1. 21 st Fuel Cell Symposium FCDIC, Japan 30 May 2014 Noriko Hikosaka Behling www.norikobehling.com

2. Table of Contents Fuel Cell and Hydrogen Commercialization: A Global Overview Japan United States South Korea Germany Market Shares & Patents Copyright 2014 by Noriko Hikosaka Behling2

3. Japanese Science and Technology Policy Science and Technology Basic Law (Nov 1995) Law Promoting Technology Transfer from Universities to Industry (TLO Law) (May 1998) Article 30 of Law on Special Measures for Industrial Revitalization—a Japanese “Bayh- Dole Law” (Oct 1999) National University Corporation Law that changed national universities from government to a special corporation (Apr 2004) New Education Basic Law (Dec 2006) included support of industry as a university mission Copyright 2014 by Noriko Hikosaka Behling Industry researchers 199 University-Industry Collaborative Research Centers established by 2013 to promote venture companies; about 2,000 venture companies were created. University researchers Conducting long-term collaborative research Project Manager All researchers stationed on campus  Japan Enacted Laws that Promoted Originality, Inventiveness, and Entrepreneurship and Close Collaboration among Government, Academia, and Industry 3

4.  Japan Launched a Series of Fuel Cell Initiatives and Implemented Them through Entire Government with Strong Industrial Collaboration Copyright 2014 by Noriko Behling Policies are supported by Japanese Diet, Prime Minister, and government ministries, industry and the academia 産官学連携体制. Fuel Cell Development Strategic Plan (Jan 2001) Science and Technology Basic Plan (Mar 2006) New National Energy Strategy (May 2006) Basic Energy Plan (Mar 2007) Next-Generation Automobile Fuel Initiative (May 2007) Prime Minister’s Initiative: Cool Earth –Innovative Energy Technology Plan (Mar 2008) Initiatives to Promote Fuel Cell and Hydrogen Technology that were derived from Science and Technology Basic Law of 1995: Japanese Fuel Cell Policy (1) 4 FCCJ

5. Japanese Fuel Cell Policy (2) Copyright 2014 by Noriko Hikosaka Behling  Fuel cell budget for FY2014 lowered slight over 2012.  Currently it is $397.7 million--double the previous year and largest in the world. Activities FY2013 BudgetFY2014 Budget R&D Budget PEMFC R&D 固体高分子形燃料電池実用化推進技術開発 (FY2010-2014) $31.9 million SOFC R&D 固体酸化物形燃料電池等実用化推進技術開発 (FY2013-2017) $12.4 million$13 million Hydrogen Utilization Technology Development 水素利用技術研究開発事業 $20 million$32.5 million Fuel Cell Vehicle and Hydrogen Station Demonstration Project $7.5 million0 Construction of Center of Excellence Hydrogen Research Test Center $29.4 million0 Total $101.2 million$77.4 million Subsid- ies Installation of Hydrogen Fueling Station 水素供給設備整備事業費補助金 $46 million$72 million Installation of Ene-Farm$250.5 million$200 million Total $296.5 million$272 million  Japan Ensured Robust and Stable R&D Budget 5

6. Japanese Fuel Cell Policy (3) Copyright 2014 by Noriko Hikosaka Behling6

7. Japanese Fuel Cell Policy (4) Copyright 2014 by Noriko Hikosaka Behling Fuel Cell Commercialization Conference of Japan (FCCJ) 7

8. Japanese Fuel Cell Commercialization (1) Copyright 2014 by Noriko Hikosaka Behling8 Total Installations= 3307 units 定置用燃料電池大規模実証研究事業, FY2005-2008 Astomos Energy, Osaka Gas, Seibu Gas, JX Nippon Oil and Energy, Tokyo Gas, Toho Gas

9. Japanese Fuel Cell Commercialization (2) Copyright 2014 by Noriko Hikosaka Behling  Japanese residential CHP deployment, Total = 82,974 units  Possible Overseas Opportunities 9 CompanyOverseas Activities PanasonicJoint Venture with Viessmann (Germany) perhaps in April 2014 ToshibaJoint venture with Baxi Innotech (Germany) in March 2014; Preparatory joint efforts underway with Korean heating appliance manufacturers JX Nippon Oil and Energy Joint efforts with a Korean gas company and a fuel cell development center in North Rhine-Westphalia in Germany Aisin SeikiSupplied power module to Bosch (Germany) for exhibit; Demonstration operation in Ene-Field Project (Europe) in 2014 Data from Advanced Cogeneration and Energy Utilization Center Japan A.C.E.J, コジェネ財団, as of April 2013

