Norwegian Hydrogen Strategy
Strategy for hydrogen as an energy carrier in transport
and stationary energy supply in Norway
1
Table of contents
0
PREFACE ......................................................................................................................... 3
1
INTRODUCTION............................................................................................................ 4
2
1.1
Background............................................................................................................... 4
1.2
Why have a strategy?............................................................................................... 4
1.3
Elements of a strategy (summary) .......................................................................... 6
VISION AND GOALS FOR THE HYDROGEN STRATEGY................................... 8
2.1
Why invest in hydrogen? ......................................................................................... 8
2.1.1
2.1.2
2.2
3
Vision and goals for investment ............................................................................ 10
HOW TO REACH THE GOALS – THE STRATEGY.............................................. 11
3.1
Introduction ............................................................................................................ 11
3.2
The national hydrogen platform........................................................................... 13
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.3
Why have a hydrogen platform and what is it?................................................ 13
Activities in the hydrogen platform ................................................................. 13
Roles and responsibilities................................................................................. 15
The organisation of the hydrogen platform...................................................... 16
The funding of the hydrogen platform ............................................................. 18
Cooperation and synergy benefits between public and private investment ..... 19
Activities in the strategy not included in the hydrogen platform ...................... 20
3.3.1
3.3.2
2
Major international efforts ................................................................................. 8
Norway has the preconditions for investment – What will it get in return? ...... 9
Introduction ...................................................................................................... 20
Safety, codes and standards.............................................................................. 20
0
PREFACE
Hydrogen is an energy carrier that can be produced from all types of energy sources,
including natural gas and renewable energy sources, both of which Norway has in abundance.
Although the use of hydrogen does not create harmful emissions, the overall effect on the
environment will depend on how the hydrogen is produced and transported to the consumer.
The greatest environmental benefits of the use of hydrogen as an energy carrier will be in the
transport sector.
Norwegian research communities and industrial players are at the forefront of the
development of those fields of technology that are necessary in order to be able to utilise
hydrogen as an energy carrier. This work has been closely linked to research and development
activities financed by, among others, the Research Council of Norway. Norwegian players are
also heavily involved in various hydrogen projects under the EU’s Framework Programme for
Research, Technological Development and Demonstration Activities. The increase in
international activity is an important precondition for the Norwegian efforts in this field. At
the same time, Norway as an energy nation has a special responsibility to take an active part
in the international efforts to develop hydrogen as an energy carrier.
The aim of our strategy is to consolidate and coordinate the Norwegian hydrogen efforts and
make them more visible. Our primary goal is to ensure that Norwegian research communities
will occupy a central position in a possible future hydrogen market. Coordinated efforts are
also important in order to ensure a more successful integration of hydrogen research,
development and demonstration activities with other policies relating to environment-friendly
energy and transport solutions.
Thorhild Widvey
Torild Skogsholm
Minister of Petroleum and Energy
Minister of Transport and
Communications
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1
Introduction
1.1
Background
In the Official Inquiry Report on Gas Technology, the Environment and Value Creation1, the
Government decided to increase its targeting of hydrogen as an energy carrier and take steps
to develop a major national hydrogen programme, aimed at increasing competence with a
view to the continued development of hydrogen technologies in Norway.
In its recommendations to the Official Inquiry Report on Gas Technology, the Environment
and Value Creation2, the Standing Committee on Energy and the Environment asked the
Government to establish a national hydrogen committee that would formulate national goals
and necessary measures for developing hydrogen as an energy carrier and instrument of
domestic value creation. The Committee should also identify requirements for state funding
and framework conditions and recommend a division of responsibility, organisational and
resource requirements for a national hydrogen programme.
On 20 June 2003 the Government appointed a hydrogen committee whose terms of reference
were in accordance with the Storting’s decision. On 1 June 2004 the committee submitted its
recommendation in the Official Norwegian Report on Hydrogen as the Energy Carrier of the
Future (NOU 2004:11) to the Minister of Petroleum and Energy and the Minister of Transport
and Communications.
The report was sent out for consultation on 30 June 2004, and the final date for consultative
submissions was 15 October 2004. There was wide agreement between the parties consulted
that Norway should endeavour to develop hydrogen as an energy carrier. The majority of the
consultative submissions supported the Hydrogen Committee’s recommendations. Several of
the parties consulted were, however, keen to avoid exclusive focus on hydrogen at the
expense of other types of new eco-friendly technologies/fuels.
The Ministry of Petroleum and Energy and the Ministry of Transport and Communications
have chosen to follow up the Hydrogen Committee’s report in the form of a strategy
document, to serve as a basis for the continued targeting of hydrogen as an energy carrier for
transport and stationary energy supply. The strategy is mainly concerned with the formation
of a national platform for the coordination of current investment efforts in the hydrogen field.
The strategy is based on the Hydrogen Committee’s recommendations and the consultative
submissions.
1.2
Why have a strategy?
Our vision is that sustainable energy technologies will play a major role in the future
utilisation of energy and fuel, cf. section 2.2. The use of hydrogen as an energy carrier will be
pivotal in the efforts to realise this vision. It is important to have an integrated and goaloriented policy in order to pave the way for the use of hydrogen as an energy carrier.
1
2
Report no. 9 to the Storting (2002-2003): On domestic use of natural gas etc.
Recommendation no. 167 to the Storting (2002-2003).
