Setting the Scene

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Canadas Hydrogen and Fuel Cell IndustryGlobal
Partnering for Success
Alison Grigg, on behalf of Chris CurtisFuel
Cells CanadaAugust 27, 2005 Santa Fe, New Mexico
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Fuel Cells Canada

• National not-for-profit industry association
• Founded in October 2001
• Our Mission is to promote the development and
  commercialization of Canadian hydrogen and fuel
  cell technologies, products and services
• Prime source of services and support to
  companies, educational institutions and business
  alliances promoting, developing and demonstrating
  fuel cell and related products and services in
  Canada
• 67 member companies and organizations across
  Canada

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Drivers for Hydrogen and Fuel Cell
Commercialization
An energy platform that enables other
technologies to achieve goals of reliability,
security, efficiency and sustainability.
Greenhouse Gas Reduction Improved efficiency in converting energy. Zero GHG emissions when based on renewable sources.
Urban Pollution Reduction Zero emissions from tail pipe of fuel cell vehicles.
Energy Reliability/Security Key enabler to meet growing need for clean, distributed power
Economic Development Significant export opportunities and global economic value.
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Global Market Projections
Mobile Fuel Cells - 7.5 billionStationary Fuel
Cells - 7.5 billionAutomotive Fuel Cells - 3.6
billion
Data from Fuel Cell Industry Competitive
Analysis - Assessment of Major Players, Global
Markets, and Technologies 2003 Allied Business
Intelligence Inc., Courtesy Industry Canada
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Markets for Fuel Cell Products
Remote sites (off-grid)
10,000
Micro-applications (laptop computers, digital
cameras, cell phones)
Early niche markets
Lift trucks, industrial equipment, residential
applications,off-grid and back-up power,
military applications
1,000
700
Distributed power
Capital cost /kW
Buses
100
Major market increases
Autos
60
10
2004
2015
Increasing manpower capital production
capacity
Source adapted from Methanex, September 2002
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Supply Chain Opportunities
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The Canadian Hydrogen and Fuel Cell Sector
Overview

• Activities began in 1982 with first contract for
  Ballard Power Systems
• Total Canadian industry revenue has grown 40
  from 134 million in 2002 to 188 million in 2003
• Industry RD expenditures over 290 million
  since 2000 an average of 100,000 per employee
  per year
• Over 80 companies across Canada are focused on
  fuel cell and hydrogen technology and associated
  services, employing over 2,600 people
• Patent holdings were up 34 to 581 in 2003.

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Geographic Profile
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International Involvement Industry

• About 33 of Canadian industry activity is
  outside of North America
• Active in 262 demonstration projects (2003) 70
  outside of Canada
• Industry Associations California Fuel Cell
  Partnership, US Fuel Cell Council
• Networking with industry groups and participation
  in trade missions
• Corporate partnerships and joint development
  examples
• Ballard with Ford/Daimler Chrysler
• General Hydrogen with General Motors
• Hydrogenics with GM, John Deere, American Power
  Conversion, US Army

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International Involvement Canadian Government

• International Partnership for the Hydrogen
  Economy (IPHE)
• International Energy Agency (IEA) Implementing
  Agreements
• Production and Utilization of Hydrogen
• Advanced Fuel Cells
• Advanced Motor Fuels
• International Safety Organization TC197
• Asia Pacific Economic Cooperation (APEC)
• Natural Resources Canada/US Department of Energy
  (treaty negotiation)
• Natural Resources Canada/California Air Resources
  Board MOU
• Government led trade missions

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Commercialization Challenges for Hydrogen and
Fuel Cells

• Micro-level
• Improved fuel cell reliability and durability
• Reduced cost
• Macro-level
• Stimulating early market demand
• Improving product quality while reducing costs
• Financing for RD, commercialization
• Creating supporting infrastructure
• Codes and standards

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Technology Development On Track for
Commercialization

• Companies are meeting technology development
  timelines
• Ballard Power Systems has reduced costs of fuel
  cells by 80 since 1999, while achieving a
  ten-fold increase in lifetime
• Fuel Cell Technologies has accumulated over 1500
  hours of operation on its second generation 5 kW
  system
• Hydrogenics HyPM 10 kW power module has achieved
  over 5000 hours of operation over 6500
  stop-start cycles on a single unit
• Dynetek Industries has 10,000 psi (750 bar)
  hydrogen tanks on the market
• BC Hydro/Powertech is a 10,000 psi operational
  fueling station
• US companies attaining commercial sales contracts

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Hydrogen Highway

• Province of British Columbia Lower Mainland and
  Vancouver Island
• Coordinated market demonstration program designed
  to accelerate commercialization
• Framed around the 2010 Winter Olympic and
  Paralympic Games
• Showcase and demonstrate the environmental,
  economic and social benefits of this technology
  to the world
• First phase by 2007 is focused on seven highly
  visible locations
• Mobile, stationary and micro fuel cell
  applications and infrastructure
• Multi-agency effort

