IPHE ILC Meeting_11-06

Hydrogen Technology Roadmap
for Australia
Presentation to
IPHE Implementation-Liaison Committee
20 June 2008
Bruce Godfrey
WYLD GROUP PTY LTD
WYLD GROUP, MMA AND BWISEIP
Background
 On the 13 April 2007, the Council of Australian
Governments (COAG) announced four energy
technology roadmaps would be developed.
 Coal-gasification, geothermal, hydrogen and high-
temperature solar thermal.
 Objectives of the hydrogen roadmapping process:
 To assess Australia’s hydrogen and fuel cell research
capabilities and strengths; and
 To identify what actions Australia could take to prepare
for the possible emergence of a hydrogen economy

Including, among other outputs, the suggested role of Australian
governments, industry and researchers in enabling and facilitating
the development of a hydrogen economy in Australia.
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Methodology
 Bottom-up data gathering though consultation with
stakeholders by one-on-one interviews and workshops
 Desk-top research
 Review of national and international literature
 Modelling of costs in Australia of production of hydrogen and of
stationary power generation using fuel cells to provide a forecast of
uptake of each in competitive markets here
 Identifying, at a high level, the international and national
intellectual property (IP) landscape for hydrogen and fuel cells
 Analysis of data and writing of roadmap, including
testing of draft with key stakeholders
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Hydrogen and fuel cells
 Hydrogen as an energy carrier
 Clean and green production routes for hydrogen are
possible – but less-developed and higher cost fuel
 Hydrogen is complementary and competitive to other
major energy carriers – electricity and liquid fuels
 Hydrogen does not need fuel cells for its utilisation –
ICEs and gas turbines work well
 Fuel cells as energy converters
 Fuel cells are complementary and competitive to
conventional means of electricity and heat production
 Emergence of a substantial fuel cell market does not
need the development of a hydrogen fuelling network
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Supporting H2 and FCs to market
 Governments and industry sectors have options
available to them to deliver low GHG emission energy
services to consumers.
 Hydrogen and fuel cells are undergoing significant
consideration and development overseas as one option.
 Investments are being made by governments and
industry to address:



Technical and market barriers in order to build a hydrogen
delivery infrastructure in various countries
Develop safety codes and standards
Educate decision-makers, customers, and the future
workforce about hydrogen and fuel cell technologies.
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Alternate market views
 There are other options to deliver the energy services
consumers demand that can achieve the same or better
GHG abatement than H2 and FCs in many applications
 Hydrogen has multiple losses of efficiency from production
through delivery and storage to point of end use.

Why use (particularly renewable) electricity to make hydrogen
that then is used to make electricity?
 MIT study on drive-trains for LDVs concluded that the
evolution of battery and fuel-cell technology over the next 1020 years will likely dictate whether the plug-in hybrid or the
fuel-cell vehicle succeeds the hybrid vehicle. .......... The fuelcell, which faces significant technical and infrastructure
hurdles, is likely to have minimal impact over the 30-year
time horizon of this study, even with successful development.
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H2 and FCs – Australia
 Captive uses of hydrogen here mirror global uses
 Fertilisers, explosives and refining
 Very small local industry base
 Fragmented representation
 Wide, but rarely deep, R&D activities
 CFCL, CSIRO, NHMA (and its members)
 Australian Academy of Sciences review:


