Japan’s approach to hydrogen economy

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1 Hydrogen Station Network Development in Japan 24 September, 2014 Dr. Michio Hashimoto Director, New Energy Technologies, New Energy and Industrial Technology Development Organization (NEDO), Japan

2 WHY HYDROGEN?

3 Japan s Vulnerable Energy Supply 100% 50% 0% -50% Energy import dependencies in major energy consumer countries 100% 80% 60% 40% Power generation mix in Japan % -150% Energy dependence on imports (%) 20% 0% % Nuclear Natural gas Hydraulic power generation Oil Coal Renewable energy

4 Increasing CO2 emissions 1,350 CO2 Emissions in Japan [ a million tons- CO2 equivalent ] 1,300 1,250 1,200 1,150 1,100 1,

5 Clean Transport: Future of Automotive Industry HV PHV EV TOYOTA PRIUS NISSAN LEAF FCEV HONDA CLARITY TOYOTA FCV-R NISSAN TeRRA

6 Why Hydrogen? Clean energy: achieving higher level of energy security and zero emission Flexible energy carrier: made from various energy sources and used for many energy demand Long experience in H2 development: Japan has more than 30 years experience in H2 R&D including commercial sale of FC system

7 FCV & H2 INFRASTRUCTURE

8 FCV: Ultimate Clean Vehicle? Big Vehicle Size Smarll Short Cruising range Long Source :JHFC seminar (2010/3/2) 8

9 History of Japanese FCV development FCHV-adv HONDA FCX Clarity NISSAN to launch 1 st commercial model TOYOTA / HONDA to launch 1 st commercial model X-TREIL FCV 2003 TOYOTA 2002 NISSAN 9

10 Toyota FCV Delivery to commence by March 2015 in Japan. Vehicle price is announced as 7 million yen ( 50,000). 2million yen ( 14,000), or more, subsidy to be granted by central government Further financial incentives are under consideration by local government 10

11 Demonstration of FCV and H2 Supply Infrastructure - JHFC projects JHFC1 JHFC2 JHFC3 Demonstration of FCV fleets in public roads for the verification of basic performance of FCVs. Expand the area of H2 station coverage to Chubu and Kansai region. Data collection for developing regulations, codes and standards. Expand demonstration activities

12 FCV and H2 station: Chicken or egg? In January 2011, 3 automakers and 10 energy companies came to agreement for FCV and H2 stations: (1) FCV to be introduced to market in 2015 (2) In advance, 100 hydrogen stations to be constructed mainly in four populated area (Tokyo Metropolitan Area, Chukyo, Kansai, North Kyusyu) (3) H2 stations network should be expanded to 1000 by 2025 Install along expressways Total of about 100 sites Installation mainly in 4 major cities

13 Still High Station Costs in Japan Current CAPEX of HRS is estimated as million yen in Japan, which is far higher than Europe and US Need to halve the cost of HRE for expanding network Comparison of equipment costs of hydrogen station Japan EU Compressor Accumulator Precooler Dispenser Total (Million yen) *excluding the costs of construction and installation works

14 Reviewing regulations Japanese safety regulation for Hydrogen needs to be optimized in view of reducing construction cost of H2 station In June 2013, Japanese government committed, in its economic growth policy, to promote the review of regulations for FCV and H2 station

15 Incentives for commercial H2 station Japanese energy agency launched a scheme to support commercial H2 station in % subsidy to the CAPEX of newly constructed commercial H2 station 41 station projects (for 45 locations) have already awarded in First commercial station opened in July 2014 and more to come New national H2 roadmap recommended CAPEX subsidy to be increased, 50% to 67%, in 2014 Further, establishing OPEX subsidy is under consideration

