EU invests €1 billion into hydrogen R&D - consequences for biomass industry

The European Union and European Industry today announced plans to make fuel cells and hydrogen one of Europe's leading new strategic energy technologies of the future. According to some, fuel cells, as an efficient conversion technology, and hydrogen, as a clean energy carrier, have a great potential to help address energy challenges facing Europe. The European Commission, European Industry and the European Research Community, which compose this public-private Joint Technology Initiative (JTI), will invest together nearly €1 billion over six years in fuel cells and hydrogen research, technological development and demonstration. The goal is to achieve mass-market rollout of these promising technologies before 2020.

In practise, an emphasis on hydrogen means a commitment to bio-hydrogen, which, according to the EU's 'hydrogen roadmap', is seen as both the most efficient, cost-effective and most practical hydrogen production pathway. It is possible to produce hydrogen from the electrolysis of water, with the electricity coming from sources such as solar and wind power. But the costs of these pathways are prohibitive. Hydrogen from biomass also has the largest absolute potential of all the renewable sources. And it has the largest longterm potential of all sources (except coal), when a reference price equivalent to $50 per barrel of petroleum is set (see the recently published EU HyWays report, previous post).

The main goal of the Joint Technology Initiative (JTI) on Fuel Cells and Hydrogen (FCH) is to speed up the development of fuel cells and hydrogen technologies in Europe and enable their commercialisation between 2010 and 2020. The JTI's activities will reduce time to market for hydrogen and fuel cell technologies by between an estimated 2 and 5 years.

By investing in such a results-oriented scientific project, we are putting our money where our mouth is: the development of new technologies is crucial if we are to meet EU objectives to address climate change and energy challenges. This requires the commitment of all actors. Gathering more than 60 private companies, from multinationals to SMEs, together with the Commission, an equal number of universities and research institutes is therefore a great success. This JTI brings together the most significant players to put Europe ahead of the game in new energy technologies. I hope we will see a snowball effect in other strategic research areas. - Janez Potočnik, EU Commissioner for Science and Research

The Fuel Cells and Hydrogen Joint Technology Initiative is the best possible vehicle to accelerate the development of technologies and bring the commercialisation of hydrogen and fuel cells forward. The JTI provides us with the unique opportunity to implement our plans on a large European scale. To prepare the market for these strategic technologies it is necessary to ensure the cooperation of all stakeholders: it is not only needed for the relevant industrial sectors to develop the supply chain but it is also critical to ensure the cooperation between Research, Industry and Government, at regional, national and European level. - Gijs van Breda Vriesman, Chairman of the Governing Board of the Joint Undertaking

The JTI partnership will implement an integrated and efficient programme of basic and applied research and technology development, demonstration and support activities, focused on the most promising applications:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: biohydrogen :: hydrogen :: EU ::

This JTI can be also seen as a first working example of future European Industrial Initiatives, as foreseen by the European Strategic Energy Technology Plan (SET-plan) which is to play a vital role in accelerating the development and implementation of low carbon technologies.

The first call for proposals with an indicative budget of 28.1 million Euros was published on 8th October 2008. It covers areas such as transportation and refuelling infrastructures and the production, storage and distribution of hydrogen.

The legal entity, the Fuel Cells and Hydrogen Joint Undertaking, will be led by a Governing Board. Daily management and operations will be the responsibility of an Executive Director supported by the Programme Office seated in Brussels. A Scientific Committee will advise the Governing Board. The Member States will closely follow the activities via the States Representatives Group. The Stakeholders' General Assembly will be held on an annual basis.

Background
Scenario analysis, undertaken in the EU-funded project "HyWAYS" indicates that hydrogen, if introduced with suitable policy measures, could reduce the total oil consumption by the road transport sector by 40% between now and 2050. Furthermore, by 2050, CO2 savings from road transport of up to 50% compared to peak levels are possible. Comparing overall spending for hydrogen production, supply and vehicles with the savings to be gained from replacing conventional fuel and conventional vehicles over time, the break-even point could be most likely reached between 2025 and 2035. Nevertheless European Industry needs additional stimulation to invest in the technology of hydrogen and fuel cells.

On 30 May 2008, the Council of Ministers adopted the regulation setting up the Fuel Cells and Hydrogen Joint Undertaking. It is the result of 6 years' effort, involving the main stakeholders in the sector and the Commission to prepare this new type of public-private partnership.

References:
The Fuel Cells and Hydrogen Joint Technology Initiative : MEMO/08/617 [Overview of the project].

European Commission: "Europe to be in a pole position for the Fuel Cells and Hydrogen Race" - October 14, 2008.

Memo "JTI Frequently asked questions": MEMO/07/570.

Memo on Fuel Cell and Hydrogen JTI: MEMO/07/404.

European Hydrogen and Fuel Cell Technology Platform.

Biopact: EU HyWays report concludes biomass least costly and preferred renewable for hydrogen production; hydrogen can replace 40% oil by 2050 - February 26, 2008