4
Norway currently spends considerable resources on research, development and demonstration
of hydrogen related technologies. The funding comes from several sources and is channelled
through various agencies with different objectives for their investments, cf. text box 1. In
total, approximately NOK 80 million will be spent through the various instrumentalities in
2005.
Current indirect tax regulations are also a significant source of public funding for the use of
hydrogen and hydrogen-operated vehicles. Fuel-cell vehicles that use hydrogen as fuel are
currently in the same category as electric cars and are exempted from vehicle import duty.
The same exemption does not apply to vehicles with combustion engines that use hydrogen as
fuel. Hydrogen used as fuel is, however, currently exempt from fuel tax. These tax advantages
will play a very important role when this technology is introduced on the market.
Text box 1: Government subsidy schemes 3 linked to research, development and
demonstration of hydrogen-related technologies.
- The Ministry of Petroleum and Energy awards funding to hydrogen research in
general through the Research Council of Norway’s Clean Energy for the Future
Programme (RENERGI)4.
- The Ministry of Education and Research awards funding to hydrogen-related
materials research through the Research Council of Norway’s Nanotechnology and
New Materials Programme (NANOMAT)5.
- The Ministry of Transport and Communications awards funding to research on
technologies in the transport sector involving no or very low emissions through the
RENERGI programme.
- Through Gassnova (Centre for Sustainable Gas Technologies) and the Research
Council of Norway’s Programme for Natural Gas Power with Improved
Environmental Performance (CLIMIT), funding is awarded to hydrogen related
gas scrubbing technologies. The funds come partly from the Ministry of Petroleum
and Energy and partly from the Gas Technology Fund.
- Enova6 has awarded funding from the Energy Fund to demonstration projects
linked to the production of hydrogen based on new renewable sources of energy.
It is necessary to coordinate current subsidy schemes more effectively, in order to intensify
the current hydrogen efforts, make ongoing activities more visible, create a common vision
and goal for the hydrogen efforts and clarify the roles and responsibilities of the players
involved.
3
Resources that may be applied for. Does not include direct allocations to universities, university colleges,
institutes etc.
4
In addition RENERGI receives funds from the Research Fund and other Ministries.
5
In addition NANOMAT receives funds from the Research Fund.
6
Enova – a public enterprise contributing to environmentally sound and rational use and production of energy
5
At the same time, it is also important to coordinate subsidy schemes with other activities and
measures linked to the development and use of hydrogen, i.e. information and training,
formulation of safety criteria, codes and standards, certification and approval, and not least in
relation to relevant international activities and cooperation in the field.
On this basis the Ministry of Petroleum and Energy and the Ministry of Transport and
Communications have drawn up a strategy for further investment in hydrogen as an energy
carrier, in which subsidy schemes, activities and measures are contextualised and coordinated
in relation to a common vision and goal for the hydrogen efforts.
1.3
Elements of a strategy (summary)
The Ministry of Petroleum and Energy and the Ministry of Transport and Communications
have prepared a strategy for investment in hydrogen as an energy carrier in transport and
stationary energy supply. The strategy provides a basis for continued investment in hydrogen
in Norway and is based on the Hydrogen Committee’s report on Hydrogen as the Energy
Carrier of the Future (NOU 2004:11) and the appurtenant consultative submissions.
The strategy has been devised in order to coordinate current subsidy schemes more
effectively, intensify the current hydrogen efforts, make ongoing activities more visible,
create a common vision and goal for the hydrogen efforts and clarify the roles and
responsibilities of the players involved.
International investment in hydrogen as an energy carrier is currently extensive and
increasing. The driving forces behind this development are mainly security of energy supply,
environmental benefits and the opportunities for industrial development. International
investment is a precondition for Norwegian investment in the field.
Norway has many of the preconditions necessary for investment in hydrogen. Norway has, for
example, the ability to produce hydrogen on a large scale both from water (electrolysis) and
from natural gas. Norway also possesses important industrial players in the field, and
Norway’s research communities are at the forefront of essential areas of technology.
There are four factors in particular which support Norwegian investment in hydrogen:
- Utilisation of Norwegian gas resources
- Industrial development
- Benefits to the environment, particularly in the transport sector
- Participation at the forefront of international research.
The vision is that sustainable energy technologies will play a major role in the future
utilisation of energy and fuel – and here the use of hydrogen as an energy carrier will be
pivotal.
In order to pursue this vision, Norway has set itself the objective of taking part in
international hydrogen efforts. This means that Norwegian competence communities,
industrial players and authorities must be at the forefront in certain areas in terms of
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developing know-how about production, storage, transport and use of hydrogen. This will
facilitate industrial development and increase value creation in areas in which Norway has a
particularly good foundation for success.
In order to reach this goal, a strategy has been planned whereby current subsidy schemes,
activities and measures are coordinated and highlighted in relation to the stipulated objectives.
The strategy will mainly be linked to the setting up of a national platform for the coordination
of current efforts in the hydrogen area. The strategy will also embrace other relevant activities
and measures linked to the development and use of hydrogen, e.g. formulating safety criteria,
codes and standards, certification and approval, so that the related work can be seen in the
context of the activities taking place within the framework of the hydrogen platform. A
strategic advisory board will be appointed to advise on the activities comprised by the
strategy.
Through the hydrogen platform, support may be given to projects during all phases of the
innovation chain for hydrogen, i.e. to basic research, to applied research and development and
to demonstration projects. The platform will cover hydrogen technologies in general, so that
support can be given to projects concerned with the production, storage, distribution or use of
hydrogen. The projects may be linked to the transport sector or to stationary energy supply.
