jobs in Canada. Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. Page 17. 7 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. Page 5. 8 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. Page 4. 9 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2015. Canada. Page 7. 10 FuelCellToday. 2012 Fuel Cell Patent Review. December 20, 2012. Page 5. http://www.fuelcelltoday.com/analysis/patents/2012/2012-fuel-cell-patent-review 11 Science-Metrix. Archambault, Eric. Cote, Gregoire. Fuel Cells Research in Canada and in Other Leading Countries – A Bibliometric Study. 2010. Slide 15. http://sciencemetrix.com/pdf/SM_Fuel_Cells_Research.pdf 12 National Research Council Hydrogen Programs: Products, Services and Capabilities – Presentation Notes. July 27, 2010. 13 E-mail correspondence with Dr. Jean-Francois Girard, Research Council Officer at the NRC’s Energy, Mining, and Environment research centre in Vancouver. 2019 HYDROGEN PATHWAYS 87 14 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. Page 11. 15 Ballard Power Systems. Investor Presentation. January 17, 2017. Slide 22. http://ballard.com/docs/default-source/investors/needham-ir-presentation---jan2018.pdf?sfvrsn=2 16 Ballard Power Systems. Q4 & Full Year 2017 Results: Conference Call. March 1, 2018. Slide 16. http://www.ballard.com/docs/default-source/financial-reports/q4-17-call-slides---final.pdf?sfvrsn=2 17 Ballard Power Systems. http://www.ballard.com/about-ballard/newsroom/news-releases/2018/11/01/ballard-reports-q3-2018-results 18 Ballard Power Systems. http://www.ballard.com/about-ballard/newsroom/news-releases/2018/11/01/ballard-reports-q3-2018-results 19 Hydrogenics.com. Hydrogenics Corporation. 2018 Consolidated Financial Statements. March 15, 2019. Page 7. https://www.hydrogenics.com/wp-content/uploads/Q4-2018-FinancialStatements.pdf 20 Budget.gc.ca. Budget 2019 – Chapter 2: Building a Better Canada. https://www.budget.gc.ca/2019/docs/plan/chap-02-en.html 21 GreenCarCongress.com. Ballard-powered fuel cell electric buses exceed 10 million kilometers of revenue service. http://www.greencarcongress.com/2017/01/20170104-ballard.html 22 CUTRIC-CRITUC.org. CUTRIC-Funded R&D Projects (TRL 2-6). Retrieved on March 31, 2019 from http://cutric-crituc.org/home#/projects/ 23 NewsOntario.ca. Ontario Taking Next Steps in Testing Hydrogen-Powered Train Technology. https://news.ontario.ca/mto/en/2018/02/ontario-taking-next-steps-in-testing-hydrogen-poweredtrain-technology.html. February 22, 2018. 24 eraAlberta.ca. Emissions Reduction Alberta. Alberta Motor Transport Association (AMTA) – Alberta Zero Emissions Truck Electrification Collaboration. March 12, 2019. https://eralberta.ca/news/stories/eras-best-challenge/ 25 Hydrogen Council. Hydrogen, Scaling Up – A sustainable pathway for the global energy transition. November 2017. Page 17. 26 E4tech. The Fuel Cell Industry Review 2018. Pages 44, 45. 27 FuelCellToday. 2012 Fuel Cell Patent Review. http://www.fuelcelltoday.com/media/1752762/2012_patent_review.pdf Page 5. 28 Liten cea tech. Lambert, Florence. The Impact of Research on Industry. Presentation at the FCH 2 JU Stakeholder Forum held on November 16, 2018. https://www.fch.europa.eu/sites/default/files/3.Lambert-Cea%20%28ID%204769595%29.pdf 2019 HYDROGEN PATHWAYS 88 29 IPHE. Country Update: Japan. December 2018. https://www.iphe.net/japan 30 OsakaGas.co.jp. Osaka Gas’ residential polymer electrolyte fuel cell (PEFC) cogeneration system. Retrieved on February 25, 2019 from: http://www.osakagas.co.jp/en/rd/fuelcell/pefc/reformed/enefarm.html 31 JapanBullet.com. Tokyo 2020 Olympic Village To Be Hydrogen-Powered. January 6, 2015. https://www.japanbullet.com/sport/tokyo-2020-olympic-village-to-be-hydrogen-powered 32 E4tech.com. The Fuel Cell Industry Review 2018. Page 26. 33 Asahi-Kasei.co.jp. Trial operation of plant for green hydrogen in Soma, Fukushima. https://www.asahi-kasei.co.jp/asahi/en/news/2018/e180522.html 34 JapanTimes.co.jp. Construction begins on large hydrogen plant in Fukushima. August 10, 2018. https://www.japantimes.co.jp/news/2018/08/10/national/construction-begins-large-hydrogen-plantfukushima/#.XIF2QWfrvIU 35 Irfan, Umair, Climate Wire - Scientific American. Japan Bets on a Hydrogen-Fueled Future. May 3, 2016. Retrieved on March 7, 2019 from https://www.scientificamerican.com/article/japan-bets-on-a-hydrogen-fueled-future/ 36 WEForum.org. Japan Prime Minister Shinzo Abe’s Speech to 2018 World Economic Forum. Retrieved on March 7, 2019 from https://www.weforum.org/agenda/2019/01/abe-speech-transcript/ 37 Hamaguchi, Michinari. Development of Carbon-Free Hydrogen Value Chain. Presentation at the Woodrow Wilson Center’s “Road to Hydrogen Society”, Innovation and Japan-US collaboration event. April 21, 2016. Slide 7. 