10. Japanese Fuel Cell Commercialization (3)  Japan Implemented Two-Phase Hydrogen and Fuel Cell Demonstration (JHFC) Projects (2002-2005, 2006-2010 ) Copyright 2014 by Noriko Hikosaka Behling10 Source: various NEDO data JHFC project operated 14 hydrogen stations in Japan in Kanto, Chubu, and Kansai areas Partners as of March 2011 included:

11. Japanese Fuel Cell Commercialization (4) Copyright 2014 by Noriko Hikosaka Behling11 November 18, 2010. Toyota Vice President Takeshi Uchiyamada  November 18, 2010. Toyota announced its Future Plans for Fuel Cell Hybrid Vehicle Commercialization  January 13, 2011. 13 Companies made A Joint Declaration on Domestic Market of FCVs in 2015 and Establishment of Hydrogen Supply Infrastructure (3 automakers and 10 energy companie s)

12. Japanese Fuel Cell Commercialization (5)  METI 2014 Fuel Cell Budget includes $300 million for Clean Energy Next Generation Vehicle Subsidies クリーンエネルギー自動車等導入 促進対策費補助金  Subsidies Provided for Fuel Cell Vehicles, Electric Vehicles, Plug-In Hybrid Vehicles, and Clean Diesel Vehicles Electric Vehicles Plug-in Hybrid Vehicles Clean Diesel Vehicles 12Copyright 2014 by Noriko Hikosaka Behling 20202030 Conventional vehicles50-80%30-50% Next generation vehicles20-50%50-70% Hybrid vehicles20-30%30-40% Electric vehicles/Plug-in hybrid vehicles15-20%20-30% Fuel cell vehicles~1%~3% Clean diesel vehicles~5%5-10%

13. Japanese Fuel Cell Commercialization (6) METI 2014 Fuel Cell Budget includes $52 Million for Hydrogen Supply Infrastructure Establishment Subsidies 水素供給設備 整備事業費補助金, a 3-year program for 2013-2015. Establishment of Fuel Cell Supply Infrastructure at four major Metropolitan areas in Japan for Fuel cell vehicle commercialization in 2015. Copyright 2014 by Noriko Hikosaka Behling13 Iwatani Corp JX Nippon Oil and Energy Tokyo Gas Toyota Tsusho/Air Liquid Japan Iwatani Industrial Gases

14. US Fuel Cell Policy (1) --Based on A Single Presidential Initiative-- Copyright 2014 by Noriko Hikosaka Behling US fuel cell policy lacks political consensus; it is based on one primary initiative and administered via a single department with limited support from other Agencies. President George W. Bush initiated FreedomCar Initiative in 2002 and Hydrogen Fuel Initiative in 2003. US fuel cell policy affected by the change of administration. US fuel cell program is subject to local policy jurisdiction. SOFC no longer supported. DOE EERE has no responsibility for non-hydrogen fuel cells. 14

15. US Fuel Cell Policy (2) Copyright 2014 by Noriko Hikosaka Behling 15 The DOE fuel cell and hydrogen budgets have been unstable. For FY2010, DOE/EERE cut its fuel cell budget by 60 percent—to $80 million; $170 million was appropriated by Congress. US budgets are smaller than Japanese and European counterparts in recent years. Also, US fuel cell R&D budget is falling as a share of DOE fuel cell and hydrogen budget. Total DOE fuel cell/H2 budget DOE/EERE fuel cell budget

16. US Fuel Cell Policy (3) Copyright 2014 by Noriko Hikosaka Behling16 The Hydrogen and Fuel Cells Program, DOE, September 2011 Fuel Cell and Hydrogen Budget, DOE, May 2013 Also, in FY2012, DOE/FE decided to end SOFC R&D. It has zeroed out SOFC R&D budget since then. The Congress appropriated a small budget for FY2012 and 2013. Future of US SOFC technology is uncertain. Congress appropriated $25 million for FY2012 and $24 million for FY2013. 13 24

17. US Fuel Cell Policy (4) Copyright 2014 by Noriko Hikosaka Behling17 All cost estimates revised upward

18. US Fuel Cell Policy (5) Copyright 2014 by Noriko Hikosaka Behling18 P PNGV Program = 68 patents Total = 115 patents 11.5 patents/year; $14 million per patent  A total of 115 patents resulted from the 2002-2012 Fuel Cell and Hydrogen Program budget of about $1.6 billion, one patent per $14 million.