The platform must also permit the granting of support for information and training purposes
and for international cooperation projects. The platform must allow for support for analyses,
assessments and studies of possible scenarios. Efforts within the framework of this platform
will be further described in a more detailed action plan.
The hydrogen efforts involve many players with different roles, both agencies (bodies
involved in public financing) and industry players. They will all be linked to the hydrogen
platform in one way or another. The most central agencies are the Research Council of
Norway, Enova, Gassnova, Innovation Norway, the Norwegian Water Resources and Energy
Directorate, the Directorate of Civil Defence and Emergency Planning, the Directorate of
Public Roads and the Norwegian State Pollution Control Authority.
The organisation and funding of the hydrogen platform is based on existing public funding
instrumentalities. The platform will be administered through close collaboration between the
Research Council of Norway, Gassnova, Enova and Innovation Norway. It will be anchored
in the Research Council of Norway, who will be responsible for coordination and the
secretariat.
The secretariat will ensure successful coordination and information flow between the parties
involved in the hydrogen platform so that the intention of offering a coherent and coordinated
set of measures via a common user interface is fulfilled. Project applicants will then have a
single address (internet portal) to refer to in connection with their applications, regardless of
the project type. The project applications will be allocated between the programmes to which
they most naturally belong, and the relevant programme board will make decisions relating to
which projects will be supported.
It is a basic principle that the support awarded to projects must at all times be within the
framework of the applicable regulations for public subsidies pursuant to the EEA Agreement.
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The subsidy rate must also be in accordance with the funding rules that apply to each national
subsidy programme.
The hydrogen platform will be established during autumn 2005 and will be in operation from
1 January 2006. The platform administration and secretariat are responsible for implementing
such measures as may be necessary in order to put the platform into operation.
2
Vision and goals for the hydrogen strategy
2.1
Why invest in hydrogen?
2.1.1 Major international efforts
Although most people envisage a hydrogen society (a society in which hydrogen, along with
electricity, is the mainstay of the energy system) far in the future, international investment in
hydrogen as an energy carrier is currently extensive and increasing. The countries leading the
way are Japan, the USA and Canada. The European Commission has also clearly increased its
focus on hydrogen and aims to coordinate activities and projects involving participants from
important European countries. Several comprehensive international cooperation programmes
have been established in order to coordinate and reinforce international activities in the field.
The most important cooperative measures in which Norway participates are summarised in
section 3.2.2.
The driving forces for international investment in hydrogen are primarily:
- Security of energy supply: Hydrogen is seen as a possible future solution to the problem of
reducing a growing dependency on oil imports, in that it provides increased flexibility to
choose alternative energy sources.
- Environmental benefits: Hydrogen may be part of the solution to the problems of climatic
change. The use of hydrogen does not lead to CO2 emissions and may also lead to a
reduction in other emissions (NOx, SOx, particulates etc.). The overall environmental
impact is largely dependent on how the hydrogen is produced. The production of hydrogen
does not cause emissions if it is based on renewable energy or on fossil energy sources
with satisfactory carbon capture and storage.
- Opportunities for industrial development: This is linked to opportunities for providing
products, equipment and services as a result of a large-scale increase in activity relating to
the development of hydrogen technologies. The world’s car industry is one of the most
important driving forces for change.
Given that most technology development and demand in the hydrogen area occurs outside
Norway, international investment is a precondition for Norwegian investment in the field.
The use of hydrogen in Norway is dependent on international technology development, at the
same time as the technology developed in Norway is dependent on the international hydrogen
market being able to use it. It is therefore important that Norwegian investment is closely
linked to the most central hydrogen activities taking place internationally.
Investment in hydrogen is associated with an element of risk. There is no guarantee when, or
even that, a breakthrough for hydrogen as an energy carrier will occur – and we are certainly
8
looking at the distant future. A major breakthrough will require several technological
breakthroughs and considerable state support. It will always be a question of whether or not
hydrogen is able to compete with alternative solutions; for example a car that runs on
hydrogen will be compared with electric cars, vehicles using natural gas or bio-diesel,
increasingly clean and efficient petrol/diesel engines and hybrid vehicles. Hydrogen is an
energy carrier and is therefore produced from an energy source – a process that consumes
energy (energy loss). The safety aspect of the use of hydrogen has also been an issue that has
caused some misgivings. It is particularly important in the light of these uncertainties to
coordinate Norwegian hydrogen investment with international development in the field. It is
impossible to predict today which technology will prove to be the most viable in the long
term. Investment in hydrogen must not, therefore, replace research and development in other
sustainable technologies and fuels.
2.1.2 Norway has the preconditions for investment – What will it get in return?
The strong international push is a precondition, but not in itself a justification for the
Norwegian effort. There are several requirements that must be met if Norway’s hydrogen
effort is to succeed. Norwegian investment in hydrogen has a good chance of success.
Norway has:
- the ability to produce hydrogen on a large scale from water (electrolysis) based on
enormous renewable energy resources (water, wind, energy from the sea)
- the resources needed for large-scale production from natural gas
- important industrial players in the field (large energy companies)
- research communities at the forefront of important areas of technology, both in terms of
important hydrogen technologies and in terms of carbon capture and storage.