38 JHyM.co.jp. New infrastructure company joins JHyM. July 2, 2018. https://www.jhym.co.jp/en/material/180702%20SEIRYU%20POWER%20ENERGY.pdf 39 HySUT.or.jp. The Association of Hydrogen Supply and Utilization. Retrieved on March 9, 2019 from http://hysut.or.jp/en/index.html 40 METI.go.jp. Tokyo Statement – Chair’s Summary of Hydrogen Energy Ministerial Meeting. Tokyo, Japan. October 23, 2018. http://www.meti.go.jp/press/2018/10/20181023011/20181023011-5.pdf 41 BusinessKorea.co.kr. South Korean Government to Focus on Data, AI and Hydrogen Platforms – R&D Investment Plan for 2019. March 8, 2019. http://www.businesskorea.co.kr/news/articleView.html?idxno=29796 42 E4tech.com. Fuel Cell Industry Review 2018. Page 33. 43 StreetInsider.com. FuelCell Energy (FCEL) Notified that POSCO is Terminating MOU. June 20, 2018. https://www.streetinsider.com/Corporate+News/FuelCell+Energy+%28FCEL%29+Notified+that+POSC O+is+Terminating+MOU/14327814.html 2019 HYDROGEN PATHWAYS 89 44 E4tech.com. The Fuel Cell Industry Review 2018. Page 33. 45 IPHE.net. Republic of Korea Country Update – March 2017. https://www.iphe.net/republic-of-korea 46 Hyundai.new/eu. Hyundai and H2 Energy to launch world’s first fleet of Fuel Cell Truck. September 19, 2018. https://www.hyundai.news/eu/technology/hyundai-motor-and-h2-energy-will-bring-theworlds-first-fleet-of-fuel-cell-electric-truck-into-commercial-operation/ 47 Asia News Network. South Korean city Ulsan strives to become global hydrogen leader. October 24, 2018. http://annx.asianews.network/content/south-korean-city-ulsan-strives-become-globalhydrogen-leader-84370 48 AsiaToday.co.kr. Moon administration unveils new energy roadmap for ‘hydrogen economy’. January 18, 2019. http://en.asiatoday.co.kr/view.php?key=20190118001045094 49 E4tech.com. The Fuel Cell Industry Review 2018. Page 34. 50 FuelCellWorks. Korean Government Starts the Planning for Roadmap for the Development for the Hydrogen Economy Implementation. February 27, 2019. https://fuelcellsworks.com/news/koreangovernment-plans-roadmap-for-the-development-for-the-hydrogen-economy-implementation/ 51 IEA. National Strategies and Plans for Fuel Cells and Infrastructure – Implementing Agreement for a Programme of Research, Development and Demonstration. Page 56. 52 BusinessKorea.co.kr. South Korean Government to Focus on Data, AI and Hydrogen Platforms – R&D Investment Plan for 2019. March 8, 2019. http://www.businesskorea.co.kr/news/articleView.html?idxno=29796 53 The Korea Herald. [Hydrogen Korea} ‘Hydrogen technology could save ailing shipbuilders. September 12, 2018. http://www.koreaherald.com/view.php?ud=20180912000706 54 FuelCellToday. 2012 Fuel Cell Patent Review. Page 2. 55 E4tech.com. The Fuel Cell Industry Review 2018. Page 14. 56 US Hydrogen and Fuel Cell Technical Advisory Committee. Page 1 of cover letter accompanying 2017 Annual Report of the Hydrogen and Fuel Cell Technical Advisory Committee. November 30, 2018. 57 Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles – SAE China. Hydrogen Fuel Cell Technology Roadmap. Page 7. 58 IPHE.net. China Country Update – December 2018. https://www.iphe.net/china 59 ChinaDaily.com. World’s first hydrogen tram runs in China. October 27, 2017. http://www.chinadaily.com.cn/china/2017-10/27/content_33769630.htm 2019 HYDROGEN PATHWAYS 90 60 Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles – SAE China. Hydrogen Fuel Cell Technology Roadmap. Page 9. 61 Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles – SAE China. Hydrogen Fuel Cell Technology Roadmap. Preface. 62 Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles – SAE China. Hydrogen Fuel Cell Technology Roadmap. Page 1. 63 IPHE.net. China Country Update - December 2018. https://www.iphe.net/china 64 ChinaToday.com. China Province: Shandong Province. http://www.chinatoday.com/city/shandong.htm 65 Strategy Advisory Committee of the Technology Roadmap for Energy Saving and New Energy Vehicles – SAE China. Hydrogen Fuel Cell Technology Roadmap. Page 8. 66 IPHE.net. European Commission Country Update – November 2018. https://www.iphe.net/european-commission 67 IPHE.net. Germany Country Update - November 2018. https://www.iphe.net/germany 68 IPHE.net. France Country Update – November 2018. https://www.iphe.net/france 69 IPHE.net. United Kingdom Country Update – November 2018. https://www.iphe.net/united-kingdom 70 HyBalance.eu. Advanced facility to develop production of carbon-free hydrogen inaugurated today. September 3, 2018. http://hybalance.eu/wp-content/uploads/2018/09/Inauguration-of-HyBalanceadvanced-facility-to-develop-production-of-carbon-free-hydrogen.pdf 71 IPHE.net. European Commission Country Report – November 2018. https://www.iphe.net/european-commission 72 EuroParl.europa.eu. Review of the Clean Vehicles Directive. December 19, 2018. http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)614690 73 Setis.ec.europa.eu. European Commission. Fuel Cells and Hydrogen. 2014. https://setis.ec.europa.eu/system/files/Technology_Information_Sheet_Fuel_Cells_and_Hydrogen.pdf 74 FCH.europa.eu. Fuel Cells and Hydrogen Joint Undertaking. FCH JU Success Stories. 