1. National Hydrogen Association
GEO37
National Hydrogen Association
San Antonio, TX 21 March 2007
Byron McCormick General Motors - Fuel Cell Activities

2. Source: Presentation by Congressman Roscoe G
Source: Presentation by Congressman Roscoe G. Bartlett, Air Force Energy Forum, March 9, 2007

3. Two critical challenges of our time:
Energy Security (petroleum dependence)
CO2 Emissions
Real solutions:
Fuels from diverse Renewable Energy Sources
Electrification of the Automobile (zero emissions)
Increased use of ethanol, other bio-fuels, and increased efficiency through hybrids
And, transition to electric transportation through fuel cells and batteries

4. A 4% per year CAFE increase would …
Be expensive (for consumers)
Be technologically challenging
Save 8.5 billion gallons of gasoline annually by 2017
- i.e. less than half of the projected growth in American oil consumption
… only slow the rate of petroleum consumption growth.
Real, long-lasting solutions that truly address petroleum use and vehicle emissions are needed
Testimony, G. Richard Wagoner Jr, CEO GM Corp, 14 Mar 2007, House Energy and Commerce Committee – Regarding Climate Change and Energy Security

5. GM’s E-Flex System and Chevrolet Volt Concept
E-Flex with … Fuel Cell Variant
E-Flex with … ICE Range-Extender

6. Hydrogen Fuel Cell Role in an Electrification Future
Issues
Energy security concerns increase
Over-reliance on peak demand electric grid
Vehicle performance
Impractical storage of large quantities of electric energy in batteries (range constraints)
Lengthy battery recharge times
Hydrogen Fuel Cell Role
Hydrogen production from off-peak electric grid (i.e. energy carrier)
Full-performance vehicle with long range and short refuel time
The fuel-related (electricity) operating cost of running battery-electric vehicles would be much lower for consumers than operating vehicles on any other fuel, including hydrogen. A question that remains to be answered is whether an electric vehicle future powered solely by batteries is a better long-term strategy – or whether this poses weaknesses that can be addressed by leveraging hydrogen. Following are several constraints in an all-battery future that hydrogen can address:
Dependence on the electric grid to meet both stationary and transportation needs could lead to even greater energy security concerns relative to grid-vulnerability
A sustainable energy system is based on renewables, and many renewables are temporal, meaning they can’t generate electricity to match demand loads (e.g. wind, solar). Hydrogen production is one means of storing renewable energy during peak production times for later use. Hydrogen, in this case, becomes a convenient energy carrier.
The recharge time associated with batteries is likely to remain in the hours and will preclude the use of battery-only vehicles on long trips or over extensive duty cycles
Battery energy density limitations mean limited vehicle range. An external energy source will be required to provide long-range mobility, and hydrogen offers a means of extending vehicle range with zero vehicle emissions
Long-term battery costs are expected to remain higher than fuel cell costs on an energy-storage basis. Since energy storage is key to satisfying vehicle long-range requirements, a battery vehicle designed to meet consumer’s long-distance driving needs could be cost-prohibitive.
Battery breakthroughs lead to good short-distance vehicle execution; hydrogen fuel cell’s long-range/full-performance capability complements batteries

7. Hydrogen Production Pathways
Energy Input
Processing
Fuel Output
Ethanol
Reformer
Hydrogen
Biomass
Reformer
Renewable
Organic Waste
Reformer
Crude Oil
Reformer
Natural Gas
Reformer
Coal
Reformer
Electrolyzer
Electric Power Plant
Hydro
Generator
Geothermal
Generator
Solar Concentrator
Generator
Solar PV
Wind Turbine
Renewable
Wave Generator
Relative to economic viability:
Shell – as a result of LA modeling study says central SMR IS viable after initial transition years (work needs to be done relative to retail station costs – which is in part driven by codes/standards,…) – see Shell conclusions slide
Chevron – at 4 Wins says onsite reformation IS viable – and that storage is the controlling cost factor now!
Nuclear
Electric Power Plant
Nuclear
Thermal Process
Multiple pathways offer flexibility around transportation feedstocks and energy sources
Range of options to balance cost vs. environmental footprint

8. Global Hydrogen Market
U.S. Hydrogen Market
Refineries
Refineries
Extensive hydrogen production capacity in place (45M metric tons annually in could fuel 200M vehicles)
95% from Natural Gas
Hydrogen Market Source: 2003, The Innovation Group, Chemical Profiles

9. The Progression toward Hydrogen
wood
& hay
coal &
nuclear
oil
whale oil
liquids
oil & natural gas liquids
natural gas
hydrogen
100 80 60 40 20
1850
1900
1950
2000
2050
2100
2150
Modified from “The Economist” February 10, 2001 edition -- GTI.
% of
market
solids
gases
The progression toward hydrogen -- lowering of the C/H ratio in fuels –has already been occurring as changes in technology have enabled the use of new fuels to:
provide a cost advantage or
bring a new product with exceptional performance into use.
Also, there were environmental drivers of change, even long ago when wood supplies became scarce -- just as today, a perceived scarcity of supply showed up in the marketplace as higher cost, which is always a driver for change.
The progression in fuels with H:C ratios characteristic of wood to coal to oil to methane corresponded to periods requiring about 50 years.