Although these preconditions are excellent motives for investing in hydrogen, it is also
important to focus on how Norway will benefit as a result of such investment. There are four
factors in particular that support Norwegian investment in hydrogen:
Utilisation of Norwegian gas resources
Norway’s extensive gas reserves can become an important source of emission-free hydrogen
production, for both the domestic and international markets, if solutions are found for
environmentally sound carbon capture and storage. This will also serve as a long-term
insurance of Norway’s petroleum assets in a future regime in which sustainable energy
technologies are more profitable.
Industrial development
An increase in the use of hydrogen and the demand for hydrogen technology in the
international market will provide opportunities for Norwegian industrial players and for value
creation by Norwegian industry with competence in hydrogen. The opportunities are
primarily to be found in the production and transport of hydrogen and the provision of
technology and state-of-the-art expertise. There may also be opportunities for Norwegian
players to supply constituent components for products manufactured abroad. Norway is, for
example, at the international cutting edge in the area of storage technology. Norway is also at
the forefront with respect to use of gas and fuel cells in ships. A prototype project for fuel
9
cells in ships could provide valuable experience and have great value in directing the
Norwegian maritime industry towards this market.
Environmental benefits
In the long term, hydrogen may represent a good solution to the world’s problems relating to
climatic change, cf. section 2.1.1. The greatest opportunities are to be found in reducing the
emissions of greenhouse gases in the transport sector. The transport sector currently accounts
for 25 per cent of Norway’s CO2 emissions. There may also be opportunities to produce
sustainable power/heat from hydrogen-fuelled power plants, where the hydrogen is obtained
from natural gas with carbon capture and storage. Hydrogen may also be used as a storage
medium combined with renewable energy. This can be applied in autonomous energy
systems, which are today based on fossil fuel.
Participation at the forefront of international research
Hydrogen is a high-priority investment area in a number of important research nations, i.e. the
USA, Japan and the EU. Norwegian activity in this area may give Norwegian research
communities the opportunity to participate in international cooperation and thereby gain
access to some of the world’s leading scientific communities. This will boost Norwegian
research and increase opportunities for the transfer of know-how and technology.
2.2
Vision and goals for investment
Vision
Sustainable energy technologies will play a significant role in the future utilisation of energy
and fuel – and here the use of hydrogen as an energy carrier will be pivotal.
Goals
In order to pursue this vision, Norway has set itself the objective of taking part in the
international hydrogen efforts. This means that Norwegian competence communities,
industrial players and the authorities must be at the forefront in certain areas in terms of
developing know-how about production, storage, transport and use of hydrogen. This will
then facilitate industrial development and increase value creation in areas in which Norway
has a particularly good foundation for success.
In order to reach this goal, it is important to establish a good framework for cooperation
between Norwegian players. It is also important to participate in international cooperation in
the field, and to ensure that Norwegian players are well represented in important international
hydrogen forums.
The Hydrogen Committee identified a set of more operational objectives relating to
investment in hydrogen. These are important points of reference in relation to the further
organisation of work in the field. The Hydrogen Committee’s goals are quoted in text box 2.
Text box 2: Hydrogen Committee’s goals:
In the Official Report on Hydrogen as the Energy Carrier of the Future (NOU
10
2004:11), the Hydrogen Committee set the following goals for the Norwegian
hydrogen effort:
- Goal for environmentally friendly production of hydrogen from Norwegian natural
gas
- The production of hydrogen from natural gas with satisfactory carbon capture
and storage shall take place at a price that is competitive with its per-energy
equivalent in petrol or diesel.
- Goals for being early users of hydrogen vehicles
- Norwegian players shall be early users of hydrogen vehicles in the transport
sector.
- Norwegian authorities shall be as ambitious as the EU in promoting the use of
hydrogen vehicles. Norway should target fleet vehicles in particular.
- Goals for storage of hydrogen
- Norwegian competence communities shall be at the forefront internationally in
the storage of hydrogen.
- Norwegian industrial players shall be internationally competitive in the delivery
of products and services relating to hydrogen storage.
- Goals for the development of the hydrogen technology industry
- Norwegian industry shall participate in the growing international hydrogen
market as suppliers of components and sub-systems relating to the production
and use of hydrogen.
- Norwegian players shall be internationally competitive suppliers of filling
stations based on electrolysis technology.
- Norwegian maritime environments shall lead the field in terms of competence in
the use of fuel cells in ships and be among the first to demonstrate such use.
- Norwegian scientific communities shall have expertise in a number of areas –
both in order to serve Norwegian industry and in order to compete
internationally in the hydrogen area.
3
How to reach the goals – the strategy
3.1
Introduction
The goals that have been set for targeting hydrogen as an energy carrier are dependent on the
formulation of a clear strategy in the area. The strategy is to coordinate and highlight current
subsidy schemes, activities and measures in the area in relation to the goals that have been set.
The strategy is linked mainly to the development of a national platform for coordination of
the current support schemes in the hydrogen area. The strategy will also embrace other
relevant activities and measures linked to the development and use of hydrogen, e.g.
designing safety criteria, codes and standards, certification and approval, so that related work
11
can be seen in connection with activities in the hydrogen platform. This is illustrated in figure
1. In this way any changes required in approval processes and to the existing regulations can
be seen in context with the ongoing development in technology, while for its part the
development in technology will also be able to take into account any requirements made by
safety criteria, codes and standards.
Hydrogen strategy
Hydrogen platform
Co-ordinate – focus – inform – one address
STRATEGIC
ADVISORY
BOARD
SECRETARIAT
administration
INFORMATION
AND EDUCATION
Info. activities:
ƒ
ƒ
ƒ
ƒ
Publications
Web-sides
Program info.