2018. Page 17. https://www.fch.europa.eu/sites/default/files/FCHJU-successstories-brochure-WEB-fin.pdf 75 FCH.europa.eu. Fuel Cells and Hydrogen Joint Undertaking. Multi-Annual Work Program 20142020. Page 21. https://www.fch.europa.eu/sites/default/files/FCH%202%20JU%20MAWP%20final%20%28ID%204221004%29.pdf 76 H2-International.com. H2 Mobility Joint Venture Established. September 21, 2015. https://www.h2-international.com/2015/09/21/h2-mobility-joint-venture-established/ 2019 HYDROGEN PATHWAYS 91 77 Iwan, Nikolas. H2 Mobility Deutschland. Building a Country Wide Hydrogen Refuelling Infrastructure. Slide 4. https://www.fch.europa.eu/sites/default/files/5.%20Iwan_H2Mobility%20%28ID%204768915%29.pdf 78 OpenEyesOpnion.com. Stewart, George. The U.S. to Allocate $38 million for Hydrogen and Fuel Cell Technology Research. August 14, 2018. https://www.openeyesopinion.com/the-u-s-to-allocate-38million-for-hydrogen-and-fuel-cell-technology-research/ 79 US Hydrogen and Fuel Cell Technical Advisory Committee. Pages 1-2 of cover letter accompanying 2017 Annual Report of The Hydrogen and Fuel Cell Technical Advisory Committee. November 30, 2018. https://www.hydrogen.energy.gov/pdfs/2017_htac_annual_report.pdf 80 California Fuel Cell Partnership. By the Numbers – FCEV Sales, FCEB & Hydrogen Station Data. https://cafcp.org/by_the_numbers 81 AirLiquide.com. Air Liquide announces locations of several hydrogen stations in northeast U.S.A. April 7, 2016. https://energies.airliquide.com/air-liquide-announces-locations-several-hydrogenstations-northeast-usa 82 Engadget.com. Moon, Mariella. Hydrogen-powered forklifts could speed up your Amazon deliveries. April 7, 2017. https://www.engadget.com/2017/04/07/amazon-fuel-cell-forklifts/ 83 IPHE.net. United States Country Update: November 2018. https://www.iphe.net/united-states 84 ACT-News.com. Fuel Cell & Hydrogen Energy Association. Markowitz, Morry. Fuel Cells and Hydrogen in 2018: A Banner Year to Build On. December 20, 2018. https://www.act-news.com/news/fuel-cell-hydrogen-2018/ 85 Energy.gov. H2@Scale Handout. https://www.energy.gov/sites/prod/files/2019/02/f59/fcto-h2-at-scale-handout-2018.pdf 86 Energy.gov. Department of Energy Announces $31 Million in Funding to Advance H2@Scale. Washington, DC. March 4, 2019. https://www.energy.gov/articles/department-energy-announces-31million-funding-advance-h2scale 87 Fuel Cell and Hydrogen Energy Association. 2016 State Policy Wrap Up: Fuel Cells and Hydrogen. 2016. Page 4. 88 ARB.ca.gov. California Air Resources Board. California transitioning to all-electric public bus fleet by 2040. December 14, 2018. https://ww2.arb.ca.gov/news/california-transitioning-all-electric-publicbus-fleet-2040 89 APEP.uci.edu. University of California -Irvine. Advanced Power and Energy Program Receives CEC Grant for California Renewable Hydrogen Deployment Roadmap. September 5, 2018. http://www.apep.uci.edu/NewsAndEvents/APEP_Receives_CEC_Grant_For_California_Renewable_H ydrogen_Deployment_Roadmap_090518.aspx 2019 HYDROGEN PATHWAYS 92 90 NEDO.go.jp. New Energy and Industrial Technology Development Organization. NEDO and DOE Announced Collaboration to Accelerate Hydrogen and Fuel Cell Technologies. October 10, 2017. https://www.nedo.go.jp/english/news/AA5en_100282.html 91 NRCan.gc.ca. Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative. https://www.nrcan.gc.ca/energy/alternative-fuels/fuel-facts/ecoenergy/18352 92 Budget.gc.ca. Budget 2019 – Chapter 2: Building a Better Canada. https://www.budget.gc.ca/2019/docs/plan/chap-02-en.html 93 PM.gc.ca. First Ministers meet to discuss economic growth and jobs for Canadians. December 7, 2018. https://pm.gc.ca/eng/news/2018/12/07/first-ministers-meet-discuss-economic-growth-andjobs-canadians 94 Government of Canada. The Pan-Canadian Framework on Clean Growth and Climate Change, 2016. Ottawa, Ontario. Page 37. 95 Mission-Innovation.net. Renewable and Clean Hydrogen. http://mission-innovation.net/our-work/innovation-challenges/renewable-and-clean-hydrogen/ 96 Canada.ca. Clean Fuel Standard. 2019-01-04. https://www.canada.ca/en/environment-climate-change/services/managing-pollution/energyproduction/fuel-regulations/clean-fuel-standard.html 97 Gov.BC.ca. Provincial government puts B.C. on path to 100% zero-emission vehicle sales by 2040. Office of the Premier. November 20, 2018. https://news.gov.bc.ca/releases/2018PREM0082-002226 98 TransitionEnergetique.gouv.qc.ca. 2018-2023 energy transition, innovation and efficiency master plan – Our Roadmaps. http://www.transitionenergetique.gouv.qc.ca/fileadmin/medias/pdf/plandirecteur/Master-Plan-TEQ-Roadmaps-2018-12-07.pdf Page 8. 99 Ballard.com. MacEwen, Randy. Business Update. Annual General Meeting. June 6, 2018. Slide 16 compiled based on information from the Hydrogen Council’s report, Hydrogen, Scaling Up. 100 IPHE.net. Country Updates. https://www.iphe.net/partners 101 E4tech. The Fuel Cell Industry Review, 2018. Page 15. www.fuelcellindustryreview.com 102 KPMG. Global Automotive Executive Survey 2018. Page 14. 