19. US Fuel Cell Commercialization (1) Copyright 2014 by Noriko Hikosaka Behling19 FuelCell Energy - Cumulative global total 379.2MW, of which 269.2MW or 70% to South Korea  Bloom Energy installed 522 units, 113.08 MW SOFC systems primarily in California (as of Dec 2013)  Bloom installed a 200kW Bloom box in Japan in Nov 2013  Bloom Energy installed 522 units, 113.08 MW SOFC systems primarily in California (as of Dec 2013)  Bloom installed a 200kW Bloom box in Japan in Nov 2013

20. US Fuel Cell Commercialization (2) Copyright 2014 by Noriko Hikosaka Behling20 Plug powerBallard HydrogenicsFuelCell Energy

21. South Korean Fuel Cell Policy (1) --Driven by Presidential Vision-- Copyright 2014 by Noriko Hikosaka Behling “In fact as well as in name, we are moving to the age of Hydrogen Economy. Full support of R&D investment will be guaranteed during my term of office. I am proud of our efforts to make this new technology to new growth engines.” (In a council of an advisory energy committee, Mar. 2005.) Hydrogen Economy Low Carbon, Green Growth “Green Growth means achieving sustainable growth by reducing greenhouse gas emission and environmental pollution.” (60th Anniversary of National Liberation Day, Aug. 15, 2008) Creative Economy (Feb 2013) President Park created a new Ministry of Science, ICT, and Future Planning, but her future direction of R&D on hydrogen and fuel cell is not defined yet. President Roh, 2003-2008 President Lee, 2008-2013President Park, 2013- 21

22. South Korean Fuel Cell Policy (2) Copyright 2014 by Noriko Hikosaka Behling22 Source: Transition to Renewable Energy System, by Stolten and Scherer, Wiley, 2013

23. South Korean Fuel Cell Commercialization (1) --Small Stationary Fuel Cell Systems-- Copyright 2014 by Noriko Hikosaka Behling Tae-Wong Lee, May 2009; Yong Gun Shul, IPHE, 2012; Jong Wong Kim, 2013 23 1kW PEMFC fuel cell with stainless steel separator 1kW PEMFC system FuelCell Power

24. South Korean Fuel Cell Commercialization (2) --Large Stationary Fuel Cell Systems-- Copyright 2014 by Noriko Hikosaka Behling Tae-Wong Lee, May 2009  Rapid  Rapid procurement and deployment of US MCFC and PAFC systems  Domestic development of MCFC systems 24

25. South Korea Fuel Cell Commercialization (3) -- Rapid Deployment through Incentive Measures-- Fiscal Year-2008200920102011Total Maximum Allowance8 MW12MW14MW16MW50 MW Copyright 2014 by Noriko Hikosaka Behling Feed-in-Tariff (FIT) 2007-2011 27¢/kWh (vs. 7¢/kWh for conventional) Sold-out: MCFC 45.2 MW (POSCO); PAFC 4.8 MW (UTC) Renewable Portfolio Standard (RPS) - Ratio of Renewable Power in Total Year20122013201420152016201720182019202020212022 %22.533.545678910 Renewable market: 350 MW/year until 2016; 700 MW/year until 2022, $54 billion in total Subsidies for micro-combined heat and power units for the home, 2009 80 percent of the cost by the central government and another 10% by local government, drop to 50 percent in 2013 and finally 30 percent as of 2017. The subsidies will run through 2020. 25

26. South Korean Fuel Cell Vehicle Commercialization Plan (1) Copyright 2014 by Noriko Hikosaka Behling26 Jong Won Kim, IHEDF, 2013 FCV Demonstration Program Phase I: 2006. 8 - 2010. 7 (4 years)  Vehicles : 30 Passenger cars, 4 Buses  Budget : $ 46.6 million (Government 50%)  Hydrogen Station: 11 sites Phase II: 2010. 12 ~ 2013. 12 (3 years) - Vehicles : 100, Public, Seoul/Ulsan - Hydrogen station: 13 sites (2012. 2) Fuel Cell Power100 kW Battery24 kW Motor SystemAC induction/100 kW H2 Tank700 bar Fuel Efficiency27 km/l (63.5 mpg) Driving Range570 km (354 miles) Acceleration (0 to 100 kph)12.5 sec Maximum Speed160 kph (100 mph) Hyundai to Enter the Market 2014/2015