Project info.
PROJECTS
Research Council
ƒ RENERGI
ƒ NANOMAT
ƒ Basic research
Enova
Education activities:
Gassnova
ƒ User competence
ƒ Demo projects
Innovation Norway
International
INTERNAT.
CO-OP.
Strategic
processes and
arenas
ƒ
ƒ
ƒ
ƒ
ƒ
EU
IEA
Nordic
IPHE
Others
Safety
Codes and standards
Regulation
Certification
Others
Figure 1. The hydrogen strategy
The Strategic Advisory Board – Terms of reference
Establishing an independent board with the authority to make decisions in relation to the
investment does not seem appropriate, given the nature of the strategy’s funding and
organisation. A Strategic Advisory Board will be appointed instead, to give advice relating to
the activities in the strategy.
The Strategic Advisory Board will function as an advisory committee that can give strategic
input to priorities and further investment in the area of hydrogen, to technological, marketrelated and social issues in the hydrogen platform, but also in relation to other activities in the
strategy that are not a part of the platform, i.e. issues related to safety, codes and standards,
etc. The advisory board will thus contribute to connecting activities in the hydrogen platform
with the activities and measures outside the platform.
The advisory board will provide input to the hydrogen platform’s action plan. It will also
highlight strengths and weaknesses in the current investment and give advice on the further
organisation of the authorities’ use of measures. The advisory board will also consider the
appointment of a group of experts to study safety, codes and standards linked to hydrogen, cf.
section 3.3.2.
12
The advisory board will not be authorised to make decisions pertaining to the allocation of
funds to projects. Recipients of advice include the authorities, the decision-making bodies of
the various programmes as well as the platform’s secretariat and administration.
The Strategic Advisory Board will consist of representatives from universities and university
colleges, institutes, industry, interest organisations, environmental organisations, directorates
and agencies involved as well as representatives of existing programme boards etc., in total
around 10-15 persons. The Ministry of Petroleum and Energy and the Ministry of Transport
and Communications will appoint the advisory board and also appoint an advisory board
chairman. The Ministry of Petroleum and Energy and the Ministry of Transport and
Communications will participate in the advisory board as observers. The Research Council of
Norway will function as secretariat. The advisory board will meet at least twice a year.
3.2
The national hydrogen platform
3.2.1 Why have a hydrogen platform and what is it?
A hydrogen platform will be established that will encompass current measures and the
accompanying funding. The hydrogen platform will function as a “virtual programme” and
will be a paramount investment that will embrace the programmes and support schemes that
are currently relevant in relation to investment in hydrogen, cf. text box 1. The aim is to
coordinate current schemes so that they work towards a common goal. In addition to uniting
hydrogen activities under a single umbrella, the hydrogen platform will make it easier to
spread information about and promote national and international activities abroad.
Compared to establishing a new, separate programme for the hydrogen effort with a
programme board and appurtenant funding, a platform solution that builds on already
established programmes and support schemes will be less time-consuming to put into
operation and easier to link to one single agency. In addition, this will avoid terminological
confusion in relation to programmes already in operation. An important point has also been to
maintain coordination of hydrogen activities as part of other discipline areas that are within
current programmes, i.e. interfaces with investment in new renewable energy sources and
energy systems in the RENERGI programme and other materials research in the NANOMAT
programme.
3.2.2 Activities in the hydrogen platform
Through the hydrogen platform support may be given to projects within all the phases of the
innovation chain for hydrogen, i.e. to basic research, to applied research and development,
and to demonstration projects. The platform will cover hydrogen technologies in general, so
that support can be given to projects in production, storage, distribution and the use of
hydrogen. The projects may be linked to the transport sector as well as to stationary energy
supplies. Within the platform support may also be provided to information and training and
international cooperation activities. Adequate attention must be given to support analysis,
assessments and studies of possible scenarios, i.e. of hydrogen technology’s strategic
significance in the interaction with the rest of the Norwegian energy supply system.
13
Investment within the platform will be further described in a more detailed action plan, cf.
section 3.2.4.
In general
Although the hydrogen platform encompasses a wide area, it is important to make investment
a priority and concentrate on the selected target areas. The target areas must be connected to
the objectives for investment in hydrogen, so that supporting projects may help to attain the
objectives for the investment. It is also important to continue building on the areas in which
Norway has particular advantages and has already established expertise.
The starting point for designing target areas must be the Hydrogen Committee’s
recommendations and the consultation submissions made in the wake of the committee’s
report. The thematic target areas and additional activities in the platform will be examined in
more detail in an action plan. Responsibility for this will be given to those already
responsible for implementing the hydrogen platform, cf. section 3.2.4.
Research and development
The majority of activities in the platform will be linked to research and development.
Technological breakthroughs and new fundamental knowledge are prerequisites for any widescale introduction of hydrogen as an energy carrier. In addition, any future emergence of new
technologies and systems will require new expertise and competent personnel. It is difficult to
predict where fundamental breakthroughs will be made. Thematic priorities must therefore be
balanced against the search for solutions on a somewhat wider basis. Research will be
characterised by both fundamental long-term research and shorter-term, market-based
research and development. Fundamental research should be related to the solutions that
currently appear to be the most promising and in which Norwegian expertise has reached a
high level. Market-based applied research will be governed largely by industry’s expectations
and initiatives. Research and development activities will generally have a timeframe of 10-25
years.