16 45 Locations for H2 Stations 平成 25 年度 平成 26 年度 狭山市 ( オフサイト ) 練馬区 ( オフサイト ) 東京瓦斯 杉並区 ( オフサイト ) 八王子市 ( オフサイト ) 川越市 ( 移動式 ) さいたま市桜区 ( オンサイト ) 東京瓦斯 戸田市 ( オフサイト ) 岩谷産業 さいたま市見沼区 ( オフサイト ) さいたま市見沼区 ( 移動式 ) さいたま市緑区 ( 移動式 ) 春日部市 ( オフサイト ) 越谷市 ( 移動式 ) 板橋区 ( 移動式 ) 印旛郡 ( 移動式 ) 甲府市 ( オフサイト P 液水 ) 岩谷産業 相模原市中央区 ( 移動式 ) 横浜市旭区 ( オフサイト ) 海老名市 ( オフサイト ) 横浜市泉区 ( オフサイト ) 伊勢原市 ( 移動式 ) 藤沢市 ( 移動式 ) 千葉市花見川区 ( オフサイト ) 千代田区 ( 移動式 ) 豊田通商 三井住友ファイナンシャル & リース 港区 ( オフサイト P 液水 ) 岩谷産業 大田区 ( 移動式 ) 豊田通商 三井住友ファイナンシャル & リース 横浜市中区 ( 移動式 ) 横浜市中区 ( 水素集中製造 ) 周南市 ( オフサイト P 液水 ) 岩谷産業 北九州市小倉北区 ( オフサイト ) 岩谷産業 北九州市八幡東区 ( オフサイト P) 福岡市中央区 ( 移動式 ) 岩谷産業 ; 水素ステーション ; 水素集中製造設備 ) 移動式は運用場所を記載移動式は全て小規模その他規模の記載の無いものは中規模 P; パッケージを含むもの液水 ; 液化水素対応設備 尼崎市 ( オフサイト ) 岩谷産業 泉佐野市 ( オフサイト P 液水 ) 岩谷産業 茨木市 ( オンサイト P) 大阪ガス 大津市 ( オフサイト P 液水 ) 岩谷産業 名古屋市熱田区 ( オフサイト ) 豊通エア リキート ハイト ロシ ェンエナシ ー 清須市 ( 移動式 ) 豊田通商 三井住友ファイナンシャル & リース 名古屋市緑区 ( 小規模 オンサイト ) 名古屋市中区 ( 移動式 ) 豊田通商 三井住友ファイナンシャル & リース 名古屋市東区 ( 移動式 ) 豊田通商 三井住友ファイナンシャル & リース 日進市 ( オフサイト ) 東邦瓦斯 みよし市 ( オフサイト ) 豊田市 ( オフサイト ) 豊通エア リキート ハイト ロシ ェンエナシ ー 岡崎市 ( オフサイト ) 岩谷瓦斯 岡崎市 ( オンサイト ) 刈谷市 ( オフサイト ) 岩谷産業

17 WHAT COMES NEXT?

18 New National H2 Strategy Japanese National Energy Basic Plan 2014, for the first time, stated Hydrogen as one of the necessary energy sources for Japan In response, METI adopted new strategic roadmap for H2 in June 2014 which defined 3 phases approach: Phase 1: Expand the use of Fuel Cells network and FCV and establish new energy business using hydrogen (ongoing ). Phase 2: Establish global supply chain of hydrogen and increase hydrogen demand. H2 power generation will be a key to expand the market (to be completed by late 2020). Phase 3: Renewable to hydrogen. Establish CO2 free hydrogen supply chain(to be realized in 2040s).

19 What s next? H2 Supply Chiyoda s hydrogen supply chain concept CO2 EOR CCS Renewable Energy Electrolysis HGN HGN By-Product Reforming Gasification Future Hydrocarbon Current Storage HGN: Hydrogenation DHG: Dehydrogenation TOL: Toluene MCH: Methylcyclohexane CH3 +3H 2 TOL MCH TOL CH3 MCH Nation with ample resources Low cost hydrogen production from unused resources (lignite) Lignit e Storage DHG DHG Power Gen. City Gas Mobility Energy Feedstock Petro Refining Chemicals H2 Demand Steel Mills CO2 Recycle (Reverse Shift) KHI CO 2 free hydrogen chain concept Nations using hydrogen Industries using hydrogen Semiconductor and solar cell manufacturing Petroleum refining and desulfurization, etc. Gasification, hydrogen production High efficiency CCS (CCS: carbon capture and storage) CO2 free hydrogen Liquification, load Water electrolysis (using reusable energy) Liquid hydrogen tanker Liquid hydrogen storage tanks Liquid hydrogen transport trucks Transport vehicles - Hydrogen station - FCV, etc. Dispersed energy - Hydrogen gas turbine - Hydrogen gas engine - FC, etc. Electric power for businesses - Combined cycle power generators, etc. Source:WEB site Produce Transport/store Use 19

20 Summary H2 is useful not only as zero emission fuel but also flexible energy carrier that contribute to energy security. Not just energy perspective, H2 is hopeful as a new industrial sector that will boost national economic growth. Japan is now in the final phase of developing initial H2 network. Enhanced actions to be taken to build 100 stations by 2015 in accordance with the national H2 Roadmap. The third pillar of hydrogen technologies is set as power generation, which boosts the demand of hydrogen and short cut to realize the hydrogen economy.

21 Thank you for your attention New Energy and Industrial Technology Development Organization (NEDO), Japan

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