27. South Korean Fuel Cell Commercialization (5) Copyright 2014 by Noriko Hikosaka Behling27 Type2011201320152020 H2 Stations -1843168  Hydrogen Infrastructure Roadmap by Korean Government (2010) Phase I (~2012) 13 stations Phase II (~2015) 43 stations Phase III (~2030) 500 stations  13 stations in operation (Jan.,2012) Jong Won Kim, IHEDF. 2013

28. German Fuel Cell Policy (1) Copyright 2014 by Noriko Hikosaka Behling28 Bonhoff, 2012  National Innovation Program for Hydrogen and Fuel Cell Technology NIP is a strategic alliance b/w German government, industry and academia, the public-private partnership PPP  NIP is Coordinated by NOW, National Organization Hydrogen and Fuel Cell Technology, owned by the government

29. German Fuel Cell Policy (2) Copyright 2014 by Noriko Hikosaka Behling29 NIP is supported by: German National Innovation Program (NIP)Hydrogen and Fuel Cell Technology (2007-2016) (Thousand Euro) 14% 13% 10% 3% Created based on various NOW data

30. German Fuel Cell Commercialization Plan NIP Program InitiativeDateKey RegionsNIP Goals by 2025 TransportClean Energy Partnership (CEP) Since 2003Berlin and Hamburg  500,000 fuel cell vehicles  2,000 fuel cell buses H2-MobilityMOU in Sept 2009 Berlin  500 hydrogen refueling stations StationaryCALLUX Project 2008 ‐2015  500,000 fuel cell heating systems  > 1,000 MW fuel cell CHP systems NEEDS Supply of CO2‐free energy Special Markets  Leisure‐/tour -ism market  Backup power  Forklifts  >25,000 backup power systems Copyright 2014 by Noriko Hikosaka Behling30

31. German Fuel Cell Commercialization (2) CountryAuto- makers Mark et Entry R&D PartnersCountry MOU Current Status GermanyDaimlerAs early as 2017 Daimler, Ford, and Nissan agreed to share costs equally on the development of a common fuel-cell stack and other systems UK, US 200 FCVs leased in Germany and US Copyright 2014 by Noriko Hikosaka Behling 31 Mercedes-Benz B-Class F-Cell Mercedes Benz B Class F-Cell Length3.84 m Width1.764 m Height1.593 m Power100 kW Range250 miles

32. Copyright 2014 by Noriko Hikosaka Behling German Fuel Cell Commercialization (3) 32 Germany UK UK Denmark Germany Swiss Germany Swiss Germany

33. German Fuel Cell Commercialization (4) Copyright 2014 by Noriko Hikosaka Behling33 SFC Energy (Germany, DMFC) Intelligent Energy (UK, PEMFC) CFCL (Australia/Germany, SOFC)Heliocentris (Germany, PEMFC) Proton Power System (Parent of Proton Motor Fuel Cell) (Germany, hydrogen manufacturing, PEMFC)

34. Global Fuel Cell Market Overview Copyright 2014 by Noriko Behling Asia - Japan and South Korea Dominant Player Residential CHP & larger MCFC and PAFC systems Fuel Cell Today, 2013 34

35. Global Patent Overview Copyright 2014 by Noriko Hikosaka Behling35 2008 and 2009 date may not reflect the real data due to the time delay in reporting. Analysis by Japan Patent Office, April 2012 based on data from Derwent World Patent Index Ranking Order: Japan, South Korea, US, and Europe  Fuel Cell Patent Application Analysis: 2005-2009 Japan Patent Office, 2012

36. Global Patent Overview (6) Copyright 2014 by Noriko Hikosaka Behling36  Number of granted patents by country 2010-2013  Top 10 Fuel Cell Patent Assignees by Country 2008-2013 CEPGI data

37. Thank You for Your Attention! Noriko Behling 703-893-1569 behlingn@msn.com www.norikobehling.com Thank You for Your Attention! Noriko Behling 703-893-1569 behlingn@msn.com www.norikobehling.com Copyright 2014 by Noriko Hikosaka Behling37