Demonstration activities
Demonstration projects frequently require major investments. It is therefore important to be
extremely aware of what one seeks to accomplish by supporting demonstration projects.
Hydrogen technology is not yet mature enough for large-scale demonstration projects with a
view to broad market introduction. In the period leading up to 2010, the focus should
therefore be on pilot and test systems aimed at technology development and the early testing
of new technology. Since demonstration projects are costly, it is important that Norwegian
activities are planned in cooperation with international players with a view to ensuring
Norwegian participation internationally or to coordinate the implementation of thematically
similar projects. It may be relevant to target selected niche markets.
Information and training
In the hydrogen platform resources must be appropriated from the most relevant programmes
included in the platform in order to support information and training activities. Experience
from work with propane (LPG), natural gas and liquid natural gas (LNG) shows that
information and training are important and necessary measures throughout the process. The
14
activities must be tailored to the needs of an investment in hydrogen and be assessed on the
basis of the benefits and the extent of the use of hydrogen. The design of information and
training activities and the responsibility for their implementation must be based in the action
plan for work in the hydrogen platform. Demonstrating the practical use of hydrogen as an
energy carrier is an effective form of information. Since the widespread use of hydrogen still
lies in the distant future, is difficult to demonstrate and is associated with uncertainty, it may
be a good idea to link information and training to concrete projects. Demonstration projects
and selected research projects that have the potential to spread information to the general
public (particularly on a local level) should therefore be given priority.
User competence and user acceptance are two very important elements. In connection with
projects related to the use of hydrogen, it is important to provide safety information in relation
to the project and state the actual risks and hazards that the use of hydrogen involves.
Training in emergency response and how to deal with accident situations are also important.
Generally speaking, hydrogen is not more dangerous than other fuels, but the risks involved
are different, and the use of hydrogen therefore requires that technology is adapted.
International cooperation
As shown in section 2.1.1, hydrogen and fuel cell investment is characterised by widespread
international cooperation. This is important to facilitate coordinated investment and reduced
costs. Norwegian participation in international cooperation in the hydrogen area must
therefore be given top priority in the hydrogen platform. Participation in international
cooperation in the hydrogen area will provide input to the Norwegian strategy and supplement
Norwegian investment. Resources must therefore be earmarked from the most relevant
programmes in order to facilitate participation in international cooperation activities, i.e.
supporting Norwegian participation in international cooperation forums or supporting
Norwegian players’ participation in cooperation projects.
Norway already participates in several international cooperation agreements. This work
should be given preference to. The most important are participation in the EU’s framework
programme for Research, Technological Development and Demonstration Activities, the
EU’s Hydrogen and Fuel Cell Technology Platform, the International Energy Agency’s
(IEA’s) hydrogen activities, Nordic Energy Research, the International Partnership for the
Hydrogen Economy (IPHE), the Carbon Sequestration Leadership Forum (CSLF) and
bilateral cooperation, primarily with the USA and Japan.
3.2.3 Roles and responsibilities
Investing in hydrogen involves many players with different roles, both agencies and industrial
players. Everyone in one way or another will be linked to the hydrogen platform. The most
important players are presented below.
Agencies:
- The Research Council of Norway: Provides funding for fundamental, strategic and applied
research in the hydrogen area in general, both in terms of technologies for production,
storage, transport and the use of hydrogen. It also provides funding for the testing and
demonstration of hydrogen technologies in the transport sector. The Research Council of
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-
-
-
-
-
Norway is pivotal in relation to Norwegian participation in international cooperation
agreements.
Enova: Can provide funding for the development and demonstration of hydrogen
technologies that may in the long term support the authorities’ work on a sustainable shift
in the stationary energy system. May also play an important role in information and
training.
Gassnova – Centre for sustainable gas technologies: May provide funding for hydrogenrelated development and demonstration projects linked to the development of sustainable
gas power technology.
Innovation Norway: Through public and industrial research and development contracts
(OFU/IFU contracts) IN provides support to cooperation public/private customers and
suppliers in order to encourage the development of new products, processes or services.
IN’s export offices are located in important markets and have access to networks and
competence which is relevant in relation to Norwegian players’ international involvement
and cooperation in the hydrogen area.
The Norwegian Water Resources and Energy Directorate (NVE): Plays an important role
in terms of seeing hydrogen as an energy carrier in relation to the rest of the stationary
energy system in Norway.
The Directorate for Civil Defence and Emergency Planning (DSB): Has authority and
expertise in safety in relation to gas in general and hydrogen in particular.
The Directorate of Public Roads: Has the responsibility for standards and regulations in
relation to type approval of vehicles and the implementation of international standards and
Norwegian legislative requirements. The Directorate of Public Roads has expertise in
motor vehicle technology and emissions.
Norwegian Pollution Control Authority (SFT): Has responsibility for standards and
regulations in relation to the environmental requirements for fuel and also has expertise on
the environmental effects of different types of environmentally friendly fuel.
The different categories of industrial players:
- Universities and university colleges
- Research institutes
- Industry
- Interest organisations
- Environmental organisations (NGO’s)
- Users
3.2.4 The organisation of the hydrogen platform
The organisation of the hydrogen platform is based on the existing agencies, cf. figure 1.