13. Use of Hydrogen in U.S. Petroleum Refining million kg per day
Continued use of petroleum-based fuels requires increased use of hydrogen
Up to 35 million FCVs could be fueled using refinery hydrogen capacity
Terry Higgins, Hart Energy Publishing

14. We’re in the Hydrogen Economy and didn’t know it!
A Hydrogen Transition is already happening
Growing demand for hydrogen maintains oil infrastructure
Increasing overall volume
Increasingly stringent clean fuel regulations
Decreasing demand for heavy fuel oils
Increasingly heavy, more sour crude supply
We’re in the Hydrogen Economy and didn’t know it!

15. Early Hydrogen Refueling Infrastructure
Early hydrogen refueling infrastructure can be commercially viable at volume by:
Leveraging existing hydrogen production/distribution infrastructure
Geographically concentrating deployment & reflecting consumer driving patterns
Coordinating vehicle/infrastructure deployment
Existing U.S. H2 Infrastructure
Relative to economic viability:
Shell – as a result of LA modeling study says central SMR IS viable after initial transition years (work needs to be done relative to retail station costs – which is in part driven by codes/standards,…) – see Shell conclusions slide
Chevron – at 4 Wins says onsite reformation IS viable – and that storage is the controlling cost factor now!

16. 100 Metro Areas = 70% of U.S. Population!
Therefore, an early phase infrastructure launch should concentrate in those areas.
22 September 2003
Hart World Fuels Conference, Washington, DC

17. “Project Driveway”
Beginning in 2007, we’ll begin deploying 100 vehicles in 3 key U.S. regions with diverse climates and driving conditions
California, greater New York City metro, Washington D.C.
Europe and Asia programs to be announced later
Participants from general population, business partners, policy makers and media
Comprehensive feedback on all elements of customer experience
Learnings to guide future fuel cell vehicle development
GM is taking the next step in early market development for fuel cell vehicles with our planned fleet of Equinox Fuel Cell vehicles. Beginning later in we will begin placing 100 Equinox Fuel Cell vehicles in the U.S. as part of a comprehensive deployment plan dubbed “Project Driveway”. This program is designed to gain comprehensive learnings on all aspects of the customer experience, and constitutes the first meaningful market test of fuel cell vehicles anywhere.
Three U.S. locations have been chosen representing diverse climates and driving conditions: here in CA, the greater NYC metro area, and in WDC
A variety of drivers, including individuals, policy makers, media and business partners will operate these vehicles and refuel with hydrogen at designated locations
Project Driveway learnings will directly influence future fuel cell vehicle development and market introduction planning at GM

18. GM’s Next Generation Fuel Cell Vehicles
Fully functional 4-passenger crossover vehicle
Expected to meet FMVSS and ZEV requirements
Freeze durable
200-mile range
Uniquely styled; Chevrolet branded
The Chevrolet Equinox Fuel Cell is GM’s fourth generation fuel cell vehicle. It is:
A fully-functional 4-passenger crossover vehicle
That has been engineered to meet the same U.S. federal motor vehicle safety standards as the production Chevrolet Equinox vehicle
But unlike the production Equinox, it is expected to achieve CA ZEV certification, and operate completely free of petroleum
The significant progress in fuel cell system durability is demonstrated in the vehicle’s 50,000-mile life and freeze durability, meaning it can be operated over its life in sub-freezing environments.
Importantly, the Equinox Fuel Cell, like the Sequel concept vehicle, is badged Chevrolet. This is a strong statement—Chevrolet is GM’s global, volume, foundational mainstream brand—further demonstration of GM’s commitment to the ultimate vision of volume fuel cell vehicles.