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Hydrogen Highway

• Examples of Activities
• Hydrogen Fueling Stations
• Surrey (10,000 psi)
• Vancouver (5,000 psi)
• Victoria (5,000 psi)
• Hydrogen Technology Environmental Chamber
• Photovoltaic panels, electrolyser and hydrogen
  storage at the NRC Institute for Fuel Cell
  Innovation
• Integration with Vancouver Fuel Cell Vehicle
  Program

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Vancouver Fuel Cell Vehicle Program

• Partnership between Government and Industry
• Demonstration of sustainable, zero-emission based
  transportation technologies
• 5 Ford Focus vehicles to be evaluated for three
  years in Vancouvers Lower Mainland
• Technology Ballard Fuel Cell Systems, Dynetek
  Hydrogen storage
• Opportunity to test, demonstrate, deploy and
  evaluate proprietary systems for H2 production

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Hydrogen Village

• The Hydrogen Village is located in the Greater
  Toronto Area in the Province of
• Ontario.
• The intent of the H2V is to
• Create a plan and platform for the deployment of
  hydrogen and fuel cell technologies to the
  benefit of the local community.
• Develop the necessary supply, service, and
  knowledge infrastructure needed to create a
  sustainable market.
• Ensure technology deployments (stationary, mobile
  and transportation) fit within the context of
  existing community infrastructure and activity.
• Aid in the complementary growth of other centers
  across Southern Ontario thereby developing a
  hydrogen Corridor.

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Hydrogen Village

• Examples of Activities
• Hydrogen powered delivery trucks for Purolator
  courier fleet
• Fueling infrastructure and hydrogen powered
  forklifts for General Motors plant in Oshawa
• Residential heating and power generation using
  four solid oxide fuel cells at a townhouse-style
  student residence at the University of Toronto at
  Mississauga
• Back-up power for computer network servers
• Fuel cell-based back-up power system at a
  telecommunications switching station
• Hydrogen fuel cell powered utility vehicles in
  conjunction with hydrogen production and
  refueling at the Canadian National Exhibition

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The Path Forward Partnership Opportunities

• Demonstration Projects
• Hydrogen Highway conceptually, a Hydrogen
  Highway from Baja, California to British
  Columbia, Canada (BC to BC)
• Funding programs that encourage North America
  wide participation
• Sharing lessons from past Olympic Games and
  preparing to showcase NA capabilities/expertise
  in the 2010 Olympic Games
• Joint Development
• Providing enhanced access to RD programs in all
  jurisdictions at the institutional/corporate
  level
• Joint education and outreach programs
• Identify and set objectives to support core
  competencies in each country to ensure
  complimentarity rather than duplication
• Government Support
• State/Provincial governments encouraging
  transborder activities
• Involvement of US, Canada and potentially Mexico
  in IPHE activity

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Fuel Cells Canada Sponsoring Members
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Fuel Cells Canada Members
NORAM Engineering and Constructors Ltd. Palcan
Power Systems Inc. Pathway Design Manufacturing
Inc. PEM Engineers Inc. PricewaterhouseCoopers
LLP Propane Gas Association of Canada
Inc. Province of Ontario Quebecs Fuel Cells and
Hydrogen Network Queens RMC Fuel Cell Research
Centre QuestAir Technologies Inc. Sacré-Davey
Engineering Sarnia-Lambton Economic
Partnership TD Securities Inc. Tekion Solutions
Inc. Teleflex Canada Inc. University College of
the Fraser Valley Westport Innovations
Inc. Zongshen PEM Power Systems
FTI International Inc. Fuel Cell Technologies
Ltd. FuelCon Systems Inc. General Hydrogen
Corporation Gowling Lafleur Henderson LLP Greater
Vancouver Regional District GrowthWorks
Ltd Heliocentris Energy Systems Inc. HERA,
Hydrogen Storage Systems Inc. HSBC Bank of
Canada H3 Energy Hydrogenics Corporation IESVic In
co Special Products Keen Engineering Kinectrics
Inc. KPMG LLP Marcon-DDM Marsh Canada
Ltd. McCarthy Tetrault LLP Membrane Reactor
Technologies Ltd. Methanex Corporation National
Bank Financial National Research Council
Advanced Measurements Inc. Alberta Research
Council Alternate Energy Corporation Angstrom
Power Inc. Astris Energi Inc. Azure Dynamics
Corp. Ballard Power Systems Inc. BC Hydro BC
Transit BOC Gases Business Development Bank of
Canada Canadian Hydrogen Association Canadian
Hydrogen Energy Corporation Cellex Power Products
Inc. ChevronTexaco Technology Ventures Chrysalix
Energy Limited Partnership Clean Energy Canada
Conduit Ventures Ltd. Deloitte Touch
LLP Dynetek Industries Ltd. Enbridge Gas
Distribution Energix Research Energy QBD
Inc. Ford Motor Company
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Thank you
Alison Grigg, on behalf of Chris Curtis Fuel
Cells CanadaAugust 27, 2005 Santa Fe, New Mexico