Activities within the framework of the platform will be implemented through the already
established programmes currently operated by these agencies. The programmes will be linked
to an agreed hydrogen platform and connected through an action plan for work on the
platform as described below. The content of the platform is described in greater detail in
section 3.2.2.
The administration of the platform
The platform will be administered through close cooperation between the Research Council of
Norway, Gassnova, Enova and Innovation Norway. The agencies are therefore required to
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maintain close contact. It will be anchored in the Research Council of Norway, which will be
responsible for its coordination. This is natural given that investment in hydrogen is to a great
extent research-oriented.
The secretariat
The Research Council of Norway will also have the function of secretariat. This includes the
use of the Council’s tools and routines. The secretariat will coordinate work on the platform
and will have the main responsibility for handling projects, cf. below. The secretariat must
have an overview of the total platform portfolio and how it fits into the hydrogen strategy and
the action plan. Existing programme resources will cover the cost of the secretariat.
Common user interface
The secretariat will ensure successful coordination and information flow between the agencies
in the hydrogen platform, so that the intention of offering continuous and coordinated policy
instruments with a common user interface is fulfilled. The hydrogen platform will therefore
use a single common communication identity for the hydrogen efforts and users will have a
single point of contact to refer to. A web portal will be set up for the platform, which will
have its own domain and identity and will be linked to the Research Council of Norway’s
website.
Action plan
An action plan will be devised, which will form the basis for work in the platform. The
Strategic Advisory Board will carry this out with the assistance of the secretariat and in
cooperation with the administration. The action plan will serve as a governing document that
will concretise goals and activities in the platform. The different activities will still be carried
out under the auspices of the established programmes they naturally fall into, and in relation
to the programmes’ own strategies and programme plans. The platform’s action plan should,
however, ensure that the diverse programmes are coordinated in relation to the common
hydrogen efforts, and that hydrogen investment is integrated more thoroughly with the other
target areas for sustainable energy and transport. The action plan will therefore serve as an
important document for the different programmes’ decision-making bodies (programme
boards).
Project management
The secretariat will, in consultation with the affected programmes and agencies, carry out
coordinated, possibly joint, calls for project proposals. The applicants will then have a single
application address (web portal) to refer to. The secretariat will, following an assessment of
the project applications, allocate the applications to the programmes where they naturally
belong. The assessment will be based on the hydrogen strategy and the action plan. The
grounds for the allocation of project applications to the various programmes must be stated.
The secretariat must also, in cooperation with the various agencies, ensure that assessment of
project applications is coordinated between the various agencies. Further follow-up of project
applications and any award of project funds will be carried out by the relevant programmes
and decided by the appurtenant programme boards.
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The way ahead
The hydrogen platform will be established during autumn 2005 and will be in operation from
1 January 2006. A number of activities must be launched relatively quickly in order to
accomplish this, see the list below. The platform’s administration and secretariat are
responsible for implementing necessary measures in order to get the platform up and running.
- A secretariat for the platform will be established in the Research Council of Norway.
- Contact persons will be appointed in Gassnova, Enova and Innovation Norway, and they
will administer the platform along with the Research Council of Norway.
- A Strategic Advisory Board will be established. The Ministry of Petroleum and Energy and
the Ministry of Transport and Communication will appoint its members.
- A web portal will be established and linked to the Research Council of Norway’s website.
- The Strategic Advisory Board will devise, with the secretariat’s assistance and in
cooperation with the administration, an action plan that will form the basis for work in the
platform.
- The action plan will be communicated to the different agencies.
- Information material will be devised that provides a clear platform identity.
3.2.5 The funding of the hydrogen platform
The activities in the hydrogen platform will be funded through the existing programmes and
agencies, cf. text box 1. This means that the funding for various hydrogen activities will come
from the one or more of the support schemes that apply for the relevant activity in relation to
the instrumentality’s purpose. A general rule is that:
-
-
-
Hydrogen funds at the disposal of the Ministry of Petroleum and Energy in the RENERGI
programme are awarded to general research in hydrogen
Hydrogen funds at the disposal of the Ministry of Education and Research in the
NANOMAT programme are awarded to hydrogen-related materials research
Hydrogen funds at the disposal of the Ministry of Transport and Communications are
awarded to hydrogen-related development and demonstration projects in the transport
sector
Relevant funding from the Gas Technology Fund is managed by Gassnova and awarded to
hydrogen-related development and demonstration projects linked to the development of
sustainable gas power technology
Relevant funding from the Energy Fund is managed by Enova and awarded to the
demonstration of hydrogen technologies that will support a shift in the energy sector in the
long run.
Funding must also be set aside for the provision of information, training and international
cooperation. The secretariat and administration should make suggestions as to whether
projects and activities should be funded by individual programmes or by several
instrumentalities together.
The decision-making bodies of the various programmes, i.e. programme boards, are to make
the final decisions regarding which projects are to be funded.
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The maximum funding rates, including other forms of state subsidies, must be adapted to
meet EEA Agreement regulations relating to state subsidies.
In Norway roughly NOK 80 million was spent on hydrogen-related research, development
and demonstration activities in 2005, divided between the instrumentalities described7. It is a
goal to ensure predictability and a long-term perspective in the investment in hydrogen. The
investment must be assessed over time, depending on which goals were set, the results
achieved and the general development in the hydrogen area. Investment in the hydrogen area
must also be continually assessed against investment and results in other areas of sustainable
energy technology and energy carriers.
