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Brussels, 10 October 2002

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EU Commission President Romano Prodi said: “This is an important choice for Europe. Hydrogen technology will not only reduce our energy dependency and gas emissions; in the long run it will also change considerably our socio-economic model and create new opportunities for developing countries". Commissioner Vice-President Loyola de Palacio, in charge of Transport and Energy policy, added: "I am looking for new and original ways to reduce the European Union’s dependence on oil while at the same time contributing to sustainable development. Hydrogen and fuel cells offer such a possibility and they can contribute significantly to our policy objective of replacing 20% of automotive fuel with alternative fuels by 2020. In addition, hydrogen brings important opportunities for the distribution of sustainable energy (e.g. renewables) and for decentralised power generation.” EU Research Commissioner Philippe Busquin said: “To meet the stringent Kyoto Protocol targets, the EU will increase the use of renewable energy sources and substitute fuels – including hydrogen. Today, hydrogen and fuel cells are too expensive, that is why we need a consistent approach at a European level. By bringing industrialists, researchers, users and policy makers together, we aim to help build consensus and ensure Europe is leading the drive towards sustainable energy.” 7RZDUGVDK\GURJHQEDVHGHFRQRP\ Global demand for electricity is expected to double by 2015. Hydrogen will eventually contribute substantially to clean transport and power generation: its only emission is water vapour. But to enable us to move from today’s largely fossil fuel based energy economy to a more hydrogen-based one we need more research, know-how and investment. The HLG will assess progress so far and help devise short-term actions to introduce hydrogen to the market and prepare a long-term hydrogen and fuel cell strategy at EU level.

)XHOFHOOPDUNHWIRUHFDVWV Independent market studies on fuel cells forecast average annual growth rates of 40- 60% in fuel cell-propelled transport over the next decade. The European fuel cell vehicle market should reach ¼ELOOLRQE\DQG¼ELOOLRQE\$VIRU power plants and energy production, Europe and the US will need to replace and reinforce their energy generation capacity. This includes micro-generators powering home appliances and remote regions. However fuel cell marketing still has substantial technical and socio-economic barriers to overcome, such as the lack of hydrogen distribution infrastructures.

7KHQHHGIRU(8DFWLRQ The USA and Japan are world leaders in fuel cell research. In the US this is largely driven by defence and aerospace applications. US government support to fuel cell development includes the Freedom Car Programme (¼PLOOLRQSHU\HDU DQGWKH ¼ PLOOLRQ 6(&$ (Solid State Energy Conversion Alliance) programme. Japan supports fuel cell and hydrogen technology development with a 28-year programme (1993-2020) with a total budget of ¼ELOOLRQ EU efforts in this field are not structured and they are under-funded and fragmented. Total European public funding for fuel cell research is estimated at some ¼ million per year, that’s about one third of US funding, and one quarter of Japan’s. The EU needs a coherent fuel cell and hydrogen technology strategy to aid the transition and to help the sector achieve a better cost/benefit ratio, thus making it competitive and turning fuel cells into viable market products. Issues such as fuelling, safety and common technological standards need to be addressed quickly.

(8VXSSRUWHGUHVHDUFKRQK\GURJHQDQGIXHOFHOOV The Fifth EU Research Framework Programme (FP5 1999-2002) devoted ¼ million to hydrogen and fuel cell research. In the Sixth Framework Programme (FP6 2003-2006), research on energy and transport will be undertaken under the thematic priority “Sustainable development, global change and ecosystems” for which a total budget of ¼ PLOOLRQ KDV EHHQ HDrmarked. It is envisaged that the budget for research on fuel cells, including their applications and hydrogen technologies will be increased substantially compared with FP5. First calls for proposals will be published later in 2002, and projects will be launched by mid 2003.

2 7KH+LJK/HYHO*URXSRQ+\GURJHQDQG)XHO&HOOV The High Level Group is formed by senior representatives of the hydrogen, fuel cell and transport sector. The Group is an informal body with an advisory role. Its main objective will be to advise the Commission on determining the prospects for, and economic impact of, moving towards a sustainable energy economy based on hydrogen and electricity and introducing fuel cells as energy converters. By mid 2003 the Group will present a paper outlining ideas for the joint European actions necessary for a vibrant fuel cell industry and a sustainable hydrogen energy economy. The report may be followed by a more detailed action plan, including a hydrogen and fuel cell strategic research agenda.

)RUIXUWKHULQIRUPDWLRQRQ(8K\GURJHQSROLF\SOHDVHYLVLW http://europa.eu.int/comm/research/energy/nn/nn_rt_hy3_en.htm http://europa.eu.int/comm/dgs/energy_transport/index_fr.html

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Representative Organisation Position

Mr. Hjalmar Arnason Parliament of Iceland Member of Parliament of Iceland

Dr Pierre Beuzit Renault Vice-president of Research, Renault SA Mr. Neil Carson Johnson Matthey Executive Director

Mr. Pascal Colombani CEA Chairman and Chief Executive Officer

Mr. Charles Coltman Rolls-Royce Director of Corporate Development

Mr. Roberto Cordaro Nuvera President and Chief Executive Officer

Mr. Claude Thibaut de Solvay Alliance Manager and Board Member Maisières Energy Automotive Systems

Prof. César Dopazo CIEMAT General Director

Dr. Gerd Eisenbeiß FZJulich Member of The Board of Directors

Mr. Don Huberts Shell Chief Executive Officer of Shell Hydrogen Prof. Dr. Herbert Kohler Daimler-Chrysler Director, Environmental Affairs

Dr. Wolfgang Meyer UITP President

Mr. Michel Mouliney Air Liquide General Manager Advanced Technologies and Aerospace Division

Prof. Carlo Rubbia ENEA President

Prof. Lars Sjunnesson Sydkraft Director and Professor of the Corporate R&D and Environment

Mr. Tore Torvund Norsk Hydro Executive Vice President of Norsk Hydro and CEO of Norsk Hydro Oil and Energy

Dr. Andreas Truckenbrodt Ballard Power Vice President and General Manager Systems Transport Division

Dr. Hugo van den Borre Vandenborre President and Chief Executive Officer Technologies Dr. Thomas Voigt Siemens- President Stationary Fuel Cell Westinghouse Division

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