1. Tohoku University New Industry Creation Hatchery Center (NICHe) 1 July 2013 Noriko Behling

2. Some Background on Today’s Talk Conducted research on worldwide fuel cell policies in 2000 Led to White House sponsoring FreedomCar Initiative and the Hydrogen Fuel Initiative in 2002 and 2003. Designed to promote the development of fuel cell cars Encouraged construction of hydrogen fuel supply infrastructure. But progress disappointing Commercially viable fuel cell vehicles no closer than when the programs had started. Began research in 2007 to find out why Five years later, results are published. This talk summarizes that work Copyright 2013 by Noriko Behling

3. Why Fuel Cells? Fuel cells have broad applications, including c entralized, distributed, and residential applications, transport applications, and portable applications. Fuel cells are inherently efficient; they conserve fossil fuels and preserve fossil fuels longer. In the long term, when fossil fuel is depleted or becomes very costly to obtain, the world will be left with only three energy conversion options. Nuclear fission, Nuclear fusion, or Renewable energy The best option for renewable energy will be, without doubt, the fuel cell. Copyright 2013 by Noriko Behling

4. Global Overview of Fuel Cell R&D Brief Overview 1. Global government and industry fuel cell R&D investment totals more than $22 billion from 1995 to 2012 2. Investment has been applied across all fuel cell types—more than 180 companies and laboratories 3. Implications: No fuel cells commercially profitable--current strategy to support applied research and product development not working 4. New approach needed to achieve breakthroughs in longevity, efficiency, and cost competitiveness Copyright 2013 by Noriko Behling

5. Total Government and Industry Fuel Cell R&D Investment: Europe, Japan, and the United States Combined Public and Private-Sector Fuel Cell R&D Investment exceeded $22 billion, estimated for 1995-2012 Private-sector investment = $14 billion; Government Budget = $8.2 billion; Total = $22.2 billion ($ billion) If investments made prior to this period are considered, the total amount would be far greater, perhaps double or triple this amount. Copyright 2013 by Noriko Behling

6. Major Government Fuel Cell R&D Budgets: Japan, the United States, and Europe Copyright 2013 by Noriko Behling

7. Major Government Fuel Cell R&D Budgets: Japan, the United States, and Europe (Continued) Europe (Total = €2.038 billion between 1990 and 2013, €1.8106 billion or $2.4 billion) from 1995 thru 2012) (Million €) The fuel cell R&D budget here includes only that of the primary agency’s fuel cell and hydrogen R&D. For example, the US budget includes only the DOE fuel cell budget and not the Department of Defense or the Department of Commerce.

8. Estimated Private-Sector Fuel Cell R&D Investment amounts to at least $14 billion, 1995-2012 Global Private Sector Fuel Cell R&D Investment: Japan, United States, and Europe Copyright 2013 by Noriko Behling

9. Current Industry Status: Alkaline Fuel Cells (AFCs) In 1839, William Grove invented the first fuel cell. In 1939, first AFC was built by British engineer Francis T. Bacon, used to power a forklift and welding equipment in the1950s In late 1950s UCC and Allis Chalmers started AFC development In 1962, United Technologies Corporation (UTC) licensed Bacon’s AFC technology, Developed for onboard power for Apollo and space shuttle missions until 2011 In the 1960s, many European, Japanese, and Russian companies engaged in AFC development. During the 1970s and 1980s, most companies ended AFC efforts But a few still remain: AFC Energy continues to develop AFCs. Japanese automaker Daihatsu has started to develop hydrazine-fueled AFC vehicles. Copyright 2013 by Noriko Behling

10. Current Industry Status: Phosphoric Acid fuel cells (PAFCs) In 1961, US researchers G. V. Elmore and H. A. Tanner built the first PAFC. In 1976, DOE launched a PAFC R&D program, primarily providing support to UTC until 1992. In 1992, UTC began commercialization In 1981, Japan launched a PAFC R&D program In 1998, Fuji launched commercialization As of 2012, neither of them report making profits Copyright 2013 by Noriko Behling