103 Automobiles.Honda.com. 2018 Clarity Fuel Cell. Retrieved on March 25, 2019 from https://automobiles.honda.com/clarity-fuel-cell#how-much-cost 104 CarandDriver.com. Toyota Mirai. https://www.caranddriver.com/toyota/mirai 105 SSL.Toyota.com. 2019 Toyota Mirai Fuel Cell Electric Vehicle. Retrieved on March 25, 2019 from https://ssl.toyota.com/mirai/fcv.html 106 Hyundaiusa.com. NEXO – The world’s only fuel-cell SUV. Retrieved on March 25, 2019 from https://www.hyundaiusa.com/nexo/index.aspx 2019 HYDROGEN PATHWAYS 93 107 Ballard.com. Ballard and Audi Sign 3.5-Year Extension to Long-Term Program for Fuel Cell Passenger Cars. June 11, 2018. http://ballard.com/about-ballard/newsroom/newsreleases/2018/06/11/ballard-and-audi-sign-3.5-year-extension-to-long-term-program-for-fuel-cellpassenger-cars 108 AirLiquide.com. Air Liquide announces locations of several hydrogen stations in northeast U.S.A. April 7, 2016. https://energies.airliquide.com/air-liquide-announces-locations-several-hydrogenstations-northeast-usa 109 H2-International.com. H2 Mobility Joint Venture Established. September 21, 2015. https://www.h2-international.com/2015/09/21/h2-mobility-joint-venture-established/ 110 IPHE.net. 2030 Vehicles and Stations Goals. https://www.iphe.net/about 111 Toyota-Global.com. Toyota Environmental Challenge 2050. https://www.toyota-global.com/sustainability/environment/challenge2050/ 112 Times of Québec. First hydrogen fueling station in Quebec within three weeks. January 18, 2019. https://timesofquebec.com/index.php/2019/01/18/first-hydrogen-refueling-station-in-quebecwithin-three-weeks/ 113 Hondanews.ca. Honda Canada Inc. Announces Infrastructure Investment in Montreal Hydrogen Fueling Station. January 17, 2019. http://hondanews.ca/en/news/release/Honda-Canada-IncAnnounces-Infrastructure-Investment-in-Montreal-Hydrogen-Fueling-Station 114 NRCan.gc.ca. Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative. https://www.nrcan.gc.ca/energy/alternative-fuels/fuel-facts/ecoenergy/18352 115 Budget.gc.ca. Budget 2019 – Chapter 2: Building a Better Canada. https://www.budget.gc.ca/2019/docs/plan/chap-02-en.html 116 Budget.gc.ca. Budget 2019 – Chapter 2: Building a Better Canada. March 19, 2019. https://www.budget.gc.ca/2019/docs/plan/chap-02-en.html 117 The Globe and Mail. Whistler buses: Out with the new, in with the old. http://www.theglobeandmail.com/news/british-columbia/whistler-buses-out-with-new-in-withold/article15978630/ 118 Federal Transit Administration. About National Fuel Cell Bus Program. https://www.transit.dot.gov/research-innovation/about-national-fuel-cell-bus-program 119 FCH.europa.eu. FCH JU Projects. https://www.fch.europa.eu/fchju-projects 120 Bloomberg.com. Morales, Alex. London to Phase Out Diesel Buses from 2018 to Tackle ‘Toxic’ Air. November 30, 2016. https://www.bloomberg.com/news/articles/2016-11-30/london-to-phase-outdiesel-buses-from-2018-to-tackle-toxic-air 2019 HYDROGEN PATHWAYS 94 121 ARB.ca.gov. California Air Resources Board. California transitioning to all-electric public bus fleet by 2040. December 14, 2018. https://ww2.arb.ca.gov/news/california-transitioning-all-electric-public-busfleet-2040 122 GreenCarCongress.com. Ballard-powered fuel cell electric buses exceed 10 million kilometers of revenue service. January 4, 2017. http://www.greencarcongress.com/2017/01/20170104ballard.html 123 Hydrogenics.com. Hydrogenics Signs Purchase and License Agreement valued at over 50M USD for 1,000 Fuel Cell Bus Power Modules. June 8, 2017. https://www.hydrogenics.com/2017/06/08/hydrogenics-signs-purchase-and-license-agreementvalued-at-over-50m-usd-for-1000-fuel-cell-bus-power-modules/ 124 CUTRIC-CRITUC.org. CUTRIC Funding Advances Low-Carbon Fleet Technology. February 28, 2019. http: //cutric-crituc.org/newsblg 125 E4tech. The Fuel Cell Industry Review, 2018. www.fuelcellindustryreview.com. Page 21. 126 TTNews.com. Nikola Moves Closer to Marketing Hydrogen-Electric Trucks. January 16, 2019. https://www.ttnews.com/articles/nikola-moves-closer-marketing-hydrogen-electric-trucks 127 eraAlberta.ca. Emissions Reduction Alberta. Alberta Motor Transport Association (AMTA) – Alberta Zero Emissions Truck Electrification Collaboration. March 12, 2019. https://eralberta.ca/news/stories/eras-best-challenge/ 128 UNFCC.int. Canada’s NIR 2018. Table 2-12, Page 62. https://unfccc.int/documents/65715 129 Fuel Cell and Hydrogen Energy Association. The Business Case for Fuel Cells 2015: Powering Corporate Sustainability. 2015. Page 5. 130 Engadget.com. Moon, Mariella. Hydrogen-powered forklifts could speed up your Amazon deliveries. April 7, 2017. https://www.engadget.com/2017/04/07/amazon-fuel-cell-forklifts/ 131 CanadianHydrogenandFuelCellAssociation.ca. Case Study – Walmart Canada Fuel Cell Forklift Fleet. http://www.chfca.ca/say-h2i/materials-handling/walmart-canada-fuel-cell-forklift-fleet 132 TheStar.com. Grewal, San. Canadian Tire suspends hydrogen project after Star story. October 21, 2014. https://www.thestar.com/news/gta/2014/10/21/canadian_tire_suspends_hydrogen_project_after_sta r_story.html 133 CaledonEnterprise.com. Strader, Matthew. TSSA approves hydrogen Bolton Canadian Tire development. November 1, 2016. https://www.caledonenterprise.com/news-story/6941342-tssaapproves-hydrogen-bolton-canadian-tire-development/ 