We have to act NOW for a sustainable future! Conclusions and recommendations from the HyWays project

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We have to act NOW fora sustainable
future!Conclusions and recommendations from the
HyWays project
The European Hydrogen Energy Roadmap
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Main message

• Hydrogen has the potential to reduce total CO2
  emissions from road transport in a cost effective
  way by over 50 in 2050
• if we start to act now!

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Why do we need hydrogen?

• Emission reduction

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Emission reduction potential
Annual CO2 emissions from European road transport
Hydrogen scenarios

• Over 50 reduction of emissions from road
  transport by 2050.

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Cost effective emission reduction
Marginal abatement costs (MAC) for CO2 emission
reduction (Europe)
Hydrogen scenarios

• Costs of CO2 emission reduction decrease by 4 in
  2030 and 15 by 2050.

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Pollutant emissions
NOx emissions compared to baseline

• Short-to-medium term improvementof air quality.
• 70 reduction by 2050.
• Even higher reductions possibleat local level
  (cities).

2000
2010
2020
2030
2040
2050
High support, high learning scenario
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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment

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Impact on economic growth
The transition to hydrogen offers economic
opportunities

• Strengthening Europes position as
  manufacturerof cars and energy equipment.

• Decreasing vulnerability to oil price shocks and
  structural high oil prices.

• Small positive GDP effects in most countries
  from 2030 onwards.

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Impact on employment
Employment 2030

• 25 of all vehicles are produced in Europe. (10
  of total GDP in EU27)
• Dilemma for large automotive countries
• Drastic GDP and job losses if these countries
  lose market shares due to a late market entry.
• Uncertainties about success of H2 cars and risk
  of losses due to investments in premature H2
  infrastructure and car development.
• Less drastic for other countries by following
  the "right strategies, additional wins in GDP
  and employment can be obtained.

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply

?
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Security of supply
Hydrogen production mix (Scenario Visions of
the national stakeholders)

• Hydrogen de-couples energy demand from resources
  (like electricity).
• Diversified hydrogen production mix leads to
  substantial improvement in security of supply.
• Total oil consumption of road transport decreases
  by 40 until 2050 (80 hydrogen vehicles).

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply
• Renewable energy and energy saving

?
?
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Hydrogen renewable energy
Hydrogen production mix (Scenario 80 emission
reduction, failure of CCS technology)

• Opportunity to increase the share of renewable
  energy (beyond biomass) in transport.
• Link between fuel and power by electrolysis
  augments take-up of renewables into the grid.

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Hydrogen energy efficiency
Efficiency of hydrogen fuel cell passenger
vehicles is significantly higher than of internal
combustion engine (ICE) and hybrid ICE vehicles.

• End use efficiency is increased by hydrogen and
  fuel cell technology.
• E.g., hydrogen from biomass (used in fuel cell
  vehicles) allows for substantial efficiency gains
  over biofuels.

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply
• Renewable energy and energy saving

?
?
?
But what do we need now?
Immediate action!
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We have to act now for a sustainable future!
Cash flow over time

• High introduction rates of vehicles and build-up
  rate of infrastructure are needed for an
  industrially relevant growth.
• A slow market penetration of hydrogen is
  unacceptable from an investors point of view.
• Immediate action is needed to overcome the
  initial barriers.

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply
• Renewable energy and energy saving

?
?
?
But what do we need now?
Immediate action! A hydrogen-specific support
scheme
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A European hydrogen-specific support framework is
needed.

• Innovation support Increase RD budgets at EU
  and member state level for hydrogen technologies.
• Suggested European level 80 M/year.
• Market support Implement a hydrogen specific
  deployment support framework at member state
  level.
• Starting point equalise costs (ct/km) for road
  transport (e.g. through tax incentives).
• Total costs of deployment support scheme 180
  M/year.
• Early markets Create markets utilising the
  advantages of hydrogen applications.
• E.g. city centre access regulations or
  procurement of zero emission vehicles within
  governmental services.

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply
• Renewable energy and energy saving

?
?
?
But what do we need now?
Immediate action! A hydrogen-specific support
scheme A public private partnership
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A public-private partnership (PPP) is needed.

• Production of a small series of vehicles has
  started but has to be scaled up further soon.
• In the early commercialisation phase,
  technology-specific deployment support and RD
  must go hand-in-hand.
• A European public private partnership between
  industry and the EC, such as a Joint Technology
  Initiative (JTI), is the most suitable framework
  to meet these conditions.

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Why do we need hydrogen?
?

• Emission reduction
• Economy and employment
• Security of supply
• Renewable energy and energy saving

?
?
?
But what do we need now?
Immediate action! A hydrogen-specific support
scheme A public private partnership
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Acknowledgement

• HyWays is an integrated project, co-funded by
  research institutes, industry, national agencies
  and by the European Commission (EC) under the 6th
  Framework Programme contract No 502596.

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Want to know more?An executive summary and the
full version of the HyWaysRoad Map and Action
Plan are available for download at www.HyWays.de
The European Hydrogen Energy Roadmap
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Overall net employment effects
Modest policy support,
modest learning
High policy support,
high learning
Relative to today's employment
Very high support,
high learning

• Small gains if Europe maintains the same
  import/export shares for H2 technology as for
  other technology
• If not, consequences are significant