11. Current Industry Status: Phosphoric Acid fuel cells (PAFCs) (Continued) Copyright 2013 by Noriko Behling

12. Current Industry Status: Molten Carbonate Fuel Cells In 1960, Dutch scientists G. H. J. Broers and J. A. A. Ketelaar operated first MCFC prototype –they ended their R&D in 1969 In the mid-1960s, US Army, the Gas Research Institute (GRI), and Electric Power Research Institute (ERPI) supported MCFC development Starting in 1976, the US DOE funded MCFC R&D and supported GE, FuelCell Energy (then ERC), UTC, and M-C power In 2000, FuelCell Energy launched commercialization. In 1981, Japan’s METI launched an MCFC development program and funded Fuji, IHI, and MELCO. No Japanese companies began commercialization. In 1986, Italy started funding Ansaldo Ricerche, which is still in demonstration In 1988, Germany Started MCFC Development and supported MBB (later CFC Solutions). In 2010, CFC Solutions ended its MCFC effort. FuelCell Energy continues marketing activities but has achieved no profits. Copyright 2013 by Noriko Behling

13. Current Industry Status: Molten Carbonate Fuel Cells (MCFCs) (Continued) Copyright 2013 by Noriko Behling FCE sales in the US Total = 108.55MW INSERT TITLE

14. Current Industry Status: Solid Oxide Fuel Cells (SOFCs) In 1899, Walther Hermann Nernst discovered first solid state oxygen ion conductor (the Nernst mass) The prototype for the electrolyte in the present-day SOFC In 1962, J. Weissbart and R. Ruka of Westinghouse built first modern SOFCs from a calcia stabilized zirconia electrolyte and two porous platinum electrodes. In 1977, US DOE launched SOFC R&D and funded SWPC’s tubular SOFC. After more than 20 years of DOE support, SWPC was unable to commercialize the technology. In 1974 Japan launched a basic SOFC R&D program and an industrial SOFC R&D program in 1989 In 1986, several European countries launched SOFC R&D, followed subsequently by Australia, Canada, and others. In 2001, DOE initiated another SOFC program, the Solid Energy Conversion Alliance (SECA), to develop planar SOFCs Some SOFC manufacturers launched commercial activities. Copyright 2013 by Noriko Behling

15. Current Industry Status: Solid Oxide Fuel Cells (SOFCs) (Continued) Copyright 2013 by Noriko Behling o Bloom Energy has raised significant venture capital since its establishment in 2001. It raised another $130 million in May 2013. Bloom Energy has now collected over $1.1 billion in venture capital funding over its eleven-year lifetime. o Bloom’s retained earnings through Q3 2012 stood at negative $873 million, with $113 million left in the bank. o Bloom has a goal to be profitable in 2013.

16. Current Industry Status: Proton Exchange Membrane Fuel Cells In 1955, GE invented PEMFCs In 1983, Ballard started to improve GE’s PEMFC and developed a fuel cell bus in 1990 Since then, many governments have launched PEMFC R&D, and about 60 companies have engaged in PEMFC R&D worldwide. Copyright 2013 by Noriko Behling

17. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Fuel Cell Cars (1993-2012) Copyright 2013 by Noriko Behling

18. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Copyright 2013 by Noriko Behling

19. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Copyright 2013 by Noriko Behling Fuel Cell Buses (1993-2013) Development of New Fuel Cell Buses (Total = 94)

20. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Copyright 2013 by Noriko Behling Forklifts (2001-2013)

21. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Copyright 2013 by Noriko Behling Forklifts Plug Power (Million $) Ballard Power Systems (Million $) No company has made a profit as yet.

22. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Backup Power (About 2000-2012) Copyright 2013 by Noriko Behling UNITS?

23. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Backup Power Ballard continues to have a net loss. IdaTech was acquired by Ballard in 2012. (Thousand US$) Copyright 2013 by Noriko Behling

24. Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued) Copyright 2013 by Noriko Behling Residential CHP Three Japanese companies, Panasonic, Toshiba, and JX Nippon Oil & Energy, are marketing 0.7kW residential CHP units. Japanese residential CHP

25. Toy and Educational Systems Cumulative toys and educational kits shipments, 2005-2010. These fuel cells currently ship more than 200,000 units per annum with steady growth of approximately 15–25% year-on-year. Copyright 2013 by Noriko Behling Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued)