3.2.6 Cooperation and synergy benefits between public and private investment
The aim of supporting R&D and demonstration is to encourage value creation and
competition in research communities and in industry and to create positive economic effects
in society as a whole. The intention of state subsidies is also to set in motion projects in the
hydrogen area which otherwise would not have gotten off the ground. State subsidies are also
intended to trigger and reinforce industry’s own investment in R&D projects. The subsidies
are also intended to stimulate increased cooperation between the public and private sectors,
between the different research institutions, between the research institutions and industry and
between various industrial players.
The main principle here is that the amount of funding, i.e. the subsidy rate, will be lower the
closer the technology is to commercial application. This means that the subsidy rate to
fundamental, long-term research will be greater than the subsidy rate to development and
research projects close to commercial application. The aim of subsidies awarded to
fundamental research is to increase the disciplinary strength of the individual institutes and
universities in relevant areas by boosting expertise, educating researchers and developing
internationally recognised communities. This will ensure that the technical-industrial
university and institute sector develop good services, which industry as well as others may
utilise in their more commercial approach to investment in technology.
In addition to public funding, industry will as a rule be required to contribute. Such funding
will be project-specific. This means that the individual players participating in the different
projects also undertake to make financial contributions. An important principle in relation to
projects close to commercialisation is not to award public funding to projects that are not
supported by any industrial players. Projects close to market should mainly be funded and
operated by private players, not public.
Another basic principle is that funding must be in accordance with the applicable regulations
for state aid, at any given time, in relation to the EEA Agreement. The level of funding must
also be in accordance with the funding regulations that apply to each national subsidy
programme.
7
NOK 25 million from RENERGI (MPE), NOK 22 million from RENERGI (MTL), NOK 19 million from
NANOMAT (MER) and NOK 14 million from CLIMIT (MPE/Fund). These are funds which may be applied for
and do not include allocations to universities, university colleges, institutes etc.
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3.3
Activities in the strategy not included in the hydrogen platform
3.3.1 Introduction
In addition to the programmes and activities included in the hydrogen platform, described in
the last section, the hydrogen strategy also includes other activities and measures linked to the
development and use of hydrogen, i.e. the creation of safety criteria, codes and standards, and
certification and approval, cf. section 3.1. This work will be ancillary to the work of the
hydrogen platform and will contribute to determining the future development and use of
hydrogen in Norway.
The activities in the strategy not included in the hydrogen platform will be linked to the work
in the platform through the Strategic Advisory Board, cf. section 3.1.
3.3.2 Safety, codes and standards
Safety comparisons between hydrogen and other fuels must be based on an integrated
evaluation of the factors that affect both the likelihood of accidental emission and the possible
consequences of such emissions. Under certain conditions hydrogen is safer than conventional
fuels, while in other situations it is the reverse. It is important to give due consideration to the
physical qualities of hydrogen during all the phases of the products’ lifespan, from design,
operation and maintenance to the use of equipment containing hydrogen.
In some situations hydrogen will behave differently than traditional fuels, which presents
challenges – particularly during the introductory phase. Training personnel to handle
hydrogen both as a matter of routine and in the case of accidents, and emergency response
measures are important during this phase. These aspects must be included as an integral part
of the project in relevant demonstration projects.
It is also important, for safety reasons, to gain experience and increase expertise within the
relevant organisations in order to develop the approval processes that are required in relation
to the introduction of hydrogen. In cases where there are standards for individual elements in
a system, a safety assessment of the entire system is still necessary.
It is also important that new technology and new material is tested and that technical
personnel is trained to carry this out. Personnel must also be trained to use the equipment.
Experience shows that a lack of regulations, or unsuitable regulations, generally lead to
increased costs in projects using new technology, since it is difficult to predict regulatory
requirements at an early stage in projects. Requirements that are made at a late stage in the
design process have significantly greater financial consequences than when the same
requirements have been known from Day One. This can be illustrated by experience from the
EU’s demonstration project CUTE, in which 30 per cent of the costs for a hydrogen filling
station in Madrid were related to regulatory requirements. Costs of this nature may be
dramatically reduced if the authorities’ framework conditions are predictable and widely
known.
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Codes and standards will influence the competitive relationship between new technology and
established conventional technology for both transport on land and at sea. It is therefore
important that Norwegian players be actively involved in this type of work both domestically
and internationally. Norwegian players have considerable knowledge and experience with
regard to the development of codes and standards based on functional requirements and the
demonstration of safety levels. This is based on national and international experience.
While industry has extensive experience with the industrial use of hydrogen, experience with
the use of general-purpose hydrogen is still very limited. The fact that the hydrogen filling
stations currently in operation are generally operated by personnel with special training serves
as an example. One of the main reasons for this is that filling systems are still under
development and further work and more experience is necessary to ensure standardised,
robust and reliable filling systems for hydrogen vehicles. Tanks are usually filled by the
station’s personnel or by drivers with special training (e.g. for a regular fleet of vehicles).
The expert group for hydrogen in the transport sector, established by the Hydrogen
Committee, concluded that a systematic review of Norwegian regulations was necessary in
order to identify any changes needed, cf. Special Annex no. 2 to NOU 2004:11. The expert
group suggested that a group with relevant expertise in elements of the hydrogen area, i.e.
production, distribution, sale and use, might carry this out. The relevant administrative
authorities should be involved in this work. The Strategic Advisory Board that will be
established in the light of the hydrogen strategy will be given the mandate to assess the expert
group’s conclusions in this area and give advice on how these may be followed up.
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