Found ARC funding from 2002 to 2008 of $22,642,712 for 48
projects and four fellowships.
Concluded that R&D profile in Australia for hydrogen and fuel
cells is not strong — notwithstanding that there are pockets
in Australia of world-class research and researchers
 Only a few demonstrations undertaken so far
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IP Landscape in Australia
 Global level of IP activity in hydrogen technologies is
rapidly increasing, particularly in the area of fuel cells.
 Australia does not feature highly in the number of global
patent applications.
 What IP we have is currently scattered with no national
cohesion.
 However, Australia does have some useful IP in
hydrogen production and storage as well as fuel cells.
 There are no broad constraints to development and
use in Australia of H2 and FC products.
 Main IP barrier to entry for any new players to the
market is on a technology-solution basis.
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H2 cost perspectives - Australia
 Delivered hydrogen under varying CO2-e prices
Hydrogen Petrol Litre Equivalent Price At Dispensing Point ($/PLE)
$3.50
$3.00
$0/tonne CO2 Small NG
$0/tonne CO2 Large NG
$0/tonne CO2 ULP
$20/tonne CO2 Small NG
$20/tonne CO2 Large NG
$20/tonne CO2 ULP
$40/tonne CO2 Small NG
$40/tonne CO2 Large NG
$40/tonne CO2 ULP
$60/tonne CO2 Small NG
$60/tonne CO2 Large NG
$60/tonne CO2 ULP
$80/tonne CO2 Small NG
$80/tonne CO2 Large NG
$80/tonne CO2 ULP
$100/tonne CO2 Small NG
$100/tonne CO2 Large NG
$100/tonne CO2 ULP
$120/tonne CO2 Small NG
$120/tonne CO2 Large NG
$120/tonne CO2 ULP
$2.50
$2.00
$1.50
Price Equivalence
$1.00
2010
2015
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2020
2025
2030
2035
2040
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FC DG cost perspectives - Australia
 FC residential stationary under varying CO2-e prices
$450
$400
3kW DFC $0/MWh
3kW DFC $20/MWh
3kW DFC $40/MWh
3kW DFC $60/MWh
3kW DFC $80/MWh
3kW DFC $100/MWh
3kW DFC $120/MWh
Residential ($/MWh)$0Carbon Price
Residential ($/MWh)$20Carbon Price
Residential ($/MWh)$40Carbon Price
Residential ($/MWh)$60Carbon Price
Residential ($/MWh)$80Carbon Price
Residential ($/MWh)$100Carbon Price
Residential ($/MWh)$120Carbon Price
Delivered Electricity Price ($/MWh)
$350
$300
$250
$200
$150
$100
$50
2010
2015
WYLD GROUP, MMA AND BWISEIP
2020
2025
2030
2035
2040
10
FC DG cost perspectives - Australia
 FC commercial stationary under varying CO2-e prices
$450
$400
300kW FC small Reformer $0/MWh
300kW DFC $0/MWh
Commercial ($/MWh) $0 Carbon Price
300kW FC small Reformer $20/MWh
300kW DFC $20/MWh
Commercial ($/MWh) $20 Carbon Price
300kW FC small Reformer $40/MWh
300kW DFC $40/MWh
Commercial ($/MWh) $40 Carbon Price
300kW FC small Reformer $60/MWh
300kW DFC $60/MWh
Commercial ($/MWh) $60 Carbon Price
300kW FC small Reformer $80/MWh
300kW DFC $80/MWh
Commercial ($/MWh) $80 Carbon Price
300kW FC small Reformer $100/MWh
300kW DFC $100/MWh
Commercial ($/MWh) $100 Carbon Price
300kW FC small Reformer $120/MWh
300kW DFC $120/MWh
Commercial ($/MWh) $120 Carbon Price
Delivered Electricity Price ($/MWh)
$350
$300
$250
$200
$150
$100
$50
2010
2015
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2020
2025
2030
2035
2040
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Conclusions from the analysis
 With the imminent introduction of an emissions-trading




scheme in Australia, fuel-cell stationary power systems for
distributed generation applications may become a technologyof-choice in the residential and commercial sectors.
Demonstration projects for production and captive use of
hydrogen in large-scale IGCC power generation will proceed —
albeit in the absence of CCS, at least initially.
There appear to be prospects for portable energy applications
and some niche transport energy applications for fuel cells and
hydrogen.
It is likely that other advanced economies will develop significant
sectors based on one or both of hydrogen and fuel cells.
Australia risks significant competitive disadvantage in these
global hydrogen and fuel cell areas if it is simply left to natural
market forces to prepare for their introduction locally.
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Need for H2 and FCs in Australia
 Carbon abatement —
HIGH
Carbon
Abatement
 Pollution reduction —
LOW
 Energy security —
LOW, except in
specific liquid fuels
where it is HIGH
 International
International
Competitiveness
PRIME
DRIVERS
OF CHANGE
TO ENERGY
SYSTEMS
Pollution
Reduction
Energy
Security
competitiveness —
HIGH
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Need for H2 and FCs in Australia
 Primary need for Australia – at least in the near to
medium terms – is to ensure that both are actively
maintained as an option to enable full exploration of
potential in Australia’s long-term energy positioning.
 Embracing or rejecting the move to a ‘hydrogen
economy’ requires compelling arguments either way
 “Actively maintained” means Australian governments,
industry, researchers and the broader community
collaborating and co-investing:


To prepare technically and socially for possible widespread
deployment.
To foster local industry development opportunities as they
arise.
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Roadmap vision
and strategies
Active in
International
Forums
Education
and
Outreach
MARKET
Viable
Near-Term
Applications
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POLICY
VISION
DEVELOPMENT
Regulations,
Codes and
Standards
Options
Analysis
Modelling
KNOWLEDGE
BUILDING
Coordinated
Sector
Representation
FRAMEWORK
By 2020 Australia is
effectively exploiting
emerging hydrogen
and fuel cell market
and supply-chain
opportunities, locally
and globally.
SUPPLY-CHAIN
DEVELOPMENT
Large
Scale
Demonstrations
COMPETENCE
BUILDING
World-Scale
Collaborative R&D
Projects
Market
Support
Mechanisms
Capacity and
Capability
Building
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Economic benefits
 The economic benefits of early preparation, as proposed in
the roadmap, are likely to exceed the costs because:
 Australia will be prepared to move earlier and more
efficiently to benefit economically and environmentally
from deployment of products and services based on fuel
cells and/or hydrogen; and
 Australian companies and researchers will be better
positioned to participate successfully in global supply
chains for hydrogen and fuel cell components, systems
and technology.
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Proposed next steps
 Implementation would require a long term
commitment from the public, private and research
sectors.
 Recommendation for establishment of a High-level
Coordination Group (HCG) comprising Australian
government, industry and research sector
representatives
 Oversight the start-up and progress of the activities
under this roadmap so that by 2020 credible conclusions
about the future of hydrogen and fuel cells in Australia’s
energy mix can be made, taking into account competing
options.
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