134 CalendonEnterprise.com. Grewal, San. Caledon residents angry over re-emergence of Canadian Tire hydrogen project. July 23, 2016. https://www.caledonenterprise.com/news-story/6780558caledon-residents-angry-over-re-emergence-of-canadian-tire-hydrogen-project/ 2019 HYDROGEN PATHWAYS 95 135 H2andYou.org. Why Walmart Canada Is Investing in Hydrogen Fuel Cell Technology. Page 1. http://h2andyou.org/pdf/walmart_forklifts.pdf 136 ChinaDaily.com. World’s first hydrogen tram runs in China. October 27, 2017. http://www.chinadaily.com.cn/china/2017-10/27/content_33769630.htm 137 Hydrogenics.com. Hydrogenics and Alstom Transport Sign Agreement to Develop and Commercialize Hydrogen-Powered Commuter Trains in Europe. May 27, 2015. https://www.hydrogenics.com/2015/05/27/hydrogenics-and-alstom-transport-sign-agreement-todevelop-and-commercialize-hydrogen-powered-commuter-trains-in-europe/ 138 Alstom.com. Alstom presents hydrogen train in six federal states in Germany. January 23, 2019. https://www.alstom.com/press-releases-news/2019/1/alstom-presents-hydrogen-train-six-federalstates-germany 139 Alstom.com. Coradia iLint – the world’s 1st hydrogen powered train. https://www.alstom.com/our-solutions-rolli ng- stock/coradia-ilint-worlds-1st-hydrogen-poweredtra in 140 Siemens.com. Siemens receives funding approval for developing fuel cell drive for trains. February 26, 2018. https://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2018/mobility/pr20180 20172moen.htm&content[]=MO 141 Ballard.com. Ballard Receives Order From Porterbrook For Fuel Cell Module to Power U.K. HydroFLEX Train. December 12, 2018. http://ballard.com/about-ballard/newsroom/newsreleases/2018/12/13/ballard-receives-order-from-porterbrook-for-fuel-cell-module-to-power-u.k.hydroflex-train 142 Metrolinx.com. Factsheet – Hydrail Feasibility Study. http://www.metrolinx.com/en/news/announcements/hydrailresources/Hydrail%20Factsheet_Feb21.pdf 143 NewsOntario.ca. Ontario Taking Next Steps in Testing Hydrogen-Powered Train Technology. https://news.ontario.ca/mto/en/2018/02/ontario-taking-next-steps-in-testing-hydrogen-poweredtrain-technology.html. February 22, 2018. 144 TheEngineer.co.uk. World’s first hydrogen fuel cell-powered trains enter service in Germany. September 18, 2018. https://www.theengineer.co.uk/hydrogen-fuel-cell-trains/ 145 IMO.org. UN body adopts climate change strategy for shipping. April 13, 2018. http://www.imo.org/en/MediaCentre/PressBriefings/Pages/06GHGinitialstrategy.aspx 146 HydrogenCouncil.com. Hydrogen scaling up – A sustainable pathway for the global energy transition. November 2017. Page 39. http://hydrogencouncil.com/wpcontent/uploads/2017/11/Hydrogen-Scaling-up_Hydrogen-Council_2017.compressed.pdf 147 GGZeroMarine.com. Current Projects - The Water-Go-Round. Retrieved on March 26, 2019 from https://ggzeromarine.com/projects/ 2019 HYDROGEN PATHWAYS 96 148 WorldMaritimeNews. Boreal, Wärtsilä Join Forces on Hydrogen-Powered Ferries. February 5, 2018. https://worldmaritimenews.com/archives/243089/boreal-wartsila-join-forces-on-hydrogen-p owered-ferries/ 149 Ballard.com. MacEwen, Randy. Business Update – June 6, 2018 Annual General Meeting. Slide 32. http://ballard.com/docs/default-source/investors/2018-agm-business-update.pdf?sfvrsn=2 150 HydrogenEurope.eu. Project MARANDA. Retrieved on March 26, 2019 from https://hydrogeneurope.eu/project/maranda 151 Scottish-Enterprise-MediaCentre.com. Ferguson Marine to develop world-first renewablespowered hydrogen ferry. June 19, 2018. https://www.scottish-enterprisemediacentre.com/news/ferguson-marine-to-develop-world-first-renewables-powered-hydrogenferry 152 Act-News.com. Shumaker, Cory. California Hydrogen Business Council. Hydrogen Moving into Ports & Maritime: A Global Shift. Retrieved on March 26, 2019 from https://www.actnews.com/news/hydrogen-moving-ports-maritime/ 153 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 6. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 154 Shell; Wuppertal Institute. Shell Hydrogen Study Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Slide 20. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 155 Roland Berger. Development of Business Cases for Hydrogen Fuel Cells and Hydrogen Applications for Regions and Cities – Hydrogen injection into the natural gas grid. Brussels. Fall 2017. Slide 12. 156 Roland Berger. Development of Business Cases for Hydrogen Fuel Cells and Hydrogen Applications for Regions and Cities – Hydrogen injection into the natural gas grid. Brussels. Fall 2017. Slide 12. 157 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 6. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 158 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 6. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 159 CGA.ca. Federal Clean Fuel Standard Discussion Paper Comments. Ottawa, ON. April 25, 2017. http://www.cga.ca/publication/cga-federal-clean-fuel-standard-discussion-paper-comments/ 160 Newswire.ca. Canada’s natural gas utilities propose target for renewable natural gas content. May 25, 2016. https://www.newswire.ca/news-releases/canadas-natural-gas-utilities-proposetarget-for-renewable-natural-gas-content-580788731.html 2019 HYDROGEN PATHWAYS 97 161 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 6. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 162 OsakaGas.co.jp. Osaka Gas’ residential polymer electrolyte fuel cell (PEFC) cogeneration system. Retrieved on February 25, 2019 from: http://www.osakagas.co.jp/en/rd/fuelcell/pefc/reformed/enefarm.html 163 Enefield.eu. ene-field. Fuel Cells x Combined Heat and Power. http://enefield.eu/news/reports/european-supply-chain-analysis-report/ 164 FCH.europa.eu. FCH JU New Project PACE Will Deploy over 2500 Micro CHP Units. Retrieved on March 27, 2019. https://www.fch.europa.eu/news/fch-ju-new-project-pace-will-deploy-over-2500micro-chp-units 165 Enefield.eu. European Supply Chain Analysis Report. April 30, 2014. http://enefield.eu/wp-content/uploads/2014/06/ene-field-EU-supply-chain-analysis-report-Final30042014.-Website.pdf 166 Energy.gov. A.O. Smith Corporation. Jorgensen, Kris L. Demonstration of µCHP in Light Commercial Hot Water Applications. https://www.energy.gov/eere/buildings/downloads/ao-smith-demonstrateunderutilized-micro-chp 167 EnergyMag.ca. O’Meara, Dina. Micro CHP – Creating Opportunities of a Different Scale. Issue 3, 2015. http://www.energymag.ca/markets/micro-chp-creating-opportunities-of-a-different-scale/ 168 EMTFSask.ca. Saskatchewan Research Council. James, Chris. Micro Combined Heat and Power (CHP) Technology. March 7, 2012. https://www.emtfsask.ca/presentations/saskatoon/07-03-12chris-james-chp.pdf 169 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Page 7. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. 170 E4tech. The Fuel Cell Industry Review, 2018. www.fuelcellindustryreview.com. Page 44. 171 Canadian Hydrogen and Fuel Cell Association; Innovation, Science & Economic Development Canada; MNP LLP. Page 7. Canadian Hydrogen and Fuel Cell Sector Profile, 2018. Canada. 172 Pembina.org. Hydrogenics. 2009 International Wind-Diesel Workshop – Using Hydrogen Energy Storage in Remote Communities. June 1, 2009. https://www.pembina.org/reports/wind-diesel-1robert-mcgillivray.pdf 173 IPHE.net. Country Updates. https://www.iphe.net/ 174 IEAHydrogen.org. Miles, Shannon – Natural Resources Canada; Gillie, Mary – EA Technology Limited. Benefits and Barriers of the Development of Renewable/Hydrogen Storage Systems in Remote and Island Communities. 2010. Page 2. http://ieahydrogen.org/pdfs/AnnexReports/RemoteIslandBenefits.aspx. 2019 HYDROGEN PATHWAYS 98 175 Atlas.gc.ca. The Atlas of Canada – Remote Communities Energy Database. http://atlas.gc.ca/rcedbdece/en/index.html 176 ConferenceBoard.ca. The Conference Board of Canada. Knowles, James. Power Shift – Electricity for Canada’s Remote Communities. Ottawa, September 2016. Page ii. https://www.conferenceboard.ca/temp/4a185c47-2724-4052-a9f406ce8e7fc90a/8249_PowerShift_RPT.pdf 177 BCHydro.com. News Release - Innovative energy storage a breakthrough for remote communities. September 9, 2010. https://www.bchydro.com/news/press_centre/news_releases/2010/energy_storage_bella_coola.html 178 Energy and Mines Ministers. Towards Renewable Energy Integration in Remote Communities – A summary of Electric Reliability Considerations. Energy and Mines Ministers’ Conference. Iqaluit, Nunavut. August 2018. Page 13. https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/emmc/pdf/2018/en/1800016%20Remote%20Communities%20Summary_acc_e.pdf 179 IEAHydrogen.org. Miles, Shannon – Natural Resources Canada; Gillie, Mary – EA Technology Limited. Benefits and Barriers of the Development of Renewable/Hydrogen Storage Systems in Remote and Island Communities. 2010. Page 9. http://ieahydrogen.org/pdfs/AnnexReports/RemoteIslandBenefits.aspx. 180 IEAHydrogen.org. Miles, Shannon – Natural Resources Canada; Gillie, Mary – EA Technology Limited. Benefits and Barriers of the Development of Renewable/Hydrogen Storage Systems in Remote and Island Communities. 2010. Page 14. http://ieahydrogen.org/pdfs/AnnexReports/RemoteIslandBenefits.aspx. 181 Shell; Wuppertal Institute. Shell Hydrogen Study – Energy of the Future? Sustainable Mobility through Fuel Cells and H2. Page 29. https://www.shell.com/energy-and-innovation/newenergies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 182 Shell; Wuppertal Institute. Shell Hydrogen Study – Energy of the Future? Sustainable Mobility through Fuel Cells and H2. Page 29. https://www.shell.com/energy-and-innovation/newenergies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 183 Hydrogen Europe. FCH JU. Hydrogen Roadmap Europe. January 2019. Page 40. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf 184 FCH.Europa.eu. Hydrogen Europe. Hydrogen Roadmap Europe. 2019. Page 37. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf 185 WorldSteel.org. Ҫiftҫi, Baris. Blog: Potential game changers for the future of steelmaking. May 3, 2017. https://www.worldsteel.org/media-centre/blog/2017/blog-outlook-ferrous-scrap.html 2019 HYDROGEN PATHWAYS 99 186 Siemens.com. Construction starts at world’s largest hydrogen plant. Munich/Linz, Austria. April 16, 2018. https://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2018/corporate/pr2018 040253coen.htm 187 FCH.Europa.eu.Launch of Refhyne, World’s Largest Electrolysis Plant in Rhineland, Germany. Retrieved March 29, 2019 from https://www.fch.europa.eu/news/launch-refhyne-worlds-largestelectrolysis-plant-rhineland-refinery 188 World Hydrogen Council. How hydrogen empowers the energy transition. January 2017. Page 11. http://hydrogencouncil.com/wp-content/uploads/2017/06/Hydrogen-Council-Vision-Document.pdf 189 Government of Canada. The Pan-Canadian Framework on Clean Growth and Climate Change, 2016. Ottawa, Ontario. Page 19. 190 Generation Energy Council. Canada’s Energy Transition – Getting to Our Energy Future, Together. June 2018. Page 34. 191 NRCan.gc.ca. Glencore RAGLAN Mine Renewable Electricity Smart-Grid Pilot Demonstration. https://www.nrcan.gc.ca/energy/funding/current-funding-programs/eii/16662 192 NRCan.gc.ca. Nunavik Mining: RAGLAN 2.0 Large Scale Renewable Energy Smart Grid. https://www.nrcan.gc.ca/energy/funding/icg/20481 193 E4tech. The Fuel Cell Industry Review, 2018. Page 45. www.fuelcellindustryreview.com 194 FCHEA.org. Stationary Power. Retrieved on March 29, 2019 from http://www.fchea.org/stationary 195 IPHE.net. United States Country Update: November 2018. https://www.iphe.net/united-states 196 ACT-News.com. Fuel Cell & Hydrogen Energy Association. Markowitz, Morry. Fuel Cells and Hydrogen in 2018: A Banner Year to Build On. December 20, 2018. https://www.act-news.com/news/fuel-cell-hydrogen-2018/ 197 E4tech.com. Fuel Cell Industry Review 2018. Page 33. 198 StreetInsider.com. FuelCell Energy (FCEL) Notified that POSCO is Terminating MOU. June 20, 2018. https://www.streetinsider.com/Corporate+News/FuelCell+Energy+%28FCEL%29+Notified+that+POS CO+is+Terminating+MOU/14327814.html 199 E4tech.com. The Fuel Cell Industry Review 2018. Page 34. 200 E4tech.com. The Fuel Cell Industry Review 2018. Page 33. 201 Hydrogenics.com. Kolon Hydrogenics Starts Commercial Operation of Megawatt Fuel Cell System in South Korea. November 3, 2015. https://www.hydrogenics.com/2015/11/03/kolon-hydrogenicsstarts-commercial-operation-of-megawatt-fuel-cell-system-in-south-korea/ 2019 HYDROGEN PATHWAYS 100 202 H2GTA.ca. Peppley, Brant A. Hydrogen, Fuel Cells and Backup Power. Queen’s University, Sustainable Energy Engineering. 2016. Slide 2. http://www.h2gta.ca/wpcontent/uploads/2015/11/Backup-Power-Systems-Queens-B-Peppley.pdf 203 Generation Energy Council. Canada’s Energy Transition – Getting to Our Energy Future, Together. June 2018. Page 8. 204 Enbridge.com. Advancing Green Energy Brochure. 2012. https://www.enbridge.com/~/media/www/Site%20Documents/Delivering%20Energy/GreenEnergyB rochureMay2012.PDF 205 Magazine.APPRO.org. Enbridge’s hybrid fuel cell breaks new ground. https://magazine.appro.org/component/content/article.html?id=1453&redirected=1 206 H2GTA.ca. Peppley, Brant A. Hydrogen, Fuel Cells and Backup Power. Queen’s University, Sustainable Energy Engineering. 2016. Slides 8, 28, 29. http://www.h2gta.ca/wpcontent/uploads/2015/11/Backup-Power-Systems-Queens-B-Peppley.pdf 207 DENA – Germany Energy Agency. Power to Gas system solution – Opportunities, challenges and parameters on the way to marketability. Page 5. 208 HyBalance.eu. Advanced facility to develop production of carbon-free hydrogen inaugurated today. September 3, 2018. http://hybalance.eu/wp-content/uploads/2018/09/Inauguration-ofHyBalance-advanced-facility-to-develop-production-of-carbon-free-hydrogen.pdf 209 Bakx, Kyle. CBC.ca. How hydrogen could shake up Canada’s energy sector. August 19, 2018. https://www.cbc.ca/news/business/hydrogen-toyota-atco-enbridge-1.4788068 210 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 29. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 211 Hydrogenics. Murray, Anna. Markham Energy Storage Facility. June 13, 2018. Slide 5. 212 O’Meara, Dina. Energymag.ca. Power-to-Gas: Re-Thinking Energy Storage Options. Issue 3, June 2016. http://www.energymag.ca/markets/power-to-gas-rethinking-energy-storage-options/ 213 H2GTA .ca. Murray, Anna. Hydrogenics. Markham Energy Storage Facility. June 13, 2018. http://www.h2gta.ca/wp-content/uploads/2018/06/AMurray-Hydrogenics-Markham-EnergyStorage-Facility-061318.pdf 214 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 9. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 215 Energy.gov. Fuel Cell Technologies Office. Hydrogen Production. Retrieved on March 30, 2019 from https://www.energy.gov/eere/fuelcells/hydrogen-production 2019 HYDROGEN PATHWAYS 101 216 Shell; Wuppertal Institute. Shell Hydrogen Study Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Slide 9. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 217 Shell; Wuppertal Institute. Shell Hydrogen Study Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Slide 8. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 218 ResearchGate.net. Brown, Daryl R. Pacific Northwest National Laboratory. Hydrogen Production and Consumption in the U.S.; The Last 25 Years. https://www.researchgate.net/profile/Daryl_Brown2/publication/296332889_Hydrogen_Production _and_Consumption_in_the_US_The_Last_25_Years/links/56d495dc08ae9e9dea65b4fe/HydrogenProduction-and-Consumption-in-the-US-The-Last-25-Years.pdf?origin=publication_detail 219 Shell; Wuppertal Institute. Shell Hydrogen Study Report– Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Page 29. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 220 AirLiquide.ca. Air Liquide invests in the world’s largest membrane-based electrolyzer to develop its carbon-free hydrogen production. February 25, 2019. https://industry.airliquide.ca/air-liquideinvests-worlds-largest-membrane-based-electrolyzer-develop-its-carbon-free-hydrogen 221 PM.gc.ca. First Ministers meet to discuss economic growth and jobs for Canadians. December 7, 2018. https://pm.gc.ca/eng/news/2018/12/07/first-ministers-meet-discuss-economic-growth-andjobs-canadians 222 AirLiquide.com. Air Liquide to build first world scale liquid hydrogen production plant dedicated to the supply of Hydrogen energy markets. November 26, 2018. https://en.media.airliquide.com/news/air-liquide-to-build-first-world-scale-liquid-hydrogenproduction-plant-dedicated-to-the-supply-of-hydrogen-energy-markets-1cde-56033.html 223 Asahi-Kasei.co.jp. Trial operation of plant for green hydrogen in Soma, Fukushima. https://www.asahi-kasei.co.jp/asahi/en/news/2018/e180522.html 224 JapanTimes.co.jp. Construction begins on large hydrogen plant in Fukushima. August 10, 2018. https://www.japantimes.co.jp/news/2018/08/10/national/construction-begins-large-hydrogenplant-fukushima/#.XIF2QWfrvIU 225 Canadian Small Modular Reactor Roadmap Steering Committee. A Call to Action: A Canadian Roadmap for Small Modular Reactors. November 2018. Page i. https://smrroadmap.ca/ 226 PolicyExchange.org. Rooney, Matt. Small Modular Reactors – The next big thing in energy? https://policyexchange.org.uk/wp-content/uploads/2018/01/Small-Modular-Reactors-1.pdf 2019 HYDROGEN PATHWAYS 102 227 Canadian Small Modular Reactor Roadmap Steering Committee. A Call to Action: A Canadian Roadmap for Small Modular Reactors. November 2018. Page 38. https://smrroadmap.ca/ 228 Mission-Innovation.net. IC8 – Renewable and Clean Hydrogen. http://www.missioninnovation.net/our-work/innovation-challenges/renewable-and-clean-hydrogen/ 229 Shell; Wuppertal Institute. Shell Hydrogen Study Presentation – Energy of the Future? Sustainable Mobility through Fuel Cells and H2., Hydrogen Pipelines per Country. Slide 16. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#vanityaHR0cHM6Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQtaW5ub3ZhdGlvbi90aGUtZW5lcmd5LWZ1dHV yZS9mdXR1cmUtdHJhbnNwb3J0L2h5ZHJvZ2VuLmh0bWw 230 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Pages 22-23. https://nrc-publications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 231 National Research Council. Yoo, Yeong; Glass, Nancy; Baker, Ryan. Review of hydrogen tolerance of key Power-to-Gas (P2G) components and systems in Canada. July 14, 2017. Page 25. https://nrcpublications.canada.ca/eng/view/object/?id=94a036f4-0e60-4433-add5-9479350f74de 232 ErcoWorldwide.com.Hydrogen (Not Compressed) – WHMIS Controlled Product – Material Safety Data Sheet. Rev. 4. Issued April 23, 2012. http://www.ercoworldwide.com/wpcontent/uploads/MSDS-Hydrogen-not-compressed-Rev-4.pdf 233 Standards Council of Canada. Director of Accredited Standards Development Organizations. https://www.scc.ca/accreditation/standards/directory-of-accredited-standards-development-organizations 234 Standards Council of Canada. https://www.scc.ca/en/standardsdb/standards/23322 235 TransitionEnergetique.gouv.qc.ca Québec. Joining forces for a sustainable energy future – 20082023 energy transition, innovation and efficiency master plan. Objectives and roadmaps. 2018. Page 26. http://www.transitionenergetique.gouv.qc.ca/fileadmin/medias/pdf/plandirecteur/PAP_TEQ_PlanDirecteur_Web_ANG.pdf 236 Scribd.com. Hydrogen Energy Installation. https://www.scribd.com/document/313890642/Hydrogen-Energy-Installation# 237 Interim Document for the Standards of Construction of Hydrogen Refueling Station Saf ety Standards for the Hydrogen Highway. Correspondence between D. Kauling and Susana Katz. March 24, 2017. 238 NPC.org. National Petroleum Council. Advancing Technology for America’s Transportation (2012) Chapter 15 Hydrogen. http://www.npc.org/reports/FTF-report-080112/Chapter_15-Hydrogen.pdf 239 ScienceDirect.com. Hydrogen fuel cell electric vehicle performance and user-response assessment: Results of an extended driver study. International Journal of Hydrogen Energy Volume 43, Issue 27, 5 July 2018, Pages 12442-12454. https://www.sciencedirect.com/science/article/pii/S0360319918313648 240 Department of Finance Canada. Investing in Middle Class Jobs – Fall Economic Statement. 2018. Page 74. 2019 HYDROGEN PATHWAYS 103