19. Pathway to Fuel Cell Commercialization: Conceptual
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
Yr 8
Yr 9
Yr 10
Technology Development
Pilot Commercialization
Early Commercialization
Technology development and validation
under real world conditions
Technology refinement
and early market preparation
Commercial deployment
into mass market
Region 1
Region 2
OEM/Vehicles (e.g. U.S.)
10,000 veh / OEM
100 veh / OEM
1000 veh / OEM
$1mil / veh (early incremental cost)
$250k / veh
$50k / veh
Growing consensus among major OEMs on FCV timing/rollout planning
3 phases: current technology development (small numbers of demo vehicles), a pilot phase (generational improvement/learning supports volume ramp for both vehicles and infrastructure) and early commercialization.
Importance of coordinated vehicle deployment and infrastructure build out; focus on utilization of infrastructure investment, but at a level that also supports consumer driving behavior and confidence.
Significant cost penalty for early vehicle production
Represents capitalization challenge for supply base
Represents capitalization challenge for low-volume vehicle production and importance of generational learning
Key to execution are 1) financial incentives that reduce the high capitalization risk during the early transition years when there is low volume and 2) accelerating the pace of progress (e.g. installation of infrastructure) by increasing stakeholder confidence in hydrogen’s role in the future.
Path to commercialization must quickly yield customer total ownership (vehicle and operating cost) cost neutrality with other vehicle options, and business sustainability, to support development of market momentum (tipping point)
Underestimated Hurdles:
Early Capitalization challenge (infrastructure AND vehicles)

20. Pathway to Fuel Cell Commercialization: Conceptual
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
Yr 8
Yr 9
Yr 10
Technology Development
Pilot Commercialization
Early Commercialization
Technology development and validation
under real world conditions
Technology refinement
and early market preparation
Commercial deployment
into mass market
Region 1
Region 2
OEM/Vehicles (e.g. U.S.)
10,000 veh / OEM
100 veh / OEM
1000 veh / OEM
$1mil / veh (early incremental cost)
$250k / veh
$50k / veh
Energy/Infrastructure
Region 1
Region 2
Leadtime
Growing consensus among major OEMs on FCV timing/rollout planning
3 phases: current technology development (small numbers of demo vehicles), a pilot phase (generational improvement/learning supports volume ramp for both vehicles and infrastructure) and early commercialization.
Importance of coordinated vehicle deployment and infrastructure build out; focus on utilization of infrastructure investment, but at a level that also supports consumer driving behavior and confidence.
Significant cost penalty for early vehicle production
Represents capitalization challenge for supply base
Represents capitalization challenge for low-volume vehicle production and importance of generational learning
Key to execution are 1) financial incentives that reduce the high capitalization risk during the early transition years when there is low volume and 2) accelerating the pace of progress (e.g. installation of infrastructure) by increasing stakeholder confidence in hydrogen’s role in the future.
Path to commercialization must quickly yield customer total ownership (vehicle and operating cost) cost neutrality with other vehicle options, and business sustainability, to support development of market momentum (tipping point)
Leadtime
10 Stations
100 Stations
Leadtime
250 Stations
Underestimated Hurdles:
Early Capitalization challenge (infrastructure AND vehicles)
Leadtimes required to execute (incl. infrastructure unpredictability)

21. Focus on the details of execution – vehicles are coming
Leadtime Reduction through … … Industry/Government Collaboration
Germany
Retail-like refueling stations
Geographically targeted regions where automakers want to put vehicles
700bar fast-fill refueling
Operational with (or before) vehicles
Access to key existing stations
Access agreements w/ consistent principles or
Gasoline-like liability terms or
Eliminate access agreements altogether
Expedient station approval and permitting process
State-wide consistency and local adherence
Community support
Funding Support and Incentives
Stations and upgrades
Liability coverage (funded liability pool, liability cap) or…
Full-service attendants to mitigate liability issues
Station operating costs/refueling costs
U.S.
Focus on the details of execution – vehicles are coming

22. Fundamental Enablers to Successful FCV Commercialization
Strong leadership of a clear national energy strategy
Consistent/persistent support of alternative fuel program
Pathway to diversity and renewables; role of hydrogen
 addressing energy security, energy/grid vulnerability, environment
Industry confidence in government’s commitment to/potential of hydrogen
Public confidence in hydrogen safety and benefits through education
Sustained, long term, compelling incentives
Overcoming near term and longer term business risk
Substantial incentives for automakers, suppliers, infrastructure, customers
Early demand development – government as a customer
Coordinated vehicle / infrastructure market introduction
Geographically concentrated market regions
Vehicle and Infrastructure deployment coordination
Three fundamental enablers to successful FCV commercialization (top down perspective)
Government must lead with strong leadership of a clear national energy strategy, including explicit rationale for H2
Backed up with sustained, long-term financial incentives to overcome the early capitalization risk during the early market introduction period of uncertain demand (both FCV and H2)
Executed in an intelligent, coordinated manner to ensure efficient investment and maximum utilization via focus on selected geographic regions early on and coordinated vehicle/infrastructure deployment
For an efficient, timely transition, sustained and consistent government support for hydrogen is required

23. GEO37