26. Current Industry Status: Direct Methanol Fuel Cells Portable Auxiliary Power Unit (APU) or Backup Charger Applications A company sold over 24,000 APU systems between 2004 to May 2012. The most popular APU delivers 40 to 105 W, enabling batteries to operate electrical equipment for daily use onboard mobile homes for auxiliary heating, lighting, TV The APU could operate for four entire days with only one 2.2 kg methanol fuel cartridge. Copyright 2013 by Noriko Behling

27. Toys and Educational Systems Portable APU/battery charger Heliocentris SFC Energy (Thousands of €) Copyright 2013 by Noriko Behling Current Industry Status: Proton Exchange Membrane Fuel Cells (Continued)

28. After More than 170 Years Since its Invention, Why Hasn’t the Fuel Cell Become a Viable Product? What is Needed to be Done? Copyright 2013 by Noriko Behling A Vital Question

29. Sciences Have Advanced Enough to Meet the Challenges Posed by Fuel Cells! Entering the 21 st century, a remarkable collection of advanced research tools have been assembled, such as electron microscopy, X-ray synchrotron light sources, linear accelerators, and computational chemistry These tools now can be used to discover the basic science of fuel cell electro-chemistry and quantum physics Recently, scientists have started to employ sophisticated microscopy instruments for advancing theoretical research and problem solving Copyright 2013 by Noriko Behling

30. Recent Scientific Advances Advancing computational chemistry/problem solving: Ai Sukuzi, Mark C. Williams, et al., “Evaluation for sintering of electrocatalysts and its effect on voltage drops in high- temperature proton exchange membrane fuel cells (HT- PEMFC),” Hydrogen Energy, 28 September 2012. Problem solving: In May 2010, Dr. Adzic of Brookhaven succeeded in achieving layers of platinum a few atoms thick, and other platinum group metals, on nanoparticles. In September 2012, Tiva Sharifi, Guangzhi Hu, et al. showed the way to manipulate carbon atoms and nitrogen atoms that would lead to desired catalytic properties. Copyright 2013 by Noriko Behling

31. Recent Scientific Advances (Continued) Researchers at Yamanashi University and Waseda University, working with others at Shimadzu Corporation, Fuji Electric, and Hitachi, have succeeded in imaging the oxygen distribution within a fuel cell stack for the first time. They used a chemical reagent that absorbs light and emits light of a specific wavelength when oxygen is present and captured an image of oxygen distribution with a charge- coupled device camera. The visualization of the inner working of a fuel cell stack could reveal mechanisms of fuel cell deterioration. Copyright 2013 by Noriko Behling

32. Recent Scientific Advances (Continued) Researchers at Oak Ridge National Laboratory have used a novel microscopy method called electrochemical strain microscopy to successfully examine the dynamics of oxygen reduction/evolution reactions in fuel cell materials This may reveal ways to redesign or cut the costs of the energy devices. Copyright 2013 by Noriko Behling

33. Recent Scientific Advances (Continued) Researchers at Los Alamos National Laboratory have developed nonprecious-metal catalysts using carbon, iron, and cobalt to avoid the use of expensive platinum catalysts in hydrogen fuel cells. The team says its next step will be to better understand the mechanism underlying the carbon- iron-cobalt catalyst. This could lead to improvements in nonprecious-metal catalysts, further increasing their efficiency and lifespan. Copyright 2013 by Noriko Behling

34. Policy Recommendation: Any effort would be centered on basic research to achieve breakthroughs in fuel cell challenges. Basic research should be kept unencumbered from applied research and product development. At the same time, the effort should focus on comprehensive basic research, applied research, and product development project. Participants would include: National research laboratories Academic institutions Fuel cell industry Copyright 2013 by Noriko Behling

35. Recommended Solutions (Continued) National Fuel Cell Development Project (NFCDP) Copyright 2013 by Noriko Behling Source, Noriko Behling, “Making Fuel Cells Work,” Issues in Science and Technology, National Academy of Sciences, Spring 2013.

36. Recommended Solutions Copyright 2013 by Noriko Behling One critically important effort that is ongoing is the New Industry Creation Hatchery Center (NICHe) at Tokuku University Source, “Partnership between Industry and Academia, TOHOKU UNIVERSITY,” by Prof. Fumihiko Hasegawa, New Industry Creation Hatchery Center (NICHe), 2010.

37. Thank you! Noriko Behling 703-893-1569 behlingn@msn.com www.norikobehling.com Copyright 2013 by Noriko Behling